Term paper:

Course: Marketing Management (MKT-201)

Section: 06

Submitted to:
Nurun Naher Popy
Lecturer, Department of Business Administration
East West University

Submitted by:

Group: 06
Product: Dry Shampoo (Elixir)

Date of Submission: March 28, 2020

 Group Details:
Group Number: 06

Group Members:

1 Md. Ehteshamul Haque 2018-2-10-089

2 Siam Farid 2018-2-10-085

3 Gias Uddin Farhad 2018-2-10-165

4 Syeda Nishat Raihana 2018-2-10-182

5 Nabilah Pathan Raniya 2019-1-10-132

6 Abdur Rahman Turan 2018-2-10-210

7 Mahfujur Rahman 2019-1-10-256

 Table of Contents:

 Executive Summary

 Market Description

 Product Review
 Channels and Logistics Review

 Strengths, Weaknesses, Opportunities and Threat

Analysis
 Marketing Strategy

 Positioning

 Product Strategy

 Pricing

 Distribution Strategy

 Marketing Communication Strategy

 Marketing Research

 Budgets

 Conclusion
 Executive Summary:
‘ILK’ company is planning to introduce a new line of starch enhanced dry
shampoo named “ELIXIR”. The commonplace water reliant wet shampoo
market is matured yet the market for starch enhanced dry shampoo is still
growing. The brand slogan is “Build your own elegance”, that indicates to
offer more than its competitors. ELIXIR will target female corporate
employees and female students of college and universities.
The fundamental marketing objective is to gain biannual sales of 40 lakh
Tk. ILK company expects to sell more than roughly 8510 units semi-
annually and break even in the final quarter of the year.
 Market Description:
Dry shampoos are found in two types – powder form and spray form. The spray form
segment accounted for the largest share of 62.1% in 2018. The segment is driven by its
property to apply the product to hair roots. The product also helps to add content and
volume to the hair and eliminate remainder build up scalp. On the other hand, increase in
demand for waterless products, along with natural ingredients such as charcoal content,
is likely to drive the segment over the forecast period. Powder form is assumed to show
the fastest compound annual growth rate of 8.3% from 2019 to 2025. Rising demand for
this form due to its aerosol free content is anticipated to encourage the segment growth
in dry shampoo market. This form type is appealing to consumers that more concerned
about the reaction of chemicals to hair. Powder mixes well with hair and scalp and
provides even aliment to every part of the head than other forms such as spray and foam.
Globally female consumers hold the largest share of 58.1% among the dry shampoo
consumers.

Photo: Diverse dry shampoo brands for all types of hair

 Product Review:

‘The ILK’ new line of starch enhanced dry shampoo offers the following features:

Targeted Segment Customer Need Corresponding

Female employees,
Female students of
college and
universities
Health conscious
Features/ Benefits
 Competent substitute  Vitamin C, Zinc
for conventional wet pyrithione
shampoo
 Reliable amount of
starch to maximize
performance
 Optimize nutrition  All natural ingredients
levels
 Higher level of butane,
 Avoid harmful propane, aqua,
chemical menthol

Socially conscious  Support causes that  3Tk donation from

help solve Dhaka’s each selling of the
social problems product

 Formulated for wellness, replenishment and excellent hair.

 Higher vitamin concentration- vitamin levels are 2 times higher than market leading
products with more starch than any other brands.

 All natural- no artificial flavors, colors or preservatives.

 3Tk from each selling of the product will be donated to Dr. Moslem Foundation.

 Single serving size 180 ml, recyclable spray cans.

 0% colorant.
 Channels and Logistics Review:

Competitor Brand Features

Proctor & Gamble Herbal Essences 0% colorant, unique

smell, corn starch
Unilever Tresemme dry  infused with Mineral
shampoo Clay and Citrus and
leaves no visible
residue, sulfate free
Church and Dwight Batiste dry shampoo Sulfate and sodium
free, it can also work
well with Keratin
treated hair

The retailers include:

 Grocery chains: regional grocery chains such as Swapno, Meena bazar,

Agora, Almas and Aarong.
 Pharmacy outlets: Laz pharma, Well-being pharmacy.

As the brand reaches its desired acceptance, channels will expand into
larger grocery chains, convenience stores and unique locations relevant to
the target customer segment.
 SWOT Analysis:
Elixir has several powerful strengths on which to build, but its major weakness is the
scarcity of brand awareness and image. Major opportunities include a growing market
and consumer trends targeted by Elixir’s product traits. Threats include barriers to
entry posed by limited retail space, as well as image issues for the dry shampoo
industry.

Elixir’s Strengths, Weaknesses, Opportunities and Threats:

Strengths Weaknesses

 Superior quality  Lack of brand awareness

 Expertise in alternative shampoo  Limited budget

marketing

 Social responsibility

 Antiestablishment image
Opportunities Threats

 Market growth  Limited shelf space

 Health trends  Environmental issues

 Antiestablishment image  Wrong perception of dry shampoo

Strengths:

Elixir can rely on the following important strengths:

1. Superior quality: Elixir boosts the highest levels of vitamin B-12 which distinguishes
itself from other dry shampoos. It is all natural with no artificial colors and
preservations.

2. Expertise in alternative shampoo marketing: The ILK brand went from nothing to
a successful and rapidly growing shampoo brand with fiercely loyal customers in a
matter of only 3 years. The success was achieved by starting small and focusing on gaps
in the marketplace.

3. Social responsibility: Every customer will have the added benefits of donating in the
Dr. Moslem Foundation. Although the price of Elixir is in line with other dry shampoos,
low promotional costs allow for the substantial charitable donation.

4. Antiestablishment image: The big brands have attentive products and strong
distribution relationships. But they also carry the image of the large, corporate
establishments. ILK has achieved success with the underdog image.

Weaknesses:

1. Lack of brand awareness: As an entirely new brand, elixir will enter the market with
limited or no brand awareness. The affiliation with other ILK shampoo will be kept at a
minimum in order to prevent associations between Elixir and other shampoo products.
This issue will be addressed through promotion and distribution strategies.

2. Limited Budget: As a smaller company, ILK has much smaller funds available for
promotional and research activities.
Opportunities:
1. Market growth: The market growth of dry shampoo is very promising with a
compound annual growth rate of 6.9%.
2. Health trends: Hair fall and proper nutrition for hair to be issues for consumers in all
over the world as well as in Bangladesh. In hair care treatment centers various report
says the presence of hair fall treatment receivers is rampant. The dry shampoo in a
reasonable price would be a great appeal for the victims facing with hair fall and other
hair related difficulties.
3. Antiestablishment image: This dry shampoo can create a huge appeal to the young
female students, female employees who maintain a higher aversion to mass marketing
messages and global corporations.

Threats:
1. Limited shelf space: Whereas competition is generally a threat for any type of
product, competition in retail dry shampoo is particularly high because of limited retail
space. Carrying a new dry shampoo product requires retailers to reduce shelf or cooler
space already occupied by other brands.
2. Environmental issues: Environmental groups continue to educate the public on the
environmental costs of canned products including landfill waste, carbon emissions from
production and transportation, and harmful effects of chemicals cans.
3. Wrong perceptions of dry shampoo: Many consumers do not rely on the
performance of dry shampoo. Many consumers complain the dry shampoo they used
didn’t absorb oils as it promised. They can also view Elixir as the same but Elixir can
take it as an advantage by serving what it promised.
 Marketing Strategy:
Elixir’s marketing strategy will involve developing a “build your own elegance”
positioning based on extra benefits for the price. The brand will also establish channel
differentiation, focus on a primary target segment of female employees, female college
and university students and the socially responsible.

Positioning: Elixir will be positioned on a “Build your own elegance” value

proposition. This will allow for differentiating the brand based on product features and
values. Marketing will focus on conveying that Elixir is more than just a dry shampoo; it
gives customers much more for their money in a variety of ways.

Product Strategy: Elixir will be sold with all the features described in the product
Review section. As awareness takes hold and retail availability increases, more varieties
will be made available. A corn starch enhanced version will be added to the product
line, providing a solid fit with the health benefits sought by customers. All aspects of
the marketing mix will be compatible with the brand.

Pricing: A little price variation is prevalent among the leading brands. For this reason,
Elixir will follow a competition-based pricing strategy. Elixir asserts superior quality, it
must be careful not to position itself as a lower-cost alternative. Prices vary notably
based on type of retail outlet and the product is being stored. Regular prices of branded
dry shampoo products range from 500-700 tk based on brands and the amount of dry
shampoo. ILK will set prices at the average to higher end of the range for similar
products in the same outlets. For grocery chains, this should be 470 tk per bottle, with
that price rising to 480-485 at renowned pharmacy stores where prices tend to be
higher.

Distribution Strategy: Elixir will employ a selective distribution strategy with well-
known regional grocery stores and renowned pharmacy outlets. This distribution
strategy will be executed through a network of independent dry shampoo distributors,
as there are no other brands imitating this strategy. Elixir will target places that would
expose the brand to target customers. The strategy is to starting small, then expanding
into larger chains. Elixir will not target all the same stores used originally by Tresemme,
Herbal essences, Batiste etc.
 Marketing Communication Strategy:

The marketing strategy will not follow a strategy based on traditional mass-
communication advertising. Initially there will be no broadcast or print advertising.

Promotional resources for Elixir will focus on three areas:

 Online and mobile marketing: The typical target consumers of Elixir dry shampoo
spends more time online than with conventional media channels. A core component
for this strategy will be building web and mobile brand sites and driving traffic to
those sites by creating a presence on social networks, including Facebook, Twitter,
Instagram and snapchat. The Elixir brand will also incorporate location-based
services by Facebook to help drive traffic to retail locations. A mobile phone ad
campaign will provide additional support to the online efforts.

 Trade promotions: Elixir’s success will rely on relationships with retailers to create
product availability. Primary incentives to retailers will include point-of-purchase
displays and volume incentives and contests. This push marketing strategy will
combine with other pull strategies.

 Event marketing: Elixir will deploy teams to distribute product samples at events
such as concerts, quiz competition contest etc.
 Marketing Research:
To remain balanced with the online promotional approach, as well as using research
methods that will effectively reach target customers, ILK will monitor online
discussions. In this manner, the company will measure customer perceptions of the
brand, the products and general satisfaction. For future development of the product
and new distribution outlets, crowdsourcing methods will be utilized.

Budgets:
ILK has set a half year sales of Tk 40 lakh with a projected average retail price of 470tk
per unit for a total of 8510 units sold. With an average wholesale price of 234 tk. That
provides the revenue of 1991340T with an. Estimated first six months fixed costs of
600000 Tk. The break-even calculation is: {600000/ (2.34-1.77)} = 1052631.57

Conclusion:
ILK is planning tight control measures to closely monitor product quality, brand
awareness, brand image and customer satisfaction. This will qualify the company to
react as soon as possible in rectifying any problems that may occur. Other early warning
signals that will be monitored for signs of dislocation from the plan include monthly
sales (by segment and channel) and monthly expenses. Given the markets hesitation,
contingency plans are also in place to address fast-moving environmental changes such
as shifting consumer preferences, new products and new competition.