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The purpose of the report was to submit a marketing plan for a new product that is to be a pocketsize perfume named as “soul”. We are in the business of fashion since 1992 and our product line includes world’s best fragrances, cosmetics and jewelry. We believe in innovations and style. Now we are planning to launch a unique product that will be one of 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 user doesn’t 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 key chain. 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. It’ll 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 market share 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.
Therefore treating customers with the utmost courtesy and respect they deserve.3 INTRODUCTION… Founded in 1992 in Pakistan. Our customers are our asset. . Putting together state-of-the-art technology by the creative staff and advanced innovations. fine quality product and our commitment to give style. Customer service is and always will be number one priority. Our know-how and the excellent qualifications of our technicians. with offices in various cities. the company creates made-in-Pakistan products characterized by an unbeatable quality/price ratio. help us in anticipating and understanding the market trends and ideas of our customers. We at Essence handle marketing and administration. cosmetics and jewelry. We have developed many creative concepts for our wide range of products. We believe in continuous innovation and improvement to compete in a challenging market. has grown over 10 years of business establishing itself as one of the leaders in fashion business covering product range of fragrances. ESSENCE Co. that’s why we strongly believe in maintaining outstanding customer service.
cosmetics and elegant jewelry to our valuable customers. Our products are fresh.” . Our people are our assets. We guarantee value for money. We work as a team geared towards delivering the best to our customers.4 MISSION STATEMENT… “We are in the fashion business providing fresh fragrances. young and romantic meant for all fun loving and fashion cautious individuals.
smart and confident about them selves. UNIQUE SELLING PROPOSITION… “Today people are more conscious about themselves as the world is moving towards competition. ease…” Yes! The above statement is correct. Just keep it with you and a fresh cool fragrance is always there where you are. purse or wallet thus providing a more value for money. Moreover it will be available in beautiful shapes like heart. With increasing competition where each day new products are introducing. They want style. they want something unique. What we are going to introduce is not just a pocket perfume but something more. something different that attract people and above all they need convenience.5 VISION STATEMENT… “We provide the best fragrances worldwide and enable people to feel fresh. Like traditional perfumes or body sprays consumers don’t have to apply it again and again. ball and you can use it as a pendant or make it a key chain or keep it in the pocket. they want choice. . businesses can’t live without USP or something unique about their product. bullet.
6 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 .
A lack of initiative by retailers might be observed The same fragrance may feed up people. There is a growing demand for quality products. Multiple distribution channels can be used. The biggest threats are from fake and smuggled items being offered and hence increment in competition.7 OPPORTUNITIES: Company can extend their product line by introducing new products in the same category By implementing a pull strategy. Competitors may copy our product and hence competition may arise. The presence of a large export market can also an opportunities. 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 market is dynamic. THREATS: Imposition of 16% GST by government and inconsistent politics may result in increments of product prices hence decreasing the demand.
8 MARKETING OBJECTIVES… To provide the best quality products to the consumers in order to create brand loyalty. To provide customer satisfaction at it’s best. Lahore and Islamabad within next 1 year. To obtained a 15% sales growth in the next three years To expand our product offerings to other major cities i. .e. To create an image of the product coinciding with the identity.
9 MARKET SEGMENTATION… Market segmentation is the process of dividing a market into various segments. shopping. Segmentation is carried in accordance with geographic. fashion. demographic.000 p. socializing. Activities: sports. . Behavioral Segmentation Behavioral segmentation calls for dividing a market into groups on consumer’s knowledge. Demographic segmentation Demographic segmentation calls for dividing the market into groups based on: Age: 13 years and above Gender: unisex Income: Rs. We have decided to initially market our product in Karachi. 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. The variable related to our product is as follows. We will offer our new product in Lahore and Islamabad in the near future. partying. • Social Class: we are basically targeting lower and middle class this product is for the upper class as well. and above. studying. traveling. 10.m. opposite sex. Psychographic segmentation Psychographic segmentation calls for dividing the market into groups such as. Life Style: all fragrance lovers/addicts Personality: fun-loving people. Interests: recreation. attitude on a response towards products.
10 - Opinions: about them selves. belonging to any social class and possessing whatever gender. . about social issues. MARKET SEGMENTATION STRATEGY… We are following an undifferentiated strategy as we offering our product to all the social classes and following a mass marketing approach. substitute products. Undifferentiated Strategy Lower class Marketing mix Middle class Upper class TARGET MARKET… People of all ages.
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. mist (moderate) & wood (light). . as they will be attracted to the augment attached to the product. It come in the category of consumer products because consumer purchase it for their own personal use. It gives the feelings of freshness. It is a pocket size perfume containing the most appealing fragrance. It is a convenience product. AUGMENTED PRODUCT Apart from an excellent quality product. soul is augmented with free testing at various consumers’ stores.11 PRODUCT POSITIONING… “The secret of feeling cool and fresh…” This positioning statement stresses the fact that this product will give the consumer a feeling of freshness and coolness it also gives a view that this feeling will last on and on. ACTUAL PRODUCT Size: Volume: Shapes: Odour: • 2 inches 5 ml bullet/ heart/ round dusk (strong). 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.
80 121.80 122/- 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. In this way we will penetrate the market by using a pull strategy. We will increase our total revenue by selling more units at a low per unit selling price. • DISTRIBUTION NETWORK: . PRICE: Retail price exclusive sales tax Sales tax @ 16% Consumer price Selling price (Rupees) 105.00 16.12 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.
The distributors will place their orders for distribution to various retailers in the city. utility stores. The product will be manufactured at the Karachi factory situated at S. general stores. the finished product will be transferred to the factory center ware house. cosmetics stores and other potential markets from here the product will reach the final consumer.13 The distribution channel consist of distributes and retail which will act as middlemen in between the manufacturer and the consumers/customers.I. from there.E. The main idea behind using an effective distribution network is to make the product accessible to the consumer conveniently.T. These retailers consist of chemist shape super market. Manufacturer Distributors Retailers Consumers/customers .
Advertising campaign through print media like newspaper. advertising will be the only source for building primary demand. Electronic Media: Website: A web site containing information and a free sample ordering form (online) will be placed. . GEO. The free sample will be available for the consumers of Karachi only. Posters and bunting will be provided to the distributions and to the retail outlets. Print Media: Advertising: As the product is being produced for the first time in the market. magazines and brochures will launch for introducing and product and to create awareness. ARY. FM 96 and FM 106. We will advertise on primetime so that we can reach our target audience as much as possible. we will also advertise on F. We will advertised and promote our product via print and electronic media. and Indus vision and will mention that this product is available in Karachi only. The URL of the site will be ---.com Advertising: We will advertise our product on PTV.www. Besides TV. As we will provide free testers at different retail outlets in order to increase the demand for the product.M 91. F. Signboard will also be used.soul.M 89.20.14 PROMOTION We will pull strategy.
shown below: Existing products New products Our product lies here Existing markets Market Penetration Product Development New market Market development Diversification 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. Marketing has the main responsibility for achieving profitable growth for the company.15 GROWTH STRATEGY… Companies need growth if they are to compete more effectively. satisfy stakeholders. One useful device for identifying growth opportunities is productmarket expansion grid. . and attract top talent.
The expected product life cycle is shown below: Sales and profits Profits Sales 0 Product development stage Introduction Growth Maturit y Decline Losses-Investment Sales and Profit over the Product’s 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 doesn’t exceed revenues. Description Material Labor Applied factory overhead Variable cost per bottle Fixed cost per unit Total cost per unit Profit per unit 40.16 PRODUCT LIFE CYCLE… At the time of launch sales would be zero without any profit because of heavy expenses of product introduction.00 15.00 10.00 35.00 5.00 90.00 95. 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.) .00 Cost per unit (2ml) (Rs.
The total fixed cost = Rs.E.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 target profit it is seeking.000/- . The formula applied to arrive at the breakeven point is: B.17 Selling price per unit (excluding of GST) 105. 900. V = Variable cost per unit. units = Fixed Cost P-V P = Selling price per unit.
.). The factory shall be rented in the vicinity of site Karachi. It will be opened in a 500sq. 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. We have decided to launch the product in one-year time (approx. Before that we have the following things to be done.E.000 122-95 B.18 B. • Plant Location.000 units This shows the volume of sales where the total revenues are equal to total costs and the firm is incurring no profits.700. units = 2.E units = 100. Machinery and Equipment Orders will place for the import of the machinery from India required for the production of the product and other equipment like generators etc will be leased locally. Yard area at first and then expended in the future. reviewed and completed.
• Availability Of Product In The Market. • Production: Production will start in the month of March-2009. • Advertising Campaign: We will use the previously mentioned electronic and print media for advertising. The start of the construction of web site will start in the month of March 2009.19 • Registration: All the legal requirements of formation of the factory and start of production shall be finalized within 3 months. All their campaigns will start in the end of April 2009. WORK PLAN: . This product will be available in the month of June 2009.
2009 CONCLUSION… .20 Details • • • • • • • • • • • Project Assignment Pilot Survey Debugging and Finalizing of Questionnaire Development of Survey plan Actual Survey Analysis of Data Finalizing the Data Feeding the Data into the Computer Report Writing Proof Reading Submission Date Dates/allocated days 1st February. 2009 2 days 3 days 2 days 7 days 3 days 2 days 3 days 7 days 1 days 7th May.
In the light of the previously discussed information. Based on a survey analysis and the product launching strategies we conclude that the product is preferable in fast moving life of Karachi. 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. We collected the data from this sample through question naives. To get the feed back about the idea we have conducted a survey over 100 people from different organization and places. 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. . There is a great market 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 the marketing objectives. upper class and lower class as one potential market.21 We studied all the conditions that would be essential for the introduction and production of SOUL in Karachi.
22 QUESTIONNAIRE Q1 Do you use any sort of perfume and fragrance? Yes Q2 Which of the following do you like? Deodorant Roll-in Cologne Q3 baby-splashes No baby-oil What are the basic features considered by you while buying a fragrance? High quality price easy available Others (please specify) Q4 Q5 What intensity of fragrance would you prefer? Light strong moderate What quantity would you prefer in a pocketsize perfume with respect to the given price range? 2ml (rs-20-30) 8ml (rs-40-50) 6ml (rs-30-40) 10ml (50-70) .
Other (please specify) Plastic bottle.8 please specify any other thing that you consider will help add value to this product. Steel body Q7 What name would you like this product to be called? Soul Charisma lures Others (please specify) Q. .23 Q6 What type of packing would you prefer for this product? Glass bottle.
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