Marketing Research 13 Marketing Plan - Dentition Reliance & Repositioning By ridded Loan Amortization Schedule: 13 Comparative Analysis: 14 Pro-formal Cash flow Statement 15 Estimation of Net Sales and Total cost 16 Breakable Analysis 16 Introduction of Company Ala Chemicals Company was established on 26th September 1963 whose pioneer was Seed Meridian Alva. Dentition is one of the brands of Ala chemicals, launched in Pakistan. Dentition was first launched as toothpastes which was first branded toothpastes in the country. Dentition was one of the pioneers in the toothpastes industry and there were less competition.
Dentition was very popular till ass, we could Judge it from TV commercials and radio ads. But it slowly started losing its popularity because of change in cultural trends and values. People started using those products which were convenient and provided comfort and saved their time. Nowadays, people are more conscious about their health and fitness. The trend is towards showoff. Due to this trend and change in values, needs and wants of customers had mark great impact on company's reputation which directly impact negatively on Dentition products and in result company sales declined.
In order to cure company image and maintain their popularity and to retain their customers by fulfilling their needs and wants company switched from tooth powder to tooth paste, with the parent brand name Dentition tooth powder to Dentition toothpaste. Company's current vision and mission statement entail: Vision To continually improve our customers' satisfaction through innovative and value added product and to capture the dominant share of market.
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Mission Statement To be the nation's premier Consumer Products, Company focused on high quality oral dental care with least price for average Pakistani, which gives cleanliness, freshness ND preventing against dental problems. Values Enterprise I Accountability I Teamwork I Situational Analysis Empowerment Trust I Pakistanis dental care industry is changing significantly as lifestyles and habits are shifting. People want comfort in their lives. Their needs and wants are changing with the change in cultural values.
Till ass Dentition enjoyed the monopoly of toothpastes and didn't go for any new product development. Later on, customer preferences changed and customers' value migrated towards toothpastes from toothpastes. Then, it introduced toothpastes but due to existing competitive market, Dentition oldest position and market its toothpastes properly and couldn't approach its customers attractively. In addition to that the product packaging and features were less attractive and appealing than the other competitive toothpastes present in the market.
Moreover the products Dentition offering they don't include variety and their promotion is also less . They also have distribution issues. Market Summary segment and target will be accordance to it. Plenty of data is available for customer attributes and preferences, but the matter is with leveraging it in best way. Previously products by Dentition were mass-marketed but nowadays customer references are changing. So, along with mass marketing tools differential marketing tools will be used to identify segments and to target them according to characteristics of customers.
Target Market Dentition toothpaste and mouthwash will target to all age groups including children, youngsters, middle and old aged individuals but focus on children will be lower as compared to other segments. Moreover, its variants will be targeted to lower, lower- middle, middle and upper middle class families. Market Demographics/Market Segmentation Dentition Toothpaste and mouthwash will focus on following segments: Geographic Geographically we segment as metros (Islamabad, Lahore and Karachi) and non- metros (urban and sub-urban parts of Punjab and Kinds).
Demographic Age: Children, youngsters, middle and old aged. * Gender: Male and Female. * Income: Lower, lower-middle, middle and upper middle class families Behavioral * Lifestyle: People with modern life style who actually use the toothpaste at least once a day. Also, people who care about their gum disease are the second targeted customers. In fact, they desire products that can bring them many benefits including whitening the teeth along with reduction the gum diseases such as bad reheat, stains and plaque. Occasions: The purchasing of Dentition toothpaste happens monthly. Market Needs Now a days preferences of customers are shifting from Just using dental product for teeth cleaning to refreshing mouth, teeth whitening, gum protection and fragrances and due to these preferences different sorts of consumer have developed different sort of needs as flavors and tastes in the toothpastes. So strong market need exists in consumers for the verity in toothpastes and mouthwashes.
Given targeted segments are really price conscious to buy products so local product having labors and quality as international products with much lower price will be highly preferred in these segments. Market Trends Toothpaste is one of the most dynamic segments of the oral care market. The frequency of product launches in existing segments of the market and genesis of new product segments contributes to continuous evolution of the toothpaste market. Increase in sales of oral hygiene products in major markets worldwide has largely resulted from growing awareness of hygiene and product innovation.
Due to the increased use of Pan, Guitar, USAF, Safari, Answer and other tobacco items by an overwhelming majority of people in Pakistan, this region is regarded as being among those with highest number of mouth cancer cases in the world" said an eminent dental surgeon at a conference on Oral Diseases Awareness the Remedy that was held during the last year. With the advent of Aisha (Hubble Bubbly) this ratio has soared as most of the teenagers are smoking it on a daily basis at various up market joints since no age limit is defined for it.
Pakistani population clean their teeth daily, irrespective of the method employed. Eight per cent of the 180 million populations never clean their teeth, while 54 per .NET clean their teeth either on alternate days, weekly or monthly. According to the Gallup household Consumer Panel data the monthly penetration of toothpaste is around 60% in Urban Pakistan while that of tooth powder is around 15% whereas a small percentage of population also uses powder (ninja), linseed (USAF), elastic, and mistake.
Market Growth Oral care market has following sector: * Toothpaste * Toothbrushes * Mouthwash Pakistan is the 9th largest market with an estimate 180 million consumers. Market for Oral hygiene in Pakistan increased and growing at an average annual rate of 3. 4%. But now Oral hygiene had 8% value growth in 2008 to reach value sales of POKER. 6 billion. Toothpaste use is increasing with dynamic rate. The toothpaste market is around 7 billion rupees while the tooth brush and mouth wash markets are 300 million and 85 million rupees respectively.
Overall the market has registered a steady increase and more and more companies are emerging new advancements have led to the launch of a variety of high-priced, value-added multifunctional products in several oral care categories such as toothpastes and toothbrushes. Whitening toothpastes and products offering multiple functions are driving growth in he dentifrices segment. SOOT Analysis Strengths * Brand name of Dentition. * Good distribution network of Ala Chemical. * Experience of 40 years in oral care market of Pakistan. * Only Pakistani company to use "Truncheon" of dental quality. Strong brand recall. Weaknesses * Powder is considered as unhygienic and outdated way of cleaning teeth. * Lately started investing in research. * Working on low margins, thus having low profitability. * Poor advertising and promotion * Range contains only toothpastes and powder, no option like 2 in 1 or cream based. * Lack of awareness in new generation. Opportunities Obtain recognition from various dental association of Pakistan. * Dentition have potential for strongly positioning in the segment of gel, mouth wash and multi variant toothpaste. * Rising market demand for oral care products. Can target higher class and current generation by product development and promotion. * Trend of using flavored toothpastes along with mouthwashes. Threats * Strong competition with Close up and Colgate. * Low price barriers put by local competitors. * Bad word of mouth due to lack of awareness. Competition The competition among the different companies have always been brutal with nannies launching new products with new features regularly be it whitening toothpaste, mouth fresheners toothpaste or economic toothpaste, but having experience in industry plays important role to help for dealing with it.
Dentition previously had toothpastes monopoly in Pakistan, but as the preferences are changing so this monopoly was not of use due to low market share. For these upgraded toothpaste and mouthwash Dentition has intense competition with local as well as international dental products. Local Competitors: * Medical * English Toothpaste * Foreman's Toothpaste * Associated Toothpaste Protect Toothpaste International Competitors: * Colgate * Close up * posted * Sensory Initially the target would be local brands by making international brands as benchmarks.
Product Offerings The current Dentition products that Ala Chemicals is offering are: * Dentition Toothpastes * Dentition Toothpaste * Dentition floss * Dentition tooth brushes * Dentition ultra whitening pack The new product offerings would be: * Dentition Toothpaste (Calcium ; Fluoride) * Dentition Ultra Whitening Gel (new packing, new flavors like spear mint, pepper mint, lemon, ice and spice and so on) * Dentition Toothpaste for Smokers Dentition Toothpaste for Sensitive teeth * Dentition Mouthwash Key to Success Following are the key areas, on the basis of which, the product is planned to achieve a better place in the minds of the customers: 1.
Effective Advertising: Advertising is one of the necessary ingredients for a highly accepted product. So far, it has been noticed that Dentition has not paid enough attention to their advertisements. Their ads have always been low budget and less catchy to the audience, which reduces the probability of the customers to buy it. So, the company will have to focus on their ads and allocate a suitable amount of budget to advertisements. Moreover, it will have to choose a variety of media for advertisements to be displayed or broadcasted.
Television would be the most campaigns will also be used efficiently by preparing attractive ads. 2. Going with the flow: As Dentition was only available in powder, formerly, and most of the people still recognize it as an oral tooth powder. Customers today, think it as outdated, and they find toothpaste and other mouth fresheners more feasible, modern and effective, as compared to a tooth powder. Therefore, the company will have to emphasize more on the improvised forms of mouth freshener I. . Flavored toothpastes, toothpastes designed for specific people like smokers, old, or kids; Flavored mouth washes and so on.
In short, the company needs to 'go with the flow. 3. Proper Positioning: As the company does not advertise much, the customers have started having doubts about the product quality. The company will have to position its product as high quality toothpaste that is the best choice for customers' oral problems or diseases. Critical Issues: Following are the main critical areas which are causing the company various issues: 1 . Lack of customer acceptance: As compared to its competitors I. . Close-up, Colgate, English, Forehands, Soda White etc.
Dentition has the minimum acceptability among its target market. This is due to improper or no advertisement of the product, which results in the sales decline and customers shifting to the competitor's product. 2. Product development: One of the main issues is inactive product development. The company does not make their product look attractive to the customers, neither do they position it effectively, which caused the decline. The packaging is so obsolete and outdated that never catches the customer's eye. 3. Improper and inappropriate distribution:
Another major problem is the product's improper distribution. The product is only distributed to some selected areas and not in the reach of any wide range of the target market. 4. Less or no visibility: The product is not placed at attractive places at the shelves in stores. Inappropriate placement reduces the product's visibility to the customers. Marketing Strategy For the re-launch of Dentition, the marketing strategy would be quite different and agile from the existing one. There would be a new segment that Dentition would be serving I. E. Per middle income group in form of technology intensive high quality, organic and hygienic moderately higher priced toothpaste of Dentition. Dentition have to go for market penetration in order to acquire a sufficient customer base. Higher budget would be allocated on promotional activities of Dentition products for creating the long lasting relationship between potential consumers and Dentition products. Apart from that Dentition have to allocate more budget to its R;D department for working on new products and developing and designing the existing products.
Mission Ala Chemical's mission is to develop and sell high quality oral dental care that will future the dominant share of mind in all markets in which they are introduced. We will achieve our objective by providing the marketplace with high quality Oral Dental Care which caters to all their requirements including cleanliness, freshness and preventing against their dental problems. Customer satisfaction is and will be our market trends, monitoring the customer wants through regular retail audit, maintaining quality of the products and empowering our employees.
We believe on the labor laws, protect the rights of our employees by giving them excellent working environment and maintain the same standards of our product line. We respect our valued stakeholders and believe that doing business in this manner, along with being socially and environmentally responsible, will result in recognition as an industry leader. Marketing Objectives Here are the marketing objectives that this plan suggests to accomplish: * Achieve a steady increase in market penetration. * Achieve positive and steady growth in sales by 5- 10% annually. Go for new product development (variants of toothpastes, toothpastes for special reasons, attractive product packaging) * Increase visibility of Dentition products in metros (KILL) and hyper-malls. Decrease customer acquisition cost by 6 - 8% annually. Target Market Initially Dentition products were mass marketed because they were for every individual without any specifications for any segment. So, it worked in earlier times of Dentition. But as customer preferences and values changed with the period of time, this practice became obsolete.
Nowadays oral care has become a great concern for the population of urban and sub-urban areas and it is also becoming a concern in rural areas slowly. With increased usage of Pan, Guitar, Cigarettes, Answer and so on, concern for oral care is increasing. Toothpastes for smokers are getting popularity and are emerging as a new niche in oral care industry. According to the Gallup household Consumer Panel data About 36 per cent of the Pakistani population clean their teeth daily, irrespective of the method employed.
Eight per cent of the 180 million populations never clean their teeth, while 54 per cent clean their teeth either on alternate days, weekly or monthly. According to the Gallup household Consumer Panel data the monthly penetration of toothpaste is around 60% in Urban Pakistan while that of tooth powder is around 15% whereas a small percentage of population also uses powder (ninja), linseed (sauna), elastic, and mistake. Positioning Earlier Dentition products were positioned as low priced and quality oral care solution.
But due to its improper and mass marketing, it couldn't make a positive place in customers' mind. And nowadays consumers consider Dentition as a very local and low quality brand. According to this marketing plan, there would be functional positioning because nowadays concerns for healthy life style and oral care are rising. So, Dentition toothpastes and mouthwashes would be positioned on the basis of their functions like strong protection from germs, cavities and bad gums and o on for special purpose toothpastes like, sensitive toothpastes and toothpaste for smokers.
In addition to that Dentition would be serving premium income groups also, so it would be positioned as moderately low and as well as higher priced and high quality oral care brand. Strategy The main goal for Dentition would be to re-position itself to moderately low priced and high quality oral care products. For doing so, first of all it has to work on its products and redesign them. Ala Chemical has to invest in making high quality toothpaste and mouthwash for its target market. In addition to that it has to makers. It has to work on making its packaging more attractive.
Then Dentition has to increase customer awareness about its products and alter existing negative perception about its products. It can be done through various methods. It has to work on its website and to make it robust in appearance rather than its current classy and arcade like look. Dentition has to make its online appearance on social media in form of new product campaigns and schemes. For re-positioning another strategy would be to launch new, attractive and creative TV's of Dentition oral care products. Those TV's should be played on regular basis on TV and premium slots should be taken on prime entertainment and news channels.
In addition to that it has to advertise on billboards in Kills because, that's the major market that uses toothpaste as oral cleaner on daily basis. It has to make its presence count through making creative banner ads, rather than simple texture and plain text. Dentition should also go for BTL (Below the Line) activities to interact with individual customers. Those BTL activities can be flash mobs, and free sample testing in hypermarkets of KILL and so on. Marketing Mix The new marketing mix suggested by this plan comprises of the following approaches to product, price, place and promotion.
Product: The product categories of Dentition would be toothpaste and mouth wash. According to this plan the products which Dentition should launch are: 1. Dentition Toothpaste (Calcium ; Fluoride): This toothpaste is the simple white colored toothpaste having basic fluoride and calcium ingredients with improved packaging. This will be targeted to economical and lower class. 2. Dentition Ultra Whitening Gel: This toothpaste exists in Dentition's product line but it is not marketed so well. The new features of this product would be new packing, new flavors like spear mint, pepper mint, lemon, ice and spice and so on.
It will be targeted to middle income and upper middle income group with moderately higher price. 3. Dentition Toothpaste for Smokers: Quality solution for the people who get tough stains on their teeth due to smoking, guitar, pan and answer. 4. Dentition Toothpaste for Sensitive teeth: Toothpaste for sensitive gums. 5. Dentition Mouthwash: This would be entirely new product offering for Dentition product line. As mouth wash is considered a very healthy and proactive oral care solution which also works as mouth freshener.
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