MARKETING PLAN/ PRODUCT PLAN

ON

POND’S Baby Lotion













Submitted To:

Prof. Dr. Mijanur Rahman
Department Of Marketing
University Of Dhaka


Submitted By:

Ajoy Paul
Roll No. 128
Section : B
MBA (10th Batch)
Department of Marketing
University of Dhaka






Date Of Submission : 16th May, 2009




EXECUTIVE SUMMARY



Unilever Bangladesh Limited is a Argo-Dutch Multinational company has been doing business in Bangladesh since 1964 is getting ready to introduce a new Baby Lotion “POND’S Baby Lotion”. Unilever is the market leader in 13 out of 14 product categories. As a marketing manager I would like to introduce this product with a vision of achieving the top position in the lotion market in future. Keeping this perspective in mind the product will be produced in Bangladesh but the raw materials will be collected from some European countries to ensure customer satisfaction. We will set up a new production plant within our existing logistic capacity to produce the final product. Our major competitors are Meril Baby lotion, Aromatic Baby Lotion, Johnson & Johnson Baby Lotion and Vaseline Lotion because they spend heavily in electronic & print media, merchandising and distribution.

Our marketing strategy will be the reasonable price and the availability of products in all the convenience stores and intensive promotional measure to expand the market which will facilitate the marketing of future products to a considerable extent. The objective of this Marketing Plan is to formulate a proper guideline action plan. Competitive brands were very aggressive and spent huge amount in advertising during the last few years. Furthermore, Johnson & Johnson as a popular and familiar brand entered into Bangladesh market with extensive campaign and also enjoyed the spillover advantages that led them to success.




TABLE OF CONTENTS

Contents Page No.
CURRENT SITUATION OF THE PRESENT MARKET

1-5

OPPORTUNITIES AND ISSUES OF POND’S BABY LOTION

5-6
OBJECTIVES 6-7

MARKETING STRATEGY
8-
ACTION PROGRAM

FINANCIAL PROJECTION


IMPLEMENTATION & CONTROL




I. CURRENT SITUATION OF THE PRESENT MARKET



The estimated market size is approximately Tk. 2000 million. Nearly 25% (Tk. 500million) is occupied by unbranded/loose sector. Major competitors are Square, Aromatic, Keya, Tibet, Johnson & Johnson and Vaseline. Category penetration is almost universal across urban and rural areas. Square, Johnson & Johnson and Aromatic brands have a strong image and popularity and this is due to considerable amount of expenditure on promotion. Between these Johnson & Jonshon and Square brands are prevail in the market since a long period. Recently a new brand named ”Aromatic Baby Lotion” came up with a very strong media campaign and has succeeded to shake the already established branded market.
1.1 ANALYSIS OF MARKET SIZE, SEGMENT, SHARE & GROWTH:

MARKET SIZE

Market size is approximately Tk 2000 million. Lotion market is growing at the rate of 15% per year. Market of this product is urban, semi-urban and also rural oriented. It is relatively a slow moving product.


MARKET SEGMENT


PRODUCT MARKET
POND’S 100ml Urban & Semi urban market and some portion of rural market
POND’S 250ml Urban & Semi urban market and some portion of rural market

MARKET SHARE:

A comparative analysis of the major competitors market share (Source: Container Supplier & estimated) is given below:
Competitor Market Share in 2009
Johnson & Johnson 20.00%
Aromatic 12.00%
Tibbet 10.00%
Meril 15.00%
Vaseline 8.00%
Others* 12.00%

• Other includes Fair & Lovely and Fuji etc.






Main advantages of POND’S Baby Lotion are-

- Nourish, Moisturize and leave skin soft.
- Much more thin & light with nice smell.
- Raw materials are of best quality.
- Free from fortified chemicals.
- It has no artificial colors and perfumes.
- Easy opener.


MARKET SITUATION

POND’S Baby Lotion is expecting market share 20%. It is expected to increase sales over the next few years because the market is expanding. The primary buyers are middle and lower middle class people, aged 4 to 35, who are conscious about their skin. Besides the branded lotion, here is much non-branded lotion available in the market. Consumers also want to buy 100% pure lotion produced by a name they can trust. For this they seek help form different sources like different media, relatives, friends and other sources so that they can take decision in buying right product.

Market size of Branded lotion in 2009 : 2500 million
Market growth rate (per annum) : 12%
POND’S expected turn over : Tk. 50 million
POND’S expected share : 15%
Expected market size :Tk. 2000 million

1.2 ANALYSIS OF COMPETITION
COMPETITION

Current Market of lotion is mineral oil and glycol stearate based and it is very competitive. Few numbers of local and foreign companies are operating in this market. Besides those companies, many new companies are also to enter into the market. Among those companies only a few are holding the majority of the market share.
Major players are also trying to expand their product range in this market to tab different market segment by introducing
1. Normal lotion in plastic container
2. Perfumed lotion with skin protection.
3. Various types of Oil supplementary of lotion.


Strength and Weakness of POND’S Baby Lotion
Strength of the Product

• Nourish, Moisturize and leave skin soft.
• Much more thin & light with nice smell
• Brand loyalty and brand image.
• Company Reputation.
• Competitive pricing.
• Essay Opener
• Produced by mineral oil, glycol stearate and carbomer.

Weakness of the Product

• This product is a late entrant in the market.
• Lack of product awareness.
• Inability to produce on time.
• Lack of availability of raw material.
• Low promotional budget.



II. OPPORTUNITIES AND ISSUES OF POND’S BABY LOTION



2.1 Opportunity in the Market

• Ability to make a more convenient or efficient buying process.
• To collect the more information and advice from customers.
• Immense market size.
• Customize skin care product to meet the customers’ needs.
• 25% market is occupied by loose/unbranded Body Lotion.
• Introducing smaller size and lower priced Lotion to cater for the needs of all range of customers can extend product range.
• Opportunity to increase markets coverage and retail penetration.

2.2 Threats
As we have some opportunities, we also have to consider some threats that may affect our plan and operations as like as follows-
New entrants to come into the market.
Extensive promotion and campaign by the competitions, specially Johnson & Johnson with local and lot of spillover from satellite channels.
Well-built brand image of the competitions.
Imported various lotion like Vaseline and others to take potential market share.

III. OBJECTIVES



3.1 Marketing Objective
Our objectives are divided into three categories as like following:
At the first year we will not earn any profit.
To increase sales next five year volume over by 45%
To establish the POND’S baby lotion expected in the market with 10% shares.

3.2 Financial Objective
To achieve no Net Sales Income (NSI) in first year.
To achieve Gross Margin of Tk. 7.51 million (19.48% of NSI) in second year.
To achieve EBIT of Tk. 1.1 million (2.85% of NSI) in second year.

3.3 Campaign Objective

To create highs quality, positive and permanent brand image.
To establish a brand personality as smart, friendly, reliable and trustworthy.
To create far-reaching awareness among the consumers.
To get the maximum demand from the consumers.
Our campaign will also focus on the quality and adorable fragrance of the product.
Key points of the campaign are as follows.
POND’S BABY LOTION is a quality product.
Objective is to inspire consumers to trial purchase our new better-scented lotion.



IV. MARKETING STRATEGY


POND’S marketing strategies are primarily aimed at increasing market share and establish the brand more dynamically. To implement the strategy we considered a unique product strategy and an extensive promotional strategy. Proper packaging, positioning, pricing and distribution strategy will also assist us to execute our strategy.

Target consumers of POND’S Baby Lotion are both women and men. They take decision to buy it. People of Bangladesh are very conscious about their baby skin. For this reason they search the best product made by renowned company.

TARGET MARKET AND CONSUMER PROFILE OF POND’S BABY LOTION
Demographic Profile

Market :Bangladesh-Urban & Semi- urban
Age : 3+above
Number of Baby : 20 million
Gender : Male and Female
Family life cycle : Married
Income : Tk 6000-18000
Occupation :Housewife, Service etc.
Education : Primary and above


Psychographic Profile

Social Class : Middle and lower middle
Life Style : Conscious about skin.
Search for better lotion and goes to outlets, exposed to newspaper, Radio and TV.

Behavioral Profile

Occasion : Regular
Benefits : Keep skin soft and attractive.
User status : Potential
Usage rate : Slow
Readiness stage : Aware and informed

Purchase Habit

 Once or Two times in 6 months.
 Consumers purchase it as per his/her requirement.

4.1 Positioning Strategy
Touch your baby & make that moment more touching.

4.2 Product Strategy
Our product strategy includes development in product and also in packaging.

A) Product decision - Quality : high quality meat
Feature: different weight

B) Branding - Brand will be positioned on
● Product Attribute – Protect skin.
● Belief and value – Safety & security.

C) Packaging - 250 ml bottle
100 ml bottle.
Ingredients

Water, Propylene Glycol, Myristyl Myristate, Glyceryl Stearate, Oleic Acid, Stearic Acid, Polysorbate 61, C12-15 Alkyl Benzoate, Dimethicone, Isopropyl Palmitate, Sorbitan Stearate, Cetyl Alcohol, Synthetic Beeswax, Stearyl Alcohol, Benzyl Alcohol, Carbomer, Fragrance, Methylparaben, Propylparaben, Butylparaben, BHT, Sodium Hydroxide, Red 33
4.3 Pricing Strategy

Competitive pricing scenario of POND’S Baby Lotion expose that almost all the competitive brands are parallel. Meril Baby Lotion & Aromatic Baby Lotion are offered at lower price. However, we like to follow the normal market practice in this regard.
Product Type Price
POND’S Baby Lotion 100 ml Tk.60
POND’S Baby Lotion 250 ml Tk.100

4.4 Promotion Strategy

Our advertising and promotions will pivot around five key strategies: TV Advertisement, Radio Advertisement, out door advertisement, press advertising, consumer offers.


TV Advertisement
Television is the most effective to create brand assurance. All the premium brands of Baby Lotion are presently focusing through electronic media campaign like BTV. NTV, ATN, CHANNEL- I are the most popular TV Channel in Bangladesh. So, it is obvious for us to choose the TV advertisement as the prime options according to the budget and the promotional expenditure available for the quarter, we will prepare our media planning. POND’S media planning will also include the selection of right program, at the right time for the right group of viewers.
Radio Advertisement

A huge number of our targeted consumers are rural based where radio coverage and listeners are large in number. Some of the special sponsored programs will be developed focusing the stories of our brand.


Outdoor Advertisement

We plan to have an exciting, informative, and actively managed outdoor advertisement. There will be wall painting all around the country.



Press Advertising

We will undertake a considerable amount (based on promotional expenditure) of press advertising in order to advertise our special promotion like consumer offer and to enhance our brand image activity. More often our targeted potential consumers go through daily newspapers, the more likely they are inspired to our brand when they have a need for our type of free offer.

Trade Promotion

A general phenomenon of the competitor activity is trade promotion. So to ensure the width and depth of our products’ stock and also occupy more space in the retail outlets all over the country, we should adopt some trade promotion.

Consumer Promotion

It is important to increase instant volume and make the consumer loyal to the product. Our running consumer promotion is as following 250ml+free 2 color pencil and 100ml+1 color pencil. After that we have some exclusive consumer promotion plan like Extra 10% free, 5 Tk. off with 250 ml & 3 Tk. off with 100 ml etc.
4.5 Distribution Strategy

The target and potential consumers of POND’S Baby Lotion live in all parts of the country. So to reach our product to each and every consumer even at the rural level we will ensure the following activities:
a) Make the product available to maximum possible outlets.
b) Deliver the product at the right time.
c) Increase the depth of stock of each outlet.
d) Smooth delivery of the product to all depots and distributors’ premises.
e) Proper merchandizing i.e., ensuring proper display of our product on the shelf of retail outlet.



V. ACTION PROGRAM

 January-March(2010) :
The company will launch its product into the market .It will follow pull strategy. Under this strategy it will spend Tk.10 lacs in advertising and consumer promotion to build up consumer demand. The company will follow selective distribution to major divisional market in large department stores (Dhaka, Chittagong, Rajshahi, Khulna, Barishal).

 April-June(2010) :

The company will continue advertising and stop consumer promotion. It will start to give trade promotion that will influence the middlemen to carry this product.



 July-September(2010) :

It will continue advertising and trade promotion and start to arrange some events and campaign program in divisional area like big well known outlets .Like art competition.

 October-December(2010) :

The company will take action depending on the situation of sales and competitor action.


VI. Financial Projection

PROJECTED TURNOVER IN FIFTH YEAR:
– Net Sales Income (NSI) of Tk. 50 million.
– Gross margin 20 % of NSI.
Table : COGS Calculation: 100 ml Baby Lotion Plastic Bottle

Sl no. Particulars Amount in Taka
1 NSI 18
2 Raw Material : 9.02
Packaging Material : 2.04
Labor : 2.10
FOH : 1.10
COGS : (79.19%of NSI)




14.26
3 Gross Margin (20.80%of NSI) 3.74

Table : COGS Calculation: 250 ml Baby Lotion Plastic Bottle

Sl no. Particulars Amount in Taka
1 NSI 32
2 Raw Material : 16.50
Packaging Material : 3.05
Labor : 4.34
FOH : 2.05

COGS : (81.06%of NSI)




25.94
3 Gross Margin (18.93%of NSI) 6.06



Table : One Year Projected Income Statement ( In Million Tk.)
Jan-Mar Apr-Jun July-Sep Oct-Dec
Estimated Units (100 ml bottle) 2 4 5 6
Estimated Sales 100 200 250 300
Less: COGS 80 160 200 240
Gross Profit 20 40 50 60
Less: Depreciation 5 5 5 5
Less: Advertising
Admin., R&D, Others 25 20 19 18
Net Income (5) 20 31 42


VII. Implementation & Control

For control purposes, the plan also allows for month by month comparison of actual versus projected sales and expenses. A contingency plan, attached, has been developed for implementation in the case of severe downward pricing pressure. Excellent promotion programs are vital in our type of marketing. Salespeople will also be a fully trained in sale. Additionally, every quarter we will try to “monitor” all the problematic areas by performing customer satisfaction surveys in limited areas. We also prefer to purchase retail store audit report, which would be the key to our strategic advantage in having superior data on market share and prospects.