Project on Hair Spray

8/9/2019 Project on Hair Spray

1/27

Introduction

Launching a product is an exciting adventure since itgives us the complete responsibility and freedom to comeup with a product which is unique, fresh and also workablei.e. practical. There are so many ideas and so many pointof views about each of those ideas, therefore it was achallenge to us to stick to one product and not to getcarried away with fantastic and intriguing albeit a bit wildand most of the times impractical ideas.

A first hand experience in what actually is involvedwhile actually bringing a product to the market has madeus appreciate the hard work and complexity of theprocess. We have made a sincere effort in coming up witha product which we think is interesting and suitable for thePakistani market of today. Hair care industry is a cash cowsince people of both sexes and of all ages are very muchconscious about the way their hair looks. Even in remote

places people spend good money to buy shampoos andhair colours and what not.

This has prompted us to come up with the idea oflaunching a Hair straightening spray. This project will helpin understanding the details about the product in gravedetail. So here is a brave attempt on part of us to bringout something new and which we think is interesting andfun!!!

1


2/27

Instant hair curling cream:

Most Pakistani women have slightly wavy and curlyhair so demand for such a product will be very low.

Also beauty parlors offer hair perming and curlingtreatment.

Instant teeth whitening cream:

There are many toothpaste which promiseswhitening effect so people would not necessarilygo for a product which exclusively gives a

whitening effect.

Finally we decided upon a hair-straitening product.Since we wanted something, which wouldimmediately appeal to, women and which wouldhave a high demand in the market.

Final product selection:

A revolutionary hair straightening spray.

Why Hair Care Products?

The Hair care industry today in Pakistan is a multimillion dollar industry, this is because hair is one themost important part of our personality. People areready to spend big money to have that perfect coiffurelook. Industry biggies like Proctor & Gamble, Hindustanlever, LG, Loreal etc have all brought out their basketof hair care products. It can therefore be said that the

2


3/27

hair care industry in not only flourishing but also hugelyprofitable.

Why the brand name Organa?

We have evolved the term organic into Organa.Organa hopes to portray and represent products whichare bio friendly and directly derived from nature. As allthe products consist of only naturally occurring herbs,plants, minerals and other derivatives with little or nochemicals added to it has become our priority to bottleour image into a brand name which sounds fresh,alluring and also environment friendly.

Why Hair Straightening spray ?

80% Pakistani women have curly & wavy hair. Notonly that it is just human nature to want somethingwhich we do not have. So even though curly soft hairlooks great within itself people especially womenwant silky straight hair. Also the reason maybe thatstraight hair is much more easy to manage thancurls.

Another point of impact on our outlook is the rapid

exposure to the western culture. We see it on TV,read foreign magazines, see English movies etcwhich show Caucasian women and men who mostoften than not have Straight hair. We almost considerstraight as a sign of true beauty and allure. Peopleare almost obsessed with the idea to look and adoptanything which represents western culture. That isreally what has made the fairness cream industry sohugely profitable.

3


4/27

We can therefore safely say that the hairstraightening spray which gives immediategratification(noticeable result within only 15 minutes)is bound to be a resounding success.

U.S.P. of Organa hair straightening serumspray:

The U.S.P of this product is that it gives silky straighthair to even the longest and curliest of hair within 15minutes flat its that quick! Not only that it isextremely easy for a person to use. All you can do is

spray; comb and you have perfectly straight hair.

WhyOrgana a better choice over others?

Beauty Parlours, provide services like ironing andstraightening with lotion and creams. But suchtechniques are not only expensive but very harmfulto the hair. The creams and lotions have chemical inthem, which strips the hair of its natural oil making itrough and brittle. Regular ironing & use of creamsand lotions makes the hair thin and they start to fall.Arent this reasons enough to opt for Organa

4


5/27

Organas products are environment friendly & madeof plants and herbs and therefore are delicate andnurturing towards the hair. The hair spray consists ofa serum, which is specially formulated to make even

the curliest hair satiny straight without harmingthem.

The enzymes, which make the hair straight, is

extracted from seaweeds found on the northerncoast of Japan that has a unique and special qualityof unlocking & relaxing the kinks in the hair shaftwhich is responsible for making the hair shafts

straight.

Evaluating Organa:

5

To launch & rapidly gain market share & profit


6/27

No competitor.

Immediate result.

Affordable rate.

Our target market:

Market segmentation based on 3 groups:

6

Growing class of womenwho are aware anddesire of lifestyleproduct.

Growing trend among

SWOT

Strengt Opportuni

Weakness Threat

New product.Targeted for only

women.Start from zero market

share.Target people from

middle class and upper

After our launchthere is a threat ofother reputedcompanies in

launching similar


7/27

Office going women, housewives.

People related to beauty industry, or fields where

physical presentation is very essential.

College going girls and boys within the age group of15-22, as well as other students

Bases for segmentation:

Demographic segmentation

Gender:

Our target is mostly women and young adults.

Income

Our product is targeted towards people belonging tothe middle and above income classes. Since our product is

essentially a lifestyle and cosmetic product. We havetentatively priced it at Rs 126.50. for an 80 ml pack.

Psycho graphic segmentation:

Personality and life style:

Our product is essentially a cosmetic and luxuryproduct. Therefore people aspiring for enhanced

lifestyle will go for it.. Organa products projectthemselves as a statement of style and desireinducing.

Women and men both, who are working & /or arein a position where there is high social interactionwill find an appeal to our products.

7


8/27

Four Ps of Marketing Mix pertaining to Organa

Product

Organa Hair Straightening Serum Spray

8


9/27

Product features:

Organa hair straightening spray is a uniqueproduct specifically targeted towards Pakistaniwomen. Our research has showed us that 80% ofPakistani women have wavy and curly hair. Andmost women would like to have silky straight hair.

Our product gives the result of straight hair in just

15 minutes. It also contains sunscreen to protecthair from the harsh sunrays. Organa hairstraightening spray can be used on all hair typesas it is water based, & its special hydroxyl serumwill keep your hair hydrated up to 48hours. Notonly that it has 99.99% pure stabilized Aloe Veragel extracts which hydrates, nourishes andcontrols dandruff effectively.

All you have to do is spray, comb and wallah! Yourhair is satiny straight!! No other product can giveyou such dramatic result in such a short time. Soconsider going to the beauty parlour for hairrebonding or ironing as history Organa hairstraightening spray will give the parlour effect inone fourth the time and is much more costefficient, not to mention enhancing the texture andhealth of hair. So stop burning and damaging yourhair by using expensive chemicals and ironing anduse Organa for natural, beautiful and nourishedstraight hair.

Organa hair straightening spray is completelynature based with extracts from plants, herbs andnaturally occurring minerals and salts. Ourproducts have been never tested on animals. Ourproducts do not contain any comedogenicsubstances or lonolin and results have shown that

9


10/27

even people with hypo allergic and sensitive skinscan use our hair care range.

Available in 4 Fragrances: Tangy Pineapple, Fresh

Lemon, Chocolate Delight & Sensuous Jasmine.

Design:

Organa hair straightening spray has beenpackaged in simple slick transparent glass bottles,which are ultra light but wont break easily sincepolymer silicon fiber has been mixed with it to addstrength.

The spray bottle has a clean square shape with

rounded edges keeping in mind that it appealsaesthetically. The cap is silvery white and shapedas rounded cut cylinder, and is made of tin. Thebottle measures 14 cms in height and 8 cms inwidth. Each spray flask contains 80ml serum. Inorder to maintain the clutter free sensual look onlythe brand name appears on the bottle with themanufacturing date and other essentials printedon bottom side.

Punch line:

Organa: For the woman of perfection.

Price

80 ml hair straightening serum spray 126/-

10


11/27

Price:

We intend to keep the price of our hairstraightening serum spray constant atleast untilwe achieve the break even target(Price-126.50/80ml). From our tentative analysis we havepredicted that it will take 13 months to breakeven.

Levels of margin:

For each unit:

Estimated production cost(manufacturing)- Rs 62XYZ company

Organa- Rs 65

(15%Profit+costs)

Distributors Rs 87.50(5%)

Stockists Rs 91.85(5%)

Retailers- Rs 101(25%)

Max Retail price Rs 126.50/-

11


12/27

Place

We have considered 3 tier distribution channel system.

Channels of distribution:

Manufacturer Organa Distributorsstockists

Retailers Consumers

Distributors: We will be considering 4 regional

distributors for the north, east, south and west Zone. Eachregional distributor will be assigned the responsibilities ofhandling the key urban and sub- urban areas in theirrespective zones while covering the vital cities and townsin particular.

Stockiest: The distributors will be assigned the task toselect appropriate whole stockiest in key areas and cities

so as to achieve deep and extensive penetration in themarket. Since our product is of mass nature it becomesimperative for us to have wide coverage and be easilyavailable.

Retailers: Organa is a cosmetic lifestyle product. Wewant to make sure that people have easy accessibility toour product. All the major chemists and drug stores,

cosmetic stores, beauty salons and parlours will bestocking our products.

12


13/27

Promotion

Promotion is a paid form of mass communicationusing a media. The media which we will be using tolaunch and propagate the awareness of our product are asfollows:

Print: newspapers, magazines, hoardings andbillboards.

Newspapers:

During the first 3 months major dailies across Pakistansuch as Times of Pakistan, Navbharat times, Hindustantimes, DNA etc. will carry prominent eye catching visualadvertisement to create awareness and arouse interest inOrganas products.

Concurrently we will also plan to display our products

advertisement in 3 major magazines such as Femina,Filmfare and Womans Era during the 1st and 2nd monthafter launch of Organas hair straightening spray.

Hoardings:

Most of the major cities will carry a display ofOrganas products on hoardings at key points during theinitial 3 months. Key areas such as near shopping malls,railway stations, cinema halls, highways with heavyvehicular traffics will be covered.

In Mumbai places such as near Bandra, Colaba,Nariman point etc. where it could be prominently seen,

will be used for hoardings and billboards.

13


14/27

Public relations:

For a new lifestyle and cosmetic product it is veryimportant to have positive response from the media or the

concerned people whose view is considered important.Therefore we will give great stress on creating a sublimerelationship.

Electronic media:

We will be using television and radio to a large extentso as to get maximum exposure and create rapidawareness. The channels which we will be considering to

air our advertisement are Star One, Star World, Star Plusand Sony, the time slot will be usually at 8 to11 and onholidays and Sunday 10 to 2:30 in the afternoon and inthe evening after 7:30 pm.

For the 1st month daily repetitions during the selectedprime times will be done.

Our Budget for Promotion: 22.50 crores

Media used will be Television, newspapers, magazines &hoardings cum billboards.

Cost of making an advertisement with our Productambassador photo shoot along with other thingscomes to 2 crores

Average cost per month will be 16.5 lakhs

30 sec advertisement cost on Sony during Prime time : 1lakh

15 sec advertisement cost on Star Plus during Primetime : 1 lakh

30 sec advertisement cost on Star One during Primetime : 80 thousand

14


15/27

30 advertisement cost on Discovery Travel & Livingduring Prime time :

75 thousand.

10 sec advertisement cost on all channels that we haveconsidered is between 25 to 28 thousand for prime time& 20 thousand for the rest of the day.

Full Page Colour Advertisement in Femina & Filmfaremagazines is 1 lakh each

Full Page Colour Advertisement in Womenss Era is 70thousand

Hoardings near Worli Sea Face, Western ExpressHighway, Queens Necklace is Rs 25000 to 40,000 perweek.

Promotional budget for 1st month : 3 crore

Fixed cost for making the television Advt. and press

advt. 16.5 lakh

Full Page Colour Advertisement in Femina & Filmfare : 2lakh

A3 Size colour advt. in TOI, Hindustan Times &Navbharat Times : 3.5 lakhs

Hoardings and Billboards: 8 lakhs

TV Promotion:

On Sony, Star Plus, Discovery Lifestyle & Living and StarOne from Monday to Saturday.

Between 7.30 pm to 11.30pm

Two 30 sec ads and four 15 second ads. Daily

Five 10 sec ads during 2 pm to 6 pm - Daily

15


16/27

Promotional budget for 2nd & 3rd month : 2 crore

Fixed cost for making the television Advt. and pressadvt. 16.5 lakh


A3 Size colour advt. in TOI, DNA: 2 lakhs


TV Promotion: On Sony, Star Plus, Discovery Lifestyle & Living and StarOne from Monday to Saturday


Three 15 second ads. Daily Five10 sec ads during 2 pm to 6 pm - Daily

Promotional budget from 4th month : 1.5 crore

Fixed cost for making the television Advt. and press

advt. 16.5 lakh



TV Promotion:

For Sony, Star Plus, Discovery Lifestyle & Living and StarOne Monday to Saturday.

16


17/27


Five 10 second ads. Daily

Between 2 pm to 6 pm

Three 15 sec ads. - Daily

Brand Ambassador : Iman Ali.

Reasons for selection:

Iman Ali as we all know is an renowned actress, TVpersonality and a very outgoing and intelligent woman.She represents todays phase of modern, confident andself assured working Pakistani woman who is not onlyindependent but also has the power to make her owndecisions and has the earning capacity to back it. She is

just appropriate as a brand ambassador for Organa whichalso stands for a strong but feminine Pakistani woman.

Organas products cater to the demands and desires oftodays Pakistani lady.

Organa has taken a giants step towards providing asafe and effective products which are affordable and offlawless quality for the deserving Pakistani femme. Andtherefore we consider Iman Ali as an advocate andambassador for Organa.

Iman Ali has naturally curly hair which she finds verydifficult to manage because of excessive tangles, also thetexture of her hair is quite rough. The saving race of herhair is that they are very thick, luscious and naturallyebony black in colour.

Our brand ambassador Mrs. Iman Ali has previouslytried out various hair straightening techniques such as

Japanese thermal conditioning system, hair straightening

creams and lotions and has to undergo regular hair ironingas part of her makeup regime. But all these processes had

17


18/27

left her unsatisfied since she suffered serious hair loss,premature graying and her hair had become excessivelydry and rough. But now she is an ardent fan of Organashair straightening product. Not only that, she does not

have to worry anymore about hair damage or hair losssince all the ingredients in our spray are natural andtested for hypo allergies.

Competitors analysis:

As such Organa does not have any direct competitorwhen it comes to hair straightening serum. To achieve thestraight hair look one has to avail, to the beauty parlourservices like hair ironing or permanent hair straighteningusing creams and lotions, use chemical filled hair spraysetc. The major disadvantages is that, such techniques mayneed longer application time i.e. up to an hour or more,also such techniques are very expensive.

Beauty parlours;

Permanent hair straightening which is ranged at Rs3000/- . The time taken is approximately 4 hours.

End Result:

Straight hair which lasts upto 4-5 months or until new hairgrowth occurs.

Adverse effects:

18


19/27

Extreme dryness, severe split ends, hair does not actuallybecome very straight, lack luster hair.

Wellas Hair straightening cream:

The time taken for straightening the hair is 2 hours and itcosts Rs. 500/- for 100 gm pack , one pack can be used forshoulder length hair.

End Result:

The application process lasts for nearly 2 hours. And

after all this time the hair does not become actuallystraight as there is a slightly perm look. the degree of hairstraightness depends upon the beauticians own skill.

Such a treatment makes the hair rough, dry, frizzyand hair breakage is a very common problem. The effectof this treatment lasts for 2 to 3 months and takes a longtime for the entire effect to ware off. During that periodthe looks not only brittle and rough but is actually

sensitive.

Hair ironing:

19


20/27

Ironing is done with a special hair iron which costsanywhere above 1800. The same process is also done in abeauty parlour.

End Result:

Ironing the hair takes around 1 hour. The effect does not

last long as the hair comes back to its natural state aftergetting wet. Heat treatment on hair can be very harmfulsince there is a chance of follicles getting burnt. Also thehair becomes excessively dry and lifeless after regularuse. The most damaging effect on hair due to ironing isthat the hair growth becomes very slow

20


21/27

Financial implication of launching Organa at allPakistan level:

Estimated budget required for launching Organas hair

straightening serum spray

85 crores

Allocation of resources:

Estimated cost for production of one unit:

85 crores

Shares

30 crores

Loans

50 crores

Own assets

10 crores

Reserve5 crores

Unreserved25 crores

BanksIDBI, ICICI

Financialinstitutions

85

crores

Reserve

5crores

Production

(Manuf.)25

crores

Promotion

22.5

crores

Rawmateri

alpurcha

sed8

crores

Lab

expense8

crores

Office

&admin.

7crores

R & D5

crores

Transport

ation andother

expenses

4 crores

21


22/27

Particulars Rs

Bottle 3

Nozzle and tube 1

External packaging 1Cap 1

FormulaSerum, preservatives etc.

15

Taxes and other duties 10

Salary and wages 5

Raw material 4

Transport 10

Storage and handling 3

Administrative overhead 4

Factory overhead 3Other expenses 2

Total 62

Estimated production cost(manufacturing)- Rs 62XYZ company (unit cost- 62 + margin- 3Rs = 65)

Organa- Rs 76.50

(15%)

Distributors Rs 87.45(5%)

stockist Rs 91.80

(10%)

Retailers- Rs 101

(25%)

Max Retail price Rs 126.50/-

At the time of production the first decision to makeis to whether to have your own production unit bysetting the plant by buying land, machinery, employinglabour etc. or to hire a company who will manufacturethe products for you.

22


23/27

Organa is launching a totally new product and withno predecessors it is very difficult to forecast whetherthe product will be success or not. In such a situationthe company would be playing safe by employing a

pharmaceuticals company to manufacture it. Theadvantage of hiring another company is that even ifthe product fails the fixed costs incurred by havingland, equipments etc is removed. Also after carefulassessment Organa has decided upon a pharmacompany situated at Silvassa (Gujrat).

*Estimated BEP sales at unit cost of 87.45 Rs

BEP Month Estimated sales Revenue1 75,000 65,58,7502 1,50,000 1,31,17,5003 2,50,000 2,18,62,5004 3,75,000 3,27,93,7505 5,00,000 4,37,25,0006 6,50,000 5,68,42,5007 8,00,000 6,9,60,0008 9,50,000 8,30,77,500

9 10,50,000 9,18,22,50010 12,00,000 10,49,40,00011 13,50,000 11,80,57,50012 14,00,000 12,24,30,00013 14,50,000 12,68,02,500

BEP

13months

1crore (Approxsales)

80crores(approx

.)

Average sales to be done per month will beapproximately 70,000 units to break even in 12months..

23


24/27

Future plans:

Organa, Pakistan has exciting plans for the future. Assoon as the company gains a market recognition and itsreputation for providing quality and value for moneygoods and services, and no doubt it will- Organa plans to

launch a specialized hair styling and sculpting gel. Here isa peek into this super fast and amazing product of worldstandard quality.

Because.Todays modern women and men like to have defined

and attractive hair style, depending upon the occasionpeople go for sober smart look for the office, a spiky orsoftly curly hair for an evening out or may be a dramatic

to a wild party!

Organas sculpting gel is therefore a perfect productto give whatever look one wants, and whenever onewants. All you have to do is work a liberal quantity of gelthrough hair and then proceed with the desired hairstyle;wait for five minutes before combing. You will then have aperfect hairstyle which can last up to 15 hours, withoutmaking hair look sticky, greasy or bristly and the final lookis fresh and natural without damaging the hair.

Organa Styling and Sculpting Gel

Design:

Both Organa hair straightening spray and Organastyling gel have been packaged in simple slick

transparent glass bottles, which are ultra light but wont

24


25/27

break easily since polymer silicon fiber has been mixedwith it to add strength.

Packaging:

Organa styling gel has been packaged in simple slicktransparent glass bottles, which is ultra light but wontbreak easily since polymer silicon fiber has been mixedwith it to add strength.

Organa styling gel is bottled in a clear transparent glasstub with a diameter of 14 cms and height of 9cms. 75mlof gel is packed in each tub. The cap made of tin issilvery white with a thin silvery line runningdiametrically a cm above the cap end. Similarly the tubis ultra light made of special glass infused with polymer

silicon fiber to add strength and reduce brittleness. Thebrand name and product name appears on the tubwhereas manufacturing date and other essentials areprinted on bottom side.

How it works:

Tried to use any hair styling products lately? How doesyour hair feel when you touch it after some time?Maybe bristly or coarse or really sticky and brittle totouch??? Well then, now your problems are overbecause of Organas styling and sculpting gel. Unlikeother products it does not have any smell and is nongreasy. It has 99.99% pure & stabilized Aloe Veraextracts for dandruff control and for adding that extrashine and gloss and therefore completely safe on all types ofhair. Not only that it gets absorbed quickly leaving your haircompletely tangle free, with no residue what so ever,but you will have your desired style which looks natural,fresh and lustier than ever before

25


26/27

Just work a liberal quantity of gel through your hair and

style in desired fashion, wait for fifteen minutes andcomb (optional).

Ingredients:

Organa styling gel contains omega 3 enzyme for giving arich natural look along with Aloe Vera and activevegetable extracts for giving moisture and vitamins. Notonly that, our styling gel has sunscreen block of SPF 40which protects hair and keeps it looking silky and full of

health.

Conclusion

Marketing management is one of the most significantaspect while launching a product as well as conductingday to day business. It can make or break a product andeven the organization.

Marketing management has various aspects to itwhich need to handled carefully in order to get the desiredresult. And even though it is an ancient art it is stillpracticed today albeit with new techniques and methods.

26


27/27

We have tried to put together a product by using thevarious tools of marketing. In the process we have learntthe practical use of the study of Marketing management.

In the end, from our point of reasoning, we would liketo say that Organa, the brand stands for enduring beauty,confidence and perfection with the perfect blend of goodquality, sensible pricing and out standing results.

Therefore,

Organa is For the Woman of Perfection.

OOOOOOOOOOOOOOOOOO

Documents

Project on Hair Spray