Back Up Final Project

31
Marketing Plan for SABSS Whitening Soap Written by: 1

Transcript of Back Up Final Project

Page 1: Back Up Final Project

Marketing Plan forSABSS Whitening Soap

Written by:

FAIZAN PURIMAHESH PANJWANINOOR-UL-ARSHSABA MAQSOOD

1

Page 2: Back Up Final Project

Date: April 3rd, 2011

Private & Confidential

Table of Contents

Executive summary - - - - - - - 3

Company Description - - - - - - - 4

Strategic focus & plan - - - - - - - 5

Mission- - - - - - - - - - - 6Vision - - - - - - - - - - 7Goals - - - - - - - - - - 8Core competency - - - - - - - -

9SWOT analysis - - - - - - - - 8Industry analysis - - - - - - - -

12Competitor Analysis - - - - - - - 13Company analysis - - - - - - - -

12Customer analysis - - - - - - - -

14Market-Product focus - - - - - - -

15Market & product objectives - - - - - -

17

2

Page 3: Back Up Final Project

Marketing program - - - - - - - 18Sales process & impact - - - - - - -

20Financial Data & projections - - - - - -

21Marketing Organization- - - - - - -

23Implementation plan - - - - - - - 24

Executive Summary

SABS Cosmetics introduces new and innovative whitening product in the form of a Hard Soap bar with a key ingredient of Glycolic acid combine with soothing Vitamin E and Aloe Vera with an aim to give everyone access to Skin whitening as an affordable and easy alternative to expensive whitening procedures such as glycolic peels performed in Specialized Clinics.

SABS Cosmetics has been in Cosmetic industry Since 3 years and is becoming a household name, this new and unique product will increase consumers interest and trust.

There are very few beauty products available in the market containing Glycolic Acid being an expensive and controversially hazardous chemical but it is one of the most efficient and effective ingredient available; If used an appropriate quantity and consumers are becoming aware of the effectiveness of glycolic acid. According to the market research consumers demand is increasing day by day because of the awareness and availability of imported products containing glycolic acid imported from US and Europe.

Hence, the launch of this new product will not only increase the company’s revenue but it will also boost up the company’s branding and recognition amongst the fierce competition.

3

Page 4: Back Up Final Project

Company Description

This company was established in year 2008 which specializes in Beauty and Skincare products. Our products are:

Beauty Soaps Facial Foam/Face Wash Sun block

It is presently located in Lahore and Karachi. We acquire 15% of the market share in field of beauty and skincare products.

4

Page 5: Back Up Final Project

Strategy Focus & Plan

Our company is planning a successful launch of a whitening & skin glow soap especially for students, workers and field workers.

We are in the process of planning our nationwide network distribution!

5

Page 6: Back Up Final Project

Mission Statement

To offer anyone & everyone, nationwide & globally, the best of cosmetics in terms of quality, efficacy and safety, to give everyone access to beauty by offering products in harmony with their needs, culture and expectations.

6

Page 7: Back Up Final Project

Vision Statement

SABS is committed to carrying out its mission to make beauty universal in a sustainable and responsible way. A highly exacting challenge, which the group is taking up step by step, in a long-term perspective, with the active involvement of all its employees.

7

Page 8: Back Up Final Project

Goals

To achieve the market share of at least 30% in the next 5 years.

We are anticipating that our sales will dramatically increase by after our successful launch of skin whitening & glow soap.

8

Page 9: Back Up Final Project

Competitive Edge

Our core competency is the glow technology!

It is not only a beauty soap which whitens the skin but the cutting edge is the Glycolic Acid which in turns also increases the glow of skin but also reduces skin aging!On top of that it does not have any harmful side effects which in turn means that this beauty soap can & will be used as a daily beauty regiment, now we give our user an advantage as while travelling they need not to carry their skin care kit as our soap is a complete beauty kit, since we are committed in providing cutting edge technology in skin care so our soap does not dissolve or turns creamy after continuous usage as a result it gives a liberty to our traveling users.

Another core competency is that this soap is not only available in cosmetic shops like other international whitening products are, we ensure the availability of our soap at all stores by engaging our effective distribution network.

9

Page 10: Back Up Final Project

SWOT Analysis

Strengths:

CONTINIOUS RESEARCH AND INNOVATION:

The primary strength of the Company is the continuing research and innovation in the cosmetic industry; which assures that the SABS Cosmetics offers the best to their consumers. Their dedication to their continuous research makes them the fast growing company in the growing cosmetics industry despite the competition in the market.

INTENSIVE SALES AND DISTRIBUTION

The company has strong distribution across the nation. The product distribution channel consists of Sales to Whole sellers and Retailers and then finally to consumers.

10

Page 11: Back Up Final Project

Weakness:

LOW MARKET SHARE

As the company has the low market share it is difficult to invest more on product development & marketing

SMALL AND YOUNG COMPANY

As we are the new and young company in the market it’s difficult to create credibility for the product but the Efficacy of the product, Marketing Campaigns and T.V. Commercials can be helpful to overcome this weakness and turn it into strength.

Opportunities:

TARGET THE MEN

Increased interest of men in their appearance (The ‘Metro-sexual’ factor)

GROWING DEMAND OF BEAUTY PRODUCTS

The growing demand for beauty products gives Sabs the opportunity to focus on Beauty and Skincare products.

Threats:

INTENSIVE COMPETITION

11

Page 12: Back Up Final Project

A threat to the SABS group is also the growing competition within the field of Beauty and Skin Care brands. Due to the ongoing addition to the field of cosmetics, there is still the danger that other brands could surpass the profit of SABS.

ECONOMIC DOWNTURN

The economic downturn that is quite evident in Pakistan. Such could thus hurt the possibility of high profit for the company.

Industry Analysis

The company was established few years back therefore it hasn’t occupied the market to the optimum that its competitor is acquiring. But it focuses on the continuous research and innovation targeting the youth which will help them increase their market share.

There are many competing organization but as we are focusing on youth therefore. Our tough competitor is PONDS whitening products acquiring 50% of whitening market share and L’OREAL acquiring 25% Market Share in the markets.

12

Page 13: Back Up Final Project

Our detailed researches have showed that our product will capture good market share in future if marketed properly in order to create awareness for the product.

Competitor Analysis

MAJOR COMPETITORS: Skincare, L’Oreal and PONDS.

OTHER COMPETITORS:

Golden pearl soap, Blesso Acne Whitening Soap, ISPA Whitening Soap, Black & white Milk

13

Page 14: Back Up Final Project

The players in the Whitening Soap market include Biolink, Herbana, Freyra, Original Derma Papaya Whitening Soap. In addition, the players in the Orange Papaya Whitening Soap market includes Silka, Kissa, Safeguard, Palmolive, YSA Botanica, Hiyas, Likas, Block & White Papaya, Ganda Papaya, Epiderm Orange, Derma Papaya, MediHerbs, and Safeguard Papaya.

skin white, likewise has a premium pricing strategy. However, it onlyadvertises through billboards, on the other hand is distributed through direct marketing. It has a low pricing strategy though Silka's price is lower than Freyra.

Our main competitor is PONDS, LOREAL and SKINCARE.

Customer Analysis

Due to extreme hot weather in Pakistan students, Workers and field workers are exposed to sun which results in skin darkening due to increased melanin production. Thus it is suitable for Male and female both.According to our company, low pricing but high quality strategy is targeting socially oriented students, and blue and white-collar workers both male and female aged 18 to 35 years old.

14

Page 15: Back Up Final Project

Market-product focus

Marketing & Product Objectives

Demographic:

Age: 18 & aboveGender: BothOccupation: Students, professionals and field workers

15

Page 16: Back Up Final Project

Geographical:

Country: PakistanDensity: UrbanCities: Karachi & Lahore

Psychographic:

Social class: Middle Middle, Middle Upper and Upper UpperLifestyle: Value Oriented, Social & Active.

Behavioral: Any occasionBenefits: Whitening effect which also Moisturizes skin with a soothing effect.

Target markets: Students, Workers and field workers

Points of difference:

Products with Glycolic acid are in the growth stage. There are very few products available in the market imported from U.S. and Europe but they are very expensive and out of reach of masses of Pakistan. Our innovative product will cater to consumers in Pakistan seeking effective and efficient whitening product at affordable Rate.

Our Soap can also serve as an alternative to painful and expensive procedures such as glycolic peels only available at specialize

16

Page 17: Back Up Final Project

cosmetologists/ Skin Specialists. Hence, it provides similar results available to consumers in their bathrooms.

Moreover, it is available in two sizes; standard in paper box packing and travel pack in a plastic box packing that can be carried with consumers.

Another quality of our soap is that it does not dissolve easily like other soaps such as Dove and Skin White. As a result our soap lasts long and it provides high value product to the consumers.

Positioning:

The product would be positioned very differently in order to create awareness for the consumer. Different channels are being used in order to build image in consumer’s mind.

A very effective tool is expert doctor’s recommendations. We created a team which will approach all the familiar doctors. These child specialists and gynecologist will suggest our products to their patients.

Mobile bill boards will also use in order to set a position in consumer’s mind.

PRODUCT DESCRIPTION:

Our whitening soap is a blend of Glycolic Acid, Vitamin E, Aloe Vera and Herbal ingredients.

Asian skin contains more melanin in their skin and when they expose to sun that causes Skin Darkening due to the increased Melanin production.

17

Page 18: Back Up Final Project

A glycolic acid works best to reverse sun damage, treating brown, uneven spots on your skin naturally but can also be used to diminish freckles and the wrinkles and fine lines associated from overexposure to the sun because it reduces the melanin production in Skin.

In addition, glycolic acid works well for treating acne. It works because it helps to shrink pores, giving the skin a healthy flawless glow and unclog pores associated with blackheads. It dissipates Purplish, painful acne as well.

Vitamin E plays a role in the anti-aging of skin. It helps skin look younger by reducing the appearance of fine lines and wrinkles. Also, free radicals are believed to play an important role in skin aging and therefore the antioxidant activity is quite valuable for this skin problem.

Aloe Vera is a cactus-like plant growing in the warmer climates of the world and is described as succulents. Aloe Vera is a very popular herbal remedyAloe Vera is beneficial for cracked and dry skin because it provides moisturizer which makes the skin smooth and glowing.

Marketing Program

Product:

18

Page 19: Back Up Final Project

Brand name is SABS. It is especially developed for all skin types, ages and for both Male and Female.

The SABS Group wants to be known for their continuous innovation in order to provide the quality product we offer to the consumers.Part of our strategic plan is to cater to the best interest of their costumers, in other words, customer satisfaction.

Whitening soap is available in 2 different sizes, including:◦ Standard Size◦ Travel Pack

Price:

Standard Size: Price of PKR 410 is fixed for the product of 250 gm.

Travel Pack: Price of PKR 285 is fixed for the product of 150 gm.

Promotion:

SABS will take on actresses or different personalities of all ages in their T.V. ads that best exudes the vision of the Company. Famous

19

Page 20: Back Up Final Project

personalities enable average individuals to relate to their personal lives, that they can look as good, and so ensures higher sales.

TV ad (between 7 to 9 at GEO ENTERTAINMENT 12 times daily) and (at GEO NEWS between 10 to 11 during news 5 times daily)Which will be on air after every 3rd advertisement

Expert beautician recommendationsWe have selected top most dermatologists and they will recommend our product.

In store promotion will also be conducted.The stores include:

Zubaida’s mother shop Mothercare Baby shop Naheed supermarket Makro Metro Agha’s Imtiaz Super market Chase up Hyperstar Pace Other supermarkets of different areas All the retailer’s and medical stores

Gondolas and aisle advertising would be used!Mobile billboards will also be used in main areas.

Place:

All retail and wholesale stores which are easily approachable.

placing it in all the supermarkets as well as medical stores.

Sales Process & Impact

A national manager, under him 2 regional sales managers. Sales team will be formed. Every sales team will be allocated with the sales target and incentives would be given to meet the target. If

20

Page 21: Back Up Final Project

achieved 30% extra sales over target 10% of the salary would be given.

Sales team will use distributors, wholesalers and retailers:

Wholesaler:

Any wholesaler placing order above 50000 units or above monthly would be given 5% of discount on total invoice and would be given special bonuses. Three best wholesalers placing the maximum orders would be given a spiff (cash bonus) of PKR 10000 for the first three months.

Retailers:

The retailer’s placing the SABS on the front shelf making possible maximum display to our product will be given a free rack of SABS.The three top selling retailers of the first three months of the launch would be given cash prizes every month.Retailers of same region, having the best promotional display will win PKR 10000

Distributor:

Distributor will get 12% commission instead of the commission if distributor achieved above target they will get bonus.Every month the performance of the distributor will be evaluated and the distributor with maximum coverage and delivery on time, making availability and easy reach for the consumer possible will be given cash bonuses.

Financial Data

Rate Rs.Initial Price 180Packaging & Printing Cost 10

21

Page 22: Back Up Final Project

cost after packaging 190Commission of Distributor 0.12*190 22.8Commission of Retailer 0.15*190 28.5Cost after commissions 241.3Gross Profit Margin 0.45*241.3 108.5Price before GST 350GST 0.17*350 60Consumer's Price 410

Total Revenue (25000 x 410) 10250000

Total Cost Rs.

fixed cost 3,075,850Variable Cost 6,032,500Total Cost 9,108,350

Profit 1,141,650

Profit of a month 380,550

Break Even in Rs. 7475392In Units 18233

Fixed Cost totalOffice rent 100000Warehouse 100000Salaries Expenses 300000Transportation expenses 60000Utility Expenses 85000Advertising Expense 2390850Entertainment Expense 40000Fixed cost 3075850

Advertising expense Rs.

Geo News100000

0Geo Entertainment 500000

22

Page 23: Back Up Final Project

Ad making expense 150000Doctors expense 200000Mobile Billboards 250000Gondola 150000Assel advertising 140850

Total239085

0

Note: Financial data is for the new product Sabs Whitening Soap for the time period of 3 months only.

MARKETING ORGANIZATION

Phase 1 Awareness

This phase spread over 1 month time period.

23

Page 24: Back Up Final Project

We plan 35% reach of our marketing during the initial period.We will ensure that our promotion tools are placed rightly.We will ensure the product is available at our targeted areas.

Media objectives:

70% of the target market will see the TVC at least three times during first three weeksT.V. ads would be aired on regular basis for 3 weeks. After that we will go for the channels where our targeted market is present.

Phase 2 Attitude

Changing attitudes and behaviors of our target market by influencing and using Skin Specialist. Positive reinforcement would be given to the consumers by showing them the advantages of this whitening Soap.

Phase 3 Engage

Engage phase involves consumer in the brand and make him experience the brand. For this samples would be distributed through doctors to the potential customers.

Implementation plan

24

Page 25: Back Up Final Project

Research & development department will continuously monitor the changes occurring in the society according to that our macro environmental factors would be controlled and actions would be taken side by side in order to remain successful in market.

Our management team is very active and advanced. Our entire management mechanism will be controlled by them. In order to be cost effective our HR & finance department will support the management team.

Our advertising activities would be outsourced. Advertising agency would be hired in order to conduct all the marketing activities effectively.

Our sales and distribution team will work effectively as plan designed is very fruitful.

25