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Group 8 Final

The document presents a marketing plan for Skin Cafe Sunscreen, focusing on its competitive positioning in Bangladesh's skincare market. It outlines the product's emphasis on natural ingredients and affordability, targeting health-conscious consumers aged 18-35. Key objectives include expanding market penetration and enhancing consumer education, with a financial analysis projecting significant growth and recommendations for improving marketing strategies.

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0% found this document useful (0 votes)
95 views46 pages

Group 8 Final

The document presents a marketing plan for Skin Cafe Sunscreen, focusing on its competitive positioning in Bangladesh's skincare market. It outlines the product's emphasis on natural ingredients and affordability, targeting health-conscious consumers aged 18-35. Key objectives include expanding market penetration and enhancing consumer education, with a financial analysis projecting significant growth and recommendations for improving marketing strategies.

Uploaded by

lamiatasnim4119
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Marketing Plan of Skin Cafe Sunscreen

Bangladesh University of Professionals


Course Name: Principles of Marketing

Course Code: ALD1204

Term Paper on “Marketing Plan of Skin Cafe Sunscreen”

Submitted by
Group 8
Section: B
Batch: 2023

Name Roll

Fairuz Nawar 23221508020

Saba Anila 23221508034

Lamia Tasnim 23221508080

Nuha Nawshin Rasna 23221508124

Submitted to
Sarabia Rahman
Assistant Professor
Department of Business Administration in Finance & Banking
Date of submission: 12th January 2025
Contribution List

Name (ID) Contribution

Fairuz Nawar (23221508020) Chapter 7,8,9,10

Saba Anila (23221508034) Chapter 1,2

Lamia Tasnim (23221508080) Chapter 3,4

Nuha Nawshin Rasna (23221508124) Chapter 5,6 & Prefatory Part


Letter of Transmittal

12 January 2025
Sarabia Rahman
Assistant Professor
Department of Business Administration in Finance & Banking
Faculty of Business Studies
Bangladesh University of Professionals

Subject: Acceptance of Term Paper for “Principles of Marketing” Course

Dear Madam,
We, the members of Group 8, are delighted to submit our term paper titled “Marketing Plan
of Skin Cafe Sunscreen”. It has been an enriching experience to work on this project under
your expert guidance and supervision. The report has been prepared using information
primarily sourced from the official website of Skin Cafe, a local skincare brand in Bangladesh.
Additionally, the financial analysis was developed using relevant data obtained from the
websites of Skin Cafe and its competitors.

We sincerely request you to accept our submission and look forward to receiving your valuable
feedback and insightful recommendations. Thank you for your support and guidance
throughout this process.

Yours sincerely
(Members of Group 8 of Section B)

1. Fairuz Nawar (23221508020)

-------------------------

2. Saba Anila (23221508034)

-------------------------

3. Lamia Tasnim (23221508080)

--------------------------

4. Nuha Nawshin Rasna (23221508124)

--------------------------
Acknowledgements

We would like to extend our heartfelt gratitude to our course teacher, Sarabia Rahman, for
giving us the opportunity to work on this term paper, titled “Marketing Plan of Skin Cafe
Sunscreen.” This project has allowed us to apply and deepen our understanding of the concepts
covered in the “Principles of Marketing” course.

The information obtained from Skin Cafe’s official website and other relevant online sources
provided us with valuable insights into the brand’s operations, marketing strategies, and
competitive landscape. These resources formed the foundation of our analysis and enabled us
to successfully complete this report.

We also wish to acknowledge the efforts of our group members for their hard work,
collaboration, and dedication throughout the research and preparation of this term paper.

Thank you for making this project a rewarding and insightful learning experience.

v
Table of Contents

Acknowledgements ...................................................................................................................... v

Executive Summary ..................................................................................................................viii

Chapter 1: Introduction ................................................................................................................ 1

1.1 Facts of Authorization ........................................................................................................ 1

1.2 Problems & Purpose........................................................................................................... 1

1.3 Scope .................................................................................................................................. 2

1.4 Limitations ......................................................................................................................... 2

1.5 Historical Background ....................................................................................................... 3

1.6 Sources and Methods of Collecting Information ............................................................... 3

1.8 Report Review.................................................................................................................... 5

Chapter 2: Current Market Situation ............................................................................................ 6

2.1 Market Description ............................................................................................................ 6

2.1.1 Current Scenario of the Market ................................................................................... 6

2.1.2 Market Segmentation .................................................................................................. 6

2.1.3 Target Market .............................................................................................................. 7

2.1.4 Market Differentiation & Positioning ......................................................................... 8

2.2 Product Description............................................................................................................ 9

2.2.1 Product Review ........................................................................................................... 9

2.2.2 Customer Analysis ...................................................................................................... 9

2.2.3 Competitor Analysis .................................................................................................. 11

Chapter 3: Market Analysis........................................................................................................ 13

3.1 SWOT Analysis ................................................................................................................ 13

3.2 Porter’s Five Forces Model .............................................................................................. 16

Chapter 4: Objectives & Issues .................................................................................................. 19

Chapter 5: Marketing Strategy ................................................................................................... 23

vi
Chapter 6: Execution Plan for the Strategies ............................................................................. 26

Chapter 7: Financials ................................................................................................................. 28

7.1 Cost Breakdown ............................................................................................................... 28

7.1.1 Fixed & Variable Costs ............................................................................................. 28

7.1.2 Marketing & Distribution Costs ................................................................................ 29

7.2 Revenue Projection (Sales Forecast) ................................................................................ 31

7.3 ROI Analysis .................................................................................................................... 32

Chapter 8: Controls .................................................................................................................... 33

Chapter 9: Summary of Findings ............................................................................................... 35

Chapter 10: Conclusion .............................................................................................................. 36

References .................................................................................................................................. 37

vii
Executive Summary

This report presents a comprehensive marketing plan for Skin Café Sunscreen, focusing on its
competitive positioning in the growing skincare market in Bangladesh. The product emphasizes
natural ingredients, eco-friendly practices, and affordability, targeting health-conscious,
digitally active consumers aged 18–35, primarily women in urban areas. The marketing
strategy seeks to address challenges such as limited brand awareness, seasonal demand
fluctuations, and intense competition from established local and global brands.

Key objectives include expanding market penetration, enhancing consumer education about
sunscreen benefits, and building customer loyalty through innovative campaigns and product
offerings. The marketing strategy emphasizes social media engagement, influencer
collaborations, and SEO optimization to reach the target audience effectively. Offline channels,
such as point-of-sale marketing and community events, complement the digital initiatives.

A SWOT analysis highlights Skin Café's strengths in leveraging natural formulations and
affordability while identifying distribution limitations and intense competition as significant
challenges. Porter’s Five Forces analysis underscores the highly competitive rivalry and buyer
power in the market.

The financial analysis projects significant growth, with annual revenue increasing from BDT
30 million in the first year to BDT 46.9 million by year three, driven by a 25% annual sales
growth rate. Return on Investment (ROI) is expected to rise from 26.4% in the first year to
46.8% in the third year, showcasing financial sustainability.

Key recommendations include expanding online presence, targeting untapped rural markets,
introducing innovative products like tinted and water-resistant sunscreens, and fostering
customer engagement through loyalty programs. Continuous monitoring and adaptation of
strategies will ensure long-term success in the competitive skincare market. By prioritizing
natural ingredients, eco-conscious branding, and customer-centric marketing, Skin Café can
establish itself as a market leader in Bangladesh’s sunscreen category.

viii
Chapter 1: Introduction

1.1 Facts of Authorization

This report has been prepared by a group of students enrolled in the Department of Finance and
Banking, Faculty of Business Studies, Bangladesh University of Professionals. This report is a
part of the course "Principles of Marketing" under the guidance of our esteemed faculty
member, Ms. Sarabia Rahman, Assistant Professor, FBS, BUP, we were assigned to develop a
marketing strategy for a product of a company. We selected Skin Cafe Company’s sunscreen
for this analysis.

1.2 Problems & Purpose

Problems:

Skin Cafe’s sunscreen, despite being a quality product, faces challenges in effectively reaching
and engaging its target audience. The brand is struggling with differentiating its sunscreen in a
highly competitive skincare market, where numerous brands offer similar products.
Additionally, Skin Cafe has not fully optimized its marketing channels—such as social media,
influencer partnerships, and offline marketing—potentially missing opportunities to create
greater awareness and customer loyalty. There is also limited consumer education about the
unique benefits of Skin Cafe’s sunscreen, such as its natural ingredients or eco-friendly
packaging, which could appeal to health-conscious and environmentally aware consumers.
Furthermore, the brand's messaging and positioning might not clearly resonate with its target
demographics, leading to lower conversion rates and brand recall. These gaps in marketing
strategy hinder Skin Cafe's ability to increase market share and establish itself as a leader in
the sunscreen category.

Purpose:

The purpose of this term paper is to analyze and evaluate the marketing strategy for Skin Cafe’s
sunscreen. This study aims to critically assess the effectiveness of the current marketing
practices, focusing on product positioning, promotional tactics, and customer engagement
strategies. The research will explore the key marketing channels used by the brand, such as
digital marketing, influencer partnerships, and traditional media, to determine their

1
effectiveness in reaching the target audience. Additionally, it will assess how well Skin Cafe's
sunscreen is positioned in the market compared to competitors and whether the marketing
strategy aligns with consumer expectations and brand values. Ultimately, this paper seeks to
provide actionable recommendations for enhancing the marketing efforts of Skin Cafe to
increase brand awareness, customer loyalty, and sales in the competitive skincare industry.

1.3 Scope
The scope of this term paper is to examine and evaluate the marketing strategy of Skin Cafe’s
sunscreen within the context of the competitive skincare industry. This study will focus on
analyzing the various marketing approaches employed by the brand, including product
positioning, promotional tactics, and the use of different marketing channels such as social
media, influencer marketing, and traditional advertising. The scope will also encompass an in-
depth look at how effectively the brand’s messaging communicates the unique qualities of its
sunscreen, such as natural ingredients, sun protection benefits, and eco-friendly packaging.
Furthermore, this paper will assess the alignment of the current marketing strategy with the
brand’s overall objectives and consumer expectations. By doing so, the scope of this paper is
to identify potential areas for improvement in Skin Cafe’s marketing efforts, providing
recommendations that can help the brand enhance its market presence, drive customer
engagement, and ultimately increase sales in the sunscreen market.

1.4 Limitations

The limitations of this term paper are mainly centered around the availability of data and
resources. Since this study relies heavily on publicly available information, such as market
reports, online reviews, and the company’s marketing materials, it might not provide an entirely
comprehensive view of Skin Cafe’s internal marketing strategies or detailed financial data.
Additionally, due to time constraints, the research will not involve primary data collection such
as surveys or interviews with customers or company representatives, which could provide more
in-depth insights. Another limitation is that the analysis is based on a snapshot of the brand’s
current marketing activities, which may change over time due to evolving market trends and
business strategies. Lastly, while the paper will focus on Skin Cafe’s sunscreen product, it may
not fully capture all external factors, such as macroeconomic conditions or competitor
strategies, which could influence the brand’s performance in the market.

2
1.5 Historical Background

This term paper aims to analyze the marketing strategy for Skin Cafe’s sunscreen in the
competitive skincare market. Founded with a focus on natural, sustainable, and cruelty-free
products, Skin Cafe has capitalized on the growing consumer demand for clean, effective, and
eco-friendly skincare solutions. As the market shifts towards health-conscious and
environmentally aware products, Skin Cafe entered the sunscreen market offering products that
align with these values. The brand has used digital marketing, influencer partnerships, and
educational content to position its sunscreen as a premium, eco-friendly alternative to mass-
market products. This paper will assess Skin Cafe’s marketing strategy, focusing on product
positioning, customer engagement, and differentiation in a competitive landscape.

1.6 Sources and Methods of Collecting Information

For this term paper, the primary sources of information were Skin Cafe’s official website and
available marketing materials, which provided valuable insights into the brand’s product
offerings, positioning, and marketing strategies. Additionally, secondary data was gathered
from publicly available resources, including industry reports and online reviews, to assess
market trends and consumer behavior. The financial data used in the analysis is hypothetical,
as Skin Cafe’s specific financial information was not accessible. These sources allowed for a
comprehensive examination of Skin Cafe’s marketing strategy and helped form the basis for
the recommendations presented in this paper.

1.7 Definitions, Initialisms, Acronyms Definitions

Marketing Strategy: Marketing strategy refers to a comprehensive plan developed by a


company to promote its products or services to the target audience. It involves positioning,
branding, pricing, distribution, and promotional activities designed to achieve specific business
objectives, such as increasing sales, building brand awareness, and engaging customers.
Sunscreen: Sunscreen is a skincare product designed to protect the skin from the harmful
effects of ultraviolet (UV) radiation from the sun. Sunscreens typically contain active
ingredients that absorb or reflect UV rays, preventing sunburn, premature skin aging, and
reducing the risk of skin cancer.

3
Eco-friendly: Eco-friendly refers to practices, products, or strategies that are designed with
minimal impact on the environment. In the context of skincare, eco-friendly products often
involve sustainable sourcing, biodegradable ingredients, and recyclable or minimal packaging.
Brand Positioning: Brand positioning is the process of defining how a company’s product or
brand is perceived in the market relative to competitors. It involves identifying a unique selling
proposition (USP) that resonates with the target audience and differentiates the brand from
others in the marketplace.
Consumer Engagement: Consumer engagement refers to the interactions and relationships
between a brand and its customers. It includes strategies to connect with customers through
various channels, encouraging them to share feedback, participate in campaigns, and build
brand loyalty.
Hypothetical Financial Data: Hypothetical financial data refers to projected or assumed
financial figures used for analysis or forecasting when actual data is unavailable. These
estimates help in assessing potential business scenarios and understanding how different
strategies might impact a company’s financial performance.
Digital Marketing: Digital marketing encompasses all marketing efforts that use the internet
or electronic devices to promote products and services. This includes content marketing, social
media marketing, email campaigns, and influencer collaborations, aimed at reaching a target
audience through online channels.

Initialisms:
UV: Ultraviolet

PA: Protection Grade of UVA

UVA: Ultraviolet A (Causes aging)

UVB: Ultraviolet B (Causes burning)

USP: Unique Selling Proposition

ROI: Return on Investment

SEO: Search Engine Optimization

4
BUP: Bangladesh University of Professionals.

FBS: Faculty of Business Studies

SPF: Sun Protection Factor.

1.8 Report Review

Our term paper on Skin Café Sunscreen’s Marketing Plan is structured into several chapters to
present a comprehensive strategy. In Chapter 2, we analyze the current market situation,
focusing on target demographics, consumer behavior, and competition. Chapter 3 delves into
market analysis using a SWOT analysis and Porter’s Five Forces Model to evaluate strengths,
opportunities, and competitive dynamics. Chapter 4 outlines the objectives, such as enhancing
brand visibility and addressing consumer awareness gaps and identifies key challenges.
Chapters 5 and 6 detail the marketing strategy and execution plan, emphasizing product
differentiation, social media promotions, expanded distribution channels, and competitive
pricing. Chapter 7 presents a hypothetical financial report, including projected revenue growth,
marketing costs, and ROI, to validate the proposed strategy. The paper concludes by aligning
all findings with Skin Café’s mission to provide effective and natural skincare solutions.

5
Chapter 2: Current Market Situation

2.1 Market Description

2.1.1 Current Scenario of the Market

The current market for sunscreen in Bangladesh is experiencing significant growth, driven by
increasing awareness of skincare and the harmful effects of UV exposure. With a rising
preference for natural and eco-friendly products, consumers are seeking sunscreens that are
effective yet gentle on the skin(ltd, n.d.). Skin Café Sunscreen competes in a market dominated
by both local and international brands, where affordability, accessibility, and product quality
play key roles in influencing consumer choices. While traditional sunscreens remain popular,
the demand for lightweight, non-greasy formulas tailored to humid climates is on the rise.
However, challenges such as limited consumer education on the importance of sunscreen and
seasonal fluctuations in demand persist, making it crucial for brands like Skin Café to adopt
targeted marketing strategies to capture and sustain market share.

2.1.2 Market Segmentation

Market segmentation for Skin Café Sunscreen involves categorizing the target audience into
specific groups based on shared characteristics. Demographically, the primary audience
includes individuals aged 18-35, with a focus on women from middle to
upper-middle-income groups who prioritize skincare. Geographically, the brand targets urban
areas like Dhaka, Chattogram, and Sylhet, where awareness and purchasing power are higher,
with gradual expansion into semi-urban regions. Psychographically, the product appeals to
health-conscious individuals with eco-friendly values who prefer natural and chemical-free
skincare solutions. Behaviorally, the segmentation focuses on frequent users of sunscreen who
value lightweight, non-greasy formulas suitable for humid climates and seek effective sun
protection. By addressing these segments, Skin Café can implement tailored strategies to meet
diverse consumer needs and preferences.

6
Figure 2.1.2: Market Segmentation for Skin Cafe Sunscreen

Here is a graph representing the market segmentation for Skin Café Sunscreen, based on the
identified categories: age group (18-35), male consumers, and urban areas. This pie chart
illustrates the distribution of the target market based on key demographics, offering a clear
visualization of the segments.

2.1.3 Target Market

Skin Café Sunscreen primarily targets a digitally active audience that frequently engages with
online platforms for information, shopping, and lifestyle inspiration. This demographic consists
mainly of individuals aged 18-35, predominantly women, residing in urban areas like Dhaka,
Chattogram, and Sylhet. These individuals are tech-savvy, health-conscious, and eco-aware,
valuing natural, chemical-free skincare solutions.

The target audience is highly influenced by online content such as social media posts, beauty
blogs, product reviews, and influencer endorsements. They prefer purchasing products through
e-commerce platforms due to convenience, accessibility, and the availability of detailed
product information. Students, young professionals, and outdoor enthusiasts make up a
significant portion of this group, as they seek lightweight, non-greasy sunscreen suitable for
Bangladesh's humid climate.

7
Skin Café leverages this digitally connected audience by focusing on social media marketing,
engaging content creation, and user-generated reviews. By offering informative campaigns on
the importance of sun protection and building an active online community, the brand ensures a
strong connection with its target market, fostering both awareness and loyalty.

2.1.4 Market Differentiation & Positioning

Market Differentiation:
Skin Café Sunscreen differentiates itself in the highly competitive sun care market by focusing
on natural, chemical-free formulations that prioritize health and environmental sustainability.
Unlike many competitors, Skin Café uses organic and eco-friendly ingredients, making it a
preferred choice for health-conscious consumers who seek safe and effective skincare products.
The brand also emphasizes its suitability for the Bangladeshi climate, offering lightweight, non-
greasy, and humidity-friendly formulas, addressing a key consumer pain point.

Additionally, the brand’s differentiation extends to its ethical practices, including cruelty-free
testing and eco-conscious packaging, which appeal to environmentally aware consumers. By
positioning itself as a premium, homegrown skincare brand, Skin Café creates a unique blend
of quality, ethics, and relevance for local consumers who value natural products over synthetic
alternatives.

Market Positioning:
Skin Café Sunscreen positions itself as a premium, yet accessible brand tailored for modern,
digitally active consumers aged 18-35, particularly women in urban areas like Dhaka,
Chattogram, and Sylhet. This demographic includes students, young professionals, and socially
aware individuals who are deeply influenced by online content such as social media posts,
beauty blogs, product reviews, and influencer endorsements.

The brand focuses heavily on digital engagement to communicate its unique value proposition.
Through targeted social media campaigns, collaborations with local influencers, and
educational content about the importance of sunscreen, Skin Café builds trust and establishes
itself as a go-to brand for natural, effective sun protection. By leveraging platforms like
Instagram, Facebook, and e-commerce websites, it ensures its presence in the daily lives of
tech-savvy consumers.

8
2.2 Product Description

2.2.1 Product Review

Skin Café Sunscreen SPF 50 PA+++ has garnered positive feedback from users, particularly
those with busy, urban lifestyles who value effective sun protection combined with comfort.
Consumers frequently praise its lightweight, non-greasy texture, which makes it a perfect
choice for daily wear in Bangladesh’s humid climate(Skin Cafe, 2018). Many users have noted
that it does not clog pores, making it highly suitable for individuals with sensitive or acne-
prone skin.

Young professionals and students often highlight its matte finish, which blends well into the
skin without leaving a white cast. This feature is especially appreciated by makeup users, as
the sunscreen works seamlessly as a base without interfering with cosmetic products. Those
with oily skin have reported satisfaction with its ability to control excess shine, while dry skin
users find it hydrating enough without feeling heavy.

Consumers with heightened skincare awareness are drawn to the product's use of natural and
skin-friendly ingredients, aligning with their preference for chemical-free and eco-conscious
skincare solutions. Many have shared that regular use has not only protected their skin from
sun damage but also helped maintain an even tone, preventing dark spots and premature aging.

Online reviews often highlight the convenience of purchasing Skin Café Sunscreen through e-
commerce platforms, which is particularly appealing to tech-savvy individuals who prefer
shopping online. Social media users frequently share positive experiences, increasing the
brand's visibility and trustworthiness. Overall, Skin Café Sunscreen enjoys strong loyalty
among its users, who appreciate its blend of efficacy, comfort, and commitment to natural
skincare.

2.2.2 Customer Analysis

A deep and accurate understanding of Skin Café Sunscreen's customer base has been drawn by
analyzing demographic, psychographic, and behavioral patterns. This analysis helps in
outlining customer preferences, their skincare priorities, and purchasing behaviors.

9
Demographic Overview:
The primary target market for Skin Café Sunscreen consists of individuals aged 18-35,
predominantly women, living in urban areas such as Dhaka, Chattogram, and Sylhet. These
consumers belong to the middle and upper-middle-income groups, possessing disposable
income for premium skincare products. While women represent the dominant customer
segment, an emerging trend shows increasing interest in skincare among men, especially those
in the 18-30 age range. This growing demand from men presents a new opportunity for Skin
Café to expand its market reach.

Behavioral Insights:
Skin Café’s customers are predominantly digital natives, using online platforms for discovering
new products and making purchases. Most are well-versed in online shopping, often relying on
e-commerce websites and social media for product research, reviews, and recommendations.
Product transparency, detailed ingredient lists, and customer testimonials play an essential role
in shaping their purchasing decisions. Many customers are first-time sunscreen users, attracted
by Skin Café's promise of a non-greasy, lightweight formula, ideal for the humid Bangladeshi
climate.

Regular users of Skin Café Sunscreen appreciate its high SPF protection, non-comedogenic
properties (suitable for acne-prone skin), and the fact that it doesn’t leave a white cast, which
is a common problem with many sunscreens. The product’s suitability for daily use in urban
settings, without feeling heavy or oily, has won the trust of those seeking a reliable sunscreen
for hot and humid weather. Customers report that Skin Café Sunscreen easily absorbs into the
skin, offering lasting sun protection throughout the day.

Psychographics:
Skin Café’s customers are health-conscious and value sustainability, often preferring products
that are chemical-free, cruelty-free, and environmentally friendly. The demand for natural,
organic skincare products has been growing, and Skin Café has capitalized on this by offering
a formulation free from harmful chemicals, appealing to ethically-minded consumers. The
brand resonates with individuals who are not only concerned about personal well-being but
also want to make a positive environmental impact.

This segment of customers is particularly inclined toward “clean beauty” trends, where
products are transparent in their ingredients and ethical in their production. Skin Café

10
Sunscreen's promise of using eco-conscious packaging and natural ingredients aligns well with
the values of this growing customer base, which seeks brands that reflect their personal beliefs.

Buying Behavior & Channels:


Skin Café Sunscreen customers primarily shop online, which reflects the preferences of the
target demographic. E-commerce platforms, social media channels, and beauty blogs provide
them with easy access to product information, reviews, and the convenience of home delivery.
In Bangladesh, online shopping has grown exponentially, and customers are more likely to
make impulse purchases after seeing influencers or friends share their experiences with the
product.

Social media marketing is crucial in reaching the target audience, particularly through
platforms like Instagram, Facebook, and YouTube. Influencer endorsements, tutorials, and
user-generated content heavily influence purchase decisions. Customers are also attracted to
Skin Café’s strong online presence, with many seeking out the brand based on positive online
reviews.

Offline sales channels are still relevant, particularly in high-traffic retail outlets like shopping
malls and pharmacies. However, offline sales are supplementary to the online market, and Skin
Café has to focus on maintaining a strong digital presence to attract younger consumers who
engage with brands on social media.

2.2.3 Competitor Analysis

1. Korean Brands

● Beauty of Joseon: Popular sunscreen “Relief Sun: Rice + Probiotics” is a lightweight,


non-greasy formula enriched with rice extract and probiotics, offering SPF 50+
PA++++. It has gained massive popularity for its moisturizing and soothing properties,
particularly for sensitive and dry skin.
● Innisfree: Known for “Daily UV Defense Sunscreen SPF 36”, a water-based sunscreen
that feels hydrating and is formulated with green tea and centella asiatica. It targets
urban consumers needing daily sun protection and antioxidant benefits.

11
2. Drugstore Brands

● CeraVe: The “Hydrating Mineral Sunscreen SPF 30/50” is enriched with ceramides and
niacinamide, designed for sensitive and eczema-prone skin. It is a popular choice for
consumers seeking dermatologist-backed products.
● Cetaphil: Known for “Sheer Mineral Sunscreen SPF 50”, which provides broad-
spectrum protection with a lightweight, non-comedogenic formula, ensuring
compatibility with sensitive skin.

Figure 2.2.3: Competitor Analysis of Skin Cafe Sunscreen

12
Chapter 3: Market Analysis
Market analysis refers to the process of analyzing a market to understand how it operates,
including examining the business unit's strengths and weaknesses. This strategic review
consists of gathering information on firms, people, and even trends in the market. A properly
conducted market analysis reveals critical information that organizations need to know, such
as the size of the market and potential business prospects. In the context of skin Cafe Sunscreen,
this chapter focuses on two essential aspects: SWOT Analysis and Porter's Five Forces Model,
and it utilizes well-crafted visuals to address the appropriate topics.
3.1 SWOT Analysis

To get a better grasp of Skin Cafe's current standing and spot key areas to grow, we did a SWOT
analysis. This approach looks at the company's internal Strengths and Weaknesses, along with
external Opportunities and Threats that can have a big impact on how well it does in the tough
sunscreen market down the road.

Strengths
Natural Ingredients: People love that Skin Cafe Sunscreen is made with natural, skin-friendly
ingredients. It’s a big plus for anyone trying to avoid harsh chemicals. It’s chemical-free, eco-
friendly formulations meet rising customer demand for "clean beauty." Local Expertise: Since
it is a domestic brand from Bangladesh, it appeals to local customers who prefer to support
small companies.
Eco-Friendly Packaging: Environmentally conscious consumers are drawn to its sustainable
business practices.
Multiple SPF Options: Offering both SPF 30 and SPF 50 caters to a variety of skin types and
demands.
Positive User Feedback: Lightweight, non-greasy texture and absence of white cast make it a
preferred choice among users.
Affordable Pricing: Marketed as a more affordable option to global brands, attracting middle-
class customers.

13
Weaknesses
Limited Distribution: Focusing on urban areas (Dhaka, Chattogram, and Sylhet) limits access
to rural and semi-urban markets.
Low Awareness Beyond Cities: People in smaller towns might not even know the brand exists.
Narrow Product Line: There is a lack of adaptation as compared to competitors who offer
flexible skincare lines.
Price Sensitivity: Mid-to-upper market pricing may turn off price-conscious clients.
Seasonal Demand: Sunscreen consumption in Bangladesh frequently peaks during the
summer, resulting in uneven sales throughout the year.

Opportunities
Expand Online Presence: To increase brand visibility and reach a wider audience, they can
make use of influencer collaborations, social media marketing, and targeted online advertising.
Growing Awareness: More people are realizing the importance of sunscreen, which is creating
a larger market.
Collaboration Potential: Reach could be increased by collaborating with dermatologists or
influencers.
Niche Market Targeting: Products designed for sensitive or acne-prone skin can appeal to
specific consumer groups.
Export Potential: Global demand for eco-friendly skincare products is rising, creating
opportunities for worldwide growth.
Expanding Product Range: Consider products for sensitive skin, tinted sunscreens, or after-
sun care.

14
Threats
Heavy Competition: Established brands like Beauty of Joseon and drugstore options like
Cetaphil or local brands like Bio-Xin dominate the market.
Counterfeit Products: The risk of imitation undermines consumer trust.
Economic Challenges: In a price-sensitive market, economic downturns can hit sales hard for
Skin Cafe.
Fake Products: The reputation of the brand may suffer if counterfeit goods are sold.
Regulatory Compliance: Strict cosmetic laws could make procedures more expensive.
Shifting Consumer Preferences: Swift changes in beauty trends could impact the relevancy
of a product.

SWOT Analysis Summary for SkinCafe Sunscreen

Figure 3.1: SWOT Analysis

15
3.2 Porter’s Five Forces Model
Porter's Five Forces model will help us better grasp the competitive environment and
possibilities of the sunscreen market for skin Cafe. By concentrating on five major factors that
influence competition, this framework examines the market: competitive rivalry, the threat of
new entrants, the bargaining power of buyers, the bargaining power of suppliers, and the threat
of substitutes. By analyzing these factors, we can determine what challenges Skin Cafe faces
and the chances it can take advantage of.

1. Threat of New Entrants

Intensity: Moderate.
Explanation: Even though it's quite easy to enter the market, new entrants frequently
face difficulties establishing distribution networks, building brand awareness, and
settling the complicated regulatory framework.
Implications: By using its well-established brand reputation and prioritizing the
development of strong customer relationships, Skin Cafe may limit the entry of new
entrants into the market.

2. Bargaining Power of Suppliers


Intensity: Moderate.
Explanation: Skin Cafe relies on a small number of suppliers for its natural ingredients,
which may provide them more bargaining power.
Implications: Skin Cafe should prioritize developing connections with key suppliers
while also exploring other sourcing options to provide a consistent and cost-effective
supply chain.

3. Bargaining Power of Buyers


Intensity: High.
Explanation: Consumers in Bangladesh have a wide range of sunscreen alternatives,
from premium to cost-effective. Price is a significant factor in their shopping decisions,
with many being extremely price sensitive.

16
Implications: Skin Cafe must provide attractive value propositions such as competitive
pricing, high-quality ingredients, and great customer service in order to stand out and
retain customers.

4. Threat of Substitutes
Intensity: High.
Explanation: Substitutes, such as SPF-containing moisturizers or makeup items, DIY
remedies, or just seeking shade, can substantially weaken sunscreen sales.
Implications: Skin Cafe should concentrate on educating customers about why a
specialized sunscreen is the best choice. They can highlight wide-ranging protection,
water resistance, and how their products adapt to different skin types.

5. Competitive Rivalry
Intensity: High
Explanation: The sunscreen market in Bangladesh is super competitive. With global
brands like Beauty of Joseon, Cetaphil, and La Roche-Posay alongside local players
like Bio-Xin all fighting for a piece of the pie. Price wars, large marketing campaigns,
and rapid product innovation are the norm in this industry.
Implications: Skin Cafe must develop a strong brand, provide distinctive products, and
design smart marketing plans to stand out in this jam-packed market.

17
Porter’s Five Forces Pie Chart

Figure 3.2: Porter’s Five Forces Pie Chart

18
Chapter 4: Objectives & Issues

In this chapter, I'll delve into the goals that skin Cafe wants to accomplish with their sunscreen
and the primary issues that could come up in the process. In order to successfully navigate the
market's obstacles, any business, including skin Cafe, needs to have a clear vision and strategy.

Objectives
As the sunscreen market changes, skin Cafe wants to differentiate itself from the competition
by providing a product that appeals to its customers more deeply. The goals can be divided into
the following general categories:

Market Penetration: A short-term goal can be to establish a firm presence in city marketplaces
where people are already very conscious of skincare. Targeting skincare enthusiasts and
professionals that make sun protection a top priority as part of their daily routine is a great way
to do this. The long-term objective is to gradually extend into rural and semi-urban locations.
Due to the belief that sunscreen is still a luxury rather than a need, these areas reflect unused
potential. Educating and demand-building in these areas are the targets.
Customer Education: Many individuals underestimate sunscreen because they think it's more
for style than for health. By conducting campaigns that emphasize the importance of sunscreen
in preventing sunburn, early aging, and even skin cancer, skin Cafe hopes to change this
perception. Building trust and raising awareness will primarily involve workshops, online
content, and partnerships with dermatologists and influencers.

Long-Term Growth: It takes sustainability, not just numbers, to achieve growth. By


emphasizing premium products, reasonable prices, and eco-friendly operations, skin Cafe aims
to sustain consistent growth in its market share. Introducing travel-sized variations, water-
resistant formulas, and tinted sunscreens into the product line would diversify its appeal and
meet the needs of a wide range of customers.

Customer Satisfaction and Values: According to skin Cafe, every customer should feel like
more than just a transaction. This means giving top priority to product quality, providing
exceptional customer service, and attending to particular skincare issues. Values like

19
participation, sustainability, and health concern are key to the brand's ideology. skin Cafe wants
to build a stronger bond with its audience by acting up to these objectives.

Brand Loyalty: Gaining new clients is not as crucial as keeping existing ones. Skin Cafe wants
to increase customer loyalty with programs like subscription plans, special benefits for regular
customers, and custom skincare advice. Storytelling will be important in this case; whether it's
about the brand's beginnings, the natural ingredients chosen, or the people who created the
product, Skin Cafe wants its customers to feel involved in its journey.

Global Presence: Although Bangladesh is the current focus, Skin Cafe aims to expand
internationally. An enormous opportunity exists in international markets due to the rising
demand for eco-friendly and natural skincare products.

Issues
Even if the goals are high, Skin Cafe needs to be ready for any obstacles that can come in the
way of its growth. Long-term success will depend on tackling these problems head-on.

Lack of Awareness: Sunscreen is not yet considered a daily necessity by many Bangladeshis,
which limits market demand. The belief is the result of both cultural misconceptions about
skincare and a lack of information.
Skin Cafe must make significant investments in awareness programs to address this, using
easily accessible material that links sunscreen use to better skin and defense against aging or
major health risks. Using real-life success stories and collaborating with medical experts can
increase the effect of these efforts.

Tough Competition: The skincare industry is crowded with both domestic rivals like Bio-Xin
and global giants like Beauty of Joseon. Differentiation is therefore essential for growth and
survival.
Skin Cafe needs to highlight its unique value propositions, which include low prices, eco-
friendly packaging, natural ingredients, and a brand narrative that is relevant to the local area.
Its competitive edge will be maintained by constant innovation and quick adaptation to market
developments.

20
Engaging Audiences in Rural Areas: Distribution to rural and semi-urban areas can be costly
and logistically difficult. Furthermore, penetration may be hampered by cultural opposition to
sunscreen use in some regions.
Skin Cafe can close this gap and increase product accessibility by working with regional
distributors, providing region-specific marketing techniques, and growing its online sales
channels. Addressing cultural stigmas can also be facilitated by collaborations with advocacy
organizations and local influencers.

Economic Constraints: Since many Bangladeshi consumers choose affordability over high-
end goods, price sensitivity plays a big role in the market. Stability in the economy can make
this problem worse.

A broader audience can be reached by skin Cafe by providing tiered pricing options or more
reasonably priced, smaller packing sizes. Additionally, trial packs or limited-edition special
offers can attract new customers.

Regulatory and Compliance Risks: Achieving regulatory compliance can be challenging,


particularly in context with the growing attention around cosmetics. Problems with operations
and damage to the brand's reputation might result from regulatory changes or non-compliance.
skin Cafe may lessen this by staying ahead of the law, acquiring the required certifications, and
continuing to be open and honest about its ingredients and operations. Consulting with
compliance experts and professionals can offer proactive advice.

Counterfeit Concerns: The reputation of the brand can be harmed, and trust undermined by
the large number of counterfeit products on the market. skin Cafe may be associated with
inferior counterfeit goods by unaware consumers.
To assist customers in identifying real products, skin Cafe should concentrate on employing
techniques such as QR codes and secure packaging. Educating customers on how to spot
counterfeit products will also be essential.

Rapidly Changing Consumer Trends: Consumer preferences can change rapidly, and
trends drive the cosmetics industry. If products don't adapt to these developments, they may
become obsolete.

21
With consistent R&D spending and frequent client input, skin Cafe will be able to keep ahead
of these changes. And it will adapt its innovations accordingly. They can also work with trend
analysts and keep an eye on social media insights, which can provide more insight.

Environmental and Sustainability Challenges: As customers' understanding of sustainability


grows, they are paying more attention to how brands affect the environment. Concerns may arise
over ingredient sourcing and packaging waste.

To overcome these obstacles, skin Cafe needs to make a commitment to environmentally


friendly methods like ethical sourcing and biodegradable packaging. Credibility will also be
increased through open communication about these initiatives.

By taking strategic steps to overcome these obstacles, skin Cafe may establish a clear route to
success. The goal is to create a reputable, value-driven brand that appeals to consumers,
embraces sustainability, and makes an identity for itself in a crowded market, not only to make
money. Everything that is done will help skin Cafe achieve its goal of becoming a market leader
in sunscreen and genuinely improving people's lives.

22
Chapter 5: Marketing Strategy

Social media marketing: It's difficult to come across a brand website or even a traditional
media advertisement without links to the business's social media accounts on Facebook,
Instagram, Twitter, YouTube, Snapchat, TikTok, Pinterest, LinkedIn, and other platforms.
Social media offers fascinating chances to increase consumer interaction and spark brand
discussion (Kotler et al., 2024).

While Skin Cafe is active on Facebook, Instagram, and LinkedIn, it does not yet have official
accounts on TikTok or YouTube, which are highly popular platforms among the younger
demographic. Additionally, Skin Cafe’s Facebook and Instagram accounts currently have a
relatively low follower base.

By reaching a younger audience on TikTok and YouTube, Skin Cafe can improve its online
visibility. YouTube may offer product demos, user reviews, and instructions, while TikTok can
concentrate on skincare routines, challenges, and influencer partnerships. Skin Cafe should
keep interacting with customers on Facebook and Instagram by showcasing their products and
running promotions. They can also utilize Instagram Reels to provide fast suggestions.
Visibility can be increased with paid advertisements on Facebook, Instagram, and TikTok. The
target audience will become more aware of and loyal to the business with regular posting,
influencer collaborations, and community involvement.

SEO (Search Engine Optimization): By optimizing for pertinent keywords like "sunscreen
for humid climates," "natural skincare Bangladesh," and "best sunscreen for sensitive skin,"
Skin Cafe may increase the exposure of their website. To raise their search engine ranks and
increase organic traffic, they should concentrate on producing high-quality material about skin
care procedures, product advantages, and sun protection advice.

Positioning the Brand as Superior: Skin Cafe is a premium, eco-friendly skincare brand that
stands out in the Bangladeshi market by combining superior sun protection with sustainability.
Offering SPF 50 PA+++ to shield against both UVA and UVB rays, its lightweight, mattifying
formula ensures a smooth finish with no white cast, making it ideal for everyday use (About
Skincafe, n.d.). What truly sets Skin Cafe apart is its commitment to using natural, non-
comedogenic, non-toxic ingredients like titanium dioxide, paired with dermatologically tested

23
formulas designed to provide effective protection against Bangladesh’s intense UV exposure
and humid climate (About Skincafe, n.d.).

Portraying Consumer Pain Points & Solutions: Many people in Bangladesh struggle to find
affordable sunscreens suitable for sensitive or oily skin, as most belong to low- to middle-
income families. Skin Café can address these concerns by highlighting how its lightweight,
non-greasy sunscreen provides long-lasting UV protection without clogging pores or causing
breakouts. Designed for humid climates, these sunscreens offer an effective and accessible
solution to common skincare challenges such as UV damage, oiliness, and irritation.

Promoting Locally Tailored Features: Skin Cafe can emphasize how its sunscreen is
thoughtfully tailored to meet the unique needs of Bangladeshi consumers, considering the
country’s hot, polluted, and humid climate. With features like sweat and water resistance and a
non-oily, lightweight formula, it ensures effective protection and comfort throughout the day.
Additionally, the use of Bengali packaging creates a deeper connection with local consumers,
resonating with their cultural identity and enhancing the brand's relatability.

Leveraging Competitive Advantage: Skin Cafe can highlight its competitive advantage by
showcasing its dedication to applying natural, chemical-free substances in its sunscreen and
providing reasonable prices without sacrificing quality. They can demonstrate how Skin Cafe
combines local expertise with global skincare standards to provide affordable goods that are
specifically suited to Bangladesh's particular skincare requirements.

Public Relations: They can engage in strategic PR campaigns by collaborating with local
beauty experts, dermatologists, and influencers to build trust and credibility. Issuing press
releases about new product launches, partnerships, and eco-friendly initiatives can position
Skin Cafe as a thought leader in the skincare industry.

Events: Skin Cafe can organize skincare workshops, webinars, and pop-up events in major
cities to connect directly with consumers. These events can include exclusive discounts, free
product samples, and educational sessions on the importance of regular sunscreen use. Other
than these, they can come up with occasional promotional offers. Additionally, hosting live
Q&A sessions with dermatologists and skincare influencers can boost brand visibility, foster
trust, and strengthen customer loyalty.
Point of Sale Marketing: At retail stores, they can design eye-catching and educational in-
store displays that highlight the main advantages of Skin Cafe sunscreen, including its SPF 50

24
PA+++, lightweight, non-greasy texture. To promote impulsive purchases by customers, they
can also provide testers, advertising leaflets, and package discounts (such as sunscreen +
cleansing oil). They can work with chains of pharmacies and cosmetics shops to put the product
on display close to checkout stations.

Customer Loyalty Programs: They can Introduce a loyalty program where customers earn
points on each purchase of Skin Cafe products, redeemable for discounts or free items.
Additionally offering exclusive perks for repeat buyers, such as early access to new product
launches, birthday discounts, or free samples of complementary skincare products can increase
their brand popularity.

Customer Brand Advocacy: Good marketers prioritize customer satisfaction, understanding


that it fosters loyalty and boosts company performance. By promising only what they can
deliver and over delivering, they can delight customers, transforming them into loyal brand
advocates and customer evangelists who eagerly share their positive experiences (Kotler et al.,
2024). For Skin Café, encouraging satisfied customers to share reviews, testimonials, and social
media posts can amplify this effect. Incentivizing referrals with rewards or discounts and
showcasing user-generated content, such as before-and-after photos, helps build trust,
engagement, and a strong community around the brand.

Brand Partnerships: They can partner up with fitness centers, wellness retreats to position
Skin Cafe sunscreen as a must-have for an active and health-conscious lifestyle for its sweat
resistance, all-skin-type friendly formula. Skin Cafe can collaborate with local influencers,
dermatologists, and beauty bloggers to endorse the product and share educational content about
its benefits. Additionally, teaming up with other eco-friendly Bangladeshi brands for joint
promotional campaigns or bundled offers can expand reach and appeal like-minded consumers.

25
Chapter 6: Execution Plan for the Strategies

Setting Clear Goals: They need to establish specific, measurable objectives for each strategy.
For example, increasing social media engagement by 40% in six months, boosting sales of
sunscreen by 30% during summer, or growing YouTube and TikTok followers to a set target
within a year after creating official YouTube and TikTok accounts.

Allocating Budget: Determining the budget for each initiative, such as paid advertisements,
influencer collaborations, event hosting, and loyalty programs is necessary. Also, they should
ensure a balance between digital marketing (ads, content creation) and offline activities (events,
point-of-sale promotions).

Developing a Timeline: Skin Café can create a phased timeline that prioritizes foundational
activities like SEO optimization and social media account launches, followed by events and
brand partnerships. Setting specific deadlines for milestones like campaign launches, loyalty
program rollouts, and new product promotions can also help them execute the planned
strategies.

Monitoring and Evaluating: Usage of analytics tools to measure the effectiveness of


campaigns across platforms should be prioritized. The employees of the brand should monitor
key metrics like ad click-through rates, website visits, conversion rates, and customer
engagement levels.

Analyzing Data: They should regularly analyze collected data to assess the success of
strategies and identify trends. For instance, tracking which platforms drive the most traffic or
which loyalty program incentives attract the highest participation.

Tailoring Marketing Efforts: Refining campaigns based on target audience, customer


preferences and feedback are important. If TikTok content resonates more with younger
audiences, they should allocate more resources there. Similarly, emphasizing educational
content on platforms where experienced consumers seek detailed product knowledge should
be prioritized.

Brand Consistency: Ensuring that all marketing efforts reflect Skin Café's premium, eco-
friendly identity. Maintaining uniform branding, tone, and design across social media,
packaging, and promotional materials can build a cohesive image.

26
Innovation: Incorporating creative ideas like interactive skincare challenges on TikTok,
limited-edition seasonal packaging, or augmented reality features for virtual sunscreen try-ons
to keep the brand fresh and engaging.

Strengthening R&D Department: To establish technological leadership, Skin Cafe should


invest in its R&D department, focusing on developing innovative sunscreen formulas tailored
to Bangladesh's climate and consumer needs. By staying updated on the latest skincare
advancements, Skin Cafe can create superior products that stand out in the market. Training a
skilled technical sales team will help communicate these innovations effectively to customers
(Kotler & Keller, 2016). This focus on innovation and quality will lead to higher customer
satisfaction, repeat business, and growth, creating a positive cycle that drives profitability and
strengthens the brand’s position in the market (Kotler & Keller, 2016).

Customer Feedback: Actively seeking feedback through surveys, social media polls, and
reviews is much required for the brand to show a customer friendly image. They should use
this feedback to improve products, refine messaging, and strengthen the connection with
customers. Engaging customers directly demonstrates that their opinions matter and builds
trust.

27
Chapter 7: Financials

7.1 Cost Breakdown

7.1.1 Fixed & Variable Costs

Category Types Estimated Cost in BDT Unit/Time

Equipment and
Machinery
Fixed 55,00,000 One-time

Factory Rent/Lease Fixed 5,50,000 Monthly

Regulatory Approvals Fixed 22,00,000 One-time

Salaries for Permanent


Staff
Fixed 11,00,000 Monthly

Brand Development Fixed 5,50,000 One-time

Utilities (Base Rate) Fixed 1,10,000 Monthly

Raw Materials Variable 220 Per unit

Packaging Materials Variable 110 Per unit

Labor (Variable) Variable 55 Per unit

Utilities (Production) Variable 33 Per unit

Table 7.1.1 : Fixed & Variable Costs for SkinCafe Sunscreen

Reference: (Plant Report, 2024)

28
7.1.2 Marketing & Distribution Costs

Estimated
Cost Cost
Category Type (BDT) Frequency Details

Paid ads on Facebook, Instagram,


Social Media 1,00,000 - TikTok; content creation for Reels,
Marketing Variable 3,00,000 Monthly YouTube videos, TikTok trends.

Keyword research, website


SEO 1,50,000 - optimization, blog creation, and
Optimization Fixed 3,00,000 One-time implementation.

Influencer 50,000 - Per Partnerships with skincare influencers


Collaborations Variable 2,00,000 campaign on Instagram, TikTok, and YouTube.

Organizing workshops, webinars, and


Events & Fixed/Va 2,00,000 - promotional pop-up events in major
Pop-Ups riable 5,00,000 Per event cities.

Point-of-Sale 1,00,000 - In-store displays, testers, leaflets, and


Marketing Fixed 2,00,000 Per setup promotional discounts at retail outlets.

Customer
Loyalty 50,000 - Reward points system, exclusive perks,
Programs Variable 1,00,000 Monthly and early access to products.

Brand 1,00,000 - Per Collaborations with eco-friendly


Partnerships 3,00,000 partnership brands, wellness centers, and
Variable dermatologists.

YouTube and
TikTok Fixed/Va 2,00,000 - Video production, tutorials, challenges,
Content riable 5,00,000 Quarterly and product demos.

Press releases, media outreach, and


Fixed/Va 1,50,000 - Per partnerships with beauty editors and
PR Campaigns riable 3,00,000 campaign experts.

Distribution 5 - 20 per Transportation, logistics, and supply


Costs Variable unit Per unit chain costs for retail and online orders.

Margins for pharmacy and cosmetics


Retailer 20% - 30% Per unit store chains for stocking and selling
Margins Variable of MRP sold Skin Cafe products.

Table 7.1.2: Marketing & Distribution Costs

29
7.1.3 Marketing Expenses Budget

Estimated Cost
(BDT)
Category Frequency Allocation (BDT)

Social Media Marketing 1,00,000 - 3,00,000 Monthly 3,60,000

SEO Optimization 1,50,000 - 3,00,000 One-time 2,25,000

Per
campaign
Influencer Collaborations 50,000 - 2,00,000 1,50,000

Events & Pop-Ups 2,00,000 - 5,00,000 Per event 3,00,000

Point-of-Sale Marketing 1,00,000 - 2,00,000 Per setup 1,50,000

Customer Loyalty
Programs
50,000 - 1,00,000 Monthly 6,00,000

Per
partnership
Brand Partnerships 1,00,000 - 3,00,000 1,50,000

YouTube & TikTok


Content
2,00,000 - 5,00,000 Quarterly 4,00,000

Per
campaign
PR Campaigns 1,50,000 - 3,00,000 2,25,000

1,50,000 (estimated based


on projected sales)
Distribution Costs 5 - 20 per unit Per unit

Per unit 3,00,000 (estimated based


sold on projected sales)
Retailer Margins 20% - 30% of MRP

Table 7.1.3: Marketing Expenses Budget

30
7.2 Revenue Projection (Sales Forecast)

Year Units Sold Revenue (BDT)

Year 1 50,000 30,000,000

Year 2 62,500 37,500,000

Year 3 78,125 46,875,000

Table 7.2: Revenue Projection for 3 years

Reference: (Statista Market Forecast, 2024)


Assumptions:

1. Selling Price per Unit: BDT 600.


2. First-Year Sales Volume: 50,000 units.
3. Annual Sales Growth Rate: 25%.
4. Revenue Formula: Revenue = Selling Price per Unit × Units Sold
Calculations
Year 1
Revenue = 600 x 50,000
= 30,000,000 BDT

Year 2
Units Sold = 50,0000 X 1.25
= 62500 UNITS
Revenue = 600 X 62500
= 37,5000,000 BDT

Year 3
Units Sold = 62500 x 1.25
= 78125 UNITS

31
Revenue = 600 X 78125
= 46875 BDT

7.3 ROI Analysis

Investment
(BDT)
Year Revenue (BDT) Profit (BDT) ROI (%)

1 8,250,000 30,000,000 21,750,000 26.36

2 8,250,000 37,500,000 29,250,000 35.45

3 8,250,000 46,875,000 38,625,000 46.82

Table 7.3: ROI Analysis

Assumptions:

● ROI Calculation Period: Year 1, Year 2, and Year 3


● Investment: Sum of Fixed Costs as the initial investment.

Calculations:

Year 1:

● Investment:
○ Equipment and Machinery: 55,00,000 BDT
○ Regulatory Approvals: 22,00,000 BDT
○ Brand Development: 5,50,000 BDT
○ Total: 82,50,000 BDT
● Revenue: 30,000,000 BDT
● Profit: 30,000,000 BDT - 82,50,000 BDT = 21,75,000 BDT
● ROI: (21,75,000 BDT / 82,50,000 BDT) X 100 = 26.36% Year 2:

● Investment: 82,50,000 BDT (assuming no additional fixed costs)


● Revenue: 37,500,000 BDT
● Profit: 37,500,000 BDT - 82,50,000 BDT = 29,25,000 BDT
● ROI: (29,25,000 BDT / 82,50,000 BDT) X 100 = 35.45% Year 3:

● Investment: 82,50,000 BDT (assuming no additional fixed costs)


● Revenue: 46,875,000 BDT
● Profit: 46,875,000 BDT - 82,50,000 BDT = 38,625,000 BDT
● ROI: (38,625,000 BDT / 82,50,000

32
Chapter 8: Controls

For the purpose of ensuring a successful implementation and long-term effectiveness of the
marketing plan, some control mechanisms are essential. These controls will monitor progress,
identify deviations from the planned course, and allow for timely adjustments to optimize
marketing efforts.

Key Performance Indicators (KPIs)

● Sales Growth: Track monthly and quarterly sales figures to assess the impact of
marketing initiatives on revenue generation.
● Market Share: Monitor market share trends to gauge the brand's competitive position
and identify areas for improvement.
● Brand Awareness: Track brand mentions, social media reach, and website traffic to
measure brand visibility and awareness.
● Customer Engagement: Monitor social media engagement (likes, comments, shares),
website traffic, and customer feedback to assess the effectiveness of communication
efforts.
● Customer Acquisition Cost (CAC): Calculate the cost of acquiring new customers to
evaluate the efficiency of marketing spend.
● Customer Lifetime Value (CLTV): Analyze customer purchasing behavior to estimate
the long-term value of each customer to the brand.
● Return on Investment (ROI): Continuously track and analyze the ROI of each
marketing campaign to optimize budget allocation and resource allocation.

Monitoring and Evaluation

● Regular Reviews: Conduct regular reviews of marketing performance, analyzing key


metrics and comparing actual results against set targets.
● Competitive Analysis: Continuously monitor competitor activities, including new
product launches, marketing campaigns, and pricing strategies.
● Customer Feedback: Gather customer feedback through surveys, social media
interactions, and customer service inquiries to identify areas for improvement.
● Market Research: Conduct ongoing market research to stay abreast of changing
consumer preferences and market trends.

33
● Budget Adjustments: Based on performance analysis, adjust the marketing budget as
needed to allocate resources effectively.

Contingency Planning

● Economic Downturn: Develop contingency plans to address potential economic


downturns, such as adjusting pricing strategies, focusing on cost-effective marketing
channels, and offering value-added promotions.
● Competitive Threats: Develop strategies to address potential competitive threats, such
as product innovation, improved customer service, and enhanced brand positioning.
● Supply Chain Disruptions: Develop contingency plans for potential disruptions in the
supply chain, such as sourcing alternative suppliers or adjusting production schedules.
● Regulatory Changes: Stay informed about any changes in regulations and ensure
compliance to avoid legal and financial risks.

34
Chapter 9: Summary of Findings

The analysis reveals that skin Cafe Sunscreen, while offering a quality product with a focus on
natural ingredients, faces challenges in effectively reaching and engaging its target audience.
The competitive landscape is intense, with established local and international brands vying for
market share. Key findings include:

● Strong Potential: The growing awareness of sunscreen and the increasing demand for
natural and eco-friendly products present significant opportunities for skin Cafe.
● Competitive Advantage: Skin Cafe’s focus on natural ingredients, eco-friendly
practices, and affordable pricing provides a competitive edge.
● Digital Marketing Importance: Leveraging digital channels such as social media,
influencer marketing, and content marketing is crucial for reaching the target audience.
● Customer Education: Educating consumers on the importance of sunscreen and the
benefits of skin Cafe’s offerings is essential for driving demand.
● Distribution Challenges: Expanding distribution channels and reaching rural markets
present logistical and operational challenges.
● Financial Sustainability: Maintaining profitability while investing in marketing and
product development is critical for long-term success.

35
Chapter 10: Conclusion

In conclusion, Skin Cafe Sunscreen has the potential to become a leading brand in the
Bangladeshi market. By implementing a comprehensive marketing strategy that focuses on
building brand awareness, strengthening customer relationships, and expanding distribution
channels, Skin Cafe can achieve its marketing objectives and capitalize on the growing demand
for natural and effective skincare solutions. The focus on natural ingredients, eco-friendly
practices, and customer-centric approach will be key to differentiating the brand and building
a loyal customer base. Continuous monitoring, evaluation, and adaptation of the marketing plan
will be crucial to ensure long-term success in the dynamic and competitive skincare market.

36
References

About Skincafe, S. (n.d.). Skin Cafe Sunscreen SPF 50 PA+++ Lightweight & Non-Greasy—

60gm—Skin Cafe. Retrieved January 11, 2025, from

[Link]

m/

Kotler, P., Armstrong, G., & Balasubramanian, S. (2024). Principles of marketing

(Nineteenth edition, global edition). Pearson.

Kotler, P., & Keller, K. L. (2016). Marketing management (Fifteenth edition, Global edition).

Pearson.

ltd, R. and M. (n.d.). Bangladesh Skin Care Products Market Report and Forecast

2024-2032. Retrieved January 11, 2025, from

[Link]

-market-report

Plant Report. (2024). Sunscreen Manufacturing Plant Report 2024: Setup & Cost.

[Link]

Skin Cafe. (2018, October 16). Home—Skin Cafe. [Link]

Statista Market Forecast. (2024). Skin Care—Bangladesh | Statista Market Forecast. Statista.

[Link]

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