Case Study on Market Planning Launch of a new toilet soap Alpha by ABC Ltd.

ABC Ltd is a successful shampoo selling company in South & East of India It now wants to launch a toilet soap Alpha in the same region Current sales 100 million, Gross Margin 18.4%; Net Profit 4.4% Margins have been almost same for 5 years

Market Situation toilet soap market is 5.5.tons; three segments Low priced segment like Lifebuoy, Nirma bath; Medium priced segment like Jai, Breeze, Hamam and Premium process segment like Dove, Pears, Mysore Sandal. Medium segment growing at the expense of low priced segment Competition Mainly HUL (50% share) can use profits from existing brands to launch new stream; and Nirma (stiff fighter), Godrej, Wipro, Reckitt & Coleman Distribution situation estimated 9 million retail outlets in the country across 600000 villages; only HUL and ITC kind companies have been able to access such a large spread and made a name for themselves; Nirma is strong on Wholesale level; it pays handsome margins and retains loyalty; - So ABC Ltd. to review how many retail outlets does it aim, what margins and special schemes SWOT companys branding; good reputation; good launch of its shampoo earlier are its strengths. Limited resource is its greatest weakness. Shift from low priced segment to medium segment in the market is the opportunity; growing acceptance of Nirma Brand is the threat Should the launch be first in South and then in East due to limited resource Given the success of shampoo should it be same name or a new name Objectives Break even in 3 years Sales Rs 20 million year 1; Rs 80 million. year 2 & Rs. 120 million year 3 Retail outlets spread 300000 in year 1, 900000 year 2 and 1500000 year 3 Market Strategy Middle income could target teenagers, students and entry level executives Positioning romantic / rugged for students; self confidence / daylong freshness for executives Product line lavender with fragnance; cologne with ruggedness

Price which segment?? Medium because it is growing Distribution to important consumption centers in south and east Sales force to be increased marginally or not?? Promotion 60% on dealer promotion schemes and balance on consumer promotion schemes which is usually expensive Advertising 60% to unconventional & creative options (balloons, truck backs, bus ticktes, ) and balance in TV and other media source

Action Plan / Programme Qtr 1 60% advertising spending on unconventional and creative options 100000 retail outlets that stocks its shampoo as well Qtr 2 Double the retail outlets; Target non shampoo stacking outlets also Sales target Rs 10 million; Display money and stock incentives to retailers with over run Qtr 3 Retail outlets reach 300000 20 - 30% promotional spend should be in this quarter That will be target incremental audience Qtr 4 Consolidate retail outlets position in the market Review strategy used with results