Marketing Plan For

Cleopatra Beauty & Fairness Cream

Executive summary
Kohinoor group of industries is preparing to launch a new beauty and fairness cream name Cleopatra beauty and fairness cream in a mature market. Despite the dominance of fair and lovely, Ponds and other establishes brand, we can compete because our offering combines exclusive features at a value added price .We have identified that there is a huge demand for quality beauty cream in both national & international market .Initially we are targeting only the urban consumer mostly the female consumer. In future we have plan to introduce our product in both rural and international market . The primary marketing objective of the plan is to achieve first year market Share of 2% in the Bangladesh market and unit sale of 500000. The primary Financial Object is to achieve first year sales revenue of 1.6 corer taka.

Marketing Plan

. CURRENT MARKETING SITUATION

Kohinoor group of industries in Bangladesh have recently purchase a patent fairness beauty cream from a Bangladeshi scientist who had invented this formula 1 year ago and planning to introduce this produce with little modification to the consumer market. Despite, our product is going to launch in the mature market, the market is expecting a 27% growth within 5 years, if we combine our marketing mix efficiently and offer quality beauty cream accordingly the consumers needs.

Market Description: There are option for the company to launch the product to the local and international market .At first, we are targeting only the urban consumers in the local market .The population of our country is 15 corer and approximately 70% people in our country lives in urban area and among almost 45% are female and this 47250,000 core urban female consumers whom are very conscious about personal beauty and safety are our primary target.

Urban Dweller = 138448210 X 26% =35996534.6 Female consumer among the urban dweller = 35996534.6*45% = 16198440.57

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On the other hand , we have plan to divide this female market in some segments .We intended to divide the market according to the following segment able variable occupation , income , different age , life circle .Working class women , house wifes , teenagers , young lady , married and unmarried women will trite according to their needs and wants .

Competitive review: There is a huge demand for quality beauty cream in both national and international market and this site has huge growth & high profit potential in spite of vigorous completion. Large number of competitor are competing both from the national and international market and it has reduce price and forced the companies to continuous add feature. Some socialized cream such as anti marks cream producer are also could be a headache. But there is still demand for good quality beauty cream and consumer and consumer can substitute well at value or even high price if it satisfies there needs. The major competitor in the market are Fair and lovely who have some draw back but still is the market leader in this part of the market . Others are also fighting well are showing below in the table:

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Fair & Lovely

Product of Unilever & Market Leader absorb 75% of market share ,Good

Jordana

Distribution system , High Price International Brand Lack of awareness and promotion is

brand main

Ponds Nevia

problem. Product of Unilever, good distribution, high price. International Brand Lack of brand awareness and promotion is main

Tibbet

problem. Local Brand, low price, Doing well in rural market.

PRODUCT REVIEW:

Our product Cleopatra beauty and fairness cream will offer the following offers:
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Multi Color Pink White ,Lemon Multi Purpose #Night cream- Makes skin tight # Sun cream- ability to protect from sun (U.V)

50, 75, 100gm bottle/ tube. Deodorant Anticipative Optional A Mirror is Attached with the product Dark & light spot remover No Danger on skin DISTRIBUTION REVIEW:

A branded product will be distributed through a network of selected store and non store retailer in the market. Among the most important channel partners being contracted are: Retailers: We can use some retailers by giving push money & specialty advertising items. Superstores: Superstores like Agora, PQS, Nandan, Small retail store etc. will carry our product for a promotional fee. Company sells forces: Kohinoor group industry can engage their own sells forces for distributing their product.

SEGMENTATION

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Segmentation means dividing the market into distinctive groups of buyers on the basis of needs characteristics or behaviors of consumers. Segmentation can be done in four ways like Geographic segmentation, Demographic segmentation, Psychographic segmentation and Behavioral approach. Geographic segmentation: Region: city areas Demographic segmentation: Age: 13-40, but specially emphasis on age groups of 12-19, and 20-35. psychographic segmentation: Social class: middle class to upper class Behavioral segmentation: Benefits: Quality products Reading stage: Knowledge Attitude toward product: Enthusiastic and positive

TARGETING

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Initially for target the market we will go for women who are living in urban areas. In this case we followed geographic segmentation and the demographic segmentation as well. The causes behind of targeting urban women are First- The price of the product, as the price of this product is a bit high which is only affordable by the urban people. Because we all know that the people of urban are relatively rich then the rural people.

Second- Use of quality product, in this case urban people are more quality conscious than the rural people.

POSITIONING Positioning is the act of designing the companys offering and image to occupy a distinctive place in the target markets mind. Such as - to create awareness about the product. We have to position our brand Cleopatra beauty and fairness cream by the desire of the target consumer: Cleopatra beauty and fairness cream is a brand which is different from another beauty and fairness cream product. . In the positioning stage we are thinking about value proposition. Value proposition is the way where we reflect the core things what we are providing as per as the desire of the target consumer. So the positioning should be such where the core things will be reflected.

SWOT ANALYSIS Strengths

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Cleopatra beauty and fairness cream provides better quality and more quantity than any other brand in the market with a very conspicuous brand name and package. Cleopatra beauty and fairness cream has a strong technical support.

Cleopatra beauty and fairness cream talks quality and gives quality to its customers. Cleopatra beauty and fairness cream has sufficient manufacturing plant with the capacity to meet the demand. Micro marketing remove spot in skin Make skin bright and tight. Safety from cold and heat Makes Looks fresh likes fruit. It follows a penetration pricing and thus offering More for less.

Weakness

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Cleopatra beauty and fairness cream does not have a strong financial back up.

Its mainly for female. Too much version Because of a diminutive budget, Cleopatra beauty and fairness cream does not have a strong distribution system. Therefore cannot penetrate the markets of rural areas.

Lack of brand awareness

Opportunity Huge Demand for quality beauty cream. The market is large in this business. Chance of introduce it in rural market & export it in international market in future. Could Lunch a new brand for male consumers. Few firms are following the promotion mix, especially they are lacking in sales promotion but in this case Cleopatra beauty and fairness cream is strongly following this strategy. Threats The market has become competitive in terms of number of competitors as well as possible entrants of some new companies. Consumers are exposed to ads given by some companies. Completion with established company such as unliver . 9

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Increasing raw materials cost plus oil cost. Economical condition of the country Lack of good distribution system.

OBJECTIVES AND ISSUES As our product Cleopatra beauty and fairness cream is a new product in the market. So we have set marketing objectives for this new product development process. It is designing initial marketing objectives for a new product based on the product concept. The marketing strategy consists of three parts. They are shown below-

Part 1: Describes overall:

Target market Planned product positioning Sales and profit goals Market share

Part 2: Describes first year

Products planned price Distribution Marketing budget

Part 3: Describes long term

Sales and Profit goals Marketing mix strategy

Part 1: The first part describes the target market, the planned product positioning, & the sales, Market Share & the goals for the first few years. Thus: our target market is the women consumers of urban area of our country. We have chosen urban area because

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most of the women in urban area are conscious about quality product and they have sufficient ability to buy our product than rural consumer. . 1st year objective: Introduce the products: The Company would asses the market and then modify the products according the needs of the target segments. Build public awareness: In the first year the company would mostly focus on building public awareness about the necessity of hair products. Build brand image: The Company would also want to develop brand image of the company in the local market. Part 2: The second part of the marketing strategy statement outlines the products planned price, distribution & marketing budget for the first year:

With 5% offs the least price to dealers. Dealers who sell more than 2500 units per month will get an additional discount of 2% on each 500 unit sold that month. The advertising budget will be split 50-50 between a national media campaign and local advertising. Advertising will emphasize the product quality. During the first year we will spend budget on marketing research to find out who is buying the product and their satisfaction level.

Part 3:

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The third part of the marketing strategy statement describes the planned long run sales, profit goals, marketing mix strategy: Our company will intend to capture a 2% long run share of the total beauty and fairness cream market and will realize an after tax return on investment of 9% .To achieve this, product quality will start high and be improved over time. Price will be raised in the 2nd & 3rd years if competition permits. Long-term objective: Build public awareness: In the second year also the company would focus on developing public awareness of the company products. Build brand image: Further efforts will also be taken to strengthen the brand image of the company. Develop some market share: By the end of the year the company should be able to gain some market share. Evaluate marketing strategy: After the end of second period the company would have to evaluate the marketing goals and objectives and make required changes if necessary.

MARKETING STRATEGIES
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The development of marketing strategies for each business should be realistically tied to the target market. Our product is specially targeted to the educated and urban women. While planning for our marketing strategies we also kept in mind that when corporate resources are scarce and corporate strengths are limited, it is fatal to spread them across to many markets. Rather, these critical resources should be concentrated on those key markets (key in terms of type of market, geographic location, time of entry, and commitment) that are decisive for the businesss success. This portion of our plan will identify different aspects of marketing strategies that we are going to pursue:

MARKET STRATEGIES Marketing strategies deal with the perspectives of markets to be served. Instead of limiting business to one segment and thus putting all the eggs in one basket, we are going to serve several segments like housewives, working women and female students. We are basically going to focus on a national market. That we think will open up the opportunities for growth. But we are planning to acquire several important regions first like Dhaka, Chittagong, Rajshahi, Khulna and then we will compete nationally. As we are adopting the laggard strategy, entering the market toward the tail end of the growth phase, we will have to compete strongly with the established brands like ponds, fair and lovely. We want to effectively compete in the industry even with established firms by diligently delineating the markets to be served.

PRODUCT STRATEGIES
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Product strategies reflect the mission of the business unit and the business it is in. We are going to position our product by using marketing mix variables and by providing different features with the product. The difference will be clearly defined for our product Cleopatra beauty and fairness cream with the non-brand and other brand beauty and fairness cream through the values what it is providing. On the other hand, to match with the product market we will respond quickly according to our customers wants and demands. We will put the batch no, manufacturing date and the expiration date in the packet.

PRICING STRATEGIES

Basically, a price needs to review four factors to arrive at a price: pricing objectives, cost, competition and demand. Along with our pricing objectives, cost, and demand we will give emphasis on competitors price while setting our one. As beauty and fairness cream market in our country comprising a large number of active firms like ponds, fair and lovely, the competition is fierce. On the other hand, among the two principal pricing strategies, skimming and penetration, we are going to adopt penetrating pricing that means our products price will be relatively low during the initial stage to penetrate the market quickly and deeply in order to attract a large number of buyers quickly and win a large market share. High price elasticity of demand of the beauty and fairness cream is another reason why we are adopting penetration strategy.

Gm
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Price Of Tube 14

45 gm 75 gm 100 gm

32 54 72

DISTRIBUTION STRATEGIES Distribution strategies are concerned with the flow of goods and services from manufacturers to customers. We are going to use indirect distribution channels means our distribution process will involve the use of different intermediaries such as wholesalers and retailers to reach the optimal number of customers in a timely manner at the lowest possible cost while maintaining the desired degree of control. Our channel strategy is to use intensive distribution to have our product Cleopatra beauty and fairness cream sold through each and every retailer stores of the country. Time to time we will also evaluate our channel-members based on their performance and will modify the process if needed. To resolve any kind of conflict, if arise, we will nominate any of our employee to act as a diplomat among channel members. We will also welcome the frequent formal interaction with the channel members to develop an appreciation of each others perspectives. Our channel will be like following: Cleopatra beauty and fairness cream Wholesaler Retailer Customer.

PROMOTION STRATEGIES Promotion strategies are concerned with the planning, implementation, and control of persuasive communication with customers. The first strategic issue involved here is
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how much money may be spent on the promotion of Cleopatra beauty and fairness cream. Cleopatra beauty and fairness cream should be used the Buildup Method. That is the company should have advertising, sales and sales promotion managers who would report to the marketing manager. The marketing manager would specify the objectives of promotion separately for the advertising, sales and sales promotion of each product. After defining the departmental objective, each department would work out a detailed budget which would later be evaluated and then approved by the marketing manger. This strategy allows the company to have more control over the promotion expenditure. Cleopatra should be used a combination of advertising and sales promotion as its promotional mix strategy.

ACTION PROGRAMS Cleopatra was a queen of Greece and a very famous personality. She was the one lady who first invented perfume for ladies. So our Cleopatra beauty & fairness cream belongs to the ladies only. We will launch our product on the Valentine Day, on 14th February. . Following are summary of the action programs we will use during the first six months of next year to achieve our stated objectives. JANUARY: In first week on January we will make an announcement on TV & Internet for the people, A new Beauty & Fairness Cream is coming soon only for ladies. The announcement will continue till second week. In third week we will give another announcement Girls Do you want soft and fair skin? A Fairness cream is coming soon only for you and it will continue to end of January. At this time we will shoot our first visual advertisement with a famous celebrity. We will begin Tk. 10, 00,000 trade sales promotion campaign to educate dealers, consumers & create excitement
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for the product. We will train some people about the product and make some groups, who will go beauty parlors and markets for the promotion. They will educate the beauty parlors workers and keep contact with the dealers. FEBRUARY: In first and second week of February before launching the product on 14th Feb, we will give some voluntary product on beauty parlors, colleges and universities. In this time we will educate our print and media partner about the product. We will start an integrated print, radio and internet campaign targeting the dealers and consumers. The campaign will show how the fairness cream helps to glow the skin in quick time of period without any side effect on skin, better and quicker than any other fairness cream available in the market. In first week of February we will show our first visual advertisement on TV, radio and internet. On 14th February we will arrange the launching party in a five star hotel. As the day is the Valentine Day we will arrange a beauty contest. We will find Miss Valentine from the launching party and we will give her a crown and price money and one year free contract of the product. MARCH: In March we will continue our multimedia advertising. We will Chose one or two famous female model or TV or movie actress, and bring them under the roof of our product, who will do promotion for the product. At the end of the month we will do a newspaper contest to know how our product is accepted to our consumers. We will ask Why you like the product write your opinion in hundred words and give a packet of the product and 100 lucky winners will get one year free product. APRIL In first week of April we will give the prize of the newspaper contest. In the middle of the April we will try to get title sponsorship of beauty contests like Miss
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Bangladesh If it is not possible we will start a beauty contest on any of the popular TV channel. The contest will continue whole April MAY: In the end of the may we will end our contest and give the prize to the winners. We will give them money and one year free product. We will give the first winner crown and bring her under the roof of our product. We will continue our advertising on print and television. JUNE: In June we will give our consumers some benefits to increase the sale again. We will give them offer like If you buy a Cleopatra beauty & fairness cream, you will get Kohinoor mini pack shampoo free. We will do a attractive advertisement with the winner of the beauty contest. In addition, we will mark & analyze the consequences of consumer satisfaction by surveys for future promotions & getting feedback of product. In the end of the June we will plan to produce a new version of the products with different features & flavors.

BUDGETS We have projected to sale 1.6 corer taka in the first year of our operation with an average whole sale price of 32 taka per unit taking 45 gm as base . Projected First Year Sales Marketing Plan

1.6 corer Tk 18

Projected First Year Sales in unit Variable Cost Fixed Cost Variable cost per unit Per Unit Whole Sale Price =

500000 8000000 Tk 6000000 Tk 8000000/500000 = 16 Tk 32 Tk

Unit Cost = (Variable Cost + Fixed Cost) / Unit Sales = ($8000000 + $6000000) / 500000 = 14000000 / 500000 = $ 28 We intended to earn a 13 percent mark up on sales.

Mark up Price = unit cost / (1 Desired Return on Sales) = 28 / (1 - .13) = 32.18 = 32 Tk Break Even = Fixed cost / (per unit sales price per unit variable cost) = 6000000 / (32 16) = 375000 units While designing budget planning, first of all we have selected the Television. Because our target consumers are urban women in this case, uses of television for advertise will be very effective. In terms of TV ad our media vehicle will be BTV, ATN BANGLA and CHANNEL I ..

COST OF TV ADVERTISEMENT: Our ad is a 20 second ad which we will show 2 X 30 X 3=180 times in three channels a month. The cost of displaying the ad in one transmission is given below: Average Advertising cost For the Three Channels: Just before NEWS20 seconds duration-8000 TK

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In mid break of any Program/Film-

20 seconds duration-

- 5000 TK

The ad will be displayed on the ATN for per month: So, the cost will be--42 times a week for 1 month: Total = 42 times X 4 weeks =168 times

1st week: (Just before NEWS) Total cost on 1st week = 7 times X 3 channels X 8000 =168000

1st week: (In mid break of any program/Film) Total cost on 1st week = 7 times X 3 channels X 5000 2nd week: (Just before NEWS) Total cost on 2nd week= 7 times X 3 channels X 8000 =168000 =105000

2nd week: (In mid break of any Program/Film) Total cost on 2nd week= 7 times X 3 channels X 5000 3rd week: (Just before NEWS) Total cost on 3rd week = 7 times X 3 channels X 8000 3rd week: (In mid break of any Program/Film) Total cost on 3rd week = 7 times X 3 channels X 5000 4th week: (Just before NEWS) Total cost on 4th week = 7 times X 3 channels X 8000 =168000 =105000 =168000 =105000

4th week: (In mid break of any Program/Film) Total cost on 4th week =
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7 times X 3 channels X 5000

=105000 20

Total cost for Television Advertisement :( 168000X4 + 105000X4) =109200TK.

NEWSPAPER ADVERTISEMENT: Our target markets are generally the urban women with sound income. Most of our target markets are educated & usually read newspaper. The main advantage of newspaper is the high degree of market coverage. It can cover a high area at a relatively low cost. We are going to give our ad in PROTHOM ALO because

Prothom Alo is the most read daily newspaper in our country. We are also going to give our ad in NAKSHA of Prothom Alo on Tuesdays.

COST For Prothom Alo per day cost is calculated as follows5 column (width) X5 (height) X 1000Tk For NOKSHA 3 column (width) X 3 (height) X 600Tk Per months Budget For PROTHOM ALO 25000 TK X 4 days (on Fridays only) For NOKSHA 5400 TK X 4 days (on Tuesday) Total News Paper cost = 21600 TK 121600 = 100000 TK =5400Tk = 25000Tk

CONTROL
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We are planning tight control measures to closely monitor quality and customer service satisfaction. This will enable us to react very quickly in correcting any problems that may occur. Other early warning signals that will be monitored for signs deviation from the plan include monthly sales (by segment and channel) and monthly expenses. We are planning to control our market by penetration pricing also we are planning to control our market by creative sales promotion.

CONCLUSION

From the analysis of the reporting it can be stated that the new portfolio is well set for the marketing environment of Bangladesh. The new brand will create a clear distinction with the competitors brands if it keeps its promise of quality. However there are some limitations. But given the opportunity of a good market for the product, promising returns on investments, corporate image of the company, strong liaisons of the company and willingness of the company to achieve goals, the limitations could be overcome. As investment costs are too high and Bangladesh lags behind in technology, so the technological environment actually creates some barriers for the new portfolio. But after the high investment costs there will be no emerging costs in the sector and also the market for the new portfolio promises good returns on investments. The new portfolio will increase the goodwill and corporate image of Kohinoor Group of industry. So weighing the future benefits it would be wise of the company to engage itself to the process of launching the new product.

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The tough competition in the industry seems to be a barrier for the new portfolio in general, but looking deep into the matter with wide views results in a positive feedback. The product is a premium one and none of the competitors are engaged in the premium market for the product, which actually makes the competition indirect. The competitors can create a threatening situation by making their way to premium beauty and fairness cream. However to stop the competitors from doing so the company has to use its strong liaisons to acquire a certificate of solitary production and distribution of premium beauty and fairness cream for at least a year from the government. So it can be concluded that the plan to produce and market premium beauty and fairness cream in Bangladesh by Kohinoor Group of Industry would be a revolution in the beauty and fairness cream industry and the plan would work for the company. References Kotler, P. and Armstrong, Gary (2006) Principles of Marketing (11th Edition), Prentice Hall India. Advertising and Promotion, G E Belch & M A Belch, 6th Edition. Annual Report-2005(Kohinoor chemicals Ltd.)

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