“A COMPREHANSIVE STUDY ON SOAP INDUSTRY TO UPRAISE ZEPHYR BEAUTY SOAP IN THE SOAP MARKET” M.B.A
DEPATMENT OF MANAGEMENT STUDIES
UNDER GUIDENCE OF
FAISAL IQBAL (MBA-FA09-O38) UMER HAYAT (MBA-FA-09-025) SALMAN AYUB PATHAN (MBA-FA-09-035) SHEIKH AAMER ABBAS (MBA-FA-09-054) UMAR ABAID (MBA-FA-09-026)
Countless thanks to ALLAH Almighty for giving us such extraordinary Abilities and making us privileged enough to take part In such activities.
I would like to thank my teacher Mr.Hasnain Bashir for his cooperation and help. He fully supported throughout the class. We express our heartiest gratitude to him. His cooperation made this project a lot much easier.
In our project we have tried to make a comprehensive
Study on the soap industry in Pakistan to upraise the Zephyr Beauty Soap company in the market
This study is done for enhancing the efficiency and effectiveness of the company by understanding the new market opportunities with past market conditions.
In our project report we have told about the soap market, its nature and characteristics, market environment, consumer behavior and techniques and reforms.
Overview– Zephyr Beauty Soap Research & Development Zephyr Care Work Distribution Channel Product Mix SWOT Analysis Competitor Analysis Marketing Mix Market Segmentation Recommendation
We will provide branded products and services of superior quality and value that improve the lives of the world's consumers, now and for generations to come. As a result, consumers will reward us with leadership sales, profit and value creation, allowing our people, our shareholders and the communities in which we live and work to prosper. We show respect for all individuals. The interests of the company and the individual are inseparable. We are strategically focused in our work. Innovation is the cornerstone of our success. We are externally focused. We value personal mastery. We seek to be the best. Mutual interdependency is a way of life.
Our company try to capture the maximum customers in market so the promote their product and provide the product at low price because this is our company initially stage. Our mission is earned the maximum profit by customer satisfactions and diverging values. So our company tries to produce good product according to customer will and limited resource. So our company earning good profit.
ABOUT OUR COMPANY
The firm is situated at P-78 block A, Small industrial States Faisal Abad. Our all expense and industrial charges of new of launching Zephyr Beauty Soap are given blew. We launch this company 3rd March 2010 The detail of our amount and factory expense are given blew
No 1 2 3 4 5 Capital Land Building Machinery Furniture & Fixture
(Amount)Rs 50 Million. 8 Million 5 Million 20 Million 2 Million
Security Expense Marketing Expense (advertisement, distribution etc) Administration Expense Reserve Capital
5 Million 2 Million
2 Million 6 Million
After extensive research and development we have come up with an idea of launching ZEPHYR BEAUTY SOAP.
Sodium Palmitate, Natural Rosin, Glycerine, Water, Sodium Cocoate, Rosemary Extract, Thyme Extract, Pears Fragrance Essence, Coco Beans.
“The new chocolate flavored soap, mmmm good enough to eat, but its for your skin !” The chocolate flavored soap would smell like delicious chocolate but would be highly effective medicated soap trying to cater to the personalities of people who like chocolate.
ZEPHYR Care Glitter is derived from natural herbal extracts which contain vitamins the unique combination between Glitter and bisabolol have moisturizing and soothing effects fequent use will leave your skin feeling soother, fresher and acne free skin.
Sodium Palmate, Coconut Oil, Glycerine, Glitter, EtidronicAcid, Sodium Hydro Sulphite, Frgrance, Tetra Sodium, EDTA Titanium Dioxide Water.Ci19140, NaOH.
The glitter particles will merely be an attraction for the young girls which will turn into soap and not remain as glitter. The glitter flavored soap would be really pretty_ shiny and sparkly but a highly effective medicated soap trying to cater to the personalities of people who like fun things like glitter.
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“The COOL or throughout the ages”
Sodium Palmitate, Natural Rosin, Glycerine, Water, Sodium Cocoate, Rosemary Extract, Thyme Extract, Pears Fragrance Essence, Menthol.
The menthol flavor caters to the tastes of people who like traditional stuff like peppermint. It has been an object, which the entire family consumes regularly and thus this soap too is meant for people of all ages playing any role in a family because you’re certainly never too old for peppermint.
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MARKET GROWTH The overall soap market is growing by 10 % while the antibacterial segment is growing by 7%. Hence, there is a lot of potential in the market for growth and additional brand penetration and brand building.
SWOT ANALYSIS OF ZEPHYR CARE
A SWOT analysis is basically done in order to have a quick evaluation of the factors that affect our product as well as the organization. It looks at positive as well as negative factors that are affecting and the ones that have the potential to affect the organization under consideration. Also it incorporates the external and internal environment of an organization.
Unique Selling Proposition: In comparison to the competitor we are offering more flavors and
premium quality with the same prices.
Brand Name: Clear Hands has its brand name. Its fragrance and its easy name will make it more
famous in its target market.
Ingredients used: The ingredients used are from the nature like Sunflower Oil, Coconut oil, Potassium
hydroxide, distilled water, boric acid, fragrance, etc.
Hygienic Environment: Clear Hands is produced in a hygienic environment, which is necessary part for
the society and to meet the customer’s expectations.
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Excellent for treating skin irritations, cuts/bruises and seasonal applications Quality standards: Clear Hands maintain premium quality and high standards in order to compete
with the competitors providing international level of product (e.g.: Lifebuoy).
Equipped with latest in-house lab: To get the best possible results Clear Hands has the bestequipped lab ensuring the high quality assurance and standards.
Strong distribution network: Clear Hands has a strong n distribution network by a contact with the
dealer to deliver goods on time.
New Product: Though, every new product needs time to settle, however, there definitely is an
uncertainty level of being accepted in the market.
Price fluctuations: The fluctuations in the prices of some of the ingredients may vary price, which may
affect our profits.
More cost due to oil outsourcing: For hygiene purpose we use the finest quality oils which increases its costs because we believe in best quality and not in massive profits. Another weakness can be the resistance by those who have a fear of using medicated products.
They might be allergic or even prone to getting reactions from the medicated products. For
them to change their beliefs and use “Zephyr Care” instead would be a difficult task.
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Rich in Quality and quantity: We provide the best quality and more quantity in comparison to our
Diseases: In Pakistan, a large number of children are also affected by some of fatal disease like diaorrea
every year. It’s been estimated that if everyone washed their hands properly at key times during the day, up to half of all childhood deaths from diseases could be avoided.
Product Variants: with the passage of time we will make it possible to introduce new range in our
Technological Aspect: with the adaption of newer technology we will try to beat the competitors and
try to capture the lion’s share in the market.
Powerful Brand: Leverage the powerful brand equity associated with the Zephyr Brand to make Zephyr Soap an everyday use proposition.
Increase in cost of ingredients: Due to the rise in the oil prices, the profits can decrease. For that we
have planned to make a database of suppliers to keep fluent supply of the raw material in the bad times and the other thing is we do believe in economies of scale so we will try to be best in buying the raw material.
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Competitor launch same product: if a competitor or leader launches the same product with more
quantity Clear Hands has the threat of sharing the market but for that we have planned that with that time of rivalry we can put our prices little bit down to give tough competition to the opponents. Zephyr soap positioning lacks that desired everyday benefit and experience
Well we conclude that “Zephyr Care” has a bright future in the Pakistani consumer market, and the overall project will be beneficial for the company in terms of generating revenues, and holding a healthy market share.
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TYPES OF “ZEPHYR CARE”
Not simply nice to look at but even nice to smell and use! We have identified 4 unusual flavors to market the varied choices of the users. Our product is not the typical everyday medicated soap, it is a medicated soap which is fun to look at and fun to use and it is first of its kind that‟s why it will have an advantage of a first player. If we would have tried coming as the traditional medicated soap we would have incurred quite some serious difficulty trying to convince people that we are better than the rest. When our customers would think „medicated soap from „Zephyr‟ they would think Chocolate, Glitter and Menthol flavored. Most of the medicated soaps in the market smell pretty bad, but our soap gives the most seducing aromas ever, making it quite popular amongst people.
We will use the Pull strategy to attract new customers because there is a demand in market for a soap that should have both features that is beauty plus medicated soap. 1. Market Risk
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To get a product or service to the right person or company, a marketer would firstly segment the market, then target a single segment or series of segments, and finally position within the segment(s). .
Segmentation is essentially the identification of subsets of buyers within a market who share similar needs and who demonstrate similar buyer behavior. The world is made up from billions of buyers with their own sets of needs and behavior. Segmentation aims to match groups of purchasers with the same set of needs and buyer behavior. Such a group is known as a 'segment'.
Segmentation is a form of critical evaluation rather than a prescribed process or system, and hence no two markets are defined and segmented in the same way
There are many ways that a segment can be considered. For example, the auto market could be segmented by: driver age, engine size, model type, cost, and so on. However the more general bases include:
by geography - such as where in the world was the product bought Our product would be customized for Asian skin types. It would be a local product available only in Pakistan, developed especially to work wonders on the Asian skin type.
by psychographics - such as lifestyle or beliefs People with a certain lifestyle would want to buy an expensive medicated soap not every Tom Dick and Harry would do that. Thus our segment if considered psycho graphically would target people whose beliefs and attitudes are shaped by popular culture and they fall prey to what the television says pretty easily.
by socio-cultural factors - such as class
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Class does play a part in the acceptance of such products in your life. People from the upper class and upper middle class would be ready to buy our soap because it is not acceptable to people with a low income to splurge on such luxuries as medicated soap.
by demography - such as age, sex, and so on. Mostly females are conscious about their skin, and males prefer not to use products with the stereotypical ‘beauty’ attached to it. Since its not a beauty soap but a medicated soap hence males would accept the usage of Zephyr Care more readily. The age of our segment is the teenage age group when you encounter so many overwhelming changes that you desperately try out everything and anything which would solve their problem. We would satisfy them and solve their problem so that they would keep on using our product with loyalty.
A company will evaluate each segment based upon potential business success. Opportunities will depend upon factors such as: the potential growth of the segment the state of competitive rivalry within the segment how much profit the segment will deliver how big the segment is how the segment fits with the current direction of the company and its vision.
Targeting is the second stage of the segment, target, positioning process. After the market has been separated into its segments, the marketer will select a segment or series of segments and 'target' it/them. Resources and effort will be targeted at the segment. It's like looking at a dartboard or a shooting target. You see that it has areas with different scores - these are your segments. Aiming the dart or the bullet at a specific scoring area is 'targeting'. After segmenting we will target the demographic Segment.
In demographic segmentation we have divided the market into groups based on the three important demographic variables i.e. age, life cycle stage, and purchasing power.
The following three variables are examples of demographic factors, which we have used in market segmentation:
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Age - Consumer needs and wants change with age. The marketing mix may therefore need to be adapted depending on which age segment or segments are being targeted. We have divided our market into three different age groups 1. Children 2. Youth 3. Elders Our main target will be the youngster in our market as they are more enthusiastic to use beauty and medicated soup. Life-cycle stage - By assimilating this characteristic we have divided the market into different groups based on which stage of life-cycle they were in. the purpose of this segmentation is because the people (families) change the use of soap over their lifetime, as it is also depending upon family buying patterns. Life-cycle stages 1. 2. 3. 4. 5. 6. 7. Bachelor Stage(young, single people not living at home) Newly Married Couples(young, no children) Full Nest I(youngest child under six) Full Nest II(youngest child six or over) Full Nest III(older married couples with dependent children) Full Nest III(older married couples, no children living with them) Full Nest III(older married couples, retired, no children living at home)
According to the usability of medicated soaps our target market segment will be the Bachelor stage, and newly married couples. Purchasing power - According to this characteristic we have divided our market in four basic segments. 1. Modern family housing, higher incomes (upper class) 2. Older housing of intermediate status (Middle class) 3. Poor quality older terraced housing (Lower class) Class does play a part in the acceptance of such products in your life. People from the upper class and upper middle class would be ready to buy our soap because it is not acceptable to people with a low income to indulge on such luxuries as medicated soap. But with our pricing
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strategies we will target the second group i.e. older housing of intermediate status by providing the product to them at the price they really want.
TARGET MARKET FOR “ZEPHYR CARE”
Has this ever happened to you? You've been in the woods for the last twelve hours tromping through the mud and the brush. You're hot and sweaty and in need of a clean up, and you want to pamper yourself with something nice smelling, nice to look at and which would do the job efficiently. It is just this kind of situation that calls for Crystal, the beautiful bar of medicated soap, which smells delicious, which comes up with a perfect solution for every personality. Zephyr Care the face wash in a bar is perfect for:
Kids Teenagers People conscious about their skin People troubled by acne People wanting a trustable soap for their skin People troubled by too many harmful chemicals in the products they use
People looking for a fun soap which would brighten their day
People who want nice smelling medicated soaps
This product is basically targeted at kids and teenagers but people in the entire household can use it. People who are afraid to use medicated soaps because of the chemicals present in them would feel pretty comfortable with the friendly attire of Crystal. It's also a great product for those who have to use a medicated soap because they have blemishes, acne or blackheads, they would treat their unfriendly problems with a soap which looks friendly.
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The ingredients in Crystal undertake a cleansing action that enhances your skin’s natural beauty and maintains its natural moisture. Thus the bar of soap is the comfortable, convenient and safe way of getting your skin clean and protected in a fun different.
We will use the “price skimming” strategy. The practice of ‘price skimming’ involves charging a relatively high price for a short time where a new, innovative, or much-improved product is launched onto a market. The objective is to “skim” off customers who are willing to pay more to have the product sooner; prices are lowered later when demand from the “early adopters” falls. The main objective of employing a price-skimming strategy is, therefore, to benefit from high short-term profits, due to the newness of the product, and from effective market segmentation.
A highly innovative product will be launched; research and development costs are high, as are the costs of introducing the product to the market via promotion, advertising etc. In this case, the practice of price-skimming allows for some return on the set-up costs
Charging initial high prices will allow the firm the luxury of reducing them when the threat of competition arrives. By contrast, a lower initial price would be difficult to increase without risking the loss of sales volume.
One of the most important decisions in marketing is price. This is because price is believed to have impact on sales volumes. If the price is too high and the market is competitive, sales may be correspondingly reduced. The main reason for the importance of price is that it is one of the main variables that determine the profit. The profit per unit is equal to the price less the total cost of producing that unit
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Profit = Price - Cost The retailed price computed for “Zephyr Care” the soap is Rs 40.05. These computations are based on the market study, consultancy from the retailers and the suppliers.
Cost of Soap (1000 soaps) In Rupees Direct Material & Processing Packaging Other Expenses Advertising Margin (30%) GST (18%) Factory Rate (20 %) 28,000.00 14,000.00 5500.00 6900.00 9508.00 7102.24 71010.24
Factory Rate per Liquid Soap bottle
= Rs 71.01 per Soap
Retailers Commission Maximum Retail Price per bottle 180ml (71.01 + 3.99)
10 % Rs75.00
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A distribution channel is defined as: “Elements of the system of delivery of merchandise to customers from the manufacturer or wholesaler, including retailers, brokers, and shipping companies; also includes discussions of store merchandising and cross-merchandising.” The 'distribution system' refers to the entire marketing process, and not just the physical product distribution. It is a set of interdependent groups and individuals concerned with transferring specific goods or services from the original producer or supplier to the final user or consumer. Distribution channels are essentially sets of relationships where the parties involved have to:
Know each other's aims, policies and procedures Be aware of their planning horizons and management styles Be willing to accept tasks as well as impose them on others
The most effective distribution channels are those where the distributor's interests are made to coincide with the producer's interests. Before any commitment is made, the producer needs to be certain of the distributor's business aims, attitudes and customer franchise. It pays to remember that your distributors are customers too, and have the option to buy elsewhere. Distributors may take on some or all of the tasks involved in getting goods or services from the producer's door to the consumer‟s threshold. Transferring part of the company‟s image to the distributor implies that decisions taken by the middleman must be reviewed and should be of a long-term nature.
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Positioning is undoubtedly one of the simplest and most useful tools to marketers. After segmenting a market and then targeting a consumer, you would proceed to position a product within that market. Positioning is all about 'perception'. As perception differs from person to person, so do the results of the positioning map e.g. what you perceive as quality, value for money, etc, is different to my perception. However, there will be similarities. Products or services are 'mapped' together on a 'positioning map'. This allows them to be compared and contrasted in relation to each other. This is the main strength of this tool. Marketers decide upon a competitive position which enables them to distinguish their own products from the offerings of their competition (hence the term 'positioning strategy'). The term 'positioning' refers to the consumer's perception of a product or service in relation to its competitors. You need to ask yourself, what is the position of the product in the mind of the consumer? POSITIONING OUR PRODUCT 1. What position do you currently own? A. Currently our company is one of the leading pharmaceutical companies and any product we launch will automatically have medicated attached to it because that‟s what we do basically. Thus we will not try to tell our consumers what they already know but would stress about the fact that our soap is satisfying to our customers. 2. What position do you want to own? A. We will tell them what they do not know about us. We will tell them that our soap is not just medicated, but its also fun to look at, good to smell and when you use it you get the added benefit of crystal clear skin along with all these qualities.
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3. Whom you have to defeat to own the position you want. A. We have to compete with companies who make medicated soaps and medicated face washes because our bar has the qualities of a face wash in it. The companies who make beauty soaps will also be tough competition because people will need to be convinced to use medicated soaps instead of regular everyday soap products. Other medicated soaps manufacturers who have been in the market before us. 4. Do you have the resources to do it? A. Yes we certainly do have the resources available. We would use a large budget to launch this soap as this is a perfect opportunity for gaining access in the segments of the market not ventured into before; this would in turn increase our market share. 5. Can you persist until you get there? A. Definitely. As no venture, guarantees instant success no matter how good the idea is and how perfectly you implement it. You always encounter some setbacks on the road to acceptance and Zephyr Care Company is ready to face those challenges for whatever time it is necessary. 6. Are your tactics supporting the positioning objective you set?
A. Yes definitely, we have identified a unique positioning strategy from which to launch our soap, since it’s a new position for a medicated soap people might take time to accept it and Zephyr Care Company would devise its plans and strategies accordingly.
iii- Internal Risk
This involves whether with the new strategy the company is facilitating the employee or not. The suppliers will co operates with you and will provide you with raw material at right tome or not. In this there should be coordination between different departments. and this internal risk is very low because Stifle is working for many years and up till now its not having any such problem.
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POLITICAL ANALYSIS Politically there is no much of a problem for the ZEPHYR CARE and will create an impact that will not affect our product ECONOMIC ENVIRONMENT: Basically it refers to factors affecting the buying power of the consumers. In order to launch our product the Zephyr Care Company was well aware of the fact that if they set the price of there product higher than there competitors already in the market then it wont affect our product since Zephyr Care soap is for teenagers in need of getting rid of the hormonal problems at there age. Since our product is going to be the very first product having multi tasks to perform it wont have any problems with its competitor soaps. It’s soap for the teenagers and therefore the price is going to be set not much higher but a bit higher than a normal soap. The risk factor remains that in the near future competitors will try to get to know this urge for teenagers to get free of acne problems and thus not currently do we feel will we have any economic problem. We have the resources to launch a product and we believe P&G being a worldwide successful company does not have any economic problem. SOCIO-CULTURAL The social environment of our country does not change so quickly. It takes ages upon ages to alter the culture of any country and Pakistan is no exception. We are influenced a lot by the television and it plays quite a vital role in many people’s lives; most of us tune in everyday for our favourite shows and it is like an addiction which cannot be cured. It is a vicious never-ending cycle because these are the people which buy the products they fall in love with over the satellite. It is strongly imbedded in our culture to want a beautiful skin, and the definition of beautiful skin has remained the same throughout the ages_ beautiful means clear, crystal clear. Thus we are sure of the fact that we are not in the danger of any threat concerning a radical social or cultural change in Pakistan thus our product would be accepted and used for a very long time to come. 27 | P a g e
The enormous molecular diversity that nature offers is unmatched by other synthetically derived compound libraries. Hence, the Our Company focus in its drug discovery program is primarily targeted on natural product chemistry. In addition to projects with leading pharmacology departments at a number of UK Universities, Our Company supports three natural product projects in India. The overall aim of these projects, based at the University of Gulbarga and Kuvempu, is to screen plant extracts for medicinal activity. Using advanced chromatographic techniques in conjunction with cell based assay systems, leading compounds are isolated for development.
In project planning there are three approaches Skunk work Rugby relay approach Cross functioning
Rugby Relay Approach: we are using the rugby relay approach because in which all the departments are working together in generating and implementing the idea.
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MARKET SHARE Market Share measures the proportion of the total market held by a business, product or brand. The formula which we will follow for calculating Market Share is presented below Market Share (%) = sales of the business, product or brand / total sales in the market By measuring changes in Market we will compare our business directly against our competitors, which will allow us to judge more accurately the success or failure of the businesses marketing strategies
Price Per unit( Rs)
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10% 5% 10% 40%
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Nothing beats an external appearance that says "inside this package is a person as healthy and glowing as the wrapping itself.”
We have chosen a simple packaging for this product yet attractive. A packaging should be able to turn heads but then again it should not be superficial.
Zephyr Beauty Soap
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ZEPHYR CHOCOLATE SOAP
ZEPHYR MENTHOL SOAP
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Zephyr promotes its products in a variety of ways. Zephyr Care will be promoted by using the mediums of television, newspaper and radio. Zephyr Care‟s advertising depends upon the target market i.e. Zephyr Care focuses on teenagers which is why the main focus of advertisements would undoubtedly be teenagers. Teenagers with wonderful skin shall model for our product in order to attract the teenage community. A promotion can only be successful if it relates directly to the target market. It is thus imperative for us to use young teenagers who have clear acne free skins to help us launch our product by working for our advertisements. Billboards outside schools, colleges, universities, net cafés and even the tuition centers shall be a good promotional strategy
We have selected IMAN ALI as our brand ambassador
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After developing our product we did its test marketing and gave the sample products to our employees to know its results. We also did test marketing outside the schools, collages, and universities. Result was positive and our product is ready for entering in the market.
Sales forecasting is the process of organizing and analyzing information in a way that makes it possible to estimate what your sales will be.
SALES FORECASTING OF “ZEPHYR CARE”
In order to live in this world of cutthroat competition, everyone tries to work really hard and with full commitment day and night. As, life is becoming more and more busy so everyone finds it very difficult to get some time from the very busy schedules for themselves. Our product “Zephyr Care” is a product, which is very different from the products being provided by the existing producers of soap. Either they focus entirely on a target market of people in need of dry faces or entirely on oily. “Zephyr Care” on the contrary is providing dual benefits at the same time. It erases all problems of teenagers having problems of acne and dark marks on the skin. Given the need of this product, we used qualitative methods to find out how much revenue we would generate from the introduction of “satisfaction”. The primary methods used include: Survey of buyers’ intentions Expert opinion Composite of sales force estimates.
These methods showed that we would generate considerable revenue, since this is a new product in Pakistan, it does not have any direct competition, and there is a great need of it among the consumers in the niche market we are going to target. 34 | P a g e
Zephyr Care’s new product “Zephyr Care” will definitely create a great impact in the environment. “The price our soap is low but high quality as compared to the competitors because we use latest technology and efficient method to production this soap. We have a good distribution channels so we deliver our product to the customers’ writhen a second. So our soap easy available every shops but other soaps are difficult to find in every shops. We produce our product according to the customer will and tastes. Zephyr Care” is a liquid soap, which transports you by the sea and leaves your skin fresh. It also gives teenagers finally a chance to get rid of their acne problems and have a clear fresh skin cheaply by not a face wash, not a cream but by liquid soap. Due to these qualities the people buy our soap more as compare to our competitors. So our company earning a reasonable profit through to “Zephyr soap”
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