North South University

Final term paper on liquid hand soap Course: MKT202 Section: 03 Date: 04.08.2014 Submitted by Name ID

T.M. Ratul Islam1321060030

Rakin Chowdhury Anan1230971630

Tasnim Sultana Pew1311364630

Mehedi Hassan1330408030

Rakibul Islam1320108030

Submitted toMd. Anwar Sadat Shimul (AwS)Department of Marketing and International BusinessSchool of Business

Executive SummaryOur project is about liquid hand soap. We found nine brands in market. Among them we took top five brands from the market. We visited some super shops and departmental stores in Dhaka city. To get information we discussed with the managers of super shops and the owners of departmental stores. They friendly co-operated with us to find the top brands in the market. According to their sales data we found these top five brands. They also told us about these brands marketing strategy. Most of them are using business to business marketing and some of them are business to consumer. They told us about just trade promotion, trade discount etc. keeping those information in mind, we have introduced a new brand in the market. quiClean is our new brand. We have used segmentation, targeting and positioning to promote our brand. We have used three segmentations out of four. We have eliminated demographic segmentation because, this liquid hand wash is for male, female, children even people in different ages can use it. We have used geographic, psychographic and behavioural segmentation. Geographically we have divided our market into some territories. Our main target is Dhaka, second is Chittagong, the other five divisional cities and next is tourism areas. Under psychographic segmentation our targeted customer is from upper middle class to upper- upper class. So we want to use market skimming pricing instead of penetration pricing. Our product quality is better than our competitors so we want to take higher price than them. quiClean is both for small and big family . We have made three types of containers. They contain 200 ml, 350 ml and 550 ml. Our refill pack is 170 ml.quiClean is now staying in introductory stage so marketing is the most important thing for manufacturer to make it available in market. Thats why we have a rational budget for marketing. We have determined to use all the sources of marketing to make our brand number one in the market.

Current Market AnalysisTop 5 liquid hand soap brands in the market1. Lifebuoy (Unilever )2. Dettol (Reckitt Benckiser India Limited)3. Savlon (ACI Limited)4. Sepnil (Square toiletries Limited)5. Farmasi (Tan-Alize Kozmetic, Turkey)

We visited some super shops and departmental stores and we found several brands. Based on higher customer demand they provide these 5 brands, shown above. They told us Lifebuoy has highest demand among these five brands, besides Dettol and savlon have also high quantity demanded. The rest two Sepnil and Farmasi have a least demand compared to the previous brands.

Finding top 5 brandsWe visited Agora, Mirpur-1; Nandan, Mirpur-11; Mehedi Mart, Bashundhara; Shawapno, Gulshan-02; Mina Bazar, Rajarbag and the departmental stores are Jamil general store, mirpur-02; Nawrin departmental store, Beili road; Ma general store, Shahzadpur also.

How are these names in the top 5 list?Visiting spotLifebuoyDettolSavlonSepnilFarmasiLuxMalizaFreshtoneBiore

Agora60505020102434

Nandan5040351552322

Mehedi Mart50403010103222

Mina Bazar555040105232

Shawapna6050401585423

Jamil general store1088 XX XX XX XX XX XX

Nawrin dept. store151083 XX XX XX XX XX

Ma general store1085 XX XX XX XX XX XX

Total310256216733813131313

Average38.7532279.14.751.61.61.61.6

According to their weekly minimum sales and customer demand, these brands are enlisted in the top 5 list.This statistics shows the top five brands in the market.Product analysis1. Lifebuoy (Unilever )Lifebuoy has two types of hand wash in our country. One is Lifebuoy total and another is Lifebuoy care. Lifebuoy cares colour is sky blue and Lifebuoy totals colour is pink. Both has 200 ml container and their refill pack is 180 ml. The external view of the container is close enough to hexagonal shape. On top of the container there is a push lock to use it. It should be used within 24 months from manufacturing date.

2. Dettol (Reckitt Benckiser India Limited)Dettol has four types of liquid hand wash in the market. They are Re-energizer 200ml container (orange colour), Sensitive 200 ml container (pink colour), Original 200 ml container (sky blue) and another is menthol 200ml container (blue colour). It has a refill pack of 170 ml and a family size of 750 ml. It has also hand sanitizer that can be use without water which is 50 ml. The external view of the container is close enough to hexagonal shape. On top of the container there is a push lock to use it. It should be used within 24 months from manufacturing date.

3. Savlon (ACI Limited Bangladesh)Savlon has three types of liquid hand wash. They are Active, Aloe Vera and Ocean Blue. These three types are available in 200 ml, 250 ml and 500 ml containers. This is an antiseptic hand wash with various features such as fragrance, colour and smell. The external view of the container is also close enough to hexagonal shape. On top of the container there is a push lock to use it. It should be used within 24 months from manufacturing date.

4. Sepnil (Square Toiletries Limited)This is an antiseptic hand wash. It has two types; one is antiseptic 220 ml container with 200 ml refill pack another is hand sanitizer 200 ml. Antiseptics colour is light red and sanitizer is white coloured. The shape of the container is two types. Antiseptics shape is cone and sanitizers flatter hexagonal. Its speciality is killing 99.99% germs without water. . It should be used within 24 months from manufacturing date.

5. Farmasi (Tan-Alize Kozmetic, Turkey)It has four types of liquid hand wash. Cherry and Almonds (red colour), Berries and Vanilla (off white), Orchid (white), Cream and Apricot(light red). These are available in 300 ml and 500 ml container. It gives consumers natural, romantic, softness and silky touch. It speciality is all the form are made from fruits and flowers. Consumers can use it within 4 years from the manufacturing date.

Ml

LifebuoyBDTDettolBDTSavlonBDTSepnilBDTFarmasiBDT

50(sanitizer)XX60XXX

20090 11580200(sanitizer) X

90(sensitive)

65(original)

220XXX90 X

250XX120X X

300XXXX 265

500XX200X 285

750X200XX X

1000XX210X X

Refill

18055XXX X

175X55XX X

200XXXX X

Price analysis: Including vat.

All prices are taken from the label of the containers. These are the maximum retail price (MRP).

Promotional analysisBrandsTvcNewspaperbillboardTrade promotionRadioConsumerPromotionCampingOther

Lifebuoy

Dettol

Savlon

Sepnil

Farmasi

This chart shows the primary promotional analysis of top 5 brands.1. Lifebuoy Unilever does mass marketing for Lifebuoy liquid hand wash. Unilever continuously makes TV advertisements for this hand wash. They use celebrities, doctors and kids for their advertisements. In Bangladesh, Lifebuoys brand ambassador is famous cricketer Sakib-Al-Hasan. They also advertise in radio, newspaper, billboard to promote this brand. They also do transit marketing. Specific times in the year they provide consumer promotion, providing something free for consumers. In this Ramadan (2014) they are providing a food container for free with two refill packs. They organize some activities in world hand wash day to promote this brand. This day they roll many promotional activities in several schools and colleges.

2. DettolDettol is manufactured by Reckitt Benckiser ( India) limited. It is available in Bangladesh. They Are making continuously TV advertisements in India. Distributor of Bangladesh uses their advertisements within this country in Bengali. Besides TV they use radio, newspaper and billboards. In their advertisements they show emotional facts like mothers concern about children. Sometimes they provide some gifts for free and also give discount to consume on purchase.

3. SavlonNot much advertisements are made by ACI limited ( Bangladesh) for Savlon liquid hand wash. They use newspapers and billboards advertisements to promote their brand. Actually they do business to business marketing and use trade promotion. They set a target for retailers. If they successfully achieve sales target, then the manufacturer provides cash reward and trade discount to the retailers. Savlon has a good image in the market by their other product advertisements. So the consumers have a positive perception for Savlon liquid hand wash.4. SepnilSepnil has no TV advertisement. They actually use newspaper and pharmacy to introduce their brand. This is totally Bangladeshi brand. So consumers have a soft corner for this brand. The manufacturer uses trade and target promotion for this brand. If the retailers fulfil the target sales, then they get trade discount, allowances and other rewards from the company. They also give discounts and allowances for consumers.

5. FarmasiFarmasi is a Turkish brand but it is available in Bangladesh. It has no tv advertisements for Bangladeshi consumers. Basically Bangladeshi distributor follows business to business marketing to make it available in market. In Bangladesh it is introduced and distributed by Gaby international. They set a selling target for retailers and if they can achieve the target, the retailers get trade discount and cash reward from the distributor. During this Ramadan in 2014 they are providing 20 taka discount for 500 ml container. This promotion is for end consumers.

Marketing strategy for our brand

Marketing strategy for quiCleanSegmentation: Consumers are different in their wants, incomes, location and demands. Through market segmentation we want to divide large heterogeneous markets into smaller segments. There are four ways to segment a market, Geographic segmentation Demographic segmentation Psychographic segmentation Behavioural segmentation

We will go for geographic, psychographic and behavioural segmentation. A question is automatically rising here and that is, why not we are going for demographic segmentation? The answer is, we are producing liquid hand wash and it is such a product that can be used by all aged people and gender. It does not depend on family size, small or big both size of family can use it.

The purpose of using geographic segmentationOur target is the big cities of Bangladesh. We divide Bangladesh into many territories that include our capital, other six divisional cities and tourism areas. We think as a new product this segmentation will be sufficient enough to run our business because, most of the segmented people are living in these territories.

The purpose of using psychographic segmentationIn this part, we thought about social class and life style. The reality is the lower class and working class people can not afford to buy a hand wash. Many middle class families do not buy hand wash they use 10 taka soap in their basin. Very few middle class family in Bangladesh use hand wash regularly, so our psychographic segmentation starts from upper middle class to upper- upper class.

The purpose of using behavioural segmentationIn Bangladesh we have many occasions. Some of them are very special like Eid, Durga Puja and Pahela Baishakh. During these occasions people consume many convenience products, so we choose these emotional occasions for segmentation and we also choose tourism season from December to March. Statistics shows that during this time there are above 1 million tourists stay in our tourism areas hotels such as Coxs Bazar, Sylhet, Rangamati, Bandarban. And they go for their meal in relevant areas restaurants. So we want quiClean be available in these areas.

Our target marketAfter evaluating different segments, we must have to decide our target market. Most of the upper class people are living in Dhaka city and Chittagong also. So this two cities are our first and main target market. We want to available our product in every corner of these cities. Now Dhaka is not only old and new Dhaka. It has spread its area to Gaipur and Narayangonj. Besides Dhaka and Chittagong we also target the market of another 5 divisional cities, selected areas where targeted customers (upper middle class to upper-upper class) are living. Our target market extends to tourism areas also. It does not cover the whole area of the relevant tourism district. We want to make available our product the selected spots where the hotels and restaurant are situated.

Positioning for quiClean Winning a position in consumers mind is a tough work. A question how we do it? In our target market at first we have to inform to our targeted customers that we are here. Consumers are overloaded with information about our competitors products. At first we have to penetrate our information in their mind. Then we have to be available in their areas with our core product. Our main target is to cover all the departmental stores and supper shops in our targeted areas. As this is a new brand so the wholesalers and retailers do not normally willing to sell our product. In this situation we have to use push strategy because everyone wants profit. Thats why we need to ensure them if you sell our target amount of container you will get cash rewards, discounts, allowances and other incentives also.

Marketing mix (4Ps)To market a product or service, we need to understand properly product, price, place and promotion. These are the four elements of marketing mix. Now we discuss about our brand through 4Ps strategy.

ProductquiClean is an antiseptic combination of hand wash and hand sanitizer. We are making three types of quiClean .1. Menthol2. Strawberry and Cherry3. SensitiveIt has different colours and fragrances for different type.1. Blue for Menthol2. Dark red for Strawberry and Cherry3. Off- white for Sensitive quiClean is available in market with three level of containers.1. 200 ml (for small family and hotel room)2. 350 ml (For big family)3. 550 ml (for restaurant and big family)We are producing 170 ml refill pack for all types.

PriceAs our target market is upper middle to upper-upper class and we are producing a good quality product so our pricing strategy is skimming price. (All price in BDT)MlMenthol

Strawberry & cherry Sensitive

200220250220

350300320300

550450500450

Refill

170150160150

PlacePlace means distribution channel. To make available our product for the customers we use a middle man between us (manufacturer) and retailer that is wholesaler. Manufacturer Wholesaler Retailer ConsumerWe will use this chain for rest of our target areas except Dhaka. One factor , that wholesalers make some problems. There are possibilities to make horizontal and vertical conflicts by wholesalers. So we have to keep a good communication and observe them properly. For Dhaka we eliminate the wholesaler because Dhaka is our main targeted area so we want to control Dhaka by ourselves. For each target market we want to provide sufficient pick up van to make our product available in time.

PromotionPromotion refers to the advertisements and marketing part of selling. This is a new brand in the market so the promotional stage is the most challenging factor. We have to do it very carefully. We need to keep a good flow of advertisements and do marketing within our limited budget.

We have a good amount of budget to promote our brand to beat its competitors.TvcNewspaperBillboardTrade promotionRadioConsumer promotionCampingOtherReserve

40%10%5%10%5%5%5%10%10%

This budget is for first three years and we want to reach our break even unit with this budget within this time.

BrandsTvcNewspaperbillboardTrade promotionRadioConsumerPromotionCampingOther

Lifebuoy

Dettol XX

Savlon X X XX

Sepnil X X XX

Farmasi X X XX

quiClean

Promotional analysis for quiClean and its competitors

Discussion about our promotional termsTV advertisementMost of the people watching TV and now a days TV is the most essential part of marketing. This is the most expensive way to marketing so we keep our highest budget for this term. We want to make our TV advertisement by an influential figure who can make a good image of our brand in the market. We dont want to make emotional advertisement. We will make realistic advertisements to promote our brand. Our TV advertisement will telecast in every bangle channel.NewspaperPrint media is a very strong advertising source in our country. Everyday minimum 3 million people read newspaper. We want to advertising in some leading Bengali and English newspaper that may cover minimum 1 million people. This is comparatively less expensive so for newspaper we keep 10% of our budget.RadioThis is a cheap advertising source comparatively television and newspaper. So we keep 5% credit of our budget. This is a cheap source but it works because in our country many people listening radio. For radio advertisement we need to make a good and effective jingle.BillboardWe have to make some billboard in our targeted cities. If we can make some billboard in some important location in these cities then those billboard can make appeal in our targeted customers mind.Trade promotionTrade promotion is one of the most important source to promote a new brand. So we keep 10% credit from our budget. Trade promotion is business to business marketing. Trade promotion means discounts, allowances, rewards and other incentives go to the wholesalers and retailers. If they get a good amount of incentives regularly, they will be motivated to sell our product.CampaignThis is quiet good source of marketing. We want to do campaign in our targeted areas location and we want to campaign also in leading schools, colleges and universities. In world hand wash day we want to do some different campaign like we will arrange some funny games for street children.Consumer promotion This is also an important thing to promotion a brand. Consumer promotion means give something free or give some discount to consumers. If consumers get these incentives occasionally they will be pushed to buy this product.OthersHere we want to do transit marketing in our targeted areas. We do also sponsor in sporting. We want to do sponsor in school and university level football tournaments, cricket tournaments and other tournaments also. If we can make good profit after our break even then we want to sponsor national and international level cricket tournaments. From this budget we want to make our brand ambassador also. In our country cricketer is the most influential figure so we want a famous and dashing face from here. We thought about our cricket captain Mushfiqur Rahim and rising peace bowler Taskin Ahmed. For these we need good money so we keep 10% credit from our budget.ReserveThis is not a promotional term. We keep some credit in reserve. We will expense from it, if any term need more money.

Competitive analysisThere are many liquid hand soap brands in the market. Those who are doing their business in liquid hand soap market before us they are our primary competitor. At first we want to beat those who have small share in market among all nine brands is shown in above. Gradually we want to catch the large market to beat the top five brands. Our main strength is our quality. We come to market with a new concept of hand soap that was not in the market before. We have also a rational marketing strategy to compete with our competitors. Top five brands are our major competitors. Among them Lifebuoy has highest market share and sales but they do not use all the sources of marketing. As lifebuoy does not use all sources of promotion but we must use all the sources of promotion to promote our brand (Promotional analysis for quiClean and its competitors). We will use all the chances of promotional activities to promote our brand and compete with our competitors.

Conclusion We are the entrepreneur in the liquid hand soap market because, we are manufacturing both hand wash and hand sanitizer in same container. As an entrepreneur we have risks to lounge this product. Besides there have been many competitions in hand soap market before us. Though there are risks and competitions, we are confident about our product, management and marketing strategy. Apart from this, our main object is to serve people as well as to eliminate the confusion about the working process of hand sanitizer that it can kill germs without water. Only good quality of product can help us better to serve the customers and helps the business to run further in future. By producing quality product we will touch our land mark.

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18

quiCleanBe clean with or without waterCurrently there are various kinds of liquid hand washes and sanitizers are available in the market. Along with the availability of these hand washes and sanitizers, there are also a set of confusion in the customers mind, whether hand sanitizers are an effective solution to kill germs and keep hands clean?These are common questions in the consumers mind, because people relate foam (bubbles) with the effectiveness of any hand wash solution. As hand sanitizer doesnt make foam or bubbles, so many consumer doesnt prefer hand sanitizers to be on their consume list. On the other hand many people keeps hand sanitizers on their priority list as its more convenient to use them in travelling, outside, home activities, picnic etc as it doesnt require water.Keeping these facts in mind we have planned design our product in such a way , which serves the people of both hand wash an sanitizer in the same form. And the wining concept behind our product is, it can be used both with or without water and in the both cases. Its effectiveness would be the same.quiClean will act as a hand sanitizer when used without water, and will also generate bubbles and foam (in the same form of any liquid hand wash brand) when applied with water.