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Executive Summary
SABS Cosmetics introduces new and innovative whitening product in the form of a Hard Soap bar with a key ingredient of Glycolic acid combine with soothing Vitamin E and Aloe Vera with an aim to give everyone access to Skin whitening as an affordable and easy alternative to expensive whitening procedures such as glycolic peels performed in Specialized Clinics. SABS Cosmetics has been in Cosmetic industry Since 3 years and is becoming a household name, this new and unique product will increase consumers interest and trust. There are very few beauty products available in the market containing Glycolic Acid being an expensive and controversially hazardous chemical but it is one of the most efficient and effective ingredient available; If used an appropriate quantity and consumers are becoming aware of the effectiveness of glycolic acid. According to the market research consumers demand is increasing day by day because of the awareness and availability of imported products containing glycolic acid imported from US and Europe. Hence, the launch of this new product will not only increase the companys revenue but it will also boost up the companys branding and recognition amongst the fierce competition.
Company Description
This company was established in year 2008 which specializes in Beauty and Skincare products. Our products are: Beauty Soaps Facial Foam/Face Wash Sun block It is presently located in Lahore and Karachi. We acquire 15% of the market share in field of beauty and skincare products.
Mission Statement
To offer anyone & everyone, nationwide & globally, the best of cosmetics in terms of quality, efficacy and safety, to give everyone access to beauty by offering products in harmony with their needs, culture and expectations.
Vision Statement
SABS is committed to carrying out its mission to make beauty universal in a sustainable and responsible way. A highly exacting challenge, which the group is taking up step by step, in a long-term perspective, with the active involvement of all its employees.
Goals
To achieve the market share of at least 30% in the next 5 years. We are anticipating that our sales will dramatically increase by after our successful launch of skin whitening & glow soap.
Competitive Edge
Our core competency is the glow technology! It is not only a beauty soap which whitens the skin but the cutting edge is the Glycolic Acid which in turns also increases the glow of skin but also reduces skin aging! On top of that it does not have any harmful side effects which in turn means that this beauty soap can & will be used as a daily beauty regiment, now we give our user an advantage as while travelling they need not to carry their skin care kit as our soap is a complete beauty kit, since we are committed in providing cutting edge technology in skin care so our soap does not dissolve or turns creamy after continuous usage as a result it gives a liberty to our traveling users. Another core competency is that this soap is not only available in cosmetic shops like other international whitening products are, we ensure the availability of our soap at all stores by engaging our effective distribution network.
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ECONOMIC DOWNTURN
The economic downturn that is quite evident in Pakistan. Such could thus hurt the possibility of high profit for the company .
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Industry Analysis
The company was established few years back therefore it hasnt occupied the market to the optimum that its competitor is acquiring. But it focuses on the continuous research and innovation targeting the youth which will help them increase their market share. There are many competing organization but as we are focusing on youth therefore. Our tough competitor is PONDS whitening products acquiring 50% of whitening market share and LOREAL acquiring 25% Market Share in the markets. Our detailed researches have showed that our product will capture good market share in future if marketed properly in order to create awareness for the product.
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Competitor Analysis
MAJOR COMPETITORS:
Skincare, LOreal and PONDS.
OTHER COMPETITORS:
Golden pearl soap, Blesso Acne Whitening Soap, ISPA Whitening Soap, Black & white Milk The players in the Whitening Soap market include Biolink, Herbana, Freyra, Original Derma Papaya Whitening Soap. In addition, the players in the Orange Papaya Whitening Soap market includes Silka, Kissa, Safeguard, Palmolive, YSA Botanica, Hiyas, Likas, Block & White Papaya, Ganda Papaya, Epiderm Orange, Derma Papaya, MediHerbs, and Safeguard Papaya. skin white, likewise has a premium pricing strategy. However, it only advertises through billboards, on the other hand is distributed through direct marketing. It has a low pricing strategy though Silka's price is lower than Freyra. Our main competitor is PONDS, LOREAL and SKINCARE.
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Customer Analysis
Due to extreme hot weather in Pakistan students, Workers and field workers are exposed to sun which results in skin darkening due to increased melanin production. Thus it is suitable for Male and female both. According to our company, low pricing but high quality strategy is targeting socially oriented students, and blue and white-collar workers both male and female aged 18 to 35 years old.
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Geographical:
Country: Pakistan Density: Urban Cities: Karachi & Lahore
Psychographic: Social class: Middle Middle, Middle Upper and Upper Upper Lifestyle: Value Oriented, Social & Active. Behavioral: Any occasion Benefits: Whitening effect which also Moisturizes skin with a soothing
effect.
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Points of difference:
Products with Glycolic acid are in the growth stage. There are very few products available in the market imported from U.S. and Europe but they are very expensive and out of reach of masses of Pakistan. Our innovative product will cater to consumers in Pakistan seeking effective and efficient whitening product at affordable Rate. Our Soap can also serve as an alternative to painful and expensive procedures such as glycolic peels only available at specialize cosmetologists/ Skin Specialists. Hence, it provides similar results available to consumers in their bathrooms. Moreover, it is available in two sizes; standard in paper box packing and travel pack in a plastic box packing that can be carried with consumers. Another quality of our soap is that it does not dissolve easily like other soaps such as Dove and Skin White. As a result our soap lasts long and it provides high value product to the consumers.
Positioning:
The product would be positioned very differently in order to create awareness for the consumer. Different channels are being used in order to build image in consumers mind. A very effective tool is expert doctors recommendations. We created a team which will approach all the familiar doctors. These child specialists and gynecologist will suggest our products to their patients. Mobile bill boards will also use in order to set a position in consumers mind.
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PRODUCT DESCRIPTION:
Our whitening soap is a blend of Glycolic Acid, Vitamin E, Aloe Vera and Herbal ingredients. Asian skin contains more melanin in their skin and when they expose to sun that causes Skin Darkening due to the increased Melanin production. A glycolic acid works best to reverse sun damage, treating brown, uneven spots on your skin naturally but can also be used to diminish freckles and the wrinkles and fine lines associated from overexposure to the sun because it reduces the melanin production in Skin. In addition, glycolic acid works well for treating acne. It works because it helps to shrink pores, giving the skin a healthy flawless glow and unclog pores associated with blackheads. It dissipates Purplish, painful acne as well. Vitamin E plays a role in the anti-aging of skin. It helps skin look younger by reducing the appearance of fine lines and wrinkles. Also, free radicals are believed to play an important role in skin aging and therefore the antioxidant activity is quite valuable for this skin problem. Aloe Vera is a cactus-like plant growing in the warmer climates of the world and is described as succulents. Aloe Vera is a very popular herbal remedy Aloe Vera is beneficial for cracked and dry skin because it provides moisturizer which makes the skin smooth and glowing.
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Price: Standard Size: Price of PKR 410 is fixed for the product of 250 gm. Travel Pack: Price of PKR 285 is fixed for the product of 150 gm.
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Promotion:
SABS will take on actresses or different personalities of all ages in their T.V. ads that best exudes the vision of the Company. Famous personalities enable average individuals to relate to their personal lives, that they can look as good, and so ensures higher sales. TV ad (between 7 to 9 at GEO ENTERTAINMENT 12 times daily) and (at GEO NEWS between 10 to 11 during news 5 times daily) Which will be on air after every 3rd advertisement Expert beautician recommendations We have selected top most dermatologists and they will recommend our product. In store promotion will also be conducted. The stores include: Zubaidas mother shop Mothercare Baby shop Naheed supermarket Makro Metro Aghas Imtiaz Super market Chase up Hyperstar Pace Other supermarkets of different areas All the retailers and medical stores Gondolas and aisle advertising would be used! Mobile billboards will also be used in main areas.
Place:
All retail and wholesale stores which are easily approachable. placing it in all the supermarkets as well as medical stores.
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Wholesaler:
Any wholesaler placing order above 50000 units or above monthly would be given 5% of discount on total invoice and would be given special bonuses. Three best wholesalers placing the maximum orders would be given a spiff (cash bonus) of PKR 10000 for the first three months.
Retailers:
The retailers placing the SABS on the front shelf making possible maximum display to our product will be given a free rack of SABS. The three top selling retailers of the first three months of the launch would be given cash prizes every month. Retailers of same region, having the best promotional display will win PKR 10000
Distributor:
Distributor will get 12% commission instead of the commission if distributor achieved above target they will get bonus. Every month the performance of the distributor will be evaluated and the distributor with maximum coverage and delivery on time, making availability and easy reach for the consumer possible will be given cash bonuses.
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Financial Data
Rate Initial Price Packaging & Printing Cost cost after packaging Commission of Distributor Commission of Retailer Cost after commissions Gross Profit Margin Price before GST GST Consumer's Price Total Revenue (25000 x 410) 0.12*190 0.15*190 0.45*241.3 0.17*350 Rs. 180 10 190 22.8 28.5 241.3 108.5 350 60 410
10250000
Total Cost fixed cost Variable Cost Total Cost Profit Profit of a month
7475392 18233
Fixed Cost Office rent Warehouse Salaries Expenses Transportation expenses Utility Expenses Advertising Expense Entertainment Expense Fixed cost
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Advertising expense Geo News Geo Entertainment Ad making expense Doctors expense Mobile Billboards Gondola Assel advertising Total
Note: Financial data is for the new product Sabs Whitening Soap for the
time period of 3 months only.
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Media objectives:
70% of the target market will see the TVC at least three times during first three weeks T.V. ads would be aired on regular basis for 3 weeks. After that we will go for the channels where our targeted market is present.
Phase 2 Attitude
Changing attitudes and behaviors of our target market by influencing and using Skin Specialist. Positive reinforcement would be given to the consumers by showing them the advantages of this whitening Soap.
Phase 3 Engage
Engage phase involves consumer in the brand and make him experience the brand. For this samples would be distributed through doctors to the potential customers.
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Implementation plan
Research & development department will continuously monitor the changes occurring in the society according to that our macro environmental factors would be controlled and actions would be taken side by side in order to remain successful in market. Our management team is very active and advanced. Our entire management mechanism will be controlled by them. In order to be cost effective our HR & finance department will support the management team. Our advertising activities would be outsourced. Advertising agency would be hired in order to conduct all the marketing activities effectively. Our sales and distribution team will work effectively as plan designed is very fruitful.
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