Post on 01-Nov-2014
description
Strategic Marketing
Syed Ali Kamran
M. Farhan Saleem
Hussain Zain ul abideen
Opportunity Seizers
Company Profile:
Type of Business: Product IndustryCompany Name: GFK detergents co.Product: Spin N Clear!USP: Cost focus, DifferentiationLogo:Tag Line
Type of Business: Product IndustryCompany Name: GFK detergents co.Product: Spin N Clear!USP: Cost focus, DifferentiationLogo:Tag Line
Spin N Clear
Vision
Mission
Touching HeartsChanging Lives
Mission is to add Vitality to life. Meet everyday needs for nutrition, hygiene and personal care with brands that help people look good, feel good and get more out of life.
Grow superior brandsImpactful innovationCompletive functional benefitsImpactful and effective communicationWin with customersDeliver best customer serviceFit to competeDeliver vitality
Core Values
Marketing Strategies
Different Stains
Introduction to Industry
Pakistan’s Laundry Industry
Pakistan’s Laundry Industry
Detergent Market Soap Market
Major Players in Detergent Industry are
Customer Analysis
Geographic Segmentation
Location All over Pakistan (rural urban)
Population 180million approx
Demographic Segmentation
Age 18 and above
Family Size Small / Nuclear Family
Occupation Housewives / Mothers
Target Market
Physiographic Segmentation
Class Lower Middle Class, Middle Class, Upper Middle Class and Upper Classes
Those who want their kids to learn while growing but conscious of dirt.
Psychological Characteristics
Brand Conscious, Status Conscious, Highly Educated, self motivated
Behavioral Segmentation
Motives Self Actualization
Category High End Needs
Involvement Low Involvement
Benefit Sought Segmentation
Stain Removal Want stain removal in one go/wash
Customer Analysis
Customer Motivations
Unmet Needs
Complete cleaning of stains and all in just one wash
A customer wants to save energy and water while doing their laundry.
Customers want to reduce the laundry burden and thus are looking for complete cleaning of stains in one go.
Customers looking for a detergent which takes care of their hands also (doesn’t dry them)
Over price and quality customers prefer good quality so that their laundry job is done without any nuisance
Reduces wrinkling so less ironing.
Uses less water-with water issue.
Anti bacterial formula-doesn’t allow germs to form when you sweat
Going for different skin types/allergies-people who have dry
Competitor Analysis
Direct Competitors
Class Middle Class, Upper Middle Class and Upper ClassesFamily Size Small FamilyOccupation Housewives /
Mothers
Class Lower Middle Class, Middle Class, Upper Middle Class and Upper ClassesFamily Size Medium / Big
FamilyOccupation Housewives /
Mothers
Market Analysis
Actual Market Size
•Market demand of 230,000-240,000 tons of detergents.
•The local detergent industry is producing around 175,000 tons.
•There is demand-supply gap of about 55,000 tons.
•Laundry Detergent Powder (LDP), as its market stands at 240,000 tons annual with a growth almost 10 percent a year.
Market Potential
•Detergent Market is growing by 10-12%.
•At present Consumer prefer detergent on the base of quality, especially the upper class they are very quality conscious
•Pakistani Peoples are moving from rural areas to urban areas as life style is changing.
•Advertising is promoting the detergents by comparing the functionality of different detergents and laundry Soaps.
•Increase awareness of usage benefit of detergent.
•Preference to use detergent to avoid the bad smell which comes from washing with soaps (as advertised by LDP’s)
Industry Attractiveness Summary
Components ImplicationsThreat of new entrants High
Bargaining power of buyer Low
Threat of substitutes Moderate to low
Bargaining power of suppliers Moderate to low
Threats of rivalry among competitors
Moderate to low
Internal Analysis
SWOT Analysis
SWOT Analysis
Strengths Strong brand image and brand awareness of ‘Spin N Clear’.
Large sales force.
Strong and healthy relationships with distributors and retailers.
Strong brand portfolio
Wide Innovation aspects
Excellent distribution
Success of slogan-stains are good
WeaknessStrong competitors
High price of product
Substitute product
Opportunities
Changing life style
New markets
Increased standard of living
More awareness
High rate of population growth.
Rising literacy.
Threats
Unbranded/ smuggled washing powder
Political issues
Rising inflation,
Profit margin is exposed to rupee devaluation.
Threat of imposing regulatory duty
BCG Matrix
PLC:
Recommended Strategies
Objective
“To be the best possible cleaning solution in the market”
Sub - Objective
•Approaching new markets•Innovation•Maintaining brand loyalty
Brand Association
Stain removal
Powerful cleaning
Brightness of colors intact
Good packagingGood fragrance
Value Proposition
Functional Benefits
Cleans and protects
Emotional Benefits
Stains No More!
Self expressive
Learning by doing
Target Market
Main segment Housewives/ Ladies
Another segment Laundry business
Niche Market Students and other groups etc.
Product Launching a specialist powder which is exclusively used for Machine washing and Tub washing .
Price Spin N Clear is a Quality product with affordable prices.
Place Same distribution through modern trade (superstores) and kiryana stores etc
Promotion
Regular education and awareness-building campaigns
Stock availability in relevant outlets.
Moreover, as consumers become more aware it is important to build credibility of an offering like Spin N Clear product line.
Marketing Mix
Product:Spin n Clear is devised to cater the needs of customers and provides the best solution for their dirty cloths.
PricePenetration Strategy:
The prices of spin n clear detergent powder for various sizes of packages are as follows; 2Kg --------------------------------Rs 199.001 Kg --------------------------------Rs 99.00500g --------------------------------Rs 59.00200g -------------------------------- Rs 29.0065g --------------------------------Rs 9.00
4 P’s
Suppliers
Marketing Intermediaries
Customers
Competitors
Publics
Micro-environment:
Macro-enviornment:
In the case of “SPIN N CLEAR” the demographics that we have found out are , that any housewife who is both price sensitive as well as quality conscious , belongs to any class, any occupation , if can afford Spin N Clear will buy it.
Age:• People of all ages like to wear clean clothes.Gender:• Male and Female. Family size:• No limit of members, clothes are to be washed.Family life cycle:• Young or old, married or single.Occupation:• Students , Working people and Housewives.Social class:• Upper class , Middle class and working class.
Demographics:
Spin N Clear buyers, because when it comes to personality values than no compromise.
• Lifestyle: Achievers , Strugglers and Ambitious people.• Personality: Hygiene conscious , Strong and Authorative.Promotional Target Market:• Promotion of the product in the target market is very
important to create sales.Age Group:• Matured age group:• By launching the detergent in polythene pack.• Young age group:• By launching it in a colorful and attractive pack.
Psychographics:
The distribution of SPIN N CLEAR is done by a distributing agencyThe company has divided Pakistan into 2 parts:• Sindh• PunjabSindh is further divided into 3 zones:• Karachi• Hyderabad• SukkurPunjab is further divided into 4 zones:• Lahore• Faisalabad• Islamabad• Multan• Each zone is fed by a warehouse , which feeds 60 towns around each zone.
Distribution Strategy:
Distribution StructureDetergentIndustry
National Sales Distributor
Regional Sales Distributor
Common Distributors
Wholesalers
Large Retailers
Macro Outlets
Retailers
Final Consumer
IMC:
•Hoardings•Danglers•Paper ads•Truck floats•TV ads•Radio ads
Hoarding:
BUS Floats
Promotional Campaign:
Strategy Alternatives
Improve packaging of product as the current plastic bags once get opened are hard to maintain and handle.
Branding some local laundry shops and selling the product to those shop owners at minimum revenue.
Go into new products like liquid washing solution / laundry detergent that is super concentrated so you use 75% less liquid could be the, meaning less packaging and easier carrying.
Attracting consumers through detergents with functional benefits such as scents, creating new forms of products such as liquid detergents.
Entering adjacent markets such as the pre-wash and post-wash segments.
Strategy Alternatives
• Fixed Costs• Product Launching Cost• Unit Cost (Variable Cost)
Financial Aspects: