marketing plan 1

MARKETING PLAN

1) SITUATION ANALYSIS

MAKKANI group for the first time are entering the toiletries business. We are launching a shampoo by the name of “DOCTOR DANDRUFF”. Although we have no experience in toiletries, but good market reputation and vast experience in FMCG goods are plus points for our firm.

1.1 MARKET SUMMARY

The market is full of players, but the two dominants ones are:

Procter & Gamble (P&G): They produce three different kinds of shampoos:

o HEAD & SHOULDERSo PANTENEo PERT PLUS

Unilever Pakistan Limited: They produce only one shampoo:

o SUNSILK

The market is widely open for smart players. The major competitors for “DOCTOR DANDRUFF” will be “HEAD & SHOULDERS” because of similar product nature. Major efforts will be required in all the departments to become stable in the market.

A brief statistics of shampoo and soap users in Pakistan are:

TABLE-1: GENERAL STATISTICS OF SHAMPOO & SOAP USERS

TOTAL POPULATION NON-USERS SHAMPOO USERS SOAP USERS

180 million 81 million – 45% 45 million – 25% 54 million – 30%

DOCTOR DANDRUFF (MAKKANI GROUP) 1

MARKETING PLAN


MARKETING PLAN

TABLE-2: GENERAL STATISTICS OF SHAMPOO USERS

TOTAL SHAMPOOUSERS

ANTI-DANDRUFFSHAMPOO USERS

OTHER SHAMPOOUSERS

45 million 18 million – 40% 27 million – 60%

Brief information about daily shampoo consumption in Pakistan is:

Per day shampoo consumption by one person: 5 ml Total per day shampoo consumption: 225,000 liters Total per year shampoo consumption: 82.125 million liters

1.1.1 MARKET SHARE

There are varieties of shampoos available, but we have classified them into two categories:

Anti-dandruff shampoos Other shampoos

ANTI-DANDRUFF SHAMPOOSThe statistics of anti-dandruff shampoos in Pakistan are:

TABLE-3: ANTI-DANDRUFF SHAMPOO USERS

ANTI-DANDRUFF SHAMPOO USERS

People with dandruff problems 72 million

Anti-dandruff shampoo users 18 million

Male 10.44 million (58%)

Female 7.56 million (42%)

Total per day consumption of anti-dandruff shampoos: 90,000 liters(18 million x 5 ml)

Total per year consumption of anti-dandruff shampoos: 32.85 million liters


MARKETING PLAN

(90,000 liters x 365 days)

TABLE-4: MARKET SHARE OF ANTI-DANDRUFF SHAMPOO PRODUCERS

MARKET SHARE OF ANTI-DANDRUFF SHAMPOO PRODUCERS

HEAD & SHOULDERS(P & G)

SUNSILK-WHITE (UNILEVER) OTHERS

17.082 million liters (52%)

11.826 million liters (36%) 3.942 million liters (12%)

OTHER SHAMPOOSThe statistics of other shampoos in Pakistan are:

TABLE-5: OTHER SHAMPOOS USERS

OTHER SHAMPOO USERS

People with no dandruff problems 108 million

Other shampoo users 27 million

Male 8.91 million (33%)

Female 18.09 million (67%)

Total per day consumption of other shampoos: 135,000 liters(27 million x 5 ml)

Total per year consumption of other shampoos:49.275 million liters(135,000 liters x 365 days)

TABLE-6: MARKET SHARE OF OTHER SHAMPOO PRODUCERS

MARKET SHARE OF OTHER SHAMPOO PRODUCERS

PROCTER & GAMBLE (P & G)

UNILEVER PAKISTAN OTHERS

18.7245 million liters 22.6665 million liters 7.884 million liters


MARKETING PLAN

(38%) (46%) (16%)

1.1.2 MARKET DEMOGRAPHICS

GEOGRAPHIC

The shampoo users in Pakistan are divided into three territories:

Cosmopolitan Areaso Karachio Lahoreo Islamabad

Semi-Cosmopolitan Areaso Hyderabado Faisalabado Sialkoto Rawalpindio Multano Peshawaro Quetta

Metropolitan Areaso Sukkuro Nawabshaho Larkanao Gujranwalao Gilgito Gwadaro Other territories

Statistics of consumption of shampoo and soap in above territories is appended below.


MARKETING PLAN

TABLE-7: TERRITORY WISE STATISTICS OF SHAMPOO & SOAP USERS

COSMOPOLITAN AREAS30.30%

SEMI-COSMOPOLITAN AREAS27.78%

METROPOLITAN AREAS41.92%

SHAMPOO SOAP SHAMPOO SOAP SHAMPOO SOAP

60% 40% 42% 58% 37.23% 62.77%

TABLE-8: COSMOPOLITAN AREA WISE STATISTICS OF SHAMPOO & SOAP USERS

COSMOPOLITAN AREAS – 30.30%

CITY SHAMPOO USERS % SOAP USERS %

Karachi 54.17% 45.83%

Lahore 64.71% 35.29%

Islamabad 63.16% 36.84%

TABLE-9: SEMI-COSMOPOLITAN AREA WISE STATISTICS OF SHAMPOO & SOAP USERS

SEMI-COSMOPOLITAN AREAS – 27.78%


Hyderabad 44.83% 55.17%

Faisalabad 46.15% 53.85%

Sialkot 42.17% 57.83%

Rawalpindi 43.37% 56.63%

Multan 38.57% 61.43%

Peshawar 36.17% 63.83%

Quetta 34.04% 65.96%

TABLE-10: METROPOLITAN AREA WISE STATISTICS OF SHAMPOO & SOAP USERS

METROPOLITAN AREAS – 41.92%


Sukkur 45.12% 54.88%

Nawabshah 42.03% 57.97%

Larkana 45.05% 54.95%

Gujranwala 44.78% 55.22%

Gilgit 39.13% 60.87%

Gwadar 36.36% 63.64%

Others 34.17% 65.83%


MARKETING PLAN

DEMOGRAPHIC

The shampoo users in Pakistan are both male and female of different age groups. Statistics are appended below:

TABLE-11 GENDER WISE STATISTICS OF SHAMPOO & SOAP USERS

TOTAL POPULATION180 million

SHAMPOO USERS45 million – 25%

SOAP USERS54 million – 30%

GENDER TOTAL GENDER TOTAL GENDER TOTAL

Male 86.40 million(48%)



Female 93.60 million(52%)



TABLE-12: AGE WISE STATISTICS OF SHAMPOO & SOAP USERS

AGE GROUP POPULATION SHAMPOO USERS SOAP USERS

Infants to 9 years 15.84 million(16%)

1.25685 million(7.935%)

14.58315 million(92.065%)

10 to 14 years 6.93 million(7%)

1.55925 million(22.50%)

5.37075 million(77.50%)


11.8503 million(57%)

8.9397 million(43%)


14.256 million(60%)

9.504 million(40%)


11.088 million(56%)

8.712 million(44%)

Above 50 years 11.88 million(12%)

4.9896 million(42%)

6.8904 million(58%)

TABLE-13: AGE WISE STATISTICS OF PER YEAR SHAMPOO CONSUMPTION

AGE GROUP SHAMPOOCONSUMPTION

(million liters)

ANTI-DANDRUFFSHAMPOO

CONSUMPTION (million liters)

OTHER SHAMPOOSCONSUMPTION

(million liters)

Infants to 9 years 2.2938 (2.793%) 0.3285 (1%) 1.9653 (4%)

10 to 14 years 2.8456 (3.465%) 0.9855 (3%) 1.8601 (3.77%)

15 to 25 years 21.6268 (26.334%) 8.541 (26%) 13.0858 (26.56%)

26 to 35 years 26.0172 (31.68%) 9.855 (30%) 16.1622 (32.80%)

36 to 50 years 20.2356 (24.64%) 9.198 (28%) 11.0376 (22.40%)

Above 50 years 9.1060 (11.088%) 3.942 (12%) 5.164 (10.48%)


MARKETING PLAN

BEHAVIOR FACTORS

Elite class is very quality conscious; hence the quality should be good otherwise they may turn to competitors.

Majority of the people in the country are price conscious and they buy the products if it is economical.

Absence of Halal ingredients may result in no sales.

If people will recognize that product is of DANISH origin then they will quit buying it no matter how good is the product.

A few of the people also buy products if it is suitable for their health. Hence if the product will be certified by a laboratory then it can increase sales.

1.1.3 MARKET NEEDS

Following are the major requirements needed in a product by customers in Pakistan.

High quality.

Economical prices.

Easy availability.

Halal goods.

Products with maximum features.

Toiletry goods better should be certified by any laboratory or doctor.

1.1.4 MARKET GROWTH

The market is growing every year by 4% in total.

The people who are using soap are switching slowly toward shampoo at a rate of 1.2% per year.

There are chances of growing more if people are made realized that anti-dandruff shampoo will not change the outlook of their hairs.

There are good chances to increase market share of anti-dandruff shampoo if it will be sell as a medicated product.


MARKETING PLAN

Product should be updated regularly to survive and to achieve growth.

1.2 SWOT ANALYSIS

1.2.1 STRENGTHS

Budget is high.

Company has a vast experience in FMCG goods.

The group has a strong reputation in the market.

Relationship with advertisement agencies is good.

Product is the highly established and one of the top brands in Denmark.

Higher management is experienced, trained and qualified.

Product is different both for males and females.

Available in pouch, which is offered by none of the shampoo companies.

Product contains halal ingredients and is certified by laboratories in U.K and U.A.E.

1.2.2 WEAKNESS

High costs because of no production facility.

Only a few distributors from companies presently appointed distributors have experience to market and distribute toiletry goods.

The company itself has no experience in toiletry goods.

Staff and lower levels are inexperienced.

Product is not resistant to hair color.

Warehouses in Balochistan and N.W.F.P are small.

Warehouses in Interior Sindh & Punjab are not in a very good shape.

Lack of creative people in marketing department.

1.2.3 OPPORTUNITIES


MARKETING PLAN

If there is one big player in the market and if anyone takes a small portion of their share then it does not affects them.

Ground to convert people who use soap.

Ground to convert people from using “other shampoos” by selling “anti-dandruff” shampoo as a medicated product.

Chances to gain ground in semi-cosmopolitan and metropolitan areas as people have started changing their life styles.

1.2.4 THREATS

Political conditions of the country are not good and can affect the product.

Inflation rate in country is alarming so purchasing power of people is reduced.

Oil prices are going very high so cost of everything like, raw materials, labor wages, transportation costs etc are increasing.

Currency rates in Pakistan are getting stronger and stronger which increases the cost and ultimately prices.

People in semi-cosmopolitan and metropolitan areas use soaps a lot, especially metropolitan areas.

People have a perception that usage of anti-dandruff shampoo will disturb the outlook of their hairs.

Head & Shoulders (P & G) is the biggest competitor.

Unilever is consistently launching new products in their existing brand “SUNSILK”.

Retailers are hesitant to sell new products.

Wholesalers are demanding high commission to distribute the product.

If people will recognize that our product is of DANISH origin than they will quit buying the product.

During the test marketing period there are chances that some other company might also launch the similar product.

1.3 KEYS TO SUCCESS

Good quality.


MARKETING PLAN

Economical prices.

Special incentives from the company. Easy availability.

1.4 CRITICAL ISSUES

The wholesalers and retailers will not distribute or market the products if minimum 5% commission is not provided to them.

The goods should be halal otherwise there will be no sales.

The company should announce special incentives and schemes for their customers from time to time.

The company should keep on updating the product.


MARKETING PLAN

2) MARKETING STRATEGY

2.1 MISSION

To provide consumers in Pakistan with the right shampoo for their hairs in economical prices containing halal ingredients.

2.2 GOAL

To make our brand the best selling brand of the entire country in the next 10 years.

2.3 OBJECTIVES

To achieve at least 70% sales of Head & Shoulders in the 1st year of operations.

To increase profit margin by 2% in 2nd year of operations.

To gain at least 45% market share in the next 5 years.

To make our products available at 75% of shops in semi-cosmopolitan and metropolitan areas of the country in the next 5 years.

To make our products available at all shops in cosmopolitan areas of the country in the next 5 years.

To start our own production facility after 3 years of operation.

Maintain a significant research and development budget to spur future product developments.

To launch other varieties in our product.

To export finished goods to Denmark.

Decrease the production costs by 5% in the 2nd year of operations.

Decrease customer acquisition cost by 2.5% in the 2nd year of operation.

2.4 TARGET MARKET

Cosmopolitan Areaso Karachio Lahore


MARKETING PLAN

o Islamabad


MARKETING PLAN

TABLE-14: TARGET MARKET IN COSMOPOLITAN AREAS

GENDER AGE GROUPSMale 15 to 35 yearsFemale 15 to 30 years

Semi-Cosmopolitan Areaso Hyderabado Faisalabado Sialkoto Rawalpindio Multano Peshawaro Quetta

TABLE-15: TARGET MARKET IN SEMI-COSMOPOLITAN AREAS


Metropolitan Areaso Sukkuro Nawabshaho Larkanao Gujranwalao Gilgito Gwadaro Other territories

TABLE-16: TARGET MARKET IN METROPOLITAN AREAS


2.5 POSITIONING

DOCTOR DANDRUFF will be positioned on the basis of high quality and its distinctive feature i.e. separate product formula for both males and females. The brand is the top most selling brand of Denmark and the vast experience of higher management will help to promote it in Pakistan.


MARKETING PLAN

2.6 MARKETING MIX

2.6.1 PRODUCTS

The name of our product is DOCTOR DANDRUFF.

It is the top most selling brand of Denmark.

The product has started gaining ground in other European countries like Norway, Sweden, Netherlands, Ireland, Iceland and Switzerland.

The product is available with features like anti-dandruff and hair conditioner.

The product contains all halal ingredients.

The most distinctive feature of our product is its formula. We are producing different product for both males and females under a single brand name. Research has shown that there are different reasons for dandruff in males and females.

The product will be available in below stock keeping units (SKU).

o 5 ml Sacheto 100 ml Pet bottleo 100 ml Pouch bottleo 250 ml Pet bottleo 500 ml Pet bottle

2.6.2 PRICE

The product will be charged in Pak Rupees.

The price of below proportions will be different from the prices of Head & Shoulders.

o 250 ml Pet bottleo 500 ml Pet bottle

The company will try to reduce the prices of their products next year by 2% to 5%.

Special promotional prices will be announced three times in 1st year in the months of Rabi-ul-Awwal, Ramazan/Eid-ul-Fitr, and Eid-ul-Azha.

Different pricing and payment policies will be adopted for retailers and wholesalers.

A maximum discount of 20% will be offered.


MARKETING PLAN

2.6.3 PLACE / DISTRIBUTION

CHANNELS

Cosmopolitan Areas – Karachi


PRODUCER

RETAILERS (MAKRO, IMTIAZ etc)

WHOLESALERS

END-USERS SHOPS

END-USERS

MARKETING PLAN

Cosmopolitan Areas – Lahore

Cosmopolitan Areas – Islamabad


PRODUCER

MAKRO & METRO

WHOLESALERS

END-USERS SHOPS

END-USERS

PRODUCER

WHOLESALERS

SHOPS

END-USERS

MARKETING PLAN

Semi-Cosmopolitan Areas

Metropolitan Areas


PRODUCER

WHOLESALERS

SHOPS

END-USERS

PRODUCER

WHOLESALERS

SHOPS

END-USERS

MARKETING PLAN

STRATEGIES FOR PRODUCTS PLACEMENT

Products will be places at following 4 points in retail stores.

o Cosmeticso Toiletrieso Food Itemso Electronic Goods

In toiletries section of retail stores the products will be placed at start and end.

In other sections of retail stores the products will be placed in center.

In retail stores the product will be placed in company made holders.

Product will be kept in front in shops and small retail stores.

Hanging cards, Panaflexes and Posters will be placed in retail shops and shops.

Transportation mode will be vans, shehzores and air planes.

Company will have warehouses in Karachi, Lahore, Islamabad, Faisalabad, Quetta & Peshawar.

For access to centrally located cities and interiors in Sindh there will be a warehouse in Sukkur.

For access to centrally located cities and interiors in Punjab there will be a warehouse in Sialkot.

2.6.4 PROMOTION

The media for advertisement will be electronic, print and billboards.

The ad will run of all the channels 25 times a day.

The ad will be updated after every 1 month.

The peak time for advertisement will be during talk shows and reality shows.

The product will be sold as a medicated product, recommended by the doctors.

Heavy advertising campaign will be done during Olympic games and ICC Champions trophy.


MARKETING PLAN

All the magazines will carry the ad for 3 months, and after 3 months 25 fashion magazines and other top 25 magazines will carry the ad for the rest of 9 months. After 1 year the ads will be placed in top 10 fashion magazines and other top 15 magazines.

All the English newspapers, JUNG newspaper and EXPRESS newspaper will carry ads for 3 months, and after 3 months top 5 English newspapers, JUNG newspaper and EXPRESS newspaper will carry the ads.

The ad will run in URDU language and provincial language of respective province.

One ad agency will be appointed for advertisement matters.

The company will also take part in exhibitions.

Test marketing will be done by distributing products allover the country in college, universities, and retail stores by company appointed persons. A survey will be conducted from 500 persons after 1 year to get the feedback about the product.

Company will offer sales promotion materials three times in 1st year of operations.

A special bumper prize will be offered by company for 4 persons (2 persons after every 6 moths) to visit production facilities in U.K.


MARKETING PLAN

3) FINANCIALS

3.1 COSTS & EXPENSE BREAKDOWN

3.1.1 ESTIMATED EXPENDITURE BREAKDOWN

TABLE-17: ESTIMATED EXPENDITURES

S# DESCRIPTION COST PER LITER(PAK RUPEES)

1 Import Price per liter 40

2 Import Expenses per liter 10

3 Finishing Expenses per liter 30

4 Factory Expenses per liter 20

5 Distribution Expenses per liter 30

6 Marketing Expenses per liter 150

7 Office Expenses per liter 100

8 Miscellaneous Expenses per liter 50

9 Commission Expenses 20%

3.1.2 TOTAL COSTS

Total quantity to import per year 12 million liters

Import Price (12 million liters x Rs. 40) PKR 480,000,000Import Expenses (12 million liters x Rs. 10) PKR 120,000,000 Total Import Cost per year PKR 600,000,000Add: ExpensesFinishing Expenses (12 million liters x Rs. 30) PKR 360,000,000Factory Expenses (12 million liters x Rs. 20) PKR 240,000,000 Total Expenses per year PKR 600,000,000

TOTAL COST OF GOODS PER YEAR PKR 1,200,000,000

3.1.3 TOTAL OPERATING EXPENSES

Distribution Expense (12 million liters x Rs. 30) PKR 360,000,000Marketing Expenses (12 million liters x Rs. 150) PKR 1,800,000,000Office Expenses (12 million liters x Rs. 100) PKR 1,200,000,000Miscellaneous Expenses (12 million liters x Rs. 50) PKR 600,000,000 Total Expenses per month PKR 3,960,000,000


MARKETING PLAN

TABLE-18: COMMISSION EXPENSES

SIZES SALES TARGETQUANTITY

PRICES(PAK RUPEES)

SALES AMOUNT

(PAK RUPEES)

YEARLY COMMISSION

AMOUNT(PAK RUPEES)

5 ml Sachet 956,592,000 3 2,869,776,000 573,955,200

100 ml Pet Bottle 29,893,500 68 2,032,758,000 406,551,600

100 ml Pouch Bottle 11,957,400 68 813,103,200 162,620,640

250 ml Pet Bottle 7,174,440 145 1,040,293,800 208,058,760

500 ml Pet Bottle 2,391,480 290 693,529,200 138,705,840

1,008,008,820 7,449,460,200 1,489,892,040

GRAND TOTAL OPERATING EXPENSES PKR 5,449,892,040

3.2 PRICING & PROFIT MARGIN

TABLE-19: PRICING & PROFIT MARGIN

SIZES COST PER UNIT (PAK RUPEES)

EXPENSES PER UNIT(PAK RUPEES)

PRICES(PAK RUPEES)

PROFITMARGIN

5 ml Sachet 0.50 2.25 3 8.33%

100 ml Pet Bottle 10 46.60 68 16.76%

100 ml Pouch Bottle 10 46.60 68 16.76%

250 ml Pet Bottle 25 112.50 145 5.17%

500 ml Pet Bottle 50 224 290 5.52%

3.3 PRICE COMPARISON

TABLE-20: PRICE COMPARISON

SIZES HEAD &SHOULDERS

SUNSILK-WHITE DOCTOR DANDRUFF

OTHERS AVERAGE PRICES

5 ml Sachet PKR 3 PKR 3 PKR 3 PKR 3

50 ml Pet Bottle PKR 36 PKR 35 - PKR 32

100 ml Pet Bottle PKR 68 PKR 70 PKR 68 PKR 65

100 ml Pouch Bottle - - PKR 68 -





MARKETING PLAN


3.4 SALES FORECASTING

TABLE-21: SALES COMPARISON – QUANTITY WISE

SIZES HEAD & SHOULDERS

(SALES INMILLION LITERS)

HEAD &SHOULDERS

(SALES INQUANTITY)

DOCTORDANDRUFF(SALES IN

MILLION LITERS)

DOCTORDANDRUFF(SALES IN

QUANTITY)

5 ml Sachet 4.2705 854,100,000 4.78296 956,592,000

50 ml Pet Bottle 2.5623 51,246,000 - -

100 ml Pet Bottle 3.07476 30,747,600 2.98935 29,893,500

100 ml Pouch Bottle - - 1.19574 11,957,400

150 ml Pet Bottle 1.7082 11,388,000 - -

200 ml Pet Bottle 2.39148 11,957,400 - -

250 ml Pet Bottle 1.7082 6,832,800 1.79361 7,174,440

500 ml Pet Bottle 1.36656 2,733,120 1.19574 2,391,480

17.082 969,004,920 11.9574 1,008,008,820


MARKETING PLAN

TABLE-22: SALES COMPARISON – AMOUNT WISE

DOCTOR DANDRUFF HEAD & SHOULDERS

SIZES SALES QUANTITY

PRICE(PAK RUPEES)

TOTAL AMOUNT(PAK RUPEES)

SALESQUANTITY

PRICE(PAK RUPEES)

TOTAL AMOUNT(PAK RUPEES)

5 ml Sachet 956,592,000 3 2,869,776,000 854,100,000 3 2,562,300,000

50 ml Pet Bottle - - - 51,246,000 36 1,844,856,000

100 ml Pet Bottle 29,893,500 68 2,032,758,000 30,747,600 68 2,090,836,800

100 ml Pouch Bottle 11,957,400 68 813,103,200 - - -

150 ml Pet Bottle - - - 11,388,000 100 1,138,800,000

200 ml Pet Bottle - - - 11,957,400 125 1,494,675,000

250 ml Pet Bottle 7,174,440 145 1,040,293,800 6,832,800 150 1,024,920,000

500 ml Pet Bottle 2,391,480 290 693,529,200 2,733,120 295 806,270,400

1,008,008,820 7,449,460,200 969,004,920 10,962,658,200


marketing plan 1

Documents

shampoos users

shampoo producers16

brief statistics of

day shampoo consumption

year shampoo consumption

daily shampoo consumption

pie chart of shampoo

o sunsilk