CLEAR HANDS

INTRODUCTION

LIQUID SOAP MANUFACTURING

Unlike cold process soap, it is ready to use immediately after the process is complete. Our liquid soap is made via hot process. This method completes the saponification very quickly. If you have cold process soapmaking experience, so much the better! We use potassium hydroxide to saponify the oils in liquid soapmaking. In bar soapmaking we use sodium hydroxide. The potassium hydroxide molecules are larger than the sodium hydroxide molecules. It is this size difference that enables the potassium hydroxide to maintain a liquid state. Safety rules in liquid soapmaking are the same as in cold process soapmaking. When your soap is cooking, it will still be very caustic and sticky, especially at the beginning. Putting required amount of distilled water into soap pot. Then adding potassium hydroxide since it generates more heat than sodium hydroxide, it is important to insulate the bottom of the soap pot. The water will approach boiling. Then we prepare the oils. In liquid soapmaking, we blend the soap base well beyond trace. As the cooking progresses, the free oils will absorb into the soap mass. As the soap cooks, it will convert to gel phase. It usually takes 4-8 hours of cooking to finish the soap.

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MARKET ANALYSIS
For market analysis we used porter model a tool to get directions for the right actions, as Porter model is one, the which market

describes

about

analysis on the basis of the predetermined factors. The

analysis is given as below: Industry Competitors

On the basis of this variable we identified that in the field of making such an item, we only have one local player, which is fierce competition as many of the other imported hand wash are already operating in the market.

New Entrants

By analyzing the market on the basis of this variable we identified the fact that one of the biggest operator of soap is already there in the market and we hope after entering in the market with such a product with we will provide a great USP. The problem that we

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CLEAR HANDS identified is that there are so many rivals which are not only threat to us but they are sharing the profit margin as well as market share in which we are going to operate.

Suppliers

The strategy that we are interested in supplying of the product is that we will be going to engage a big distributor operating in the local market with us in the initial stages while doing that on the other end we will strive to develop our own Supplier force in the form of riders. The thing that we recognized during the planning stage while keeping in view the real scenario that is being took by the help of survey is that new entrants in such a market can be successful if there is a strong distribution channel is working behind them.

Substitutes

While surveying the market we observed that many products are already with the exact alternative of the offerings. By surveying we also found that we also have mild products present in the market, which will be giving us competition when we will in the battle field.

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CLEAR HANDS

COMPETITORS ANALYSIS

With the help of the basic research we found that our major competitor in launching our liquid soap is:

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COMPETITORS ASSESSMENT

Dominant Strong

Competitor

Favorable

Tenable

WE are here

Weak

Nonviable

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SWOT ANALYSIS
Strengths

Unique Selling Proposition: In comparison to the competitor we are offering more flavors and premium quality with the same prices.

Brand Name: Clear Hands has its brand name. Its fragrance and its easy name will make it more famous in its target market.

Ingredients used: The ingredients used are from the nature like Sunflower Oil, Coconut oil,
Potassium hydroxide, distilled water, boric acid, fragrance, etc.

Hygienic Environment: Clear Hands is produced in a hygienic environment, which is necessary part for the society and to meet the customers expectations.

Quality standards: Clear Hands maintain premium quality and high standards in order to compete with the competitors providing international level of product (e.g.: Lifebuoy).

Equipped with latest in-house lab: To get the best possible results Clear Hands has the best-equipped lab ensuring the high quality assurance and standards.

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CLEAR HANDS Strong distribution network: Clear Hands has a strong distribution network by a contact with the dealer to deliver goods on time.

Weaknesses

Price fluctuations: The fluctuations in the prices of some of the ingredients may vary price, which may affect our profits.

More cost due to oil outsourcing: For hygiene purpose we use the finest quality oils which increases its costs because we believe in best quality and not in massive profits.

Opportunities

Rich in Quality and quantity: We provide the best quality and more quantity in comparison to our competitors

Diseases: In Pakistan, a large number of children are also affected by some of fatal disease like diaorrea every year. Its been estimated that if everyone washed their hands properly at key times during the day, up to half of all childhood deaths from diseases could be avoided. Product Variants: with the passage of time we will make it possible to introduce new range in our products.

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CLEAR HANDS Technological Aspect: with the adaption of newer technology we will try to beat the competitors and try to capture the lions share in the market.

Threats

Increase in cost of ingredients: Due to the rise in the oil prices, the profits can decrease. For that we have planned to make a database of suppliers to keep fluent supply of the raw material in the bad times and the other thing is we do believe in economies of scale so we will try to be best in buying the raw material.

Competitor launch same product: if a competitor or leader launches the same product with more quantity Clear Hands has the threat of sharing the market but for that we have planned that with that time of rivalry we can put our prices little bit down to give tough competition to the opponents.

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CLEAR HANDS

MARKET SEGMENTATION Office Buildings

Office building restrooms are becoming more, hygienic and more user-friendly. Our products increase the satisfaction of restroom patrons, which is a key component of tenant retention. In addition, our washroom products: Enhance your buildings overall image Lower cost-in-use Offer environmental benefits Improve labor productivity Tenants and employees will appreciate a more hygienic washroom. We can lead the way in providing innovative hygiene solutions for the washroom.

Educational Facilities
From primary to higher education, our product combine reliability, performance and innovation to meet the hygiene needs of educational facilities. Our innovative hygiene products help prevent the spread of disease and reduce absenteeism in your facility. Our washroom products: Control costs Make restrooms easier to clean Improve labor productivity Provide environmental benefits Faculty/staff members and the student body will appreciate a cleaner washroom.

High-Volume Public Facilities

Our product creates a positive experience for your patrons while moving them through the washrooms quickly and safely. Our products minimize delays, your washrooms are cleaner to the senses and the image of your facility is enhanced. Our products also provide:

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Lower cost-in-use Improved labor productivity Environmental benefits Patrons will appreciate a more hygienic washroom, and youll benefit from an enhanced image.

Home
Every family requires a clean and healthy environment for their family members. Our product provides a positive experience of experiencing hygiene in the family.

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CLEAR HANDS

PRICING STRATEGIES
Procedure of price setting
Clear Hands has to consider many factors in setting its pricing policy.

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CLEAR HANDS

PRODUCT/OFFERING
Product Name Clear Hands

Product flavors

Coconut, Strawberry & Lemon

Product Color

Transparent Bottle with color of the flavor

New Weight

250 ml

Product Price

Rs. 95 per unit

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PRODUCTS UNIQUE SELLING PROPOSITION

USP of the offering is the net weight, which is almost double in comparison to the other opponent products in the given prices of 95 rupees per unit.

PACKAGING
The root causes of choosing such colors and product of the packaging are

The colors of the products are eye catching which will attract the customers and help in selling the product.

BRAND NAME
The causes of choosing such a brand name are Its easy to pronounce Its very easy to remember Its attractive Its reflects back the quality of the product (Hygiene)

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PRICING OF PRODUCT
Selecting the pricing objectives
The pricing strategies followed by Clear Hands are

Product Quality Leadership:

Clear Hands aims to be the product quality leader in the market by providing premium quality at standard or market price.

Market share maximization

Clear Hands with the USP of more quantity with equivalent price can boost the sale and will increase the market share against competitors.

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Analyzing Competitors Price

Within the range of possible prices determined by market demand and cost, competitors cost, prices, and possible price reaction help the firm establish where to set its prices. The company needs to benchmark its cost against its competitors cost to learn whether it is operating at a cost advantage or disadvantage. The company also needs to learn the prices and quality of competitors offers. Once the company is aware of the competitors prices and offers, it can use them as an orienting point for its own pricing.

To have an idea about the situations that our competitors are facing about the pricing of product we conducted a survey and identified some of the facts that are being given below in the tabulation form.

Product Name Lifebuoy

Retail Price Rs.99.50/-

Buying Price Rs.100/-

Net Weight 200ml

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Selecting Pricing Method

Giving the three Cs the customer demand schedule, the cost function, and competitors prices the company is now ready to select a price.

Clear Hands resolves the pricing issue by selecting a pricing method that includes one or more of these three considerations. The pricing method will then lead to a specific price.

Going rate pricing Method In going rate pricing, the firm pays less attention to its costs or demand and basis its price largely on competitors prices.

Clear Hands is implementing going rate pricing method by Charging almost the same as competitors. Giving them more value on the same price.

Selecting Final Price In selecting the final price, the company must consider additional factors, including

The influence of other marketing mix elements on price. Company pricing policies. The impact of price on other parties.

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CLEAR HANDS

PROMOTIONAL STRATEGIES

There are 5Ms of Advertising. Clear Hands can be placed in these following 5 Ms

Mission Clear Hands Advertising mission is to provide information about awareness of hygiene and best quality that can be provided in the same prices to its customers by different advertising channels and from different advertising campaigns. Money For advertising Clear Hands has set a range of budget i.e. Rs.15,00,000 for starting 6 months for different advertising campaigns. Message By launching Clear Hands customers have the benefits of having the exclusive product with in no time. Media Clear Hands will advertise through different media channels like, Newspapers Billboards and Banners TV Ads (through the TV/Cable Advertisement) Radio & outdoors selling.

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CLEAR HANDS

Measurement Clear Hands will conduct a post research from different Sale Points (survey from wholesalers, retailers, and direct from customers) to grip the feed back and analyze that with the help of which current and future planning will be done.

Promotion Tools
Clear Hands has set a promotional budget for advertising its product for six months i.e Rs.15,00, 000.

Billboard Advertisement

There will be only 6 billboards in the city on different locations, which are

North Nazimabad Korangi crossing Shahrah-e-Faisal Clifton Gulistan-e-Jauhar Gulshan-e-Iqbal Hamdard University Page 18

CLEAR HANDS

Television Advertisement

Promotional advertisement will be aired through different Cable operators for that we have been given a cost which is described in estimated cost section .

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CHANNELS OF DISTRIBUTION

We believe in extensive distribution of the product because our aim is to deliver value to every corner of the targeted market. To achieve this goal we have designed the strategy as follows 1) Initially we will outsource the delivery channel which will be a known and one of the biggest distribution channels of the local market. 2) On the other hand we will try to develop our own distribution team which will consist of the riders and secondly we will try to add loading carts to our distribution channel later

Initially Clear Hands will be distributed through 2 different channels of distribution which that are shown as follows

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CLEAR HANDS

Manufacturer

Wholesalers Retailers

Retailers

Final Consumers

Mode of Distribution

Safeguard also uses trucks to deliver goods in Karachi. Clear Hands will use Safeguard trucks to deliver and distribute our products.

Distribution Objectives
Cost Minimization

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CLEAR HANDS In order to minimize the cost of distribution, we will try to develop own distribution workforce in later phase. In some cities, we will only distribute to the wholesalers.

Distribution Scope
Selective Distribution Selected outlets of Karachi initially Super Store, Super Market Big General Store/outlets, wholesalers of Karachi Only. Clifton, Defense, KDA, North Nazimabad, Garden, Gulshan-E-Iqbal, PECHS. If successful then we will introduce in all major cities of Pakistan and also go for export.

RECOMMENDATIONS

1. The Advertising budget is too low. The budget for the advertising should increase with increment of Sales.

2. Events sponsorships should be aligned with the image of the brand and the value proposition. Clear Hands should concentrate on programs like Expo Centres show or other competitions to increase the awareness among the people.

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CLEAR HANDS 3. Introductory prices should be used for Limited Time Offers.

4. Since the number of billboards are very limited. The company can attempt to increase this figure by using more hoardings that are product oriented. This step can have a very positive affect on sales for our product.

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