Final Project (Joven) Usama javaid

8/14/2019 Final Project (Joven) Usama javaid

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Statement of Confidentiality & Non-Disclosure

This document contains proprietary and confidential information. Alldata submitted to Miss Tabinda Islam is provided in reliance upon itsconsent not to use or disclose any information contained herein exceptin the context of its business dealings with LIFE CARE. The recipient ofthis document agrees to inform its present and future employees andpartners who view or have access to the document's content of itsconfidential nature.

The recipient agrees to instruct each employee that they must notdisclose any information concerning this document to others except tothe extent that such matter are generally known to, and are availablefor use by, the public. The recipient also agrees not duplicate ordistribute or permit others to duplicate or distribute any materialcontained herein without LIFE CARE's express written consent.

LIFE CARE retains all title, ownership and intellectual property rights tothe material and trademarks contained herein, including all supportingdocumentation, files, marketing material, and multimedia.

BY ACCEPTANCE OF THIS DOCUMENT, THE RECIPIENT AGREES TO BEBOUND BY THE AFOREMENTIONED STATEMENT.

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Executive summary

We are launching a new soap in the market and our brand name isJOVEN Anti-aging soap. It is an anti-aging soap whose main feature isthat it removes wrinkles on skin; it also cleanses the skin and makes itscolor bright. We are mainly targeting Ladies above 35 years of age of

higher middle class but our product is for all age of women. We willposition our brand from our positioning statement Be Young Again.

We will enter the market with heavy advertisement through hoardings,TVCs, etc. We are advertising through channel CITY42 because we arelunching our new product initially in Lahore and this channel fulfils theneeds of our marketing strategy to launch our product. Also we areusing selective distribution with conventional distribution channel.

The primary objective is to attain 5% of market share and to achievemore than 20,000 tones of sale in first six months. Price of our soap is

Rs. 110 per unit. As there is no major competitor of anti-aging soap butsome anti aging creams are our competitors, so our objective is tocapture the market by satisfying our customers.

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Mission Statement

Our mission is to earn our customers loyalty by providing them bestquality product and delivering maximum satisfaction by making themlook young again

Vision Statement

To become the largest Soap manufacturer of the country, and to havethe largest share in soap market by delivering maximum satisfaction tothe customers.

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Market Analysis

The soap market in Pakistan increased during last few yearsgrowing at an average annual rate of 2.2%. The leading company inthe market in 2008 was Unilever. The second-largest player was SufiSoaps Detergents with Kohinoor and Tibet Soaps in third place.

There are approximately 500 units in organized and un-organizedsectors. Being an employment-oriented industry it provides jobs toover 100,000 workers all over the country. The total production

capacity of this industry is 250,000-300,000 tones of soap annually.Its contribution to the national exchequer in the forms of various taxesis running in billions of rupees.

There is no major producer of anti-aging soap in the industry.However various anti aging creams are available that can besubstituted for our soap that includes cream from Ponds and thevitamin company. The bulk of the market share of cosmetics inPakistan is held by three big companies, Kohinoor Chemicals,International Laboratories (Ponds) and Revlon. They control about 60to 70 % share of the total market.

Taxes are a big issue in the soap industry. Especially theincreased custom duty on the import of raw material is alarming. Alsothe electricity load shading is a major problem.

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Fashion is also a major driver in the market. Especially womenare becoming more and more conscious about their skin. Wrinkles area major problem of middle aged women that we are offering to solve.

Technology is rapidly changing. Most of the units in the organizedsector having modern technology and foreign capital, accounting for67% of the total capacity are concentrated in Karachi

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Product Review

Our product is an anti-aging soap. Its main feature is that it removes

wrinkles caused by the passing age on the skin. It is a convenience

product i.e. an F.M.C.G. Initially we are launching our product in only

one dimension of 125 g with a price of Rs. 110 each.

Brand Name: -

The name of our soap is JOVEN anti-aging soap.

Brand Logo: -

Our brand logo is:

Unique selling point: Anti aging SOAP

Launch ing Place : - Lahore.

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Ingredients: -Special Ingredient: - DMAE

Sodium Tallowate, Sodium cocoate, Tetra sodium EDTA, Mineral

oil, BHT, Sodium chloride, Pearl luster pigment, Water, Fragrance,

Vitamin A (Retinol, Tretinoin and Retinyl Palmitate) and Vitamin E

(Tocopherol).

Comp etit ive strength:

Our completive strength is that we are introducing a soap

which is anti aging. Our soap is the only anti aging SOAP available in

the market with low price than the other anti aging products in the

market.

We are targeting the only the women age more than 30 years.

USP`s:

Only anti aging soap

Low price as compared to other products.

Strengths of the produc t:

Our soap is approved by P.C.S.I.R lab. We have a Latest soap manufacturing technology. Our distributors are the famous retail stores of the

city. Our price is very suitable as compared to our

product, none of which offer the same bundle offeatures, which gives us an edge with price-conscious customers.

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Competitors Analysis

There are no competitors of anti aging soap in the Pakistani market.However there are various substitute anti-aging creams available inthe market.

Our key substitute products are:

Competitor Features

Ponds age Miracle It rekindles youthful beauty through andpromises visible results in 7 days. It is speciallyformulated for anti aging conscious people.

Ponds age defyingcream

Age defying towelettes fight visible signs ofaging while you clean

Collagen cream It reduces wrinkles and gives young look. It ismade of natural herbs and has no side effects.

Olay age defying antiwrinkle SPF 15 cream Reduces the appearance of fine lines andwrinkles in just 5 days.

Anti-wrinklereplenishing nightcream

Awaken to skin that looks younger, smootherand overall firmer.

Age defying dailyrenewal cream

Renews moisture to significantly reduce finelines and wrinkles.

Garnier Ultra Lift The Garnier Ultra Lift range has been speciallydesigned for skin that is showing signs of ageing,suffers loss of skin elasticity and firmness.

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Pond s

Ponds, which is a brand of Unilever, is one of the worlds most

renowned and trusted names in beauty products. It carries a strong

brand equity in Lahore with is quality products. Ponds with its two anti-

aging creams have strong potential to affect our sales.

Products: -

Its major products are:

Cleansing Towelettes

Original Clean TowelettesMicro Dermabrasion Towelettes

Age Defying Towelettes

Classic Creams

Dry Skin CreamCold Cream

Deep Cleanser & Make-Up Remover

Deep Cleansers

Fresh StarClear Solutions Pore Strips

Ponds Age Miracle

There are two anti-aging products that ponds is offering:

1. Ponds age defying cream.2. Ponds Age miracle.

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http://www.ponds.com/ProductView.aspx?ProdId=1http://www.ponds.com/ProductView.aspx?ProdId=2http://www.ponds.com/ProductView.aspx?ProdId=3http://www.ponds.com/ProductView.aspx?ProdId=5http://www.ponds.com/ProductView.aspx?ProdId=4http://www.ponds.com/ProductView.aspx?ProdId=6http://www.ponds.com/ProductView.aspx?ProdId=10http://www.ponds.com/ProductView.aspx?ProdId=2http://www.ponds.com/ProductView.aspx?ProdId=3http://www.ponds.com/ProductView.aspx?ProdId=5http://www.ponds.com/ProductView.aspx?ProdId=4http://www.ponds.com/ProductView.aspx?ProdId=6http://www.ponds.com/ProductView.aspx?ProdId=10http://www.ponds.com/ProductView.aspx?ProdId=1


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Pond s age-defying cream:

Age-defying towelettes fight visible signs of aging while

you cleanse. Silky-smooth towelettes with alpha hydroxy and retinol

smooth away lines and wrinkles as they gently remove all traces of

make-up (including waterproof make-up) and impurities. Skin is left

feeling toned and looking fresh and revitalized.

Essential features:

Hypoallergenic

Dermatologist tested

Safe for contact lens wearers

Alcohol free

Ideal for all skin types

Non-comedogenic wont clog pores

Ponds Age Miracle cream:

Ponds tries to rekindle youthful beauty through their latestcampaign, the revolutionary anti-aging product line called Ponds AgeMiracle.

This product promises instant visible results in just 7 days and isspecially formulated for Asian women.

CLA (Conjugated Linoleic Acid), an anti-aging ingredient, makes

wrinkled skin appear soft, smooth, even-toned, fine and radiant.

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Distribution Review

In recent years sales trends have changed a lot, as various largeretailers like Makro, have entered the market and had a great influencein Lahore. Thats why we are targeting these super stores for thedistribution of our product. Our soap will be distributed through anetwork of the top stores in Lahore. The most important channelpartners are:

H K B

Makro

Metro

City tower

Pace

Shoppe

Akbari store

Decent store Al-Fateh store

Al-Raheem store

Victoria store

Grace store

Roop singhar

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SWOT Analysis

Managing the marketing function begins with a complete analysis ofthe companys situation. SWOT analysis is a tool for auditing anorganization and its environment. It is the first stage of planning andhelps marketers to focus on key issues.

Strengths: -

Strengths include internal capabilities that may help a company reachits objectives. The strengths of Joven soap are:

Our product is the only anti-aging soap in the market. Our soap is approved by P.C.S.I.R lab. We have a Latest soap manufacturing technology. Our distributors are the famous retail stores of the city. Our price is very suitable as compared to our product, none of

which offer the same bundle of features, which gives us an edgewith price-conscious customers.

W eaknesses : -

Weakness include internal limitations that may interfere with acompanys ability to achieve its objectives.

We have limited number of distribution channels. Limited investment

No variety in the product. Poor brand awareness.

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Opportunities: -

Opportunities are favorable factors or trends in the externalenvironment that the company may be able to exploit to its advantage.

New distribution channels can be used New regions are yet to be explored in Pakistan. To explore international market. Product development will offer many new opportunities.

T hreats : -

Current and emerging external factors may challenge the companysperformance.

The entrance of new competitors in the market. Substitute anti-aging creams are available in market. Existing companies like ponds have strong brand image in the

minds of customers. High custom duties on raw material import. High interest rates and taxes in country. Load shading.

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Objectives

Our main objectives are:

Primary market objective is to achieve more than 20,000 tones ofsale.

To capture 5% of the market share initially.

To attract of our customers.

To create interest among customers.

We will attain our objectives by strong marketing that includes heavyadvertisement TVCs, hoardings, teasers etc. We will not compromiseon quality and try to satisfy our target customers. Although we have toface loses in the beginning but we will maintain our Quality to capturethe market.

First Year Objectives: -

During the initial year in the market, our objectives are to buildawareness among customers about our soap, heavy expanses will bemade on advertising to attract the customers. We are aiming for a 5%share of the market in the first year. Also work on reducing cost by atleast 5%.

Second year objective: -Our second year objectives are to maintain heavy advertisement

to keep attracting new customers. Make our quality even better to earncustomers loyalty and to introduce new variety in anti-aging soap. Weare also to achieve a 7% of market share and to reduce cost by 10%.

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Issues

There are various issues that are to be tackled to launch our newproduct, these issues include:

Economic condition:

Current economic conditions of our country are not satisfactory.

We are facing economic crisis due to our weak fiscal policy. Thissituation will effect our attainment.

Competitive situation:

Competitive situation shows how much our competitors arestrong and we also analyze their 4Ps because without it no productcan be succeeded in market. The marketing strategies of competitorare a big issue.

High bank rates :

Interest rates of our banking sector are very high which effectsthe companys financial matters and company is compel to borrowhigh rates loans.

High Duties /taxes :

Our Government imposes high custom duty on raw materials. So

company purchase high cost imported raw material to provide highquality products to the customers.

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Market Strategy

Market Segmentation: -

We have segmented the market on two basis:

Demographic basis that is on the basis: Age - Above 35

Income Level 30,000 and above

Gender - Females Social status High middle class

Geographical basis that include:

Lahore

Model Town Wapda Town Johar Town Wahdat Road Iqbal Town

Gulberg Main Bulevard Garden Town M.M. Alam Road Defense Fortress Stadium

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Market Targeting: -

We have used Segmented marketing while targeting ourcustomers.Our target markets according to the demographics are:

Middle aged women of more than 35 years age of higher middleclass. As our product removes wrinkles that are formed on theskin of middle aged women.

Also geographically our target customers are:

People residing in cities. Initially we are targeting customers inLahore.

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Positioning: -

A positioning built on meaningful differences, supported byappropriate strategy and implementation, can help the company buildcompetitive advantage.

We are positioning our product in the minds of people by our sloganand our logo that reflects youth, as it makes the skin wrinkle free likethe skin of young people

Our positioning statement and logo is:

Be Young Again

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Product: -

We are introducing a convenience product that is a high qualityanti-aging soap in the market with the name of Joven anti agingsoap. We are using licensed branding. Although there arevarious substitute in the form of cream in the market but there is nomajor competitor of our product.

Features:

Our product consists of the following features:

The core benefit of our product is that it removes wrinkles

of skin.

Additional benefits are that it makes the complexion fair.

It cleanses the skin.

Ideal for all skin types.

Heals skin

Tightens the skin pores

Soften the skin

Removes black heads

Joven will continue to set new trends as a true leader, creatingaspiration and exploring new expressions of beauty in future.

Building the Joven brand is an integral part of our product strategy. Thebrand and logo will be displayed on the product and its packaging ispacked in attractive wrapper with different colors and designs.

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Pricing strategy: -

Pricing is the most important factor in our marketing mix. Ourpricing strategy will be such that is fair to the customers, as our

objective is to attain customer loyalty.

Joven anti-aging soap is being introduced at a price of Rs. 110including all taxes. Initially we are using Value based pricingapproach for the evaluation of price.

These prices reflect a strategy of:

1. Market penetration pricing.2. Delivering maximum satisfaction by giving affordable price.

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Distribution Strategy: -

At launching our product our channel strategy is to useSelective distribution at different places and marketing throughwell known stores and outlets within Lahore only, Including H.K.B, Al-Fateh, Makro, Al-Raheem store, Victoria, and Grace Store. We will alsogive special trade discounts for retailer that place volume order.

We are using Indirect marketing channel for the distribution of ourproduct which is a Conventional distribution channel. Our

marketing channel involves the following intermediaries:

The company will transport its goods to the retailer who will distributethem to customers. They will also gather research information for us.

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Marketing communication Process: -

Marketing communication is an integral part of product strategy.We are entering the market with high advertisement of our product inorder to create a strong image of Joven soap in the mind of our targetcustomers.

We will set our total promotional budget on the Objective andTask method. Our objective is to attract the customers towards ourproduct and we will use excessive advertising to achieve this goal.

We will use different advertising tools to advertise our product, whichinclude:

T.V.Cs

Teasers

Hoardings

Magazines

Newspapers

We are using Pull promotion mix strategy to attract our customersas we are new in the market.

We will use City042 as our channel, as its coverage is in Lahoreand we are initially launching our product in Lahore. Ourcommercial will be played after every 30 minutes on thechannel.

In newspapers we are targeting Jang in Urdu news papers andDawn and The News in English news papers.

We are also advertising on hoardings at various main spots inLahore.

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Marketing Research

Marketing research managers interact with customers to defineproblems and identify the information needed to resolve them ourresearch manager designed research projects prepare questionnairesand samples analysis data prepare reports and present their findingsand recommendations to management he must understand statisticsconsumer behavior psychology and sociology.

Using research we are identifying the specific feature and benefits that

are target market segment values. Feedback from market tests surveysand focused groups will help us to develop the Joven soap. We are alsomeasuring and analyzing customer, attitude towards competing brandsand products. Brand awareness research will help us to determine theeffectiveness and efficacy of our messages and media. Finally we willuse customer satisfaction studies to gauge market reaction.

Marketing Organization

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Action Program

All the programs are completed with the coordination of all thedepartments of the company each and every department will take itspart in the grooming and producing activities of this product.Production department participate its full part.Finance department control the finance of the production. Like from thepurchases of the raw material to finishing product.Purchasing department also took it part in the launch of the product.

The product is going to be introduced in the month of FEBRUARY. Andthe following is the summary of the action program of what will happenin the next six month, and how our organization will achieve its statusand objectives.

January : -

We will initiate an Rs 1,800,000/- for a trade sale promotions toeducate the people, general public and for the dealers and generate

excitement in the public for the product by initiating Teasercampaign. And also for the advertisement we hire celebrities for thesake of public relation strategies.

February: -

This is the month of our launching. In February we startintegrated print media, and TV commercials campaign, supported byHoardings, pylons and transit advertisement. The campaign will showhow many purposes Joven anti-aging soap have. This multi media

campaign will be huge to attract maximum customers. And our trainingstaff will work with sales personnel at major retail chains like HKB, ALFATEH STORE, etc. for the benefits or organizations and competitiveadvantages which was beneficial for our company.

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March: -

This is the first month after release of our product. As themultimedia advertising campaign continues, we will have a close lookat the sale of our product with continuous feedback from retailers. Wewill also distribute new point of purchase display to support ourretailers. We will do more investment in distribution depending uponthe sale of our product.

A pril: -

In this month we will start taking feedback of our soap from our

customers by placing comments book in the distribution place. We willhold the trade sales contest offering prizes for the sales persons andretail organizations who sales the most Joven soaps in the marketduring the period of one month. We will start working on theintroduction of new size of Joven soap. Also we will go for increasedadvertising of our product.

May: -

In this month we will plan to launch our product in another city

that is Karachi. For this purpose we will start working at our plans oflaunching. We will check the feasibility and analyze the market inKarachi. We plan out to roll out a new national advertising campaign.Also we will set stalls at different Universities in Lahore targetingLecturers and students at PhD. and M.phil level. We will analyze ourproduct to take it upto the expectations of our customers.

June: -

In this month we will conduct a huge function on Television inthat will feature various actresses as well as famous personalities ofPakistan. We will contract with NADIA KHAN and MAHNOOR BALOCH asbrand ambassadors of our product. Also we will start Teaser campaignin Karachi, and start negotiations with distributors over there. We alsoarrange some stalls in the exhibitions which are going to be held inLAHORE in this June at FORTRESS STADIUM. There we arrange some

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games in which families contributed and win some gift hampers of theJoven soap.

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Target Sales/ month:

Future Additions:

Anti-aging gel

Anti-aging face mask

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Budgeting

Particulars Rs .

Investment 10,000,000/-

Cost per unit 48/-

Price 110 per unit/-

Expenses

Advertisement expenses 3500,000/-

Salaries & wages expenses 150,000/-

Manufacturing expenses 960,000/-

Packing expenses 40,000/-

Labeling & designing expenses 20,000 /-

Transportation 120,000/-

Distribution expenses 900,000/-

Estimated Profit in 1st sixmonths

600,000/-

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Budget Explanation

Joven has unique formula of anti aging. We are launching ournew product with the capital ofRs 10, 000,000/-. We set this budgetafter analyzing the other anti aging brands of country. After the processof budgets setting we are able to set the price of our soap which is Rs110/piece.

Cost price of our product is Rs 48/- after including the taxes andprofits our customers will be able to buy our product just in Rs 110/-This price is very affordable to the market of anti aging consciouspeople. This price is lower than our competitors. Our Company isproviding a Quality anti aging soap in a reasonable price.

Advertisement Expenses

Advertisement is the most important and effective tools forlaunching a product in the market. So we set a heavy budget ofRs35,00,000/- for advertisement, which includes different ways ofadvertisement includes;

T.V.Cs

Teasers

Hoardings

Magazines

Salaries & Wages

Our Financial advisors calculate Salaries and wages of Rs150,000/- for the 1stsith month plan. Which includes salaries of Staffand wages of workers who works on daily basis

Manufacturing expenses

Manufacturing expenses costs Rs 960, 000/- includes costs ofimported chemicals and other soap raw materials.

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Packing expenses

We calculated our packing expenses in our 1st six month planfor Rs 40,000/- which includes packing of soap in an attractive boxand in cartons for delivery at distribution channels.

Labeling & designing expenses

Our labeling and designing department is making attractiveand beautiful designs of packing covers and soaps which cost us for Rs40,000/- for our six months planning. This design of cover box andshape of soap will attract our customers which ultimately benefits ourcompany.

Transportation

Transportation expenses include the carriage of raw materials

from suppliers and delivery of inventory to the retailers. It cost us Rs120,000/- which can easily fulfils needs of our transportation.

Distribution expenses

We select the top stores and retailers of city for our distributionincludes

We also hires places and corners in metro an macro cash n carryand in some public places like Airport, Daewoo terminal, womenuniversities etc. At there our representatives will sell our products anddefines the core benefits of our products to our customers. This wholeprocess of distribution will cost us Rs 900,000\- which is an enoughbudget for distribution.

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Control

We are evaluating the results of marketing strategy and planthrough closely monitor quality and customer services satisfaction. Ourmanagers built public relations to anticipate problems with variouspublic, handle complaints, deal with media and built the cooperateimage.

After that we are able to react quickly and correctly any problem thatmay occurs. We are also developing contingency plan to address fastmoving environmental changes such as new technology and newcompetition in the market. For reviewing our plan we have to takefeedback from our customers, dealers, and retailers and after that wediagnose that where the problem is and solve this problem with theproper solution and planning.

We will keep continues check on the cost of our product. And willcontinuously research to analyze the market to maintain low costagainst our competitors.

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Good

Average

Excellent

7. Can our soap meet your expectations?

Yes

No

Cant say

8. How is the price of our soap?

low

High

Affordable

9. Suggestions about our product.

10.Comments to improve our product.

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References

MissTabinda Islam

Introduction to Marketing by Philip and Kotler

www.google.com

www.pakistaneconomist.com

www.ponds.com

www.olay.com

www.garnier.com

Final Project (Joven) Usama javaid

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