Marketing Plan for BIO AMLA

Marketing Plan for Revival &

Repositioning of BIO-AMLA

Submitted to: Sir Rehan Shakoor

Compiled by:

Reema Kataria
Mirza Umer Baig
Shehla Khan
Hafiz Adil Khan

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LETTER OF AUTHORIZATION

Dec,20,2011

Dear readers,

This report has been authorized by Mr. Rehan Shakoor to prepare marketing report on
repositioning Bio Amla shampoo. It is scheduled to be submitted on Dec., 20,2011 as a
course requirement.

The exercise of collecting complete data for this report will help and polish our Skills.

Yours sincerely,

Reema Kataria
Mirza Umer Baig
Shehla Khan
Hafiz Adil Khan

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LETTER OF ACKNOWLEDGEMENT

Dec, 20, 2011

Respected readers,

Thanks to Almighty ALLAH for giving us the strength and endowing us with the
privilege of completing our report on the subject of “Relaunching Bio Amla shampoo”.

Lot of thanks to our Instructor Mr. Rehan Shakoor for his constant support,
encouragement and guidance, without that it would not have been possible to achieve this
task successfully.

Finally thanks to our family, friends, colleagues and course fellows spared their
valuable time to help us and provided the guidance to finally come up with this report. Hope
to seek your continuous assistance and support in future.

Yours sincerely,

Reema Kataria
Mirza Umer Baig
Shehla Khan
Hafiz Adil Khan

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LETTER OF TRANSMITTAL

Dec, 20, 2011.

Mr. Rehan Shakoor,

Course Facilitator,
Iqra university Main campus,
Karachi

Respected Mr. Rehan Shakoor,

Here is the Marketing report you authorized to submit by the end of the Fall semester 2011.
We have re-launched Bio Amla Shampoo. This has been possible due to our group effort.
This report gives us the idea how to re-launch new product and services and what strategies
are fruitful for the organization.

The research has been carried out with full effort to produce the finest result in the making of
this report. Some of the information has been taken from the internet while the rest of the
composition has been done by the group members.

Report is ready for review, if you have any further queries, you can contact us via email:
umerizhar17@hotmail.com

Yours sincerely,

Reema Kataria
Mirza Umer Baig
Shehla Khan
Hafiz Adil Khan

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Table of Contents

I. Executive Summary …………………………………………………………………...03

II. Company Overview ………………………………………………………………….. 04
III. Company Goals ……………………………………………………………………... 05
IV. Company Focus …………………………………………………………………..… 08
V. Bio Amla Shampoo …………………………………….…………….…………..……09
VI. Customer decision process …………………………………………………….……09
VII. Steps in repositioning ……………………………………………………...……......10
VIII. Choosing POPs and PODs ……………………………………….…...……..….…11
IX. POPs & Bio Amla ………………………………………………………….......……...12
X. PODs & Bio Amla …………………………………………………...………………....13
XI. SWOT Analysis…………………………………..………………………..…..………16
XII. Strengths and Weaknesses ……………………………………………..….………16
XIII. Opportunities and threats …………………………………………………..……….16
XIV. Market Segmentation ……………………………………………….…...………….16
XV. Psychographics ………………………………………………………...…….………17
XVI. Market behavioral …………………………………………………….
……………...17
XVII. 4P's Analysis ………………………………………………………....
……………...18
XVIII. Product ………………………………………………………..…………..………...19
XIX. Place …………………………………………………………………………..….…20
XX. Pricing ……………………………………………………………………...…..………
22
XXI. Positioning ………………………………………………………………..…………..23
XXII. Recommendations and Conclusion …………………………………………..…..24

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Executive Summary

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 Marketing Plan for BIO AMLA

Objective

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Company Overview

Company Profile

Bio Amla Hair care products are produced effectively and efficiently under the
supervision of FORVIL COSMETICS Pakistan. Forvil Cosmetics, Pakistan's leading
Manufacturer & Exporter of Herbal Cosmetics products. They have a vast & ever
evolving portfolio comprised on various Hair Skin Care Products, based on our
unique Herbal formulations. With an exposure & experience of 50 grand years in the
industry, Forvil Cosmetics is a name synonymous with Quality & Trust amongst its
millions of consumers all around the world.

Company History

Forvil Cosmetics was established in Pakistan back in 1960 when imported products
were the only option available in Cosmetics products. Forvil Cosmetics were the first
in this field to fill in the empty existing in the market. Owing to high standards in
formulation & consistent quality, Forvil's brands did not take long before they were
not only compared with the imported competition, but in many cases, were preferred
over them. Over the period of time, Forvil Cosmetics has kept on raising the bar from
its own set high Quality Standards and today is the one of most trusted name in the
field of Herbal Cosmetics.

Today Forvil is not alone there are many outside competitions to its Hair Care
Range. The only reason it lacks back is despite of all the changes in this fast moving
world forvil has remained the same.

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Company Goals

To make Forvil Cosmetics a leading cosmetic manufacturing company in Pakistan.

To meet the International Quality Standards by adapting International Quality and
Environmental Management Systems. To expand our operations worldwide.

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Company Focus

 To gain and maintain a market leader's position in the cosmetics market

through high quality and reliable natural products.

 To keep pace with demands of a rapidly changing market through constant

research and development & investment in the training of our human
resources.

 To act as a responsible corporate citizen, taking good care of the environment

& promoting nature as the reliable source of care & cure.

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Bio AMLA SHAMPOO

Bio Amla Shampoo is the flagship brand of Forvil Cosmetics, launched back in 1982.
It has been the most favorite & trusted Herbal. This report is all about
REPOSTIONING BIO AMLA IN PAKISTAN.

Bio Amla faces a number of competitors who are or who have huge brand equity for
example PANTENE, SUNSILK etc. Bio Amla has what it takes to tackle these huge
markets Godzilla. The main problems faced by them are mentioned above. Let's look
in to the history of BIO AMLA.

Number & Types of Customers

Bio Amla servers many customers throughout the world and is looking forward to go
international. The customers targeted by Bio Amla from the beginning are lower-
lowers to middle class which is huge sector of market.

Customers Decision Process

Shampoos are regarded as Fast Moving Consumer Goods (FMCGs)which means

the buyer of Bio Amla shampoos don't think a lot while purchasing it. Yet many
external; factors help in the buyers decision process for example any perception in
the mind of buyer about the product, any motivation through advertisements or any
good or bad effect from buyers past experiences have a Negative or a Positive effect
on buyers decision.

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Reasons for Repositioning "BIO AMLA SHAMPOO” in the Market:

Bio Amla shampoo is the first ever herbal shampoo produced by Pakistan. The level
and status of this product was huge when it first struck the markets of Pakistan,
because the relative competitions in the 1980s were very much invisible. It strode of
with great profits and tons of revenues till the 1990s when suddenly a huge number
of Hair Care products entered the market. Bio Amla in all these years had not
changed one bit, it did not launch any new product line nor did it change the outlook
of its product and it kept on targeting the same two segments.

The new competitors kept on growing so reluctantly that Bio Amla never had a clue
that what hit them. Bio Amla should have taken immediate actions against these
massive firms. Its never too late to try again. Bio Amla has all it needs to cope up
with this situation through these two steps:

 POP (Points of Parity)

 POD (Points of Difference)

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Choosing POPs and PODs:

Points of Parity (POP) are associations that are not necessarily unique to the brand
but may be shared by other brands i.e. where you can at least match the competitors
claimed benefits.
Points of Difference (POD) are Attributes or benefits consumers strongly associate
with a brand, positively evaluate and believe they could not find to the same extent
with a competing brand.

There are three deliverability criteria for POP:

 Feasibility
 Communicability
 Sustainability

There are three consumer desirability criteria for POD:

 Relevance
 Distinctiveness
 Believability

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POPs & Bio AMLA

Feasibility:

Feasibility refers to changing the created perception about BIO AMLA that it is just
used by people of low income. Instead it is a herbal shampoo that is proven to be the
best remedy for people with damaged hairs. This is only possible through the correct
advertisement.

Communicability:

The changing of perception is possible only when the marketers remain in regular
touch with the users of BIO AMLA to notify and rectify what they want and how they
want. This is Communicability.

Sustainability:

After clarifying all the doubts from the customers by the customers of BIO AMLA
comes the step in which the customers created should remain sustained as to no
one leaves the consumption of BIO AMLA. This is possible when Bio Amla drops
down on all of its commitments. They should show Bio Amla as such a strong
shampoo that will work on all hair types and in real it should work because if it
doesn't then one by one customer might slip out of hands of Bio Amla.

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PODs & Bio AMLA

Relevance:

Target customers must find the PODs relevant to the product for example the
advertisements containing BIO AMLA should always be managed delicately and
should deliver the message which the consumer wants to hear. The advertisement
should be all about strong and beautiful hairs and that it is the perfect herbal
shampoo for everyone male female and kids in the house.

Distinctiveness:

The customers must find BIO AMLA distinct and one of a kind from all other
shampoos. That is possible only when they management point out there biggest
strength that this is a unique pre planned high intake herbal solution for hairs. The
recent development of a shampoo named HERBAL ESSENCE in the market is
taking away consumers of Bio Amla but that doesn't means to quit instead they
should take it as a new opening and tackle it willingly.

Believability:

The advertisements and other marketing activities which involve BIO AMLA must be
pin point accurate and then comes the main part. Whatsoever is being delivered in
these marketing activities must be in real for example if the add depicts strong hairs
and in real it doesn't then Bio Amla might loose the trust of its consumers.

Bio Amla has what it takes to be a leading brand in the nation but all it needs is
support and trust which also should be gained by Forvil Cosmetics themselves. If we
see the PRODUCT LIFE CYCLE STAGE of Bio Amla it is clear that it exists on the

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level between GROWTH & MATURITY. Which means it should buckle up and start
taking things seriously
SWOT Analysis:

SWOT Analysis is a strategic planning method used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats involved in a project or in a business
venture. It involves specifying the objective of the business venture or project and
identifying the internal and external factors that are favorable and unfavorable to
achieving that objective.
This analysis will clarify that how well Bio Amla drops down in Pakistan.

Strengths:

 Forvil Cosmetics Bio Amla is one of the largest organizations of Pakistan.

 Company has advanced technology and well skilled professionals.
 The new Bio Amla is a high quality product in terms of hair protection.
 The target market is educated, and belongs to middle to upper class.
 Company's totally owned, systematic distribution network, transparent
communication system.
 Participative management style.
 Very good distribution network all over Pakistan in all major and small cities.

Weaknesses
 Competitor has string promotional activities.
 Imported brands are also available in market.
 Customers are offered better alternatives by the competition.
 Lack of knowledge of the product in the mind consumers.
 Considered as the "Shampoo for the Poor's".
 No creativity.
 Less financial support.

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Opportunities

 Population expanding at a rapid rate.

 Consumers are becoming savvier.
 Current capacity utilization is 60%, which can be further broadened with the
increase in demand.
 Customer base is increasing with effective marketing.
 Baby shampoo is another area where Bio Amla can make huge gains.
 Shampoo plus conditioner is another area where Bio Amla can earn huge
profits.

Threats

 Political and economic factors.

 Partial Government policies.
 High rate of competition.
 Local and Foreign competition.
 Smuggling via Afghan Trade Transit is one of the biggest hurdles faced by Bio
Amla.
 Supplies form Indonesia and Thailand is another important issue.

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MARKET SEGMENTATION FOR BIO AMLA

Segmentation of BIO AMLA is done under many different ways. Geographic,

Demographic, Psychographic, Behavioral segmentation.

Geographic:

Country:
Pakistan

Cities:
Karachi, Lahore, Islamabad, Hyderabad and in all the rest main metropolitan
countries and small towns.

Density:
Urban and Sub urban.

Demographic:

Age:
6 years-65+years

Gender:
Male and Female

Family Life Cycle:

Young, Single; Young, Married, No Children; Young, Married, Children; Young,
Married, Youngest Children over 6 years; Older, Married, No Children under 18
years.

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Income:
Rs. 7,000/= & above

Psychographic:

Social Class:
Upper Lowers, Working Class, Middle Class, Upper Middles and Lower Uppers.

Life Style:
Culture Oriented and Outdoor Oriented.

Personality:
Compulsive and Gregarious.

Behavioral:

Benefits:
Quality, Service and Economy

User Status:
Non User, Ex-user, Potential user and Regular user.

Loyalty Stage:

Medium and Strong

Usage Rate:
Medium user and Heavy user.

Readiness Stage:
Unaware, aware, informed, interested, desirous, intending to buy.

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Strategies:
We are going to adapt product development strategy of Ansoff matrix to reposition
Bio Amla in Pakistan. Because the target market of Bio Amla shampoo perceives it
as of low quality, we will try to change this perception through repositioning Bio Amla
through proper advertising campaign and introducing new packaging.

4 P's ANALYSIS

Product:

Bio Amla's main core product is that of a perfect herbal shampoo. It comes in many
different sizes and shapes for different types of users. This shampoo is the first of its
kind herbal shampoo, it contains different 24 herbs. Bio Amla has been certified a
product through ISO 9001; 2000 and ISO 14000, it also certifies through "American
Quality Standards" when it comes to quality. The shapes and sizes in which Bio
Amla comes are as follows:

The packaging of the product requires urgent attention and needs to be modified on
the prior bases. Along with the packaging the quality of the product should be
improved. Higher quality product will enable BIO AMLA to compete with the leading

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brands of the current market and it will sustain for longer period of time. R&D would
have to participate actively thus can play a significant role in the success or the
failure of the product.

Place:

Bio Amla has a distinction of having the largest distribution network for Shampoo
products in Pakistan. The numbers ranges from 500 distributors covering 250 towns
with a direct coverage of over 100,000 retail outlets.

With an understanding on the nuances of distribution, the company has developed a

unique handling and storage process, which ensures the minimum damage and
expiries. With a dedicated system and logistics process, it achieves a balance
between sales and production. The efficiency of the network is governed by the
Company's Sales Office in Lahore and Liaison Offices in main cities of Pakistan
including Karachi, Rawalpindi, Multan, Sukkur and Hyderabad. The International
Business department is also based in Lahore to look over the exports ranging to
various countries in Asia, Europe & Africa.

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Pricing:

Bio Amla claims to practice value-based pricing in which the customers’ perception
of the product" price provides a starting point for developing the marketing mix of the
product. The research department determines this price usually by using focus
groups. The price of RS 3 for Bio Amla shampoo sachets shows how the price also
reflects a concern to make the purchase more convenient, since the rupee is
detonated in this value.

The primary importance of this value-based pricing is that the product demand will
be much higher if its price is in line with the customers perception of its value. One
crucial concern for value-based pricing is strict management of cost in order to be
able to make a profit at the value-based price. After the initial price is determined,
Bio Amla then uses target costing in order to achieve the required profits. With the
marketing plan now being termed as "Annual Contract" the importance of meeting
the profit margin requirements has increased. Target costing thus provides an

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essential tool to manage cost effectively.

This market consists of many buyers and sellers trading over a range of prices. The
key element is differentiation, which allows the seller to gain market share in contrast
to competitors. Given this market condition, Bio Amla differentiates its products and
also sells them in different price ranges to cover at least a large portion of the
market. Also this makes Bio Amla more sensitive to price changes of competitor's
products.

Positioning:

Bio Amla works on small bases but has a huge stamina to tackle its competitors
through PROMOTIONAL ACTIVITES. The main core Advertising Objectives of Bio
Amla are:
 To increase the usage
 Makes the hair appear clean and shiny
 Imparts a feeling of freshness due to fragrance
 Easy to manage silky and soft hairs
 Unique shampoo for every hair type
 Effectively communicate brand promise

Advertisement Objectives:

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The advertisement of Bio Amla follows the smile approach that is:
S - Simple
M -Memorable
I - Interesting with relative information
L - Linked to Brand
E - Emotionally involved and liked

A product's particular advertising strategy also depends on the level of competition

involved with each product. For example when Pantene and Sunsilk entered the
shampoo market they promoted the shampoo's functional benefits, which greatly
appealed the consumers. Bio Amla seeing this trend changed its advertising strategy
so that their advertisements also promoted the shampoo's functional benefits.

Recommendations and Conclusions:

We recommend that in an order to create the demand of the consumer and boost up
the sales, the company must follow the following steps:
• The company must introduce new flavors of SHAMPOO in the market by
adopting the product development strategy.
• The product should be readily available to the customers and for that it should be
displayed in those shelves which are at eyelevel
• The company should increase their promotional campaigns by adopting both
printed and non-printed media strategies. They should adopt non printed media
campaign strategy because the company’s other products are going well in the
market. They can afford the TV advertisements.
• In printed media, the company can also make advertisements in newspapers,
fliers, magazines, brushier, banners, display cards, billboards.
• They can also give free sampling of their products, so that people

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can get to know about their products.

• They can give incentives to the consumers, like, giving discounts or through
bundling etc.

In today's very competitive marketplace a strategy that insures a consistent

approach to offering your product or service in a way that will outsell the competition
is critical. However, in concert with defining the marketing strategy we must also
have a well-defined methodology for the day to day process of implementing it. It is
of little value to have a strategy if you lack either the resources or the expertise to
implement it.

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