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. Hamdard University Page 1 CLEAR HANDS MARKET ANALYSIS For market analysis we used porter model a tool to get directions for the right actions, as Porter model describes is about one, the which market 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 Hamdard University Page 2 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. Hamdard University Page 3 CLEAR HANDS COMPETITORS ANALYSIS With the help of the basic research we found that our major competitor in launching our liquid soap is: Hamdard University Page 4 CLEAR HANDS COMPETITOR’S ASSESSMENT Dominant Competitor Strong Favorable Tenable WE are here Weak Nonviable Hamdard University Page 5 CLEAR HANDS 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 customer’s 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. Strong distribution network: Clear Hands has a strong distribution network by a contact with the dealer to deliver goods on time. Hamdard University Page 6 CLEAR HANDS 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. It’s 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. Technological Aspect: with the adaption of newer technology we will try to beat the competitors and try to capture the lion’s share in the market. Hamdard University Page 7 CLEAR HANDS 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. Hamdard University Page 8 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 building’s 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: Hamdard University Page 9 CLEAR HANDS – Lower cost-in-use – Improved labor productivity – Environmental benefits Patrons will appreciate a more hygienic washroom, and you’ll 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. Hamdard University Page 10 CLEAR HANDS PRICING STRATEGIES Procedure of price setting Clear Hands has to consider many factors in setting its pricing policy. Hamdard University Page 11 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 Hamdard University Page 12 CLEAR HANDS PRODUCT’S 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) Hamdard University Page 13 CLEAR HANDS 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. Hamdard University Page 14 CLEAR HANDS Analyzing Competitor’s 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 competitor’s offers. Once the company is aware of the competitor’s 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 Retail Price Buying Price Net Weight Lifebuoy Rs.99.50/- Rs.100/- 200ml Hamdard University Page 15 CLEAR HANDS Selecting Pricing Method Giving the three C’s – 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. Hamdard University Page 16 CLEAR HANDS PROMOTIONAL STRATEGIES There are 5M’s of Advertising. Clear Hands can be placed in these following 5 M’s 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. Hamdard University Page 17 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 . Hamdard University Page 19 CLEAR HANDS 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 Manufacturer… Wholesalers Retailers Retailers Final Consumers Hamdard University Page 20 CLEAR HANDS 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 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. Hamdard University Page 21 CLEAR HANDS 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 Centre’s show or other competitions to increase the awareness among the people. 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. Hamdard University Page 22