Lynn products 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, Lynn will build brand
identity, establishing the company as the standard for improving hand
washing compliance.
As Lynn products 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.
 If we are able to distribute our product through existing distributors, it
will provide us a significant financial advantage, as well as the ability to
meet the quick increase in demand for our product.
Beginning with an initial monthly sale of Rs.10000 for our day care soap
product (CHILDassure), we predict sales will increase by 45% per month
for the first year.
We then calculate a growth rate of 90% yearly. Cost of Goods Sold is
approximately 47% of sales. However, COGS grows at a yearly rate of
88%, which is less than the sales growth rate in order to represent the
economies of scale that we hope to achieve as our operations grows.
Expenses are increasing at the rate of 10% monthly for one year and
than 60% yearly.
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
Start-up Expenses Start-up
Legal
Assets

Stationery etc. Cash

Required
Brochures

Consultants Start-up
Inventory
Insurance
Other Current
Rent
Assets
Website
Development Long-term
Assets
Research and
Development

Expensed
Equipment

Other
 Total investment= 1400000
Net profit/year=204780.1487
ROI=(Net Profit/ Total
investment)*100=42.657
Payback= 2 Years and 4.4 months
 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.
We will 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 "first to mind" branding campaign will build CHILDassure as the leader in
increasing hand washing compliance.
Significant parental support will encourage organizations to implement
CHILDassure in environments involving their children.
Positioning Statement
CHILDassure 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.
Pricing Strategy
Retail pricing for CHILDassure will generally be around Rs. 600 for 5 ltr. Bottle,
Rs. 220 for 900 ml bottle and Rs.110 for 500 ml pouch refill and will command a
15-20% price premium over conventional liquid soaps.
The value of our 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.
Promotion Strategy
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 and PTAs.
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.
Distribution Strategy
Our initial distribution strategy will involve a combination of distributor
and direct sales.
Relationships with local 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 Lynn to 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 Lynn to maintain a more flexible structure.
By the start of 2018, distribution will be entirely outsourced to
distribution companies, and direct deliveries from the executive team
will cease.
Distributor margin is- 9-11%
Retailer margin is-5-7%