REPORT ON MARKETING

PLAN

SUBMITTED BY: KINZA ZAHEER (170146)

FATIMA ZAHID PIRACHA (170179)

AFSAH HAFEEZ (170149)

SUBMITTED TO: MR. BASIL BAQAI

CLASS: BBA 3-C

DATE: 17-DECEMBER-2018

Lifebuoy
Marketing Management
 Table of contents
Topics Page No.
Summary 3
Introduction 4
Competitors 5
Swot Analysis 6-7
Porter five forces model 7-8
Marketing mix 8-10
Marketing strategy 10-12
Budgeting 12-13

REPORT
UNILEVER THE GLOBAL COMPANY
 BRAND: LIFEBUOY

SUMMARY:-
Unilever is a British-Dutch transnational consumer goods company co-headquartered
in London, United Kingdom and Rotterdam, Netherlands. Its products include food and
beverages (about 40 percent of its revenue), cleaning agents and personal care products. It is the
world's largest consumer goods company measured by 2012 revenue. It is Europe’s seventh most
valuable company.Unilever is one of the oldest multinational companies; its products are
available in around 190 countries.Unilever owns over 400 brand. The one of the profit generating
brand is lifebuoy.
LIFEBUOY:
“Lifebuoy aims to provide affordable and accessible hygiene solutions to enable a life free from
hygiene related worries, everywhere.”
Lifebuoy is the world’s number one selling antibacterial soap, sold in nearly 60 countries.

Brand extension:
The Brand extension includes lifebuoy’s soap, hand wash, hand sanitizer, shampoo. Lifebuoy
soap has made remarkable sales in Pakistan because of its hygienic purpose.
Market:
Lifebuoy has vast market focused on urban and rural areas. As more than half of Pakistan’s
population is middle class and have tendency to buy lifebuoy which is especially associated with
health and hygiene solution. Life buoy ha snow extend its market with its product line.
The new product that we will launch in current year will be “LIFEBUOY FACEWASH”.

Lifebuoy face wash

Lifebuoy face wash first introducing in Pakistan among a lot of competition focuses on women
face care products. Lifebuoy face claim is antiseptic, natural and skin glowing face wash. Its
break through formula is proven to reveal naturally phenomenon beneficial for skin including
neem, cammomile, alovera, and lavender with mint touch. It has natural antiseptic properties.
The smell of lavender makes the person drowsy and its scent lowers blood pressure putting
person in relaxed state. Cammomile the natural skin lighter promotes healthy glow of skin as it
heals and restores its natural moisture content whereas alovera is for skin elasticity due to age.
These all control oil appears on skin.
As most of the population of Pakistan almost of women comprise of about 55 percent with age
15-45 of females using skin care products and today’s Pakistan’s urban population is expanded
and women are aware and sensitive to their skin care. Also the rural areas women know about
their skin care at some extent. Everyone wants the best skin care products which will serve the
hygiene purpose along with beauty. Due to this need a better of all face wash is needed with
purely natural ingredients.
Lifebuoy is brand which is affordable for every class with medium price associated with hygiene
solution so, everyone can buy with good price. Mainly the population of Pakistan is middle class
and they want best price with quality and they preferred natural ingredients in every product.
Today the current market situation about skin care products is very conscious. Everyone thinks a
lot before buying a product especially women as they used product after many confirmation from
others and very conscious about face care products. Many products of skin care have chemicals
which give bad effects to skin after using several times so there should be a natural product with
long lasting effect for women.
 Competitors:-
 Ponds(Rs.140-410)
 Clean and Clear(Rs.200-400)
 Himalaya(Rs.175)
 Fair & Lovely(price at about Rs.165)
Competitors of Lifebuoy like Ponds, fair & lovely are competing at the upper (premium)
segment while Clean and Clear, Himalaya are competing at the lower segment. Besides these
there are also other small players dominating the rural market where these big players are not
able to reach.
The companies like Ponds, fair & lovely have very strong brand positioning. It will not be
that easy for Lifebuoy to enter the target market of these companies .
But since Lifebuoy is already an established brand so, it will not be that difficult for the
company to create its dominance in the lower market segment. The company can also use its
wide distribution channel to reach the market where the other players lack.
 SWOT OF LIFEBOUY FACE
Strengths:-
 Association with Unilever:- Through their successful line of hygiene products such
hand washes, shampoos etc. they already have a strong presence in the minds of
customers which they are made familiar with from a very tender age through the
advertising campaigns of lifebuoy. So this will be helpful in making sale of this new
product.
 Medicinal approach: Lifebuoy has positioned itself as a product with a medicinal
approach which could combat germs and provide a healthy disinfectant bathing soap.
 Affordable: Lifebuoy has been priced at a range in order to be affordable to all kinds of
markets especially rural markets.
 Strong Distribution: Lifebuoy has a strong distribution channel worldwide which makes
the product available in the farthest corner of various countries. Lifebuoy has made
special efforts to be present in the rural markets where the demand for the product is
really high.
 Product line Extension: Lifebuoy has been successfully able to extend its product line
by bringing out successful products like hand wash, body wash and hand sanitizer. This
has helped Lifebuoy increase its revenue
 Brand Name:- As lifebuoy already have existing brand name in Pakistan's market, this
will also help to increase customer confidence. This confidence help to increase the
number of early adopters for the new product as the already existing name have
established a confidence of the customer on the brand thus better sales opportunities.
 Long time of marketing:- To launch a product which appeals to the masses, you need a
marketing plan which has mass appeal. And lifebuoy campaigns over the years including
using strong brand ambassadors which have promoted the products and pushed the
acceptability in the market. Even point of purchase material has been used very well and
now the pull is far more then push for Lifebuoy in the market.
Weaknesses:-
● Incremental increase in costs:- One of the major problems that this brand may face is the
incremental increase over the years in costs for the brand for transportation, labor as well as
other distribution and operation costs. This naturally affects the bottom line cost and due to its
increase this may reduce the customer demand.
● Competition eroding margins:- A lot of competition means more and more price discounts
and price fights therefore resulting in lesser margins. This is an overall problem in the skin care
market.
● Rural level penetration:- The rural level penetration all hygiene products is very less because
of the lack of awareness of importance of skin care in Rural area and also because of the
comparatively higher priced products when compared to rural products.
Opportunities:-
● Increased penetration:- An increased penetration is the major challenge in front because the
brand has found increased penetration in Urban areas but poor penetration in rural. To increase
the same, it needs to improve awareness, a challenge being faced by all FMCG brands. So of we
are able to create proper awareness it would be a great sales opportunity.
● Market and Expansion potential:- Not only Pakistan FMCG market, the market expansion
potential of International markets is fantastic because hygiene care as a market is going to
expand more and more as many countries globally are improving in their economy. Where
developed markets are becoming saturated, developing economies are opportunities for
companies.
Threats:-
● Competition: - A Major threat for any hygiene care brand currently is Competition which is so
high that each of the brand has to defend its core strength and attack the others weaknesses. Also
this is field where we have strong and old competition of Clean and Clear, Himalaya anti acne
etc.
● Noise: - There is so much noise in the Skin care market that differentiation becomes really
difficult. So our new face wash have to work hard to create product differentiation.

Porter’s Five Forces Analysis of Personal Care industry

This is the Porter’s five forces analysis of Personal Care Industry in Pakistan
which is the category in which we are releasing our product in. The companies operating in the
industry having range of products from creams, lotions, makeup products to soaps, body washes,
shampoos, conditioner etc which are being commonly used by the customers. The top brand in
cosmetic and skin card industry are Procter & Gamble , L’Oreal, Unilever, Johnson & Johnson
etc.
 Competitive Rivalry = High:
The intensity of competition between the rivals in the industry is high.
Competitors include brands such as Clean and Clear, Ponds, Himalaya anti acne herbal face
wash and local companies. The number of spas is limited in Pakistan and many spas have their
own products also most women in Pakistan do go to a full edge spa and tend to care for
themselves at home. So supply is greater than the demand. Another thing is that the level of
differentiation is not very high or low. There are negligible differences amongst products of
different brands. The exit barriers are also high as its not very easy to pack up a big
manufacturing factory.
 Threat of New Entrants = High:
Personal care is competitive industry and thus attracts new
entrants which striving to capture market share thus threatening our market share. This leads to
drop in the profitability of the existing companies as the customer get dispersed. Even though
there are a number of entry barriers in this industry such as the high economies of scale
maintained by the existing players also the capital required to establish a manufacturing factory
is high plus there is a strong brand identity. Yet gaining access to distribution and expected
retaliation is a moderate level barrier this makes access to the required inputs for manufacturing
is not being very problematic.
 Threat of Substitute = Low:
There are mainly two substitutes of personal care products which are
home remedies also known as totkay and other skin products made at home with natural
ingredients such as herbs and oils to protect to rejuvenate the skin. Such products are more used
at rural areas. Some women also think of these substitutes as old fashioned and ineffective
especially the new generation. So in the accord the switching cost and the buyer propensity to
substitutes, both are low.

 Supplier Power = Low:

The number of suppliers in this industry is large due to the existence of
many manufacturers of the products required by the industry to make goods. Also there is low
differentiation of inputs as the inputs have the same chemical formulas. The presence of
substitutes of the inputs and the impact of inputs on cost is low. Thus the overall, the bargaining
power of the suppliers in this industry is low.
 Buyer Power = High:
Increased competition and availability of the products have given the buyers
of this industry high power. They are in no position to influence the prices of the products. This
makes it difficult for the companies to maintain long-term profitability. It may also force the
company to reduce product prices as buyers can easily switch to other brands which is also due
low product differentiation. .
Marketing plan:-
Marketing Mix of Lifebuoy face wash:
The 5 P’s (products, place, price and promotion) of the Lifebuoy face wash are as follows.
Product:
Our core product that we are releasing is the face wash whose main focus would be to reduce
sebum production and facial bacteria such as Propionibacterium acnes that lives in the oily skin
pores thus causing acne and other skin problems. So the use of the product will help the user to
get smooth and healthy skin.
 Core benefit: Core benefit of this face wash is easy to use, feel fresh the longer time and
it is free of harmful chemicals that cause skin allergy.
 Potential product: Introducing the face wash for different skin types, like for dry skin,
oily skin and for rough skin.
 Upper market stretch: Lifebuoy face wash is initially launched for the middle income
class customers. The company can come up with some other face wash product to cover
the upper class of market.
Packaging: The packaging of the face wash has traditional lifebuoy style colors of red and white
but instead of a tube style that most of the competitor’s face washes have our product will be in a
bottle whose style is straight and long also the bottle would have a pump that would dispatch a
suitable portion to use and also this time real herbs and flower like lavender, cammomile and
mint pictures are used on this bottle with innovation. The bottle packaging will set remarkable
sales with its unique style.
Place:
Currently, Lifebuoy occupies a fair market share in countries like Pakistan where it
is actively used by many. Lifebuoy has a strong and widespread distribution network that
includes retailer, wholesaler, distributor, warehouses and transportation services to reach
customers via discount stores, convenience stores, corner shops and supermarkets. So for now
we would initially release it in major cities of Islamabad, Lahore, Karachi, Quetta, Peshawar and
Faisalabad. So based on the response from there we would further release it nation wise.
There is a significant change in market distribution channel of cosmetic products.
Distribution places are:
 Super market
 Shopping malls
 Departmental store.
These stores are opening their shops in smaller towns and cities and these shops offer extensive
range of products and frequently promotional offers.
Other places are:
 Pharmacy stores
 Cosmetic shops
 Beauty saloons
 Retail stores
Lifebuoy is an important brand UPL. UPL having many distributors around the country is a
very strong distribution channel in Pakistan.
Price:
Lifebuoy has kept product prices marginally lower than the prices of its rival brands. Its
reasonable and inexpensive pricing policy has been a great factor in making it one of the most
popular choices to be used by common masses. This has led to bulk sales and greater profit
margins. So considering this the new product will be priced at Rs. 137 for normal long bottle
which again is lower than competitor . Thus this may help us get greater sales and would help
market penetration as the customer in Pakistan i.e. the female population is price sensitive.
 Selecting the prices: Company’s pricing strategy should be competitive. After analyzing
the competitors market and markup company will select its pricing.
 Responding to customer’s pricing: The major competitors as ponds, fair & lovely and
Himalaya etc. if the competitors change the price means the company has to analyze the
 market situation As by initially company has set medium price for lifebuoy but it can
change further if needs.
.Promotions:
The brand has adopted intensive marketing plans to promote its products in global market. It has
launched ad campaigns on television, radio, magazines, newspapers, billboards and sides and
backs of several vehicles. So for the promotion of this product we are moving a bit away from
the traditional channel. We are going to focus more on social media and TV advertising which
would help us to reach our target better i.e. young girls and women in the age range of 15 above.
 Advertising: Lifebuoy will use various medium to sell the products. Mediums are
television, magazines, events and internet. In television media, lifebuoy advertise as
commercial for lifebuoy in that, company advertises their products.
 Internet medium: The Company has its own website for the promotion of its product in
the global market.
 Sales promotion: Lifebuoy will offer sales promotion to increase the sales for particular
time period including coupons etc.
 Brand ambassador: Lifebuoy has television actresses as a brand ambassador like Ayeza
khan at present. Earlier they were Reema khan and Sanam saeed.
Marketing Strategy:-
Segmentation Strategy:-
Geographic:
 Country: Pakistan.
Lifebuoy is usually selling its all product in almost several country but lifebuoy face
wash is first time has introduced in Pakistan.
 Area: Metropolitan cities and town
Company will target metropolitan cities and town because of population and consumer
knowledge about the product is increasing and towns are upcoming business places.
Behavioral:
 User status: Regular usage.
As face wash is focused on females’ product and is routinely usage product so,
females including housewife, students, job workers used face wash on routine basis.
 Attitude towards the product: Necessary part of everyday make up.
 Benefits: Maintains freshness, develops beauty, increase confidence, good quality and
natural ingredients, atmosphere friendly packaging.
Demographics:
 Age: 15 to 45
We have targeted age 15 to 45, because they are the all-time customers of the
Cosmetic industry
  Gender: Females
Product will launch only for females.
 Income: 25000+ , but also females in family especially girls can buy this product
with earnings of their family that they normally buy.
 Life cycle: young, single and married.
When it comes to Life Cycle Stage Company targeted to young, single and married,
because they have more influence to buy the product.
Psychographic:
 Social class: Middle class, lower class.
People have enough money to afford the product.
 Lifestyle: Health conscious
Lifestyle is changing and people are now more health conscious.
 Interest: Health and hygiene solution.
Today people’s interest is increasing towards hygiene products as they prefer
quality and health most.

Target Market Strategy:-

Lifebuoy Company’s sales plan is based on the company’s understanding of the market place
and how it will influence the already occupied customers.
 Criteria size: The market for face wash for females is very large and everyone tries
to achieve best level of product.
 Money: The target market will be the people with earnings 25000+ but females in
family especially girls can buy this product with earnings of their family that they
normally buy.
 Area: The Company will primarily focus on the urban and semi-urban female
customer during the initial stage of its launch. Gradually it will also reach the rural
market through its effective distribution channel.
 Accessible: The market will be accessible so we can reach them easily via different
channels.
 Loyal customers: Brand loyalty of existing customers is very important as we easily
approach them first to give a chance to try our product first.
Selective specialization strategy:
This is the differentiated strategy. In this the product i.e. lifebuoy face wash is itself a
different product among competitors in Pakistan and it has ability to fit the specific need of
customers.
Positioning Strategy:-
We all like to look gorgeous and enjoy that confidence which makes us feel like anything’s
possible. And that's just what the Lifebuoy range offers you on a daily basis – at a price you can
afford. This is the positioning statement of Lifebuoy which is based on the quality and natural
ingredients.
 Point - of- difference:-
As customers of lifebuoy are initially associated with hygiene and health solutions so this
time lifebuoy face wash’s point of difference is natural ingredients for hygiene and beauty with
long lasting effect.
 Point- of- parity:-
As other face washes provide cleanliness from skin and beauty lifebuoy face wash also
provides the same thing which is its point of parity.
 Brand mantras:
The brand mantra for lifebuoy face wash is “real, durable beauty with herb”. This brand
mantra exactly suits the face wash purpose which is real herbs which provide long lasting beauty.
Budgeting:-
Consumer psychology and pricing:
As consumers of life buoy are normally middle class so the perceive the brand as
affordable brand so we will set it as affordable face wash with excellent quality and hygiene
solution .The price will be in odd numbers.
Price sensitivity:-
The consumers of cosmetic products are always less price sensitive although it is
difficult to switch on a new product as quality always matters so first loyal customers would be
suggested to use the product as they are less price sensitive and the trust the brand quality.
Selecting a price method:-
Markup pricing:
Variable cost per unit= Rs.80
Fixed cost=Rs.2150000
Expected unit sales=40,000
Unit cost=Variable cost+ Fixed cost/Unit sales= Rs.133
Markup pricing=Unit cost/1-desired return on sales=133/1-97=Rs.137

Break even volume:-

Break even volume=Fixed cost/(price-variable cost)
=2150000/137-80
=Rs.37719
Selecting the final price:-
The final price would be Rs.137 for lifebuoy face wash of normal size bottle. This
price is good enough for competing in market as competitor’s price is high and lifebuoy’s
customers are middle class and upper lower class.
Geographical pricing:-
In this company will charge equal amount for its customers in Pakistan and slightly
higher for other countries but not so much high.