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MARKETING PLAN
       FOR
DIVA INTERNATIONAL
     LIMITED
Marketing Plan                                                    2



                                      Presented to:
                                      Mr. Sonu Dua




                                ACKNOWLEDGEMENT

We are grateful to our teacher Mr. Sonu Dua for teaching us curriculum of marketing. His
versatile knowledge in marketing field and unique teaching style has developed our
knowledge and cleared many marketing concepts.


We are all the most grateful to him for assigning this project, which has further helped us in
evaluating many interrelated dimensions of marketing.


Finally we bestow our thanks to all who has directly or indirectly supported us with their
assistance and guidance to compose this report and accomplish broader vision to visualize
things in marketing concepts.




Durgesh Kumar Singh




Diva International Ltd
Marketing Plan           3




Diva International Ltd
Marketing Plan                               4




                         TABLE OF CONTENTS
Preface
Introduction
   • Executive Summary
   • Mission statement
   • Objectives
The Business
   • Business Background
   • Product/Service Description
   • Distribution network
Macro environmental Analysis




Diva International Ltd
Marketing Plan                 5
  • Economic Analysis
  • Social-Cultural Analysis
Market Analysis
  • Market Definition
  • Market Segmentation
  • Competitors
SWOT analysis
  • Strengths
  • Weaknesses
  • Opportunities
  • Threats
General Marketing Strategy
   • Target Market




Diva International Ltd
Marketing Plan                                                      6
Specific Marketing Strategy
   • Pricing Strategy
   • Distribution Strategy
   • Personal Selling Strategy
   • Advertising Strategy
   • Sales Promotion Strategy
Financial Analysis




                                      PREFACE

This Marketing Plan is prepared for the course of “Principles of Marketing” on Diva lipstick
                                                                                      ®




the product of Diva International Limited India.


In this marketing plan we have the introduction, business analysis, target market of the
product and bit of financial analysis and given the industry position of cosmetics.


This report covered almost all aspects of the marketing plan.




Diva International Ltd
Marketing Plan                                                       7




                                INTRODUCTION

EXECUTIVE SUMMARY
The Diva international is not a newly established company; basically Diva® is a French
company. Diva has 5 years history in the industry of cosmetics. Now the company started its
operations in India. Diva International Limited India is under license from Diva International
Paris. First of all they are going to launch a Diva Lipstick.




Company has its plant in Luck now. Plant is imported from France. The Plant is fully
automatic and work under robotic supervision and produces high quality products. Company
has invested 10 million rupees in this project.




Company plans to get at least 11.5% market share this year and also plans to increase 5%
customer base every year. In order to achieve this target company has the combination of
quality product lines, customer advisory service, and a knowledgeable sales staff. Diva plans
to increase its product line in cosmetics and toiletries in coming years.




Diva International Ltd
Marketing Plan                                                     8




MISSION STATEMENT
•   To be the No. 1 cosmetics company in the India and in the world.

•   To offer high value, economical, and qualitative solution to address the commuting needs
    of a diverse range of customers.
•   To seek long term and good relation with our suppliers and retailers with fair, honest and
    mutually profitable dealings.
•   To produce environment friendly products to be a contributing corporate citizen for the
    betterment of society and to exhibit a socially responsible behaviour.



OBJECTIVES:
•   To make reasonable profit.
•   Diva’s main objective is to provide quality-oriented products and high customer
    satisfaction.
•   Company’s three core values Caring, Teamwork and Continuous Improvement are put
    into action in our work as well as in our communities. The results are better products and
    a better quality of life throughout the country.
•   To make at least 10% profit this year and keep on improving the sales and percentage of
    profit in coming years.
•   Diva has a wide distribution network retailers through out the country.



              Description                   Last year         This Year         Projected
                                            June2001          June2009          June2010
                                                              012002            0103
    Gross Sales                                        0      10,00 ,000        20012002
                                                                                11,00,000

    Growth Rate                                                                      10%

    Market Share                                               10%                  11.5%




Diva International Ltd
Marketing Plan                                                         9



THE BUSINESS
Business Background
The Diva International Paris has 5 years history in the world of cosmetics. The company has
wide range of cosmetics.


Diva International Limited India was incorporated on 2nd November 2009 as a public limited
company in India. The shares of the company listed on all stock exchanges of India.


Product services description
Diva International Paris has a very wide product line and product line extensions include
lipsticks, perfumes, lipsticks, face washes and long list of toiletries.


In order to have a satisfied customers company have advisory services help line, which is a
toll free number? The cosmetics start from very high prices to substantially low prices.


Distribution
Company got very wide distribution network, retailers and whole sellers throughout the
world.


Advertising and promotional efforts can help to attract the customer but ultimately there is no
way of controlling the number of customers that frequent The Diva. What is controllable is
how the sales staff treats the customer once they walk through the door.


Aggressive inside sales and knowledgeable interaction is critical to keeping the customer
loyal to The Diva.


As a secondary distribution approach, vendor catalogs and free samples are available to the
consumer for information and to test the products with the retailers and provide door-to-door
distribution.




Diva International Ltd
Marketing Plan                                                      10
MACRO-ENVIRONMENT ANALYSIS
Economic Analysis
The national economy has been strong and gaining momentum for the last few years. The
national employment rate has been increasing. Although stock indices such as the N.S.E
have displayed large potential in the last years.


In this industry there is a potential customers in this market. In this field of economy there is
less competition among the local manufacturers but most of them are importers.


There is need of little introduction for local cosmetics, and the quality is also very important.
The target market start using our product if they know the quality is same and price is slightly
lower than imported one. This way we are saving valuable foreign exchange for our country.


SOCIO-CULTURAL ENVIRONMENT
In last few years the change comes to our society the women working in all the
offices. With the increasing awareness of the facial fitness this is very important that
everybody should looks fresh and beautiful on his work place.


More people are taking time out to enhance their quality of life and try to be looks fresh every
day inside or outside the office.


There is a favourable trend in last 3-4 years, it will be a favorable increase over the next five
years and is broadening to include new market segments.




Diva International Ltd
Marketing Plan                                                    11

MARKET ANALYSIS
MARKET DEFINITION:
The potential market involves a wide-range of people with an interest in looking fresh and
different everyday. Those who thought it is very necessary to look fresh on the business place
and also in the social life.
In addition to this group includes young people who are students (college going girls)
Over the past several decades the cosmetics industry has grown in to a Rs.5000 million a year
industry. The cosmetics industry developed more, because of             the information and
globDivation of the world. This commercialization has made cosmetic somewhat of a trend in
the 90’s, both in the India and around the world.


MARKET SEGMENTATION
For Diva International Limited as with any business there are many possible categories by
which the market could be segmented. This section will form the basis for Diva International
Limited India’s, current market segmentation.
Diva International Limited’s primary target market is the student population of almost
20,0000 at University level and office going people and housewives.
COMPETITORS
The various aspects of the marketplace and how it relates to The Diva International’s
business have been discussed up to this point. Now each of the manufacturer’s competitors
will be evaluated and compared with the Diva International.             The following table
(Competition) will provide a synopsis of the competitive environment.


    o   L’OREAL PARIS
    o   ST.IVIES LABORITRIES, INC. (U.S.A)
    o   LABEAUTE MAGIQUE INC. (U.S.A.)
    o   LAKME INDIA




Diva International Ltd
Marketing Plan                                                      12
ISSUES AND OPPORTUNITIES
STRENGTHS:
•   We are the pioneers of this specific product, which is launched for the first time in India.

•   Introducing our product on a competitive price strategy.

•   Timely & effective Distribution Network.



WEAKNESSES:
   Huge capital investment will be required for aggressive promotion.


OPPORTUNITIES:
•   With our expansion plan and capacity we can enter into product mix, which can save us
    from the declining phase.


THREATS:
•   Already built in market for imported cosmetics.

•   People always resist buying new product & new Brand.

•   Competitor’s offensive strategy can give us tough time.

•   Political instability and crises can affect smooth running of business.

•   Positioning product name in consumers’ mind would be expensive through promotion.
    This will reduce our profit in the beginning



MARKET RESEARCH
After conducting the research we reveal that there is a potential market for people who want
to use best quality of cosmetics and lipsticks at lower price and want to remove the dead
cells, dryness, and want to make their lips soft.




Diva International Ltd
Marketing Plan                                                   13



           GENERAL MARKETING STRATEGY




                             TARGET MARKET

Demographic Factor:
Age – from 16-50 Years
Social Class – Upper, upper middle.
Income – Rs. 10,000/- and above
Gender –Female




Geographic factor:
Country – India
City – Lucknow
Population – Over 14 lakh


Psychological factor:
Occupation – Executives, Housewives, Students, Social workers.
Profession--- Barber shops & Beauty parlors




Diva International Ltd
Marketing Plan                                                        14




MARKETING STRATEGY

Product Analysis:
•   This lipstick is specially manufactures to remove dead cells and dryness.

•   Lipstick is also lab tested to prove its quality and making.

•   This is available in one size (later on available in different flavors).

•   It has very nice, refreshing fragrance.


UNIQUE SELLING PREPOSITIONS:
Diva contains a unique special ingredients and introducing first time combination of HERBS
& FLOWERS that renewal your lips and makes them soft.
It will remove dead cells and other impurities and increases the freshness of the lips.


PRODUCT:
The product is specifically made to give the best solution for removing dryness and can
prevent from cracks.


PRICING:
Our price will remain competitive through out product life cycle.


PACKAGING:
Attractive and eye-catching tube is made to attract the customer.




Diva International Ltd
Marketing Plan                                                    15



PRICING

PRICING OBJECTIVE:
Pricing objective is to penetrate in the lipstick market and then maximize profit in the long
run.


PRICING STRATEGY:
Our competitors are established from a long time therefore we set our prices lower than their
brands.


Here we will use the Economy pricing strategy as mentioned earlier the mask contain one of
the best materials that is soothing elder flower that remove all impurities from the face. We
are targeting also middle class so that’s why economy pricing is adopted the price will be low
and the quality is high so the image of the product in the minds of peoples will be good. In
future we increase the price the consumer will go towards our product.


We also adopt the market penetration strategy to get the large number of sales and to get huge
share of the market.


PRICES OF THE DIVA®:

          Size                  Price in Rupees

          40 gms                195/-

          20gms                85/-




Diva International Ltd
Marketing Plan                                                     16




                                DISTRIBUTION

Our manufacturing plant is located at Lucknow and our main office is situated at Delhi.
CHANNEL OF DISTRIBUTION:


1.       Manufacturer ----- Distributor ------- Retailer------ Consumer.


         This channel will be used to make our product available in the market for customers’
         convenience. It will be ensured that our product is extensively placed in all the well
         known shopping centers of Lucknow, which comes under our potential and target
         market area.


2. We will also use push strategy for our product by using various promotional tactics and
     through media. Distribution will be divided in zonal basis, which will be 5 in number.


         We will directly approach retailer by providing credit facility and bonus in form of
         incentives.


         We will also provide trade allowances to our distributors and retailer to further
         intensify usage of push strategy.




Diva International Ltd
Marketing Plan                             17


         LIST OF RETAILERS AND THEIR LOCATIONS


S. NO.        MARKET                  LOCATION
   1.         SUNNY,S                 CHARBAGH
   2.         QADRI                   AMINABAD
   3.         NAVEED                  AMINABAD
   4.         RAFIQ                   AMINABAD
   5.         GALAXY                  INDRA NAGAR
   6.         JUMBO                   INDRA NAGAR
   7.         INDUS STORE             GOMTI NAGAR
   8.         GULISTAN STORE          GOMTI NAGAR
   9.         BLESSINGS SUPER STORE   LALKOTI
   10.        BADSHAH                 NURSERY
   11.        COLLECT                 NURSERY
   12.        FIVE STAR               NEAR TNT NURSERY
   13.        SUPER MART              DEFENCE
   14.        CROWN                   NEAR QT BACK
   15.        QT DEFENCE              DEFENCE
   16.        SUNNY DEFENCE           DEFENCE
   17.        JABBAR DEFENCE          DEFENCE
   18.        FAMOUS DEFENCE          DEFENCE
   19.        SOHAILA                 DEFENCE




Diva International Ltd
Marketing Plan                       18




 S. No.       Market          Location
    20.       QUALITY STORE   PHASE 1
    21.       DEFENCE STORE   PHASE 1
    22.       SLASH STORE     PHASE 7
    23.       JAMI            PHASE 7
    24.       FINE SPOT       9&10 STREET
    25.       BEST MART       9&10 STREET
    26.       A&O             9&10 STREET
    27.       HAWAS           9&10 STREET
    28.       DELTON          DEFENCE 5
    29.       CASH & CARRY    24TH STREET DEFENCE
    30.       HAJI DAUOD      10TH STREET DEFENCE
    31.       SHOP & SAVE     BLOCK # 3 CLIFTON
    32.       HUSSAINS        BLOCK # 2 CLIFTON
    33.       SAFEWAY         BLOCK # 2 CLIFTON
    34.       PARADISE        SCHON CIRCLE CLIFTON
    35.       AGHA’S          CLIFTON
    36.       NOVELTY         CLIFTON




Diva International Ltd
Marketing Plan                            19




 S. No.       Market               Location
    37.       Friendship           Clifton KFC Road
    38.       DOLPHIN STRS         CLIFTON KFC ROAD
    39.       MR. IDEAL BAKER      CLIFTON KFC ROAD
    40.       TEST MART            PARK TOWERS CLIFTON
    41.       QUALITY STORE        BLOCK # 9 GULSHAN
    42.       BISMILAH STORE       BLOCK # 8 GULSHAN
    43.       AL-GHANI STORE       BLOCK A. NORTH VIKAS NAGAR
    44.       QUALITY STORE        M.G ROAD
    45.       HOUSE HOLD UTILITY   JAIL ROAD
    46.       HOME MART            JAIL ROAD
    47.       YOUSAF               AMINABAD
    48.       DIWANS               AMINABAD




Diva International Ltd
Marketing Plan                                                   20




PROMOTIONAL OBJECTIVES

•   To use push strategy.
•   To enhance the awareness of product among target market.
•   To develop a positive image of product.
•   To design a promotional campaign in such effective manner so that consumer can switch
    over to use our brand from their present brand.


PROMOTIONAL STRATEGY:

Promotional Device      Television (DD1, SONY, STAR PLUS, ZEE, AAJ TAK, )
Magazines               Women’s era, Saheli, Business world, India Today, Maxim.
Out Door Media          Scotch print, point of purchase and banners for introductory phase.


PROMOTIONAL INCENTIVES:

Consumer                Free Sampling
Distributor             More sales commission will be given.
Retailers               As a motivational factor we will tell our distributor to nominate the
                       best retailer for offering year end bonus to make them part of the
                       company.




Diva International Ltd
Marketing Plan                                                      21




DOOR-TO-DOOR SELLING:
In personal selling we will go for the door to door selling, so that to make our product more
aware in those areas where there are no means of doing advertising & also to make people
more convenient by telling them the more advantages of the Diva face to face.


PERSONAL SELLING:
We will also hire people to visit different areas of our target market where they will provide
free samples. This will be done in the introductory phase but after the advertisement is
launched.


ADVERTISING
At first we will do INFORMATIVE ADVERTISING to promote our product and to build the
demand for it in the market.


After the informative advertising we will do reminder advertising to keep the consumers
thinking about the product, by giving the ads on television etc.


BROADCAST MEDIA:
•   We will use television broadcasting because it is a mass advertisement media.
•   Under this we will select peak hours from 7 to 9. We will Advertisement only on
    SONY,AAJ TAK and STAR PLUS.
•   Under the introductory phase our advertisement duration will be standard i.e. 30 seconds
    for 1 month then for 2 month it will be b/w 15 to 20 seconds.
•   In future we will start a sponsored programme on STAR PLUS for face care tips.


Under maturity phase ad for 10 seconds will be given where more emphasis would be given
on showing our brand name.




Diva International Ltd
Marketing Plan                                                       22



PUBLICATION MEDIA:
•   Under publication media we will use both magazines and newspapers:
•   In newspaper we will use image of Sunday’s issue and (Sunday magazine) of Times of
    India issue.
•   Under magazines, we will use periodical (monthly and quarterly) like News line. Weekly
    issue we will use Sunday Times and Hindustan Times.


OUT DOOR:
We will use Scotch print and banners as an outdoor media.
We will select the following area for placing scotch print and banners.


•   Polytechnic
•   M.G Road
•   Hassan Square
•   Cantonment
•   Haidery North Nazimabad
•   Hazratganj
•   Gomti nagar extension bridge
•   Lucknow Railway station
•   Raebareli road


Posters will be placed in all major departmental stores and malls.


POINT OF PURCHASE MEDIA:
•   Prominently placed in shelves where the product speaks for itself.

•   Display cards near the counters.




Diva International Ltd
Marketing Plan                                                    23




              SALES PROMOTION STRATEGY

At the time of launching, we will provide free sample of our product for customer’s attraction
along with the ad that would be placed in magazines and newspapers.


Later when we see our competitors is going to launch some new promotional activities then
we distribute some incentive like buy and get 5% discount.


We will also offer some price deduction on twin pack.



PACKAGING STRATEGY
•   We have developed a product in a recyclable plastic case(to prevent the environment).
•   With different we had prepared the tube so the tube looks more eye-catching and give
    very fresh look with mix colors.




Diva International Ltd
Marketing Plan                                                          24



                           FINANCIAL ANALYSIS

Marketing Budget & Income Statement
The following table (Marketing Budget and Income Statement) provides a detailed
presentation of the company’s planned marketing expenditures and a summary of the
company’s financial projections including revenues, expenses, and resulting profits.



  MARKETING BUDGET AND PROFIT AND LOSS STATEMENT
                       Description           Last Year      This Year        Projection
                                             April 2008     Apri l 2009      April 2010


                                EARNINGS

            Sales                                         Rs.10, 00,000      Rs.12, 00,000



                    MARKETI NG ACTIVITY EXPENSES

            Product Branding Expenses                          Rs.10,000
            Product Packaging Expenses                            Rs.7500       Rs.10,000
            Distribution Expenses                                               Rs.30, 000
                                                               Rs.20000
            Promotion Expenses
            Personal Selling                                   Rs.10, 900       Rs.10, 000
            Advertising                                        Rs34,000         Rs.39,500
            Direct Marketing
            Sales Promotion                                   Rs.70, 000      Rs.1, 50,000
            Publicity and Public Relations                   Rs. 60, 000        Rs. 40000

            Total Marketing Expenses                          Rs.212400       Rs.279,500



            Other Non-Marketing Expenses                  Rs.7,87,600        Rs.8,00,500



            NET INCOME                                        0                 1,20,000

            Net Margin Percentage                                 0%              10%


            Market ing Expenses as a
                                                                  21%               24%
            Percentage of Sales




Diva International Ltd
Marketing Plan                        25




  MARKETING BUDGET AND PROFIT AND LOSS STATEMENT




                                    April 09   April 10
                         April 08




Diva International Ltd
Marketing Plan                                  26




                         ADVERTISING BUDGET




                                             Rs.3, 00,000
  Rs.4, 20,000

                                                            April 08




                                                            April 09




                                                            April 10




                              Rs.3, 80,000




Diva International Ltd

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Marketting Term Paper

  • 1. MARKETING PLAN FOR DIVA INTERNATIONAL LIMITED
  • 2. Marketing Plan 2 Presented to: Mr. Sonu Dua ACKNOWLEDGEMENT We are grateful to our teacher Mr. Sonu Dua for teaching us curriculum of marketing. His versatile knowledge in marketing field and unique teaching style has developed our knowledge and cleared many marketing concepts. We are all the most grateful to him for assigning this project, which has further helped us in evaluating many interrelated dimensions of marketing. Finally we bestow our thanks to all who has directly or indirectly supported us with their assistance and guidance to compose this report and accomplish broader vision to visualize things in marketing concepts. Durgesh Kumar Singh Diva International Ltd
  • 3. Marketing Plan 3 Diva International Ltd
  • 4. Marketing Plan 4 TABLE OF CONTENTS Preface Introduction • Executive Summary • Mission statement • Objectives The Business • Business Background • Product/Service Description • Distribution network Macro environmental Analysis Diva International Ltd
  • 5. Marketing Plan 5 • Economic Analysis • Social-Cultural Analysis Market Analysis • Market Definition • Market Segmentation • Competitors SWOT analysis • Strengths • Weaknesses • Opportunities • Threats General Marketing Strategy • Target Market Diva International Ltd
  • 6. Marketing Plan 6 Specific Marketing Strategy • Pricing Strategy • Distribution Strategy • Personal Selling Strategy • Advertising Strategy • Sales Promotion Strategy Financial Analysis PREFACE This Marketing Plan is prepared for the course of “Principles of Marketing” on Diva lipstick ® the product of Diva International Limited India. In this marketing plan we have the introduction, business analysis, target market of the product and bit of financial analysis and given the industry position of cosmetics. This report covered almost all aspects of the marketing plan. Diva International Ltd
  • 7. Marketing Plan 7 INTRODUCTION EXECUTIVE SUMMARY The Diva international is not a newly established company; basically Diva® is a French company. Diva has 5 years history in the industry of cosmetics. Now the company started its operations in India. Diva International Limited India is under license from Diva International Paris. First of all they are going to launch a Diva Lipstick. Company has its plant in Luck now. Plant is imported from France. The Plant is fully automatic and work under robotic supervision and produces high quality products. Company has invested 10 million rupees in this project. Company plans to get at least 11.5% market share this year and also plans to increase 5% customer base every year. In order to achieve this target company has the combination of quality product lines, customer advisory service, and a knowledgeable sales staff. Diva plans to increase its product line in cosmetics and toiletries in coming years. Diva International Ltd
  • 8. Marketing Plan 8 MISSION STATEMENT • To be the No. 1 cosmetics company in the India and in the world. • To offer high value, economical, and qualitative solution to address the commuting needs of a diverse range of customers. • To seek long term and good relation with our suppliers and retailers with fair, honest and mutually profitable dealings. • To produce environment friendly products to be a contributing corporate citizen for the betterment of society and to exhibit a socially responsible behaviour. OBJECTIVES: • To make reasonable profit. • Diva’s main objective is to provide quality-oriented products and high customer satisfaction. • Company’s three core values Caring, Teamwork and Continuous Improvement are put into action in our work as well as in our communities. The results are better products and a better quality of life throughout the country. • To make at least 10% profit this year and keep on improving the sales and percentage of profit in coming years. • Diva has a wide distribution network retailers through out the country. Description Last year This Year Projected June2001 June2009 June2010 012002 0103 Gross Sales 0 10,00 ,000 20012002 11,00,000 Growth Rate 10% Market Share 10% 11.5% Diva International Ltd
  • 9. Marketing Plan 9 THE BUSINESS Business Background The Diva International Paris has 5 years history in the world of cosmetics. The company has wide range of cosmetics. Diva International Limited India was incorporated on 2nd November 2009 as a public limited company in India. The shares of the company listed on all stock exchanges of India. Product services description Diva International Paris has a very wide product line and product line extensions include lipsticks, perfumes, lipsticks, face washes and long list of toiletries. In order to have a satisfied customers company have advisory services help line, which is a toll free number? The cosmetics start from very high prices to substantially low prices. Distribution Company got very wide distribution network, retailers and whole sellers throughout the world. Advertising and promotional efforts can help to attract the customer but ultimately there is no way of controlling the number of customers that frequent The Diva. What is controllable is how the sales staff treats the customer once they walk through the door. Aggressive inside sales and knowledgeable interaction is critical to keeping the customer loyal to The Diva. As a secondary distribution approach, vendor catalogs and free samples are available to the consumer for information and to test the products with the retailers and provide door-to-door distribution. Diva International Ltd
  • 10. Marketing Plan 10 MACRO-ENVIRONMENT ANALYSIS Economic Analysis The national economy has been strong and gaining momentum for the last few years. The national employment rate has been increasing. Although stock indices such as the N.S.E have displayed large potential in the last years. In this industry there is a potential customers in this market. In this field of economy there is less competition among the local manufacturers but most of them are importers. There is need of little introduction for local cosmetics, and the quality is also very important. The target market start using our product if they know the quality is same and price is slightly lower than imported one. This way we are saving valuable foreign exchange for our country. SOCIO-CULTURAL ENVIRONMENT In last few years the change comes to our society the women working in all the offices. With the increasing awareness of the facial fitness this is very important that everybody should looks fresh and beautiful on his work place. More people are taking time out to enhance their quality of life and try to be looks fresh every day inside or outside the office. There is a favourable trend in last 3-4 years, it will be a favorable increase over the next five years and is broadening to include new market segments. Diva International Ltd
  • 11. Marketing Plan 11 MARKET ANALYSIS MARKET DEFINITION: The potential market involves a wide-range of people with an interest in looking fresh and different everyday. Those who thought it is very necessary to look fresh on the business place and also in the social life. In addition to this group includes young people who are students (college going girls) Over the past several decades the cosmetics industry has grown in to a Rs.5000 million a year industry. The cosmetics industry developed more, because of the information and globDivation of the world. This commercialization has made cosmetic somewhat of a trend in the 90’s, both in the India and around the world. MARKET SEGMENTATION For Diva International Limited as with any business there are many possible categories by which the market could be segmented. This section will form the basis for Diva International Limited India’s, current market segmentation. Diva International Limited’s primary target market is the student population of almost 20,0000 at University level and office going people and housewives. COMPETITORS The various aspects of the marketplace and how it relates to The Diva International’s business have been discussed up to this point. Now each of the manufacturer’s competitors will be evaluated and compared with the Diva International. The following table (Competition) will provide a synopsis of the competitive environment. o L’OREAL PARIS o ST.IVIES LABORITRIES, INC. (U.S.A) o LABEAUTE MAGIQUE INC. (U.S.A.) o LAKME INDIA Diva International Ltd
  • 12. Marketing Plan 12 ISSUES AND OPPORTUNITIES STRENGTHS: • We are the pioneers of this specific product, which is launched for the first time in India. • Introducing our product on a competitive price strategy. • Timely & effective Distribution Network. WEAKNESSES:  Huge capital investment will be required for aggressive promotion. OPPORTUNITIES: • With our expansion plan and capacity we can enter into product mix, which can save us from the declining phase. THREATS: • Already built in market for imported cosmetics. • People always resist buying new product & new Brand. • Competitor’s offensive strategy can give us tough time. • Political instability and crises can affect smooth running of business. • Positioning product name in consumers’ mind would be expensive through promotion. This will reduce our profit in the beginning MARKET RESEARCH After conducting the research we reveal that there is a potential market for people who want to use best quality of cosmetics and lipsticks at lower price and want to remove the dead cells, dryness, and want to make their lips soft. Diva International Ltd
  • 13. Marketing Plan 13 GENERAL MARKETING STRATEGY TARGET MARKET Demographic Factor: Age – from 16-50 Years Social Class – Upper, upper middle. Income – Rs. 10,000/- and above Gender –Female Geographic factor: Country – India City – Lucknow Population – Over 14 lakh Psychological factor: Occupation – Executives, Housewives, Students, Social workers. Profession--- Barber shops & Beauty parlors Diva International Ltd
  • 14. Marketing Plan 14 MARKETING STRATEGY Product Analysis: • This lipstick is specially manufactures to remove dead cells and dryness. • Lipstick is also lab tested to prove its quality and making. • This is available in one size (later on available in different flavors). • It has very nice, refreshing fragrance. UNIQUE SELLING PREPOSITIONS: Diva contains a unique special ingredients and introducing first time combination of HERBS & FLOWERS that renewal your lips and makes them soft. It will remove dead cells and other impurities and increases the freshness of the lips. PRODUCT: The product is specifically made to give the best solution for removing dryness and can prevent from cracks. PRICING: Our price will remain competitive through out product life cycle. PACKAGING: Attractive and eye-catching tube is made to attract the customer. Diva International Ltd
  • 15. Marketing Plan 15 PRICING PRICING OBJECTIVE: Pricing objective is to penetrate in the lipstick market and then maximize profit in the long run. PRICING STRATEGY: Our competitors are established from a long time therefore we set our prices lower than their brands. Here we will use the Economy pricing strategy as mentioned earlier the mask contain one of the best materials that is soothing elder flower that remove all impurities from the face. We are targeting also middle class so that’s why economy pricing is adopted the price will be low and the quality is high so the image of the product in the minds of peoples will be good. In future we increase the price the consumer will go towards our product. We also adopt the market penetration strategy to get the large number of sales and to get huge share of the market. PRICES OF THE DIVA®: Size Price in Rupees 40 gms 195/- 20gms 85/- Diva International Ltd
  • 16. Marketing Plan 16 DISTRIBUTION Our manufacturing plant is located at Lucknow and our main office is situated at Delhi. CHANNEL OF DISTRIBUTION: 1. Manufacturer ----- Distributor ------- Retailer------ Consumer. This channel will be used to make our product available in the market for customers’ convenience. It will be ensured that our product is extensively placed in all the well known shopping centers of Lucknow, which comes under our potential and target market area. 2. We will also use push strategy for our product by using various promotional tactics and through media. Distribution will be divided in zonal basis, which will be 5 in number. We will directly approach retailer by providing credit facility and bonus in form of incentives. We will also provide trade allowances to our distributors and retailer to further intensify usage of push strategy. Diva International Ltd
  • 17. Marketing Plan 17 LIST OF RETAILERS AND THEIR LOCATIONS S. NO. MARKET LOCATION 1. SUNNY,S CHARBAGH 2. QADRI AMINABAD 3. NAVEED AMINABAD 4. RAFIQ AMINABAD 5. GALAXY INDRA NAGAR 6. JUMBO INDRA NAGAR 7. INDUS STORE GOMTI NAGAR 8. GULISTAN STORE GOMTI NAGAR 9. BLESSINGS SUPER STORE LALKOTI 10. BADSHAH NURSERY 11. COLLECT NURSERY 12. FIVE STAR NEAR TNT NURSERY 13. SUPER MART DEFENCE 14. CROWN NEAR QT BACK 15. QT DEFENCE DEFENCE 16. SUNNY DEFENCE DEFENCE 17. JABBAR DEFENCE DEFENCE 18. FAMOUS DEFENCE DEFENCE 19. SOHAILA DEFENCE Diva International Ltd
  • 18. Marketing Plan 18 S. No. Market Location 20. QUALITY STORE PHASE 1 21. DEFENCE STORE PHASE 1 22. SLASH STORE PHASE 7 23. JAMI PHASE 7 24. FINE SPOT 9&10 STREET 25. BEST MART 9&10 STREET 26. A&O 9&10 STREET 27. HAWAS 9&10 STREET 28. DELTON DEFENCE 5 29. CASH & CARRY 24TH STREET DEFENCE 30. HAJI DAUOD 10TH STREET DEFENCE 31. SHOP & SAVE BLOCK # 3 CLIFTON 32. HUSSAINS BLOCK # 2 CLIFTON 33. SAFEWAY BLOCK # 2 CLIFTON 34. PARADISE SCHON CIRCLE CLIFTON 35. AGHA’S CLIFTON 36. NOVELTY CLIFTON Diva International Ltd
  • 19. Marketing Plan 19 S. No. Market Location 37. Friendship Clifton KFC Road 38. DOLPHIN STRS CLIFTON KFC ROAD 39. MR. IDEAL BAKER CLIFTON KFC ROAD 40. TEST MART PARK TOWERS CLIFTON 41. QUALITY STORE BLOCK # 9 GULSHAN 42. BISMILAH STORE BLOCK # 8 GULSHAN 43. AL-GHANI STORE BLOCK A. NORTH VIKAS NAGAR 44. QUALITY STORE M.G ROAD 45. HOUSE HOLD UTILITY JAIL ROAD 46. HOME MART JAIL ROAD 47. YOUSAF AMINABAD 48. DIWANS AMINABAD Diva International Ltd
  • 20. Marketing Plan 20 PROMOTIONAL OBJECTIVES • To use push strategy. • To enhance the awareness of product among target market. • To develop a positive image of product. • To design a promotional campaign in such effective manner so that consumer can switch over to use our brand from their present brand. PROMOTIONAL STRATEGY: Promotional Device Television (DD1, SONY, STAR PLUS, ZEE, AAJ TAK, ) Magazines Women’s era, Saheli, Business world, India Today, Maxim. Out Door Media Scotch print, point of purchase and banners for introductory phase. PROMOTIONAL INCENTIVES: Consumer Free Sampling Distributor More sales commission will be given. Retailers As a motivational factor we will tell our distributor to nominate the best retailer for offering year end bonus to make them part of the company. Diva International Ltd
  • 21. Marketing Plan 21 DOOR-TO-DOOR SELLING: In personal selling we will go for the door to door selling, so that to make our product more aware in those areas where there are no means of doing advertising & also to make people more convenient by telling them the more advantages of the Diva face to face. PERSONAL SELLING: We will also hire people to visit different areas of our target market where they will provide free samples. This will be done in the introductory phase but after the advertisement is launched. ADVERTISING At first we will do INFORMATIVE ADVERTISING to promote our product and to build the demand for it in the market. After the informative advertising we will do reminder advertising to keep the consumers thinking about the product, by giving the ads on television etc. BROADCAST MEDIA: • We will use television broadcasting because it is a mass advertisement media. • Under this we will select peak hours from 7 to 9. We will Advertisement only on SONY,AAJ TAK and STAR PLUS. • Under the introductory phase our advertisement duration will be standard i.e. 30 seconds for 1 month then for 2 month it will be b/w 15 to 20 seconds. • In future we will start a sponsored programme on STAR PLUS for face care tips. Under maturity phase ad for 10 seconds will be given where more emphasis would be given on showing our brand name. Diva International Ltd
  • 22. Marketing Plan 22 PUBLICATION MEDIA: • Under publication media we will use both magazines and newspapers: • In newspaper we will use image of Sunday’s issue and (Sunday magazine) of Times of India issue. • Under magazines, we will use periodical (monthly and quarterly) like News line. Weekly issue we will use Sunday Times and Hindustan Times. OUT DOOR: We will use Scotch print and banners as an outdoor media. We will select the following area for placing scotch print and banners. • Polytechnic • M.G Road • Hassan Square • Cantonment • Haidery North Nazimabad • Hazratganj • Gomti nagar extension bridge • Lucknow Railway station • Raebareli road Posters will be placed in all major departmental stores and malls. POINT OF PURCHASE MEDIA: • Prominently placed in shelves where the product speaks for itself. • Display cards near the counters. Diva International Ltd
  • 23. Marketing Plan 23 SALES PROMOTION STRATEGY At the time of launching, we will provide free sample of our product for customer’s attraction along with the ad that would be placed in magazines and newspapers. Later when we see our competitors is going to launch some new promotional activities then we distribute some incentive like buy and get 5% discount. We will also offer some price deduction on twin pack. PACKAGING STRATEGY • We have developed a product in a recyclable plastic case(to prevent the environment). • With different we had prepared the tube so the tube looks more eye-catching and give very fresh look with mix colors. Diva International Ltd
  • 24. Marketing Plan 24 FINANCIAL ANALYSIS Marketing Budget & Income Statement The following table (Marketing Budget and Income Statement) provides a detailed presentation of the company’s planned marketing expenditures and a summary of the company’s financial projections including revenues, expenses, and resulting profits. MARKETING BUDGET AND PROFIT AND LOSS STATEMENT Description Last Year This Year Projection April 2008 Apri l 2009 April 2010 EARNINGS Sales Rs.10, 00,000 Rs.12, 00,000 MARKETI NG ACTIVITY EXPENSES Product Branding Expenses Rs.10,000 Product Packaging Expenses Rs.7500 Rs.10,000 Distribution Expenses Rs.30, 000 Rs.20000 Promotion Expenses Personal Selling Rs.10, 900 Rs.10, 000 Advertising Rs34,000 Rs.39,500 Direct Marketing Sales Promotion Rs.70, 000 Rs.1, 50,000 Publicity and Public Relations Rs. 60, 000 Rs. 40000 Total Marketing Expenses Rs.212400 Rs.279,500 Other Non-Marketing Expenses Rs.7,87,600 Rs.8,00,500 NET INCOME 0 1,20,000 Net Margin Percentage 0% 10% Market ing Expenses as a 21% 24% Percentage of Sales Diva International Ltd
  • 25. Marketing Plan 25 MARKETING BUDGET AND PROFIT AND LOSS STATEMENT April 09 April 10 April 08 Diva International Ltd
  • 26. Marketing Plan 26 ADVERTISING BUDGET Rs.3, 00,000 Rs.4, 20,000 April 08 April 09 April 10 Rs.3, 80,000 Diva International Ltd