i.

What is your opinion on the comment made by the marketing agency? Give your reasons.

Ans. The comment made by the marketing agency was partially correct The deregulation on LPG gas is a provision which has made it convenient for the private sector to get a scope into the market. Due to this the product is readily available in the market for sale without the customers facing the hassles of booking and late delivery. Hence, the comment of the marketing agency is dependable. However, the comment cannot be completely agreed to like Mr. shyam argued that the majority of the Indian middle class population was still using LPG cylinders which are highly subsidized and would definitely help the target group to save money. Is a good reason to launch the product. ii. Do you agree with Shyams action of selecting his neighbors as focus group to discuss the ideas and to test the prototype? Do they represent the target group? If so, why and if not, why?

Ans. Shyams action of selecting his neighbors as focus group to discuss the ideas and to test the prototype was not right. Though at a very initial stage, his neighbors turned out to be very helpful with the brainstorming and resulted in innovative ideas but the response became too encouraging and Shyam became overconfident to some extent. Shyam was the CEO of a company, and hence it can be assumed that he did not belong to the middle class. Even his neighbors, do not represent the target group since the product is targeted at the middle class of people. Also, it can be stated that Shyam knew those people and in turn those people also had an informal relationship with Shyam, which made them accept Shyams idea easily and not think about the various issues involved. Shyams neighbors accepted the product happily, but they might have done so out of courtesy and a sense of respect for Shyam. Due to this, their feedback cannot be considered completely correct. In order to launch the product into the market, Shyam needed to be sure that it would sell. For completely legitimate feedback, Shyam should have selected random people for testing the prototype and counted on their feedback. This would have given him the complete market scenario and also would have helped in the marketing of the product, if the feedback was positive. iii. Do you think choosing Chennai as a test market was right?

Ans. Choosing Chennai as a test market was quite right. Chennai is a place where government has deregulated LPG and private firms have entered into the market for the distribution of LPG.

These firms are charging much more for the same cylinder as compared to the government. Though the government is still providing LPG, but these players have become more competent and widespread. By testing the product in a place like Chennai where there are all classes of people and also different modes of distribution of LPG, it can be verified as to who exactly would be the customers for Shyams product. The potential customers to whom Shyam is aiming at might not turn out to be the actual customers. The actual customers could be easily determined by choosing the test market to be Chennai. iv. What are the critical issues that you predict that might affect the success of the gadget?

Ans. There are four critical issues that might affect the success of the gadget. These are i. ii. iii. The majority of the population in Chennai had two cylinders, so why would they even think about such a case as what happened with Shyams wife. LPG has become freely available due to deregulation and the customers have no problem in accessing cylinders when needed. Recent advent of microwave ovens has also decreased the sales of LPG and people have reduced their usage of gas burners. Also convection stoves have also come up and people are trying to Go Green. The gadget has LEDs in it, hence it would be required to install batteries in it and any sparking or even leaking of the battery may result to be very dangerous and might cause fire and even explosion of the cylinder in worst cases. If you where shyam, how would you proceed with developing marketing strategy? Your strategy should focus on positioning of the gadget, determine the size of the market, pricing, selection of market for initial move, determine optimal promotion mix and designing.

iv.

v.

Ans. My strategy for Shyam would be : Positioning of the gadget : positioning of the gadget would mean where the gadget would be available and sold. For that a thorough understanding of the market needs to be done and places that are to be targeted need to be listed down. So that the gadget would gain popularity in the correct target group which in turn would result in its sale and that in turn would lead to profits, which is the main aim. Pricing : Since the target market is Indian middle class families, it is essential that the price of the gadget be neither too high, such that it becomes too expensive, and neither should it be

too cheap, resulting in no profits. here the target customers budget should be kept in mind. Appropriate distribution network : The appropriate distributional network needs to be studied and understood. Whether it will be available in all the stores, or its order basis, or it goes from the manufacturers to the wholesalers to the retailers and then the consumers.

SWOT Analysis Strengths Convenient to check the usage. The gadget checks how much gas the customer is getting while buying a cylinder. No competition in the market. A new innovation.

Weaknesses The customer would have to invest an extra amount. Hazards related to the battery used for LEDs. Easy availability of LPG due to deregulation. Growing demand of microwave ovens.

Steps of setting a business

Setting a business enterprise can be very challenging. However it attracts many for the amount of potential it has in terms of profit. In order to receive such profits an entrepreneur must most artfully foresee the nature and intensity of the problems that might come in the way and implement appropriate plans

Product selection
The basic and most important step would be the product selection. A good entrepreneur has the caliber to select a product that is potentially profitable. But this does not help unless an entrepreneur has a strong idea about the possible lines of the business. These ideas can be generated on the basis of Internal sources of business ideas External sources of business ideas

Project formulation
As the name suggests project development involves a step by step investigation also the development of a venture idea. This is done by a team of professional and their joint effort. A well formulated project is the best passport for obtaining the required assistance from financial institutions.

Project feasibility assessment

An assessment of project feasibility plays an important role to critic the before made analysis. This estimation can be done in the following ways Technical feasibility Implies that the technical assistance needed in terms of machinery and the plant setup would be looked on to. Also the availability of professionals with technical knowhow to produce products within the prescribed harms Economic viability A new venture can be assessed by identifying the market potential, estimation cost volume profit relationship and sources of market information. Financial feasibility

It comprises of the assessment of total financial requirements, determining sources and cost of funds, analyzing cash flow and anticipating returns on investment Managerial competence It involves a proper assessment of the number and dexterity of the staff required for the project Implementation scheme An implementation schedule is proposed to ensure timely completion of the project. Timely completion will avoid time and cost inefficiency.

Market survey
The entrepreneur needs to anticipate the possible market for the product, possible customers, when and where the products can be sold.

Investment/ risk analysis

The aim of every investment is to attain maximum profit. Hence, the diversion of funds should be directed towards a passageway which provides optimum turnover. Investment analysis primarily deals with the interpretation of the data in the financial statements of the project. The most important tools of investment analysisRatio analysis Return of proprietors fund or net worth = net profit after taxs interest Net worth Return on capital employed = net profit before interest x 100 Capital employed Return on total investment = net profit after interest x 100 Total assets Average Rate of return = average net income after ta

x x 100 Average investment over the life of the project

Preparation of project report

It is a written document pertaining to the investment proposal. It has relevant data. On the basis of which the project has been appraised and formed feasible. The entrepreneur who asks for financial assistance has to submit such a report. It is an operating document and serves as a road map to reach the destination determined by the entrepreneur.

Selection of site (location)

It is essential to choose suitable location for any venture. Several factors are to be kept in mind while deciding the location i.e. distance from the source of raw materials, market , availability of cheap and skilled labor, availability of transport etc.

Legal considerations
Starting up any industrial unit involves some legal formalities Registration with director of industries Provisional registration Municipal license Permanent registration with GS & D/ NSIC

Entrepreneurship development program

Kovid kapoor Roll no 13 Fashion design dept nift hyd Sem-7th