Course: Strategic Marketing

Course Code: Mkt 460

Section No.: 1

Faculty: Mr. Bashir Hussain [BHn]

Senior Lecturer, NSU

Submission Date: December the Twelfth, 2018

Name ID
Md Ashiquzzaman Abir 151 0127 030
Tasbir Mahmud Bhuiyan 131 0448 030
Kamrul Islam 132 1576 030
Md Golam Mukhtadir 151 0440 030
Sumaiya Sharmin 151 2713 030
Md Shahadat Hossain 151 1026 030
Table of Contents
Acknowledgement .............................................................................................................. 4

Executive Summary ............................................................................................................ 5

Situation Analysis ............................................................................................................... 6

Market Summary ............................................................................................................ 6

Market Demographics ................................................................................................. 6

Market Needs .............................................................................................................. 6

Market Trends ............................................................................................................. 7

Market Growth ............................................................................................................ 8

SWOT Analysis .............................................................................................................. 9

Competition................................................................................................................... 10

Product Offerings .......................................................................................................... 10

Keys to Success............................................................................................................. 10

Critical Issues ................................................................................................................ 10

Market Strategy................................................................................................................. 11

Mission.......................................................................................................................... 11

Vision ............................................................................................................................ 11

Marketing Objectives .................................................................................................... 11

Financial Objectives...................................................................................................... 12

Target Markets .............................................................................................................. 12

Positioning .................................................................................................................... 12
Marketing Tactics ............................................................................................................. 13

Product .......................................................................................................................... 13

Pricing ........................................................................................................................... 14

Distribution ................................................................................................................... 14

Communication/Promotion ........................................................................................... 15

Marketing Research ...................................................................................................... 16

Financials .......................................................................................................................... 16

Break-Even Analysis .................................................................................................... 16

Sales Forecast................................................................................................................ 18

Expense Forecast .......................................................................................................... 19

Bibliography ..................................................................................................................... 20

Appendices ........................................................................................................................ 21
 Acknowledgement

At first, we would like to express our deepest appreciation to all those who provided us the
possibility to complete this report. A special gratitude we give to our beloved teacher, Mr. Bashir
Hussain, whose contribution in stimulating suggestions and timely guidelines, helped us to
coordinate our project especially in writing this report. Special thanks to the team mates who really
worked hard to assemble the parts and gave suggestion about the report.
 Executive Summary

This report is about launching a new brand. Initially we are launching our product in Aloe Vera

gel formula.

We started this report giving a simple market summary. There we have described the

demographics, market needs, market trends, and market growth. We analyzed the market and its

potential. We went on analyzing the strengths, weaknesses, opportunities, and threats. Then we

tried to evaluate the competition. Existing business that might fight with us with their products.

After that we described the offering to our target market and its benefits to the customers. We

focused on the key factors that are expected to help us get the market. We then looked for critical

issues for our product lines.

We then described market strategy. Basically, the mission, marketing objectives, target

markets, and positioning. After this part, we described the marketing tactics. We introduced the

product lines. Addition to that their pricing. The distribution channels. The promotional activities.

Then we tried to express few secondary data that represents the potentiality of our brand.

Finally, we showed a rough calculation, that includes Break-even point, sales forecast and

expense forecast.
 Situation Analysis

Market Summary
Market Demographics
We know that segmentation consists of a group of potential customers who have a similar kind of
need and want. For our product, we are going to segment our market based on demographic
segmentation.

Demographic segmentation is something like dividing the market based on age, sex, family
size, education, income, social class, and so on. Hence, demographic segmentation got different
types of variables like age, sex, marital status, income, education, occupation etc.

We are mainly targeting two variables. Those are a certain age group and gender. We will
focus on people aging from 13-45 years. Both male and female will be our target market.

We are mainly targeting young and middle-aged people because we know that people of
these ages spend a lot of their time on road. Since our product is mini face wash which is portable,
and the customers will feel comfortable carrying our product. These people will be able to carry
this face wash pack while travelling or bike riding. Addition to that, our product is very much
affordable discussed more in the pricing section. People with lower income will also be able to
buy this product. More particularly, our target group is also the rural customers because the product
is very well within their purchasing capacity. Once they can get to this product and potential
benefits, they will feel free to buy this at a very low cost. Very exclusively in winter season the
skin usually becomes dry using traditional soap for washing and other purposes. Our mini face
wash will get their skin moisturized and smooth as well.

We ardently hope that that our customers will buy it with big gusto and, we look forward
to getting a good business.

Market Needs
Marketing needs is something like functional and emotional need or desire of a target market. We
know that regular face washes are not possible to carry for people and they are also very expensive
to buy. Poor people are unable to buy regular face wash because it is very expensive to them. And
sometimes people who live without their family, they also don’t want to buy a big pack of face
wash.

They would like to use mini pack. So, we are providing mini pack face wash. This face
wash will be portable, and it will not cost much. So lower income people will also be able to use
this face wash. It will also be very much useful for people who travel a lot and for those who ride
bikes. They can use it at anytime. Since the product is a new concept in the market regarding size
and cost, the target buyers are expected to become attracted and out of curiosity they will get
attached to it and buy it. Moreover, the cover and the total get-up is eye catching the people will
naturally love it and they don’t mind having a piece of it.

We hope that the product must be profit oriented and the market of the product will be

increasing fast resulting in huge benefit.

Market Trends
People in Muslim-majority Bangladesh have become more brand conscious and are following
global trends, particularly in fashion and cosmetics sector. In Bangladesh, most people live ins
middle class and lower middle class. In face wash market we can see there are lots of face wash
products. People are now more health conscious especially teenagers and young men and women
are caring about cleanness. They want to look fresh, for this reason there are lots of cosmetic
products coming in the Bangladeshi market, especially there are lots of face wash products
available in Bangladesh. Most college and school going teenagers do use face wash, but they are
not economically self-solvent. Their expenses bear by their parents, in this case their parents do
not think of buying such products for them. On the other hand, we can also see that there is
available face wash in Bangladesh is comparatively high price for middle class and lower middle
class. For that reason, parents do not want to buy a face wash for their children otherwise there are
no serious health issue or doctor given recommendation.

On the other side we see that university going people buy face wash. They get pocket
money from their parents which are not enough to get face wash. It is expensive for them. In rural
areas it is hard to find any face wash products. They use soap for washing their face. In other
segment, who are working men and women, they are trying to look fresh all the time but for them
this is not possible to carry a face wash pack all the time with them. Although women are likely to
bear face wash with them but for men is not possible. It is hard for men to bear 150ml face wash
with them. Moreover, now-a-days the number of working men and women are increasing, they are
travelling everyday here and there for their client meeting or other activities. There are lots of dusts
and other germs attack their face. For this reason, they are facing skin diseases. They want to keep
their faces clean, but it is difficult for especially for men because they cannot carry 100ml face
wash tube. Sometimes it is possible for women because they are carrying purse with them. It is
easy for women to carry 100ml. Face wash. For this reason, we are coming with new innovative
face wash which is ‘’Dirt Drop’’, which is a mini face wash at a cheap price. This product is to
help young, working men, and women, lower middle class and middle-class people to keep face
fresh all the time.

Market Growth
The Bangladesh face wash market is expected to register a consumer annual growth rate of 4.5%
during the forecast period, 2017 to 2022. The face wash, until now, was available in the larger
tubes or bottles with pack size of 200 ml and more. The growing demands for fairness products
are major driver for face wash market in Bangladesh.

The increasing demand for fairness products is driving the face wash industry in
Bangladesh. Most of the people in the country consider fairness as a major factor to describe
beauty. The market is driven by increasing disposable income, even though only 7% of the
country’s current population can be classified as middle income or affluent currently, the middle
and affluent-class people of the country is estimated to account for around 17% of the population
by 2025. However, the higher prices of the international brands could give the way for
opportunities for low cost face wash brands in Bangladesh.

By composition, the market can be categorized into herbal, and chemical; consumers are
shifting towards herbal face-wash because of increasing demand for natural ingredients in the
market.

By distribution channel, the market can be categorized into supermarkets/hypermarkets,

online retailers, and convenience stores.

To create awareness about beauty products among the rural population, are their
developing marketing networks in rural Bangladesh. With the help of a local non-governmental
organization, the company can successfully develop a grass-roots marketing network in farming
villages. There is opportunity for rural man especially in women in Bangladesh and raise their
awareness about face wash products.

SWOT Analysis
Strengths

Our product is cheap as because it is a mini pack face wash for the biker and traveler. Big
packaging size product is chaotic to carry but our product is smaller size for customer it will be
easy for them to carry and use. Product packaging is one of the most important things to attract
customers. If the product packaging is not satisfactory then customers are not likely to buy the
product. Hence, our packaging pattern will be unique, and it will help us to attract our customer to
buy our face wash product. Our main target customer are the biker and traveler and their number
are growing continuously. Our unique selling point is that no other companies in the market has
this version face wash with unique design for specific customer.

Weaknesses

Our product concept is a little bit complex to understand for the worker. The government imposed
high taxation which will a major weakness for the product. Investment is major issue in the product
development. Government imposed complex rules and regulation on the importing chemicals for
our product.

Opportunities

We have an opportunity to providing high quality product in future. We are targeted specific
market maybe in future our product market maybe expanding. Product value must be set on to
the customer minds. Creating consciousness among the customer. Offering exclusive offers to
the customer for promotion. Exporting our product into the unprivileged country. Using different
channel for advertising like Facebook, YouTube, Instagram.

Threats

The threat for our product is adopting our idea by the big indirect companies. Another threat for
us to distribute our product into the rural areas because of communication problem. When we will
launch our product our competitor’s number will rise. If our customer will reject our product then
switching cost might be higher.

Competition
In the market, a new product might be facing competition. Being a first mover, we are going to
introduce mini pack face wash in the market. Hence, we have no direct competitors. However,
some existing indirect competitors are strongly present in the market.

Direct Competitors: No direct competitors are in the market. In the future some major company
might be adopted our idea to enter the market then they will be our direct competitors.

Indirect Competitors: Some of the big and small indirect competitors are in the market.

 Dove
 Pond’s
 Ayush
 Garnier
 Himalaya
 Clean & Care

Product Offerings
Our product mini pack facewash is offering a solution for dirty face skin for both gender male and
female. Giving solution for a specific problem is not enough for today’s market. Ensuring product
availability in the market. Providing technical support for the customer if they will face any kinds
of the problem regarding the product. Customer value is important for us, so we can match our
offering to the customer value and satisfied them with our product performance and quality.

Keys to Success
Keys to the success of our product are the unique packaging and providing at a cheap price which
is expected to meet the market demand. Ensuring customer satisfaction all the time. If the keys to
success are gained, then we will be profitable. If customer satisfaction is not meet, then our product
will be a failure in the market.

Critical Issues
An early stage of product establishment we have some critical issues regarding our product.
Our product must be established as a valuable product to the customer.

Production cost cannot be exceeded the revenue stream because it will help us in avoiding the
downturn.

Monitoring the customer satisfaction and always ensuring the market share in our hand and
customer satisfaction level must not be lowered.

Market Strategy
Mission
Our mission is to provide the best effective skin care solution to the consumers with the natural
flavor in limitation of price. That people can take our product easily and can use that with the
full of satisfaction.

Vision
Dirt Drop’s vision is to be one of the best skin care company which will offer our customer the
best skin care solution. Because this product will give the best solution within short time and stay
fresh with the pure products and positive principals. We will expand our market throughout all
types of customers and make all the flavor of with good kind of product for skin.

Marketing Objectives
Creating Cost Effective Marketing Plan: This is the new product in the market. So, we have to
focus on the cost-effective marketing plan then our product marketing plan not should be that much
higher as the product cost. Because we must encourage because it would be make the rational
sense of costing on marketing plan.

Introducing Product Benefits: Though our product is mini face wash which is the first time in
our country, so we have to make the awareness to the customer about the needed of product. Why
should need to take our product. Also including the benefit of our product. Then we can think our
marketing objective would be successful.

Building Customer Awareness: Customer awareness is very important objective issue in

marketing plan. So, in this case to make trust on our product with the awareness is very tough in
the competitive market world. So, we can do this through some effective advertisement. Then the
customer awareness will raise up.

Financial Objectives
Target Markets
Our target market is the bikers; people who ride everyday with their bikes and get exposed to dust,
but everyone can use it. Because it is easy to carry and does not take so much space. So, we
divided our target customer in three segments.

Teenagers: Group of people who goes to school or college and these boys and girls play around
the fields. If they use our product that will be helpful for them because it is a small thing that they
can keep in pocket or bag.

Adults: People use it who are traveler, bike, office people can use it for their own purpose. They
are our primary target customers. Because they always focus on the fresh skin and good looking.

Working Class: These people who always work outside and they are exposed to the mud and dust,
they need to take care about their looking, good skin hence they are also our potential customers.

Positioning
Our market positioning is very strong because it is a unique product. There are many face wash
products, but we are the first one to focus on bikers. So, our advertisement policy is also set up
with that plan. However, our unique selling point (USP) is this is one kind of pocket face wash
product which can be carried easily, and this is also at a low price so that lower income people
find it easy to buy. This is different form all other existing product in term of physical structure.
This will help them swiftly with the best freshness feeling. Addition to that our marketing policy
will expand in our entire target customer. That is why our market positioning will be strong
 Marketing Tactics
Product

Initially we will offer mini-pack face wash in Aloe Vera gel formulas for men and women. After
getting expected positive response from our target customers we will extend our product line. Our
products are:

 Mini-pack Face-wash Gel (Men)

 Mini-pack Face-wash Gel (Women)

Our competitive advantage is the mini stature of face-wash which can be used for once or
twice. It ensures the healthy skin of our customers and help them to live a germfree and dust free
life.

 Brand Architecture:

As our brand is new in market so we have a plan to be allied with “Marico”. Consumers
can be easily captured by using this master brand as a driver.

Brand Equity Assets:

1. Brand Awareness: Freshness

2. Brand Association: Natural ingredients, Low price, Carriable, Healthy Skin product

3. Perceived quality: People already know about Marico Company and their product quality.
It will help us to build a good perception about our quality product.

4. Brand loyalty: Through our premium quality products in a convenient price we will try to
build a strong brand loyalty. Loyal consumers will spread positive WOM and that will
attract new customers.

5. Tag line is “Bonding with Freshness”.

 Pricing
Initially we will use market penetration pricing strategy for our products. As we are offering
minipack face wash for the first time in market so in this introductory stage this strategy is
expected to be very beneficial for us. Because we are also targeting the rural people so by using
this strategy we will be able to attract the most price sensitive customers. Our products’ prices list
is given in a box below:

Product Price

Mini-pack face-wash Gel (Men) 7 tk.

Mini-pack face-wash Gel (Women) 7 tk.

Combo Mini-pack face-wash gel 30 tk.

men/women)-5pcs
Combo Mini-pack face-wash scrub 45 tk.
(men/women)-5pcs

Distribution
We will use Square’s distribution channel to sell our product. We will be not only focusing
on the distribution channel rather we will also organize some campaigns and events in schools,
colleges and university premises. For the rural areas, we will try to distribute our product in such
a way so that it could be available in the best convenient place for the customers.
 Communication/Promotion

During the first quarter of the launch, we are going to put heavy promotional campaign. Some of
them will be:

1. Above the line (ATL) - radio, TV, newspaper, magazine, outdoor, press. Rating,
frequency, brand awareness, reach will be the ones that we will be looking for from this type of
activities.

2. Below the line (BTL) – Contextual text ads, vertical banners, email marketing,
telemarketing. real metric, new customer, cost per conv. These are the stuffs that we will be looking
for.

3. Through the line (TTL) – Social media (as in face book, twitter), events. Here we will
be expecting the outcomes of the previous two point’s altogether.

We will use both push and pull effect based on our market. As we have already explained
that our products will be distributed to both urban and rural people, we will use push effect in the
rural areas and pull in urban areas. We will be intensively promoting the cost effectiveness of our
product and this will be prioritized in all the advertisement and promotional activities. We will
make our target customers know for surely the benefits of using our products. We will launch the
company and product simultaneously at a popular venue in the center of Dhaka and will show up
with few local celebrities and beauticians and will also come up with a formal press meet. All
details of the launch will also be published in the leading newspaper front page and social media
and other mediums as well as sponsored news. We will also go for Google ads as well. We will
put banners, billboard etc. in front of popular shopping malls, parlors, city centers and also target
customer gathering places which will be decided accordingly. Leaflets and brochures will be
distributed to the target customers at malls, schools, colleges, and other places as well. After few
months, we will put fewer ads in print media and will more focus on online advertisement and
promotions.

Campaigns: Initially we will organize few campaigns in Jamuna Future Park and some
colleges, universities and some corporate offices for creating brand awareness and to make
consumers understand about the idea of our products. In addition, we will organize some
campaigns in rural areas to make people understand the necessity of being concern about the skin.

Marketing Research
Until now, the face wash was available in the larger tubes or bottles with pack size of 200 ml and
more. The market is determined by increasing disposable income, even though only 7% of the
country’s current population can be classified as middle income. The middle-class population of
the country are estimated to be around 17% of the population by 2025. However, the higher prices
of the international brands and small pack sizes with entry-level pricing to target low-income
consumers, who might find large packs too expensive in Bangladesh will pave the way of
opportunities for domestic or low-cost face-wash brands in Bangladesh. So according to marketing
research our brand has a huge opportunity to acquire the maximum market share of face wash in
Bangladesh.

Financials
Break-Even Analysis
Break-Even analysis point refers to the point in which total cost and total revenue are equal. A
break-even point analysis is used to determine the number of units or revenue needed to cover total
costs (fixed and variable costs).

For our product, now, we will determine the break-even point. As we know the formula of
break-even point: Break Even Quantity = Fixed costs / (Sales price per unit – Variable cost per
unit).
Variable Costs: Costs that will be changing with the number of production units and the sales of
those units. For our venture, the variables costs are packaging costs, chemical costs, ingredients,
shipping costs, and others. We break down these costs per units as shown below in a table.

Variable Costs
Taka
Packaging Costs 1
Chemical Costs 1.5
Ingredients 0.5
Shipping Costs 0.75
Miscellaneous 0.75
Total 4.5

Fixed Costs: Fixed costs are those costs that we are going to incur regardless of our production
units. These costs we are going to incur on a permanent basis. The table given below shows the
total fixed costs that we are expecting to incur.

Fixed Costs
Taka

Warehouse and Rent 200,000

Salaries and Wages 300,000

Training Costs 100,000

Promotional Costs 400,000

Commission 50,000

Total 1,050,000
 Break-even Point: Break-even point represents the units that we must sell to meet our foxed costs
and variable costs. For us, total fixed costs amount 1,050,000 taka and variable costs 4.5 taka per
unit. Price per unit is 7 taka.

Our break-even point in units is 420,000 units. This means we have to sell 420,000 units
to recover our fixed and variable costs that we have incurred during the production. In terms of
sales amount, we have to sell of our products worth 2,940,000 units to meet our break-even point.

Fixed Costs 1,050,000

Variable Costs Per Unit 4.5
Unit Price 7

Break-Even Point Units

420,000

Break Even Point Sales

2,940,000

Sales Forecast
Sales amount is primarily based on our prediction. Given the amount of investments we are
expecting to produce only 35,000 units per months for the first three months. Afterwards we are
expecting the sales amount to increase by 20%. This amount will remain constant for the next three
months. We are expecting to increase the production units with further acceptance from our
customer base.

Jan Feb Mar Apr May June Total

Units 35,000 35,000 35,000 42,000 42,000 42,000 231,000

Price 7 7 7 7 7 7

Total Sales 245,000 245,000 245,000 294,000 294,000 294,000 1,617,000

 Expense Forecast

This is our rough expense budget. We are showing calculation for the next six months-as we did for the other parts of calculation. We

showed the calculations till the month of June. We are expecting to have an expense amount of 1,220,000 taka. Breakdown is given

below in a table.

Expense Forecast
Jan Feb Mar Apr May June Total
Rent 75000 75000 75000 75000 75000 75000 450000
Salaries 15000 15000 20000 20000 20000 20000 110000
Commission 35000 35000 40000 40000 40000 40000 230000
Promotion 25000 25000 25000 25000 25000 25000 150000
Advertising 25000 25000 30000 30000 30000 30000 170000
Sales Expense 15000 15000 20000 20000 20000 20000 110000
Total 190000 190000 210000 210000 210000 210000 1220000
 Bibliography

Bangladesh face wash Market | Growth, Trends and Forecasts (2017-2022). (2018). Retrieved

from https://www.mordorintelligence.com/industry-reports/bangladesh-face-wash-

market?fbclid=IwAR3pUZT6zp5oEw152v0Hk61UlW3ZphRrIHZICSo8qfXxcBnVS7a7

9qBsUCU

Bangladesh: The Surging Consumer Market Nobody Saw Coming. (2015, October 22).

Retrieved from https://www.bcg.com/publications/2015/bangladesh-the-surging-

consumer-market-nobody-saw-coming.aspx

CoSchedule. (n.d.). 35 Marketing Tactics That Work (And How to Plan Them). Retrieved from

https://coschedule.com/marketing-strategy/marketing-tactics/

How to Conduct a SWOT Analysis: Examples, Strategies, and Templates. (n.d.). Retrieved from

https://www.shopify.com/blog/74665093-want-to-future-proof-your-business-try-a-swot-

analysis
Appendices