Current Marketing Marketing Situation
WHITE PEARL Toothpaste Company Ltd; founded one and half years ago by two friends Ferdous Ahmed and Mohtasim Ahmed with their past work experience in the toiletries market, is about to enter the toothpaste market which is dominated by other competitors. competitors. The market market research team of White Pearl earlier assessed the opportunities for Toothpaste Industry in Bangladesh and found out that that it offers huge potential. As a result White Pearl decided to launch a tooth paste which has all these required features to reach the customer base by creating a strong market share position than the existing competitors with the marketing slogan “Your Ultimate Toothpaste”.
Market Description >> White Pearl’s Pearl’s market consists of the rising per capita income and increasing awareness is driving demand of oral care products. Currently, Currentl y, toothpaste enjoys a country wide penetration level of 75 %, with only 15 % of them brush twice a day. The per capita consumption in Bangladesh stands at 270gms/year. Consumers have started switching to value-added toothpastes like sensitive toothpastes, gels, mouth washes, and teeth whitening products with various cool and exotic flavors. More or less the competitors cover all these features but which they lack is in this market is failing to introduce the raw exotic and new flavors. So to create a solid market position White Pearl is offering quality toothpaste which will fight all the tooth problems by giving the customers with a taste of new and unique variety of flavors with very competitive prices which in the market is not available.
Page | 1
Product Review >> The WHITE PEARL toothpaste is a kind of toothpaste which has every element to meet up the consumers’ needs and wants. It is made in such a way that it has specialized in all the sectors of tooth and mouth that in one word it can be sai d expert. WHITE PEARL toothpaste can face 8 problems:
Protect all around teeth, even where a toothbrush doesn’t reach Create great mint taste which freshen breath longer time period Protect against root caries Clean and make teeth whiter Repair early decay spots (cavity) Work as a mild antiseptics Gum Bleeding Reduce Sensitivity
Another special characteristic of it is that it spreads around and penetrates in between teeth for All-Around Decay Protection. Thus this product WHITE PEARL has the capability of fulfilling the needs and wants of our consumers. Ingredients:
The special and unique natural flavors of WHITE PEARL are spearmint, peppermint, wintergreen, and cinnamon. cinnamon. Last but not the least the ingredient fluorides reduce decay by increasing the strength of teeth.
Page | 2
Active
Inactive
Silica Sorbital Triclosan Sodium Chloride Zinc Citrate Eugenol Chlorohexidine Fluorides Binders
Water Detergent Binding Agents Preservatives Abrasives for polishing
cleaning
&
Binders thicken toothpastes. They prevent separation of the solid and liquid components, especially during storage. The target group would be:
Geographically targeted segment: Supplying segment: Supplying our product to all areas through retailers and simultaneously to super market as well. Second priority goes to densely populated areas such as Dhanmondi, Mirpur, Mohammadpur, Uttara and Lalbagh of Dhaka City.
Demographically targeted segment: segment: Targeted Targeted for all age of people. Highly affordable from upper-middle class to skilled working class. Available in different sizes for large, medium and small families.
Psychographically targeted segment: segment: Supply quantity of the particular flavored toothpaste will depend on the demand of particular flavor. All in all we have targeted this market for trendy and conscious consumers of toothpaste.
Category
Price (Tk.)
Quantity
Small size
40.00
125 gm
Standard size
65.00
200 gm
Jumbo size
80.00
250 gm
Total sales are expected to t o be around Tk.12crore in the first year of operation.
Page | 3
Competitive Competiti ve Review >> After analyzing different ads and brands we have identified that most of the companies have focused on
Germ fighting ability
Healthy teeth
Fresh breath
Whitening
Gum protection
Above some pictures of top brands of the competitors are shown. The toothpaste segment in Bangladesh is largely a two player industry, Colgate & Unilever Bangladesh (Pepsodent, Close-Up) which account for ~70 % of the entire market. For years, Pepsodent has dominated the toothpaste market in Bangladesh with ~ 45 % market share. H oweve oweverr i n one on e category category of toothpaste toothpaste the th ese companie compani es off er solu ti ons for 5 (fi (f i ve) ve) problems problems whil e WH I TE PEARL can can f ace ace with 8 (eight) with unique natural varieties of
spearmint, peppermint, wintergreen, and cinnamon flavors. Thus it makes White Pearl the st World’s 1 toothpaste to tackle 8 oral problems from one single tube of paste. The price range of these competitors’ products competitors’ products fall fal l almost in the same amount with WHITE PEARL, as the competitive pricing strategy is followed by WHITE PEARL.
Page | 4
Distribution Review >> The nationwide small retail & large retail (wholesale) outlets, grocery shops and supermarkets, will be the main distributors for WHITE PEARL in order to make it available in the hands of our final consumers. Factory
Warehouse
Groceries, retailers, online shops and super markets
Final customers and consumers
SWOT Analysis SWOT stands for Strengths Weaknesses O pportunities Threats Strengths
Good quality toothpaste
Has the capability to fulfill ground brea king 8 types of needs for maintaining an ultimate oral care
Weaknesses
Same price range like the competitors
Opportunities
Offering four different unique natural flavors
Threats
Pepsodent, Colgate & Close-Up have greater market share
Page | 5
Objectives and Issues st
1 year operation
To carry out promotional promotional & social awareness awareness campaign in a constant pace Promotion and marketing is very important tool to create a brand more popular by passing its activity among the consumers, and simultaneously we will perform social awareness programs, for example free dental check up. All these will reflect a special image of our brand name to the mind of our general general consumers.
To ensure quality control To make sure to the consumers that the product which are manufactured is neither defected nor spoiled item. Ensuring this will boost the popularity of our product one step further. nd
2 year operation
To increase the sales margin In order to make WHITE PEARL a popular brand, general consumers must have the buying interest for it. So to make it we should should increase the total sales margin of it.
To achieve customer satisfaction through better complain practice The more complains the better result of the product, in this obtaining the satisfaction and can give solutions to the problems which consumers may face. Thus it will help them to stay longer and will create a bond with our product and might create a sense of popularity among the other types of consumers as well.
rd
3 year operation
To enforce market research & product development Market researchers can get the consumers views and wants more on the product, in this way the desired product they want to see might be developed.
Page | 6
Marketing Strategy White Pearl’s Pearl’s marketing strategy is based on a positioning of single brand with only variations that are selected by consumers when making a choice i.e. choice i.e. the exception of flavors and different sizes. Our primary consumer target is middle- to upper-income people who need one tooth paste to tackle with almost all oral problems for all age group. All of the four marketing-mix strategies express WHITE PEARLS’s differentiation to the targeted group/market.
Positioning >> Using product differentiation, we are positioning the White Pearl as the most versatile, convenient, value-added model for personal and professional use. The marketing strat egy will focus on the 8 problem fighting solutions as the main feature differentiating the White Pearl from all the other big competitors. This will be the competitive advantage for it.
Product Strategy >> White Pearl will have all the features that are described in the Product Review section. It will have hotline numbers on its body to contact with us for any queries. On the coming years we will build on these customers feedback issues iss ues more in the coming years. Building the WHITE PEARL brand is an integral part of our product strategy. The brand and logo (White Pearl ’s distinctive glowing green & black font) will be displayed on the product and its packaging, and reinforced by its prominence in the introductory marketing campaign.
Pricing Strategy >> Category
Cost Price (Tk.)
Distributor’s profit
Gross profit
Selling price (Tk.)
margin (Tk.)
(Tk.)
inclusive VAT
Small (125g)
25.00
2.50
12.50
40.00
Standard
49.00
2.75
13.25
65.00
Jumbo (250g)
64.00
3.00
13.00
80.00
Total from 3
138.00
8.25
38.75
185.00
(200g)
categories
Page | 7
Distribution Strategy >> Our channel strategy is to use selective distribution to have White Pearl sold through wellknown stores and online retailers. During the first year, we will add channel partners until we have coverage in all major Bangladesh markets and the product is included in the major super market’s market’s promotional promotional leaflets and shopping Web sites. We will also investigate distribution through super chain outlets maintained by major carriers such as Agora, as Agora, Shwapno, Almas etc. Almas etc. In support of the chain shops, White Pearl will provide demonstration products, detailed specification handouts, and full-color photos and displays featuring the product. We will also arrange special trade terms for retailers that place volume orders.
Marketing Communications Communications strategy >> By integrating all messages in all media, we will reinforce the brand name and the main points of product differentiation, especially our 8 problem fighting solutions as the main feature, along with the offering of four different unique natural flavors. Advertising will appear on a pulsing basis to maintain brand awareness and communicate various differentiation messages. The agency will also coordinate public relations efforts to build the White Pearl brand and support the differentiation message with the help of BDS (Bangladesh Dental Society). To attract market attention and encourage purchasing, we will offer as a limited-time limite d-time premium a free toothbrush. To attract, retain, and motivate channel partners for a push strategy, we will use trade sales promotions and personal selling to distributors.
Marketing Research >> Using research, we are identifying the specific features and benefits that our target market segments value. Feedback from market tests, surveys, and focus groups will help us develop the White Pearl. We are also measuring and analyzing customers’ custome rs’ attitudes toward competing toward competing brands and products. Brand Bra nd awareness research will help us determine the effectiveness and efficiency of our messages and media. Finally, we will use customer satisfaction studies to gauge market reaction.
Marketing Organization >> White Pearl’s chief Pearl’s chief marketing officer Md. Ashfaq Uddin Tuhin, holds overall responsibility for marketing strategy and direction. On the next page it shows the structure of the eight person marketing organization. White Pearl hired “Point 33 Marketing Firm” Firm” to handle national sales campaigns, trade and consumer sales sal es promotions, and public relations efforts. Page | 8
Action Programs WHITE PEARL will be introduced in February. Following are summaries of the action programs that will be used during the first six months of 1st year to achieve our stated objectives.
January >> We will initiate a Tk.16lac trade sales promotion campaign to educate dealers and generate excitement for the product launch in February. We will exhibit at the major consumer trade shows (i.e. trade fairs) and provide samples to selected product reviewers, opinion leaders, and celebrities as part of our public relations strategy. Our training staff will work with sales personnel at major retail chains to explain WHITE PEARL’S PEARL’S features, benefits, and competitive advantages.
February >> We will start an integrated print/radio/Internet campaign targeting professionals and consumers. The campaign will show how quickly WHITE PEARL’S users PEARL’S users can solve 8 oral
Page | 9
problems and how they feel about the four different unique natural flavors. This campaign will be supported by the places at which a retail transaction is carried out and online shops.
March >> As the advertising campaign continues, we will add consumer sales promotion tactics such giving away free toothbrush or cash discounts as a premium. We will also distribute new point-of-purchase displays to support our retailers especially the super markets/chain shops.
April >> We will hold a trade sales contest offering prizes for the salesperson and retail organization that sells the most White W hite Pearl tooth paste during one month.
May >> We plan to roll out a new national advertising campaign this month. The radio ads will feature dentists who will ask about 8 oral problems and how they feel about the four different unique natural flavors. The print ads will show these celebrities holding their WHITE PEARL tooth paste.
June >> In this month we will launch another different campaign which will feature how actually White Pearl benefits its users and giving relief to their oral problems. From this we can measure the level of quality within the product that White Pearl is required to provide in order to fulfill its set objectives.
Page | 10
Budgets Total first-year sales revenue of White Pearl is anticipated at Tk. 12crore, with a total selling price of Tk.185 per three categories and variable cost per unit of Tk.146.25, and thus the anticipated total unit sales volume would be (Tk.12crore ÷ Tk.185) = 648,649 units (648lacs 649 units) of White Pearl tooth pastes. We anticipate two years loss because Break Even calculations indicate that Whi te Pearl Pearl wi ll become become pr ofi of i tabl e after af ter th e sal sal es volu me excee exceeds ds 12, 90,323 un i ts , early in the product’s thi rd year. year. Our break-even analysis assumes per-unit wholesale revenue of Tk. 185 per unit, variable cost of Tk. 146.25 per unit, and estimated first-year fixed costs of Tk. 5crore. Based on these assumptions, the break-even calculation is:
Tk. 5crore =
12, 90,323 units
Tk. 185 – Tk. 146.25 = 38.75 N.B. Here three size categories of White Pearl considered as one to avoid complexities of break even
Controls White Pearl’s marketing management fully dedicated in planning tight control measures to closely monitor quality and customer service satisfaction. This will enable us to react very quickly in correcting any problems that may occur. Other early warning signals that will be monitored for signs of deviation from the plan include monthly sales (by segment and distribution) and monthly expenses .
*** THE END ***
Page | 11
