Вы находитесь на странице: 1из 20

Marketing Plan

Group - 04
Executive Summary

Soap industry plays a key role in the economy of India. Soap is an FMCG product that
has the highest market penetration in India covering more than 80% of the country’s
urban as well as rural households.
During FY 2017, beauty soap segment had the largest share with 50%, followed by
health soap segment with 28.6%.
A soap bar is the most efficient preventative measure available to combat
communicable diseases. However, there are no effective solutions for ensuring germ
free hands. DS Group is launching “Splash”, a soap bar with medicinal benefits and a
variety of fragrances.
The company has introduced triclosan in its soap bars which acts as an agent that
inhibits bacterial growth. It not only has medicinal effect but also comes with a variety
of fragrances.
The development of higher quality soap bars will lead to an increased interest in the
product, and thus, an increased demand which will positively impact DS Group.
Market Trends
The household penetration in India of soaps is 98%. People belonging to
different income levels use different brands, which fall under different
segments, making it the second largest category in India. Soap manufacturers
position their brands as a way to remove dirt, odour and promote healthy being
• The per capita consumption of soap in India is at 460 gms per annum
• In India, soaps are available in five million retail stores, out of which, 3.75
million retail stores are in the urban areas. Therefore, availability of these
products is not an issue. 40% of India’s population resides in the urban
areas; hence around 50% of the soaps are sold in the urban markets.

Growth Opportunity

• With an increase in disposable incomes, growth in urban demand is

expected to increase because consumers are moving up towards premium
• But not a big change in the volume of premium soaps in proportion to
economy soaps, because increase in prices has led some consumers to look
for cheaper substitutes.
• Recent data clearly shows customers see quality and price as the most
important attribute .
Retrieved from CII FMCG Roadmap to 2020 -The Game Changers Report
The major players in personal wash (Soap) market are HUL, and P&G
Customer Perception Map
Affordability is an
Durability plays a
essential feature of
very important
a soap and is a
role for
major attribute
customers as
customer think of
they measure the
while buying a
utility and
product. So,
reliability of the
product and buy
those products
perception about
which are more
price of the brand is
• Higher durability than existing products • Mimic brands
• Blend of medicinal effect with fragrance • Lack of brand awareness
• Strong R&D of the company • Perception Bias against Company
• High quality-price aspect • Limited pre-established distributor channel


• Better standard of quality • Increased Competition in this market segment

• More promotions and price cuts can be used • Plenty of cheaper and other alternatives available
• High scope for R&D to include variants(fragrance) • Rising popularity of substitutes like liquid soaps.
• Target urban and semi-urban segment based on price • Other established players in the
antibacterial category
Situational Analysis
Customers: DS Group is venturing into soap industry. It is launching “Splash”, antiseptic soap with
three varieties of fragrances. It has tied up sales with 2 large retail chains in India which has over 250
stores each. It is also negotiating with another large retail chain which is expected to open in 2019.

Competitor: DS Group is aware of the established brands like Dettol, Lifebuoy and several local
manufacturers. After a detailed analysis, DS Group has found that its major competitive advantage is
access to good quality raw material at a very reasonable cost. It has a well established distribution and
supply chain system. Splash is one of the few products which has both health care benefits as well as
variety of fragrances.
Company: The Dharampal Satyapal Group, is a rapidly growing, multi-diversified conglomerate with
presence in diverse industry sectors. The Group has focused on growth & diversification with an
undeterred belief in high standard product, reliability and transparency. The company will run its
operations from Sanquelim where it has established a plant.

Context: The soap market in India is expected to see moderate growth over the span of the next few
years. An increase in per capita income, increased awareness amongst the general public regarding the
importance of proper hygiene, and greater investments by key players toward the research and
development of newer and better products are all elements that will increase the size and boost the
value of this industry.
Product Offering

• Introducing the product in the sector of Personal Health and Beauty.

• Better effectiveness, fragrance, and feel. It takes care of family’s health

and hygiene needs by offering protection against germs and infection.

• Offering the product with high durability and mid-level pricing.

• Flavours being introduced- Rose and Almond, Lemon and Mint,

Critical Tasks

• Establish the product as a blend of personal beauty and hygiene.

• Monitor customer satisfaction constantly so as to establish an edge over


• The key success factor in the market is the provision of quality products
in desired quantities, and at reasonable prices.
Market Segmentation and Targeting

• Geographically urban and sub-urban spaces will be targeted because of the relatively
higher price of the soap as compared to the big players ( lifebuoy and lux )

• Both men and women can be targeted as the chemicals are mild and the soap can be
used for soft skins (unisexual product)

• Product can be used for oily skin, to cleanse the face also to clear the face from
pimples. Freshness along with antibacterial properties makes it a highly viable
product for Teenagers and College Students (18-28 years) who will be our main
target consumers.

• Oil cleansing properties makes it a suitable product for coastal areas having high
Communication objectives based on Target audience

Demographic Segmentation
Age band of 18-25 could be easily targeted as they tend to experiment with new products which will help us in
influencing brand purchase intentions.

Climate Segmentation
It is necessary to cater the need for a soap with combination of medicinal properties and good fragrance
especially in areas with hot and humid climate. It will play a major role as they could be the heavy users of the
product (based on assumed usage pattern)

Semi Urban and Urban markets

Since our product is a medium segment so it will be easy for us to communicate and connect with the consumers
by classifying the markets based on density. Initially will not target the communication to rural areas.

Psychographic Segment
According to research* 98% of women prefer there soaps to have medicinal properties with good fragrance ,thus
we need to target our communication to housewives and mothers who are major customers.

• We position our product as youth soap which provides long lasting freshness and
clear skin

• Point of differentiation : skin care soap with high durability and good fragrance

• The product celebrates the spirit of youth ( vibrant and energetic )

• The campaign will focus on promoting the message that ‘splash’ gets teenagers and
college students through their fast moving schedule, providing them the freshness
they need till the end of the day and protects their skin from pollution.

• Advertising: Through Print Media( newspapers , Billboards, Magazines etc )

• Sales Promotion: Incentivizing Retailers to promote and increase Sales by providing
them with a higher Margin compared to competitors
• Events: Company Sponsored Activities and Events to improve brand awareness of
Splash and DS Group
• Interactive Marketing: Online Activities designed to create awareness about Splash
among Target Market
• Use of Point of Purchase Shops to improve Brand Awareness
• Use of flea Shops to spread awareness about the Product and to gain customer
Product : SPLASH

• Splash is a new product that we are offering in the market with the following
• Mid- Level Pricing with a high durability in the Product
• Launching the Product with 3 different fragrances -
1. Rose and Almond
2. Lemon and Mint
3. Sandalwood
• Also incorporating Antiseptic Properties by incorporating a new molecule for germ-
fighting in our product
• Thus , Splash Soap would be having both Antiseptic Quality and Beauty Care Quality

Survey showing the percentage of people wanting

both Antiseptic and Beauty Quality in their Soap.

• Pricing of Splash Soap at Mid Level Range in two different sizes: 125g and 75g

• Pricing done for the product keeping in mind the target market and customer purchasing
• Pricing includes the product cost, profit margin, customer demand and takes the competition
into account
• Price has been decided based on the discounts that may be offered to the customers in the
initial months when the product has been introduced in the market.
Break-even analysis

• Assuming the price for 125 gm – Rs 43/-unit

• The variable cost which includes labour costs & raw materials cost – Rs 33/-unit
(assumed value will be determined by R&D department)
• Since it is an established company the investment towards fixed cost can be high
– Rs.10 Cr.
• Assuming the sales to increase at 15% per year – The Indian soap industry is
expected to grow at 15% in the coming financial year
• Since 500cr units of soaps are sold annually, selling 33 lakh units with the aid of
aggressive advertisement and promotional strategies is an achievable task as
compared to the total market volume (0.06% of the total volume)
• Revenue/unit - Rs. 43
• Variable Cost/unit - Rs. 33
• Contribution/unit - Rs.10
• Fixed Cost - Rs. 100 millions
• Break-even volume = Rs.100 millions / Rs. 10 = 1,00,00,000 units
• Minimum required Sales in year 1 = 33,00,000 units
• Minimum required Sales in Year 2 = 33,00,000*1.15 = 37,95,000 units
• Sales in 2 years = 70,95,000 units
• Remaining 29,05,000 units will be sold In the first and second quarter of third year
Therefore Breakeven sales will be met in the first and second quarter of third year-
Breakeven point can be met even sooner if marketing strategies lead to higher sales and
higher capture of market share
Implementation, Control & Contingency Plan
1. Implementation:
Budget Timeline
Tasks(6 months + 1 month pre-launch) Allocation
Start End
(‘000 Rs)
Extra margin to retailers 3000
Incentives to sales workforce 2500
Promotional offers 5% discount on combo pack of 3 0 Nov-18 Nov-18
Pre-Launch promotions(Online Sep-18
1500 Sep-18
Television Advertisement Campaign
20000 Oct-18 Dec-18
Advertisement Television Advertisement Campaign
#2 20000 Jan-18 Mar-18

Social Media Promotion Campaign 3000 Sep-18 Mar-18

Setup of Cloud based Marketing

Development of IT based tools for
resource management(MRM) 1400 Sep-18 -
Control and analysis
2.Control Strategies

Control of profitability - (Sales, Market share, Profit margins) Control of efficiency - performed by marketing executives, line managers and
Profitability of the product: Effectiveness of advertising -

Area wise- Sales rise during Advertisement campaign #2(Quarter 2): Target-5%-8%
(To achieve YoY growth of 15%)

Sales in coastal belt: Target- 30%-40% of total revenue Sales promotion success-
Survey retailers and distributers to understand response to promotional
Annual Plan Control(After 1 year)
Market share analysis- Total soap market by volume=500 Cr units
Target units to be sold in 1st year =33 lakhs Strategic control -
(Tolerance-±0.05 by varying units sold by 3.6 lakhs)

Targeted market share- 0.04 to 0.07 Evaluation of marketing excellence- through annual audit
(based on trends for new entrants)
Sales to expense ratio-0.278 Ethical and social responsibility of the enterprise-
(Tolerance-±0.05 by varying units sold by 3.6 lakhs) Sponsor events related to “Public health and sanitation cause” in rural areas to
support brand awareness
3.Contingency Plan

There is opportunity to target price

sensitive rural market by
Diversify by entering into
introducing a new variant with price
detergent soap market
reduction of 5% thus adjusting
brand positioning​

Improve distribution network​ to

improve availability
Thank You