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    Session 21 Budget: COMPANY: Bajaj Electricals LTD PRODUCT: Water Heater Team 7

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    aayushi bhandari
    Here is a draft budget for your review: Cost of Goods Sold - Projected unit sales and corresponding revenue from lower, middle and premium segments - Assumptions on price points and segment ratios Marketing Expenses (6% of total advertising budget) - TV, print, digital advertising with frequency and rates - Exchange campaign - Social media with platforms and estimated budgets Technology Expenses - Upgrade of website, app development, it infrastructure etc. Appendix - Industry growth projections - Bajaj Electricals market share and revenue figures Let me know if you need any other items to be included or have suggestions to improve the budget. We can then focus on defining key performance

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    Session 21 Budget: COMPANY: Bajaj Electricals LTD PRODUCT: Water Heater Team 7

    Uploaded by

    aayushi bhandari
    17 views10 pages
    Here is a draft budget for your review: Cost of Goods Sold - Projected unit sales and corresponding revenue from lower, middle and premium segments - Assumptions on price points and segment ratios Marketing Expenses (6% of total advertising budget) - TV, print, digital advertising with frequency and rates - Exchange campaign - Social media with platforms and estimated budgets Technology Expenses - Upgrade of website, app development, it infrastructure etc. Appendix - Industry growth projections - Bajaj Electricals market share and revenue figures Let me know if you need any other items to be included or have suggestions to improve the budget. We can then focus on defining key performance

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    MPC Session 21 team 7

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    Here is a draft budget for your review: Cost of Goods Sold - Projected unit sales and corresponding revenue from lower, middle and premium segments - Assumptions on price points and segment ratios Marketing Expenses (6% of total advertising budget) - TV, print, digital advertising with frequency and rates - Exchange campaign - Social media with platforms and estimated budgets Technology Expenses - Upgrade of website, app development, it infrastructure etc. Appendix - Industry growth projections - Bajaj Electricals market share and revenue figures Let me know if you need any other items to be included or have suggestions to improve the budget. We can then focus on defining key performance

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    17 views10 pages

    Session 21 Budget: COMPANY: Bajaj Electricals LTD PRODUCT: Water Heater Team 7

    Uploaded by

    aayushi bhandari
    Here is a draft budget for your review: Cost of Goods Sold - Projected unit sales and corresponding revenue from lower, middle and premium segments - Assumptions on price points and segment ratios Marketing Expenses (6% of total advertising budget) - TV, print, digital advertising with frequency and rates - Exchange campaign - Social media with platforms and estimated budgets Technology Expenses - Upgrade of website, app development, it infrastructure etc. Appendix - Industry growth projections - Bajaj Electricals market share and revenue figures Let me know if you need any other items to be included or have suggestions to improve the budget. We can then focus on defining key performance

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 10

    SESSION 21

    BUDGET
    COMPANY : Bajaj Electricals LTD
    PRODUCT: Water heater
    TEAM 7

    SUBMITTED BY:
    PUNEET SINGH DHANI (PGFA1939)
    UTKARSH PADIYAR (PGFA1959)
    SHARON ELIZABETH JOSHI (PGFA 1947)
    RAVINA SINGH (PGFA1941)
    AAYUSHI BHANDARI (PGFA1902)
    Marketing Objectives for 2020-21
    • Increase sales revenue by ₹79cr for FY2020-21 i.e. from ₹394 crores to ₹473
    crores. (1)
    • This will lead to an increase market share from 14% to 14.6% for FY2020-21

    Justification:
    • For the past 10 years, sales revenue for Bajaj Electricals Ltd water heaters has
    increased by approximately 5% YoY.
    REASON BEHIND THE OBJECTIVE(1)

    MARKET GROWTH RATE= CAGR 10%


    BAJAJ ELECTRICALS MARKET SHARE= 14%
    WATER HEATER MARKET IN FY2018-19 = Rs. 2840 crores
    PROJECTED WATER HEATER MARKET IN FY2020-21= Rs. 3240 crores
    BAJAJ SALES REVENUE IN FY2019-20= Rs. 394 crores (6% of the company’s total revenue)
    INCREASE IN SALES BY 20%(Rs. 473 crores) would lead to the total market share of 14.6%
    SALES BUDGET FOR FY 2019-20

    Revenue from sale of water heaters


    (in Rs Crores) Price (₹) Units Revenue (₹)

    A 8500 46352.941 394000000

    B 6000 394000 2364000000

    C 4000 295500 1182000000

          3940000000

    Notes: A:B:C=1:6:3
    A= Premium income segment
    B=Middle income segment
    C=Lower income segment
    SALES BUDGET FOR FY 2020-21

    Percentag
    e Change
    Revenue from sale of water in
    heaters (in Rs Crores) Price(₹) Units Revenue(₹) Revenue
    A 8500 55647.06 473000000 20.1
    B 6000 551833.3 3311000000 40.1
    C 4000 236500 946000000 -20.0
          4730000000 20.1

    Notes: A:B:C=1:7:2
    A= Premium income segment
    B=Middle income segment
    C=Lower income segment
    Quarterly Sales Budget for FY2020-21

    Quarter 1 (₹) Quarter 2 (₹) Quarter 3 (₹) Quarter 4 (₹)


          TOTAL

    Forecasted unit sales (in unit)        

    Lower (236500units) 23650 23650 118250 70950

    Middle(551834 units) 55184 55183 275917 165550

    Premium(55648 units) 5565 5565 27824 16694

    Price per unit        

    lower ₹4000 94600000 94600000 473000000 283800000  

    Middle ₹6000 331104000 331098000 1655502000 993300000  

    Premium ₹8500 47302500 47302500 236504000 141899000  

    Total gross sale 473006500 473000500 2365006000 1418999000 4730012000

    Q1:Q2:Q3:Q4 = 1:1:5:3 (1)


      ( In ₹)
    Promotional Expenses
    Advertising & Promotion Expenses  

    Event: Exchange its time to change campaign 1,09,98,000


    T.V Commercials(Colours, Sony TV, Aaj Tak, Zee
    News) (1) 2,34,00,000
    Print Media(Hindustan Times (Hindi) & Time of India)
    (2) 2,83,50,000
    Social media advertisements  
    YouTube 1,00,00,000
    Facebook 50,00,000
    Assumption: Total advertising and promotion expenses on water heater ads is
    6% of total advertising expenses
    Notes (1)  
    Cost (₹)
    Channels
    15000 per 10
    seconds, 12-7 pm
    Star Plus, Colors time slot
    4000 per 10
    seconds, 12-7 pm
    News time slot
    5000 per 10
    seconds, 12-7 pm
    Sony time slot
    39000 per 10
    seconds, 12-7 pm
    For all channels time slot
    Frequency = 5 times a day for 120 days 23400000
       
    Notes (2)  
    PAN India display ad rate per cm square 10500
    PAN India display ad rate (10 by 15 sqaure cms)
    for one day 1575000
    Frequency= 9 times in 3 months 28350000
    Bibliography
    1) https://economictimes.indiatimes.com/industry/cons-products/dura
    bles/indian-households-spend-over-rs-1164-crore-on-purchasing-electri
    c-water-heaters/articleshow/49758632.cms
    • Budget will include
    1. Cost of goods
    2. Marketing expenses- elaborate what expenses and by how much, any additional suggestions expenses to be added
    3. Expenses in technology
    4. Appendix 2
    5. Only marketing expenses to be added based on assumptions on industry standards
    6. Supporting data on all calculations
    7. Next task- performance measures

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