An academically highly qualified entrepreneur, having US degree in post engineering and having a thorough knowledge on chemicals, perfumery, aroma and human senses, was successfully managing manufacturing unit of industrial aerosol products in spray bottles. He was also quite dedicated, hard working and with unmatched passion. With a successful venture already under the belt, he thought of starting a business in consumer deodorants for men & women. He believed that if others can do it, he can certainly do it, particularly with his qualifications, experience and a successful venture to back him. The market for the product was also growing rapidly. The product flavors for men & women, he developed were also acceptable for sense appeal.

 

In the first trial lot, he made 24,000 bottles incl. 2 flavors for men and 2 for women. This means only 6,000 bottles of each ingredient. He hired a management graduate and a team of 3 salesmen. Team went around the total Mumbai region for market survey. They came out with leading 12 brands, their prices, market share by approximate number of bottles besides other data. However, survey returned only 350-400 data based on which the proprietor and his employee made certain assumptions and calculations of market size and market share. The process of marketing was going on in parallel with product R&D, import of fragrance, testing, bottle design, size etc. Perfect.

 

Keeping D-day in mind, search for distributors was made with the help of sales persons employed but in turn leaving and new ones joining due to overall non-performance of the task assigned. Small size advertisements in local dailies failed to evoke any constructive lead to work on for appointment for distributors. It was decided by the proprietor and his team then to find and settle with existing distributors of competitive products. Unfortunately, they are either FMCG brands and spurious products or products imported from Asian country where quality was poor but price was sensitive. The product under discussion was not falling under any of these categories. FMCG brands were priced at Rs.150/- minimum with a lot order size of 5,00,000 bottles and huge media advertisements on several television channels, news papers, magazines, FM radio, event, POS promotion and a large sales force. Distributors were getting a good margin without much of the efforts to push the product in market and flexibility with attractive pricing and offers.

 

From the point of view of the expert in marketing and business development the right price for a practically unknown brand was Rs. 125/- per bottle for men and Rs. 75/- for women deodorants. The difference between men and women deodorant bottles was the size of bottle and fragrance appeal to gender. Also, the marketing expert recommended a novel distribution system in the form of 'intro pack' to excite the trade channel partners and availability of products at 1000 outlets in the opening spell. Idea was simple. To push all products in market in short span of time. The promoter was recommended to deliver goods to all POS where customers come to buy with attractive posters and free sampling arrangement. Direct marketing of products to dealers/retailers in hired tempo was a part of distribution strategy to have direct control on retailers. This also allowed for planning offers and schemes time and again from the difference of trade margin of distributors and retailers. Test & Try was the proposition at low price from reputed SME Company. Marketing plan was perfect, discussed, debated and sealed for a launch.

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