Elaine Report

8/2/2019 Elaine Report

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SectionAPrinciplesofMarketing

SubmittedtoSir.FaisalQazi

Product:Elaine(autoremovingnailpolish)

MarketingPlan

SubmittedBy:

AliRazaSyed 9963

NabeelAliKhan 12099

ZohaAamerKhan 11484

AbdulMoizMughal 11540


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Executive Summary:We are preparing to launch a new auto removing nail polish in a mature

market. Our product offers a complete new experience, for the users of nail polishes

who intend to change it with their desired time, at a value added price. We are

following segmented marketing, especially in the consumer market. We will take

advantage of opportunities indicated by a good demand for easy-to-use and easily

removable nail polishes with auto removal after a specific period of time through the

process of Keratinization.

Our primary marketing objective is to achieve a first year sales of 300,000 units. Our

financial goal is to achieve revenue of 180 Million Rupees, and keeping the first year

losses up to a minimum of 15 Million rupees.


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Table of Contents

Current Marketing Situation:............................................................................... 6

Market Description:.............................................................................................. 6

Product Overview: ................................................................................................ 71. Elaine Delight: .......................................................... ............................................................. ...................... 72. Elaine Ecstasy: .......................................................... ............................................................. ...................... 73. Elaine Euphoria: ....................................................... ............................................................. ...................... 7

Competitive Overview: ......................................................................................... 8International Products: .................................................... ............................................................. ...................... 8

1. Maybelline New York: ..............................................................................................................................82. MAC Cosmetics: .........................................................................................................................................83. Sally Hanson:...............................................................................................................................................84. Rimmel: ..........................................................................................................................................................8

Local Products: ........................................................ ............................................................. ................................ 81. Atiqa Odho: ..................................................................................................................................................82. Luscious: ........................................................................................................................................................8

Comparative Table of Competitors............................................................ .................................................... 9

Channels and Logistics: ........................................................................................ 9Consumer Market: ............................................................ ............................................................. ...................... 9

1. Cosmetic shops ............................................................................................................................................92. Departmental stores ..................................................................................................................................93. Whole sale retailers...................................................................................................................................9

Business Markets: ................................................... ............................................................. ................................ 94. Beauty parlors .............................................................................................................................................95. Make up artists ............................................................................................................................................96. Modeling agencies ..................................................................................................................................107. Film agencies ............................................................................................................................................10

SWOT Analysis:.................................................................................................. 10Strengths: ......................................................... ............................................................. ....................................... 10

1. Innovative product: ................................................................................................................................102. Convenience:.............................................................................................................................................103. Pricing: .......................................................................................................................................................104. Product design: ........................................................................................................................................10

Weaknesses:.................................................... ............................................................. ....................................... 101. Low financial strength ...........................................................................................................................102. Narrow range of colors .........................................................................................................................103. No corporate image ................................................................................................................................11

Opportunities ............................................................ ............................................................. ............................. 111. Increasing rates of change in fashion .............................................................................................112. Color diversity in all fashion wears .................................................................................................113. Modernization ...........................................................................................................................................11

Threats: ................................................... ............................................................. ................................................. 111. Competitors have a high market share .........................................................................................112. Lack of trust by consumers ..................................................................................................................11

3. Brand loyalty for other brands...........................................................................................................114. Financial stability of competitors .....................................................................................................11


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5. Lack of brand awareness......................................................................................................................11

Objectives and Issues: ......................................................................................... 12First-year Objectives:....................................................... ............................................................. ................... 12Second Year Objectives: .......................................................... ............................................................. ......... 12Issues:...................................................... ............................................................. ................................................. 12

Marketing Strategy:............................................................................................ 121. Positioning........................................................ ............................................................. ............................. 122. Product strategy ........................................................ ............................................................. ................... 123. Pricing Strategy ........................................................ ............................................................. ................... 124. Distribution Strategy ......................................................... ............................................................. ......... 145. Marketing Communication Strategy........................................................... ....................................... 146. Marketing Research........................................................... ............................................................. ......... 147. Marketing Organization .................................................... ............................................................ ......... 14

Action Programs ................................................................................................. 151. May ........................................................... ............................................................. ....................................... 15

2. June ........................................................... ............................................................. ....................................... 153. July ............................................................ ............................................................. ....................................... 154. August ...................................................... ............................................................. ....................................... 155. September......................................................... ............................................................. ............................. 156. October.................................................... ............................................................. ....................................... 15

Budgets................................................................................................................ 15

Controls............................................................................................................... 16

Bibliography:........................................................................................................ 17


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Current Marketing Situation:

Elaine, devised up by our group members Zoha Aamer Khan, Nabeel Ali

Khan, Abdul Moiz and Ali Raza Syed about 3 months ago, is about to enter a

concentrated and mature nail cosmetic market. Nail polishes have become the cherry

on top for the fashion and style statement for all the women in todays market.International Research has shown that 88.7% of all women using nail polishes

consider nail polishes as a style statement as well as a must-garnish on top all the

fashion and style they adopt.

Competition in the nail cosmetic market is rated as moderate and therefore

creating chances and other opportunities for Elaine to create a customer perceived

value and a position relatively easier. Inside Pakistan, there are both international andnational competitors present like Maybelline, MAC Cosmetics, and Sally Hanson,

Rimmel etc. from the international market and Luscious, Medora, Midie etc from the

local market. Out of these competitors Maybelline has 55% market share in the

consumer market. Atiqa Odo has about 22% share. Mac has 70% share in businessmarkets only.

Market Description:

Elaines market, mostly, consist of women who use nail cosmetics as a fashion

statement and are using multiple colors. Specific segments that shall be targeted

during the first year include all women of ages 16 and above by demographics and

working class & above with achievers or strivers as lifestyle and personality types of

compulsive behavior, gregarious and ambitious. From the consumer markets we tend

to target housewives, working women, students, executive women, out goers. From

the business markets we tend to target corporate users, spa and parlor owners(male/female).

Buyers can choose between three variations of Elaine nail polish namely:

1. Elaine Delight 12-hour2. Elaine Ecstasy 24-hour3. Elaine Euphoria 48-hour

Elaine will be a huge convenience for women as it will automatically remove

itself from the nail of the applicant and automatically chip off. Elaine will also be astate-of-the-art in terms of shine and finish. It will be a major ease for all of the

teenagers including students and other teenagers to change their fashion statements

immediately without the hassle of carrying a nail polish remover with its necessary

accessories. Elaines three variations are in term of the time i.e. Elaine Delight,

Ecstasy and Euphoria will automatically be removed after 12, 24 and 48 hours

respectively. Customers will be able to choose from these three variations based of

what amount of time they would like the nail polish to be there.


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Targeted Segment Customer Need Product Specification

Non-working

(Consumer Market)

Prove to be a convenience with a

busy house hold schedule

Elaine auto removing

quality will provide both

Working

(Consumer Market)

Prove to be easily removable without

carrying a remover with itsaccessories

Elaine auto removing is

the solution

Corporate users

(Business market)

To be able to give its employees and

customers a easy to go fashion and

style statement

Again Elaine auto

removing!

Spa and Parlor owners

(Business Market)

To provide its customers with an

easy and convenient outlook without

any hassle, accompanied by good

finish and exemplary shine

Elaine auto removal and

Elaines finish and shine.

Product Overview:

Our Product offers three variations

1. Elaine Delight: Elaine delight is a nail polish made to serve you for only 12 hours. There are 6 different shades available for the user to choose from.2. Elaine Ecstasy: Elaine delight is a nail polish made to serve you for only 24 hours. There are 6 different shades available for the user to choose from3. Elaine Euphoria: Elaine delight is a nail polish made to serve you for only 48 hours. There are 6 different shades available for the user to choose from

The first year sales revenue is targeted to be 180 Million Rupees based on the averagesale of the three variations to be 300,000, priced at:

Elaine Delight 699 Rupees only/65ml Elaine Ecstasy 599 Rupees only/65ml Elaine Euphoria 499 Rupees only/65ml


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Competitive Overview:

International Products:

1. Maybelline New York:Maybelline has penetrated the market through time. It has been in the market for quite

a long time and it has created among the customers the element of trust and a

corporate image. Maybelline offers more than 28 different colors with different variety

of shades of the same color.

2. MAC Cosmetics:MAC Cosmetics has caught attention of many due to the HIGH Price and

international image among beauticians and cosmeticians. They are currently not

available in the consumer markets but are only supplied to businesses. They dodominate over the business market with an over all share of 70%.

3. Sally Hanson:Sally Hansen has relatively a lower market share, than its competitor Maybelline, of

about 20%. They also do have the advantage of international reputation shared by

Maybelline and MAC. They also provide over 18 shades of nail polishes.

4. Rimmel:Rimmel is not very dominating over the consumer OR business markets. With amarket share of 3% on business markets and 5% on consumer market. Rimmel offers

only 13 shades to the market but they do are known quite well for the finish and

shine.

Local Products:

1. Atiqa Odho:The most popular local brand in the market but is still lagging behind the trust and

understanding international brands have managed to develop. They have managed to

acquire only 22% among the list of local products whose overall share is still notmore than 20% of the overall nail cosmetic market.

2. Luscious:The most well developed brand in the market today but is lagging behind inmarketing their product. Lack of awareness and less marketing and advertising budget

has restricted this product way below what its potential was.


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Comparative Table of Competitors

Competitor Colors Available Features/Advantages Price

Maybelline 28+ Finish, Shine,Reputation, Corporate

image, branding.

480 PKR

MAC 16+ Quality, reputation,

hype

800 PKR

Sally Hanson 18+ Shine, party signature,

specialty

450 PKR

Rimmel 13+ International Reputation 560 PKR

Atiqa Odho 8+ Local image, flexibility,

colors, quality

300 PKR

Luscious 10+ Branding, package &

product design

400 PKR

Channels and Logistics:

Elaine will be distributed among all the channels in the Pakistani cosmetic market

some of the most important channels are:

Consumer Market:

1. Cosmetic shopsCosmetic shops will be able to present our product directly to the

consumers. Cosmetics shops may include retail stores in shopping malls like aashiana,saffron and Cos Cos Cosmetics.

2. Departmental storesDepartmental stores may be able to give exposure to our product also

giving us the option of sales promotion and personal selling in that particular store.

These include Aghas, My Super Store, Naheed, Chase Up, and Ary cash n carry.

3. Whole sale retailersWholesale retailers may provide the product extra availability in the

market for both retail stores and business markets. Imtiaz Super Store, Makro, Metro

Business Markets:

4. Beauty parlorsBeauty Parlors may carry our product to satisfy their own customer

needs. They may include Nabeelas, Sabs, MahRose, Deluxe, Depilex and many other

local and unrecognized parlors.

5. Make up artistsWe may also approach make up artists who render their services to

many agencies privately. Some of them include Amir Nadeem, Bina Khan, SadafAijaz, Shaheen Saeed and etc.


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6. Modeling agenciesModeling agencies may use our product for preparing their models for

outdoor shoots, fashion shows and other events. These modeling agencies may

include Green field Advertising, Sherwani Casting Agency, Macro Modeling Agency,

Click Studios and etc.

7. Film agenciesFilm Agencies may also use our product to prepare their actors and

actresses for out door shoots and indoor shoots. Some of these film agencies are Hum

Productions, Geo Entertainment Productions, Humayun Saeed Productions, InfinityFilms, Gray Scale, Crew Media, Flux Productions, and etc.

SWOT Analysis:

Strengths:

1. Innovative product:Our product will enable our customers to remain care free about the

removal of the nail color they carry that would otherwise result in their carrying nail

polish removers, cotton buds and other accessories.

2. Convenience:Elaine will be able to provide customers with such a convenience that

they will be able to rely on it for every single of their occasions and other usage

3. Pricing:Our pricing is both affordable yet creating a psychological effect in theconsumers mind about what its value is. This can also be perceived as an affordable

high-end product.

4. Product design:The design and the overall look is very innovative and attractive.

Appealing enough for the customers so that they will at least stop and see what the

product is all about.

Weaknesses:

1. Low financial strengthThe product is very new in the very mature market where other

products have made their place and reputation with time. Elaine will have to spend

and invest a lot in the market in which it can face financial troubles and hindrances.

2. Narrow range of colorsElaine is unable to deliver a wider range of colors as compared to its

other competitors in the market. Most are offering at least 12 shades where Elaine is

offering only about 6.


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3. No corporate imageAs the brand and the product are new there is no brand image or

recognition that supports the product. Making it harder for the company and theproduct itself to create a better position in the mind of the customer

Opportunities

1. Increasing rates of change in fashionFashion today is increasing with day-to-day rate. Women today find it

very in convenient to change it through nail color removers and other equipment. And

so they look forward to a product that may save them from this fatigue andinconvenience

2. Color diversity in all fashion wearsEvery women/girl today finds a wear or a fashionable accessory to

match her dress or other iconic statements of fashion and style, so they look forward

to nail polishes which are convenient to use and remove.

3. ModernizationDue to modernization the number of women, who actually take time

analyzing their own fashion statements and the conformity in it, is increasing day byday. Therefore more women look for something convenient and easy.

Threats:

1. Competitors have a high market shareOne of the major threats that Elaine faces is the huge customer marketshare that has made difficult for us

2. Lack of trust by consumersPeople dont trust our product at the moment. Though this is Indirectly

linked to the first weakness, we are taking it as a separate challenge because no matterhow much more awareness we may create, we may still find lack of customer trust in

our product.

3. Brand loyalty for other brandsThere exists a lot of brand loyalty for many other international brands

like Maybelline and MAC (for event planners and the business market). Breaking thatup by a product that is made in Pakistan, whose image for quality is very marred and

defamed, is going to be a challenge.

4. Financial stability of competitorsDue to the their time and other strengths, our competitors are highly

stable in todays market in terms of numbers, They are already broken-even on their

brands and their products have created good positions in the consumers minds.

5. Lack of brand awarenessNo one knows Elaine, what it is, what it does, how it does, is it

reliable, and etc. all of these must have to be answered to the consumer. There must


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be heavy pitches that must be made in order to create enough awareness for thisproduct.

Objectives and Issues:

We have set aggressive but achievable objectives for the first and second years ofmarket entry.

First-year Objectives:The first year sales revenue is targeted to be 180 Million Rupees based on the

average sale, of the three variations, to be 300,000

Second Year Objectives:The second year sales are targeted to be 500,000, generating revenue of 300

Million Rupees based on the average of the three variations.

Issues:The major issues is to develop and acquire such a position in the mind of our

clientele that they themselves are bound to advertise and recommend Elaine to other

people as well.

Marketing Strategy:Elaines marketing strategy is based units positioning in the mind of the

consumers on the basis of its competitive advantage and point of differentiation. Our

primary target is 16 30 years of women falling under any Psychographic group. Our

secondary target is 30 & above years of women who are falling under at least working

class & above with a personality type of gregarious, compulsive or/and ambitious.

1. PositioningWe are positioning Elaine on the feature of auto removal after a

specific period of time as desired by the user. Elaine will be portrayed as a veryconvenient, glossy and high quality product for both personal and professional usage.

2. Product strategyAll three variations of Elaine will be release together and shall

continue. Elaine will be sold separately and in packs of three with one variation of

each of the three categories, and in three different packs of 6 pieces with all 6

different colors of one single category. Building the brand is also important to us in

the strategy so our Elaines E will be present at all the parts of the bottle and of the

packaging.

3. Pricing StrategyElaine will be introduced at the following prices:

Elaine Delight 699 Rupees only/65ml Elaine Ecstasy 599 Rupees only/65ml Elaine Euphoria 499 Rupees only/65ml

We expect to maintain this price throughout the first two years after we willlaunch Elaine Pentawo, which will be available for 599 with Elaine Ecstasy. The price


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shows that the end results of this pricing are to take share from Maybelline and todevelop a product trust and corporate image.

4. Distribution StrategyOur distribution strategy is Mass Distribution through out Karachi,

Lahore and other major capitals in Pakistan. Elaine will be available in well-knowncosmetic shops and retail stores. Also Elaine will not be restricted only to cosmetic

shops, Elaine will also be available in well known departmental stores and wholesale

stores like Imtiaz and Makro respectively. It will also be provided through both wellknown and through local and unknown parlors and spas. Big discounts will be given

to persons who place a volume order.

5. Marketing Communication StrategyIn the introduction phase we will be able to integrate all messages we

want to communicate in Internet advertising. Through this we cal also approach

people through direct marketing and online advertisements. After sometime we will

then approach people through print media advertisement, with sample flyers first andbillboard advertisements.

6. Marketing ResearchMarket research about the response of our customers will help us

improve our product a lot. We will be able to develop and analyze the validity of the

targets and segments we have set for us in the future. The Brand awareness research

may tell us about the implementation and consumer response to our marketingstrategy.

7. Marketing Organization

AliRazaSyed-CMO

NabeelAliKhan-SMM

HassanKhan-MM

RiazAhmed-Supervisor

Salespersonnel

SaudHassan-MM

ShahRizvi-Supervisor

Salespersonnel

ZohaAamerkhan-SMM

AbdulMoiz-MM

SultanShah-Supervisor

Salespersonnel

HameedShah-MM

AliGhani-Supervisor

Salespersonnel


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Action ProgramsElaine and all its variations will be introduced in June. Following are the

summaries of action programs we set out in order to achieve the targets.

1. MayWe will make sure we get a spot and book stalls for Elaine at the Expo,

which will be held in June. The sales staff will be at the stalls and other stores and

wholesale stores in order to explain to consumers and dealers, the advantages of our

product.

2. JuneIn June we will launch a product website capable of an online stores

ion collaboration with VeriSign securities. Our sales personnel, at various locations,

will market the online store. Facebook, Twitter, You Tube, Google, etc will also beused in major marketing through out the month.

3. JulyIn July we may divert our attention from Internet marketing to print

media marketing. We will distribute flyers and other newsletters with the information

about Elaine. We have also developed ads that will be published in the leading

newspapers in Karachi as well as other leading Fashion and Cosmetic themed

magazines being distributed in Karachi.

4. AugustWe will hold a fashion contest in Karachi where the winning prize will

be a modeling contract for a year by our channel partners from both print and TV

media.

5. SeptemberThis month we will increase our investment and prelaunch an

advertising campaign, but on TV/Radio media. We will develop other HD ads and

more investment will be there this month.

6. OctoberThe TV ad will be executed in this month and we will carefully plan

the ad to execute an ad in mood or image/ lifestyle/Personality symbol. The ad will

also be executed with the winner of the fashion competition.

BudgetsThe first year costs plus all the losses equal to 83 Million Rupees. So for the

breakeven to occur we may need 332,000 units to be sold, as our total cost on each

unit is Rs. 350. The first year sales revenue is targeted to be 180 Million

Rupees based on the average sale, of the three variations, to be 300,000. The second

year sales are targeted to be 500,000, generating revenue of 300 Million Rupees based

on the average of the three variations. So we have targeted to break even in the

beginning of the 2nd year.


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Controls We will be controlling the marketing plan and its execution through themonitoring of sales numbers that will be monitored on a weekly basis. We will also

monitor customer satisfaction and quality of our product. We have some contingency

plans also set up in case of any uncertain or trend change in the market.


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Bibliography:1. www.maccosmetics.com2. www.maybelline.com3. www.lusciouscosmetics.com4.

www.sallyhansen.com5. www.rimmellondon.com

6. www.alllacqueredup.com7. www.google.com.pk

All the material above you see is purely created by:

1. Ali Raza Syed 99632. Nabeel Ali Khan 120993. Zoha Aamer Khan 114844. Abdul Moiz Mughal 11540

Elaine Report

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