Pricing Strategies in the Dishwash Market of Pakistan

Market Analysis Dishwash market of Pakistan is a bar driven market. Vim’s major competitor is Max while the rest of the brands like Safoon, Anna Bar are very small in size. Price Price is very important for this category. In order to market share, competitors use price as a unique selling point (USP). Max is a price leader in dish wash market. Max and Vim are price tag parity and both are price premium. Vim is low grammage and high price although it is not a noticeable difference. Price comparison of Bars between Vim and Max according to SKUs are as follows.

Max Bar| Vim Bar| Small Bar Pack (110 grams) cost Rs. 12| Small Bar Pack (110 grams) cost Rs. 12| Number of SKUs| Bar (200 grams) cost Rs. 22| Long Bar Pack (330 grams) cost Rs 32| Long Bar Pack (300 grams) cost Rs. 33| Product Portfolio Max Protfolio includes Max Bar, Azadi Dish Bar, Max Sourers, Max Liquid and Max Antibacterial. Max Bar is targeting urban area while Azadi dish bar is targeting rural area. Lemon Max Bar Introduction Lemon Max Bar is a quality washing bar. Lemon Max Bar is a with leadership among dish wash segment of FMCG in Pakistan.

Lemon Max Bar is product of Colgate Palmolive which was launched in 1982 with scourer embedded tagline “Hara Kaam Maun Khara Nimbo Ki Taqat Say Bhara”. Lemon Max Bar Consumers Primary shoppers of Max Bar are women and housewives and secondary are men purchasing household items. Brand is used for dish washing at home with the essence of lemon in it. Many year of sale and consumption at home consumers have approved Max Bar is a high quality product with many benefits. Lemon Max Growth Period Max Bar with strong, lemon-like, grease cleansing action and name that gave impression of foreign brand.

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Brands pass through ups and down then got stabilized and become market leader in terms of sales and Brand name. In 1985,brand manager learnt that consumer perceive that scourer damaged the dishes then they launched max liquid to overcome this perception. At the same time Unilever Pakistan ,the mega corporate giant of FMCG’s , launched its brand under the name of “Rin” in dishwashing segment of FMCG. The competition become aggressive in terms of promotion, retails distribution and event placement. But according to market experts, consumer used brand for cleaning their quality dishes utensils.

Due to heavy advertisement and erroneous branding decision Rin brand got positioning problems , product colour confusion among the consumers. Taking advantage from that opportunity, revelry brand “Max Bar” makes aggressive movements by heavy promotions. Soon Mac brand takes the game by kicking Rin Brand out of market form distribution to media promotion and become market leader. In 2001, Rin brand repositioned himself and change to “vim” and entered in to the market . Competition again got fierce between max bar and Vim due to heavy marketing budget form unilever gain to pull the max bar from market.

In the end of 2004, Rin vanish from the market and max become the leader in the market. After that many brands emerge on the competition arena like Safoon and Aana bar ,raising competition with the Max bar with relatively low price. For tackling this Max Bar launched 200 gm and sachet in that brand to gain an edge in the competition. But still Max Bar got 60 percent of the market share. In 2011, Unilever has relaunched Vim in dishwashing category. Vim gives a fierce competition to Lemon Max and start gaining market share from lemon max and other small players in the market.

Lemon Max Liquid Liquid dishwash is targeted at urban upper middle class home makers and here the users are home maids rather than home makers. It will be difficult to teach house maids to use the liquid efficiently. People perceived both the liquid brands same. Although, Vim is a concentrated gel while Max is a dilute liquid. Concentrated gels are used less as compare to dilute solution. Gels are more efficient in dish wash. Max Liquid Bottle| Vim Liquid Bottle| 275 ml cost Rs. 65| 250 ml cost Rs. 115| 475 ml cost Rs. 95 rs| 500 ml cost Rs. 190| Distribution of Lemon Max

Lemon Max distribution is very strong. They are available and visible in almost every store. TRENDS * Economic growth during the early part of the review period encouraged new trends in dining, with these continuing to spread at the end of the review period. There was for example strong growth in the number of restaurants in the country and also the widening use of feasts to celebrate weddings. The serving of meals became more elaborate, with consumers using a growing number of dishes. These trends continued to support growth in dishwashing at the end of the review period. COMPETITIVE LANDSCAPE Unilever was the leading player in dishwashing in 2010 with a value share of almost 18%. The company benefits from a strong advertising presence, with its Vim brand thus enjoying widespread awareness and loyalty. The company also benefits from the widespread availability of Vim, which is prominently displayed in most outlets that offer hand dishwashing. The company also offers the premium Persil brand in hand dishwashing, which appeals to many mid- and high-income consumers. PROSPECTS * Hand dishwashing is expected to benefit from economic growth and urbanisation in Pakistan during the forecast period.

As consumers move to cities and experience higher disposable income levels, their habits are likely to change. A growing focus on hygiene will encourage many to trade up from bar detergents to hand dishwashing when washing dishes. Lemon Max Bar Product History: Lemon Max Bar is a quality is washing bar with leadership in dish wash segment in Pakistan. Lemon Max Bar is product of Colgate Palmolive, which was launched in 1982 with scourer embedded. Primary shoppers of Max Bar are women/housewives that use brand for cleaning their household dishes. The consumers have approved high quality standards and benefits offered by Max Bar.

Max Bar with strong, lemon-like, grease cleansing action and name that gave impression of foreign brand. In 1985 the brand manager learnt that consumer perceive that scourer damaged the dishes then they launched max liquid unilever launched their Rin in this dishwashing segment. The competition become heat up but according to survey consumer used brand for their quality dishes utensils. Heavy promotion started between these two brands. Rin got positioning problems and product color confusion among the consumer taking advantage from that opportunity max take the game by heavy promotion and positioning of lemon power.

In 2001, Rin was change to vim and gave a challenge to the max bar and again competition starts. At the end of 2004 Rin vanish from the market and max become the leader in the market. Advertising Strategy: An advertising strategy is a campaign developed to communicate ideas about products and services to potential consumers in the hopes of convincing them to buy those products and services. Execution: The overall creativity of the dishwasher bar is good and is highly acceptable in the Pakistan’s existing market people having different income level can purchase it and it is available in every departmental store with a reasonable price.

The packaging is in green and yellow color with largely written MAX in the middle of the bar. The bar is not just limited to clean the utensils it also gives the fragrance of lemon. Creative idea: The company board made these question within them and find the solutions for right promotion and media the task is to choosing the media through which the customers and viewers perceive what the company to make them aware about the product and they have a brand loyalty about it after watching and using it. 1. Who is our audience? 2.

Where are we now in the minds of our target audience? 3. Where are our competitors in the minds of our target audience? 4. Where do we want to be in the minds of our target audience? 5. What is the consumer promise or the big idea? 6. What is the supporting evidence? 7. What is the tone of voice of the ad? Strategy: Max's marketing strategy is a notable example of successful frontal attack. The brand was able to find a credible and sustainable differentiator against Vim. Max took the position of an Antibacterial dish wash bar to fight Vim.

Max was Pakistan's first Anti-bacterial dish wash bar. As usual, the germs were at the receiving end. Max positioned itself as a dish wash bar that killed all the bacteria in the utensils. The positioning was very smart since Vim was positioned based on cleanliness. Max is innovative in creating awareness about the possibility of germs in utensils. There was also another smart idea from the brand. In theory, we often say that the differentiator should be relevant, sustainable and not easily copied by competitors. Communication Media:

The characteristics of the target consumer need to be consider as an advertiser decides what media to use. The types of media categories from which advertisers of choose include the following: * Print—Primarily newspapers (both weekly and daily) and magazines. * Audio—FM and AM radio. * Video—Promotional videos, infomercials. * Outdoor advertising—Billboards, advertisements on public transportation (cabs, buses). USP of MAX is… “Hara Kam Main Khara” In addition, the other one is “Ghulae Kam Zayada Chalae” AD Type:The Ad, which I presented, is the persuasive.

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