SKINOLINE

Is the real problem of this cream related

to marketing or is it related to faults in
production?????
 KONZEPT GROUPE’S SIDE OF THE
STORY
Reasons for decrease in sales:
1. Low Quality Product
2. Product has no efficacy as per our positioning
3. The product doesn’t cover the entire state of Orissa.
4. Supply of product breaks off at time of need.
5. Low advertisement of the product.

Now analyzing the reasons, the main reason here is the product
has no efficacy as per the positioning.

It is worthwhile to note that the positioning of Skinoline cream is

“MULTIPURPOSE CREAM WITH MOISTURISER”. The advantages of
Skinoline cream imprinted on the packaging include fairness, cuts &
burns, pimples, chapped skin, acne, sores & ulcers and moisturizer
for dryness and to keep the skin soothing, glowing and healthy.

The positioning of Skinoline was therefore done first as a fairness

cream that treats pimples & acne with a lot of advertisement and it
failed in the market generating average sales.
 ANALYSIS of the survey
From the survey for Skinoline done by Ramakanta babu and Aditya in
search for information in improving the product, we came across the
following results:

Ø This graph shows the problems in

Skinoline according to the doctors
from different parts of Orissa.

ØThe graph shows 35% of the

problems is due to its margin and
35% of the problems lie in its oil
base.

ØHowever, after this survey an

aqueous base was introduced and
even that failed to give sales for the
product.
 It is very important now to understand the proper positioning of
the cream. The positioning should not be on a multipurpose basis but
the base where the efficacy is most.

The doctors survey on prescription basis shows:

This shows how the doctors

understood the positioning
of the product and
prescribed it, however the
results of positioning show in
the sales generated.
PROBLEMS RELATED TO THE PRODUCT

1. Efficacy of the product should be improved for better and faster relief from Acne, Pimple
& Black spots.

2. Better quality caps to be used to avoid leakage of the product with frequent use, if
possible with nozzle seal.

3. One perfume to be used in all the creams.

4. Damaged covers and tubes not to be used.

5. Products leave water and get damaged soon. So Quality should be maintained.

The problems in the product are very crucial ones. Marketing is just a way of convincing
people to buy the product but if the efficacy is not to the expectations then the product would
not have a re-purchase from the customer who has used the cream once and hence a customer
is PERMANENTLY LOST.

Perfume should be such that the user can relate to the product. Boroline has a distinct
smell, so has Fair & Lovely and all the other numerous products in the market in the same
segment. Using multiple perfumes is a Big Question mark on the quality of the product.

Damaged covers and tubes hamper the reputation about quality of the product.

Products that get damaged soon after reaching the customer cannot be traced and
replaced so it results in one LOST CUSTOMER.
MARKETING STRATEGIES to be adopted

Establishing the Skinoline cream as a Over the Trade Counter

product should be adopted only after covering the entire Homoeo
segment of doctors throughout the state.

To establish the product in Homoeo segment the requirements in

order of urgency are:
Ø Quality Product
Ø Right positioning of the product
Ø MRP of the product must be competitive
Ø Regular Visit to Doctors
Ø Sample & gifts to doctors
Ø More profit margin to doctors and retailers
Ø New products (5-6)

To make the MRP of the cream competitive the amount of cream

packed could be reduced to 15-20 grams. This could result in higher
sales and reduced pricing. Higher Sales is only possible if quality of
the product is strictly monitored and maintained.
Some figures
 Notes from the figures

Ø No proper record or control on expenses.

Ø In salary and conveyance expenses, if salary is on fixed basis then
there is lots of mistakes or fraud in conveyance expenses.
Ø If expenses are controlled then product’s MRP can be less compared
to company competitors.
Ø In October ’08, per unit exp was Rs 4/-, while in February and March
’09 it was Rs 38 or Rs 57.
Ø In the FY 2008-09, winter time (October to January), sales was 32939
and expenses 204192, and for the same period of the FY 2009-10
sales was 16528 and expenses was 132390.
Ø If we see the percentage increase in sales or in expenses, then it can
be observed that there is no relation between sale increase/decrease
or expenses increase/decrease e.g. in November 08 sales decreased
by 24% but exp increased by 39 %, so it shows that exp
increase/decrease has no direct relation with sale figure.
Thank you