Dr.Fresh Oral and Personal Care Products [Marketing Plan] Presented by: DHS International April 17th, 2010 TABLE OF CONTENTS 1.0 Executive Summary ……………………………………………………. 1.1 Dr. Fresh Introduction ………………………………………………………………. 2.0 Situation Analysis………………………………………………………………… 2.1 Market Summary …………………………………………………………………….. 2.1.1 Economic Condition of Pakistan ………………………………………… 2.1.2 Future Prospects ……………………………………………………………... 2.1.3 Oral Care Market Overview ………………………………………………………….. 2.1.4 Competitor’s Overview………………………………………………………………. 2.1.5 Brand Sales Trend ……………………………………………………………………... 2.1.6 Growth Trend …………………………………………………………………………. 2.2 Swot Analysis ……………………………………………………………………….. 2.2.1 Strengths ……………………………………………………………………………… 2.2.2 Weaknesses …………………………………………………………………………… 2.2.3 Threats ………………………………………………………………………………… 2.2.4 Opportunities …………………………………………………………………………. 2.3 Keys to success ………………………………………………………………………. 3.0 Marketing Strategy 3.0.1 Mission …………………………………………………………………….. …………………………………………………………………... 3.0.2 Marketing Objectives …………………………………………………………………. 3.0.3 Target Market …………………………………………………………………………. 3.0.4 Positioning …………………………………………………………………………….. 4.0 Marketing Mix …………………………………………………………………… 4.1 Product …………………………………………………………………………….… 4.1.0 Categorization ……………………………………………………………………….… 4.2 Price ………………………………………………………………………………….. 4.2.0 Competitor’s Pricing …………………………………………………………………... 4.2.1 Dr. Fresh Product Selection &Pricing …………………….. …………………………. Euromonitor International report on cosmetic & toiletries in Pakistan (May 2006).4..4 Promotion …………………………………………………………………………… 5.4.4. . FRESH INTRODUCTION Dr. Firefly flashing toothbrushes.4 Details ………………………………………………………………………………. Dr.3.0 Soft Launch …………………………………………………………………………… 5. Dr. Binaca breath sprays and Infectiguard hand sanitizers. competitor’s report from Lahore chamber of commerce.3 Opening order ………………………………………………………………………… 6. 5.1 Plan ………………………………………………………………………………….4. Fresh Dailies. The different sources include internet studies.0 Conclusion ……………………………………………………………………….4. 5. 1. 4. The purpose of gathering this data is to ensure the market scenario of oral care brands.0 EXECUTIVE SUMMARY The report covers the information gathered through different sources about the oral care brands operating in Pakistan. 5. market surveys.2 Time ………………………………………………………………………………… 5. the current economic situation and the feasibility of launching a new oral care brand ‘Dr. 1.1 Distribution …………………………………………………………………………….0 Brand Launch ……………………………………………………………………. Fresh includes the Dr.1 Marketing Campaign ………………………………………………………………… 5.2Budget Spread ………………………………………………………………………… 5. Fresh an American Oral and Personal Care brand offers quality and innovative products for children and adults.3 Budget ……………………………………………………………………………… 5.1 DR. Fresh Travel kits. Dr.3 Placement …………………………………………………………………………… 4. Fresh’ in the existing market of Pakistan. Fresh Tek brand toothbrushes. therefore.0%.The above brands include toothbrushes. 2.1 MARKET SUMMARY 2. Fresh at the start. 2.0% and the growth projection is likewise upgraded to 6. toothpaste. Dr.4% from 6. 2. dental floss. will be served as product centric to enlighten people about product’s features and to register them in the country. in Pakistan. The level of consumption is overall slow but due to increased brand awareness and with the rising standards of living the overall consumption is further expected to increase in future. breath fresheners and hand sanitizers.1. The economy is showing improvement giving hope to entrepreneurs and businessmen across the board.1 Economic Condition of Pakistan Pakistan’s economy which is suffered immeasurably due to global slowdown and domestic financial crises are slowly recovering by getting back on the track. But this recovery is expected to be a slow recovery. By looking at the previous trends. the competition initially will be tough and a little difficult to capture a big market share. Pakistan is blessed by illegal imported goods and these traders are making huge profits every year. In the current year.0 SITUATION ANALYSIS Dr. (source: The Dawn Media Group) On the other hand. the economy’s real GDP growth is expected to rise by 3. a major concern for local and multinational companies. whitening mouthwashes.1. Fresh is entering into the market where big players of oral care brands already exist. the cosmetic & toiletries industry has made a progressive growth within the country especially between the period of 2002 – 2007.2 Future Prospects . mouthwashes. Although the government is trying to prevent this kind of business but as yet there is no formal trading association for the segment. Therefore. Sparkle Macleans.1. 2.3 ORAL CARE MARKET OVERVIEW ‘The market for Oral hygiene in Pakistan increased between 20022007. growing at an average annual rate of 3. hair care and oral hygiene products. Pepsodent. Aquafresh Shield Smoker’s Ezigrip Medicam Touchme. it can be seen that more international brands are entering into the market and expanding day by day. Soda white tooth paste The other local and international brands are also present in Pakistan amongst which few of them are entering through improper channels and are available in the market. people prefer buying quality products over prices. all cosmetics and toiletries sectors are in their infancy.4 COMPETITOR’S OVERVIEW The following are few of the Oral Care brands operating in Pakistan • • • • • • • • • • Crest. COMPETITOR’S STUDIES . it is predicted that the cosmetic and toiletries market will exceed PKR60 billion by 2015. shower products. Oral-B. Colgate. Due to the improved living standards of upper class people in Pakistan. Minto Close-up. Consumers still do not have a lot of disposable income. According to the Euromonitor International report May 2006.com/detail) The cosmetics and personal care markets had average annual growth rates of 14%. In Pakistan. 2. so there is room to grow across the board.bharatbook.4%’ (Source: www.1.Cosmetics and toiletries market in Pakistan has a very high growth potential and is expected to grow further. so the most promising area for manufacturers is hygiene essentials – bath. Signal Doctor. the local Marriana International won shares in the sector of oral hygiene. Close Up toothpaste brands have reached more than 44 million children with school-based oral hygiene programmes over 1996–2008 . lotion etc are manufactured under the two brand names i. Pepsodent.Following are the studies and product information of few of the leading Oral Care brands in Pakistan: 1.6%” ‘Unilever sustainable Development overview 2008’ Unilever’s Signal. shampoos. facial and bleach creams. Touchme Touchme includes the following line of oral care products • • • • Touchme Touchme Touchme Touchme new natural toothpaste minto toothpaste minto gum toothpaste minto mouthwash 2. has a network of distribution channel throughout Pakistan.e. and claimed that it was the best toothpaste in the oral hygiene category. hair colours. Market leader amongst local manufacturers of toiletries and healthcare products. MARRIANA INTERNATIONAL In Pakistan. UNILEVER “Personal Care products – underlying Sales Growth 6. Distributors and sub-distributors have been appointed at several locations to ensure free-flow of products throughout the country with constant monitoring by the Field Force engaged for this purpose. They includes the following products in their specific ranges Medicam Dental Cream The company kept the price of its Medicam toothpaste low. talcum powders. The company backed its product with huge advertisements supported by the Pakistan Dental Council. Wide range of products including toothpastes. MEDICAM and TOUCHME. shaving creams. TOOTH BRUSHES Colgate Navigator Plus Colgate Navigator Plus is designed to gently provide a thorough and comfortable clean. LAKSON GROUP Colgate Palmolive Pakistan ltd. dental institutes etc in working towards a shared objectives. It follows the contour of teeth and gums for superior plaque removal and has a rubber grip that gives a relaxed grip and easy maneuvering. Its innovative and flexible head and neck helps avoid excessive pressure. As a market leader in oral care products. reducing the risk of injury to gums. Colgate took the initiative to increase awareness about oral health by developing close relations with dental professionals under their dental professional programs. Colgate Palmolive Pakistan ltd includes the following variants in oral care products Tooth Pastes • Colgate great regular Flavor • Colgate Herbal • Colgate Max Fresh • Colgate Misvak • Colgate Total Partners with dental professional such as Pakistan Dental Association.Align partnership activities with the World Dental Federation to focus on day and night brushing campaign. It is clinically tested to remove more plaque than an ordinary flattrimmed toothbrush. over 10 million in Asia alone 47% of sales from developing and emerging markets 3. Distribution & Retailing Worldwide • • • Sales through 10 major retail chains Many of their sales are through millions of small shops. . People also do prefer buying oral care products from pharmacies therefore.1.trim bristles that reach deep in between teeth for a thorough cleaning. Colgate Plus Colgate Plus with its unique diamond shaped head provides easy access to the back teeth for an exceptional cleaning.5 BRANDS SALES TREND Consumers are increasingly favoring supermarkets. Colgate Premier Colgate Premier comes with V. More and new international brands are also entering into these stores which are a big attraction for customers. Its polished bristles clean teeth effectively while protecting tooth enamel and gums. due to the increased trend of different special discounts and other promotions in big stores. Furthermore. Its curved bristle design effectively sweeps away plaque from non. Its front power-tip bristles effectively clean teeth and it’s diamond head shape facilitates easy access to those hard to reach places at the back of the mouth.1. 2.6 GROWTH TREND .flat areas. Its Tapered Diamond Head is shaped for easy access to back teeth. Colgate Extra Clean Colgate Extra Clean with its colored front tip bristles effectively reaches the back teeth to provide superior cleaning. big retail stores and other departmental stores. they are also in trend in Pakistan. 2. The major reason is that consumers find it easy to get everything under one roof as it saves their time. Its rubberthumb grip allows comfortable handling and control when you brush. consumer gets attracted and likes to shop from here. Colgate Super Flexible Colgate Super Flexible has an advanced bristle design that cleans teeth surface and reaches deeper between them for thorough cleaning. 9 2005 8.3 Unilever Pakistan Ltd Colgate Palmolive Ltd Marriana International Johnson & Johnson Werrick Health Care (Pvt) ltd English Laboratories Mega Lion Indonesia Roomi Enterprises (Pvt) ltd SmithKline Beecham ltd Pak .7 0.2 4.3 1.7 0.1 Retail Sales: % Value Growth 2000 .5 2.6 0.4 1.3 1.6 2.4 4.7 2.6 2.8 1.1 2.6 8.3 2004 18.4 1.9 9.According to the Euromonitor International Report May 2006 the oral hygiene sector has experienced following growth rates: Retail Sales: 2003-2005 (PKR billion) 2003 7.4 2.6 0.1 1.5 4.6 0.5 2005 18.1 Company Shares by Retail Value 2003-2005 2003 17.6 0.2005 2000-2005 (Total) 19.1 8.6 2004 7. 4 2.3 3.2.1 2. Thus.2.1 Strengths International brand Quality products Complete Range of oral hygiene Innovative products with special features Weaknesses High prices of few products as compared to the competitors’ Not a worldwide known brand Opportunities Participation in a growing market – • • • • 2.7 Oral-B Colgate 6.3 • .30.2 • • 2.5 1.3 0.3 0.2 SWOT ANALYSIS 2.3 1.5 0.8 Medicam Close-up Aqua Fresh Sensodyne Fresh & White Pepsodent Soda White tooth paste Sparkle Doctor Ezi Grip Shield The above studies have shown that the biggest market share in Pakistan till of 2005 is of Colgate.2 0.Brand Shares by Retail Value 2003-2005 In all the segments of Cosmetic & Toiletries 2003 % 1.8 0.2. Colgate is the market leader in Oral Hygiene products in Pakistan market share wise as well as range wise. 2. wide and unique range of toothbrushes in kids segment.2 MARKETING OBJECTIVES . thus. 3. Fresh’s product in each store.1 MISSION Our mission is to make Dr. 3.e. Increased competition Entrance of new player with heavy investments Economic instability • • • • 2. Threats High investments of competitors in marketing.. Our primary focus will be on the expansion of distribution of the network so that our brand becomes people’s choice when they find Dr.0 MARKETING STRATEGY The marketing strategy will be based on the availability of the products i.0.3 KEY TO SUCCESS • The key to success is ‘Availability’ 3.2.. to attract customers by making them aware of the different and more innovative features of the products. availability etc. distribution.4 to make consumers trust our brand to make it a preferred oral care brand To break the customer loyalty towards other oral care brands and captures a good market share.0. developing visibility of the brand which will be promoted through good marketing & advertising campaigns. Fresh a preferred brand in oral care industry in Pakistan and to own the biggest.• 2. Officers & Executives Jr.Qualitative • To make the brand customer’s choice in toothbrushes through proper marketing and advertising Quantitative • To achieve a sales target of PKR 6. Industrialists. Superior Level. Skilled workers.0.4 TARGET MARKET SEC A1 According to Qualification Grad & Post Grads (General & Professional) Grad & Post Grads (Professional) SSC+ < Graduation According to Occupation Businessman. level.Salesmen C Schooling 5-9 years Skilled workers. Clerk. Fresh launch in Pakistan. 3. .5 million during the first year of Dr. Salesmen D Schooling upto 4 yrs Clerk. Petty Traders. Officer & Executives Shop owners. Petty Traders. Petty Traders. Clerk. Self employed professionals.Salesmen Skilled/Unskilled. Salesmen A2 B1B2 Clerk. Dr. The communication will help developing the brand’s image which will be worked on thoroughly.5 POSITIONING Dr. Dr. 3. 2. good quality and innovative products.1 PRODUCT Initially. Dr. Dr. Fresh will be positioned as a premium brand in oral hygiene and oral care products in Pakistan due to its high prices. Dr. 4. Customer approach towards the brand will be based on ‘developing proper brushing habits’ in kids and ‘cleanliness and freshness of the mouth’. 4. Petty Traders. They might not have the purchasing power and also due to the lack of awareness of oral hygiene.0. According to the above Socio Economic Classification in Urban areas. The C category people will might buy the product but they would not be our loyal customers.0 MARKETING MIX 4. our targeted customer falls in the group A1. A2 and B1B2. we will introduce the following brands in Pakistan 1. 3. Fresh Fresh Fresh Fresh Fresh Dailies Tek Firefly Marvel Oral Care . 5.E Illiterate Skilled/Unskilled. 2 PRICE DR. Mentioned below are competitor’s prices of only few products and also the given and proposed prices for Dr. Fresh Oral Care Dr.4. Fresh’s prices of Dailies.1. 4. FRESH Adults’ range Kids’ range Dr. Dr. Fresh Dailies Tek Dr. Firefly and Marvel are realistic and affordable where prices of Travel kits and Oral Care are a bit higher and need to be revised. Fresh Firefly Dr. the prices of product (mentioned below) is kept where it will not harm the brand’s image yet is affordable to purchase for our targeted customers. Tek.0 Categorization 4. Fresh’s products.0 Competitor’s pricing .2. Fresh Marvel To reflect the quality offered and to compete with the strong competitors already exists in the market. Prices of few of the products of other brands are mentioned below. This is just to get an idea of competitor’s prices in the market.Malaysia Jordan 275 180 35 110 140 35 20 120 80 P&G: Oral-B-exceed P&G: Oral-B . PRODUCT FLOSS Essential Floss Whitening Floss Power Floss .REACH Johnson & Johnson PRICE 160 135 340 .Vision Colgate-Palmolive: Colgate Colgate-Palmolive: Colgate Colgate-Palmolive: Colgate Colgate-Palmolive: Colgate Colgate-Palmolive: Colgate WERRICK: Smoker’s WERRICK: Smoker’s GlaxoSmithKline: Aquafresh Johnson & Johnson: Reach Johnson & Johnson: Reach Johnson & Johnson 110 50 80 50 80 50 20 50 180 150 145 125 340 Company & BRAND P&G: Oral-B Johnson & Johnson . simple) Single medium (zig-zag) Power Brushes Kid’s Range Stages3 -Disney(stationary set) Stages4 Kids2 Training Tooth Brush KIDS Giggles Flex Junior Junior Excellent Jordan Junior TOOTH PASTE Kid’s Toothpaste P&G: Oral-B P&G: Oral-B Colgate-Palmolive: Colgate GlaxoSmithKline: Macleans P&G: Crest Shield Corporation Ltd: Shield Shield Corporation Ltd: Shield CONCORD .electric TOOTH BRUSH Adult’s Regular Criss Cross Bristles Triple Fan Bristles Whitening Extra Clean with tongue cleaner 360˚ whole mouth clean Zig Zag Plus PREMIER Smoker’s with hygiene cap Extra hard texture Flex Direct Reach Twin Pack (regular. 2.Tweety Other Flavored (Chinese) Adult’s Toothpaste Oral-B Others (an average price of larger size toothpaste falls between) Colgate 170 85 110 Upto 100.200 P&G: Oral-B 4. Fresh Product Selection & Pricing Item Description DAILIES DRF Tear Drop Mint Floss 130 YD Fresh & Clean Toothpaste DRF Revolution 2pk soft DRF Revolution 2pk medium DRF Massage Prop 2pk DRF 2pk brush & cover DRF JR. DRF Classic CMP to OralB Adv Soft DRF Classic CMP to cool wave Adv Soft DRF Classic CMP to Reach Adv Soft 196 216 221 221 201 218 98 98 98 98 Propose d Price TEK Professional Professional Professional Professional Professional Excel Soft straight soft straight medium straight firm angled soft angled medium 135 135 135 135 135 189 .1 Dr. Fresh will be done through regular distributors and through wholesalers.Excel Medium 189 FIREFLY FRF Barnyard Music TB FRF Original TB FRF Step 1 Lightup TB Float’ n FRF TB 42MM FRF Floss 4 cnt FRF Adult Flashing TB FRF Toothpaste 398 287 373 392 58 290 352 MARVEL HEROES Marvel Heroes Travel Kit with key chain buddy Spiderman Barrel brush with suction cup + round cap with 3D sticker Spiderman Barrel brush Spiderman Travel Kit Ziggly Spiderman Sccpted brush 285 207 193 232 265 ORAL CARE DRF Turbo with ever ready batteries 320 4. Karachi. Rawalpindi and Faisalabad. Islamabad. Initially 5 main cities will be covered which includes Lahore.1 Distribution The distribution of Dr.3 PLACEMENT The channel through which product will be transferred to the retailers to be consumed by the end user will be through below mentioned distribution 4.3. . 4 DETAILS .1 PLAN Dr. 5. Merchandising & other POS material Direct Marketing E-Marketing BTL Activities Public Relations 5. Fresh will be started off in Pakistan with a soft launch. 2010 till minimum of 30-45 days of period 5. A heavy marketing campaign will be run after 3 months for the awareness and to establish the brand.4 PROMOTION Promotions will be run throughout the year based on Special Offers Advertising in print and electronic mediums Outdoor.0 BRAND LAUNCH 5.3 BUDGET PKR 5.4.2 TIME Soft Launch – at the time of availability of the products Marketing Campaign – September 25th. Instore Branding.5 million 5. Along with this Posters will be placed instores to tell people about the brand availability in the stores. Fresh will be started at the same time which will cover TV and print Ads.4. They will distribute flyers among adults and kids. Flyers will also be distributed and will be placed at cash counters. ATL campaign of Dr. 5. Fresh.1 Marketing Campaign The marketing campaign will be run in September after Eid ul Fitr when all other activities slowed down and people get back in their normal routines.0 The soft launch includes exclusive product displays that entice customers to buy the product.Theme The theme of the launching campaign will be based on “Hygiene & Freshness” Tagline The tagline for the launch campaign will be “Brush in the hygiene & freshness!” Or “Clean. This needs to be done to differentiate our products from the other so many toothbrushes which are dumped in any basket or racks in the stores. 5. This is due to the fact that before and during Ramadan all FMCG companies are mostly active and doing advertising and marketing very heavily. Mobiles will be hanged instores for the purpose of décor to create the impression and to inform people about the availability of the brand in Pakistan and to grab the attention of visitors. 3 persons will be hired for Lahore to wear toothbrush mascot who will stand at the entrance of different stores – covering all major stores of the city.4. Healthy mouth!” Soft Launch The soft launch will be done to make people aware of the brand so that when marketing campaign gets active people will be well aware and responsive to the campaign. . Gulberg & others) Hoarding 500 Polls 3 or 4 900.Sunday only News Instep (20 x 3) Dawn Images (qtr pg) Daily Times Sunday Magazine 4 insertion 4 insertions 4 insertions 4 insertions 550.606.000 784. Cartoon Network & other international channels HUM TV Package (minutes purchase) 1.000.0 00 1. 1 ELECTRONIC CABLE Local Cable Operators (local operators + world call) .000 6.including CD Channels.000/.000.950. Brandings.0 00 1.000 1. Cantt.each per month Cost 450.0 00 OUTDOOR 1 2 Streamers Activity (DHA.4.5.000 1.900.500. Fresh LAUNCH PLAN . 5x2) .631.0 00 1. No.Lahore Only Sr. 30.0 00 175.0 00 Qty 15 @ Rs. Mascot activity Miscelleneous (including designing & others) TOTAL . Flyers.000 2 1 2 3 4 PRINT Jang (front Pg. colour Ad.000 200.0 00 POS Posters.2 Budget Spread Launch Plan Dr.000 72. flyers. Fresh products and cavities puppets) at Alhamra Awareness (material including print Ads. Posters) to create hype of this activity . Fresh (including Dr.6 M 1M Total 1.5 M 9.1 M .Pre & Post Activity Cost 6.Total Marketing Budget: Month July August/Septemb er October/Novem ber Activity Launch Campaign Off BTL activity Idea: Puppet show & Magic Show specfically for Dr. 0 CONCLUSION Despite of the major ups and downs in the Pakistan’s economy during the last few years. Oral hygiene market in Pakistan has experienced an average growth of 3. Although the consumer disposable income is growing in Pakistan but people are still avoid purchasing luxurious items and are more focused towards essential products like toothpastes. Fresh in Pakistan seems to be a successful move for the company. investing in such a brand like Dr.4% during 2002-2007. it has been seen that cosmetics and toiletries industry has shown a good growth over the years and companies already operating in this segment have invested heavily in marketing and advertising to achieve their goals. so there are greater opportunities for value gains brands operating in oral hygiene market shows a positive response towards the industry. Thus. Therefore.6.Cosmetics & Toiletries and Personal Care products market is more dynamic than developed markets. soaps etc. by seeing at the previous trends and According to Euromonitor’s Cosmetics & Toiletries senior industry analyst . .