Executive Summary NATURE’S SOAP is soap. Our company is located at Industrial ar

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Executive Summary

            NATURE’S SOAP is soap. Our company is located at Industrial area in debtral part of the country. It’s a partnership firm having 7 partners sharing profits and losses in the ratio of 1:1:1:1:1:1:1. Company enjoys the advantage by producing such soaps which are eco friendly. Eco friendly means here, it’s free from those ingredients which are harmful for the nature and the human body too. Initially the soap will be available in three different types that are A, B, and C. The company aims to sell 10, 00,000 units per year after one year of pilot testing. The price per unit is Yuan 2.26 per unit. Some of the important points for the success of the business are - Building brand image, bringing the new facility to maximum production after five years of operation and a high level of quality in its product line.

Objectives

{C}      {C}To substantially increase profitability. The creation of a unique, upscale, innovative environment that will differentiate NATURE’S SOAP from other soaps and soap companies.

{C}      {C}To achieve consistent sales growth.

{C}      {C}To achieve positive Cash Flow by 1st year.

Mission

"To provide NATURE’S SOAP with a significant competitive advantage by reducing total delivery cost, extending technology resources, and making customers brand loyal”

Vision – “To capture maximum share of China’s FMCG sector within two decades.”

Keys to Success

{C}Ø {C}Bringing the new facility to maximize production after five years of operation.

{C}Ø {C}Increasing our profit margin with the use of improved technology.

{C}Ø {C}Attaining a high level of quality in its product line.

{C}Ø {C}Improving efficiencies of operations.

{C}Ø {C}Building brand image.

{C}Ø {C}Maintaining low overhead costs by monitoring and scheduling production.

{C}Ø {C}Outsourcing of soaps to local vendors

Company Summary

The manufacturing plant of Naturoil will be currently located at Industrial area Road. Our product is very innovative. The Soap consists of Naturoil and traditional ingredients which will make the skin smoother and the skin will glow without any side effects.

Company Ownership

NATUROIL is the partnership firm which has 7 partners among whom the profits will be share proportionally in ratio of 1:1:1:1:1:1:1

Products

This soap consists of Natural oils. The biggest USP of product is that it’s a multi purpose product made up of Natural oils which do not have any side effect on the skin and this soap is available in different weights and most preferred types.

Market Analysis Summary

NATUROIL is targeting urban segment- middle class and upper middle class in central China. The soap will be fairly priced so that everyone can use it. The cost will be Rs 2.26.

Market Segmentation

People of all age groups are targeted by NATUROIL- middle income and high income group. Catering to Chinese markets NATUROIL has been reasonably priced.

Target Market Segment Strategy

NATUROILOIL will initially target Central China. The company has chosen central China because the manufacturing plant is in Industrial area road , so that all the transportation cost and over head cost can be lowered down.

Industry Analysis

The Chinese soap industry includes about 1700 companies with combined annual revenue of about $27 billion. Soaps are available in 5 million retail stores, out of which 4 million retail store are in the rural areas. Therefore availability of these products is not an issue. 60-70% of China’s population resides in the rural areas and around 50% of the soaps are sold in the rural market. The soap market in China is well developed and dominated by multinational companies and a few large Chinese companies. A few major players, high entry barriers, fairly high rate of new product launches and high advertisement spending characterize this segment.

Strategy and Implementation Summary

      Initially we are selling only in central and western zone, and in future, we will                 increase our target market and target audience and launch our product in whole country, which will lead to increase in distribution channels.

Competitive Edge

Naturoil competitive edge is its 'First Mover Advantage', its high quality, features and flavors. This kind of soap can be used anywhere and at anytime. Customer Value pricing method will be used as the product will provide value for money.

  Sales Strategy

NATUROIL strategy focuses first on meeting the increased demand from retailers, distributors and customers with whom we will establish our relationships for bulk orders The sales strategy will be largely focusing on sales target basis due to which company will be forcing on increasing the sales in central China only to capture the market of soaps and to build brand image in the minds of the consumers. Secondly we will focus on increasing the volume, while maintaining the percentage of sales, of soaps in central Chinese market. When we have reached maximum sales to existing channels we will then shift the majority of our focus to capture whole of China. The Company will be focusing on effective distribution channel system which will be again driven on target basis.       

Sales Forecast

                 The Sales of the product is expected to increase by 10% each year. The sales are expected to increase because of the promotion costs which will be regularly incurred by Naturoil like advertisements, etc. If regular inspections and checks are not done over the quality of soap, increase in price of raw materials, decrease in promotional costs may reduce the sales forecasts. Regular scrutiny and Environmental scanning are required to keep sales at such high level, so that the consumers do not lose their interests over Naturoil.

OPERATIONS

The raw materials included in the soap are caustic soda, glycerin, milk cream, olive oil, coconut oil, fragrance, etc. These materials will be purchased from suppliers of raw material in . These raw materials are then sending to the production unit by auto. We are purchasing raw material on Quarterly basis. After making of the soap, we pack it in a wrapper. Then we will take a cartoon and put 12 dozen soaps in it to distribute it to the retailers and whole sellers We will directly contact with the whole seller and retailer to sell the soap and distribute it according to the order of the whole seller and retailer.

Explanation / Answer

The assignment is to write a marketing plan of a product from a local business called Dolly Moo in Montclair NJ. They make soaps, candles and lotions and have not entered into the global market. The goal is to introduce Dolly Moo to China because they have a large market for handmade soaps and cosmetic products. But the main product I have to use is a body oil with different scents. So I have to establish a well written marketing plan for this product which I will be exporting to China.

You will have to create a plan targeting towards the Chinese consumers by studying the factors of (ECONOMICAL, POLITICAL, CULTURAL, BUSINESS ENVIRONMENT AND FINANCIAL/LEGAL ENVIRONMENT). Please provide a well written marketing/business plan based on these factors. Please put in bold any used citations or articles you pulled information from. And provide the works cited.

Lenght of paper: (1200+ words)

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