HALAL Organic Soap

Marketing Plan

Umarr Afridi
18281
Haseeb Abbasi 18236
Yasir Chaudary
15236
Khudadad Khan

HALAL Organic Soap

ACKNOWLEDG
EMENT
The objective of our report
is to obtain the assistance
and

support

of

the

marketing plan that details

the actions necessary to
achieve

the

marketing

objectives as to penetrate
the market of product.
The

overall

marketing

communication deals with

situation analysis, target
market

specification,

product

evaluation,

marketing objectives and

the

marketing

communication

program

itself.
As in our group project,
we focus specifically on
Zurain (M) Sdn Bhd Herbal Organic
Soap. Since this is a new
product in the market, it
will take more effort to
introduce
consumer.

it

to

the

HALAL Organic Soap

EXECUTIVE
SUMMARY
Zurain (M) Sdn Bhd has
designed a new product
that

provides

managers

with a quick, easy, and

affordable

method

effectively

to

monitor

employee hand washing.

Proper hand washing is the
most effective preventative
measure

available

to

combat

communicable

diseases.

Zurain (M) Sdn Bhd is the

first

producer

organic

using

materials

that

answers this problem and

provides

indisputable

proof every time a person

washes his or her hands.
After washing occurs, the
unique dye in our soap
remains on the hands and
fades to the skins natural
color in less than six
minutes. This would allow
supervisors

to

conclusively verify at a
glance

whether

hand

washing has taken place.

No other product on the
market offers such a high
level

of

assurance

of

sanitation

compliance.

The product is safe and

no chemicals that effect
our sensitive skins. Now a
days

since

become
purchasing

Halal

an

issue
a

has
in

product.

Because of that Zurain

(M) Sdn Bhd had line up
the Halal ingredient in
making this product .

HALAL Organic Soap

SWOT analysis
The following SWOT analysis captures the key strengths and weaknesses within the
company, and describes the opportunities and threats facing Halal Organic Soap.
1.1

Strengths

1.2

In-depth industry experience and insight.

Accessible, approachable and economical products.

The use of a highly-efficient advertisement.

HALAL product produced by Muslims.

Weaknesses

1.3

Had a lot of shortages, not have enough of the right product in the stores.

Underestimated how much they would sell when they first entered the market.

Competition within the usual soap product which is cheaper.

Not available in high volume.

Opportunities

1.4

Participation within a growing industry.

Promoting organic and hand-made product which is safer in used.

Threats

Future and potential competition from an already established market participant.

A slump in the economy that could have a negative effect on peoples spending of
discretionary income on self hygiene products.

HALAL Organic Soap

The Market
Although restaurants and hospitals have tremendous market need for a product such as
ours, day cares represent the best opportunity for our initial target market. Day cares are
an ideal market because they have a vested interest in reducing disease transfer amongst
children, and have adamant support from their clients [parents] to create as clean an
environment as possible.
The Company
Zurain (M) Sdn Bhd boasts a strong founding team and experienced board of advisors
brings twenty years of industry experience and networked relationships to accelerate
market penetration of the product line.
Zurain (M) Sdn Bhd will follow three concise strategies to achieve our desired growth:

Exploit first-mover advantage in a highly fragmented market with a unique and

differentiated product.

Develop a strong branding campaign to build awareness, positive perception and sales
of our products within our target markets.

Continue to develop new products to satisfy an ever growing set of markets.

Mission
Our mission is to create value for customers and shareholders by continually improving
health and reducing preventable illnesses through the use of our soap.
Keys to Success

A first-mover branding campaign to build awareness of our products as the standard

for ensuring body and hand washing compliance.

Patent protection to defend our time-sensitive dye and product concept from
competitors.

Complementary relationships with organizations interested in increasing body and

hand washing compliance.

HALAL Organic Soap

Objectives

Become the specialty soap of choice for day cares.

Products
It is estimated that the worlds Halal products trade averages nearly US$150 billion per year.
The existence of such a big market naturally opens the doors of economic opportunities for
these engaged in the business, directly or indirectly.
A successful marketer is not always the one who produces exactly the same as of others,
but the one who, while producing the same product lines, can cater to the special tastes,
preferences and needs of a group of customers which other producers have failed to meet.
Halal product market exists wherever there are Muslim consumers whose tastes and
preferences are governed by Halal rules and specification. Halal products may be similar
as most of other product, but its nature, technique of its processing, the ingredients used,
the handling methods from the beginning to the end, is always the one approved and
recommended by Islamic law.
In light of this, Zurain (M) Sdn Bhd have made the decision to produce and market a
product that is targeted specifically for Muslim consumers. Halal organic soap. There are
loads of shower gel products that are already available on the market at current, however,
how many of those products can be used confidently by Muslim consumers. Zakeeyah
shower gel will provide that confident to the consumers
The producers of Halal food can take the cue from this relationship and sponsor activities
that would raise the level of Islamic consciousness of the people, eventually contributing to
increase in the demand for their particular product.
Zurain (M) Sdn Bhd product line provides a unique control level to managers, supervisors
and parents alike. Halal organic Soap is an antimicrobial-based product for hospitals
(HEALTHassure) and restaurants (FOODassure) - the antibacterial products are not yet in
development.

HALAL Organic Soap

Product Description

Zurain (M) Sdn Bhd will produce a line of institutional Halal organic soaps with a timesensitive dye blended into the mixture.

The packaging will be compatible with existing soap dispensers mounted in washing
stations and be available in a variety of sizes.

Initially, Zurain (M) Sdn Bhd will produce products with child care acquirers in mind,
utilizing the brightest colors possible. This product line will consist of herbals and
organics that comes together with HALAL.

HALAL had become an issue here because, in the market, there are a lot of organic
soap available. Consumer cannot really trust the product because they dont really
know satisfy the ingredient use in the soap making..

Market Segmentation
Zurain (M) Sdn Bhd will first be introduced in the Klang Valley area, before sequential
expansion to additional day care markets. After successful implementation in Klang Valley,
we will begin expansion into the other States in Peninsular Malaysia, Sabah and Sarawak.
TARGET MARKET SPECIFICATION
A. DemographicTargeti
Gender
The targeted group for this product is for both woman and also man who are
concern health and cleanliness. Since Halal Organic Soap is produce with herbal
blended that can help consumer to make body feel soft.
ii Medium and lower Income
With the price of RM 5.90 per piece Halal Organic Soap is affordable for people
who conscious about health and cleanliness.
iii Young and matured consumers
Our target customers are for those who are busy and dont have time to use soap
while bathing. This product is suitable for all type of people. The young consumers
are between ages 20-45 while the mature consumers are among 46-75 years old.

HALAL Organic Soap

B. Psychographic Target
i. A

female

buyer

may have different

opinions

from

male buyer on our

product. A female
buyer

may

look

into the ingredients

of

the

such

products
as

no

artificial
ingredients, 100%
natural

and

no

animal testing. On
the other hands,
male buyer may
not concern about
the ingredients as
far as it can have a
nice scent. As long
as

it

gently

cleanses

buyer

skin,

leaving

silky clean,

it
soft,

and beautiful. The

attitude would help
us to identify the
most reliable and
appropriate people
to buy our product.
ii. Social class and
lifestyle may also
take effect on the
way
behave.

people
Working

people who surely

dont have much

time

to

have

bath with normal

soap will buy Halal
Organic

Soap.

Furthermore

the

healthy

skin

awareness

may

relate our product |

to

good

skin

healthy lifestyle.
C. Geographic target
i. For local market
we are targeting
people who live in
urban

and

sub

urban areas, most

spcific to working
people who may
think that time is
always

running

out, therefore, they

must

have

something

clean,

healthy and

fast

for shower.
ii. People

in

rural

area may be lack

of awareness on
certain

product

marketed

in

modern

and

tremendous
lifestyle.
D. Size of target market
Our
estimates

company
the

numbers

of

consumers nationwide
who

compromise

target market are:

i. Young-aged and
matured customer
- 25%
ii. Single & working
people 25%
iii. Medium and low
income workers
50%
(From the total
workers in Malaysia
8,569,200 people)
Industry Analysis
The

Industrial

and

Institutional soap industry,

of which we are a part, is
quite

fragmented,

contains

several

but
well

known main competitors:

Kimberley Clark, Dettol as
well as generic brands that
provide to distributors like
Tesco
industry
growing;

and

Giant.

The

is

stable

and

HALAL Organic Soap

between 1998 and 2003 it

grew by an average of 4%
annually. Within the I&I
sector

there

competition

is

fierce

for

market

share among the existing

popular

soap

offerings,

leading to lean profits on

soap sales.
Distribution Patterns
Distribution in the soap
industry

is

provided

by

regional providers. These

distribution
usually

companies

serve

large

portion of the market based

on the respective size of
the market, delivering to
the organizations monthly
or bi-monthly depending on
demand

and

usage

patterns.

Food

services

typically receive deliveries

of cleaning products once a
month.

Hospitals typically have a

distribution
operates

system
on

that

monthly

deliveries

of

large

quantities.

Restaurants

typically have a weekly

delivery schedule.
Competition and Buying
Patterns
Commercial

customers

select soap based on the

necessary

minimum

safety regulations for the

intended user; restaurant
and hospital regulations
require

anti-

bacterial/microbial.
Customers will typically
select a product based on
price,

distributor

availability,

and

convenience. Distributors
will deliver a complete
order

of

cleaning

and

maintenance products to
customers.

Major

competitors
variety

sell

of

to

customers,

including distributors like

Tesco,

who

receive

generic soap from bulk

producers,

then

repackage and deliver it

along with other products
it sells, utilizing the same
distribution systems.
Target Market Segment
Strategy
Our initial day care to all
end-user consisting of
children, adults and
citizen people.
Organizations of this type
such as hospitals and
health

instituional

are

because

they

attractive
are

well

managed,

successful,

health

conscious and nationwide.

Within these organizations
we will target decision

level managers with the

power to implement use of
our

product

in

those

locations.
Body and Hand washing
in all end users is an ideal
initial target market for
several

additional

reasons:

Child

care

facilities

have rampant illness

and

germ

problems

that can be directly

reduced

through

frequent

child

and

worker hand washing.

Child

care

have

facilities
strict,

government mandated
rules

that

frequent
washing.

require
hand

HALAL Organic Soap

Parents are particularly interested in reducing child illness, making them one of our
strongest advocates for the use of organic soap in environments they cannot directly
monitor.
Marketing Strategy
For our initial target market of day care facilities, the company will implement two parallel
marketing efforts, aimed respectively at day care facility decision makers, and the parents
of young children who use these facilities. We will create a push factor by effectively
convincing the decision-level managers within the organizations that our product provides
an ideal solution to the hand washing compliance. A first to mind branding campaign will
build organic soap as the leader in increasing body and hand washing compliance.
Positioning Statement
Organic soap is valuable to day care managers who need effective control solutions to ensure
frequent child and child-care worker hand washing to keep the environment clean and to
minimize preventable illness. No other product on the market serves the hand washing
compliance aspect of workplace safety with such an affordable, direct and complete solution.
Unlike traditional soaps, our product provides conclusive evidence every time an employee
washes his or her hands for only a marginally higher cost than traditional soaps, and
significantly less than gloves or other hand washing compliance systems.

Promotion Strategy
One of the most important aspects of a successful launch is positive publicity for our
product. We will develop an awareness campaign to promote our product through several
avenues. Our management team will fiercely pursue positive public perception through
government endorsements promoting the benefits of our products. We will also attempt to
capitalize on the novelty of the solutions provided by our product by actively seeking local
news and media coverage to help spread awareness. Buzz will be developed in social
hubs by distributing samples to parties with potential interest. Parental support of the
product will be garnered through free trials, demonstrations, and direct mailings to the day
care parent roster lists, parent groups and PTAs.
At washing stations in client facilities we will spread awareness with stickers targeted towards
children, showing them the process of washing to turn their hands different colors and
emphasizing how fun it can be. Pamphlets will be sent to the family homes through the day
care roster mailing lists, to calm fears regarding a new product in their childs environment,
explain the benefits and encourage the parents to respond and build feedback

HALAL Organic Soap

for the benefits of the product to further increase implementation.
Some of the government programs of interest are the various compliance and workplace
hygiene programs supported and funded by the Center for Disease Control (CDC), the
Food and Drug Administration (FDA) and the National Center for Disease Control (NDIC).
Programs such as the Health Protection Research Initiative implemented by the CDC
demonstrate an invested interest by government programs in increasing the overall health
of Americans.
Distribution Strategy
Our initial distribution strategy will involve a combination of distributor and direct sales.
Relationships with local Northwest distributors will be established to increase promotional
reach and potential users. The first orders will be available immediately through direct
delivery by our executive team. Outsourcing distribution entirely in the future will allow
SAFEassure, LLC to focus its efforts on marketing and expanding as quickly as possible.
Distributors will pay for the inventory up-front, and although this cuts our profit margins it helps
SAFEassure, LLC to maintain a more flexible structure. By the start of 2007, distribution
will be entirely outsourced to distribution companies, and direct deliveries from the
executive team will cease.
Marketing Programs
Our most important marketing program is our branding program, aimed initially at regional
chain and franchise managers. This program is intended to penetrate the target markets,
and establish SAFEassures products as the soap of choice. Achievement should be
measured against our projected 45% monthly sales growth rate for the first year.
Emphasizing the risks associated with hand washing non-compliance, our marketing program
will employ the fear of disease, costs of illness and government regulations extensively.

Written materials will convey urgency, connect users to the underlying problem and suggest
SAFEassures products as the optimal solution to the problem.<
Sales Strategy
Sales strategy will initially address local and regional managers with ordering authority for
the establishments in that area. The prospective clients will be supplied with a professional
product information packet and moved into the sales funnel to begin closing prospect,
followed up with a direct mail brochure and a phone call.

10

HALAL Organic Soap

There will be no initial direct compensation or commission for closed sales. Proceeds from
sales will be invested back into developing and expanding the business. As the company
begins to increase its initial sales force, commission-based incentive programs will be
implemented.
Sales Forecast

If we are able to distribute our product through existing distributors, it will provide us a
significant financial advantage, as well as the ability to meet the quick increase in demand
for our product.

Beginning with an initial monthly sale of $1,250 for our day care soap product

(CHILD assure), we predict sales will increase by 45% per month for the first year. We
then calculate a growth rate of 90% yearly. Cost of Goods Sold is approximately 47% of
sales. However, COGS grows at a yearly rate of 88%, which is less than the sales growth
rate in order to represent the economies of scale that we hope to achieve as our
operations grows.

Sales Forecast
Year 1

Year 2

Year 3

CHILD assure soap (day care)

$237,168

$450,620

$856,177

HEALTH assure/FOOD assure

$0

$0

$0

Total Sales

$237,168

$450,620

$856,177

Direct Cost of Sales

Year 1

Year 2

Year 3

CHILD assure soap (day care)

$94,867

$178,351

$321,031

HEALTH assure/FOODassure

$0

$0

$0

Subtotal Direct Cost of Sales

$94,867

$178,351

$321,031

Sales

Strategic Alliances
SAFE assure, LLC will initially encourage critical strategic alliances in two distinct areas:

11

HALAL Organic Soap

Distributors
The relationship between Zurain (M) Sdn Bhd and the product distributors will be essential.
A flexible distribution system will be critical to the success and growth of our product. Good
distribution will allow our product to satisfy and flexibly expand to accommodate demand.
The Government
By teaming up with government organizations, Zurain (M) Sdn Bhd will be able to utilize
existing body and hand washing compliance programs to reach a much larger potential
audience than could be directly contacted. Government endorsement of our product and
the mention of its benefits in government brochures and written materials could be a major
competitive advantage and sales opportunity for Zurain (M) Sdn Bhd
Financial Plan
Based on market research, we expect the business to begin growing at 45% per month for
the first 12 months, then at a yearly rate of 90% for the next two years. Due to our low
initial investment costs, we can maintain the operations of the business with the cash
buffer we will have from start up. In addition, we will almost immediately have a positive
cash flow, allowing us the flexibility to cover any unforeseen expenses.
Important Assumptions
Sales

We have assumed no payroll expense for the startup period.

100% of sales will be made on credit, the industry standard. Although we do plan to sell some
of our product (mostly for product promotion purposes) to the government agencies who
usually demand substantially longer payment terms, our major target group will remain
commercial entities. As such, we assume, on average, a 45-day collection schedule.

Customers will pay for all relevant shipping charges.

To be flexible in meeting the customer demand, we plan to maintain a minimal stock of

product at a rented warehouse and dispatch it from there. The rest of the product we
expect to be shipped from the outsourced producers site.

Once we make the decision to address additional market segments, we will begin
increasing our marketing and sales expenses to represent the expected increase in
costs associated with developing packaging, advertisements, additional promotions,
and creating awareness of our products in the differing markets.

12

HALAL Organic Soap

Projected Cash Flow
Overall, our business is expected to generate suffi cient cash flows. Our cash balance will,
among other things, depend on the level of inventory well decided to keep at a rented
warehouse. At the moment, our projections in this respect are preliminary and we expect
to fi ne-tune them as the demand for our products grows.
We expect to secure a RM50,000 line of credit in year 3 to finance our receivables, listed as
New Current Borrowing in the table below.
In year 5 of operations, we will begin looking at our ability to begin paying back our initial
investors the RM250,000. Although the terms of the additionally sought investment are yet
to be agreed upon, we belief that our investors will provide us with a buffer of some years
before expecting a return on their investment, allowing us the capital and time to expand
and grow at an appropriate or desired rate. Nevertheless, for planning purposes, we have
made provisions to start paying out a modest dividend from the third year of our
operations. Currently, we set dividend payments to be equal to 5% of net profi ts.

13

HALAL Organic S
Pro Forma Cash Flow
Year 1

Year 2

Year 3

Cash Sales

RM0

RM0

RM0

Cash from Receivables

RM138,736

RM362,031

RM687,858

Subtotal Cash from Operations

RM138,736

RM362,031

RM687,858

Cash Received
Cash from Operations

Additional Cash Received

Sales Tax, VAT, HST/GST Received
New Current Borrowing

RM50,000

New Other Liabilities (interest-free)

New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received

RM138,736

RM362,031

RM737,858

Expenditures

Year 1

Year 2

Year 3

Cash Spending

RM57,600

RM144,000

RM216,000

Bill Payments

RM128,381

RM215,710

RM438,395

Subtotal Spent on Operations

RM185,981

RM359,710

RM654,395

Expenditures from Operations

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends

14

Subtotal Cash Spent

RM185,981

RM359,710

RM654,395

Net Cash Flow

(RM47,245)

RM2,320

RM83,463

Cash Balance

RM29,455

RM31,775

RM115,239

HALAL Organic Soap

Projected Profit and Loss
Our profit and loss projections reflect our expectation that monthly fixed costs will remain
constant over the course of the first year.
Cost of goods sold increases at a decreasing rate, as economies of scale make soap
production cheaper per unit as production volume increases. Based on these projections
the company will become profitable in October, 2005.
Advertising expenses will remain steady during our first year of operations. However,
Advertising and Promotion will grow in years 2007 and 2008 to reflect the purchase of print
ads, PR brochures, and additional promotional content.
Pro Forma Profit and Loss (MYR)
Year 1

Year 2

Year 3

Sales 237,168

450,620

856,177

Direct Cost of Sales

94,867

178,351

Other 0

Total Cost of Sales

94,867

178,351

321,031

Gross Margin

142,301

272,269

535,146

Gross Margin %

60.00%

60.42%

62.50%

Payroll 57,600

144,000

216,000

Payroll Taxes

Depreciation

Rent

8,400

8,400

8,400

Utilities 1,200

1,200

1,500

Insurance

6,000

6,000

6,000

Telecommunications

1,200

2,500

3,500

Travel 1,800

2,500

4,000

Warehousing

3,600

4,000

4,500

Other General and

1,200

1,200

1,200

Total Operating Expenses

81,000

169,800

245,100

Profit Before Interest and Taxes

61,301

102,469

290,046

321,031

Expenses

Administrative Expenses

15

HALAL Organic S
EBITDA

61,301

102,469

290,046

Interest Expense

2,500

Taxes Incurred

18,390

30,741

86,264

Net Profit

42,911

71,728

201,282

Net Profit/Sales

18.09%

15.92%

23.51%

Projected Balance Sheet

Once we have established a relationship with the manufacturer, we will
purchase inventory in minimum quantities of approximately 15,000
gallons for approximately MYR20,000 per shipment (following the initial
start-up inventory purchase, at MYR50,000). As sales increase we expect
that inventory turnover rate to increase.
Our only significant Accounts Payable will be Inventory, which are a direct
reflection of the level of inventory on hand. We will be paying off our
Accounts Payable in accordance with sale of inventory. Therefore, as we
begin to sell more soap, we will be increasingly capable of meeting our
obligations in a timelier manner, ensuring that we have enough cash on
hand to cover our short term liabilities.

16

HALAL Organic S
Pro Forma Balance Sheet (MYR)
Year 1

Year 2

Year 3

Cash 29,455

31,775

115,239

Accounts Receivable

98,432

187,021

355,340

Inventory

119,146

34,927

60,193

247,032

253,723

530,772

Total Assets

247,032

253,723

530,772

Liabilities and Capital

Year 1

Year 2

Year 3

Accounts Payable

77,422

12,384

38,150

Current Borrowing

50,000

Other Current Liabilities

Subtotal Current Liabilities

77,422

12,384

88,150

Total Liabilities

77,422

12,384

88,150

Paid-in Capital

250,000

250,000

250,000

Retained Earnings

(123,300)

(80,389)

(8,661)

Earnings

42,911

71,728

201,282

Total Capital

169,611

241,339

442,621

Total Liabilities and Capital

247,032

253,723

530,772

Net Worth

169,611

241,339

442,621

Assets
Current Assets

Other Current Assets

Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets

Current Liabilities

Long-term Liabilities

17

HALAL Organic Soap

CONCLUSION
Halal Organic Soap is
going to be one of the
competitor product that is
entering the market. The
broad

sum

of

diverse

activities performed in the

interest of delivering a
particular
market.
hold

product
The

by

to

disciplines

the

product

management,

as

occupational domains are

product

planning

and

product marketing. This is

because

the

products

functionality is created for

the

user

via

planning

product

efforts,

and

product value is presented

to the buyer via product
marketing activities.
Marketing is the business
function

that

customer

identifies

needs

and

wants, determines which

target

markets

organization
best,

can

and

appropriate

the
serve
designs

products,

services, and programs to

serve these markets. It
guides

the

entire

organization. The goal of

marketing

is

to

create

customer satisfaction by
building

value-based

relationships

with

customers, in conjunction
with other internal and
external business units.
The end-result is gaining
market

leadership

understanding
needs

by

consumer

and

finding

of

superior

solutions

value, quality, and service.

It is important to reach the
customer at the right time
in the right media. It is
also important that when
we applying the Marketing
Communication

program

to introduce the product,

we have to be particular
about the sensitive isssue
to the Malaysian. It is
important that we knew
the product before we can
market it, so that we are
approaching
consumer.

the

right

18