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IMC Sparsh Integrated Marketing Communication PDF
IMC Sparsh Integrated Marketing Communication PDF
ASSIGNMENT
SUBMITTED TO
PROF. PINAKI GHOSH
SUBMITTED BY
Akhilesh Mishra (Roll no. 6)
The soap industry in India is at the high growth rate and many new entrants are
planning to launch their product in this category. The overall soap industry is
worth 60,000 crores. Prakriti Organics is a startup and targets at entire family
with their various organic soaps.
Tactical marketing tools, 4Ps, will be extensively used by our company to market
the products. The products are produced in India. There are 4 varieties of soap
based on skin type dry skin, normal skin, oily skin and for babies. Since the
demand for soap market is to a great extent oligopolistic, variations in price lead
to price war which can eventually break down the companys market share. Thus
Prakriti Organics cannot provide a better price than its competitors. But the price
is affordable by most of the people. Prakriti Organics will outsource its
distribution channel to third party distributors which allow them to distribute
product in massive bulks amounting to around Twelve thousand pieces. It
undertakes one of the largest promotional activities in the herbal soap industry.
The soap industry has a few major producers of which Hindustan Unilever holds
market share of 70%. Other competing brands like Godrej, P&G and Johnson &
Johnson have started to have a strong consumer base, but Prakriti Organics
product features, distribution and promotional activities will create high brand
loyalty for which it will be a strong market share soon after developing its IMC
plan. Prakriti Organics, with the aid of its heavy promotional activities and
unique feature of being herbal, will be able to penetrate the market. But other
producers in the industry are posing a threat towards Prakriti Organics market
share as they have moved towards the rural masses of the population. Prakriti
Organics is adopting niche marketing as we aim to target a particular segment
and gain their loyalty.
OBJECTIVE OF THE COMPANY
To assess the current environment of organic industry and to determine the right
marketing schemes in order for the business project to be profitable and
successful.
VISION
MISSION
The Indian Soap Industry includes about 700 companies with combined annual
revenue of about $17 billion. Major companies in this industry include divisions
of P&G, Unilever, and Dial. The Indian Soap Industry is highly concentrated with
the top 50 companies holding almost 90% of the market. The market size of
global soap and detergent market size was estimated to be around 31M tonne in
2004, which is estimated to grow to 33M tonne in the coming years. Toilet soaps
account for more than 10% of the total market of soap and detergents. In Asia, the
countries like China and India are showing rapid growth in the toilet soap
section. Market share of body wash was estimated to be around 2% in 2004 and
is showing signs of healthy growth in these markets. India's soap market is
41.75 billion.
MARKET CAPITALIZATION
Today in the Indian economy the popular segments are 4/5ths of the entire soaps
market. The penetration level of toilet soaps is 88.6%. In India, available stores of
soaps are five million retail stores, out of which, 3.75 million retail stores are in
the rural areas. 70% of India's population resides in the rural areas and around
50% of the soaps are sold in the rural markets.
COMPETITORS
Major Competitors:
HUL
P&G
Godrej India
Johnson & Johnson
Patanjali
Fiama d wills
SWOT ANALYSIS
Strengths Weaknesses
Herbal so skin friendly The product is not widely known to
all consumers
Available for all skin types A lot of substitute products
No age restriction Limited penetration in rural market
Absence of harmful chemicals Resistance by those who fear using
organic products
like Triclosan
Opportunities Threats
High CAGR of soap market New Entrants
Growing consumer markets for Local competition
improved and alluring soaps
Top choice among organic soaps Competition from already existing
medication and organic soaps
PRODUCT CATEGORY
According to
Age
Gender
Income levels
Frequency of purchase
Skin type
Geographical location
Urban and suburban upper and upper middle class who are conscious about
their skin are the major target of our products. Diverse products are provided for
all skin types. Soap products are specialized into cleansing, moisturizing,
scenting, antibacterial and whitening. The main target market would be
customers who value attributes like natural constituents, healthy lifestyle, better
skin texture, etc. Trying to access every geographical market simultaneously
would lead to unbearable logistics costs. Hence, business development will be
done in stages, targeting regions offering better connectivity with accessible
markets first, and then moving out into other territories in later stages.
It can be observed that there isnt a huge bias in terms of gender based
preferences in usage pattern. However the major user group is in the age group
of 12-30 years, with substantial chunk aged 40 years or less. However, Organic
soaps have qualities which are not necessarily changed based on age, and hence
the market is consumer of varying ages, but as the major self-sufficient user, 20-
40 age group should be the prime target segment.
SPARSH is not a highly expensive but an affordable product. That is why the
company targets urban and sub urban upper middle and middle class people who
are the second highest population of segment of the country. From the
segmentation of customer according to SEC we will target category A, B and C,
because they are assumed to be financially well-off and can afford to buy
SPARSH. Socio-Economic Cluster (SEC) which takes into account the criteria of
education and profession which ultimately measures the financial ability of
consumers.
PRODUCT POSITIONING
SPARSH will try to obtain a good position in the buyers mind through better
product attributes, price and quality, offering the product in a different way than
the competitors do. The company offers improved quality of products in the
industry at an affordable price with high branding, which ultimately helps to
position the product in the buyers mind as the best quality organic soap.
Sparsh will try to make a distinguished image in the market through its
packaging, fragrances and product designing and its medicinal properties.
Taking into account the convenience of its customers, the company manufactures
all flavors of SPARSH in three different sizes, 40gm, 80gm and 120gm.
Price: Though SPARSH gives its customers a lot in terms of the product
itself, it will provide a better pricing in terms of competition. This is due to
competition with the beauty soap industry. Beauty soap is a product with a
high demand. Its prices are almost equal to its competitor. Company will
carry out research on competitors price and brand loyalty when it will feel
extreme necessity of changing price.
Organic soaps will definitely have a comparatively higher cost than the
cosmetic and beauty soaps.
Place: We will have intensive distribution of our product to be able to make
our products available at maximum number of shops and retail stores.
Prakriti Organics will tie up with logistics & distribution companies for
distribution of SPARSH all over the country. The company will start with
six warehouses, one in each regions of country, where the product goes
after they are manufactured centrally.
The company will not use its own fleet of transport for distributing its product.
However, it will outsourced its distribution process to various third party
distributors, exclusively dedicated to the industry. These distributors will supply
the product all over India to a huge number of retailers. Even though SPARSH
targets the urban and sub urban middle and upper middle class people we will be
distributing the products all over countrys major cities because of a recent
increase in demand of product category to all segments of the population.
The main objective of our IMC plan shall be to create awareness about our range
of products through various media and will try to project the differentiation
between the cosmetic soaps and our organic soaps. The benefits will also be
highlighted.
The brand name SPARSH represents what we want to convey to our target
customers. Our range of organic products will enhance the skin nutrients
and will give it a natural glow. It symbolizes care and softness.
It is a consumer product. The advertisements will have adequate impact on
sales. They will help in achieving the main objective of the company which
is to create awareness. A well-known celebrity will also enhance the
credibility of the brand.
The sales promotional activities will induce the target customers to at least
try out the products.
There will be online portal where the users of Sparsh soaps can share their
experiences. This will help the customers gain confidence that the
company is making efforts to pay heed to their suggestions and complaints,
if any.
Beauty contests will help to promote the brand and the products will be
distributed among the contestants. If they like the products this will create
a positive word of mouth for the brand.
Advertisements showing the benefits of using the organic soaps over the
other cosmetic soaps will help in changing the preferences of the target
customers.
Magazine advertising has a longer life and hence it will also help give
detailed advertisement about the company and the product.