RYAN INTERNATIONAL SCHOOL, SANPADA

BUSINESS STUDIES PROJECT

FOR ACADEMIC YEAR 2020-21

SUBMITTED BY-

ADITI MAHALE
XII-C
 CERTIFICATE

This is to certify that the content of this Business Studies

project by Ms Aditi Suyog Mahale is the bonafide work of him
submitted to Ryan International School, Sanpada.

The original work was carried out by her under my

supervision in the academic year 2020-21. On the basis of the
declaration made by her, I recommend this project for
evaluation.

Signature of teacher in charge

Signature of Principal

School Stamp

Signature of External
 INDEX

Sr no. Title
1 Acknowledgement
2 Introduction
3 Why I have chosen this product?
4 Competitors
5 My product
6 Licenses and permissions
7 Social message
8 Logo and tagline
9 Labelling
10 Pricing of product
11 Packaging
12 Channel of distribution
13 Warehousing
14 Transporting
15 Promotion and Schemes
 ACKNOWLEDGEMENT

I wish to express my deep gratitude and sincere

thanks to our respected Sir A.F. Pinto, Principal
ma’am Muriel Fernandes, Ryan International School,
Sanpada for encouragement and for all the facilities
they have provided for this project.

I wish to extend my heartily thanks to Mrs Manjit

Bhui, business studies teacher, who guided me for the
successful completion of this project.

I can’t forget to offer my sincere thanks to my parents

who helped to carry out this project successfully and
for their valuable advice and support which I have
received from time to time.
 PROJECT SELECTED:

MARKETING MANAGEMENT

PRODUCT SELECTED:

NATU
RAL
SOAP
S
 INTRO
DUCTI
In the traditional sense,ON
the term ‘market’ refers to the place
where buyers and sellers gather to enter into transactions
involving the exchange of goods and services.

Marketing is the study and management of exchange

relationships. It is the business process of identifying, anticipating
and satisfying customers' needs and wants.  Because marketing is
used to attract customers, it is one of the primary components of
business management and commerce.

Marketing management is “planning, organising, controlling and

implementing of marketing programmes, policies, strategies and
tactics designed to create and satisfy the demand for the firms'
product offerings or services as a means of generating an
acceptable profit.

FEATURES OF
MARKETING
 1. Need and Want – The primary reason or motivation for people
to engage in the process of marketing is to satisfy some of their
needs or wants. 

2. Creating a market offering - Market offering refers to a

complete offer for a product or service, having given features
like size, quality, taste, etc; at a certain price; available at a
given outlet or location.

3. Customer value - The job of a marketer, therefore, is to add to

the value of the product so that the customers prefer it in
relation to the competing products and decide to purchase it.

4. Exchange mechanism - The process of marketing involves

exchange of products and services for money or something
considered valuable by the people.

The marketing mix refers to the ingredients or the tools or the

variable which the marketeer mixes in order to Interact with a
particular market.
The elements of marketing mix are as follows:

i) Product
ii) Price
iii) Place
iv) Promotion

WHY I CHOSE THIS PRODUCT?

On the basis of some quick research and own observational
experience, I realise that the handmade soaps are immensely
popular. Specially these days, when India as a developing country,
is adapting a healthy lifestyle, at time more to flaunt and keep up
to the status quo. It is an amazing alternative to chemical free
medium to conventional soaps.

These Handmade soaps are usually made of natural ingredients

and essential oils like olive oil, avocado oil, cocoa butter,
grapeseed oil and other organic ingredients.

It has gained popularity all over the world.

If I have to comment on this industry, it is here to stay for a pretty

long time and gauging the potential, many venture capitalists are
investing in the start-ups related to this industry and there are
news of such industry getting funded up.

Buying handmade soaps also encourages cottage industries in

India. These soaps are mostly made in rural parts of the country
using locally available oils and herbs. Making soap is not very
much difficult. It is fairly low-tech. This is what makes it suitable
for cottage industries.

COMP
Soap was introduced in India by the Lever Brothers during the
British reign in the country. Thereafter soaps were imported from
England and marketed in India. In 1918, Mr. Jamshedji Tata set up
India’s first indigenous soap manufacturing unit when he
purchased the Coconuts Oil Mills in Cochin, Kerala.

Soaps become a necessity for the moneyed class by 1937. Since

then, soaps have become an important part of the lives of the
people of the country.

The Indian soap industry includes about 700 companies with the
combines annual revenue of about 17 billion $.

Today India has become one of the most developed soap markets
and is dominated by numerous multinational and also quite a few
major domestic companies.

List of Top Soap Brands in India

 Dettol
 Lifebuoy
 Lux
 Dove
 Pears

DETTO
Dettol is a British brand of cleaning supplies and disinfectant
owned by Reckitt Benckiser. The brand first started in hospitals 80
years ago, where Dettol Antiseptic Liquid was first used for the
cleaning and disinfection of skin during surgical procedures.

Dettol started off in the 1930’s with Dettol mouthwash, antiseptic

cream, obstetrics cream, and liquid antiseptic.
Over the years, the portfolio has expanded to soaps, liquid soap,
shaving cream, Dettol plaster and several other products are still
to use the brand equity of Dettol.

Dettol soap was originally launched as a family soap in the early

eighties. Dettol soap was launched in 1981 by Reckitt and Coleman
India Ltd and positioned as a love and care soap.

Dettol soap, re-launched in 1984, by adopting a strategy of

creating and dominating a specific usage occasion.
With this positioning, Dettol soap has climbed from 1.7% market
share before it’s re-launched in 1984 to 3.7% share in 1988.

There are 4 types of Dettol soaps in India: Dettol Original bar,

Dettol Skincare bar, Dettol Cool bar and Dettol Aloe bar. These
products contain nourishing multi-vitamins, crispy menthol and
soothing aloe vera along with its germ protection ingredient.

Tagline of Dettol
BE 100% SURE.
 Unique Selling Proposition
Dettol is the first of its kind in anti-bacterial segment.

Selling price of products:

To consumers- Rs 54
To retailer- Rs 50
To wholesaler- Rs 47

SWOT Analysis:
Strength Dettol brand comes from a reputable company with a strong
legacy.
Increasing popularity of Dettol soap as a germ killer and
hygienic soap.
Strong advertising and marketing campaigns.

Weakness Limited penetration in rural markets.

Stagnant market share for Dettol.

Opportunities Tie-ups with schools, hospitals, hotel chains etc.

 Better penetration in rural markets and emerging economies .

Threats People opting for ayurvedic & natural treatments can reduce
business

LIFEBUO
Y
Lifebuoy is a famous and distinctive brand of soap that was
created by the Lever Brothers soap factory in 1894. It was the first
soap to use carbolic acid, which gave it a red colour and strong,
medicinal scent. 
The brand went global in 1911 and began distributing to countries
such as the United States, Germany, Switzerland and Canada.

Lever Brothers and the Lifebuoy brand provided an affordable

product that promoted personal health and hygiene.
From its inception, the Lifebuoy brand committed to educating the
public about the dangers of germs and microbes. Lifebuoy also has
a history of helping people maintain hygiene in times of natural
disaster, for example, 1940 Blitz of London, 2004 Tsunami in Asia,
2005 earthquakes in Pakistan and northern India.

This specific brand of soap received some special screen time in

the 1984 comedy "A Christmas Story." 

Lifebuoy has 6 types of soaps in the Indian market: Lifebuoy

Active5, Lifebuoy Milk Care, Lifebuoy Cool Fresh Menthol,
Lifebuoy with Vitamin A, C, E, Lifebuoy Lemon Fresh and Lifebuoy
Nature Bar. The soaps have germ protection ingredient with
added ingredients like natural milk cream, peppermint oil,
vitamins, lemon extracts and neem and tulsi.

Tagline of Lifebuoy
HEALTHY HOGA HINDUSTAN.
 Unique Selling Proposition
Lifebuoy provides 100% better protection from germs as compared
to ordinary soaps.

Selling Price of Products:

To consumers – Rs 48
To retailers – Rs 45
To wholesalers – Rs 43

SWOT Analysis:

Strengths High consumer awareness for the brand of Lifebuoy.

First soap to use carbolic acid, which gave it a red colour and
strong, medicinal scent.
Most popular soap brand specially in the rural market.

Weakness Lower market penetration in urban areas.

Not been perceived as a beauty soap.

Opportunities Used global epidemics like swine flu to further promote

products for better hygiene and protection.
Imparting education about importance of hand washing to
prevent spread of germs.

Threats Considered to be a low-end product, and may find it difficult to

move up in the segment.

LUX
LUX is a global brand developed by Unilever. The range of products
includes beauty soaps, shower gels, bath additives, hair shampoos
and conditioners. Lux started as "Sunlight Flakes" laundry soap in
1899 but changed to "Lux" in 1900, a Latin word for "light" and
suggestive of "luxury.”

Lux has always targeted the concept and not a particular gender.
The concept is to present soap to consumer that smells nice,
enhances beauty and give you a glamorous feeling. 
The soap has managed to rope in the top celebrities to endorse its
rand and let audience believe that the soap is essential for getting
as beautiful as stars.
Lux was launched in India in 1929. The very first Lux advertisement
featured actress Leela Chitnis.

There are 7 types of soaps by Lux in India. They are Creamy

Perfection, Fresh Splash, Iconic Iris, Hypnotic Rose, Charming
Magnolia, Soft Touch and Velvet Touch. Each soap contains
imported foreign perfume and flower scents like, water lilies,
Moroccan iris, Egyptian rose, French Magnolia and roses and fresh
jasmine.

Tagline of Lux
LUX BRINGS OUT THE STAR IN YOU.

Unique Selling Proposition

 Lux stands for the promise of beauty and glamour as one of India's
most trusted personal care brands.

Selling price of products:

To consumers – Rs 47
To retailers – Rs 44
To wholesalers – Rs 41

SWOT Analysis:

Strengths Many variants (Almond oil, Orchid extracts, Milk cream, Fruit
extracts, Saffron sandalwood oil and Honey).
Strong brand promotion but relatively lower prices.
Strong market research.

Weakness Not much popular in rural areas.

Mainly positioned as beauty soap targeted towards women,
lack unisex appeal.

Opportunities Soap industry is growing by 10% in India.

Large market share – Strong hold over the market.

Threats High internal competition.

New entrants in this segment.

DOVE
The Dove brand was founded by Levers Brothers in 1957 and sold
only beauty soap bars. They have since expanded to produce a
wide range of personal care products including body wash,
deodorants, body lotion, facial cleansers, shampoos and
conditioners.
According to 2013 study, the Dove brand has highest number of
mentions on social media sites compared to other competitors.

Most of their ads have real women testing Dove products with
their own preferred ones, and give their opinions. This ad was
believable since they were uncensored and unscripted.
In 2004, they introduced the Campaign for Real Beauty. The
campaign uses unconventional women of all shapes, size, races and
ages to celebrate “real” beauty. Their pro-aged ad celebrates old
women who are not considered the stereotype of beauty. By this
Dove established a well-respected among the young and old.

In India, Dove has 3 types of beauty bars: Dove Rosa bathing bar,
Dove Original Cream bar and Dove Go Fresh Moisture bathing bar.
The Rosa bar combines a gentle cleansing formula with the 1/4 th
moisturizer. The Original bar has the mildest cleaners meant to
keep the skin naturally soft. The Go Fresh bar combines cucumber
and green tea to make the skin smooth and hydrated.

Tagline of Dove:
PUT YOUR BEST FACE FORWARD.

Unique Selling Proposition

 Dove provides deep Moisturizer for Dry Skin.

Selling price of product:

To consumers – Rs 60
To retailers – Rs 56
To wholesalers – Rs 53

SWOT Analysis:

Strengths Dove has got an excellent market presence due to positive

advertising.
Promises not to leave any residue on the skin.
Available in more than 80 countries worldwide.

Weakness Targets primarily only the female segment & products not
too popular with men.
 Intense competition for Dove in the FMCG market means
limited growth in market share.

Opportunities  Dove can increase its reach by further geographic expansion.

Can target male audience more purposefully.

Threats Fake imitations of the brand can affect Dove's image.

Global business can be affected by government policies and
fluctuating economies.

PEARS
Pears is the oldest continuous brand in the world.
In 1789, Andrew Pears, a Cornish barber, decided to create
something new, which was softer on the skin and more fashionable
for his socialite clientele. Made with glycerine and natural oils, the
soap smelled like an English garden, and had a transparent
appearance that set it apart from its competitors.

Pears was more interested in quality that quantity, so he sold his

soap only to an exclusive customer base. His choice paid off. His
business prospered. In 1851, he also won the prize medal for soap
at the Great Exhibition.
In the mid-1910s, Pears’ soap became part of Lever Brothers and
moved production in the north west of England.

From the early 20th century, Pears also organized a “Miss Pears”
competition, in which parents entered their young daughters in
the hope they would be became the new face of the brand.

In India Pears has 3 types of soap, targeted to different types of

skins: Pears Pure & Gentle, Pears Germ shield and Pears Oil Clear.

Pears Pure & Gentle comes with the formula to provide

moisturizing effect to your skin to make it smooth and perfumed.
Pears Germ shield, enriched with Mint effect is clinically proven to
fight germs while skin keeping it soft and supple. Pears Oil Clear,
supplemented with Lemon Flower extracts helps to remove excess
oil from your skin. 

Tagline of Pears
PURE AND GENTLE.

Unique Selling Proposition

It keeps your skin soft and smiling with innocence.
Selling price of the product:
To consumers – Rs 60
To retailers – Rs 56
To wholesalers – Rs 53

SWOT Analysis:

Strengths Has a strong heritage of over 200 years.

Transparency of the soap is shown as a sign of purity of
the soap.
Glycerine content is a sign of the gentleness in the soap.

Weakness High raw material costs for the soap leads to higher
selling price.
Not a mass-market soap.

Opportunities Remains a niche player in the soap market.

Pears need to work on liquid soap versions to tap
market.
Threats New competitors coming up in the market offering
same values at reasonable price.
 MY
PRODU
CT:
NATURE 4 YOU

NATU
RE 4
The name of my product is Nature 4 You.

YOU
I chose this name as it directly reflects the quality of the product.
The name gives a direct hint to its consumers about the contents of
the soap. The consumers in India, nowadays, gives a lot of priority
to an all-natural bathing soaps, realising the harmful effects that
chemical soaps can have on our health as well as appearance.

The product name is simple and to the point. It is a name that can
be trusted by the consumers. It also denotes the range of our
product.

FEATUR
ES OF
1. ItTHE
has 4 main different types of products.
2.PRODU
Each product is customized to a particular skin type.
3. Only natural oils like coconut oil, olive oil, lavender oil,
CT
peppermint oil, rosemary oil, almond oil, etc. are used.
4. Natural products like honey, bee wax, ground coffee, butter,
lemon zest, citrus peel, matcha powder, lavender flowers,
vegetable glycerine, ginger root, cypress and eucalyptus are
used in our products.
5. The soaps can treat facial defects like acne, skin cellulite, oily
skin, wrinkles and aging, dry skin, eczema, psoriasis, etc.
6. The range of products include Sandalwood & Turmeric soap,
Exfoliating Coffee soap, Citrus & Lemon Peel soap and Matcha
soap.

Unique
Selling
Proposition:
COMPLETELY NATURE-BASED PRODUCTS.

Range of
products:
 Sandalwood and turmeric soap – The soap contains pure
unprocessed raw cane sugar, sandalwood oil and turmeric. It helps
to gently cleanse and add natural oils to the skin. It has antiseptic
and antimicrobial properties and can treat a broad range of skin
disorders ranging from mild abrasions to acne to dermatitis.

Exfoliating Coffee soap – The soap contains ground coffee beans,

cinnamon oil, and cocoa butter. It helps in reduction of cellulite,
improved circulation, reduce premature aging of cells and gives
smooth skin.

Citrus and lemon peel soap – The soap contains sunflower oil,
orange, lemon and citrus peels, and cocoa butter. It kills bacteria,
soothes the skin and helps to heal skin irritations. It also gives skin
an extra dose of free vitamin C, resulting in a glowing, brighter
complexion.

Matcha soap – The soap contains matcha powder, tannins, indigo

fragrance and peppermint oil. It can help reduce puffiness and dark
circles. Because of its antimicrobial properties, it is the
perfect soap to rid the skin of active acne.

LICEN
SES
The manufacture of soaps is ruled under Drugs and Cosmetics Act
AND
and Rule. Basically, it is the State Drug Authorities of respective
States, who are authorized to issue manufacturing licenses.
PERMI
SSION
S

Firstly, a person applying for a manufacturing licence for

handmade soap needs to fill the application form 31 along with it;
the person is required to pay an amount of Rs 3,500 and Rs 2,500
as a government and inspection fee.
Secondly, the cosmetics for which the licence is being acquired
should be specified into classes of cosmetics, as has been
mentioned under Schedule M-II.
The person should have passed intermediate exam with Chemistry
as one of its subjects.
It is required to hold a diploma in Pharmacy which should be
certified and approved either under the Pharmacy Council of India
under the Pharmacy Act, 1948.
It is required to mention other information like the lists of
equipment, manufacturing facility details with minimum area
required for manufacturing, Technical Competent personnel
details, etc.
Apart from those details the licencing authority also considers
before approving the licence that whether the cosmetic is
misbranded or is a spurious cosmetic.

SOCIA
L company can bolster a company's
Being a socially responsible
image and build its brand.
MESS
AGE
Socially responsible companies cultivate positive brand recognition,
increase customer loyalty, and attract top-tier employees. These
elements among the keys to achieving increased profitability and
long-term financial success.

Since my company uses natural ingredients to make its products, it

makes sense to give back to nature what we are taking from it.

Social
messag
e:

ENJOY THE ENVIRONMENT, BUT DO NOT DESTROY IT

LOG
O
A logo is a combination of text and visual imagery that serves two
AN
purposes. It tells people the name of the company and it creates a
visual symbol that represents your business.

D
Significance
of logo: TAG
It grabs attention.
It makes a strong first impression.
It’s the foundation of your brand identity.
It separates you from competition.
It fosters brand loyalty.
Your audience expects it.

My Logo:

The logo of my company is the silhouette of a woman with petals

of flowers having the colours of the rainbow in them. The colours
of the rainbow, VIBGYOR, represents the natural ingredients
included in our products.
Violet for lavenders oil, indigo for natural fragrance, blue for
rosemary extract, green for eucalyptus and aloe vera, yellow for
bee wax, orange for citrus peels, and red for poppy seeds.

A tag line is a short phrase that captures and projects the overall
value you offer your customers. It is part of your brand identity
that provides clarity about who you are and the promise you
make to your customers.  

Significance
of tagline:
Taglines helps understand what your company’s products are.
It gives you a copyright over your brand.
It strategically solves your problem because it explains your
customer about you in a line.
Gives a significant character to your brand and differentiate it from
others.
It helps identify your brands.

My tagline:

GIVEN BY NATURE, MADE BY US, MADE FOR YOU

LABEL
LING
Labelling means putting identification marks on a product. A label
contains information about a product on its container, packaging,
or the product itself. It also has warnings in it.

Significance
 
of label:
 A label provides complete information regarding the product. It
mainly includes ingredients, its usage, caution in use, date of
manufacturing, batch number, etc. (DESCRIBE PRODUCT AND SPECIFY ITS CONTENT)
It is easier to identify a particular product among many with the
help of labelling. (IDENTIFY PRODUCT OR BRAND)
When a product has different qualities, labelling helps to find out
which pack contains what type of quality. (HELP IN GRADING OF PRODUCTS)
Labelling helps promote sales. Sometimes a consumer gets
encouraged to buy a product simply due to attractive label. (HELPS IN
PROMOTION OF PRODUCTS)

There are numerous labelling requirements which might be

specified by a regulatory body. Some of them include ingredients,
manufacturing plant, batch number, expiry date, MRP, safety
instructions, etc. (INFO REQUIRED BY LAW)

PRI
CIN
The factors to be considered while setting the price of the products
are as follows:
G
 Product cost
 Pricing objective
 Utility and demand
POL
 Competition in market
 Government policies
ICIE
S
1) Produce cost – Include all costs (costs of producing, distributing and
selling the product) and also include a fair return for undertaking the
marketing effort and risk.
Particulars Cost per
Kg/Lt/Piece
Raw materials 4,100
Fixed costs 12,300
Packaging costs 160
Transportation costs 3,000
Advertising costs 13,000

2) Pricing objective – The pricing objective is as follows:

 To maximise profit in short-term; charge maximum price
 Firm operating in competitive market; may charge lower

Since, we operate in a perfect competitive market with many other

brands selling similar products, we need to charge lower for our
product. But we also need to maximise our profit.
So, we may charge lesser profit percentage in the early stages and
then raise the percentage gradually.
The profit margin will be 5% - 10% on cost price.

3) Utility and demand – Since the utility derived from natural soaps is
more than that of ordinary soap, we can charge a little higher than
most of our competitors.
4) Competition in market – The prices of our competitors are as
follows:
 Dettol: Rs 54
 Lifebuoy: Rs 48
 Lux: Rs 47
 Dove: Rs 60
 Pears: Rs 56

The price of our competitors is in the range Rs 45 to Rs 60. Our price

will exceed this range, but it is shown that natural products are usually
a bit costlier than ordinary soaps.

5) Government policies – Products regulated by government pricing

regulations need to be priced as per government policies. But no such
regulations are placed on the pricing of durable products like soaps.

Price of my
product:

To consumer – Rs 70

To retailer – Rs 68

To wholesaler – Rs 65

Profit
margin of
my product:
To consumer – 8%

To retailer – 6%

To wholesaler – 3%

PACKA
GING
Packaging is the science, art and technology of enclosing or
protecting products for distribution, storage, sale, and use.
Packaging also refers to the process of designing, evaluating, and
producing packages.

Significance of
packaging:
Their function is to protect the product from damage. (PRODUCT PROTECTION)
 A beautiful packaging attracts the consumer toward it. (PRODUCT PROMOTION)
It differentiates product of one brand from another. (PRODUCT DIFFERENTIATION)
It contains useful information which helps the customer may his choice
while buying the product. (PRODUCT INFO)
(PRODUCT PROTECTION)

TYPES OF
PACKAGING
1. Primary Packaging – Primary packaging is the one, which is the
immediate layer of packaging which gets directly in contact with the
product. It will keep the product completely sealed off from the
environment.

2. Secondary Packaging – Secondary packaging assembles primary

packaging like, the products having primary packages can be
collectively packed inside the secondary packaging.

3. Transportation Packaging – Tertiary type of packages are used to

deliver and transport their goods.

Packaging
used for my
product:
1. Primary packaging –
The primary packaging will be made using recyclable materials
only. The soap bar is going to be wrapped in composable wax
paper and cotton threads will be used to bind it.

2. Secondary packaging –

The secondary packaging will be a medium sized recycled circular

cardboard box holding 4 pieces of soap bars in it. The box will have
the company logo for identification purpose, as well as the label on
it.

3. Transportation packaging –

A large square box holding 15 boxes of secondary packaging will be

used while transporting the products.

CHAN
NELchain of businesses which form a
Channel of distribution includes
network to help in transfer of title of a product from the producer
to the end consumers. There OFare 2 types of channels, direct and
indirect channels.
DISTRI
Direct
Channel: BUTIO
N
 Zero Level – A direct relationship is established between
manufacturer and consumers. E.g. mail order, door to door selling,
etc.

Indirect Channel:

The indirect channel of distribution involves people in between the

producer and consumers. Depending on the number of middlemen
these indirect channels of distribution can be classified as follows.

1. One level – In this one intermediary, i.e., retailer is used between

manufacturer and consumer. It is used for specialty goods, like
expensive watches, cars, etc.

2. Two Level – This channel is used mainly for distribution of consumer

goods. E.g. soaps, salt, etc.

3. Third Level – In this case, manufacturer use their own selling agent or
broker who connect them to wholesaler and then retailers and finally,
consumers.

Which
distribution
channel
Two will I –
Level Channel
use?
I will be using the Two-Level Channel to distribute my products in
the market. When there are two levels, different kinds of
intermediaries are in between the producer and the consumer. In
other words, under this channel, the manufacturer sells the
product to the retailer and who finally sells to the consumer. This is
also called as distribution through wholesalers and retailers.
 Reasons for
selecting it:
1. Focus on product – With not having to worry about the distribution of
his product, the manufacturer can focus more on improving his
product.

2. Easily available feedback - Retail chains know which products sell well
in their specific areas of coverage. Their feedback can prove valuable in
making a product that more customers need and want.

3. Wide customer reach - Established distributors can readily tap a

network of retailers and other distributors to help with market
coverage.

4. Reduced cost – Manufacturer doesn’t have to pay to set up any new

distributing channels, warehouses, transportation, etc. as it will be
taken care by the wholesalers.

WAREH
Warehousing is the act OUSING
of storing goods that will be sold or
distributed later. Warehousing is the act of storing goods that will
be sold or distributed later. 

Significance
of
warehouses
:
1. Central storage location – A centralized location for all your
storage needs help to decrease the creation gap. This means you
can get, store, circulate, and deliver products effortlessly to save
time and cost.

2. Offers additional storage – Our products need to be safe from

harm and robbery. Essentially, warehouse space is incredible for
putting away surplus products, which clients and customers don’t
require promptly.

3. Improved production quality - An effective warehouse centre

following framework likewise enables you to work with your
merchants and providers to recognize and limit defective raw
materials. This causes you to save time as you won’t have to
complete control at your office.

4. Risk management - A warehouse additionally gives safe care of

transient products. You can use cold storage and refrigeration to
avoid product spoilage. Also, your merchandise is protected, so you
can anticipate full pay if there should be any harm or misfortune.

Number of
warehouses
As the number of products made is not very huge, 2 small sized
used:
warehouses will be enough to store my products. Since the soaps
are needed to be kept in a cool, dry climate, it will preferable if the
warehouses are well ventilated or have air conditioning facilities.

Location of
warehouses:
Since the soaps need to be delivered to a wide range of stores in
the least time possible, the location of the warehouses will need to
be centrally located and equidistant from all major departmental
stores, grocery shops and cosmetics stores.

Size of
warehouses
used:the number of warehouses is less and its size is also not very
Since
huge, we can opt to rent out the warehouses rather than buy our
own warehouse.

TRANSP
ORTING
Transporting means take or carry (people or goods) from one place
to another by means of a vehicle, aircraft, or ship.
Transportation helps in mass production. Whether it is to purchase
and bring raw materials or it is to distribute finished goods, one or
the other means of transport is necessary.
 FEATURES
OF
1. TRANSPORT
Physical supply of products – Transportation carries necessary raw
ING
materials to factory for production of goods and supplies finished
goods to consumers. It creates place and time utility of goods by
transporting from one place to another.

2. Specialization – Transportation facility encourages division of

labour and specialization on geographical or regional basis.
Transportation cost highly affects localization of industries. 

3. Mobility of labour and capital – Transportation facility provides

mobility to labour and capital. If more labour force is available at
any place, transport helps to carry it economically to necessary
place.

4. Stabilization in price – Transportation helps to bring stability in

price of different products. It transports goods from more supplied
places to scarcely supplied areas.

What
transportation
I will use and
why?
Since the product is durable and can last for a long time, and is
also, in bulk, we do not need any special protection during
transportation. Also, keeping cost efficiency in mind, expensive
modes of transport like airways or waterway should be avoided.

Thus, road transport will be used to move the products.

 Road transport provides following advantage over other modes of
transportation:

i) Cost-effective
ii) Quick and scheduled delivery
iii) Flexible service
iv) Savings in packing cost as compared to other modes
v) Track and trace of cargo and truck
vi) Economical means of transport

However, since tempo transport is somewhat limited in its carrying

capacity, we will need 2 to 3 transport trucks, to ensure that the
supply of goods is continuous and enough to satisfy consumer
demand.

Another limitation is the heavy traffic on roads. So, the shortest

and fastest route only will be used for transportation. Also, peak
traffic times will be avoided at any cost.

PROMO
TION &
In marketing, promotion refers to any type of marketing

SCHEME
communication used to inform or persuade target audiences of the
relative merits of a product, service, brand or issue.

S
Promotion mix refers to combination of promotional tools used by
an organization to communicate and persuade customers to buy its
products.
 It has 4 elements:

 Advertising
 Personal selling
 Sales promotion
 Public relations

1. Advertising – Most commonly used tool of promotion. It is an

impersonal form to communication, which is paid by the marketers
(sponsors) to promote goods and services. Common mediums are
newspaper, magazine, television & radio.

Importance of advertising is as follows:

i) Mass reach
ii) Enhancing customer satisfaction and confidence
iii) Economic benefits
iv) Expressiveness
v) Identified sponsor
2. Personal selling –It consists of contacting prospective buyers of
product personally, i.e., face to face interaction between seller and
buyer for the purpose of sale.

Features of personal selling is as follows:

i) Personal contact is established

ii) Oral conversation
iii) Quick solution of queries
iv) Receipt of additional information
v) Development of relationship with prospective customers
3. Sales promotion – It refers to short term incentives/ other promotion
activities that seek to stimulate interest, trial or purchase.

Techniques of sales promotions is as follows:

i) Product combination
ii) Instant draw and assigned gift
iii) Quantity gifts
iv) Refunds
v) Sampling

4. Public relations – It is defined as a strategic management function

that adds value to an organization by helping it to manage its
reputation.

Tools of public relations is as follows:

i) Press release
ii) Brochures
iii) News letters
iv) Websites

Advertising
used for my
1.product:
Internet – A website will be set up on the internet to create
awareness for my product. Various social media sites will also be
used for this purpose. The brand will have its own Facebook
account. It will also be listed at sites like Yelp, Twitter,
Instagram, YouTube.
2. Local advertising – Renting a booth at the local markets or fairs
will be very advantageous. Free samples of the soap can be
distributed to potential buyers. Fliers can be posted at
community bulletin boards, mail to locals or handed out at social
events.

3. Wholesale ideas – Emailing, calling or visiting wholesalers and

offering printed materials and samples of the handmade soaps
for wholesale purchase or consignment sale consideration
would help in making the presence known in the market.

4. Craft festivals or DiY shows – Craft fair could be a really good

way of raising awareness within local community as well as
receiving invaluable face to face feedback on your new products.
It is also a very cost-effective way of reaching an appropriate
audience for your product.

Personal
selling
used:
Door-to-door step selling will be required in the early stages.
Salesmen who are well informed about the product and its
features, as well as the brand, need to be hired. They should also
brilliant communication skills, and be able to inspire the customer’s
trust in the product and be persistent.
At least 5 to 6 salesmen need to be hired to cover a wide area.
These salesmen will also take surveys, regarding the customers
preferences, if any changes should be made to the product that will
help boost its sale, solve any queries of the customers and offer
additional information which may not be available elsewhere.

Sales
promotions
1.methods
Sampling – It is used predominantly in the cosmetics industry.
Offering a free bar of soap on the customer’s daily purchases is a
used:
good strategy for promoting your product.

2. Product combination – All the 4 types of soaps can be sold

together as a combo at a lower price, to attract the customers.

3. Contests – Since our brand is environment friendly and also has

a social message of protecting the nature, quiz contests can be
organized on simple environmental topics and winners can be
awarded the gift baskets, containing a range of products.

4. Exhibitions – We can display our products at cosmetics industry

exhibitions and trade shows like, HPCI India, Professional Beauty
India and Cosmo Tech Expo, where there is a high chance of
building a customer base.

5. Quantity discount – Higher discounts should be given at

purchase of more quantity of products.
 Public
relations
1. techniques
Press release – A public announcement on local radios,
community events, internet and social media platforms would
used:
help jump start the business.

2. Brochures – Booklets containing information on the brand and

its social message, along with details about the products should
be made available to potential customers and displayed at
grocery stores, departmental stores, chemist shops, etc.

3. Website – An official website will be designed to provide

information to potential customers about the brand and its
mission. Online orders can also be placed from the website and
many additional benefits can be availed from the site itself.

Schemes for
wholesalers
:
1. Rebate – Rebate of 10% to 15% shall be offered to wholesalers
who place an order for more than 1000 units of soap.
2. Discount – If a wholesaler has been placing orders with us
continuously for more than 5 months, he will be offered 20%
discount on his purchase.

3. Personal gifts – During festival season, upon purchasing a large

consignment, the wholesaler will be offered up to 50 gift baskets
free of cost, with extra gifts like scratch cards, lottery tickets, etc.

Schemes for
retailers:

1. Incentives – Benefits like cash refund, samples, heavy rebates,

comfortable credit facility, premiums, loyalty schemes, coupons,
mementos, etc. will be offered to the retailers.

2. Free transport – Retailers would not have to pay to get the

products in their stores. The products will be delivered directly
to the store. They will merely have to promote and sell the
product.

3. Sample services – Free samples of all soaps will be provided to

the retailers to try for themselves. It will give them a better
understanding of the product and will help them in promoting it.
Only after the retailer is completely satisfied with the product,
they would buy it.

Schemes for
customers:
1. Coupons – Customers can get discount coupons or free coupons
in the newspapers and magazines, which they can use to buy
the products. Coupons specially for birthdays and festivals will
also be made.

2. BOGO – Buy one get one free offer shall be made available to
the customers.

3. Seasonal offers – Special offers like 50% off, free gift combo,
etc. will be offered during festival seasons.

4. Customisation service – Customer can fill an online or physical

form stating its specific requirements for the soap, and a unique
soap will be created for them specially.