CASE STUDY:

LAUNCHING OF POPCORN MACHINE

GROUP 9:
10070 ARUN RAJ KUMAR P
10082 K SWETHA NANDANA
10094 PRAVEEN SHARMA
10106 SHYLESH V
10118 VISHAL ROY
 Case Environment
• Mr. Sunil Gupta, Director of Durable Products
(P) Ltd
• Idea of Launching “Big Pop”
• According to Mr. Sunil Gupta -
– Consumers show interest in gadgets leading to
convenience and fun
– Profitable to manufacture and market the product
– Wants to take the First Mover Advantage
 Company Overview
• Nearly 30 year old company
• Started with Auto ancillaries and diversified
into consumer durables
• Distribution network in major cities
• Loyal & dedicated sales force of 12 persons
• Mostly depends on its agents for its Sales
 Product
• 2 minute pop corn maker
• Modified version of Japanese model
• Motor & Heat shield are to be imported
• Multipurpose machine- could also be used for
roasting and frying snacks
• Recommended corn - made available in
selected stores
 Distribution
• Through existing distribution channels
CompanyAgentsDealers
• Plans to Launch during Diwali
• Agents’ Margin: 5-6%
• Retailers’ Margin: 8-10%
 Promotion Planned
• Earmarked 50 Lakhs
• Focus on Kids
• Ad press campaign in leading newspapers for 2
months
• TV ads in national network about 8-10 times
• Banners, cutouts, stickers, name slips at retails
points and school exhibitions.
• Demonstrations in selected areas
• Participate in “Living in Style” exhibitions
 Why does Sunil want to launch ?
• A Trendsetting Gadget
• Interest shown by consumers for such products
• His own kids & family liked it
• Multi-purpose Machine
• Positive response from Agents
 SWOT Analysis
Weakness
• Limited cash flow
• No market research
• Complexity of the product

• Experience in home appliances

Strength
SWOT Analysis
Opportunities
• First mover advantage

• Unsure response from the market

Threats
Should “Big Pop” be launched?

NO!!!!
 Reasons
1. Demand Forecasting

• No market research

• Positive response from agents does not necessarily

indicate demand
 Reasons (Contd.)
2. The statistics show that the demand for
aaaappliances other than essentials is low
Income vs Ownership of House hold appliances
100
Cities vs Ownership of Home appliances
60
90 88
83.1 83.5
80 50 74
71.4
70
60 40 55 56.2

50 47.2
Electric Iron
39.7 Electrical Iron
40 30 34 32.7 Mixer/Grinder
Mixer/Grinder
30 28 Toaster
Toaster
19.6
20 20 15.8
11.3
8.4
10 6.7 4.9
10 0.1 0.4 2.1
0
Upto 1001- 2001- 4001- 6001- 10001+ Total
0 1000 2000 4000 6000 10000
Top 8 Metros 10L+ 5-10L 1-5L <1L Total
 Reasons (Contd.)
3. High Investment

• High Cost including imports

• High budget for promotion to spread awareness

• Cash flow of the company was just satisfactory

 Reasons (Contd.)
4. Other Constraints

• Complexity and Technicality of the Product

• Voltage requirements and additional stabilizer

• Recommended variety of corn

• Limited sales force

 We Suggest
• Do not launch this product as of now.

- Build the requisite capital

- Conduct a market survey & catch the nerve
Thank You….!!!