Strategic Plan for next 5 years:
WoW! Deodorant is an undifferentiated product, which is going to join the local market. Several renowned brands are there to compete with this new brand. So, strategically, it will be wise to think before launching this product. Huge market with huge competition is the main fact to bring in mind first. So, Marketing Mix Strategy is a must to be in this competition.
WoW! Deodorant is a new product. Now it is at the introduction stage of product life cycle. So, in this stage, a careful step can lead this product to a great success. In the beginning we should emphasis on the quality. Once we reach the satisfaction level of customer, we can give more effort to improve this product. Within a year we have to get the market share, and move this product to growth stage. And it will be wise to keep the growth of this product for the next four years. In the mean time, several obstacles will come on the way to make this product mature.
Overpricing can arise a question to the survival of a new product. So, careful step should be taken, while determining the pricing of this product. There are some facts that should think, before pricing a product – 1. Cost of good
2. Cost of materials
3. Relevant to market
5. Cost per customer
These facts work, while planning for pricing a product. As a new product, at the introductory level profit should be limited, so that, this product can introduce its existence at the market. In the first year, this product will face difficulties to earn the profit. But, within a year, this product can reach the “Break Even point”. From the second year, this product will gradually increase its sales and get a better market share. On the 3rd year, WoW ! Deodorant will be fully in competition. That will be in the growth stage. So, at that time, pricing will have severe impact on the product sales. Due to huge competition, REXONA, FA, DENIM and the other deodorant will increase or decrease the price of the product. At that time, we should observe the market, and then we will bring changes to our product price. It will help our product to survive in the long run.
Considering the market situation and compromising the less profit, WoW! Deodorant should be placed carefully. On the very first year, we will concentrate on the local market. Than observing the market condition of our product for first year, we can decide our next move. That depends on the market share. May be this product can be the Cash Cow at the introduction stage. But in the next upcoming years, it could be a Star Product. Than we can forward our product to the international market next. Promotion :
Huge promotion is not required in the introductory stage of a product. So, in the first year we should not emphasis on huge promotion of WoW! Deodorant. It can effect the start-up fund or financial condition. As a introductory product, we will go for mouth to mouth strategy and promotion through newspaper or other print media. Electronic media will be expensive to effort for a introductory product. Once this product prove it’s existence, than next year we will go for huge promotion. Electronic media, print media etc will be essential than. At the growth stage, to achieve more profit there is no alternative to mass promotion. Not only that, different offer to create customer interest, can be a good step. Offering seasonal discount, promotional discount can be helpful to introduce this product. On the next years, we can apply huge promotion through all media. Other :
Harmful chemicals is used in making a deodorant, which have severe impact on environment. Triclosan, Talc etc are very harmful for environment and also for human skin. So, we can bring specialty to our product using natural herb and floral perfumes. Those are environment friendly and skin friendly too. So, this strategy can make WoW! Deodorant special. Also, we can establish an example...
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