MARKETING PLAN based on launching a product of Procter and gamble into a market selected by you

MARKETING PLAN- LAUNCH OF SAFEGUARD IN CUBA BY P&G
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September 12, 2016
Executive summary
Procter & Gamble is a company that intends to launch its product that is known as Safeguard in the Cuban market. The company has the target of gaining a larger market share in this region. Some of its main competitors have established strong roots in this country, and therefore P&G intends to outperform them and therefore gain a competitive edge in this market. This international marketing plan aims at ensuring that the company introduces a new product that will be liked and demanded more compared to competitor’s products.
Safeguard which is a product of P&G will be introduced to the Cuban market. This commodity has been chosen due to its unique capability which is not present in other ordinary soaps. The soap can remove germs and enhance cleanliness and hygiene. Safeguard has been in a position to compete well in other markets, and the company is certain that it will be accepted by the Cuban customers as well.
The Cuban market was chosen due to its broad customer base and also due to the internet capabilities which can allow the company sell its products well. Cuba is a country that good internet systems, good roads and other infrastructures that will allow the company to reach retailers as well as customers. The strategy to be used is to create awareness about the existence of the product.

The target market is females from age eighteen to sixty years. The channels that will be used include social media and website and traditional channels.
Overall marketing objectives
P&G is a company that deals with the production of consumer goods. This company aims at making the lives of people easier by providing goods that help solve their problems. Procter and Gamble are an organization that has a good reputation globally due to the products it offers. The company sells various consumer goods including beauty and personal care products.
It is vital to introduce safeguard to the Cuban market since the market is large and also suitable for the products success. Some of the marketing objectives of launching safeguard in Cuba are as follows:
The company hopes to be in a position to gain a larger market share as compared to its main competitors in the long-term. Unilever and Johnson& Johnson are competitors that have established themselves in the Cuban market. The company intends to introduce safeguard and therefore beat the current competition (ALLEN, 2012, p. 12).
In the short term, P&G intends to ensure that it gains a larger market share compared to the local competitor. Suchel Camacho S.A company is the local competitor to P&G. Suchel Camacho S.A company specializes in the sale of beauty products, body care, cosmetics and skin care products. This company is a big threat to P&G since it is widely accepted in these regions due to the production if goods that suit the Cuban culture. The company expects to increase its sales and therefore capture a large market share. The objective will be to capture a customer base if safeguard of at least 30,000 customers by the end of 2019.
The company intends to achieve the following yearly targets: 15,000 customers in 2017,20,000 customers in 2018 and 30,000 customers in 2019. The company on the achievement of the short-term goals to know whether the long term goals will be achieved. The project is planned to occur by 1st January 2017.
Market Selection
Cuba is a country that is located in the northern Caribbean. It is counted as the 106th largest in the world. Cuba is a country that has a population of approximately 11.2 million people. This population, therefore, means that the country has a high potential since there are many customers. The Cuban economy is also doing very well since it still growing and expanding. This country has a good location, and many companies are excited to do business in Cuba (KAPFERER, 2012, p. 44). Further, the country has many resources that are not utilized, and companies find this country exciting to start their companies.
Cuba is a republic that is acknowledged for its production of all types of products. The country is known for its production of tobacco, sugar, and many others. It is critical that P&G does a market analysis before launching safeguard in Cuba. This step will assist the company to be proactive and therefore prevent any shock that would emerge as a result of failing to do a thorough market research.
The country’s exchange rate is favorable for companies doing business there, and the inflation rates are also low. The country does not have regulations regarding the startup capital that a company uses to launch its products in that country. The company has few regulations and therefore the company has an opportunity of becoming creative and innovative to ensure that it competes well with its competitors (Cooper, 2000, p. 17).
Reasons for choosing the Cuban Market
Cuba has a large market, and this guarantees the company of great sales. Cuba is considered to be a fertile market that has a great potential as well as many untapped opportunities. The country has a considerable market size, and this makes the many multinational companies go there and exploit this market.
Further, Cuba has great internet products that will help P&G to market its products in a great manner. There are various local talents in Cuba, and this will allow the company to sell its products since it will get assistance from the labor force present in this country. The country has a good infrastructure including roads, network systems and others that would work to the benefit of P&G. The Cuban economy is a large one, and this guarantees the company of getting returns on its investments.
Target Market
The target market for safeguard is women from 18 years to 60 years. This target market is suitable since women are often considered responsible for the cleanliness and hygiene in a family. Women will, therefore, use this soap to ensure that members of their families are protected from bacterial infections. The target market will, therefore, be subdivided into three. The late teenagers are considered to be the ones that have started discovering themselves. A marketing campaign would be vital to show how the so will assist in making them clean and beautiful since their skin will glow by using this anti-bacterial soap (FEINBERG, 2016, p.35).
The working women are busy with their jobs, and a marketing campaign would assist in showing them that they would easily save costs when they use this soap as they would protect themselves as well as their families. This group wants to save money for their families and therefore they will consider the soap for its affordable cost.
The mothers will be in a position to use this soap to nurse their babies as well as the entire family. Mothers have a personality that cares for the whole family and therefore has a culture of ensuring cleanliness and hygiene. The benefits of this target group are that they will apply this soap as a laundry soap for those they care. The advertising campaign would focus on making them understand the kind of protection this soap offers.
Product
Safeguard is a product of P&G. It is an antibacterial soap that gives effective germ control as well as deodorant protection. This soap helps in removing germs, and it can also be used by the whole family, and this is in agreement with clinical testing. The product is available in different colors and flavors. This situation, therefore, means that customers can access the Aloe-Vera, lemon, herbal, menthol and many other colors and flavors.
The product is well packaged, and therefore it has an eye-catching feature which helps in attracting customers into purchasing the product. Safeguard is a product that has been proven to remove germs since many people who use the product report a situation where their skin is smooth and healthy. It also helps in removing dirt and other kinds of oil that are present on someone’s skin.

(Source: Google images)
Cuba is a country that prefers cheap products since it is a developing country and therefore safeguards being an affordable product will be welcomed in this country. The population prefers cheap and high-quality products, and due to the current competition in this market, there is a need for P&G to consider its price to ensure that the customers can purchase this product. Safeguard is the soap that can be used by all members of a household and this will attract the large use of this commodity since it does not restrict people to using it. The product will be altered to suit the needs and preferences of the Cuban consumers since the people are known to have a diversified culture (DENT, 2011, p. 23).
Promotion
The promotion will be very important when launching this new product in the Cuban market. The company will use various forms of advertising for the company to reach the target market so that they can purchase the product. The company will use the social media sites such as Facebook, Twitter, and others to reach out to potential customers. The company will also use local television and radio stations to pass across the advertising message so that people can be familiar with the existence of the product. The company will also create a website that will seek to advertise this product, sell to customers and also answer to all of their concerns.
a) Objectives of the promotion
The objective of the promotion is to make it known to people that safeguard is available in the Cuban market so that they can purchase this product. The another objective is to attract customers.
b) Message of the promotion
The message for the promotion is that “Safeguard is the Commander killing and removing all germs and ensuring a clean and hygienic lifestyle.”
c) Media choices
The television channels that will be used include the CMQ and RHC-Cadena Azul television channels for the purpose of advertising. The radio stations that can be used include, Radio Rebelde, Radio Taino, Radio Enciclopedia 94.1 FM and many others.
d) Costs
The cost of advertising using a radio is about 10000 Peso. The company will also use television station to do its advertising. The cost per advert rates is 15000-20000 Peso depending on the TV station that is to be used. The social media is quite affordable since the company will only require using some data to access these sites (Lee, 2003, p. 10).
Campaign Strategy
The campaign strategy will involve three strategies including advertising, direct marketing as well as road shows.
Advertising
The CMQ and RHC-Cadena Azul television channels have the biggest audience. Advertisements will be done three times. The company will use between 8-9am, 1-2 pm, and 8-9 pm to advertise its product.
Road shows
Camila Cabello together with other local singers will go around the streets of Cuba and advertise Safeguard through generating songs that promote the product. This activity will take place from 1st of January 2017 to 30th February 2017. Camila Cabello musician will advertise the products at an estimated cost of ₱ 90,000 per year.
Direct marketing
Direct marketing will also be used to increase demand for the product. Newsletter, Facebook, websites and other channels will also be used to ensure that the potential consumers purchase the product. The use of direct marketing strategy will be continuous, and therefore they will be used from time to time to introduce the product and other versions of this product (SMITH, 2012, p. 12). Television advertisements could reach 70 ads per month, and the cost is estimated to be ₱8000 per year. Radio advertisements could reach 100 ads per month at an estimated cost of ₱5,500 per year. Facebook adverts could be done for eight months, and the cost will be about ₱2000 per year. Further, newsletters will be issued once per month, and the estimated cost is about ₱5000 per year (MCDONALD, 2007, p. 12).
Cost Break Down
CAMPAIGNS ACTIVITIES FREQUENCY COST ESTIMATES per YEAR (1 year)
Advertisement Television advertisements 70ads per month ₱8000.00
Radio adverts 100 ads per month ₱5,500.00
Facebook adverts 8 months ₱2000.00
Road Shows Camila Cabello musician will advertise the products Fifteen months ₱ 90,000.00
Compensated reviews and controls ₱500 /month ₱4000.00
Direct Promotion Newsletter Once per month ₱5000.00
TOTAL (NET) ₱114,500.00
Total (3 Yrs) ₱343,500.00
DISTRIBUTION
P&G has put emphasis on the distribution strategies that will be used in Cuba region. The channel of distribution is termed as a path through which products pass from vendor to the consumers and the payments from the consumers to the vendors. The three main types of distribution that will be adhered to in the region is intensive distribution whereby the firm will be selling through many outlets as possible. Extensive distribution will also be applied whereby it will utilize multiple delivery channels and high volumes of distribution so as to cover many consumers. The another distribution strategy that will be applied by the P&G in Cuba is the Specialty distribution will also be used in the distribution of that particular product in the region (WESTWOOD, 2013, p. 33). The current households in Cuba are approximately 10,000,000 which is an adequate market for the product. These households will be in need of Safeguard for was washing their hands so as to maintain high levels of hygiene and kill germs. Cuba, being one of the fastest growing economies on earth has a well-connected motorway, railway, air, and good shipping network that will ensure that these products have reached the consumers regardless of the places where they are located (O’GUINN, 2009, p. 12).
Production plant will be located in Havana which is the largest industrial region in Cuba. The area is well-connected with the transport networks, so the delivery of the products to the consumers will be easy. Additionally, the region comprises of many industries as well as the availability of affordable labor for the production in the P&G plant. In fact, the cost of production is relatively low compared to all other places in the world.
Market Entry Strategy
Foreign Direct Investment (FDI) will be the most appropriate strategy because the firm has planned to build a plant in the region. Cuba, and especially Havana has become very attractive to the investors because of its potential and expected returns from the sales. Apart from the production plant, the firm will have other distribution centers that will be leased by the firm to ensure that these products have reached the consumers within the set time (SCHINDLER, 2012, p. 11). The distribution network by the P&G will be comprehensive to cover a wide area. The cost of distribution will be relatively low because the systems will be well-structured to make sure distribution centers are all over the region. Additionally, P&G will have secured several lorries to assist in the distribution of the products.
Distribution Channel
The P&G in Cuba will use simple distribution Channels that will be used to deliver products to the consumers. The channel used by the firm will include manufacturer, marketing agent, wholesaler/distributors, retailer, and then the consumer. The major goal of using this simple channel is to ensure that P&G has achieved efficiency in different aspects. Delivery flexibility will be achieved through the use of the distribution channel. Further, P&G will achieve high ordering speed as well as the personal customization and selection. P&G has ensured that it has built good links with many big retailer shops in the region that will be participating in the sale of Safeguard. The company will also have an intensive online presence that will be designed to ensure that a consumer can order the product from any location and then the product be delivered from the nearest store within the shortest time possible. The firm will be operating as a super stockist for the distributors. The distributors will be given a 6% so as to make sure that they have become motivated to worker harder (Fairley, 2012, p. 1117).
Transportation
The major methods that will be used in the distribution of the product will be railway and road. Shipping and air transport will be used although not as much as the road transport. The firm has also contacted other transport companies like the Maersk and DHL to help in the delivery of product to the consumers on time.
PRICING
The pricing of the Safeguard will be determined by various factors in the region. Therefore, perfect pricing strategies and tactics will be applied to ensure that the prices set perfect. Some of the factors that will usually be considered in the formulation of prices will be the prices of the competitors, inflation, change in currency, and the cost of production (SWEIG, 2009,p. 32). For some instances, currency fluctuation and the cost of transportation will be considered in the formulation of prices in different regions. Since the product is new in the Cuban market, market penetration strategy will be suitable for the market. Different prices will also be used in different markets based on market power and factors such as the level of living standards. The current exchange rate of the US Dollar to Cuban Peso is 1($ 1 = ₱ 1). The major competitors are Life Bouy, Dettol, and Johnson’s body care.
Product Price in the US Price in Cuba
Life Bouy $ 2.5 ₱ 17.00
Dettol $ 2.00 ₱ 13.6
Johnson’s Body Care $2.15 ₱14.50
Safe Guard $2.6 *
Price in Cuba will be ₱ 12.00 taking into account that the product has been manufactured into consideration that the product has been manufactured in the region. The prices will be lower compared to the ones the competitors are offering for their products. The price of the product in Cuba will be enough taking into account the expected sale. The consumers will be attracted to the low prices as well as the quality of the product (Sapp, 2004, p. 273). The current market is very price sensitive which is one of the competitive advantages that the company will have taken to win the consumers. The reduction of the price of the product will help in maximizing sales and increasing production. Additionally, the move will reduce the unit production cost which is good for business.
Skimming pricing policy will also play a significant role in making sure that the product has prospered in the market. The strategy will ensure that the firm is well prepared to reduce the prices in case the competitors flood the market or reduce their prices. Penetration pricing policy will be considered applicable in the region. The competitors will be afraid to revise their prices downwards as result of the costs they have incurred in the production, transport, and the importation of the products in Cuba. The competitors are likely to be discouraged resulting to some exiting the market and P&G dominating the market through an increase in the market share. An increase in the turnover will be expected in incidences where the product has emerged to be profitable at this particular price level (McDougall, 2010, p. 483). The discount policy of pricing the product will be used in the following year. The discounting strategy will be aimed at encouraging large purchases as well as making sure that all households have P&G in their homes.
FINANCIAL STATEMENTS
Marketing Plan Budget
Updated on 10 September 2016
Personnel Amount in Peso
Salaries, Wages ₱ 3,300,000
Market Research Total ₱ 3,300,000
Market Research Primary research ₱ 1,000
Secondary Research ₱ 2,000
Market Research Total ₱ 3,000
Marketing Communication Advertising ₱ 200, 000
Direct Marketing ₱ 20,000
Public Relations ₱ 180, 000
Internet Marketing ₱ 20, 000
Marketing Communication Total ₱ 420,000
Channels Channels promotions and Incentives ₱ 100,000
Channel Distribution ₱ 400,000
Channels Total ₱ 500,000
General Rent ₱ 400,000
Utilities ₱ 100,000
Insurance ₱ 50,000
Telephone ₱ 40,000
General Total ₱ 590,00
Total Marketing Budget ₱ 4,223,000
Grand Total 12,669,000
The budget of the operations of P&G in Cuba has taken into consideration all factors that will need to be addressed and expenses. The Grand total has been multiplied by three to cater for the operations of the company in the period of three years. Three years is the lifetime of the marketing objective that has been proposed in the marketing plan.
PROFIT AND LOSS STATEMENT
Forecast Profit and Loss account statement for 2017
Procter and Gamble – Safe Guard
2017
Gross Margin (L/J) 28.57%
Return on Sales (T/J) 7.71%
Sales Revenues (J) ₱ 14,000,000
Cost of sales (K) ₱ 10,000,000
Gross Profits (L= J-K) ₱ 4,000,000
Operating Expenses
Sales and Marketing Advertising ₱ 100,000
Direct Marketing ₱ 4,000
Public Relations ₱ 90,000
Total Sales and Marketing Expense (M) ₱ 194,000
General and Administrative Wages and Salaries ₱ 2,200,000
Rent ₱ 200,000
Utilities ₱ 20,000
Insurance ₱ 10,000
Depreciation ₱ 60,000
Total General and Administrative Expenses (O) ₱ 2,490,000
Total Operating Expenses P= M+O ₱ 2,684,000
Income from operations (Q= L-P) ₱ 1,316,000
Tax 18% (S) ₱ 236,880
Net Profit (T= Q-S) 1,079,120
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APPENDIX
Appendix 1: Population distribution of Cuba

Appendix 2: Economic growth of Cuba