CHAPTER - 1 SITUATIONAL ANALYSIS

1.1 The Market Summary 1.1.1 Market Needs According to a study published in the medical journal, Infectious Diseases in Children, researchers in hand washing recovered fecal coliforms from the hands of one out of every five staff members, citing that more than 33% of day care facilities had poor hand washing techniques and no policy for hand washing before eating or after playing outside. In spite of all the studies about the benefits of hand washing, improper or infrequent hand washing continues to be a major factor in the spread of disease in day-cares. Hand washing in child care facilities is an ideal initial target market for several additional reasons: Child care facilities have rampant illness and germ problems that can be directly reduced through frequent child and worker hand washing.

Child care facilities have strict, government mandated rules that require frequent hand washing.

Parents are particularly interested in reducing child illness, making them one of our strongest advocates for the use of JoyCare in environments they cannot directly monitor.

In a study cited by Family Practice News in 1996, "Scientists had kids wash their hands when they arrived at school, before lunch then again after lunch time, recess and one more time before heading home every single day." As a result of these scheduled' wash times, researchers found that "a month later, these kids had 24 percent fewer days off from colds, sniffles and flus and a whopping 51 percent fewer sick days because of gastrointestinal complaints like stomach cramps or diarrhea."

With nearly 12 cr. children in child care facilities across the nation there is a clear need for JoyCare, the product that can both encourage and help monitor child and employee hand washing to ensure a safe, clean environment for children. Additional future target markets also have significant need for fading dye products: Hospitals: "In health care, nurses and doctors wash only 30% of the required time between patient contacts and procedures. Each year, an alarming 2,400,000+ nosocomial infections occur in the India alone. They are estimated to directly cause 30,000 deaths and contribute to another 70,000 deaths each year. Nosocomial infections cost over Rs.4000 per incident and 4.5 cr. annually in extended care and treatment."

Restaurants: "Food borne illness kills over 10,000 people each year. Over 70% of all outbreaks originate in food service operations and, as many as 40% are the result of poor food service and cross-contamination. Each year over 80,000 estimated cases of food poisoning occur in the India alone.

1.1.2 Market Trends There has been a recent effort by the Food and Drug Association, the Center for Disease Control, the National Restaurant Organization, and others to promote education to increase hand washing compliance in target markets. The focus of these programs is to educate and encourage preventative control measures for children and workers to help reduce diseases and lawsuits. This has led to greater awareness in our target markets about maximizing cleanliness and minimizing preventable illness. There is an additional trend in both our target markets and industry towards organic based soaps. Organic products have become increasingly associated with safety and health in a variety of different markets. Our completely organic soap is complementary to this growing market trend. 1.1.3 Market Growth The demand for child day care services will continue to grow. As the labor force participation of women between the ages of 16 and 44 remains high, parents of preschool

and school-age children are expected to seek more day care arrangements. As parents continue to work during weekends, evenings, and late nights, the demand will grow significantly for child day care programs that can provide care during nontraditional hours. School-age children, who generally require child day care only before and after school, increasingly are being cared for in child care centers. 1.1.4 Market Analysis There is tremendous potential for a product that provides supervisors and parents with the control to monitor and encourage hand washing. Considering the large scope of our potential markets, we feel it is imperative to focus our limited resources on a particular geographic region where we can establish demand for our product. After successful market penetration, we will begin implementation into the restaurant and hospital markets. 1.1.5 Industry Analysis The Industrial and Institutional soap industry, of which JoyCare is a part, is quite fragmented, but contains several well-known main competitors: Detoil. The industry is stable and growing; between 2003 and 2010 it grew by an average of 4% annually. Within sector there is fierce competition for market share among the existing popular soap offerings, leading to lean profits on soap sales.

1.2 Competition Analysis 1.2.1 Competitive Comparison JoyCare offer a high value alternative to other hand washing compliance products.

They provide an unprecedented level of control, allowing these managers to monitor and follow hand washing frequency and habits of both child-care workers and children. Ultimately this can lower costs for all users, either in a workplace or private environment by reducing the risk of disease outbreaks and/or health code violations.

As the first fading dye hand soap in the market, JoyCare will build brand identity, establishing the company as the standard for improving hand washing compliance.

As JoyCare become more familiar in a workplace environment, the product will begin to produce a pressure on employees, whereby they feel compelled to wash their hands out of a consciousness about the perception of all employees, not just managers. This "peer pressure" effect will further fuel the use of our products and the recognition of the benefits they deliver.

1.2.2 Competition and Buying Patterns Commercial customers select soap based on the necessary minimum safety regulations for the intended user; restaurant and hospital regulations require anti-bacterial/microbial. Customers will typically select a product based on price, distributor availability, and convenience. Distributors will deliver a complete order of cleaning and maintenance products to customers. 1.2.3 Distribution Patterns Distribution in the soap industry is provided by regional providers. These distribution companies usually serve a large portion of the market based on the respective size of the market, delivering to the organizations monthly or bi-monthly depending on demand and usage patterns. Food services typically receive deliveries of cleaning products once a month. Hospitals typically have a distribution system that operates on monthly deliveries of large quantities. Restaurants typically have a weekly delivery schedule.

1.3 Product Offering 1.3.1 Product JoyCare provides a unique control level to managers, supervisors and parents alike.

1.3.2 Product Description JoyCare will produce a line of institutional liquid soaps with a time-sensitive dye blended into the mixture. The dye reacts with the hands during the lathering process, staining the hands a distinct color, then fading in under six minutes. The product will sell for approximately Rs. 14/case (90g). The packaging will be compatible with existing soap dispensers mounted in washing stations and be available in a variety of sizes. Initially, JoyCare will focus with child care acquirers in mind, utilizing the brightest colors possible. This product will consist of four colors: red, blue, pink and green. 1.3.3 Sourcing The key to our success is the time-sensitive dye. Once the proper ratio of dye to base soap is isolated, the fragmented nature of the soap industry provides many options for outsourcing production. Similar to any commodity, economies of scale require the soap to be produced, packaged and distributed in large batches.

1.4 Keys to success

A first-mover branding campaign to build awareness of JoyCare as the standard for ensuring hand washing compliance. Patent protection to defend our time-sensitive dye and product concept from competitors. Complementary relationships with organizations interested in increasing hand washing compliance.

CHAPTER - 2 MARKETING STRATEGY

2.1 Mission Our mission is to create value for customers and

shareholders by continually improving health and reducing preventable illnesses through the use of our soap. 2.2 Marketing Objectives
1. 2.

To gain market share of 10 % in native market To increase the level of brand awareness by associating JoyCare as a brand equivalent to good quality.

3.

Increase product trials and brand awareness

2.3 Financial Objectives Sales growth o Achieve 10% growth in sales volume in the native market, i.e. Maharashtra o Achieve 10% growth in sales on monthly basis. 2.4 Target Market Although restaurants and hospitals have tremendous market need for a product such as ours, day cares represent the best opportunity for our initial target market. Day cares are an ideal market because they have a vested interest in reducing disease transfer amongst children, and have adamant support from their clients [parents] to create as clean an environment as possible. Most day care centers are sophisticated little germ factories, exchanging bacteria and viruses with the shake of a hand or the sharing of a toy. And many of those nasty bugs travel home where they can infect the rest of the family. Initial target markets include all professional day care facilities with potential for 20 or more children.

2.5 Positioning JoyCare is valuable to day care managers who need effective control solutions to ensure frequent child and child-care worker hand washing to keep the environment clean and to minimize preventable illness. No other product on the market serves the hand washing compliance aspect of workplace safety with such an affordable, direct and complete solution. Unlike traditional soaps, our product provides conclusive evidence every time an employee washes his or her hands for only a marginally higher cost than traditional soaps, and significantly less than gloves or other hand washing compliance systems. 2.6 Marketing Strategy For our initial target market of day care facilities, the company will implement two parallel marketing efforts, aimed respectively at day care facility decision makers, and the parents of young children who use these facilities. There is need to create a push factor by effectively convincing the decision-level managers within the organizations that our product provides an ideal solution to the hand washing compliance. A "Joy of Washing Hands" branding campaign will build JoyCare as the leader in increasing hand washing compliance. Significant parental support will encourage organizations to implement JoyCare in environments involving their children.

2.6.1 Pricing Strategy Retail pricing for JoyCare will generally be around Rs. 16/case for 90g and will command a 15-20% price premium over conventional liquid soaps. The value ofr product will not be attractive to extremely price sensitive customers. The market for soap is generally inelastic, but our product offers significant differentiating benefits over current soaps that justify the price difference.

2.6.2 Promotion Strategy One of the most important aspects of a successful launch is positive publicity for our product. We will develop an awareness campaign to promote our product through several avenues. Our management will fiercely pursue positive public perception through government endorsements promoting the benefits of our products. We will also attempt to capitalize on the novelty of the solutions provided by our product by actively seeking local news and media coverage to help spread awareness. Buzz will be developed in social hubs by distributing samples to parties with potential interest. Parental support of the product will be garnered through free trials, demonstrations, and direct mailings to the day care parent roster lists, parent groups. At washing stations in client facilities we will spread awareness with stickers targeted towards children, showing them the process of washing to turn their hands different colors and emphasizing how fun it can be. Pamphlets will be sent to the family homes through the day care roster mailing lists, to calm fears regarding a new product in their child's environment, explain the benefits and encourage the parents to respond and build feedback for the benefits of the product to further increase implementation. Some of the government programs of interest are the various compliance and workplace hygiene programs supported and funded by the Center for Disease Control (CDC), the Food and Drug Administration (FDA) and the National Center for Disease Control (NDIC). Programs such as the Health Protection Research Initiative implemented by the CDC demonstrate an invested interest by government programs in increasing the overall health of Indians.

2.6.3 Distribution Strategy Initial distribution strategy will involve a combination of distributor and direct sales. Relationships with local distributors will be established to increase promotional reach and potential users. The first orders will be available immediately through direct delivery by our executive team. Outsourcing distribution entirely in the future will allow JoyCare focus its efforts on marketing and expanding as quickly as possible. Distributors will pay for the inventory up-front, and although this cuts our profit margins it helps JoyCare to maintain a more flexible structure. 2.6.4 Sales Strategy Sales strategy will initially address local and regional managers with ordering authority for the establishments in that area. The prospective clients will be supplied with a professional product information packet and moved into the sales funnel to begin closing prospect, followed up with a direct mail brochure and a phone call. There will be no initial direct compensation or commission for closed sales. Proceeds from sales will be invested back into developing and expanding the business. As the company begins to increase its initial sales force, commission-based incentive programs will be implemented. 2.6.5 Strategic Alliances JoyCare will initially encourage critical strategic alliances in two distinct areas: Distributors The relationship between JoyCare and the product distributors will be essential. A flexible distribution system will be critical to the success and growth of our product. Good distribution will allow our product to satisfy and flexibly expand to accommodate demand.

The Government By teaming up with government organizations, JoyCare will be able to utilize existing hand washing compliance programs to reach a much larger potential audience than could be directly contacted. Government endorsement of product, and the mention of its benefits in government brochures and written materials could be a major competitive advantage and sales opportunity for JoyCare.

2.7 Financials 2.7.1 Sales Forecast If JoyCare is able to distribute through existing distributors, it will provide a significant financial advantage, as well as the ability to meet the quick increase in demand for the product.

Beginning with an initial monthly sale of 100,000 for our day care soap product (JoyCare), we predict sales will increase by 10% per month for the first year. We then calculate a growth rate of 30% yearly. Cost of Goods Sold is approximately 40% of sales. However, COGS grows at a yearly rate of 20%, which is less than the sales growth rate in order to represent the economies of scale that we hope to achieve as our operations grow.

Sales Forecast o To achieve 10% growth in sales on monthly basis in first year. o Achieve 30% yearly growth in sale after first year.

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Table: First Year Sales Forecast

Sales Forecast Sales HEALTH assure soap (day care) Direct Cost of Sales

Mon th1 1.00

Mon th2 1.10

Mon th3 1.21

Mon th4 1.33

Mon th5 1.46

Mon th6 1.61

Mon th7 1.77

Mon th8 1.94

Mon th9 2.14

Mont h10 2.35

Mont h11 2.59

Mont h12 2.85

0.40

0.44

0.48

0.53

0.58

0.64

0.71

0.78

0.86

0.94

1.04

1.14

All figures in Lakhs

Table: Sales Forecast

Sales Forecast Year 1 Sales HEALTHassure soap (day care) 21.35 27.75 36.07 Year 2 Year 3

Direct Cost of Sales HEALTHassure soap (day care) All figures in lakhs

Year 1 8.54

Year 2 10.25

Year 3 12.30

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Table: Profit and Loss:

Sales Forec ast Sales D.C.S Gross Margi n Gross Margi n% Expen ses Payrol l Exp. Rent Exp. Other Gener al & Adm. Exp. Total Opera ting Exp. PBIT EBIT Taxes Incurr ed Net Profit

Mon th1 1.00 0.40 0.60

Mon th2 1.10 0.44 0.66

Mon th3 1.21 0.48 0.73

Mon th4 1.33 0.53 0.80

Mon th5 1.46 0.58 0.88

Mon th6 1.61 0.64 0.95

Mon th7 1.77 0.71 1.06

Mon th8 1.94 0.78 1.16

Mon th9 2.14 0.86 1.28

Mont h10 2.35 0.94 1.41

Mont h11 2.59 1.04 1.55

Mont h12 2.85 1.14 1.71

60%

60%

60%

60%

60%

60%

60%

60%

60%

60%

60%

60%

0.90 0.10 0.05

0.90 0.10 0.05

0.90 0.10 0.05

0.90 0.10 0.05

0.90 0.10 0.05

0.90 0.10 0.05

0.90 0.10 0.05

0.90 0.10 0.05

0.90 0.10 0.05

0.90 0.10 0.05

0.90 0.10 0.05

0.90 0.10 0.05

1.05

1.05

1.05

1.05

1.05

1.05

1.05

1.05

1.05

1.05

1.05

1.05

(0.45 ) (0.45 ) (0.13 ) (0.32 )

(0.39 ) (0.39 ) (0.12 ) (0.27 )

(0.32 ) (0.32 ) (0.10 ) (0.22 )

(0.25 ) (0.25 ) (0.08 ) (0.17 )

(0.17 ) (0.17 ) (0.05 ) (0.12 )

(0.10 ) (0.10 ) (0.03 ) (0.07 )

0.10 0.10 0.03

0.11 0.11 0.03

0.23 0.23 0.07

0.36 0.36 0.11

0.50 0.50 0.15

0.66 0.66 0.20

0.07

0.08

0.16

0.25

0.30

0.46

All figures in lakhs

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2.8 Financial Plan Based on market research, we expect the business to begin growing at 10% per month for the first 12 months, then at a yearly rate of 30% for the next two years. Due to our low initial investment costs, we can maintain the operations of the business with the cash buffer we will have from start up. In addition, we will almost immediately have a positive cash flow, allowing us the flexibility to cover any unforeseen expenses.

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CHAPTER - 3 HUMAN RESOURCES

To execute the new marketing strategy the following human resource recruitment is being planned: 75% increase in Sales Force Staff recruitment for managing the Production and Marketing Training of labor to handle new packaging machinery

VALUES AND ASPIRATIONS: Ensure success through high performance by people. Regular visits by HR team are being made to all plants to meet the employees and also interaction meetings are conducted to get their feedback, based on which HR policies are improved continuously

TRAINING AND DEVELOPMENT: Training is aimed at the systematic development of knowledge, skills, attitude and teamwork. Training & development of personal skills is considered a high priority area The organization philosophy revolves around the development of people in this own jobs in such a manner so as to prepare them to face any difficulties. Enhancement of skills Suitable training is imparted to enhance the multiple skills of the executives and to enrich their multi-functional tasks. Programs are undertakes keeping in view the dynamic changes in the environment which are contributed by rapid technological obsolescence. Severe competition with emerging globalization of markets, increasing consumerism, new concepts of accountability and social responsibility among others Attitudinal change in the employees mind set This dramatically evolving environment for employees requires a paradigm shift in modernizing the mind set and in preparing them to confront issues, manage them carefully and achieve competitive dominance.

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PERFORMANCE APPRAISAL: People come first in the new business paradigm. The success of an organization essentially depends upon the effective harnessing and utilization of this resource. It is imperative for an organization to constantly nurture people and have their capabilities for optimal performance. Performance evaluation aligns the organizational objectives with the individuals performance and bridges the gap between the two through consistent performance, planning, review and development Procedure for recruitment: To fill up the vacancies as approved by the management, two sources will be identified such as: Internal source External source

Preference will be given for internal source by tapping the potentials of the employees possessing multiple skills who can be redeployed In case on non-redeployment of the existing employees, external source will be adopted either by approaching, data bank, employment offices, and advertisements. Source where ever it may be mainly follows government rules and regulations before appointing new candidates. On receipts of applications through external sources, through screening will be done at the department tend. The short listed candidates will be called & interviewed by a committee consisting of respective HOD/section heads & one representative from HR department. The selection will be made based on the overall performance of the candidate and who has pee the companys requirement. The recommended candidates for selection by the committee will be put through final interview with JMD & CEO or the selection papers will be put up to JMD & CEO for JMD & CEO offer letters will be issued subject to their medical fitness duly certified by our medical superintendent On joining, the candidate will be required to fill up the joining report which includes nominations under provident fund, gratuity, group personal accident (GPA).The newly joined employees will be issued with a joining circular welcoming them for the company along with an advice to attend half day safety training programmed. Presently two types of registers are maintained.

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Human Resource Department: Working environment Discipline Health & safety

Work culture: Effective communication Working rules and regulations Attendance Paid holidays Leave Probation Deputation

STRUCTURE The design of the organizational structure is a critical task of the top management of the organization. It is the skeleton of the whole organization edifice. It prescribes the formal relationships among various positions and activities. Organizational structures are there along with the departmental data.

ENHANCEMENT OF SKILLS Suitable training is imparted to enhance the multiple skills of the executives and to enrich their multi-functional tasks. Programs are undertaken keeping in view the dynamic changes in the environment, which are contributed by rapid technological obsolescence. Sever competition with emerging globalization markets,

increasing consumerism, new concepts of accountability and social responsibility among others.

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CHAPTER - 4 CONTROLS
Implementation Phase 1: Launch of products with new packaging would be brought into the market in the 1st quarter of 2013-2014 accompanied by heavy promotional activities in Indian as well as foreign markets. Phase 2: Promotional activities focused in the corresponding regions. Increase in number of distributors and sales staff. Phase 3: Periodical promotional campaigns during festive seasons. Introduction of promotional offers to push sales. Phase 4: Increase in promotional activities throughout domestic markets to increase sales volumes and achieve break-even.

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REFERENCES

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