Natural Fruit Soap : Marketing Planning, Management &

Control Framework

Table of Contents

PEST analysis ............................................................................................................................... 3

Political/Legal ...................................................................................................................................... 3

Economic Structure ............................................................................................................................. 3

Socio-Cultural ...................................................................................................................................... 4

Technological ..................................................................................................................................... 4

SWOT analysis ............................................................................................................................ 5

Strengths ............................................................................................................................................. 5

Opportunities ...................................................................................................................................... 5

Weakness ............................................................................................................................................ 6

Threats ................................................................................................................................................ 6

ANSOFF Matrix................................................................................................................................. 7

Segmentation, Targeting and positioning (STP) model ................................................. 9

Marketing Mix (4P) ........................................................................................................................ 10

3 YEAR PLAN .................................................................................................................................. 12

Monitoring and Control factors of the product ................................................................ 14

References ....................................................................................................................................... 15

pg. 1
The Manager,

The marketing strategy and planning with management of marketing is studied with
the help of a product, Natural Fruit Soap, the reason of choosing this product is due
to its high demand and appropriate “Value added price”.

Introducing natural fruit soap product in market and studying on the methods of
marketing planning, management and control has evolved following findings and
outcomes-

1. In competitive market it is necessary to first know about its internal and

external weakness & strengths.
2. According to all the opportunities available and other factors a marketing plan
should be created.
3. To apply the plan it is necessary to follow the control framework so that the
product launched will gain high profit.

pg. 2
Natural Fruit Soap

The product includes natural fragrance of Apple and guava fruits. In addition to it the
product includes Vitamin E extracts and Vitamin C mixed with cream base. The
whole combination will show the presence of Apple, Guava, Almonds and Orange.

PEST analysis

In order to analyse the Macro-Environment for the product following factors are
considered in order to define marketing mix in UK,

1. Political/Legal
Role of legal or political bodies in the business environment shows direct
influence of marketing mix of product (Cook, Macaulay and Coldicott, 2004).
In general there are basically two regulation departments those have direct
influence of their regulations on marketing mix i.e. Local bodies and national
governing bodies. These political/legal bodies are directly influenced by the
rights of customers and activities of business.
In UK the product need to be first judged by research on animals so that it will
be sold easily in market without any future legal barriers. Other than the legal
business practices there are not many restrictions on product selling or
manufacturing.

2. Economic Structure
After the economic recession is over, now customers are rich and
employment rate has also increased from last year 2013 in comparison to
2014. Consumer spending has also increased and but they are still cautious
about spending habits(Cook, Macaulay and Coldicott, 2004). According to
marketing analysis the soap business was not much affected due to recession
and it is the same through the whole year.
Economic factors those affect the product and its marketing are government
taxes those are implemented on soap and the competitors those have already
acquired the market leaving very less or no gap for new competitor with new
product/service.

pg. 3
 In such Economical hurdles strategy of Niche marketing should be acquired.
Niche marketing can be used when there is a high competition and a specific
segment of marketing has to be selected for tailoring a marketing plan.

3. Socio-Cultural
The world people’s trend is diverting from synthetic things to natural things in
order to go green and make environment clean as well as people also knows
that the natural things are more healthy and friendly then other synthetic
things. The product can achieve huge acceptance from the people of UK.
According to latest census in 2011 the population of immigrants has increased
with about 3% from 2001 and the total assumed population in 2015 would be
64.8 millions. This increased population will increase the consumption of daily
usage products such as soap, shampoo, toothpaste, deodorant, etc.
Increase in the population of black people will also increase the consumption
of beauty products as every person is conscious about beauty. The target of
the product would be such kind of people.

4. Technological
Improvements in the technology have increased the ways of increasing sales,
best services and customer support. New age of internet has shown many
ways of internet marketing and other aspects of increasing product values and
adding loyal customers for the company.

pg. 4
SWOT analysis

The present Strengths and Opportunities available for the natural fruit soap product
are as follows,

1. Strengths
According to the census 2011 the black people located in UK are in the
patches of area. The black people are concentrated and are developing in a
different big spots of UK. It is easy to select particular segments of area
accordingly.
There are a very few companies those are following natural process of
preparing soap as 70% of the soap making companies are using the synthetic
substances in soap.
There are many other fragrances those can be added further to create
innovative product and increase different qualities of products according to
customer demand.
The product will be popular easily among people with the help of satisfied
customers and loyal customers (Ahmed, 2013).

2. Opportunities
As the population of immigrants are increasing in UK so they are more
conscious about their skin and effect of climate change. The immigrants will
easily believe the product and can become loyal customers.
People are becoming health conscious as well as environment conscious, this
leaves a big opportunity for product to make take advantage by using niche
marketing.
Research on animals and other small pets are easy when it is about natural
products use. Authorisation is easy for research when it is about using natural
substances on animals. This makes innovation easy for product.
In rural areas there is an increase of demand for low price (cheap) daily use
products with high quality. This leaves an opportunity to take advantage of
price leadership strategy (Ahmed, 2013).

pg. 5
Following are the Weaknesses those are to be corrected and Threats those should
be avoided with some particular actions,

3. Weaknesses
It is very hard to keep natural content in same form so it is necessary to
change its form into another concentrated manner. This may leave an impact
on customers that the product includes synthetic material. This weakness can
be corrected by using proper method of preparing the product and clearly
mentioning on the package that “we have used only natural substances.”
The prices those should be offered to customers could not be high as there is
a huge price competition in the market and if the price offered would be low
then the company will not be able to earn profit. This weakness can only be
corrected by discussing correct price of the product so that customer can fine
it with great quality and the price should be competitive as well (Ahmed,
2013).

4. Threats
There are already a lot of competitors those are acquiring market and selling
the product of synthetic soaps with very cheap prices. There are different
markets like TESCO, French Soaps, my supermarket, etc. those are already
selling soaps with cheap rates.
There is no financial certainty in for selling of the product as it completely
depends upon customers’ like or dislike. The product can only sustain its
presence in the market if it is accepted by customers in the UK.
People generally stick with the brand they use for their daily products. This is
a big threat to convince them for changing their product/brand.

pg. 6
ANSOFF MATRIX

 Market penetration
The product uses natural fruit substances and fragrances to justify its quality
and liability of using it as best product of soap. To increase its market share
the best quality is shown to the customers and other share holders. Increase
in demand will increase the share value and share quantity in the market. The
more products will be sold as the more effectively the people feel its quality
and competitive price. This all will be achieved with the help of aggressive
marketing, promotion and distribution techniques. This justifies the use of
Niche marketing. With the help of Niche marketing targeted segment will be
used to implement the plan of marketing (Wong, Radel and Ramsaran-
Fowdar, 2011).

pg. 7
 Market Development
The existing quality of product is very unique and its offering will be easy to
understand for people those are keen to use healthy and natural products.
With the help of its offering the market will be extended to new geographical
areas and countries.

 Product development
New product can easily be developed as according to fruits those are used to
give quality and fragrances. Such as Peach, Papaya, Lemon, Watermelon,
etc. can be used to create new products according to increase in demand.

 Diversification
The new offers of price and new deals will be introduce to attract more
people, such as combo offers of purchasing, buy 3 get 1 free, heavy discount
on bulk purchase, etc. will increase the demand of product. Some services
can be introduced with merging some natural product companies. Such as if a
company is in the business of natural oil then the products can be merged to
market the soap. This will increase the fame of the product.

pg. 8
Segmentation, Targeting and positioning (STP) model

1. Market Segmentation – Different segments of the groups of houses those

are located in high density of black people living in UK will be made. The
segments those are formed will be conscious to use the fine quality of natural
soaps and those will be easily influence with the product and its quality.
Another segment of immigrants those have come to UK will be made and
those people are concerned about their new climate and health of their skin.
2. Market Targeting – Segments those are formed will be potential of buying
cheap soaps those are prepared with natural material and perfectly fine on
their body. The segments of black people and immigrants will be happy to use
non-synthetic soaps as it will work very fine on their skin. Instead of buying
cream they would prefer using nice soap.
3. Product Positioning – On the basis of the need of customer products will be
categorised in majorly four types i.e. for children, for youngsters, for old and
for infants. Product so positioned should be positioned in such a manner so
that different customers can buy it (Fifield, 2007).
a. For infants the product those are manufactured will possess only cream
base with no other material those can cause skin problem. These products
will be highly tested on skin allergies.
b. For children the soap will be manufactured so that it will not cause any
irritation in eyes or in the ears.
c. For youngsters the soap manufactured will possess the quality of
increasing fairness and anti-aging factors so that they will get more
attracted towards it.
d. For old generation people the soap manufactured will just like for the
children but will be of anti-aging factor.

Age Type
Infants Non Allergic & highly testified
Children Non-irritating in eyes and ears
Youngsters Increase fairness and anti-aging factors
Old generation people Non-irritating in eyes and ears and anti-
aging factors

pg. 9
Marketing Mix (4P) on the basis of Ansoff matrix and STP framework

The marketing mix are compared with the two existing companies those are selling
the products of soap in UK. The companies are ‘Natural Soap Company’ and ‘Little
Soap Company’.

1. Product – The life cycle of the product is very less as soaps are daily use
products. Soap should provide the quality so that if a customer uses it once
then the customer should seek for the same soap. According to the product
positioning chart as discussed it should be in four qualities so that everyone
can use it in different way and it will increase the demand of natural fruit soap.
Branding is the most effective factor in marketing. If brand is given to the soap
then the product will be purchased with the name of brand. In the first year the
people will get to know about the product and then they will get habitual of it,
after end of first year new innovative ideas should be implemented to make
customers stick to one brand.
If the product is compared to the products of Natural Soap Company then it
can be easily judged by customers that the company has provided handmade
soap to the customers, this is the reason it is hard for them to make products
perfectly in the same manner without human error (Naturalsoap.co.uk, 2015).
If the product is compared to the products of ‘Little Soap Company’ then there
is a very huge difference in fragrance of products of the company. As the
Natural flower Soap has good essence but the products of Little Soap
Company are with essence of vegetable (Littlesoapcompany.co.uk, 2015).
2. Price – The cost of preparation of product will be much higher than other
synthetic soaps but the price should be flexible and competitive. This will
reduce the threat of less demand and offers can be provided easily to the
customers. With the increase of profit and shares the price of product should
be decreased in the next 2 years. This will increase more demand gradually.
The products of natural soap company are with high rates due to which
customers seek some other products with more quality and cheap price
(Naturalsoap.co.uk, 2015).
Little Soap Company can’t reduce the rates of their product as they are using
organic material and special method of creating soaps

pg. 10
 (Littlesoapcompany.co.uk, 2015). This is the reason the product, natural
flower soap, will attain competitive price in market.
3. Promotion – With the help of advertising in daily newspapers and television
attraction of customers can be easily obtained. Cinema commercials can be
another method of promotion as number of people watches the show together
(Shapiro, 1984). Models can be hired and a good effective advertisement can
be prepared so that it attracts the people. To attract black people for using the
soap a specific advertisement mentioning their profits should be prepared and
to attract immigrants another advertisement should be prepared. This will
cover both the segments. After promoting the product in first year the
customers will get to know about it. Then the promotions would not be so
much necessary. But the whole concentration should be paid on product’s
quality and promotions.
4. Distribution – Products should be distributed to the small distributors among
the areas those are mostly occupied with black people and immigrants. Then
the distribution should be increased among the whole country.

pg. 11
3 YEAR PLAN

Steps

 In the first year the complete attention will be distributed to good quality
production, sales & marketing, human resource, customer feedback (CRM),
management and improvement.
 In the second year new products with different fragrances will be launched
with the help of branding, such as using brand ambassadors technique, in this
technique a big celebrity is selected as brand ambassador of a brand so that
people get more attracted towards the brand (Clifton, Simmons and Ahmad,
2003). Rates of the products will be decreased this will attain attention of
customers and gives a leadership price.
 In the third year there will be more reduction in the prices. The budgeting
control techniques will be used. Attention will be maintained throughout the
three years on marketing, production and sales.

Challenges

 In the first year company will face challenge of exploring gap.

 In the second year company will face challenge of maintaining positive
budget.
 In the third year there will be a challenge of maintaining brand status and cost
reduction.

How to deal with challenges

 It is quite hard to explore gap in the market as existing companies has already
increased competition in the market of soap industry. But with the help of the
plan discussed it will be easy for the product to explore gap in first year.
 Positive budget means that there will be some profit for the product in
comparison to previous budget. To maintain it different new innovative ideas
will be applied such as, branding, new fragrances of soaps manufacturing,
different rates of soaps will be launched in the market and more attention on
marketing will be given.

pg. 12
  To maintain brand status there should be a smooth run of all the pre-planned
actions. Cost reduction after the 3 years from the launch of the product is
quite difficult because no one knows that if rates of other raw materials and
manufacturing methods would be high or low. But to overcome from this
challenge the budget formed should be flexible enough so that there will not
be any effects on it after the cost are reduced (Hughes and Thompson, 2012).

• People will get to know about product

• Customers will get loyal with its quality and results
1st Year

• With decreased price demand will increase

• Increased demand will increase popularity of product
2nd Year

• Innovation will increase diverse customers

• Local people will get attracted and will increase the sales
3rd Year

Strategy of growth of product in next 3 years

Year 1 2 3

Units 7300 18250 25000

Cost £20000 £60000 £80000

Revenue £36500 £91250 £125000

Profit £16500 £31250 £45000

Table: Profit for the product according to units sold in 3 different years.

pg. 13
Monitoring and Control factors of the product

The product natural fruit soap will be monitored and controlled on the basis of
following three factors,

1. Cost – The cost of the product should be in control and according to

competitive price in the market. The present situation of the market should be
judged and accordingly the price should be distributed so that company can
gain profit as well as can gain top position.
2. Time – The factor of time is easy to use to monitor its growth, the more time
product sustains its life the more it is growing can be assumed. But this is not
exact and precise manner of judgement so it is very important to use another
factor of demand (Stapenhurst, 2005). With time if demand of product will
increase then it is precisely said that product is developing in the market.
3. Quality – Growth of natural fruit soap is completely dependent upon its quality
as this is the only factor which makes it competitive and different from other
soaps. So it is very essential to increase its quality as much as possible.
4. Budgetary Control – It is the most important factor to control and manage
the growth of the product. Sales budget, Production budget, Raw material
budget, Labour budget and Cash budget are defined in order to make
assumptions of profit, revenue and probability of achievement of goals. But
the budget defined should be flexible so that the budged itself will not become
a hurdle in working.

pg. 14
References
Ahmad, M. (2013). Marketing Case Studies and Swot Analysis. Saarbrücken: LAP
LAMBERT Academic Publishing.
Cook, S., Macaulay, S. and Coldicott, H. (2004). Change management excellence.
London: Kogan Page.
Fifield, P. (2007). Marketing strategy. Amsterdam: Elsevier/Butterworth-
Heinemann.
Shapiro, B. (1984). The marketing mix. Boston, Mass.: Distributed by the Pub.
Division, Harvard Business School.
Stapenhurst, T. (2005). Mastering statistical process control. Oxford:
Elsevier/Butterworth-Heinemann.
Wong, H., Radel, K. and Ramsaran-Fowdar, R. (2011). Building a marketing plan.
New York, NY: Business Expert Press.
Clifton, R., Simmons, J. and Ahmad, S. (2003). Brands and branding. London:
Profile Books.
Hughes, R. and Thompson, J. (2012). Business budgeting. Bondi, N.S.W.: National
Core Accounting Publications.
Littlesoapcompany.co.uk, (2015). [online] Available at:
http://www.littlesoapcompany.co.uk/ [Accessed 18 Mar. 2015].
Naturalsoap.co.uk, (2015). Natural Soap Company - Handmade Natural Soaps -
Wells, Norfolk, UK. [online] Available at: http://www.naturalsoap.co.uk/
[Accessed 18 Mar. 2015].

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