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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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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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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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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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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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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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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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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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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.