MARKETING STRATEGY FOR PMCASPL AIR PURIFIER SYSTEM

Assignment Taken

To formulate the entire marketing plan/strategy for the company

Case Understanding

PM Clean Air Solutions Private Limited (PMCASPL) is founded by directors Mr. Manoj Singh and Mr. Parth Mittal. Manoj devised a concept for a hybrid device that can monitor, manage, and suggest combinations to improve the air quality as Manoj was closely involved with the research and development of the air quality company in which he was employed earlier. Parth has been employed by the shipping firm in Kolkata. They both quit their respective occupation in public and decided to start PMCASPL with 50% equity investment by both of them respectively. After considerable work, research and investment utilization, they created the final product prototype containing 3 units. As their idea and prototype was well detailed, t They received investments totalling 10 Crore (INR) from a venture capitalist (SAIF Capital) and another 10 Crore (INR) from angel investors on a show with 5% equity. Being the consulting firm hired by the PMCASPL, we are tasked with providing them with advice on their project with creative and insightful contributions for the financial year 2022–2023 where the allocated budget is 10 Crore (INR). We have been tasked with providing the company with advice on how to set up new production and maintain distribution, define price/financial strategy, develop a marketing plan, and strategy for operations, human resources, and information technology.

BCS Solution Summary

The solution aims to analyze the market for the PMCASPL Air purifier system and come up with an extensive marketing strategy/plan for the company. The solution highlights the analysis of the product, go to market strategy, proper segmentation, targeting and positioning of the product, development of marketing mix strategy, brand establishment and future projection of the company in the minds of the customers and how the sales can be enhances using these strategies.

Solution

SWOT Analysis of PMCASPL Air purifier system

STRENGTHS	WEAKNESSES
Innovative eco-friendly product: Uses natural plant-based mechanism for the air purification High quality with elegant design (own design patent) comprehensive line of innovative, top-quality product Clean and green air with efficient physical units and AQMS Centralized server in premises Effective air loops and air sensing mechanism	Regular updates and maintenance expenses for AQMS Intense competition in terms of product offering at a competitive price range Limited business hours post purchase initially Limited Colours and patterns
OPPORTUNITIES	THREATS
Global Expansion Meeting new features by adopting to changing consumer needs Economy of Scale Extra parts administration	Competitors with high brand power Heavy discounts on alternatives by e-commerce websites and retailers Consumers still purchasing cheap vacuum cleaners and air fresheners

Air Purifier Porter’s 5 Forces Model Analysis

 

SUPPLIER POWER	BUYER POWER	NEW ENTRANTS	SUBSTITUTES	COMPETITIVE RIVALRY
It is high as PMCASPL has its own team of Software developers, Web Designers, App developers, Executives and employees. The employees are highly focused on the product development stage, thereby having control over the supply chain and the lead time for product launching. These engineers and designers have a high bargaining power as they can be easily hired by the competition.	Buyer Power is high as consumers can choose from lower-priced products offered by the competitors. The consumers can also bargain as they have more options to choose from as well as more retail options.	As the market is infested with cheaper alternatives, the threat of new entrants faced will be high. As the PMCASPL hasn’t got its technology patented, it has the threat of new entrants that may take up their technology. Also, because of the low labour costs in China and other emerging markets, it is not difficult for new players to enter the market if they have the financial resources for capital investment.	Substitute products like home plants, essential oils, salt crystal lamps, air fresheners, activated charcoal, beeswax candles etc. are becoming popular among the population. These substitutes are cheaper, easier to purchase and easier to maintain.	The competitive rivalry in this sector is strong with many renowned brands offering more products at competitive prices as the industry continues to grow.

 

The upshot of Porter’s 5 Forces analysis is that in order to tackle with the tough competition from lower priced products with similar technology, PMCASPL have to get a strong grip over its innovativeness, technology patents and changing consumer needs and behaviour.

Strategic planning (Go to Market Strategy)

The PMCASPL’s air purifier system is the new product in the market.  In order to build a brand, it has to earn the trust and confidence of consumers. Strategic planning with determined SMART+C (Specific, Measurable, Achievable, Relevant, Timed, and Challenging) objectives helps in the process of developing and maintaining a strategic fit between the organization goals and capabilities and its changing marketing opportunities.

MISSION STATEMENT	To improve the quality of life of the people by providing people clean and green air at affordable prices.
VISION	To drive the industry and emerge as the most reputable and admired air purifier brand in the nation.
OBJECTIVE	To achieve growth in sales and maintain it by using the best of resources and people.
MANAGEMENT STRATEGY	Emphasizing growth and risk reduction through product diversification and growing our product's market share by adapting to shifting consumer needs.

Product Details

The PMCASPL developed air purifier system consists of 3 separate units which are all synced as one single device.

The units are known as:

• Air Sense: This physical unit will sense the air quality and will pass the data to the next unit, i.e., AQMS (Air Quality Management System). Air Sense is a 5 inch x 5 inch device which can be installed easily anywhere in a closed wall premises. Each Air sense can currently sense for an area of 1900 sq. ft. Multiple Air Sense device can be installed in a premise, depending upon the size of the location. Each Air Sense will pass data to the AQMS which is centralised server.
• Air Quality Management System (AQMS): This is the software unit. AQMS will analyse data received from Air Sense and will send suggestion(s) to users on how to effectively use a mix of Air Loop/purifier and Natural Plants. AQMS is a centralised server installed in a premises.
• Air Loop: This is the final physical unit, which acts as a purifier. Air Loop is 48 inch x 24 inch device. Each Air Loop can purify a closed wall area of 1500 sq. ft.

Purifying techniques: This product can monitor, manage and suggest the combinations to improve the air quality. Moreover, the system uses a combination of Natural Plants and Machines. It strives to make the air as clean as possible in any setup which requires an utmost clean environment, such as hospital surgical rooms or sensitive manufacturing like optics or computer processors.

Potential uses: Indoor-room, bedroom, hall room, in office, hospital, manufacturing industry, children’s corner etc.

Identify the target market

Finding the ideal customer, understanding what they want or expect from our product, and demonstrating a pleasant post-purchase attitude are among the most critical tasks in marketing strategy.  The marketing process involves locating the ideal customer through market segmentation, preparing the target profiles, and product positioning.

MARKET DRIVERS

Growth in the market results from rise in air pollution levels, increasing health awareness among population, technological advances, and increased prevalence of respiratory diseases, increased geriatric population, and economic growth in emerging markets. Going forward, higher incidence of allergies, rising health consciousness, changing climate conditions, increasing prevalence of obstructive sleep apnea, coronavirus impact, and growing urbanization are expected to drive the market.

MARKET DIVISION

In order to identify the target market, we first divided the entire market into groups according to characteristics. The main goal is to connect with the population group which is most likely to purchase our product. There are basically two types of markets:

1. Consumer Market
2. Industrial Market

These two markets are profitable as they will accept the product quickly because of increasing health concerns related to Air Quality.

SEGMENTATION

Segmentation will be determined by building a synchronization between the needs of the consumers and the benefits offered by the product.

Technology Segmentation

• HEPA Filters
• Activated Charcoal
• Natural plant-based filtration
• Others

Geographic Segmentation

• Region: As 35.4% of Indian population lives in urban areas (Census 2021), the people residing in the urban areas are easy to tap for selling our product. Also it will be easy for us to assess the local markets through electronic stores, shops, malls and sales agents.
• City Status: The people living in metro cities usually face air quality issues owing to the rising pollution and increased number of automobiles. So we will supply our product mainly to them through our stores and distributors.
• Location: Air pollution is currently at its worst in India with over 22 Indian cities included in the list of the most polluted cities in the world. People residing in these cities are to be targeted for sales as they will be ready to spend more money for their health concerns.

Demographic Segmentation

• Consumer Market

1. Age: The main purchaser is the working class who purchase it for self (25-49 years) their children (0-24 years) and the older parents (50+ years).
2. Gender: It consists of both male and female consumers. In Indian market, the purchase decisions lie with the male counterparts usually, yet the females have equal purchasing powers and influencing powers. So, a husband-wife are equally a targeted market.
3. Occupation: Air purifier system is not a small investment to make and is quite influences by the occupation of the customer. Those who are working in services and corporates, or doing a business are more likely to buy the product.
4. Education: Educated consumers are more health conscious who know the repercussions of bad air quality. They are more concerned about the health status of their families. Such consumers will be ready to buy the product.
5. Income: Air purifier system is a big one-time investment. Those who earn less can’t spend on air purifier in one go. So, the strata which earns more than 25,000 will find it easy to purchase the product. With introduction of the no cost EMI schemes and loans, other consumers too can avail the benefits of the product.

• Business Market

Those involved in business-like hospitals, day cares, hotels, nursing homes, airports, malls, offices etc. Moreover, the construction, restoration and manufacturing companies should definitely install the air purifier systems.

TARGETING

Here we will chalk out the target market profiles to understand the consumer behaviour. The main targeted customers of air purifier are:

• A family which consists of infants, small kids and young children.
• Well off families who are much concerned about their health. This also includes families where few family members are doctors.
• People living near construction areas and dust rich areas, near high traffic roads.
• Those who are suffering with air borne diseases like asthma, bronchitis etc. and allergies from dust.
• In businesses like hospitality (hotels, suites), day cares, hospitals and malls etc.

FACTORS AFFECTING THE CONSUMER BEHAVIOR:

• Cultural: It is up to the family members to take precautions if any of the family member unexpectedly contracts an airborne disease or allergy. If there is a strong family influence, they will purchase our product to minimize the indoor air pollution. On the other hand, those who prefer fitness or who value exercise and good health are likely to purchase our product.
• Social: The status of the buyer also influences their purchase behaviour. Upper and upper middle-class consumers that reside in urban areas make up our target market. These people might be influenced by some reference groups to purchase our product. Their family doctor, blogs, experts and magazines or a health organisation like WHO, CARE, etc. may serve as these reference sources.
• Personal: Personal factors include age and life cycle which influences the health choices of the consumers. Moreover, income also plays an important role in buying an air purifier system as it is a big investment. Similarly, location, place of residence, savings, family composition and profile, and access to the market equally influence the market.
• Psychological: This includes a consumer’s lifestyle, thinking process, behavioural impact and ability to adapt to changes. The modern population love adopting new things that increases their status and life expectancy. Basically, they emphasise living an affluent and healthy lifestyle. They will most likely purchase our product if they are motivated to do so and we can somehow set it apart from competing offerings. On the other hand, if we highlight the advantages of air purifiers and encourage people to buy, individuals who are extremely concerned about their health will probably buy our product.

POSITIONING:

The product is positioned with a positioning statement to leave an impact on the minds of the consumers. The main agenda to position our product is to fulfil the customer’s needs at any costs and provide superior quality service to them at economic prices.

Positioning Statement:

PMCASPL Air Purifier System offers the best air purifying facility to address allergy and asthma symptoms, Multiple Chemical Sensitivity (MCS) and air quality issues such as pollution, cigarette smoke and construction dust. Our Air Quality Management System offers real time AQ feedback and send suggestion(s) to users on how to effectively use a mix of Air Loop/purifier and Natural Plants.

USP (Unique Selling Point) features:

• HEPA filtration with a mix of natural plants and machine, filters particulate matter PM 10+
• Catalytic Filter nano tunnels for effective air purification
• Real time AQ feedback, monitoring, analysation and suggestion

Other key features:

• Bluetooth/Wi-Fi enables system
• Touchscreen
• Long life of filters: 5 years warranty
• Easy to replace and repair of parts
• Less power consumption
• Compatible with Alexa, Siri, Google Assistance
• Efficient Automatic sensors and AQMS
• Remote Control with aerodynamic architecture
• Controls: Smart light Control, Night/sleep/silent modes, Allergen mode
• Maintains Humidity levels and neutralizes odour and damp smell
• Easy installation and technical guidance
• Good customer service post purchase and high customer satisfaction
• Benchmarks obtained:

1. Clean Air Delivery Rate (CADR) Rating: 350
2. Minimum Efficiency Reporting Value (MERV) Rating: MERV 17 (Broad Range)
3. Micro Particle Performance Rating (MPR): 2500
4. Filter Performance Rating (FPR): FPR-14
5. Energy Efficiency Rating (EPR): 5 Stars
6. Air purifier Decibel/ Noise Rating: 15db (very quiet air purifier)

Implementing Market Mix Model:

Our target is to use the best marketing mix strategy in all variables so that we can strongly position our product in Consumer’s mind.

 

PRODUCT	PRODUCT STRATEGY	PROCESS STRATEGY	PEOPLE STRATEGY	PRICE STRATEGY	PLACEMENT STRATEGY	PROMOTIONAL STRATEGY
PMCASPL Air Purifier System	Our product is a systematic 3-unit product which utilizes the natural plants, microbiome and algal strains adjusted with the HEPA filters that efficiently removes the air particulates, allergens and dust. The utility of natural biological plants along with the machinery helps in achieving clean air and reduce the greenhouse emissions into the environment. Quick, energy efficient, certified and technologically advance air purifier system. To match with the product market, we will respond quickly according to our customer’s wants and demands.	From efficient aerodynamic designs to rigorous testing to easy installations and customer care, we strive for innovation and perfection Automated production Facility of dropping at premises and technical guidance to the consumer Operational effectiveness and strategic approach	Hiring of creative staff with a problem-solving attitude and risk management. Team work skills Passionate towards engineering, innovation and customer orientation Understanding and approachable staff.	We are adopting penetrating pricing strategy (Our product price will be relatively low during the initial phase to penetrate the market quickly and to attract a large number of buyers to win the large market share) We will fix this price by analyzing the current market demand, product cost analysation, and other factors.	The product could be purchased from the website. mobile app, or from other online merchant sites like Amazon, Flipkart, Ebay etc. The product will also be available in the retail stores located in the cities. We will supply the product to local area distributor who will further send it to the retail stores.	Outdoor advertising (Billboards, Newsletters, Magazines and pamphlets) Digital Presence by Social media marketing, influencer marketing, SEO, YouTube. Offering discounts and coupons with an option of free shipping to first time users Trade and Sales promotion Promotion through collaborations and celebrity endorsements

Brand Establishment:

Brand name and Logo:

CLEAN AIR, EVERYWHERE

As our product uses natural plants for air purifying mechanism, we can name it as “BioBreeze" with a tagline for marketing.

Pre-Purchase

• Print Advertising: This includes Billboards, Flex and banners placed at flyovers, near metro stations to increase the visibility. Apart from this, Newsletters, magazines and newspapers can be used for advertisement purposes.
• Television Commercials
• Trade shows in which our sales representatives will participate and aware the consumers about the product
• Digital Marketing and social media:

1. Creating campaigns with hashtags “#CleanAirIsMyRight”, “#NaturalAirPurifier”, “#CleanAirHealthyUs” etc.
2. SEO Optimization and use of social media like Instagram, Facebook, Twitter etc, to run targeted advertisements in the form of creative reels, videos, posters. These should be non-skippable ads.
3. Using website and mobile app for pushing notifications regarding discounts, offers, sales etc. to attract customer base.
4. YouTube Ads: Sponsored Ads on famous entertainment channels like ScoopWhoop, TVF, Gaming channels, Vlog Channels etc. to increase the brand recognition and recall.
5. Brand discovery by advertising campaigns or retail promotional events on online merchant sites (Amazon, Flipkart etc) during the peak months to reach new-to-category audiences.
6. Streaming TV creative remarketing to engage with the shoppers.
7. Celebrity Endorsements and promotions online
8. Allocating funds for seasonal marketing (Nov-Feb: smog, cracker pollution etc.) to target maximum population

• Collecting Surveys and information from the public to understand the consumer behaviour
• Visit Dealers’ and distributors for carrying out the successful deals
• Increase visibility by the sales persons and marketing team: a solid field sales team that can build relationships at the facility level, successfully leveraging the relationships, and effectively marketing the value proposition that our air purifier and therapeutic system program can offer to the consumers

Purchase

• The purchase stage is all about the distribution. The customers can buy the Air purifier system using a mobile application, websites, merchant sites or through retail stores. The process will be simple and the customer journey will be mapped at every point. Marketing automation tools will be used to keep the customers engaged throughout their journey, right from pre purchase to post purchase.
• Focus on providing incentives and rewards to the sales persons, retailers, and distribution network so that the product is advertised to the customer.
• Conventional marketing
• Credit card offers & discounts for purchase

Post Purchase

• The post purchase stage will focus on customer retention. Hence a few loyalty programs that have to be introduced are discounts for the regular and monthly newsletter subscription.
• Efficient Customer care 24*7 post purchase
• Feedback analysis and Addressal
• On-Location Repair facility
• Providing value-added services like initial consultations, management of all paperwork for order placement, billing and reimbursement, training on the system upon delivery, and management of annual reorder processes.

Brand Projection

Interactions: The interactions will happen through various advertisements, website and mobile app. The phones that will have the website and app installed will interact via the notifications. This will happen for the first 6 months at an excessive pace.

Consistency: The interaction will be kept consistently using various channels of communication including SMS, emails and notifications. In terms of performance, new initiatives will be informed to the customers. This will be continued throughout the customer journey.

Authenticity: To establish the authenticity, use of testimonials, feedback and reviews will be done so that the brand can be established as a trustworthy brand. This will be done in the initial phase for about 6 months.

Trust: To develop trust, excellent service with 24x7 customer service will be provided. Customer grievances will be dealt with utmost importance and attention. This will be continued throughout the customer journey process.

Loyalty: To encourage customers to reuse the service and be loyal, loyalty programs will be introduced after 6 months of successful operation. The customers will be encouraged to provide feedback and their feedback will be taken into consideration. This will be reflected in the advertisements.

Expansion and retention: Another crucial part of the company is revenue growth through customer acquisition and retention. Our website will provide informational content (Content marketing, SEO driven blogs). The website and mobile app will be incredibly fast and simple to use, which will enhance the reputation of our company as "a recognised brand of air purifiers systems." We'll also make an effort to encourage clients and sales representatives to use the internet as our main means of disseminating information about the business and any other relevant information like air pollution, the market, trends, updates etc.

Conclusion

It is quite evident that the market potential for our PMCASPL air purifier system is high. But, to exploit this potential company must take this marketing strategy plan very carefully. The marketing strategy clearly defines how we can create a potential campaign for the brand. It also defines us the Integrated Marketing Communication (IMC) efforts, strategies needed to gain substantial market share in India. We have the clear solution on how we can tap different medium to reach out to our potential consumers without making them confused so that our target consumers will start using our brand and become loyal to this brand. In our promotion we used serious conversation about the health effect and how our product can minimize all these hazards in an environment friendly way.

Attached File Details