Do Lot Gum Report
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Transcript of Do Lot Gum Report
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Executive summary
People consume chewing gum believing that it helps to manage weight, improves digestion,
improves oral health, improves memory, and reduces symptoms of stress. Companies carefully
guard their recipes for making chewing gum, but all chewing gum has the same basic
ingredients. The basic ingredients are: gum base, sweeteners and flavorings. To keep up with
increasing demand, manufacturers are using synthetic gum bases to continue their business.
Synthetic gum base is not good for health. Some brands claim their chewing gum ‘Suger-free’,
but they use ‘Sugar Alcohols’ instead. Moreover, currently popular chewing gums contain very
little nutritional value.
Dolot natural gum promises hygienic alcohol free gum. Instead of using synthetic gum base
Dolot natural gum will use Chicle, a natural gum, as a gum base. Dolot natural gum will use
alcohol free sweetener. Dolot natural gum’s effort will be to avoid all the unhygienic
ingredients to make the chewing gum, and to add nutritional value to the product.
The world market for chewing gum is $19 billion, and the market size is dramatically growing
each year. Approximately 100,000 tons of chewing gum consumed each year around the world.
Chewing gum’s market size in Bangladesh is growing up rapidly.
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Market segment
Market segmentation is the process that companies use to divide large, heterogeneous markets
into small markets that can be reached more efficiently and effectively with products and
services that match their unique needs. We segment our market according to psychographic and
behavioral segmentation.
Behavioral segment:
Approximately 50 million people smoke tobacco in Bangladesh (July 2009 est.). The following
data shows the number of cigarette consumption per capita.
Rankin
gCountry
Number of cigarettes
per adult per year
142 Bangladesh 154
43 percent of adults (age 15+) in Bangladesh use tobacco. These people are our main target
customer. Adults of these age use chewing gum as a after smoking smell remover.
SmokerNon somker
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Psychographic segment:
College or University student’s ages within 18-24 are the second major chewing gum consumer.
They consume chewing gum for oral care and fresh breath.
Target market:
Target market means make segment of customer for whom Dolot natural gum will be made and
sold, who have different needs, characteristics or behavior.
We are targeting smokers as our main target market since chewing gum is specially consumed to
remove the after taste and smell from smoking cigarettes. Other characteristics that describe
Dolot Natural gum’s target customers include:
A sense of style
Believes in good value
Prioritize quality over cost
Educated
Prefers natural product
Positioning:
Positioning is designing company’s offerings and image in such a way that is occupies a
distinctive place in the minds of the target customer.
Attributes: Nutritious
Benefits: Improves oral health.
Positioning by creating value: To build strongest brand position in the market we
will establish beliefs and values. Our main objective is to take care of our
consumers’ health through providing hygienic and harmless consumer product.
Our best effort will be to position our brand as a “Maker of natural gum”
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Marketing Mix (4P):
Product design:
Ingredients:
Chewing gum base: Chicle, a natural latex.
Sweetener: Stevia, a natural sweetener, commonly known as sweetleaf, sugarleaf. As a
sweetener and sugar substitute, stevia's taste has a slower onset and longer duration than
that of sugar.
Flavors
Product mix is the list of the products that a specific company often or want to sales according
the choice of their target customer.
The product mixes for Dolot natural gum are given below:
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Packet design:
o Travel pack: Contains 12 pieces of hard coated gum.
The package will be comprised of an outer cardboard sheath in which a clear plastic package,
‘polyethylene’ can easily slide in and out. The plastic will act as housing for 12 pieces of hard
coated gum. A thin aluminum sheet will cover the gum in conjunction with adhesive to create a
tight seal. The plastic is easily manipulated which will allow the user to push on one side and
eject the gum through the foil.
Dolot
Travel pack
Mango
Strawberry
36gms
Apple
Regular pack
Mango
Strawberry
Apple
3gms
Classic pack
Mango
Strawberry
150gms
Apple
Product Mix
Product Mix Length
Product Mix Depth
Product Mix Width
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o Regular pack: Contains 1 piece of hard coated gum.
The gum will be covered by plastic wrapping paper.
o Classic pack: Contains 50 pieces of hard coated gum in a plastic jar.
Product summary:
The gum will be filled with liquid natural flavor, and the upper side will be coated by strong
mint.
Pricing policy
To price our product we’ll follow the cost-based pricing, a policy by which we will determine
the price by adding a fair profit or return with the production cost. The cost of producing Dolot
natural gum might be higher than that of competitors as a result of using natural ingredients.
Market surveys from many credential sources found that people are willing to pay much money
for a healthy, natural, and hygienic product.
Dolot natural gum will be available in
Travel pack
Regular pack
Classic pack
Price:
Travel pack : 30 TK
Regular pack: 3TK
Classic pack : 120 TK
Pricing strategy:
Cost-based pricing = Production cost + Profit
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Distribution activities:
We are expecting our products will be stocked in the majority of
Tea stalls
Pharmacies
Grocery shops
Super shops
Department store
Cigarette-selling-points
To make our product available at the places mentioned above, we will apply intensive
distribution process.
Distributor
Retailer
Consumers
Promotional Activities:
Manufacturer
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The target audience for our promotional activities is primarily comprised of 18-24 year old male
and females. This target segment tends to be active, trendy, bold, and have a sense of style. The
highest consumption rate for chewing gum falls within this 18-24 age. Our promotional activities
will primarily focus on the use of social media as well as non-traditional media to promote the
brand message.
1. Determining Communication Objectives:
Advertising: Through advertising we believe we can increase:
Awareness by 15%, within 3 months, because of teaser ads on TV, newspapers, and
magazines.
Knowledge by 20%, within 2 months, due to information provided in our full version
ads.
Preferring by 25%, within 4 months, through many enetertainable events, website
info, Reviews, ads, Buzz in the social network etc.
Publicity/PR: We plan to increase the following by publicity:
Awareness by 9% , within 2 months , due to sponsorship of exclusive events.
Knowledge by 6%, within 3 months, due to sponsorship of exclusive shows, etc.
Liking by 5%, within 6 months due to sponsorship of exclusive shows, etc.
Preferring by 21%, within 3 months, through many joyful events, website info,
Reviews, ads, Buzz in the social network etc.
Internet Marketing: Through internet marketing we will create-
10% awareness within 6 months;
15% liking within 1 year through online selling;
12% purchase through online selling.
Direct Marketing: Through various types of direct marketing:
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20% preference can be created;
22% conviction will be achieved within 4 months.
Sales promotion: Through various types of sales promotion we will create-
25% liking will be created within 7 months;
10% awareness will be created by 8 months.
2. Designing a message appeal:
To design our message appeal we will follow “AIDA”. It will help to get attention, hold
interest, arouse desire and obtain Action through our message. In order to design our
message we will use different appeals. They are-
Rational appeal/informational appeal;
Emotional appeal;
Festive/special event appeal.
Rational appeal:
In order to create rational appeal we will use different information about the product like
different flavors (Mango, Strawberry, and Apple). We will also use different price of
different size of packets. Competitive advantage can also be used like “Dolot uses only
natural ingredients to make chewing gum”
Moral appeal:
As Dolot natural gum is healthy and nutritious, it will make people aware of their health so
we will use moral appeal also.
3. Designing a Message Structure:
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Designing a message structure we need to focus on some issues. They are-
Whether or not to draw a conclusion: We won’t draw a conclusion for our message or TV
advertisement for the first 3 weeks. It will help us to create a buzz in people. After 3
weeks we will draw the conclusion.
One-sided or two-sided argument: we will use two sided argument. Like it’s costly but
worth it.
We will make our ads in a way that will help our customers to understand that we provide the
best quality product.
4. Choosing Media:
Personal Media:
Social Media: Communicate with our customer using various social media such as Facebook,
Google+, Twitter, YouTube;
Non- personal Media: We have chosen some non-personal media and channels. These are:
Media Channel
Television Channel i, ATN Bangla, NTV, Independent
Radio Radio Foorti, Radio Today, Radio Amer
Newspaper Prothom Alo, Daily Star, Dhaka Tribune
Magazine Shaptahik, Binodon
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Competitive analysis:
Dolot Natural’s major competitors are:
Wrigley
Pran
Perfetti Van Melle
Lotte
All of our major competitors target a general audience rather than a specific market
segment, and they all provide almost similar products. Sometimes the product ingredients
are the same. None of our major competitors uses natural ingredients to their product.
Dolot natural’s differentiated product and specific market segment will give it a
competitive advantage in the market.
Conclusion:
Today’s marketing is all about communicating and making relationship with customers not only
sell the product and get profit. That’s why we make our marketing plan on the basic of making a
long term relationship with customers not to attain the target sell. We hope this will make us
more loyal to our customers.
Wrigley’s Orbit Gum
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Product analysis
Orbit is a brand of sugarless chewing gum from the Wrigley Company. There are three flavors
Orbit gum available in local market in Bangladesh.
Orbit Sugarfree Gum Mixed Fruit Quantity: 6 pcsPrice: TK: 20
It “Whitens teeth”, as claimed on the box.Orbit Sugarfree Gum Spearmint Quantity: 6PcsPrice: TK: 20
“Just brushed clean Feeling” as it claims on the boxOrbit Sugarfree Gum White Quantity 6PcsPrice: TK: 20
Orbit has no promotional activities in Bangladesh.
Ingredients:
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Gum Base
Gum base puts the "chew" in chewing gum, binding all the ingredients together for a smooth,
soft texture. The Wrigley Company uses synthetic gum base materials for a consistent and safe
base that provides longer-lasting flavor, improved texture and reduced tackiness.
Sweeteners
The finest grades of pure powdered cane sugar, beet sugar and corn syrup are used in the
production of Wrigley's sugar-sweetened chewing gums.
Several types of high-intensity sweeteners are used in Wrigley's sugar-free products and as flavor
enhancers in some other brands. These artificial sweeteners deliver long-lasting, non-caloric taste
and do not promote tooth-decay.
Acesulfame K
Aspartame
Maltitol
Sucralose
Sorbitol
Xylitol
Softeners and Bulking Agents
Glycerin and other vegetable oil products help keep the gum soft and flexible by retaining the
proper amount of moisture in Wrigley products. Ingredients like mannitol and sorbitol ensure the
proper density of a product.
Flavorings and Colorings
The most popular flavors for chewing gums come from the mint plant. Mint flavoring for
Wrigley's chewing gums is extracted from fresh mint plants grown on farms in the United States.
After the plants are harvested, they go through a distillation process that extracts the oils used for
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flavoring Wrigley brands. Other Wrigley brands are flavored by a variety of fruit and spice
essences. Colorings are used to distinguish different flavors.
Preservatives
A small amount of preservative helps maintain the freshness of all Wrigley products.
Perfetti Van Melle's Center Fresh
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Product Analysis
Center Fresh, the flagship brand of Perfetti Van Melle's was launched in 1994. It is available in
Spearmint,
peppermint and
Sweet mint flavors.
Price: 2 Tk
Center Fresh has no promotional activities in Bangladesh.
Lotte’s Spout Gum
Product Analysis
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Spout is a famous brand from Lotte Confectionery. Lotte Confectionery is a South Korean company
headquartered in Yangpyeong-dong Yeongdeungpo-gu, Seoul, Korea. It was established in 1967 and
its plants are located in Seoul.
Three flavors spout gum is available in Bangladesh market:
Lotte Spout Gum Cinnamon
23.80 gm
Price 30TK
Lotte Spout Gum Peppermint
23.80 gm
Price 30 TK
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Lotte Spout Gum Spearmint
23.80 gm
Price 30TK
Lotte’s Spout Gum has no promotional activities in Bangladesh.
Pran Chewing Gum
Product analysis
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Pran is a large company of Bangladesh. There are three types of chewing gum are available in
local market in Bangladesh.
Pran Bubble Gum
Quantity: 1
Weight: 4gm
Flavor: None
Price: 1 TK.
Promotion: Advertising in television, billboard, also in facebook.
Pran Fruitfil Gum
Quantity: 1
Weight: 4.5gm
Flavor: Mango, Grape, Strawberry
Price: 2 TK.
Promotion: Advertising in television, newspaper, billboard, also in facebook.
Pran Xcel Gum
Quantity: 1
Weight: 3gm
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Flavor: None
Price: 2 TK.
Promotion: Sales promotion, and personal selling. Also use social network.
Dubble Bubble
Product Analysis
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Dubble Bubble is a brand of pink-colored bubblegum invented by Walter Diemer, an accountant
at Philadelphia based Fleer Chewing Gum Company, in 1928
The main ingredients in Dubble Bubble gum are Sugar, Dextrose, Corn Syrup, Gum Base,
Tapioca Dextrin, Titanium Dioxide, Confectioner's Glaze, Carnauba Wax, Corn Starch, Artificial
Flavors, Artificial Colors, (FD&C Red 40, Blue 1, Yellow 5, Yellow 6, Red 3), BHT (to
maintain freshness), Milk and Soy.
Dubble Bubble twist gum is a 5 g, bite-size piece of chewing gum containing 20 calories with 0
g of fat, 0 mg of cholesterol, 5 mg of sodium, 5 g of carbohydrates, 0 g of dietary fiber, 4 g of
sugar and 0 g of protein. Dubble Bubble Ball Gum is available in 5 g servings containing 20
calories, 5 mg of sodium, 5 g of carbs and 4 g of sugars. Dubble Bubble specialty bubble-gum
cigars come in 20 g servings and contain 70 calories, 18 g of carbs and 15 g of sugar. Dubble
Bubble Office Pleasures bite-size gum pieces come in 3.5 g servings containing 15 calories, 3 g
of carbs and 3 g of sugar.
Price Analysis:
The price of every Dubble Bubble gum is BDT 5. However most shop sell Dubble Bubble
Gum in box. So every box costs 500 BDT.
Dubble Bubble gum has no promotional activities in Bangladesh