Perla Soap Presentation

Marketing Plan of an FMCG Product (Soap)

la Perla'Your Skin Specialist

Group Members(Institute of Business Management CBM)

1. Jamshed Amjad 2. Ahsen Anis 3. Shirjeel ur Rehman 4. Aqeel Ashraf

Introduction of Companyy PEARL INDUSTRIES LIMITED is established in July 2010y Committed to the highest standards y The company carries out its business in the utmost ethical and behavioral standards y Member of different trade bodies, associations and organizations

VALUE CHAINy Import of Quality Raw Materials to buy the best quality

ingredients

Fats from Australia Fragrance from Holland Coconut oil from Malaysia Processing materials from certified local importers

y Well managed & Strong Distribution network y Warehousing available all over Pakistan in major cities like

Karachi, Multan, Lahore, Rawalpindi, Peshawar.

y Availability of enough stock to avoid any demand & supply

gap

la Perla' Value Delivery NetworkCertified Halal Fat From Australia Certified Fragrance From Holland Certified Peach Milk From Australia

PLANT

WAREHOUSE

DISTRIBUTION

WHOLESALER

RETAILERS

CONSUMERS

Consumer Buying BehaviorHigh Involvement Low involvement

Significant Differences Between Brands Few differences between brands

COMPLEX BUYING BEHAVIOR DISSONANCEREDUCING BEHAVIOR

VARIETY SEEKING BUYING BEHAVIOR HABITUAL BUYING BEHAVIOR

Consumer Buying BehaviorThe buying behavior for la Perla' is VARIETY SEEKING, because it is not an expensive product and therefore users can easily switch from one brand to another. As well as there is significant brand differences exist like soaps for natural skin care, anti-bacterial soaps etc.

la Perla' focus on Factors influencing Buying BehaviorCultural: ySocial Class: Upper middle and Middle class Personal: yLife style: Believers who are conventional and traditional, favoring familiar products(such as natural ingredients) along with value being delivered. yPersonality & self Concept: Conscious about Skin, about looks and healthy glowing skin.

Psychological:yMotivation: maximum skin care with least after effects

as provided by natural ingredientsyBeliefs & Attitudes: in Pakistani environment strong

association exists with natural or herbal products with positive attitude.

The Stages in Buying Decision Process of la Perla'1

Problem / Need Recognition Search for a product Evaluation of Alternatives Purchase Decision Post Purchase Behavior

2

3

4

5

Consumer Adoption ProcessConsumer Adoption ProcessAwareness Awareness Interest Interest Evaluation Evaluation Trial Trial Adoption AdoptionSlide 94

Strategy

Communicate Availability Communicate AvailabilityStrategy

Communicate Benefits Communicate BenefitsStrategy

Emphasize Advantages Emphasize AdvantagesStrategy

Motivate Consumers Motivate ConsumersStrategy

Ensure Satisfaction Ensure Satisfaction

COMPETATIVE STRATEGYMain Competitors (Leader) ySafeguard & Capri (Challenger) yPalmolive (Follower) yPears (Nicher)yLux

COMPETATIVE STRATEGYy Company will follow Market Challenger Strategy to

compete and attack its competitors.y The main competitors of la Perla' are LUX, Safeguard

and Capri.

Market Challenger Strategyy la Perla' will differentiate itself by

positioning it as Natural Skin Care. On the basis of differentiation and positioning, la Perla' will compete with LUX and various other soaps. y In order to compete, the firm launched la Perla' with a splendor image of a young and freshuser.

Market share of CompetitorsMarket share of various soaps (data collected through survey of 15 wholesalers and retail outlet) are: yLUX 45% ySafeguard 25 % yCapri 12% yPalmolive 8% yMiscellaneous 10 %

Key Strategy DriversyCompany would worked on identifying new

geographical and segmental spots where company can reach before its competitor. This will be done mainly with the help of distributors who assist the company invading new geographical segments.

Key Strategy Deriversy A new segment that was identified by the company

was concerned about the skin hence asking for one solution for all skin problems; plus the increasing awareness of natural ingredients made the company launch la Perla'.

By pass strategyy The company will adopt By pass strategy to attack its

competitors by improving, innovating and launching new products. y Threat: Keeping in view the strategy adopted by la Perla', LUX can reposition itself on soap functions (like skin renewing, sunscreen etc.) rather then positioning on skin types.

Flanking Strategyy Flanking Strategy is another area where company

would strengthen itself by identifying shifts in the markets segments and filling in gaps. For example, when there is a shift in the preferences of people, they first use to prefer soaps on skin types or soaps made of natural ingredients.

Flanking Strategyy At present, Lux is the market leader while la Perla' is a

challenger so it should increase advertising budget and focus on creating product s awareness. This would help it in the long run as done by Safeguard, which is a follower, has started focusing on these ground and if proper and timely attention would not be given by la Perla', Safeguard might seize its major share.

Persuasive Advertisingy Although the target market is young female but the

role of influencers should never be underestimated. As the decision makers of soap are basically mothers, the company may go for persuasive advertising where a girl forces her mother to purchase la Perla'.

Segment-by-segment invasion plany Since Lux is 3 times stronger, la Perla' should not

directly attack Lux. The company may go for segmentby-segment invasion plan through which it target its weakest competitor first and so on.

Segmenting , Targeting and PositioningSe me t Mar eti Micro Mar eti

la Perla' SoapMass Mar eti Niche Mar eti

Variables for la Perla'y The company has segmented the large market of

Pakistan into Major segmentation; variables for la Perla' are, Geographic Segmentation:y Cities: All cities of Pakistan y Density: Urban

Geographical Urban 32.5

Population in Thousands Urban Proportion Average Annual Growth Rate(19811998) Population 15 - 64 Years (%) Population Under 15 (%) Estimated Population in 2012 in Thousands

Rural

67.5

Region Wise Pakistan NWFP* FATA# Punjab Sindh Balochistan Islamabad

Population in Thousands 132352 17744 3176 73621 30440 6566 805

Urban Proportion32.5 16.87 2.7 31.27 48.75 23.9 65.7

Average Annual Growth Rate(1981-1998)2.69 2.82 2.19 2.64 2.8 2.47 5.19

Population 15 - Population Estimated Population 64 Years (%) Under 15 (%) in 2012 in Thousands53.09 49.79 24.3 53.46 54.47 50.81 59.4 43.4 47.2 25.9 42.52 42.76 46.67 37.9

175075 23749 4011 96944 40668 8512 1306

Demographicy Age: Teenagers y Gender: Female. y Family Size: 5-7 people in a household. y Family life cycle: Young, Single, Married y Income: Above 15000 per month y Occupation: Housewives, Professionals

and Students. y Education: Secondary standard & above

Behavioraly Occasions: For regular everyday use. y User status: First time users, Regular user, Potential

user. y Usage rate: High users y Loyalty status: Medium y Attitude towards the product: positive

y Benefits: la Perla' has also been segmented on the

basis of benefit it is giving to consumers as it is providing a natural skin care for its target audience.

Concentrated Marketingy The company uses Concentrated Marketing by serving

two segments i.e. geographic and demographic segments together.

Product Specializationy Company will be selling la Perla' to two different

segments, geographically and demographically segmented. The idea behind product specialization strategy is to create a strong reputation of la Perla' for Urban females of Pakistan.

POSITIONINGy The challenge today the companies face is how to

position itself within each market in a focused and meaningful way and to establish a specific image in the mind of the consumers without clouding the perceptions towards the product.

Positioning Statement

y Beyond Skin Care A Natural Skin Care

PositioningHigh Quality High Price

Medium Price

Medium Quality

Differentiationy Customer perception does not always occur at the

conscious level. If you ask a customer why he or she bought a product, they usually give a rational answer. But, feelings about products are not easily articulated. They are emotional, and based on a relationship. Marketing research is a device we use to probe into the sub-consciousness to uncover what is driving buying decisions.

Pr

ct iff r tiati

Form Features Quality

la Perla' Sensitive is available in 2 sizes i.e. Standard and Bath sizes which is 90g and 135g respectively.

la Perla' can be differentiated on the basis of its ingredients as they use HALAL , Coconut Oil, Fragrance, which often is costly for them.

la Perla' can also be differentiated as the only locally manufactured product that is competing with the International Brands like Lux by Lever Brothers, Safeguard by P&G etc.

Differentiation On The Basis Of Benefitsy la Perla' has differentiated itself on the basis of

benefits as well. la Perla' is a NATURAL SKIN CARE for skin. There is no other soap available in market made particularly for skin out of natural ingredients.

Image Differentiationy There is a natural tendency of human beings to

respond differently to different brands and images, therefore, most companies try to concentrate on image building. An effective image does three things:

la Perla' Image DifferentiationEstablishes product character and value proposition It conveys this character in a distinctive way so that its positioning does not get confused with that of competitors

It delivers emotional power

Pr

ct lassificati

y la Perla' is LOW INVOLVEMENT product. It is

classified as a convenience good in the category of consumer product, which consumers buy immediately and with minimum comparison and buying efforts

Levels Of ProductFive Product LevelsPotential product Augmented product Expected product Basic product Core benefit

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la Perla' Levels Of ProductCore Product Basic Product Ex ected Product Augmented Product Potential ProductFundamental service/benefit the customer is really buying. Consumers want to have a clear, fresh, glowing, soft and supple skin.

By Basic means what the product actually is. la Perla' is beauty soap with natural ingredients suitable for all skin types.Set of attributes/ conditions buyers normally expect when they buy the product. Consumers look for a bar that is not very hard, easy to hold, convenient grip, gives a foamy wash and does not melt easily What exceeds the customer s expectations in how they obtain, use, repair, and dispose of the product (consumption system). la Perla' is a product offering value to the consumers by coming up with a unique soap with Peach Milk for sensitive skin It encompasses all possible augmentations/transformationsthe product might undergo in the future

Market ProfileCompetitors Market Share

LUX A GUAR PALM L VE M ELLA E U

Market Profiley la Perla' s major competitors are Lux and

Safeguard. Lux has the largest market share of 45% as shown in the chart. Lux offers a variety of soaps to match all skin types (dry, oily, normal). y la Perla' s second largest competitor is Safeguard, which takes about 25% of the total market share. It is an anti-bacterial soap offered in 3 colors (white, pink and green)

Line Stretchingy The company is having a vision of introducing the few

more products after the growth of the la Perla' . y This Line stretching will lead the company to target the remaining segments of the market

Line StretchingTwo-Way Product-Line StretchEconomy High Standard

Quality

Good

Superior

Price

Above average

Perla Aloevera Perla Sensitive Perla Rose

Perla Classic

Average

Low

Product Life cycley The company will keep an eye on the product life cycle

of the la Perla' soap.y The strategies have be changed if there is a variation in

expected and actual product life cycle.

BRANDINGAttributes Benefits Values ulture Personality userSoap containing natural goodness of Peach Milk that is ideal for sensitive skin. Keeps skin smooth, supple and fresh resulting in a healthy, beautiful and younger looking skin. Your skin is precious and sensitive it needs a special natural care Elitism (la Perla' means Pearls, a natural antiseptic)

A beautiful young girl with a sensitive and beautiful skin

Girls in their teens - college and university going females

Branding Decision

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Use ra a e

Separate a ily a e

ra Spo sor Decisio

ra Strategy

ra epositio i g

Packagingy la Perla' is carefully wrapped in a butter paper, which

then in turn is packed in a small cardboard box. The butter paper symbolizes the special care product for special individuals whereas the cardboard box helps to occupy more shelf space thus attracting more customers.

PricingTo maximize market share To create product quality leadership.

Pricing StrategiesGoing Rate Pricing Perceived Value PricingAs in the mind of consumers, Lux gives the superior value for their money, and in no way consumers will pay extra money for any other locally manufactured soap; as well that Lux has created a price ceiling for soaps industry, hence la Perla' cannot charge more than that of Lux, and the firm has to shape its cost and other offers according to the standards set by Lux.

where price speaks about the quality of la Perla' Sensitive. la Perla' Sensitive has been positioned as a high quality soap and to maintain this image in the minds of consumer s, price of la Perla' cannot be set low

Marketing ChannelsOne-Level Channels Two-Level Channelsto some important and strong retailers, goods are delivered directly by the manufacturer. Each week a representative of company is being sent to the retailers outlet where he analyzes the demand situation and sends inventory accordingly

Goods are distributed through wholesalers to places where company cannot reach itself.

Services Provided By DistributorsDISTRIBUTORS Distributor A KHI Distributor B KHI Distributor C KHI TERRITORY PECHS, Mohammad Ali Society, KDA, Saddar Garden, Soldier Bazar, Jodia Bazar Gulshan-e-Iqbal, FB Area, Karimabad, North Nazimabad, Azizabad Multan Lahore Rawalpindi, Islamabad

Distributor D MUL Distributor E LHR Distributor F ISB

Media Use for CommunicationTelevision Radio Magazines Billboards Newspapers

THANKS

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