MARKETING MANAGEMENT &
COMMUNICATION PROJECT
NAME OF THE COMPANY
HERBAL HAIR
STYLING GEL
“add style to your life naturally”
EXECUTIVE SUMMARY
Herbal gel introduced by Head & Shoulders is a hairstyling product that is used to stiffen hair
into a particular hairstyle. Herbal gel is different from other hair styling gel as it does not contain
alcohol and plastic like other hair styling gels available in the market. This styling product helps
to maintain the moisture in hair which is necessary for the better growth of hairs.
MISSION:
To become a household hair care name that is sought after by consumers to manage and maintain
their hair so that it is healthy, shiny and easy to comb into today’s fashion styles.
VISION:
Our vision is to be the market leader in terms of market share within 5 years in men’s hair care
segment.
SITUATION ANALYSIS
COMMUNICATION STRATEGY:
Online Marketing and Direct Marketing
Event- Press Conference
Public Relation- Press Release
Advertising
Print Ad in Newspapers and Magazines
Electronic Ad in Cast Media
Hoardings
CUSTOMER STRATEGY:
Customers are differentiated on the basis of performance quality. This styling product
helps to maintain the moisture in your hair which is necessary for their better growth.
No artificial ingredients
100% natural
Certified organic Aloe Vera as the number one ingredient
Contains no parabens, chemical additives, or synthetic preservatives.
CHANNEL STRATEGY:
PHASE 1- Small tubes and Standard tubes will be introduced to gain benefit and market
share.
Area of Distribution: 8 cities- Delhi, Mumbai, Kolkata, Chennai, Bangalore, Ahmedabad,
Chandigarh and Lucknow
PHASE 2- Large tubes will be introduced to build credibility of product in the market.
Area of Distribution: Above cities and Tier 2 cities like Jaipur, Agra, Amritsar, etc.
PHASE 3- Sachet will be introduced to cater new segment of market.
Area of Distribution: Distribution in 3 Tier cities like Patna, Varanasi, Jamshedpur, etc
COST STRATEGY:
Product Cost for the company is 40paise/gm
Sachet (3gm)- Rs.2/-(1gm=66paise)- Sachet Pack
15gm tube- Rs.10/-(1gm=66paise)- Small Tubes
60gm tube- Rs.36/-(1gm=60paise)- Standard Tubes
150gm tube- Rs.90/-(1gm=60paise)- Large Tubes
*Selling Sachet and small tubes will be most beneficial for the company.
Packaging Quantity Price/gm Cost/unit Promotion Total Net Our
With all (In Rs.) Expenses (In Profit selling
expenses (In @25% (In Rs.) price
Rs.) Rs.)
Sachet 3gm 0.40p/gm 1.2 0.3 1.5 33%- Rs.2
0.5p
Small tube 15gm 0.40p/gm 6 1.5 7.5 33%- Rs.10
Rs.2.5
Standard 60gm 0.40p/gm 24 6 30 20%- Rs.36
tube Rs.6
Large tube 150gm 0.40p/gm 60 15 75 20%- Rs.90
Rs.15
SWOT ANALYSIS
STRENGTHS:
Herbal Product
Brand Image
Dedicated employees
Distribution
Capital availability
WEAKNESS:
New product
Market share
OPPORTUNITIES:
Huge market
Changing taste and preference
THREATS:
Competition
Market Condition
OBJECTIVES
The main objective of introducing Herbal Hair styling Gel is to make styling gel available which
contains no artificial contents or chemicals that are very harmful for the product. This herbal gel
is introduced with the aim of making styling gel available so that people do not hesitate to use
such products for their hair and can style their hair in whichever way they want to. The objective
of the company is to capture a large share in the styling gel market. Its objective is to stay in the
market for as long as possible and to make a handsome amount of money so that it can pay back
to its investors and keep its investors happier.
The point where company will have no profit and no loss, that point is termed as breakeven point
which is explained below.
ROUGH BREAK EVEN ANALYSIS
For our product if we take a sachet pack of 3gm and sell 10packs and one pack costing Rs.1.5
then we must sell them at least Rs.15 in order to cover our fixed and variable cost. And this point
at which our cost will match the income will be breakeven point. So the company will have to
sell the product at more than breakeven price in order to earn profit from the product.
SEGMENTATION, TARGETING AND
POSITIONING
SEGMENTATION:
GEOGRAPHIC: Mumbai, Kolkata, Chennai, Bangalore, Ahmedabad, Chandigarh and Lucknow
DEMOGRAPHIC:
Age- 16 to 30 years
Gender- Male
Education- Higher Secondary to Post Graduate
Family Size- Single, Married without Children
Socio Economic Class- Upper Middle and Middle Class
PSYCHOGRAPHIC:
Lifestyle- Enjoys music, movies, parties and other such activities
BEHAVIOUR:
Occasion- Regular
Benefits- Herbal, hence no damage to hair
TARGETING:
Target Audience- Male youth of urban cities who belongs to upper middle and middle class of
society and who enjoys parties and other such lifestyle activities.
POSITIONING:
“An herbal hair styling gel which holds your hair as you want”
On the basis of benefit- Herbal Product
MARKETING STRATEGY
Marketing Strategy of Herbal Hair Styling Gel will cover all four stages of product cycle. It
starts with Introduction, Growth, Maturity and finally Decline. The product life cycle goes
through multiple phases, involves many professional disciplines, and requires many skills, tools
and processes. Product life cycle (PLC) has to do with the life of a product in the market with
respect to business/commercial costs and sales measures. To say that a product has a life cycle is
to assert four things:
That products have a limited life,
Product sales pass through distinct stages, each posing different challenges, opportunities,
and problems to the seller,
Profits rise and fall at different stages of product life cycle, and
Products require different marketing, financial, manufacturing, purchasing, and human
resource strategies in each life cycle stage.
Below explained is the expected life cycle for our product.
INTRODUCTION:
This is the initial stage in product life cycle. In this stage we will start by introducing our product
in the market with lot of helpful tools. We will create awareness of the product in the market and
conduct trials by distributing various sample packs. At this stage cost of the product will be
relatively higher and on the other hand sales volume will relatively be lower. We will try to
create demand for the product and there will be very less or may be no competition at all. We
will try to prompt customers to try the product. But we will make less money in this stage. Our
main objective in this stage will remain promoting the product in the market.
GROWTH:
At this stage we will look forward for growth of our product. For this purpose we will try to
spend high on advertising, etc. Our aim will be increasing competition in the market with the
help of our product. At this stage we will reduce the cost with the help of economies of scale.
The sales volume for Herbal Gel would increase significantly and the profitability will be higher.
We will increase the awareness of our product in public. Competition will start increasing with
being in the establishing market. And finally with the increased competition we will reduce the
price of our product in the market.
MATURITY:
At this stage our objective will be to sustain in the market and increase our market share and this
will be done with the help of sales promotion for which we will use greater variety of media.
Costs for the product will significantly lower as a result of increase in volume of production in
turn experiencing curve effects and with this the sales volume for our product will be at peak
where market saturation is reached. And at this point of time we will find more competitors
entering in the market and increasing competition. The price of the product will drop due to
proliferation of competing products. We will emphasize on brand differentiation and feature
diversification in order to maintain and increase market share. And at this stage there is a
probability of industrial profits going down.
DECLINE:
At this stage we will try to retain the product at reduced costs. We will try promoting the product
by showing price cut and cost cutting. Costs at this stage become counter-optimal. And at this
stage our sales volume will start declining or stabilizing. Slowly both price of the product and
profitability will start diminishing. And at this point of time profit will become more a challenge
of production/distribution efficiency than increased sales.
REVIEW AND CONTROL
After the customers try our product we will collect reviews of the customers. The method for
collection of reviews and feedback from them will be in various forms like questionnaire,
surveys, emails, blogs, etc. We will try to contact as many customers as possible. The main aim
of collecting reviews and feedback will be to analyze whether to further proceed with the
production of product or not and in what amount to proceed with the production.
For the purpose of control, we will establish a control committee which will look at each and
every aspect of the product. This committee will control the production, sell, etc. for the product.
This committee will establish a performance standard for the product and try to match actual
performance with this performance standard by removing any deviation between two.
CONTINGENCY PLAN
In order to avoid any risk relating to the product we will also have a contingency plan for the
product in addition to our primary plan. This contingency plan will include steps like distributing
sample packs of the products before starting with the main production. Initially the production ill
be very less so that if the product does not work, there is minimal loss to the company. We will
allocate many staffs in various markets so that we get regular feedback of the condition of
product in the market and that we can prepare for any contingency from the initial stage itself.
The main contingency for any product is that it gets flop in the market so in order to deal with
this situation we will initially introduce only a limited edition of the product and if the product is
a hit i.e. it is doing well in the market then we will start with its regular production and make it
available permanently or for a long period in the market.
VISUAL DISPLAY OF THE PRODUCT
