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Soap Plan

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Submitted By Paras
Words 1272
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Table of Contents

1 Company Background 1
2 Mission 1
3 Keys to Success 1
4 Situation Analysis 1 4.1 Market Needs 2 4.2 Market Trends 2 4.3 Market Growth 2 4.4 Competition analysis 2 4.4.1 Traditional Soap Producers 2 4.4.2 Substitutes of Aromatherapy 3 4.4.3 Spas and Massage Parlors 3 4.4.4 Quick medicines 3
5 Objectives/Strategies 3
6 SWOT 3 6.1 Strengths 3 6.2 Weaknesses 4 6.3 Opportunities 4 6.4 Threats 4

Company Background

Relaxo is a newly formed partnership company with five members; Aneel Shahani, Gulzar Hussain, Jawad Shafique Lakhiar, Nosheen Munir and Sanam Abdul Sattar. Capital is invested by each partner with a ration of 20% each, requirement of capital to start the business is of 8 millions out of which 60% is invested by partners and remaining 40% will be borrowed from financial institutions.

Mission

We specialize in making finest and innovative healthcare products that relax mind, revitalize energy, renew senses, and enhances your well-being at a reasonable price and sustainable monetary growth. We encourage business practices that value consumers, employees, stakeholders and society at large.

Keys to Success

• A first-mover branding campaign to build awareness of aromatherapy and its benefits against harmful medicines • Patent protection to defend our formula and product concept from competitors • Complementary relationships with suppliers, distributors, and health promoting organizations

Situation Analysis

Life in urban cities has become hectic and exhausting, people living in Karachi, Islamabad, Rawalpindi and Lahore need something that can rejuvenate and relax their mind and body. There is a need for a product that can provide good sleep, stress-less life, and serene mental state. For the first time in Pakistan we are introducing a soap that will wash-away all the stress and tension in just few seconds.
Some uncontrollable situational factors that are faced by the Aromatherapy soap are as follows: • Demand: Although the demand for Aromatherapy product is very high but when we talk about the demand of the Therapy soap the demand is growing in the workers and students category. The Soap market is Rs.11billion in Pakistan. • Competition: There is no direct competitor of Aromatherapy soap today but future can bring new competition. • Legal/political: these are the uncertainties that are extremely variable in the political conditions of Pakistan. Constant political instability does affect the company in terms of building new relations with new governments all the time. • Social and Cultural factors: the company has to be very careful in the implementation of its promotional campaigns, since the social cultural environment of Pakistan is very conservative and any suggestive advertisements usually face a lot of negative reactions on the part of the consumer. • Other factors: like the government regulations and technological advancements have had no significant effect on the product and the company.

1 Market Needs

Today our lives have become a rat race and we are caught in this vicious cycle which by the end of the day translates into a deterioration of one’s health and general well-being. Depression, insomnia, inattentiveness, and mood swings are just a few that people today are gripped by. In this time of need, something that allows us to sleep better, stress less and get energized is required. Something that is less expensive than going for aromatherapy sessions or using solutions that have a detrimental effect on our health. Something that can become a part of our daily lives.

2 Market Trends

People belonging to the upper class when feel stressed go to the Spas or take a hot bath-tub shower at home, but a person belonging to a middle class family cannot afford to by bathing liquids and expensive aromatherapy oils or visit a spa. Men during office hours often get tired and lethargic and it is noticed that that go to refreshing rooms more as compared to women. They need something during that time which would freshen their body and mind just a quick face wash would do that. People are now educated and are more towards health and hygiene; ingredients of aromatherapy soap are completely safe for human body because they are all natural herbs and oils.

3 Market Growth

People are now educated and are more towards health and hygiene; ingredients of aromatherapy soap are completely safe for human body because they are all natural herbs and oils.

4 Competition analysis

Currently there are no close competitors in this soap category in Pakistan but similar products are being used in other countries i.e. Germany, India and South Africa. There are substitutes like aromatherapy oils, medicines (Disprin, panadol, etc.) and Spas. But we provide a solution which is easy to carry, use and is free from side-effects. As we want customers to use aromatherapy as a daily soap competition we’ll be facing is from:

1 Traditional Soap Producers

Soap is a common and familiar the commodity of necessity to every company. Traditional soaps employ pleasant scents and dyes to attract consumers. Soaps are available in a variety of categories, handwashing, skin care, germ killer etc. However there isn’t any product that would rejuvenate body and relax mind. we would compete with Detol, Safeguard, Lux, Capri, and lifebuoy soap.

2 Substitutes of Aromatherapy

Aroma therapy oils and bathing liquids are available in the market, most of which are imported and only affluent citizens can afford them, but still there is a huge consumer group which is unaware of aroma therapy.

3 Spas and Massage Parlors

These are common in porche areas and in five star hotels but only elite class can afford them, they are highly in cost and is time consuming.

4 Quick medicines

Medicines like disprin are easy to use, but disadvantage is that it can cause side effects and one is not supposed use it daily. Whereas soap can be used daily, any time and anywhere without any side effects.

Objectives/Strategies

• To increase sales by 10% in the first year and 20% in the second year • By maintaining strategic alliances (good relations) with our suppliers and distributors • To increase market share by 12% in the first year and 18% in the second year • By continuous innovation and geographic expansion • To increase profits by 7% in he first year and 15% in the following year • We will decrease our costs by purchasing raw materials locally.

SWOT

1 Strengths

1. We are pioneers in introducing aromatherapy soap in Pakistan 2. Highly motivated and knowledgeable workforce. Including doctors, psychiatrists and managerial staff 3. Efficient workforce in terms of team bonding 4. We don’t have a direct competition in this soap category

2 Weaknesses

1. As we are new in the market in this category we need to create awareness in the public about this product and its attributes 2. Price will be relatively high compared to other soaps 3. Lack of credit history, distribution network and relationship retailers

3 Opportunities

1. Market segment untapped by existing soap manufacturers 2. Changing lifestyle and increasing demand for aromatherapy oils, health spas, and medicines for head and body ache 3. No immediate competitors 4. Expansion opportunities in other cities of Pakistan

4 Threats

4. Failure of external factors like approval of government and its intervention 5. Decline in the banking sector can result in high cost of borrowing 6. Competition from substitutes, like relaxing oils, quick medicines, and massage parlors 7. Changes in government policies like taxation can increase our production cost, and cost of importing raw material 8. Monopoly of existing suppliers can result in high prices of our raw materials

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