imc sparsh- integrated marketing communication

7/23/2019 IMC Sparsh- Integrated Marketing Communication

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INTEGRATED MARKETING COMMUNICATION

ASSIGNMENT

Department of Marketing, Xavier Institute of Social Service, Ranchi

SUBMITTED TO

PROF. PINAKI GHOSH

SUBMITTED BY

Akhilesh Mishra (Roll no. 6)

Anumita Dash (Roll no. 46)



INTRODUCTION

The soap industry in India is at the high growth rate and many new entrants are

planning to launch their product in this category. The overall soap industry is

worth 60,000 crores. Prakriti Organics is a startup and targets at entire family

with their various organic soaps.

Tactical marketing tools, 4Ps, will be extensively used by our company to market

the products. The products are produced in India. There are 4 varieties of soap

based on skin type – dry skin, normal skin, oily skin and for babies. Since the

demand for soap market is to a great extent oligopolistic, variations in price lead

to price war which can eventually break down the company‘s market share. Thus

Prakriti Organics cannot provide a better price than its competitors. But the price

is affordable by most of the people. Prakriti Organics will outsource its

distribution channel to third party distributors which allow them to distribute

product in massive bulks amounting to around Twelve thousand pieces. It

undertakes one of the largest promotional activities in the herbal soap industry.

The soap industry has a few major producers of which Hindustan Unilever holdsmarket share of 70%. Other competing brands like Godrej, P&G and Johnson &

Johnson have started to have a strong consumer base, but Prakriti Organics’

product features, distribution and promotional activities will create high brand

loyalty for which it will be a strong market share soon after developing its IMC

plan. Prakriti Organics, with the aid of its heavy promotional activities and

unique feature of being herbal, will be able to penetrate the market. But other

producers in the industry are posing a threat towards Prakriti Organics market

share as they have moved towards the rural masses of the population. Prakriti

Organics is adopting niche marketing as we aim to target a particular segment

and gain their loyalty.



OBJECTIVE OF THE COMPANY

To assess the current environment of organic industry and to determine the rightmarketing schemes in order for the business project to be profitable and

successful.

VISION

Being the benchmark of excellence in producing high-quality organic soaps.

MISSION

To produce organic soaps that are well-formulated, checked and tested.

The organic soaps must be really effective relative to what is being said on

its label.

The main objective of our company is to produce soaps that are not only

used for cleansing the skin but also for absorbing all the impurities

embedded in it.

Give the customers a perception of smoothness, calmness and relaxation,

which is what they will feel after they apply the product.

To establish the image of a health and wellness and environment-friendly

company.

CURRENT SCENARIO OF MARKET

Presently, Indian organic farming market is estimated at ₹ 2,500 crore.

With a steady annual growth of 40% on rising population, higher

disposable incomes and rising health consciousness, India's organic



farming industry is set to grow to ₹ 10,000 crore, according to Associated

Chambers of Commerce and Industry of India. (ASSOCHAM)

It has been a part of human nature to prefer healthier products with lesser

preservatives and synthetic materials added. Organic farming can create millions of jobs in the agricultural sector as

it can spur over 30 per cent of employment per hectare as against non-

organic farming and this ratio can further increase if on-farm processing,

value addition, packaging and direct marketing are considered, says an

independent research of ASSOCHAM.

SIZE OF THE INDUSTRY

The Indian Soap Industry includes about 700 companies with combined annual

revenue of about $17 billion. Major companies in this industry include divisions

of P&G, Unilever, and Dial. The Indian Soap Industry is highly concentrated with

the top 50 companies holding almost 90% of the market. The market size of

global soap and detergent market size was estimated to be around 31M tonne in

2004, which is estimated to grow to 33M tonne in the coming years. Toilet soaps

account for more than 10% of the total market of soap and detergents. In Asia, the

countries like China and India are showing rapid growth in the toilet soap

section. Market share of body wash was estimated to be around 2% in 2004 and

is showing signs of healthy growth in these markets. India's soap market is ₹

41.75 billion.

Indian Soap Industry volume is ₹ 4,800-crore. For the purpose of gaining a

competitive edge, Indian companies are now re-launching their brands with

value-additions to attract the consumers to purchase their products across India.



MARKET TRENDS

Worldwide compound annual growth rate (CAGR) in 2005-2008 was

observed as 2%.

The forecast for 2010-2015, the soap production would increase especially

in the US (First Research, 2008).

The growth will also happen in Asia with a total of 50% of the global

demand. South-East Asia has a huge potential to grow further.

In South Asian countries, 4.2% CAGR was recorded between 2004 and

2009.

MARKET CAPITALIZATION

Today in the Indian economy the popular segments are 4/5ths of the entire soaps

market. The penetration level of toilet soaps is 88.6%. In India, available stores of

soaps are five million retail stores, out of which, 3.75 million retail stores are in

the rural areas. 70% of India's population resides in the rural areas and around

50% of the soaps are sold in the rural markets.

COMPETITORS

Major Competitors:

HUL

P&G Godrej India

Johnson & Johnson

Patanjali

Fiama d wills



SWOT ANALYSIS

Strengths Weaknesses

Herbal so skin friendl y The product is not widely known to

all consumers

Available for all skin ty pes A lot of substitute products

No age restriction Limited penetration in rural market

Absence of harmful chemicals

like Triclosan

Resistance by those who fear usingorganic products

Opportunities hre ts

High CAGR of soap mark et New Entrants

Growing consumer markets for

improved and alluring soaps

Local competition

Top choice among organic soaps Competition from already existing

medication and organic soaps

PRODUCT CATEGORY MARKET SEGMENTATION TARGET MARKETING AND

POSITIONING

PRODUCT CATEGORY

SPARSH falls under the category of toiletry product as an organic soap.



MARKET SEGMENTATION

According to

• Age

• Gender

• Income levels

• Frequency of purchase

• Skin type

• Geographical location

TARGET MARKET & PLACEMENT

Urban and suburban upper and upper middle class who are conscious about

their skin are the major target of our products. Diverse products are provided for

all skin types. Soap products are specialized into cleansing, moisturizing,

scenting, antibacterial and whitening. The main target market would be

customers who value attributes like natural constituents, healthy lifestyle, better

skin texture, etc. Trying to access every geographical market simultaneously

would lead to unbearable logistics costs. Hence, business development will be

done in stages, targeting regions offering better connectivity with accessible

markets first, and then moving out into other territories in later stages.

It can be observed that there isn’t a huge bias in terms of gender basedpreferences in usage pattern. However the major user group is in the age group

of 12-30 years, with substantial chunk aged 40 years or less. However, Organic

soaps have qualities which are not necessarily changed based on age, and hence



the market is consumer of varying ages, but as the major self-sufficient user, 20-

40 age group should be the prime target segment.

SPARSH is not a highly expensive but an affordable product. That is why the

company targets urban and sub urban upper middle and middle class people who

are the second highest population of segment of the country. From the

segmentation of customer according to SEC we will target category A, B and C,

because they are assumed to be financially well-off and can afford to buy

SPARSH. Socio-Economic Cluster (SEC) which takes into account the criteria of

education and profession which ultimately measures the financial ability of

consumers.PRODUCT POSITIONING

SPARSH will try to obtain a good position in the buyer’s mind through better

product attributes, price and quality, offering the product in a different way than

the competitors do. The company offers improved quality of products in the

industry at an affordable price with high branding, which ultimately helps to

position the product in the buyer’s mind as the best quality organic soap.

Sparsh will try to make a distinguished image in the market through its

packaging, fragrances and product designing and its medicinal properties.

TACTICAL MARKETING TOOLS

Product: SPARSH will be launched nationally as branded organic soap.

Though manufactured in India for its urban & suburban markets, the

quality of product will be at par with international standards. It will

maintain an international quality for the product. Formula given by

Research and Development departments in foreign countries, SPARSH will

be produced in India from national as well as imported raw materials like

Saponified Organic Oils of Palm, Coconut, Olive and Palm Kernel.



Common Elements are Saponified Organic Oils of Palm, Coconut, Olive and

Palm Kernel.

Differentiating Elements are-

Aloe Baby Soap: Natural Lavender Essential Oil Blend, OrganicLavender Oil, Organic Aloe Vera, Organic Rosemary Extract.

Dry Skin Products: Unscented Cocoa Butter, Organic Cocoa Butter,

Organic Powdered Oatmeal, Organic Aloe Vera, Organic Rosemary

Extract.

Oatmeal Lavender: Natural Lavender Essential Oil Blend, Organic

Lavender Oil, Organic Oatmeal, Organic Rosemary Extract.

Oily Skin Products: Balsam Pine, Balsam Essential Oil Blend, Organic

Rosemary Extract, Mineral Pigment.

Natural Skin Products: Woodspice Natural, Woodspice Essential Oil

Blend, Organic Cinnamon, Organic Rosemary Extract.

Rosemary Herb: Natural Rosemary Essential Oil Blend, Organic

Rosemary Herb, Organic Rosemary Extract.

Taking into account the convenience of its customers, the company manufacturesall flavors of SPARSH in three different sizes, 40gm, 80gm and 120gm.

Price: Though SPARSH gives its customers a lot in terms of the product

itself, it will provide a better pricing in terms of competition. This is due to

competition with the beauty soap industry. Beauty soap is a product with a

high demand. Its prices are almost equal to its competitor. Company will

carry out research on competitor’s price and brand loyalty when it will feel

extreme necessity of changing price.

Organic soaps will definitely have a comparatively higher cost than the

cosmetic and beauty soaps.



Place: We will have intensive distribution of our product to be able to make

our products available at maximum number of shops and retail stores.

Prakriti Organics will tie up with logistics & distribution companies fordistribution of SPARSH all over the country. The company will start with

six warehouses, one in each regions of country, where the product goes

after they are manufactured centrally.

The company will not use its own fleet of transport for distributing its product.

However, it will outsourced its distribution process to various third party

distributors, exclusively dedicated to the industry. These distributors will supplythe product all over India to a huge number of retailers. Even though SPARSH

targets the urban and sub urban middle and upper middle class people we will be

distributing the products all over country’s major cities because of a recent

increase in demand of product category to all segments of the population.

Promotion: Sparsh will undertake promotional activities to promoteSPARSH which is going to enter the Organic soap industry of India.

Celebrity endorsement portraying the medicinal and natural benefits of

product will be used as an effective tool for promotion.

Prakriti Organics will spend an amount of money for promoting SPARSH

through TV commercials, newspaper advertisements and billboards.

Moreover we will also undertake small promotional campaigns at different

schools, colleges, universities and recreational parks with winners of its

Beauty Contests. Promotional activities of SPARSH will be successful as it

has made it a household common name and helped consumers to connect

to it.



INTEGRATED MARKETING COMMUNICATION

The main objective of our IMC plan shall be to create awareness about our range

of products through various media and will try to project the differentiation

between the cosmetic soaps and our organic soaps. The benefits will also be

highlighted.

Celebrity Endorsement: The Indian consumers are highly influenced by the

promotional activities carried out by celebrities. Promotional activities will

be carried out by celebrities portraying the natural and medicinal values of

the organic soap. Since our product is not gender specific so we will run

advertisements having both an influential actor and an actress.The differentiation between the organic soap and other soaps and its

benefits will be the main emphasis of the promotion.

Sales Promotion: Sales promotion, a key ingredient in marketing

campaigns, consists of a collection of incentive tools, mostly short term,

designed to stimulate quicker or greater purchase of particular products or

services by consumers or the trade. Whereas advertising offers a reason to

buy, sales promotion offers an incentive to buy.

Prominent Sales Promotion Schemes to be used by SPARSH

Sparsh will provide free medicinal Spa services to 10 lucky

customers every month. With every soap, a scratch coupon will be

provided which may let them to win the spa services.

‘Sparsh Star Bano, Aish Karo’ Contest: All one would need to do isbuy a special promotional pack of Sparsh soap. The pack comes with

a special scratch card. The 50 lucky winners will get an opportunity

where his/her picture may be displayed in next month’s pack of the

soap.



All wrappers of Sparsh will have a star printed inside them. If the

consumer found written inside the star, any number from ―1 to

―5, he/she would get an equivalent discount (in rupees) on her

purchase from shopkeeper. Online contests: Example, Please enter your name and email to play

the game. Play the supercharged version of the hit puzzle game,

Bejeweled. Create rows of 3 or more identical stones and you could

win a trip for two to a five-star Resort in Goa.

Public Relations: Not only must the company relate constructively to

customers, suppliers and dealers, it must also relate to a large number of

interested publics. A public is any group that has an actual or potential

interest in or impact on a company’s ability to achieve its objectives. PR

involves a variety of programs designed to promote or protect a company‘s

image. SPARSH PR Activities:

Press relations: Sparsh will be maintaining constant communicating

with its customers and potential customers, of the various

developments taking place in the brand by using press relations. Events: Sparsh can also establish PR by sponsoring some of the

cultural activities and beauty contests in colleges of important cities

and towns.

Limited edition: Coming up with limited edition of the brand is also a way

of attracting attention towards the brand. It creates a buzz and a feeling of

urgency to try out the product and helps in promotion of the brand. This

strategy can also be implemented by Sparsh by bringing out limited

editions in future. The limited edition will be decided after analyzing the

trend post Sparsh soaps are introduced in the market.

Labelling: The SPARSH Trade Character or Logo is present prominently on

the package.



Packaging: The colors are different for different variants such as saffron for

the saffron variant etc. Along with the color various images and labels

depicting the product ingredients are also shown in the package. The bars

come in package sizes of 100g, 120g and 150g. Point of Purchases: Usually the company goes for display in the stores

where it potential for its product. Different eye-catching decorations are

made inside the store and in the showcase for outside display. These

arrangements are made with the assistance of the sales people of the

company.

Advertisements: The message that the product reflects in its advertisements

is the one that is usually narrated by the corporate itself. Advertising is any

paid form of non-personal presentation and promotion of ideas, goods and

services by an identified sponsor. Ads can be a cost effective way to

disseminate messages, whether to build a brand preference or to educate

people.

Through print media (newspaper/Magazine), broadcast media

(Television/Movie Halls), Display media (Billboards)

Direct marketing: Use of internet to directly contact customers through

mails and communicate about our products.

Interactive Marketing: Online activities and programs designed to create

awareness among customers. The advertisements will be shared on youtube

and other such websites. Customer engagement strategies will be applied. A

portal will be created where the customers can share their experiences

after using the soap.



WHY THE ABOVE MENTIONED STRATEGY WILL SUCCEED

The brand name SPARSH represents what we want to convey to our target

customers. Our range of organic products will enhance the skin nutrients

and will give it a natural glow. It symbolizes care and softness.

It is a consumer product. The advertisements will have adequate impact on

sales. They will help in achieving the main objective of the company which

is to create awareness. A well-known celebrity will also enhance the

credibility of the brand.

The sales promotional activities will induce the target customers to at least

try out the products. There will be online portal where the users of Sparsh soaps can share their

experiences. This will help the customers gain confidence that the

company is making efforts to pay heed to their suggestions and complaints,

if any.

Beauty contests will help to promote the brand and the products will be

distributed among the contestants. If they like the products this will create

a positive word of mouth for the brand.

Advertisements showing the benefits of using the organic soaps over the

other cosmetic soaps will help in changing the preferences of the target

customers.

Magazine advertising has a longer life and hence it will also help give

detailed advertisement about the company and the product.

imc sparsh- integrated marketing communication

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