Flavoured Edible Lingerie

Section E

Submitted by:

Nitin Sardana

Shourjo Sengupta

Shivshankar Pillai

Shravan Kumar

Sreechand Nambiar

Tushar Diwan

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ContentsI. Executive Summary:......................................................................................................................3

II. The Challenge................................................................................................................................3

III. Situation Analysis.......................................................................................................................3

1. Company analysis:.....................................................................................................................3

Focus:............................................................................................................................................3

Strengths:......................................................................................................................................3

Weaknesses:..................................................................................................................................3

Opportunities:...............................................................................................................................4

Threats:..........................................................................................................................................4

2. Customer Analysis:....................................................................................................................4

Market segmentation:...................................................................................................................4

Market Research – Demo..............................................................................................................4

Motivation:....................................................................................................................................4

Unmet needs:................................................................................................................................5

3. Competitor Analysis:..................................................................................................................5

Strengths.......................................................................................................................................5

Weaknesses...................................................................................................................................5

IV. Selected Marketing Strategy......................................................................................................6

1. Product......................................................................................................................................6

Webpage:......................................................................................................................................6

2. Price...........................................................................................................................................7

3. Distribution (Place)....................................................................................................................8

4. Promotion..................................................................................................................................9

Roadmap of the campaign:............................................................................................................9

V. Short and long term projections – The future.............................................................................11

Short -term projections:..................................................................................................................11

Long-term projections:....................................................................................................................11

VI. Conclusion...............................................................................................................................12

Annexure:............................................................................................................................................13

Exhibit 1: Questionnaire for Market Survey....................................................................................13

Exhibit 2: Analysis of the Market Survey conducted for a sample of 50 people..............................15

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I. Executive Summary:

Melts is a brand which manufactures edible lingerie for women and we are primarily targeting the Indian market. Whether active in the dating scene, overjoyed newlyweds or that happily married couple, Melts has exactly what you need to spice up your love life or should we say, make it delicious.

We have implemented a website, with the URL http://www.meltwithpassion.com , which is where customers login and after registration, can view our various products at offer. Payment has to be done via credit card and the desired product will be delivered to your doorstep within 48 hours. Customers also get a choice whether to have undisclosed packaging.

Priced at Rs.1499/- , which is a very affordable price, we are sure that we can grab more than just attention.

II. The Challenge

There is a thin line between vulgarity and sensuousness. The Indian market is a bit conservative and this has to be kept in mind while planning the marketing strategy. So the main challenge would be to identify the correct market segment and reaching the right audience. Our main Target group (TG) that we would be aiming to reach would be newlywed couples who would be ready to pay a good price for our product when they are off on their honeymoon. The next segments would mainly comprise of couples who want to spice up their love life and other couples who are ready to experiment.

III. Situation Analysis

1. Company analysis:

Focus:There is a visible change in the way things are perceived now when it comes to love and relationships, especially in the metropolitan cities. Many issues which were considered a taboo in the not-so-distant past are now accepted to be a part and parcel of life. People’s attitude towards sex has changed considerably and they are more willing to experiment with it. Thus, a whole new market has been thrown open and that is our primary focus.

Strengths:Considering the market scenario, our primary strength is that such product has not been introduced in the Indian market and hence the entry barriers are non-existent. We can capitalize on this and improve our profitability.

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Weaknesses:Our main weakness or difficulty that we may face is the mindset of the orthodox people who still look at “talking about sex” to be a taboo. To overcome this, we will initially avoid television advertisements completely and concentrate mainly on implementing teaser campaigns and gaining popularity through the social media, which is buzzing with open-minded people who could very well be our potential customers.

Opportunities:This product caters to a niche market and it’s an unchartered territory which has not been ventured into before. By making use of the internet boom and making it available through an online channel we are using technology to make the sales and make it much easier for the customers.

Threats:The immediate threat that we face as a company would be reaching the right customers without creating a negative image about the brand. Once the teasers are out and the word spreads utmost care has to be taken to make sure that a positive word is spread virally.

2. Customer Analysis:

Market segmentation:

Segment 1:-Newly married couples

-Honeymoon couples visiting exotic locations

Segment 2:-Couples who are ready to experiment to spice up their love life

-Old couples who want to bring their spark back.

-Couples bored of their sex life and also, working professionals

Market Research – DemoWe have conducted a demo market survey in which we asked a small sample (50) of customers some basic questions about their perception and preferences towards the product. A positive response was obtained for which the details are attached in the Annexure (Exhibit 1 and Exhibit 2). The same questionnaire can be forwarded when a complete market research has to be done in the future for a bigger sample.

Motivation: The motivation to launch and sell such a product is the potentiality of the market which exists in India. Given the situation wherein the number of people in the 20-30 age group constitute 30 % of the total population and given the fact that the economy is surging ahead at a healthy rate, the disposable income of the people in the above mentioned age group has increased manifold. This has resulted in a change in the way things are being perceived.

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The annual Durex sex survey, conducted last year among Indians found that “Sexual well-being has become important for urban Indians. They are willing to experiment in their sex life”. Such facts show that there are good prospects for this product.

Unmet needs:

With the facts that more people are willing to experiment with their sex life, there are not many healthy ways for this. So this product being general edible flavours can easily satisfy the need and add value to the customers.

3. Competitor Analysis:

There is only one competitor in the Indian market for flavoured lingerie as of now, BOUDOIR LONDON, a London based firm, which has an exclusive lingerie outlet in Mumbai, has very recently increased its product portfolio and has included edible lingerie. Boudoir London sells lingerie from the finest international brands. The Nightwear and Active wear ranges are developed by the designers of Boudoir London in UK, and many ranges are manufactured in UK only.

Whereas, we will be taking up orders only through our website, hence saving on the costs of operating the outlet. When the edible lingerie was first displayed on their shelves, people were actually amazed to see such a product and there was a huge hush about it initially, but the pricing let everybody down. Their prices are too high for a one time piece of lingerie and the main reason for this is that they do not manufacture it over here; instead they get it imported from their manufacturing sites in UK, hence adding on the import duty to the cost.

The sales through their only outlet in Mumbai, that was opened about a year back has not been really high as they are currently importing all their products from London, hence higher costs. They are actually trying to build a bigger customer base by increasing their product portfolio and attracting new customers. They are providing their products at almost 2 times the regular cost of the product.

StrengthsTheir strength is the experience their owner has in this field. They have been into existence since 2004. They provide a beautiful environment for women to shop and be pampered. Trained bra fitters give the best expert advice and show women their true bra size.

WeaknessesNow, if we talk about their weaknesses, their main disadvantage is the cost at which they are offering the product. Although they are trying to give the best service a customer can get, this is actually preventing them from growing and taking a major share of the market.

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IV. Selected Marketing Strategy

After doing an initial market research we had to understand how to create a campaign which would help us to bring the sales up at a fast rate as we know the demand for such a product was on the higher side. So our next step is to make the marketing decisions for the 4 P’s – Product, Price, Place and Promotion.

1. ProductThe product that we are providing is by no means a conventional product looking at the Indian market scenario. Even if we try to target a very niche market, nothing of this sort has been previously launched in India by an Indian company, so we had to think of a way to market the product in such a way which would not offend the preconceived notion of the customers. So we were sure of one thing. We could not come out with the visuals of the product in open market as it would have created a huge uproar in the market, and hence given negative publicity even before the product launch.

Webpage:The website is designed in such a manner that the customer can navigate easily and comfortably through it. It contains different fields with the basic thing being the tray of options like flavours, sizes for the product to shop, price and there will be a brief enticing description about the product. The customer has to login to the site to make the transactions. The company is linked with major banks for online transactions. It contains forums and blogs to discuss about and rate the product. It contains the information about the company, terms & conditions, security & privacy policies and the contact information. It also contains some web space for advertising for future. The created prototype webpage is shown below, with the ads “Go ahead...commit a sin” and “The forbidden fruit tastes the sweetest”.

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2. PriceThe pricing of the product was of utmost importance and for this the cost analysis, pricing analysis, break even and the profitability have been given below.

Cost Analysis

Heads of Cost Amount (Rs.)

Fixed InvestmentBaking OvenFreezerFurniture & FixturesInitial Advertising Costs

20,000.0030,000.0020,000.0075,000.00

Total 1,45,000.00

Fixed Recurring Costs (Per Month)RentLabour CostsElectricity (Assumed Constant)Telephone ExpensesAdvertisement ExpensesInternet Space

15,000.0015,000.00

3,000.002,000.00

20,000.00500.00

Total 55,500.00

Variable Costs (Per Unit Produced and Sold)Material Costs 200.00

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Packaging ChargesTransportation ChargesElectronic Payment System Charges

200.00100.00

30.00Total 530.00

Cost Per Unit (Considering Only Recurring and Variable Costs)

Expected Units of Production per Month = 75 Units

Total Monthly Recurring Costs = 55,500.00

Recurring Cost per Unit Produced = 55,500.00 / 75 = 740.00

Variable Cost per Unit Produces = 530.00

Total Cost per Unit = 740.00 + 530.00 = 1270.00

Pricing Analysis

Since, cost of producing a single unit of output comes to Rs. 1270.00; we have kept the price at Rs. 1499.00 per unit.

Break-Even

The Break-Even point has been calculated approximately as 9 months, wherein we are recovering all investments made.

Profitability

After breaking even, the firm will earn taxable profits @ 15.28% on sales.

Note: These figures are expected to change with changes in units of production. The profits will increase with increase in sales since a majority of the recurring costs are fixed.

3. Distribution (Place)As customers would be ordering the product online, the product will be packed in a thermal bag to maintain the temperature till it is delivered to the customer. For privacy, our packaging in no way reveals the nature of its contents. We ship using a plain brown box on the request of customers. As we initially operate in a single city and then start operating in every major city, we will be having a contract with a courier service to deliver it to the customers within 48 hours of the order time.

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-The sales will take the online mode.

-Customers can order it online through the payment gateway in the website.

-The lingerie will be delivered to the customer within 48 hrs in a thermal packaged box.

-The delivery will be done from a storage place in the city to the customer’s place.

-Clients can also do an advance booking and mention the preferred delivery date.

4. Promotion

So we have decided to start the promotion of the product through Teasers and Printed Advertisements in some high end magazines like Maxim, The Man, Cosmopolitan, Men’s Health and Health, which are mainly read by our Target Group. These ads would continue for around a month. The main purpose of these ads is to increase the curiosity among the public as to what the product really is and what exactly do we have to offer. In about three months time, when the curiosity has the reached the maximum level, we would come out with the website link in the same magazines and ask the people to check out the link for more information.

We would also create customised, owned pages, blogs and groups on social networking sites such as Facebook, Orkut and Twitter, so that people who do not read the magazines can also be reached easily and even they will get to know about the product. This shows how effective social media can be to market the product.

As the product is being launched specifically for the newlyweds, to make it easier for them and to add another dimension to our product promotion, we also plan to tie up with some five and four star hotels in and around Mumbai where people can go for their honeymoons, once they book honeymoon suites, they can be offered a discount of somewhere around 20%-25% and even more if they order more than one piece, and for the customers who want to try all the flavours we are offering, there is another good offer, if they order three flavours, they get a 40% discount on the fourth one.

Roadmap of the campaign:The plan is to launch the product in the city of Mumbai and then gradually spread on to the other parts of the country. This being a product which is niche and targeted to a very specific set of people, the promotion here thought of is that we will be creating teaser ads in the print media.

Some Teaser Ads :

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“Go Ahead, Commit a Sin...”

“Would you like your love melting in your arms or would you prefer it melting in your mouth?”

“Wear your passion.”

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These teaser ads would be shown through social media and print media for a period of three months after which the second phase will be implemented, which is the launch of the website.

The second phase of the promotion will consist of directing the curious people to the website of the brand. The website will contain features like “Check your Romance Quotient” and links to blogs which will actually focus on the newfound boldness and the changing bedroom scenarios across the country. The website will give no inkling about the brand or the product. The fully functional website will be up and running in a week. Thus, we will be able to gauge the mannerisms of the people to an extent.

We also plan to have tie ups with shopping websites such as Indiatimes.com, Rediff.com etc, wherein the customers can be asked to fill up a survey to find out their Romance Quotient or Love Quotient and hence be directed to our website, where they can register themselves and check out the products available.

Our product is also a very viable option as a gift on Valentine’s Day, anniversary, etc also. Hence another approach that we would be taking is to direct traffic towards our website for searches related to the same.

V. Short and long term projections – The future

Short -term projections:Diversify the variants in the product; introduce new products like edible body paints, edible oils and lotions.

Long-term projections:Currently the company is being operated in only single city, Mumbai. Once we breakeven we calculate the financials and do a thorough market research eventually expanding the business to

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many locations. All the other metros over the country and locations for honeymoon like Ooty, Shimla, Munnar, Kulumanali and Goa would be our primary target areas. In such places where the customers do not have a permanent address, we provide the service through phone so that the customers can just dial the number, specify their preferences and the product will be delivered at their doorstep.

For this we will have a common plant for the surrounding locations where we are operating and just have warehouses in all the other locations to store the inventory. The expansion project will solely depend on the market analysis that we do and the feasibility of the plan.

VI. Conclusion

By introducing this product in the Indian market, we have not overlooked the huge obstacles that we will be facing. Our basic aim is also to be socially responsible and promote a safe and healthy sex life amongst Indians. The Indian perception of sex is slowly changing and the new generation is more open about speaking about it. An example of this is the “Pink Panties Campaign” which is knows now as the Indian women revolution. The true change will come when women in India will understand and express her sexual needs, and celebrate her life to the fullest. But that will happen only when the Indian woman reconnects with her femininity, her sexuality and her sense of self. And edible lingerie is just the first step into the future.

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Annexure:

Exhibit 1: Questionnaire for Market SurveyFlavored-Edible lingerie

Before you fill up this survey, imagine yourself as a newly married couple 5-7 years down the line....

*1) Your Gender :

male  

female  

*2) Would u prefer to buy flavored-edible lingerie to spice up your love life ?

3) What is the maximum price that you would spend on a piece of flavored–edible lingerie set?

850 to 1150   

1150 to 1500  

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Please Select

1500 to 2000  

2000 to 2500  

4) How frequently would u prefer to buy this product ?

Once a fortnight  

Once a month  

Once in 2 months  

Once in 4 months  

5) which flavors would u prefer?

Chocolate  

Caramel  

Whipped cream  

Strawberry  

6) Any suggestions or comments?

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Exhibit 2: Analysis of the Market Survey conducted for a sample of 50 people-Willingness to buy the product

Willingness to buy

YesNo

-Based on gender who took the survey

15

78%

22%

Gender

MaleFemale

16

72%

28%