CLEAR HANDS

INTRODUCTION

LIQUID SOAP MANUFACTURING

Unlike cold process soap, it is ready to use immediately after the process is complete. Our liquid soap is made via hot process. This method completes the saponification very quickly. If you have cold process soapmaking experience, so much the better!

We use potassium hydroxide to saponify the oils in liquid soapmaking. In bar soapmaking we use sodium hydroxide. The potassium hydroxide molecules are larger than the sodium hydroxide molecules. It is this size difference that enables the potassium hydroxide to maintain a liquid state.

Safety rules in liquid soapmaking are the same as in cold process soapmaking. When your soap is cooking, it will still be very caustic and sticky, especially at the beginning.

Putting required amount of distilled water into soap pot. Then adding potassium hydroxide since it generates more heat than sodium hydroxide, it is important to insulate the bottom of the soap pot. The water will approach boiling. Then we prepare the oils. In liquid soapmaking, we blend the soap base well beyond trace.

As the cooking progresses, the free oils will absorb into the soap mass. As the soap cooks, it will convert to gel phase. It usually takes 4-8 hours of cooking to finish the soap.

Hamdard University Page 1

CLEAR HANDS

MARKET ANALYSIS

For market analysis we used

porter model a tool to get

directions for the right actions, as

Porter model is one, which

describes about the market

analysis on the basis of the

predetermined factors. The

analysis is given as below:

Industry Competitors

On the basis of this variable we identified that in the field of making such an item, we

only have one local player, which is fierce competition as many of the other imported

hand wash are already operating in the market.

New Entrants

By analyzing the market on the basis of this variable we identified the fact that one of the

biggest operator of soap is already there in the market and we hope after entering in the

market with such a product with we will provide a great USP. The problem that we

Hamdard University Page 2

CLEAR HANDS

identified is that there are so many rivals which are not only threat to us but they are

sharing the profit margin as well as market share in which we are going to operate.

Suppliers

The strategy that we are interested in supplying of the product is that we will be going to

engage a big distributor operating in the local market with us in the initial stages while

doing that on the other end we will strive to develop our own “Supplier force” in the form

of riders. The thing that we recognized during the planning stage while keeping in view

the real scenario that is being took by the help of survey is that new entrants in such a

market can be successful if there is a strong distribution channel is working behind them.

Substitutes

While surveying the market we observed that many products are already with the exact

alternative of the offerings. By surveying we also found that we also have mild products

present in the market, which will be giving us competition when we will in the battle

field.

Hamdard University Page 3

CLEAR HANDS

COMPETITORS ANALYSIS

With the help of the basic research we found that our major competitor in launching our

liquid soap is:

Hamdard University Page 4

CLEAR HANDS

COMPETITOR’S ASSESSMENT

Hamdard University Page 5

Dominant

Strong

Favorable

Tenable

Weak

Nonviable

WE are here

Competitor

CLEAR HANDS

SWOT ANALYSIS

Strengths

Unique Selling Proposition: In comparison to the competitor we are offering more

flavors and premium quality with the same prices.

Brand Name: Clear Hands has its brand name. Its fragrance and its easy name will make

it more famous in its target market.

Ingredients used: The ingredients used are from the nature like Sunflower Oil, Coconut oil, Potassium hydroxide, distilled water, boric acid, fragrance, etc.

Hygienic Environment: Clear Hands is produced in a hygienic environment, which is

necessary part for the society and to meet the customer’s expectations.

Quality standards: Clear Hands maintain premium quality and high standards in order

to compete with the competitors providing international level of product (e.g.: Lifebuoy).

Equipped with latest in-house lab: To get the best possible results Clear Hands has the

best-equipped lab ensuring the high quality assurance and standards.

Hamdard University Page 6

CLEAR HANDS

Strong distribution network: Clear Hands has a strong distribution network by a

contact with the dealer to deliver goods on time.

Weaknesses

Price fluctuations: The fluctuations in the prices of some of the ingredients may vary

price, which may affect our profits.

More cost due to oil outsourcing: For hygiene purpose we use the finest quality oils

which increases its costs because we believe in best quality and not in massive profits.

Opportunities

Rich in Quality and quantity: We provide the best quality and more quantity in

comparison to our competitors

Diseases: In Pakistan, a large number of children are also affected by some of fatal

disease like diaorrea every year. It’s been estimated that if everyone washed their hands

properly at key times during the day, up to half of all childhood deaths from diseases

could be avoided.

Product Variants: with the passage of time we will make it possible to introduce new

range in our products.

Hamdard University Page 7

CLEAR HANDS

Technological Aspect: with the adaption of newer technology we will try to beat the

competitors and try to capture the lion’s share in the market.

Threats

Increase in cost of ingredients: Due to the rise in the oil prices, the profits can decrease.

For that we have planned to make a database of suppliers to keep fluent supply of the raw

material in the bad times and the other thing is we do believe in economies of scale so we

will try to be best in buying the raw material.

Competitor launch same product: if a competitor or leader launches the same product

with more quantity Clear Hands has the threat of sharing the market but for that we have

planned that with that time of rivalry we can put our prices little bit down to give tough

competition to the opponents.

Hamdard University Page 8

CLEAR HANDS

MARKET SEGMENTATION

Office Buildings

Office building restrooms are becoming more, hygienic and more user-friendly. Our products increase the satisfaction of restroom patrons, which is a key component of tenant retention. In addition, our washroom products:

Enhance your building’s overall image– Lower cost-in-use– Offer environmental benefits– Improve labor productivity

Tenants and employees will appreciate a more hygienic washroom. We can lead the way in providing innovative hygiene solutions for the washroom.

Educational Facilities

From primary to higher education, our product combine reliability, performance and innovation to meet the hygiene needs of educational facilities.

Our innovative hygiene products help prevent the spread of disease and reduce absenteeism in your facility. Our washroom products:

– Control costs– Make restrooms easier to clean– Improve labor productivity– Provide environmental benefits

Faculty/staff members and the student body will appreciate a cleaner washroom.

High-Volume Public Facilities

Our product creates a positive experience for your patrons while moving them through the washrooms quickly and safely.

Our products minimize delays, your washrooms are cleaner to the senses and the image of your facility is enhanced. Our products also provide:

Hamdard University Page 9

CLEAR HANDS

– Lower cost-in-use– Improved labor productivity– Environmental benefits

Patrons will appreciate a more hygienic washroom, and you’ll benefit from an enhanced image.

Home

Every family requires a clean and healthy environment for their family members. Our product provides a positive experience of experiencing hygiene in the family.

Hamdard University Page 10

CLEAR HANDS

PRICING STRATEGIES

Procedure of price setting

Clear Hands has to consider many factors in setting its pricing policy.

Hamdard University Page 11

CLEAR HANDS

PRODUCT/OFFERING

Hamdard University Page 12

Product Name Clear Hands

Product flavors Coconut, Strawberry &

Lemon

Product Color Transparent Bottle with color

of the flavor

New Weight 250 ml

Product Price Rs. 95 per unit

CLEAR HANDS

PRODUCT’S UNIQUE SELLING PROPOSITION

USP of the offering is the net weight, which is almost double in comparison to the other

opponent products in the given prices of 95 rupees per unit.

PACKAGING

The root causes of choosing such colors and product of the packaging are

The colors of the products are eye catching which will attract the customers and

help in selling the product.

BRAND NAME

The causes of choosing such a brand name are

Its easy to pronounce

Its very easy to remember

Its attractive

Its reflects back the quality of the product (Hygiene)

Hamdard University Page 13

CLEAR HANDS

PRICING OF PRODUCT

Selecting the pricing objectives

The pricing strategies followed by Clear Hands are

Product Quality Leadership:

Clear Hands aims to be the product quality leader in the market by providing premium

quality at standard or market price.

Market share maximization

Clear Hands with the USP of more quantity with equivalent price can boost the sale and

will increase the market share against competitors.

Hamdard University Page 14

CLEAR HANDS

Analyzing Competitor’s Price

Within the range of possible prices determined by market demand and cost, competitors

cost, prices, and possible price reaction help the firm establish where to set its prices. The

company needs to benchmark its cost against its competitors cost to learn whether it is

operating at a cost advantage or disadvantage. The company also needs to learn the prices

and quality of competitor’s offers. Once the company is aware of the competitor’s prices

and offers, it can use them as an orienting point for its own pricing.

To have an idea about the situations that our competitors are facing about the pricing of

product we conducted a survey and identified some of the facts that are being given

below in the tabulation form.

Product Name Retail Price Buying Price Net Weight

Lifebuoy Rs.99.50/- Rs.100/- 200ml

Hamdard University Page 15

CLEAR HANDS

Selecting Pricing Method

Giving the three C’s – the customer demand schedule, the cost function, and competitors

prices – the company is now ready to select a price.

Clear Hands resolves the pricing issue by selecting a pricing method that includes one or

more of these three considerations. The pricing method will then lead to a specific price.

Going rate pricing Method

In going rate pricing, the firm pays less attention to its costs or demand and basis

its price largely on competitors’ prices.

Clear Hands is implementing going rate pricing method by

Charging almost the same as competitors.

Giving them more value on the same price.

Selecting Final Price

In selecting the final price, the company must consider additional factors, including

The influence of other marketing mix elements on price.

Company pricing policies.

The impact of price on other parties.

Hamdard University Page 16

CLEAR HANDS

PROMOTIONAL STRATEGIES

There are 5M’s of Advertising. Clear Hands can be placed in these following 5 M’s

Mission

Clear Hands Advertising mission is to provide information about

awareness of hygiene and best quality that can be provided in the same

prices to its customers by different advertising channels and from

different advertising campaigns.

Money

For advertising Clear Hands has set a range of budget i.e. Rs.15,00,000

for starting 6 months for different advertising campaigns.

Message

By launching Clear Hands customers have the benefits of having the

exclusive product with in no time.

Media

Clear Hands will advertise through different media channels like,

Newspapers

Billboards and Banners

TV Ads (through the TV/Cable Advertisement)

Radio & outdoors selling.

Hamdard University Page 17

CLEAR HANDS

Measurement

Clear Hands will conduct a post research from different Sale Points

(survey from wholesalers, retailers, and direct from customers) to grip

the feed back and analyze that with the help of which current and

future planning will be done.

Promotion Tools

Clear Hands has set a promotional budget for advertising its product for six months i.e

Rs.15,00, 000.

Billboard Advertisement

There will be only 6 billboards in the city on different locations, which are

North Nazimabad

Korangi crossing

Shahrah-e-Faisal

Clifton

Gulistan-e-Jauhar

Gulshan-e-Iqbal

Hamdard University Page 18

CLEAR HANDS

Television Advertisement

Promotional advertisement will be aired through different Cable operators for that we

have been given a cost which is described in estimated cost section .

Hamdard University Page 19

CLEAR HANDS

CHANNELS OF DISTRIBUTION

We believe in extensive distribution of the product because our aim is to deliver value to

every corner of the targeted market. To achieve this goal we have designed the strategy as

follows

1) Initially we will outsource the delivery channel which will be a known and

one of the biggest distribution channels of the local market.

2) On the other hand we will try to develop our own distribution team which will

consist of the riders and secondly we will try to add loading carts to our

distribution channel later

Initially Clear Hands will be distributed through 2 different channels of distribution

which that are shown as follows

Hamdard University Page 20

CLEAR HANDS

Mode of Distribution

Safeguard also uses trucks to deliver goods in Karachi. Clear Hands will use Safeguard

trucks to deliver and distribute our products.

Distribution Objectives

Cost Minimization

Hamdard University Page 21

Manufacturer…

Retailers

Wholesalers

Retailers

Final Consumers

CLEAR HANDS

In order to minimize the cost of distribution, we will try to develop own

distribution workforce in later phase.

In some cities, we will only distribute to the wholesalers.

Distribution Scope

Selective Distribution

Selected outlets of Karachi initially

Super Store, Super Market Big General Store/outlets, wholesalers of Karachi

Only.

Clifton, Defense, KDA, North Nazimabad, Garden, Gulshan-E-Iqbal, PECHS.

If successful then we will introduce in all major cities of Pakistan and also go

for export.

RECOMMENDATIONS

1. The Advertising budget is too low. The budget for the advertising should increase

with increment of Sales.

2. Events sponsorships should be aligned with the image of the brand and the value

proposition. Clear Hands should concentrate on programs like Expo Centre’s show or

other competitions to increase the awareness among the people.

3. Introductory prices should be used for Limited Time Offers.

Hamdard University Page 22

CLEAR HANDS

4. Since the number of billboards are very limited. The company can attempt to increase

this figure by using more hoardings that are product oriented. This step can have a

very positive affect on sales for our product.

Hamdard University Page 23