MARKETING PLAN
COLORBAR LIPBALM
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EXECUTIVE SUMMARY The marketing plan includes the fundamental for the introduction of a new brand extension product by ColorBar called Berry Kiss, which specializes in producing natural and organic berry lip balms. ColorBar is trying to expand their territory to a new horizon in the Indian cosmetic industry as well as the natura and organic industry by introducing this new product. The various analyses provide detailed information to develop strategies regarding the marketing plan of Berry Kiss. Berry Kiss provides a range of exciting new flavours as well as good offers in terms of quality, packaging and price. The following report outlines the marketing strategies and examples of prototypes that could be undertaken to promote Berry Kiss on a large scale and make it a successful product.
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INDEX 1.0 COMPANY DESCRIPTION
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1.1 BACKGROUND 7 1.2 COMPANY GOALS AND MISSION STATEMENT 7
2.0 STRATEGIC FOCUS AND PLAN 3.0 SITUATION ANALYSIS
3.1 SWOT ANALYSIS 3.2 INDUSTRY ANALYSIS 3.3 COMPETITORS ANALYSIS 3.4 COMPANY ANALYSIS 3.5 CONSUMER ANALYSIS
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4.0 PRODUCT - MARKET FOCUS
5.1 MARKETING PROGRAM 5.2 PRICE STRATEGY 5.3 PROMOTIONAL STRATEGY 5.3.1 SOCIAL MEDIA 5.3.2 CAMPAIGN 5.3.3 ADVERTISING 5.3.4 PUBLIC RELATIONS 5.4 DISTRIBUTION STRATEGY
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6.0 IMPLEMENTATION PLAN
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4.1 CONCEPT 17 4.2 MARKETING AND PRODUCT OBJECTIVES 17 4.3 TARGET MARKET 18 4.4 POINTS OF DIFFERENCES 18 4.5 USP AND POSITIONING 19 4.6 BRAND ELEMENTS 20
5.0 PROJECT STRATEGY
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6.1 INTRODUCTION 30 6.2 GANTT CHART 31 6.3 MONTHLY PROMOTIONAL PLAN 32 6.4 DURING AND POST LAUNCH PLAN 32
7.0 EVALUATION AND CONTROL
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8.0 LIST OF REFERENCES
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LIST OF ILLUSTRATIONS Figure 1
Maybelline Baby Lips Products
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Figure 2 Brands Positioning
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Figure 3 Brand Elements
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Figure 4 Different Berry Kiss Lip Balm Flavours
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FIgure 5 Packaging According To Flavours
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Figure 6 Facebook Post
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Figure 7 Banner
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Figure 8 Poster
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Figure 9 Major Cities Of Distribution
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1.0 COMPANY DESCRIPTION
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1.1 BACKGROUND Colorbar Cosmetics is one of India’s leading brands of color cosmetics that has been developed with the promise of providing its consumers world class innovative products in a wide range of colors. The inspiration behind the brand is the millennium woman who believes in expressing her many moods and desires through a variety of colors she adorns. ColorBar is owned by the Modi industries in India. In 2003, Samir Modi took over the cosmetics business in Modicare, launching Colorbar Cosmetics for the domestic Indian market in 2004. Today, the company runs 40 standalone stores, where beauty experts provide fashion tips and give makeover to their clients besides showcasing Colorbar products. Colorbar already has stores in Abu Dhabi and Dubai and plans to open more in the Middle East, Southeast Asia and Africa. Between 2004 and 2009, Colorbar had opened about 2,200 shop-in-shops in Big Bazaar, Reliance and other retail outlets. The brand currently has 625 beauty advisors across 553 outlets on its rolls. At the same time, Colorbar worked on its products and positioning as well. From selling cheaper products to the masses through grocery stores, the company moved up a ladder to target the ‘masstige’ segment - a combine of mass and prestige segments - that constituted almost 60% of India’s cosmetics market. The company lined up international vendors and introduced new products, and created efficiencies in supply chain to increase its product stock rate in stores from around 50% to about 90% at present. They are well connected to 1 million+ people on Facebook as well through their page.
1.2 COMPANY GOALS AND MISSION STATEMENT ColorBar’s vision is focused on to provide its consumers world class innovative products in a wide range of colors”. Their inspiration are the millennium women who believe in expressing their many moods and desires through the variety of colors they adorn. Colorbar designs its repertoire to re-define the chic & sensual woman, with its range of make-up. As color and cosmetic experts, they provide a complete collection of products for face, eyes, lips and nails for the countless unique moments in a woman’s life. Over the years, ColorBar has constantly strived to develop products that suit the tastes of the urban women of India. They strongly beleve in the strategy of ’Think global and act local’. Thus, they have been constantly introducing new products in the market. They also aim at providing value for money and affordable products. 7
2.0 STRATEGIC FOCUS & PLAN
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2.0 STRATEGIC FOCUS & PLAN While ColorBar is a popular cosmetic brand, it is an opportunity for the brand to expand into a new horizon at this time as the natural and organic cosmetic trend is growing in India. ColorBar focuses on expaning their presence, developing new products that suit the audiences liking and aims at providing value for money. The brand strongly believes in their ethics, appreciates local resources and put them into good use, which are the key ingredients to the success of the company. By entering a new market and new channels of products, ColorBar is striving to become truly global with a local mind.
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3.0 SITUATION ANALYSIS
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3.1 SWOT ANALYSIS STRENGTHS • Providing a quality natural and organic lip balm, which heals chapped lips. Its a natural and organic product, so it it really goof for the lips. It’ll be better than chemical based color lip glosses. • In the age of glamour, bringing an extension to beauty and a natural and organic cosmetic necessity. • Providing high quality products, to keep the name of the brand intact and make an impact on the customers. • Having widespread availability and promotion, to spread awarness about the product brand and also make it easily available to the customers. • Providing safe skin product to gain their trust and make them feel beautiful.
OPPURTUNITIES • Entering into the cosmetic and natural and organic Industry at the same time. • Creating new flavours of lip balms at a fast pace to meet different requirements of the customers. • Giving samples of lip balms for comparison with other lip balms. • Advancing the lip pot to a more better product that is natural and organic.
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3.1 SWOT ANALYSIS WEAKNESSES • Highly competitive market, there are too many brands like Maybelline, Lakme etc. • Threat of the competitors about copying the product. • Difficulty in creating a high-adoption rate, because there are already many brands in the market.
THREATS • Global Recession. • Differences in flavour liking and preferences. Every person has his/her own liking and tastes, so it’ll be a huge task to please the customers. • Government rules and laws. • High promotional and development costs.
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3.2 INDUSTRY ANALYSIS The Indian Cosmetics Industry is defined as skin care, hair care, color cosmetics, fragrances and oral care segments which stood at an estimated $2.5 billion in 2008 and is expected to grow at 7%, according to an analysis of the sector. Today natural and organic cosmetics industry is driving growth in the beauty business in India and is expected to grow at a rate of 7% as more people shun chemical products in favour of organic ones. The emphasis of the herbal cosmetic has been on the spectacular growth of the herbal and ayurvedic beauty products business as conveyed by beauty expert Shahnaz Husain who was the first to introduce the concept of natural and organcic cosmetics to the world when she launched her products way back in 1970. The Indian cosmetics industry has emerged as one of the unique industries holding huge potential for further growth. In 2009, the cosmetics industry registered sales of INR 356.6 Billion (US$ 7.1 Billion) despite the global economic recession. Indian cosmetics Industry has mainly been driven by improved purchasing power and rising fashion consciousness of the Indian population and industry players spending readily on the promotional activities to increase consumer awareness and develop their products. According to a new research report, the Indian Cosmetics Industry is expected to witness impressive growth rate in the near future owing to rising beauty concern of both men and women. Today the industry holds promising growth prospects for both existing and new players.
3.3 COMPETITORS ANALYSIS The cosmetic industry is divided into two categories, one being the chemical based color cosmetic industry and other being natural and organic based cosmetic industry. Maybelline India has maintained leadership because of marketing strategy that includes high availability across the country, assortment of flavours and eye-catching packaging, pricing strategy and humorous TV ad with an Indian touch. However, its value share declined slowly over the review period due to the rise of leading players such as The Body Shop, Lakme, L’OrÊal, which competed on flavour innovation, packaging and affordable pricing.
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3.3 COMPETITORS ANALYSIS MAYBELLINE - BABY LIPS The brand success lies in their marketing strategy that includes high availability across the country, assortment of flavours and eye-catching packaging, pricing strategy and humorous TV ad with an Indian touch. They also concentrated more on using viral marketing campaign on social networks (Facebook, Twitter, YouTube) as a platform to spread brand awareness. Maybelline positioned itself in 18 flavours with its fruity and yummy flavours such as Rose, Cherry, Peach etc. Their offerings under the lip balm segment are unique and innovative. Initial pricing of Maybelline Baby Lips is Rs.150/Promotion: Maybelline Baby Lips was strategically timed around Alia Bhatt’s (Bollywood actress) movie release for promotion purposes of the movie and a plus point of the promotion of the product as well. Within a month of the launch of the intial advertisments and the Baby Lips song which featured Alia Bhatt, 705 of the viewers could recall the brand. Strength: Wide variety of flavours for everyone. Weekness: The lip balms have chemicals and is not natural/organic.
Figure 1. Maybelline Baby Lips Products http://www.jtbeautyoutlet.fi/images/babylips76745.png
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3.4 COMPANY ANALYSIS ColorBar’s strong brand equity gives it a competitive advantage over other industry players. About four years ago products of home-grown cosmetics brand Colorbar were mostly found on the shelves of supermarkets such as Big Bazaar, Reliance Mart and even at kirana stores. Today, one finds Colorbar standalone stores in premium shopping malls. The key strength of ColorBar is its different range of products and the easy availability of the product across India. In the global era of e-commerce and online shopping, when people tend to live busier lifestyles, ColorBar has enabled to keep pace with the technology by offering online shopping as an option to them through their website. They have also tied up with different websites that sell products of different brands under one webpage. ColorBar’s current stage of growth is through building a strong emotional connection with showing they care about how their customers look and by providing a wide range of products to satisy their taste accordingly.
3.5 CONSUMER ANALYSIS ColorBar is a well-known brand in India and it has been building a foundation of trust and reputation with its consumers since the beginning. With the introduction of Berry Kiss lip balm, the brand could be targeting a variety of customers who are extra careful about their skin and lips and are more into natural and organic products. Its major customers lie in the middle class and upper middle class, as the product is affordable with good quality. The primary target audience would be the school/college students from 12 to 23 years old, who are most likely to use the lip balm; and the secondary audience would be women againg from 24 to 28. Lifestyle has a great impact in the marketing strategy of any market. People differ in attitudes, interests and activities, which can affect the goods and services they consume. At the moment consumers are more conscious about their skin and their health as they prefer products that are natural and organic. Color cosmetics are usually not considered good for the skin due to the chemicals. So there is an opportunity to create value for the natural and organic cosmetics. Perhaps new product formulation of natural and organic cosmetic can be used to enter new and growing segments.
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4.0 PRODUCT MARKET FOCUS
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4.1 CONCEPT The concept consists of ColorBar ushering into a new brand extension of natural and organic lip balms. As trends grow, there are more concerns about the skin and health, so the choice from chemical based products change to natural and organic products, therefore the availability of a new distinctive product that is natural and organic, would be considered essential for the consumers need. In term of flavour preferences for lip balms, ColorBar has come up with new experimental flavours such as Watermelon and Berry, Litchi and Berry, Grape and Berry, Pineapple and berry, which will be 100% natural and organic, adding an extra value to the purchase as well as establishing a unique selling point aspect to the company, which is till now only into chemical based products.
3.4 SOCIAL /CULTURAL
4.2 MARKETING AND PRODUCT OBJECTIVES -
Create a brand extension for ColorBar
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To increase the use of natural and organic lip balms in India by trying to satisfy consumers with different flavours of lip balms
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Provide options in terms of variety of new flavours
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Increase brand awareness through the new product and update the brand image
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Achieve profitability within the first year and gain substantial growth rate annually
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4.3 TARGET MARKET Nowadays, the majority of cosmetic products and natural and organic products like lip balms are targeted at teenagers and young adults from 10 – 40 years old due to the fast pace of life of this generation and their want of looking good and pretty all the time. The primary target audience would be the school/college students from 12 to 23 years old, who are most likely to use the lip balm; and the secondary audience would be women againg from 24 to 28. We would also focus more on the middle class and the upper middle class, as the upper class would look for a more premium option of lip balm and the lower class would go for a cheaper local lip balm than the branded one. Lifestyle has a great impact in the marketing strategy of any market. People differ in attitudes, interests and activities, which can affect the goods and services they consume. At the moment consumers are more conscious about their skin and their health as they prefer products that are natural and organic. Color cosmetics are usually not considered good for the skin due to the chemicals. So there is an opportunity to create value for the natural and organic cosmetics. The product would be mainly distributed in local stores, ColorBar’s retail outlets, kiosks and supermarkets at major urban cities like Mumbai, Delhi, Chennai, Bangalore, Pune, Chandigarh, etc. as an initial approach and then gradually expand the distribution to smaller cities and suburban areas.
4.4 POINTS OF DIFFERENCES -
ColorBar Berry Kiss will provide a variety of new and exciting experimental flavours
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100% natural and organic
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Attractive and quirky packaging compared to the other key players in the market
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The price of the product will not to be too high, so that everyone can afford it
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Well-established distribution network at ColorBar stores
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4.5 USP AND POSITIONING There are various USP to this product, one of which would be the introduction of new exciting berry flavours of lip balms. Together with an added value of being 100% natural and organic. It would be a great combination of 100% natural and organic berry flavours as well as consumers satisfaction towards the value of the product. ColorBar Berry Kiss will offer good value in terms of pricing, quantity and quality of the product while stimulating the consumers liking towards the different flavours. Skin and health conscious consumers will also be satisfied with the produect being 100% natural and organic. ColorBar would like to proof that Berry Kiss lip balms could be used as a lip balm for every occasion. Adjectives to describe ColorBar Berry Kiss would be: quirky, fruity, affordable, committed, natural, cool.
HIGH PRICE
LOW QUALITY
HIGH QUALITY
LOW PRICE Figure 2. Brands Positioning
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4.6 BRAND ELEMENTS The Skater Girls Rock font is used in perspective to portray girly, quirky and confident personality that the product is being positioned at, as well as how the color of the lip balm is bold and beautiful after applying it. The selected colour is similar to the color used in the ColorBar branding and website in order to be related to the brand in a certain aspect. A bright background gives a quirky and cool touch to the product and creates good contrast to highlight the logo and other elements and also gives off a more mature vibe while showing a playful and quirky side from the illustration and the logo. Therefore it is not too serious or too childish for the target audience, as we tend to look different from all other packaging of the other key players.
IN COLOUR
IN BLACK & WHITE
PRIMARY PALETTE
COMPLIMENTARY PALETTE
Lip Balm Colors:
Packaging Colors:
#C3323A
#2EB0A1
#93DC72
#02030A
#E5E6E4
#F0853D
#7F25A2
#FFE168
#7DC14E
#F1AE43
#E1DC1E
#EE358B
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#FFF1F2
#FFFFFF #000000
#B5DC5B Figure 3. Brand Elements
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5.0 PROJECT STRATEGY
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5.1 MARKETING PROGRAM Flavour ColorBar will launch 4 different chapsticks, with a range of 4 berry kiss flavours: • Watermelon & Berry • Litchi & Berry • Grape & Berry • Pineapple & Berry
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(b)
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(d) Figure 4. Different Berry Kiss Lip Balm Flavours (a) Watermelon & Berry (b) Litchi & Berry (c) Grape & Berry (d) Pineapple & Berry
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5.1 MARKETING PROGRAM
Figure 5. Packaging According To Flavours
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5.2 PRICE STRATEGY Pricing a new product is a risky task as the price difference between competitors could be crucial in the decision making process of consumers. The pricing strategy for ColorBar is consistent with other players. As high-impulsive buyers of make-up drive this market, there is very little scope of different pricing strategies by major market players. The price should also be affordable as we are aim at the middle class and specifically students and young adults. That’s why it is best to go with affordable priced product with good quality in order to secure market share in a new market. Therefore, the products will be priced at Rs.125/-, which is similar to Maybelling Baby Lips. The value number seems honest while offering a good deal of quantity and flavours. ColorBar’s target audience is the middle class so good value would be most appreciated for this group.
5.3 PROMOTIONAL STRATEGY ColorBar is known to invest in various promoting applications such as outdoor & indoor advertisements and celebrity endorsements. So Berry Kiss promotional strategy would be similarly applied and will be promoted on a large scale as well, including many promotional tools across various platforms. Colorbar is not very active on social media, so we’ll target the social media too, this time.
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5.3 PROMOTIONAL STRATEGY 5.3.1 Social Media
Berry Kiss will be promoting across social media platform: daily engaging contents would be posted on facebook, instagram and twitter; new contests will be run through several platforms as well. Video ads will be uploaded through Youtube.
Figure 6. Facebook Post
5.3.2 Campaign
As Berry Kiss lipbalms are supposed to be a natural and organic lipbalm that is perfect for everyone and to make the consumer feel good about using a natural and organic product, therefore ‘Are you ready to be Berrylicious?’ will be a slogan to go together with the campaign. The whole campaign will be held for around first 3 months to introduce the product publicly for the first time with a secondary slogan followed up ‘Be Berry Beautiful’ announcing its existence, as well as highlighting its good quality of being available and convenient for different occasions.
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5.3 PROMOTIONAL STRATEGY 5.2.3 Advertising
The product and its campaign will be promoted across digital and print media through various T.V.C’s (Will hire a brand ambassador), print ads will be published in leading newspapers and magazines, specifically fashion and healthcare magazine like Femina, Health Cafe, Women’s Health. Advertising banners will be on leading online fashion and health stores. Ads will also be shown on bus stops and billboards across leading cities, inserting the identity into daily life of people. Berry Kiss lip balms will also be undertaking radio promotions and sponsoring shows on air and live events as well as in all of the ColorBar stores.
Figure 7. Banner
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5.3 PROMOTIONAL STRATEGY
Figure 8. Poster
5.3.4 Public Relations
Complimentary basket of goods including Berry Kiss lip balms will be given out to corporate offices, fashion and health bloggers and celebrities to extend ColorBar public relations. There will be sales person distributing free samples at shopping malls and door-to-door method at a personal level to educate consumers about the brands existence and unique quality of the products as well as gathering feedbacks from them.
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5.4 DISTRIBUTION STRATEGY Since Berry Kiss targets middle class and upper middle class sections of people, their target market density will be focused in high urban areas of India. The product will be distributed on a large scale across urban cities on a starting phase and depending upon its growth rate, we will expand it further in the less developed cities. Berry Kiss aims to reach the target market through local stores, ColorBar retail outlets, kiosks and supermarkets in all the major cities as an initial approach and then gradually expand the distribution to smaller cities and suburban areas. As e-commerce is on the rise at the moment, distribution will also be undertaken through online shops throughout India and even international.
Delhi
Indore Ahmedabad
Kolkata
Mumbai Pune
Hyderabad
Goa Chennai Bangalore
Figure 9. Major Cities Of Distribution In India
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6.0 IMPLEMENTATION PLAN
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6.1 INTRODUCTION The entire implementation of the project will be undertaken in a time period of 10 to 12 months, since Berry Kiss will take around 4 – 5 months of production and manufacture to minimize any faults procedure and focus on its value and quality. Provided on the next page is a Gantt Chart, demonstrating a rough idea of all the processes and timeframe that each task would roughly take.
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Update Strategy
Post Launch Plan
T.V.C’s
Print, Ads, Banners
ADVERTISING
Promotional Strategy
Distribution Strategy
Price Strategy
Product Strategy
Packaging
Product Design
PRODUCTION
Sourcing
Budgeting
Scheduling
PLANNING
Product Development
Research
Concept
Team Formation
INITIATION
M1
M2
M3
6.2 GANTT CHART M4
M5
M6
M7
M8
M9
M10
M11
M12
6.3 MONTHLY PROMOTIONAL PLAN According to different festive seasons like Diwali, Christmas, New Year, gift hamper packages and great discount offer will be provided. Also, during the winter season, the demand for lip balms will rise, so great offers will be provided at that particular season as well. Sponsorship will be given during school and college festivals from July to November as well as at fashion events such as Lakme Fashion Week.
6.4 DURING & POST LAUNCH PLAN During the launch, there would be activities including celebrity endorsements and event sponsoring along with launch party in order to create media coverage. The post launch activities would include engaging the audience via social media platforms on a daily basis and gathering feedbacks of the product in order to improve what is still lacking.
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7.0 EVALUATION AND CONTROL
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7.0 EVALUATION AND CONTROL It is important and essential to evaluate every stage of the project, by examining the product growth and strategic analysis, it could help to optimize company’s profit. A monthly evaluation will be conducted to evaluate the store location where it is sold the most and consumer feedback and suggestion. This will enable us to further study the development in the market, flavors and packaging while examining the balance between cost and quantity. If the consumers respond negatively to any aspects of the product, it would require immediate discussion in order to conclude a solution to the issue.
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LIST OF REFERENCES - Colorbarcosmetics.com,. ‘Cosmetic Company In India | Cosmetic Brands In India’. N.p., 2015. Web. 20 June 2015. http://colorbarcosmetics.com/about-us.asp - Indianmirror.com,. ‘Cosmetic Industry, Indian Cosmetic Industry, Cosmetics, Cosmetics Industry, Cosmetic Industry In India, Cosmetic Industry India’. N.p., 2015. Web. 20 June 2015. http://www.indianmirror.com/indian-industries/cosmetics.html - Makeupandbeauty.com,. ‘18 Maybelline Baby Lips To Choose From’. N.p., 2015. Web. 20 June 2015. http://makeupandbeauty.com/18-maybelline-baby-lips-to-choose-from/ - Modi.com,. ‘:: MODI ENTERPRISES::’. N.p., 2015. Web. 20 June 2015. http://www.modi.com/colorbar.html - Modi.com,. ‘:: MODI ENTERPRISES::’. N.p., 2015. Web. 20 June 2015. http://www.modi.com/research-development.html - Slideshare.net,. ‘Social Media Case Study: Maybelline New York India’s Baby Lips’. N.p., 2015. Web. 20 June 2015. http://www.slideshare.net/SocialSamosa/social-media-case-study-maybelline-new-yorkindias-baby-lips - Small Business - Chron.com,. ‘Internal Marketing Strategies In The Cosmetic Industry’. N.p., 2015. Web. 20 June 2015. http://smallbusiness.chron.com/internal-marketing-strategies-cosmetic-industry-80232.html - Software, Palo. ‘Cosmetics Manufacturing Business Plan Sample - Executive Summary | Bplans’. Bplans.com. N.p., 2015. Web. 20 June 2015. http://www.bplans.com/cosmetics_manufacturing_business_plan/executive_summary_fc.php - STYLECRAZE,. ‘Top 10 Make Up Brands In India’. N.p., 2015. Web. 20 June 2015. http://www.stylecraze.com/articles/top-10-make-up-brands-in-india/ UKEssays,. ‘Analysis Of The Cosmetic Industry In India’. N.p., 2015. Web. 20 June 2015. http://www.ukessays.com/essays/marketing/anal ysis-of-the-cosmetic- industry-in-indiamarketing-essay.php
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