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Marketing plan of the company "Caspian Beauty Laboratories" (further "CBL") in developing and selling it first product: new dry shampoo line "Novitas" contains some specific steps and analysis which we are going to commit.

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Marketing Plan for a


new product launch





Group members:                                Abdykhalykov Nurakhmet, 20120344

Amergaliyev Daulet, 20140231

Kokbayev Ansar, 20142135

Ungaliyeva Sabinaz, 20130630


                        Instructor:                                          Alina Kurbanova 





Fall, 2015




                       Table of Contents



      Executive Summary.............................................

      Current Marketing Situation............................

                   Market Description...............................

                   Product Review......................................

                   Competition.............................................                         Distribution............................................... 

       Threats & Opportunities....................................

       Objectives & Issues...............................................

       Marketing Strategy..............................................

                    Target Market........................................                          Product....................................................                           Price..........................................................



         Action Programs................................................









         First of all there is an analysis of current market situation, which contains our targeted audience, who are Generation Y women, mostly ranging between the ages of 18-40. Also there is a review of "Novitas", which shows its specifications and differentiation compared with other products in this sphere. Finally this analysis reveals information about competitors in the market of hair care.        

         Second step is threats and opportunities analysis which reveals some positive and negative features that "CBL" could face. Opportunities as we analyzed as result of analysis are independence from external resources, increased perception of active lifestyle and self-attractiveness, heavy investments in the research of shampoos, stable population growth and other demographic indicators. Some threats, that we expect could interfere "CBL's" straight development are economic slowdown (recession), competitors' reaction, possible appearance of new market entries.

         Third step reveals company's objectives and issues, that is what we are planning to achieve presenting, developing and selling "Novitas". As our main objectives, we are planning to create new product, that is different from other products in the sphere with its superior quality and effect. Also "CBL" wants to enter the market and maintain stable position as long as possible. To reach that purpose, we are going to commit different actions, including use of PR department.

The forth and one of the main steps is based on strategy that we are going to complete to reach our goals. It consists of some crucial points such as target market, and popular 4 P's: Product, Price, Place, Promotion.

        The next issue is action programs that we are going to do in order to reach our goals and objectives. As most of companies worldwide, we are going to use 3 techniques: first Below-The-Line (BTL), second –direct advertisement and the last one is social networks.

Certainly, as in every plan we analyzed budgets, that we are planning to spent and that we are planning to earn, selling "Novista". To fulfill our plans and start a business "CBL" is going to apply European start-up model, which means that we will attract investors and sell common shares. Also there are losses that we are probably will face. There is an Excel Table below which reveals details about all losses and profits.

           The last step is planning of control systems of doing our business. "CBL" would hire control groups, who would do control on quality of the product, control on consumers' feedbacks based on their responses to company's survey about "Novista", control on targeted audience, who as mentioned before are Generation Y women, mostly ranging between the ages of 18-40, control on budget that is connected with selling "Novista" and investments on its production, and finally control on market shares, that is percentage of shares in the sphere of hair care compared to our competitors. 




Marketing plan of the company "Caspian Beauty Laboratories" (further "CBL") in developing and selling it first product: new dry shampoo line "Novitas" contains some specific steps and analysis which we are going to commit.

       The usage of dry shampoos goes beyond the applications of the traditional shampoos, in order to satisfy the customers' needs in the best way. Thus, “Novitas” applies the want of a good shampoo that helps people to make their hair clean in a short time with excellent quality, suitable quantity and high utility. In order to forecast the changing needs and preferences of our customers, we had analyzed all the forces in the external marketing environment that may influence our customers' purchase. First, one of the most important demographic trends is the changing age structure of the population. Analytically, the amount of echo boomers (Generation Y) in our country would decrease over the time, passing the reins to even young generations. Statistic shows that the rate of female population in the ages between 35 and 40 is about 6, 97 %, while estimate of teen girls from 10 to 14 years old is above 7,5 %.Soon, when they grow up and turn into young ladies, highly involved in daily look and style, but constrained with the time limits, the purchases of a dry shampoo may significantly increase. However, recent economic slowdown along with the devaluation and high inflation ratio may stimulate unemployment rate and reduce incomes of the middle-class. In context of a socio-cultural forces more and more people are moving toward environmentally friendly products, carefully gathering and analyzing information during the buying process, finally choosing the most natural and organic product.


     Current Marketing Situation

     Market Description

     The company "Caspian Beauty Laboratories" is established in September 2015. Our company's first product is a dry shampoo, called "Novitas", that is going to be introduced and distributed in Kazakhstani hair care market.

      Kazakhstani hair care market consists of the sale of colorants, conditioners, hair loss treatments, perms and relaxants, salon hair care, shampoos, styling agents and etc. In general, statistic shows that current value sales of hair care increased by 12% in 2014. What's more important, standard shampoos held the highest value share of 54%, accounting for KZT 16 billion as it is considered the most valid product for personal hygiene and care. However, no data was found on dry shampoo's market in our country. Even if the forecasts predict that the sustained growth for shampoo products will keep the pace for the following 5 years, the way in which Novista Dry Shampoo might fall into the niche of the growing market is uncertain, because of the untraditional and un-sought product type. In fact, a recent research from Mintel beauty & Personal Care has shown that dry shampoos were accounted for 6% of the new product developments in 2014 compared to just 3% of the global shampoo launch activity in 2012. Therefore we suggest that properly established marketing plan will help us to increase awareness about the dry shampoo in the national hair care market andenhance strong demand for our product.


Product Review


     Our product line of dry shampoos is called Novitas, which is translates from the Latin language as recency, novelty or newness. 

     Novitas Dry Shampoo gently revives hair in 2 minutes - naturally. With a unique combination of plant-based ingredients, our dry shampoo absorbs excess oil so hair is left clean and volumized. We specifically designed it in different botanical formulas to meet different hair needs. Thus, for normal hair's type we developed "


  • Novitas Oat Milk", because the soothing and protective properties of the oat respect the natural balance of the scalp and hair, making it ideal for daily use for all hair types. 


  • Another product feature is "Novitas Nettle, where nettle is used as an astringent and re-animator, Also, product varies depending on the color of the hair.


  •  So,  Novitas Oat milk/Nettle-Natural Tint dry shampoo is offered especially for dark shades of the hair.

       Our product is a very organic and ecologically friendly, there is no sulfates, parabens, silicones or sodium chloride.



Table 1.0


Novitas Oat Milk

Novitas Nettle

Novitas Oat Milk

Natural Tint

Novitas Nettle

Natural Tint













  •       Novitas Dry Shampoo is available in aerosol and non-aerosol bottles. Capacity size is 50ml. (travel-size) and 150ml.

Dry shampoo sprays are compliant with all environmental requirements. Our offer is considered to be a mid-level line of hair care products.


Below is the price distribution for different features in the product line:


       There is only a few dry shampoo producers available in the Kazakhstani hair care market: Klorane, Garnier Fructis, Schwarzkopf & Henkel, P&G. Our biggest competitor is Syoss, a product of Schwarzkopf & Henkel, because it is the most widely offered dry shampoo's producer in the local markets, and even if people aware of the existence of the dry shampoos, their association usually calls for the Syoss Dry Shampoo's collection. However, most of the reviewers in the social networks respond negatively to the Syoss, since it leaves their hare feel uncomfortable and oily with a white precipitates. 





       In terms of distribution, CBL and competitors' products would be sold at most major retailers, drug stores, and grocery stores. Since these products are targeted to a wide audience and are positioned as a mid-level products, they won't be distributed to hair-salons. Distribution will be discussed further in the Marketing Strategy's section of this report.




  • Independence from external resources
  • Increased perception of active lifestyle and self-attractiveness
  • Heavy investments in the research of shampoos
  • Stable population growth and other demographic indicators

     Increased perception of active lifestyle and self-attractiveness-The target audience of this dry shampoo mainly consists of 18 to 40 aged women, who belong to the middle-class, live in the urban areas, care about their attractiveness and, most importantly, use an active and busy lifestyle. In hurry, some people, often women who have long hair, hesitate to wash their head, as it's too much time consuming, that’s why they might find our product as very handy.

   Independence from external resources-Unlike ordinary shampoos, Novitas does not use water, which is key factor and inseparable part of shampoo. And if water is bad or even worse, there is no water, there is no use of ordinary shampoo. So, in a condition when you have limited resources of water, or lack of it’s quality, the only thing you can do is usage of our product!

  Heavy investments in the research of shampoos-In the world where water becomes not just ordinary demand, but valuable commodity, especially in rural locations, and other unfavorable, poor locations like Africa, deserts and etc. P&G makes heavy investments in developing shampoo that will use minimal amounts of water, will be cheap and available for those who cannot afford a shampoo in scarce of some resources including money. NASA, ESA and other big organizations are making deep research in finding ways to be clean and not use traditional methods, these researches are needed for astronauts in space, soldiers and others, who have very small amount of resources with them available.

After possible success of such research and development programs, it opens great opportunities for differentiation of our product. New researches can give the market something new, innovative and very useful, which we can offer and produce to the wide audience.

  Stable population growth – as in EAC, the population is headed upwards in last 5 years and predicted to be maintained in closest future, we are expecting constant consumer audience including main customers of our product : women, which are always outgrowing population of men, especially in EAC region.

Life expectancy is also growing, hitting an average of 70 years, which can increase the range and population that can be our customers.

Poverty level decreased to 2.5% compared to 8.2% in 2009, which again, indicates that more of population can afford our product.








  •  Economic slowdown (recession)                               
  •  Competitor’s reaction
  • Possible appearance of new market entries

Economic slowdown (recession)-It’s a known fact that EAC region faced stagnation of economy and even recession, which would mean the slowed down development of hair-care products and unwillingness to pay more for high value-added products. While consumers will keep purchasing traditional shampoos and other convenient goods, they may be hesitant to buy noteworthy products.


Competitor’s reaction- big corporations like P&G or Unilever might be interested in our type of product niche and make their own with lower price, more recognizable brand and with more powerful marketing strategy which may hurt our position on the market.


Possible appearance of new market entries- if not big manufacturers, other new start-up with more significant investments may enter. Our product can be copied or even improved by competitive firms, which would lead to loss of our different approach and loss of the uniqueness of our product.

Objectives and issues

"Caspian Beauty Laboratories" creates high quality and affordable cosmetics to meet the many needs of personal care.

"CBL" is a new company, and in the time of high standards of consumer satisfaction our company must do its best. What we can offer to the market, is affordable, qualitative products. Our product is new and different, and we are not stopping only at that point. We are committed to excellent quality and satisfaction of our customers.

"Novitas" is the first Kazakh shampoo product, "CBL" is first cosmetics factory and as a flagman, we are headed in benefits for our company and our employees.

As for objectives of our company-

"Caspian Beauty Laboratories" wants to enter the market and maintain stable position as long as possible. Firstly, PR department has to build positive relations with the market, aware it with our brand and product. Production department is responsible for delivering great product and leave unforgettable first impressions right after first usage of our product. We also must strive to affordability of our products; this process is lifelong and requires dedication to constant researches and reduction of costs.

As it comes to specific objectives, we wish to

  • Grow the number of customers by 25% by the end of II quarter of 2017.

  • Increase revenue from existing customers by 30% in 2.5 years.

  • Reach break-even in 2.5 years

  • Participate in 3 community events during the next 12 months

  • Ensure average ROI on marketing activities of at least 75%.

  • Contribute 25% to the sales funnel each quarter.

Despite the threats and absence of many players on our niche we hope that we are going to dominate our product niche and maintain our high share on the market by constant improvements and development of our products.  


Marketing strategy


Target Market


      The central part of marketing strategy is a target customers. Our specialists had divided up a market into distinctive groups on the basis of demographic, psycho-graphic and behavioral factors. Thus, the new dry shampoo's production is aimed at the target market of "optimistic, altruistic, and experiential" Generation Y women, mostly ranging between the ages of 18-40. We have decided to target this particular market because there is no current shampoo brand addressing the needs of this age group, and that this market wanted new products to meet their specific needs. The females in this target market are individualistic and like to be aware of the latest trends and don’t afraid of trying new products. Moreover, people aged between 18 and 40 are more likely to be very busy, does not matter with what exactly: they are either a students or workers, or taking care of their children, go shopping, etc. Of course, sometimes they may simply oversleep in the morning and be unable to wash, dry and style hair, while looking good is still extremely important for all of them! As to behavioral characteristics, our target audience is concerned that frequent washing can actually strip the hair of its natural oils, damaging them and making more dependent on daily washings. In terms of the income, our prospective customers are chosen from the middle class. Besides, dry shampoo is a convenient solution for hair while traveling, after work-outs. The usage of dry shampoos goes beyond the applications of the traditional shampoos, in order to satisfy the customers' needs in the best way. Thus, “Novitas” applies the want of a good shampoo that helps people to make their hair clean in a short time with excellent quality, suitable quantity and high utility. 




Dry shampoo is a pure tangible good and the basis upon which Caspian Beauty Laboratories are going to build profitable relationships with consumers. For many Kazakhs, naturalness and advanced formulations have become important matters. Natural ingredients started to prove popular with Kazakh consumers as they are considered both safe and effective, while advanced formulations are popular with the most demanding audience seeking effective and fast-working solutions. The core benefit that the dry shampoo brings to the customers is that it makes their hair clean within a short time. In order to fulfill the core benefit, we developed an actual product of our company - dry shampoo named "Novitas", that is makes hair clean and volumized in 2 minutes, without use of a water, additionally providing a good smell. It also provides variant solutions for different hair care needs. In terms of the quality, our dry shampoo contains only organic and natural ingredients, and keeps hair clean for a 24 hours. Then, we decided to pack it in a compact metal aerosol/non-aerosol cans, with a lovely display and then the plastic lid. Moreover, we included short instructions step-by-step use of a dry shampoo on display of the bottle. Finally, dry shampoo is classified as an unsought consumer product's type, because in our country people either aren't aware about the product or knows about but does not normally think of buying it.





2. Price


          We began value-based pricing by analyzing consumer needs and value perceptions. It was identified that there is a shift towards cheaper brands, notably amongst price-conscious Kazakhs, as companies offer good value-for-money. Therefore, we priced our new product reasonably and its price is much lower than of competitors, using market-penetration pricing. In order to increase loyalty among users of our product, the final price is chosen on the basis of a long-term, along with a higher quality.        


        However, the importance of reducing costs and expenses is also emphasized, since when the costs are above revenue, the company may fail in its profitability and exit the market. Thus, all monthly cost items, were well planned in detail. At the end of each month, actual cost will be compared with the approved cost, to evaluate monthly performance of the managers.

3. Place 

     Manufacturing fabrics is situated in Aktau, while distribution center is located in Almaty, with equipment and operating layout are technologically-efficient and modern. CBL uses a push strategy through indirect distribution where dry shampoo could be easily accessible to all consumers with intensive distribution at major retailers, grocery stores, drug stores, cosmetic shops, such as: Ramstor, Magnum, Mon Amie, Europharma, etc. In addition to these bricks & mortar retailers, we would provide our target audience who are accustomed to using technology and purchasing on-line with a web-page, where they could order delivery of a product right from the company, without involvement of a third party.

4. Promotion

        The promotional aspect of the marketing mix is tailored to capture the attention of the targeted segment. In addition to building awareness in this segment, other short-term promotional objectives used to increase sales include prompting trial and educating benefits, while working towards long-term objectives of increasing market share, customer loyalty and overall sales. Our company also would utilize the Internet to communicate with our target market by advertisement on Internet websites, social networking sites such as Facebook, Twitter, Instagram, etc. In addition to this, the pull strategy will be used in more traditional promotional methods such as television commercials and magazine advertisements.



        With consumers being aware of the new dry shampoo product "Novitas", the promotional strategies would definitely attract the interest of the Generation Y population. The lovely and cute attractive appearance of a bottle, meant to appeal to the youthful and energetic personalities of Generation Y girls, also appeals to the females above 30 years using graceful and harmonious titles of the in-line collections. With the 4 customized collections appealing both to the hair problem needs and to the self-concept of Generation Y middle-aged representatives at the same time, this inevitably results in their desire for the product, and ultimately in the action to purchase the product, as consistent with the AIDA model. This promotional strategy is effective at reaching the target market due to the use of communication channels, specifically use of technology and social networking services. In addition, offering on-line promotions, discussions as well as instructional videos that promote our product would add value to the overall experience for our target consumer while increasing brand exposure. 


Action programs 


       It is obvious that without action programs sales of products will not raise quickly as we want. So action programs is one of the best options for developing the product in the Market. Practically in our World we can see that most of the companies use 3 different ways of promotion. First is a  Below-The-Line (BTL), second –direct advertisement and the last one is social networks.

       Social networks take separate environment in promoting the product. For example ,when users of social networks such as Instagram, Facebook, Vkontakte looking through news can see a lot of advertisement as separate place in page or in user, who have a lot of subscribers. According to the statistical data, have 71 million and Facebook have 1 billion daily, unique users. Zhumagaliev (2011) suggests that nowadays 4 million and 300 thousand people actively uses internet. Concerning our product, social network one of the best way of promoting of our shampoo product and where users can easily share their feedback with their friends. In detail, our company is going to promote the product via invited papers, attracting of popular users, and directly to the users through places for advertisement. Payment for advertisement in social networks we can divide by “click”, “in place” . According to Golubev (2013) for “click” advertisement will cost 50-60 Tenge, “in place” 15-20 Tenge. But the main point is this price only for one user; we cannot say that this product is interesting for user. That’s why we will try to make paid articles in some internet resources such as, and etc. According to the statistics have almost 11 million users and to make a paid article it will costs 400.000 Tg/per day. The key success of the social network advertisement is to obtain as much users as possible.





        For our business we are going to apply European start up model, which means that we will attract investors and sell common shares. Our company will try to avoid taking loans from the second level banks. Because it is better to pay to our stakeholders by distributing dividends, and pay less interests for the bank. In our property, plant and equipment we will by a warehouse for our products with production department and equipment. We will by technologies and patent for developing our shampoo product. Moreover to start our business we need cash, and we are going input our cash amounted 5’000’000 tg and sell shares for 60 mln. Tg. Furthermore in Income statement for the year ended December 31, 2015 we can see that our operating expenses high and will not covered by sales revenue. According to our action plan our company is going to pay cash for advertising expenses for 2’570’000Tg. In details for paid articles: 500’000, social networks: 240’000, radio spots: 400’000, billboard: 300’000, SuperMarket: 680’000 and TV spots: 450’000Tg. “Caspian Beauty Laboratories” will try to make a lot of profit since starting operation but expectations for 1 year is not so high, that’s why we expect 8,5 mln. Tg revenue. Further information about supplies, equipment and where cash money goes in and out can be founded in ExcelSheet. 

       In BTL there are simple way of promoting product by inviting females and distribute our product in large supermarkets like ADK, Ramstore, Green, Magnum and Arzan. The main advantage is promoters will target audience in place where shampoo is sells and communicate with potential customers. The main costs for this action plan will be: salary for promoters, testing products, payment for supermarkets. We can assume that this “test” product will cost approximately 200tg/per product and salary is 5 tg/per promoter/per day. Actually, it is important to note that for best effectiveness they will work on weekends and holidays. And last thing is payment for Supermarkets; it will cost 500 U.S. dollars for 1 day.

      For the Direct marketing we assume that it will be the most costly action program. We are going to promote product in billboards, TV advertisement: especially targeting in woman serials, TV show and etc. and last one is Radio spots. According to Leiderman(2013) advertisement in billboards bring a lot of benefit for company such as big reputation and brand memorability. However comparing with internet advertisement where company can see statistical data and do their decision, direct marketing does not work in this way, but still it is the best way of promoting the product that will never be replaced by other advertisement ways. Since in our country we have 33 radio stations we need to choose several of them which will bring a lot of profit from customers and Love radio can be one of them just because this radio is the most popular among young generation and the “Big Love Show” the most popular project which bring a lot of listeners. Concerning the price billboards with montage and dismantle plus taxes will cost approximately 400’000 tg. Because they all works operates in night time and in weekends, as we know payments are doubled for workers. In radio one 30s spot costs 50’000 tg and in Tv 60s spot costs 100’000 tg.




Quality Control 

          To satisfy customers and gain their loyalty, we are going to make superior product, that is different from other products in this sphere. One of crucial advantage is that we are maximizing use of natural ingredients in our dry shampoos. So in order to produce a perfect shampoo we focus on controlling quality of ingredients, quality of shampoo production process itself, quality of bottles that will contain shampoos. Control group would monitor each step of production to make sure that these efforts meets company's requirements and high standards of luxury dry shampoos.  

Feedback Control 

     In order to reach our purposes, create superior customer value and make revenue our company should implement strict control and monitoring on each step and application.
       To make customer value we should be able to interest consumers and be sure that they are interested in our product and that they are appreciating it. Like in every marketing plan we will conduct some monitoring of people thoughts about the product and company - feedback based on their experience. We are going to use different surveys in order to get that data, and we will focus especially on online surveys. There are some sample questions that we plan to use in surveys:

     - How often do you use "Novitas" dry shampoo?

        - Why you have chosen exactly "Novitas"?

               - To what extent are you satisfied with the product?

                       - Are there any defects that you think prevents to properly use "Novitas"?

                                    -To what extent is "Novitas" helpful in your everyday life? 

       Also it is planned to ask about different types of our product. Such a control could be very helpful. For example, if we understand from surveys that almost nobody uses "Novitas Oat Milk" or some of the users complain on its non-effectiveness, we could cancel production of it or modify specifications of this product.


Control of Targeted Audience


  Also we are going to control targeted audience of company that we thought are most appropriate to use our products. As mentioned earlier we focus on Generation Y women, mostly ranging between the ages of 18-40 and our control group will monitor whether this specific group is using "Novitas" dry shampoos. If targeted audience does not respond to the market and totally different audience is using our product, control groups would conduct research in order to understand causes of such a discrepancy. Certainly such a problems could be because of inaccurate targeting, and in order to fix the problem, control groups could target new audience based on sales data. 


Budget Control


         Certainly our control groups, like in every company, are caring about budget. We are buying ingredients, products, materials - everything that is needed to produce "Novitas" dry shampoos. To buy them we should invest huge amount of money. There is money spent on office building, insurance. Also there are advertising expenses, cost of marketing research, and internal staff expenses, such as salaries. There is no doubt, that not everything would be profitable, and as shown on table below in the first year we would get economic loss. Thus, control groups would be monitoring all costs that we are spending and money that we are getting selling our products - to prevent such losses in future. They will monitor budgets and come up with specific steps in order to maximize profit and minimize spending.  


Market Share Control


Certainly we have competitors in the sphere that we are involved in and if we sell more than them, if we do well than they do - we increase our market share. In order to increase that market share we have certain plan, and separate control group that will monitor whether we are following it or not. For example, if we plan to increase our shares by 5 per cent till March 2016, control group would give their best to hold on the plan and analyze each step that are needed to accomplish that increase. 

Reference List



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Dry Shampoos Accounted fir 3% of Global Shampoo Launch Activity in 2012. (2013, March 13). Retrieved December 1, 2015, from

Dry Shampoos Succeed through a Beauty Positioning. (2014, September 8). Retrieved December 3, 2015, from

Europe and Central Asia. (2015, December 1). Retrieved December 1, 2015, from

Golubev, Y. (2013). Advertising costs on social networks. Retrieved from

Hair Care in Kazakhstan. (2015, September 1). Retrieved September 1, 2015, from

Leiderman, D. (2013). Effectiveness of outdoor advertising and perspectives of its development.

Liveinternet.(2015). Site statistics for Retrieved from

Wikipedia.(2015). Facebook. Retrieved from

Zhumagaliev, A. (2011). Numbers of internet users increased for 4,3mln people.