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0 SITUATION ANALYSIS “There are no Businesses who started Big” As a new produced product in the country, we realize that an effective Marketing Plan should be presented to the Market to gain success in the industry. Alpha Soap is Bath soap for the entire family; it has a mixture of shampoo that enables the family to use it with their hairs. With its extraordinary characteristic it will give the costumer the convenience they seek in sanitary product. With its economical cost this will give comfort to the consumers’ expenses without sacrificing its quality and attributes.
2.1 MARKETING SUMMARY
Alpha Soap has a characteristic of a NON-DURABLE product these products usually consume in short period of time and should be replaced immediately because of this we expect to serve a mass numbers of customers. This situation is very complex, but to deal with the consumers to be served, we will control the information’s about them to emphasize the needed services of our buyers. TARGET MARKET
Target Market POTENTIAL CUSTOMERS CAGR Wealthy Families Average Families Destitute Families 13.00% Total 10.22% GROWTH 2005 2006 2007 2008 2009 6% 11% 2867 3049 3232 3426 3632 6.01% 1876 2082 2311 2565 2847 10.9% 13% 3444 3892 4393 4970 5616 12095
10.22% 8196 9023 9941 10961
2.1.1 Market Demographic
The summary for ideal customer consists of the following factors: Geographic
We will focus the most on Metro Manila in our Geographic Mean, because this is where most retailers and buyers are located With its population of 11,553,247 (as of august 2007), approximately we will target three fourths (3/4) of its residents. Manila area-617 km2 Cities- 16 Barangay- 11, 0703
Demographic Divide the families into three (3) classes A, B, C:
Families belong to class A (wealthy) - is those who are capable to purchase product that is luxurious and can avail services for their own physical attractiveness. Families belong to class B (average) - purchase product with a reasonable purchasing power. Families belong to class C (destitute) - who deals with products for their own subsist to be satisfied for the day.
Behavioral Factors Want to live in progressive lifestyle Looking forward for the convenience in consuming a product • Economical attitude in obtaining something 2.1.2 Market Needs Alpha soap will provide the families the experience of having 2-in-1 bath soap which they can use not only to protect their skins but also their hairs. With its innovative, creative and unusual characteristic it will provide the following benefits to the customers:
Customer Service- our patrons will be impressed with the level of attention and services they received. These services occur
during the transaction and availability of the product immediately without delay. Convenience- will experience success in bathing without troubling themselves when they run out of shampoo during their bath. Competitive Pricing- we will operate a quality product, allow them to generate fair subscription and benefit.
2.1.3 Market Trends The market trends in soap industry had improved to usual brand soaps into different variety of soaps. Before, most soaps usually posses Germ Fighting Action and extra cleaning formula. Years after, different improve soap is being introduced to the market, example are those whitening soaps, soaps with moisturizer and with extra fragrances. This trend is moving toward ordinary into extraordinary.
Eventually, some companies introduced soaps with combined solution (e.g. germ fighting soap with moisturizer). With this improvement Alpha Soap produced combination of shampoo and bath soap. This change in the market had created an accessible environment for cleaning service provider, whose goal is to develop long-term relationship with customers.
MARKET FORECAST (METRO MANILA)
2.1.4 Market Growth From the year 2005, many soaps industry produces varieties of soap in the market as well as new firms had been created. Soap industry had reached great population, with this result for the next few years’ tight competition from these firms and companies will be generated. The market should be maintained better than the average growth due to the situation of the society. The affect of this situation, people will tend to buy items that are not costly to them.
2.2 SWOT ANALYSIS The following SWOT analysis captures the key Strengths and Weaknesses within the company and describes the opportunities and threats that face by the Alpha Soaps.
Strengths • • • • Strong relationship with the dealers and business organization in promoting the product Competitive price Easy to be recognized with its unique design base on the customers preferences to obtain their focus in the product An enthusiastic company with a strong infectious leadership
Weaknesses • • Inherent time lag when building goodwill and trust Difficulty on establishing brand equity as a starting company
Opportunities • • Business model that is easily scalable The possibility to grow the size of the company, so Alpha Soap is spending its time creating and allowing others to deal with administrative details.
Threats • • A slowdown of the economy that will have reduction on individuals discretionary income Artistic Copycats that will be entered to the market and mimic Alpha Soaps idea.
2.3 COMPETITION AND BUYING PATTERN Competitions are present in the market where buyers and sellers meet to act and to serve the needs of the society as well as those individual market participants. Alpha Soap compete with other brand of soaps like Safeguard, Zest, Greencross and other low price soaps item that the customers usually purchase. With this, Alpha soap perform a Workable Competition, this kind of Competition not as great as “perfect competition” can provide the firm from having some power to influence the market price and condition. To make sure that the Competition of Alpha Soap to other market is successful it will focus on the result comparing to what is supposed to happen under the theoretical idea of the competition. Competition may take the following forms: • • Large companies manufactured a scale of same purpose item and distribute it nationwide Consumer usually had a hard time exchanging and trying new introduced product because of their trusted brands.
2.4 SERVICES Alpha Soap helps the industry through obtaining good services to certify the physical flow of goods and services from the places that sells it to places where it is used. Although without direct contact with the user of these commodities the customers will discover and meet their needs and preferences to the product. To be successful, Alpha will distinguished it self to other retailers as a natural product and develop strategies for satisfying the need and choices of the consumers group. This strategy will carefully consider this attributes to be a good service provider: • • • Build a quality to which the product will be effective Make certain that the product is available any time To have a price suitable for the customers and
Appeal that can be generated to attract the customer’s interest.
2.5 KEY TO SUCCESS Alpha Soap will attempt to prolong the maturity of its product trough creating successful ideas regarding these processes to make it effective: 1. We will develop the product; design it according to customer’s preferences. 2. Launch the product, with the association of informative advertising and promotion to make customers aware that the new product is available on the market and what its purpose. 3. Quality Work With these factors, it will help the Alpha Soap remain perpetually in the industry.
2.6 CRITICAL ISSUE Through the advancement of our technology, several product regarding in helping our skins and hairs like advance cosmetic products and surgeries are being introduced to the market. Also because of the unstoppable changes in our environment we were exposed to damages that will surely affect the health of our skins and hairs. We are aware about this situation in our society and in the world, that these kinds of product and services are luxurious to us. This public dissatisfaction in these kinds of services and products led to reduction of its sales. With the help of Alpha Soap it will prevent the exposure and damages that causes by the environment by protecting our skins and hair that will reduce the problems in this matters. We can guarantee that without shampoo this won’t damage your hair and no longer need services that are costly to us.
3.0 MARKETING STRATEGY Advertising, Personal (face-to-face) or Direct Selling, Sales Promotion and Relationship with business organization in promoting and selling products are the primary method used by the Alpha Soap in strategies its product.
ADVERTISING- this will make the customers aware of the products special features, low price and benefits. This will also create an image to the customers not only for the functional characteristic of the product but also to identify the associate concept of the brand. DIRECT SELLING- this will focus with particular customer at a time. Though this could be an expensive type of promotion, it also makes an effective opportunity in advancing the product. With the help of the salesman’s they will give detailed explanation, customized application and careful negotiation over prices that will make sure that the customers will persuade to use the selling product. SALES PROMOTION- with the help of Advertising and Direct Selling, Sales Promotion will provide incentives such as gifts or extra product benefit that will encourage an effective way of selling the product
3.1 MISSION Alpha soaps mission is to provide the customer with an economical product with the quality that they seek. We exist to attract and maintain customer to treasure their trust and reliance. With a strict adherence to this operation, we are confident that it will go on perfectly and our assistance will surpass the expectation of our buyers.
3.2 MARKETING OBJECTIVE • • • Increase customers in every year each sectors Maintain steady growth each month Increase the amount of sales relative to marketing expenses steadily every quarter
3.3 Financial Objective • • • Increase in profitability Increase the product sold every month Increase in sales enough to warrant the living and additional people to take on the production and other services to allow the company on its works
3.4 Target Market The market will be divided in three (3) main groups. These three distinct family groups of customers are:
Family A (wealthy) - this group are those family who are able to buy product that is costly to them. This people are interested in the result of the product in their own attractiveness when they use it. They enjoy spending their money for their own appearance. Family B (average) - this group are those families who are buying product for reasonable purposes, though they can buy luxurious item they tend to buy what is needed. They involve the whole family before deciding what to buy for their own good.
Families C (destitute) – this group are those families who buy cheap product for economical purposes. This group considers several expenses first and exert great amount of effort in buying product. They are those families who needed to consider their survival before spending too much.
3.5 Positioning Alpha Soap will position itself as an economical, suitable simple cleansing material. Alpha will influence its market competition and scheme to achieved its desired positioning • Alpha Soap will have an astonishing result that the customers unexpectedly experience in which the customer will remain loyal to the product. Although market is crowded by different bath soap. Alpha will have differentiating features that will let it stand out. With its finest quality and ingredients and affordable substances it will allow the customer spend within their means.
3.6 Strategy Pyramids The single objective of Alpha Soap is to serve its people with convenient useful and suitable product. To do this, our Marketing Strategy involves customers awareness regarding to the product offering, develop customers trust and work toward building customers loyalty that will significantly reduce the customers acquisition cost. Alpha will communicate the message that it offers in variety of ways: • • • • • Printed materials that is widely distributed Advertisement to which the customer will know the information and the benefits of the product Salesman’s that will give detailed explanation and careful negotiation to build trust and loyalty with the customers Established a good leadership among succeeding brand of soaps and Create a good comparisons among the consumers
3.7 MARKETING MIX Alpha Soap will be distributed along with these factors: • • Competitive Price Marketing Campaign
Promoting the product with the use of Advertising, personal (face-to-face) or direct selling and with the relationship with organizations promoting and selling products.
RIGHT PRODUCT IN THE MARKET Alpha Soap will help the customer/retailers/people to lessen their expenses in purchasing sanitary products SELLS PRODUCT IN THE RIGHT PRICE With its competitive price Alpha Soap will be sold without sacrificing its quality and attributes. ENSURE PROMOTION IS RIGHT We can guarantee great promotion of the product by establishing competent strategies and procedures in selling the product.
3.8 MARKETING RESEARCH The informal Market research begins when Alpha Soap observe attentively in the current situation in the market. It begins when it monitors people buying distinct product with same purpose “cleaning and sanitation”. As a result we develop a product having two different characteristic, attributes and features into one inexpensive, excellent and simple product and the introduction of Alpha Soaps begin. While working on initial business plan, Alpha soap focuses on groups of people to determine their preferences in having sanitary product. Topics focus on the following: • • • • How price sensitive customers are What services they valued the most What benefit they seek in purchasing sanitary product Why they want to purchase 2-in-1 product in the market
This group provided useful insight to be use to determine the needed options of the market on achieving and doing a product. With their feedbacks and information Alpha Soap collected this data to strengthen the Alpha Soap’s Business and Marketing plan.
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