Marketing Plan for Revival

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Authors:Rameez Ahmed SiddiqiSirajuddin PerzadaMuhammad Yawar Yameen

28 Monday 2009

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1.Company overview ----------------------------------------- 03

2.Bio Amla Shampoo ----------------------------------------- 05

3.Steps in Repositioning market ----------------------------- 07

4.POPs and Bio Amla ----------------------------------------- 09

5.PODs and Bio Amla ---------------------------------------- 10

6.Market Segmentation --------------------------------------- 12

7.4P’s Analysis ------------------------------------------------- 14

8.SWOT Analysis ---------------------------------------------- 18

Table of Contents

Contents

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Acknowledgment

My First and foremost gratitude to Allah the Almighty for giving me the valor to remain

dedicated to make this first ever term report.

This underlying report is based REPOSTIONING AND REVIVAL OF BIO AMLA SHAMPOO with most knowledgeable help of our dearest Miss

Isma Zaigham.

In making this term report we collected the whole data from publications, internet and various

business magazines.

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Company Overview

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

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

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

Company Goals

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

To meet the International Quality Standards by adapting International Quality and Environmental Management Systems.

To expand our operations worldwide.

Company Focus To gain and maintain a market leader’s

position in the cosmetics market through high quality and reliable natural products.

To keep pace with demands of a rapidly changing market through constant research and development & investment in the training of our human resources.

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

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promoting nature as the reliable source of care & cure.

Company Strengths Innovation Reliability Leadership Ownership Passion for winning

Company Weaknesses Inferior Human Resource Development Consumer focus Lack of Marketing (Advertisements, Sale

Promotions etc) Lack of Technology

Market Share US$10 Million - US$50 Million  Annual sales

Leading Brands Bio Amla - A Herbal Hair Care Product

Range Bio Nikhaar - A leading Skin Care Brand

BIO AMLA SHAMPOO

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

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

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

Customers Decision ProcessShampoos are regarded as Fast Moving Consumer Goods (FMCGs) which means the buyer of Bio Amla shampoos don’t think a lot while purchasing it. Yet many external; factors help in the buyers decision process for example

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any perception in the mind of buyer about the product, any motivation through advertisements or any good or bad effect from buyers past experiences have a Negative or a Positive effect on buyers decision.

STEPS IN REPOSITIONING MARKET FOR “BIO AMLA SHAMPOO”

Bio Amla shampoo is the first ever herbal shampoo produced by Pakistan. The level and status of this product was huge when it first struck the markets of Pakistan, because the relative competitions in the 1980s were very much invisible. It strode of with great profits and tons of revenues till the 1990s when suddenly a huge number of Hair Care products entered the market. Bio Amla in all these years had not changed one bit, it did not launch

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any new product line nor did it change the outlook of its product and it kept on targeting the same two segments.

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

POP (Points of Parity) POD (Points of Difference)

Choosing POPs and PODs:

Points of Parity (POP) are associations that are not necessarily unique to the brand but may be shared

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by other brands i.e. where you can at least match the competitors claimed benefits.

Points of Difference (POD) are Attributes or benefits consumers strongly associate with a brand, positively evaluate and believe they could not find to the same extent with a competing brand.

There are three consumer desirability criteria for POD:

Relevance Distinctiveness Believability

There are three deliverability criteria for POP:

Feasibility Communicability Sustainability

POPS & BIO AMLA

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POPso Feasibility:

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

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

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

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by one customer might slip out of hands of Bio Amla.

PODS & BIO AMLA

PODso Relevance:

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

o Distinctiveness: The customers must find BIO AMLA distinct and one of a kind from all other shampoos. That is possible only when they management point out there biggest strength that this is a unique pre planned high intake herbsol solution for hairs. The

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recent development of a shampoo named HERBAL ESSENCE in the market is taking away consumers of Bio Amla but that doesn’t means to quit instead they should take it as a new opening and tackle it willingly.

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

Bio Amla has what it takes to be a leading brand in the nation but all it needs is support and trust which also should be gained by Forvil Cosmetics themselves. If we see the PRODUCT LIFE CYCLE STAGE of Bio Amla it is clear that it exists on the level between GROWTH & MATURITY. Which means it should buckle up and start taking things seriously

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MARKET SEGMENTATION FOR BIO AMLA

Segmentation of BIO AMLA is done under many different ways. Geographic, Demographic, Psychographic, Behavioral segmentation.

Geographic:o Country:

BIO AMLA SHAMPOO

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Pakistano City:

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

o Density: Urban and Sub urban

Demographic:o Age:

6 years - 65+ yearso Gender:

Male and Femaleo Family Life Cycle:

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

o Income: Above 10,000 Rs

Psychographic:o Social Class:

Upper Lowers, Working Class, Middle Class, Upper Middles and Lower Uppers

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o Life Style: Culture Oriented and Outdoor Oriented

o Personality: Compulsive and Gregarious

Behavioral:o Benefits:

Quality, Service and Economyo User Status:

Non User, Ex-user, Potential user and Regular user

o Loyalty Stage: Medium and Strong

o Usage Rate: Medium user and Heavy user

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

4 P’S ANALYSIS

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

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

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

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Pricing:Bio Amla claims to practice value-based pricing in which the customers “perception of the product” price provides a starting point for developing the marketing mix of the product. The research department determines this price usually by using focus groups. The price of RS 3 for Bio Amla

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shampoo sachets shows how the price also reflects a concern to make the purchase more convenient, since the rupee is detonated in this value.

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

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

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Positioning:Bio amla works on small bases but has a huge stamina to tackle its competitors through PROMOTIONAL ACTIVITES. The main core Advertising Objectives of Bio Amla are:

To increase the usage Makes the hair appear clean and shiny Imparts a feeling of freshness due to

fragrance Easy to manage silky and soft hairs Unique shampoo for every hair type Effectively communicate brand promise

Advertisement Objectives:The advertisement of Bio Amla follows the smile approach that is:

S - SimpleM - MemorableI - Interesting with relative informationL - Linked to BrandE – Emotionally involved and liked

A product’s particular advertising strategy also depends on the level of competition involved with each product. For example when Pantene and

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Sunsilk entered the shampoo market they promoted the shampoo’s functional benefits, which greatly appealed the consumers. Bio Amla seeing this trend changed its advertising strategy so that their advertisements also promoted the shampoo’s functional benefits.

SWOT ANALYSIS

SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective.

This analysis will clarify that how well Bio Amla drops down in Pakistan.

Strengths

Forvil Cosmetic’s Bio Amla is one of the largest organizations of Pakistan

Company has advanced technology and well skilled professionals

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The new Bio Amla is a high quality product in terms of hair protection.

The target market is educated, and belongs to middle to upper class.

Company’s totally owned, systematic distribution network, transparent communication system.

Participative management style. Very good distribution network all over

Pakistan in all major and small cities.

Weaknesses

Competitor has string promotional activities. Imported brands are also available in market. Customers are offered better alternatives by

the competition. Lack of knowledge of the product in the mind

consumers. Considered as the “Shampoo for the Poor’s”. No creativity. Less financial support.

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Opportunities Population expanding at a rapid rate. Consumers are becoming savvier. Current capacity utilization is 60%, which can

be further broadened with the increase in demand.

Customer base is increasing with effective marketing.

Baby shampoo is another area where Bio Amla can make huge gains.

Shampoo plus conditioner is another area where Bio Amla can earn huge profits.

Threats Political and economical factors. Partial Government policies. High rate of competition. Local and Foreign competition. Smuggling via Afghan Trade Transit is one of

the biggest hurdles faced by Bio Amla. Supplies form Indonesia and Thailand is

another important issue.

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