Marketing Plan for “OMO”

Marketing Plan for “OMO”


The product is a powder detergent by the name ‘Omo’ to be unveiled and marketed in the United Kingdom. The product came from the growing need for washing detergents in most households in the United Kingdom. In addition, the available detergents are a bit expensive and not affordable to most citizens in the country and especially the poor families. Essentially, there exists a need for a product that is both affordable to the poor and still effective in washing stubborn stains and garments (Chattopadhyay, 2002). The idea for the product was market driven from the existing gap for affordable detergents in the country. Most of the detergents, both in powder and liquid, retail at very high prices making them unaffordable to most consumers. In addition, market research identified that the new product would increase competition in the market thus leading to high quality products for the consumers. In addition, the entry of new technology in removing stubborn stains further strengthens the idea as it uses the most current technology in fighting stains.


Product Concept

The product is a powder detergent for household use in cleaning both clothes and garments. The product is of high quality that meets the consumers’ expectations and needs. The target market for the product is the poor families and the low income citizens that require detergents at a cheaper price. Nevertheless, the product has been structured in high quality to ensure that stubborn stains are removed. The product is packaged in different quantities both in sachets and containers to meet the varying quantity requirements of the consumers. The prices are also varying according to the quantity of the package.

Omo detergent is purposed to remove the most stubborn stains in clothes and garments. The target of the product is stains arising from mechanical work such as lubricants and farm products. The product has the advantage of removing stubborn stains that cannot be removed by ordinary bar soap. In addition, the product’s fragrance is an essential benefit in that it gives the clothes a pleasant smell that lasts for many days. As thus consumers do not have to apply sprays and deodorants on their clothes to smell good. In so doing, the product saves the consumers cost of smelling good. Moreover, the low cost of the product saves the consumers more money while still providing the required quality.

The concept testing process will involve capturing of the customers’ needs and will be targeted at the requirements of the customers (Nijssen & Frambach, 2001). In this process, the product will be presented as an affordable detergent that is gentle on skin while still being effective in removing stains. The product’s concept testing will be conducted using field surveys, focus groups and personal interviews to assess the reception of the product from the customers. In addition, product tests, positioning and concept evaluations will be conducted to measure the quantitative portions in the concept testing procedure.


Technical assessment

Spray drying is the leading technology in the production of Omo detergent and involves the combination of dry and liquid ingredients. The process if followed by heating thus producing small droplets. Later, the droplets are passed through hot air and they fall as dry hollow granules. Omo detergent uses new technology in reducing the volume of air in the granules during the process of spray drying.  This means that the granules can then be packaged in smaller quantities than ordinary detergents and therefore improving the consumers’ money value. Moreover, the product incorporates the process of agglomeration thereby increasing the density of the granules further. The process is achieved through the blending of the dry raw materials with liquid ingredients to form larger particles.

Due to high cost of using plastics in packaging and the resulting environmental hazards, the product is packaged in sachets that use less plastic than containers. This development is driven by the need to comply with new technology in packaging products. Moreover, the packaging of the product as a powder rather than a liquid is also a technological advancement to reduce the packaging cost. It would require much more to package liquid detergent that it requires to package powder detergents. This development has a cost implication in that it reduces the cost of the product by great lengths.


Market assessment

The initial market for the product is the low income consumers that cannot afford the current high cost of detergents. There exists a market gap comprising of the poor families that require the services of detergents which they cannot afford. The product therefore targets consumers that require the high quality of the detergents but at a relatively affordable cost in the market. Eventually, the product will be improved and categorized to cater for all the different market segments. There will be product categories for the high end consumers that have a more appealing packaging and ones for low end consumers that do not have the appealing packaging. In addition, the product will be segregated to cater for higher income markets by having the right fragrance in the product.

Prior to the development of the product, an in-depth analysis of the market shall be conducted to ascertain the market requirements (Jain & Haley, 2009). The feelings of the consumers as regards the price of the currently available detergents will be researched to identify incongruence that may pose as market gaps. Moreover, the packaging of the detergents will be researched to measure the expectations of the consumers as regards the same. In this regard, issues to do with the disposal of the packaging material as well as the quantity of the package will be analyzed in detail. Further, the use of detergents in cleaning will be analyzed to ascertain the total market demand and the current supply. This will then be used to identify any deficits in the production of detergents for household use. In addition, emerging trends and technological advancements will be analyzed to predict future trends in the use of detergents. For instance, the uptake of washing machines that do not use detergents is a concern for the future stability of the product in the market.



The product shall be manufactured in large scale and then packaged in varying quantities to meet the various customer requirements. The development of the product is to be done in manufacturing plants to be located in different regions of the United Kingdom. To start off, the product will first be manufactured in a factory in London and production will then be diversified to other regions. The development will be closely monitored to ensure that all the standards are met and that customers’ requirements take precedence in the production process (Stuable, 2000). The product design will be structured to match the tastes of the customers and the packaging will be made appealing to suit the customers’ requirements. In addition, the labeling of the product will be reflective of the quality and the recommended retail price to attract the target market of low income earners. Further, the product shall be marketed to the consumers through the print and electronic media. Television adverts will be floated to associate the product with the consumers. The Omo detergent will be marketed as an effective product that removes stubborn stains and is affordable to the customers. The quality of the product will also be used to get the attention of the consumers and in convincing the people to buy it. Further, the new technology used in the manufacture of the product will be emphasized to market its high quality. To achieve the right marketing strategy, the product will rely on testimonials from customers that have used the product to convince other target customers to use the product as well.



The validation of the product shall involve both the product and market testing during the process of development (Lamb et al., 2012). In product testing, the paired-comparison design will be effective in overcoming competition from other established detergent brands. It involves asking the consumer to use two different brands and then asking them their preferred choice based on quality and effectiveness. The process is important in that it appeals to the consumers’ common sense and face value. In addition, the technique is effective in that it accentuates small differences and improvements in the Omo detergent thus giving it an advantage over the other brands. The technique is preferred for its cost effectiveness as it involves small samples in the process of choice.

The product shall also undergo market testing. This will be achieved through the development of a prototype of the product for showing the prospective customers (Schwartz, 1987). A photograph of the product will be printed and shown to customers and their reception of the product gauged. The appropriate prices will also be determined through the existing supply chains in the market. The costs of the supply chain and transportation will also be determined before a selling price id determined. These costs include office costs, shipping, loss, insurance and transportation. Further, family and friends will be asked for their feedback on whether they can purchase the product. Comparisons will also be made with other existing brands to ensure a competitive edge is maintained (Kahn, 2006). Comparisons will also be useful in making improvements of the product in future.


Marketing Plan

Purpose and Mission

The purpose of the marketing plan is to identify the strategy for marketing the product in the first twelve months of its launch. The plan will cover the activities done from prelaunch, launch and after launch geared towards making the product much more appealing to the consumers. The plan further details the strategies used in giving the product a competitive edge over the other existing products in the market (Luther, 2011). Essentially, the plan is produced to cushion the product from failure and to ensure its sale is guaranteed. The information in the plan will be used to project and measure the performance of the product in the first twelve months from its launch. As thus, any inconsistence with the projected performance can be detected early enough and corrective measures adopted to take the product back on track. The plan further identifies the challenges that the product may face and the various ways through which these challenges can be overcome. In addition, the plan assesses the market situation and provides viable ways of meeting the requirements of the consumers.


Potential Market

The initial target market of the product is low income earners whose demand for detergents is sometimes constrained by the high prices in the market. All people in United Kingdom, and indeed in the world, require detergents to wash their clothes and garments. As thus, the market size can be considered to be all the households in the United Kingdom. This presents a large market that is not fully exploited. In this market, Omo product targets the low and middle income earners as the initial market. Later, the product will be diversified to cater for the needs of the high income earners through the addition of such features as fragrance and better packaging. In reaching the target market, the product will use the existing supply chain channels already in the market (Beckley et al., 2012). One way will be to sell the product through the many retail stores and supermarkets in the country. In addition, the product will also be sold in small shops that are located in the neighborhoods of estates in the United Kingdom.

The target customers are low income earners who do not consider detergent as a basic requirement but a luxurious product. The goal of this product is to change these people’s mindset and sway them into considering the product as a necessity. This will be achieved through an affordable entry price for the product that is relatively cheaper than the existing prices. The product will be sold in bulk to the retailers who will then retail the product to the consumers at a recommended price. It is estimated that the detergent will take up at least ten percent of the market size in the first year of its operation. In particular, the innovators are projected to form the biggest chunk of consumers at the initial stages of the products production. Comprising about 2.5 % of the customer size, the innovators profile can serve as an important starting point in marketing the product (Ahlstrom & Bruton, 2010). Further, the innovators are important in shaping the perceptions of the other adopter categories and therefore immense marketing must be done to ensure that the innovators enjoy the product.

The early adopters, comprising about 13% of the market size are important opinion shapers and will form an important market base for the product. Followed closely are the early majority that contains the largest percentage of the market size combined with the late majority. In fact, their combined market share is about 70% and they shape the performance of the product depending on their experience with the product (Westwood, 2013). Essentially, this will form the bulk of the market for the product and immense advertisement will target this category of consumers to ensure they have positive perceptions about the product. The last category is the laggards who are very conscious of the price of the products. They form about 15 percent of the total market share and are a important especially since the product is targeted at the low income earners, majority of who are found in this category. To market in this category, the price of the product will be emphasized to bring as many of these consumers on board as possible.



Before the launch of the product, it will be marketed so that many people hear about the product. The consumers’ anxiety can be enhanced through promotions and advertisement of both the product and the event (Stapleton, 1997). In particular, the product will be marketed as a new and affordable alternative to other detergents. The event will be promoted through the print and electronic media which are powerful tools of pooling the masses. To improve the number of attendants, the anxiety of the consumers should be kept at an all high and announcement of prices to be won made in the media. In addition, there shall be an announcement of a competition whose grand winner shall be announced during the launching event. To further pool the masses, there will be organized road shows across London to advertise the launch event. Caravans of vehicles will go round the major estates sensitizing the public about the event and inviting them to the event. In addition, celebrities will be used to advertise the event and calling on people to attend the launch event. This mode of advertisement is effective due to the high power of appeal that celebrities possess over the citizens (Westwood, 2002).



The launch event will be held in London and other subsidiary events will be held in the neighborhoods of major streets in London. The location of the venue is ideal in that it is the capital of the United Kingdom and forms a big chunk of the initial target market for the product. The subsidiary events will run concurrently with the main event and will witness mini launches (Kourdi, 2011) in the various estates in the United Kingdom. The event will launch the Omo detergent product to the people of the United Kingdom portraying it as a new alternative in the fight against stubborn stains. The event will cap a competition whereby the grand winner will be announced. Promotional gifts of the product will then be given to the runners up in the different categories.

The time of the event is specially chosen to coincide with the New Year of 2017 band will be held on the 2nd of January. This selection is projected to coincide with the theme of ushering in a new detergent product that is better than the products currently in the market. As thus, consumers will not only be ushering in the New Year but the new product as well. The event will be attended by citizens of the country indiscriminately sourced from the various neighborhoods in the United Kingdom. A test of the product will also be done and consumers asked about the effectiveness of the product from their experience that day. In addition, corporate and managers of main retail stores and companies will be invited to witness the launching of the product. Moreover, celebrity figures will also be invited and will lead the launch of the product. In particular, the MC will be sourced from among the many celebrities to cover the launch event.

It is expected that the launch event will raise the awareness among the consumers across the United Kingdom. Further, the launch aims to positively influence the perceptions of the consumers as regards the new product (Dibbs & Simkin, 2008). The invitation of many residents from diverse neighborhood is testament to this fact and is in line with the goal of influencing the consumers’ views of the product. It is also expected that the launch will have an immediate and direct impact on the sales of the product across the towns of the United Kingdom. The impact should be so large that the sales of the product will hit the 5% of the available market soon after the launch. The low price and high quality of the detergent is to be used to market the product as the consumers’ ultimate choice. Effectively, the technology used in the production process is also expected to improve the sales of the product within the first days after the launch.


Follow up after launch

After the launch, the anxiety created among the consumers should be maintained and sales monitored to ensure that the product’s uptake in the market is above average. Follow up activities will involve promotions portraying users of the product as winners. In this regard, various competitions will be maintained and regular draws conducted to ensure uptake of the product. In particular, the sachets of the product will have a code that consumers can scratch to reveal and then sending the same to a prescribed USSD. A ruffle will then be conducted and winners announced through the print media. Prizes will also be given to random shoppers in the different retail stores to encourage people to buy the product. This can be achieved through arrangements with the managers of retail stores to provide promotions to random shoppers in their stores Ramaswamy & Namakumari, 2009). In addition to the promotions, advertisements in the media will also serve to improve the uptake of the product among the consumers. Television adverts will be posted to encourage people to buy the product by focusing on the unique features. The high quality and low price of the products will be a useful marketing tool in portraying the product as an ideal choice for the consumers.


Pricing Strategy

The price of the product will be ascertained from all the costs incurred from production all the way to delivery of the product to consumers (Palmer, 2012). The profit margin will be set a minimum low during the first year of production to encourage more sales. In the following years, the profit will eventually increase from the economies of scale and bulk production. Initially, the product will be introduced at a penetration price that is low to increase sales. This can be packaged as a promotional price thereby encouraging customers to purchase the products and thus making it more popular. After a year of production, the price will then be increased slightly to reflect the economic situation of the market while still maintaining the competitiveness of the product.

In coming up with the pricing strategy, the fixed costs shall be considered as well as the variable costs (Egan, 2007). These costs must be passed on to the consumers to avoid losses to the company. In addition, competition should also be considered including the existing products and their average price on the market. The product’s price will then be set at a price lower than majority of the competing products to give it a competitive edge in the market. The objectives of the company are also influential in coming up with the price of the product (Blick, 2011). The short term and long-term goals of the company should be analyzed to ensure sustainable profitability of the company. Moreover, the target group should be analyzed in coming up with the product’s price including their willingness to pay. An analysis of the target market comprising of low income earners will be done to ascertain the most appropriate price.


Distribution Strategy

The distribution channel of the product will follow the normal purchasing process. The producer will sell the product to the wholesalers and retail stores in bulk who will then pass on the product to the consumers in small quantities (Brennan et al., 2010). The transportation of the products will be eased by well coordinated procedures from the production to delivery of the product to the consumers. In addition, the product will be distributed in varying packages depending on the quantity required by consumers. This product will be packaged in sachets that will then be packed in cartons and containers for ease in distribution.



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