Introduction

GEB Cosmetic Company Limited has been operating in this regionsince 15 January 2009 in Bangladesh. It is entering its firstyear of operation. This company is providing 100% naturalherbal extracts for its target consumers keeping in mind theirneed of the product. It will be selling its product to almostall the retail shops and accessories shop in the country.Market research indicates a specific and growing need of thebeautification & fairness, which “F&B Care” will be providingthe customers a new way without any side effects. Both man andwomen are becoming more and more beauty conscious now-a-days.For this reason, many cosmetics companies are emerging withtheir own products, thus resulting in the saturation of suchmarkets. These products are not effective all the time becausethey are not providing their product, which is not based onmedically skin-test. That’s why this company is providing ahigh quality product with low & reasonable price of itsconsumers. “F&B Care” is effective on all kinds of skins. Itis increasing fair within only three days. The majorcompetitors of this company are Nature’s Beauty Creations LTD,DISAPEAR COSMETIC LTD, UNILEVER LTD. And FINE FRAGRANCES ANDCOSMETIC LTD.  To give the customer a new face and body caringproducts depending on marketing research information of thecustomer, we are going to launch a new different andinnovative face and body caring products that is called “F&BCare”.

1.2 Objectives

Main object of this term paper is to know about “The marketingplan of the new launch product of the GEB Cosmetic CompanyLimited”.

Capturing 70% of target market of the product.

1.Complete consumer satisfaction and loyalty.2. GEB cosmetics target the urban, semi urban and ruralmarkets focusing mainly on the consumers middle, middle lowerand lower economic segments.3. Promoting and increasing sales volume through branding andattractive advertisements.4. Offering competitive and attractive price for most of its

products.5Consumer oriented promotions.6. A larger market share.7. Reasonable price within the competitive range.8. Maintaining the best quality of its products.9. Offer for attractive trade deals.10. Expansion of product line.11. Recognition as a leader in cosmetics technology andproducts innovation.12. Contribution to the national economy of Bangladesh andalso to life style and social welfares.

Continuous improvement of customer satisfaction, resourcemanagement and providing quality products in a reasonableprice.

1.3 Source of data

All information of this term paper is collected from twosources.

These are given on the below.

First one is Primary Data (Directly communicated with somepersons).

 And another is Secondary Data (from the book, name of thisbook is MARKETING MANAGEMENT by Philip Kotler and internet).

1.4 Methodology:

 We used both random sampling & cluster sampling.

1.5 Limitations:

This report is not out of some limitations. Throughout thereport we have faced a lot of problems. Some of this are-

No such specific cost information Lack of information on recent wind speed. Lack of time frame. Load shading causes hamper in our work.

Company’s Mission:

‘‘Tomorrows Beauty today’’

We want to expand the company into trustful and beautygeneration by providing quality product to the every customerwithout any harmful effect.

Company’s Vision:

This company wants to provide high quality beauty product to the vast majority ofrural & urban people of Bangladesh to build up a faithful and delighted nation.  

Chapter 2

2.1 Background of the company

GEB COSMETIC LTD is a new company in the competitive globalmarket. This company was formed 15 January 2009 and startedwith 30 million taka capital and 100+ employees. F&B Care isthe product of this company.  At the starting time to now,company is collecting maximum raw elements of the product fromthe country and some raw elements are collecting by importing.

At present our target market only in Bangladesh. Above sixteenages both men and women are the target customers of thiscompany. The firm is involved with production and distributionof 100% natural herbal beauty product from natural windresources. Although this firm will operate its activitieswithin the boundary of Bangladesh but it can extend itsproject anywhere suitable in any country.

 Infect, many competitors are stayed in the market. That’s whyit is hard to create or reach number one position at presentmarket, but it is possible. For that cause, company wants todevelop products elements. And also follow a differentmarketing plan.

2.2 Products of services of the company

This is a new company and entering its first year of operationwith a new package product. In this package, a consumer foundstwo essential beatification products. One is “Hair-growingGel” which gives consumer rapidly growing hair and stopfalling hair instantly. Also it grows hair on baldy head.

Another one is our ultra fairness cream, which makes the skinfairer within only three days. No company has given this offeras we know. This is also can be used on any kind of skinwithout any side effect. It reduces dark spots, pimples. Italso lift wrinkles and make you younger than now-a-days youlook like.

Both of these products can found in mini, medium & family sizepacks. Everyone can buy this product after two months.

We have also skin care centers, where consumer can get specialtreatment by professionals and expertise. We have 23 skin carecenters around the big cities in the country.

2.3 Performance of marketing of the company

This marketing plan is done through imagine. That’s why wecould not say that what is the actual performance of thismarketing plan of this new product of GEB cosmetics Ltd. Butit is true that if this product launch according to this planthen company will be gainer.

Anyway, the total marketing plan is continuing by six majorgroups. These groups are

Group one (Financial Department) works to manage the essentialcapital of the company by taking loan from the bank.

Group two (Marketing Department 1) works to purchase land &computerized machineries with high technological advancementby the agency.

Group three (R & D Department) works to change the packagingstyle of the product by creating modern design & level.

Group four (Marketing Department 2) works to increase theadvertising of the product on TV, FM & Local Dish Channels inthe country.

Group five (Production + HRM Department) works to increase theproduction of the product by providing extra opportunities tothe production workers.

Group six (Marketing Department 3) works to build up anefficient distribution system.

And this group works also to ensure the proper selling of theproduct of the company by set-up showrooms of this product atthe important place in the town of the country.

Chapter 3

3.1 SWOT analysis of this company

Strengths Weaknesses 

Provide customer demand based product with reasonable price.

High customer loyalty. Strong relationships with Stakeholder. Excellent, stable and trained staff for customer service. F&B care makes your dream come true. High technological advancement machineries & quality

control.

Private limited company Limited Cash Too many existing competitors. New in the market.

OpportunitiesThreats

Completely new fairness cream & hair gel in the market. High growth rate in our target market. Men are more conscious about their beauty. 90%  people are beauty conscious  in this country. Increasing sales opportunities beyond whole country. Economic, political and technological factors of the

country may be threatening for our product. New entry of similar white beauty cosmetic product

Company.

3.2 Marketing analysis

Market Description                                       

We have more clear and specific information about the market and we are also aware of the customer demand and choices. Based on our Research and Development department we are strictly determined to serve our customer needs and wants witha totally new taste of beautification like “F & B CARE”. We are going to launch our new product for both male & female.

Current Marketing Situations :

“F & B CARE” for both male & female, whose age is above sixteen years.

Factory monthly production is 1,00,000 unit.There are 4 kinds of sizes are available . Different size such as 5gm for Tk.8, 25gm for Tk.78, 35gm for Tk.93 and 65gm for Tk.175 are also available .

Dealer  number is 65 , Sub-dealer 490 , Wholesaler  2000 ,Retailer 50,000.

Considering the competitors market share “GEB Cosmetics Ltd. is now going to the market.

Now the major competitors in the existing market are :

Present market is changing day by day. For that it is hard to survive as a profitable product in this market. Competitors ofthe GEB Company include not only the other firms which market the same or similar products but also all those who compete for the discretionary income of the customers. Names of the major competitors of the GEB Company are given on the below shortly:

Product Name                           Company Name

SANDUN LITE SCRUB                             Nature’s Beauty Creations LTD.

OLAZ WHITE LOTION                             DISAPEAR COSMETIC LTD.

POND’S WHITE BEAUTY                        UNILEVER LTD.

FADE OUT SUN CREAM                          FINE FRAGRANCES AND COSMETIC LTD.

AGE MIRCLE                                    UNILEVER LTD.

                               

Figure: The competitors of the GEB Cosmetic Ltd in the presentmarket.

Above all company supply quality products .Their price level is Tk. 25-500+ .Their distribution channel is given below :

Company ……………   Dealer …………    Whole seller ……….. customer

For promotional activities they use Tv , Radios , Newspaper etc .

As , there are lots of  competitors in the current market are available so , distribution channel set up is very much important , because if distribution channel does not act properly then customers does not get the products in proper times .For quick distributions my company “GEB Cosmetic Ltd.” Set already huge distribution channel whole over the country.“GEB Cosmetic Ltd.” Marketing channels are given below :

Company ………  Dealer………..   Sub-dealer………….  Wholesaler   ………  Retailer ……Customers.

So from above we see that  my company’s  marketing strategy ismore strong than my competitors .

Market Segmentation

The market for our product “F & B CARE” consists of Geographic, Demographic, Psychographic and Behavioral factors.

Geographic:

Our immediate geographic market will be Dhaka city with apopulation of around 10 million.

Our total targeted area population is estimated at .80 million.

Demographic:

Male & Female Generation – Young and matured people (who are above

sixteen years).

We know the following regarding the profile of the typical resident of DhakaCity

Ü     43% male

Ü     57% female

Psychographic:

Social class: Middle Class, Upper Middle Class, and UpperClass.

Life style: Achiever.

Behavioral:

Benefits : Quality User status: Potential user, first-time user, and regular

user.

Market Needs

Our Research and development department found that people preferring the new quality product

because they has need for fairness and hair growing because fairness and hair growing are two major problem, who are beauty conscious. That’s why they would like to consume these products.

Product Review

We are going to introduce our new diversified tastes product “F & B CARE” initially in  5gm mini packets, 25gm, 35gm, and 65gm pots. It will be launched in glass pots and also will be launched in different packages like plastic mini packets, family, individual package. According to the survey the targetmarket growth rate is increasing. Our company estimates that the future market will be satisfied with more diversified and segmented product. Our target to make new market segments according to customers needs and wants.

Objectives and issues :

The main objectives of the company “GEB Cosmetic Ltd “ is to reach in grade 1 position within next 5 years . Which  steps  will take to achieve  goal are given below :

>Quality Product : We will use high quality materials to manufacturer this product as a valuable product.

>Price Level : We want to that everybody gets better product at a affordable cost from my competitors.

>Proper Distribution Channel : We control and continue a active channel distribution system that we also develop  so that ,our customer always get this product available in the market.

>Time Conscious : We must finish our all sectors work within aparticular time that’s why our customer gets product at propertime .

>Conscious : Market challengers are always ready to copy my product so, we must be conscious about the market challengers.

>Product Design :R &D department is working for product designand development.

>Advertising : More advertising ensure more sell. So for more advertising my company choose several kinds of commercial ads on the Radio, TV , Newspapers , Magazines, Leaflets etc. we also arrange a live TV show. This program will held two times in every month.

>Encourage : Encourage to use them who are non users.

>Motivate : The customer who use other companies product try to motive them as they use the company product.

>Variability : Variable use of the soap must be ensure.

 Marketing Strategy

Our marketing strategy is based on becoming the potential choice for consumers in the fairness and hair growing gel market. Our marketing strategy is based on superior performance in the following areas-

Product quality. Product price. Superior idea.

Target markets

Our target markets are separated into two segments. These segments are male and female.

Positioning

We are trying to position our product through image differentiation, cause related marketing, and product differentiation.

We will use logo and short advertisement so that people can consistently see the advertisement so the product will occupy a clear, distinctive, and desirable place in the mind of the consumer relative to competitors’ product.

We will use USP (Unique Selling Proposition) for our product. To do brand differences that make a better differentiator thathas the potential to create company costs as well as customer benefits. A difference is worth establishing to the extent that it satisfies the following criteria-

Important Distinctive Superior Communicable

Affordable and

Profitable

 

Strategies

The greatest objective is to establish our new brand in the industry. The marketing strategy will seek to first create customer awareness regarding the product and establishing connections with targeted markets and work toward building customer loyalty and referrals.

Our marketing strategies are-

Increase awareness and image. Quality leadership.

Customer Service

Increase awareness and Image: Informing the consumers about our new product “F & B CARE”. Through, advertisement, leaflets, events we can increase awareness of the product and establish image of our product.

Quality leadership: Our strategy is for being the quality leader in the market. We will offer the best quality product in the market which will make us quality leader in the market.

Customer Service: GEB Cosmetic Ltd. Is always concern about their customers? Company always research on what are their needs, what they want?  etc. – to happy the customer even at expense of short term profits. In long term, this investment will pay of with a fiercely loyal customer’s base that is extremely vocal to their friends with referrals. 

Marketing Mix

Our marketing mix for the new product “F & B CARE” is as follows:

Pricing:

The Company established the price of its new product “F & B CARE” with the concept from cost plus pricing. According to our calculation the cost of our product is Tk.8, Tk.78, Tk.93 and we set Tk.175 for our product.

Distribution:

For better distribution GEB Cosmetics already appointed 65Dealers, 490 sub-    dealers, 2000 wholesaler, 55,000 Retailer, in whole over the country.

Advertising and Promotion:

The most successful advertising will be through NTV, Channel I, ATN Bangla , RTV, and CSB News which are the most popular television channels in the country. We will also use some bill-boards and leaflets and we will also arrange TV live showprogram for our customers to promote the product. In this program we make a model by selecting through lottery, if the

purchaser purchase one of our product they will get a tin number and by sending the tin number through a sms they will get this chance.

Product marketing

Our product will enable our customers to have a different experience to fairness and hair growing gel. They will be ableto differentiate our product in quality and performance which are unique in this present market.  They will not be able to feel the same way for the other related product in the market.

Quality leadership: We are the first producer of this different product. We will ensure the TQM (Total Quality Management) and by value delivery network so that we can be the leadership position in this market.

Mass distribution: We will also going for mass distribution ofour product as the product is low involvement and people show habitual buying behavior. We want to distribute our product each and every corner of the country. Consumers will get this product where ever he of she visits.

Test Marketing : Company start marketing to target distributoras target customer can buy it.

                                         

Lots of advertising will be carrying on increasing sell.

Consumers are also survey.

Controlled Test Market :

By increasing billboard in the test market. Special ads on dish channel. Shop decorating. Special discount.

Budget:

Budgeting is basically a systematic method for allocating the resource of our organization in ways that will most effectively help the organization to meet its goals. By

concentrating on goals and programs in light of available resource, it stresses the desirability of assessing cost against benefits when selecting the best course toward accomplishing a program goal.

 

Variable Cost: -                                                          TakaDirect Material 2.15Direct Labor 0.85Indirect Material 0.80Indirect Labor 0.20Fixed Cost 1.15Manufacturing Cost 0.85Sales & Promotion 1.20Total Cost per unit (each 5gm)

7.20

 

Company expect to produce 500000 units in every month. Companywill get Tk.0.80 profit on per unit (each 5gm).

 

What will be the Cost of product:

Cost Calculation:

Total Fixed Cost (Land , Equipment , Building )                               Tk.  115,00,000

Total Variable Cost (Labor  ,Raw- materials)        Tk.    25,00,000

Total Advertising Cost ( TV , FM, Leaflet, Newspaper )                    TK.   32,00,000

Product Development ,Distribution and Incentives         Tk.    15,00,000

Tax                                                                                                        Tk.      300,000

Other Cost                                                                                                                                                                                     Tk.           1000,000

Total Cost                                                                                             Tk.   200,00,000

Break-even Analysis

The Break-even Analysis indicates $5714.30 or Tk.400000 will be need in monthly revenue to reach the break-even point.

 

 

Figure :  Break-even Analysis

 

Break-even Analysis (imagine)  Monthly Revenue Break-even  Tk.400000  Assumptions: Average Percent Variable Cost (on revenue)30%Estimated Monthly Fixed CostTk. 50,000

Product Life-Cycle

Introduction:

In this stage of our product’s life cycle, sales are expected to be low. On the other hand cost per customer will be moderately high. So, in this stage, we will use cost-plus pricing. Profits will be negative until we reach the break-even quantity which is 5lacs units (per unit = 5gm of the product) of sale. We will offer the only brand “F & B CARE” inthis stage. Distribution will be selective; The Company would primarily focus on promoting the Brand Force PCs in the capital city Dhaka. Unless the brand is well established in Dhaka, it would be pre-mature to increase overhead expenses indistant districts since most of the corporations, business establishments, located in Dhaka. For large institutional buyers, our company would open a representative office in Chittagong, the port city, to cater to the specific volume purchases. We will use heavy promotional activities; advertising, personal selling and try to build product awareness among early adopters.

Growth:

In this stage, both sales and profits of our product are expected to rise rapidly. To penetrate the market, we will useaverage cost per customer. Growing number of both customers and competitors are expected in this stage. We will try to maximize our market share by building intensive distribution. In this stage, we will reduce the promotional activities and will conduct market survey research to know consumer demand.

 

Maturity:

We expect to have our highest profit in this stage. Peak saleswill occur as a result of low cost per customer. Majority of the target consumers are expected to use our PC in this stage.Our objective will be maximizing profits while defending market share. In this stage, we will start to introduce our other brand PCs with different features. We will set the priceto match or beat competitors. Distribution strategy will be more intensive. Advertising activities will stress brand differences and benefits. Finally we will increase promotionalactivities to encourage brand switching.

Decline:

In this stage of our product life cycle, both sales and profits will be declining. Cost per customer will be low, as we will reduce our expenditures. We will also phase out weak items that are unprofitable. Price will be cut off and promotional activities will be reduced to a minimal level. In this stage, we will again go for selective distribution.

Finally, advertising activities will be reduced to level needed to retain loyal customers.

4.1 Findings

Control:

All of our administrative members are planning to measures to closely monitor quality and customer service satisfaction to achieve our goals. This planning will enable us to very quickly in correcting any problems that may occur. Other earlywarning signals that will be monitored for sings of deviation from the plan include monthly sale and Monty expenses.

Marketing Organization:

 

Based on our organizational hierarchy we have constructed a framework that will help to manage and perform the activities of our new product.

Control System Framework:

 

First we will set our central office in Dhaka. From there we will keep contact with the local representative through mobilecall, SMS and MMS. The responsibility of local representative will be to deal with the producers, send a copy of the deal tothe head office and make sure that the producers are getting the right price. The payment of purchasing sugarcane will be cleared through banks, post offices and using several technologies.

We have two different ways to carry the product toward Dhaka office-

1. By Road2. By Rail

Comparison and Contrast between Two Ways

Characteristics By Road By RailCost High LowTime Low High

 

Table 4.1 Comparisons and Contrast between by road and by rail

Whether we use By Road or By Rail we will use “Global Positioning System” (GPS). But in case of By Road we will maintain a contract with a specific petrol pump. We will receive the bill of petrol through fax, e-mail or SMS and the bill will be cleared by banks through “Electronic Data Interchange” (EDI).

The Dhaka office will contact with the warehouse through mobile. Though we are not using any distributor the retailer will collect carrot from our Dhaka office. So, we can say thatthe Dhaka office will be our “Point of Selling” (POS).

Action Programs (Final Result)

The new brands of “F & B CARE” will be introduced in July. We will make an action program for the next six months. And we believe that, if our six month action programs will run well, then we will achieve our goals easily. And we will continue our business according our cycle.

July:

As we know there is no alternative without advertising to reach the product to the customers mind. Therefore at the eve of month we will advertise to the newspapers about our new product. Our product is low involvement and buyers show habitual buying behavior therefore we will advertise on different TV channels so that we can develop unique position to the customers. Then we will collect their information of different dealers.

August:

At the beginning of the month will arrange a meeting for the suppliers, dealers and some specific customers. For advertising campaign we will go to different schools, Shoppingmalls, and parks to provide them free chips pack and we will provide them a leaflet through which they can write their opinion and they will get a coupon so that on their first timepurchase they will get Tk. 2 discount and they will leave the leaflet to the retailer and we will collect it.

September:

Getting experience from the meet will apply some initiatives and at this month we will advertise of our new product in the Television, Radio, Bill Board, Banners, and in the Poster. Then we will launch our product in to the market. In the primary stage we will produce small, and medium.

October:

After doing our successful operations of three month, at the forth month we give extra benefits to the dealers and sellers to improve our sales. We will start TV show (Live program) andto add experience we the product will have a tin number by doing sms (short text message) the consumer can meet celebrityof this program and if he or she is selected through lottery then we will make him or her as a model as like as Nobel, Opi Karim etc, whom he/she likes. This experience will attract ourpotential customers.

November:

Observing the situations, at this stage we will produce large packet for the couple. And this month our product will be available in almost every shop within the country.

December:

Observing and analyzing we take necessary actions to develop product sales and increase our profit. We can easily understand the marketing position of our product. If we learn that our condition is suitable then we will make divisional dealers to distribute to the whole country. Side by side we take control over it in necessary. In this way we will continue our production and give a particular image to the mind of every customer.

After performing marketing plan company will reach this position, when it capturing about 60% market share.

     Sales Forecast :(imagine)

 

 

Year 2010   2011 2012Total Sales                 (Tk.)

85,00,000 95,00,000 145,00,000

Year 2009 2010 2011Direct Cost of Sales  (Tk.) 67,00,000 76,00,000 93,00,000

 

Finally, this company will develop its capital by distributingthe share of this company.

4.2 Recommendation

In here it is only say that if this company continues its marketing through a proper way or plan with quality products and also working to develop for existing & new coming product then this company will be a famous as a world recognized cosmetics company in the world.

4.3 Conclusion

In conclusion we can see that, the product the company is going to launch has a bright future in its market. As the product is innovative, the consumers are going to appreciate it. And according to the R&D (Research and Development) department this product will be a strong product mix for our company. And once our “F & B CARE” will reach to the hand of our targeted customers we will be able to capture the market. That’s why we can say that GEB Cosmetics Ltd will be a new generation company. That is coming soon in the market.