Marketing Plan

MARKETING PLAN FOR LISA INTERNATIONAL LIMITED Presented to: Dr. ASIF HASSAN This marketing plan contains information that is not to be shared, copied or disclosed otherwise compromised without the consent of Lisa International Limited. Marketing Plan 1 ACKNOWLEDGEMENT We are grateful to our teacher Dr. Asif Hassan for teaching us curriculum of marketing. His versatile knowledge in marketing field and unique teaching style has developed our knowledge and cleared many marketing concepts. We are all the most grateful to him for assigning this project, which has further helped us in evaluating many interrelated dimensions of marketing. Finally we bestow our thanks to all who has directly or indirectly supported us with their assistance and guidance to compose this report and accomplish broader vision to visualize things in marketing concepts. ASIF IQBAL Lisa International Ltd Marketing Plan 2 TABLE OF CONTENTS Preface Introduction  Executive Summary  Mission statement  Objectives The Business  Business Background  Product/Service Description  Distribution network Macro environmental Analysis  Economic Analysis  Social-Cultural Analysis Market Analysis  Market Definition  Market Segmentation  Competitors SWOT analysis  Strengths  Weaknesses  Opportunities  Threats General Marketing Strategy  Target Market Specific Marketing Strategy  Pricing Strategy  Distribution Strategy  Personal Selling Strategy  Advertising Strategy  Sales Promotion Strategy Financial Analysis Lisa International Ltd Marketing Plan 3 PREFACE This Marketing Plan is prepared for the course of “Principles of Marketing” on Lisa facial ® mask the product of Lisa International Limited Pakistan. In this marketing plan we have the introduction, business analysis, target market of the product and bit of financial analysis and given the industry position of cosmetics. This report covered almost all aspects of the marketing plan. Lisa International Ltd Marketing Plan 4 INTRODUCTION EXECUTIVE SUMMARY The Lisa international is not a newly established company; basically Lisa® is a French company. Lisa has 50 years history in the industry of cosmetics. Now the company started its operations in Pakistan. Lisa International Limited Pakistan is under license from Lisa International Paris. First of all they are going to launch a Lisa Facial Mask. Company has its plant in S.I.T.E Karachi. Plant is imported from France. The Plant is fully automatic and work under robotic supervision and produces high quality products. Company has invested 100 million rupees in this project. Company plans to get at least 11.5% market share this year and also plans to increase 5% customer base every year. In order to achieve this target company has the combination of quality product lines, customer advisory service, and a knowledgeable sales staff. Lisa plans to increase its product line in cosmetics and toiletries in coming years. Lisa International Ltd Marketing Plan 5 MISSION STATEMENT     To be the No. 1 cosmetics company in the Pakistan and in the world. To offer high value, economical, and qualitative solution to address the commuting needs of a diverse range of customers. To seek long term and good relation with our suppliers and retailers with fair, honest and mutually profitable dealings. To produce environment friendly products to be a contributing corporate citizen for the betterment of society and to exhibit a socially responsible behaviour. OBJECTIVES:    To make reasonable profit. Lisa’s main objective is to provide quality-oriented products and high customer satisfaction. Company’s three core values Caring, Teamwork and Continuous Improvement are put into action in our work as well as in our communities. The results are better products and a better quality of life throughout the country.   To make at least 10% profit this year and keep on improving the sales and percentage of profit in coming years. Lisa has a wide distribution network retailers through out the country. Description Last year June2001 0 Gross Sales Growth Rate Market Share This Year June2002 22001200 2 10,00,000 Projected June2003 20012002 11,00,000 10% 10% 11.5% Lisa International Ltd Marketing Plan 6 THE BUSINESS Business Background The Lisa International Paris has 50 years history in the world of cosmetics. The company has wide range of cosmetics. Lisa International Limited Pakistan was incorporated on 2nd November 2001 as a public limited company in Pakistan. The shares of the company listed on all stock exchanges of Pakistan. Product services description Lisa International Paris has a very wide product line and product line extensions include lipsticks, perfumes, facial masks, face washes and long list of toiletries. In order to have a satisfied customers company have advisory services help line, which is a toll free number? The cosmetics start from very high prices to substantially low prices. Distribution Company got very wide distribution network, retailers and whole sellers throughout the world. Advertising and promotional efforts can help to attract the customer but ultimately there is no way of controlling the number of customers that frequent The Lisa. What is controllable is how the sales staff treats the customer once they walk through the door. Aggressive inside sales and knowledgeable interaction is critical to keeping the customer loyal to The Lisa. As a secondary distribution approach, vendor catalogs and free samples are available to the consumer for information and to test the products with the retailers and provide door-to-door distribution. Lisa International Ltd Marketing Plan 7 MACRO-ENVIRONMENT ANALYSIS Economic Analysis The national economy has not been strong and gaining momentum for the last few years. The national unemployment rate has been increasing. Although stock indices such as the K.S.E 100 have displayed some potential in the last years. In this industry there is a potential customers in this market. In this field of economy there is less competition among the local manufacturers but most of them are importers. There is need of little introduction for local cosmetics, and the quality is also very important. The target market start using our product if they know the quality is same and price is slightly lower than imported one. This way we are saving valuable foreign exchange for our country. SOCIO-CULTURAL ENVIRONMENT In last few years the change comes to our society the women working in all the offices. With the increasing awareness of the facial fitness this is very important that everybody should looks fresh and energetic on his work place. More people are taking time out to enhance their quality of life and try to be looks fresh every day inside or outside the office. In order to achieve this the people going to use massage and applying cosmetics (face wash, facial mask, facial scrub). There is a favourable trend in last 3-4 years, it will be a favorable increase over the next five years and is broadening to include new market segments, such as the male market. Lisa International Ltd Marketing Plan 8 MARKET ANALYSIS MARKET DEFINITION: The potential market involves a wide-range of people with an interest in looking fresh and different everyday. Those who thought it is very necessary to look fresh on the business place and also in the social life. In addition to this group includes young people who are students (college going girls) Over the past several decades the cosmetics industry has grown in to a Rs.5000 million a year industry. The cosmetics industry developed more, because of the information and globlisation of the world. biking industry has grown into a $500 million a year industry. This commercialization has made cosmetic somewhat of a trend in the 90’s, both in the Pakistan and around the world. MARKET SEGMENTATION For Lisa International Limited as with any business there are many possible categories by which the market could be segmented. This section will form the basis for Lisa International Limited Pakistan’s, current market segmentation. Lisa International Limited’s primary target market is the student population of almost 50,000 at University level and office going people and housewives. This group is divided into 2 submarkets. The first sub-market consists solely of the 12,000 new college freshmen that enroll at all universities each year. In observing the cosmetic industry as a whole, males between the ages of 32-50 make up 20% of the market and females between the ages of 20-50 make up 60% of the market. The second sub-market consists of the remaining classes of students. These remaining students also fall within the ages of the largest market share in the industry. However, these students form a separate sub COMPETITORS The various aspects of the marketplace and how it relates to The Lisa International’s business have been discussed up to this point. Now each of the manufacturer’s competitors will be evaluated and compared with the Lisa International. The following table (Competition) will provide a synopsis of the competitive environment. o o L’OREAL PARIS o ST.IVIES LABORITRIES, INC. (U.S.A) LABEAUTE MAGIQUE INC. (U.S.A.) Lisa International Ltd Marketing Plan 9 ISSUES AND OPPORTUNITIES STRENGTHS:    We are the pioneers of this specific product, which is launched for the first time in Pakistan. Introducing our product on a competitive price strategy. Timely & effective Distribution Network. WEAKNESSES:  Huge capital investment will be required for aggressive promotion. OPPORTUNITIES:  With our expansion plan and capacity we can enter into product mix, which can save us from the declining phase. THREATS:      Already built in market for imported cosmetics. People always resist buying new product & new Brand. Competitor’s offensive strategy can give us tough time. Political instability and crises can affect smooth running of business. Positioning product name in consumers’ mind would be expensive through promotion. This will reduce our profit in the beginning MARKET RESEARCH After conducting the research we reveal that there is a potential market for people who want to use best quality of cosmetics and facial mask at lower price and want to remove the dead cells, red blotches and pimples from their face. They want fresh face. Lisa International Ltd Marketing Plan 10 GENERAL MARKETING STRATEGY TARGET MARKET Demographic Factor: Age – from 20-50 Years Social Class – Upper, upper middle. Income – Rs. 30,000/- and above Gender – Male and Female Geographic factor: Country – Pakistan City – Karachi Population – Over 0.15 million Psychological factor: Occupation – Executives, Housewives, Students, Social workers. Profession--- Barber shops & Beauty parlors Lisa International Ltd Marketing Plan 11 MARKETING STRATEGY Product Analysis:     This facial mask is specially manufactures to remove dead cells and red blotches. Facial mask is also lab tested to prove its quality and making. This is available in two sizes (later on available in different flavors). It has very nice, refreshing fragrance. UNIQUE SELLING PREPOSITIONS: Lisa contains a unique special ingredients and introducing first time combination of HERBS & FLOWERS that renewal your face and makes wrinklesfree. It will remove dead cells and other impurities and increases the freshness of the face. PRODUCT: The product is specifically made to give the best solution for removing red blotches and can prevent from pimples. PRICING: Our price will remain competitive through out product life cycle. PACKAGING: Attractive and eye-catching tube is made to attract the customer. Lisa International Ltd Marketing Plan 12 PRICING PRICING OBJECTIVE: Pricing objective is to penetrate in the facial mask market and then maximize profit in the long run. PRICING STRATEGY: Our competitors are established from a long time therefore we set our prices lower than their brands. Here we will use the Economy pricing strategy as mentioned earlier the mask contain one of the best materials that is soothing elder flower that remove all impurities from the face. We are targeting also middle class so that’s why economy pricing is adopted the price will be low and the quality is high so the image of the product in the minds of peoples will be good. In future we increase the price the consumer will go towards our product. We also adopt the market penetration strategy to get the large number of sales and to get huge share of the market. PRICES OF THE LISA®: Size 250gms 100gms Price in Rupees 195/85/- Lisa International Ltd Marketing Plan 13 DISTRIBUTION Our manufacturing plant is located at S.I.T.E Karachi and our main office is situated at Shahra-e-Faisal. CHANNEL OF DISTRIBUTION: 1. Manufacturer ----- Distributor ------- Retailer------ Consumer. This channel will be used to make our product available in the market for customers’ convenience. It will be ensured that our product is extensively placed in all the well known shopping centers of Karachi, which comes under our potential and target market area. 2. We will also use push strategy for our product by using various promotional tactics and through media. Distribution will be divided in zonal basis, which will be 5 in number. We will directly approach retailer by providing credit facility and bonus in form of incentives. We will also provide trade allowances to our distributors and retailer to further intensify usage of push strategy. Lisa International Ltd Marketing Plan 14 LIST OF RETAILERS AND THEIR LOCATIONS S. NO. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. MARKET SUNNY DHORAJI QADRI NAVEED RAFIQ GALAXY JUMBO INDUS STORE GULISTAN STORE BLESSINGS SUPER STORE BADSHAH COLLECT FIVE STAR SUPER MART CROWN QT DEFENCE SUNNY DEFENCE JABBAR DEFENCE FAMOUS DEFENCE SOHAILA LOCATION DHORAJI DHORAJI DHORAJI DHORAJI MOHAMAD ALI MOHAMAD ALI SINDHI MUSLIM SINDHI MUSLIM LALKOTI NURSERY NURSERY NEAR TNT NURSERY DEFENCE NEAR QT BACK DEFENCE DEFENCE DEFENCE DEFENCE DEFENCE Lisa International Ltd Marketing Plan 15 S. No. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. Market QUALITY STORE DEFENCE STORE SLASH STORE JAMI FINE SPOT BEST MART A&O HAWAS DELTON CASH & CARRY HAJI DAUOD SHOP & SAVE HUSSAINS SAFEWAY PARADISE AGHA’S NOVELTY Location PHASE 1 PHASE 1 PHASE 7 PHASE 7 9&10 STREET 9&10 STREET 9&10 STREET 9&10 STREET DEFENCE 5 24TH STREET DEFENCE 10TH STREET DEFENCE BLOCK # 3 CLIFTON BLOCK # 2 CLIFTON BLOCK # 2 CLIFTON SCHON CIRCLE CLIFTON CLIFTON CLIFTON Lisa International Ltd Marketing Plan 16 S. No. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. Market Friendship DOLPHIN STRS MR. IDEAL BAKER TEST MART QUALITY STORE BISMILAH STORE AL-GHANI STORE QUALITY STORE HOUSE HOLD UTILITY HOME MART YOUSAF DIWANS Location Clifton KFC Road CLIFTON KFC ROAD CLIFTON KFC ROAD PARK TOWERS CLIFTON BLOCK # 9 GULSHAN BLOCK # 8 GULSHAN BLOCK A. NORTH NAZIMABAD TARIQ ROAD P.E.C.H.S. JAIL ROAD JAIL ROAD BAHADURABAD BAHADURABAD Lisa International Ltd Marketing Plan 17 PROMOTIONAL OBJECTIVES    To use push strategy. To enhance the awareness of product among target market. To develop a positive image of product. To design a promotional campaign in such effective manner so that consumer can switch over to use our brand from their present brand.  PROMOTIONAL STRATEGY: Promotional Device Magazines Out Door Media Television (PTV& PTV World, and cable Television) Mag, Akhbar-e-Jahan, Family Magzine. Scotch print, point of purchase and banners for introductory phase. PROMOTIONAL INCENTIVES: Consumer Distributor Retailers Free Sampling More sales commission will be given. As a motivational factor we will tell our distributor to nominate the best retailer for offering year end bonus to make them part of the company. Lisa International Ltd Marketing Plan 18 DOOR-TO-DOOR SELLING: In personal selling we will go for the door to door selling, so that to make our product more aware in those areas where there are no means of doing advertising & also to make people more convenient by telling them the more advantages of the Lisa face to face. PERSONAL SELLING: We will also hire people to visit different areas of our target market where they will provide free samples. This will be done in the introductory phase but after the advertisement is launched. ADVERTISING At first we will do INFORMATIVE ADVERTISING to promote our product and to build the demand for it in the market. After the informative advertising we will do reminder advertising to keep the consumers thinking about the product, by giving the ads on television etc. BROADCAST MEDIA:     We will use television broadcasting because it is a mass advertisement media. Under this we will select peak hours from 7 to 9. We will Advertisement only on PTV and PTV WORLD. Under the introductory phase our advertisement duration will be standard i.e. 30 seconds for 1 month then for 2 month it will be b/w 15 to 20 seconds. In future we will start a sponsored programme on PTV WORLD for face care tips. Under maturity phase ad for 10 seconds will be given where more emphasis would be given on showing our brand name. Lisa International Ltd Marketing Plan 19 PUBLICATION MEDIA:    Under publication media we will use both magazines and newspapers: In newspaper we will use image of Sunday’s issue and (Sunday magazine) of Jang and Dawn issue. Under magazines, we will use periodical (monthly and quarterly) like News line. Weekly issue we will use Mag and Akhbar-e-Jahan. OUT DOOR: We will use Scotch print and banners as an outdoor media. We will select the following area for placing scotch print and banners.          Clifton Schon Circle Tariq Road Chowrangi Hassan Square Defense Haidery North Nazimabad Shahra-e-Faisal Shaheed-e-Millat extension bridge P.E.C.H.S F.B. Area Posters will be placed in all major departmental stores. POINT OF PURCHASE MEDIA:   Prominently placed in shelves where the product speaks for itself. Display cards near the counters. Lisa International Ltd Marketing Plan 20 SALES PROMOTION STRATEGY At the time of launching, we will provide free sample of our product for customer’s attraction along with the ad that would be placed in magazines and newspapers. Later when we see our competitors is going to launch some new promotional activities then we distribute some incentive like buy and get 25% free. We will also offer some price deduction on twin pack. PACKAGING STRATEGY  We have developed a product in a recyclable plastic tube(to prevent the environment). With different we had prepared the tube so the tube looks more eye-catching and give very fresh look with mix colors.  Lisa International Ltd Marketing Plan 21 FINANCIAL ANALYSIS Marketing Budget & Income Statement The following table (Marketing Budget and Income Statement) provides a detailed presentation of the company’s planned marketing expenditures and a summary of the company’s financial projections including revenues, expenses, and resulting profits. MARKETING BUDGET AND PROFIT AND LOSS STATEMENT Description Last Year June 2001 This Year June 2002 Projection June 2003 EARNINGS Sales Rs.10, 00,000 Rs.12, 00,000 MARKETING ACTIVITY EXPENSES Product Branding Expenses Product Packaging Expenses Distribution Expenses Promotion Expenses Personal Selling Advertising Direct Marketing Sales Promotion Publicity and Public Relations Total Marketing Expenses Rs.70, 000 Rs.60, 000 Rs.212400 Rs.1, 50,000 Rs. 40000 Rs.279,500 Rs.10, 900 Rs34,000 Rs.10, 000 Rs.39,500 Rs.10,000 Rs.7500 Rs.20000 Rs.10,000 Rs.30, 000 Other Non-Marketing Expenses Rs.7,87,600 Rs.8,00,500 NET INCOME Net Margin Percentage 0 0% 1,20,000 10% Marketing Expenses as a Percentage of Sales 21% 24% Lisa International Ltd Marketing Plan 22 MARKETING BUDGET AND PROFIT AND LOSS STATEMENT June2002 June2003 June2004 Lisa International Ltd Marketing Plan 23 ADVERTISING BUDGET Rs.4, 20,000 Rs.3, 00,000 June2002 June 2003 June 2004 Rs.3, 80,000 Lisa International Ltd Marketing Plan 24 COMMENTS: Lisa International Ltd