Business planning for selling car air refresher

Issues

Our target segment includes consumer groups aged between 20-24 years who belong to the upper socio-economic spectrum and own a car. People are reluctant to purchase products at the regular price. During the promotional offers, the household members used to place an order. And to enlarge our consumer base within households, we are working on price adjustments to increase our demand of household consumers.

Objectives:

Our objective is to introduce a new kind of air freshener. Our survey and research lead us to understand that in Karachi, people use conventional air fresheners in their cars, which run best when ac in the car is turned on. We also found some people resort to spraying air fresheners in cars which can be hazardous in heat as gas cans can explode in extreme temperatures. Our product is safe and works with solar energy that smartly uses the sun's rays to give out a fresh aura. It enhances the look of the desk or the car dashboard during daylight. It will work only in daylight. It is so smartly designed that it not only looks good but also only gives out enough freshness that it is not overwhelming.

Pricing Strategy

We have used cost-based pricing. We determine its product cost from the retailer and then set the price which covers our cost and expenses.

We did not compromise on the packaging. Square cardboard boxes were ordered from daraz costing us Rs 1000. We made sure that packaging quality is high and durable. For extra protection, we covered the sir refresher in the bubble sheet costing Rs 150. For the styling of the box, we printed Solaire stickers which made the box more attractive costing Rs 220. To make our customers happy, we printed thankyou cards costing Rs 130. Other expenses include transportation and promotion costs.

The price of the product is Rs 500 for a normal product and Rs 600 for a premium product. While we gave around 300 for normal products and Rs 500 for the premium product when buying from a retailer. Premium product, high-quality packaging and rare availability in the market leads to a higher price. A bit of price skimming will not affect brand loyalty.

Promotional pricing is used to increase short-term sales. Special event pricing “Victory Sale” was offered 11.11 sales were offered as limited time offer for promotion.

Each of the products has its demand but black air refresher is the market leader with high margins. People are more interested in buying a product rather than others.

Promotion:

We are now in a growing stage with increasing sales. We wanted to build brand preference and persuade them to purchase now. So, we have run several promotional offers like victory sale and 11.11 sale. We have advertised our product through Instagram paid promotion. After this paid promotion, we started receiving the messaging of the customer outside the city. For the timing, we are delivering only in Karachi but soon we plan to sell outside the city as well. Our reach increased to more than 8000 accounts with 212 engaging groups. Some of the bloggers such as lukedarmant and mkcreates promoted our product by posting on their stories.

We have recorded the review of the customers and posted them on the Instagram profile. It increased our followers and engagement. To increase engagement, we decided to collaboration with boho minimal: a brand that sells jewellery. If the people, follow boho minimal and use promo code BOSO then customers can avail themselves of 25% off. It was for mutual business benefit.

We regularly posted the story of our product to ensure that people see it and are persuaded to buy. We created an attractive post of air refresher to increase the engagement on the page. Posted customer reviews in the highlights so new customers can trust us and ensure that we give the right product to our users.