Technical Manager

In: Computers and Technology

Submitted By aeldeeb
Words 1257
Pages 6
Distribution Channels Case Study
Chic Soap
You are asked to help formulate the marketing plan for the entrepreneur starting Chic Soap. The concept behind Chic Soap is simple; it sets out to incorporate fashionable perfumes such as Obsession, Raffinee and Opium into a high quality white soap base. The product would then be packaged using the logo of the perfume plus a Chic Soap common background. The advantages for the perfume supplier are: a guaranteed outlet for its perfumes at full retail prices; and a low cost trial route for potential customers. The advantages for Chic Soap are: the use of already established perfume concepts to promote the soap; and access to the distribution achieved by the perfumes. You are asked to identify the segment towards which the product is directed, the product benefit that is on offer, the way in which the segment will be serviced; how the distribution channel will be supported, what promotional planning will need to be included and an outline cash flow.
1. The distribution channels available for the sale of toilet soaps of various qualities are independent chemists, department stores, multiple chemists, supermarkets, and grocers. There were an estimated 200,000 outlets selling soap in the United Kingdom. Most of these sold mass market products which retailed at £0.25 per 150 gm bar. Premium soaps made up only a small proportion of the market and were available in a limited number of outlets which included independent chemists and department stores.
2. The main competitive products in the premium sector were soaps such as Roger and Gallet, Penhaligon range, Yardley, Morley and three internationally available premium soaps. The prices for the 150gm bar for the 5 main ranges were: £1.60, 1.75, £1.85, £1.95, £1.45. There was some evidence that the price elasticity of the premium product sector was fairly low. Consumers bought the…...

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