SMM Report 1

ACKNOWLEDMENT

After in depth and prolonged study and research work we finally succeeded in

completing our term report of Strategic marketing management on repositioning of the

brand named “Mospel”.

We are thankful to Dr. M.A.K Chishti who being the instructor of this particular course

remained very cooperative and helpful throughout the term to give guidelines and make

rational decisions. We are grateful to him for his kind supervision.

During the process of completion of our project report, many persons helped us

providing their kind services to accomplish this task. Each of our group members took

their responsibility to accomplish the task of completing the project.

Abbot Mospel

LETTER OF AUTHORIZATION

Dear Reader

The report prepared on Repositioning of “Mospel” was authorized by Dr. M.A.K Chishti,

my teacher of Strategic Marketing Management at IQRA UNIVERSITY in the beginning of

this course.

This report is on the course of Strategic Marketing Management.

Sincerely,

Ebadullah

Bilal Rabbani

Abbot Mospel

LETTER OF TRANSMITTAL

Dr. M.A.K Chishti

Iqra University

Main Campus

Karachi

Dear Dr. M.A.K Chishti

We request you to accept this report on the repositioning of Mospel that was assigned

to us at the beginning of summer 2011.

It has been a privilege to work on this report and we have put in our utmost effort to

prepare a comprehensive report on the topic. If you have any query concerning the

report, we shall be happy to discuss them with you.

Sincerely,

Ebadullah

Bilal Rabbani

Abbot Mospel

EXECUTIVE SUMMARY

The purpose of conducting a repositioning study on Mospel is that during the past few

years the market share of mospel in the repellent industry has shorten due to which

they have lost the volume of sales and many competitors have also come up plus the old

competitors have gained their market size while Mospel is on the verge of losing its

market share.

By this study we will be able to analyze the situation and the reasons why Mospel has

lost its market share and is unable to compete with the brands like Mortien, Finis

Typhon etc who are currently the major holders of the market share in the repellent

Industry. With the help of this study we will also try to reposition the product in the

market and also try to provide feasible solutions so that it can help the organization in

the coming future.

We will try to come up with the solutions that are realistic and can be used in the future.

Abbot Mospel

INTRODUCTION TO THE COMPANY

They are a global broad-based healthcare company devoted to discovering new

medicines, new technologies and new ways to manage health. Their products span the

continuum of care, from nutritional products and laboratory diagnostics through

medical devices and pharmaceutical therapies. Their comprehensive line of products

addresses all important health needs from infancy through the golden years.

Their work across broad lines of business gives them a wealth of knowledge,

understanding and capabilities in a number of health areas, including:

Pharmaceuticals

Nutritional

Diagnostics

Diabetes Care

Their capabilities allow them to focus on some of the most serious threats to a long

and healthy life. From cancer and diabetes to a range of other conditions, their scientists

are working hard every day to discover and develop new technologies and treatments

for people in Pakistan and around the world.

Abbot Mospel

CORPORATE STRUCTURE OF ABBOTT

Abbot Mospel

Shareholders

Audit Committee Board of Directors Human Resource Committee

Share Transfer Committee

CEOBanking Committee

In

Corporate Information

BOARD OF DIRECTORSMunir A. Shaikh (Chairman)Asif Jooma (Chief Executive Officer)Kamran Y. MirzaThomas C. Freyman (Alternate Director Sadi Syed)Syed Anis AhmedAngelo KondesShamim Ahmad Khan

AUDIT COMMITTEEShamim Ahmad Khan (Chairman)Munir A. ShaikhKamran Y. MirzaSiraj Lawai (Chief Internal Auditor by invitation)Syed Anis Ahmed (CFO by invitation)

HUMAN RESOURCE COMMITTEEMunir A. Shaikh (Chairman)Asif JoomaShamim Ahmad Khan

SHARE TRANSFER COMMITTEEAsif Jooma (Chairman)Syed Anis AhmedSadi Syed (Alternate Director to Thomas C. Freyman)

BANKING COMMITTEEMunir A. Shaikh (Chairman)Asif JoomaSadi Syed (Alternate Director to Thomas C. Freyman)Syed Anis Ahmed

COMPANY SECRETARYMalik Saadatullah

Abbot Mospel

SENIOR MANAGEMENT TEAMAsif Jooma (Chief Executive Officer)Syed Anis Ahmed (Chief Financial Officer)Sadi Syed (Operations Director)Dr. Sarmad Maqbool (Marketing & Strategy Director)Dr. Farrukh Hafeez (Quality Assurance Director)Ayub A. Siddiqui (Head of Nutrition Division)Habib Ahmed (Head of Diagnostic Division)Syed Imtiazuddin (Head of Diabetes Care Division)Dr. Arshad Ahmed (Medical Director)Seema Khan (Regulatory Director)Athar Noman Khan (Materials Management Director)Hassham M. Malik (Human Resource Director)

CITY OFFICE8th Floor, Faysal House,ST-02, Shahrah-e-Faisal, Karachi

REGISTERED OFFICEOpp. Radio PakistanTransmission Centre,Hyderabad Road, Landhi,P.O. Box 7229, Karachi

WEBSITEwww.abbott.com.pk

Abbot Mospel

VISION

To be a premier healthcare company in Pakistan.

MISSION

To deliver consistently superior products and services that contributes significantly to improve the quality of life of the consumers.

HISTORY AT A GLANCE

For more than 120 years, Abbott has been a pioneer in developing innovative solutions that improve health and the practice of healthcare. In 1888, 30-year-old Wallace C. Abbott, M.D., began making a new form of medicine. Using the active - or alkaloid - part of a medicinal plant, he formed tiny pills, called “dosimetric granules,” which provided a measured amount of the drug. The demand for these accurate granules soon far exceeded the needs of his own practice. From a small operation based above Dr. Abbott's pharmacy, Abbott has evolved into one of the world's leading healthcare companies.

1888 Dr. Abbott begins producing dosimetric granules in his apartment on Chicago's North Side.

1900 The business is officially incorporated in Illinois as the Abbott Alkaloidal Company

1915 The company changes its name to Abbott Laboratories.

1920 Dr. Abbott breaks ground for a new manufacturing facility in North Chicago.

1929 Abbott stock is listed on the Chicago Stock Exchange.

1964The company acquires M&R Dietetic Laboratories of Columbus, Ohio, which

eventually becomes Abbott Nutritron. 1973

Abbott forms its diagnostics division to bring together all diagnostic products and services. The company also introduces Ensure, its first adult medical nutritional.

1997Abbott acquires the parenteral products business of Sanofi Pharmaceuticals,

Inc., and also launches several new products, including an improved version of Similan infant formula in the United States.

2001 Abbott completes the acquisition of the pharmaceutical business of BASF, including the global operations of Knoll Pharmaceuticals. In addition, Abbott acquires Vysis, Inc., a leading genomic disease management company.

Abbot Mospel

2010: Abbot acquires Solvay Pharmaceuticals and STARLIMS. Abbott also receives approval for XIENCE V in Japan

STRATEGIC PRIORITIES:

INNOVATING FOR THE FUTURE

Scientific discovery and innovation are the hallmarks of Abbott's business - and the core of our commitment to advancing health and well-being. Our broad scientific expertise enables us to create new health care products, carry them through the critical stages of development and then deliver them to patients and health care providers around the world. Our diverse portfolio of pharmaceuticals, nutritional and medical and diagnostic devices share a common framework of excellence in science, research, development and engineering. Our ongoing investment in R & D enables us to address the Ever-changing global disease burden and to foster new, improved Solutions for emerging health care challenges.

ENHANCING ACCESS

Our expertise and resources help to bridge gaps in healthcare access. We tailor our approach to specific patient needs in specific regions of the world. Expanding access to care requires addressing a complex array of challenges. Lack of awareness about health care issues and treatments, inadequate healthcare infrastructure and social stigmas also can make it difficult for patients to get the medicines they need. We work to address these and other obstacles as part of our core business strategy and as part of our commitment to enhancing global health and well-being.

PROTECTING PATIENTS & CONSUMERS

Our ability to create life-enhancing and life-preserving products is constantly bolstered by scientific advances, but delivering on our commitment to patients and consumers goes well beyond the laboratory. To deliver safe and effective products - at the right time and in the right dosage or formulation - we work to educate patients and health care professionals about potential risks and side effects. All medicines, health care interventions, procedures and products carry some degree of risk - which must be balanced against the often greater risks associated with the illnesses or injuries these interventions are designed to treat. Fully educating and informing our stakeholders about these risks and benefits is paramount. Along with educating patients and health care professionals about the safe use of our products, we work hard to ensure safety and consumer protection throughout the manufacturing and distribution process. The safety of many product ingredients is generating significant debate throughout the health care industry. At the same time, the broad geographic dispersion of our supply chain requires increased oversight and auditing.

SAFEGUARDING THE ENVIRONMENT

Abbott Pakistan has long been committed to minimizing our global environmental impacts - from the sourcing of raw materials, the manufacture and distribution of our products, and the use and disposal of our products by consumers and healthcare practitioners. Our commitment to patient and consumer protection is shared by all Abbott Pakistan employees and

Abbot Mospel

by the even greater numbers of people working on behalf of our partners and suppliers. We hold all of them to high ethical and performance standards and maintain effective management systems to review and audit them. Our quality management system is supported by policies, processes, procedures and resources that ensure our products are designed and manufactured to be safe and effective. All our processes are regularly monitored, and our products are assessed against approved specifications before distribution.

MOSPEL (STUDY PRODUCT)

Our product is a mosquito repellent Mospel Spray. The Spray has an added feature of being operated with chemicals. Mospel Spray is effective against all biting insects including mosquitoes, biting flies, deer flies, ticks, black flies, sand flies. It is the perfect travel companion. Mospel Spray Formula Family Spray is pleasant to use and the non greasy formula. Spray contains no propellants and is quick and easy to use. The Pump Spray provides up to 8 hours protection and can be used on children’s cloths.

Effective evacuation of mosquitoes

No irritation of eyes. No hoarseness of throat. No headaches No allergies.

Due to complex structure of Mospel Spray provides a calming and soothing relief from the effects of insect, mosquito, jellyfish bites and nettle stings. And now you can get all the relief.

INGREDIENTS:

The ingredients of our product are active Ingredients in Insect Repellents: DEET (chemical name, N,N-diethyl-meta-toluamide or N,N-diethly-3-methyl-benzamide) is the active ingredient found in many insect repellent products. It is used to repel biting pests such as mosquitoes and ticks, including ticks that may carry Lyme disease. Products containing DEET currently are available to the public in a variety of liquids, lotions, sprays, and impregnated materials (e.g., wrist bands).

Abbot Mospel

Market Share and Analysis:

Market Share:

Mospel: 10% - 12% of the repellent Industry

Mortein: 35% - 40% of the repellent Industry.

Average Monthly Sales:

Mospel: less than 100 units in a shop.

Mortein: More than 150 units in a shop.

Abbot Mospel

Survey Analysis:1. Of the following which product you have in your shop?(Multiple select)

Mospel Mortein Finnis Typhon

2. Which is the more Popular Brand? Mospel Mortein Finnis Typhon

20%

55%

15%

10%

Popular Brand

MospelMorteinFinnisTyphon

3. How many average units of Mospel do you sell on monthly basis? Less than 100 100 -150 151-200 201-250 Above 250

Abbot Mospel

90%

10%

Average Monthly Sles

Less than 100100-150151-200201-250Above 250

4. How many average units of Mortein do you sell on monthly basis? Less than 100 100-150 151-200 201-250 Above 250

5%2%

45%45%

3%

Average Montly Sales

Less than 100100-150151-200201-250Above 250

5. How many average units of Finnis do you sell on monthly basis? Less than 100 100-150 151-200 201-250 Above 250

Abbot Mospel

90%

7%

3%

Avg Monthly Sales

Less than 100100-150151-200201-250Above 250

6. How many average units of typhon do you sell on monthly basis? Less than 100 100-150 151-200 201-250 Above 250

100%

Avg Montly SalesLess than 100100-150151-200201-250Above 250

7. Has there been a decline in the sales of Mospel? Yes No

Abbot Mospel

95%

5%

Decline In Sales

YesNo

8. Has there been a decline in the sales of Mortien? Yes No

20%

80%

Decline In Sales

Yes No

9. Has there been a decline in the sales of finnis? Yes No

98%

2%

Decline In Sales

YesNo

10. Has there been a decline in the sales of typhoon? Yes No

Abbot Mospel

100%

Decline In Sales

YesNo

Abbot Mospel

Re-launch and Repositioning of Mospel:

LAUNCH OF A MOSQUITO REPELLENT IN SPRAY FORM:

MARKETING MIX:

The marketing mix of our product will be done this way:

1. PRODUCT:Segmentation of the product Mospel will be conducted in the following way:

GEOGRAPHIC : Initially using the geographic variable Mospel Spray has segmented the market

into the Sindh. PSYCHOGRAPHIC:

It has also segmented on the lifestyle variable, for people who have an adventurous lifestyle who can carry our Spray at their outings.

SOCIO-ECONOMIC CLASSIFICATION: Class A, Class B and Class C. We have also included Class C because Spray is

considered to be a premium product but we want Mospel Spray to be used by Class C as well since it is economical compared to the other Spray in the market.

BEHAVIORAL: Mospel Spray has segmented on the benefit variable by providing the benefit of

being protected from mosquitoes. Mospel Spray has also segmented on the basis of occasion where it can used on occasions like camps, outings provided used in a closed area.

TARGETING

Our target market is Strata A, Strata B and Strata C. We would aim to target our customer which will be a woman and children because Mospel Spray is a household product and usually the woman buys it.

Abbot Mospel

2. POSITIONING STATEMENT

Mospel Spray is primarily positioned as “A Spray form Repellent which is the most effective to repel mosquitoes, absolutely safe, convenient and economical which protects you always.”

PRODUCT DIFFERENTIATION

Our product is one of its kinds. Most of the other repellents are in form of lotions, patches, vaporizers, whereas we are the first movers to have a Spray Mosquito Repellent. We have an added feature as well. Most of the other sprays become ineffective if there are power cuts but Mospel Spray overcomes this problem.

POSITIOINING STRATEGY

Our positioning strategy is benefit positioning since we want to be known as the most effective Mospel Spray.

3. PRICING

The pricing strategy will be of Penetration pricing and our combo-pack is Rs. 67/-. Reason for this strategy is because we want to sell high volumes which will result in high long-run profits. The price of our product is low as compared to our competitors mainly. We want to penetrate into the market and want to be known as the product which is value for money.

4. PLACE

ABBOTT DISTRIBUTION

ABBOTT has their own depot i.e. their own distributorship in Karachi, Multan, Lahore and Islamabad dealing directly to customers (Distributors and institutions). ABBOTT has market distributors in big cities and specific areas are assigned to each distributor (who works on 6% commission basis) so that they can specifically take care of their areas and make sure those proper services and products are delivered to each and every customer. These distributors are linked with ABBOTT through satellites which report back on weekly basis about sales and inventory level. ABBOTT Pakistan monitors these distributors with the help of inventory system as this is the standard system they use for distributors i.e. they are supposed to hold six weeks inventory.

DISTRIBUTORS:

Premier Agencies(Muslimabad Jameshed Road Karachi) International Brands limited(NIC Building 8th floor Abbassi Shaheed Road) Babar Medicine, Lahore Nadeem Trader, Peshawer D.S Pharma, Rawalpindi Baloch Enterprise, Multan

Abbot Mospel

PROMOTION

T h e m e a n s t h a t w e h a v e u s e d f o r p r o m o t i n g o u r p r o d u c t a r e a s follows:

Print Ads Hoardings TV Commercial

In start we will have two print ads for promoting our product and creating awareness among the public. These will be published in the leading newspapers. The hoarding will be will be shown in all the major cities. We have one TV commercial which will be aired for about six months. The message appeal of the ad is that of benefits and uniqueness of product. On the day of the launch of the product we will call upon a press conference for creating awareness about our product through the media.

BRANDING

BRAND NAME- MOSPEL SPRAYIt is easy to remember.It portrays what the product can do.Consumers can relate to the name.It is easy to pronounce.

TAGLINE- BE PROTECTED…. ALWAYS!!Mospel Spray has the ability to fight with all the mosquitoes that affect the

consumer. Its sole aim is to protect the consumer. Moreover it is mobile and can be carried anywhere. So the tagline brings out the same. Consumers who use the Mospel Spray will be protected always.

LOGOOur brand logo is a dead mosquito. The dead mosquito portrays the fact that

our spray is more powerful.

Abbot Mospel

STRATEGIC MARKETING MANAGEMENT TERM REPORT

SWOT ANALYSIS

After thorough analysis and research we did the SWOT Analysis for the product and came to following results :

STRENGTHS:

Good company reputation. Strong distribution network. Strong brand positioning. Have deep roots in the Pharmaceutical business. Excellent professional management team. It is strength of our company as we have the first mover advantage over mosquito

repellent in spray form and also because people are shifting their loyalties to hygienic products as t h e y h a v e r e a l i z e d t h e h e a l t h y p r o d u c t s .

Economical: The price of our product is comparatively lower to the competitors though we provide the same quality.

Innovative- operated: Our products extra feature, that it can be s t r e n g t h a s i t p r o v i d e s convenience to customers.

WEAKNESSES:

Lacking of deep rural penetration. Employee rededication - High Field Force turnover. Severe Managerial crises.

OPPORTUNITIES:

High rate of population increase in Pakistan. Promotion intensive market. Increasing healthcare awareness. M a r k e t i s g r o w i n g : As the market is growing at a fairly good rate we have a great

opportunity to capture the market share. First Mover advantage: we have the first mover advantage over being the first

spray mosquito repellent in the industry..

THREATS:

High inflation rate. Foreign Exchange Rates Political conditions of Pakistan. Govt. restriction on price Low price local pharmaceutical products Competition from Existing brands having a large market share. Increase in competition because of upcoming segments such as personal sprays and gels.

Abbot Mospel

STRATEGIC MARKETING MANAGEMENT TERM REPORT

POTERS 5 FORCE MODEL:

This model was also made after the thorough analysis of the repellent Industry. The following results were obtained from the study of this model:

THREAT OF COMPETITORSThe threat of competitors is high because there are a lot of players in the market and

two new segments that is personal sprays and gels have come in which will increase the existing competition. Also existing players are entering new segments which increase the competition.

THREAT OF NEW ENTRANTSNew entrants to an industry can raise the level of competition, which depends mainly on

the barriers to entry. In case of mosquito repellent industry the entry barriers are low since the costs to set up the plant is not very high. The exit barriers are low and there by firms can enter and exit easily.

THREAT OF SUBSTITUTE PRODUCTSThe presence of substitutes can dilute the attractiveness of a particular industry. The

threat of substitute products is high. The substitutes for mosquito repellent would be agarbattis, bed net, patches, coil and lotions.

THREAT OF BUYERS BARGAINING POWERThe buyer’s bargaining power is low since they cannot influence the prices to such a

great deal. They have to purchase the product at whatever prices available.

THREAT OF SUPPLIER’S BARGAINING POWERThe cost of items bought from suppliers can have a significant impact on the company’s

profitability. The threat of supplier’s bargaining is moderate. But certain chemicals are not available everywhere which increases the supplier’s bargaining power.

FUTURE PLANS

After educating the people we would shift towards the organic mosquito repellent. Eventually our product would be available nationwide. We also plan to enter the rural market. We also plan to diversify into horizontal integration of mosquito repellent sprays and creams. Company plans to export its product to countries like Afghanistan, Bangladesh, etc.

CONCLUSION

Because using a mosquito repellent means direct exposure to you, your family, and your pets, we suggests to choose carefully if you need to use repellents. Consider both the effectiveness of a repellent and its potential health hazards. Our Product “Abbott Mosquito repellent” by the name of Mospel Spray fulfills both the requirement it is not only an effective but is also safe to use.

Abbot Mospel

SMM Report 1

Documents

Transcript of SMM Report 1