DOVE SCRUB SOAP

PRODUCT EXTENTION PLAN

DOVE SCRUB SOAP

PRODUCT EXTENTION PLAN

Marketing Project Product Extension Plan

DOVE SCRUB SOAP

PRODUCT EXTENTION PLAN

FATIMA JINNAH WOMEN UNIVERSITY RAWALPINDI

Presented to: Mr. Sohail kamran Presented by: Naima Sadiq Rabia Zaib

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Qurat u lain azhar

PRODUCT EXTENTION PLAN

Acknowledgement
H e gave us a w or ld of challenges , And gave us am bition to tr y A Wor ld that hold mar velous s ecr ets , And m ind that w ould as k w hy. H e gave us a w or ld br ight of beauty, And gave us aw ar enes s to s ee Wor ld w her e w e all could be differ ent, And hear ts that w ould seek harm ony. H e gave us his guidance; H e gave us his Str ength, H e gave us his infini te love T o help us in m aking our w onder ful Wor ld Mor e and mor e like his w or ld up above.

We are thankful to Allah Almighty that has given us the abilities to do sheer hard work and enthusiasm to perform well. We owe a special thanks to our generous teacher Mr. Sohail kamran on providing us the opportunity to use our hidden capabilities

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INTRODUCTION:
Lever Brothers (Pakistan) Ltd. was founded in 1930 by the amalgamation of the operations of British soap maker lever brother and Dutch margarine producer Margarine unite. The Company's principal activities are to manufacture and distribute Tea (Brooke Bond, Lipton); Wall's Ice Cream; Edible Oils and Fats (cooking oils, margarine, specialized fats/oils for the bakery/food industry under the Dada, Blue Band and Planta brand names); Detergents and personal products (Lux, Liril, Rexona and Lifebuoy soaps, Sun silk shampoo); Fabric Wash & Home Care (Power Surf, Wheel Washing Powder, Vim). Beverages accounted for 41% of 2001 revenues; detergents and personal products, 32% and food, 27%.

WHO ARE WE?

Largest fast moving consumer goods company in Pakistan Over Rs. 20 billion of sales with household items More than 50 brands Over 2500 hundred employees The lever brother is a part of Unilever, which is a Global company.

Profitability:
Unilever is earning a lot of profit being the market leader; the most recent record of profitability is given below: The profitability of Unilever was 4.136 Billion Dollar in 2008.

Values:
We aim to manage and grow our business successfully round the world as a trusted corporate citizen, respected for the values and standards by which we behave.

Core competency:
Distribution network is the core competency of unilever.

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Cross-cultural management Emerging markets Leadership competency in multinational companies

Corporate objectives:
Overall control of activities in the company. Concerned its strategic planning long term objectives and proper management structure Ensuring that the management functions to maintain integrity and responsibility toward its constituency.

Mission Statement
Unilever's mission is to add vitality to life. We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life

Market overview
Our market overview consists of three basic headings: 1. Market size. 2. Market Trends. 3. Market Shares.

Market size
According to the census reports of 2009, it is estimated that out of total population of Pakistan the number of females in the age group of 15-30 is 23,031,411 out of which 32.34% lives in urban areas and most of them are college or university going girls. So on the whole we can say That 7,370,051 are the girls in this segment. Rounding this figure off can say that 7,000,000 are girls who need scrub due to their daily routine such as going to college. The skin specialist doctor of M.H said that about 70% of the girls that come to the hospitals with skin problems have freckles skin rashes. This is a skin disease which normally occurs to the younger girls with oily skin and as a preventive measure of the freckles and skin rashes doctors suggest to use scrub soap on daily basis. Because these problems occur due to pollution and dust so scrub soap

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is made specially to use at daily basis. So we have a huge market to target. Our target market is Millions of girls with sensitive skin.

Market Trends
The trends of the beauty product market are ever changing with a drastic pace. So we can not exactly forecast the trends of the market. The trends of this market are not well understood. Liking, disliking, preferences and choices of the customers change fast in this segment. So in order to measure the trend we have considered following things: o o o o The customers prefer easy to use goods The customers prefer quality in case of skin. The customers prefer those products which provide best results in short time. The customers prefer those products which starts giving output in early days.

Market shares
It is estimated that people around the world in 150 countries uses Unilever products, 150 times a day. In 2006 sales revenue 39.6 Billion pound. By 2010 Unilever plans to improve its financial standard by free cash flow in the period 2005- 2010 of 25-30 Billion$ improvements in return on invested capital, underlying sales growth 3-5% per annum. INTERNAL AUDIT

Product
LUX is an internationally renowned beauty soap brand of Unilever. Though manufactured in Pakistan for the local market by Unilever Pakistan Ltd, as an international brand, it maintains an international quality for the product. Formula given by Research and Development departments in foreign countries, LUX is produced in Pakistan from imported raw materials like sodium soap, glycerol and different extracts according to flavors, coming from Unilever plants situated abroad. LUX is offered in Pakistan in six different flavors which are: LUX Energizing Honey, LUX Golden Glow, LUX Nature Pure, LUX Orchid Touch, LUX Almond Delight and LUX Aqua Sparkle. Taking into account the convenience of its customers, the company manufactures all flavors of LUX in three different sizes, 40gm, 80gm and 120gm.

Price

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PRODUCT EXTENTION PLAN

Though Unilever Pakistan gives its LUX customers a lot in terms of the product itself, it also provides a better pricing. This is due to some constraints in the beauty soap industry. Beauty soap is a product with a vulnerable demand in Pakistan. A change in price has a high risk of creating price war among the rivals which will eventually cause a loss of profit. Its prices are almost equal to its competitor. Company carries out research on competitors price and brand loyalty when it feels extreme necessity of changing price. The brand loyalty test is an exploratory research which is known as Brand Health Check-Up (BHCU).

Place
Unilever Bangladesh Ltd. has a huge distribution channel for LUX all over the country as its sales reach more than 10 million pieces a year. The company has six huge warehouses, one in each division of Bangladesh, where the product goes after they are manufactured at Karachi factory. The company does not use its own fleet of transport for distributing its product. However, it has outsourced its distribution process to various third party distributors, exclusively dedicated to Unilever Pakistan Ltd. These distributors then supply the product all over Pakistan to a huge Number of retailers. Even though LUX targets the urban and sub urban middle and upper middle class people they are distributing their products all over Bangladesh because of a recent increase in demand of its product to all segments of the population.

Promotion
Unilever Pakistan undertakes huge promotional activities to promote LUX which has topped the beauty soap industry Pakistan. It spends almost 20% to 25% of its Net Proceeds from Sales (NPC) of LUX for promotional activities for LUX 1 Its certain annual promotional campaigns like LUX Channel I Superstar and LUX Channel I Annual Cinema Awards has made the product a part of the glamour world. They do not only promote LUX in Pakistan for the beauty conscious females, it also promotes the brand for males and the company proved that, by including world famous male celebrity Shahrukh Khan for their advertising campaign. Unilever Pakistan Ltd spends a huge amount of money for promoting LUX through TV commercials, newspaper advertisements and billboards.

EXTERNAL AUDIT:

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SWOT Analysis
Strengths
Enjoying economies of scale Good will in the market Strong financial position Have Strong distribution channel in Pakistan Abundant financial resources Well-known brand name Well brand image Committed employees

Weakness
Huge inventory stocks of raw material Weak spending on R & D Internal operating problems

Opportunities

Rapid market growth Changing customers needs & wants as life style change To create relation with society on the social marketing basis Pakistan peoples have become quality conscious

Threats
There is very tough competition in beauty soap market

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Low profit margins Smuggled brands of CHINA New competition in the market Increases in taxes Increases in prices due to fuel prices Being new entrants in the business, we expected much of big giants already in the business. This was a major factor of my vulnerability in the market share. Contact with suppliers had to be established.

PEST Analysis:
Pest analysis consists of analysis of macro environment of the company. It consists of four major forces that affect the company in the long run and also affect the profitability of the business. All of these forces are a part of outer or external environment of the company. These forces are as follows: Political environment Economical environment Socio-cultural environment Technological environment

Political Environment: There is a lot of instability in the political environment of Pakistan. The threat of suicidal attacks is there and it is very risky in terms of the security of our plants, machinery and offices due to terrorist attacks. Despite of all these hazards company is ready to invest because we have taken personal security measures such as private security firms.

Economic Environment: The economic environment of Pakistan is also very unstable due to change in the monetary policy of State Bank of Pakistan and the political instability as well. The economic conditions are bad and the value of domestic currency is depreciating due to the war going on in Waziristan. But the company will invest due to the ever growing demand of beauty products and the craze of Asian women to look pretty.

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PRODUCT EXTENTION PLAN

Socio-cultural Environment: Socio-cultural factors of Pakistani population are well understood because the company is not new in this geographical area. Unilever is better able to understand the needs, wants, demands and the constraints of the Pakistani buyers. Technological environment: The technological environment keeps on changing with the passage of time, so we have used the state of art technology in the soap making industry. No one in the Pakistani market is having this technology. We will keep on changing and updating our technology with the passage of time.

Porters five forces

We have applied the portals five forces model to our product development plan:

1. Competitive Rivalry :( high)

The competition is high in this industry as a lot of companies are already competing in the market such as: Olay face wash Johnson and Johnson Proctor and Gamble Colgate Palmolive LOreal Hollywood Revlon So in the presence of these big giants it is a very tough time in the beauty market of Pakistan. We have to be very careful about the prices as well as the products which the competitors are offering.
2. Threat of new entrance :( high)

Threat of new entrance is high because all of our competitors have enough potential to enter into this market following us. They can also add the features of the scrub into any of their soap. But we will have the advantage of first mover into the market forever.
3. Threat of substitute: (very low)

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PRODUCT EXTENTION PLAN

There is a very low or approximately no threat of substitute available in the market because its a new product idea and there is no scrub soap available in the market right now. So we will get the benefit of only producers in the market.
4. Bargaining power of suppliers: (low)

Bargaining power of suppliers is very low as Unilever is an established and renowned brand. Moreover Dove has its own brand identity in the world of beauty products. So it is said for the certain that suppliers will feel proud to work with us and their profit margin will be kept intact.
5. Bargaining power of buyers :( low)

The bargaining power of buyer is also very low in this case, as it is a new product and we have got first mover advantage of the scrub soap market. So we will enjoy the benefits of the monopolists and can even charge the price of our own choice, as there is no one in the direct competition of our product.

Assumptions.
For the validation and proper functioning of our marketing plan we had considered certain assumption. The assumptions are as follows: The plan is for one year. The prices of raw material will not change drastically during this year. The prices of fuel will not change more than the trends of previous years. There will be no increment in the tax. There will be no new product from the competitors. Our suppliers will be loyal to us as before. Our shareholders and B.O.Ds will agree on this investment. The price of electricity will not change drastically. The water shortage problem of Karachi will be overcome. There will be no extraordinary increase in the salaries of the employees There will be no sudden change in the labor laws of the Government There will be no sudden change in the monetary policy of the Pakistan Government. The plan will not change during the current year. In case of any mishap our company will help socially, financially as well as legally.

Marketing objectives and strategies:

a) Setting marketing objectives: Based on previous assumptions we have decided some standard objectives for us in this marketing plan:

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PRODUCT EXTENTION PLAN

By the end of semi annual term, dated 05th of June 2009, we will achieve breakeven. Sales target of Dove scrub soap in the year 05th of January 2009 to 05th of January 2010, in the Karachi market is 41 Million $ The profit target of the Dove scrub soap, in the year 05th January 2009 to 05th of January 2010, in Karachi market is 24 Million$ The Dove scrub soap will get the market share of 40% of the total soap market of Pakistan in the year 05th January 2009 to the 05th January 2010. After the achievement of goals of the Dove scrap soap, in the year 05th of January 2009 to 05th January 2010, we will launch the modified product for the ladies more than 35 years of age in year 2010. The promotion campaign, such as personal selling will promote the Dove scrub soap to the smaller cities and towns such as Abbot bad, Gujarat and Rahim Yar Khan Etc. by the end of year 2009. All the expenses incurred during this plan will be strictly in accordance with the budget allocated to the plan.

Characteristics of the Product

As our product is extension of dove pink cream bar (moisturizing cream) we have made it 2 in 1 means by adding apricot and neem extracts.

We have add apricot in it to make skin fresh and shiny Apricot and Neem granules are used for the scrub purpose We have add apricot and neem to make skin fresh and shiny Its shape will be oval

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PRODUCT EXTENTION PLAN

Its color will be like apricot color due to more addition of apricot extracts. The leather of soap contains apricot neem granules so at every facial wash it will give cleansing effect.

Aroma of soap will be of apricot

It is medically tested and for all types of skin. No harmful chemicals are used in it.

Market Potential
Beauty Soap Market is growing intensively. A present Consumer prefer on the base of quality. Pakistani Peoples are moving from rural areas to urban areas as life style is changing. Advertising is promoting the Beauty Soap by comparing the functionality of different Beauty Soap. Increase awareness of usage benefit of Beauty Soap. Market could be extended to rural areas as well

Market Positioning
Dove is considered to be a trusted and premium brand because of its unique association. Unilever is positioning their product in the best of their customer satisfaction which also

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differentiate from their competitors. They are creating environment for people to have a life easy chance. They are also positioning as considering the fact of Strongs competition .So they are also focusing different type of facilities.

Soap Manufacturing Machine.

MARKETING MIX

Product

Price

Place

Promotion

Product
The Dove scrub Soap is the product by UniLever. Its the consumer product bought by the consumer for his / her personal use. Its the convenience product Consumers purchase is it frequently with a little planning or minimum efforts. Product has a low price, large size, even compared to other branded soaps. Extensive wide spread distribution. Targeted marketing promotion plan for Dove scrub Soap.

Levels of Product

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CORE PRODUCT: The soap itself is suitable for all types of skin. Flexibility to adjust according to the skin, and gives you the cool and fresh look all the time. ACTUAL PRODUCT Dove scrub Soap, the effective and efficient product in all aspects. E.g. Brand name, packaging, design, features and quality level.

Product Quality
Dove scrub Soap introduced the best quality soap in the world of soap. This soap comes with the new innovations having the innovated formulas suitable for all types of skins. It will maintain its positioning and will work as the soap of freshness. The Apricot Granules is used in this product so it will perform its role as scrubbing. Give a fresh look all the day

Product Features
There are 2 sizes available in the market 140g and 95g. The people are less conscious about the size i.e. 5g. So we are going to reduce the size by 5g as per according to other soaps e.g. LUX. We will provide the best quality and offer the low prices according to the will of people supported by our Questionnaire. The product Dove scrub Soap includes the different ingredients.

Product Ingredients
Sodium Cocoyl Isethionate, Stearic Acid, Coconut Acid, Sodium Tallowate, Water, Sodium Isethionate, Sodium Stearate, Cocamidopropyl Betaine, Sodium Cocoate Or Sodium Palm

Kernelate, Fragrance, Sodium Chloride, Tetrasodium EDTA, Tetrasodium Etidronate, BHT, Titanium Dioxide (CI 77891), Red 17 (CI 26100). Neem and apricot extract.
Additional Features Specially formulated for everyday skin cleansing. Contains an active ingredient with natural antiseptic properties. Suitable for all skin types. Kills harmful bacteria Neutralizes odors Fresh Apricot fragrance

DOVE SCRUB SOAP Leaves skin feeling soft, clean and moisturized Gentle for all skin type

PRODUCT EXTENTION PLAN

AUGMENTED PRODUCT Brand

DOVE is the branded name registered by the Lever Brothers. Brand name would not be changed but the brand extension strategy would be practiced along with the same name e.g. Dove scrub Soap

Packaging
The high quality rapper would be used for the soap. The design and packaging is the main source to compete the competitors. We will display the model with the fresh look at the front of the soap which also will play the role of impulse buying in our target markets.

Product Labeling
People are less conscious about the reading material. But the label Dove scrub Soap will attract them and increase their curiosity to know about the new change Dove scrub Soap. In the text area it would be boldly mentioned For Normal Skin For Oily Skin For Dry Skin The main message would also be mentioned on the rapper the freshness soap which will maintain its positioning. And at the rest of the body the ingredients would be mentioned.

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Price
Here the firm has to consider many factors for determining the price such as.

Selecting the price objective Analyzing competitors costs, Prices and offers. Selecting a pricing method.

Price is simply the cost plus profit of the firm. There are many competitors in the market. So the firms have to consider about the competitive price while selecting new price and schemes. How to set the price of the product Prices are set by taking into consideration into the prices of the competitors. As their products are highly quality .so usually they charge high prices. Such like Unilever set low price for other beauty soaps. And they are charging price of Dove Scrub soap on the basis of its quality. Prices are set by taking into consideration

What Customer believe for high price & high quality. There price are high. Because they believes in zero defects. They charge different prices to registered and unregistered retailers Prices are set by taking into consideration the size, type of product.

Price Adjustments
There are 2 sizes available in the market 140g and 95g. The people are less conscious about the size i.e. 5g. So we are going to reduce the size by 5g as per according to other soaps e.g. LUX. We will provide the best quality and offer the low prices according to the will of people supported by our Questionnaire.

Decided prices Net weight 135g Rs.95 PLACE

Net weight 90g Rs.70

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Distribution Areas 1st of all we have to cover all the markets in Islamabad and Rawalpindi, It would be a targeted marketing. Our aim is to plan, organize and throw our product in each and every town of the twin cities. The Channels Levels Customers. Retailers Whole sellers. Manufacturer

Distribution Intermediaries (setup) 1) Producer 2) Producer Retailer Wholesaler

Consumer: Retailer Consumer:

In this way, we give our product to the retailer and he provides it to the customers.

The second channel adopted by us is that we will give the product to the wholesalers who will distribute the product to the retail stores and then it will reach to the customer.

The Distribution Strategy

For distribution of Dove scrub Soap, the company will adopt the pull strategy. The demand will be created in the market through effective advertising and promotion, customers will ask retailers for the product, local sellers will demand the product from the wholesalers, and wholesalers will demand the product from manufacturer.

Promotion
Promotion consist of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker and greater purchase of particular product/services by consumer as the trade. Unilever Pakistan Limited places their products in local as well as in foreign market. They export directly and indirectly. Unilever promote their products through media, and other trade incentives to distributors and wholesalers.

Advertising Strategy
MEDIA USE

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Unilever Pakistan Limited use radio, TV and Billboards and newspapers for advertising purposes. FACTORS FOR DECIDING MEDIA STRATEGY

Which one is more effective? Cost benefit More access The company sets up the store displays and sales officers make sure that items displayed are properly arranged so that they can look attractive on eye contact level.

Promotion methods
Advertising.
Newspaper: Jang and Nawa -e-Waqt SHE is being used for advertisement in front page. Television: All nationwide channels are being used to run the campaign of Dove Scrub Soap.Unilever has to pay the huge amount for it as advertise through different channels, e.g.: ATV & PTV.In the advertisement of Dove Scrub Soap on television advertisement agency hired Reema for our soap.

Advertisement of Dove Scrub Soap

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PTV
Advertising Tariff With Effect From 05 Jan, 2009 Time Slot Rates per Minute 07:00am - 03:59pm25,000+GST 04:00pm - 05:59pm50,000+GST 06:00pm - 06:59pm75,000+GST 07:00 pm - 09:59 pm 100,000+GST 10:00pm -11:59 pm50,000+GST 12:00am - 06:59 pm15,000+GST Radio FM 100, FM 103 and FM 106.2 are now a days being used.

Road display:

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Bill Boards such like at kacheri chowk, at saddar, commercial market is being used where a model is showing the functionality & Purpose of Dove. For bill boards advertising agency took two models Reema as well as Iman Ali.

Sales promotion Samples: Dove is well known brand but there is a need to promote it by samples because dove scrub soap is extension in dove pink beauty soap. Personal selling Order takers: Company has employees who perform the activity of order taking from different areas to facilitate the retailers. There usually one day company performs the activity of order taking and very next day they deliver the dove scrub soap to the destination.
Stalls: Company arranges their stalls in the exhibition at which the products are displayed.

Implementation of Plan
Start Date 5January 09 6 March 09 6 May 09 6 July 09 End date 5 March 09 5 May 09 5 July 09 5 slept 09 Activity Advertising advertising advertising Advertising Budget allocation 100000 150000 Ms. Asifa 175000 250000 Ms. Naima Ms. Annie Person responsible Mr. yousaf Department Marketing department Advertising department Advertising department Advertising

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department

Control
Company deals only in those products that are profitable. If there is any indication that any product is not profitable company analyzes the reasons and step are taken to overcome the reasons. For this purpose Unilever concern with marketing research firm Aftaab Associates for marketing research to gain the information about trend of market. Company also takes into consideration the welfare of the consumers. It takes into account the taste and habits of the consumer. There fore company has finished the production of Lifebuoy Gold in past. It also works for the welfare and interest of Pakistan