Marketing Plan of an
FMCG Product (Soap)
la Perla'
Your Skin Specialist
Group Members
(Institute of Business Management – CBM)
1. Jamshed Amjad
2. Ahsen Anis
3. Shirjeel ur Rehman
4. Aqeel Ashraf
Introduction of Company
PEARL INDUSTRIES LIMITED is established
in July 2010
Committed to the highest standards
The company carries out its business in the utmost
ethical and behavioral standards
Member of different trade bodies, associations and
organizations
VALUE CHAIN
Import of Quality Raw Materials to buy the best quality
ingredients
Fats from Australia
Fragrance from Holland
Coconut oil from Malaysia
Processing materials from certified local importers
Well managed & Strong Distribution network
Warehousing available all over Pakistan in major cities like
Karachi, Multan, Lahore, Rawalpindi, Peshawar.
Availability of enough stock to avoid any demand & supply gap
la Perla' Value Delivery Network
Certified Halal Certified Certified
Fat From Fragrance From Peach Milk
Australia Holland From Australia
PLANT
WAREHOUSE
DISTRIBUTION
WHOLESALER RETAILERS
CONSUMERS
Consumer Buying Behavior
High Involvement Low involvement
Significant COMPLEX BUYING VARIETY SEEKING
Differences BEHAVIOR BUYING
Between Brands BEHAVIOR
Few differences DISSONANCE- HABITUAL BUYING
between brands REDUCING BEHAVIOR
BEHAVIOR
Consumer Buying Behavior
The buying behavior for la Perla' is VARIETY SEEKING,
because it is not an expensive product and therefore users
can easily switch from one brand to another.
As well as there is significant brand differences exist like
soaps for natural skin care, anti-bacterial soaps etc.
la Perla' focus on Factors influencing Buying Behavior
Cultural:
Social Class: Upper middle and Middle class
Personal:
Life style: Believers who are conventional and
traditional, favoring familiar products(such as natural
ingredients) along with value being delivered.
Personality & self Concept: Conscious about Skin,
about looks and healthy glowing skin.
Psychological:
Motivation: maximum skin care with least after
effects as provided by natural ingredients
Beliefs & Attitudes: in Pakistani environment strong
association exists with natural or herbal products with
positive attitude.
The Stages in Buying Decision Process of la Perla'
11
• Problem / Need Recognition
22
• Search for a product
33
• Evaluation of Alternatives
4
• Purchase Decision
4
55
• Post Purchase Behavior
Consumer Adoption Process
Consumer Adoption Process
Awareness
Awareness Strategy
Communicate
CommunicateAvailability
Availability
Interest
Interest Strategy
Communicate
CommunicateBenefits
Benefits
Evaluation
Evaluation Strategy
Emphasize
EmphasizeAdvantages
Advantages
Trial
Trial Strategy
Motivate
MotivateConsumers
Consumers
Adoption
Adoption Strategy
Ensure
EnsureSatisfaction
Satisfaction
Slide 94
COMPETATIVE STRATEGY
Main Competitors
Lux – (Leader)
Safeguard & Capri – (Challenger)
Palmolive – (Follower)
Pears – (Nicher)
COMPETATIVE STRATEGY
Company will follow Market Challenger Strategy to
compete and attack its competitors.
The main competitors of la Perla' are LUX, Safeguard
and Capri.
Market Challenger Strategy
la Perla' will differentiate itself by
positioning it as Natural Skin Care. On
the basis of differentiation and positioning,
la Perla' will compete with LUX and
various other soaps.
In order to compete, the firm launched la
Perla' with a splendor image of a young and fresh
user.
Market share of Competitors
Market share of various soaps (data collected
through survey of 15 wholesalers and retail
outlet) are:
LUX 45%
Safeguard 25 %
Capri 12%
Palmolive 8%
Miscellaneous 10 %
Key Strategy Drivers
Company would worked on identifying new
geographical and segmental spots where company can
reach before its competitor. This will be done mainly
with the help of distributors who assist the company
invading new geographical segments.
Key Strategy Derivers
A new segment that was identified by the company
was concerned about the skin hence asking for one
solution for all skin problems; plus the increasing
awareness of natural ingredients made the company
launch la Perla'.
By pass strategy
The company will adopt By pass strategy to attack its
competitors by improving, innovating and launching
new products.
Threat: Keeping in view the strategy adopted by la
Perla', LUX can reposition itself on soap functions (like
skin renewing, sunscreen etc.) rather then positioning
on skin types.
Flanking Strategy
Flanking Strategy is another area where company
would strengthen itself by identifying shifts in the
markets segments and filling in gaps. For example,
when there is a shift in the preferences of people, they
first use to prefer soaps on skin types or soaps made of
natural ingredients.
Flanking Strategy
At present, Lux is the market leader while la Perla' is a
challenger so it should increase advertising budget and
focus on creating product’s awareness. This would help
it in the long run as done by Safeguard, which is a
follower, has started focusing on these ground and if
proper and timely attention would not be given by la
Perla', Safeguard might seize its major share.
Persuasive Advertising
Although the target market is young female but the
role of influencers should never be underestimated. As
the decision makers of soap are basically mothers, the
company may go for persuasive advertising where a girl
forces her mother to purchase la Perla'.
Segment-by-segment invasion plan
Since Lux is 3 times stronger, la Perla' should not
directly attack Lux. The company may go for
segment-by-segment invasion plan through which
it target its weakest competitor first and so on.
SEGMENTATION
Segmenting , Targeting and Positioning
Segment Micro
Marketing Marketing
• la Perla' Soap
Mass Marketing Niche
Marketing
Variables for la Perla'
The company has segmented the large market of
Pakistan into Major segmentation; variables for la
Perla' are,
Geographic Segmentation:
Cities: All cities of Pakistan
Density: Urban
Geographical Population in
Thousands
Urban Proportion
• Urban 32.5 Average Annual
Growth Rate(1981-
1998)
Population 15 - 64
• Rural 67.5 Years (%)
Population Under 15
(%)
Estimated
Population in 2012
in Thousands
Population in Urban Average Annual Growth Population 15 - Population Estimated Population
Region Wise
Thousands Proportion Rate(1981-1998) 64 Years (%) Under 15 (%) in 2012 in Thousands
Pakistan 132352 32.5 2.69 53.09 43.4 175075
NWFP* 17744 16.87 2.82 49.79 47.2 23749
FATA# 3176 2.7 2.19 24.3 25.9 4011
Punjab 73621 31.27 2.64 53.46 42.52 96944
Sindh 30440 48.75 2.8 54.47 42.76 40668
Balochistan 6566 23.9 2.47 50.81 46.67 8512
Islamabad 805 65.7 5.19 59.4 37.9 1306
Demographic
Age: Teenagers
Gender: Female.
Family Size: 5-7 people in a household.
Family life cycle: Young, Single, Married
Income: Above 15000 per month
Occupation: Housewives, Professionals
and Students.
Education: Secondary standard & above
Behavioral
Occasions: For regular everyday use.
User status: First time users, Regular user,
Potential user.
Usage rate: High users
Loyalty status: Medium
Attitude towards the product: positive
Benefits: la Perla' has also been segmented on the
basis of benefit it is giving to consumers as it is
providing a natural skin care for its target audience.
Concentrated Marketing
The company uses Concentrated Marketing by
serving two segments i.e. geographic and
demographic segments together.
TARGETING
Product Specialization
Company will be selling la Perla' to two different
segments, geographically and demographically
segmented. The idea behind product specialization
strategy is to create a strong reputation of la Perla'
for Urban females of Pakistan.
POSITIONING
The challenge today the companies face is how to
position itself within each market in a focused and
meaningful way and to establish a specific image in
the mind of the consumers without clouding the
perceptions towards the product.
Positioning Statement
Beyond Skin Care – A Natural Skin Care
Positioning
High High
Quality Price
Mediu
Mediu
m
m Price
Quality
Differentiation
Customer perception does not always occur at the
conscious level. If you ask a customer why he or she
bought a product, they usually give a rational
answer. But, feelings about products are not easily
articulated. They are emotional, and based on a
relationship. Marketing research is a device we use
to probe into the sub-consciousness to uncover what
is driving buying decisions.
Product Differentiation
• la Perla' Sensitive is available in 2 sizes i.e.
Form Standard and Bath sizes which is 90g and 135g
respectively.
• la Perla' can be differentiated on the basis of its
Features ingredients as they use HALAL , Coconut Oil,
Fragrance, which often is costly for them.
• la Perla' can also be differentiated as the only
Quality locally manufactured product that is competing with
the International Brands like Lux by Lever
Brothers, Safeguard by P&G etc.
Differentiation On The Basis Of Benefits
la Perla' has differentiated itself on the basis of
benefits as well. la Perla' is a NATURAL SKIN
CARE for skin. There is no other soap available in
market made particularly for skin out of natural
ingredients.
Image Differentiation
There is a natural tendency of human beings to
respond differently to different brands and images,
therefore, most companies try to concentrate on
image building. An effective image does three things:
la Perla' Image Differentiation
Establishes product character and
value proposition
It conveys this character in a
distinctive way so that its positioning
does not get confused with that of
competitors
It delivers emotional power
Product Classification
la Perla' is LOW INVOLVEMENT product. It is
classified as a convenience good in the category of
consumer product, which consumers buy
immediately and with minimum comparison and
buying efforts
Levels Of Product
Five Product Levels
Potential product
Augmented product
Expected product
Basic product
Core benefit
4/12/03 13-4
la Perla' Levels Of Product
• Fundamental service/benefit the customer is really buying.
Core Product Consumers want to have a clear, fresh, glowing, soft and
supple skin.
• By Basic means what the product actually is. la
Basic Product Perla' is beauty soap with natural ingredients
suitable for all skin types.
Expected
• Set of attributes/ conditions buyers normally expect when
they buy the product. Consumers look for a bar that is not
Product very hard, easy to hold, convenient grip, gives a foamy
wash and does not melt easily
• What exceeds the customer’s expectations in how they
Augmented obtain, use, repair, and dispose of the product
(consumption system). la Perla' is a product offering value
Product to the consumers by coming up with a unique soap with
Peach Milk for sensitive skin
Potential
• It encompasses all possible augmentations/transformations
Product the product might undergo in the future
Market Profile
Competitors Market Share
15%
10%
LUX
SAFGUARD
PALMOLIVE
45% MISCELLANEOUS
30%
Market Profile
la Perla'’s major competitors are Lux and
Safeguard. Lux has the largest market share
of 45% as shown in the chart. Lux offers a
variety of soaps to match all skin types (dry,
oily, normal).
la Perla'’s second largest competitor is
Safeguard, which takes about 25% of the
total market share. It is an anti-bacterial soap
offered in 3 colors (white, pink and green)
Line Stretching
The company is having a vision of introducing the
few more products after the growth of the la Perla' .
This Line stretching will lead the company to target
the remaining segments of the market
Line Stretching
Two-Way Product-Line Stretch
Quality
Economy Standard Good Superior
High
P rice
Above Perla’
average Perla’
Aloevera Classic
Average
Perla’
Sensitive
Low
Perla’ Rose
Product Life cycle
The company will keep an eye on the product life
cycle of the la Perla' soap.
The strategies have be changed if there is a
variation in expected and actual product life cycle.
BRANDING
BRANDING
Attributes • Soap containing natural goodness of Peach Milk that is
ideal for sensitive skin.
Benefits • Keeps skin smooth, supple and fresh resulting in a healthy,
beautiful and younger looking skin.
Values • Your skin is precious and sensitive it needs a special
natural care
Culture • Elitism (la Perla' means Pearls, a natural antiseptic)
Personality • A beautiful young girl with a sensitive and beautiful skin
user • Girls in their teens - college and university going females
Branding Decision
Brand
Brand Brand
Brand
Sponsor
Sponsor
• Use Brand • Separate Strategy
Strategy • Brand
Decision
Decision
Name • Use Family Name • Line Repositioning
Manufacturer’ Extension
s Brand
Branding
Branding Brand
Brand Name
Name Repositioning
Repositioning
Decision
Decision
Packaging
la Perla' is carefully wrapped in a butter paper, which
then in turn is packed in a small cardboard box. The
butter paper symbolizes the special care product for
special individuals whereas the cardboard box helps
to occupy more shelf space thus attracting more
customers.
Pricing
To maximize market share
To create product quality
leadership.
Pricing Strategies
Going •• As
As in
in the
their
the mind
money,
mind of
and
of consumers,
consumers, Lux
in no way
Lux gives
gives the
consumers
the superior
will
superior value
pay extra
their money, and in no way consumers will pay extra money
for
value for
money
for
for any
any other
other locally
locally manufactured
manufactured soap;
soap; as
as well
well that
that Lux
Lux has
Rate
has
created
created a a price
price ceiling
ceiling for
for soaps
soaps industry,
industry, hence
hence la la Perla'
Perla'
cannot
cannot charge
charge more
more than
than that
that of
of Lux,
Lux, and
and the
the firm
firm has
has to
to
Pricing shape
shape its cost and other offers according to the standards set
by Lux.
by Lux.
its cost and other offers according to the standards set
Perceived •• where
where price
price speaks
speaks about
about the
the quality
quality of
of la
la Perla'
Perla' Sensitive.
Sensitive. la
la
Value Perla'
Perla' Sensitive
and
and to
la
Sensitive has
to maintain
Perla' cannot
has been
maintain this
been positioned
this image
be
positioned as
image in
set low
la Perla' cannot be set low
in the
as a
the minds
minds of
a high
high quality
quality soap
of consumer’s,
soap
consumer’s, price
price of
of
Pricing
Marketing Channels
• to some important and strong retailers,
One-Level goods are delivered directly by the
manufacturer. Each week a
representative of company is being sent
Channels to the retailers’ outlet where he analyzes
the demand situation and sends
inventory accordingly
Two-Level • Goods are distributed through
wholesalers to places where company
Channels cannot reach itself.
Services Provided By Distributors
DISTRIBUTORS TERRITORY
Distributor A – KHI PECHS, Mohammad Ali
Society, KDA, Saddar
Distributor B – KHI Garden, Soldier Bazar, Jodia
Bazar
Distributor C – KHI Gulshan-e-Iqbal, FB Area,
Karimabad, North Nazimabad,
Azizabad
Distributor D – MUL Multan
Distributor E – LHR Lahore
Distributor F – ISB Rawalpindi, Islamabad
INTEGRATED MARKETING
COMMUNICATION
Media Use for Communication
Television
Radio
Magazines
Billboards
Newspapers
THANKS
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