Sales and Retail Management
Introduction Jayson & Jayson Company Ltd. is new in cosmetics sector of Bangladesh. At present Jayson & Jayson co. ltd. is doing business with jasper olive oil, jasper tooth paste, jasper soap and jasper face washes. As an extension of its business, Jayson’s management authority has launched a new cosmetics item named “Jasper Fairness Cream”. Since 1990, Jayson & Jayson Company Ltd. has been performing their activities, beginning in Dhaka and then becoming popular in other districts in Bangladesh. Current Market Situation In Bangladesh, there are various types of company (national and multinational) who are offering different types of cosmetics items considering the demand of different types of customers such as lower class, middle class, upper class. Here, I would like to mention different items creams such as – ponds, Tibet, cute, Johnson, fair & lovely, henolux etc. So, here Jayson & Jayson mainly target former market segment of the society. They want to highlight the teenagers, adult and middle aged people whatever their income. In considering sector, as a leader “Unilever Bangladesh Ltd.” is dominating higher market share of 55 percent offering different types of cosmetics per year. Cosmetics made by other national companies such as – Keya cosmetics, Khaleq group, square and others who are offering their activities as a follower currently account for less than 35 percent market share.In spite of the intense competition, Jasper Fairness Cream relies on the numerous strengths, weakness, opportunities & threats which are mentioned in the SWOT analysis. Opportunities and Issue Analysis The overall evaluation of a company’s strength, weaknesses, opportunities, and threats is called SWOT analysis. SWOT analysis helps to explore the areas of possible changes in marketing activities. A brief discussion of Jayson & Jayson’s internal and external environment is as follows:
Internal Environment Analysis Every business organization needs to analyze its internal capabilities for developing strategy that id in line with its mission. To fulfill its mission, Jayson & Jayson is committed to capitalize on its key strengths and overcome its major weakness. The strengths and weakness of Jasper Fairness Cream is summarized below: Here, there are broad microenvironment factors that affect Jasper fairness cream. Major strengths: •
Use of modern technology, wonderful packing and using balancing formula
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It is basically for black or semi black skin,
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Availability of capital,
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Customers loyalty,
Major weaknesses: o Inefficiency in proper distribution channel management, o It may suffer from geographic coverage, o It is copied by the other competitors. External environment Analysis Monitoring the trends of micro and macro environment forces is also key concern for management of organization to avoid the major threats and gain advantages offering opportunities. In addition, there are broad micro environmental factors that affect Jasper Fairness Cream. Opportunities o Increasing the demand of the Jasper Fairness Cream, o Expending awareness of the people toward quality items, o Increasing demand for the cosmetics shop not only the city also other areas, o Availability of raw materials, Threats o Introduction of new and advance technology, o Imposition of higher tax rate on small business enterprise,
o Possibility of economic depression o Legislation to reduce the numbers of customers. Objectives Jayson & Jayson’s objectives are: o Earn annual rate of return on investment of 10 percent after taxes over the next five years. o Produce sales volume at least Tk. 15 crores, Tk. 20 crores and Tk. 25 crores in “Jasper vanishing cream” respective over three years. o In other side, produce sales volume at least Tk. 12 crores, Tk. 15 crores and Tk. 20 crores in “Jasper moisturizing cream” respective over three years. o Sell other products such as jasper face wash and jasper soap. Target Customer Jayson & Jayson Co. Ltd. will produce “Jasper fairness cream” are two types based on the seasonal variation in winter and summer. Our retail customers areo Teenagers o Adults o Middle Aged Customers. Marketing and Selling Strategy The company has decided to market “Jasper fairness cream” all over the country. It considers both sides: the customer’s side and the business side. On the customer side, the target market is teenagers- adults- middle-aged. On the business side, the target market is small to large size retail shops that want to help their products in touch. Jayson overall marketing strategy will be create an image of offering the highest quality product all over the country. Customers will be reached through advertisement such as magazines ads, newspaper ads and through TV program. Positioning strategy Customers typically choose products and give them the greatest value. It will introduce better quality product at lower price for a given level of performance.
It likes to position in the customer’s mind- “A feeling of warm touch”. Product Strategy Jasper fairness cream will be manufactured by the high ingredients. It is packed by the musical or cartoon art paper. The price of this product is standard. Expired date and manufactured date will outline the validity of the product. It outlines “Best use before 24 months from date of packing”.
Product description There are mainly two types of “Jasper fairness cream” based on the seasonal variation in Bangladesh. These are as follows: o Jasper vanishing cream (oil control system), o Jasper moisturizing cold cream. Jasper vanishing cream is unique oil control system by the following way. Jasper vanishing cream reduces excess oil from your skin through a two way of action: 1. Its unique oil-control system helps regulate oil secretion. 2. Its unique micro sponges absorb excess oil. Major Key ingredients of Jasper vanishing cream are as: •
Polyethylene glycol,
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Vitamin B3,
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Triclosan,
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Dimethicone,
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Methyl,
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Paraben,
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Propyl paraben,
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Disodium EDTA,
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Perfume,
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Aqua.
Results Fresh, oil-free, matte face. Jasper’s moisturizing cold cream: Jasper moisturizing cold cream is basically used in winter season. It depends on the variation skin of the different people. Because it contains1) Vital beauty oils which penetrate deep to provide complete nourishment, 2) Natural moisturizing which offers your skin from within and help prevent dryness. 3) Feel the difference from the very first time you use it. It gets absorbed easily by your skin to relieve you of dryness instantly. Major keys ingredients of Jasper’s moisturizing cold cream are as follows:
Light liquid paraffin oil(LLPO)
Heavy liquid paraffin oil(HLPO)
Glycerin,
Lecithin,
Sunflower oil,
Perfume,
Methyl paraben,
Propyl paraben,
Disodium EDTA,
Aqua.
Results For soft, younger looking skin. Pricing Strategy Jayson & Jayson Co. Ltd. will use cost-based pricing strategy. In case of cost plus pricing, it will add a markup to the cost of the product. Different prices for different size. In market consumers will be offered two types of sizes in every item. They are as follows: Jasper Vanishing cream (oil control system)
Small(30 g)— Tk. 26
Large(80 g)- Tk. 75
Jasper moisturizing cold cream
Small(25 g)- Tk. 25
Large (70 g)-Tk. 55
Distribution Strategy Jayson & Jayson will use marketing in termedoaproes to bring jasper trainers cream to the market. It will use a distribution channel like as Manufacturer---------- Retailer / Wholesaler-------------- Consumer. In the city area like Dhaka the product will be distributed by using small rickshaw van for commission basis. One sales representative will select for every rickshaw van who delivers the product to the wholesaler or retailer. He or she will have well trained-up. Marketing Mix Strategy Marketing communication mix includes advertising, sales promotion, personal selling, public relation and direct marketing. The company will undertake an advertising campaign to build brand awareness and differentiate the product from competitors. Apart from TV advertisement, the company also advertises in dailies. Marketing Research The company will undertake marketing research to measure brand awareness before during and after marketing campaign, study consumers’ satisfaction and identify opportunities for future product development efforts. Sales target and forecasting The Company attained a good position according to market share of cosmetics.Jayson & Jayson expends approximately Tk.0.75 crore per month in its promotional activities expecting a greater sales volume. Promotional budget Sales Sales of previous 6 months
Tk.0.75 crore/month Tk.3-5 crores/month About 2.5 crores/month
Jayson & Jayson forecasts that within forthcoming 6 months, it will attain 20% of the total market share. The Company considers the following issues in the time of sales forecasting:
Promotional budget
Competitors’ promotional activities
Production capacity
Industry growth
Previous sales data
Financial condition
Contingent factors.
Prospecting The planning work, which is essential in eliminating calls on nonbuyers, is called “prospecting”. Improvement in prospecting is one way to stretch productive selling time. Retailers are the customers of Jayson & Jayson. The company tries to place their products in the shelf of retailers who sell cosmetics products. So, it is easy to search customers of cosmetics. Prospecting is therefore easy in this industry. Jayson’s distribution channel is as followsManufacturer
dealer
retailer
customers
Sales growth Jasper Fairness Cream is a newly launched product in the market. It has decided to calculate its growth in every 6 months. In the previous 6 monthsThe industry growth is
12%
Growth rate is
7%
Controlling and feedback function The feedback comes to the organization in the following wayConsumers
Retailers
distributors
Jayson & Jayson Company Ltd.
The decision makers from the central office controls all types of activities using regional officers and distributors Action Programs The company will carry out its marketing strategy and achieve its objectives through a variety of scheduled programmes. At the beginning stage Jayson & Jayson to initiate Tk. 500000 trade sales promotion to educate dealers generate excitement for the product launch in the next year. As a part of this, trade promotions the company takes the following initiatives:
Leaflet distribution to consumers’ homes,
Newspaper advertisements will be purchased during the first
three months of business until an image is built. 
The Company will offer discounts to recreational groups such as adults, teenagers or middle-aged people.
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Promoting products for an introductory price at its Grand opening.
Implementation & Control The company will maintain tight control measures to closely monitor quality and consumer satisfaction. This will enable the company to react very quickly in rectifying any problems that may occur. For control purpose, the plan allows for month-by-month comparison of actual versus projected sales and expenses.