OOPULENCEPULENCE

BBEE B BEAUTIFULEAUTIFUL, B, BEE O OPULENTPULENT…O…OPULENCEPULENCE CCREATESREATES T THEHE L LIFEIFE U L U LOVEOVE

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CCONTENTONTENT P PAGEAGE

Page No.I. Company Profile 1II. Corporate Mission 2III. Company objectives 3IV. Macro Environmental analysis 4V. Market Research 5VI. Market Analysis 9VII. LSM 11VIII. Market Mix 15IX. Levels of Product 18X. Branding Opulence 19XI. Brand Strategy 20XII. Brand Name 21XIII. Pricing 22XIV. Placement 27XV. Promotional Mix 32XVI. Opulence Life cycle 35XVII. Advertising Breakup 38XVIII. SWOT analysis 43XIX. BCG Matrix 47XX. Market Opportunity Matrix 48XXI. Sales Forecast 49XXII. Conclusion 55XXIII. Annexure IXXIV. Annexure II

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INTRODUCTION

COMPANY PROFILE

The name of the company is Suave private limited. This is a new company and its corporate office is situated in Karachi and branch offices are located in Lahore, Islamabad and Peshawar. The company is a division of Johnson and Johnson, which has specially been created to cater to the needs of the Pakistani consumer. Since the average consumer here very well knows the parent company the perception are triggered accordingly. We already have a strong positioning in the minds of the consumer in terms of the baby products that are launched by the parent company.Johnson and Johnson was founded in New Jersey around a 110 years ago. Since then the company has expanded in to a huge multinational. In Pakistan, the company is well known for its product line of baby powders, moisturizers, soaps and the most famous no tears shampoo formula. The company other wise around the world is known also for Tylenol and Band-aid. The company is financially very strong and on the Fortune 500 was ranked 47th in the year 2002. Further it was also ranked as the 7 th most admired company in the world and is the third amongst the pharmaceuticals. The success of the company can be determined by the fact that its sales have continued to rise since the last 69 years.By the introduction of an independent new division the intention was to enter the adult market of the country that will by no way affect the positioning of the parent company and therefore will not create any confusions in the mind of the average consumer. In terms of the baby products market the brand equity of Johnson and Johnson in Pakistan is very high.The company also gave this new company’s logo because it tends to reflect the actual purpose behind launching a product. The logo shows a human breaking all limitations that in any way hinder its existence, dynamism, vitality and rigor. It’s about a being breaking free and that’s what the company’s products are all about. Bring to the consumer the state of the art products, which help the consumer create the life that they can love.Since this is a new company it does not have an existent product portfolio, the only brand that it intends to launch currently is Opulence.

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COMPANY LOGO

CORPORATE MISSION

“To provide our customers with utmost satisfaction by catering to there

needs with products that are unique, safe and of the highest quality. We

constantly endeavor by our strong marketing insight to maintain our

standards of quality by keeping instep with the technological trends and

consumer preferences. We encourage our employees and provide them with

the freedom they need to exercise their skills to their maximum potential.

We put special emphasis on teamwork and dedication in achieving company

goals”.

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COMPANY OBJECTIVES:

Following are the long-term objectives of suave private limited

To always provide unique, safe and quality products to our consumers To maintain effective pricing in terms of the unique product that is being offered. To capture 25% of the shampoo market in the first five years after launch To make Opulence a leading brand name To make Opulence a house hold name To make Opulence a lucrative product for the company so that eventually over the

years it can be deemed as a cash cow. Cooperation with reputable and knowledgeable local distributors And to introduce other fast moving consumer goods that cater to the needs of the

consumer. Plans are being drawn for a detergent tablet called “pristine” which would be introduced a year after Opulence is launched.

Intentions of introducing a hair re-growth shampoo and an anti aging soap.

The short-term objectives of the Suave Company are

To capture at least 4% market share one year after launch To make Opulence available at every possible retail store that serves the products

target market To generate immediate awareness about the actual product and its attributes and

thereby inducing trial. To produce an anti dandruff additive concentrate that can maintain brand loyalty

for the shampoo users.

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MACROENVIRONMENTAL ANALYSIS

DEMOGRAPHIC FACTORS

The total market for shampoo comprises about 27% of the entire population of Pakistan out of which 73% is comprised of the regular shampoos, 15% is the anti-dandruff, 10% by the medicated shampoo and 2% is of the baby shampoo market.Most of the population of Pakistan still resides in the rural areas although things are changing. These changes are created due to an increase in the pull factors of the urban areas. Because of this reason most of the population still uses soap as a hair washer and therefore a shampoo can easily be termed as a luxury item, which also affects sales. The trend is slowly and gradually shifting especially after the introduction of sachet shampoos. The main buyer is identified as a housewife, who takes most decisions in the product purchasing.

ECONOMIC FACTORS

In Pakistan providing the right product at the right time is the key to success. The economy is in recession and it has been so for quite some time. These fluctuations have an adverse affect to the functionality of the company and its operations. But when we consider the purchase of a shampoo it is revealed that due to average involvement in making a purchase the effects will not be very dramatic.

TECHNOLOGICAL FACTORS

The company has an advanced research and development department due to which such an exceptional product was given rise to. The technological factors worked in favor of the company and therefore gave it the right insight to produce such a product as Opulence.

POLITICAL FACTORS

Although the political situation of the country is very unstable, especially once we consider the scenario nowadays, but this really does not affect the market of the brand that is being launched by Suave.

CULTURAL NEEDS

The culture of Pakistan is such where a high degree of beauty is attached to the hair of a person. Dandruff in our culture is termed as a very big problem and it is also advertised in

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a particular way that reflects dandruff as a life-ending scenario, it also considerably reduces the sex appeal of a person. Opulence has been created especially to cater to the needs of such people who can actually maintain brand loyalty and use an additive concentrate to rid themselves of dandruff. The Suave company saw a great opportunity in the anti dandruff segment, where though shampoos1 were available yet they left the hair very dry, brittle and the problem always came back.

MARKET RESEARCHSuave company, unlike some other companies that are in Pakistan decided to pay more attention on market research to get a consumer insight. It is the capability of seeing the market differently, sensing opportunity where none seems to exist or where competitors see only problems and hurdles. It is that which precedes and gives rise to 'doing things differently'.

THE MARKET RESEARCH PROCESS

Suave company has its own department of marketing research and it is this department that helps the management make 60% of its decisions in terms of new product launches. It was specifically this department that came up with the idea of Opulence and conducted a market research on it so that the management would have a better insight as to the product and its attributes. The department of marketing research conducted focus groups, which comprised of people facing dandruff problems and in most cases using anti dandruff shampoos to fight the recurring issue and also took interviews and questionnaire survey.The following information was revealed

1. Out of the focus groups and other modes of research, it was revealed that at least 90% people were not satisfied with there anti dandruff shampoo because either the dandruff cleared up for sometime or would not go away at all and

2. It was also revealed that these shampoos had an extremely drying effect on the hair. After washing the hair was left very dry, brittle and difficult to comb.

3. Continued usage of a particular anti dandruff shampoo makes the scalp itchy2.4. Some shampoos constitute of harsh surfactants that have an adverse affect on the

hair and scalp.A more professional study revealed the following about Pantene and Head & Shoulders,

Leave heavy deposits of a silicon like substance on the hair This creates hair static and hair breakage H&S constitutes of a patented anti fungal ingredient called Pyrithione

Zinc, that gets rid of dandruff because it is very strong.

1 Refer to annexure relating to an article on H&S taken from the internet2 Refer to the attached annexure number 1.

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Keeping all the above factors and drawbacks of anti dandruff shampoos in mind the company decided to launch an anti-dandruff shampoo concentrate that would appeal to the consumer. Its basic ingredients are a mild organic surfactants, higher protein content to lock in moisturizer and vitamin B5 from fruit extracts.At the department of market research (MRD) the following four steps were undertaken to test Opulence and they are as follows,

XXV. CONCEPT CHECK:

Here the product description was given to the consumers that this was a new additive concentrate for dandruff. So now the consumer can actually be brand loyal to there own favorite shampoo and yet be free of dandruff problems. All one has to do add a few drops of this concentrate to their regular use of shampoo. This product is 95% effective.

XXVI. INDIVIDUAL ELEMENT TEST:

This was very important, as the product is an additive concentrate to a shampoo; as a result its color and fragrance are an essential part. The product uses a lot of fruit extracts and herbs for the introduction of a mild surfactant that would clean out dandruff on the scalp. The product is kept fragrance free, since it is an additive to a shampoo, so when added to a shampoo it does not change its fragrance. No color has been added as an attempt to keep it as natural as possible. The original color of this concentrate is pale yellow. The pack test was also involved which seemed to be highly attractive and easy to dispense.

XXVII. PRODUCT MIX TEST:

This involved the combination of the above two factors and then a rating on them. The rating that was done by consumers revealed that the consumer was very excited by the concept check, individual element test and the packaging of the product.

XXVIII. TEST MARKET:

Opulence is test marketed in all areas of Karachi at different times because it is only a series of test marketing that can reflect the actual position and acceptance of the product. The reason that Karachi is used as a test market was because it is an urban cosmopolitan city of Pakistan. Only the Karachi television would be used as the media for promotion.

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5-YEAR PLAN

The five-year plan of Opulence is chalked out to meet estimate the volume production of the product as well as the profitability in the long run. These plans are intended to be kept static and will not vary. The reason to draw out these plans is to have an overall idea of how this brand would do and function in the long term. Other five-year plans of the company include the introduction of other convenient to use products for the consumers in the existent market. Suave Company has intentions of launching “Pristine” which is a detergent tablet and it also intends to launch a hair re-growth shampoo, which would be patented. This shampoo would be launched for people facing a thinning hairline.

ANNUAL PLANS

The annual plans are attended to in more detail and for Opulence it would be the concentration on further investment in terms of marketing costs.

QUATERLY PLANS

Since these are done periodically at the Suave Company, the drawing of these plans is more dynamic then the above two. These are analyzed to see any shortfalls in a particular month and then changes will be made accordingly. In these plans fluctuations in terms of demand and distribution are paid the most attention to. It also in these plans that the gathered marketing intelligence plays a vital role.

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MARKET ANALYSISOPPORTUNITY ANALYSIS

We start by defining what is dandruff. Contrary to popular belief it’s not just a dry scalp. A dry scalp will make the head a little bit on the flaky side, but although it looks similar it's not technically dandruff. Dandruff is really a scalp condition characterized by excessive flaking of the scalp and is also associated with itching and redness of the scalp. The keyword here is 'excessive'. Everyone's head sheds skin in much the same way as the body, which is continually shedding skin. People with dandruff suffer from an accelerated rate of skin shedding from the head, resulting in noticeable flakes of skin, or dandruff. The flakes from dandruff tend to be a little bit bigger than those from a person with just a dry scalp; they are white in color and slightly oily looking as opposed to the smaller, drier flakes from a person with a dry scalp condition. It was this problem that was being catered by the anti dandruff shampoo market in Pakistan, but absolute satisfaction was not being derived by the consumers. Although they, the consumer, continue to use these shampoos, an unmet need still existed. And therefore it was this unmet need that is being capitalized by the Suave private limited company, through the introduction of an anti dandruff concentrate additive that can be used with a regular shampoo.

MARKET DEFINITION

Opulence is to be launched nationally and it is a unique formula that is an additive concentrate for the effective removal of dandruff, hence it comes under the direct competition of Head & Shoulders and Sun silk white (the egg and yogurt formula).

TOTAL MARKET STRUCTUREThe shampoo market of Pakistan comprise of only 27% of the entire population. In this percentage those consumers who only use shampoo once a week are also included. Shampoo as a hair care product gained popularity from 1960's and since the market is grown steadily to its present size.

MARKET SEGMENTATIONShampoo market of Pakistan is divided into three segments i.e.

Regular shampoo market 73% Anti dandruff shampoo market 15%Medicated shampoo market 10% Baby shampoo market 2%

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The antidandruff market is the direct competitor to OpulenceMARKET SIZE

The size of the shampoo market in terms of litter usage is approx. three million annually. In terms of Rupees its total sales volume it is four billion rupees.So total market - Rs.4 billionAntidandruff market is 15% and therefore is Rs.600m

GROWTH OF THE MARKET

The shampoo market is expanding very rapidly as awareness is increasing. More and more people are switching from soaps to shampoos. At present the shampoo market is growing with a steady rate of eight to ten percent.

COMPETITIONThe shampoo market consist of three major players in terms of the dandruff shampoos segment, Head & Shoulders and Pantene by P&G, and Sunsilk white by Unilevers.Head & Shoulders has the highest brand equity as the survey revealed that when a shampoo consumer was asked the name of an anti dandruff shampoo the first name that came to there mind was Head & Shoulders. Market share of Head and Shoulders is approximately 50 %, Pantene is approximately 18%, Sunsilk white is approximately 30% and other are about 2%.

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But the H & S shampoo on its own is not very popular because of its harsh effects that are created by the bleaching agents in the shampoo. Other player in the market is Sunsilk white, which has been recently launched and has already started to make a place for itself. All these mentioned products have the strength of the back up of a strong company, which are giants in the worldwide market. The only advantage that Opulence has against all these three products is not in terms of its manufacturer but in terms of the uniqueness it is offering. People once aware of the product would immediately want to try it because it does no damage to the hair unlike the existent players and the consumer is well aware of there damaging attributes.Opulence would be positioned directly in competition to the above-mentioned three brands and therefore needs an aggressive promotional plan.When we talk about head and shoulders the product has a bleaching effect that apparently removes the dandruff but the action is such that when the dandruff returns it is much worse in comparison Opulence washes the scalp with its mild ingredients and the tea tree oil in it actually helps reduce further dandruff.Sunsilk on the other hand leaves the hair very dry and rough and its action on dandruff is not very strong, Opulence on the other hand not only conditions the hair but also the scalp as a result the hair is left to be healthy, shiny and manageable.

BUYER IDENTIFICATION

The main consumers for the locally manufactured and marketed shampoos are the upper middle and the middle class who buy 200 ml to 400 ml bottles on regular basis. The lower middle and the lower class do not buy shampoo bottles, they rather constitute the majority of the sachet sale (5 ml)The main buying influences in the shampoo purchase are the housewives. The buyers of the shampoo market as follows

Extremely brand loyal or Constant switchers, to try out something new and different. They are strongly

influenced by promotional campaigns and promises.In terms of the anti-dandruff shampoo market the consumer is buying it along side a regular shampoo. It is only bought to be used once in a while when dandruff reappears and not for consistent use.

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LIVING STANDARD MEASURE (LSM)

The LSM are basically divided in to 3 groups and than each chosen group is calculated against a set of 20 variables. The 3 groups are

1. Super group A: highest standard of living2. Super group B: middle standard of living3. Super group C: lowest standard of living

The LSM is utilized as a wealth measure on the lines of education and standard of living and has nothing to do with the income of the people.The LSM for Opulence was from the Super group A and B, and following are the 10-20 variables against which the segment was chosen against,

1. Education level2. Importance of culture and social values3. Degree of risk orientation and innovation4. Own house5. Domestic help6. Car ownership7. LAN line8. Cell phone in household9. PC in house hold10. Kitchen appliances and electronics (fridge, microwaves etc)11. Home security service12. Habits in terms of eating out13. Club memberships14. Internet access15. Media exposure

Since Opulence is produced in 2 sizes, the company developed two LSMs for it. The first for the 100 ml that will be utilized by the higher resourced people and the sachet that will be utilized by the lower resourced individuals.

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LSM FOR OPULENCE 100 ML BOTTLE FOR THE SUPER GROUP A

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DEMOGRAPHICS People above the age of thirteen facing dandruff problems. Education need not be stated since its people of all ages facing a dandruff problem above

the age of 13. Gender: Male/ female both

LSMAgain there education level is according to their age and a very small percentage is uneducated. They do hold social and cultural values, and therefore are aware of their dandruff as a setback in there daily interaction. They believe in a degree of innovation and therefore risk orientation, but alongside they also believe in the functionality of the product. They are brand loyal as well as switchers in terms of shampoo

Standard of LivingMost cases they will own their own house and will have domestic help, each household would have one to multiple cell phones, cars, LAN numbers, personal computers, club memberships, internet access and media exposure. Some of them would also own a home security service.Generally they would also like to eat out and try new places, as they are innovative, extremely health conscious and go to clubs for workouts. They may also like to watch programs and hear music that does not bear a common liking.

LSM FOR OPULENCE 5 ML SACHET FOR THE SUPER GROUP B

It should be noted that the LSM greatly overlaps in terms of the divisions. It is not a clear-cut distinction of the individuals.

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DEMOGRAPHICS People above the age of thirteen facing dandruff problems. Education need not be stated since its people of all ages facing a dandruff problem above

the age of 13. Gender: Male/ female both Relatively disposable income

LSMEducation is a very relative factor in this group; nevertheless since Opulence is a product that needs a degree of education to understand its functionality, we can assume a minimum education as to be intermediate in a household. Since this is a middle living standards group their cultural and social values are very high and therefore are aware of their are aware of their dandruff as a setback in there daily interaction. There is a degree of innovation that they seek but at the same time are also well aware of the perceived risk involvement. They give a lot of attention to the functionality of the product but at the same time most of them will take up a product like Opulence to feel more socially accepted in the upper standard of living. They also share common dislike to the antidandruff shampoo.

Standard of LivingMost cases they will not own there house and are living on a rental basis, a percentage would also be living in the apartments. Domestic help would be there but through very limited means, no home security services and club memberships. Each household would have one to a maximum of two LAN numbers. Cell phones, personal computers, Internet access and media exposure is very limited and is termed as luxury items.Generally they would also like to eat out but after a lot of planning and they believe in going to places, which serve good food at low costs. They are not very health. There tastes in terms of music and programs are similar to the vast majority and they find no entertainment in programs appreciated by the high living measure.

DETERMINANT ATTRIBUTES

The benefits, which the buyer wants from the shampoos, include lustrous and healthy hair, manageability, a perfect dandruff solution and the price and the quality benefits.These above mentioned attributes are not fully being offered by the anti dandruff shampoos in the market. No shampoo is available in the market that caters to this need in its entire above-mentioned form. Opulence is precisely a product that caters to all the above-mentioned requirements and will definitely get a market share for itself.Other factors that will contribute to an increase in its market share are

Increase in the standard of living Increase in the brand awareness which will be done by extensive

advertising Increased awareness of the strong ingredients in the anti dandruff

shampoos. Simple and easy utility Allowing brand loyalty and alongside catering to the need of the

dandruff problem.

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MARKET MIXThe marketing mix employed by any organization comprises of the following

Product Pricing Placement Promotion

Like any other organization, Suave private limited intends to give due considerations to all the above-mentioned areas. They are discussed as follows,

PRODUCT

Opulence is to be launched keeping the wants and needs of the consumers in mind. It is created in such a way that it would gain immediate attention of the target consumer for usage and consumption.

Keeping all the above-mentioned factors in view the company decided to launch a anti dandruff additive concentrate called Opulence that provides the basic properties of a regular shampoo; of manageability, shine and volume, but also wash out the dandruff from the scalp. This product is 100% natural, using fruit extracts and concentrates.

UNIQUE SELLING PROPOSITION

This is a unique product that has the ability to bind with the regular shampoo without changing its properties to give out exceptional results of hair that are dandruff free plus an increased shine and manageability. Its consistent use guarantees the reduction of dandruff and an eventual removal. Its unique functionality lies in the fact that it mixes perfectly with all regular shampoos without changing their own properties. Since this is a fruit and herbal concentrate there is no way that it will be harmful to the hair and the scalp unlike the other strong anti dandruff shampoos that are available in the market. This is a creation that caters to the needs of every individual belonging to any age group who resent using the already available dandruff shampoos, but only do so because they have no other option available. The availability of Opulence is catering to the needs of these

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people so that they may be able to use the shampoo of their choice and just add a few drops of Opulence to prevent dandruff.

FEATURES

Natural products became extremely important in the 1990’s.  Organic is a word that is associated with many beauty products and has become very popular with the consumers.  People can choose to buy a shampoo of a brand name that promises to penetrate your hair and roots with ingredients “essential in nature for true shine.”  Organic has turned into a highly electric word, and has come to signify not merely how a product is produced and manufactured, but a way of looking at the world. Opu l ence w as t he r e fo re a ne w p roduc t t o an ex i s t i ng ma rke t . The name O pu lenc e m eans w ea l th , l uxu ry and m agn i f i cence i n t e rm s o f o rgan ic s and hence na tu r e and tha t i s exac t ly wha t t he p roduc t i s a l l abou t . T he un ique r e se a r ched a nd e s t ab l i s hed p rope r ty o f da nd ru f f r emova l f rom t he s ca lp c a t e r s t o t he need o f an unme t dem and o f t he cons umer . Be fo re t he c onsum er w as u s ing a n t i da nd ru f f sha mpoos on ly bec aus e o f hav ing no o t he r cho i ce t ha t r em oved dand ru f f w i thou t a ny has s l e . The ke y func t i on and word o f t he p roduc t i s “o rgan ic ” . I t s f unc t ion i s t o no t on l y make the ha i r dand ru f f f r ee bu t a l s o ma ke i t sh i n i e r and ma nageab l e . S ince a l l t he i ng re d i en t s a r e na tu r a l conce n t r a t e s t he r e i s no f ea r o f t he m r ea c t ing w i t h t he s ca lp o r r eac t ing w i t h t he i ng red i en t s o f t he s hampoo i t b inds w i t h a nd t r i gge r a l l e rg i c r eac t ions .

Bene f i t s a r e a s f o l l ows , Na tu ra l f o rmu la t ha t ha s no r e ac t i ons Eas y and c onven ien t app l i ca t i on , t ha t t ake s no t ime P roven and app rove d c l i n i ca l l y

POSITIONING

The positioning of the product is more in lines of that of sunsilk and head and shoulders shampoo. The only difference is going to be in its usage and contents. It is positioned head on towards the mentioned products.

US A GE

Opul ence can be u s ed a s fo l l ows 4 d rops fo r a cu t e dand ru f f p rob lem s 2 d rops fo r m ino r dand ru f f p rob l ems 1 d rop a s a p r even t ive m eas u re .

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S IZES

Opul ence i s cu r r en t l y ava i l a b l e i n a 100m l pa ck a nd 5 ml s ache t packs .The s ac he t s a r e i n t roduced w i t h a nozz l e t op s o t ha t d rops can be r egu la t ed a s pe r u s age .

PA CK AG IN G

S ince t he r e a r e ove r a hund red b r a nds o f s ham poos t ha t a r e ava i l ab l e on t he s he l f t oda y , t he c ompany wa n ted the packag i ng o f t he Opu l ence t o be a s un ique a s t he p roduc t . A l l an t i dand ru f f s hampoos on the s he l ves o f a r e t a i l s t o r e have a l mos t t he sam e bo t t l e de s i gn . Rang ing f rom the squa re t o t he c i r cu l a r t o t he r ec t angu l a r a nd l a s t l y t o t he ova l , t hey a l l bo i l dow n to t he s ame l eve l . Ex t r e me us e s o f geome t ry r a t he r t han na tu r e and a na tom y .The re fo re t he pa ckag i ng o f Opu l ence i s m ade ou t t o s t r i c t l y add re ss t he a bove -men t ioned i s s ues . O pu lence i s c lo s e t o na tu r e be caus e o f i t s i ng re d i en t s a nd keep ing t h i s i n mi nd the bo t t l e o f Opu l ence i s made ou t o f a s o f t sque ezab l e bo t t l e . I t s sha pe r e f l ec t s t he body o f a wom an . Co lo r s u s ed w ou ld be s t rong and v ib r a n t , s o t ha t t he un ique packa g ing c a t che s t he im med i a t e a t t en t i on o f t he cons umer and hence an imm ed ia t e p i ck up spe c i a l l y by m en and a s fo r w omen i t r e f l e c t s m ore un i quenes s and s ty l e i n s t e ad o f t he o ld geome t r i ca l bo t t l e s t and i ng on the s he l f . I t w i l l ha ve a f l i p t op w i t h a nozz l e t ha t w i l l a id i n t he t a k ing ou t o f t he r equ i r e d d rops .

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LEVELS OF A PRODUCT

The co re p roduc t i n t e rm s o f O pu le nce a r e t he an t i dand ru f f

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Potential Product

Augmented Product

Expected Product

Basic Product

Core

prope r t i e s t ha t i t h a s . The ac t ua l p roduc t i nvo lve s t he a l r e ady above men t ioned a t t r i bu t e s i n t e rms o f i t f e a tu r e s , de s ign , qua l i t y l eve l , packa g ing a nd b r and name . E xpec t e d p roduc t i s wha t t he consum er pays fo r Opu l ence know ing a l l i t s a t t r i bu t e s and a g ree s t o pu rcha se . Augm en te d p roduc t i n t e rms o f O pu lenc e w ou ld be any t h ing ex t r a o the r t han i t s dand ru f f c l ea r ing p rope r t i e s . Thes e wou l d be t he ex t r a sh i ne and m anagea b i l i t y t ha t t he cons umer ge t s ou t o f t he p roduc t . The l a s t l e ve l o f t he p roduc t i s t ha t o f i t s po t en t i a l , t he r e s ea r c h and deve l opmen t depa r tm en t o f t he S uave com pany w i l l con t i nue to fu r the r enhanc e a nd deve lop t h i s p roduc t s o t ha t added f ea t u r e s ca n be i nco rpo ra t ed , t o be t t e r f u l f i l l t he needs and de s i r e s o f t he cons umer .

BRANDING OPULENCEThrough Opu l ence t he com pany i n t ends t o pu t a c ro ss t he fo l l ow ing mea n ing to i t s cons umer s ,US ER : Any one wi th dand ru f f p rob l ems bu t h i s / he r ima ge w ou ld o f a ve ry s ty l e cons c ious pe r s on .CU LTU RE: Rep re s en t t he cu l tu r e o f P ak i s t an , w he re dand ru f f i s t hough t t o be a ve ry ac u t e p rob lem es pec i a l l y i f one i s l ook ing fo r an ac t i ve s oc i a l l i f e .PER S ON ALI TY : The pe r sona l i t y o f Opu l ence t h rough i t s packa g ing r e f l e c t s magn i f i ce nce , s ex appe a l and a n innova t ive s ty l e .ATTR I BUTES : t he un ique s e l l i ng p ropos i t i on o f t he p roduc tBENEF IT : make s t he ha i r da nd ru f f f r ee w i t h t he ea sy a nd conven i en t u s ageVA LU E : h i gh va l ue i n t e rms o f w ha t i t o f f e r s and p r i c ing , r e f l ec t s t he pe r son t o be more o f a i nnova t o r t han a l agga rdPER S ON ALI TY : sm ar t , i n t e l l i ge n t , s ucces s fu l and i nnova t ive .

21Culture Personality

User

BRAND STRATEGY

Product Category

Existing New

Existing

Brand Name

New

The product category is new that is an anti dandruff additive concentrate for the antidandruff market. The brand name is new and so is the company. Therefore the brand strategy that the Suave Company is following is that of a new brand altogether.In terms of the product classification of consumer goods Opulence is a convenience staple product as it is average priced, frequently used and easily available.

22

Line Extension

New BrandsOPULENCE

Multi- Brand

Brand extension

Attributes Benefits Values

BRAND NAME: OPULENCE

The reason why the brand name Opulence was chosen because it was distinctive and lacked any use of foreign words with difficult pronunciation. The name in itself suggests beauty, magnificence and style. This can therefore be associated with the benefits that it has to offer which is magnificent beautiful hair which are dandruff free. The product qualities revolve around it being 100 percent organic and natural using a mild surfactant. The name is simple to pronounce, recognize and remember.

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SuggestProductBenefits

DistinctiveLack Poor

ForeignLanguageMeanings

SuggestProductQualities

Easy to:PronounceRecognizeRemember

PRICING

EXTERNAL FACTORS INFLUENCING PRICING

There is a market and demand for a product like Opulence, although dandruff-clearing shampoos are there but the consumer eventually complains of their harsh affects caused mostly due to the harsh surfactant used that eventually result on the hair3. In terms of other external factors the economic conditions of the country are quite unstable, government actions are not very relevant. Social concerns are important

3 Refer to the attached article on Head & Shoulders and saloon products, annexure 1

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Market and

Demand

Competitors’ Costs, Prices, and Offers

Other External FactorsEconomic ConditionsGovernment Actions

Social Concerns

because there is an unmet demand for a product that will be benefit the hair by making it dandruff free as well as lustrous and shiny.The competitors are a very important factor and they are discussed below with their different pricing, costs and offers. Opulence has been priced in direct competition to its competitors. Following is the pricing of the competitors in the shampoo market,

BRANDSIZE/Rs.

HEAD & SHOULDERS

SUNSILK WHITE PANTENE PRO V

400 ML 238.00 210.00

200ML 108.00 100.00 110.00

100 ML

SACHET 5 ML 3.00 3.00 3.00

The pricing for Opulence is as follows,

100 ML: Rs. 55 Sachet: Rs. 3

These prices are a little bit higher then the direct competitors, because of the organic ingredient extracts use and the sachet is introduced with a small nozzle attachment. Because a regular sachet pack will not aid the consumer in taking the required amount of drops out and therefore a nozzle attachment. The reason that a 400 ML pack and a 200 ML pack are not introduced is because the product is to be used in small amounts as stated in the usage of the product earlier. A 5 ML sachet contains of about 20-25 drops, so a sachet for acute dandruff problems will last up to 5-6 uses. The 100ML can serve as a family packs whereas a sachet can be introduced as for personal use.

25

The pricing follows the cost plus pricing strategy and following are the reasons for implementing this strategy

26

Sellers Are MoreCertain About

Costs Than Demand

MinimisesPrice

Competition

PerceivedFairness to

Both BuyersAnd Sellers

PRICE BREAK UP

SACHET 5 ML @ Rs.3

FACTOR BREAK UP

PRICE PERCENTAGE

COST OF GOODS SOLDRaw material (40%) 0.62

Labor (15%) 0.234

Factory Over head (17%)

0.26

Packaging (23%) 0.36

Freight (5%) .078

Company cost 1.56 52%

Distributor Margin 0.39 13%

Retailer Margin 0.3 10%

Sales tax 0.45 15%

Mark-up 0.3 10%

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Total price 3.00 100%

100 ML @ Rs. 55.00

FACTOR BREAK UP

PRICE PERCENTAGE

Raw material (40%)

11.22

Labor (11%) 3.09

Factory Over head (16%)

4.5

Packaging (28%) 7.854

Freight (5%) 1.40

Company cost 28.05 51%

Distributor Margin 7.70 14%

Retailer Margin 4.95 9%

Sales tax 8.25 15%

Mark-up 6.05 11%

Total price 55.00 100%

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PLACEMENT

Opulence is a unique product that not only allows a clear solution to the dandruff problems but it also allows the consumer to use the shampoo of their choice and likeability. Since Suave Company is an independent division of a well-established multinational; the company faces as such no distribution problems. The company is involved in a nation wide launch and therefore in order to effectively reach most areas of the country the company will use at least 100 to a 150 distributors nation wide. These distributors will get a margin of 13 to 16 percent on the actual price of the product. By using exclusive distributors the company attempts to create good relations with their channel members and intermediaries. As a matter of policy, Suave Company will provide credit to distributors, and distributors in turn generally will sell on a either cash basis or credit basis to retailers depending on the terms and relations. Smaller distributors often do provide credit to retailers, but the volume of such transactions is relatively insignificant. The reason to do so is because most of the distribution in Pakistan is done on the lines of credit and since there is already a developed relation with the parent company, no likely risks are involved. .

Following are the reasons why the intermediaries are used by the company To be able to attain greater efficiency in providing the product to the target market To gain what it can only gain through an effective channel

a. Contactsb. Experience and c. Specialization

The company intends to use a mix of exclusive distribution in certain areas and intensive distribution in high turnover areas as well as channels.The company’s warehouses are exclusively created to hold a stock as a contingency plan. So that the product is available in case there is an increase in demand or a production problem. TYPES OF SALES & DISTRIBUTION SYSTEMS

For the matter of distribution the company adopted ways, which would match with its sales message. The company plans to distribute the product through direct response systems, direct personal selling systems and trade selling systems The product will be locally given and distributed to final buyer. Telephone selling may be used for order taking. In direct personal strategy, the primary functions are to provide

29

product information, technical advice, customer satisfaction, and customer service, and identifying changing customer needs.

As mentioned above, indirect systems will be used for distribution through which products will be distributed to retailers.Sale messages will also be delivered by face-to-face contact. The primary functions here are to obtain the distribution support, provide product information, and provide sales training and assistance to distributors.

DISTRIBUTION CHANNEL STRUCTURE

Selecting the distribution channel is very sensitive area. Therefore the Suave company will require the distributors to accomplish their task and meet the task given to them, which will depend on what is needed to competitively meet customer needs and on the relative economic efficiency of performing or delegating the task.

OTHER DISTRIBUTION CHANNELS

INTERNAL SALES FORCE TRAINING AND DIRECT MARKETING

Individuals are hired who do sales as a part-time commission-based job. However, the Suave Company makes efforts to train them in product presentation techniques. The company will use this mode of personal selling for not more than two years because they feel once the consumer recognizes the brand they will prefer to buy it from the stores rather than sales person.Direct marketing in Pakistan until recently was limited to direct mail advertising, with leading pharmaceutical firms and large publishing groups as major users. However, the inception of telemarketing and greater use of courier services have recently broadened the scope of direct marketing. Since the concept of direct marketing is gradually gaining acceptance in the Pakistani marketplace and its inception costs less this is a potentially cost effective.

30

Company Depot Distributor

Retailer

Internal sales force Pharmacies Saloons

Consumer

However the only drawback to this channel is the lack of readily available mailing lists and the paucity of reports on consumer preferences, making it difficult to target and reach the intended audience. Efficient mail, courier, and telephone services are generally limited to major urban areas, confining the current reach of direct marketing to the cities of Karachi, Lahore, Rawalpindi/Islamabad and Peshawar. Therefore the Suave Company will limit these channels to these major strata’s for the time being.

MARKETING LOGISTICS

Most companies functional in Pakistan do not provide a toll free number for their consumer or even potential consumers to call in and ask questions about a product and its usage, effects etc. Again due to the marketing insight of the Suave Company, it has decided to introduce a customer calling center that will initially start by being available on the phone for a certain period of limited hours and then in the long term operate twenty four hours once more products are added in its portfolio.

PHARMACIES AND DOCTORS

Although Opulence is not a medicated product yet in order to increase its turn over the company has decided to distribute to pharmacies, as they will reflect the high quality and hygienic factors involved during its production. Free samples would be distributed to hair and skin specialists so that they can evaluate the product and pass it on to there prospective patient. BEAUTY PARLORS

Opulence will also be given out to parlors at a discounted price so that they can create awareness by passing it on to there independent customers who believe more in saloon products rather than retail outlet offerings.

CELEBRITIES AS CULTURAL INTERMEDIARIES

Although celebrities are used as a promotional means for a product but the Suave Company due to their in-depth marketing insight intend to use celebrities as intermediaries as well. Celebrities that are intended to be used are Iman Ali and or Zara Sheikh. The reason why Vaneeza and Amina Haq are not used (although they are perfect reflections of our rich and inherent culture) is because these two are becoming over used endorsers. Vaneeza is currently endorsing Instaphone products; previously she has been a part of Master Celeste and Pepsi Diet. Amina Haq has endorsed Royal Fans and Ponds amongst other products. The reason why celebrities are used as intermediaries is because of the following reasons,

Celebrities are cultural intermediaries; firstly, because they perform across different media and so help link different cultural spheres in which other cultural

31

intermediaries working in the fields of presentation and representation are active. In this respect, they legitimate various aspects of culture.

Secondly, celebrities are also cultural intermediaries because they give commodities ‘cultural personalities’ and thereby link producers with consumers by integrating the world of goods with the worlds of consumers using those goods). In this respect, they help other promotional industries such as television and magazines to construct and sell audiences to their sponsors

Thirdly, celebrities are used to ‘explain’ and support the meanings of commodities that manufacturers wish to convey to consumers.

Fourthly, celebrities affect the overall aesthetics and design of the advertising campaigns (as well as of other media forms) in which they appear.

Fifthly, they also function as links between corporations (producers) and consumers whose separateness they help overcome. Like advertising itself, therefore, they emphasize exchange over use values and the social relations of consumption over those of production.

HOTELS

Initially free samples would be sent out to five star hotels, so that they can place it in their toiletry basket in the bathrooms of the hotels. This would induce trial and later on once the product quality is thoroughly established the product would be distributed to these hotels. Its initial cost is going to be subtracted from the Profit and Loss accounts.

WEBSITE FOR THE SUAVE COMPANY

As a long term objective of the Suave company, plans are being drawn to create the company’s exclusive website through which the company can cater to the needs of orders that are placed by distributors and the retailers as well as other intermediaries like beauty parlors. This is one of the means by which the company also intends to go international, especially in the neighboring countries like India and Bangladesh who share the same culture and demands.

RETAIL OUTLETS

There are approximately 200,000 retail outlets in Pakistan, of which nearly 50,000 are located in the major cities. Large supermarkets or chain stores for general consumer items still do not exist in Pakistan at a high scale, though the trend may catch on soon, as one large supermarket has been established in Lahore in collaboration with a British chain of supermarket and has become a major point of attraction there. However, the

32

concept of chain stores for fashion apparel has lately begun to emerge in the larger cities, where several such chains carrying predominantly locally manufactured merchandise are currently operating. In addition, hundreds of government-owned Utility Stores sell food and household items and serve as a mechanism for restraining inflationary price increases by following the government line on pricing.

There have been some trends that have been observed in the growth of the retail outlet that will eventually aid the company to improve their sales and ultimate profits. They are as follows,

Increasing trend towards self service Increased awareness of new technology, computerization of stock and credit cards Shopping patterns shifting towards leisure (has yet to catch up) New marketing techniques in terms of the living standard measure Increased investment in store design.

SELECTING AND IMPLEMENTING APPEALS

The Suave Company believes in the fact that the distinctive feature of sales force activities is the personal interaction between the sales force and the buyers and distributors. Therefore, this company will develop an understanding of buyer or distributor requirements, and will maintain a powerful relationship with buyers or distributors in order to successfully implement the appeals.

MOTIVATING CHANNEL MEMBERS BY THE SUAVE COMPANY The means by which the channel members are going to be motivated to promote Opulence as a product in the market are stated as follows,

Employment of both the push and the pull strategies Contract provisions which guarantee the maintenance of prices for a period of

time Give a degree of exclusivity to the retailer in terms of catering to a certain target

market and or area, as it is mentioned before that the company intends to use a blend of exclusive and intensive distribution.

Maintenance of a price by retailers, which again guarantees a constant level of margin.

The company has intentions of resolving channel conflicts as much as possible by sharing some of its information to build trust between itself and the channel members.

33

PROMOTIONAL MIX

34

REVIEW MARKETING PLAN

ANALYSIS OF PROMOTIONAL PROGRAM

ANALYSIS OF COMMUNICATION PROCESS

BUDGET DETERMINATION

MARKETING PROGRAM

ADVERTIISNG

ADVERTISING OBJECTIVES

MESSAGE STRATEGY

MEDIA STRATEGY

STRATEGY INTEGRATION

SALES PROMOTION

SP OBJECTIVES

SP STRATEGY

Opulence is a fast moving consumer good; the identified segment is the one that is highly influenced by advertising, sales promotion and the recent trend is the slight shift towards personal selling. The Suave Company realizing all the effective forms of promotion in terms of the targeted segment has decided to use advertising and sales promotion.

Since the product is being introduced, the parent company Johnson & Johnson is giving the promotional support to the Suave Company in the launch month. The promotional support that is being extended is Rs. 6,500,000 since this is a very unique product, the parent company wanted to take no chances that may create hindrance in its success. After the launch month, which is January, the parent company intends to take back its promotional support since the company would then be in the position to generate its own advertising expenditures from February onwards.

PROMOTIONAL OBJECTIVES

Following are the long-term objectives

To create the consumer perception of Opulence as the only dandruff solution that is effective and efficient and yet gentle.

To capture 25% of the dandruff shampoo market To generate awareness about the uniqueness of the brand to the targeted segment To differentiate it from its competitors To induce trial and repurchases To maintain brand loyalty after the period of trial Intensify usage Increase sales and revenues

The short-term objectives of Opulence are to induce trial and to create awareness.

Following are the forms of promotion that are going to be used

Advertising Sales promotion Personal selling (not an extensive plan, intentions of limiting it to certain areas)

35

MONITOR, EVALUATE AND CONTROL STRATEGIES

ADVERTISING

REASONS OF USING ADVERTISING

To use advertising as a mode of information to the consumer about the use and the attributes of the product Opulence

Cater to the need of the consumer to make a more informed choice It will act as a guarantee of quality Enhances product identification Aid to the increase in sales, which will lead to the increase in output and therefore

economies of scale will be passed on in lower prices.

MAJOR MEDIA AVAILABLE

Television and newspapers are the most widely used method of advertising in Pakistan. Other advertising vehicles include radio, billboards, periodicals and trade journals, direct response advertising, and slides and commercial film shots in movie theaters. Internet is the latest mode of communication in the country, which is slowly, and gradually catching up. The Internet is one of the long-term objectives of the company, which it intends to use as not only a channel but also as a promotional platform.

Pakistan has over 115 daily newspapers. The Daily Jung, published in Urdu, is the single largest newspaper, with an estimated national circulation of almost 800,000. Combined circulation for the roughly 13 English-language newspapers is approximately 300,000 – 400,000. The principal English-language daily newspapers are Dawn (published in Karachi, Lahore), The News (Islamabad, Lahore, Karachi), The Nation (Lahore), The Muslim (Islamabad), The Frontier Post (Peshawar), Financial Post (Karachi) and The Business Recorder (Karachi). Although the English-language press reaches only a small fraction of the population, it is influential in political, business, academic, and professional circles. The two major English-language general magazines are the monthlies, The Herald and News line. The principal English-language weekly economic magazine is the Pakistan & Gulf Economist, published in Karachi, and there is also a widely read English weekly Friday Times published from Lahore. Others include mailing, posters and billboards.The product life cycle on the next page reveals that the product Opulence is in its introductory phase and since this is mostly a seasonal product (dandruff problems become more acute during winters, usually November on wards) the pulsing schedule intends to be used.

36

PULSING SCHEDULE

The advertising frequency is divided in to peak seasons (winters) and off seasons. Further in terms of the monthly advertising major emphasis will be laid in the first and the last week of the month, since that is when the consumer usually spends and during the central two weeks of the month a few ads would be generated which will serve as a reminder to the consumer.

OPULENCE LIFE CYCLE

As the graph below reveals that the product Opulence is in its introductory stage. And it is likely to remain in this position in the first six to eight months after launch because of the expenses incurred with the production introduction. Once this phase passes the product will enter the growth phase because of a rapid market acceptance and substantial profit improvement. The phase of maturity will set in once Opulence has achieved acceptance by most potential buyers, and profits either stabilize or decline, right now it is difficult to say when the product is likely to enter this phase but one thing is for sure it is not in the next five years, since this is a very unique product and the dandruff problems of the consumer has not been effectively catered to.

37

OPULENCE

THEME OF ADVERTISEMENTS

TELEVISION

The themes currently used in Pakistan are all peripheral routes of persuasion when we talk about shampoos. It always revolves around a woman and the beauty and glamour involved in the usage of a particular shampoo. Opulence though not a shampoo is an additive concentrate that can be added to any shampoo to cure the dandruff problems. The product will also utilize the peripheral route but instead will have a different theme to it, which would be more on the lines of humor. The average Pakistani faces a lot of problems in his daily life and the reason why they switch to watch TV at the end of the day is to get some entertainment. Studies reveal that humorous advertisements are likely to be retained longer in the minds of the consumer than others. The peripheral route will though further go on to explain how to use the product and then its ultimate effects. Which in the case of the advertisement are on the lines of high social acceptance and a lot of success.

PRINT

The print advertisements are likely to use more of the conventional form of communication with the ultimate consumer. The use of a female model and the statement of the simple slogan4 is what have been decided, with a few lines of the product attributes and usage description. The purpose of this idea is to attract the immediate attention of the consumer.

BILLBOARDS

They will be on the same lines as the print advertisements. Payment of this media would be done once and for all for a year.

POSTERS and BANNERS

Will be partially on the lines of the television advertisement and partially on the lines of the print advertisements, so that the consumer can create a link, between the various modes and ideas of communication utilized.

4 Refer to print ads in the annexure number 2.

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PERCENTAGE ALLOCATION TO MEDIA

Rs. 5,000,000 is kept as the launch period expenditure for the month of January. Following is the percentage allocation to the various media discussed above;

TELEVISION: 60% OF 5 MILLION

In Pakistan, television is the most watched media and therefore deserves the highest percentage allocation. The various channels available nowadays are PTV and PTV World, ARY Digital, Indus Vision and Indus Music and the latest and currently the most successful entry being GEO television.

PRINT: 30.5% OF 5 MILLION

This media is used for advertisement reinforcement and reminder. The media that are popular and most read in Pakistan are already mentioned above. But in choosing the print media the Suave Company kept the product quality and value and target market in mind and therefore decided on the following magazines and newspapers,

Dawn The news Jung Visage She MAG

BANNERS AND POSTERS: 9.5% OF 5 MILLION

A lot of banners and posters are going to be placed all over the country in all possible areas of where the target market exists.

BILLBOARDS

39

These are going to be placed around the country about two months after the launch of the product when ample revenues are going to be generated, so that the company can effectively fulfill its expenses. Nevertheless they will be placed only in the city of Karachi initially.

TELEVISION ADVERTISING BREAK-UP FOR THE MONTH OF JANUARY IS ON THE NEXT PAGE

40

DATE TIMENO OF SPOTS

DURATION PTV ARY

GEO TV (60

SECs)INDUS MUSIC TOTAL

1 8:00-9:00 2 30+30 176,250 80000 20,250 15,000 2915002 8:00-9:00 2 30+30 176,250 20,250 1965003 8:00-9:00 2 30+30 176,250 20,250 30,000 2265004 8:30-9:00 1 30 88,125 15,000 103125

9:00-9:30 1 30 80000 20,250 1002505 8:00-8:30 1 30 88,125 20,250 15,000 123375

9:00-9:30 1 30 80000 800006 7:00-8:00 1 30 88,125 881257 10:00-10:30 1 30 20,250 15,000 352508 7:00-7:30 1 30 40000 400009 8:00-9:00 1 30 15,000 1500010 8:00-9:00 1 30 88,125 8812511 8:00-9:00 1 20 62,514 6251412 8:00-9:00 1 20 15,000 1500013 4:00-5:00 1 20 30000 10,350 4035014 7:30-8:00 1 20 15,000 1500015 8:00-9:00 1 20 62,514 20,250 8276416 1:00-1:30 1 20 20000 10,350 3035017 8:00-9:00 1 20 15,000 1500018 7:00-7:30 1 20 40000 4000019 8:00-9:00 1 20 15,000 1500020 8:00-9:00 1 20 62,514 6251421 8:00-9:00 2 30+30 176,250 17625022 8:00-9:00 2 30+30 176,250 20,250 19650023 8:00-9:00 2 30+30 20,250 30,000 5025024 8:30-9:00 1 30 20,250 15,000 35250

9:00-9:30 1 30 80000 8000025 8:00-8:30 1 30 88,125 15,000 103125

9:00-9:30 1 30 80000 20,250 10025026 8:00-9:00 1 30 80000 20,250 10025027 9:00-9:30 1 30 20,250 15,000 3525028 11:00-11:30 1 30 30000 10,800 4080029 8:00-9:00 1 30 20,250 15,000 3525030 7:00-8:00 1 30 20,250 10837531 8:00-9:00 1 30 88,125 80000 168125

TOTAL

COST       1597,542 720000  335250 255000  290779241

PRINT MEDIA BREAK UP FOR JANUARY

s.no

publication

edition size status position Day sun mon tue wed thu fri sat sun mon tue wed thu fri sat sun

Date 1 2 3 4 5 6 7 8 9 10 11 12 13 14 151 DAWN K/L/I 27X4 Color Pg2 L2 NEWS K/L/I 27X4 Color Pg23 DAWN K/L/I 27X4 Color Pg3 F64 JUNG K/L/I 27X4 B/W Pg2 F55 DAWN K/L/I 27X4 Color Pg4 F26 VISAGE K/L/I Full

pageColor Inside

FrontF3

7 SHE K/L/I/P Full page

Color Inside front

8 MAG K/L/I Full page

Color Inside page

F1 F4

s.no

publication

edition size status position Day mon tue wed thu fri sat sun mon tue wed thu fri sat sun mon

Date 16 17 18 19 20 21 22 23 24 25 26 27 28 29 301 DAWN K/L/I 27X4 Color Pg22 NEWS K/L/I 27X4 Color Pg2 F8 F1

23 DAWN K/L/I 27X4 Color Pg3 F1

44 JUNG K/L/I 27X4 B/W Pg2 F1

05 DAWN K/L/I 27X4 Color Pg4 F9 F1

36 VISAGE K/L/I Full

pageColor Inside

Front7 SHE K/L/I/P Full

pageColor Inside

frontF15

8 MAG K/L/I Full page

Color Inside page

F7 F11

L: LAUNCHF1, F2, F3, F4, F5, F6, F7, F8, F9, F10, F11, F12, F13, F14, F15: FOLLOW UPS

42

TOTAL COSTDAWN: 27 X 4 X 1250 = 135,000 X 6 = 810,000NEWS: 27 X 4 X 510 + 100% = 110,160 X 2 = 220,320JUNG: 27 X 4 X 825X2 = 178200 X 2 = 356400VISAGE: 35,000SHE: 28,000MAG: 16,000 X 4 = 64,000TOTAL COST= 1,513,720

SALES PROMOTION

The reason why the Suave Company decided to use the sales promotion was to act as a support medium to the above-mentioned advertising strategies.Following are the sales promotion objectives

To further enhance the brand image Give a degree of support to the channel members Message reinforcement To help the product attract attention To enhance recognition which will ultimately aid the brand equity To encourage consumers to try the product.

The sales promotion vehicles are consumer oriented and trade oriented. The Suave Company will incorporate both these strategies.

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TRADE ORIENTED

CONSUMER ORIENTED

SAMPLES

CONTESTS

EVENT SPONSOR

DISTRIBUTOR AND RETAILER

CONTEST

TRADE ALLOWANCES

CONSUMER ORIENTED

SAMPLE DISTRIBUTION

The Suave Company, in order to induce trial, recognition and repurchase also decided to give out free sachet worth Rs. 90,000 in the different cities of the country.This would be done in the major strata’s of the country.Karachi: 10,000 sachetsLahore: 10,000 sachetsIslamabad: 6,000 sachetsQuetta: 2,000 sachetsPeshawer: 2,000 sachets

TOTAL SACHETS 30,000 X RS. 3 = RS. 90,000

CONTESTS

The company has also decided to launch some sort of contest which will involve a lot of prizes, the consumer will have to send in the bottle back to the company with there name and NIC number. This sort of a scheme will serve two purposes, the company can recycle the bottles and reduce its costs and it will also develop an image in the minds of the consumers as an organization that is taking measures to protect the deteriorating environment. Approximate cost: Rs. 600,000

EVENT SPONSOR

This is not particularly planned out right now but the company does intend to sponsor concerts and other shows later on.

TRADE ORIENTATION

TRADE ALLOWNCES

DISTRIBUTOR: This would include the giving out of one free 100ml bottles of Opulence at the purchase of every two-dozen of the products.RETAILER: the same is to be given to the retailer.

TRADE CONTESTS

In order to keep the channel members motivated the company has also decided to hold objective contests, for the distributors and retailers.

APPROXIMATE COST: RS: 1000,000

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SWOT ANALYSIS

45

STRENGTHS

1. Professional management2. Strong financial backing3. In-house research facility4. Stringent quality control5. Strong promotional campaign6. Unique selling proposition7. Unique packaging8. Competitive pricing9. Availability of various sizes10.Introducing a wide array of

channels

WEAKNESSES

1. New company dealing with a new market segment

2. Only one product that is being offered currently

3. Lack of brand recognition4. Possibility of conflicts between

channel members5. Confusion in the mind of the

consumer

OPPORTUNITES

1. The company can enhance its product portfolio

2. The company can also tap the rural market

3. Technological advancements can allow the company to diversify

4. Placement of the product provides great opportunities

5. Possibility of improvement in the economy.

THREATS

1. Big competitors present on the market

2. Large number of anti-dandruff shampoos available

3. Decrease in the disposable income of the people

4. Unstable economic conditions and increased inflation

5. Possibility of channel conflicts

STRENGTHS

1. Professional management: a major strength of the company is the professional management that is a part of the company. The expertise available in the organization is coming from its parent company.

2. Strong financial backing: the parent company that is Johnson and Johnson acts as a strong financial buffer to the company, through which the Suave company can undertake aggressive promotional and placement strategies that will allow it to compete with huge competitors like Unilever and P&G.

3. In-house research facility: again due to the parent company the research and development department of the company is very strong.

4. Stringent quality control: is being practiced, to bring to the consumer a high quality and value product at nominal pricing.

5. Strong promotional campaign: due to a presence of strong competitors, the company thanks to its strong financial backing will practice an advertising spillover

6. Unique selling proposition: the product allows the consumer to be brand loyal to there choice of shampoo and accordingly get rid of there dandruff problems. The unique binding capabilities of the product allow it to be used with any regular shampoo. Its organic properties further aid in making the hair more shiny and manageable.

7. Unique packaging: the product is packaged to gain immediate consumer attention on the shelves.

8. Competitive pricing: although absolutely unique the product is competitively priced in terms of its competitors, which make it very affordable.

9. Availability of various sizes: different SKUs allow it to be more attractive to the consumer as they can purchase the bottle according to there needs and demands

10. Introducing a wide array of channels: functionality through the various channels that being utilized by the company make the product available to the target market for efficiently and effectively.

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WEAKNESSES

1. New company dealing with a new market segment: this is a relatively new company, which is coming up with a very unique product, which may create suspicion in the mind of the consumer.

2. Only one product that is being offered currently: the company has no intentions of launching any new products at least in the first year of launching Opulence.

3. Lack of brand recognition: the brand equity of head and shoulders is very high the recall in the market is very high in terms of a dandruff shampoo solution and therefore it may take sometime for Opulence to be recognized.

4. Possibility of conflicts between channel members: the company is utilizing a diverse mix of channels, which may result in a lot of conflicts amongst the members.

5. Confusion in the mind of the consumer: the parent company is Johnson & Johnson, which has catered to the baby segment of the market. The consumer might get confused when becoming aware of the new division.

OPPORTUNITIES

1. The company can enhance its product portfolio: like opulence the company has long terms objectives of launching equally unique products. They are a hair re-growth shampoo, an anti-aging soap and a detergent tablet.

2. The company can also tap the rural market: since the company offers very competitive pricing it can always move in to launch its products in the rural market with products made specially to cater to the needs of the rural segment.

3. Technological advancements can allow the company to diversify by opening saloon under its umbrella using all its exclusively produced products which are mostly natural and organic.

4. Placement of the product provides great opportunities to the company in terms of promotion. The company can print its logos and product image on the paper bags of the big retail stores like Agha’s.

5. Possibility of improvement in the economy can lead to an increase in sales and the purchasing power of the consumer. This will have a positive effect on the company and its profit offsets.

47

THREATS

1. Big competitors present on the market: huge competitors like Unilever and P&G are major players in the market, which pose a threat to the company and its product, with there strong R&D departments they may come up with a similar product.

2. Large number of anti-dandruff shampoos available: in the mean time the currently present dandruff shampoos pose a great threat to Opulence.

3. Decrease in the disposable income of the people4. Unstable economic conditions and increased inflation5. Possibility of channel conflicts: Possibility of these conflicts can affect the

effective distribution of the product as conflict may trigger a hindrance in distribution.

48

THE BOSTON CONSULTING GROUP (BCG) APPROACH

Relative Market Share

HIGH LOW

HIGH

Market Growth Rate

LOW

IT WOULD SOON MOVE IN TO THE STAR CATEGORY AND IN THE LONG RUN WILL BECOME A REVENUE GENERATING PRODUCT FOR THE COMPANY

49

Stars

H & SSunsilk

Question Marks

? ? ?OPULENCE

Cash Cows

Dogs

PRODUCT/MARKET OPPORTUNITY MATRIX

THE PRODUCT/MARKET EXPANSION

Existing Products New Products

Existing Markets

New Markets

50

Market Penetration Product DevelopmentOPULENCE

Market Development Diversification

SALES FORECAST

Company’s forecast is Rs.150 millionPrice on which sales forecast is calculated for 100 ml: Rs. 34.1 (Company cost plus mark-up)Price on which sales forecast is calculated for sachet: Rs. 1.86

SALES UNITS FOR 100 ML MONTH YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 January 57,185 80,059 120,088 182,991 285,924 February 57,185 80,059 120,088 182,991 285,924 March 57,185 80,059 120,088 182,991 285,924 April 30,792 43,109 64,663 98,534 153,959 May 30,792 43,109 64,663 98,534 153,959 June 30,792 43,109 64,663 98,534 153,959 July 30,792 43,109 64,663 98,534 153,959 August 30,792 43,109 64,663 98,534 153,959 September 30,792 43,109 64,663 98,534 153,959 October 57,185 80,059 120,088 182,991 285,924 November 57,185 80,059 120,088 182,991 285,924 December 57,185 80,059 120,088 182,991 285,924

527,859 739,003 1,108,504 1,689,150 2,639,296 TOTAL 527,859 739,003 1,108,504 1,689,150 2,639,296

Per month 43,988 61,584 92,375 140,763 219,941 Six Month 263,930 369,502 554,252 844,575 1,319,648 High dandruff months 343,108 480,352 720,528 1,097,948 1,715,542 Low dandruff months 184,751 258,651 387,976 591,203 923,754

527,859 739,003 1,108,504 1,689,150 2,639,296 H D per month 57,185 80,059 120,088 182,991 285,924 L D per month 30,792 43,109 64,663 98,534 153,959

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SALES IN RUPEES FOR 100 MLMONTH YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5January 1,949,999 2,730,000 4,094,999 6,240,002 9,749,999February 1,949,999 2,730,000 4,094,999 6,240,002 9,749,999March 1,949,999 2,730,000 4,094,999 6,240,002 9,749,999April 1,050,000 1,470,000 2,204,999 3,360,001 5,250,000May 1,050,000 1,470,000 2,204,999 3,360,001 5,250,000June 1,050,000 1,470,000 2,204,999 3,360,001 5,250,000July 1,050,000 1,470,000 2,204,999 3,360,001 5,250,000August 1,050,000 1,470,000 2,204,999 3,360,001 5,250,000September 1,050,000 1,470,000 2,204,999 3,360,001 5,250,000October 1,949,999 2,730,000 4,094,999 6,240,002 9,749,999November 1,949,999 2,730,000 4,094,999 6,240,002 9,749,999December 1,949,999 2,730,000 4,094,999 6,240,002 9,749,999

17,999,992 25,200,002 37,799,986 57,600,015 90,000,000TOTAL 527,859 739,003 1,108,504 1,689,150 2,639,296

Per month 43,988 61,584 92,375 140,763 219,941Six Month 263,930 369,502 554,252 844,575 1,319,648High dandruff months 343,108 480,352 720,528 1,097,948 1,715,542Low dandruff months 184,751 258,651 387,976 591,203 923,754

GRAND TOTAL 527,859 739,003 1,108,504 1,689,150 2,639,296H D per month 1,949,999 2,730,000 4,094,999 6,240,002 9,749,999L D per month 1,050,000 1,470,000 2,204,999 3,360,001 5,250,000

52

PROFIT AND LOSS ACCOUNT FOR FIVE YEARS FOR 100 ML

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

SALES 17,999,992 25,200,002 37,799,986 57,600,015 90,000,000COGS 54% of sales price

9719996 13608001 20411992 31104008 48600000

GP on SALES

8279996 11592001 17387994 26496007 414000000

Admin and operating expense 2% of sales

359999 504000 755999 1152000 1800000

Promotional expense 20% of sales

- 5040000 7559990 11520000 18000000

Income before tax

7919997 6048001 9072005 13824007 394200000

Tax 15% 1187999 907200 1360801 2073601 59130000Net income 6731998 5140801 7711204 11,750,406 335,070,000

53

SALES UNITS FOR SACHET MONTH YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 January 698,925 978,495 1,467,742 2,236,559 3,494,624 February 698,925 978,495 1,467,742 2,236,559 3,494,624 March 698,925 978,495 1,467,742 2,236,559 3,494,624 April 376,344 526,882 790,323 1,204,301 1,881,720 May 376,344 526,882 790,323 1,204,301 1,881,720 June 376,344 526,882 790,323 1,204,301 1,881,720 July 376,344 526,882 790,323 1,204,301 1,881,720 August 376,344 526,882 790,323 1,204,301 1,881,720 September 376,344 526,882 790,323 1,204,301 1,881,720 October 698,925 978,495 1,467,742 2,236,559 3,494,624 November 698,925 978,495 1,467,742 2,236,559 3,494,624 December 698,925 978,495 1,467,742 2,236,559 3,494,624

6,451,613 9,032,258 13,548,387 20,645,161 32,258,065 TOTAL 6,451,613 9,032,258 13,548,387 20,645,161 32,258,065

Per month 537,634 752,688 1,129,032 1,720,430 2,688,172 Six Month 3,225,806 4,516,129 6,774,194 10,322,581 16,129,032 High dandruff months 4,193,548 5,870,968 8,806,452 13,419,355 20,967,742 Low dandruff months 2,258,065 3,161,290 4,741,935 7,225,806 11,290,323

6,451,613 9,032,258 13,548,387 20,645,161 32,258,065 H D per month 698,925 978,495 1,467,742 2,236,559 3,494,624 L D per month 376,344 526,882 790,323 1,204,301 1,881,720

SALES IN RUPEES FOR SACHET MONTH YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 January 1,300,000 1,820,000 2,730,000 4,160,000 6,500,000 February 1,300,000 1,820,000 2,730,000 4,160,000 6,500,000

54

March 1,300,000 1,820,000 2,730,000 4,160,000 6,500,000 April 700,000 980,000 1,470,000 2,240,000 3,500,000 May 700,000 980,000 1,470,000 2,240,000 3,500,000 June 700,000 980,000 1,470,000 2,240,000 3,500,000 July 700,000 980,000 1,470,000 2,240,000 3,500,000 August 700,000 980,000 1,470,000 2,240,000 3,500,000 September 700,000 980,000 1,470,000 2,240,000 3,500,000 October 1,300,000 1,820,000 2,730,000 4,160,000 6,500,000 November 1,300,000 1,820,000 2,730,000 4,160,000 6,500,000 December 1,300,000 1,820,000 2,730,000 4,160,000 6,500,000

12,000,000 16,800,000 25,200,000 38,400,000 60,000,000 TOTAL 6,451,613 9,032,258 13,548,387 20,645,161 32,258,065

Per month 537,634 752,688 1,129,032 1,720,430 2,688,172 Six Month 3,225,806 4,516,129 6,774,194 10,322,581 16,129,032 High dandruff months 4,193,548 5,870,968 8,806,452 13,419,355 20,967,742 Low dandruff months 2,258,065 3,161,290 4,741,935 7,225,806 11,290,323

6,451,613 9,032,258 13,548,387 20,645,161 32,258,065 H D per month 1,300,000 1,820,000 2,730,000 4,160,000 6,500,000 L D per month 700,000 980,000 1,470,000 2,240,000 3,500,000

PROFIT AND LOSS ACCOUNT FOR FIVE YEARS FOR 5 ML SACHET

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

SALES 12,000,000 16,800,000 25,200,000 38,400,000 60,000,000

COGS 54% of sales price

6480000 9072000 13608000 20736000 32400000

55

GP on SALES

5520000 7728000 11592000 17664000 27600000

Admin and operating expense 2% of sales

240000 336000 504000 768000 1200000

Promotional expense 20% of sales

- 3360000 5040000 7680000 12000000

Income before tax

5280000 4032000 6048000 9216000 14400000

Tax 15% 792000 604800 907200 1382400 2160000Net income 4488000 3427200 5140800 7833600 12240000

CONCLUSION The present situation of the fast moving consumer goods is complete saturation of the regular product. From soaps to shampoos to detergents the shelves are full of a gazillion products that at times even frustrate the consumer while he/she has to make a choice. Keeping this in mind the Johnson and Johnson Company decided to set up an

56

independent division that would create primary demands for new innovative products in the adult segment of the Pakistani market. Current trends are now moving towards complete and radical innovations in every aspect of the world. Opulence is one such example. The product is an absolute innovation in the anti-dandruff industry where a lot of shampoos are available to deal with the dandruff problems. Usage of such products leaves the hair dry, brittle and dull and sometimes they have no effect on the dandruff. Especially keeping these points in mind Opulence was launched. Its biggest advantage is its binding capabilities with every regular shampoo. It’s an additive concentrate that allows the consumer to be brand loyal to their favorite shampoo and rid themselves of any embarrassing dandruff problems. This launch has also utilized some new channels of distribution.Reviewing the thorough research that has been done in the launch of Opulence creates the perfect product to be launched at a time when it is much needed and required by the targeted segment.

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ANNEXURE 1

Title : Head and Shoulders below the rest By : GuzmanDate : May-1-01 4:37 PM Product Rating: Average Product Rating:    (based on 33 Member Reviews)Pros : Good at curing dandruffCons : Potential problems exist which can ruin the hair for good.

Head & Shoulders Shampoo

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Recommend " Head & Shoulders Shampoo " to a friend?      No : is recommended by 37% of members.

This product may cure your dandruff problem but not always in an acceptable manner. Having suffered a bout of dandruff a few years ago I had a few chats with friends and they recommended Head and Shoulders. Seeing that it was such a uniform recommendation I wandered down to the local Boots and picked up a bottle.

Pursuing my normal regime I used the product every other day in an attempt to clear up the dandruff problem that I was suffering at the time and to be fair it did have a great impact and eventually cleared up the problem. However as a result of using the product my hair suffered severe dryness. I say that it was a result of using the product as it was something I had never suffered to any great degree before. This was rather frustrating as it meant that I had swapped one problem for another.

Because of this I then had to buy yet another product to ensure my hair kept its condition whilst using Head and Shoulders so at the time I was not particularly impressed (At the time there was not a variant for dry or damaged hair that I could switch to).

Purchase Price (INR): Hair Type: Normal hairHair Compatibility: Caused split endsEase of Application: Child's play - Simple and easyDuration of Use: Used for 6 - 12 months

Are Salon Products Really Better? Dec. 1999, Colorado, USA, hair-news.com

You left the salon with a bag of goodies that your stylist swore you could not live without and now you wonder if what they sold you is nothing more than well packaged snake oil.The simple answer is that salon products are for the most part much better than the products sold at your local grocer, but that is only the

59

simple answer to a rather complex question. 1.  What makes salon products better than over the counter products?    Ingredients.  When you examine the ingredient list on a bottle of shampoo, what you see listed first is what there is most of in the bottle and so on until the end of the list which is what there is least of in the bottle.

The first ingredient will frequently be water and the last ingredient is often a dye.  Toward the top of the list you will notice an ingredient such as ammonium laurel sulfate, sodium laurel sulfate, or sodium laureth sulfate.

These are surfactants.  Their purpose is to make water wetter, or to put it differently, to help the cleaning agents lather.  A surfactant can also be a cleaning agent in and of itself.  Salon products should contain gentler surfactants than your store bought shampoo.

You will then see some conditioning agents listed.  Your salon shampoo should contain higher quality protein based conditioners or moisturizing conditioners, thus enabling the conditioner to penetrate deeper into the hair shaft and lock in moisture.  These quality ingredients contribute to the cost of the product and is why they are not typically found in store bought products.

Lastly, a few ingredients are stabilizers and preservatives, but the most important ingredients to keep your eyes on are the surfactants.  We prefer the sodium laureth sulfate.  It is the gentlest of the surfactants but will lather very little which is why most shampoos won't use it.  Consumers believe their hair isn't getting clean unless there are tons of bubbles.  In truth lather has no beneficial affect and contributes little to good cleaning. (Healthy Hair Plus uses sodium laureth sulfate)

To combat salon products taking an ever greater hold on consumer preference.  To the contrary, it is our opinion that the sodium laureth sulfate is infinitely safer than the sodium laurel sulfate which is usually found in the cheaper brands.

2.  Which is the best product line?    Salon products vary in their quality and many product lines were build around only a few exceptional products, with the remainder being only average.  To address this problem it should behoove a salon to carry a good variety of product lines to address the needs of all clients. 

The rest is a matter of consumer preference to aroma, color and packaging.  Our current personal favorites are, Graham Webb Classic, Graham Webb Intensives, Graham Webb Head Games, American Crew, M.O.P., and Dudley's for African American hair, but there are many more good lines.

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 My salon has put me on a line of pure organic products, is that good?     Yes, its great, but unless they actually blended the products right there from fresh ingredients, its also bull hooey.  You simply cannot create a store line without preservatives.  The ingredients would spoil before the product made it onto the shelf. Some over the counter products are just plain bad for your hair.  In our opinion just a few of these are, "Pantene" which leaves heavy deposits on your hair of a silicon like substance that will eventually cause static hair and hair breakage, and we detest all of the non-prescription type "dandruff" shampoos. I know.  I used to be a diehard "Head & Shoulders" user. Hopefully this gave you some insight into the salon product world and all of the traps out there to get your buck

61

ANNEXURE 2PRINT ADS

62

Description Year 1 Year 2 Year 3 Year 4 Year 5

63

Market Share (%) 5 7 10.5 16 25Annual Growth Rate (%) 0 0.4 0.50 0.52 0.56Market Share (Rs in million) 30 42 63 96 150Bottle 60% Rupees 18,000,000 25,200,000 37,800,000 57,600,000 90,000,000Sachet 40% Rupees 12,000,000 16,800,000 25,200,000 38,400,000 60,000,000

Bottle Price 100ml 34.1 34.1 34.1 34.1 34.1Sachet 1.86 1.86 1.86 1.86 1.86

Bottle units 527,859 739,003 1,108,504 1,689,150 2,639,296Sachet units 6,451,613 9,032,258 13,548,387 20,645,161 32,258,065

Total anti-dandruff market is Rs.600 billionCompany’s forecast is Rs.150 millionPrice on which sales forecast is calculated for 100 ml: Rs. 34.1 (Company cost plus mark-up)Price on which sales forecast is calculated for sachet: Rs. 1.86

SALES UNITS FOR 100 ML

64

MONTH YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 January 57,185 80,059 120,088 182,991 285,924 February 57,185 80,059 120,088 182,991 285,924 March 57,185 80,059 120,088 182,991 285,924 April 30,792 43,109 64,663 98,534 153,959 May 30,792 43,109 64,663 98,534 153,959 June 30,792 43,109 64,663 98,534 153,959 July 30,792 43,109 64,663 98,534 153,959 August 30,792 43,109 64,663 98,534 153,959 September 30,792 43,109 64,663 98,534 153,959 October 57,185 80,059 120,088 182,991 285,924 November 57,185 80,059 120,088 182,991 285,924 December 57,185 80,059 120,088 182,991 285,924

527,859 739,003 1,108,504 1,689,150 2,639,296 TOTAL 527,859 739,003 1,108,504 1,689,150 2,639,296

Per month 43,988 61,584 92,375 140,763 219,941 Six Month 263,930 369,502 554,252 844,575 1,319,648 High dandruff months 343,108 480,352 720,528 1,097,948 1,715,542 Low dandruff months 184,751 258,651 387,976 591,203 923,754

527,859 739,003 1,108,504 1,689,150 2,639,296 H D per month 57,185 80,059 120,088 182,991 285,924 L D per month 30,792 43,109 64,663 98,534 153,959

SALES IN RUPEES FOR 100 MLMONTH YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5January 1,949,999 2,730,000 4,094,999 6,240,002 9,749,999February 1,949,999 2,730,000 4,094,999 6,240,002 9,749,999March 1,949,999 2,730,000 4,094,999 6,240,002 9,749,999April 1,050,000 1,470,000 2,204,999 3,360,001 5,250,000

65

May 1,050,000 1,470,000 2,204,999 3,360,001 5,250,000June 1,050,000 1,470,000 2,204,999 3,360,001 5,250,000July 1,050,000 1,470,000 2,204,999 3,360,001 5,250,000August 1,050,000 1,470,000 2,204,999 3,360,001 5,250,000September 1,050,000 1,470,000 2,204,999 3,360,001 5,250,000October 1,949,999 2,730,000 4,094,999 6,240,002 9,749,999November 1,949,999 2,730,000 4,094,999 6,240,002 9,749,999December 1,949,999 2,730,000 4,094,999 6,240,002 9,749,999

17,999,992 25,200,002 37,799,986 57,600,015 90,000,000TOTAL 527,859 739,003 1,108,504 1,689,150 2,639,296

Per month 43,988 61,584 92,375 140,763 219,941Six Month 263,930 369,502 554,252 844,575 1,319,648High dandruff months 343,108 480,352 720,528 1,097,948 1,715,542Low dandruff months 184,751 258,651 387,976 591,203 923,754

GRAND TOTAL 527,859 739,003 1,108,504 1,689,150 2,639,296H D per month 1,949,999 2,730,000 4,094,999 6,240,002 9,749,999L D per month 1,050,000 1,470,000 2,204,999 3,360,001 5,250,000

PROFIT AND LOSS ACCOUNT FOR FIVE YEARS FOR 100 ML

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

SALES 17,999,992 25,200,002 37,799,986 57,600,015 90,000,000COGS 54% of sales price

9719996 13608001 20411992 31104008 48600000

GP on SALES

8279996 11592001 17387994 26496007 41400000

Admin and operating expense 2% of

359999 504000 755999 1152000 1800000

66

sales

Promotional expense 20% of sales

- 5040000 7559990 11520000 18000000

Income before tax

7919997 6048001 9072005 13824007 21600000

Tax 15% 1187999 907200 1360801 2073601 3240000Net income 6731998 5140801 7711204 11,750,406 18,360,000

SALES UNITS FOR SACHET MONTH YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 January 698,925 978,495 1,467,742 2,236,559 3,494,624 February 698,925 978,495 1,467,742 2,236,559 3,494,624 March 698,925 978,495 1,467,742 2,236,559 3,494,624 April 376,344 526,882 790,323 1,204,301 1,881,720 May 376,344 526,882 790,323 1,204,301 1,881,720 June 376,344 526,882 790,323 1,204,301 1,881,720 July 376,344 526,882 790,323 1,204,301 1,881,720

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August 376,344 526,882 790,323 1,204,301 1,881,720 September 376,344 526,882 790,323 1,204,301 1,881,720 October 698,925 978,495 1,467,742 2,236,559 3,494,624 November 698,925 978,495 1,467,742 2,236,559 3,494,624 December 698,925 978,495 1,467,742 2,236,559 3,494,624

6,451,613 9,032,258 13,548,387 20,645,161 32,258,065 TOTAL 6,451,613 9,032,258 13,548,387 20,645,161 32,258,065

Per month 537,634 752,688 1,129,032 1,720,430 2,688,172 Six Month 3,225,806 4,516,129 6,774,194 10,322,581 16,129,032 High dandruff months 4,193,548 5,870,968 8,806,452 13,419,355 20,967,742 Low dandruff months 2,258,065 3,161,290 4,741,935 7,225,806 11,290,323

6,451,613 9,032,258 13,548,387 20,645,161 32,258,065 H D per month 698,925 978,495 1,467,742 2,236,559 3,494,624 L D per month 376,344 526,882 790,323 1,204,301 1,881,720

SALES IN RUPEES FOR SACHET MONTH YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 January 1,300,000 1,820,000 2,730,000 4,160,000 6,500,000 February 1,300,000 1,820,000 2,730,000 4,160,000 6,500,000 March 1,300,000 1,820,000 2,730,000 4,160,000 6,500,000 April 700,000 980,000 1,470,000 2,240,000 3,500,000 May 700,000 980,000 1,470,000 2,240,000 3,500,000 June 700,000 980,000 1,470,000 2,240,000 3,500,000 July 700,000 980,000 1,470,000 2,240,000 3,500,000 August 700,000 980,000 1,470,000 2,240,000 3,500,000 September 700,000 980,000 1,470,000 2,240,000 3,500,000 October 1,300,000 1,820,000 2,730,000 4,160,000 6,500,000 November 1,300,000 1,820,000 2,730,000 4,160,000 6,500,000

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December 1,300,000 1,820,000 2,730,000 4,160,000 6,500,000 12,000,000 16,800,000 25,200,000 38,400,000 60,000,000

TOTAL 6,451,613 9,032,258 13,548,387 20,645,161 32,258,065

Per month 537,634 752,688 1,129,032 1,720,430 2,688,172 Six Month 3,225,806 4,516,129 6,774,194 10,322,581 16,129,032 High dandruff months 4,193,548 5,870,968 8,806,452 13,419,355 20,967,742 Low dandruff months 2,258,065 3,161,290 4,741,935 7,225,806 11,290,323

6,451,613 9,032,258 13,548,387 20,645,161 32,258,065 H D per month 1,300,000 1,820,000 2,730,000 4,160,000 6,500,000 L D per month 700,000 980,000 1,470,000 2,240,000 3,500,000

PROFIT AND LOSS ACCOUNT FOR FIVE YEARS FOR 5 ML SACHET

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

SALES 12,000,000 16,800,000 25,200,000 38,400,000 60,000,000

COGS 54% of sales price

6480000 9072000 13608000 20736000 32400000

GP on SALES

5520000 7728000 11592000 17664000 27600000

Admin and operating expense 2% of sales

240000 336000 504000 768000 1200000

Promotional expense 20% of sales

- 3360000 5040000 7680000 12000000

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Income before tax

5280000 4032000 6048000 9216000 14400000

Tax 15% 792000 604800 907200 1382400 2160000Net income 4,488,000 3,427,200 5,140,800 7,833,600 12,240,000

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