Marketing Management

Launching of
ZEST Soap in
Pakistan
Marketing Plan

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Marketing Management

ZEST SOAP – PAKISTAN

MARKETING PLAN
(TERM PROJECT)

SUBMITTED TO : MR. FAISAL QURESHI

SUBMITTED BY : SHAHZAD SHAMSHAD – (13786)

SUBAYYAL AHMED KHAN – (13206)

MUHAMMAD KASHIF CHHOTANI – (13681)

MUHAMMAD QASIM – (7227)

FARAH REHMAN – (13312)

(Marketing Management, Friday 6 – 9, Spring 2011)

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LETTER OF TRANSMITTAL

April 29, 2011

Mr. Faisal Qureshi

Iqra University
Karachi

Respected Sir,

We have enclosed the requested “Marketing Plan” which was part of our final evaluation. We
have put in a tremendous amount of effort to meet the requirements.

We have incorporated data through various sources. It has provided us with a clear
understanding of the Marketing Management course and how a new product is launched.

We would like to thank our respected teacher Mr. Faisal Qureshi for providing us with this
opportunity. We found the preparation of this Marketing Plan interesting, challenging and most
of all rewarding.

Sincerely,

Shahzad Shamshad (13786)

Subayyal Ahmed Khan (13206)
Muhammad Kashif Chhotani (13681)
Muhammad Qasim (7227)
Farah Rehman (13312)

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LETTER OF ACKNOWLEDGEMENT

April 29, 2011

This Marketing Plan is about the launching of world famous ‘Zest Soap’ of Proctor & Gamble

in Pakistan. It has been prepared as a part of the course requirement for

Marketing Management. The material compiled and presented in it is a result of exhaustive
work.

This Marketing Plan has proved to be a great experience. For this, we would like to thank our
course instructor “Mr. Faisal Qureshi” for providing us the opportunity, as well as his
guidance in the light of his vast experience.

Sincerely,

Shahzad Shamshad (13786)

Subayyal Ahmed Khan (13206)
Muhammd Kashif Chhotani (13681)
Muhammad Qasim (7227)
Farah Rehman (13312)

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TABLE OF CONTENTS

Serial No. Description Page No.

1 Situation Analysis 5

2 Market Demographics 5

3 Market Needs 6

4 Market Trends 6

5 Market Growth 6

6 SWOT Analysis 7–9

7 Competition 9

8 Product Offering 9

9 Success Factor 10

10 Marketing Strategy 10

11 Marketing Objectives 10

12 Target Market 10

13 Positioning 10

14 Strategies 11

15 Pricing 12

16 Market Share Objectives 12

17 Trade Channels 13

18 Profit Margin For Trade 13

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SITUATION ANALYSIS

PROCTER & GAMBLE, Pakistan is to launch its ZEST soap bars in Pakistan. Zest is a
global brand known for its exotic scent and leaves the skin moisturized and bacteria
free. In Pakistan, P & G is well established and its brand SAFEGUARD is leading the
anti-bacterial market. The development of brand and customer base will be driven by
very strong marketing. Zest offers an irresistible platter of offerings for every type of
consumer. It contains special moisturizers, strong anti-bacterial activity and a hypnotic,
natural fragrance.

MARKET DEMOGRAPHICS

Geographics:
• ZEST will specially target all the URBAN areas of the country.
• Its target customers are the residents of cities.

Demographics:
• The number of female users is expected to be somewhat higher than male users.
• Our target segment falls in the age group of 6 years and above.
• Users belong to educated families.
• The adult users have a monthly income of Rs. 60,000/- and above.

Behavior Factors:
• Users’ major focus is on a healthy lifestyle.
• Appearance and image is another important factor for them.
• A well developed aesthetic sense guides users’ buying decisions.

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MARKET NEEDS

Zest will provide its target customers with a single solution for a variety of needs. The company
intends to provide the following benefits which are important to its customers.
• Smooth, fresh appearance of skin.
• Bacteria and Virus free skin.
• Long lasting ANTI ODOUR effect.

MARKET TRENDS

A definite shift from the so-called beauty soaps to anti-bacterial and moisturizing soaps has
been observed. Customers for both the categories form voluminous segments however health
consciousness has become a stronger trend.

The existing brands fall in either of the two categories thus leaving room for a brand that
provides a single source solution to customers of both the groups.

ZEST will distinguish itself by offering a value combination to its customers not available
previously in a single soap bar. In the past, the emphasis has been to offer soap bars which
either claim to be anti-bacterial or skin replenishing elements and appealing fragrance.

MARKET GROWTH

The overall soap market is growing by 10% per year with anti bacterial segment growing at a
rate of 7%. The growth rate in the anti bacterial segment is the result of heightened awareness
and a growing health concern.

The total size of market is 300,000 tones per annum with a value of 125 million dollars.

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SWOT ANALYSIS

The following SWOT analysis takes into consideration the key strengths and weaknesses within
the company and describes the opportunities and threats facing P&G with regard to ZEST.

STRENGTHS

Heavy and impressive promotional plan for Zest

- Strong social & corporate image of P&G.

- Strong financial position of company.

- More concern towards total quality management.

- Unique market offering. Three attributes in one ZEST bar.

- P&G’s good relations with the supplier.

- Strong emphasis on environmental prosperity.

- Worldwide research and technology, engineering and manufacturing.

- Well-established and renowned distributors.

- Highly enthusiastic sales team of the company.

- Fifth-lowest Injury/Illness Rate for employees.

- Fourth-lowest lost Workday Rate for employees.

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WEAKNESS

- Unwilling to serve low-income market. Price is especially very high towards lower income
groups.
- As the product is imported, the cost is higher compared to a locally manufactured product.

OPPORTUNITIES

- According to the information obtained by Chamber of Commerce and Industry Lahore, the
soap market is growing at an annual rate of 9.8%. The anti bacterial segment is growing at
7%. The main reasons for this growth are:

o Rapid growth in population,

o High urbanization
o Increase in health awareness and preventive course of action.

- Due to this growing market, there are lots of opportunities for P&G to exploit this growing
market by introducing new soaps.

- P&G has a good corporate image among consumers. Therefore, they can get maximum
share from the soap industry by introducing multiple brands of soaps because they have
already different soaps in their international health and beauty care product line.

- Due to rising awareness among people, switching trend toward health care soaps is high.
Therefore, it is a good opportunity to capture this segment through efficient marketing
practices.

THREATS

- Increasing market share of local Producers. The local Producers are playing an important
role in soap industry, because they are providing low price soaps and try to penetrate in
their local market by replacing the branded products.

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- Threat of new entrants is also present. As Lever Brothers is a potential threat in soap
industry, because they are already involved in different related businesses and providing
raw material for soap production to different manufacturing companies like Colgate
Palmolive, etc.

- Increasing inflation in the country is also a major threat of P&G because it is reducing the
purchasing power of consumers.

COMPETITION

Our key competitors include LUX, CAPRI, CAMAY, DOVE and other imported brands on one
hand and SAFEGUARD – our own brand – on the other. Lux and Capri are backed by very
strong marketing and along with CAMAY and DOVE are strongly positioned as beauty soaps.
Safeguard is positioned as purely an anti bacterial and targets the middle, upper middle and
somewhat the lower upper class.

The market leader in the beauty segment is LUX with a market share of 30%. SAFEGUARD
enjoys market leadership in the anti bacterial area having a market share of 20%. Both of these
brands majorly target the PREMIUM tier with a spill over effect onto the MID TIER. We can
deduce from this fact that targeting the LOWER TIER or even the MID TIER would not be very
fruitful. Brands like CAPRI, LIFEBUOY and DETTOL which target the MID TIER, having a
lower price, are way behind the market leaders in market share.

PRODUCT OFFERING

P&G will launch ZEST soap bar, 125 grams in three variations; Honey with Milk, Almond Oil,
Jojoba with wild berries. The variants offer a choice of skin nourishing natural ingredients. The
two other common attributes will be a strong germ protection - a major current trend – and
intoxicating long lasting fragrances which substitute anti – deodorants.

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SUCCESS FACTOR

The key to success is designing and producing a product that meets market demand. In addition
P&G must ensure total customer satisfaction. If these objectives are achieved, it will become a
profitable, sustainable business line.

MARKETING STRATEGY

The key to the marketing strategy is to focus on delivering a delightful package to the customer,
which is not available to him yet. With ZEST P&G can cover 60% of the premium tier because
the product is geared towards three different segments. ZEST will be able to not only address
all of these segments but give them additional value.

MARKETING OBJECTIVES

• Maintain positive, strong growth each quarter.

• Achieve a steady increase in market penetration.
• Establish amongst top two players in the target segment in three years.

TARGET MARKET

With ZEST P&G expects to create a new group of consumers who need more from a soap bar.
It is expected that this group of consumers although differing in their demand will converge to
form a single, distinct segment which will look up to ZEST as a solution to their array of
problems.

POSITIONING
ZEST will be positioned as the most ‘COMPETENT PROTECTOR‘. This positioning will be
achieved by orchestrating P&G’s experience and its strong research infrastructure because of
which it is able to develop innovative and useful products for a variety of consumers.

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POSITIONING STATEMENT:

ZEST – SIMPLY OVER PROTECTIVE!!!!

STRATEGIES

The sole objective is to position ZEST as the premier soap bar serving the domestic market.
The marketing strategy will seek to seek to develop a strong and loyal customer base in the
premier tier. The message that P&G will seek to communicate is that it offers the most unique
soap bar in shape of ZEST which gives a package of benefits unmatched by any other brand.
This would serve as the core product differentiation and a justification for its relatively high price.

COMMUNICATION STRATEGY

The strategic message will communicated through a variety of methods:

- The first will be placement of advertisements in electronic and print media. Special attention
will be given to the selection of media channels. All advertising will be concentrated in
magazines and channels which are patronized by upper middle and lower upper class.

- The home page of P&G website will feature ZEST and detailed information about it. Here
‘A’ class dermatologists will be engaged to authenticate ZEST as highly skin friendly.

- Billboards in the posh area of major cities will also display these dermatologists’
recommendation.

- Trial packs of ZEST (50 grams) will be selectively given away during weekends at the high
end shopping malls in target cities. Contact details will be collected to get feedback about
ZEST after fifteen days.

- In the initial month of launch, company representatives will be placed at the major point of
sales to communicate the market offering on a face to face basis.

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PRICING

Each bar of ZEST soap will be sold for Rs. 90/- including 17% G.S.T. This price is the highest
among high end soap bars like CAMAY, IMPERIAL LATHER, and DOVE etc. We have still kept
it under Rs. 100/- in order to avoid breaking this price barrier and thus scaring away the group of
consumers which stretches to acquire a soap at a price around Rs. 80/-, which is the existing
range.

MARKET SHARE OBJECTIVES

Our target segment; the PREMIUM TIER holds a 32% share of the soap market. In dollars this
means 40,000,000. If converted to Pak rupees @ of Rs.80 per dollar we land at a value of Rs.
3.2 billion. This is our starting point to plan our market share objectives. We will plan for the first
five years. Although in the second year a smaller SKU of 75 grams will be launched to make
inroads into the mid tier too and another variant in the form of liquid soap will also be launched,
here only the numbers of ZEST soap bar will be presented.

SALES SHARE ZEST

TARGET UNIT TOTAL
YEAR FORECAST OF GROWTH
MKT. SIZE PRICE REVENUE
UNITS MARKET RATE

ONE RS. 3.2 Billion 1777777 5% RS. 90/- Rs. 160 Million

TWO Rs. 3.5 Billion 3555555 10% Rs. 99/- Rs. 352 Million 120%

THREE Rs. 3.8 Billion 5576576 16% Rs. 111/- Rs. 619 Million 76%

FOUR Rs. 4.3 Billion 7098333 20% Rs. 120/- Rs. 852 Million 38%

FIVE Rs. 4.7 Billion 8518000 24% Rs. 132/- Rs. 1.1 Billion 29%

v The market growth rate has been assumed @ of 10% per year
v A price increase every year has been incorporated to somewhat counter inflation.

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TRADE CHANNELS

• Our major focus will be on HIGH END super stores. For example in Karachi EPCO
(FORUM), MY STIORE (PARK TOWERS), AGHA’S, NAHEED, METRO, MACRO e.t.c.
will be the touch points for ZEST. The same strategy will be followed in all major cities of
Pakistan.

• Special shelves will be prepared for display of ZEST and will be placed in an area right
after the entrance.

• The second level will be the top notch COSMETIC STORES situated in uptown of the
targeted geographical areas.

PROFIT MARGIN FOR TRADE

P&G will offer a healthy 15% margin to resellers in order to evoke their interest and ownership
to sell ZEST more zestfully.

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