Marketing Plan

“NEO-RELLA SUN BLOCK”

Page 1 of 22


Acknowledgement

By the grace of Almighty Allah we have completed our market plan under the supervision of our course teacher Mam Sarah. I would like to convey my heartfelt thanks to Mam Sarah, who gave us such an opportunity to work on such assignment because of which we learned to design a Market Plan.

She always gave us valuable suggestions and guidance for the completion of our Plan. She helped us to understand and remember important details of the project that we would have otherwise lost.

Finally, yet importantly, I would like to express my heartfelt thanks to my beloved parents for their blessings. And we have completed our plan by the team work and coordination of our group members who are Mehak, Wajeeha, Sobia, Faiza and Manahil.

Page 2 of 22


Executive Summary

Increasing consumer awareness regarding the dangers of excessive UVA and UVB exposure has worked in the industry's favor by boosting demand for sun-protection products. Therefore, sun-protection products have become increasingly popular over the past five years. The future looks bright for the Sunscreen industry, so we planned to launch a new product called “Neo-rella sun block cream.” It will be a product of convenience for the consumer and a multi-functional sun block cream for all kinds of people. It will be an essential need and multi-functional sunscreen for every citizen. With the help of our technical supporter, this supper sunscreen can figure out many problems.

Neo-rella will give protection from UV rays of sun beside it will also slow down the development of black heads, premature aging skin. It will also work as a moisturizer, water resistor and will be marked as the SPF (Sun Protection Factor) 60. We will be targeting young adults who go to college, university, men and women who do jobs and spend most of their time in outdoor activities so that sun doesn’t damage their skin, as the age group will be between 18-40 years, in a medium level price market. We will be introducing our product in different areas of Karachi, therefore our product would be affordable to customers belonging to every class but we will mainly focus middle class group.

In order to create awareness in customers mind; we will reinforce the brand name, point of product differentiation through media channels like T.V, Facebook, twitter, websites and billboard. Personal selling will also be focused. We will also enrich the customers with free sampling and testing.

So in our plan we focused on the following aspects:

1. We will be providing information on successful marketing strategies which are used to launch the product in the market

2. We will be providing details about key competitor, segmentation strategies, and distribution strategies/channels.

Page 3 of 22


need

Consumers are facing certain skin problems because of sun rays, as they are damaging their skin in various ways.

So we analyzed their problems and need to safe their skin and in order to fulfill the needs of our customers and generate revenue by creating a demand for our product we introduced a sunblock with SPF 60, it also works as a moisturizer, water resistant and also controls the development of black head.

. The Solution

The Sunscreen Station: an easy, fast, and automatic sunscreen applicator.Sunscreen will be applied properly entertain users with 3 revolving arms attract consumersRecreates the way sunscreen is applied.

BUSINESS MISSION

In order to achieve our Vision, Neo -Rella commits to the following:

“Neo-rella mission is to provide glamour, excitement, and innovation to consumer through high-quality products at affordable prices.”

“The company is moving into an era of "transforming the beauty industry."

Page 4 of 22


Current Marketing Situation

By observing today’s busy world there is a need of some innovative product that protect the skin. In this market, protecting from solar UV is one of most important function of sunscreen cream. Therefore, an increasing awareness about damages of excessive UVA makes higher demand for sunscreen products in the current market. There are two basic types of sunscreen creams in the market: products which penetrate the outermost layers of skin to absorb UV rays, and another one provides surface coat of the skin to act as physical barriers to UV rays. Both two types are rated with a sun protection factor SPF and they will show SPF value to tell customers how much protection this specific product has. As a result sun-protection products have become increasingly popular over the past five years. A sunscreen must be free of oxyben zone and retinyl palmitate, and must be broad spectrum which protects against both UVA and UVB rays.So keeping in mind the current scenario we have analyzed that our product is a multi-purpose product which is unique, affordable and has the capability to prevent the skin from

The development of blackheads: As blackheads is one of the major problems that customer are having and they are caused because of various reasons. They are typically caused by the overproduction of oil, which tends to occur when a person reaches puberty.Sun exposure may increase your skin’s oil production, which clogs your pores, and causes blackheads.

Premature aging skin: People are facing problem of aging skin and sun exposure is one the major reason for it. Unprotected skin that is exposed to the sun becomes more mottled in appearance. Freckles can turn into brown sun spots, the skin takes on a dry, leathery appearance, and wrinkles and sagging increase. So our sunscreen would protect the skin from such effects.

Dry Skin: Our sunscreen would work as a moisturizer as in winter our skin gets dried as dry skin very commonly produces itching, which can be severe and interfere with sleep and other daily activities. Repeated rubbing and scratching can produce areas of thickened, rough skin. Dry, thickened skin can crack, especially in areas subject to chronic trauma (e.g., hands and feet), causing painful cracks in the skin. Dry skin and scratching may result in dermatitis when the skin becomes red (inflamed) in addition to dry and scaly. Round, scaly, itchy, red patches scattered over the legs, arms and trunk may also appear.

Page 5 of 22


Water Resistant: Our sunscreen would protect the skin in water also like during swimming.

Page 6 of 22


Market Description : o Segmentation

Our product segmentation will be on the following basis:

o Geographic:

Area: KarachiHere, we make strategies for individuals living at different places in Karachi and how will our product be available in all super stores and general stores etc. Divide Karachi in different segments according to areas, states, regions and markets.

o Behavioral:

Occasions: Usually busy in outdoor activities like going to school, colleges, universities and doing jobs.

User Status: Regular usage

Attitude: Necessary part of everyday accessories.

Benefits: Good quality ingredients, atmosphere friendly packaging, prevent the skin from getting damaged, prevent from aging skin and black head control.

o Demographic

Age: 18 to 40 yearsWe mainly focused on the customers having the age of 18 to 40 and the product is launched to cover teenagers also.

Education: Students, graduates and Masters.They have more knowledge of the product and usually prefer this product when they carry out their outdoor activities.

Gender: Men and women both are focused as they both have skin problems.

Occupation: Students, working men and womenStudents and working men and women both are targeted for our product, as these products are usually used by them.

Page 7 of 22


Life Cycle: Young, single and marriedYoung, single and married are targeted as they have more influence to buy such products.

Income: We will be targeting income groups who could afford our product easily.We mainly target middle income group but we will make sure that our product

would delight higher income group as well.

Targeted Market

Narrow segmentation is avoided because sun care products are important for all individuals. Mainly focusing on

The young adults who spend time outdoors. As they go to schools, colleges and universities and sun could damage their skin in different ways.

Women and men in their mid-thirties who tend to stop using sun care products. Especially those men and women who do jobs, they have to take care of their skin as they go outside more than the house wives. As regular daily use of sunscreen appears to significantly slow the process of skin aging among middle-aged men and women so it is preferred for both. A study revealed that adults up to age 55 who put on sunscreen more frequently had 24 percent less skin aging compared with men and women who used it only occasionally.

We mainly target middle class people. As people belonging to middle class usually travel by buses and bikes, they don’t have the accessory of car that could protect them from sun rays and prevent their skin from certain damages.

Page 8 of 22


Product Review

We work hard in order to improve their quality of the product to gain customer satisfaction and brand loyalty. Along with color and quality, packaging is also very attractive as it comes in different shapes and sizes

Product Mix:

Parent Company: Nolo Cosmoceuticals

Category: Skin Care – Sunscreen

Tagline/Slogan: Be the sunshine with Neo-rella

USP: A special anti-UVA-UVB filtering system gives extra protection to the skin, a water resistant and has moisturizing properties because of organic ingredients. Also controls black heads and premature aging of skin.

Saches will also be distributed for its sample testing.

Levels Of Product:

o Core :

Page 9 of 22


Give protection from uv rays of sun beside it also slows down the development of black heads, premature aging skin.

o Actual :

It helps to prevent black heads, facial brown spots and skin discoloration

Brand name: The name of the product “Neo- Rella”

Features:

1. Spf 60 formula: The SPF factor refers to how much longer it will take the skin to burn with the specified SPF than it would take to burn with no protection at all. So, we used a higher SPF formula in our product which provides longer lasting protection as compared to the other sun block.

2. Water resistant: Sunscreens, however, can be “water-resistant.” So our product contains a water-resistant which means rating of 40 or 80. Sunscreens that have a water rating of 80 might state they are “Very water-resistant.”

3. Moisturizer and sunscreen: Our sunscreen would work as a moisturizer as in winter our skin gets dried as dry skin very commonly produces itching, which can be severe and interfere with sleep and other daily activities.

4. Act as physical barriers to UV rays: Neo-rella creates a physical barrier against the sun's rays. They physically block or scatter both UV-A and UV-B rays. ), our product with an SPF of 80, would let a user remain in the sun 60 times longer without burning.

5. Black head control:Black heads are easy to spot on the skin because of their dark color, although they are slightly raised. So our product “NEO-RELLA” also has a black head controlling effect.

Design :Suitable and attractive packing.

Quality: We give a best-quality product for our customers as they want innovated sunscreen Best quality assurance would be our first priority. This would be ensured by

Page 10 of 22


1. Acquisition of best quality raw materials2. Total quality management3. Implementing international quality standards

Augmented :

We give money back guarantee of our product in case of any harm or damage to the user skin.

Feedback will be received by social media, or by marketers

Page 11 of 22


Competitive Review Our product has a number of direct competitors who are competing with us because of their features and they are Neutrogena Ultra Sheer Dry Touch Sunblock, Lakme Sun Expert Fairness Body Sunscreen Lotion and Lotus Herbals Safe Sun Absolute Broad Spectrum Anti-tan Gel, Cooling Sunscreen. The Strength for our competitors are that it is a highly popular brand due to advertising and marketing, has strong R&D capability, High number of Variants Available, excellent distribution network that would be a threat to us. And their weakness is that they have high prices and less features and their opportunity is that beauty products market is growing with a significant rate so their products demand would also increase. And as we are entering in to the market so we may be a threat to them in future because of our product features and prices.

o Sample of Competitive Products & Pricing:

Competitor SPF Features PriceNeutrogena Ultra Sheer Dry Touch Sunblock 118 ML

50+ Waterproof, sweatproof, resists rub-off , Non-comedogenic (won't clog pores), Oil free and PABA free, With helioplex broad spectrum , UVA+UVB PA+++ultra-light clean feelLeaves skin soft and smooth waterproofDermatologist tested

₨1,050.00

Lakme Sun Expert Fairness Body Sunscreen Lotion

SPF 24 PA ++ Enriched with antioxidant rich ingredients such as aloe vera and orange flower extracts that corrects past sun damage and dark spots and helps reveal fairer and

200 ml- Rs.225/- ; 5o gm- Rs.145/-

Page 12 of 22


more even skin tone.Lotus Herbals Safe Sun Absolute Broad Spectrum Anti-tan Gel, Cooling Sunscreen

SPF 30 Medium Protection UVA – PA ++, UVB – SPF 30, Normal to Oily Skin. Safe Sun Absolute anti-tan gel is a medium intensity cooling sunscreen gel especially formulated for oily & combination skin. It has the soothing goodness of Calendula and Vanilla Extracts.

Rs. 195 for 60 gm.

Channel and Logistics Review:

Neo-Rella sunblock will be distributed through retailers in the local market as it would be available through super marts and departmental stores etc. And we will have our own outlets where all the products of Nolo Cosmoceuticals would be available It could also be purchased online through the web stores of these retailers, through specialty sites dealing in skin care and skin care protection, and through auction sites like eBay.

Initially we will distribute our product in Karachi and then after analyzing its demand we will expand its distribution to other cities as well.

Page 13 of 22


SWOTS ANALYSIS

STRENGTH WEAKNESS

Multi-functional for all kinds of customers.

Dermatologist tested. Suitable Price Soft tube packaging. Nobody offers this kind of product

like us with so many attributes. High brand product.

Small size target market Very few advertisements Low publicity Weakness can be a threat too

OPPORTUNITIES THREATS

Customers now spend more on skin care products

Age 20-40 of our target market is 60% into sun block in which women holds 50 % share

Convincing marketing campaign Less competition 350 price range; Suitable for all More acceptable by consumers

New arrivals can be there Anticipated marketing campaign

against market usage Low price generic sunscreen products

like fair n lovely is a threat for us

PURPOSE ,OBJECTIVE and issues

o PURPOSE :

Our purpose is to:

Promote Neo-Rella sunscreen cream to men and women who spend time in performing outdoor activities for slow downing the growth of black heads.

Page 14 of 22


o OBJECTIVE:

The marketing objectives of this plan are to increase awareness among consumers and built better consumer loyalty

During the initial year in the market, our objective is entry large volume of sales of 90,000 units.

Our second year target is promotion of our product in different cities.

o ISSUES:

First of all, the results of marketing research might be wrong, it is significantly important that the information collected from the real market is accurate because the results would affect the following decisions made on the product planning process, for example, pricing- the price may be too high in compare with the similar sunblock that already exists in the market, therefore, customers will lose interest on our product.

Moreover, once the business gets started, there may be problems with customer relations; it is required to pay much attention on customer services because basically, despite the performance of the product itself, customer service promotes the next purchase

Page 15 of 22


Marketing Strategy Positioning:

As our product is innovative so we have a great chance to have a good market positioning in the customer’s mind by providing them convenient, unique and value added product for personal use and it is good for skin

Product Life Cycle Analysis/ Product Strategy

There are 5 life stages of any product from development to decline. If we consider Neo-Rella Sun Block it is on second stage. The product is all new. So at Introduction Level our sales are zero. It is just a matter of time for this product to climb the ladder of maturity stage. It depend on product to product that how long its goanna stay in a particular stage. Some product died after introduction but some stick to Maturity stage.So our product strategy is that firstly we will sell 90000 units and in next year we will try to increase our sales

Page 16 of 22


Price/ Pricing Strategy Neo-Rella will face a tough competition in market. So to avoid that will we use Marketing Penetration pricing strategy, which means initially the price will be sold at a cost effective rate that will be potentially lower than other sunscreen cream in the market in order to grasp customers attention, to capture large market share at initial stage and when we have achieved our goal of market capturing then we will increase the price of product and move our business in the national market.Everybody can afford our product, as this product is not targeted to any particular segment of the market.

Product will be sold at the price of Rs.500 for a 50ml soft tube.

Place

There are many brands out there who supply their products on different shops for sell. Place means the areas where Neo – Rella Sun block is distribute and spread out. It should be distributed so that it is within the reach of normal customers also. Means intermediaries are involved. That is first type of marketing but as far as Neo – Rella Sun block is concerned, we will have our own Outlets where all the products of Nolo Cosmoceuticals are available. We will consider selective distribution of our product Neo – Rella Sun block is available at all supermarkets, mostly at all grocery stores and shopping malls too. All variables are interlinked where the main ingredient of promotion and advertising plays an important role in the success of Neo – Rella Sun block sales other than other elements such as quality, packaging, etc.

Page 17 of 22


Promotion/ Marketing Communication

We will use a pull marketing strategy directed at end users. In this competitive market it is very difficult to persuade women to switch brands.

Following are the ways adopted by us in order to create awareness in customers mind; we will reinforce the brand name, point of product differentiation through:

Media channels Like T.V our ads will be clean, well made, touch on emotional chord and our company will use superstar Katrina Kaif.

Social Websites: Because social websites are become more easy medium for communication to deliver our product information

Twitter: We will also do promotions on twitter by creating an account of our company and following certain people, brands and companies.

Websites: We will also create a website of our company where we would mention detailed information of our product in order to create awareness and attract customers.

Facebook page (NOLO): We will also create a page on Facebook named Nolo for the promotion of our product.

Free testing/sampling: We will also enrich the customers with free sampling and testing so that they would be able to create an image of our product in their mind and give responsive feedback. We will arrange Kiosks near schools, universities and offices etc.

Billboards: We will also place billboards along highways and busy streets as people will see our advertisement. Therefore, people will notice the billboard whether they like it or not. Another added benefit is that many people travel the same route repeatedly, such as with their commute to work each day. This means that they'll see our billboard regularly, which makes it more likely to stick in their minds.

Personal selling: We will also focus on personal selling by approaching the customer personally and describing our product and its features briefly.

Page 18 of 22


Marketing Research

A careful market segmentation is critical to successfully selling products; you need to understand what makes different consumers tick and how best to reach them. We conducted an impressive market research campaign that can be modeled by other firms. We also revealed significant demographic differences between men (who go for convenience), women (who gravitate towards more luxurious products) and young adults. Through the use of surveys and focus groups we were able to determine the attitudinal differences between distinct segments of consumers. We used this research to develop our unique brand positioning that includes making sun care as simple as possible, providing education about the importance of protection and finding ways to reinforce that protection message.

Marketing Organization Nolo’s chief marketing officer holds overall responsibility for all of the company’s marketing activities. The figure below shows the structure of our marketing organization. We have hired qualified managers who would carry out certain marketing activities of our company.

Page 19 of 22


Action Programs: We will launch our product in June as in June hotness is on its peak. The following actions that we will use during first three month are as follows:In order to create awareness to dealers for our product, we will issue 10 Million rupees for sale promotion campaign. We will give the detailed information about product to the dealers & retailers.We will launch our product in June. After launching the product we will focus on production according to demand supply & market forces. According to the good feedback from the customers, we would like to extend our scale. Because of the scale of our company we will get more share of the market, we would like to corporate with other companies. Along with this strategy we will also focus on advertisement by T.V, newspaper & internet.In July we will change our promotion strategy for our product according to current marketing situation.

Page 20 of 22


Budget Estimation:

Quantity Per unitPrice per unit 500Estimated Sales unit 350,000Total revenue 175,000,000CostMaterial cost 500Labor cost 250Total cost 750Profit 250Total Profit 175001750Less Operating expenses:Advertising expense 10,000,000Salary expense 5,000,000Wages expense 100,000Transportation expense 10,000,000Utility expense 20,000,000Miscellaneous expenses 1,500,000Total expense 46,600,000Net Profit 221,601,750

Page 21 of 22


Controls & Contingency Planning

To maximize the return on a marketing plan, there need to be controls in place to monitor the plan's progress. We are planning tight control on the overall activity in order to provide best quality and to give superior value to customer. This will help us to understand and solve any problem that may occur. We will also develop some contingency plans according to the lead of current situation.

In order to measure the impact of our plan on our target audiences, we will predominantly use two tools: our percent of market share and the data returned from consumers who buy our products and mail in the promotional tie-in. The percent of market share will quickly tell us how successful our new products are and their effect on our existing product lines. The consumer data will provide good marketing research as to whether our products are being purchased by the targeted customer segment and what their initial reactions are to using our products. If our market share is not matching our expectations, the mail in data will also provide clues as to what changes we should make.

Conclusion As we are new to the market so it will take time for us to penetrate in the market. But our brand will be introduced with unique features that would satisfy the customers and will create a stable position in the market. Because of its unique composition it will adjust with many popular brands. Neo-Rella Sun Block will surely take their, customers attention because it has got all what a girls/women and men needs for skincare.

B e the S unshine with N eo- R ella and B eat the S un and F ace it with C onfidence.

Page 22 of 22

Date post:	29-Jan-2016
Category:	Documents
Upload:	syed-junaid
View:	15 times
Download:	1 times

Marketing Plan

Documents