This document outlines a marketing plan for a new hand sanitizer brand called Hygeia. The 5-member team proposes a low-cost leadership strategy to gain market share. Their hand sanitizer will be differentiated based on herbal ingredients and scent varieties. Penetration pricing will be used initially. Distribution will utilize both direct and indirect channels like online, franchises, distributors and retailers. Promotion will target middle-income families through ATL and BTL strategies with the key message of staying safe and clean. The annual budget allocated is 1.6 crore INR.

1. GROUP MEMBERS:
ASHWIN.K (PGDMB17/032)
JAYESH KUKRETI (PGDMB17/063)
MILAN AGRAWAL(PGDMB17/081)
MISHA NIGAM (PGDMB17/172)
SAM VARUGHESE (PGDMB17/116)
SRIRAM K (PGDMB17/141)
MARKETING MANAGEMENT - 2
Group Project- 1
(Group – 7)

2. Core Strategy:
Low Cost Leader:
Cost can be reduced in two ways:
1. Control cost drivers:Drive down the costs of value chain activities by doing a better job than
competitors.
2. Revamp value chain: By-pass some cost producing activities.
Low Cost Strategy & Cost drivers:
By identifying the different cost drivers, we can detect our cost position in relation to our rivals (and how it
differs), and we can investigate ways of how we can improve our cost efficiency.
Various Cost Drivers & its characteristics:
 Economiesof scale:Manufacture productinbulk.
 Economiesof Learning: We letour employeesto learnwork while doingthe work,avoidingany
trainingprogram. Thiswill save ours’ trainingcostonnew employees.
 Capacity Utilization:Duringthe periodof ‘low demand’we cangive ourfixedassetonrent
while duringhighdemandwe canpushthe output beyondthe normal full-capacityoperation
 Linkages: we can linkthe differentdepartmentwork toreduce hierarchy andtoavoidhiringmore people.
 Degree of Integration:we will tryto buy qualityraw material atthe cheapestprice andcontrol
the supply& distributionof producttoavoid,highinventorycost procurementand
transportationcosts
 Location: Locationwill play an imp.role in fixedcostforour company,like cheapestrentedland
, easilyavailable of transportation&raw material canreduce our fixedcost.
Differentiated Product:
Product Innovation: Aloe-Veraandwe are offering uniquecolorsandfragrance.
Packaging: Handy andattractive.
Simplicity: Easy in use & Non-sticky.
Our core values: Customersatisfaction, Quality &Resultoriented.
Product Attributes:
Color: Golden,pink,purple,Transparent
Smell: Sandal,Strawberry,Lavender,Natural
Touch: Gel.
Quantity: 60ml
Material composition: Alcohol (isopropyl alcohol)orethanol,Aloe-Vera,Vegetable Glycerin,Essential
oil (WithAnti-septicproperty),Water.

3. Branding:
Design:
Logo:
Message: A betterWay to Clean.
Packaging:
Front Label:
Back Label:
Product Support Services:
Post-purchase support:
Under any circumstances;
Contact Us: Address:Hygeiapvtltd.
Customercare number:0123456789 Email id:Hygeia.pvtltd@handsanitizer.com
Product Line Decisions:
Product Line Length:Item in our product lineis only one i.e. “Gel Based Hand sanitizer”.
Expanding the product line:We can expand ourproductline intwoways:
Line Filling:Infuture we will launchFoamandLiquidBasedHandsanitizer.
Line Stretching: In future we can launchhighrange Hand-Sanitizerofferingmore varietieswithdifferent
fragrance,sizesandshapes.
PRICING STRATEGY:
Penetration Pricing:
A penetrationpricingstrategyisdesignedtocapture marketshare byenteringthe marketwithalow
price relative tothe competitiontoattractbuyers.
The ideais that the businesswill be able toraise awarenessandgetpeopletotrythe product.Even
thoughpenetrationpricingmayinitiallycreate alossforthe company,the hope isthat it will helpto
generate word-of-mouthandcreate awarenessamidacrowdedmarketcategory.
Attribute Economy
Pack
Standard
Pack
Family
Pack
Quantity 60 ml 100 ml 200 ml
Price (Rs.) 50 80 150
Price/ml 0.83 0.8 0.75

4. PLC:
INTRODUCTION:
Pricing- Tobe lowpenetration
pricingto buildmarketshare
rapidly
GROWTH:
Pricing- Ismaintaineddue to
increasingdemandwithlittle
competition.
MATURITY:
Pricing- Tobe lowerbecause of the
newcompetition
DECLINE:
Pricing- Reduce costsandcontinue
to offerit,possiblytoaloyal niche
segment.
Distribution strategy:
As we are a new entrant, we plan to follow multi-channel distribution system,
 Traditional approach
 Online
 Franchise
Distributionchannel design:
Channel Objectives:
Direct:
Online: Consumerscanpickup theirfavorite type of handsanitizerwithoutgoingtoretail shops.
Franchise: We planto franchise ourbrandto many thirdpartiesbyinvestingsome amountof capital.The
franchisee will agree toimplementourstrategyandpays an initiationfee andongoingfees.
Hygeia
(Manufacturer)
(ManufacturerDirect Indirect
Online Franchise
Distributor
Wholesaler
Retailer
Consumers

5. Indirect:
Distributor: Frommanufacturingplantthe productissentinbulkto distributors. Marginwouldbe 10-15%
for distributorsinadeal thattheyshouldbuyminimumnumberof productsatany cost.
Wholesaler: Fromdistributors towholesalers.
Retailers: Customersare facingretailersdirectlytobuythe product.Hence retailersshouldbe monitored.Initially
we ask retailertoconvince customersbyexplainingdifferenttypesof ourproductwhichare basedonsegments.
Distributionchannel breadth:
Whencustomerslimitsearch,productsshouldbe easilyavailable.Inindirectchannel we decide to
followintensive distributionoption.Itisacritical strategicthrust forour product.
Evaluationof Distributors:
We have the followingcriteriainselectingourdistributorsandtheyshouldhave,
 Adequate marketcoverage
 Appropriate size todo business
 Creditandfinancial condition
 General reputationamongcustomers
 Sellingcapability
Promotion:
Decisions on Target audience:
The main targetof our companyHygeiaisthe middle classgroup.We have alsosetour target onthe rural market
as most of the rural marketisuntapped.Special emphasiswill be laidonwooingthe female sectionbecauseina
middle classfamilywomentake all the householddecisionsandhence the womenare the decisionmakers.
Communication objectives:
 Creatingawarenessaboutournew product
 Creatinga brandimage.
 Stimulatingawantor desire andachieve asale.
 Showall 4 variantsof our product.
 Introductionof herbal ingredients.
 Protectionagainstawide range of unseengerms(includingbacteria&viruses) 99.99%.
Key Message:
A motherreturnshome aftertiringdayat workand the rest of the familyiseagerlywaitingsothatshe serves
some foodand she rushesintothe kitchenandtakesutensilsforcookingandthenshe seesherchildplayingand
immediatelyshe realizesthatshe needstowashherhandswithHygeia.
“Stay safe andStay clean”
Communication tools:
We will be usinga marketingcommunicationstrategy,whichinvolves ATLandBTL strategies.ATLstrategieslike
printmedia,social media,newspapers, television,andradiowill be used.Attractivepackagingwill alsoincreaseits
popularityamongcustomers.All the productshave ahandon theirorange coverto indicate itscaringnature.
Yearly Budget (In INR):
ATL cost: 1.5 Crore
BTL cost: 50 lakhs
Overheads:10 lakhs