soul marketing plan

8/8/2019 Soul Marketing Plan

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Presented By

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EXECUTIVE SUMMARY...

The purpose of the report was to submit a marketing plan for a new product that is to be apocketsize perfume named as soul. We are in the business of fashion since 1992 and

our product line includes worlds best fragrances, cosmetics and jewelry. We believe in

innovations and style. Now we are planning to launch a unique product that will be oneof its kinds to be introduced in Pakistan. This report contains a complete marketing plan

to launch that product.

SOUL is a pocketsize perfume with unforgettable fragrance, beautifully presented in

different shapes of unbreakable bottles. The unique feature of this product is that userdoesnt have to apply it every time. Rather it will automatically give a fresh smell round a

clock. Users just have to keep it with them. Moreover this product is unique in the sense

that it will be available in lovely shapes so that it could be used as a pendant or a keychain. This product will be available in three different fragrances, I-e Dusk (strong), Mist

(moderate) and Woods (light), 2ml in volume.

There were many reasons for choosing this product. One is that we did not face any

specific problem throughout our marketing survey, which is very unusual. Therefore our

expectations are high. We have targeted all loving and fashion cautious people of both

gender, belongs to any social class.

We will initially launch our product in Karachi, a famous city, to see the public response.

Itll come under question mark at introduction stage as the growth will be high and

market share will be low at that phase. Lot of cash would be required to hold the marketshare but we could expect from research analysis that it will soon build into star.

I expect this report to deliver the value information and along with this I look forward to

have those precious comments of yours on this meager effort of mine in writing a

marketing plan.

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INTRODUCTION

Founded in 1992 in Pakistan, ESSENCE Co. has grown over 10 years of business

establishing itself as one of the leaders in fashion business covering product range offragrances, cosmetics and jewelry.

We at Essence handle marketing and administration, with offices in various cities. Puttingtogether state-of-the-art technology by the creative staff and advanced innovations, the

company creates made-in-Pakistan products characterized by an unbeatable quality/price

ratio.

We believe in continuous innovation and improvement to compete in a challenging

market. We have developed many creative concepts for our wide range of products. Our

know-how and the excellent qualifications of our technicians, help us in anticipating and

understanding the market trends and ideas of our customers.

Our customers are our asset, thats why we strongly believe in maintaining outstandingcustomer service, fine quality product and our commitment to give style. Customer

service is and always will be number one priority. Therefore treating customers with the

utmost courtesy and respect they deserve.

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MISSION STATEMENT

We are in the fashion business providing fresh fragrances, cosmetics and elegant jewelry

to our valuable customers. We guarantee value for money. Our products are fresh, young

and romantic meant for all fun loving and fashion cautious individuals. Our people areour assets. We work as a team geared towards delivering the best to our customers.

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VISION STATEMENT

We provide the best fragrances worldwide and enable people to feel fresh, smart andconfident about them selves.

UNIQUE SELLING PROPOSITION

Today people are more conscious about themselves as the world is moving towardscompetition. They want style, they want choice, they want something unique, something

different that attract people and above all they need convenience, ease

Yes! The above statement is correct. With increasing competition where each day new

products are introducing, businesses cant live without USP or something unique abouttheir product. What we are going to introduce is not just a pocket perfume but something

more.

Like traditional perfumes or body sprays consumers dont have to apply it again andagain. Just keep it with you and a fresh cool fragrance is always there where you are.

Moreover it will be available in beautiful shapes like heart, bullet, ball and you can use itas a pendant or make it a key chain or keep it in the pocket, purse or wallet thus providing

a more value for money.

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SWOT ANALYSIS

STRENGTHS:

High quality product at a low prize (quality/value perspective)

A unique product -- fragrance in the shape of jewelry

Easily affordable by consumers

Easy availability

Easy to carry as it is pocket size

No gender restriction with respect to the use of the product

Durable product due to the packing Diversified product offering with respect to fragrance

Leak proof unbreakable container

Beautifully designed attractive shapes

Unforgettable fragrances

WEAKNESSES:

Low awareness

Short life as the size is small

Limited product line

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OPPORTUNITIES:

Company can extend their product line by introducing new products in the samecategory

By implementing a pull strategy, brand name can be created

The increasing population of the country presents a ready and growing market for this

economy

There is an increasing trend among people to try new and unique products

Changing social values also present a host of opportunities for the product and hence

resulting in changing buying patterns of consumers

There are for greater number of media channels and programs today through which

the product can be advertised effectively

The presence of a large export market is also an opportunity With increasing literacy levels and media consciousness there is a growing demand

for quality product can be advertised effectively.

The presence of a large export market can also an opportunities.

There is a growing demand for quality products.

The market is dynamic.

Multiple distribution channels can be used.

THREATS:

Imposition of 16% GST by government and inconsistent politics may result inincrements of product prices hence decreasing the demand.

The biggest threats are from fake and smuggled items being offered and hence

increment in competition.

A lack of initiative by retailers might be observed

The same fragrance may feed up people.

Competitors may copy our product and hence competition may arise.

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MARKETING OBJECTIVES

To provide the best quality products to the consumers in order to create brand loyalty.

To obtained a 15% sales growth in the next three years

To expand our product offerings to other major cities i.e. Lahore and Islamabad

within next 1 year.

To provide customer satisfaction at its best.

To create an image of the product coinciding with the identity.

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MARKET SEGMENTATIONMarket segmentation is the process of dividing a market into various segments.Segmentation is carried in accordance with geographic, demographic, psychographic and

behavioral variables. Our study of market segmentation is as follow.

Geographic segmentation

Geographic segmentations call for dividing the market into difference geographical

units. We have decided to initially market our product in Karachi. We will offer ournew product in Lahore and Islamabad in the near future.

Demographic segmentation

Demographic segmentation calls for dividing the market into groups based on:

- Age: 13 years and above

- Gender: unisex

- Income: Rs. 10,000 p.m. and above.

Psychographic segmentation

Psychographic segmentation calls for dividing the market into groups such as,

- Social Class: we are basically targeting lower and middle class this product is

for the upper class as well.

- Life Style: all fragrance lovers/addicts

- Personality: fun-loving people.

Behavioral Segmentation

Behavioral segmentation calls for dividing a market into groups on consumersknowledge, attitude on a response towards products. The variable related to ourproduct is as follows.

- Activities: sports, socializing, partying, studying, shopping.

- Interests: recreation, fashion, opposite sex, traveling.

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- Opinions: about them selves, about social issues, substitute products.

MARKET SEGMENTATION STRATEGY

We are following an undifferentiated strategy as we offering our product to all the socialclasses and following a mass marketing approach.

Undifferentiated Strategy

TARGET MARKET

People of all ages, belonging to any social class and possessing whatever gender.

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Marketingmix

Lower class

Middle class

Upper class


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PRODUCT POSITIONING

The secret of feeling cool and fresh

This positioning statement stresses the fact that this product will give the consumer afeeling of freshness and coolness it also gives a view that this feeling will last on and on.

We are positioning our product on the bases of:

Product: New fragrance with completely new design and features Image: The company has image in the market and on the basis of which we can

create brand name of this product that would be SOUL

MARKETING MIX

PRODUCT

CORE PRODUCT

Soul is the first of its kind product. It is a pocket size perfume containing the most

appealing fragrance. It come in the category of consumer products because consumer

purchase it for their own personal use. It is a convenience product. It gives the

feelings of freshness.

ACTUAL PRODUCT

- Size: 2 inches

- Volume: 5 ml

- Shapes: bullet/ heart/ round

- Odour: dusk (strong); mist (moderate) & wood (light).

AUGMENTED PRODUCT

Apart from an excellent quality product, soul is augmented with free testing at various

consumers stores. This is being done in order to attract the target market and

consequently people who are not targeted will also end up buying the product, as theywill be attracted to the augment attached to the product.

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PRICE

PRICING STRATEGY:

We are using market penetration strategy as our product offering is based on the mass

marketing concept in order to make it easily affordable. In this way we will penetratethe market by using a pull strategy. We will increase our total revenue by selling

more units at a low per unit selling price.

PRICE:

(Rupees)

Retail price exclusive sales tax 105.00Sales tax @ 16% 16.80

Consumer price 121.80

Selling price 122/-

PLACEMENT

CHANNELS:

We will use indirect channels to perform functions related to buying or selling the

product to make it available to the final user.

DISTRIBUTION NETWORK:

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The distribution channel consist of distributes and retail which will act as middlemen

in between the manufacturer and the consumers/customers. The product will bemanufactured at the Karachi factory situated at S.I.T.E. from there; the finished

product will be transferred to the factory center ware house. The distributors will

place their orders for distribution to various retailers in the city.

These retailers consist of chemist shape super market, general stores, utility stores,

cosmetics stores and other potential markets from here the product will reach the finalconsumer. The main idea behind using an effective distribution network is to make

the product accessible to the consumer conveniently.

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Distributors

Retailers

Consumers/customers

Manufacturer


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PROMOTION

We will pull strategy. We will advertised and promote our product via print andelectronic media. As we will provide free testers at different retail outlets in order to

increase the demand for the product.

Print Media:

Advertising:

As the product is being produced for the first time in the market, advertising will bethe only source for building primary demand. Advertising campaign through print

media like newspaper, magazines and brochures will launch for introducing andproduct and to create awareness.

Posters and bunting will be provided to the distributions and to the retail outlets.

Signboard will also be used.

Electronic Media:

Website:

A web site containing information and a free sample ordering form (online) will be placed.

The free sample will be available for the consumers of Karachi only.

The URL of the site will be ---- www.soul.com

Advertising:

We will advertise our product on PTV, ARY, GEO, and Indus vision and will

mention that this product is available in Karachi only. We will advertise on primetimeso that we can reach our target audience as much as possible. Besides TV, we will

also advertise on F.M 89; F.M 91; FM 96 and FM 106.20.

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GROWTH STRATEGY

Companies need growth if they are to compete more effectively, satisfy stakeholders, andattract top talent. Marketing has the main responsibility for achieving profitable growth

for the company. One useful device for identifying growth opportunities is product-

market expansion grid, shown below:

From the above grid we can see that our product comes under Product Development area

as we are launching a new product to current market.

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New

products

Existing

products

Existing

markets

New

market

Market

PenetrationProduct

Development

Market

development Diversification

Our

product lies

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PRODUCT LIFE CYCLE

At the time of launch sales would be zero without any profit because of heavy expensesof product introduction. But the product is expected to grow as our company has image in

the market and we have got a positive response from people during survey. The expectedproduct life cycle is shown below:

0

Sales and Profit over the Products Life

PRODUCT COSTING

There are various costs that are related to any product being developed and these costs

must be kept a close eye on so that doesnt exceed revenues.

Description Cost per unit (2ml)

(Rs.)

Material 40.00

Labor 35.00

Applied factory overhead 15.00

Variable cost per bottle 90.00

Fixed cost per unit 5.00

Total cost per unit 95.00

Profit per unit 10.00

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Losses--

Investment

Sales and

profits

Profits

DeclineMaturit

Growth

Sales

Product

developmentstage

Introduction


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Selling price per unit

(excluding of GST)

105.00

BREAK EVEN ANALYSIS

Break even analysis is a cost oriented pricing approach and is also called target profit

pricing.

The company tries to determine the price at which it will break even or make the targetprofit it is seeking.

The formula applied to arrive at the breakeven point is:

B.E. units = Fixed Cost

P - VP = Selling price per unit.

V = Variable cost per unit.

The total fixed cost = Rs. 900,000/-

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B.E. units = 2,700,000

122-95

B.E units = 100,000 units

This shows the volume of sales where the total revenues are equal to total costs and the

firm is incurring no profits.

ACTION PLAN

Marketing strategy should be turned into specific action programs that indicate what will

be done? When it will be done? Who is responsible for doing it? And how much will it

cost?

Action plan shows when activities will be started, reviewed and completed. We have

decided to launch the product in one-year time (approx.). Before that we have thefollowing things to be done.

Plant Location.

The factory shall be rented in the vicinity of site Karachi. It will be opened in a 500sq.

Yard area at first and then expended in the future.

Machinery and Equipment

Orders will place for the import of the machinery from India required for the productionof the product and other equipment like generators etc will be leased locally.

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Registration:

All the legal requirements of formation of the factory and start of production shall be

finalized within 3 months.

Production:

Production will start in the month of March-2009.

Advertising Campaign:

We will use the previously mentioned electronic and print media for advertising. All their

campaigns will start in the end of April 2009. The start of the construction of web site

will start in the month of March 2009.

Availability Of Product In The Market.

This product will be available in the month of June 2009.

WORK PLAN:

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Details Dates/allocated days

Project Assignment 1st February, 2009

Pilot Survey 2 days

Debugging and Finalizing of Questionnaire 3 days Development of Survey plan 2 days

Actual Survey 7 days

Analysis of Data 3 days

Finalizing the Data 2 days

Feeding the Data into the Computer 3 days

Report Writing 7 days

Proof Reading 1 days

Submission Date 7th May, 2009

CONCLUSION

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We studied all the conditions that would be essential for the introduction and production

of SOUL in Karachi. Based on a survey analysis and the product launching strategies we

conclude that the product is preferable in fast moving life of Karachi. There is a greatmarket for Soul as the population is increasing and people are becoming more attracted

towards quality/value offerings. The market has been segmented in accordance with the

requirements and marketing strategies have been developed in order to accomplish themarketing objectives. In the light of the previously discussed information, We conclude

that our product will prove feasible in the Karachi market and will provide a platform for

the company to earn revenues.

QUESTIONNAIRE ANALYSIS

We selected the working class, upper class and lower class as one potential market. Toget the feed back about the idea we have conducted a survey over 100 people from

different organization and places. We collected the data from this sample through

question naives.

This is a very new product to be introduced for the first time in Pakistan and the people

have shown an optimistic response about the product.

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QUESTIONNAIRE

Q1 Do you use any sort of perfume and fragrance?

Yes No

Q2 Which of the following do you like?Deodorant Roll-in baby-oil

Cologne baby-splashes

Q3 What are the basic features considered by you while buying a fragrance?

High quality price easy available

Others (please specify)

Q4 What intensity of fragrance would you prefer?

Light strong moderate

Q5 What quantity would you prefer in a pocketsize perfume with respect to the given

price range?

2ml (rs-20-30) 6ml (rs-30-40)

8ml (rs-40-50) 10ml (50-70)

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Q6 What type of packing would you prefer for this product?

Glass bottle. Plastic bottle. Steel body

Other (please specify)

Q7 What name would you like this product to be called?

Soul lures

Charisma Others (please specify)

Q.8 please specify any other thing that you consider will help add value to this

product.

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soul marketing plan

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