Objectives

 Problem statement:
 The sales results for Neev soaps are promising,
 Consumers are satisfied with the performance of soaps,
 But business has yet to become sustainable
 Company had first round of discussions with few venture
capitalist and funding agencies
 Initial response has been positive, the venture capitalists say
that funding would be possible only if the business has
reached certain threshold level
 Objectives
 Profitably Segment, Target and Position the product
 Refine the channel and distribution networks
 Enhance sales to a threshold level to obtain VC funding
 Increase awareness of Herbal handmade soaps

Brand - Khadi
• Positioning: Eco Friendly Soap,
Freshness & Fairness
• Products: Khadi Handmade Soap,
Glycerin Transparent Soap
• Availability: Chain of retail stores
in various parts of UP and New
Delhi, Exports to USA, UK, etc
• Price: Rs 45
Medimix, Margo, Chandrika
•Not 100% Herbal
•Established players
•Low Price
Competitors
Hand made Natural Soaps Brand Name – Anuspa Premium Herbal
Soap
Brand Name - Aroma Botanique • Positioning :Skin Care
• Positioning : Aromatherapy • Products: Huge Variety – Premium ,
• Products: Sandalwood N Rose, Shahi, Regular
Neem N Tulsi, Fresh Flowers with • Availability: Stores like Apna Bazaar,
Honey, Apricot N Almond Bar Khadi Gramudyog and some
• Availability: Distributed to various prestigious stores in Mumbai and Pune
retail outlets by MADAL BAL GOA • Price: Premium Rs 39, Shahi Rs 48 all
EXPORTS PVT LTD, Also Exported 125 gm Regular
to Europe
• Price: Rs 75 for 125 gm
Other beauty soaps
•Non herbal and Popular Brands
Other Soaps •Market leaders
•Lower price
 Segmentation
Age Group - 15-24 Age - 40+ Age : 25-40
• Occupation : Students • SEC : A,B • SEC : A,B
• Life Style : Outdoor oriented, • Life Style : culture oriented • Life Style : culture oriented
sports oriented • Benefits derived : Skin Care, • Benefits derived : Skin Care,
• Benefits derived : Antiseptic Soap, freshness freshness, fragrance
Skin Cleansing, Fragrance • Sex: Male, Female • Sex: Female
• Sex : Female • Awareness Level: High • Awareness Level: High
• Awareness Level: High

Target Segment – Age : 25-40, Female, SEC A,B

• High Disposable Family Income

• Higher Awareness level and Liking for Natural Products
• Concentrated demand in the top cities that we are trying to get a grip on. The top 10 odd cities contain about 20% of
India’s urban population as per estimates
 Positioning Price (For Almond Rose / Patchouli)

100 gm 55-65
75 gm 40-50
• Price it higher to serve select clientele as we
don’t have economies of scale
• Significant margin for channel
• Profit on margin not volume
• In the future, reduce the prices / launch
another brand to cater to masses
• Use uniform pricing across cities

Channels
Pricing National Handicrafts Fairs majorly held in Tier I
cities, Local fairs in cities like Jamshedpur,
Ranchi, Ahmedabad, and other Tier II cities
KVIC outlets, Apna Bazaar, Reliance owned
Sahakari Bhandars and other such outlets
Premium retail outlets in metros such as Delhi,
Bangalore, and Mumbai
Collaboration with a distribution partner is must
in order to cater to the such retail Outlets
Will provide a push to the sales and increase the
reach as well as visibility
Tie-ups with Nature based SPAs and resorts
 Promotion
Internet: Cost Effective medium with a wide reach
• Facebook Page containing product information
• Social Media Campaigns like “Go Green” Radio advertising:
• Viral Videos on Facebook and Youtube • Advertisements through local
Radio Channels in Jharkhand to
Free sample Distribution: increase awareness and generate
• Distributed to the customers buying any kind of herbal product at trials
the retail shops where the product is available

Fairs (Mela):
• Fairs act as an effective way of promotion as well as for the product sales
• Flexible medium to reach different audiences
• Trade promotions through “Buy one get one free” offers instead of price reduction
Other activities:
• Promotional activities like brochure distribution or even free sample distribution at various ayurvedic and
health clinics as well as High-end boutiques

Way Forward
•Use VC funding to: Increase productivity; Reduce Costs (Minimize Wastage); Expand Distribution Network; Product
Diversification – Liquid Soaps, Shampoos, Hair Oil
•Export the products overseas as Neev gets tax exemptions
•Extend the NEEV model to other parts of the country to cater to new markets