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BELGAUM INSTITUTE OF MANAGEMENT

STUDIES

LAUNCHING OF POPCORN MACHINE


SUBMITTED TO : PROF: Muksud sir
Case Fact
Mr. SUNIL GUPTA director of durable products (p)
limited, started with small scale unit in automobile but
later diversified into manufacture of ceiling, table fans,
water heaters and home appliances.
• Distribution strategy:
The company appointed
agents for selling its products in Delhi, Kanpur,
lucknow, Chandigarh, Nagpur, Bhopal, Indore, Jaipur
and other cities, company depended on its agents.
• SELLING STRATEGY:
The company had
a small sales force of about twelve
persons

• IDEA OF LAUNCHING NEW PRODUCT:


Mr. sunil gupta during
his visit to Japan, he thought launching
of popcorn machine in India by name
“BIG-POP”, he wanted to conduct
marketing research before launching he
turned down the request because of
high cost quoted by marketing research
organization.
• DESIGNING OF PRODUCT:
The company took Japanese
model and employed reverse engineering to
design product, but the motor and the heat
shield to be used in the machine were to be
imported and suits for Indian environment.

• OTHER USES OF MACHINE:


The machine could also be
used for other roasting applications such as
roasting coffee seeds, nuts, and even ready to
fry snacks. He wanted to do many works in one
machine.
• DISTRIBUTION OF NEW PRODUCT:
It will be easy to sell the product by
distribution channel which already handled by
company, the product will be launched on
occasion of Diwali, agents will given 5 to 6%
margin the retailers margin will be 8 to 10%.
• A pamphlet was prepared giving user instructions
and sample corn free with the product so no
difficult for consumers.
• PROMOTION STRATEGY:
The promotion of the product
on personal selling, sales promotion. The main
focus of advertising campaign should be on kids,
others are banners, cut outs,stickers,name slips,
and ad agency suggested TV films shown on
national network with jingle for 8 to 10 times, in
exhibitions etc.
• PRICING STRATEGY:
Company want to cover
all cost which were incurred for
production (fixed as well as variable)
& also want to set a margin of 25%.

• SUBSTITUTES OF MACHINE:
presently the corn
in some of Indian middle –class homes
was prepared in the pressure cookers
in some case oven, in some case
cooked on S,
• Yes “BIG-POP” be launched,
• price for new product must be
competitive price or low price, so that we
can attract people to sale our product,
• All the levels of people must buy it,
marketing managers informed that few
years back the another company tried to
introduced a similar product but it was
not success, according to him the failure
was of poor quality and high price, so
price depends on quality, price is main
part of product better to keep low price
for product.
• Estimation of big-pop is to all the
ages can be eat form 4 to 15, 16 to
25 more, 26 to above less, so the
market segments is to buy all the
levels of people, so income group
lower levels are purchased single
machine, high level of people buy 3
in one like roasting coffee seeds,
nuts, fry snacks, it cost high so high
levels people will buy it, to buy all
levels people it must be sold single
machine, low cost to buy

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