Niften devoted itself to supply excellent quality and reasonable price shampoo to the consumers. We ship our product all over China, so that, every Chinese can be our customer. Niften does many researches about market, consumers, and media before it delivers its product to everyone. Niften aims to the people who wants their hair health, beauty and smooth. And also, with a reasonable price. Nowadays, there are more than ten brands shampoos in each store, this would make our consumers confuse when they purchase. Our goal is to make cheap shampoo with specific function to fit for different people and try our best to satisfy our consumers.
We also provide a survey to everyone to fill it in order to know our customer and to make them satisfy. In the next few years, we try our best to increase our sales in order to take as much as market shares in the market. Moreover, according the media, we would spend part of our expense on advertising, and commercials. Also, our gross margin is calculate and forecasted, so that, we can deliver our product all over the China following our marketing plan restrictedly. In conclude, throughout the survey, we would know our consumers in different aspects for their needs and to satisfy them.
Also, to understand ourselves in order to do better on our customers. Last but not least, bring up marketing plan as guidance, to continue on public relations, and commercial strategy. To build up Niften image, and improve sales. 1. Background of Marketing Plan 1. 1) Consumer analysis * Purchasing analysis Figure 1 The figure above shows that product effectiveness and price are the most important reasons for people buying shampoos. Quality, price, product effectiveness and etc. have miner effect. In aspect of functions of shampoos, people would prefer anti-dandruff, smooth, and conditioner with shampoo 2 in 1 etc..
Also, advertising, public relations these kind of promotional tactics are important as well. Figure 2 * Different ages of consumers gets different influence from those factors, for example, people whose age around 21 to 25 would be influenced by advertising deeply. The age over 25, they would influenced by the magazine and personal sale. * Women are take around 41% purchasing share in shampoo market, compare to men, their desire of buying is more than men, and would be easier to effected by advertisings, and sometimes they buy not only because they need it, also they want to buy it.
However, for men, they would be more rational when buying. * 42% consumers express that they would like to buy shampoo in supermarket or a wholesale store like Costco. To conclude, more product poured into Chinese market, the way consumer to make the decision buying product is changing respectively. 1. 2) Market background analysis Chinese shampoo market belongs to couple giant co-operations. They are not only take the most market share, and brand image influence, they also get fund, technology, and operation advantage.
Based on the survey, Head & Shoulders and Pantene are the two biggest brand in the market which they take 66% if market shares. We have huge market quantity here in China, there are 2000 shampoo manufacture and more than 3000 shampoo brand, total sales revenue would be more than 3 billion Canadian dollar, and also, total production and total sales are the top of the world, and it still increases. 1. 2. 1) Price Procter & Gamble and Unilever adjust their price since April 2001. Nowadays, we can distinguish the product into three levels by pricing. The capacity all 400ml. A.
High price: the price range is around 10 to 15 dollar. B. Mid-level: the price range is around 5 to 10 dollar. C. Low-level: the price range is around 1 to 5 dollar. 1. 2. 2) Brand positioning statement Based on different position of different brand in the market, organizations usually use four dimensions to operate their product in order to be approved by consumers and market. Figure 3 A. Material: first, product functions is a promise that guarantee the satisfaction to consumers. Second, different sub-product would fit for different consumers. B. Emotional appeal: to decorate the idea of the product.
C. Broadcast: shampoo is a typical commercial product, in this full of branded shampoo market, a strong media support would help a lot on sales. D. Sales: promotions like beauty selection, sponsorship, or membership club. 1. 2. 3) Current brand separation According to the survey, we could separate the shampoo brand by the company’s strength. First brand which takes the most market share is Head ; Shoulders. 36% people would purchase it. Second brand is Pantene which takes 30% market shares. And the third brand is DOVE, it has 24% market share. Last brand is Soft-Soap, only takes 12% of market share.
Compare those data, Head ; Shoulders is our biggest competitor in the future. Figure 4 1. 2. 4) Features of brand competition A. High concentration, and become monopolistic competition. Head ; Shoulders and Pantene take more than half of the market shares, with the development of market, some small brand would be gone eventually. B. Competitive territory and dimension increase heavily. Shampoo market is divided by levels, functions, and types due to the brand diversity, multi-branded, and sub-branded tactics using by organization. There are several different sub-brand shampoos in same price.
And, this competition now rising not only to the multi-branded but also to the way of promotions, sales, and commercials etc.. 1. 3)SWOT analysis 1. 3. 1)Advantage * Local manufacture has the distribution advantage compare to the multi-national companies. Niften is made in China, so that, the profit margin is higher than other global companies because of tariff, transportation, and marketing research expense. * For those competitors which is also manufactured in China, Niften is a new product which brings fresh and curious to consumers. 38% of people in the survey says they would like to try the new product.
Figure 5 1. 3. 2)Disadvantage * Like other shampoos, there is no outstanding functions or features that can make it different from other products. * Niften compares to other big companies, the ability for researching, updating to latest technology, and the money to put into promotion, Niften does not have the advantage. Other organizations which are big and rich would be way better. 1. 3. 3)Opportunity * According to the survey, 44% of people buy different brand of shampoos when they purchase at the second time. Niften can work on the people who would consume on the introduction period of a product. Figure 6 Too many different brands comes with too many choices for consumers, for those people who are not professional users of shampoos, Niften can do more promotions or sales to increase their market share. * Consumers becomes more rational that start caring about price. Compare to other brands Niften has the advantage of pricing, same capacity 400ml, Niften only half price of Head ; Shoulders. 1. 3. 4)Threats * P;G takes most of the market shares which means it has most customers and some of the customers are loyalty. Even some of them switch to other brand of shampoos, but still those brands are belongs to P;G. 1. )Niften product category * Green tea shampoo * Algae shampoo * Aloe shampoo * Sesame shampoo * Ginkgo shampoo 1. 5)Competitor analysis 1. 5. 1) P;G P;G owns five brand which are Head ; Shoulders, Pantene, VS, Eclairol, and Rejoice. Since 2001, P;G spent almost 5 billion to take over Eclairol from Bristol-Myers Squibb, their products chain become perfectly. Rejoice takes smooth, Pantene takes health, Head ; Shoulders takes anti-dandruff, VS takes conditioner, and Eclairol takes hair dye and care. 1. 5. 2)Vision statements of those brands Head ; Shoulders: You can have visibly flake free, hair that’s beautiful.
Pantene: There is a way to great hair. Rejoice: Vitamin B5 makes your hair healthy and shiny. VS: Professional hair care. Eclairol: Return to the nature, you will feel how strong your hair is. 2. Marketing strategy 2. 1)Building a health operating system for company Niften is a new company that step into shampoo industry not long ago, so, it needs to build a complete and health operating system in order to make smooth business inside this industry. Here are some advises and suggestions: Enterprise mission: Build the world class family cleaning brand. This is the company’s ultimate goal. Core values: Fair, honesty, diligent, and frugality.
Operation philosophy: understand the needs from consumers, and keep satisfying them. 2. 2)Locating Target market for Niften is the people whos age between 21 to 25, statistics indicates those people are more than 80%. Also, male are take more than 50% of them. So that, Niften can set their target market to those male whose age between 21 to 25. 2. 3)Marketing tactics 2. 3. 1)To set the position for exist product in market A:Start selling 600ml, and 750ml big bottle of shampoos. B:Keep selling 400ml bottle, 200ml bottle of “green tea, algae, aloe, sesame, and ginkgo” five different functional shampoo.
However, 200ml bottle would be taken over by family package. C:Start selling 100ml with 5 different packs combination. D:Start using recycling packaging. 2. 3. 2)Developing new functional shampoos to fill up the blank of the market. Releasing new Niften anti-bacteria shampoo using 200ml and 400ml bottle. A:The market Niften focus on the area where H1N1 happened. B:The people who are middle class level is our target market C:Positioning this new product as anti-bacteria. D:Using bamboo as new packaging. 2. 3. 3)Pricing Based on the survey, most people would pay around 5 to 10 dollars for their shampoos.
So, Niften set the price for their planet series 200ml bottle is $3. 99, 400ml bottle is $4. 99, 600ml bottle is $5. 49, and 750ml bottle is $6. 49. However, the new anti-bacteria shampoo is for middle class level family, and it only use 500ml bottle, so, the price is $6. 99. 2. 3. 4)Sales and Promotion A:Buy one 600ml bottle get one for 50% off or buy one 750ml bottle could get a 100ml 5 packs as free gift. B:Weekend or holiday promotions. C:Sales person directly talk to consumers and make consumers know about Niften products. 2. 4)Distribution channel 2. 4. 1)Select channels A:Manufacture—retailer—consumers.
This channel mainly for big or middle size city. B:Manufacture—wholesaler—retailer—consumers. This one is for small city and villages. Figure 7 2. 4. 2)Area selection * Business district: Downtown area, Shoppers & Drug mart. * Living community: Convenience store. * Discount store: Wal-mart, Superstore, and Zellers. 2. 4. 3)Consummate the whole Distribution system * Set up the management office in every city which could reflect the situation directly back to manufacture. * Co-op with the wholesaler and retailer throughout contract. And help them to find the best way to sale and promote. And to do the training for those sales person. 2. 5)Public relations 2. 5. 1)Requirements for PR * Commercial activities and social activities should be both projected. * PR event and media conference should be held at the same time. 2. 5. 2)Missions of PR events * To build up a health public image of Niften and increase the brand popularity at the same time. * Using the publicity campaign to grab the attention from wholesalers and retailers. Keep looking for and building up the relationship with partners. * Guide consumer to finish their purchasing.
2. 5. 3)PR events * Build up Niften family care centre. Public service advertising. * Public image ratings for Niften from few public news papers and media. 6. Commercials * Advertising to those wholesalers and retailers. Platform: TV. Strategy: celebrity. * Advertising to consumers. Platform: TV. Propose: Deliver the information that different shampoos have different feels and impacts. Strategy: Make the health of hair as the meals for people, easy to understand when people have different food for different nutrition. So that, shampoos would do it same way. * Print advertising. Platform: Elevator, billboard and any commercial stands or post. * Flyers, and e-mail. Budget for advertising. (Beijing) * TV:CCTV 21:00-21:30 $1000 per 10s 11:30-12:00 $300 per 10s 19:30-19:35 $1200 per 10s 19:40-20:50 $1400 per 10s Total: $3900 per day * 365=$1423500 Bus stands and buses $2000 per piece * 10=$20000 $4000 per bus *10=$40000 Total commercial budget: $1423500+$20000+$40000=$1483500 7. Forecast * Make Niften become one of the most competitive brand in the market, and try to make into first 10 welcome shampoos. * Completing Niften shampoo producing and selling system. * Build up a positive public and brand image for consumers that Niften not only cares about your hair, but also your family.