Principles of Marketing|
Submitted to : Sir Ali Raza Noor IQRA UNIVERSITY (ISLAMABAD CAMPUS)|
Nasir Javed (16290)
Mohammad Shahid (16286)
Vervain is a deodorant which will be launched by Vervain private limited. The Brand is targeted towards the Adults of Age 15 to 30 of the market. Vervain has unique brand with first of its kind in the country. The product will compete on its advantages based on the chemical formula. The product’s competitive advantage is the price effectiveness and alcohol free composition with long lasting effect. The price of the deodorant will be Rs. 200 lesser than its competitors and the Bottle of the deodorant will be 250ml. The deodorants market in Pakistan increased at a compound annual growth rate of 7.4% between 2004 and 2009. The body spray segment led the deodorants market in Pakistan in 2009, with a share of 61.2%. Unilever Pakistan’s Axe was the leading brand in deodorants in Pakistan in 2010 with a value share of 28%. The market penetration of the deodorants is still 2 to 3 percent. The Vervain deodorant will have a competitive advantage on the bases of following characteristics: Price, Alcohol free composition, natural ingredients and long lasting effect . The promotional Strategy will be mix of push and pull strategy. The product will initially use above and below the line promotion. The Media used for the advertizing will be print, radio and below the line media keeping in view the youth viewership. Bill boards and push tactics like giving retailers good margins like 10 % which is highest in our industry will induce the retailers to put our products on the point of Display. An interesting aspect used in the promotional mix will be to target religious youth. Our product will have free sampling units in front different mosque to create unique position. Social Media Like face book and Twitter will be used for the promotions to be cost effective. Retailers are one of the main strategic partners for the Vervain so the highest margins will be commissioned in the industry. The budget allocated for marketing purpose is 3.16 million in the first two years.
Current Market Situation
The deodorants market in Pakistan has increased at a compound annual growth rate of 7.4% between 2004 and 2009. The body spray segment led the deodorants market in Pakistan in 2009, with a share of 61.2%. Unilever Pakistan’s Axe was the leading brand in deodorants in Pakistan in 2010 with a value share of 28%. The market penetration of the deodorants is still 2 to 3 percent. PEST analysis will further elaborate the market situation and environmental factors effecting the product.
Political and legal factors have huge impact on the business for develop new strategies. The factors can affect how we operate, our costs, and the demand for our products. Political situation in Pakistan is quite unstable for the last few years. A large number of factories and industries had shifted their business in China or Bangladesh due to this uncertain political environment. This has left ample labor in market. Several changes had been done in past in labor laws and regulations but so far implementation is not observed. The change in tax policies, increased trade restrictions and tariffs offer hurdles in the way of our product to excel in market.
Economic factor has major impact on our business operation and making decisions in the future. This includes economic downturn, interest rates, exchange rate and Inflation rate. It is a bitter reality that our economy has not seen much growth during the past...