Marketing Plan

For

Cleopatra Beauty & Fairness Cream

Executive summary

Kohinoor group of industries is preparing to launch a new beauty and fairness cream

name “Cleopatra beauty and fairness cream in a mature market. Despite the

dominance of fair and lovely, Ponds and other establishes brand, we can compete

because our offering combines exclusive features at a value added price .We have

identified that there is a huge demand for quality beauty cream in both national &

international market .Initially we are targeting only the urban consumer mostly the

female consumer. In future we have plan to introduce our product in both rural and

international market .

The primary marketing objective of the plan is to achieve first year market

Share of 2% in the Bangladesh market and unit sale of 500000. The primary

Financial Object is to achieve first year sales revenue of 1.6 corer taka.

Marketing Plan 1

. CURRENT MARKETING SITUATION

Kohinoor group of industries in Bangladesh have recently purchase a patent fairness

beauty cream from a Bangladeshi scientist who had invented this formula 1 year ago

and planning to introduce this produce with little modification to the consumer

market. Despite, our product is going to launch in the mature market, the market is

expecting a 27% growth within 5 years, if we combine our marketing mix efficiently

and offer quality beauty cream accordingly the consumers needs.

Market Description:

There are option for the company to launch the product to the local and international

market .At first, we are targeting only the urban consumers in the local market .The

population of our country is 15 corer and approximately 70% people in our country

lives in urban area and among almost 45% are female and this 47250,000 core urban

female consumers whom are very conscious about personal beauty and safety are our

primary target.

Urban Dweller = 138448210 X 26%

=35996534.6

Female consumer among the urban dweller = 35996534.6*45%

= 16198440.57

Marketing Plan 2

On the other hand , we have plan to divide this female market in some segments .We

intended to divide the market according to the following segment able variable

occupation , income , different age , life circle .Working class women , house wife’s

, teenagers , young lady , married and unmarried women will trite according to their

needs and wants .

Competitive review:

There is a huge demand for quality beauty cream in both national and international

market and this site has huge growth & high profit potential in spite of vigorous

completion. Large number of competitor are competing both from the national and

international market and it has reduce price and forced the companies to continuous

add feature. Some socialized cream such as anti – marks cream producer are also

could be a headache. But there is still demand for good quality beauty cream and

consumer and consumer can substitute well at value or even high price if it satisfies

there needs. The major competitor in the market are Fair and lovely who have some

draw back but still is the market leader in this part of the market . Others are also

fighting well are showing below in the table:

Fair & Lovely Product of Unilever & Market Leader

absorb 75% of market share ,Good

Distribution system , High Price

Jordana International Brand Lack of brand

awareness and promotion is main

problem.

Ponds Product of Unilever, good distribution,

Marketing Plan 3

high price.

Nevia International Brand Lack of brand

awareness and promotion is main

problem.

Tibbet Local Brand, low price, Doing well in

rural market.

.

PRODUCT REVIEW: PRODUCT REVIEW:

Our product Cleopatra beauty and fairness cream will offer the following offers:

Multi Color Pink White ,Lemon

Multi Purpose –

#Night cream- Makes skin tight

# Sun cream- ability to protect from sun (U.V)

50, 75, 100gm bottle/ tube.

Marketing Plan 4

Deodorant

Anticipative

Optional – A Mirror is Attached with the product

Dark & light spot remover

No Danger on skin

DISTRIBUTION REVIEW:DISTRIBUTION REVIEW:

A branded product will be distributed through a network of selected store and non

store retailer in the market. Among the most important channel partners being

contracted are: 

Retailers: We can use some retailers by giving push money & specialty advertising

items. 

Superstores: Superstores like Agora, PQS, Nandan, Small retail store etc. will carry

our product for a promotional fee. 

Company sells forces: Kohinoor group industry can engage their own sells forces for

distributing their product.

SEGMENTATION

Segmentation means dividing the market into distinctive groups of buyers on the basis

of needs characteristics or behaviors of consumers. Segmentation can be done in four

ways like – Geographic segmentation, Demographic segmentation, Psychographic

segmentation and Behavioral approach.

•Geographic segmentation:

Region: city areas

Marketing Plan 5

•Demographic segmentation:

Age: 13-40, but specially emphasis on age groups of 12-19, and 20-35.

•psychographic segmentation:

Social class: middle class to upper class

•Behavioral segmentation:

Benefits: Quality products

Reading stage: Knowledge

Attitude toward product: Enthusiastic and positive

TARGETING

Initially for target the market we will go for women who are living in urban areas. In

this case we followed geographic segmentation and the demographic segmentation as

well. The causes behind of targeting urban women are –

First- The price of the product, as the price of this product is a bit high which is only

affordable by the urban people. Because we all know that the people of urban are

relatively rich then the rural people.

Marketing Plan 6

Second- Use of quality product, in this case urban people are more quality conscious

than the rural people.

POSITIONING

Positioning is the act of designing the company’s offering and image to occupy a

distinctive place in the target market’s mind. Such as - to create awareness about the

product. We have to position our brand “Cleopatra beauty and fairness cream” by the

desire of the target consumer:

“Cleopatra beauty and fairness cream” is a brand which is different from another

beauty and fairness cream product. . In the positioning stage we are thinking about

value proposition. Value proposition is the way where we reflect the core things what

we are providing as per as the desire of the target consumer. So the positioning should

be such where the core things will be reflected.

SWOT ANALYSIS

Strengths

“Cleopatra beauty and fairness cream” provides better quality and more

quantity than any other brand in the market with a very conspicuous brand

name and package.

“Cleopatra beauty and fairness cream” has a strong technical support.

“Cleopatra beauty and fairness cream” talks quality and gives quality to its

customers.

Marketing Plan 7

“Cleopatra beauty and fairness cream” has sufficient manufacturing plant with

the capacity to meet the demand.

Micro marketing – remove spot in skin

Make skin bright and tight.

Safety from cold and heat

Makes Looks fresh likes fruit.

It follows a penetration pricing and thus offering “More for less”.

Weakness

“Cleopatra beauty and fairness cream” does not have a strong financial back

up.

It’s mainly for female.

Too much version

Because of a diminutive budget, “Cleopatra beauty and fairness cream” does

not have a strong distribution system. Therefore cannot penetrate the markets

of rural areas.

Lack of brand awareness

Marketing Plan 8

Opportunity

Huge Demand for quality beauty cream.

The market is large in this business.

Chance of introduce it in rural market & export it in international market in

future.

Could Lunch a new brand for male consumers. Few firms are following the

promotion mix, especially they are lacking in sales promotion but in this case

“Cleopatra beauty and fairness cream” is strongly following this strategy.

Threats

The market has become competitive in terms of number of competitors as well

as possible entrants of some new companies.

Consumers are exposed to ads given by some companies.

Completion with established company such as unliver .

Increasing raw materials cost plus oil cost.

Economical condition of the country

Lack of good distribution system.

OBJECTIVES AND ISSUES

As our product Cleopatra beauty and fairness cream is a new product in the market.

So we have set marketing objectives for this new product development process. It is

designing initial marketing objectives for a new product based on the product concept.

Marketing Plan 9

The marketing strategy consists of three parts. They are shown below-

Part 1:

The first part describes the target market, the planned product positioning, & the sales,

Market Share & the goals for the first few years. Thus: our target market is the

women consumers of urban area of our country. We have chosen urban area because

most of the women in urban area are conscious about quality product and they have

sufficient ability to buy our product than rural consumer. .

1 st year objective: Introduce the products: The Company would asses the market and then

modify the products according the needs of the target segments.

Build public awareness: In the first year the company would mostly focus on

building public awareness about the necessity of hair products.

Build brand image: The Company would also want to develop brand image of

the company in the local market.

Part 2:

Marketing Plan 10

Part 1: Describes overall:Target market

Planned product positioningSales and profit goals

Market share

Part 2: Describes first yearProducts planned price

DistributionMarketing budget

Part 3: Describes long termSales and Profit goals

Marketing mix strategy

The second part of the marketing strategy statement outlines the product’s planned

price, distribution & marketing budget for the first year:

With 5% offs the least price to dealers. Dealers who sell more than 2500 units per

month will get an additional discount of 2% on each 500 unit sold that month. The

advertising budget will be split 50-50 between a national media campaign and local

advertising. Advertising will emphasize the product quality. During the first year we

will spend budget on marketing research to find out who is buying the product and

their satisfaction level.

Part 3:

The third part of the marketing strategy statement describes the planned long run

sales, profit goals, marketing mix strategy:

Our company will intend to capture a 2% long run share of the total beauty and

fairness cream market and will realize an after tax return on investment of 9% .To

achieve this, product quality will start high and be improved over time. Price will be

raised in the 2nd & 3rd years if competition permits.

Long-term objective:

Build public awareness: In the second year also the company would focus on

developing public awareness of the company products.

Build brand image : Further efforts will also be taken to strengthen the brand

image of the company.

Marketing Plan 11

Develop some market share : By the end of the year the company should be

able to gain some market share.

Evaluate marketing strategy : After the end of second period the company

would have to evaluate the marketing goals and objectives and make required

changes if necessary.

MARKETING STRATEGIES

The development of marketing strategies for each business should be realistically tied

to the target market. Our product is specially targeted to the educated and urban

women. While planning for our marketing strategies we also kept in mind that when

corporate resources are scarce and corporate strengths are limited, it is fatal to spread

them across to many markets. Rather, these critical resources should be concentrated

on those key markets (key in terms of type of market, geographic location, time of

entry, and commitment) that are decisive for the business’s success. This portion of

our plan will identify different aspects of marketing strategies that we are going to

pursue:

MARKET STRATEGIESMARKET STRATEGIES

Marketing Plan 12

Marketing strategies deal with the perspectives of markets to be served. Instead of

limiting business to one segment and thus putting all the eggs in one basket, we are

going to serve several segments like housewives, working women and female

students. We are basically going to focus on a national market. That we think will

open up the opportunities for growth. But we are planning to acquire several

important regions first like Dhaka, Chittagong, Rajshahi, Khulna and then we will

compete nationally. As we are adopting the laggard strategy, entering the market

toward the tail end of the growth phase, we will have to compete strongly with the

established brands like ponds, fair and lovely. We want to effectively compete in the

industry even with established firms by diligently delineating the markets to be

served.

PRODUCT STRATEGIESPRODUCT STRATEGIES

Product strategies reflect the mission of the business unit and the business it is in. We

are going to position our product by using marketing mix variables and by providing

different features with the product. The difference will be clearly defined for our

product Cleopatra beauty and fairness cream with the non-brand and other brand

beauty and fairness cream through the values what it is providing. On the other hand,

to match with the product market we will respond quickly according to our

customer’s wants and demands. We will put the batch no, manufacturing date and the

expiration date in the packet.

PRICING STRATEGIESPRICING STRATEGIES

Marketing Plan 13

Basically, a price needs to review four factors to arrive at a price: pricing objectives,

cost, competition and demand. Along with our pricing objectives, cost, and demand

we will give emphasis on competitor’s price while setting our one. As beauty and

fairness cream market in our country comprising a large number of active firms like

ponds, fair and lovely, the competition is fierce. On the other hand, among the two

principal pricing strategies, skimming and penetration, we are going to adopt

penetrating pricing that means our products price will be relatively low during the

initial stage to penetrate the market quickly and deeply in order to attract a large

number of buyers quickly and win a large market share. High price elasticity of

demand of the beauty and fairness cream is another reason why we are adopting

penetration strategy.

Gm Price Of Tube

45 gm 32

75 gm 54

100 gm 72

DISTRIBUTION STRATEGIESDISTRIBUTION STRATEGIES

Distribution strategies are concerned with the flow of goods and services from

manufacturers to customers. We are going to use indirect distribution channels means

our distribution process will involve the use of different intermediaries such as

wholesalers and retailers to reach the optimal number of customers in a timely manner

at the lowest possible cost while maintaining the desired degree of control. Our Marketing Plan 14

channel strategy is to use intensive distribution to have our product Cleopatra beauty

and fairness cream sold through each and every retailer stores of the country. Time to

time we will also evaluate our channel-members based on their performance and will

modify the process if needed. To resolve any kind of conflict, if arise, we will

nominate any of our employee to act as a diplomat among channel members. We will

also welcome the frequent formal interaction with the channel members to develop an

appreciation of each other’s perspectives. Our channel will be like following:

Cleopatra beauty and fairness cream ► Wholesaler

►Retailer ► Customer.

PROMOTION STRATEGIESPROMOTION STRATEGIES

Promotion strategies are concerned with the planning, implementation, and control of

persuasive communication with customers. The first strategic issue involved here is

how much money may be spent on the promotion of Cleopatra beauty and fairness

cream. Cleopatra beauty and fairness cream should be used the Buildup Method. That

is the company should have advertising, sales and sales promotion managers who

would report to the marketing manager. The marketing manager would specify the

objectives of promotion separately for the advertising, sales and sales promotion of

each product. After defining the departmental objective, each department would work

out a detailed budget which would later be evaluated and then approved by the

marketing manger. This strategy allows the company to have more control over the

promotion expenditure. Cleopatra should be used a combination of advertising and

sales promotion as its promotional mix strategy.

Marketing Plan 15

ACTION PROGRAMS

Cleopatra was a queen of Greece and a very famous personality. She was the one lady

who first invented perfume for ladies. So our Cleopatra beauty & fairness cream

belongs to the ladies only. We will launch our product on the “Valentine Day”, on 14 th

February. . Following are summary of the action programs we will use during the first

six months of next year to achieve our stated objectives.

JANUARY:

In first week on January we will make an announcement on TV & Internet for the

people, “A new Beauty & Fairness Cream is coming soon only for ladies.” The

announcement will continue till second week. In third week we will give another

announcement “Girls Do you want soft and fair skin? A Fairness cream is coming

soon only for you” and it will continue to end of January. At this time we will shoot

our first visual advertisement with a famous celebrity. We will begin Tk. 10, 00,000

trade sales promotion campaign to educate dealers, consumers & create excitement

for the product. We will train some people about the product and make some groups,

who will go beauty parlors and markets for the promotion. They will educate the

beauty parlors workers and keep contact with the dealers.

FEBRUARY:

In first and second week of February before launching the product on 14th Feb, we

will give some voluntary product on beauty parlors, colleges and universities. In this

time we will educate our print and media partner about the product. We will start an

integrated print, radio and internet campaign targeting the dealers and consumers. The

campaign will show how the fairness cream helps to glow the skin in quick time of

period without any side effect on skin, better and quicker than any other fairness

Marketing Plan 16

cream available in the market. In first week of February we will show our first visual

advertisement on TV, radio and internet. On 14th February we will arrange the

launching party in a five star hotel. As the day is the “Valentine Day” we will arrange

a beauty contest. We will find “Miss Valentine” from the launching party and we will

give her a crown and price money and one year free contract of the product.

MARCH:

In March we will continue our multimedia advertising. We will Chose one or two

famous female model or TV or movie actress, and bring them under the roof of our

product, who will do promotion for the product. At the end of the month we will do a

newspaper contest to know how our product is accepted to our consumers. We will

ask “Why you like the product” write your opinion in hundred words and give a

packet of the product and 100 lucky winners will get one year free product.

APRIL

In first week of April we will give the prize of the newspaper contest. In the middle of

the April we will try to get title sponsorship of beauty contests like “Miss

Bangladesh” If it is not possible we will start a beauty contest on any of the popular

TV channel. The contest will continue whole April

MAY:

In the end of the may we will end our contest and give the prize to the winners. We

will give them money and one year free product. We will give the first winner crown

and bring her under the roof of our product. We will continue our advertising on print

and television.

JUNE:

In June we will give our consumers some benefits to increase the sale again. We will

give them offer like “If you buy a Cleopatra beauty & fairness cream, you will get

Marketing Plan 17

Kohinoor mini pack shampoo free. We will do a attractive advertisement with the

winner of the beauty contest. In addition, we will mark & analyze the consequences of

consumer satisfaction by surveys for future promotions & getting feedback of

product. In the end of the June we will plan to produce a new version of the products

with different features & flavors.

BUDGETS

We have projected to sale 1.6 corer taka in the first year of our operation with an average whole sale price of 32 taka per unit taking 45 gm as base .

Projected First Year Sales - 1.6 corer Tk Projected First Year Sales in unit – 500000Variable Cost 8000000 TkFixed Cost 6000000 TkVariable cost per unit – 8000000/500000 = 16 TkPer Unit Whole Sale Price = 32 Tk

Unit Cost = (Variable Cost + Fixed Cost) / Unit Sales = ($8000000 + $6000000) / 500000 = 14000000 / 500000 = $ 28

We intended to earn a 13 percent mark up on sales.

Mark up Price = unit cost / (1 – Desired Return on Sales) = 28 / (1 - .13) = 32.18

Marketing Plan 18

= 32 Tk

Break Even = Fixed cost / (per unit sales price – per unit variable cost) = 6000000 / (32 – 16) = 375000 units

While designing budget planning, first of all we have selected the Television.

Because our target consumers are urban women in this case, uses of television

for advertise will be very effective. In terms of TV ad our media vehicle will

be BTV, ATN BANGLA and CHANNEL I ..

COST OF TV ADVERTISEMENT:

Our ad is a 20 second ad which we will show 2 X 30 X 3=180 times in three

channels a month. The cost of displaying the ad in one transmission is given below:

Average Advertising cost For the Three Channels:

Just before NEWS- 20 seconds duration- -8000 TK

In mid break of any Program/Film- 20 seconds duration- - 5000 TK

The ad will be displayed on the ATN for per month:

So, the cost will be---

42 times a week for 1 month:

Total = 42 times X 4 weeks =168 times

1st week: (Just before NEWS)

Total cost on 1st week = 7 times X 3 channels X 8000 =168000

1st week: (In mid break of any program/Film)

Total cost on 1st week = 7 times X 3 channels X 5000 =105000

Marketing Plan 19

2nd week: (Just before NEWS)

Total cost on 2nd week= 7 times X 3 channels X 8000 =168000

2nd week: (In mid break of any Program/Film)

Total cost on 2nd week= 7 times X 3 channels X 5000 =105000

3rd week: (Just before NEWS)

Total cost on 3rd week = 7 times X 3 channels X 8000 =168000

3rd week: (In mid break of any Program/Film)

Total cost on 3rd week = 7 times X 3 channels X 5000 =105000

4th week: (Just before NEWS)

Total cost on 4th week = 7 times X 3 channels X 8000 =168000

4th week: (In mid break of any Program/Film)

Total cost on 4th week = 7 times X 3 channels X 5000 =105000

Total cost for Television Advertisement :( 168000X4 + 105000X4) =109200TK.

NEWSPAPER ADVERTISEMENT:

Our target markets are generally the urban women with sound income. Most of our

target markets are educated & usually read newspaper. The main advantage of

newspaper is the high degree of market coverage. It can cover a high area at a

relatively low cost. We are going to give our ad in “PROTHOM ALO” because

“Prothom Alo” is the most read daily newspaper in our country. We are also going to

give our ad in “NAKSHA” of “Prothom Alo” on Tuesdays.

COST

For “Prothom Alo” per day cost is calculated as follows-

Marketing Plan 20

5 column (width) X5” (height) X 1000Tk = 25000Tk

For “NOKSHA”

3 column (width) X 3” (height) X 600Tk =5400Tk

Per months Budget

For “PROTHOM ALO”

25000 TK X 4 days (on Fridays only) = 100000 TK

For “NOKSHA”

5400 TK X 4 days (on Tuesday) = 21600 TK

Total News Paper cost 121600

CONTROL

We are planning tight control measures to closely monitor quality and customer

service satisfaction. This will enable us to react very quickly in correcting any

problems that may occur. Other early warning signals that will be monitored for signs

deviation from the plan include monthly sales (by segment and channel) and monthly

expenses. We are planning to control our market by penetration pricing also we are

planning to control our market by creative sales promotion.

CONCLUSION

Marketing Plan 21

From the analysis of the reporting it can be stated that the new portfolio is

well set for the marketing environment of Bangladesh. The new brand will

create a clear distinction with the competitors’ brands if it keeps its promise

of quality.

However there are some limitations. But given the opportunity of a good

market for the product, promising returns on investments, corporate image

of the company, strong liaisons of the company and willingness of the

company to achieve goals, the limitations could be overcome.

As investment costs are too high and Bangladesh lags behind in technology,

so the technological environment actually creates some barriers for the new

portfolio. But after the high investment costs there will be no emerging costs

in the sector and also the market for the new portfolio promises good returns

on investments. The new portfolio will increase the goodwill and corporate

image of Kohinoor Group of industry. So weighing the future benefits it

would be wise of the company to engage itself to the process of launching

the new product.

The tough competition in the industry seems to be a barrier for the new

portfolio in general, but looking deep into the matter with wide views results

in a positive feedback. The product is a premium one and none of the

competitors are engaged in the premium market for the product, which

actually makes the competition indirect.

The competitors can create a threatening situation by making their way to

premium beauty and fairness cream. However to stop the competitors from

doing so the company has to use its strong liaisons to acquire a certificate of

solitary production and distribution of premium beauty and fairness cream

for at least a year from the government.

So it can be concluded that the plan to produce and market premium beauty

and fairness cream in Bangladesh by Kohinoor Group of Industry would be

Marketing Plan 22

a revolution in the beauty and fairness cream industry and the plan would

work for the company.

References

Kotler, P. and Armstrong, Gary (2006) Principles of Marketing (11th Edition), Prentice Hall India.

Advertising and Promotion, G E Belch & M A Belch, 6th Edition. Annual Report-2005(Kohinoor chemicals Ltd.)

Marketing Plan 23