Professional Documents
Culture Documents
Strategic Marketing
Course Code: MKT-460
Section: 04
Group: 04
Submission Date: December 7, 2017
Submitted to:
Ms. Narmin Tartila Banu
Lecturer, School of Business and Economics
North South University
Submitted by:
Name ID
Md. Hamim Al Tamim 1420094030
Md. Mahmud-Al-Hasan 1410245030
Mohammad Tareq Rahman 1320400030
Raihan Rabbani 1130155030
Emaduddin Rahat 1320531030
K.M. Walidur Rahman 1030480530
December 7, 2017
Subject: Submission of Marketing-460 report on “Declining Sales of Tibet Snow for last 3 years”
Here is the final report on “Declining Sales of Tibet Snow for last 3 years” which you have assigned us to
do as a part of our Strategic Marketing course requirement. We have tried our best to gather all relevant
information which has given us an overall idea on this topic. We, the members of group four, have worked
together to relate all the information to the topic. It is our strong believe that this report will meet your
benchmark.
We have enjoyed preparing the report very much. Especially, the knowledge obtained from strategic
marketing course and co-ordination among members made our work a bit easier. We are submitting this
report for your kind consideration and thanking you for your constant assistance and guidance.
Sincerely yours,
Members of group- 4
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Acknowledgment
We, the members of group- 4, would like to express our heartiest gratitude to those who helped us all the
way through to complete our strategic marketing report on declining sales of Tibet Snow.
At the very beginning, we want to thank almighty ALLAH for being generous on us for completing this
report in assigned time. After that I deeply thank our faculty, Ms. Narmin Tartila Banu, Lecturer of
Marketing and International Business, School of business and Economics, North South University, for
providing us all the necessary information for the completion of this report. Thank you mam, for guiding
us to finish this report with perfection. Additionally, I would like to thank our classmates who provided us
different course related information.
We would convey my special thanks to some of our friends who have given us guidance and motivation to
complete this report.
We also apologize heartily for any omitted name whose contribution was also complementary for any
possible aspect.
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Executive summary
Tibet Snow, once a leading brand of Bangladesh, manufactured by Kohinoor Chemicals, has seen a
declining trend for the last several years. Tibet snow is a product of cosmetics category and the industry of
cosmetics in Bangladesh is very old. Tibet has been in this industry for more than 60 years. The customers
of Tibet snow have different age ranging from 16-60 but, in some cases, the age can be more than that.
Tibet gets its raw material from different suppliers and, sometimes, the core ingredients are imported from
different countries. Tibet has a distribution channels though it channel is not good.
The political condition of Bangladesh is not stable but it has a positive flow of manufacturing process. The
labor law is getting stricter day by day. Government of this country has passed different act regarding
minimum wage for the workers. The economic growth is decent and inflation rate is a bit higher in this
country. The socio-economic scenario is pretty different here because there are a lot of ethnic groups living
together. In the recent years, this country has seen a great technological advancement in manufacturing
industries because advanced machineries are being installed to smoothen the manufacturing process. There
are laws regarding environmental pollution.
The bargaining power of suppliers and customers is high in this industry though threat of new entrants is
low. Additionally, the threat of substitute is high because of changing nature of this industry. As a result,
the rivalry among companies is very high. To cope up with the competition, Tibet segmented its customers’
base into geographic location, age groups and level of income. As the segment of age is pretty big, Tibet
has adopted single segment concentration strategy.
There are several problems why Tibet has been losing its market share. Poor distribution channels, very
few TVC, no presence in digital marketing, unclear STP and dull packaging are the main reasons of this
lost market. To solve this problem, Tibet can increase the number of TVC and the presence in digital
marketing. It can also re-brand its logo and the positioning statement. It needs to change the packaging to
position the product in the customers’ mind. It must differentiate the product into different categories so
that the changing tastes and preferences of customers are met by Tibet snow. Tibet should take help from
technologically advanced companies to create quality products for different segments. If Tibet can adopt
the recommended tactics, it may increase the sales which is their main problem.
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Table of contents
7.4 4 Ps............................................................................................................................7
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7.4.1 Product: ................................................................................................................ 7
Appendix ...................................................................................................................... 11
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1. Introduction to the industry
In the old days, our cosmetics industry wasn’t as competitive as now-a-days. People had less choices when
they thought about local products. That was why they did tend to rely on foreign beauty products. Now-a-
days, our own local cosmetics products are playing relatively dominating roles which have been previously
dominated by foreign products. Now, people have a lot of options in that arena with many local and
international companies. According to BANGLADESH COSMETICS AND TOILETRIES
MANUFACTURERS ASSOCIATION (BCTMA) reports, the market has seen 10% growth over last 15
years (Fowzia, 2017). The huge market demand and government subsidies made it possible for having a
lot options now. This industry is dominated by Unilever Bangladesh Ltd., Reckitt Benckiser Bangladesh
Ltd., Kohinoor Chemical Company Ltd., Square Toiletries Ltd., Keya Cosmetics Ltd., Lily Cosmetics Ltd.,
Aromatic Cosmetics Ltd. and some others. In terms of market share Unilever Bangladesh Ltd. has around
45%, Kohinoor Chemical Ltd. has 20%, Square Toiletries Ltd. has 18% and Keya Cosmetics Ltd. has 11%
out of total market.
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Baby Lotion, Tibet Pomade, Tibet Lip Gel, Tibet Talcum Powder, Tibet Luxury Talcum powder, Tibet
Prickly Heat Powder, Tibet Baby Powder, Tibet Beauty Soap, Tibet Lather Shaving Cream, Tibet Pumpkin
Hair Oil, Tibet Glycerin and Tibet Tooth Powder under it. Basically, Tibet is the most powerful brand of
KCCL. Tibet snow is one of their concentrated product which gives it greatest market share among those
products. But, recently the brand is facing some problems because of the fact that the sales of Tibet snow
has been declined a lot. There are a lot of reasons behind this, considering the level of competition, market
dynamics, marketing as well as positioning factors. The management of KCCL and brand management of
Tibet is continuously trying to resolve the problem and recapture the market again.
Customers: Tibet Snow is a skin care product that targets different people of different age ranging from
teenagers to early old. Generally, these people are found in both urban and rural areas. Tibet snow has been
in the market for more than 60 years. According to Kohinnor Chemicals BD, manufacturer of Tibet Snow,
the product has very loyal customers of different ages (Kohinoor-bd, n.d.).
Competitors: Their major competitors are Fair and lovely, Ponds, Garnier and Olay.
Distributors: Tibet snow follows 3 different process for completing their distribution process.
1. They have retailer in metropolitan area and they can reach to the consumers easily. Figure 1.1
shows the distribution Producer Retailer Consumer
process in metropolitan area. Figure 1.1
2. In semi urban area, wholesalers build relation with retailer and then retailer reaches to consumer.
Figure 1.2 shows the Producer Wholesaler Retailer Consumer
process in semi urban area. Figure 1.2
3. In rural area, Kohinoor-BD has distribution channels. They send Tibet to their distributors and, in
turn, distributor send products to retailers and, finally, the consumers get them. Figure 1.3 shows
their distribution process in Producer Distributor Retailer Consumer
rural areas. Figure 1.3
Suppliers: Kohinoor chemical gets raw materials for Tibet Snow from different chemical manufacturers
and, to maintain the quality, they import core raw materials from different countries.
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Political and Legal Factors: Bangladesh political situation does not stay stable all the time. Whenever any
strike or possession, given by any political party, breaks out that effects supply and distribution process for
Cosmetics and other products. Tax regulation regarding cosmetic industry is always changing so it makes
a huge impact on imported raw material. According to New York Times, recently, Government of
Bangladesh has raised the minimum wages for workers (Yardley, 2013).
Economic Factors: The main economy of Bangladesh is based on agriculture. But, this trend has been
changing from agriculture to industrialization. As a result, Bangladesh has been facing rising number of
new rich class people and middle class people. From important economic factor perspective, the current
inflation rate is 6.12% (Bangladesh Bank, 2017). In addition, the GDP of Bangladesh for the fiscal year
2016 was 7.11% (Tradingeconomics, 2017).
Socio Cultural Factors: Now–a-days Bangladeshi people are getting very health conscious. They want to
look good in front of everyone. They are trying to follow the trend of developed countries (Hasan, 2015).
Technological Factors: Technology is transforming the cosmetics industry to a whole new field of
innovations. The cosmetics industry has begun to adopt laser treatment, home beauty services and internet
services where customers can get help using internet (Mohanta, 2017).
Environmental Factors: Bangladesh government has been giving emphasis on protecting the
environment. It has created several act i.e. The Bangladesh Environment Conservation Act, 1995 and The
Environment Conservation Rules, 1997 to protect the environment. In September 27, 2010, “Bangladeshi
Parliament passed the Environment Protection Bill 2010, to amend the Bangladesh Environment Protection
Act 1995. The amended law “empowers the government to control the production, processing, stockpiling,
supplying, transporting, importing, exporting, dumping and disposal” of hazardous waste” (Rahman, 2010).
Number of suppliers in the market is low. In contrast, number of manufacturers such as Kohinnor, Unilever
and Keya Cosmetics is high. So, the bargaining power of suppliers is high.
There are other well-known cosmetics brands like Fair & Lovely, Olay, Garnier, Ponds and Lata Herbal in
the market. The switching cost is not high as well for the customers which means the customers have many
options to choose. So the bargaining power of customers is high.
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5.3 Threat of new entrants
The level of threat of new entrants is low because companies, selling cosmetics products, offer a lot of
differentiated products and, that too, at a low cost. This indicates companies like Unilever, Keya Cosmetics
and Kohnoor Chemicals have gained cost leadership through economies of scale and, some of them, gained
differentiation through offering variety of cosmetics products. As a result, new companies, if wants to enter
the industry, will not find it feasible to compete with these specialized manufacturers.
Now-a-days, there are alternatives for beauty creams such as laser treatment, face washes and cosmetic
surgery. These alternatives have become more price effective compare to earlier point of time. So the threat
of substitution is high.
The level of competitive rivalry between existing players for Tibet is also very high because product
offerings by other companies like Unilever, Keya Cosmetics and L’Oreal are very high. To stand in the
crowd, all these companies are trying new rivalry tactics. These companies are taking technological help to
grab the market from competitors. All these facts prove that the rivalry among Unilever, Keya Cosmetics,
Kohinnor Chemicals and L’Oreal is very high.
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Strength Weakness
1. TVC of Tibet Snow has a little presence in recent
1. EMOLIN enriched and ideal skin care
years.
cream for all seasons (Kohinoor
2. Insignificant presence in digital marketing.
Chemical, n.d.).
3. It does not provide customized offers.
2. Tibet snow is made according to the BP
4. Poor distribution channels.
(British Pharma Copoeia) grade
5. The smell goes away quickly (Johnson, 2015).
ingredients.
6. Dull packaging design
3. For more than 60 years, it is being sold in
7. No state of art logo.
the market.
4. Millions of customers used it.
Opportunities Threat
1. Technology is increasing the quality of 1. Increasing competition in the personal care product
personal care products (Waters, n.d.). industry.
2. Personal care products for MEN has seen 2. Customers are getting attracted by European, East
a growth in recent years (Passy, 2013). Asia, and N/South American brands.
3. Customers are trying to adopt western 3. Customers’ tastes and preferences are changing for
trend. personal care products (Kestenbaum, 2017).
4. Rising number of new rich and middle 4. Laser treatment is being used as an alternative to
class people. cosmetics products. (Irwin, n.d.)
7.1 Segmentation
Age: From the age of 16, maximum people start to care about their skins. From that age, people want them
to look attractive and young. So depending on that perception Tibet snow cream has targeted the age 16-
50.
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Gender: Tibet snow cream has targeted women and girls because they are more beauty conscious and want
them to look younger.
Level of Income: It is an essential product for women and girls. So the product packaging is made in such
a way that students or low income people to high income people, all can easily afford that. So basically it
has targeted the people who have income 5,000 to 50,000 or above BDT per month.
User Status: They have targeted potential users, first time users and regular users.
Usage Rate: They have targeted all light, moderate and heavy users.
Loyalty level: As Tibet Snow isn’t the market leader, so they have targeted those women and
girls who has shifting loyalty, split loyalty and switchers.
7.2 Targeting
7.2.1 Single Segment Concentration: Tibet Snow falls under single segment concentration as it
concentrates about only women and girl’s skin care.
7.2.2 Selective Specialization: Tibet snow has 3 different SKU (Stock Keeping Unit) for their customers
so that can find out the product within their preferable range.
Besides these, as per Kotler (2003), their target segments are measurable, substantial, accessible and
actionable.
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7.3 Positioning
EMOLIN enriched new Tibet Snow is an ideal skin care cream in all season for delicate skin (Kohinoor
Chemical,n.d.).
It’s a mild skin care cream, made from BP grade ingredients added with moisturizer, and sufficient skin
nutrients.
The audience and context (convince): Women and girls who are sincere about their delicate skin
The value proposition (that): Tibet snow is an ideal skin care cream in all seasons
The action components (because): It is EMOLIN enriched and made from BP grade ingredients
added with moisturizer, and sufficient skin nutrients.
7.4 4 Ps
7.4.1 Product: Tibet snow cream is made in 3 different SKU (Stock Keeping
Unit) for their different customer segments. The most popular SKU from
these 3 SKU is Tibet Snow 50gm (Bottle). The other two SKUs are 25gm
tube and 50gm tube.
Figure 6.1
7.4.2 Price:
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of cosmetics is mainly captured by Fair & lovely, Ponds, Garnier and Olay. Here are the main reasons of
Tibet Snow for falling behind in the market.
It is said that good promotion gives a product higher market share. But, unfortunately, for the last 5-10
years, Tibet snow has not been showing any significant presence in advertising and promotional activities.
Though Tibet Snow has a few distribution channels, it does not use any promotional activities i.e. coupons,
product give away and free sampling. In addition, Tibet does not have strong presence in TVC and digital
media for the last couple of years.
One of the main reasons for Tibet’s falling behind is it has unclear STP. At present market, all renowned
brand of cosmetics has increased their product categories and product lines; such as, sun-screen protection
cream, multi-vitamin fairness cream, winter fairness cream, age miracle cream, oily skin cream and dry
skin cream. There are some brands who also launched cosmetics products for both male and female. But
Tibet Snow did not undertake any of the attempt or steps mentioned above to improve its product’s STP.
When Tibet Snow was launched, it mainly targeted the urban area and only focused on fairness only for
young girls. They didn’t target boys, men and women. This indicates Tibet had a poor segmentation
strategy. Now a day, customers want fairness, fragrance, herbal and chemical less cosmetics in a single
pack. But, Tibet Snow still promote as a skin care and moisturizer cream that can be used over in all seasons.
Unfortunately, Tibet Snow follow more traditional way of segmenting customers.
Tibet is one of the very first cosmetic products in this country but is not able to hold its position in the
market because of its poor targeting and positioning strategy. Tibet targets girls and women of all ages
as it has no differentiation strategies but it wants to position the product in the minds of these targeted
customers. As a result, having a big target audience with a narrow positioning strategy did not work for
Tibet snow. In contrast, some MNCs like Unilever, L’Oreal introduced differentiated products to different
segments with clear positioning statements. In consequence, customers have been attracted by those brands.
This caused Tibet to lose its market share and, ultimately, the sales of Tibet slowed down.
Now-a-days, Tibet targets urban and rural areas but the distribution strategy is so poor that the product is
not even available in some of the urban areas. Availability also counts as Fair & Lovely is found in most of
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the shops. Retailers choose to stoke brands, based on their demand above all else, followed by the provision
of the product quality, availability and sales incentives.
The color combination is very important to attract today’s customer. But, the packaging of Tibet looks and
feels like it is cheap and ordinary for its graphics, color and design. However, customers’ tastes and
preferences are changing but Tibet is having the same color and design over the time for its bottled product.
Because of this monotonous packaging, it fails to attract customer attention. Also, the logo of Tibet looks
very cheap and simple. In current market situation, customer judge the product according the logo and
packaging (Adams, 2014). But, unfortunately for Tibet, both of them made the brand valueless in the
customer’s mind.
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Threat ST Strategy WT Strategy
Increasing competition. Try to get previous Innovate products that
Customers are getting customers to cope up will be customized and
attracted by foreign with competition. meet the need of
brands. Increase the amount of customers’ preferences.
Customers’ tastes and ingredients to refrain Increase promotion to
preferences are customers from getting meet competition.
changing for personal attracted to foreign Innovate to a modern
care products. brands. logo.
Laser treatment as an Increase TVC to
alternative to cosmetics maintain customer
products. retention.
10. Specification
Tibet should use Facebook and Twitter to increase brand awareness and YouTube to show
digital ads like pop-up ads.
Tibet should create TVC and run them in popular TV channels like NTV, CHANNEL I, and
SHOMOY NEWS.
Tibet must provide license or franchises to increase its distribution channels.
Tibet must customize, as there are not much differentiated products, the snow to seasonal
category like winter and summer, to gender category like men and women, to different ages
like for young and old.
Tibet must change its logo, keeping the color theme on, to a whole new look and the logo must
fulfill modern requirements like modern women/girls or modern era.
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Appendix
Kohinoor-bd. (n.d.). General Information. Available at: http://www.kohinoor-bd.com/about-us/general-
information
Fowzia, A. (2017). Cosmetics & Toiletries industry, the major site for industrial development. The Pages.
Available at: http://www.thepages.com.bd/2017/03/20/cosmetics-toiletries-industry-major-site-
industrial-development-anika-fowzia/
Yardley, J. (2013). Bangladesh Takes Step to Increase Lowest Pay. The New York Times. Available at:
http://www.nytimes.com/2013/11/05/world/asia/bangladesh-takes-step-toward-raising-38-a-
month-minimum-wage.html
Hasan, A. (2015). Bangladeshi youth change trends overnight. Yourcommonwealth. Available at:
http://www.yourcommonwealth.org/youth-policy/youth-development/bangladeshi-youth-change-
trends-overnight/
Mohanta, N. (2017). Technological Advances Transforming the Beauty Industry. Franchiseindia. Available
at: https://www.franchiseindia.com/wellness/Technological-Advances-Transforming-the-Beauty-
Industry.9795
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Waters. (n.d.). Cosmetics & Personal Care Products. Available at:
http://www.waters.com/waters/en_BD/Cosmetics-%26-Personal-Care-
Products/nav.htm?cid=134864024&locale=en_BD
Passy, C. (2013). Real men now wear makeup. MarketWatch. Available at:
https://www.marketwatch.com/story/mens-makeup-one-guys-quest-not-to-shine-2013-12-04
Kestenbaum, R. (2017). How The Beauty Industry Is Adapting To Change. Forbes. Available at:
https://www.forbes.com/sites/richardkestenbaum/2017/06/19/how-the-beauty-industry-is-
adapting-to-change/#786f814c3681
Irwin, D. (n.d.). Laser and Botox Alternatives - Skincare Products. Skintour. Available at:
https://www.skintour.com/fillers-botox-injectibles/botox-dysport/nonsurgical-laser-botox-
alternatives/
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