8/8/2019 Soul Marketing Plan
1/23
Presented By
1
8/8/2019 Soul Marketing Plan
2/23
EXECUTIVE SUMMARY...
The purpose of the report was to submit a marketing plan for a new product that is to be apocketsize perfume named as soul. We are in the business of fashion since 1992 and
our product line includes worlds best fragrances, cosmetics and jewelry. We believe in
innovations and style. Now we are planning to launch a unique product that will be oneof its kinds to be introduced in Pakistan. This report contains a complete marketing plan
to launch that product.
SOUL is a pocketsize perfume with unforgettable fragrance, beautifully presented in
different shapes of unbreakable bottles. The unique feature of this product is that userdoesnt have to apply it every time. Rather it will automatically give a fresh smell round a
clock. Users just have to keep it with them. Moreover this product is unique in the sense
that it will be available in lovely shapes so that it could be used as a pendant or a keychain. This product will be available in three different fragrances, I-e Dusk (strong), Mist
(moderate) and Woods (light), 2ml in volume.
There were many reasons for choosing this product. One is that we did not face any
specific problem throughout our marketing survey, which is very unusual. Therefore our
expectations are high. We have targeted all loving and fashion cautious people of both
gender, belongs to any social class.
We will initially launch our product in Karachi, a famous city, to see the public response.
Itll come under question mark at introduction stage as the growth will be high and
market share will be low at that phase. Lot of cash would be required to hold the marketshare but we could expect from research analysis that it will soon build into star.
I expect this report to deliver the value information and along with this I look forward to
have those precious comments of yours on this meager effort of mine in writing a
marketing plan.
2
8/8/2019 Soul Marketing Plan
3/23
INTRODUCTION
Founded in 1992 in Pakistan, ESSENCE Co. has grown over 10 years of business
establishing itself as one of the leaders in fashion business covering product range offragrances, cosmetics and jewelry.
We at Essence handle marketing and administration, with offices in various cities. Puttingtogether state-of-the-art technology by the creative staff and advanced innovations, the
company creates made-in-Pakistan products characterized by an unbeatable quality/price
ratio.
We believe in continuous innovation and improvement to compete in a challenging
market. We have developed many creative concepts for our wide range of products. Our
know-how and the excellent qualifications of our technicians, help us in anticipating and
understanding the market trends and ideas of our customers.
Our customers are our asset, thats why we strongly believe in maintaining outstandingcustomer service, fine quality product and our commitment to give style. Customer
service is and always will be number one priority. Therefore treating customers with the
utmost courtesy and respect they deserve.
3
8/8/2019 Soul Marketing Plan
4/23
MISSION STATEMENT
We are in the fashion business providing fresh fragrances, cosmetics and elegant jewelry
to our valuable customers. We guarantee value for money. Our products are fresh, young
and romantic meant for all fun loving and fashion cautious individuals. Our people areour assets. We work as a team geared towards delivering the best to our customers.
4
8/8/2019 Soul Marketing Plan
5/23
VISION STATEMENT
We provide the best fragrances worldwide and enable people to feel fresh, smart andconfident about them selves.
UNIQUE SELLING PROPOSITION
Today people are more conscious about themselves as the world is moving towardscompetition. They want style, they want choice, they want something unique, something
different that attract people and above all they need convenience, ease
Yes! The above statement is correct. With increasing competition where each day new
products are introducing, businesses cant live without USP or something unique abouttheir product. What we are going to introduce is not just a pocket perfume but something
more.
Like traditional perfumes or body sprays consumers dont have to apply it again andagain. Just keep it with you and a fresh cool fragrance is always there where you are.
Moreover it will be available in beautiful shapes like heart, bullet, ball and you can use itas a pendant or make it a key chain or keep it in the pocket, purse or wallet thus providing
a more value for money.
5
8/8/2019 Soul Marketing Plan
6/23
SWOT ANALYSIS
STRENGTHS:
High quality product at a low prize (quality/value perspective)
A unique product -- fragrance in the shape of jewelry
Easily affordable by consumers
Easy availability
Easy to carry as it is pocket size
No gender restriction with respect to the use of the product
Durable product due to the packing Diversified product offering with respect to fragrance
Leak proof unbreakable container
Beautifully designed attractive shapes
Unforgettable fragrances
WEAKNESSES:
Low awareness
Short life as the size is small
Limited product line
6
8/8/2019 Soul Marketing Plan
7/23
OPPORTUNITIES:
Company can extend their product line by introducing new products in the samecategory
By implementing a pull strategy, brand name can be created
The increasing population of the country presents a ready and growing market for this
economy
There is an increasing trend among people to try new and unique products
Changing social values also present a host of opportunities for the product and hence
resulting in changing buying patterns of consumers
There are for greater number of media channels and programs today through which
the product can be advertised effectively
The presence of a large export market is also an opportunity With increasing literacy levels and media consciousness there is a growing demand
for quality product can be advertised effectively.
The presence of a large export market can also an opportunities.
There is a growing demand for quality products.
The market is dynamic.
Multiple distribution channels can be used.
THREATS:
Imposition of 16% GST by government and inconsistent politics may result inincrements of product prices hence decreasing the demand.
The biggest threats are from fake and smuggled items being offered and hence
increment in competition.
A lack of initiative by retailers might be observed
The same fragrance may feed up people.
Competitors may copy our product and hence competition may arise.
7
8/8/2019 Soul Marketing Plan
8/23
MARKETING OBJECTIVES
To provide the best quality products to the consumers in order to create brand loyalty.
To obtained a 15% sales growth in the next three years
To expand our product offerings to other major cities i.e. Lahore and Islamabad
within next 1 year.
To provide customer satisfaction at its best.
To create an image of the product coinciding with the identity.
8
8/8/2019 Soul Marketing Plan
9/23
MARKET SEGMENTATIONMarket segmentation is the process of dividing a market into various segments.Segmentation is carried in accordance with geographic, demographic, psychographic and
behavioral variables. Our study of market segmentation is as follow.
Geographic segmentation
Geographic segmentations call for dividing the market into difference geographical
units. We have decided to initially market our product in Karachi. We will offer ournew product in Lahore and Islamabad in the near future.
Demographic segmentation
Demographic segmentation calls for dividing the market into groups based on:
- Age: 13 years and above
- Gender: unisex
- Income: Rs. 10,000 p.m. and above.
Psychographic segmentation
Psychographic segmentation calls for dividing the market into groups such as,
- Social Class: we are basically targeting lower and middle class this product is
for the upper class as well.
- Life Style: all fragrance lovers/addicts
- Personality: fun-loving people.
Behavioral Segmentation
Behavioral segmentation calls for dividing a market into groups on consumersknowledge, attitude on a response towards products. The variable related to ourproduct is as follows.
- Activities: sports, socializing, partying, studying, shopping.
- Interests: recreation, fashion, opposite sex, traveling.
9
8/8/2019 Soul Marketing Plan
10/23
- Opinions: about them selves, about social issues, substitute products.
MARKET SEGMENTATION STRATEGY
We are following an undifferentiated strategy as we offering our product to all the socialclasses and following a mass marketing approach.
Undifferentiated Strategy
TARGET MARKET
People of all ages, belonging to any social class and possessing whatever gender.
10
Marketingmix
Lower class
Middle class
Upper class
8/8/2019 Soul Marketing Plan
11/23
PRODUCT POSITIONING
The secret of feeling cool and fresh
This positioning statement stresses the fact that this product will give the consumer afeeling of freshness and coolness it also gives a view that this feeling will last on and on.
We are positioning our product on the bases of:
Product: New fragrance with completely new design and features Image: The company has image in the market and on the basis of which we can
create brand name of this product that would be SOUL
MARKETING MIX
PRODUCT
CORE PRODUCT
Soul is the first of its kind product. It is a pocket size perfume containing the most
appealing fragrance. It come in the category of consumer products because consumer
purchase it for their own personal use. It is a convenience product. It gives the
feelings of freshness.
ACTUAL PRODUCT
- Size: 2 inches
- Volume: 5 ml
- Shapes: bullet/ heart/ round
- Odour: dusk (strong); mist (moderate) & wood (light).
AUGMENTED PRODUCT
Apart from an excellent quality product, soul is augmented with free testing at various
consumers stores. This is being done in order to attract the target market and
consequently people who are not targeted will also end up buying the product, as theywill be attracted to the augment attached to the product.
11
8/8/2019 Soul Marketing Plan
12/23
PRICE
PRICING STRATEGY:
We are using market penetration strategy as our product offering is based on the mass
marketing concept in order to make it easily affordable. In this way we will penetratethe market by using a pull strategy. We will increase our total revenue by selling
more units at a low per unit selling price.
PRICE:
(Rupees)
Retail price exclusive sales tax 105.00Sales tax @ 16% 16.80
Consumer price 121.80
Selling price 122/-
PLACEMENT
CHANNELS:
We will use indirect channels to perform functions related to buying or selling the
product to make it available to the final user.
DISTRIBUTION NETWORK:
12
8/8/2019 Soul Marketing Plan
13/23
The distribution channel consist of distributes and retail which will act as middlemen
in between the manufacturer and the consumers/customers. The product will bemanufactured at the Karachi factory situated at S.I.T.E. from there; the finished
product will be transferred to the factory center ware house. The distributors will
place their orders for distribution to various retailers in the city.
These retailers consist of chemist shape super market, general stores, utility stores,
cosmetics stores and other potential markets from here the product will reach the finalconsumer. The main idea behind using an effective distribution network is to make
the product accessible to the consumer conveniently.
13
Distributors
Retailers
Consumers/customers
Manufacturer
8/8/2019 Soul Marketing Plan
14/23
PROMOTION
We will pull strategy. We will advertised and promote our product via print andelectronic media. As we will provide free testers at different retail outlets in order to
increase the demand for the product.
Print Media:
Advertising:
As the product is being produced for the first time in the market, advertising will bethe only source for building primary demand. Advertising campaign through print
media like newspaper, magazines and brochures will launch for introducing andproduct and to create awareness.
Posters and bunting will be provided to the distributions and to the retail outlets.
Signboard will also be used.
Electronic Media:
Website:
A web site containing information and a free sample ordering form (online) will be placed.
The free sample will be available for the consumers of Karachi only.
The URL of the site will be ---- www.soul.com
Advertising:
We will advertise our product on PTV, ARY, GEO, and Indus vision and will
mention that this product is available in Karachi only. We will advertise on primetimeso that we can reach our target audience as much as possible. Besides TV, we will
also advertise on F.M 89; F.M 91; FM 96 and FM 106.20.
14
8/8/2019 Soul Marketing Plan
15/23
GROWTH STRATEGY
Companies need growth if they are to compete more effectively, satisfy stakeholders, andattract top talent. Marketing has the main responsibility for achieving profitable growth
for the company. One useful device for identifying growth opportunities is product-
market expansion grid, shown below:
From the above grid we can see that our product comes under Product Development area
as we are launching a new product to current market.
15
New
products
Existing
products
Existing
markets
New
market
Market
PenetrationProduct
Development
Market
development Diversification
Our
product lies
here
8/8/2019 Soul Marketing Plan
16/23
PRODUCT LIFE CYCLE
At the time of launch sales would be zero without any profit because of heavy expensesof product introduction. But the product is expected to grow as our company has image in
the market and we have got a positive response from people during survey. The expectedproduct life cycle is shown below:
0
Sales and Profit over the Products Life
PRODUCT COSTING
There are various costs that are related to any product being developed and these costs
must be kept a close eye on so that doesnt exceed revenues.
Description Cost per unit (2ml)
(Rs.)
Material 40.00
Labor 35.00
Applied factory overhead 15.00
Variable cost per bottle 90.00
Fixed cost per unit 5.00
Total cost per unit 95.00
Profit per unit 10.00
16
Losses--
Investment
Sales and
profits
Profits
DeclineMaturit
Growth
Sales
Product
developmentstage
Introduction
8/8/2019 Soul Marketing Plan
17/23
Selling price per unit
(excluding of GST)
105.00
BREAK EVEN ANALYSIS
Break even analysis is a cost oriented pricing approach and is also called target profit
pricing.
The company tries to determine the price at which it will break even or make the targetprofit it is seeking.
The formula applied to arrive at the breakeven point is:
B.E. units = Fixed Cost
P - VP = Selling price per unit.
V = Variable cost per unit.
The total fixed cost = Rs. 900,000/-
17
8/8/2019 Soul Marketing Plan
18/23
B.E. units = 2,700,000
122-95
B.E units = 100,000 units
This shows the volume of sales where the total revenues are equal to total costs and the
firm is incurring no profits.
ACTION PLAN
Marketing strategy should be turned into specific action programs that indicate what will
be done? When it will be done? Who is responsible for doing it? And how much will it
cost?
Action plan shows when activities will be started, reviewed and completed. We have
decided to launch the product in one-year time (approx.). Before that we have thefollowing things to be done.
Plant Location.
The factory shall be rented in the vicinity of site Karachi. It will be opened in a 500sq.
Yard area at first and then expended in the future.
Machinery and Equipment
Orders will place for the import of the machinery from India required for the productionof the product and other equipment like generators etc will be leased locally.
18
8/8/2019 Soul Marketing Plan
19/23
Registration:
All the legal requirements of formation of the factory and start of production shall be
finalized within 3 months.
Production:
Production will start in the month of March-2009.
Advertising Campaign:
We will use the previously mentioned electronic and print media for advertising. All their
campaigns will start in the end of April 2009. The start of the construction of web site
will start in the month of March 2009.
Availability Of Product In The Market.
This product will be available in the month of June 2009.
WORK PLAN:
19
8/8/2019 Soul Marketing Plan
20/23
Details Dates/allocated days
Project Assignment 1st February, 2009
Pilot Survey 2 days
Debugging and Finalizing of Questionnaire 3 days Development of Survey plan 2 days
Actual Survey 7 days
Analysis of Data 3 days
Finalizing the Data 2 days
Feeding the Data into the Computer 3 days
Report Writing 7 days
Proof Reading 1 days
Submission Date 7th May, 2009
CONCLUSION
20
8/8/2019 Soul Marketing Plan
21/23
We studied all the conditions that would be essential for the introduction and production
of SOUL in Karachi. Based on a survey analysis and the product launching strategies we
conclude that the product is preferable in fast moving life of Karachi. There is a greatmarket for Soul as the population is increasing and people are becoming more attracted
towards quality/value offerings. The market has been segmented in accordance with the
requirements and marketing strategies have been developed in order to accomplish themarketing objectives. In the light of the previously discussed information, We conclude
that our product will prove feasible in the Karachi market and will provide a platform for
the company to earn revenues.
QUESTIONNAIRE ANALYSIS
We selected the working class, upper class and lower class as one potential market. Toget the feed back about the idea we have conducted a survey over 100 people from
different organization and places. We collected the data from this sample through
question naives.
This is a very new product to be introduced for the first time in Pakistan and the people
have shown an optimistic response about the product.
21
8/8/2019 Soul Marketing Plan
22/23
QUESTIONNAIRE
Q1 Do you use any sort of perfume and fragrance?
Yes No
Q2 Which of the following do you like?Deodorant Roll-in baby-oil
Cologne baby-splashes
Q3 What are the basic features considered by you while buying a fragrance?
High quality price easy available
Others (please specify)
Q4 What intensity of fragrance would you prefer?
Light strong moderate
Q5 What quantity would you prefer in a pocketsize perfume with respect to the given
price range?
2ml (rs-20-30) 6ml (rs-30-40)
8ml (rs-40-50) 10ml (50-70)
22
8/8/2019 Soul Marketing Plan
23/23
Q6 What type of packing would you prefer for this product?
Glass bottle. Plastic bottle. Steel body
Other (please specify)
Q7 What name would you like this product to be called?
Soul lures
Charisma Others (please specify)
Q.8 please specify any other thing that you consider will help add value to this
product.
23