Hair Colour Shampoo

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<p>Hairsation Coloring Shampoo</p> <p>Marketing Management Report</p> <p>SITUATIONAL ANALYISIS MARKET SUMMARYSegmentationFor our product we decided to survey the market and then carefully choose a level of segmentation. We choose segment marketing i.e. identify large groups within the market with similar characteristics and target either one or a few of them. This decision was based on the fact that although the market consisted of people with the same need i.e. to colour and shampoo their hair, but the market varied in other characteristics. The segments we choose to target consisted of people who wish to colour their hair to hide their gray hair and also people who would like to colour their hair just for the style. All our strategies and positioning is targeted towards these segments. Due to the restraint of resources we also decided to market the product in selected cities of Pakistan, to start with, namely Karachi, Lahore and Islamabad.</p> <p>DemographicsHairsation plans to serve the age group 20 and above, both male and female because our target market not only consists of those veterans who color their hairs to cover the gray and to look young and smart but also the young generation who are fashion conscious and want to have a new look by giving their hairs a new color. As our target market we have included middle, upper middle and upper class whose incomes are Rs. 20000 and above because most of the people using hair colors or getting their hairs streaked or bleached fall into this category.</p> <p>Institute Of Business Management</p> <p>-1-</p> <p>Hairsation Coloring Shampoo</p> <p>Marketing Management Report</p> <p>DemographicsAge Gender Income Social class 20 and above Male and female Rs. 20000 + Middle class, upper middles, upper class.</p> <p>Behavioral FactorsHairsation hair coloring shampoo provides benefits such as Beautiful different colors with convenience of shampooing thus keeping you up to fashion and giving a smart look and is meant for Regular, occasion and special occasion users and is expected to be used by heavy users and light users. Heavy user market consists of those who shampoo almost daily and also want to maintain or change their hair color with Hairsation as well as light users who shampoo twice or thrice a week. As far as the buyers readiness stage is concerned, most of the people (according to our survey) are aware of hair colors and but are uninformed about a hair coloring shampoo as this for the first time in Pakistan that a hair coloring shampoo in a liquid form is being introduced, consequently resulting in enthusiastic and positive response.</p> <p>BehavioralPurchase occasion Benefits Regular, occasion and special occasion. Beautiful different colors with convenience of shampooing thus keeping you up to User status Usage rate Readiness stage fashion and giving a smart look. Potential users, first time users and regular users of hair colors Heavy users and light users Aware but uninformed and are intending to buy Institute Of Business Management -2-</p> <p>Hairsation Coloring Shampoo Attitude toward product</p> <p>Marketing Management Report Enthusiastic and positive</p> <p>Market NeedsThe Basic need that we are trying to satisfy, by introducing Hairsation hair colouring shampoo, is that of colouring hair. But to successfully market our product we need to find out why, when and what kind of people need to colour their hair. We found out that people start to colour their hair after the age of 40 so as to hide their gray hair. These people on averae colour their hair once in 9 days using a hair colour. But ofcourse if they use a hair colouring shampoo the usage rate will change. Young people colour their hair to give themselves a new look and to stay abreast with fashion. They satisfy their need of colouring their hair by going to a hair specialist. Hairsation will provide them with added convenience as they will be able to colour their hair themselves and at whatever time they want.</p> <p>Market GrowthAlthough Hairsation is an innovative new product which is being introduced in Pakistan for the first time, its basic need is already being satisfied by the hair colours available in the market therefore our company is just another player in the hair colour industry. The hair colour industry is currently in the growth stage and the number of people who wish to colour their hair is growing day by day. Therefore we have a good opportunity to capture a sunstantial share of a growing market. A growing market does not necessarily mean success for our company. Success depends on how well we communicate our message to the target market by means of advertising and positioning and how well we can promote our product. These strategies are discussed in detail later</p> <p>COMPETITIONInstitute Of Business Management -3-</p> <p>Hairsation Coloring Shampoo</p> <p>Marketing Management Report</p> <p>Basically our product competes with two different industries at the same time, our major competitor is the hair color manufacturing industry and the minor competitors is the shampoo manufacturing industry because our shampoo contains an additive feature of coloring the hair as well.</p> <p>Competitors In The Hair Color IndustryHairsations major competitors include the following: 1. WELLA (KOLESTON 2000) Wella is a German company and is one of the renowned companies in the hair color industry. It is the most widely used hair color among its target segment. It aims to serve the middle and above classes. 2. CLAIROL (nice &amp; easy) Clairol is an English brand and after Wella, Clairol is the highest selling hair color. It also sells its product to the same class as Wella. 3. REVLON Revlon is a well known company for cosmetics products and has a strong brand equity.</p> <p>Competitors In The Shampoo IndustryHairsation might be facing competition from the shampoo manufacturers such as P&amp;G and Lever Brothers who might diversify into hair coloring shampoo industry and with their strong brand image might steal our market share.</p> <p>SWOT ANALYSISStrengthsInstitute Of Business Management -4-</p> <p>Hairsation Coloring Shampoo </p> <p>Marketing Management Report</p> <p>Hairsation is the first and only hair coloring shampoo in Pakistan It is self-applicable and convenient to use, that is it does not require a partner to apply on your hair</p> <p>Has no direct competitor Hairsation is an excellent product when it comes to quality and works perfectly It does not leave any mark on the skin where as the hair coloring creams leave their mark on the skin and are hard to remove.</p> <p>Weaknesses The overall product is excellent but at the moment our weakness seems to be in our competitors brand name strength as compared to our brand which would be absolutely new in the market and consequently if our competitors imitate our product quickly and not giving us much time to establish a strong brand name and loyal customers then there is a strong likelihood of their taking our market share We are a new brand in the market so it would be hard for us to persuade the consumers to use our product (that would be overhauled by heavy advertising and excellent product quality)</p> <p>Opportunities The hair coloring industry is highly lucrative There are no direct competitors, only industry competitors The number of hair color users are increasing day by day</p> <p>Institute Of Business Management</p> <p>-5-</p> <p>Hairsation Coloring Shampoo Market has a very high growth potential</p> <p>Marketing Management Report</p> <p>St. Danis has an excellent opportunity to exploit such a huge market with its innovative features Stage is set to invade an industry that is already through with the introduction and xawareness stage.</p> <p>ThreatsAlthough provided with a number of opportunities, Hairsation is also likely to be threatened by its major competitors, that is the hair color manufacturers and also by the minor competitors that is the shampoo manufacturers. They might pose threats in the following ways: From Hair Color Industry Some of the finest hair coloring companies like Wella, Clairol or Revlon might be able to produce a hair co006Coring shampoo of their own They may well claim the market share by making people conscious of the fact that they are the pioneers of hair colors and know it better than any one else. They might introduce a similar sort of product in an unserved territory. Sell at lower price</p> <p>From The Shampoo Industry Renowned brands like Procter &amp; gamble and Lever brothers might imitate our product and introduce similar sort of shampoo with distinctive features They may well be able to acquire some of our market share as they enjoy a successful brand image. They might introduce a similar sort of product in a unserved territory. Sell at lower price</p> <p>Institute Of Business Management</p> <p>-6-</p> <p>Hairsation Coloring Shampoo</p> <p>Marketing Management Report</p> <p>KEY SUCCESS FACTORSThe launch of an entirely different product like the one we have launched involves many success opportunities as well as a lot of risks. We can expect of our products success because of the following key factors: Pioneer product Hairsation is very different from traditional hair colors. With Hairsations, we can color our hair whenever we desire and it also provides the convenience of shampooing. It is a pioneer product in both the markets of hair color and shampoo. Saving of time and money Hairsations gives the convenience of shampooing as well as coloring hair in a very short time, as contrary to the traditional hair colors which requires a lot of time. On the other hand it also saves a lot of money as with other hair colors, we have to spend money on shampoo as well as hair color. It is very inexpensive to use such a product which gives both the benefits. Natural looking hair color Hairsations gives a nice and natural looking hair color with the facility of shampoo. With herbal ingredients in the product, it gives an entirely natural look to the consumers. Valued Product With other traditional hair colors, you do not have to go through a range of steps as well as you do not need anyone to help you in application. It does not need any marks on the skin as with other hair colors. With it also provides healthy and nourishing hair as well as saves time and money.</p> <p>CRITICAL ISSUESInstitute Of Business Management -7-</p> <p>Hairsation Coloring Shampoo</p> <p>Marketing Management Report</p> <p>As it is mentioned earlier, the product involves some risks which can be critical to its success. Some of the risks involved with its launch are: Small Target Market Basically in Pakistan, about 8% of the people color their hair and there are already a lot of products in the market and they have built a strong reputation in the minds of the consumers and gained a satisfactory market share. Because of this reason, we cannot expect a large market share from the product. Although it is a shampoo too but this shampoo can only be used by the customers who want color their hair. Customer expectations Generally the customers expectation become higher from an entirely different product and there is a risk that if the product does not match with the customer expectations, then it can never be successful. In such a case, the product will eventually come to the decline stage. It is very necessary that the product matches with the customer expectations. Lack of persuasion With such a new product, it requires a lot of persuasion because people need to have a knowledge about the different features and benefits of the product. The customers will only use the product if they have a strong knowledge of the product. Competitors There are a lot of competitors in the market which can be very critical to its success. On the other hand there is also a possibility that the competitors might imitate the new product.</p> <p>SERVICE OFFERINGToday, the product and services for a company becomes more and more commoditized, as now the market is turning towards a competitive environment. Many companies are moving to a new level in creating value for their customers.</p> <p>Institute Of Business Management</p> <p>-8-</p> <p>Hairsation Coloring Shampoo Hairsation, to differentiate their offers, they are developing and delivering total customer experiences. Products are tangible and</p> <p>Marketing Management Report</p> <p>services are intangible, experiences are memorable. Whereas products and services are external, experiences are personal and take place in the minds of individual consumers. Companies that market experiences realize that customers are really buying much more than just products and services. They are buying what those offers will do for them. The experiences they gain in purchasing and consuming these products and services. So, this is the best service offered by Hairsation coloring shampoo comparative to other coloring shampoos in the market.</p> <p>MARKETING STRATEGY MISSIONInstitute Of Business Management -9-</p> <p>Hairsation Coloring Shampoo</p> <p>Marketing Management Report</p> <p>Hairsation is about passionately delivering better solutions in hair coloring to consumers, for the ultimate purpose of creating customer value.</p> <p>MARKETING OBJECTIVEHairsation has set the following marketing objectives</p> <p>Marketing objectives of HairsationNo. Cities Size (in terms of units sold) 1 2 3 Total Karachi Lahore Islamabad/Rawalpindi 40,000 28,000 10,000 78,000 Hairsations % 30% 30% 30% 30% Hairsations market units sold 12,000 8,400 3,000 23,400 market share in share in terms of</p> <p>FINANCIAL OBJECTIVESWe want each business unit to deliver a good financial performance and have therefore set the following financial objectives: Increase the our annual rate of return to 15 percent by the end of the third year Break even by the end of the first year Earn a profit of Rs. 5 million in the second year Institute Of Business Management -10-</p> <p>Hairsation Coloring Shampoo </p> <p>Marketing Management Report</p> <p>Convert the negative cash flows into a positive cash flow by the end of the first year and produce a cash flow of Rs. 3.5 million in the send year.</p> <p>TARGET MARKETAfter evaluating different segments, the company must now decide which and how many segments to serve. This is a problem of target market selection. A target market consists of a set of buyers who share common needs or characteristics that the company decides to serve; the firm can adopt one of three market coverage strategies Undifferentiated marketing Differentiated marketing Concentrated marketing But in this case we will focus on the third one, which is concentrated marketing. Concentrated marketing is especially appealing when company resources are limited. Instead of going after a small share of a large market, the firm goes after a large share of one or a few segments or niches. For Example, we know Hairsation is a hair coloring shampoo meant for those who use hair colors to cover the gray in order to look young and smart as well as for young, fashion conscious and stylish people who get their hairs streaked or bleached to get a cool and different look.</p> <p>POSITIONINGAlthough we are not...</p>