Strategic Management

Launch of a Perfume

Group A

Pink Sugar

Group Members:

Sidrah Anwar- F09MB002

Marwa Malik- F09MB008
Amina Ashraf- F09MB015
Mariam Shafqat- F09MB018
Tayyaba Rana- F09MB025
Zeeshan Maqsood- F09MB030
Abdur Rehman Abid- F09MB032
Usman Qamar- F09MB045
Syed Junaid-W08MB045

Presented to:
Mr. Mansoor Mehmood Ashiq
 Introduction
Today’s generation is sharp. It is alert and exposed to issues that its counterparts in
a former generation would never have even heard of. It knows what it wants and is
aware of the multitude of options as to how to get there.

Perfume for youngsters is meant to be light and fun, the perfect accessory for divas
in training and little princess. In fact, perfumes geared towards the youngest, most
sensitive young skin are formulated with only 30% alcohol content, compared to an
average 80% in adult fragrances. These are usually referred to as baby fragrances.

Fragrances make a great gift for youngsters especially since kids often love the idea
that they are "all grown up". Giving kids their own perfumes to play with will keep
them from getting into Mommy's stash of fine fragrances. For tween girls who like
the scent of perfumes, PinkSugar is the perfect option.

We are launching this perfume under “Mushrooms” which is a branded clothing

chain in Pakistan targeting A and A+ class.

PinkSugar: For Little Girls Who Feel Like Being Big Girls & wanna have
their OWN perfume.

Reasons for Selection

The Journal of Consumer Research shared a study that linked materialism and self-
confidence and how this varies among age groups. The study showed that tweens
(8-12 year olds) are materialistic for unrealized reasons. The groups were asked to
make collages of the things that bring pleasure to their lives. Tweens aged 8-12
placed more pictures of materialistic things on the collages than pictures of family
or goals. Tweens think that they will be popular based on their own merits, things
like clothes or personal belongings will help them gain popularity among their social
groups.

"All grown up" feeling is popular amongst the tween population. So we have
stepped up to the plate creating and manufacturing perfumes that are specifically
designed for young girls between the ages of 8-12 of elite class.

Tweens by and large are avid followers of trends in style. Tweens often take their
lead from their older family members and teenage counterparts. Many products
marketed to teens often have greater success in appealing to tweens.” Tween girls
want to look and feel older.

SWOT Analysis
Strengths:
1. Alcohol free, Environmental friendly and mild

2. Ideal gift for different occasions

3. Our perfume will not lack "tenacity." It refers to the duration of a fragrance's
smell.

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Weakness:
1. New entrance in youngster cosmetics market. This may negatively affect the
customers confident of the product.
2. The growing competition within the field of perfume brands. Due to the
ongoing addition to the field of cosmetics, there is still the danger that other
brands could surpass the profit PinkSugar.
3. Another threat is the economic downturn that is quite evident in our country.
Such could thus hurt the possibility of higher profit for our brand.
Opportunities:
4. Competitors ignore this section

5. Strong campaign images using child celebrities: Celebrity endorsement

6. Extension in product line

7. Perfume today is the ultimate profit generator for a savvy marketer willing to
take the risk. You buy it by the gallon — or even by the drum! — and sell it by
the ounce
8. People can still afford to buy the things they really want. Either by entice
customer properly or somehow we can make OUR perfume the one thing that
they MUST HAVE, we will make profitable sales.

Threats:
1. Imitation and reactive attack by competitors

2. Economic crisis & its effects on consumer spending patterns

3. Short product lifecycle

4. Aggressive price discounting

Marketing Analysis
Target Market:
PinkSugar is a fruity-floral solution for tween girls which are its target market.

Segmentation:
Demographic

Age: 8-12 years

Gender: Females
Since we are also considering the factor of affordability we’ll be
Social class:
targeting tween girls of A & A+ class of Pakistan.

Psychographic

Lifestyle: Urban
Vision
Elevating the art of perfumery to achieve tween fragrance fantasy.

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 Mission
Our mission is to design exquisite fragrances for tween girls who desire to gently
shape their personality.
Suppliers
Abid & Company (pvt) Ltd
Manager: Mr. Osman Ali
8-B Darbar Market Ganj, Buksh Road,
Lahore - 54000 Pakistan

Phone(s) : +92-42-7243663
Mobile : +92-300-9496430

They have a vast range of imported and local manufactured perfume compounds of
all types, all type of local and imported glass bottles used for filling of perfume
compounds available in 1 ml to 150ml as well as deal in printing and packaging of
corrugated and gift boxes.

Packaging
Composition
The composition plays by all of the rules of a girly fragrance—its sugary sweetness
is comprised of fruity notes and delicate scents of blended florals. It first smells first
like watery-fresh orange blossom, then like watery-fresh rosy blended florals.

Scent
A Sweet fruity floral scent which is energetic and delightful.

Design
The glamorous pink packaging of this fragrance is also unique. The perfume bottle
is shaped like a star and the design's multiple facets are truly striking. Along with
the fragrance, there’s also a surprise in each and every bottle. There’s a studded
ring on the bottle which is actually a removable ring that can be used on a chain
around one’s neck, for display or used in any way one wants. This adds additional
thrill for tween girls

Objectives
1. Create and promote awareness of our perfume brand

2. To capture market share

3. To increase overall sales for perfume

4. Building brand loyalty

Strategies

1. “Mushroom” Stores

We are going to place the perfume in 4 Lahore, 2 Rawalpindi and 1 Islamabad

Mushroom Outlets since the target market of our perfume is similar to that of

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 “Mushrooms”. We’ll be placing corner racks of perfumes on each outlet. To
boost the sales we’ll hire a salesman initially in each outlet specifically for
perfume sale.

2. School Campaigns

We will be running one time campaigns initially only in Lahore’s top schools’
girls’ campuses (LACAS, Beaconhouse, LGS) where we have tween girls from
A & A+ class. We’ll be providing guidance to tween girls on puberty related
issues and alongside we will also introduce them to our product.

A limited number of coupons will be given to the interested students holding

a discount of 15% on purchase of one bottle.

3. “School Uniform” Stores

We are going to place our perfume at School Uniform Shops of our targeted
schools and offer 10% commissions to them on the sale of each perfume.

4. Discount Coupons and gift packs

Each bottle comes with a coupon which incorporates 10% discount on the
purchase of another bottle; this promotion is for a limited time period and is
to be availed within a month of the perfume launch.

Tween girls are at the age when they're starting to get interested in makeup,
perfume and other body items. This opens up a whole array of possibilities for
small gifts or stocking stuffers.Value added Gift packs of the product will also
be available for the customers for occasions and events. These packs will be
sold on special discounts for a limited period of time which is to say 2 months
from the day of perfume launch.

5. Free Test sampling at various stores/ Malls/ Book shops:

While the sluggish economy may have shoppers tightly holding on to their
wallets, it's not stopping people from visiting the mall so we will also use non
verbal techniques by doing sample testing at various departmental stores as
they prove to be a prime surroundings/ environment for pushing samples.
They could be Hyperstar in fortress, Raja Sahab at Link road, Pace at Gulberg
Boulevard, Metro, HKB, Al-Fateh and Variety. We will buy a permanent shelf
at these malls for the selling of our product and will provide some portion of
profit to them. We will let visitors to test our products/ fragrance initially by
putting sample strips at our stalls. This will not only aware the people but will
also help us in getting vital feedback regarding the tastes and requirements
of our end users.

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 6. Internet-based Marketing

We’ll be launching a website for our perfume as tweens today are Techno-
Savvy and are the First True Cyber-Citizens they find shelter on Internet and
computers are a permanent part of most tweens' lives.

Pricing Strategies
Our company will use psychological pricing strategy

Core Competence
• An all natural and non toxic perfume for tweens with good tenacity.

• Setting new innovative standards in existing categories of perfumes.

Competitive Advantage
• Creation of an entirely new categories

• A deep understanding of consumers, their habits and need regarding

fragrances

• The ability to make "connections" between consumers' wants and what we

can deliver to them

Costing

Product Costs

• Units produced = 1000

• Fragrance Cost = 250 /unit

• Bottle, pump & studded ring = 160/unit

• Packaging cost = 50/ unit

• Assembly Cost = 40/unit

• Unit per cost = Rs. 500/ unit

• Total cost = 1000*500 = Rs. 500,000

• Perfume Bottles

• Unit cost 80 ml

• Glass bottle = Rs 100/bottle

• Engraved art and crystal bottles for gift packs= Rs 180/bottle

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• Fuel cost = 2000/month

• Sale Girls for campaign= 10*5000 = 50000

• Total cost = 552000