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Presented by:-

Manish Bisht, PoojaSharma Ashutosh Kr.

Accurate Consultancy Pvt. Ltd. 01/14/09 1


Throw away Ball Point
Pen

Contents

 Introduction
 Objectives
 SWOT analysis
 Pen Economics
 Market Strategy
 Conclusion

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1.Introduction Pen

Ø Case is about business expansion when


innovations and investment both are
available.
Ø The central character is designing,
manufacturing cost and marketing of
throw away ball point pen.
Ø The product is designed by Mr.
Navneebhai Shah, the owner of plastic
products ltd.

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2.Objectives Pen

 To market the product .


 Expand the business .
 To increase the production and
maximize the profit.
 How much investment should be done?
 How much advertisement should be
done ?

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Pen

S T
3.SWOT Analysis
W O

Strengths:-
Ø Goodwill
Ø Capital
Ø Experience
Ø Reliability of customers
Ø Innovative
Ø Availability of potential market
Ø Widely used product

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Weaknesses:-

 Lack of marketing sense.


 Restricted to single geographical
location.
 Lack of specialized workforce for new
venture.

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Opportunities:-

 Expansion of market share .


 Innovations lead to compete in the
pencil market.
 Increment in selling price.
 New product brings greater price margin
to wholesalers.

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Threats:-

 No brand name/Innovative product.


 New business can affect his already
established goodwill.
 Environmental concerns.
 Competition from domain pen producing
companies.

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4.Pen Economics
Pen

The product:-
Pen designed to make the customers satisfied with its
quality and use.

Special Features:-
Ø Use & throw away pen.
Ø Cheapest in the market.
Ø Quality similar to expensive pen.
Ø Long lasting refills.

Cost Structure of a Single Product:-


Ø Barrel, Ink Filling, Purchasing and fitting the ball: Rs. 0.50
Ø Margin for Profit and Risks: Rs. 0.10
Ø Margin for Stocking and selling : Rs. 0.40
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Pen

5.Market Strategy
Tapping the potential Market
According to the data available:
 Target Upper primary ,higher secondary
& colleges.
 States with better literacy rates.
 Banks, post offices, PF & insurance estb.
, factories , retail estb. & share of urban
mkt. potential .

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Literacy Rate in Various States Pen

in 2001

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State Statistics

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Market Potential in Various Pen

States

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COST CONSIDERATION
Pen

 Logistics should be taken into


consideration w.r.t to literacy rate in ad
joint states
 PRICING issues depicted in business
model.
 Price discrimination according to the use
by volume.

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BUSINESS MODEL Pen

Upstream
(Purchase,Shipping)
50 10
pais paise
e

Manufacturing Marketing
(Promo,Adv.)

10 paise as
Profit & Risk 40
Factor pais
Downstream
(Wholesalers,Retailers,) e

SP=1.1
Customer 0
SP=Rs.1/
00

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WHEN TO LAUNCH

 March
– April (beginning of new
academic session)

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BRAND NAME
 ECORITE
BALL POINT PEN!!

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6.CONCLUSION
 Mr.Navneebhai should go as per the
proposal made by us, as per his
innovative idea he will be able to
generate the revenue as discussed
being the pen cheapest, durable having
long writing life and the company’s
goodwill will help his company earn
revenues and “ECORITE” as a success
product of Plastic Product Pvt. Ltd.

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LESSON LEARNED AS Pen

CONSULTANT.
 There is huge market for innovations.
 Survey analysis(demographic ,literacy
,population , market share) is one of the
best aspect of business forecast.
 Risk factors should always be worked
upon for product acceptability.

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Any Questions

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THANK YOU

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