Velvet is a beauty soap brand of Hemas Holdings and the company expects to introduce the brand to Bangladesh market. This report extensively analyze the international marketing strategies for Velvet to successfully establish in Bangladesh market. Bangladesh is one the fasting growing market in the world. Product features of Velvet are well match to Bangladesh as a South Asian country. Further, there is a growing demand for beauty soap in Bangladesh.
This report recommends direct exporting and overseas production as two suitable entry strategies. However, directly exporting is the most affordable option for the company. It is a highly competitive market since there are well established brands like Lux. Both Lux and Velvet follows hybrid strategy which offer quality product for an affordable price. Therefore, pricing strategy of Velvet should be competitive bid strategy to gain competitive advantage.
Internet penetration of Bangladesh is still 31.5%. Therefore, traditional media is still more effective specially in regards FMCG. However, social media is becoming highly popular among young generation. Thus, Velvet should use push social media methods like pay-per-click to show display ads, banners, and shopping ads, as well as pull strategies like posting unique social media content, influence material, and customer reviews. Furthermore, it is recommended that while presenting current standardized products to the market, new product variants be designed by adapting to new markets.

1.0 Introduction

Hemas Holdings is the second largest conglomerate of Sri Lanka which operate more than seven decades in Sri Lanka. Velvet beauty soap is one of leading brand of Hemas. It is the market leader of Sri Lanka in beauty soap category. Atlas expects to introduce Velvet to Bangladesh market. Kumarika which is hair oil product of Hemas, has already become well established brand in Bangladesh. The purpose of this report is that extensively conduct market screening for Velvet and recommend suitable marketing, promotion and communication strategies. This report also recommend both offline communication and social media strategies which company need to follow to increase brand awareness and attract customers.

2.0 Product selection and rationalization

Velvet acquires 30% of beauty soap market in Sri Lanka (Hemas Holdings, 2022). Now, product has reached to maturity level of the product life cycle. Currently, beauty soap market of Sri Lanka is becoming stagnated and market growth rate is 2.6% (Dewapriya, 2021). Therefore, Hemas focuses on product development and market development as growth strategies. Velvet has introduced body wash, body lotions as product development. Further, Velvet beauty soap has introduced different variants such as Kohomba & Aloe, Jasmine & Hibiscus, Honey & Yogurt, Rose & Pomegranate and Purple lotus and lavender etc. As a market development strategy, company expects to introduce Velvet beauty soap to Bangladesh market.
The beauty soap market of Bangladesh is estimated more than BDT 28.8 billion (Ali, 2021). Market size was only 7.2 billion in 2010, therefore, market size has grown significantly in recent past (Ali, 2021). Currently, market is growing at 8% rate (Ali, 2021). There is approximately 50,000 metric tonnes annual demand for bathing soaps in Bangladesh (Ali, 2021). Therefore, Velvet has better opportunity to be successful in Bangladesh market. Already, Hemas has well established distribution channel in Bangladesh which distribute Kumarika hair oil. Therefore, Velvet beauty soap has high potential to acquire considerable market share in Bangladesh market.