Professional Documents
Culture Documents
Project of Strategic Marketing On: Submitted To: Submitted by
Project of Strategic Marketing On: Submitted To: Submitted by
On
Submitted by:
1.0 Introduction...................................................................................2
1.2 Mission Vision...............................................................................3
1.3 Values...........................................................................................3
...........................................................................................................................................
2.0 Situation Analysis.........................................................................4
2.1 Market Summary..........................................................................4
2.2 Market potential............................................................................4
2.3 Demographic Trends.....................................................................4
2.4 Consumer Behaviour.....................................................................5
2.5 Competitive Environment.............................................................5
2.6 Economy.......................................................................................6
2.7 Legal and Political Issues..............................................................7
3.0 Objectives and Action Plans.......................................................9
3.1 Product........................................................................................10
3.2 Place...........................................................................................10
3.3 Price............................................................................................11
3.4 Promotion....................................................................................11
4.0 Microenviornment......................................................................12
5.0 Macroenviornment.....................................................................13
6.0 Distribution Strategy.................................................................15
7.0 Financial Aspects........................................................................17
7.1 Fixed Costs..................................................................................17
7.2 Product Launching Cost..............................................................17
7.3 Unit Cost (Variable Cost) .............................................................................17
8.0 Advertising Goals.......................................................................18
9.0 BCG, SWOT, PLC....................................................................20-22
10.0 Overall Assessment of Opportunity......................................23
11.0 Advertising Objectives............................................................24
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12.0 Advertising and Marketing Budget..................................25-26
Introduction:
We are launching a brand named “Spin n Clear” under the umbrella of
GFK corporation, Spin n Clear is very effective detergent agent by its
composition. Managers are expecting that it will make a sound image
in the consumers evoked set of mind.
“Stains No More”
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The statement is showing the operativeness of the detergent. It’s
concise, achievable and realistic. Create a good sense in the mind of
reader.
Our Mission:
Our mission is to add vitality to life. We meet everyday needs for
hygiene, and personal care with brands that help people feel good and
get more out of life.
Our Vision:
To be leading firm in the detergent industry, by providing better
quality services to customers and gain larger customer base and
greater market share.
Our Values:
Integrity
• We always try to do the right thing.
• We are honest and straightforward with each other.
• We operate within the letter and spirit.
• We uphold the values and principles of GFK company in every
action and decision.
• We are data based and intellectuality honest in advocating
proposals, including recognizing risks.
Leadership
• We are all leaders in our area of responsibility, with a deep
commitment to delivering leadership results.
• We have a clear vision of where we are going.
• We focus our resources to achieve leadership objectives and
strategies.
• We develop the capability to deliver our strategies and eliminate
organizational barriers.
Ownership
• We accept personal accountability to meet our personal needs,
improve our systems and help others improve their
effectiveness.
• We all act like owners, treating the company’s assets as our own
and behaving with the company’s long term success in mind.
Passion for Winning
• We are determined to be the best at doing what matters most.
• We have a healthy dissatisfaction with the status quo.
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• We have a compelling desire to improve and to win in the
marketplace.
Trust
• We respect our GFK colleagues, customers and consumers, and
treat them as we want to be treated.
• We have confidence in each other’s capabilities and intentions.
• We believe that people work best when there is a foundation of
trust
Situation Analysis
Market Summary
Market potential
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rate presents a continued opportunity for new sales over the
forecasted years.
Demographic Trends
Consumer Behaviour
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design of most kitchens, built-in models are easily accommodated and
the added convenience of not having to manually hook the appliance
to the sink and the space-saving features of a built-in Detergent are
primary factors behind the decline of the freestanding model. In fact, it
is now difficult to find freestanding Detergents in retail outlets, as most
models on the sales floor are built-in.
Economy
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spending in recent years, including a 52% real increase in the budget
allocation for development in FY07, a necessary step toward reversing
the broad underdevelopment of its social sector. The fiscal deficit - the
result of chronically low tax collection and increased spending,
including reconstruction costs from the devastating Kashmir
earthquake in 2005 was manageable.
Technology
The Spin n Clear Detergent uses cryogenic technology to clean your
Stains in a way that is economically and ecologically viable. The use of
dry ice pellets allows for a clean method of removing dirt and grime,
while at the same time it does not produce any secondary wastes.
The dry ice medium is chemically neutral, electrically non-conductive
and totally non-abrasive. There are absolutely no secondary wastes
and the material being removed generally becomes light dry dust that
is captured in filters. The dry ice blocks, pellets, and powders are
shown in the diagram below.
Upon impact, the dry ice pellets sublimate immediately to gaseous
carbon dioxide. The dwell time of the dry ice pellets on the surface
material is minimal and other than very slight sub-cooling of the
surface significant heat transfer does not take place. The surface being
cleaned will have an un-appreciable drop in temperature. Contrary to
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popular opinion, the surface is not frozen. This would cause a brittle
state and shattering would be possible.
The majority of the removed material falls to the bottom steel
receptacle. The dirt, being food residue, can simply be composted or
alternatively, the dirt can be vacuumed into your home vacuum
cleaner. The term “ice” is an idiom for dry ice. There is no water in
carbon dioxide. Since the dry ice sublimates from a solid directly to a
gas upon impact, it is a virtual impossibility to leave moisture from the
dry ice itself. The duration of the cleaning process depends upon the
size of the load in the Detergent. A typical run during the scientific
studies showed 20 minutes required.
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In 1993, a new EnerGuide label was introduced to provide the
estimated annual energy consumption rating for each appliance. It also
includes a scale that shows how energy-efficient an appliance is
relative to similar models in an effort to help the consumers select a
model to meet their needs.
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Concept development and testing: Development took one year
with a final prototype available and ready for testing in November
2009.
4 P’s of Marketing:
Product:
The product was developed based on customer feedback and market
research conducted on Pakistani consumers. To do so, we have not
only taken into account consumer concerns about environment,
energy, water, pollution, detergents and noise, we have anticipated
these expectations, and have now surpassed them by designing the
only detergent that addressed all these issues simultaneously.
Composition:
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phosphors which make clothes appear whiter (it is these that show up
under ultraviolet light), and for powders anticaking agents to prevent
the powder becoming one large lump in the presence of moisture. For
liquid detergents, the bulk of the product is water; for concentrated
liquids, somewhat less water, but still the product is mostly water.
Biological laundry detergents contain enzymes which act
as catalysts to "eat" the dirt off of the laundry; these function best at
the kinds of body temperatures found in warm-blooded creatures
(30 °C (86 °F) to 50 °C (122 °F)) and will perform no better, and
sometimes worse, at higher temperatures. Detergents may have other
additives such as bleaches and fabric softeners and these are usually
advertised clearly on the packets as selling points.
Place
We plan to launch this product in the major urban cities in Pakistan,
namely Lahore, Karachi, Islamabad and Multan. The launch will
coincide with the National Home show occurring in each of these cities.
The National Home Show provides GFK CORPORATION with the
opportunity of bringing awareness to the marketplace. The National
Home Shows all take place in the spring season amongst these 4
different cities. GFK CORPORATION will continue to maintain product
availability through their key retailers.
Price
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2Kg -------------------------------- Rs 199.00
1 Kg -------------------------------- Rs 99.00
500g -------------------------------- Rs 59.00
200g -------------------------------- Rs 29.00
65g -------------------------------- Rs 9.00
Promotion
MICROENVIRONMENT:
The factors of this environment are explained below:
Suppliers:
Suppliers are an important link in the company’s overall customer “value delivery
system.” All GFK corporation approved agencies handled by commercial department.
Marketing Intermediaries:
Marketing intermediaries help the company to promote, sell, and
distribute its goods to final buyers. They include resellers, physical
distribution firms, marketing services agencies and financial
intermediaries.
It is very difficult to deal with all the wholesalers and retailers
individually so GFK corporation has a sole distribution system.
Customers:
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Consumer markets consist of individuals and households that buy
goods and services for personal consumption. In the case of our
chosen product “SPIN N CLEAR” , a detergent , the main customers
our house-wives because they are the ones who buy detergents.
Competitors:
There are 3 main players in the detergent industry of Pakistan.
1) Colgate-palmolive corporation ( Brite , Express power , Bonus )
2) Lever Brothers ( Surf , Wheel )
3) Proctor & Gamble ( Ariel )
Publics:
The company’s marketing environment also includes various publics
such as , Financial publics , Media publics , Government publics ,
Citizen action publics , Local publics , Internal publics and the general
public. Amongst all the publics the most important is the general
public , because they are the ones that but the product so the
company needs to be concerned about their attitudes toward its
products.
MACRO ENVIRONMENT:
The factors of this environment are explained below:
Demographics:
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.
Psychographics:
People who are ambitious, hygiene conscious, those who want to be
authoritative are Spin N Clear buyers, because when it comes to
personality values than no compromise.
Technology:
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GFK corporation was the first one to launch in “polythene bags.” This
was a change in technology the poly packs don’t get torn off after
getting wet like the carton boxes, so this change found a ready
market.
Economy:
Spin N Clear is a premium quality detergent at a relatively low price
than other detergents of same quality. This was made possible by
launching it in polythene bags so as to cut down cost price.
Market size:
Due to the launching of different detergents in sachets , a large number of soap users are
converting into detergent users because now they can afford to buy a detergent at the
price of soap. Total per annum sale of detergents in Pakistan is upto 40,000 tons. This
market is growing at a rate of 4.25% per annum.
Target market:
Normally speaking detergent is a product which is purchased by the
housewives but still there is a big target market.
Demographics:
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.
Income:
3,400 and above ( because Spin N Clear is not marketed in sachets so
a person has to earn this much so that he can spend atleast 1% of his
income to buy a small pack of Spin N Clear.)
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Occupation:
Students , Working people and Housewives.
Social class:
Upper class , Middle class and working class.
Psychographics:
Lifestyle: Achievers , Strugglers and Ambitious people.
Distribution Strategy:
1) Sindh
2) Punjab
Sindh is further divided into 4 zones:
1) Karachi
2) Hyderabad
3) Sukkur
4) Quetta
Punjab is further divided into 5 zones:
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1) Lahore
2) Faisalabad
3) Islamabad
4) Multan
5) NWFP
Each zone is fed by a warehouse , which feeds 60 towns around each
zone.
After collecting this information, at the end of the day all the sales
persons submit the daily sales report and the order cards to the
distributor so as to arrange for the delivery for the next day. Then the
next day the vehicles of distributor deliver the quantity required by
every shopkeeper at his shop.
Advertising Evaluation
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Once the advertising campaign is over, companies normally evaluate it
compared to the established goals. An effective tactic in measuring the
usefulness of the advertising campaign is to measure the pre-and post-
sales of the company's product. In order to make this more effective,
some companies divide up the country into regions and run the
advertising campaigns only in some areas. The different geographic
areas are then compared (advertising versus nonadvertising), and a
detailed analysis is performed to provide an evaluation of the
campaign's effectiveness.
Summary
Financial Aspects
In order to determine the cost to manufacture and ultimately the
selling and retail price, the following analysis of the fixed costs,
product launching costs, and unit costs (variable costs) are analyzed.
Fixed Costs
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properly disposed. Therefore, budget is also set aside for the
environment. The executive and office staff salaries are averaged and
accounted. Twenty percent is added to their salary to account for their
benefits. Office supplies include items such as computers, software
licenses or paper.
The product launch costs will be added to the fixed costs. These,
however have been separated out because they only apply to the
product launch (i.e. the first year). Our unit price will be set, to ensure
the product launching costs are zero in the second year. The table
below lists the extra cost associated with launching the new product.
Advertising Goals:
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advertising campaign. This number might seem high, but in a crowded
and competitive market repetition is one of the best methods to
increase the product's visibility and to increase company sales. The
more exposure a company desires for its product, the more expensive
the advertising campaign. Thus, often only large companies can afford
to have high-frequency advertisements during a campaign.
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The advantage of this tactic is that an advertising campaign can run
longer and might provide more exposure over time. For example, a
company could run an advertising campaign for a particular product
that lasts years with the hope of keeping the product in the minds of
customers. Pulsing indicates that advertisements will be scheduled in a
disproportionate manner within a given time frame. Thus, a company
could run thirty-two television commercials over a three-or six-month
period to promote the specific product is wants to sell. The advantage
with the pulsing strategy is twofold. The company could spend less
money on advertising over a shorter time period but still gain the same
recognition because the advertising campaign is more intense.
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• A star represents a business unit that has a high share in a
growing market. For example, Motorola has a large share in the
rapidly growing market for cellular phones.
• A question mark results when a unit has a small share in a
rapidly growing market. The firm’s position, then, is not as
strong as it would have been had its market share been greater,
but there is an opportunity to grow. For example, Hewlett-
Packard has a small share of the digital camera market, but this
is a very rapidly growing market.
• A cash cow results when a firm has a large share in a market
that is not growing, and may even be shrinking. Brother has a
large share of the typewriter market.
• A dog results when a business unit has a small share in a market
that is not growing. This is generally a somewhat unattractive
situation, although dogs can still be profitable in the short run.
For example, Smith Corona how has a small share of the
typewriter market.
Firms are usually best of with a portfolio that has a balance of firms in
each category. The cash cows tend to generate cash but require little
future investment. On the other hand, stars generate some cash, but
even more cash is needed to invest in the future—for research and
development, marketing campaigns, and building new manufacturing
facilities. Therefore, a firm may take excess cash from the cash cow
and divert it to the star.
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• Any other aspect of your business that adds value to your
product or service.
A weakness could be:
• Lack of marketing expertise.
• Undifferentiated products or services (i.e. in relation to your
competitors).
• Location of your business.
• Poor quality goods or services.
• Damaged reputation.
: An opportunity could be:
• A developing market such as the Internet.
• Mergers, joint ventures or strategic alliances.
• Moving into new market segments that offer improved profits.
• A new international market.
• A market vacated by an ineffective competitor.
A threat could be:
• A new competitor in your home market.
• Price wars with competitors.
• A competitor has a new, innovative product or service.
• Competitors have superior access to channels of distribution.
• Taxation is introduced on your product or service.
A word of caution, SWOT analysis can be very subjective. Do not rely
on SWOT too much.
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Advertising budgets are typically highest for a particular product
during the introduction stage and gradually decline as the product
matures.
Since the product is not well known and is usually expensive (e.g., as microwave ovens
were in the late 1970s), sales are usually limited. Eventually, however, many products
reach a growth phase—sales increase dramatically. More firms enter with their models
of the product. Frequently, unfortunately, the product will reach a maturity stage where
little growth will be seen. For example, in the United States, almost every household has
at least one color TV set. Some products may also reach a decline stage, usually
because the product category is being replaced by something better. For example,
typewriters experienced declining sales as more consumers switched to computers or
other word processing equipment. The product life cycle is tied to the phenomenon of
diffusion of innovation. When a new product comes out, it is likely to first be adopted by
consumers who are more innovative than others—they are willing to pay a premium
price for the new product and take a risk on unproven technology. It is important to be on
the good side of innovators since many other later adopters will tend to rely for advice on
the innovators who are thought to be more knowledgeable about new products for advice.
At later phases of the PLC, the firm may need to modify its market strategy. For
example, facing a saturated market for baking soda in its traditional use, Arm & Hammer
launched a major campaign to get consumers to use the product to deodorize
refrigerators. Deodorizing powders to be used before vacuuming were also created.
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on when looking at the current dishwashing market. To prove this
point, let us summarize the key findings of the Situation Analysis,
namely: the focus of improvements to Detergents; the forecast growth
in the Pakistani economy; coupled with the proliferation of home
improvements. These three main areas constitute the opportunity, to
which our innovative new technology shall only be improved.
Advertising Objectives:
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continuity, brand switching, and switchback. Which of the four
advertising objectives is selected usually depends on where the
product is in its life cycle.
Advertising Budget:
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can be a difficult process because brand managers want to receive a
large resource allocation to promote their products. Overall, the
advertising budget should be established so as to be congruent with
overall company objectives. Before establishing an advertising budget,
companies must take into consideration other market factors, such as
advertising frequency, competition and clutter, market share, product
differentiation, and stage in the product life cycle.
Advertising Frequency
Market Share
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advertising budget because a company's competitors counterattack
with their own advertising blitz. Successfully increasing market share
depends on advertisement quality, competitor responses, and product
demand and quality.
Product Differentiation
Marketing Budget
Marketing Budget
A marketing budget is an estimate of projected costs to market your
products or services. A typical marketing budget will take into
account all marketing costs e.g. marketing communications, salaries
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for marketing managers, cost of office space etc. However much of
the budget is concerned with marketing communications e.g. public
relations, website, advertising, etc. Both are considered here.
The costs in a marketing budget will be allocated according to the
campaign and the media to be utilized. Some prior research will be
necessary for the cost estimates to be as realistic as possible. This is
called advertising or marketing communications research.
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• Advertising
• Television Advertising
• Radio Advertising
• Direct Marketing
• Newspaper Advertising
• Proposal Development/bid submittal
• Networking
• Event Attendance
• Sales Promotion
• Many other marketing communications tools.
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