Marketing strategies for market dominance and improved visibility of the Imperial leather brand on the Ghanaian market. Did this as part of the Graduate Trainee recruitment process at PZ Cussons Ghana.

1. POSITIONING IMPERIAL LEATHER AS THE BEST SELLING
LUXURY SOAP BRAND IN GHANA
A PROPOSAL TO
HR DIRECTOR
PRESENTED BY
ASHER WILSON
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2. Table of Contents
1 Executive Summary……………………………………………………..3
2 Market Analysis Survey………………………………………………...4
2.1 Factors Affecting Buying Behavior………………………………....4
2.2 The Challenge ……………………………………………………….5
3 Strategies and Implementation……………………………………......6
3.1 Everyday Luxury………………………………………………………6
3.1.1 Social Media Marketing ………………………………………6
3.1.2 Gift Set Package: Product and Promotion……………………....7
3.1.3 New Toilet Soap Varieties…………………………………….7
3.2 Benefits of Proposed Solution……………………………………….8
4 Costs………………………………………………………………………9
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3. 1. Executive Summary
The toilet soap industry remained profitable despite the turbulent
Ghanaian macroeconomic environment precipitated by the global recession
of 2008. This resilience to market pressures is buoyed by increased market
demand for a product which is regarded as part of our everyday lives. The
stabilization of the Ghanaian economy due to sound macro-economic
policies coupled with the recent production of oil in commercial quantities
will see the development of a burgeoning middle-class society that will
appeal for luxury personal care products.
PZ Cussons stands in good stead to capitalize on this market development
with its Imperial Leather brand of luxury soap. However as it stands today,
a combination of unfocussed marketing campaign, amorphous brand image
and low brand visibility has slowly caused Imperial Leather to lose
connection with consumers who cannot justify its high price.
In order to halt its dwindling fortunes and reposition the brand to increase
its market share a three pronged approach is proposed. It involves
venturing into social media marketing, introduction of a gift set package
and the production of new varieties of its luxury toilet soap.
These innovative recommendations will enable PZ Cussons to stay ahead of
the competition through increased brand visibility, value addition and
product differentiation. PZ Cussons will then claim leading position in the
luxury soap market and consequently catapult the Imperial leather brand as
the number one selling luxury soap brand in Ghana.
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4. 2. Market Analysis Survey
Soaps are a personal-care product and many customers develop deep
psychological bonds with their soap brands. The Ghanaian market is
segmented by price, by scent appeal, and by brand personality with the
most dominant brand name players being Lifebuoy, Lux, Geisha, Rexona,
Medisoft, Premier and Imperial leather.
2.1 Factors Affecting Buying Behavior
Price is the most important factor which affects the buying behavior of
consumers, various price segmentations have emerged namely premium,
discount and economy. Imperial leather, Lux and Nivea occupy the
premium market of soaps with increasing competition from such brands as
Irish spring, Palm Olive and Dove. Growth is expected from this segment as
the middle income bracket in Ghana expands and the premium brands will
be the best to benefit.
Another important factor which affects the demand of soaps is the
penetration which the products have in the market. In this regard many
consumers complain about the low visibility on the market of Imperial
Leather with some even questioning its availability. Unilever with its
nationwide distribution network is currently has the enviable position of
being the premium soap market penetration leader with its brand Lux.
Brand personality is also increasingly becoming a major factor affecting
Ghanaian consumers purchasing decision. It reflects the collection of
experiences that the public has with the brand; differentiates while creating
a lasting impression in consumers’ minds. With the burgeoning middle class,
Ghanaian consumers have become more selective preferring brands they
can identify with their lifestyles.
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5. 2.2 The Challenge
In the mid-nineties Imperial leather was the best known brand of
premium range personal care products, but was also successful in the middle
and lower market segments through a mix of targeted ads and a consumer
base that had few options to choose from. But with increased competition
from long standing rivals Lux and aggressive marketing and product visibility
from new foreign imports Nivea, Irish Spring, Palm Olive and Dove, who
appeal as trendier, youthful and more vibrant brands, Imperial Leather is
slowly losing its market share.
Imperial Leather due to its laidback promotional strategies, listless and
amorphous brand personality has lost touch with the younger generation who
having heard about the brand has never been seduced into actually
purchasing its products. If this situation persists, Imperial Leather may not be
able to compete let alone become the best selling luxury soap brand on the
Ghanaian market.
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6. 3. Strategies and Implementation
3.1 Everyday Luxury
The way forward for Imperial Leather is to go back to its core brand promise of
“Everyday Luxury ". The brand needs to first identify with everyday users by
providing them with choice, product differentiation, proximity and interaction.
This can be achieved through three key strategies; introduction of new variants,
gift set packaging and an effusive social media marketing.
3.2 .1 Social Media Marketing
The number of Ghanaians who have access to the internet is gradually increasing
as almost two and a half million people now use internet in the country,
representing about 10 per cent of the entire population of the country and is
expected to rise with increasing wealth of households. This trend presents great
opportunities for social marketing since social media helps brands create
relationships with online communities. If people feel you are part of their
community, they will support you and recommend you to their friends. It is truly
word-of-mouth marketing at its best and an inexpensive way of improving the
brands’ personality and awareness.
PZ Cussons Ghana should create Imperial leather brand profile on Social Media
networks such as Twitter and a FaceBook Fan page which will increase its brand
awareness amongst the youth who presently are the primary users of social
media websites in Ghana. The brand qualities must then be refined, organized
and publicly presented in a clear, concise and consistent message. These social
media sites will then be able to pull new customers to the brand whiles providing
loyal customers the opportunity to give valuable feedback.
The web address of these social media profiles can be edited into existing
traditional advertisements at no cost, giving the youth that added feel of
familiarity and association when viewing Imperial Leather ads.
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7. 3.1.2 Gift Set Package : Product and Promotion
To gain popularity for all its products and encourage first time users to try its
shower gel and hand wash, PZ Cussons should package all the personal care
products under the Imperial leather brand as a gift set. Many different
combinations of these personal care products could be bundled together and
sold at a discounted price. Ideally the gift set should be priced cheaper
collectively as opposed to its contents being sold individually as it will offer an
added incentive for purchase. Not only will this strategy offer the advantage of
attracting new users to the brand, it will also help leverage the strengths of the
individual products to create a better overall customer perception of the brand.
The gift set product should be backed intensively by sales promotions on social
media sites as well as traditional media outlets: print, television and radio.
Product bouquets stands should also be placed in selected retail shops to add
that added feel of exclusivity to the brand.
3.1.3 New Toilet Soap Varieties
Finally PZ Cussons should introduce a new range of fragrance for its flagship
imperial leather soap. Although new products such as the Imperial leather
shower gel and hand wash have been introduced on the local market, albeit with
little promotion- Imperial leather toilet soap still remains available in only one
variety. With time even the most ardent and loyal users will easily caroused to
try other brands once familiarity kicks in. PZ Cussons should reengineer the toilet
soap by introducing fragrances that appeal to different age groups whiles still
maintaining the classic formula fragrance in order not to risk losing loyal
customers.
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8. 3.2 Benefits of the Proposed Solution
PZ Cussons will gain the competitive edge over its competitors through increased
user patronage, user feedbacks and recommendation which will enable PZ
Cussons to better adapt to the needs of its customers. The total effect of this
strategy will be increased patronage from first time buyers, retention of loyal
customers and increasing market share in the luxury soap market. PZ Cussons will
grow its market share as it will appear more sensitive to user preferences
inspiring greater confidence and association with the brand. This is achieved
mainly through:
 Innovation
 Increased Visibility
 Product Differentiation
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9. 4. Costs
The three pronged approach in addition to improving the brands’ image, visibility
and sales will also increase the profit margins of PZ Cussons since it centers on a
low cost high impact strategy which can be financed without necessarily hiking
the products prices. The strategies should be implemented chronologically, the
first step requires moderate expenditure as it leverages synergies between
already existent products. The marketing campaign accompanying the gift set
product will be well within the reach of PZ Cussons 5 - 6% budgetary allocation to
marketing.
Social Media Marketing is an inexpensive marketing tool which might require just
one administrative staff to oversee the accounts with contributions being
sourced and added from the entire PZ Cussons workforce. Creating brand profiles
on such social media sites as Facebook and Twitter is also free further cutting
down costs. Increased and targeted marketing on such forums can also result in
the reduction in the costs of the marketing department as it could reduce its
expenditure on traditional TV, print and radio advertisements.
Product development is already a vital part of PZ Cussons budgetary allocation
with a whopping GHS 1.9million spent on capital expenditure in 2009. So,
although, the initial investment capital needed to finance the installation of new
infrastructure for the manufacturing of new varieties of the toilet soap is
expensive, increased turnover from the implementation of the previous two
marketing strategies coupled with PZ Cussons commitment to improving brands
and processes should make this a financially viable strategy.
Overall the strategies prescribed are cost effective and well within the means of
PZ Cussons Ghana Limited and if followed pragmatically will position the Imperial
Leather brand as the number one selling luxury soap brand in Ghana.
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