A BUSINESS MARKETING PLAN FOR A COSMETIC COMPANYReview of Movit products limitedBYTWINOMUHANGI ROSEABSRTACTThe major goal of this marketing plan is for helping Movit’s founder to discover whether or not the marketing plan is possible or not. The plan layout consists of these elements: company summary, description of the company, and marketing strategy. This marketing plan is acritical venture for Movit Products limited.
Marketing plan includes the role of advertising in the business, a thorough understanding of clients and rivals and the improvement of competitive advantage. The paper’s important points are the process with the aid of which Movit wants to comply with in order to improve its marketing and that which can be applied to generate profits for the company. The advertising exercise of a profitable company represents a non-stop effort to adapt itself to the dynamic elements of advertising and marketing environment, to re-evaluate and capitalize on the opportunities, primarily based on a direct relation with its internal resources. One fundamental importance of the plan is the company’s understanding of their objectives, the knowledge of administration skills for a number of marketing mix components in a consistent plan.Purpose – The reason of this paper is to take a look at the promotion and marketing of skin care and hair care products, by way of Movit.
Thus, the product, its target market and competition are examined, a SWOT analysis is performed and the marketing mix is analyzed.Research Methodology – Since the goal of this paper is to find out and to examine the advertising and promotion practices of the company, the case finds out about method was once favored due to the fact its indispensable attribute is the focal point on a particular event. It will have to examine the promotion and advertising and marketing strategy of Movit products in Uganda.
Thus, it can supply a vital insight in the Movit quarter and come to be a beneficial tool for managers in this sector.Keywords: Pricing, marketing and advertising, distribution channels, target markets, SWOT analysis and PESTEL analysisTABLE OF CONTENTS TOC o “1-3” h z u ABSTRACT PAGEREF _Toc505337022 h iiEXECUTIVE SUMMARY…………………………………………………………………………………………………………………………… iii1. INTRODUCTION……………………………………………………………………………………………………………………………………11.1 Research Methodology………………………..
..………………………………………………………………………………………… 11.2 Company description ………………………………………………………………………………………………………………………. 2 1.2.1 Product description …………………………………………………………………………………………………………………… 21.3 Company history ……………………………………………………………………………………………………………………………… 21.
4 Movit Products Limited’s mission, objectives and goals …………………………………………………………………. 3 1.4.1 Company objectives……….…………………………………………………………………………………………………….….
3 1.4.2 Financial goals…………………………………………………………………………………………………………………………. 4 1.
4.3 Non-financial goals ………………………………………………………………………………………………………………… 41.5 Core competencies …………………………………………………………………………………………………………………..
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.…. 4 2. MARKETING STARTEGY ……………………………………………………………………………………………………………………… 5 2.1 Situational analysis ………………………………………………………………………………………………………………………… 5 2.
1.1 Strength …………………………………………………………………………………………………………………………………… 5 2.1.
2 Weaknesses ……………………………………………………………………………………………………………………………. 6 2.1.3 Opportunities ………………………………………………………………………………………………………………………… 6 2.
1.4 Threats …………………………………………………………………………………………………………………………………… 7 2.2 PESTEL Analysis ……………………………………………………………………………………………………………………………… 8 2.
2.1 Political ……………………………………………………………………………………………………………………………………… 8 2.2.2 Economical ………………………………………………………………………………………………………………………….
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9 2.2.3 Social ………………………………………………………………………………………………………………………………………… 9 2.2.4 Technological …………………………………………………………………………………………………………………………….
92.3 Competitors in the cosmetic market ………………………………………………………………………………………………. 92.4 Competitor analysis …………………………………………………………………………………………………………………………
92.4.1 NIVEA ……………………………………………………………………………………………………………………………………… 10 2.4.
1.1 SWOT analysis ……………………………………………………………………………………………………………. 10 2.4.1.
1.1 Strength…………………………………………………………………………………………………………………. 10 2.
4.1.1.
2 Weaknesses …………………………………………………………………………………………………………… 11 2.4.1.
1.3 Opportunities ………………………………………………………………………………………………………… 11 2.4.1.
1.4 Threats …………………………………………………………………………………………………………………… 12 2.4.1.2 Target Market ………………………………………………………………………………………………………………… 12 2.
4.1.3 Marketing strategy ………………………………………………………………………………………………………….
13 2.4.1.3.1 Product………………………………………………………………………………………………………………………. 13 2.4.
1.3.2 Pricing strategy ………………………………………………………………………………………………………… 13 2.4.1.3.3 Distribution strategy ………………………………………………………………………………………………… 14 2.4.
1.3.4 Promotional strategy ………………………………………………………………………………………………. 14 2.4.2 SAMONA ……………………………………………………………………………………………………………………………….
15 2.4.2.1 Goals ……………………………………………………………………………………………………………………………… 16 2.
4.2.2 SWOT analysis ………………………………………………………………………………………………………………. 16 2.4.
2.2.1 Strength ………………………………………………………………………………………………………………….
16 2.4.2.2.
2 Weaknesses …………………………………………………………………………………………………………… 16 2.4.2.2.3 Opportunities ……………………………………………………………………………………………………….
.. 17 2.4.2.
2.4 Threats …………………………………………………………………………………………………………………… 18 2.5 Customer analysis ………………………………………………………………………………………………………………………. 18 2.
6 Target market ……………………………………………………………………………………………………………………………… 193. THE MARKETING MIX ………………………………………………………………………………………………………………………. 20 3.1 Product strategy ………………………………………………………………………………………………………………………… 20 3.2 Distribution strategy …………………………………………………………………………………………………………………. 21 3.
3 Promotional strategy ………………………………………………………………………………………………………………… 21 3.
3.1 Advertising ………………………………………………………………………………………………………………………… 22 3.3.2 Sales promotion ………………………………………………………………………………………………………………… 23 3.4 Pricing strategy …………………………………………………………………………………………………………………………. 244. MANEGEMENT AND ORGANIZATION STRUCTURE ………………………………………………………………………..
. 24 4.1 Organization structure ……………………………………………………………………………………………………………….
265. IMPLEMENTATION …………………………………………………………………………………………………………………………. 276. EVALUATION AND CONTROL ………………………………………………………………………………………………………….
.. 28CONCLUSION …………………………………………………………………………………………………………………………………… 30REFERENCES ……………………………………………………………………………………………………………………………………… 31APPENDIX …………………………………………………………………………………………………………………………………………… 33EXECUTIVE SUMMARYThis marketing business plan for Movit Products Limited has been created by Ms. Twinomuhangi Rose in a pretext of creating strategies to secure additional funding for growth and to inform employees of the company’s current status and direction.
Although Movit Products Limited was launched more than 17 years ago, the firm has experienced greater-than-anticipated demand for its products, and research as shown that the target market of beautification saloons tend to opt for other beautification products on the current market scene other than those produced by Movit Company, Many other cosmetic companies are also interested in extending their product line as well as adding new product lines. Thus, Movit Products Limited plans to explore opportunities for online sales or online marketing more compared to interpersonal or sales executive marketing. The marketing environment has been very receptive to the firm’s high-quality cosmetic goods with different brand names like baby junior Jelly for kids and slogans that reflect the interests of different age groups enthusiast to its products around the country.
Over time, Movit can increase its distribution, offer new products, and win new customers. This plan can learn for an anticipated period of at least 5 years.INTRODUCTIONResearch methodologySince the purpose of this marketing plan is to examine the marketing strategy of the company. Since we are focusing on how the company does its marketing. The case method approach is applied where I shall carry out an interview with a number of people in the sector or focus on a particular group of people though interviews provide very different information which may be biased at some point. The sampling a quantitative approach will be applied for the purposeful sampling because it allows the collection of information within rich (Cresswell, 2007). There different types of interviews that I carried during the sampling with the focus group.
In additional, the use of interviews as a data collection may begin with the assumption that the participants’ perspectives are clearly made, understood by the interviewer and important to this paper and may be able to help the management improve the sectors. The types of interviews carried out during the research where unstructured, structured and in-depth interviews. During unstructured interview had a direct conversation or interaction with the respondent or focus group which is different from structured interviews. Here the interviewer will have guiding questions or a concept to ask the respondents and the interviewer is freely to move the conversation in any direction of interest so that you may be able to explore the concerned areas. In-depth interviews are also having a dialogue with the respondents. It also encourages capturing the respondent’s perceptions about the question asked to them in their own words.
The interview can be conducted with an individual or group of people. The goal is to ironically to get detailed material that can be used in the analysis of the information prvided. (Lofland, 1995). Dynamically interviews are more like a guided conversion between two people or a group of people. The interviewer becomes and an attentive listener who shapes the process into a social comfortable engagement between themselves and the quality of information obtained largely depends on the interviewer’s skills and personality during the interview. (Patton, 1990). In particular, five in-depth interviews were conducted with the managers and top executives of the departments: Marketing, Sales and Exports. Thus, also the employees from different departments were also interviewed.
Since the company has 2000 employees therefore the information may be biased when it is proposed to the whole population. In-depth interviewing is considered to be the most valuable data collection method (Lincoln and Guba, 1985). The in-depth interviews were based on a questionnaire presented in Appendix.
In addition, since several authors have recommended that it is useful to gather data from various sources when conducting qualitative research (Lincoln and Guba, 1985; Mason, 1996). Hence, secondary data concerning general information about the company were gathered through the company’s leaflets, company reports and the company’s Web pages. 1.
2 Company descriptionMovit Products Limited is the Company that for 17 years has proudly stood for beauty, innovation, confidence, optimism and, above all, for women. Its product ranges are exclusively gender sensitive especially to the beauty of the woman and children for both skin and hair cleansing.Movit is passionate about making a difference in hair and skin. Find a full line of lotion, jelly, shampoo, relaxers, conditioners, neutralizers ; treatment. All Movit reflect at its slogan of “All day’s confidence” which has over the years given its products a margin over other products in this competitive market situation in and beyond Uganda/East African Region.1.2.
1 ProductsMovit manufactures skin and body care and hair care products. The company targets women in the age group of 16 to 45 and babies. The company now in the development of men’s products such as men’s lotions. The product line of Movit is has follows:Skin and body care products.Body milk soap, lotion and cream which are used for nourishing and moisturizing the skin.
Glycerin and lanoline lotions and creams that help to moisturize and soften the skin. These are used for all skin types.Lemon lotions and creams help to prevent skin pigmentations.Herbal jelly and soap are made from natural herbals which are used to treat skin rashes, itching and minor skin infections.
Miss beauty and glycerin’s are used for conditioning the skin.Pimple X soap, lotion and cream which are made from natural anti-bacterial ingredients that clear the dark spots and pimples fast.Baby ranges such as baby junior powder, jellies and lotions and baby oil. Hair care productsHair relaxers such as radiant hair relaxer and movit hair relaxer that help to rearrange all hair types.Hair sprays such as Olive hair spray, braids spray and movit sprays.Hair foods such as avocado that prevents hair from breaking.Hair pomades such as Sulphur hair pomade used for conditioning the hair and preventing anti-dandruff.
Hair conditioning treatments and shampoos that are used for strengthening and prevent split ends of the hair from breaking.1.3 Company historyMovit Products Ltd is a Ugandan personal care company based in Kampala, manufacturing personal care products. Movits’ activities since the beginning have been revolved around manufacturing and distribution of quality Body and hair care products.
Its brands include Movit, Radiant hair care products, skin guard with anti-bacterial skin care products, Pine and NAN. The company was founded in 1997, by Simpson Birungi as a makeshift workshop in Namasuba, Wakiso District. In 1999 the first Movit product, Herbal Baby Jelly, was put on the market. Over the years, Movit, the company’s flagship name, has grown into one of Uganda’s top cosmetics brands with distribution links in both East Africa and the COMESA regions. Birungi Simpson is a captain of industry in the cosmetics and boasts over 20 years in the industry – first as an importer and now as a manufacturer. He is passionate about managing a diversity of Human Resources of the Company to accomplish the set goals – with the near term goal of “Operation Africa”.Movit was formed after a careful assessment of the community’s development needs for quality hair and skin care products.
Movit is now present in ten African countries -Uganda, Kenya, Tanzania, Rwanda, Burundi, South Sudan, Namibia, Malawi, Zambia and Democratic Republic of Congo. Movit is situated along Entebbe road. The plant seats 25 acres Approximately 101,175 square meters of land of which 12 acres Approximately 48,564 square meters are reserved for future expansion.Movit as an employer of choice has created opportunities for close to 800 permanent staff and 1200 casual workers. The Company is also ranked amongst Uganda’s top tax payers with a production line of over 200 products and growing and the company revenue is about $15million.
95% of the company’s raw materials are imported from China, Kenya and other countries hence expensive for the company in terms of transportation, with a few sourced locally.1.4 Movit Products Limited’s mission and goalsMovit Product’s mission is to be the leading producer and marketer of sensational body lotions and jellies for the comfort of the women and babies.1.4.
1 Company objectivesTo manufacture and sell cosmetics to both local and international customers at a competitive price.To maximize profits for growthTo expand and control Africa in the cosmetics industryTo create employment opportunities for the unemployed in the entire Africa.During the next five years, Movit Products Limited seeks to achieve the following financial and nonfinancial goals:1.4.2 Financial GoalsObtain financing to expand manufacturing capabilities, increase distribution, and introduce new product lines especially for men.Increase revenues by at least 50 percent each year.Donate at least 1 Billion shillings in community developmental campaigns and projects.Nonfinancial goalsIntroduction of new products especially for menEnter into new geographic markets, even beyond East African by exploring its online marketing potential.
Develop a more interactive Internet site, while maintaining strong relationships with retailers.1.5 Core competencies Movit should seek to use its core competencies to achieve a sustainable competitive advantage, in which competitors cannot provide the same value to consumers that Movit products have amongst the population.Already, Movit products Limited has developed core competencies in;Offering a high-quality, branded product whose image is recognizable among consumers; Creating a sense of a humorous community among consumers who purchase the products; andDeveloping a reputation among retailers as a reliable manufacturer, delivering the requested number of products on schedule. The firm thus intends to build on these competencies through marketing efforts that will help to increase the number of products offered as well as distribution outlets. By forming strong relationships with consumers, retailers, and suppliers of its cosmetic products, Movit believes it can create a sustainable competitive advantage over its rivals. It should be noted that No other cosmetic company can say to its customers with as much conviction of “all day confidence” this has seem its products gain market among women.2.
MARKETING STRATEGY2.1 Situation analysisThe marketing environment for Movit represents overwhelming opportunities. But to note, it also contains some challenges that the firm believes it can meet successfully. A SWOT analysis of the company conducted by marketers to highlight Movits’ strengths, weaknesses, opportunities, and threats is previewed as below.Note;The SWOT analysis presents a thumbnail sketch of the company’s position in the marketplace.
In a period of 17 years, Movit has built some impressive strength while looking forward to new opportunities. It should be noted that its dedicated founder, the growing number of brand-loyal customers, and sound financial management, place the company in a good position to grow. However, as Movit considers expansion of its product line and entrance into new markets, the firm will have to guard against failure to recognize the scope of its business and quality slippages.
As the company finalizes plans for new products and expanded Internet sales, its management will also have to guard against competitors who attempt to duplicate the same products. However, building strong relationships with consumers, retailers, and suppliers should help reduce and keep competitors at bay.2.1.1 StrengthsThe founders of Movit are dedicated and still understand the target market and the product production process over the years.Movit has achieved distribution in different markets with a quick acceptance from customers.Movit has very little debt count that it has vigor to develop and introduce new products in the distribution markets.
Movit over the years has single handedly worked under one manufacturer ensuring good quality of its products.Movit has a strong supply chain which helps it to obtain the right resources from the suppliers and deliver the right products to the customers in a timely manner.Customers are loyal to the company’s products; the company needs to target only new customers to grow their business.
Movit has a strong brand name which gives them the ability to charge higher prices for their products because consumers place additional value in the brand name.The company has advanced technology which allows it to meet their customer needs in a way that other competitors cannot imitate.2.1.2 WeaknessesThe company relies on a single manufacturer and this can lead to a product quality break down in case of managerial break ups over time.The company has limited online marketing potential which need to be explored more.Over time the company founders may lose sight of their product potential and capacity.2.
1.3 OpportunitiesIts Royal customers are most likely to purchase the new products as wellMany gaps still exist in the current market place that needs to be filled with new products.Movit has more chance of expanding further its distribution capacity.Differentiated products. Movit has the right people in its R;D department to drive innovation and Patents and to bring in products which shake the market to its core. These innovations and patents can take to the forefront of the skin care market and can make more cash cows for the brand thereby generating a lot of revenue for the companyOnce well developed, the company can reach its customers through online marketing portal by providing direct information on their website.Introduction of new products can help expand the business and diversify their customer base.
International markets offer the company new opportunities to expand the business and increase sales.2.1.4 ThreatsConsumers may get tired of the concepts in which the firm markets its products thus a need for a change to avoid product delivery disparities.
Large competitors on both international and local scenes like Samona products, Nevia products, Vaseline, L’Oreal among others.The company’s retailers’ relationships may reduce if the company believes that they face competition over the internet marketing and adapt to change which may be suicidal in the business situation.Change in customer tastes and preferences, customers can change their tastes and preferences very quickly. The company has to know which goods and services customers want.2.2 PESTEL analysisPESTEL analysis is a concept in marketing that is used by companies to track and understand the environment there are operating in such as when they are about to launch a new product into the market. PESTEL is for external and internal environment factors such as political, economic, social technological and legal environment of the country they are operating in. hence PESTEL will help Movit understand the external and internal environment its operating in and has the company to expand in the future this will help them to build their future vision.
Also will help the company to align positively to its actions and control the company today activities, this is when it is used effectively and efficiently. PESTEL will help Movit to adapt quickly to the changing environmental activities of the country. POLITICAL ECONOMICALGovernment rules and regulations such as the Uganda National bureau of Standards which has put obligations on the packaging styles of the product in the country.Political instability of the countryIncrease in taxes such as change in corporate taxes which changed from 30% to 33.70%GDP growth rate which is $26.36 billion USD.Employment opportunities for the peopleMore export and import businesses or companies that offer cheap prices or tax fares for exporting and importing of the materials and products.
Financial growth rate and interest ratesMonetary factors that affect the cosmetic companiesSOCIAL TECHNOLOGICALRecycling of used plastic products such as the plastic bottles. The company has developed its own branch of the plastic project to recycle the used bottles.Advertising and publicity of healthier models to increase the recognition of the company.Lifestyles of the consumersPopulation growth rate and age distribution affects the cosmetic industries.Social behaviors of the people Development of new products such as products for men, body sprays.Change in production technology such as production machines technology keeps changing so the company will have to change its machines.Change in transportation technology during distribution of the products in different areas of the country.
Use of automatons to support the supply chain and logistics and communications of the company. Hence reduces movement within the company and the suppliers.2.
3 Competitors in the cosmetic marketOn the local market scene, competitors of Movit include Samona, Mukwano jelly, and Suredeal and on the international market scene include Vaseline, Nivea, L’Oreal and all dealing majorly in the cosmetics for women and baby body nourturisation.While all of the companies listed earlier can be considered competitors, none offers the kind of body nourturizing cosmetics, provided by Movit and none carries the customized logos and slogans which Movit uses currently and in the near future. 2.4 Competitor analysisCompetitor analysis is the alternative way that a company could provide similar products to satisfy the market needs. The company must consider its potential competitors while deigning its marketing strategy. David Jobber, Fiona Ellio-Chadwick, (2013), stated that understanding the competitors’ weaknesses can be a target for exploiting their marketing activities and this can have major impact onto the company’s success. Firstly, if the company focuses on the competitors’ actions, strengths and weaknesses, opportunities and threats of their competitors will be able to achieve its goals and objectives and better business performances in the market than those that payless attention to their competitors. Secondly, analyzing the competitors can help the company to monitor their moves and responses in the market and hence reduces on the loss of the market share.
Finally, also the environment needs to be scanned for new potential entrants with the similar products entering the market and invading the market with similar substitute products. Therefore, this analysis can also help on the circumstance of new entrants, substitute products in the market, bargaining power of buyers and suppliers, rivalry among the existing competitors in the marketing and identifying their marketing strategies.2.
4.1 NiveaNivea is a German based company owned by Beiersdorf Global AG and it specializes mainly in body and skin care products. The company was started in 1986 by Paul Carl Beierdorf. In 1890 a German chemist who specializes in making skin cream known as Oscar Troplowitz started working with Paul Gerson and Isaac Lifschutz and then Lifschutz developed a stable emulsion called Eucerit. Nivea is a Latin word from ‘niveus’ which means snow-white. Nivea started expanding its market in order to be available worldwide in the1980’s and it was tries to keep its products close to its customers therefore this helps them to attract more customers.
Nivea was able to understand their customer needs and wants so that they can be able to make innovative products in the skin and beauty care segment in a way of making their customers happy so that they don’t feel like the company doesn’t care bat their needs. The company is innovative and growing at a fast rate with different segments of new products since Nivea has already established a name in beauty and skin care product worldwide and they were able to make their brand recognized widely.2.4.1.1 SWOT analysis2.4.1.
1.1 StrengthNivea is a global brand which has its presence in approximately 20 product categories all over the world in more than 50 countries at large.Nivea has huge brand recall and equity.It has a very strong distribution network.
Every color has its own brand element such as the packs ‘Blue and White’It has excellent advertising and brand visibility which makes it a top-of-the-mind brand in the market.Over the years Nivea has invested in building a strong brand portfolio. It has highly skilled workforce which is trained through learning programs. Therefore, this makes works motivated to achieve the company goals and objectives.2.4.
1.1.2 WeaknessNivea faced criticism over advertising campaigns which were termed as racist by a few people There is intense competition in skincare segmentThere are new entrants who have led to the loss of small market share for the company.
2.4.1.1.3 Opportunities Nivea has a good reputation in the market and the brand is well established globally.
It has a very high chance of growing in the emerging economies.Nivea can increase its market share globally.Nivea can enter the men’s segments with well concentrated products for men.
Nivea has a high potential of new customers over the online services.It can solve its weakness through meeting the new environmental policies placed in different segments of their demographics.The development of new technology can lead to increase in the market share and innovation of new products.
2.4.1.1.
4 Threats Popularity of other skin care brandsHigh competition in marketing between Nivea and its competitors.The demand of the product is seasonal since its highly profitable hence the company profits get affected.There is intense competition in the cosmetic market.2.4.1.2 Target market and market share of NiveaNivea has been carefully evaluating the emerging markets and its taking action for the brand to have a competitive advantage. The competitive advantage strategy Nivea developed to use as their slogan to attract their customers is ‘Long Lasting Water resistance’ and it was used for children as a way of Branding the company.
Nivea was showing that the children are safe for a long period of time by using the slogan for marketing. The company had made observations and got information about their market. They found out that the primary buyer of their products are women who purchase the product for themselves and their families. Therefore, the company decided to do adverts and campaigns that attract women to buy their products and increase the market and this was shown through the campaigns and advertisements they published in the media and aired of televisions and radios. Nivea did all this in order to gain beneficial competitive advantage over their competitors and increase their market share. Nivea’s market share in the global market for skin care products is 15% and the brands generates revenue of $2.5billion USD which is the only single factor that creates income for the company growth.
2.4.1.3 Marketing strategy 2.4.1.3.1 Product StrategiesNivea’s product strategy in the market has always been reformulating their products which are effective and ones that provide maximum satisfaction for their customers and be able to meet their needs.
Nivea has a differentiated range of products for all groups such as age, gender and skin types. The company did a research and they found out that customers wanted beautifying products which are specialized for their age groups rather than solutions to skin care problems since their competitors offer products which are solution based and medicated products to resolve their skin issues hence the company gains a competitive advantage. Nivea created a bridge gap between the teenage market and the adult market and their products are consumer-friendly and effective to the customers. Before the company launches their product they first test them on a sample group of that targeted market and this testing gives results which will cause the product to be improved. They include: nivea changed the formula of some products such as they removed alcohol in some products and added natural sea salt and minerals, a new modern pack design with flowers and softer colors to look attractive to women and changed product description and introduced a large sized pack.2.4.
1.3.2 Price StrategiesNivea uses this strategy to price their products using the quality pricing which will reflect the value of their product. The company believes in providing quality products to their customers and offers them at the best prices possible.
Although their products are fairly priced higher than their competitors the company has gone miles to explain that their quality is different from their competitors therefore good quality comes with a huge price tag.2.4.1.3.3 Place strategyThe company has a good distribution channels and has made all their products available to their customers in different demographic segments. It has built large and small stores for the marketers who have always been on the lookout to expand their network chains through searching for outlets that would sell their products to end users.
They mainly use retail distribution channel where customers expect to find a range of beauty products. Nivea decided to sale 65% of their products through drugstores which are for young-end market where most youths go to buy their beauty products and 35% is sold in large grocery stores such as Tesco with a range of beauty products since research shows that most mothers buy the products when they are doing their grocery shopping in the supermarkets. Nivea distributes its products through outlets which are effective and reach the highest number of customers and always considers the environmental impacts such as transportation. It uses contract vehicles to transport their product from the plant to the deliver to the retail stores. They don’t sell directly to their customers since it can’t be cost effective for the company therefore they use wholesalers for the small accounts from the market and uses other retailers that sell the product online like Tesco and Walmart.
2.4.1.3.4 Promotion strategiesNivea promotes its product through advertisements which are published and aired for the target market since they have a range of products, most of them are promoted different for their different purpose they offer to the customers.
For example, the sprays that have been made for men, these have a been a win-win situation for the company even in the print media and televisions. This because media promotional adverts can be seen on a regular basis by the customers at any time from any place they are at.2.4.2 SamonaSomona is a local company in Uganda which started its manufacturing in 2003 and spent almost 15 years in the cosmetic market in Uganda. The company is located on Plot 292 Block 20 Busega, Kampala, Uganda. It was founded by Salongo Kasawuli Mukasa.
He piloted the company from a small scale cottage industry to a medium industry. The company started with the production of herbal soap and jellies. Their products are blended with extracts from trees, shrubs and medicinal grass from forests of Africa which are used for healing, smoothen and reduce skin disorders. All companies in Uganda are certified by all the statutory bodies such as Uganda Bureau of Standards (UNBS). The company is committed to putting all their expertise and knowledge and resources available to satisfy their customer needs in the market. The product demand was high and their sales increased sharply at the same time that’s when Movit was coming up. Movit leant the success of the company and used their weakness to boost their products. They created a variety of hair and skin care products which are sold around Eastern Africa and Southern Africa meanwhile Samona has been downgraded by their customers due to quality issues and lack of range of differentiated products.
2.4.2.1 GoalTo increase production and keep the standards or quality of their products, to meet the world standards as prescribed by ISO 2002.To create employment mainly for Ugandans and other people around the world directly or indirectly.To bring foreign exchange as they export their products to several countries.To serve the beauty and well-being of their consumers in all cultures throughout the world.To remain the market leader in the production and distribution of quality Herbal products.
2.4.2.2 SWOT analysis2.4.2.2.1 Strength The aim of Samona is to provide natural products for customers such samona herbal jelly and herbal soap.
Samona will purchase natural ingredients and accessories from countries with low cost. 2.4.2.2.2 WeaknessLack of cooperation in the company which is a big issue since it leads to increase in costs.
Poor marketing communications compared to their competitors. Intense competition in the market.New entrants with substitute products Poor communication within the company and the management team2.1.
2.2.3 OpportunitiesIncrease marketing communications. Market expansion could increase their salesDevelopment of new products for the other segments2.
4.2.2.4 ThreatsLack of innovation and development for their products for the customersCurrency instability such as the Uganda shillings against the US dollar which makes the local products look cheap to the customers.
Less opportunity of expansion for the company.Company faces competition with the other competitors who have created a good relationship with the customers.Change in customer preferences and tastes where customers can easily change their need and wants.Lack of a good Research and Development (R and D) team for do new innovations and research for the company.
Customer analysisResearch shows that the cosmetic market is growing in at a high rate. In fact, it is in the growth stage of the product life cycle. It is mainly due to the skin care and hair care start up at an early stage.
In 2007, there was a campaign for safe cosmetics, one third of the samples exceeded the limit of the lead. The affected brand during the campaign was L’Oréal. Customers are now demanding more information regarding the products they use and becoming more aware of the health issues. Movit tends to provide customers with safe, natural, and organic products. This will typically be African women and men who are single, married, young, children and even old.The target customers for wholesale distribution will be resellers who recognize the needs of their consumers and who identifies with.
We have used the term resellers because they will not be limited to retailers. Movit will reach its customers through distinct channels of distribution such as hotels, saloons, cosmetic specialty retailers, supermarkets and department stores.There are a number of new demand trends that have impacted the market and created greater opportunities for the company. These trends include a returning to old age, time proven, natural remedies; more consumers that are looking for holistic and healing benefits from her skin care products and today’s consumer being more informed and more inquisitive about the benefits of her personal care products.The target marketThe target market for Movit products is active consumers especially women between the ages of 16 and 45—people who like to have their skin and body moisturized all dayThese active consumers represent a demographic group of well-educated and successful individuals; they are single or married and raising families. Household incomes generally range between $8,193 to about a$32,770 annually. Despite their comfortable incomes, these consumers are price conscious and consistently seek value in their purchases. Regardless of their age (whether they fall at the upper or lower end of the target range), they lead active lifestyles. They are somewhat status oriented but not overly so. They like to be associated with high-quality products but are not willing to pay a premium price for a certain brand. Current Movit products customers are campus girls, saloonists, baby-sitting mothers and hair dressers. The market type of Movit is a niche market because Movit skin and hair care are aimed at satisfying market needs, as well as the price range, production quality and demographic that is intended to impact. The market can be segmented because of all the skin and hair types and needs. Not everyone in the audience has the same skin and hair types; they are divided into different categories. Skin types are normal, oil, dry and sensitive, and hair types are dry, oily and damaged hair. Movit has plenty of products for this.In Uganda, there is as much emphasis on beauty as there is on health, if not more. Uganda has emerged as a huge market for both local and international cosmetic brands in the past two decades. Few local companies; Avis, Movit, Nivea and Samona possess a majority of the local market share. 3.THE MARKETING MIXThe following discussion outlines some of the details of the proposed marketing mix for Movit products.3.1 Product strategy;The firm has researched the most popular colors for its items and given them names that consumers enjoy such as baby junior soap, jelly, among others. Over the next five years, Movit may plan to expand the product line to include products for men. Male customers may select a logo that represents their stature on the proposed new products for Movit products to create gender sensitivity and balance this strategy will keep the concept fresh and prevent its products from becoming diluted with too many variations.Movit adopts the following strategies for product policy: size and growth of product range, quality differentiation strategy and assortment renewal strategy. For a permanent satisfaction of consumers’ needs, Movit has to continue the horizontal assortment range diversification strategy. Movit is a company which produces and sells a complex and modern range of cosmetic products, even for the most demanding tastes. That’s why the company should constantly adopt to the market requirements regarding the product novelty, diversification, packaging methods, product manufacturing technology. The quality differentiation strategy should be maintained. It is very important to offer superior products that will satisfy all consumers’ categories, from those who want to use qualitative products at affordable prices to those who would spend anything for purchasing a prestigious product that will satisfy the most demanding wishes. The assortment renewal strategy is the most complex and dynamic strategy. The renewal assortment leads to the creation of new product lines within the existing range, for offering products that meet new demands of fashion and technology such as products for men, body perfumes and sprays.3.2 Distribution strategy;The distribution strategy goes along with the allocation of services which make up the element of the marketing mix of the products which need to be available in adequate quantities at a convenient location and at times when the customers want to buy them. Currently, Movit is marketed through regional and local specialty shops around Uganda like super markets, retail shops, into the wider East African region. Movit obtains much of its information about overall industry trends in different geographic areas and at different types of retail outlets from its trade organization in cosmetic kind of environment. Movit considers to establish a supply chain that is efficient and meets the needs of their customers hence this leads to their marketing to be successful. Therefore, the company and the supplies should get access to their end customers for feedbacks about their products and understand the customer needs through interactions. Over the next years, Movit seeks to expand distribution to retail specialty shops throughout the nation. The firm has not yet determined whether it would be beneficial to sell through a major national chain such National trade associations’ centers, as these outlets could also be considered by competitors.Movit has to understand the importance of the channels they are choosing to use to distribute to their customers. The main importance’s of the channels are; to meet the producers and customer needs, reduce cresting bulk transportation and huge number of transactions through improving its efficiency and reducing accessibility for producers and costumers by lowering the location and time gaps between them and provide services to customer to satisfy their needs.The main criteria Movit uses to understand their distribution strategy they are using to distribute their products are; market knowledge, producer and customer knowledge, hunger for success, their reputation among customers and the fact that the distributors donot carry competitors’ products. Movit uses the following strategies for supply: direct distribution such as employs sales force, distribution through retailers and use of intermediary channels such as supermarkets. This helps Movit to reduce the time frame between order processing and transportation of the product to the customers. 3.3 Promotional strategy; Movit Company limited communicates with consumers and retailers about its products in a variety of ways. Information about Movit company—the company as well as its products—is available via the Internet, direct mailings, and in person. The firms’ promotional efforts also seek to differentiate its products from those of its competitors.The company relies on personal contact with retailers to establish the products in their stores. This contact, whether in-person or by phone, helps convey the Movit message, demonstrate the products’ unique qualities, and build relationships. Blue Sky sales representatives visit each store two or three times a year and offer in-store training on the features of the products for new retailers or for those who want a refresher. As distribution expands, Movit will have to adjust to meet greater demand by increasing sales staff to make sure it stores are visited more frequently.Sales promotions and public relations currently make up the bulk of Movit’s promotional strategy. Movit Company staff works with retailers to offer short-term sales promotions tied to event and contests and because Movit also engages in cause marketing through its contribution to environmental programs, good public relations have followed.Nontraditional marketing methods that require little cash and a lot of creativity also lend themselves perfectly to Movit Products limited. Because Movit is still growing, flexible organization, the firm can easily implement ideas such as distributing free water, free hair saloon or camp. During the next year, the company plans to engage in the following marketing efforts:Create a Movit Tour, in which several employees take turns driving around the country to campgrounds to distribute promotional items such as lotions, soaps and jelliesAttend and support local sports events like marathonOrganize Movit recreational activities while partnering with participating retailers and customers.Hold a Movit design contest, selecting a winning slogan and logo to be added to the customized line.3.3.1 AdvertisingMovit will use advertising as medium for promotion in order to communicate to their customers and emphasize a certain message in their campaigns. This can be done in different ways such as;During the development of new products such as men’s products and women since they are their main target. They can do a survey within the company and make people away of their new products. This way they are telling their customers that they should not worry which product to use on their skin and hair care. Therefore, this will help the company to develop a product following the customer needs.This will be good for awareness because it will reach a large audience of customers instead of focusing on a certain age group of people. Hence the company will be able to target all age groups even those above 25 years of age and will help the company to classy their products as modern products.Movit can use advertising has a limited capability to close the sales.Advertising can legitimize the company and their products and this will support the sales efforts.Movit will use various mediums for advertising so as their can reach their targeted customers especially the women. The company will use print media for advertisements such as billboards, televisions, radios, magazines, newspapers, display signs and branding vehicles with their logos for different product brands. Movit will also use direct marketing such as exhibitions and personal selling (sales team) which will interact with the customers face to face and be able to know their needs and how they can easily be meant by the company.3.3.2 Sales Promotions.Sales promotion is important for Movit because it will be able to quickly boost the company sales and persuade people to purchase the product. Movit will carry out the following sales promotions; Use of coupons. If anyone purchases a movit product will find a coupon in the products and will find a few questions on it then the person will ask them and email it to the company. There will be questions like why did you purchase the product? Do you like the company products and if so why? How often do you purchase the product? This will be helping the company do a research on the on products and the market as well. Therefore, the winner will be announced and treated for a dinner, given a car or electronics such as television.Use of cross product promotion. If the person purchase product such as radiant relaxer or movit jellies they can be given hampers with different product a bottles engraved with the Movit logo or brand on.3.3.3 Public RelationsAlso Movit can use this as a tool for promotions and marketing in a way that will be able to communicate to their customers, educate and inform the public about the organization. This can be done through media like social media such as Facebook, company websites and newspapers. This can be used as a third party of communication base for the company.3.4 Pricing strategy; As discussed earlier in this plan, Movit products are priced with the competition in mind. The firm is not concerned with setting high prices to signal luxury or prestige, nor is it attempting to achieve the goals of offsetting low prices by selling high quantities of products. Instead value pricing is practiced so that customers feel comfortable purchasing new cosmetic products produced on market by Movit Company limitedManagement and Organizational StructureThe management team of Movit is led by the founder Mr. Birungi Smpson. The structure of the board is very important to the company because of its effectiveness towards the organizations efficiency and production, and it helps them to increase the performance of the employees. Movit’s operations are governed by the board of directors which is in charge of executing regular activities of the company. The organizational structure is more informal than formal with lose control and broader spans of control and their team work is norm. Therefore, the structure consists of the chairman, chief executive officer and board of directors. The number of the team could move up depending on the company needs and operations. The management team;Mr. Birungi Simpson – The Chief Executive Officer.He is the founder of the cosmetic company in the sub-saharan African region and he started the business in Uganda for more than fifteen years ago. He is the captain of the industry and boasts over 20 years in the cosmetic business.He was first and importer and later started manufacturing the product. His passionate about managing the human resource of the company to accomplish the set goals with their near term goal “Operation Africa.”Mr. Musasirane Emmy- Administration and operations managerEmmy is a versatile administrator and a problem solver with a keen understanding of the law and legal environment of Uganda. He has been overseeing the operations of the company, helped to mold the company from a local to a regional player. He has been working the company for over 15 years and he has improved the working performances in the company, kept the company on a clear path regarding the safety and legal regulations, at the same time he oversees the human resources agenda to ensure that employees are motivated, skilled and trained by the company. His in charge of the production agenda on a broader spectrum of covering water and energy, raw materials, environment, waste management, compliance and occupational health and safety. A lawyer and social administrator by training – LLB, DLP, BSWASA, MPAM. Mr. Bruce Mpamizo – The Sales and Marketing Director.Bruce is an accomplished marketer and salesman and has been with the Company for the last 14 years making him one of the longest serving employees of the Company.During that time, he has risen from being a Sales Representative to Sales and Marketing Director on account of his abilities especially in the areas of sales strategy and market development, distribution and channel management, trading terms and pricing management, organizational development and people management.Bruce has headed the rapid growth of the organization as well as its expansion in the region. He has been critical in identifying markets that have great potential and has coordinated Movit’s entrance into such markets.He is a qualified marketing professional holding qualifications of HD Marketing; BCom Marketing; and MSC Marketing.4.1 Organization structureIMPLEMENTATIONDuring the implementation of the plan the management must ensure efficient use of capital, human labor and marketing available for the company to use. Since its involves putting the marketing plan in execution and scheduling to meet the set goals of the organization. Movit should employee well trained and skilled employees with unique abilities who will be able to help in the execution of the plan and they should be able to communicate with the management team and always able to do monthly updates of their market in order to meet their customer and company needs.The company must have a compliance team which will be able to comply the daily company activities and help employees act in accordance with the plan at hand hence this will enable Movit to achieve its implementation successfully.The marketing team can create a marketing research team that goes in the field weekly or monthly to collect information from outside the company about what people think about their products. Therefore, the knowledge gained from outside could very important to the company during the implementation of the plan. This could also help the company maintain their strong position and reputation in the market since its known in the market due to its brands.Commitment would be a critical goal for the success and effectiveness of the implementation of the plan. Here the marketing director has to make the employees feel valued by the company in order for them to commit themselves to the goals of the company. They should feel involved in daily today activities of the company so that they can be able to have a say during the implementations.The reputation of the company pays a lot in the market since Movit is known in the market could use that as an advantage to improve their marketing strategies. Since people always trust the brands they know and use for their skin care. Communication is an important element for marketing because all parties are able to communicate to each other easily through customer services offered by the company. This can be a good selling point of the company brand and products. Through communication the management will be able to help the employees to understand the products so that it will be easy for them to assist the customers with the product information.EVALUATION AND CONTROLEvaluation and control is an important aspect for Movit after implementing the marketing plan because the company will be able to evaluate the market results and correct the cations that do not help the organization in its growth. This helps the managers to be able to know the areas of improvement, be able to back up the budget that is needed for their marketing plans and activities and be able to secure financial support for daily promotions and activities in order to meet their objectives and goals. The company use the following ways in their evaluations and control;Movit should analyze their sales to make sure they have meet their set goals and objectives within a certain period of time. This will help the company to achieve their sales strategy in the market. Therefore, the marketing department will have to make an effort and measure their efficiency so that they can be able to meet their needs within the budget plan.Movit needs to look at their marketing expenses such as sales promotions and advertising in order for them to know how much will all that cost them. This will help the finance department to explain how successful the plan will be. It will help Movit to buy more advertising platforms online which will attract more customers and the company will be able to know if they are overspending on the marketing expenses and find ways how to correct the plan.The marketing department should carry out surveys both internal and external customers. This can give Movit more information about their customers and competitors where this data will be relevant for the marketing plan to be successful and they will be able to make adjustments on plan during the evaluations. Movit should analyze their market share through comparing their sales and compare themselves with their competitors in the market. This will help the company know how well they are doing in the market and will be able to reach their customers.The marketing department will have to search for economies in the inventory, warehouse and location. This will let the management know if the orders placed by the customers have been filled correctly by the sales forces in charge and know the time the products where delivered to their given locations. Hence the company should be able to keep track of their distribution channel in different countries.Movit can try to control the strategy which they have selected to match the structure they have laid in the plan and they can create control systems to monitor and evaluate the performance of the organization to see if the plan laid is doing well in the market and keep records of the sales performance personals.CONCLUSIONMovit is being viewed as a strong and modern company in the market and its position in the market keeps improving relying on their marketing strategies planned. The company must try as much as possible to maintain the quality of their products in the market to outgrow their competitors and look at the men’s has a potential market hence they should be innovative and creative on starting the men’s products. Regardless the size of the company Movit must be creative on their marketing activities which they are using to promote their products if they want a successful marketing strategy and plan. For future reference if Movit is to achieve their plan they should be able to share more information about the company since less information is provided in the future.In a strong and complex environment, the company if the implementation is to be successful the company should increase on their marketing activities of their brands, interact with external and internal factors affecting their marketing plan since they may lag them behind and fail to achieve their set goals and objectives; profitability and development of the market should the company’s first concern since the image of the company sells their brands. Movit should be concerned about their competitors and how they are doing in the market. Has I analyzed the data for Movit I realized that Nivea from the international brands is leading the market even though Movit has a higher preference in the market among the local brands. The company should work towards leading the market both international and local since it has a huge opportunity for growth in different demographics of Africa at large and huge available market for cosmetics products. In conclusion Movit can also consider the time frame between the delivery and the moment the order has been placed and the time taken to be process the products to their distribution areas. They should be able to run a couple of adverts and make people aware of their new products just as the Men’s lotion and perfumes and be able to run advert on highly rated channels and stations on Televisions and radios. This will help the company to make the customers be aware of their products. 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Maidenhead: McGraw-Hill, 2010.Kim, Chan W., Mauborgne R., 2005: Blue ocean strategy, Harvard Business PressKotler, Armstrong, 2011: Principles of Marketing 14th, Pearson EducationAPPENDIX: QuestionnaireDescription of the companyWho is the founder of the company?How many employees does the company have?What are the vision and the mission of the company?What are the objectives and goals of the company?Description of the productWhich are the natural characteristics of the product?Description of the marketWhich is the target-market of the product?What are the characteristics of the target-market?In what way do you expect the product to satisfy customers’ needs?Competition analysisWho are the main competitors of the product?Does the continuous technological development influence the operation of the company’s production of cosmetic products?SWOT analysisWhat are the strengths of the company? What are the weaknesses you face as a company?What are the opportunities that appear through the market?Does the company face any threats concerning the market at large?Objectives and strategyWhich strategy will the company employee in order to achieve their marketing objectives and goals being set?The marketing mixHow will the product be priced so as to be competitive in the market and which pricing method is followed?What distribution channels does the company use?What advertisements does the company use for promotion?What are the promotional activities of the company?
