Marketing Project Product Extension Plan


H e gave us his guidance.DOVE SCRUB SOAP Qurat u lain azhar PRODUCT EXTENTION PLAN Acknowledgement H e gave us a w or ld of challenges . H e gave us his Str ength. And m ind that w ould as k w hy. And gave us aw ar enes s to s ee Wor ld w her e w e all could be differ ent. We owe a special thanks to our generous teacher Mr. And gave us am bition to tr y A Wor ld that hold mar velous s ecr ets . H e gave us a w or ld br ight of beauty. Sohail kamran on providing us the opportunity to use our hidden capabilities . We are thankful to Allah Almighty that has given us the abilities to do sheer hard work and enthusiasm to perform well. And hear ts that w ould seek harm ony. H e gave us his infini te love T o help us in m aking our w onder ful Wor ld Mor e and mor e like his w or ld up above.

32% and food. Lipton). Liril. was founded in 1930 by the amalgamation of the operations of British soap maker lever brother and Dutch margarine producer Margarine unite. Blue Band and Planta brand names). Fabric Wash & Home Care (Power Surf. Rexona and Lifebuoy soaps. specialized fats/oils for the bakery/food industry under the Dada.DOVE SCRUB SOAP PRODUCT EXTENTION PLAN INTRODUCTION: Lever Brothers (Pakistan) Ltd. The Company's principal activities are to manufacture and distribute Tea (Brooke Bond. . respected for the values and standards by which we behave. 20 billion of sales with household items More than 50 brands Over 2500 hundred employees The lever brother is a part of Unilever. which is a Global company. detergents and personal products. Wall's Ice Cream. Values: We aim to manage and grow our business successfully round the world as a trusted corporate citizen. WHO ARE WE? Largest fast moving consumer goods company in Pakistan Over Rs. margarine. Beverages accounted for 41% of 2001 revenues. 27%. - - Profitability: • • Unilever is earning a lot of profit being the market leader. Sun silk shampoo). Edible Oils and Fats (cooking oils. Wheel Washing Powder. the most recent record of profitability is given below: The profitability of Unilever was 4.136 Billion Dollar in 2008. Detergents and personal products (Lux. Vim). Core competency: • Distribution network is the core competency of unilever.

So on the whole we can say That 7.DOVE SCRUB SOAP PRODUCT EXTENTION PLAN • • • Cross-cultural management Emerging markets Leadership competency in multinational companies Corporate objectives: • • • Overall control of activities in the company. hygiene. 2.370. Mission Statement Unilever's mission is to add vitality to life. Market size.411 out of which 32. 3. look good and get more out of life Market overview Our market overview consists of three basic headings: 1. We meet everyday needs for nutrition.H” said that about 70% of the girls that come to the hospitals with skin problems have “freckles” “skin rashes”. Rounding this figure off can say that 7.031. This is a skin disease which normally occurs to the younger girls with oily skin and as a preventive measure of the freckles and skin rashes doctors suggest to use scrub soap on daily basis.34% lives in urban areas and most of them are college or university going girls. Market Trends. Market size According to the census reports of 2009.051 are the girls in this segment. Because these problems occur due to pollution and dust so scrub soap .000. The skin specialist doctor of “M. Concerned its strategic planning long term objectives and proper management structure Ensuring that the management functions to maintain integrity and responsibility toward its constituency.000 are girls who need scrub due to their daily routine such as going to college. it is estimated that out of total population of Pakistan the number of females in the age group of 15-30 is 23. and personal care with brands that help people feel good. Market Shares.

So in order to measure the trend we have considered following things: o o o o The customers prefer easy to use goods The customers prefer quality in case of skin. INTERNAL AUDIT Product LUX is an internationally renowned beauty soap brand of Unilever. The customers prefer those products which starts giving output in early days. So we can not exactly forecast the trends of the market. 80gm and 120gm.6 Billion pound. Our target market is Millions of girls with sensitive skin.2010 of 25-30 Billion$ improvements in return on invested capital. Formula given by Research and Development departments in foreign countries. LUX Nature Pure. So we have a huge market to target. 40gm. Market shares It is estimated that people around the world in 150 countries uses Unilever products. LUX is offered in Pakistan in six different flavors which are: LUX Energizing Honey. 150 times a day. preferences and choices of the customers change fast in this segment. it maintains an international quality for the product. glycerol and different extracts according to flavors. as an international brand. disliking. coming from Unilever plants situated abroad. Taking into account the convenience of its customers. LUX Golden Glow. underlying sales growth 3-5% per annum. LUX is produced in Pakistan from imported raw materials like sodium soap. LUX Almond Delight and LUX Aqua Sparkle. Liking. Market Trends The trends of the beauty product market are ever changing with a drastic pace.DOVE SCRUB SOAP PRODUCT EXTENTION PLAN is made specially to use at daily basis. the company manufactures all flavors of LUX in three different sizes. The customers prefer those products which provide best results in short time. The trends of this market are not well understood. By 2010 Unilever plans to improve its financial standard by free cash flow in the period 2005. LUX Orchid Touch. Price . Though manufactured in Pakistan for the local market by Unilever Pakistan Ltd. In 2006 sales revenue 39.

by including world famous male celebrity Shahrukh Khan for their advertising campaign. Unilever Pakistan Ltd spends a huge amount of money for promoting LUX through TV commercials. where the product goes after they are manufactured at Karachi factory. it has outsourced its distribution process to various third party distributors. The brand loyalty test is an exploratory research which is known as Brand Health Check-Up (BHCU). EXTERNAL AUDIT: . This is due to some constraints in the beauty soap industry. has a huge distribution channel for LUX all over the country as its sales reach more than 10 million pieces a year. exclusively dedicated to Unilever Pakistan Ltd. Beauty soap is a product with a vulnerable demand in Pakistan. Place Unilever Bangladesh Ltd. newspaper advertisements and billboards. one in each division of Bangladesh. These distributors then supply the product all over Pakistan to a huge Number of retailers. However. They do not only promote LUX in Pakistan for the beauty conscious females. The company does not use its own fleet of transport for distributing its product. The company has six huge warehouses. It spends almost 20% to 25% of its Net Proceeds from Sales (NPC) of LUX for promotional activities for LUX 1 It’s certain annual promotional campaigns like LUX Channel I Superstar and LUX Channel I Annual Cinema Awards has made the product a part of the glamour world. Company carries out research on competitors’ price and brand loyalty when it feels extreme necessity of changing price. Promotion Unilever Pakistan undertakes huge promotional activities to promote LUX which has topped the beauty soap industry Pakistan. Even though LUX targets the urban and sub urban middle and upper middle class people they are distributing their products all over Bangladesh because of a recent increase in demand of its product to all segments of the population.DOVE SCRUB SOAP PRODUCT EXTENTION PLAN Though Unilever Pakistan gives its LUX customers a lot in terms of the product itself. it also provides a better pricing. Its prices are almost equal to its competitor. it also promotes the brand for males and the company proved that. A change in price has a high risk of creating price war among the rivals which will eventually cause a loss of profit.

DOVE SCRUB SOAP PRODUCT EXTENTION PLAN SWOT Analysis  Strengths • • • • • • • • Enjoying economies of scale Good will in the market Strong financial position Have Strong distribution channel in Pakistan Abundant financial resources Well-known brand name Well brand image Committed employees Weakness • • • Huge inventory stocks of raw material Weak spending on “R & D” Internal operating problems   Opportunities • • • • Rapid market growth Changing customers needs & wants as life style change To create relation with society on the social marketing basis Pakistan peoples have become quality conscious Threats • There is very tough competition in beauty soap market .

PEST Analysis: Pest analysis consists of analysis of macro environment of the company. we expected much of big giants already in the business. These forces are as follows: • • • • Political environment Economical environment Socio-cultural environment Technological environment Political Environment: There is a lot of instability in the political environment of Pakistan. It consists of four major forces that affect the company in the long run and also affect the profitability of the business.DOVE SCRUB SOAP PRODUCT EXTENTION PLAN • • • • • • • Low profit margins Smuggled brands of CHINA New competition in the market Increases in taxes Increases in prices due to fuel prices Being new entrants in the business. The economic conditions are bad and the value of domestic currency is depreciating due to the war going on in Waziristan. Contact with suppliers had to be established. All of these forces are a part of outer or external environment of the company. machinery and offices due to terrorist attacks. This was a major factor of my vulnerability in the market share. Despite of all these hazards company is ready to invest because we have taken personal security measures such as private security firms. But the company will invest due to the ever growing demand of beauty products and the craze of Asian women to look pretty. The threat of suicidal attacks is there and it is very risky in terms of the security of our plants. . Economic Environment: The economic environment of Pakistan is also very unstable due to change in the monetary policy of State Bank of Pakistan and the political instability as well.

DOVE SCRUB SOAP PRODUCT EXTENTION PLAN Socio-cultural Environment: Socio-cultural factors of Pakistani population are well understood because the company is not new in this geographical area. They can also add the features of the scrub into any of their soap. so we have used the state of art technology in the soap making industry. 2. 3. We will keep on changing and updating our technology with the passage of time. Threat of new entrance :( high) Threat of new entrance is high because all of our competitors have enough potential to enter into this market following us. We have to be very careful about the prices as well as the products which the competitors are offering. demands and the constraints of the Pakistani buyers. Technological environment: The technological environment keeps on changing with the passage of time. Threat of substitute: (very low) . No one in the Pakistani market is having this technology. “Unilever” is better able to understand the needs. But we will have the advantage of first mover into the market forever. Porter’s five forces We have applied the portal’s five forces model to our product development plan: 1. Competitive Rivalry :( high) The competition is high in this industry as a lot of companies are already competing in the market such as: • Olay face wash • Johnson and Johnson • Proctor and Gamble • Colgate Palmolive • L’Oreal • Hollywood • Revlon So in the presence of these big giants it is a very tough time in the beauty market of Pakistan. wants.

The price of electricity will not change drastically. Assumptions. Moreover “Dove” has its own brand identity in the world of beauty products. So we will enjoy the benefits of the monopolists and can even charge the price of our own choice. The plan will not change during the current year. financially as well as legally. There will be no extraordinary increase in the salaries of the employees There will be no sudden change in the labor laws of the Government There will be no sudden change in the monetary policy of the Pakistan Government. Our shareholders and B. Marketing objectives and strategies: a) Setting marketing objectives: Based on previous assumptions we have decided some standard objectives for us in this marketing plan: . The assumptions are as follows:               The plan is for one year. In case of any mishap our company will help socially. The prices of raw material will not change drastically during this year. The prices of fuel will not change more than the trends of previous years.Ds will agree on this investment. Bargaining power of buyers :( low) The bargaining power of buyer is also very low in this case. There will be no increment in the tax. For the validation and proper functioning of our marketing plan we had considered certain assumption.O. So we will get the benefit of only producers in the market. Our suppliers will be loyal to us as before. So it is said for the certain that suppliers will feel proud to work with us and their profit margin will be kept intact. as there is no one in the direct competition of our product. 5. 4. There will be no new product from the competitors. Bargaining power of suppliers: (low) Bargaining power of suppliers is very low as “Unilever” is an established and renowned brand. as it is a new product and we have got first mover advantage of the scrub soap market.DOVE SCRUB SOAP PRODUCT EXTENTION PLAN There is a very low or approximately no threat of substitute available in the market because it’s a new product idea and there is no scrub soap available in the market right now. The water shortage problem of Karachi will be overcome.

After the achievement of goals of the “Dove scrap soap”. by the end of year 2009. Characteristics of the Product As our product is extension of dove pink cream bar (moisturizing cream) we have made it 2 in 1 means by adding apricot and neem extracts. in the Karachi market is 41 Million $ The profit target of the “Dove scrub soap”. dated 05th of June 2009. All the expenses incurred during this plan will be strictly in accordance with the budget allocated to the plan. The promotion campaign. we will launch the modified product for the ladies more than 35 years of age in year 2010.DOVE SCRUB SOAP • • • • • • PRODUCT EXTENTION PLAN • By the end of semi annual term. in the year 05th of January 2009 to 05th January 2010. Gujarat and Rahim Yar Khan Etc. • • • • We have add apricot in it to make skin fresh and shiny Apricot and Neem granules are used for the scrub purpose We have add apricot and neem to make skin fresh and shiny Its shape will be oval . we will achieve breakeven. Sales target of “Dove scrub soap” in the year 05th of January 2009 to 05th of January 2010. in the year 05th January 2009 to 05th of January 2010. such as personal selling will promote the “Dove scrub soap” to the smaller cities and towns such as Abbot bad. in Karachi market is 24 Million$ The “Dove scrub soap” will get the market share of 40% of the total soap market of Pakistan in the year 05th January 2009 to the 05th January 2010.

The leather of soap contains apricot neem granules so at every facial wash it will give cleansing effect. No harmful chemicals are used in it. Market Potential • • • • • • Beauty Soap Market is growing intensively. Unilever is positioning their product in the best of their customer satisfaction which also . Market could be extended to rural areas as well Market Positioning Dove is considered to be a trusted and premium brand because of its unique association. Pakistani Peoples are moving from rural areas to urban areas as life style is changing. • • Aroma of soap will be of apricot • It is medically tested and for all types of skin. Advertising is promoting the Beauty Soap by comparing the functionality of different Beauty Soap. Increase awareness of usage benefit of Beauty Soap. A present Consumer prefer on the base of quality.DOVE SCRUB SOAP PRODUCT EXTENTION PLAN • • Its color will be like apricot color due to more addition of apricot extracts.

Levels of Product . even compared to other branded soaps. MARKETING MIX Product Price Place Promotion Product • • • • • • The Dove scrub Soap is the product by UniLever. They are also positioning as considering the fact of Strong’s competition . Extensive wide spread distribution. large size. It’s the convenience product Consumers purchase is it frequently with a little planning or minimum efforts. Soap Manufacturing Machine.DOVE SCRUB SOAP PRODUCT EXTENTION PLAN differentiate from their competitors. They are creating environment for people to have a life easy chance. Product has a low price. It’s the consumer product bought by the consumer for his / her personal use.So they are also focusing different type of facilities. Targeted marketing promotion plan for Dove scrub Soap.

Kills harmful bacteria Neutralizes odors Fresh Apricot fragrance . ACTUAL PRODUCT Dove scrub Soap. Neem and apricot extract. Red 17 (CI 26100). Fragrance. Brand name. BHT. The Apricot Granules is used in this product so it will perform its role as scrubbing. Sodium Tallowate. Give a fresh look all the day Product Features There are 2 sizes available in the market 140g and 95g. Titanium Dioxide (CI 77891). features and quality level. Contains an active ingredient with natural antiseptic properties.g. Sodium Chloride. Sodium Stearate. Additional Features • • • • • • Specially formulated for everyday skin cleansing.DOVE SCRUB SOAP PRODUCT EXTENTION PLAN CORE PRODUCT: The soap itself is suitable for all types of skin. LUX. Sodium Cocoate Or Sodium Palm Kernelate. So we are going to reduce the size by 5g as per according to other soaps e. Product Quality Dove scrub Soap introduced the best quality soap in the world of soap. and gives you the cool and fresh look all the time. It will maintain its positioning and will work as the soap of freshness. Cocamidopropyl Betaine. We will provide the best quality and offer the low prices according to the will of people supported by our Questionnaire. E. Flexibility to adjust according to the skin. This soap comes with the new innovations having the innovated formulas suitable for all types of skins. Stearic Acid. Product Ingredients Sodium Cocoyl Isethionate. packaging. Tetrasodium Etidronate. Coconut Acid. Sodium Isethionate. Tetrasodium EDTA. Water. The product Dove scrub Soap includes the different ingredients. the effective and efficient product in all aspects. Suitable for all skin types. design.e.g. The people are less conscious about the size i. 5g.

We will display the model with the fresh look at the front of the soap which also will play the role of impulse buying in our target markets. But the label Dove scrub Soap will attract them and increase their curiosity to know about the new change Dove scrub Soap.• • DOVE SCRUB SOAP Leaves skin feeling soft.g. clean and moisturized Gentle for all skin type PRODUCT EXTENTION PLAN AUGMENTED PRODUCT Brand DOVE is the branded name registered by the Lever Brothers. Dove scrub Soap Packaging The high quality rapper would be used for the soap. Product Labeling People are less conscious about the reading material. . And at the rest of the body the ingredients would be mentioned. Brand name would not be changed but the brand extension strategy would be practiced along with the same name e. The design and packaging is the main source to compete the competitors. In the text area it would be boldly mentioned For Normal Skin For Oily Skin For Dry Skin The main message would also be mentioned on the rapper the freshness soap which will maintain its positioning.

They charge different prices to registered and unregistered retailers Prices are set by taking into consideration the usually they charge high prices. Because they believes in zero defects. Prices are set by taking into consideration     What Customer believe for high price & high quality. There are many competitors in the market. And they are charging price of Dove Scrub soap on the basis of its quality. So we are going to reduce the size by 5g as per according to other soaps e.70 . We will provide the best quality and offer the low prices according to the will of people supported by our Questionnaire.e. Prices and offers. Selecting a pricing method. As their products are highly quality . Price Adjustments There are 2 sizes available in the market 140g and 95g.95 PLACE Net weight 90g Rs. There price are high. • • • • Selecting the price objective Analyzing competitor’s costs. LUX. The people are less conscious about the size i.DOVE SCRUB SOAP PRODUCT EXTENTION PLAN Price Here the firm has to consider many factors for determining the price such as. “Price is simply the cost plus profit of the firm.g. type of product.” How to set the price of the product Prices are set by taking into consideration into the prices of the competitors. Such like Unilever set low price for other beauty soaps. So the firms have to consider about the competitive price while selecting new price and schemes. 5g. Decided prices Net weight 135g Rs.

Advertising Strategy MEDIA USE . The Distribution Strategy For distribution of Dove scrub Soap. • Retailers • Whole sellers. mostly short term. The demand will be created in the market through effective advertising and promotion. It would be a targeted marketing. Promotion  Promotion consist of a diverse collection of incentive tools. designed to stimulate quicker and greater purchase of particular product/services by consumer as the trade. The Channels Levels • Customers.DOVE SCRUB SOAP PRODUCT EXTENTION PLAN Distribution Areas 1st of all we have to cover all the markets in Islamabad and Rawalpindi. and wholesalers will demand the product from manufacturer. Our aim is to plan. organize and throw our product in each and every town of the twin cities. we give our product to the retailer and he provides it to the customers. customers will ask retailers for the product. • Manufacturer Distribution Intermediaries (setup) 1) Producer 2) Producer Retailer Wholesaler Consumer: Retailer Consumer: In this way. the company will adopt the pull strategy. local sellers will demand the product from the wholesalers. Unilever Pakistan Limited places their products in local as well as in foreign market. They export directly and indirectly. Unilever promote their products through media. The second channel adopted by us is that we will give the product to the wholesalers who will distribute the product to the retail stores and then it will reach to the customer. and other trade incentives to distributors and wholesalers.

FACTORS FOR DECIDING MEDIA STRATEGY • • • Which one is more effective? Cost benefit More access  The company sets up the store displays and sales officers make sure that items displayed are properly arranged so that they can look attractive on eye contact level. Television: All nationwide channels are being used to run the campaign of Dove Scrub Soap. Newspaper: Jang and Nawa -e-Waqt SHE is being used for advertisement in front page.Unilever has to pay the huge amount for it as advertise through different channels.In the advertisement of Dove Scrub Soap on television advertisement agency hired Reema for our soap. e. Promotion methods Advertising.g. TV and Billboards and newspapers for advertising purposes.DOVE SCRUB SOAP PRODUCT EXTENTION PLAN Unilever Pakistan Limited use radio.: ATV & PTV. Advertisement of Dove Scrub Soap .

Road display: .06:59pm75.000+GST 04:00pm .05:59pm50.000+GST Radio FM 100. FM 103 and FM 106.000+GST 06:00pm .2 are now a day’s being used.000+GST 07:00 pm .06:59 pm15.DOVE SCRUB SOAP PRODUCT EXTENTION PLAN PTV Advertising Tariff With Effect From 05 Jan. 2009 Time Slot Rates per Minute 07:00am .000+GST 10:00pm -11:59 pm50.09:59 pm 100.03:59pm25.000+GST 12:00am .

For bill boards advertising agency took two models Reema as well as Iman Ali. at saddar. Stalls: Company arranges their stalls in the exhibition at which the products are displayed. Asifa 175000 250000 Ms. There usually one day company performs the activity of order taking and very next day they deliver the dove scrub soap to the destination.DOVE SCRUB SOAP PRODUCT EXTENTION PLAN Bill Boards such like at kacheri chowk. Sales promotion Samples: Dove is well known brand but there is a need to promote it by samples because dove scrub soap is extension in dove pink beauty soap. Naima Ms. Implementation of Plan Start Date 5January 09 6 March 09 6 May 09 6 July 09 End date 5 March 09 5 May 09 5 July 09 5 slept 09 Activity Advertising advertising advertising Advertising Budget allocation 100000 150000 Ms. yousaf Department Marketing department Advertising department Advertising department Advertising . commercial market is being used where a model is showing the functionality & Purpose of Dove. Annie Person responsible Mr. Personal selling Order takers: Company has employees who perform the activity of order taking from different areas to facilitate the retailers.

If there is any indication that any product is not profitable company analyzes the reasons and step are taken to overcome the reasons. It takes into account the taste and habits of the consumer. There fore company has finished the production of Lifebuoy Gold in past. It also works for the welfare and interest of Pakistan . Company also takes into consideration the welfare of the consumers.DOVE SCRUB SOAP PRODUCT EXTENTION PLAN department Control Company deals only in those products that are profitable. For this purpose Unilever concern with marketing research firm Aftaab Associates for marketing research to gain the information about trend of market.

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