ENTREPRENEURSHIP

CASE STUDY:

BLITZ SUNTAN LOTION

Presented by:
MANISH SARAN
NEHA DHINGRA
GAYATRI MISRA
 UNIQUENESS OF PRODUCT
Different SPF for different skin type

Dual-chamber dispensing bottle

Concept- “YOUTH” & “FUN”

Independent shops to sell

 RESOURCES
HUMAN RESOURCES
Ready for innovation
Unique vision, drive, creativity, intelligence

REPUTATIONAL RESOURCES
Concentration on young & active

ORGANIZATIONAL RESOURCES
Fast & responsive decision making
Zeal to make it a success
SHORT-TERM OBJECTIVE
Creating optimal product

Packaging & advertising

Screening & tests

Sales & distribution challenge

 LONG-TERM OBJECTIVE
 I Year - 1% SHARE OF TOTAL MARKET
(EARNING-$779007)

IV YEAR- 2.5% OF MARKET SHARE

(EARNING-$2.8 MILLION)

ADD-ON GOAL- TO EXPLOIT HIGH BRAND

NAME
Market Analysis
Total Retail SunCare Market

$700 Target Market

$600
• 15- 34
$500
$ (in millions)

$400
• Highly active lifestyle
$300 • College students
$200 • 38% of this segment
$100
• TM : 28.9 million users
$0
1991 1992 1993 1994 1995
(Year)

1994 Retail Market Share

Vaseline IC, 6%
Bain de Soleil, 9% Others, 31%
Hawaiian Tropic,
10%

Banana Boat, 11%

Schering Plough,
33%
 Population Trends by Age Groups
25

20
15-19
15
(million)

20-24
10
25-29

5 30-34

0
1994 1999 2005
(Year)

• 64 % - “Good tan without burning”

• 38% - Complete protection UV rays
• 100% females & 43% males - Small packaging
• 80% females & 29% males – Interest in duel chamber bottle
Competitive Factors
Create a superior formulation
“me-too” at a lower price
Unique looking
Industry analysis
Retailers interest in sun care products

1. It offers high margins

2.Stocking of products in non-
summer months
3.Advertising earlier in the season
Rivalry among firms
High-end cosmetics sold in departments
and drugstores

 National brands sold in national chain

drug and supermarket stores

Small brand sold in surf shops, beach, ski

resorts and local convenience stores
Government regulations
No SPFs greater than 30
Sunscreens to carry a static and water
resistant SPF
Sun alert warning must be stated
Inhibit exposure from UV rays
SPF to be regulated as a drug
Resource requirements
Laboratory to research and develop new
formulas and sunscreens
Factory to produce the sunscreen
Trained scientist to invest and test few
new sunscreens
Managers to start, refine and monitor
production process
Employees to work
Marketing strategy
Packaging
Advertising
Promotions and sponsorships
Pricing strategy
Distribution
 Production process

Zuma design Subcontractor Contract filler

bottle label makes label makes lotion

2nd Subcontractor
Assembling
makes label

Bottles arrive
In Zuma
3rd Subcontractor warehouse
makes label

Distributors Retailers
sell bottle Sell bottle

Brokers sell
bottles
 HRM Strategy
Marketer

Distributor

Manufacturer Relations

Financial Controller

Performance measurer
 BUSINESS FORM
Limited Liability Corporation (LLC)

Maximum 35 owners

No foreign owners

Corporate profit to owners as dividends

No double tax

EQUITY POSITION
100000 shares

I Founder
Founders~ 20000
II Founder shares each
III Founder
IV Founder
Investors
Investors~ remaining
20000
Conclusion

Gives options to consumers

Convenience
Match with consumer’s lifestyle
Minimize costs by subcontracting
Specialized network
 Analysis

Consumers show interest in the product

as it has a dual feature.

Everything is deeply analyzed , there are

rare chances of failure of the product

Patent to capture the uniqueness

 CRITICAL RISKS
Management is unproven

No patent protection

Difficulty raising additional funds

Failure to meet production deadlines

“AS LONG AS THE SUN KEEPS
SHINING,
BLITZ IS SURE TO BE A
WINNER”