Chic Soap Distribution Channels

1015 Words Sep 24th, 2013 5 Pages
Distribution Channels Case Study
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1 Target market are Women, Married or in a relationship, between age of 21-45, socioeconomic group A, and located eastern South. Target market can be further segmented according to age, working status, weather or season. Moreover married men are also potential customers as they would buy the product as a gift. Special gift packaging would be attractive, maybe a non-polished, light in colour wooden box containing an organic irregular Loofa textured at the sides, and an organic foot scrubber in addition to 5 bare bars of Chic Soap featuring different aromas having regular shapes rectangular, circular, or square.

2 Products would be sold to end-users through independent chemists and
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A large sign with Chic Soap logo saying grab your gift from the tub it is shallow, with some samples under the aromatized water. It is good to make people feel you are spending too much on launch advertisement as this puts the product in a special position before even using it, that it is a high quality, reliable product.

3 Chic Soap offer the best odours who already people love and have a proven market share. Chic Soap aromas are undebatable. Furthermore if you like a perfume why not make your whole body smell so. Chic Soap offers you the luxury in your tub. It is a premium product in the premium market.

Cost and Price calculation Assumptions 5 fragrances are being produced Production line is fully depreciated after 5 years Advertisement the same as other large companies 400000₤ Area rented 4000 square feet 2000 for production line and 2000 feet for storage of raw materials and some few finished goods. Selling Price using add on pricing of 20%, given that retailers make gross profit of 20% and wholesalers another 8%

Fixed Cost Business rate Rent Depreciation 5000 ₤ 25000 ₤ 5000 ₤

Quality Control 105000 ₤ Advertisement 400000 ₤ Total 540000 ₤ Scale Fixed Cost/ unit Variable Cost/ unit Fragrance Cost/ unit Total Cost/

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