Good day all, Osuji Franklin here once again. Today I am going to discuss about the 4 Ps of marketing and their application to my business as a soap manufacturer.
The 4 Ps of marketing are Product, Place, Price, and Promotion.
Product: refers to a tangible good or valuable service that a business sells. The way a product will meet the needs of the customer, the variants of the product required to meet those needs, and the branding strategy are all decided by marketers.
ZAN’s products meet the laundry and bathing needs of a growing population. Its variants include a washing soap, a bathing soap, and a multipurpose soap- that serves a dual purpose of laundry and bathing soaps. ZAN is seen as a product that has a Unique Selling Point (USP). The laundry soap line is a top-quality product characterized by its translucency. It’s a USP no other commodity by its competitors has been able to achieve. This gives my brand a presence in the market that has been able to break into the markets in different regions, especially in the North. States like Kano, Jos, Kaduna, and CrossRiver were the top regions marketing our products. The company feels it has earned its bragging rights by achieving this translucency feat and gained a large faithful following with a market share of about 27% in the Northern region as at 2021.
The products were also distinguished by their sizes and shape- x24 is the biggest soap size ranging from 2.5kg to 3.5kg, with a carton containing 24 tablets; x60 is the smaller weight ranging from 1.5kg-2.5g, with a carton containing 60 tablets; and x100 being the smallest weight ranging from 1kg-1.5kg, with a carton containing 100 tablets. The diversity of our products enabled us maximize profits in certain products or push volume and market presence. It gives/ increases the company revenue.
The Antigal antiseptic soap line had the highest margin because of its soap class. Its cost of production varies though, as it has a higher cost because of the special palm oil.
Price: Successful items aren’t just given a price that seems reasonable. The marketer chooses the pricing that will give the business the greatest profit margin while also providing the greatest value to the customer. They assess potential competitive pricing points and determine whether discounts will be advantageous.
In determining the price of my soap product, we combine the market theories of value and cost theories of value. We calculate our cost price and add a margin whilst bearing in mind our competitors and what the market perceives the price would be. This is because it is a commodity in high demand with various substitutes, and we cannot afford to outprice ourselves in the market.
We give uniform prices according to states to avoid price clashes and avoid giving an unfair advantage to some distributors in the same region. This helps us increase profit margins in different areas and drive more revenue. The Rago x24 sells for #2,000 in the Northern region but goes for a higher price of #2,100 for the Easter & Southern regions like Aba, Portharcourt, etc. This is discounted for the Northern region because of the price of transportation that must be factored into their costs. Therefore, to drive sales for such regions the company discounts the product or bears the cost of transportation for our distributors.
Look out for next post on marketing to discuss the last two Ps of marketing. Until then, ciao.