Final Project (joven) Usama Javaid

Statement of Confidentiality & Non-Disclosure This document contains proprietary and confidential information. All data submitted to Miss Tabinda Islam is provided in reliance upon its consent not to use or disclose any information contained herein except in the context of its business dealings with LIFE CARE. The recipient of this document agrees to inform its present and future employees and partners who view or have access to the document's content of its confidential nature. The recipient agrees to instruct each employee that they must not disclose any information concerning this document to others except to the extent that such matter are generally known to, and are available for use by, the public. The recipient also agrees not duplicate or distribute or permit others to duplicate or distribute any material contained herein without LIFE CARE's express written consent. LIFE CARE retains all title, ownership and intellectual property rights to the material and trademarks contained herein, including all supporting documentation, files, marketing material, and multimedia. BY ACCEPTANCE OF THIS DOCUMENT, THE RECIPIENT AGREES TO BE BOUND BY THE AFOREMENTIONED STATEMENT.

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Executive summary We are launching a new soap in the market and our brand name is “JOVEN Anti-aging soap”. It is an anti-aging soap whose main feature is that it removes wrinkles on skin; it also cleanses the skin and makes its color 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 will position our brand from our positioning statement “Be Young Again”. We will enter the market with heavy advertisement through hoardings, TVC’s, etc. We are advertising through channel CITY42 because we are lunching our new product initially in Lahore and this channel fulfils the needs of our marketing strategy to launch our product. Also we are using selective distribution with conventional distribution channel. The primary objective is to attain 5% of market share and to achieve more 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 but some anti aging creams are our competitors, so our objective is to capture the market by satisfying our customers.

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Mission Statement

“Our mission is to earn our customer’s loyalty by providing them best quality product and delivering maximum satisfaction by making them look young again”

Vision Statement

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

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Market Analysis The soap market in Pakistan increased during last few years growing at an average annual rate of 2.2%. The leading company in the market in 2008 was Unilever. The second-largest player was Sufi Soaps Detergents with Kohinoor and Tibet Soaps in third place. There are approximately 500 units in organized and un-organized sectors. Being an employment-oriented industry it provides jobs to over 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 taxes is 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 be substituted for our soap that includes cream from Ponds and the vitamin company. The bulk of the market share of cosmetics in Pakistan is held by three big companies, Kohinoor Chemicals, International Laboratories (Ponds) and Revlon. They control about 60 to 70 % share of the total market.

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

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Fashion is also a major driver in the market. Especially women are becoming more and more conscious about their skin. Wrinkles are a major problem of middle aged women that we are offering to solve. Technology is rapidly changing. Most of the units in the organized sector having modern technology and foreign capital, accounting for 67% 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

Launching 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).

Competitive 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 product:  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 edge with priceconscious 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 in the market. Our key substitute products are:

Competitor

Features

Ponds age Miracle

Ponds cream

age

It rekindles youthful beauty through and promises visible results in 7 days. It is specially formulated for anti aging conscious people.

defying Age defying towelettes fight visible signs of aging while you clean

Collagen cream

It reduces wrinkles and gives young look. It is made of natural herbs and has no side effects. Olay age defying anti Reduces the appearance of fine lines and wrinkle SPF 15 cream wrinkles in just 5 days. Anti-wrinkle Awaken to skin that looks younger, smoother replenishing night and overall firmer. cream Age defying daily Renews moisture to significantly reduce fine renewal cream lines and wrinkles. Garnier Ultra Lift The Garnier Ultra Lift range has been specially designed for skin that is showing signs of ageing, suffers loss of skin elasticity and firmness.

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Pond’s Pond’s, which is a brand of Unilever, is one of the world’s most renowned and trusted names in beauty products. It carries a strong brand equity in Lahore with is quality products. Pond’s with its two antiaging creams have strong potential to affect our sales.

Products: Its major products are: •

Cleansing Towelettes Original Clean Towelettes Micro Dermabrasion Towelettes Age Defying Towelettes

•

Classic Creams Dry Skin Cream Cold Cream Deep Cleanser & Make-Up Remover

•

Deep Cleansers Fresh Star Clear Solutions Pore Strips

•

Pond’s Age Miracle

There are two anti-aging products that pond’s is offering: 1. Ponds age defying cream. 2. Pond’s Age miracle.

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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

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Safe for contact lens wearers

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Alcohol free

•

Ideal for all skin types

•

Non-comedogenic – won’t clog pores

Pond’s Age Miracle cream: Pond’s tries to rekindle youthful beauty through their latest campaign, the revolutionary anti-aging product line called Pond’s Age Miracle. This product promises instant visible results in just 7 days and is specially 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 large retailers like Makro, have entered the market and had a great influence in Lahore. That’s why we are targeting these super stores for the distribution of our product. Our soap will be distributed through a network of the top stores in Lahore. The most important channel partners are: •

HKB

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Makro

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Metro

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City tower

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Pace

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Shoppe

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Akbari store

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Decent store

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Al-Fateh store

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Al-Raheem store

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Victoria store

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Grace store

•

Roop singhar

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SWOT Analysis Managing the marketing function begins with a complete analysis of the company‘s situation. SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues.

Strengths: Strengths include internal capabilities that may help a company reach its 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 edge with price-conscious customers.

Weaknesses: Weakness include internal limitations that may interfere with a company‘s 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 external environment 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.

Threats: -

Current and emerging external factors may challenge the company’s performance.  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 of sale.



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 heavy advertisement TVC’s, hoardings, teaser’s etc. We will not compromise on quality and try to satisfy our target customers. Although we have to face loses in the beginning but we will maintain our Quality to capture the market.

First Year Objectives: During the initial year in the market, our objectives are to build awareness among customers about our soap, heavy expanses will be made 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 at least 5%.

Second year objective: Our second year objectives are to maintain heavy advertisement to keep attracting new customers. Make our quality even better to earn customers loyalty and to introduce new variety in anti-aging soap. We are 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 new product, 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. This situation will effect our attainment.

Competitive situation: Competitive situation shows how much our competitors are strong and we also analyze their 4P’s because without it no product can be succeeded in market. The marketing strategies of competitor are a big issue.

High bank rates: Interest rates of our banking sector are very high which effects the company’s financial matters and company is compel to borrow high rates loans.

High Duties/taxes: Our Government imposes high custom duty on raw materials. So company purchase high cost imported raw material to provide high quality 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 customers. Our target markets according to the demographics are: 

our

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

Also geographically our target customers are:  People residing in cities. Initially we are targeting customers in Lahore.

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Positioning: A positioning built on meaningful differences, supported by appropriate strategy and implementation, can help the company build competitive advantage. We are positioning our product in the minds of people by our slogan and our logo that reflects youth, as it makes the skin wrinkle free like the 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 quality anti-aging soap in the market with the name of “Joven anti aging soap”. We are using “licensed branding”. Although there are various substitute in the form of cream in the market but there is no major 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, creating aspiration and exploring new expressions of beauty in future. Building the Joven brand is an integral part of our product strategy. The brand and logo will be displayed on the product and its packaging is packed in attractive wrapper with different colors and designs.

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Pricing strategy: Pricing is the most important factor in our marketing mix. Our pricing 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. 110 including all taxes. Initially we are using “Value based pricing approach” 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 use “Selective distribution” at different places and marketing through well known stores and outlets within Lahore only, Including H.K.B, AlFateh, Makro, Al-Raheem store, Victoria, and Grace Store. We will also give special trade discounts for retailer that place volume order. We are using “Indirect marketing channel” for the distribution of our product which is a “Conventional distribution” channel. Our marketing channel involves the following intermediaries:

The company will transport its goods to the retailer who will distribute them 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 in order to create a strong image of Joven soap in the mind of our target customers. We will set our total promotional budget on the “Objective and Task method”. Our objective is to attract the customers towards our product and we will use excessive advertising to achieve this goal. We will use different advertising tools to advertise our product, which include:     

T.V.C’s Teasers Hoardings Magazines Newspapers

We are using “Pull promotion mix strategy” to attract our customers as we are new in the market. 

We will use City042 as our channel, as its coverage is in Lahore and we are initially launching our product in Lahore. Our commercial will be played after every 30 minutes on the channel.



In newspapers we are targeting Jang in Urdu news papers and “Dawn” and “The News” in English news papers.

 We are also advertising on hoardings at various main spots in Lahore.

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Marketing Research Marketing research managers interact with customers to define problems and identify the information needed to resolve them our research manager designed research projects prepare questionnaires and samples analysis data prepare reports and present their findings and recommendations to management he must understand statistics consumer behavior psychology and sociology. Using research we are identifying the specific feature and benefits that are target market segment values. Feedback from market tests surveys and focused groups will help us to develop the Joven soap. We are also measuring and analyzing customer, attitude towards competing brands and products. Brand awareness research will help us to determine the effectiveness and efficacy of our messages and media. Finally we will use 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 the departments of the company each and every department will take its part 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 the purchases 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. And the following is the summary of the action program of what will happen in the next six month, and how our organization will achieve its status and objectives.

January: We will initiate an Rs 1,800,000/- for a trade sale promotions to educate the people, general public and for the dealers and generate excitement in the public for the product by initiating “Teaser campaign”. And also for the advertisement we hire celebrities for the sake of public relation strategies.

February: This is the month of our launching. In February we start integrated print media, and TV commercials campaign, supported by Hoardings, pylons and transit advertisement. The campaign will show how many purposes Joven anti-aging soap have. This multi media campaign will be huge to attract maximum customers. And our training staff will work with sales personnel at major retail chains like HKB, AL FATEH STORE, etc. for the benefits or organizations and competitive advantages which was beneficial for our company.

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March: This is the first month after release of our product. As the multimedia advertising campaign continues, we will have a close look at the sale of our product with continuous feedback from retailers. We will also distribute new point of purchase display to support our retailers. We will do more investment in distribution depending upon the sale of our product.

April: In this month we will start taking feedback of our soap from our customers by placing comments book in the distribution place. We will hold the trade sales contest offering prizes for the sales persons and retail organizations who sales the most Joven soaps in the market during the period of one month. We will start working on the introduction of new size of Joven soap. Also we will go for increased advertising 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 of launching. We will check the feasibility and analyze the market in Karachi. We plan out to roll out a new national advertising campaign. Also we will set stalls at different Universities in Lahore targeting Lecturers and students at PhD. and M.phil level. We will analyze our product to take it upto the expectations of our customers.

June: In this month we will conduct a huge function on Television in that will feature various actresses as well as famous personalities of Pakistan. We will contract with NADIA KHAN and MAHNOOR BALOCH as brand ambassadors of our product. Also we will start Teaser campaign in Karachi, and start negotiations with distributors over there. We also arrange some stalls in the exhibitions which are going to be held in LAHORE 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 the Joven 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 six 600,000/months

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Budget Explanation Joven has unique formula of anti aging. We are launching our new product with the capital of Rs 10, 000,000/-. We set this budget after analyzing the other anti aging brands of country. After the process of budgets setting we are able to set the price of our soap which is Rs 110/piece. Cost price of our product is Rs 48/- after including the taxes and profits our customers will be able to buy our product just in Rs 110/This price is very affordable to the market of anti aging conscious people. This price is lower than our competitors. Our Company is providing a Quality anti aging soap in a reasonable price.

• Advertisement Expenses Advertisement is the most important and effective tools for launching a product in the market. So we set a heavy budget of Rs 35, 00,000/- for advertisement, which includes different ways of advertisement includes;    

T.V.C’s Teasers Hoardings Magazines

• Salaries & Wages Our Financial advisors calculate Salaries and wages of Rs 150,000/- for the 1stsith month plan. Which includes salaries of Staff and wages of workers who works on daily basis

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

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

• Labeling & designing expenses Our labeling and designing department is making attractive and beautiful designs of packing covers and soaps which cost us for Rs 40,000/- for our six months planning. This design of cover box and shape of soap will attract our customers which ultimately benefits our company.

• Transportation Transportation expenses include the carriage of raw materials from suppliers and delivery of inventory to the retailers. It cost us Rs 120,000/- which can easily fulfils needs of our transportation.

• Distribution expenses We select the top stores and retailers of city for our distribution includes We also hires places and corners in metro an macro cash n carry and in some public places like Airport, Daewoo terminal, women universities etc. At there our representatives will sell our products and defines the core benefits of our products to our customers. This whole process of distribution will cost us Rs 900,000\- which is an enough budget for distribution.

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Control We are evaluating the results of marketing strategy and plan through closely monitor quality and customer services satisfaction. Our managers built public relations to anticipate problems with various public, handle complaints, deal with media and built the cooperate image. After that we are able to react quickly and correctly any problem that may occurs. We are also developing contingency plan to address fast moving environmental changes such as new technology and new competition in the market. For reviewing our plan we have to take feedback from our customers, dealers, and retailers and after that we diagnose that where the problem is and solve this problem with the proper solution and planning. We will keep continues check on the cost of our product. And will continuously research to analyze the market to maintain low cost against our competitors.

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Questionnaire 1. What is your age? • • •

25-30 30-35 35 +

2. Are you married? • •

Yes No

3. Which current anti aging product you are using? • • •

Garnier Ponds Olay

4. Are you satisfied with quality? • •

Yes No

5. Why you choose your current anti aging product? • • •

Tv’s Doctors Advise Through friend

6. How’s our soap fragrance?

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• • •

Good Average Excellent

7. Can our soap meet your expectations? • • •

Yes No Can’t 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.pond’s.com www.olay.com www.garnier.com

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