2011

Launch of iStyle

iStyle

Marketing Plan for iStyle

Brand Management

GROUP MEMBERS

Deepika Duggal Rhea Thomas Rahul Nair Edwin James Nita Nasa Subodh More Paul Manjaly Vimal Kumar

02 06 07 14 32 34 46 53

SIESCOMS, EMBA, 3rd Semester

SIES College of Management Studies (SIESCOMS) Sri Chandrasekarendra Saraswati Vidyapuram, Plot 1-E, Sector V, Nerul, Navi Mumbai 400706.

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Marketing Plan for iStyle

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Table of Contents
1 Executive Summary....................................................................................................................4 2 Introduction.................................................................................................................................5 2.1 Overview and Trends of the Industry....................................................................................5 2.2 Marketing Mix.......................................................................................................................6 2.3 Brand Elements.....................................................................................................................6 3 Launching of iStyle...................................................................................................................8 4 Segmenting and Positioning.......................................................................................................9 5 Financial Projection..................................................................................................................10 5.1 Financial & Marketing Objective.......................................................................................10 5.2 Head Quarter Plan.............................................................................................................10 5.3 Forecast Base......................................................................................................................11 6 Launch Schedule for Year I, II, III ........................................................................................12 6.1 Year I...................................................................................................................................12 6.2 Year II.................................................................................................................................12 6.3 Year III................................................................................................................................13 7 Contribution statement for Year I, II, III ..............................................................................14 7.1 Year I...................................................................................................................................14 7.2 Year II.................................................................................................................................15 7.3 Year III................................................................................................................................16 8 Contingency Plan......................................................................................................................17 9 Conclusion..................................................................................................................................17

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Marketing Plan for iStyle

Brand Management Rhea pls work on this

1 Executive Summary
iStyle We dont just take care of your eyes, we style them.

As our caption suggests, we are a company that strives towards changing the perception of people towards eyewear. No more would people consider spectacles as an accessory for geeks or nerds, and gone is the time when people would fear the insults attached with owning a pair of spectacles.

Our products are designed to reflect a large part of the user. This way, we are confident that we can overcome competition and make our mark.

We will be catering to the Upper Middle and Middle Class segment, and will be opening stores in strategically decided locations. We have selected the major metropolitan cities to begin with.

Our 3 year Financial & Marketing objective highlights how we intend on expanding our business over the years.

We are positive that our brand ISTYLE would be the next best thing in unconventional eye wear.

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2 Introduction
Sunglasses or glares are a form of protective eyewear. Firstly, sunglasses are made to prevent sunshine or other light of high energy. And also they can prevent the harmful UV rays. Sunglasses can improve visual comfort and visual clarity by protecting the eye from glare. Apart from the function of sunglasses, nowadays, more and more people, especially young people are paying attention to the appearance of sunglasses. So sunglasses judgment standards are varying from their function to appearance. Although it is the fact, many famous sunglasses such as Versace sunglasses are still paying more attention to the quality than the appearance of their sunglasses.

Hence, with eyewear.

iStyle

as the slogan itself says We dont just take

care of your eyes, we style them will change the perception of people towards

2.1

Overview and Trends of the Industry

India is a very young nation with 85% of its population below the age of 45, and 55% of its people below 25 years of age. Young adults, the group between 18 and 35 years, represent nearly 25% of the consumer base in the country, and drive consumer and lifestyle trends. The demand is driven by demographics, fashion, and changing healthcare practices. Aging population is increasing the demand for eye exams and glasses. Eye care has evolved from age-related vision disorders to cosmetic concerns. Spectacles are nowadays considered as personality enhancers and a fashion accessory. In 2007, the prescription eyewear market in India was estimated to be worth Rs. 23 billion. India is predominately a glass lenses market (87% of total market) with sales of approximately 115 million pieces per year. The sunglasses market, growing steadily in the last five years, is further segmented by price. The mid-priced segment (Rs. 700 to Rs. 2000) accounts for almost half of the market, whereas high end and premium sunglasses account for 20% and 10% of the market. The high and premium segments are growing faster than the rate of overall market growth. This segment is largely dominated by the unorganized sector, which accounted for 95% of the prescription eyewear business. There is also a huge parallel market in unbranded imported eyewear. This includes products that are mainly imported from the China, and are available in the unorganized market at very low prices ranging from USD 2 to USD 10. These are mainly ophthalmic spectacles and usually feature low-quality plastic lenses. A large variety of unbranded sunglasses are also available in this segment.

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Our exciting future will make iStyle the workplace of choice in attracting people that will drive change, be creative and innovative and be relentless in our pursuit of Customer delight and Employee satisfaction.

2.2

Marketing Mix Rhea pls work on this

Product:

Currently this will be a single variant product available in 3 colors (Silver, Gold and Black). Features will be standard across all the colors. For the GPRS Service, users can choose their telecom provider of choice. Price The NRV will be Rs.11,850 for all color options. MRP will be Rs.15,000. Place Initially, the product will be made available through all the leading electronics showrooms in the Major metros. We will also provide this through direct sales to the Police Force. Promotion Promotion will be through the following means: TV Spots on a maximum of 5 channels with 1 spot per week Print Four Newspapers and twice a week Four Magazines and once a fortnight 50 Billboards across the Major metros Event Sponsorship (1 event per quarter) 150 Danglers 100 Posters Gondolas at 10 Electronics Shops

2.3

Brand Elements
The Character who can be best identified with this Product is Tom Cruise.

Character Slogan Logo

We dont just take care of your eyes, we style them

iStyle
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The logo depicts i for the individual and style for the individual personality.

Marketing Plan for iStyle

Brand Management

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3 Launching of
Cost per Unit Glass Nose Pad Ear Rubber Frame Paint (Frame) Casing

iStyle
(in Rs.) 250 20 30 100 20 50 10 200 680

Warranty and Description Materials Assembly & Manufacturing Cost

Final Cost per Unit

Margin Our Margin Net Realization Value Price to Retailer with 20% Margin Maximum Retail Price with 10% Margin 30% Rs. 972/Rs. 1215/Rs. 1350/-

Yearly Projection Customer Classification Units Per store Annual Projection for 1st year Annual Projection for 2nd year Annual Projection for 3rd year Socio Economic Class A (Sec A) 30 (It varies depending on the season) 16400 units 26600 units (i.e. growth by approx. 62%) 27950 units (i.e. growth by approx. 30%)

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4 Segmenting and Positioning

Target Segment: Age group of 18 to 35 years. (College Students & Young working executives) Positioning: Protect our eyes with iStyle Communication: Style Your Eyes With iStyle

Positioning Statement
At iStyle our mission is simple - to deliver you the highest quality eye care products at the lowest prices. We want to become your natural choice for eye care products and establish long term trustworthy relationships with our customers. When you want fast, friendly service and great prices, we want you to think of iStyle. Value for money and Customer delight in terms of our Products and Services are the primary driver for all our team

Our Purpose
To make every experience you have with iStyle memorable, convenient and affordable. We are committed to ensuring that you'll enjoy every aspect of our service so much that you'll want to return and share your experience with others

Our Values
These values underpin our business and are core to the ongoing development of our company. We hold these values true as they form the foundation of our work culture and ethics. Respect and appreciate all of our team members as well as our customers The pursuit of excellence and innovation Honesty and integrity are essential to our success

Our Vision
iStyle will be the premier retailer of optical products. The value of our service and the reach of the internet will continue to allow us to touch a large and varied audience. We will work to inspire this audience and rapidly grow our market share and inspire our customers to continually return to iStyle and to introduce their friends and colleagues to our products and high level of service and customer care

Our Goal
To be the market leader and innovator within the optical market by offering authentic

products, professional and friendly service at great value creating Customer delight and loyalty

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5 Financial Projection
Year 1st 2nd 3rd Cost of Goods Rs.11158560/Rs.18098640/Rs.19017180/Revenue Rs. 15940800/Rs.25855200/Rs.27167400/Profitability Rs. 4782240/Rs.7756560/Rs.8150220/-

5.1
Year

Financial & Marketing Objective

Financial Objective (Units) MARKETING Objective (Market Size = Approx Rs. 100 Crores) 1.59% 2.58% 2.71%

1st year 2nd year 3rd YEAR

16400 26600 27950

5.2

Head Quarter Plan

HQ Launch Feb-11 Apr-11 Feb-11 Mar-11 Mar-11 Apr-11 Retailer 10 1 5 10 1 5 10 1 5 45 3 Distributors ISR 2 1 0 2 1 1 2 1 0 7 3 ASM

Mumbai Pune Delhi Kolkata Chennai Bangalore Total

ISR = Interim sales distributor for sales representative.

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5.3

Forecast Base
No. of Distributors

The Initial availability plank

Avg. Outlets per distributor SEC Class A

15 1 15

A Class Coverage 15 Units per store 30 PTS 29160.00 29160.00 Total PTS 437400 437400

Products iStyle

MRP 1350

PTR 1215.00

PTS 972.00

Total Value 1350 1350 Qty 450

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6 Launch Schedule for Year I, II, III

6.1
NRV 972.00 Units Value INR No. of retail shop Mumbai Delhi Pune Bangalore Chennai Kolkata 10 10 5 5 10 5 600 VALUE AT NRV = SALES: 30 UNITS PER STORE 300 200 1100 300 300 300 300 400 300 200 300 300 200 1700 400 400 300 300 400 200 2000 250 400 200 300 400 200 1750 200 250 150 150 200 200 1150 200 250 150 150 200 150 1100 200 250 150 150 200 150 1100 300 300 150 150 200 150 1250 300 300 150 300 300 200 1550 300 300 150 300 300 200 1550 300 300 150 300 300 200 1550 3450 3650 1750 2400 3100 2050 16400 15940800 Feb-11 600 583200 Mar-11 1100 106920 0 Apr-11 1700 165240 0 May-11 2000 194400 0 Jun-11 1750 170100 0 Jul-11 1150 111780 0 Aug-11 1100 106920 0 Sep-11 1100 106920 0 Oct-11 1250 121500 0 Nov-11 1550 150660 0 Dec-11 1550 150660 0 Jan-12 1550 150660 0 FY 11-12 1700 1652400

Year I

6.2
NRV 972.00 Units Value INR

Year II

Feb-12 2250 2187000 No. of retail shop

Mar-12 2400 233280 0

Apr-12 3300 320760 0

May-12 3300 320760 0

Jun-12 2500 243000 0

Jul-12 1850 179820 0

Aug-12 1800 174960 0

Sep-12 1800 174960 0

Oct-12 2100 2041200

Nov-12 2350 228420 0

Dec-12 2350 228420 0

Jan-12 2350 228420 0

FY 12-13 4650 4519800

Mumbai Delhi Pune Bangalore Chennai Kolkata

10 10 5 5 10 5

500 500 250 250 500 250 2250

550 550 250 250 550 250 2400

750 750 350 350 750 350 3300

750 750 350 350 750 350 3300

600 600 250 250 550 250 2500

400 400 200 200 400 250 1850

400 400 200 200 400 200 1800

400 400 200 200 400 200 1800

450 450 250 250 450 250 2100

500 500 250 350 500 250 2350

500 500 250 350 500 250 2350

500 500 250 350 500 250 2350

6300 6300 2550 2850 5750 2850 26600 25855200

VALUE AT NRV = SALES INCREASED TO 50 UNITS PER STORE

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6.3
NRV 972.00 Units Value INR

Year III

Feb-12 2475 240570 0 No. of retail shop

Mar-12 2725 264870 0

Apr-12 3300 320760 0

May-12 3300 320760 0

Jun-12 2750 267300 0

Jul-12 1875 182250 0

Aug-12 1800 174960 0

Sep-12 1800 174960 0

Oct-12 2475 240570 0

Nov-12 2525 245430 0

Dec-12 2525 245430 0

Jan-12 2525 245430 0

FY 11-12 5200 5054400

Mumbai Delhi Pune Bangalore Chennai Kolkata

10 10 5 5 10 5

550 550 275 275 550 275 2475

550 600 375 375 550 275 2725

650 650 450 450 650 450 3300

650 650 450 450 650 450 3300

600 600 275 275 600 400 2750

400 400 200 200 400 275 1875

400 400 200 200 400 200 1800

400 400 200 200 400 200 1800

550 550 275 275 550 275 2475

550 550 275 325 550 275 2525

550 550 275 325 550 275 2525

550 550 275 325 550 275 2525

6400 6450 2875 3025 5850 3350 27950 27167400

VALUE AT NRV = SALES INCREASED TO 55 UNITS PER STORE

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7 Contribution statement for Year I, II, III

7.1 Year I

Planned Launch Date: February-11 No. of Sales Executives: 45

Total Cost Maximum Retail Price PTR Net Realization Value Cost Of Goods Rs. 1350.00 1215.00 972.00 680.40

iStyle Sales (Units) Sales (Value)

Sales 16400 15940800

LESS: Cost of Goods

11158560

A] Contribution I Units / store / Qtr 10 10 1

4782240

B] Marketing Variable Expense Danglers Posters Gifts Trade Schemes Consumer Offers / Promotion Transportation charges Product catalogues Website C] Total Marketing Variable Expense Expenses as % to Sales D] Contribution after marketing Expense Contribution to Sales (%)

Rate 3.00 1.50 2000.00 5% 10%

Quantity 900 900 45

Amount 2700 1350 90000 199260 398520 20000

Explanations

only on 25% of the stock only on 25% of the stock (DURING RAINY SEASON) Yearly throughout the country Including photographer, aspiring models, studio rent, catalogue printing

370

12

540

200000 20000

931830

5.85

3850410

24.15

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7.2

Year II

Planned Launch Date: February-12 No. of Sales Executives: 45

Total Cost Maximum Retail Price PTR Net Realization Value Cost Of Goods Rs. 1350.00 1215.00 972.00 680.40

iStyle Sales (Units) Sales (Value)

Sales 26600 25855200

LESS: Cost of Goods

18098640

A] Contribution I Units / store / Qtr 10 10 1

7756560

B] Marketing Variable Expense Danglers Posters Gifts Trade Schemes Consumer Offers / Promotion Transportation charges Product catalogues Website C] Total Marketing Variable Expense Expenses as % to Sales D] Contribution after marketing Expense Contribution to Sales (%)

Rate 3.00 1.50 2000.00 5% 10%

Quantity 900 900 45

Amount 2700 1350 90000 323190 646380 20000

Explanations

only on 25% of the stock only on 25% of the stock

370

12

540

200000 5000

Including photographer, aspiring models, studio rent, catalogue printing

1288620

4.98

6467940

25.02

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7.3

Year III

Planned Launch Date: February-12 No. of Sales Executives: 45

Total Cost Maximum Retail Price PTR Net Realization Value Cost Of Goods Rs. 1350.00 1215.00 972.00 680.40

iStyle Sales (Units) Sales (Value)

Sales 27950 27167400

LESS: Cost of Goods

19017180

A] Contribution I Units / store / Qtr 10 10 1

8150220

B] Marketing Variable Expense Danglers Posters Gifts Trade Schemes Consumer Offers / Promotion Transportation charges Product catalogues Website C] Total Marketing Variable Expense Expenses as % to Sales D] Contribution after marketing Expense Contribution to Sales (%)

Rate 3.00 1.50 2000.00 5% 10%

Quantity 900 900 45

Amount 2700 1350 90000 339593 679185 20000

Explanations

only on 25% of the stock only on 25% of the stock

370

12

540

200000 5000

Including photographer, aspiring models, studio rent, catalogue printing

1337828

4.92

6812393

25.08

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8 Contingency Plan
10% of profit every year to be retained for back up

Rhea pls work on this

9 Conclusion
Considering that India has the worlds second largest population, of which nearly onethird require some form of eye-sight correction, India represents a huge market opportunity in the optical sector. However, the market is extremely fragmented, complex, price sensitive, diverse and distribution driven. Most consumers are ignorant about quality, brands, country of origin of product etc., and are largely guided by the opticians and of course the price. Hence, it is very important to educate and train the trade. Key market characteristics: India is a highly price sensitive market though demand for premium / branded goods is rapidly increasing, at a faster rate vis--vis the overall market Mid price segment is most promising, with large volumes and decent margins Low end segment has high inspirational value and would like to move up the value chain Medium and small sized cities are fast emerging has high potential markets for life style products

Market segmentation and positioning is important as the expectations and paying capacities differ across consumer segments in India. Therefore, new entrants should preferably offer different products/brands for different segments giving value for price.

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