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Business Plan for Palmer’s

USP of Palmer’s
1) J&J as a quality and innovative product driven
company
2) 2) Contributions made to R&D – $6.88 billion in 2009
3) Synonymous with “soft and smooth”
Distribution Channel for Palmer’s
Wholesale – 20%
Modern Trade – 35%
General Trade – 25%
Pharmacy – 20%

Wholesale
Modern Trade
General Trade
Pharmacy
Import Duty Structure
Value and Duty Description Duty Percentage Total
A. Let CIF Price + Landing charges = 100
Let MRP = 300
Value and Duty Description Custom Duty Rates Calculated Amt.
B. Basic/Effective Duty of Customs (%) 10% of A 10
C. Additional Duty of Customs(CVD) (%) 10% on (MRP-35%) 19.5
D. Central Excise Education Cess (%) 3% of C 0.59
E. Customs Education Cess (if any) (%) 3% of (B+C+D) 0.61
F. Special Additional Duty of Customs(Spl.CVD) (if any) (%) 4% of (A+B+C+D+E) 5.17
Total(approx 35%) 35.87
Total Landing Value 135.87
*Additional 4% of Landing value as clearing charges
Margin Structure for Palmer’s
Margins For

25% Importers Margins, Labeling , Sales Salary, Warehousing,


10% A&SP Fund
7% CFA
10% Distributor’s Margin, Transport, Warehousing
15% VAT
25% Retailer’s Margin
Palmer’s product range for India
Products

Palmer's Lotion Cocoa Butter 8.5oz


Palmer's Lotion Cocoa Butter 13.5oz with pump
Palmer's Lotion Olive Butter 8.5oz
Palmer's Lotion Olive Butter 13.5 oz with pump
Palmer's Lotion Aloe Vera 8.5oz
Palmer's Cocoa Butter Jar 3.5oz and 7.5 oz
Palmer’s Shea Butter Jar 3.5 oz
Palmer’s Shea Butter Lotion 8.5 oz
Palmer's Cocoa Butter Lotion for Stretch marks 8.5 oz
Palmer's Cocoa Butter Tube for Stretch marks 4.4 oz
Palmer's Cocoa Butter Tube for Bust Firming 4.4 oz
Palmer's Cocoa Butter Lotion for Post Natal Firming 8.5 oz
Palmer’s product range for India
Products

Palmer's Cocoa Butter Lotion for Skin Firming 8.5 oz


Palmer's Cocoa Butter Lotion for Leg Relief 8.5 oz
Palmer's Cocoa Butter Bottom Butter Tube 4.4 oz
Palmer’s Cocoa Butter Tummy Butter Jar 4.4 oz
Palmer’s Fragrance Free Lotion 8.5oz & 13.5 oz
Palmer's Skin Success Moisturizing Cream Jar 4.4 oz
Palmer's Skin Success Fade Cream Jar (Regular) 2.7 oz
Palmer's Skin Success Fade Cream Jar (Oily) 2.7 oz
Palmer's Skin Success Fade Cream Jar (Dry) 2.7 oz
Palmer's Scar Serum 1 fl oz.
Palmer’s Body Gloss Tube 4 oz
Palmer’s Body Gloss Lotion 13.5 oz
Palmer’s product range for India
Products

Palmer’s Foot Magic Tube 4.4 oz


Palmer’s Moisturizing Body Wash 8.5 oz
Palmer’s Lip Balm .15 oz
Skin Success Moisturizing Cream 4.4 oz
Skin Success Moisturizing Lotion 8.5 oz
Cream Bar Soap 3.5 oz
Palmer’s Anti Darkening Cream 8.5 oz
Evertone Fade Milk Lotion Non HQ 8.5 oz
Palmer’s Skin Anti Ageing Serum 1.7 oz
Palmer’s Deep Cleansing Facial Astrigent 8.5 oz
Palmer’s Hair Food Formula 5.25 oz
Palmer’s Hair Success Gro Treatment 3.5 oz & 7.25 oz
Pictures of Palmer’s products for India.
State wise distribution for Palmer’s
State No. of Distributors No. of Retailers
Jammu & Kashmir 2 200
Himachal Pradesh & Punjab 5 500
Haryana 4 400
Rajasthan 5 500
Delhi 4 700
U.P. 5 500
Uttrakhand 2 200
Goa 1 100
Madhya Pradesh 4 400
Chhattisgarh 2 200
Jharkhand & Bihar 4 300
State wise distribution for Palmer’s
State No. of Distributors No. of Retailers
West Bengal 4 400
Orissa 3 200
Andhra Pradesh 4 500
Karnataka 5 600
Tamil Nadu 3 500
Kerala 3 400
Maharashtra 4 700
Assam 2 300
Rest of East India 6 400
Total 72 8000
1st Year Plan
-We plan to start by launching in the major cities of North India
and cover about 3000 outlets.

- After closely studying the market in North India for six months,
we will look to give Palmer’s an all India presence, covering
about 8,000 outlets

- By the end of first year, we plan to place orders to the tune of


about USD $ 1.5 million from Palmer’s
5 year Plan
-After successfully establishing an all India presence within the
metropolitan cities, we will look at extending distribution to the
Tier-B cities. Within 5 years, we plan to cover about 40,000
outlets and to make purchases totaling about USD $ 3.5 million
from Palmer’s.
Growth in Palmer’s distribution
Year No. of Outlets Purchase form Palmer’s
2010-2011 8,000 USD $ 1,500,000
2011-2012 12,000 USD $ 2,000,000
2012-2013 20,000 USD $ 2,500,000
2013-2014 30,000 USD $ 3,000,000
2014-2015 40,000 USD $ 3,500,000
Marketing Plan for Palmer’s
-Since Palmer’s products are placed in a niche category, we have to
educate consumers about the benefits of Palmer’s products through
beauty assistants in major outlets.

- We will also tie up with gynecologists to prescribe Palmer’s


stretch mark range of products for pregnant women.

- We maintain a strong presence in pharmacies, which are an


important distribution channel for Palmer’s, since we are
distributing Johnsons and Johnsons’ products through the same
channels.
Support from the company
-Since the products are already coming from the grey channel, we
will need to employ a very aggressive pricing strategy to launch the
products in the proper distribution channels.

- In order to stop grey market penetration, we will also need to launch


consumer promotion schemes.

- Lots of promotional sachets will be required to distribute to doctors


and prospective consumers.

- Advertisements and Articles in major women magazines in India


will help educate consumers about the availability and advantages of
Palmer’s products.
Thank You

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