AN INTRODUCTION…

Our company Blue magic is an international company operating over 12

countries including US, France, china and many more and hoping to expand
our territory by delivering the same amount of excellence in our product and
perfection in our delivery.

We take pride in our self in producing a large number of product lines such
as shaving creams, face wash, mouth freshener, hair cream and all these
product are in short known as toiletries. Our sales are growing by every
passing day. However we are still hoping to increase our product line so as
to mature our goodwill in the market and also to widen the market.In order
to attain this objective we have planned to launch a deo both for men and
women.

Our company is best known for its toiletries product line.Deodarants is

something different we are launching. We are trying 2 diversify our product
line and we are taking a huge leap by doing so.Though it's a huge challenge
we are into it.

DEODARANT: SOME FACTS

They say that our eyes are the mirrors to our souls, but they are merely
witnesses reflecting the world around us. Our nose, however, envelopes
life's aromas and sucks them into our bodies, savoring them. It is a selfish
creature, taking in all that comes in its path and trapping its chords, like a
familiar melody, into our memories. The experienced nose can recall a scent
at moment's notice. It can awake images and emotions, turning a key to
unlock a treasured memory. In an instant it can also provoke fear and
agitation. It is mysterious, yet familiar; we can easily identify a smell, but it
is hard to define it. The eyes, they can lock on an image and our tongues
easily find words to describe its sight. But smells, they allude us, and in that
is their intrigue

PERFUMES: ITS EVOLUTION

When looking back into history, many agree that the Egyptians, during the
Queen Sheba's rule [queen of Yemen and Ethiopia], were the first to
incorporate perfume into their culture. From the religious ceremonies
involving the burning of incense to the embalming of the dead, perfume was
an integral part of the Egyptian life. "The most important perfume used by
the Egyptians was the kyphi. Scholars claim that when the tomb of
Tutankhamen was opened, this was the odor that issued forth" (Kaufman,
1974, p. 34). But even scents like the fragrant myrrh were considered more
precious than gold. In the Bible, one of the Three Wise Men brought this gift
to the newborn Christ.

But perfume did not linger only in spiritual ceremonies: the Egyptians were
also the first to annoit their bodies with the scents of cinnamon and honey.
Depicted on the walls of the temple of Edfu, one can also see the depiction
of the art of floral extraction as perfume is distilled from the flowers of the
white Madonna lily. This "essential accessory" was reserved mostly for the
powerful and the wealthy. Both men and women alike wore the precious
scents.

With the death of the mystical Cleopatra, so also died the Egyptian grandeur
and appreciation of beauty. For thousands of years perfumes had been used
widely as an integral part of their culture even though almost all of the herbs
and flowers were from abroad, from Palestine, Persia, India, and Arabia.
PRODUCT: IT’S DEVELOPMENT

A product can be considered as a combination of various tangible and

intangible factors. Each product has a personality which consists of four
factors – the generic product, the expected product, the augmented product,
and the potential product. Product positioning is done to help customers
perceive a product differently from those of competitors.

Our organization had ensured that all its products are managed well and that
no product or product line gets neglected. The product life cycle model
proposed by Theodore Levitt is very useful in making many product
decisions. According to the product model, successful products pass through
four stages during their lifetimes – the market development stage, market
growth stage, market maturity stage, and market decline stage.

Since our company blue magic introduced vauious product into the market
Branding helpd consumers to differentiate products offered. Branding helps
organizations to retain their customers and also to obtain legal protection
against competitors who try to copy the features of their products. In order to
compete successfully in global markets, ouu products through out world
have high quality. Various concepts have evolved in quality like TQM, Six
Sigma, ISO Standards, etc. which helps organizations to enhance the quality
of the products they manufacture and thereby satisfy the needs of customers.
Customer service is very important for consumer satisfaction and it has both
a product component and a non-product component.
The latest product which we introduced scepta and blaaze it has an attractive
and convenient design. The marketing significance of product design is now
universally accepted. with the attractive product design we could easily
improve the marketability of the product by making it easy to carry and
operate, continues use over a long and reduction in the manufacturing
cost.labouratory research is regularly conducted in order to introduce
attractive and convenient designs to company’s new product. There will be a
periodical designs review of product for suitable modification as it is a must
in present highly competitive and consumer oriented marketing system.

Features of new introduced product (blaaze and scepta)

 Low cost
 Attractive appearance
 Easy to operate
 safety

Following are the benefits we could achieve:

 create attention in the product

 produce at the lowest possible cost
 enlarge the importance of the product from consumer point of view
TARGETING:

 After the segmentation of market the next step to be followed is to

target the apt segment.

 Our attitude in targeting : CONCENTRATED TARGET

It is the marketing approach based on appealing to a single segment of a

market.
It focuses a firm’s marketing effort on a single segment or market
niche.

 Based on the wants, resources, buying attitude and their satisfactory

level the consumers were segmented to 5 levels based on their
respective ages so as to target a specific level. These age levels include:

• 16-24 yrs : who are mostly school-college students with a high

eagerness toward fashion and trendz.With present economic factors
these age groups in urban areas get a much large pocket money and
provide them with good purchasing power. They are ready to try new
stuff released in market and are much easier to be attracted.
Advertisement for these age groups can be done through colleges,
music or fashion channels, radio FM which are less costlier are more
effective.
 • 25-30 yrs: freshers,busy with jobs.

:Stingier in nature.

:Willingness to earn more n spend less

:(so less useful to be targeted)

• 30 + yrs :settled with their jobs

:Good income

:More purchasing power but difficult to be attracted toward a

product due
:To high thinking ability and a much experienced life

(so cant be targeted)

 The segment of age group 16-24 yrs is considered as a much better

option for targeting.(reason explained earlier)
  Our products focus only on a particular customer which differentiates
us from other companies. With such a single segment in hand our firm
can understand the needs , motives much easily n efficiently ,
satisfying the members and on developing and maintaining a highly
specialized market mix.

 Our product is released with a much distinguished and large variety so

as to satisfy not just a segment but also for the sub segments within.

 With a deep concentration to a specific segments understanding the

resources available with company and resources required for tapping
the segments we could achieve a better turn over, increased profit and
an efficient market competition.

 Our company coul face market competition much effectively within

the market segment selected.

WHY WE SELECTED TARGET MARKETING?

The present marketing trend is moving from mass marketing to target

marketing. Market segmentation is regarded as better choice than market
aggregation. This is because mass marketing is difficult due to various
factors including marketing competition. Market organization usually prefer
target marketing as it understand the target market accurately and adjust its
marketing mix accordingly. This approach of focusing attention on specific
buyers and their requirements is better than focusing attention on all buyers.
This is natural as in market in mass marketing, marketing effort will be
scattered over a wide area.

Target marketing involves three broad steps. These are

1) Market segmentation: it is the process of classifying a market into

distinct subsets (segments) that behave in similar ways or have similar

needs. The segmentation process in itself consists of segment
identification, segment characterization, segment evaluation and target
segment selection. If each segment is fairly homogeneous in its needs
and attitudes, it is likely to respond similarly to a given marketing
strategy. That is, they are likely to have similar feelings and ideas
about a marketing mix comprising a given product or service, sold at a
given price, and distributed and promoted in a certain way.

2) Market targeting: Defining a target market requires market

segmentation, the process of pulling apart the entire market as a whole
and separating it into manageable, disparate units based on
demographics.it is the process of selection of the customers you wish
to service.

The decisions involved in targeting strategy include:

• Which segments to target

 • How many products to offer
• Which products to offer in which segments

Targeting strategy decisions are influenced by:

• Market maturity
• Diversity of buyers' needs and preferences
• Strength of the competition
• The volume of sales required for profitability
3) Market positioning: It mean the process by which marketers try to

create an image or identity in the minds of their target market for its
product, brand, or organization. It is the 'relative competitive
comparison' their product occupies in a given market as perceived by
the target market.
DISTRIBUTION:

It is the process of delivering the product to the customer at convenient

outlets. It is the important area of marketing management. It consists of two
major parts. They include :

• Physical distribution

• Management of distribution channels

Distribution decisions are critical in nature as they affect the viability of the
firm and the product. It is a key area of large scale sales/marketing. These
decisions affect the market share of the firm and hence great care has to be
taken in selecting the distribution channels. Distribution system provides
place utility, time utility and price utility to a product. It is the distribution
system that facilitates large scale production and marketing.

Blue magic is a renowned company in toiletries and personal care and has
been in the industry for a decade. Our company is now launching a new
collection of both men’s and women’s deodorant. For its distribution in the
local and retail markets in various metro cities of India blue magic is using
intensive distribution strategy. Intensive distribution will make available this
product at an arm’s length to the consumer. The product would be see in all
most all drugstores, discount stores, variety stores, large supermarkets and
retail outlets. This will help in increased sales, wider customer recognition
and impulsive buying for the firm.

The company’s marketing experts have advised to use two level channel of
distribution where the product from the manufacturer’s warehouse will
directly reach to the wholesaler. The wholesaler with his experience and
contacts would help in finding out retail outlets that will help the product to
be visible to the customer.

With the proper distribution process we could avoid artificial scarcity and
price rise. It is the efficient distribution that brings even distribution of
goods produced and avoids artificial scarcity and price rise. A proper
distribution is needed as it aid the process of demand generation. We could
attain following benefits with our planed distribution:

• Facilitated cost reduction

• Facilitated the process of demand generation

• Served as an effective tool for building up a client/market.

Blue magic’s other personal care products are already available in Shoppers
stop, Big Bazaar, Magnet which are the leading retailers in the industry.
Blue magic’s new personal care store is going to open shortly with the
launch of its new men’s and women’s deodorant.

Our company uses various tactics and elements to increase the distribution.
The goods are taken to different place quickly through transpiortation.they
are kept in good condition before handling over to consumer due to
warehousing. Insurance brings security to movement of goods. Few other
elements are:

• Communication:

• Packaging :

• Material handling :

• Accounting :
PRICING STRATEGY:

The concept of product pricing is very significant and played a

decisive. The price of the product is decided keeping many things in
mind. Role in the field of marketing. Pricing is an important element
in the marketing mix and company had to take pricing decision
before bringing product in the market. The price may act as a way to
attract target customers. To understand what all this means, let us
look at the different possible pricing strategies one can adopt:

Cost based pricing:

This the simplest form of pricing. In this pricing strategy, you take
the "Cost Price" of the product and you add to it how much profit
you would like to make per unit sold. What you get is the “Selling
Price”.

It's very simple logic: Cost Price/unit + Profit/unit = Price/unit or

Selling Price/unit

To understand this better, consider you make 100 units of a product

and it costs you Rs.10 per piece. Now you decide that you would
like to make a 2% profit. So you charge Rs.2 extra per product and
keep that is your profit.

This seems to make sense. However, this pricing strategy is very

crude. This pricing strategy is independent of the market and your
target consumer. Besides this, in the production of product, these
must be some "fixed cost" that is independent of the quantity
produced. This cost may not be directly accounted for in this system.

Work back method of pricing:

This method is a strategy that is most useful for small businesses.

Say a business sells 100 products each month and the total costs
(fixed, promotion, total cost price etc.) for the month are Rs.1000.
Suppose the business owner expects to cover all his costs and also
make a return (or profit) of 50% (being a total of Rs.1500).
Therefore the business owner sells his products at: Rs.1500 / 100
units = Rs.15 per product.

Penetration Pricing:

This strategy is used for new products/services trying to penetrate

the market, or existing products/services entering new markets, by
offering initial low prices. Such low prices will attract the customer
and through continued use and purchase, they may not be
discouraged by any future price increases and remain loyal to the
product/service.
In other words, the initial low price that you offer may not even
cover all associated costs, but when you increase the price in the
future, it will compensate for the loss you made or any profits you
missed out on.

Contribution pricing:

This type of pricing method is a modification on the above pricing

method. In this pricing, the equation is something like this:

Cost Price/unit + Small contribution to "Fixed Costs" = Price/unit

 PRICING STRATEGY FOLOWED: Cost based pricing

: Penetrating pricing

Why we followed cost pricing strategy:

 Cost plus pricing is useful in the sellers market as the seller

has a dominating position in the market and can decide as per our
decire.

 Cost plus pricing is a very simple method and only involve

arithmetic calculation

 Every distributors like wholesaler and retailer use cost plus

pricing method.

 Here expected profit is added to this cost of price fixation.

Why we followed market penetration pricing:

 An attraction is created in the minds of consumer and they are

encouraged to purchase the product

 A greater volume of sale is possible by charging low price.

 The competitors are discouraged from entering the field

because of low margin of profit

 The policy is useful for capturing the market.

PROMOTIONS:
It includes advertising, sales promotion and personal selling. Product
promotion means making the product popular among the consumer and
raising its sales through suitable sales. The aim is to attract consumers. We
use promotion technique at the consumer level, trade level and also at the
level of sales force. The purpose was to widen the scope of marketing.

Our company makes more than good products; they inform consumers about
product benefit and carefully position products in consumer’s minds. To do
this, skillfully use the mass promotion tools of advertising, sales promotion
and public relations.

ADVERTISMENT

Ad is a good way to inform and persuade. Our deodorant ad shall feature on

all youth channels like MTV, VH1, CHANNEL V, etc. Also feature on
entertainment channels like STAR PLUS, SONY, STAR ONE, ZEE TV ,
NDTV IMAGINE, etc.
We intend to persuade the people that our product is going to be the best
selling.
The ad will :

 INFORM

Tell about the product

Uses of the product
Explain the work

 PERSUADE
Persuading consumers to purchase NOW
Encouraging consumers to switch to our brand.

 REMIND

Reminding the consumers that the deodorant may be needed in the

near future. Reminding consumers where to buy.

There will be billboards all over Mumbai and other states.

Banners all around college, shops, etc.
A van promoting the deodorant which moves all around Mumbai.
Ads on transports, such as buses and trains.
Posters or banners on bus stops and railway stations.

No matter how big the budget, ads can succeed only if commercials
gain attention and communicate well.
Good message is important
 Message must be better planned, more imaginative, more entertaining
and more rewarding to consumers.

SALE PROMOTION

Sale promotion consist of short term incentives to encourage the purchase

or sales of the product or service. in competitive marketing sales
promotion acts as an effective tool to a marketer to solve several short
term hurdles in marketing. sales promotion campaigns are necessary due
to availability of wide variety of identical products in the market.

Consumer promotion tools includes sample, coupons, cash refunds, price

packs, premiums, ad specialties, patronage rewards, points of purchase,
displays and demonstrations and contests, sweep states and games. they
generate consumer interest, generate inquiries from the target customer
group, provide customer to retail outlets ,motivate customers to repeat
their choice and raise the rate of purchases.

A small amount of our product offered to consumers for trial is a sample.

Sampling is most effective but also a expensive way to introduce a new
product.
Sample is usually handed out in a store or attached to another product.

There will be a vote on our website where there will be a comparison

between our deodorant and deodorants of other brands .
That is after the launch of our product.
There will be contests and games.
Promotional events that give consumers the chance to win something -
such as cash, trips, or goods by luck or through extra effort.
Contest calls for consumers to submit an entry- jingle, guess, suggestion
to be judged by a panel that will select the best entries.

MARKETING
MANAGEMENT
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