Professional Documents
Culture Documents
ASSIGNMENT
SUBMITTED TO
PROF. PINAKI GHOSH
SUBMITTED BY
Akhilesh Mishra (Roll no. 6)
Anumita Dash (Roll no. 46)
INTRODUCTION
The soap industry in India is at the high growth rate and many new entrants are
planning to launch their product in this category. The overall soap industry is
worth 60,000 crores. Prakriti Organics is a startup and targets at entire family
with their various organic soaps.
Tactical marketing tools, 4Ps, will be extensively used by our company to market
the products. The products are produced in India. There are 4 varieties of soap
based on skin type dry skin, normal skin, oily skin and for babies. Since the
demand for soap market is to a great extent oligopolistic, variations in price lead
to price war which can eventually break down the companys market share. Thus
Prakriti Organics cannot provide a better price than its competitors. But the price
is affordable by most of the people. Prakriti Organics will outsource its
distribution channel to third party distributors which allow them to distribute
product in massive bulks amounting to around Twelve thousand pieces. It
undertakes one of the largest promotional activities in the herbal soap industry.
The soap industry has a few major producers of which Hindustan Unilever holds
market share of 70%. Other competing brands like Godrej, P&G and Johnson &
Johnson have started to have a strong consumer base, but Prakriti Organics
product features, distribution and promotional activities will create high brand
loyalty for which it will be a strong market share soon after developing its IMC
plan. Prakriti Organics, with the aid of its heavy promotional activities and
unique feature of being herbal, will be able to penetrate the market. But other
producers in the industry are posing a threat towards Prakriti Organics market
share as they have moved towards the rural masses of the population. Prakriti
Organics is adopting niche marketing as we aim to target a particular segment
and gain their loyalty.
VISION
Being the benchmark of excellence in producing high-quality organic soaps.
MISSION
To produce organic soaps that are well-formulated, checked and tested.
The organic soaps must be really effective relative to what is being said on
its label.
The main objective of our company is to produce soaps that are not only
used for cleansing the skin but also for absorbing all the impurities
embedded in it.
Give the customers a perception of smoothness, calmness and relaxation,
which is what they will feel after they apply the product.
To establish the image of a health and wellness and environment-friendly
company.
CURRENT SCENARIO OF MARKET
Presently, Indian organic farming market is estimated at 2,500 crore.
With a steady annual growth of 40% on rising population, higher
disposable incomes and rising health consciousness, India's organic
(ASSOCHAM)
It has been a part of human nature to prefer healthier products with lesser
preservatives and synthetic materials added.
Organic farming can create millions of jobs in the agricultural sector as
it can spur over 30 per cent of employment per hectare as against nonorganic farming and this ratio can further increase if on-farm processing,
value addition, packaging and direct marketing are considered, says an
independent research of ASSOCHAM.
SIZE OF THE INDUSTRY
The Indian Soap Industry includes about 700 companies with combined annual
revenue of about $17 billion. Major companies in this industry include divisions
of P&G, Unilever, and Dial. The Indian Soap Industry is highly concentrated with
the top 50 companies holding almost 90% of the market. The market size of
global soap and detergent market size was estimated to be around 31M tonne in
2004, which is estimated to grow to 33M tonne in the coming years. Toilet soaps
account for more than 10% of the total market of soap and detergents. In Asia, the
countries like China and India are showing rapid growth in the toilet soap
section. Market share of body wash was estimated to be around 2% in 2004 and
is showing signs of healthy growth in these markets. India's soap market is
41.75 billion.
Indian Soap Industry volume is 4,800-crore. For the purpose of gaining a
competitive edge, Indian companies are now re-launching their brands with
value-additions to attract the consumers to purchase their products across India.
MARKET TRENDS
Worldwide compound annual growth rate (CAGR) in 2005-2008 was
observed as 2%.
The forecast for 2010-2015, the soap production would increase especially
in the US (First Research, 2008).
The growth will also happen in Asia with a total of 50% of the global
demand. South-East Asia has a huge potential to grow further.
In South Asian countries, 4.2% CAGR was recorded between 2004 and
2009.
MARKET CAPITALIZATION
Today in the Indian economy the popular segments are 4/5ths of the entire soaps
market. The penetration level of toilet soaps is 88.6%. In India, available stores of
soaps are five million retail stores, out of which, 3.75 million retail stores are in
the rural areas. 70% of India's population resides in the rural areas and around
50% of the soaps are sold in the rural markets.
COMPETITORS
Major Competitors:
HUL
P&G
Godrej India
Johnson & Johnson
Patanjali
Fiama d wills
SWOT ANALYSIS
Strengths
Weaknesses
No age restriction
all consumers
Opportunities
Threats
New Entrants
Local competition
MARKET SEGMENTATION
According to
Age
Gender
Income levels
Frequency of purchase
Skin type
Geographical location
the market is consumer of varying ages, but as the major self-sufficient user, 2040 age group should be the prime target segment.
SPARSH is not a highly expensive but an affordable product. That is why the
company targets urban and sub urban upper middle and middle class people who
are the second highest population of segment of the country.
From the
Common Elements are Saponified Organic Oils of Palm, Coconut, Olive and
Palm Kernel.
Differentiating Elements are Aloe Baby Soap: Natural Lavender Essential Oil Blend, Organic
Lavender Oil, Organic Aloe Vera, Organic Rosemary Extract.
Dry Skin Products: Unscented Cocoa Butter, Organic Cocoa Butter,
Organic Powdered Oatmeal, Organic Aloe Vera, Organic Rosemary
Extract.
Oatmeal Lavender: Natural Lavender Essential Oil Blend, Organic
Lavender Oil, Organic Oatmeal, Organic Rosemary Extract.
Oily Skin Products: Balsam Pine, Balsam Essential Oil Blend, Organic
Rosemary Extract, Mineral Pigment.
Natural Skin Products: Woodspice Natural, Woodspice Essential Oil
Blend, Organic Cinnamon, Organic Rosemary Extract.
Rosemary Herb: Natural Rosemary Essential Oil Blend, Organic
Rosemary Herb, Organic Rosemary Extract.
Taking into account the convenience of its customers, the company manufactures
all flavors of SPARSH in three different sizes, 40gm, 80gm and 120gm.
Price: Though SPARSH gives its customers a lot in terms of the product
itself, it will provide a better pricing in terms of competition. This is due to
competition with the beauty soap industry. Beauty soap is a product with a
high demand. Its prices are almost equal to its competitor. Company will
carry out research on competitors price and brand loyalty when it will feel
extreme necessity of changing price.
Organic soaps will definitely have a comparatively higher cost than the
cosmetic and beauty soaps.
All wrappers of Sparsh will have a star printed inside them. If the
consumer found written inside the star, any number from 1 to
5, he/she would get an equivalent discount (in rupees) on her
purchase from shopkeeper.
Online contests: Example, Please enter your name and email to play
the game. Play the supercharged version of the hit puzzle game,
Bejeweled. Create rows of 3 or more identical stones and you could
win a trip for two to a five-star Resort in Goa.
Public Relations: Not only must the company relate constructively to
customers, suppliers and dealers, it must also relate to a large number of
interested publics. A public is any group that has an actual or potential
interest in or impact on a companys ability to achieve its objectives. PR
involves a variety of programs designed to promote or protect a companys
image. SPARSH PR Activities:
Press relations: Sparsh will be maintaining constant communicating
with its customers and potential customers, of the various
developments taking place in the brand by using press relations.
Events: Sparsh can also establish PR by sponsoring some of the
cultural activities and beauty contests in colleges of important cities
and towns.
Limited edition: Coming up with limited edition of the brand is also a way
of attracting attention towards the brand. It creates a buzz and a feeling of
urgency to try out the product and helps in promotion of the brand. This
strategy can also be implemented by Sparsh by bringing out limited
editions in future. The limited edition will be decided after analyzing the
trend post Sparsh soaps are introduced in the market.
Labelling: The SPARSH Trade Character or Logo is present prominently on
the package.
Packaging: The colors are different for different variants such as saffron for
the saffron variant etc. Along with the color various images and labels
depicting the product ingredients are also shown in the package. The bars
come in package sizes of 100g, 120g and 150g.
Point of Purchases: Usually the company goes for display in the stores
where it potential for its product. Different eye-catching decorations are
made inside the store and in the showcase for outside display. These
arrangements are made with the assistance of the sales people of the
company.
Advertisements: The message that the product reflects in its advertisements
is the one that is usually narrated by the corporate itself. Advertising is any
paid form of non-personal presentation and promotion of ideas, goods and
services by an identified sponsor. Ads can be a cost effective way to
disseminate messages, whether to build a brand preference or to educate
people.
Through
media
(newspaper/Magazine),
broadcast
media