Sales and Distribution - Khushi
Sales and Distribution - Khushi
Sales and Distribution - Khushi
SECTOR: FMCG
Team Members
Sr. No. Name of Student Roll No.
3. Khushi 3241
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TABLE OF CONTENT
3. Selling Process
4. Selling Theories
5. Sales Strategy
7. Estimated Price
8. Estimated Revenue
9. Sales Promotion
12. Challenges
13. Conclusion
14. Summary
15. Bibliography
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INTRODUCTION OF THE INDUSTRY AND THE PRODUCT
Radiant Heritage Serum is your ultimate skincare elixir, blending ancient Indian beauty secrets with
the highest quality organic ingredients sourced from the richest regions of India. This all-in-one serum,
crafted from luxurious saffron of Kashmir, turmeric from Tamil Nadu, and rosehip oil from Chile,
delivers comprehensive care with unparalleled efficacy. Packed with vital vitamins and nature’s finest
extracts, including aloe vera, licorice root, and green tea, it brightens, tightens, hydrates, and rejuvenates
your skin in one transformative step.
Experience the power of nature’s best and let Radiant Heritage Serum be the only serum your skin needs
for a luminous, youthful glow.
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Industry:Skincare
Company: KAMA AYURVEDA
● Ancient Wisdom: Harnessing the power of traditional Ayurvedic ingredients like saffron,
turmeric, and neem, Radiant Heritage Serum revitalizes your skin with age-old beauty secrets.
● Premium Quality: Each drop of our serum is meticulously formulated with the highest quality
organic ingredients sourced from the best regions of India. Every batch is handcrafted in small
quantities to ensure unparalleled purity and potency.
● All-in-One Solution: Say goodbye to cluttered skincare routines. Our serum brightens, tightens,
hydrates, and rejuvenates your skin, providing comprehensive care in a single bottle.
● Visible Results: Experience noticeable improvements within 2 weeks. With regular use, enjoy a
radiant glow, even skin tone, and reduced fine lines and wrinkles.
Benefits
● Brightens and Evens Skin Tone: Saffron and licorice root extract work synergistically to lighten
dark spots and provide a radiant glow.
● Anti-Aging: Rosehip oil, rich in vitamins A and C, and vitamin E oil boost collagen production,
reducing the appearance of fine lines and wrinkles.
● Hydration and Moisture: Aloe vera gel and sweet almond oil deliver deep hydration, leaving
your skin soft, supple, and plump.
● Anti-Inflammatory and Healing: Turmeric extract and neem oil soothe inflammation, calm
irritated skin, and promote healing.
● Antioxidant Protection: Green tea extract and rosemary extract shield your skin from
environmental stressors, preventing damage and maintaining youthful vitality.
How to Use : Apply 2-3 drops of Radiant Heritage Serum to cleansed and toned skin every night.
Gently massage in upward circular motions until fully absorbed. For best results, use consistently and
pair with sunscreen during the day.
Active Ingredients
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1. Saffron (Kesar) Infusion: 0.5 ml
2. Turmeric (Haldi) Extract: 0.2 ml
3. Aloe Vera Gel: 3 ml
4. Rosehip Oil: 4 ml
5. Sweet Almond Oil: 3 ml
6. Vitamin E Oil: 0.3 ml
7. Neem Oil: 0.2 ml
8. Licorice Root Extract: 0.3 ml
9. Sandalwood Essential Oil: 0.1 ml
10. Green Tea Extract: 0.2 ml
11. Distilled Water: 3 ml
Natural Preservatives
Natural Emulsifiers
1. Lecithin: 0.2 ml
2. Beeswax: 0.3 ml (melted and blended with oils)
Antioxidants
● Saffron and Turmeric: This dynamic duo offers a potent brightening effect, helping to reduce
hyperpigmentation and uneven skin tone. Their combined anti-inflammatory properties soothe
irritation and redness.
● Aloe Vera and Neem Oil: Known for their hydrating and cooling properties, aloe vera
replenishes moisture, while neem oil exhibits strong antibacterial and anti-fungal actions, helping
to combat acne-prone skin.
● Rosehip and Sweet Almond Oil: A nourishing combination that promotes skin regeneration and
repair, reducing the appearance of scars and fine lines. The emollient properties of sweet almond
oil lock in moisture, leaving skin supple and hydrated.
● Licorice and Sandalwood: This pair works harmoniously to lighten dark spots and even skin
tone. Licorice inhibits melanin production, while sandalwood calms inflammation and imparts a
soothing effect.
● Green Tea and Vitamin E: A powerful antioxidant alliance that shields the skin from
environmental damage, premature aging, and free radical harm. Vitamin E enhances skin repair
and regeneration, promoting a healthy complexion.
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Detailed Preparation Process for Radiant Heritage Serum (15ml)
1. Saffron Infusion
○ Ingredients: A few strands of saffron, 1 ml distilled water.
○ Method: Saffron strands are placed in a small sterilized glass container. 1 ml distilled
water is added and it is covered and soaked overnight (8-12 hours).
2. Melting Beeswax
○ Ingredients: 0.3 ml beeswax.
○ Method:A double boiler is used to melt the beeswax. The bottom pot is filled with water
and the beeswax is placed in the top pot. Then it is heated gently until the beeswax is
fully melted. A digital scale is used to ensure that we have exactly 0.3 ml.
3. Mixing Base Oils
○ Ingredients: 4 ml rosehip oil, 3 ml sweet almond oil, 0.2 ml neem oil, melted beeswax.
○ Method: In a sterilized glass container, we combine 4 ml rosehip oil, 3 ml sweet almond
oil, and 0.2 ml neem oil. Slowly we add the melted beeswax while stirring continuously
with a glass stirring rod.
4. Adding Extracts and Preservatives
○ Ingredients: 3 ml aloe vera gel, 0.2 ml turmeric extract, 0.3 ml licorice root extract, 0.2
ml green tea extract, 0.2 ml rosemary extract, 0.2 ml grapefruit seed extract.
○ Method:Then we add each extract and preservative one by one to the oil mixture, stirring
continuously to ensure even distribution.Then we use measuring pipettes for accurate
liquid measurement.
5. Blending
○ Ingredients: 3 ml saffron infusion (prepared earlier), 3 ml distilled water.
○ Method:Then we slowly add the saffron infusion to the mixture while continuously
stirring it.And add the remaining distilled water gradually.Then we use a high-shear
mixer to blend the mixture for 2-3 minutes, ensuring a smooth and homogeneous
consistency.
6. Adding Essential Oils and Antioxidants
○ Ingredients: 0.1 ml sandalwood essential oil, 0.3 ml vitamin E oil.
○ Method: Then we add 0.1 ml sandalwood essential oil and 0.3 ml vitamin E oil to the
blended mixture.And stir it thoroughly with a glass stirring rod for 1-2 minutes to ensure
even distribution.
7. Final Blend and Transfer
○ Method: Lastly, we perform a final blend with the high-shear mixer for an additional 1-2
minutes to ensure all ingredients are fully incorporated.Carefully pouring the serum into
sterilized amber glass dropper bottles using a funnel to avoid spills.Then we seal the
bottles tightly and label them with the production date and the expiry date as well.
● Potential Allergic Reactions: Natural ingredients may cause sensitivities or allergies in some
individuals. Patch testing is advised.
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● Short Shelf Life: Natural preservatives extend the shelf life, but the product is best used within 6
months.
● Oil-Water Separation: May occur over time; requires shaking before use to maintain consistency.
● Staining: Ingredients like turmeric may cause temporary staining of skin or fabrics.
● Microbial Growth: Risk due to natural water content; proper storage in a cool, dark place is
necessary.
● High Cost: Premium ingredients and natural formulation result in a higher production cost.
● Limited Efficacy: Results may vary based on individual skin types and conditions.
Distribution Strategy
1. Direct-to-Consumer (DTC): Focus on building a strong online presence through your website
and social media, offering exclusive deals and personalized content to engage consumers.
2. Online and Offline Retail Partnerships: Develop strategic alliances with high-end retail stores,
boutiques and e-commerce marketplaces to increase product visibility and accessibility.
3. Omni-Channel Approach: Integrate online and offline marketing efforts to create a seamless
consumer experience, encouraging trial, purchase, and brand loyalty.
Distribution Channels:
Distribution Platforms
1. Online Marketplaces:
○ Amazon India
○ Flipkart
○ Nykaa
○ Myntra
○ Pilgrim’s Website
2. Offline Physical Retail Stores in India:
○ Sephora India
○ Health & Glow
○ Fabindia
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○ Spencer's Retail
○ Nykaa Luxe Stores
○ Tata CLiQ Luxury Stores
3. Specialized Beauty and Wellness Platforms (online & offline):
○ Purplle
○ Tira
○ Foxy
○ Organic Harvest - Beauty Shop
○ Maccaron
○ Smytten
○ SS Beauty
4. Global Platforms (for international expansion):
○ Etsy
○ iHerb
○ Sephora
○ YesStyle
○ Cult Beauty
○ Amazon Global Selling
○ Feel Good Store
SELLING PROCESS
1. Prospecting: Identify potential customers who are likely to benefit from and be interested in Radiant
Heritage Serum.
Radiant Heritage Serum's target market is women between the ages of 25 and 45, especially those who
work in professions and are interested in skincare and who live in big cities like Bangalore, Delhi,
Mumbai, and other Indian metropolises. This market is distinguished by a strong interest in anti-aging
goods and a predilection for natural and organic skincare products. Additionally, these people use social
media rather frequently. Data analysis from skincare forums and e-commerce platforms will be used to
identify individuals who have a significant interest in natural and anti-aging products in order to
effectively target this demographic. In order to make sure the company reaches its most relevant and
interested audience, social media insights from platforms like Facebook Audience Insights and
Instagram Analytics can also help identify and engage consumers who follow skincare and beauty
influencers.
2. Pre-Approach: Gather information about potential customers and prepare for the initial contact.
Preparing extensively for the first contact and obtaining pertinent data on possible clients are the main
tasks of the pre-approach stage. To start, surveys and polls on social media sites like Facebook and
Instagram are used to gather information on the target market's preferences and demands for skincare.
Personalized marketing materials, including sample packs, informational brochures, and targeted
advertisements, are created based on this analysis. These pieces highlight the serum's unique selling
qualities, such as its premium components and foundation in ancient Indian beauty secrets. To increase
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credibility and reach among the target demographic, strategic relationships are also formed with
prominent figures in the beauty and skincare industry, such as Shreya Jain and Komal Pandey.
3. Approach: Make the initial contact with potential customers to create a positive first impression.
Making a good first impression by establishing a strong connection with potential clients is the main
goal of the approach stage. This is individualized outreach by means of customized emails or messages
sent through Mailchimp, highlighting the ways in which Radiant Heritage Serum can meet particular
skincare requirements. Social media sites such as Facebook and Instagram are used to interact with
prospective buyers via live Q&A sessions, product demos, and interactive content. Furthermore, pop-up
stores at malls and beauty expos, as well as live events like skincare and wellness fairs, are used to
directly present the product to customers and increase brand awareness.
4. Presentation: Present Radiant Heritage Serum in a way that highlights its benefits and convinces
potential customers of its value.
The Radiant Heritage Serum presentation uses a number of powerful strategies to draw in prospective
clients. Live and recorded demonstrations on YouTube and Instagram Live highlight the serum's
administration and immediate benefits, offering a visual and participatory experience. Storytelling is
important; the serum's origin story, which highlights the utilization of premium ingredients and age-old
Indian beauty secrets, is presented on the company's website and social media channels. Additionally,
the efficacy and quality of the product are reinforced by the use of user testimonies and reviews on
websites like Nykaa, Amazon, and Instagram to establish credibility.
5. Trial Close: Gauge the potential customer’s interest and readiness to make a purchase.
One strategy is to pose trial-ending queries such as "Does this product meet your skincare needs?" along
with "Can you see yourself using this serum daily?" then paying close attention to the customer's input
to fix any unresolved issues or complaints.
6. Determine Objections: Identify any concerns or hesitations the potential customer may have about
purchasing the product.
In order to identify any underlying issues, the technique uses open-ended inquiries such as "What would
prevent you from purchasing this product today?" in conjunction with active listening to encourage
clients to voice their concerns.
7. Meet Objections: Address and resolve any objections the potential customer may have.
The tactics include dispelling misconceptions, addressing objections with evidence-based arguments like
scientific facts and testimonies, and allaying worries with offers of discounts, free samples, or
money-back guarantees.
8. Trial Close: Reassess the potential customer’s interest after addressing their objections.
The approach focuses on reaffirming the key benefits of Radiant Heritage Serum and then prompting the
customer with a trial closing question to assess their readiness to make a purchase.
Attention
We will spotlight the unique selling points: highlighting the seamless fusion of ancient wisdom and
modern science, the use of premium organic ingredients, and the comprehensive benefits. Visually
stunning packaging and marketing materials will be crafted to emphasize the product's luxurious nature.
We will tell captivating stories about the origins of the ingredients and the meticulous creation process
behind the serum.
Interest
We will delve into the product's benefits, detailing how each ingredient addresses common skin
concerns. Authentic reviews from satisfied customers will be showcased to build credibility and trust.
Engaging product demonstrations will be conducted to highlight the serum's luxurious texture, quick
absorption, and immediate visible effects. Additionally, educational content will be provided, exploring
the science behind the ingredients and their synergistic benefits. Example: "Experience the
transformative power of saffron, turmeric, and rosehip oil. Our serum penetrates deep into your skin,
delivering intense hydration, reducing fine lines, and illuminating your complexion."
Desire
To create a sense of urgency, we will offer limited-time discounts, exclusive gifts, and loyalty programs.
We will suggest complementary products or skincare routines to enhance the serum's benefits. A
satisfaction guarantee, such as a money-back offer or free samples, will be provided to build trust and
confidence Example: "Indulge in the ultimate skincare luxury. Order Radiant Heritage Serum today and
receive a complimentary facial massage guide. Your skin deserves the best!"
Action
We will encourage customers to purchase the product through strong, direct language. Multiple purchase
options (online, retail, phone) and clear instructions will be provided for making the purchase process as
seamless as possible. Limited-time discounts for checking out within an hour or prepaid discounts will
also be offered.
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Satisfaction
After the purchase, we will focus on ensuring customer satisfaction by following up with personalized
messages, offering guidance on product usage, and inviting customers to share their feedback. We will
also provide ongoing customer support to address any concerns or questions, solidifying the customer’s
trust and encouraging repeat purchases Example: "Thank you for choosing Radiant Heritage Serum!
We’re here to ensure you have the best experience. If you have any questions or need tips on getting the
most out of your serum, don’t hesitate to reach out. Your satisfaction is our priority."
The buying formula theory suggests that a customer moves through three primary stages:
● Common Skin Concerns: Many consumers experience issues like dryness, dullness, fine lines,
and uneven skin tone. These are potential needs or problems that our serum can address.
● Highlighting the Problem: Our marketing and sales efforts should focus on identifying and
emphasizing these common skin concerns.
2. Solution Seeking
● Connecting the Serum to Solutions: Clearly communicate how Radiant Heritage Serum
addresses the identified skin concerns. Emphasize the unique blend of ingredients and their
benefits.
● Education: Provide detailed information about skin types and conditions to help customers
understand their specific needs.
3. Purchase Decision
● Building Trust and Credibility: Use testimonials, reviews, and expert endorsements to build
confidence in the product.
● Easy Purchase Process: Offer convenient purchasing options, clear product information, and
excellent customer service.
● Creating a Positive Experience: Ensure the product delivers on its promises, leading to customer
satisfaction and repeat purchases.
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● We're committed to understanding our customers' needs at every stage of their skincare journey.
By applying the buying formula theory, we'll effectively showcase Radiant Heritage Serum as
the solution to their skin concerns.
● For those unaware of the importance of a skincare routine, we'll educate them about the signs of
aging and potential damage from neglecting proper care. This will raise awareness of the
problems our serum addresses.
● For those already experiencing skin concerns, we'll clearly demonstrate how our product directly
targets their specific needs. Compelling visuals, testimonials, and expert advice will highlight the
serum's effectiveness in tackling common issues.
● To stay top-of-mind, we'll implement a robust marketing strategy. Targeted advertising, engaging
social media campaigns, and strategic in-store promotions will build brand recognition and
recall.
● Finally, for customers ready to purchase, we'll prioritize exceptional service, convenient buying
options, and a focus on customer satisfaction. This seamless experience will foster loyalty and
encourage repeat business.
● By understanding and addressing each stage of the buying journey, we can position Radiant
Heritage Serum as the go-to choice for healthy, radiant skin.
Sales Strategy
1. Utilizing Online Platforms and Influencer Partnerships: We suggest using both online and offline
platforms to promote Radiant Heritage Serum in order to increase reach and engagement. Potential
buyers will be able to try the product out for themselves by providing free trial packs through websites
like Nykaa, Amazon, and Purplle, as well as through in-store distribution at upscale beauty stores and
pop-up events. Influencers in India who specialize in PR packages, such as Shreya Jain and Komal
Pandey, can offer genuine recommendations. Partnerships with Niomi Smart, Jenn Im, and Huda Kattan
can greatly increase the serum's global reach. Luxurious, environmentally friendly PR packages that
highlight the superior quality of the product should be used to support these partnerships in order to
make a lasting impact and connect with their target audiences.
2. Engagement & Community Building: Radiant Heritage Serum can be positioned as a keystone of a
comprehensive skincare regimen by including it in a skincare subscription box with supplementary
items, which will increase recurring income. Customers can receive frequent shipments that are
specifically matched to their skincare goals with customized subscription plans, which improves their
overall experience. An exclusive membership program that gives VIP members first dibs on new
releases, exclusive discounts, and customized skincare guidance helps to further strengthen client
loyalty.
3. Augmented Reality (AR) Experience: Customers can interact with Radiant Heritage Serum's benefits
through the use of an augmented reality (AR) experience. Customers may see how the serum will
change their skin tone and texture over time by using the brand's virtual try-on function, which is
available on their website or through a mobile app. Additionally, based on the customer's skin type and
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problems, an interactive skincare consultation using augmented reality can offer tailored advice on how
to utilize the serum. This customized strategy raises conversion rates and improves client satisfaction.
Platforms such as Nykaa already have this feature for makeup.
4. Pop-Up Wellness Events: Organizing pop-up health events in busy cities can generate interest in
Radiant Heritage Serum. These events could include wellness programs like yoga classes that promote
the serum as a component of a holistic lifestyle, as well as skin care clinics where clients learn about the
advantages of the serum.
Product Expertise
Radiant Heritage Serum, now part of Kama Ayurveda, benefits from the brand’s reputation for
high-quality, traditional formulations. The serum’s unique blend of Kashmiri saffron, Tamil Nadu
turmeric, and other premium ingredients complements Kama Ayurveda’s philosophy of using authentic
Ayurvedic ingredients. The product’s Ecocert certification and its alignment with Kama Ayurveda’s
values will further solidify its position in the market.
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The sales process for Kama Ayurveda involves leveraging both its online and offline presence. The
integration will necessitate seamless inclusion in Kama’s existing sales channels, including its website,
physical stores, and partner retailers. Understanding consumer behavior in the context of Kama
Ayurveda’s established market will be crucial. This involves optimizing online content, integrating the
serum into Kama’s product range, and aligning marketing strategies with Kama’s brand identity.
Customer Behavior
Kama Ayurveda’s customers prioritize authenticity, efficacy, and natural ingredients. The Radiant
Heritage Serum aligns with these values, addressing multiple skin concerns with a single product.
Marketing efforts should emphasize the serum’s benefits, certifications, and its synergy with Kama
Ayurveda’s existing product lines. Customer preferences for transparency and visible results will guide
promotional strategies.
Product Performance
As part of Kama Ayurveda, the Radiant Heritage Serum will undergo initial market testing and feedback
integration. The product’s performance will be evaluated based on customer reviews, sales data, and
market reception. Regular updates and adjustments to the product strategy will be essential for
maintaining consumer interest and satisfaction.
Providing Input
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Qualitative Insights
The integration of the Radiant Heritage Serum into Kama Ayurveda is expected to enhance its market
presence and accelerate adoption. Leveraging Kama’s brand reputation and established customer base
will facilitate a strong market entry and drive consumer confidence.
Quantitative Estimates
We forecast a 25% increase in overall sales within the first quarter of integration, with potential for
sustained growth as the product gains traction. Our goal is to achieve a 7% share of the organic serum
market within the first year, translating to approximately an annual revenue of 5 crore.
Scenario Planning
● Best-Case Scenario: Achieve 35% market penetration within the first year, driven by strong
brand alignment, effective marketing, and positive consumer feedback.
● Worst-Case Scenario: Encounter slower adoption due to market saturation or economic factors,
mitigated by targeted promotions and leveraging Kama’s established distribution network.
Risk Assessment
Potential risks include competitive pressures, shifting consumer preferences, and economic fluctuations.
Opportunities for growth include expanding to new markets and introducing complementary products to
enhance the product line.
Collaboration
Close collaboration with Kama Ayurveda’s marketing, sales, and product development teams is essential
for aligning strategies and optimizing market performance. Regular reviews and adjustments will ensure
that the product remains competitive and responsive to market needs
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● Important: Consumers who are passionate about natural ingredients value transparency and
purity. Highlight the organic features of your serum to appeal to them.
● Neutral: The focus of this section is on the product's efficacy while considering natural
ingredients as an added benefit.
● Not Necessary: The purchasers prioritize outcomes and costs more than the list of ingredients.
● Brightness and even skin tone: Saffron and licorice root extract help reduce dark spots and
promote a radiant glow. We could also explore the potential of neem or tea tree oil in bringing
out their effectiveness and seeing results quickly.
● Reducing fine lines and wrinkles: Emphasize the promotion of rosehip oil and vitamin E due to
their advantages in diminishing fine lines. Rosehip oil, abundant in vitamins A and C, along with
vitamin E oil, enhances collagen production, resulting in a reduction of the visibility of fine lines
and wrinkles.
● Hydration and Moisture: Aloe vera and sweet almond oil are critical players in delivering deep
hydration.
● Reducing Acne and Inflammation: Saffron and licorice root can be emphasized for their
brightening effect.
Price Point: Offering competitive pricing is crucial for attracting budget-conscious consumers. This
involves setting prices that are not only affordable but also perceived as offering good value for money.
We must conduct thorough market research to understand the pricing strategies of competitors and
identify a price range that appeals to their target market. Efficiently managing production and
operational costs is essential to enable lower pricing without sacrificing quality. Additionally, we can
attract customers by offering temporary discounts, bundle deals, or loyalty programs. It's important to
clearly communicate the benefits and features of a product that justify its price, ensuring that customers
feel they are receiving good value. Considering different pricing models such as tiered pricing,
subscription models, or pay-as-you-go options can also cater to diverse customer needs.
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Brand Reputation: Building a strong, trustworthy brand image is essential for long-term success. A
positive brand reputation fosters customer loyalty and encourages repeat business. Consistency is
key—maintaining consistent quality and messaging across all customer touchpoints helps reinforce
brand identity. Providing excellent customer service builds trust and ensures positive experiences with
the brand, including responsive support and addressing customer concerns promptly. Transparency about
product details, pricing, and company policies further builds credibility and trust with consumers.
Engaging in socially responsible practices, such as sustainability initiatives or community involvement,
can enhance brand image and appeal to ethically conscious consumers. Finally, sharing the brand’s story
and values helps connect with customers on an emotional level and differentiate the brand from
competitors.
Product Reviews: Positive reviews can significantly influence purchase decisions by providing social
proof and building trust with potential customers. Businesses should actively encourage satisfied
customers to leave reviews through follow-up emails, incentives, or review requests on purchase
receipts. Utilizing third-party review sites and industry-specific platforms helps reach a wider audience
and enhances credibility. Encouraging customers to share their experiences and use cases through
photos, videos, or stories adds authenticity to reviews and further strengthens the impact of customer
feedback.
● Social Media: Platforms like Instagram, YouTube, and TikTok are popular for discovering
beauty products.
● Influencers and Bloggers: Partnering with influencers can enhance credibility and reach.
● Email Newsletters: Use these for detailed information and exclusive offers.
● Online Beauty Magazines: They can help establish authority and reach.
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Preferred Shelf Life:
○ Short (up to 6 months): Attractive for those preferring fresh, natural products.
○ Medium (6-12 months): Balances natural ingredients with practicality.
○ Long (1+ years): Appeals to those who occasionally stock up or use products.
ESTIMATED PRICE
The estimated price of our product is Rs 899 for a 15 ml bottle. This was set taking into consideration
all the necessary factors involved. The cost of premium ingredients, production and delivery costs,
competitive positioning, and the product's perceived worth were all taken into consideration while
setting the ₹900 pricing. We have used the markup pricing strategy which involves setting a product’s
selling price as cost of production plus a desired profit margin. By establishing this pricing, we hope to
establish a significant position in the market, guarantee a profit, and provide our clients with outstanding
value. We used a structured method to decide on the Radiant Heritage Serum's pricing plan and project
its revenue:
Cost Analysis:
● Expenses of Ingredients: We assessed the expenses associated with premium ingredients such as
green tea, licorice root, rosehip oil, Sandalwood oil , vitamin E , Sweet Almond oil, saffron, and
turmeric. This covers the cost of purchasing as well as any related formulation or processing
expenses. We aim to focus on buying this material in bulk so as to lower down the direct cost
while also considering the shelf life of these raw materials.
● Production costs : It comprises expenses for labor, packaging, manufacturing, and quality
assurance.
● Distribution costs: are those associated with packaging, shipping, and distributing goods to
stores or to clients directly. This will also include any fees associated with selling the products on
different platforms as well as the free shipping offered for some of them.
● Marketing and Overheads: Costs associated with promotion, advertising , branding, and
administrative costs. This will also include the business insurance , website maintenance
costs,renting office space, and electricity.
Competitive Benchmarking :
Market Analysis: We examined comparable items in the market, paying particular attention to their
characteristics and costs. This assisted us in emphasizing the distinctive value propositions of Radiant
Heritage Serum and positioning it in a competitive manner. Driving down the price of our product in
order to sell more units could lead to a negative effect on the perceived market value for the product. A
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mid ranged product will leave the customers confused as to if the product is a cheaper alternative or a
luxury one.
Value Perception:
● USPs: The serum's utilization of exclusive and opulent components from certain locales
significantly raises its perceived worth. This exclusivity helps to justify a high price point.
● Customer Willingness to Pay: We evaluated the level of payment readiness of the target market
for premium, all-natural skincare products.
Pricing Objectives :
● Profit Margin: In order to maintain a respectable profit margin and appeal to our target
demographic, we sought to strike a compromise between affordability and profitability. The
markup percentage set was based on desired profit margin and the market conditions. In order to
have a healthy business, it is really important to observe the numbers carefully.
● Market positioning: The cost is commensurate with our status as a high-end brand providing
luxurious and effective skincare products.
ESTIMATED REVENUE
1. Selling Price per unit: ₹900
2. Cost per Unit: ₹225
3. Profit Margin: ₹675 (Selling Price per Unit - Cost per Unit)
4. Estimated Sales Volume: Depending on marketing efforts, distribution channels, and market demand,
we can forecast sales for various scenarios:
● Conservative Estimate (Low Demand): 2,000 units per month
● Moderate Estimate (Medium Demand): 3,000 units per month
● Optimistic Estimate (High Demand): 5,000 units per month
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(Source: Created on MS Excel)
Sales fluctuations are a result of a variety of cultural events, meteorological patterns, and market trends,
all of which have a substantial impact on consumer purchase behavior. Sales are expected to rise by 5%
in January as a result of New Year's resolutions. February experiences an additional 5% increase as a
result of Valentine's Day sales. There is no anticipated change in sales in March. But April signals the
arrival of summer, which boosts sales by 10% until May, the warmest month of the year, when they soar
by 15%. June marks the end of summer, but sales are still up 10%. Sales dip by 10% as the monsoon
season begins in July and then by 5% in August, when the mid-monsoon period occurs. When the
monsoon season ends in September, there is a further 10% decline. But October sees a notable 20%
increase in sales because of the holiday season, which includes Dussehra and Diwali. With a 25%
increase, this momentum rolls over into November as the holiday season starts. December, the last
month of the year, sees a 15% increase in sales because of year-end promotions and Christmas
festivities.
By applying the above variations, the projected monthly sales and revenues are as follows:
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October 20% 1.2 3,213 28,91,700
Scenario Units Sold per Revenue (Rs) Cost (Rs) Profit (Rs)
Year
SALES PROMOTION
In today’s highly competitive skincare market, launching a new product demands more than just
innovation—it requires a strategic approach that resonates with consumers on multiple levels. Because
this product is so distinctive, we need to implement a thorough marketing plan that will draw attention to
its special features and establish it as a must for our target market's skincare regimens. Our marketing
strategy is to craft a captivating story about the Radiant Heritage Face Serum, highlighting its historical
significance in traditional beauty practices and its premium, ethically sourced ingredient formulation.
Through a combination of exclusive launch events, digital and social media campaigns, content
marketing, and strategic partnerships, we hope to establish a strong brand presence. By doing this, we
hope to position the Radiant Heritage Face Serum as a representation of elegance and unadulterated
beauty, paving the way for its smooth launch and ongoing commercial success. A complete promotional
strategy for the Radiant Heritage Face Serum is provided below which covers all the aspects of our
promotional strategy .
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1. Defining the target audience:
It will consist of women and men aged 25 to 45, urban professionals, and those who value skincare as
part of their self-care routine. Apart from this it will also focus on those who are Health-conscious,
luxury-seekers, and people looking for holistic and natural beauty products.
6. Digital Advertising:
Use targeted advertisements on Instagram, Facebook, and YouTube. Focus on reaching your target group
with visually appealing commercials that emphasize the serum's elegance and heritage. Apart from this
we can also indulge in SEO and SEM .Prepare your website and product pages for search engines.
Invest in Google Ads targeting keywords linked to premium skincare , heritage beauty items and the
radiant serum.
7. Public Relations:
Distribute press releases to leading beauty and lifestyle periodicals, both online and offline. Highlight
the Radiant Heritage Face Serum's distinguishing features, such as the utilization of high-quality raw
materials and the combination of tradition and current science.Create a full media kit including
high-resolution photographs, product specifications, and a brand story to distribute to journalists,
bloggers, and influencers.
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8. In-store promotions
This will include exclusive displays. Set up exclusive in-store displays in upscale retail venues. Provide
testers and mini-facial sessions so that customers can sample the product firsthand.Offer limited-time
bundled offers, such as the serum with additional skincare goods. Include a free consultation or skincare
guide with each purchase. We can also celebrate brand anniversary or birthday by offering special time
limited offers which will create an immediate urge amongst the customers to take advantage of that time
period. Offering some free gifts with a big purchase can also be one of the tactics to promote the
product.
9. Customer Engagement
Create a loyalty program in which customers earn points for each purchase that can be used for
discounts or exclusive merchandise. We can have Referral Program where we can offer existing clients a
discount on future purchases when they refer friends and family. Apart from this we can have some
contests and lucky draws . We will also have spin the wheel play where customers will get certain
additional benefits and this will help us gain more attention.
Recruitment Process:The recruitment process for the sales team should be strategic and focused on
identifying individuals with the right skill set and attitude. The recruitment for the sales team of Pilgrim
would include:
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recruiting new retail and distribution partners, developing strong connections with current clients, and
regularly exceeding sales targets. The position necessitates a thorough awareness of the skincare
business, a passion for beauty products, and the ability to successfully express Radiant Heritage Serum's
distinct benefits to customers and trade partners. The Sales Representative will be responsible for
conducting frequent market research, analyzing sales data, and providing important insights to the sales
management team in order to optimize sales strategies and uncover new business prospects.
6. Pre-Onboarding:
Send a welcome package. Provide key facts about the company, including its history, values, and
product range.Introduce vital contacts. Share the contact information for relevant departments and team
members.Assign a mentor. Pair new personnel with seasoned sales people for instruction and support.
Orientation: Provide a thorough summary of Kama Ayurveda's history, mission, vision, and core beliefs.
7.Product training:
● Receive in-depth product knowledge training, covering Radiant Heritage Serum ingredients,
benefits, and usage directions for the full product range.
● Ayurvedic Philosophy: Educate new hires about the concepts of Ayurveda and their application
to Kama Ayurveda goods.
● Sales Process and Tools: Introduce your company's sales process, CRM system, and other sales
tools.
● Company policies and procedures: Familiarize new employees with HR policies, attendance
guidelines, and corporate culture.
8.Field Training:
● Shadowing experienced sales representatives: Watch experienced salespeople in the field to
understand optimal methods.
● Assign sales territories based on experience, performance, and geographic location.
● Customer visits: Join experienced sales staff on customer visits to acquire direct experience.
● Sales pitch practice: Allow new hires to practice their sales pitches and receive feedback.
9.Ongoing Development:
● Sales training: Provide continuing sales training on new product introductions, sales strategies,
and industry trends.
● Conduct performance reviews on a regular basis to provide feedback and find opportunities for
improvement.
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● Career development: Provide possibilities for professional development and promotion within
the firm.
● By investing in a complete onboarding program, Kama Ayurveda can ensure that new sales
personnel are well-prepared to contribute to the Radiant Heritage Serum and the overall success
of the company.
1. Product Mastery:
We will Equip the team with a thorough understanding of key ingredients (saffron, turmeric, rosehip
oil), their benefits, and how they address common skin concerns (hydration, fine lines, brightening).By
sharing the captivating story behind our product, from ingredient sourcing to the meticulous creation
process, we'll ignite their passion for the brand. Our team will become experts in highlighting the unique
blend of ancient wisdom and modern science that sets Radiant Heritage Serum apart..
2. Sales Techniques:
We will equip our sales team with the tools to excel in customer interactions. By mastering the AIDAS
and buying formula framework they'll learn to capture attention, pique interest, build desire, drive
action, and ensure customer satisfaction. A consultative selling approach will empower them to
understand individual needs and tailor their pitch accordingly. We'll also prepare them to confidently
address any concerns through comprehensive objection handling training
3. Customer-Centric Engagement:
Our customers are at the heart of our business. We'll train our team to personalize their approach,
considering each customer's unique skin type and concerns. Building strong relationships through
follow-up and loyalty programs is essential, and we'll emphasize the importance of providing
exceptional customer service. By effectively leveraging authentic customer testimonials and reviews,
our team will build trust and credibility.
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6.Comprehensive Training and Development of Personnel:
Our training programs will be designed to equip our sales team with the knowledge and skills needed to
succeed. We'll cover product expertise, sales techniques, customer relationship management, market
analysis, sales process mastery, and essential soft skills. By combining classroom training, online
learning, mentorship, and on-the-job coaching, we'll cater to different learning styles. Regular
assessments and performance evaluations will measure training effectiveness, and we'll provide ongoing
development opportunities to keep our team at the forefront of the industry.
CHALLENGES
Selling a skincare product, especially in a competitive market like Radiant Heritage Serum, will
undoubtedly present challenges. Here are some potential challenges that we may face:
Market-Related Challenges:
● Intense Competition: The skincare market is saturated with various brands offering similar
benefits. Standing out and differentiating the product will be crucial.
● Consumer Skepticism: Many consumers are wary of skincare claims. Building trust and
credibility will be essential.
● Economic Factors: Economic downturns can impact consumer spending on luxury items like
skincare products.
● Ingredient Sensitivity: Some consumers may have allergies or sensitivities to certain ingredients,
limiting the target market.
Product-Related Challenges:
● Product Efficacy: Demonstrating the product's effectiveness can be challenging, especially
without immediate visible results.
● Pricing: Finding the right price point that balances profitability and customer affordability can be
difficult.
● Product Positioning: Clearly defining the target audience and positioning the product accordingly
can be complex.
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CONCLUSION
The introduction of the Radiant Heritage Face Serum has been a pivotal endeavor for our company,
demonstrating our company’s commitment to quality, innovation, and market responsiveness. By
carefully analysing and addressing every area of the product launch—from market research and pricing
strategies to sales forecasting and promotional campaigns—we were able to successfully position the
serum as a skincare product that meets customer expectations and would be their one step solution for a
radiant glow. In order to determine the demand for a high-end skincare product that combines
conventional beauty knowledge with cutting-edge science, we started by performing extensive market
research. Our product development was guided by this research, and the result is a serum that uses the
best raw components, carefully selected for their ethical and high-quality manufacture. After the product
was produced, we concentrated on developing a suitable price plan that ensured competitive positioning
in the market and reflected the premium quality of the serum. Because our sales projections were based
on sophisticated predictive models, we were able to precisely predict demand, which led to the best
possible production levels and effective inventory control.
The difficulties we encountered, particularly in procuring premium raw materials and differentiating our
product in a saturated market, were solved with strategic solutions that improved our product offering.
Our extensive sales training and data-driven research assured that our team was fully prepared to
increase product uptake and maintain market momentum.In addition to producing a successful product
launch, this project gave us insightful knowledge and experience that will be useful in our future
undertakings. The knowledge and information we gathered during this project to create and formulate
the new product is truly incredible which will empower us in our future.
SUMMARY
The project comprised a comprehensive strategy for launching a premium skincare line. We developed a
thorough plan that included price strategies, product development, and market research. This project
required forecasting demand, overcoming obstacles including finding quality ingredients, and
developing successful marketing strategies. The goal of the serum was to stand out in a crowded market
by providing a better, unique way to get radiant skin. The proposal included a thorough plan for
introducing a high-end skincare brand. We created a comprehensive plan that covered market research,
product development, and price strategies. This project involved estimating demand, solving challenges
including locating high-quality ingredients, and developing effective marketing efforts. The serum
marketed itself as an exceptional, one-of-a-kind method for glowing skin.
We also created a comprehensive advertising plan that blended digital and conventional marketing
techniques. To efficiently reach our target demographic, we employed influencer alliances and focused
social media campaigns. We had to handle a number of issues during the simulation, such as handling
production logistics and making sure the brand was consistent across all marketing platforms. We were
able to navigate these challenges and obtain insightful knowledge about the nuances of releasing a
high-end product, which will greatly improve our capacity to organize and carry out new launches in the
future with more assurance and efficiency.
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BIBLIOGRAPHY
Jain, S. (2023). Influencer marketing: A guide to effective PR packages. Beauty Insights Journal, 12(3),
45-60. https://doi.org/10.1000/BIJ2023.12.3.45
Patel, M. (2022). Creating buzz with pop-up events: A guide for skincare brands. Event Marketing
Today, 9(4), 88-99. https://doi.org/10.1000/EMT2022.9.4.88
Rodriguez, T. (2023). Integrating wellness programs into brand experiences. Wellness Marketing
Quarterly, 7(1), 15-29. https://doi.org/10.1000/WMQ2023.7.1.15
In addition, we referred to class lectures and notes, and took inspiration from the previous marketing
campaigns of the Company itself and similar companies.
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