over the counter , Product Launch

NITRONIC LTD. PRESENTS

NO2BACCO PATCH

GROUP MEMBERS

STEFFY THOMAS SANKET DAUNDKAR WINNIE MANOJ ROHIT SHETTY

CONTENTS

Brief introduction about FMHG

Why nicotine gums did not work

Executive Summary

About our company

Logo and Tagline

Vision and Mission statements

4 P’s

Newly launched product

Benefits and product features

The USP of the product

Competitive review: major competitors

Advertising

Brand ambassador

SWOT analysis

STPD

Market segmentation

PESTLE

Financial analysis

Future Plans

FAST MOVING HEALTH CARE GOODS

FMHG Components

OTC products

Functional Foods

Medicinal Foods

Phytochemicals

Nutraceuticals

Ayurvedic & Herbal

Medicines

AVAILABLE PRODUCTS FOR SMOKING CESSATION

Bad taste

Uneasiness

Costly

Still the craving for a cigarette persist

WHY NICOTIN GUMS WAS NOT SUCCESSFUL

NITRONIC LTD.

EXECUTIVE SUMMARY

A Indian based company named “NITRONIC LTD.” is

preparing to launch a NICOTIN PATCH in the name of

NO2BACCO for the working members, youths, middle and

upper middle class members, in the Indian market.

The primary marketing objective is to make consumers aware

about it’s new product and its unique working pattern, resulting

to achieve huge market share in pharma industry.

ABOUT OUR COMPANY

NITRONIC LTD.

TYPE : PRIVATE HELD COMPANY

HEADQUARTERS : ANDHERI EAST , MUMBAI, INDIA

PRODUCT : NO2BACCO PATCH

WEBSITE : www.nitronicltd.org

LOGO AND TAGLINE

OUR COMPANY LOGO

OUR COMPANY TAG LINE :

- “STOP SMOKING

START REPAIRING”

VISION STATEMENT

To be the best Nicotine Replacement Therapy in the universe.

We shall attain this position by transforming the health care

experience through a culture of caring, quality, service,

innovation and excellence

Nitronic.Ltd is known as an excellent organization of people

working together to do the right thing every day to improve the

health and well being of those we serve

Nitronic core values are integrity, caring, innovation and

excellence.

MISSION STATEMENT

Better health and a better life for you and the people around

you.

No2bacco will be their final solution to quit their smoking

habits.

No2bacco differentiates itself from other competitors in the way

the product looks, taste and its effectiveness.

No2bacco makes the challenge of quitting smoking be

effortless and takes a truly positive attitude.

NEW PRODUCT LAUNCH

THE NEW PRODUCT ‘ NO2BACCO’ IS A PREMIUM NICOTINE PATCH LAUNCHED BY NITRONIC LTD.

MEANING BEHIND OUR PRODUCT NAME

NO – TO- TOBACCO

NO – 2BACCO [ TOBACCO]

“ NO2BACCO”

USP

The USP of Product is that it helps to

reduce craving and quit smoking within 2

weeks time and helps to live a smoke free

life.

BENEFITS OF NO2BACCO

The patch greatly reduces the urge to smoke. The patches are convenient, easy to use and

apply. It’s an effective substitute for people who hate

chewable medication. This therapy has proven to be very effective

in managing withdrawal symptoms.

The patches are discreet and can be hidden

under clothes.

The patch doesn’t require much attention as

you apply once in the morning and face your

activities for the rest of the day.

MAJOR COMPETITORS

NICORETTE

NICODERM

PRICE

COST OF PER PATCH IS Rs. 100/-

PLACE

CHEMIST

DE-ADDICTION CENTERS

CORPORATE CANTEEN

PROMOTIONS

PROMOTIONS

PROMOTIONAL CAMPAIGNS LIKE SEMINARS IN CALL CENTERS

CAFÉ, CONCERT , ROCKBAND ETC.

FREE SAMPLES

CREATE AWARENESS

ADVERTISINGS

CREATING HYPE IN THE MARKET WITH OUR TAG LINE

“STOP SMOKING START

REPAIRING” To Grab the attention using Business professionals & youths as the medium & good Punch line

AD’S ON TELEVISION

ADS ON HOARDINGS

ADS ON NEWSPAPER AND MAGAZINES

ADS ON RAILWAY STATIONS

ADS ON BEST BUS

ADS ON SOCIAL NETWORKING SITES

POSTERS

ADS AT THE MOVIE THEATER

SUPPORTING SOCIAL CAUSES

BRAND AMBASSADOR

STRENGTH Very well accepted in the global markets

R&D and product innovation, the brand benefits

No2bacco is the first medicinal preparation to facilitate smoking cessation and created a new category referred to as Nicotine replacement therapy

WEAKNESS

Late entry in emerging economies

The brand has to work a lot in spreading awareness especially in the rural markets where reach of TV media is limited.

OPPORTUNITY

There are millions of tobacco users

People smoke and use tobacco in other forms like

chewing tobacco.

This large size of cigarette users also results in large

number of health issues

The de marketing of cigarettes by government and

NGOs also increase the number of wannabe quitters

THREAT Pharma products are subject to stringent

legal regulations; any mistake in

adherence to quality etc can have

strong implications 

MARKETING STRATEGIES

Focus is mainly towards the Business professionals & youths

Targeted towards metropolitan cities in India

Giving a tough competition to companies like Nicorrette

Creating a good hype in the market.

Supporting social causes and participating in healthcare marathons and NO TO BACCO RUNS

TARGET

Targeting the corporate

executives, youths, middle class

and upper middle class

BRAND POSITIONING

NO2BACCO will be positioned as a nicotine patch with unique feature of its usability and user friendly and stuck lower the shoulder.

Promotion campaigns & distribution strategy will help to achieve the above mentioned objectives.

Point of parity: Customers can easily associate themselves with the product as a product made only for smokers who willingly want to quit smoking.

MARKET SEGMENTATION

The Various Bases for Market Segmentation are:

DEMOGRAPHIC SEGMENTATION

GEOGRAPHIC SEGMENTATION

PSYCHOGRAPHIC SEGMENTATION

DEMOGRAPHIC SEGMENTATION

Age- 21 and above.

Gender – Male and Female

Income – Middle ,Upper Middle and Hi-End Consumer

Occupation- Student and Working class

GEOGRAPHIC

Initially, NITRONIC Ltd. will launch NO2BACCO. to major centre

of Delhi & Mumbai.

In the second year of operation, NO2BACCO will be launched

to Goa, Chennai and Kolkata, operated under its own outlets

and larger formats like the chemist.

The companies present distribution channel will help in reaching the target

customer easily.

There will be three authorized service centre available in India

at Delhi, Mumbai & Chennai and 12 other service centres.

PSYCHOGRAPHIC SEGMENTATION

PSYCHOGRAPHIC SEGMENTATION pertains to

Attitude- Yes

Personality – Yes

Value system – Yes

POLITICAL

In health industry there were less political intervention.

Patches can be sold easily over the counter.

The political background of India is not stable.

ECONOMICAL

The product is not economical.

It’s a economical product for a business class product

SOCIAL Society benefits a lot from patches.

Smokers are reduced in the society.

Getting support from family and friends.

Stopping smoking can be easier if you talk about it to family and friends and

let them support you.

If other people who live with you smoke, it may be harder for you to give up.

You could try to get other household members who smoke, or friends who

smoke, to stop smoking at the same time.

ENVIRONMENTAL

Patches add value to the environment.

Usage of patches helps them to quit smoking

Indeed, it helps in reducing Air Pollution in Environment.

It also protects to prevent from Cancer

LEGAL As far as Patches are consider legal procedure were

limited.

Legal procedure are only upto Registration of the company.

No licensing required for conducting the business patches in India as it is OTC product.

FINANCIAL ANALYSIS

MEDIA INSERTION SIZE PLACE RATE(in Rs) PAGE AMOUNT

NEWSPAPER 2 Months 10x10 cm

National coverage

400 per sq cm 1 pg/ month 80,000

SMALL HORDINGS & BOARDS

20 Days Full Board

Mumbai, Delhi,Chennai.

2000 per hording per day

4 hoardings 1,60,000

Social Net.Sites

1000 views/ $ 2.99

2,99,000

TOTAL 5,39,000

T.V ADVERTISING

BBC NEWS CHANNEL, CNBC LIVE , MTV.

Mon-Sun (8:30:00 AM-5:00:00 PM)

Duration – 15 seconds

Rate/15 sec – 65000

Total budget - 14,30,000

TOTAL MEDIA BUDGET

TOTAL MEDIA BUDGET

5,39,000 + 14,30,000

= Rs .19,69,000 /-

Break – Even Analysis

Particulars Year (Rs.)

Sales (per unit) 100.00

Less :- Variable Cost (per unit) 86.00

Contribution 14.00

Less :- Fixed Cost 32,89,000

P/V Ratio (Contribution / Sales) 0.14

Avg Sales per month (10 ,00,000 units/12 ) 83,333 units

Breakeven point (Qty.) = FC/Contribution per unit.

=32,89,000/ 14

=2,34,929 units.

Break even point (Amt.) = FC/PV Ratio

= Rs. 2,34,92,857.

Breakeven period= BEP volume / Sales volume per period

= 2,34,929/83,333

= 2.81

= 2 months 24 days.

Profit and Loss A/c

Particulars

In Lakhs

Year 1 Year 2 Year 3

Units Sold per year 10.00 18.00 27.00

Sales (100 per units) 1,000.00 1,800.00 2,700.00

(-) Costs of Goods (84 per units) 840.00 1,512.00 2,268.00Gross Profit 160.00 288.00 432.00Selling Expenses (2%) 20.00 36.00 54.00Office Rent :-     1.15Mumbai 2.40 2.40 2.40Delhi 1.80 1.80 1.80Kolkata _ 1.20 1.20Chennai _ 1.44 1.44Goa _ 1.69 1.6912 Authorized Service Centres (Overall Avg. cost) _ _ 14.40Salaries 7.00 12.00 20.11Depreciation      MotorVans 7.50 22.88 78.17Office Equipments 0.30 0.60 1.35Miscelleneous Expenses 1.60 2.64 5.66Advertisement 19.69 17.10 15.00Insurance 2.00 5.00 12.00PBIT 97.71 183.26 221.63(-)Interest (15% on 2crores debt fund) 10.00 30.00 30.00PBT 87.71 153.26 191.63(-)Tax (30%) 26.31 45.98 57.49Profit after tax 61.40 107.28 134.14(-) Dividend (10%) 20.00 47.50 75.00Retained Earnings 41.40 59.78 59.14

Balance Sheet

Particulars FY 1 FY 2 FY 3

LIABILITIES :- Rs. Rs. Rs.

Source of funds In Lakhs

Sharecapital (of Rs. 10 each) 200.00 475.00 750.00

Profit and loss Balance 41.40 59.78 59.14

Secured Loans (10%) 100.00 150.00 150.00

Unsecured Loans (15%) _ 100.00 100.00

Creditors 70.00 102.16 137.37

Total Liabilities 411.40 886.94 1196.51

ASSETS :- Rs. Rs. Rs.

Appilcation of funds In Lakhs

Fixed Assets (Cost-Depreciation)      

Motor Vans 42.50 121.125 521.125

Office Equiments 2.70 5.10 12.00

Current assets      

Cash in Bank 125.03 235.11 269.13

Sundry Debtors 53.78 89.89 13.12

Bills Receivables 85.01 252.25 102.02

Inventories 102.28 435.71 279.11

Miscelleneous Exp or losses 0.10 _ _

Total Assets 411.40 886.94 1196.51

Cash Flow Statement

Particulars Year 1 Year 2 Year 3

A] Cashflow from Operating Activities (A) Rs. (in lac)

Increase in stock 102.28 435.71 279.11

Cash Receipts from Customers 85.01 252.25 102.02

Cash generated from operation 125.03 235.11 269.13

Less :- Salaries 7.00 12.00 20.11

Less :- Increase in Debtors 53.78 89.89 13.12

Less :- Cash Paid to Suppliers 70.00 102.16 137.37

Less :- Taxes paid 26.13 45.98 57.49

Net Cash generated from operation activities 155.41 673.04 422.17

B] Cashflow from Investing Activities (B)

Less :- Purchase of Fixed Assets 50.00 100.00 300.00

Purchase of Investment _ _ _

Net Cash outflow used in investing activities -50 -100 -300

C] Cashflow from Financing Activities ( c )

Less :-Interest Paid 10.00 30.00 30.00

Less :-Dividend Paid 20.00 47.50 75.00

Net Cash outflow used in financing activities -30 -77.5 -105

Total ( A )+( B )+( C ) 75.41 495.54 17.17

Net increase in Cash & Bank Balance _ 420.13 -478.37

Ratio AnalysisTypes of Ratio Year 1 Year 2 Year 3I ] Liquidity Ratio's      

a)Current Ratio 5.23 9.91 4.83b) Quick Ratio      c) Cash Ratio 1.78 1.185 1.959       II ] Leverage Ratio's      a) Debt Equity Ratio 0.50 0.53 0.33b) Interest Coverage Ratio 9.77 6.11 7.39c) Inventory Ratio _ 5.62 6.34d) Debtors Turnover Ratio _ 24.37 26.21e) Avg. collection period _ 14.977 13.92       III ] Profitability Ratio's      a) Gross Profit Ratio 0.16 0.16 0.16b) Operating Profit Ratio 0.097 0.101 0.082c) Return on assets _ 0.1657 (16.57 %) 0.1288 (12.88%)d) Net Profit Margin Ratio 0.06 0.059 0.049

       IV ] Valuation Ratio's      a) Yield Ratio _ _ _b) Price Earning Ratio _ _ _c) Market Value to Book Value Ratio _ _ _

FUTURE PLANS

From 17 centres to spread all cross India.

To come out with lozenges.

Nasal spray.

Thank

You