COSMOVISUALIZER final report

8/7/2019 COSMOVISUALIZER final report

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COSMOVISUALIZERA marketing Report


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Acknowledgement

We are grateful to our marketing teacher Sir Faisal Qazi forembedding us with his profound knowledge regarding themarketing course. His versatile knowledge in marketing field andunique teaching style has developed our knowledge and clearedmany marketing concepts. We are thankful to him for assigningthis project to us as it helped us relate marketing concepts on a

more practical level and helped us in evaluating interrelateddimensions of marketing. We have tried to accomplish the reportassigned by the instructor to the best of our abilities andcapabilities, but still there are a few problems in the report overallthat will be removed only by the guidance from the instructor. Wewelcome and appreciate the error picking and suggestions fromour instructor as it will further help us in clearing our marketingconcepts in the real marketing. Finally we bestow our thanks to allwho has directly or indirectly supported us with their assistance

and guidance to compose this report and accomplish broadervision to visualize things in marketing concepts.

Submitted To: Sir Faisal Qazi 3


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Table of Contents

INTRODUCTION5

MissionStatement

5

MARKETINGPLAN

6

ExecutiveSummary

.6Current Marketing Situation, Marketing Description, Product

review.6SWOT

Analysis.7

Objectives andIssues

..8Action

Programs...9



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DIFFERENT ASPECTS OFMARKETING

12

Marketing Basics, NEED WANT andDEMAND..12

Company & MarketingStrategy

13Marketing

Environment18

Business Market & Buying

Behaviors..20Product & Product Development

Stages.22Pricing

Strategy29

Customer Value & PersonalSelling

..30



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IntroductionThis is a project of a private based company which has introduceda new software in market. The software is an industrial productaimed to target the niche market retailers and shopkeepers. Thesoftware will provide a new innovative database to the retailersrelated to their brands of cosmetics and will hence make theshopping easier for the female customers. The software willcapture the picture of the customer and with its special technique

apply the various cosmetics on the picture of those customers.Through this process the buying would be easier and moreconvenient for the customers while it will also enhance the salesof the shopkeeper.

MISSION STATEMENT:

"Making the process of buying easier andinteresting"

COMPANY'S PRODUCT-ORIENTED DEFINITION:

We sell software which enhances your sales by making theprocess of selection easier for your customers

COMPANY'S MARKET-ORIENTED DEFINITION:



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Buying becomes enjoyable and satisfactory and time saving.Shopping was never so much full of fun ever before



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Marketing PlanEXECUTIVE SUMMARY:

As fashion industry is on its peak nowadays .everyone wants tolook as pretty as he or she can be. The channels like style 360,AAG, OXYGENE, PLAY induce a sense in every one of what to buy& how to buy. According to this rationale, we make a softwarewhich will offer to cosmetics shops or parlors or saloons. It is a

type of software which will capture customer image & apply thetype of cosmetics which customer wants such as lipstick shade,eye liners, eye lash colors, blush on, face powders & bases. Theconcept is basically used to make such software which will boostthe sales as well gives more satisfaction to customers. We willprovide in it different companies cosmetics products shades asaugmented product. Our target market is upper & upper middlebusiness class. It can also be used in parlors for telling thecustomer how it will look after make up or particular hair cut.

CURRENT MARKET SITUATION:

Cosmo is a new company launching its first product in Pakistan.The product is offered into a new type of market which iscosmetics softwares market. In Pakistan, cosmetics softwaresare rarely used in parlors & saloons. We offer our product tocosmetic shops business market as well as the existing marketwhich consists of parlors & saloons. Competition is therefore at amediocre level. As trends are changing now and softwares havetaken place of different things, it is forecasted by Cosmo ltd thattheir sales will be 60% in 1st year. Our target market is upper andupper middle class cosmetics business market.

MARKET DESCRIPTION:



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Cosmo market is basically consists of cosmetic business userswho prefer to sell their cosmetic products to final consumers orcustomers .They are basically aimed at using our software to tellthe customers which products suits on them and then sell their

products. In the second place, we offer it to parlors & saloonsbusiness market. They can use it by telling how a customer willlook like after his or her make over.

PRODUCT REVIEW:Cosmo visualize offers following features:

All types of cosmetic companies products according to theirshades are saved in it.

It will access on windows 98, 2000, xp, vista and 07. It has equipped with latest drivers of image capturing. We are offering 1 year warranty. We will provide a manual which guides the user how to

include latest shades of different products in the software. Image recognition functionality. Automatic deletion of image at the time of closing the tab.

COMPETITIVE REVIEW:

As we are entering into a new market, it is obvious that we arenot pushed by strong market competition. Competitors may beentering into our market after analyzing our market share.

DISTRIBUTION REVIEW:

We will distribute our product by our own created sales forcebecause our product is very technical. We will sell our product

through direct marketing because our buyers need to know thedetailed information about the product since it is a new productby a newly created company .we will sell our product through outPakistan in upper & upper middle class cosmetic business users.

SWOT ANALYSIS:



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Strength:

Effective and experienced marketing group

Good customization Strong brand awareness Well established consumer testing panel

http://www.google.com.pk/imgres?imgurl=http://upload.wikimedia.org/wikipedia/en/f/fa/Swot_analysis.png&imgrefurl=http://electronic.districsides.com/analysis-summary&usg=__1NLqq2HiHPzc3Sg1zTSYDks2BH0=&h=681&w=602&sz=67&hl=en&start=47&zoom=1&tbnid=XjEBYRiqCb5PRM:&tbnh=120&tbnw=106&prev=/images?q=swot+analysis&hl=en&sa=X&biw=1020&bih=542&gbv=2&tbas=0&tbs=isch:1&itbs=1&iact=hc&vpx=505&vpy=81&dur=781&hovh=239&hovw=211&tx=116&ty=144&ei=hhodTcv4NoP8vQO8rt2TDg&oei=axodTZGvG43MrQfHxp3CCw&esq=4&page=4&ndsp=15&ved=1t:429,r:7,s:47http://www.google.com.pk/imgres?imgurl=http://upload.wikimedia.org/wikipedia/en/f/fa/Swot_analysis.png&imgrefurl=http://electronic.districsides.com/analysis-summary&usg=__1NLqq2HiHPzc3Sg1zTSYDks2BH0=&h=681&w=602&sz=67&hl=en&start=47&zoom=1&tbnid=XjEBYRiqCb5PRM:&tbnh=120&tbnw=106&prev=/images?q=swot+analysis&hl=en&sa=X&biw=1020&bih=542&gbv=2&tbas=0&tbs=isch:1&itbs=1&iact=hc&vpx=505&vpy=81&dur=781&hovh=239&hovw=211&tx=116&ty=144&ei=hhodTcv4NoP8vQO8rt2TDg&oei=axodTZGvG43MrQfHxp3CCw&esq=4&page=4&ndsp=15&ved=1t:429,r:7,s:47


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Weaknesses:

Very high prices Incompatible brand identity Costs increase can get out of control due to increases from rawmaterial suppliers

Opportunities:

New upcoming and talented teen market Increase in the number of consumers willing to buy online due

to growth of the internet.

Threats:

New affordable luxury entrants to the market threatening totake share from premium brands Major competitor planning to amalgamate vertically and offer

direct selling to the consumer Rise in popularity of nail spas leading to decline in demand fornail products

OBJECTIVES:

The first basic objective is to create product awareness amongour potential customers. Since, our software i.e. Cosmo visualizer

is not a much known concept we will have to do high promotion &advertising. For this, advertising budget of rupees around 2million will be split 50-50 between local advertising and salespromotion. Also, as its a private brand so it will be available onlyat our own outlets. We will enter the market with high prices of20,000 rupees per software & will lower prices in later years asprofits start to climb & when competition starts prevailing. Our



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aim is to achieve a high market share of above 90% as at presentno competitor exists in Pakistan.

ISSUES:

In order to achieve the high projected market share, we will haveto specially look into good quality of the product to satisfy ourcustomers. As to launching the product in the market, we needestablish a good brand name linked to a meaningful positioning.We would invest heavily in marketing to create a distinctive & oneof a kind brand image giving way to innovation, quality, creativity&value. We also must measure the response of our customers todevelop & adjust our marketing strategy accordingly.



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MARKETING STRATEGY:

Cosmo visualizer marketing strategy is based on positioning onproduct differentiation. Our target customers are high classbeauty parlors & salons where individuals of upper class come tolook & be their best. By using Cosmo visualizer they can showtheir customer which look will suit best on them & thus, helpingthem to achieve high customer satisfaction which in the end willresult in high satisfaction our customers & increase demand ofour product in different parlors & salons.

Positioning strategy: We will be positioning Cosmo visualizer as aunique software. The marketing strategy focuses on Cosmovisualizer as, making it much easier, convenient & timing savingfor salons & parlors to cater to their customers & to satisfy them.

Product strategy: The Cosmo visualizer including all the featuresdescribed in the earlier product review section will be sold withone year warranty & after sales service facilities. Building theCosmo brand name is a part of our product strategy. The brand

along with the logo will be displayed on the packaging as well ason the product itself & will be emphasized upon in differentpromotion & advertising campaigns.

Pricing strategy: The introductory price of out product is 20,000/-.This price is enough to attract potential customers & at the sametime will bring in profits for the company as sales start to grow.

Distribution strategy: for the distribution of our product we our

using direct marketing channels & all the stages of production,selling & distribution are going to take place under a singleownership of our company. In order to overcome this obstacle &to support our product, we will provide our potential customerwith detailed handouts of our product along with all itsspecifications. We will give live demonstrations as to how thevisualizer works in our promotion campaigns.



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ACTION PLAN

The ACTION PROGRAMS:

COSMO VISUALIZER will be introduced in May 2011. Following isthe summary of the action program,which we will follow during next six months to achieve our statedobjectives.

1st month:

During the very first month, we will spend Rs.100000 on training

of our sales manager and sales person who will be working atCOSMO VISUALIZER outlet so that they can work togethereffectively and efficiently to enhance the sales of our product.



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2nd month:

We will be starting the advertising campaign of our producttargeting consumers. We will make advertisements throughnewspapers, radio, TV, cable operators and billboards viaconsulting to a known marketing agency.

3rd month:

We will be starting the advertising campaign continues, we willadd sales promotion tactics such as providing Product Packages,Credit Card Acceptance, Displaying and Alteration of merchandise(if there is any kind of defect or problem in running that softwarethen it will be replaced by a new one).

4th month:

We will hold trade sales contest offering prizes for the salesperson

that sells the most software during a month time. Similarly,offering prizes for the customers that buy the most software.

5th month:

We plan to roll out a new advertising campaign this month. Theradio ads will feature celebrity voices and TV, billboards andnewspaper ads will show these celebrities holding their product.MARKETING COMMUNICATING

STRATEGY:

Firstly we will be consulting to a nice marketing agency that willbe responsible for the promotion of "cosmo-visualizer" and we willbe using all types of media, and will be creating brand awarenessand differentiating the main points of our product. By using media



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we can have a better result in our sales. Advertisement will beappearing on a regular basis on TV, radios and newspapers as toretain our customers and communicate various differentiationmessages.

To attract more customers we will advertise and emphasize onproduct differentiation by highlighting its benefits to thecustomers and realizing them the need of innovation in buyingand selling process of cosmetics and designerclothing. Our focus will be more on making our customers awareof this innovative and useful product and realizing them the needof technology in market.

MARKETING RESEARCH:

By using research methods we will be identifying the targetedsegments for our product and focus on their core needs andbenefits. The responses from market tests, surveys, and focusgroups will make it easy for us to design our product in such amanner that it fulfills the expectation of customers to themaximum level. We will also be looking at the customer'sfeedbacks on competitor's product and analyze and modify it inthe best possible manner. Finally, we will ask our customers fortheir feedbacks after they have once used the product.

MARKETING ORGANIZATION:

This chart shows the marketing structure of cosmo visualizer. Madiha Shakeel holds all the marketing related activities in the

organization, she has some areas under her vigilance. Maryam Zehra and Sidra come under the control of Madiha

Shakeel, being sales manager and advertising managerrespectively.

Karen Campos and Bushra Khan are the regional managers andtheir department comes under the area of sales managementwhich is headed by Maryam Zehra.

Whereas Shahana Ayub is advertising analyst and her areascomes under advertising management.



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Madiha

Shakeel

Head of

Marketing

Maryam Zehra

Sales Manager

Sidra Hye

Advertising

Manger

Bushra Khan

Regional

Manger

Shahana Ayub

Advertising

analyst

Karen Campos

Regional

Manger

COSMOVISUALIZER

DIFFERENT

ASPECTS OFMARKETING:

NEEDS: there is a

need of bringing

innovation and

changes in the

routine process

of buying and

selling and

making this

process easier and interesting.

WANTS: for bringing a revolution in the buying-selling process

there is software that can fulfill their need properly and in an

effective manner.

DEMANDS: Software that can fulfill their want is COSMO-

VISUALIZER, as it makes the shopping easier and helps you in

selecting the best item.

MARKET: our market's potential buyers consist of all branded

outlets of cosmetic lines.

MARKETING MANAGEMENT: our company will be targeting on

building profitable relationships with the salesmen of all brandedcosmetic outlets.

MARKETING MANAGEMENT ORIENTATIONS:



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PRODUCTION CONCEPT:

Focus should be made on the availability and affordability of the

product that includes the proper distribution and correct pricing of

the product to attract more number of customers.

PRODUCT CONCEPT:

Continuous improvements and modifications should be made in

the product after the evaluation of customer's feedbacks and

from time to time by emphasizing on quality, performance and

features of the product.

SELLING CONCEPT:

In order to increase the product's sales a huge of amount ofpromotion and awareness must be madeand lot of selling effort is required.

MARKETING CONCEPTS:

After the conducted surveys about the product, it should bedesigned in such a way that it satisfies the needs and wants of

the customers to build strong customer relationship.

CUSTOMER RELATIONSHIP GROUP:

As our product will be new in the market and we do not have anycompetitors so at initial stages of introduction our customerrelationship group will be strangers because this a new andinnovative technology and is not common in the market.

COMPANY AND MARKETING STRATEGY

STRATEGIC PLANNING:

Our firm will focus on finding strategic fit between company'sgoals and capabilities that is by using all its maximum resources,to their best potential to get the best result.



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MISSION STATEMENT:

"Making the process of buying easier and interesting"

COMPANY'S PRODUCT-ORIENTED DEFINITION:

We sell software which enhances your sales by making theprocess of selection easier for your customers

COMPANY'S MARKET-ORIENTED DEFINITION:

Buying becomes enjoyable and satisfactory and time saving.

Shopping was never so much full of fun ever before

THE BCG GROWTH SHARE MATRIX: According to the BCG matrix,the product is a question mark because it is new in the marketand has a potential to attract number of customers thus it hashigh business growth rate but low relative market share due tolack of awareness.

ANDSOFF'S MATRIX:

MARKET PENETRATION:

Our marketing strategies will be more based on marketpenetration that is offering discounts and prizes to our customers.

We will hold trade sales contest offering prizes to the customerswho will buy the most number of software.



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VALUE-CHAIN: departments that is responsible for the activitiessuch as designing who decide the outlook of the software'sdisplay, producing the product who are engaged in the

development and modification of the software, marketing aboutthe product that creates awareness about the product among thegeneral public, and delivering and distributing the product andsupporting the firm's product by all means.

VALUE DELIVERY NETWORK:The network that consists of the company itself who work for theachievement of company's objectives, suppliers by whom we getthe required materials for the development of software,

distributors who make the product available in the market andfinally the customers who purchase the product and provide uswith their feedbacks.

MAKET TARGETING:Our target market is all cosmetic industries that can use theproduct in their sales to make it more effective and easy.

MARKET POSITIONING:By highlighting on the features of the software, our product canbe positioned in the minds of customers that are easier selectionsof products and innovativeness.

MARKET DIFFERENTIATION:

Emphasizing on the benefits offered by the product that is onecannot regret buying a cosmetic item after using cosmo-visualizerand the customer of cosmetic brand always go back with highsatisfaction.



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MARKETING MIX:

PRODUCT: cosmo-visualizer is a software the makes thepurchasing of cosmetics easier and interesting for the buyers.

As this is an innovative product and helps buyers to choose thebest product for themselves by making most of their money.

PRICE:

PLACE: this software will be available in all outlets of cosmo-

visualizer which will be located in the major cities of Pakistan.

PROMOTION: advertising campaign will be held through electronicand print media through which people will be made aware aboutthe benefits offered by the product.

SWOT ANALYSIS:

This will highlight the strengths, weaknesses, opportunities and

threats faced by the product and company in overall largerenvironment.

STRENGTHS:

Offers reasonable prices.



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Easily available as its outlets are throughout the major citiesand in various locations of each city.

New and innovative product. Makes the purchasing process easier and interesting.

WEAKNESSES:

Cosmo visualizer is a new product so people are not aware ofit.

OPPURTUNITIES:

Product line can also be increased i.e. later on we can focus onmore areas other than cosmetics.

We do not have any competitors in the market. There is a great trend in ladies of shopping for cosmetics so

product can be helpful.

THREATS:

Generally people are not aware about our outlets and product.

CONTENTS OF MARKETING PLAN:

We are preparing to launch a new software "cosmo-visualizer".The name of our outlet is VISUALIZER and its slogan is FORTHE EASY AND INTERESTING BUYING. We are offering softwarethat makes the selection process of cosmetics easier for theladies. This software is available at reasonable prices. We aretargeting the business oriented people that are engaged in the

manufacturing of cosmetics. Also including women who can usethis as a software for their personal use as well. As our companyis placed at a standardized place so we are expecting a positiveand proper response from our customers. Our primary objective isto increase awareness for our product in the market and to buildcustomer relationship by satisfying customer needs and wants.



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CURRENT MARKET SITUATION:

This is a new product so it has the potential to gain profit and

attract number of customers and due to the absence of anycompetitor we can design and market the product according toour strategies and plans without any alteration and maximize ourprofit by using all our strengths.

THREATS AND OPPURTUNITIES ANALYSIS:

Generally people are not aware about our outlets and product soawareness should be made by proper advertising and heavy

campaigning of the product.

Absence of competitor is an opportunity for us so that we can setthe price of the product according to our choice. We can cater toother areas after the success in cosmetic lines.

OBJECTIVES AND ISSUES:

FIRST YEAR OBJECTIVE:

During the first year our objective is to increase awareness for ourproduct in the market and to build customer relationship bysatisfying customer needs and wants.

SECOND YEAR OBJECTIVE:



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The objective for the second year is to maintain customerrelationship and to increase at least 12% of the market share.

ISSUES:

One major objective is our ability to establish a well regardedbrand name. We will have to invest heavily in marketing to createa memorable and distinctive brand image projecting innovation,quality, and value. We also must measure awareness andresponse so we can adjust our marketing effort if necessary.

MARKETING STRATEGY:

Our strategy will be to focus on our target market i.e. cosmeticmanufacturers who can use the software for making their sales aninteresting process.

POSITIONING:

Positioning our product in such a way in the minds of customersby highlighting the features ofproduct and differentiating byemphasizing on the benefits offered.

PRODUCT STRATEGY

The software we are going to launch is focusing on the sales ofcosmetics by helping customers of cosmetic product to choosethe best suited item. After the success of cosmetics we can lookinto other areas as well that can be beauty salons and parlors.

PRICING STRATEGY:

DISTRIBUTION STRATEGY:

Our distribution strategy during the first year will be expandingthe number of outlets in the other areas of the Karachi and thento other cities of Pakistan.



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MARKET COMMUNICATION STRATEGY:

By using all types of media, we will be creating brand

awareness and differentiating the main points of our product. By using media we can have a better result in our sales. Advertisement will be appearing on a regular basis as to retain

our customers and communicate various differentiationmessages.

In the ads our focus will be emphasizing on the benefits offeredby product.

MARKETING RESEARCH

Using research, we are identifying the specific features andbenefits that our target market segments value. Feedback frommarket tests, surveys, and focus groups will help us develop theshoes. Brand awareness research will help us determine theeffectiveness and efficiency of our messages and media. We willuse customer satisfaction studies to gauge market reaction.Finally, we will be providing information about our outlet topeople and asking their views.

CONTROLS:

We are planning tight control measures to closely monitor qualityand customer service satisfaction. This will enable us to read veryquickly in correcting any problems that may occur. Other earlywarning signals that will be monitored for signs of deviation fromthe plan include monthly sales (by segment and channel) and

monthly expenses.

MARKETING IMPLEMENTATIONS:

All the above mentioned strategies and plans will be worked uponin order to make the process of



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implementation ensured.

ANALYZING THE MARKETING ENVIRONMENT

MICRO ENVIRONMENT:

COMPANY: cosmo-visualizer is a company consisting of somedepartments like marketing, research and development, financeand human resources. All of these departments work in harmonywith each other and with their consents, in order to produceeffective results.

SUPPLIERS: our main suppliers are the software developers whoprovide the required software to us and help us in maintainingand modifying our product towards betterment.

COMPETITORS: as our product is innovative and one of its kind wedo not really have any competitors in the market and we are theone who are initiating this product.

PUBLICS: there are groups that have actual or potential interest in

our company's objectives and achievement of goals this includesand cosmo-visualizer will have to take care of all these groups:

1. Financial publics through them we obtain funds. (e.g. banks)2. Media publics this is a group that provide opinions of ourcompany and our product. (e.g. newspapers, radio,

magazines, TV channels)



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3. Government publics are the law making agencies that we haveto abide by. (e.g. income tax offices)4. Local publics are the people of our communities and neighbors.5. General public are the common people of the society who

observe company's attitude towards general public.6. Internal publics are the employees and staff that work withinthe company.

CUSTOMERS: our customers are the branded cosmetic companieswith whom we will be signing contracts to make the purchase oftheir products more effective and interesting.

MACRO ENVIRONMENT:

DEMOGRAPHIC ENVIRONMENT: according to the demographicenvironment we are focusing on the income segment as ourproduct is for branded shops and that are mostly affordable byincome oriented segment.

ECONOMIC ENVIRONMENT: our product is going to be launched inPakistan and majority in Pakistan belong to rural societies and arenot aware of new technologies and similarly cannot afford themtoo. Economic environment is not that helpful but there is a groupof economically developed people who can be catered.

POLITICAL AND SOCIAL ENVIRONMENT:The political environment of Pakistan is not stable and can causea little disturbance but not a major one because even though ofinstability, business in Pakistan always manages to continue evenafter any severe devastation. The society gets affected but the itis strong enough to overcome the difficult times and moveforward.

CULTURAL ENVIRONMENT: as we have focused on cosmetics salesso here in Pakistan we have observed that use of cosmetic is adaily routine by women and it has become a culture now. Evenshopping for branded products is a usual activity.

RESPONDING TO THE MARKETING ENVIRONMENT:



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Using the micro and macro environment while making company'sstrategies, planning and utilizing resources will help us in theachievement of goal.



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BUSINESS MARKET AND BUSINESS BUYING BEHAVIOR:

Our main target audience will be the business markets i.e. thesalons, parlors & the high class cosmetic shops. Being a marketerof Cosmo-visualizer we will have to better understand the demand& the behaviors of business market. We will create strongcustomer value for our product through direct marketing,personal selling and other promotion mix tools to interact with our

target audience.

Major types of buying situation:

As far as Cosmo-visualizer is concerned; it will be a new-task formost our target audience as most of our business markets will bebuyer this product for the first time. The business buyers will beneeding information regarding Cosmo-visualizer at this point wewill try to influence these people through helping them and

providing them information as much as we can.

For some of out business markets it is going to be a modifiedrebuy since very few parlors in the area of Clifton & Defensealready have some similar software. For them we will have to usepersuasive promoting strategies & emphasis & encourage brandswitching based on differentiation of our product.



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System selling:

We will sell our product systematically by launching it

geographically and for removing complexities & for betterunderstanding of our costumers we will give them manuals toprovide them information regarding how to use Cosmo-visualizerattributes efficiently. Secondly, we will be providing them withother guide & give 6 months warranty for smooth runningoperation.

Characteristics of business market:

Cosmo-visualizer is a new product so gradually when it islaunched their will be little awareness & only few salons, parlors &cosmetic shops will purchase it. The demand of our product isderived from the final demand of consumer market, of peoplewho always want to be & look their best. We will be dealing withthe business market & so for our product buying demand wouldbe in-elastic; i.e. it will not be affected by price charges & otherfactors in the short run.

Participants in the buying process:

1) Users: the final users of our product will be the people workingin the salons, parlors & the sales people in cosmetic outlets.2) Influencers: these working employees will influence thedecisions of our customers as to what specifications they want inparticular.

3) Buyers: the purchase department of the cosmetic productoutlets, salons & parlors will be the ones making the actualproduct purchase from us.

4) Deciders: the owners of these will make the decision as towhether or not they want to buy our product.



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5) Gatekeepers: the supervisor at the respective outlets willperform the duty of the gatekeeper as he/she will see to it thatthe internal information is not leaked out.

The business buying process:

Before buying our product our customers i.e. our target businessmarkets will undergo thefollowing stages:

Problem recognition:It can be internal as to increase the sales or lead to highercustomer satisfaction or internal as the rising demand of

customers for better service.

General need description:In this stage our customer will describe the generalcharacteristics as to what specifications they need.

Product specifications:Our customers will decide in technical& specific terms thecharacteristics they want in Cosmo-visualizer.

Order-routine specifications:Since, a present no other local supplier is available that providessimilar software so, our customer will directly come to this stageof the buying process. They will now order the product listing thetechnical specifications, quantity of software & other deliveryterms & after sales warranties that they expect.

Performance review:The customer swill review the change in their customers

responses due to use of Cosmo- visualizer & than decide uponwhat they want to do further about it.

Target market segments:

Differentiated (segmented) marketing:



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Our basic target market segments will be the cosmetic shops,parlors & salons, specially the ones serving the upper class ofsociety. This will be differentiated marketing as we are not

targeting all the cosmetic shops, parlors & salons rather we aretargeting only those serving the upperclass.

Concentrated (niche) marketing:

Within our segmented markets we have two niches i.e.:

1.1 (our first version of software comprising of features relating to

only make-up & displaying different hair dyes, for cosmetic shops)1.2 (our second version of software comprising of both make-uprelated features as well as those representing application ofdifferent hairstyles & also showing the after effects of undergoingand taking different facials or therapies, for salons & parlors)

Since, it is the introduction of a new product so we have madeonly two versions, further versions & different specificationsaccording to our customer requirements will be made availablewith the passage of time within next two years.



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PRODUCT DEVELOPMENT:

LEVELS OF COSMO VISUALIZER

Core customer value:The core customer value of our product is to bring efficiency &less time consumption while making sales of cosmetic products.

Actual product:

We have turned the core benefits into actual product by making

the software of cosmo visualize. Its name, parts, styling, features,attributes, packaging and designing are blend in a way to givemaximum satisfaction to the customers.

Augmented product:Augmented product of cosmo visualizer is as follows: One year warranty. After sale service after every three months. Free antivirus software.

Credit terms of 2/10, n/30.

TYPE OF PRODUCTIndustrial product:



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Cosmo visualizer is an industrial product because it is used byshopkeepers for reselling their cosmetics products to finalconsumers. It is included in capital items. Capital items are thosewhich aids in further processing or selling.

NEW PRODUCT DEVELOPMENT PROCESS:

IDEA GENERATION:marketing research plays a very vital role in the development ofany new product. For making a new product a lot ofbrainstorming, searching and idea of target market and segmentsare required.for making our product. For making cosmo visualizer,we identified that the sales of shopkeepers can be increased by

using a type of product which act as a trial for customers. Thecustomers will be more satisfied and will buy more products. Afterdeciding the target market, we search on the type ofproduct,whether it should be a product or service? Then we cameup with a product, which is basically a software used in personalcomputer or laptops.

INTERNAL IDEA SOURCES:

Our internal employees contribute a lot for idea generation. Wehave received 100 ideas from lower management moreover , 50ideas from the top management about quality, quantity, featuresand designs of products.

SURVEY RESEARCH:

We observed through open surveys of shops that customer needa trial before buying a particular product. As competition betweencosmetics brands increases, everday new brands enter in

market .for selling these brands, retailers must have somethingwhich acts as a trial and satisfies the consumer.

IDEA SCREENING:

In first phase, we came up with 150 ideas .it is consisted of goodas well as bad ideas. The bad ideas were providing noafter sale



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services and antiviruses andupdate versions. We had droppedthese ideas .we carried on with the good ideas as to provide afully functional software to retailers with good quality, packaging,style and design.

CONCEPT DEVELOPMENT AND CONCEPT TESTING

When we finally spotted the right ideas, we made efforts todevelop it into product concept, which is the detailed version ofnew product idea stated in meaning full consumer terms.

CONCEPT DEVELOPMENT

We came up with three concepts

1. To offer software to middle upper and upper class retailers.2. To offer software to high fi designers and boutiques.3. To offer this software to saloons and parlours.

CONCEPT TESTING

We have tested our product concept on a low scale in theaforementioned markets.We have asked some questions at the time of surveying

How would the latest gadgets be increased your sales?Would you prefer to buy a product which increases your sales ?

We concluded through this stage that our product will not be asappealing for designers and boutiques since they are doing one toone business. We conclude that we would carry on with concept 1

and 3.

MARKETING STRATEGY DEVELOPMENT

The next stage is marketing strategy development. It deals withdesigning initial marketing strategy for new products based on



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product concept. Marketing strategy statement consists of 3parts.

First part of strategy:

Cosmo market is basically consists of cosmetic business userswho prefer to sell their cosmetic products to final consumers orcustomers. Our target market is upper & upper middle businessclass. The cosmo visualizer represents elegant beauty trials bytrying different brands products. Our sales forecasts will be 60%.This will be selling 750 softwares throughout Pakistan. We will tryto grab 60% market share. Second part of the strategy:

We will offer 15 days beta software. It will create massiveawareness in the target markets. The original software will beselling at PKR 10000. While its copy software will be offered atPKR 100. But the copy software has no augmented features aswell as its quality is also not satisfactory. Our own salesmen willsell this software. On selling three softwares, they will getcommission of PKR 2000. Marketing budget of 10million will besplit into 60:40 between personal selling and advertising.

THIRD PART OF STRATEGY:

We intend to capture 40 % long run share of target market.product quality will be improved over time by offering differentversions time to time. Price will be penetrated in second and thirdyears if competition permits. Market research will be reducedafter first year. The marketing budget will be raised by 15% insecond year and it will be cutdown in third year according to thepositioning of the product.

BUSINESS ANALYSIS:

As cosmo is a new company. It does not have previous trends ofsales, costs and profits. We have forecasted sales of 750softwares within a year. The price per unit is PKR10000 .however,



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the programmer of software, sell his software to us at RS 5 million.the projections of 1st year sales 750*RS10000 = 7500,000

The cost 5 million will be cover in 1st year as well as company

earns profit of RS 2.5 million.

PRODUCT DEVELOPMENT:

At this stage, we have made final product by adding all theamenities being a good product. We have made it better bytesting it again and again before becoming a final product.Different variations have been done.

TEST MARKETING:

At this stage, we introduced and offer beta version of cosmovisualizer to create awareness in the customers about theproduct. This beta software is for 5 days only and it is available onour websites. In order to be more specific, we have usedsimulated test market.

SIMULATED TEST MARKET:

In our outlets, we have introduced the software having the latestfashions and products of different cosmetics brands. Customersare offered to come and try this software and if they found itconvenient for increasing their sales, they can buy it. We havealso conducted this in fashion weeks.

COMMERCIALIZATION:



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Test market gives us the idea that it would be better to open ouroutlets in high class areas of all big cities of Pakistan like Karachi,Lahore, Islamabad etc. we have launch it first in our zamzama

outlet at Karachi and then in other cities of Pakistan.



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BRAND NAME SELECTION:

The name of our brand is COSMO VISUALIZER of COSMO pvt.ltd.Cosmo is a French word which means beauty. The name wassuggested because the product deals with beauty trials. Thename is easily pronounced. The name have also registeredthrough SECP.

BRAND SPONSORSHIP:

Our brand is private brand because we have purchased thesoftware program from the programmer. We are selling thissoftware by our own brand name.

Individual product and service decision process

While developing the product we had to go through individualproduct and service decision process.

PRODUCT ATTRIBUTES:

The first stage was defining product attributes, which is thebenefits that it will offer. Product attributes focus on quality,features, style and design. Quality can be defined as freedomfrom defects. We have made every effort to offer the best qualityto our customers. Then comes product features. As a new



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colourful and attractive as it is an elegant beauty trial software.CD of the software is provided in a hardcover containing thepictures of different cosmetics items at the top of the CD and itscover.

LABELLING: Labels range from simple tags to complex graphicsthat are part of package.

Labels help in identifying the product or brand. Labels alsodescribe several things about the product---who made it, where itwas made, what are its contents, how it I to be used etc. Ourproduct labeling consists of the logo of the cosmo visualizer onboth the CD and its cover. it also includes the brand name.

following is the packaging and labeling of our product.

PRODUCT SUPPORT SERVICES:

Last stage of individual product decision is product supportservice. We are offering 1 year guarantee. Moreover, oursalesmen visits our customers after every three months of 1styear of purchase.

BRAND EQUITY

Brands represent consumers perceptions and feelings about aproduct and its performance.So its necessary to forge deepconnections with customers. Brand equity is the positivedifferential effect that knowing the brand name has on customersresponse to a product. We intend to create such effects by

advertising and sales promotion.



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Submitted By:

SIDRA HYE 2009-1-90-9999

MARYAM ZEHRA 2009-1-90

SHAHANA AYUB 2009-1-90

MADIHA SHAKEEL 2009-1-90

KAREN COMPOS 2009-1-90

Date post:	08-Apr-2018
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COSMOVISUALIZER final report

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