Group Members

Amandeep Singh Gujral 401107006

Pranav Goel 5014040

Sakshi Gaba 5014040

Gamneesh Kaur 501404040

Under The Guidance of

Dr. K.S. Ghuman

CONTENTS

Introduction .................................................................................................................................... 3

Opportunity ......................................................................................................................................................... 1

Market Segmentation ..................................................................................................................... 2

Geographical Segmentation ................................................................................................................................ 2

Demographic Segmentation ................................................................................................................................ 4

Age: ................................................................................................................................................................. 4

Income: ........................................................................................................................................................... 4

Target Market ................................................................................................................................. 4

Positioning ...................................................................................................................................... 5

Product ............................................................................................................................................ 5

Packaging ............................................................................................................................................................ 6

Place ............................................................................................................................................... 6

Traditional channel ............................................................................................................................................. 6

Super-Markets and Hyper-Markets ..................................................................................................................... 7

E-Commerce: ...................................................................................................................................................... 7

Promotion ....................................................................................................................................... 8

Mass Media ......................................................................................................................................................... 8

Through Collaborations ...................................................................................................................................... 8

PRICING ........................................................................................................................................ 8

New Product Pricing: .......................................................................................................................................... 9

Penetration pricing .......................................................................................................................................... 9

Price skimming ............................................................................................................................................... 9

Psychological Pricing: ........................................................................................................................................ 9

Reference Pricing ............................................................................................................................................ 9

Multiple Unit Pricings................................................................................................................................... 10

Odd Pricing ................................................................................................................................................... 10

LIST OF FIGURES

Figure 1 per capital income of India ....................................................................................................................... 2

Figure 2 Population growth rate (Census 2011) ..................................................................................................... 3

Figure 3 per capital income of states (Map of India) .............................................................................................. 3

Figure 4 Kortler's 5 Product levels ......................................................................................................................... 5

Figure 5 Flow chart of traditional distribution channel .......................................................................................... 6

Figure 6 Process followed in E-Commerce ............................................................................................................ 7

Figure 7 Promotion and advertisement through print media .................................................................................. 8

LIST OF TABLES

Table 1 Proportion of Indian population in different age groups (Census 2011) ................................................... 4

1

INTRODUCTION Parents are constantly concerned with getting the best products in the market and doing everything right

so that their child is safe and sound. Parents look at product websites, consumer product review websites,

consumer reports, blogs, and get word of mouth referrals to try to figure out which product is going to be the

best for them. Parents do this not only because they are extremely concerned about the safety of their child but

also since most first time parents generally have no idea what the differences are between products.

The focus on safety and quality is increasing with less attention given to the price. Companies in baby

care industry are keeping in mind the following bullet points before marketing their products.

The trends in baby products right now are more functional designs, more stylish choices, making a

statement, and a greater attention to safety. Companies today are developing products that have several

uses in mind such as not only being safe but also being durable, user friendly, and tailored to parents

with busy lifestyles. For example, there are ergonomic strollers that have cup holders for the parents,

built in containers for wipes, and customized storage.

The packaging styles are ranging from being the cutesy types normally though of when thinking of

babies to the more sophisticated styles with modern designs. The cutesy designs are going to have

children’s characters on them while the more sophisticated designs are going to be able to fit in with the

parents’ style. The colors names are even changing with colors such as chartreuse, cognac, and

periwinkle popping up on different products.

The latest trends are focused on value and quality with little consideration left for the price.

Most current factors that have influenced the baby care market are organics, natural ingredients, and

convenience.

OPPORTUNITY

India is home to the largest number of children in the world, significantly larger than the number in

China. The country has 20 per cent of the 0-4 year’s child population of the world. The number of live births in

the country is estimated to be 27 million, which again constitutes 20 of the total number of live births in the

world.

The rising number of babies contributes to higher demand for baby products however; this is strongly

supported by urging income levels resulting from robust growth. In addition to these factors, rising literacy,

working mothers, and aggressive marketing have also contributed to a shift in consumer behavior that allows

mothers to use readymade products rather than the traditional indigenous alternatives. There is one thing which

Indian woman is still unaware about, what king of products to use for personal body care during pregnancy. It is

a proved fact that, what you apply on your body may get absorbed and enter the blood stream. We am at filling

this gap by creating awareness among pregnant ladies about this fact and insisting them to use baby care herbal

soap for bathing during pregnancy.

MARKET SEGMENTATION

GEOGRAPHICAL SEGMENTATION

According to census 2011, the states of Bihar, Arunachala Pradesh & Meghalaya followed by U.P.,

Rajasthan, etc. have shown the maximum population growth rate with country average to be 17.6%. The

following figure will give you a clear picture of the various states which have shown the maximum growth rate

according to census 2011

.

Figure 1 per capital income of India

Figure 2 Population growth rate (Census 2011)

Figure 3 per capital income of states (Map of India)

The overlapping of the two maps in figure-1 and figure-2 clearly shows that the potential geographical regions

are

Delhi NCR

Arunachal Pradesh

Meghalaya

Mizoram

Rajasthan

Chhattisgarh

J&K

The above seven states are the most potential geographical region for our product. Once we have

substantial market share in these regions, we will shift our focus to other states of India in the same

chronological manner.

DEMOGRAPHIC SEGMENTATION

Age:

The mean age of women at her first child birth is 19.9 years which make the age group of 15-25 years a

potential customer. Since they have their first child, they know less about what is good in market for their child

and what is not. So which brand approaches them first has the highest opportunity.

In regions like Delhi-NCR, the average marriage age is 23.3 years and by adding .75 (9 months) in it,

the average age at first birth crosses 24. That why we have chosen age group b/w 25-54 as out next target

segment and couple has its second baby in the age range of 24-54 which also make this age group a target.

Table 1 Proportion of Indian population in different age groups (Census 2011)

0-14 years: 28.5% (male 187,016,401/female 165,048,695)

15-24 years: 18.1% (male 118,696,540/female 105,342,764)

25-54 years: 40.6% (male 258,202,535/female 243,293,143)

55-64 years: 7% (male 43,625,668/female 43,175,111)

65 years and over: 5.8% (male 34,133,175/female 37,810,599)

Income:

According to NCAER, India's middle class population will touch 267 million in 5 years. Further ahead,

by 2025-26 the number of middle class households in India is likely to more than double from the 2015-16

levels to 113.8 million households or 547 million individuals. Hence we will target middle class population of

India.

TARGET MARKET

Our target market is

Pregnant Ladies & Mothers

New born babies

With our soap we are also targeting Pregnant ladies & mothers as what they apply on the skin is also the

matter of concern for babies health and wellbeing.

POSITIONING We will position this product as a complete baby care bathing soap. Starting from an embryo stage to the

full grown baby, this product will be the world class bathing solution. Followed by soap, we plan to launch

herbal oil, herbal shampoo, etc. a complete range of products be used by mothers from the day one of their

pregnancy, to impart good health to their son/daughter.

Point of Difference:

It is herbal & Natural

Used by pregnant mothers for bathing, for good health of their babies

Point of Parity

Soft and moisturizing

PRODUCT A product is anything that can be offered to a market to satisfy a want or need or is an offering with a

bundle of benefits and is marketed including physical goods, services, experiences, events, persons, places,

properties, organizations, information, and ideas. We have taken the aid of kortlers five product level to explain

about our product.

Figure 4 Kortler's 5 Product levels

PACKAGING

Packaging protects and maintains the functional form of the product, provides convenience to

consumers, and promotes the image of the company and the product.

Colors on the packages influence consumer emotions. Light pink, light blue and white are the potential

candidates of the package. The package will also include the images of babies which will make it more

appealing to our customers.

Baby Care soap’s outer package is made cloth with brand and product details printed on it. The main

package will include a re-sealable packet in which soap is keep. The re-sealable pack is provided so that after

use you can place the soap again in the pack and it will not come in contact with dirt and germs. The giving

back of the old cloth packaging will fetch customers an additional discount of 5% during next purchase.

PLACE We will draw our focus to 3 main channels for distribution to reach customers effectively and efficiently

1. Traditional distribution channel

2. Super-Markets and Hyper-Markets

3. E-Commerce

TRADITIONAL CHANNEL

It includes the long chain networking of manufacturer, distributer, wholesalers and retailer

Figure 5 Flow chart of traditional distribution channel

SUPER-MARKETS AND HYPER-MARKETS

Firstly, BABYCARE soaps are manufactured in the factory and taken to the near warehouses through

trucks. Then incase to distribute the soaps to hypermarket. According to the demand from particular stores like

easy day, more, reliance fresh and various medical stores, Products are delivered to the stores as per demand.

E-COMMERCE:

E-Commerce is trading in products or services using computer networks, such as the Internet.

E-commerce businesses usually employ some or all of the following practices:

• Buy or sell on online marketplace.

• Use electronic data interchange, the business-to-business exchange of data.

• Reach prospective and established customers by e-mail or fax (for example, with newsletters).

• Provide secure business transactions.

Figure 6 Process followed in E-Commerce

Due to these features, we found it beneficial to use it for distribution.

There are some web sites to which we distribute our products as many customers such as working ladies use

these websites for shopping to save their time. Using these websites is very helpful in increasing the sales as

well as it made easy for us to reach our customer. There are some potential web sites to which we distribute

baby care soaps are listed below:

Ebay,

Snapdeal,

Flipkart,

Amazon.com

PROMOTION For promotion of our brand, we are going to follow the two models

1. Through mass media

2. Through collaborations with reputed child specialist hospitals of areas.

MASS MEDIA

Figure 7 Promotion and advertisement through print media

In event sponsorship, we will identify the potential events like exhibitions, etc. for which we can

sponsor and expand our reach.

THROUGH COLLABORATIONS

We will identify the most reputed child specialist in localities and develop relations with them to

promote our product. In medical line, nothing is more promising than a doctor’s recommendation.

We will also tie-up with reputed franchisees hospitals in baby care.

PRICING Pricing is the process of determining what a company will receive in exchange for its product or service. Price is

an important element in marketing mix, because it directly relates to revenue generation. Price is the one, which

creates sales revenue – all other parts of marketing mix are costs. Pricing has to be done whenever a new

product is launched, its variant is launched, a product is launched in new geographies etc. A company must set

the price in relation to value delivered and perceived by consumers. The price of Baby Care soap per 75g will

be Rs. 49/-.

There are various Pricing Strategies:

NEW PRODUCT PRICING:

Penetration pricing

Penetration pricing is the practice of offering a low price for a new product or service during its initial

offering in order to attract customers away from competitors. The reasoning behind this marketing strategy is

that customers will buy and become aware of the new product due to its lower price in the marketplace relative

to rivals. Penetration pricing can be a successful marketing strategy when applied correctly. It can often increase

both market share and sales volume. Additionally, the high sales volume can also lead to lower production costs

and higher inventory turnover, both of which are positive for any firm with fixed overhead.

Price skimming

A product pricing strategy by which a firm charges the highest initial price that customers will pay. As the

demand of the first customers is satisfied, the firm lowers the price to attract another, more price-sensitive

segment. Therefore, the skimming strategy gets its name from skimming successive layers of "cream," or

customer segments, as prices are lowered over time. Firms often use this technique to recover the cost of

development. Skimming is a useful strategy when:

There are enough prospective customers willing to buy the product at the high price.

The high price does not attract competitors.

Lowering the price would have only a minor effect on increasing sales volume and reducing unit costs.

The high price is interpreted as a sign of high quality.

The pricing strategy used by Baby Care is Price Skimming because the main focus is to generate more profits

for the rapid expansion of brand and business. We want our product to be perceived as a product in the initial

phases. So when the price of the product will be decreased the sales will increase due to its reputation as a

luxury product the customers will buy it and will be contented as now they are also using the same product.

PSYCHOLOGICAL PRICING:

The price range of baby soaps per 75 g is:

Santoor: 30/-

Johnson baby: 32/-

Himalaya: 35/-

Baby Care: 49/-

Little’s: 55/-

Reference Pricing

Pricing at moderate level a product kept next to a more expensive product, so that customer can

differentiate between moderate and better products. So Baby Care will be considered as moderate product in

front of little’s attracting the middle upper class customers. When it is viewed as a better product in comparison

with Santoor and Johnsons Baby it will gain the status of a prestige product and will be considered of good

quality than others and attract the lower middle class customers who will want to buy it.

Multiple Unit Pricings

A pair of Baby Care soap will cost 90/- reducing the cost of per soap to 45.

Odd Pricing

Based on the belief that certain price’s or price ranges are more appealing to buyers. This method

involves setting a price in odd numbers (just under round even numbers) such as Rs.49 instead of Rs.50. Studies

claim that the consumers see a Rs. 49 price as 'just above Rs.40’ and not as 'just below Rs.50.'