REPORT ON

NATURAL CLEANSING LOTION & CO

Marketing Management
SUBMITTED TO: KAWSAR AHAMMED
Associate Professor
School of Business & Economics

SUBMITTED BY: UNIQUE GROUP

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 Prepared by

S.L ID Name Remark

111 152 063 Sudipta Roy

111 163 128 Rayhan Hamim

111 163 034 Sajidul Mohsin

111 161 077 Mitul Dash

111 161 384 Sheikh Tamanna

111 163 106 Farah Binta Alam

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Letter of Transmittal
April 13, 2019

Mr. Kawsar Ahammed

Associate Professor

School of Business and Economics

United International University.

Subject: Submission of report on “Marketing Management”.

Dear Sir,

With due respect I, the undersigned students of “Marketing Management”. Here is the report that
we assigned on the topic “Facial and moisturizer cream (Natural Cleansing Lotion & Co)”.
The report has been completed by the knowledge that I have gathered from the course “Marketing
Management”. I am thankful to all those persons who provided us important information and gave
us valuable advices. I would be happy if you read the assignment and I will be trying to answer all
the questions that you have about the report.

I have tried our label best to complete the report meaningfully and correctly, as much as possible.
I believe that without your inspiring this report would have been an incomplete one.

I hope you find this report satisfactory.

Sincerely yours,

On behalf of the group members

……………………..

Sudipta Roy

ID: 111-152-063

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Acknowledgement
At first, I would like to express my gratefulness to the almighty for being so kind to allow me to
work on this project successively.

Then my full of heart goes to United International University (UIU) where I have finished our
required course curriculum to be eligible to prepare a term paper. The education learnt from the
teachers and the whole infrastructure of our university, truly has amplified my level of competency
and thoughts during our learning period.

I would like to thanks our honorable faculty Mr. Kawsar Ahammed for his support and
guideline which has enabled me to form such a term paper.

Finally, I would like to thanks all that help me visibly and invisibly because he gives me
the opportunity of making such kind of term paper that will be very much helpful for my
prospective career.

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Executive Summary
Natural cleansing lotion & Co is a company of cosmetic product business industry that has
brought a new era in cosmetic industry. It has opened so many opportunities for health-
conscious customers related to that kind of business. In this paper we tried to show moisturizing
and lotion product-based business operation in the eye of marketing. Natural cleansing lotion
Co and its strategies, model, assessment with the current market players and its vision provide
the most expanded online healthcare service and goods marketplace for the Bangladeshi
consumers and those who needs them. In 2019 Natural cleansing lotion & Co officially starts
its operation and now it starts rising and near future it will dominate the industry of Bangladesh.

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 Table of Content

Introduction ............................................................................................................................................... vii

Description ................................................................................................................................................ viii
Situation analysis: ................................................................................................................................ viii
Market Situation: ............................................................................................................................... ix
Product offering: ............................................................................................................................... xii
Competitors: ...................................................................................................................................... xii
Climate: .............................................................................................................................................. xv
Objectives: .........................................................................................................................................xvi
V. Marketing strategy: .....................................................................................................................xvi
FINANCIALS: ...................................................................................................................................xx
CONTROLS: .....................................................................................................................................xxi
Conclusion: ........................................................................................................................................... xxii
Bibliography ............................................................................................................................................ xxiii

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Introduction
As cosmetics user in Bangladesh is increasing day by day it creates a great platform for cosmetic
businesses to expand their business in this region. Currently there are many cosmetic items
manufacturer in Bangladesh. Among them is very popular and health-friendly manufacturer.
Natural cleansing lotion Co has been launched in February 2019.In tune with the vision SAFE
Bangladesh, Natural cleansing lotion & Co opens the doorway for everybody to shop. Their
collection of inventory and services combines with supplements that a customer need. Their
products are exclusively selected for every types of customers. They intergrade all that customer
and patient item under one umbrella.

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Description

Situation analysis:

As an integral part of strategic formulation, a strategic analysis involves collecting and analyzing
relevant types of information about not only the environment and trends, but organizational
competencies and resources as well. A company’s marketing environment consists of two
distinct levels: internal and external environment. The external environment is further divided
into two sub-categories: macro and micro environment. The analysis of external environment
helps detecting opportunities and threats, both present and potential, while the internal analysis
results in the identification of strengths and weaknesses that exist within the company’s culture
and structure.

Women are becoming more and more beauty conscious now days. For this reason, many
cosmetics companies are emerging with their own products, thus resulting in the saturation of
such markets. Companies like Johnson and Johnson’s clean of chemicals, but none of these
produce herbals. Also, the cleansers they produce are not effective all the time because they are
produced from chemicals, and they are clean and clear and PH 5.5 etc., are examples of some of
the companies that produce facial cleansers made cause harm to the skin of many people, as I
have experienced in my personal life (not to mention the name of the particular cleanser). So, as
the cleanser I’m planning to launch in the market will have a competitive advantage in terms of
being un harmful chemically. The market for cleansers may be saturated, but the market for
Herbal Cleansers may create a new scope as it will be an innovation, and saturation will not
affect for the consistency in my of the well-being of my product.

Figure: The marketing Environment: (6.1 What marketing)

To maintain sustainable success, a company must stays in tune with external environment. In
other words, a company’s offers have to fit with the environment wants. Therefore, a “strategic

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fit” is in need for the company to quickly respond and adapt to changes of the market. (Clein,
2013)

Market Situation:

Natural Cleansing lotion possess good information about the market situation and knows great
deal about the target customers.

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Market Demographics:

The profile for NCL’s customer consists of the following geographic, demographic, and behavior
factors:
Market segmentation is vital for the success of a company (West 2010, 152). Kotler (2012, 214)
has defined this term as follow: “Market segmentation: Dividing a market into smaller segments
with distinct needs, characteristics or behavior that might require separate marketing strategies or
mixes.” The aim of segmenting is to identify groups of customers with similar needs and
preferences so that they can be served effectively while being of a sufficient size for a product to
be offered effectively (D. Jobber 2010, 260). Based on this, a company can choose which group
or groups to focus on and develop a series of strategies tailored to each group’s distinctive
characteristics and requirements.

Geographic
1. The immediate geographic target is the city of Dhaka with a population of 954,000.
2. The total targeted population is estimated to be 150,000.

Demographics
Based on demographic, age, gender and occupation serve as appropriate bases for segmentation.
Since the case company’s business is about color cosmetics, only female group will be studied.
This group of consumers will be then, divided into smaller group according to their ages and
level of education or occupation. Based on this, level of income and purchasing power can be
predicted as well.
1. Age range 16 – 45.

2. Female.

3. Married.

4. Professional.

Behavior Factors
These bases are built around groups of consumers with similar perceptions and responses toward
particular products or services. There are different criteria within this group such as loyalty level,
brand insistence or creation of special events, etc. However, main factors chosen to segment
based on consumer behaviors are usage rate and benefit segmentation. Usage rate involves the
amount which is normally consumed by individual consumers. Normally, consumers will be
classified into two groups: non-users and users. Then, within users, they will continue to be

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divided into clusters of light, moderate and heavy users. Apparently, the wants and needs of
these groups are somewhat different from each other. Meanwhile, benefit segmentation is based
on key benefits that consumers are seeking from the use of particular products or services. Even
though there can be two or more segments purchasing same products, the benefits they are
looking for can be very different.

1. Beauty conscious.
2. Tend to eat out at least once a week, typically more.
3. Live the motto “fashion over function.”
4. Are always aware of the different fashion trends.
5. Subscribe to, or at least read, several women’s magazines that are fashion orientated.

Market needs:
Natural Cleansing Lotion is providing market with an herbal lotion for deep cleansing of face
and neck, to prevent dirt and oil. The basic market needs is to offer a good quality of cleansing
lotion at reasonable price through different retail and local stores.
The product is providing its customers with the opportunity to give their best look with herbal
extracts. The target market value a higher quality cleansing lotion for their better skin and our
company is giving value to their desire.

Market Growth:
The majority of working people and teenagers spend a large percentage of their money on beauty
products. One important factor is that teenagers between 14-25 age ranges represent a growth
segment and enjoy larger spending than other family structures. They enjoy the choice to spend
their spending on life’s amenities. So, they are the main target market.

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Product offering:

Our products have the following features:

• Specially designed oil and water emollient lotion locks together with the oil secretion and
debris build-up on the skin’s surface then rinses away immediately leaving a clean, soft
continence.

• Dispensing lids used to eliminate bacterial contamination.

• PH balanced, cleanses skin’s surface and pores, removes makeup.

• Time saving, one step cleansing lotion that is EASY to use but has all the properties of
several more expensive products.

• Use anytime just like liquid soap without the drying properties.

Competitors:

It is widely acknowledged that satisfying consumers is the central activities of a marketing

strategy. However, this part alone is not enough to guarantee success. A company has to review
its own strategy to evaluate whether it can do this job better than its competitors or not. In order
to achieve consumer satisfaction and being able to offer greater value than the competition, a
company needs to have thorough understanding of not only its consumers but also its
competitors. A good competitor analysis will help a company to gain better understand of its

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competitors. Accordingly, it can predict their reaction to any marketing initiative that the
company might make and exploit any weaknesses they might possess.
(D. Jobber 2010, 705.) Based on this, the company can learn from their competitors and adjust its
own strategy to maintain being competitive in the market. Thus, a competitor analysis is crucial
to the successful implementation of marketing strategy, to help the company survive and grow.
This part consists of two components. Firstly, it is about an overview about the industry the case
company operating in in order to catch a glimpse of the competition intensity. The following part
is about identifying competitors, both current and potential ones, and analyze its strategies and
action
When we come to beauty products there are not only one competitor. There are many
competitors of NCL, they are:
“CLEAN & CLEAR a leading branded cleanser in the China skin care market and it’s growing at
double digit rates around the world. It’s a favorite of young women like those shown here
shopping in Shanghai, and its representative of the efforts being made to seize market advantage
in the growing skin care category”.
(http://www.investor.jnj.com/downloads/jnj_2004annual.pdf). Beyond CLEAN & CLEAR, skin
care brands including NEUTROGENA, RoC and AVEENO contributed to strong growth for the
consumer business segment.

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FIGURE; Industry structure: The five forces (Gulati, 2013)

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Climate:

SWOT Analysis:
After gather sufficient data related to company, its consumers and competitors, SWOT analysis
is used as a systematic way for integrating internal and external analysis. This would help to
formulate a strategic fit between what the environment wants and what the case company has to
offer, as well as what the company needs and what the environment can provide. (West 2010,
93-95.) Trim and Lee (2008, 731-745) described SWOT as a well-established method, which is
used to appraise a company situation. It can also extend by linking results of the analysis to
enhance the strategic decision-making process. Thus, SWOT is considered as an important
foundation for any plan to help producing realistic and meaningful strategic recommendations
for a company’s future direction. In fact, the aim of SWOT analysis is to figure out the extent in
which relevant strengths and weaknesses of the company are capable of dealing with the changes
taking place in the business environment. Despite its broad usage, SWOT has been subject of
several criticisms because of its apparent limitations, mostly caused by the simplicity. In this
study, the TOWS matrix will be applied instead of traditional SWOT tool. This matrix was
proposed by Weihrich (1982) as a very useful tool for creating a series of strategic options for
decision-makers to consider by illustrating alternative ways in which a company can use its
strengths to minimize threats and invest in available opportunities to overcome weaknesses.
A SWOT analysis of the business environment can be performed by organizing the
environmental factors as follows:
The firm’s internal attributes can be classed as strengths and weakness.
The external environment presents opportunities and threats.

Strengths:
The product is an herbal product which is skin friendly and environment friendly. It does not
cause any harm to the skin and does not have any side-effects.

Weakness:
It is a new product in the market, so people will feel hesitated to use it. The rate of adaptation
will be less. There will be low sales at the beginning with negative profits. Bangladeshi people
are unaware of the usage of herbal cleaner, so it will be difficult for the company to have a
market position.
The R&D department has to be strong enough to challenge the existing competitors.

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Opportunity:
– Participation within steadily growing industry.
– Ability to decrease the fixed costs as a percentage of an individual sale as volume
increase.

Threats:
As it is a new company emerging in the world of market, in its introductory stage it will have
few competitors but as the market grows there will be growing number of competitors with
rapidly rising sales and rising profits, so the company much make sure that it can meet the
challenge with its competitors and retain its customers.

Objectives:

The objectives of Natural Cleansing Lotion include both marketing and financial objectives:

Marketing Objectives:
1. Maintain a gross margin of 35% each month.

2. Steadily increase market share every quarter.

3. Develop brand awareness and acceptance, quantifies by a decrease in customer

acquisition costs.

Financial Objectives:
1. Increase the profit margin by 0.5% a quarter.

2. Develop efficiencies in the delivery of the service through advanced training and
workflow analysis.

V. Marketing strategy:

The single objective is to position Natural Cleansing Lotion as the premier source for Clean &
clear skin. The marketing strategy will seek to first develop brand equity, increase customer
awareness and build the customer base, establish connections with target markets and work
towards building customer loyalty and referrals.

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Mission:
The motto of this product is to” Make your skin beautiful”. Its mission is to meet the demand for
an upscale women’s retail store with a wide selection and focused customer attention.

Target Markets:
After the company has segmented the market into groups with distinctive needs and
characteristics, the next step is targeting. This process involves evaluating market segments and
deciding which ones to serve. Evaluate market segments When evaluating market segments, a
company has to address these two issues: market attractiveness and the company’s capability to
compete in the segment
Market attractiveness can be assessed by looking at market factors, competitive factors and
social factors:
• Regarding the market factors, it is important to evaluate whether a segment is potential or not.
In order to clarify this, the company should pay attention to segment size, growth and its
profitability. Another important criteria needed to be concerned is barriers to market segment
entry, which can take the form of the high marketing expenditures necessary to compete or high
switching costs for consumers.
• Competitive factors consist of three elements: nature of competition, new entrants and
competitive differentiation. A segment with low level of competition appears to be more
attractive. However, the company must take into account the likelihood of new entrants and the
dynamics of the market, especially with rapid changes of new technology nowadays. Besides,
segments will be even more attractive and potential if there is a real probability of creating a
differentiated product that consumer values. This depends on how the company identifies unmet
needs existing in the market and its capability to fill this gap.
• Most relevant social factor which will be studied in this report is about trends in the cosmetics
industry. A company needs to keep track with changes in the market and make sure to be agile to
follow the trend. Big gains can be rewarded to first entrants.

The target markets are separated into four segments:

1. Teenagers: Teenagers have the tendency to adopt beauty products more than anyone else
in the market. So, they are the first target of Natural Cleansing Lotion. The goal with
these customers is to promote regular use of the cleansing lotion. The intend is to inform
these customers that this lotion will keep their look gorgeous.

2. Adults: These people are between the age ranges of 25-40. They may be outdoor workers
or indoor workers. They are among those people who have income. Usually married
women who fall in the adult will use the product more to keep their skin fresh and good-
looking.
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 3. Working people: Most of these people remain out-door. They deal with smoke, mud and
thus pimples and acne grow fast on their skin. They need such a product that will keep
their skin clean and clean all the time. So, here’s this product NCL, which people can
carry with them anywhere they go.

4. Non-working people: these people don’t go out often but goes hand by hand with latest
fashion. They quickly adopt the latest products that come to the market, they are also
known as risk takers. They will buy the product to give a try on the product, if they do so
they are the main target market.

(Market Attractiveness, 2011)

Company capability
Even if a segment has high potential and is structurally attractive, a company cannot choose to
target this segment solely based on those factors. The company must consider its own objectives
and resources whether it can serve that group or not. Some attractive segments can be dismissed
quickly because they are not aligned with the company’s long-term objectives. Or on the other
hand, the company may be lack of skills and resources required to compete successfully in a
potential segment. Therefore, a company should only enter segments in which it can create
superior value for consumers and gain advantages over its competitor

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Marketing Mix:

In brief, our marketing mix is compared of these approaches to price,

distribution and advertising & promotion.

PRICE:
Product pricing is based on offering high value to our customers to most price points in the
market. Value is determined based on the best quality available, convenience and timeliness in
acquiring the product. We will consistently be below the price points offered by clean & clear
and mod girl.

DISTRIBUTION:
All products will be distributed through the retail store. The customers can also shop online from
our website.

ADVERTISING & PROMOTION:

The advertising and promotion will be through:
• Newspapers.

• Television.

• Posters.

(Marketing Plan of)

Positioning:
For a person creating a personalized and unique impression on her face is very important and
Natural Cleansing Lotion is giving an opportunity for those people. Unlike Aveeno and clean &
clear, NCL give a pleasant facial cleanser with fragrance. It has positioned itself by producing a
herbal product.

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FINANCIALS:

This section will offer a financial overview of NCL as it relates to our marketing activities.

SALES FORECAST:
The sales forecast is broken into two main streams:
1. Direct sales 20% growth rate per year.

2. Web sales 50% growth rate per year.

EXPENSE FORECAST:
Marketing expenses are to be budgeted at approximately 5% of the total sales. Expenses are
tracked in the major marketing categories of television ads, newspaper ads, web
marketing/support, promotional events, others.

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CONTROLS:

The following will keep us on track. If we fail in any of these areas, we need to re-evaluate our
business model:
♠ Gross margin at or above 35%.
♠ Do not depend on credit line to meet cash requirements.

The difficult and risks that may occur are:

♠ Slow sales resulting in less-than-projected cash flow.
♠ Unexpected and excessive cost increases compared to the forecasted sales.
♠ Overly aggressive and debilitating actions by competitors.
♠ A parallel entry by a new competitor.

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Conclusion:

In a nutshell, skin issue is a big factor in Bangladesh and skin care service is a revaluation of a
new industry. Now people and curious about information and technology, that also a platform of
many sort of business. Natural cleansing lotion & Co is a unique business because of their
signature feature and anyone can solve skin issue without any doubt. The business itself is a
bridge for skin conscious customer and their desired product. For a developed or developing
society, this platform will play a vital role for future.

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