35893379 marketing report final

8/9/2019 35893379 Marketing Report Final

1/32

Close up Whitening Cinnamon Blast

Marketing Management0

MARKETING PLAN


SUBMITTED TO:

SUBMITTED BY:


2/32



TABLE OF CONTENTS

1.

UNILEVER AN INTRODUCTION 022. UNILEVER PRODUCT MIX 043. HISTORY OF CLOSEUP 054. BRAND

CLOSEUP WHITENINGCINAMMON BLAST 06

5. CLOSEUP WHITENINGCINNAMON BLAST 076. POSITIONING OF THE PRODUCT 097.

TARGET MARKET 10

8. STAGES IN THE PRODUCT LIFE CYCLE 119. MARKETING MIX 1210. MARKET SIZE 1511. MACRO ENVIRONMENT 1712. MICRO ENVIRONMENT 19

13. CONSUMER BEHAVIOUR 2114. MARKET SHARE 2315. BCG MATRIX 2416. SEGMENT ANALYSIS 2517. MARKET SEGMENTATION 2618. ISSUES AT THE TIME OF LAUNCH 3019. SWOT ANAYSIS 3120. COMPETITION 3321. FINANCIAL PROJECTION 3522. MARKETING BUDGET 3623. STRATEGIES TO ADOPT IN LATER STAGES 3724. MEDIA GRAPHICS 39


3/32



UNILEVER AN INTRODUCTION

If one travels around the world, he will find homes across all continents where people use

Unilever products. In fact, in many countries it would be hard to find homes without Unilever

products. Unilever is one of the largest, most international companies in the world. It is

'international', not 'global' because it does not attempt to enter all markets with the same

products. Products fall into two main categories, "Foods and Home" and Personal Care", each of

which is vast. Unilever sells over a thousand brands, many of which are market leaders - in a

country, in a region or in the world.

The story of how the company came into being is an interesting one. Lever Brothers was

founded in 1885 when W.H. Lever, later Lord Leverhulme, launched 'Sunlight' Soap. By the endof the century he had built up one of the largest soap businesses in the world. On September 2,

1929, this company decided to merge with a Dutch Company, Margarine Unie and on January 1,

1930 'Unilever' came into existence. Both were international companies, active in some 40

countries, had a common customer the housewife, and were using similar raw materials. After

the merger of these two giants, a form of organization was required that would give due weight

to both the British and the Dutch partners, and two companies with identical boards were set up.

The Unilever group is therefore made up of two parent companies having two headquarters - one

in Rotterdam, known as Unilever N.V. and the other in London known as Unilever PLC. The

apex of the two companies comprises of an Executive Committee, headed by the Chairmen of

Unilever PLC and Unilever N.V.

Unilever Pakistan Limited needs no introduction. In the world of consumer products it has

created an indelible name for itself with brands such as Lifebuoy, Lux and Surf. By far the

largest consumer products company in Pakistan, UPL is a part of the consumer products giant

Unilever. UPL was established some fifty years ago in the then newly created Pakistan. The

town of Rahim Yar Khan was the site chosen for setting up a

vegetable oil factory in 1958 and that is where the first UPL manufacturing facility developed.


4/32



Today, Unilever Pakistan is a force to reckon with. Its contribution to Pakistan's economic

development cannot be underestimated. Now operating six factories at different locations around

the country, the company contributes a significant proportion of the country's taxes. It employs a

large number of local managers and workers. It provides a pool of well-trained and highly

motivated manpower to other segments and has introduced new and innovative technologies into

the country.

The UPL Head Office was shifted to Karachi from the Rahim Yar Khan site in the mid 60's. By

this time the once dusty and sleepy village was the hub of activities for UPL. A residential estate

situated near the factory is the home of UPL employees at Rahim Yar Khan.

Unilever pioneered the business of processed animal and poultry feeds in Pakistan when they

began their production and marketing in 1960. However due to immense difficulties it was not

possible to keep this part of the business viable therefore it was closed in 1980.

A soap and glycerin factory was established in Chittagong in the then East Pakistan in 1961.

However this factory is no longer part of Unilever as a result of the secession in 1971. Surf, first

of their non-soap-detergent (NSD) powders was launched in 1963. It is produced by arrangement

with Fateh Ali Chemicals (Pvt.) Limited.

The present Karachi Edibles Factory was acquired in 1965 from A&B Oil Industries Ltd.

Reconstruction and expansion of the factory was completed in 1994 making it one of the most

modern plants in Pakistan.

Unilever moved into the Personal Products business in 1981. Further diversification on the food

side of the business has taken place with the introduction of margarine and cooking oils. In 1994

a state of the art factory for production Ice Cream (Walls) was erected and began production in

a record time of 10 months.

Unilever has acquired Lipton and Brooke Bond business worldwide, however in Pakistan it was

decided to merge Lipton with Unilever in 1984. Legal merger became effective in 1989.

Unilever and Brooke Bond merged in 1997.

HISTORY OF CLOSEUP


5/32



Close up WHITENINGCINAMMON BLAST is a line extension of the Close up range. In 1986

Close up came up with red and green gel. During 2000 close up ultra whitening was introduced

which doubled the sales. Looking at the sales of close up ultra whitening, Close up in 2003,camewith a new variant of whitening gel with lemon in it as the lemon mint refreshes and acts as a

local analgesic. It also contained antioxidant vitamin C. Vitamin helps in healing of wounds and

it tightens the gums. Now in 2007 Closeup is making an addition to its family by launching

Close up WHITENINGCINAMMON BLAST. It is Red gel with Fluoride which protects teeth

against cavities, including Microfoamers which gently cleans and whitens the teeth and

freshening breath sparkles - for extra fresh breath.

This same gel was launched in other regions and it received tremendous response. In other

regions of the world, the color of the gel is red Close up whitening cinnamon blast has sweet

cinnamon flavor & prevents tooth decay as well as provides cavity protection.

So far the Close up Whitening Blast is very successful as it is adopted as flavor of cinnamon and

also its natural shine. Among the close variants, whitening blast is expected to be the second

highest selling variant. Ultra whitening sells the most. Close up whiteningblast will be widely

available in urban cities in the beginning as well as rural areas in coming days.

Brand - Close up Whitening Cinnamon Blast

Close up White Cinnamon Blastis a line extension in the product line of Close up. It is a variant

to the existing brand Close up Ultra whitening. Close up ultra whitening was doing very well


6/32



since its launch in 2000 but it had reached the maturity stage and growth had slowed down, so

Unilever came up with Close up Lemon Mint in 2003 to bring the brand back in the growth stage

with accelerated sales and a further 5% increase in market share. It is also enjoying its growth

phase of Product Life Cycle. Whitening Cinnamon Blast will be an addition to the Close up

family expected to give a rise to the current market share and growth rate.

Since it is characterized by high sales and the company is expected to be able to not only cover

its cost of production by breakeven, it will also be able to generate substantial profits.

CLOSEUP WHITENING CINAMMON BLAST

THE PREMIUM TOOTHPASTE

RETAIL PRICE Excl. st. Rs. 35.43/-

CONSUMER PRICE: Rs. 40/-

NET WEIGHT: 75 ml


7/32



TARGET MARKET: Upper-Middle Class

BUYING PATTERN: Impulse Buying

PROMOTION STRATEGY: Billboards, Banners and Electronic Media

SLOGAN: Smile Without Hesitation with Close-up Cinnamon

New Close up WHITENINGCINAMMON BLAST with fluoride and cavity protection is a

unique combination of Cinnamon & Fluoride with enhanced Micro whiteners and Germ killing

mouthwash. Its Fluoride makes teeth stronger. Its Gel cleans mouth thoroughly to give shiny

white teeth. Its germ killing mouthwash kills germs deep within the teeth and gives long lasting

fresh breath. Its Micro whiteners scrub away the yellow in between the teeth and whiten them

every time one brushes.

It is not a paste rather it is a tooth gel with ultra whitening granules, which are specially added

for the whitening and polishing of teeth. Fluoride makes teeth stronger and gives cavity

protection. It not only strengths teeth and bones but also prevents bleeding gums. This

combination of Cinnamon with Flouride is a unique and exclusive combination concocted by

Unilever for the first time to introduce an innovative product in the market, which will be

appealing to the youngsters and entice them to try it.

When one will use Close up Whitening Cinnamon Blast for the first time, he will feel like he is

rinsing his mouth with fresh lemons and the essence of cinnamon will have a lasting effect in his

mouth throughout the day. Such is the experience, which he would like to go through again and

again. It leaves senses enthralled.


8/32



POSITIONING OF THE PRODUCT

Close up Whitening Cinnamon Blast is positioned in the mind of the consumers as premium

toothpaste providing superior quality at a high price. It is only targeting a small niche segment

represented by the youth of the country, therefore it has promoted the brand in such a way that it

will appeal to the youth. Its billboards amply prove that by the look and the slogan, which says

Smile Without Hesitation with Close-up Cinnamon ". As the toothpaste is a whitening


9/32



Upper lowerClass

blast, it whitens the teeth within 3 or 4 weeks so, one can smile with more confidence and that

the slogan suits best.

Since the image is that of a peppy, youthful product it will be positioned in the same manner by

erecting huge billboards all across the town, which have an eye-catching effect and splash a

colorful message about the product attributes and benefits.

Unique Selling Proposition

Close up Whitening Cinnamon Blast is the first brand in the market to come up with the concept

of cinnamon, which is a traditionally not used very often in Pakistan. It has the sweetening flavor

of cinnamon with the power of the ultra whitening granules to provide ultra shine and whiteness

to teeth also containing fluoride for cavity protection. Its unique selling proposition is its

composition of cinnamon with fluoride, which is known to provide for stronger gums and teeth.

Not only that it has the properties of fluoride germ killing and its mouth wash and micro

whiteners act fast on the teeth to provide strong shiny white teeth and super fresh breath.

TARGET MARKET


10/32



Upper

middle

PRIMARY

TARGET

SECONDARY TARGET

STAGES IN THE PRODUCT LIFE CYCLE

Lower

lower

class

Upper-

class

Lower

middle class


11/32



Product class

The product class of Close up Whitening Cinnamon Blast is tooth-cleaning products, which

include tooth powders, toothpastes, miswak and dental floss. These have the longest life cycles

and the sales of most of them stay in the maturity stage for a long time.

Product Form

The product form is toothpaste. They also enjoy a fairly long life cycle. Toothpastes are in thegrowth stage of the product life cycle as there is still competition emerging from different brands

and new brands keep coming in the market every now and then.

MARKETING MIX

Product

Close up product line includes close up green and red launched in 1986, followed by close up

ultra white launched in 2000 and Close up lemon mint, variant of the product line is launched in


12/32



2003. An extension to the product line by Whitening Cinnamon Blast which is been introduced

after the huge success of the Close up ultra whitening since its launch .Unilever wanted to

introduce a variant, which would supplement the already established Close up Ultra white, which

was doing very well and Close up Lemon Mint already in growth stage. So they came up with a

new product, Close up Whitening Cinnamon Blast with Fluoride, with the additional benefits of

cinnamon essence proven over the years to be a successful product for whiter, shinier teeth. The

introduction of Close up Whitening Cinnamon Blast is aimed to bring Close up back in the

growth stage as the Close up ultra whitening had reached maturity, so the launch of this variant

will bring the brand back to the growth stage with increased sales and market share.

Price

Since Close up Whitening Cinnamon Blast is a premium product, it is priced high. It has a very

high cost of production since it is a gel not paste, making it brand a cosmetic brand worthy of

charging a high price. The prices are internal driven decided by the headquarters of Unilever.

They keep a gross profit margin of 40%. The retailers profit markup will be 3.4%. The regular

size of Close up Whitening Cinnamon Blast will be 75 grams which will be priced at Rs: 40 and

the small pack of 13 grams will have a retail price of Rs: 20. We have kept a smaller sized Close

up Cinnamon Blast to skim the lower layers of the market due to its reduced price. The biggest

pack introduced at the time of launch will be a 150 grams tube for Rs: 80.

Promotion

Promotion is the key element in the marketing mix for a product. Consumer of close up

Whitening Cinnamon Blast will not be highly price conscious, as target market is the upper class

and the upper middle class. Since the product is planned to be launched on a very lavish scale to

create awareness about it and catch the consumers attention by its huge and attractive billboards

scattered in different areas of the city. The tag line is Feel in heaven with Close up


13/32



Cinnamon, as depicted in our advertisements as well as on the billboards. The concept behind

the ad will be that Close up Whitening Cinnamon Blast provides the user the confidence and

appeal as well as the charm and persona it takes to appear attractive and lure company. This kind

of a promotional strategy will seek to entice the youth, which is the main target market

comprising people between the age group of 16-25. It is built to identify with the mindsets and

psyche of this age group. Even though toothpaste is a low involvement product and it is

frequently purchased and that too by mostly mothers or housewives this segment of consumers

being targeted form an influential group affecting the choice of the brand for their mothers who

usually make the purchase, since this age group in Pakistan basically represents students or some

newly married couples.

The company at the time of launch will be introduced a very big family size pack of Close upWhite Cinnamon Blast of 150 grams for Rs: 80 with a free Lux Milk Cream and Almond Soap as

a sales promotion strategy which companies use in the introduction stage of a products life

cycle. This strategy will be adopted at the time of launch to induce customers to try out the new

product to trigger sales.

The initial target is to achieve 20%. The companys main objective is to increase the market

share of close up by an additional 5%.

At the time of launch we are focused on first filling the market by incentivizing the retailers. We

are sure to achieve this, as Close up is an established brand in the market with a good sales

turnover. We will also be providing brochures about the product at the point of sales terminal

apart from putting up banners in the various stores. We want to ensure that the product is

available in the market before the consumers even came to know of it through the

advertisements. This is to assure that the consumers would not be disappointed if they go to the

stores after learning about the product only to find out that it hasnt reached the outlets yet.


14/32



The product is differentiated with a very sound unique selling proposition, which will lead to its

ultimate success in the market. The cinnamon ingredient in the toothpaste is the baby of Unilever

as it is an unheard of concept in toothpastes in local market to date. We are the pioneers for this

new concept and will have successfully launched the product in various countries.

Place

The target market for Closeup Whitening Cinnamon Blast is the upper class consumer between

the age group of 16-25. To be able to reach them, they are aiming to supply and distribute the

product in all the urban areas and elite cities, putting it in all the significant and frequently visited

retail outlets. However these are the areas of concentration, so they will not ignore the other

areas totally. Even though most sales turnover will be reported from the urban areas sales arealso expected from some rural areas. To ensure maximum coverage and achieve maximum sales

potential, Unilevers will distribute the product in all the retail outlets where there are existing

brands of the Closeups product line. This strategy will help in covering all areas with even the

little amount of exposure.

MARKET SIZE

The calculated market potential shows that out of 14 million populations of Karachi 40% people

come between the age group 16 25 and due to one reason or the other 20% people will not use

Close-Up Whitening Cinnamon Blast. There fore as calculated by them, the market size for

Close-Up Whitening Cinnamon Blastwill be 20% of the entire market.

Calculation of Market Potential

Market Potential in Units = number of buyers x average consumption


15/32



Population of Pakistan = 160 million

Population between the age group of 16 25 = 40%

= 160000000 x 40%

= 64000000

Out of this population 10 % people do not have income

30% belong to lower lower class

30% belong to lower middle & middle class

4% people like using Tooth powder

3% people prefer medicated toothpaste

3% people do not like the cinnamon taste of Close-Up Whitening Cinnamon Blast toothpaste.

5% of the upper middle & upper class use other brands

And 15 % population which will use Close-Up Whitening Cinnamon Blast:

= 64000000 x 15%

= 12800000

So the market potential in units = 9600000

Market Potential in Rupees

Average toothpaste tubes used per month = 1

Price= Rupees.40 / tube

Total Market Potential

= Number of buyers x average consumption x price= 9600000 X 1 X 40

= 384000000

Sales Potential


16/32



Unilever target for the sales potential of Close-up Whitening Cinnamon Blast is at least 20 % of

the current sales and targeted for taking away at least 5 % market shares from English Tooth

paste.

CONSUMER BEHAVIOUR

Consumer Behavior while purchasing a certain product is influenced by two factors: buyers

characteristics and buyers decision process.

Characteristics Affecting Consumer Behavior for Toothpaste Category

Buyers characteristics influence how he or she perceives and reacts to a particular product or a

particular marketing stimulus. There are various factors, which shape up the buyerscharacteristics.

Culture

Culturally, Pakistani society is health conscious. Islam pays deep emphasis on personal hygiene,

therefore majority of the population are aware of the need for oral health. But as the majority of


17/32



the population lives in rural areas, they resort to traditional methods such as using Miswaak to

clean their teeth. Toothpaste manufactures have been creating awareness of the toothpaste

benefits and they have succeeded in gaining public trust. People living in urban areas are much

more aware of the health benefits of using toothpaste, therefore quality toothpaste are very

popular among the people dwelling in large cities.

Economic Situation

Pakistan has a weak economy where very few people can afford luxury items. For some people,

toothpaste is still a luxury item. People belonging to low-income class still use tooth powder, as

they are affordable. Toothpastes like Colgate and Close-up hold an inspirational value and

represent the well-off and affluent segment of the society.

Psychographics

Pakistani consumers are very social and like to mingle and socialize. Makers of cosmetic

toothpaste have focused on the particular segment of the society who is self confident and

outgoing. By studying the segments AIO (activities, interest, opinions), they have been

able to market a product like toothpaste as a representative of their lifestyle. Marketers have been

able to sell the image of youth with white teeth and fresh breath who are very popular among

their social circle.

Roles and Status

Traditionally, toothpaste manufacturers have marketed their brands as a family brand where all

family members use the same toothpaste. It has been a successful strategy for a long time, but as

the Pakistani society is evolving, each family member is becoming more aware of his or her role

and status. Toothpaste marketers are trying to evolve along with the society. Toothpaste

marketers have segmented the toothpaste market according to age and life cycle. Different

variants of toothpastes have been developed and exclusively targeted to kids and young teens of

the society.


18/32



Buying Behavior

Toothpaste is a convenient product where customer has low involvement buying behavior.

Customers may purchase a particular brand of toothpaste habitually or may try different brands

each month for the sake of variety. The challenge for toothpaste marketers is to convert the low

involvement behavior into the behavior where the customer becomes involved while purchasing

the product. Different marketing strategies have been developed by toothpaste manufacturers to

differentiate the products available in the market. Each manufacturer focuses on creating a

unique selling proposition, which makes their product stand out. Market leaders in the toothpaste

market try to encourage habitual buying behavior while the market challengers encourage

variety-seeking behavior by offering new variants of their products. Close-up adopts the strategy

in which they target the youth of today and promote their products to attract the teens and

involve them in the buying decision process.

MARKET SHARE

TOOTHPASTE INDUSTRY


19/32



SEGMENT ANALYSIS

Toothpaste market has been segmented on the basis of social class as well as benefits sought

from every toothpaste.


20/32



Upper Class Medium Class Lower Class

Medicinal Colgate Total Medicam

Economical English Mintocam

Cosmetic

Close upWhiteningCinnamon Blast/ Colgate

Whitening/ Close upWhitening/ Close up Lemon

Mint

Macleans

Family Health

BrandColgate Original Dentonic

MARKET SEGMENTATION

Demographic

Area/Regions/Density

Close-Up Whitening Cinnamon Blast Toothpaste targets all the major cities of Pakistan i.e.


21/32



Karachi, Lahore, Islamabad, Peshawar, Quetta, Faisalabad, Multan etc and there is mass

distribution in these cities.

Age (16-25)

Close-Up Whitening Cinnamon Blastis targeting a particular segment of the market that consist

of people between the age group of 16 to 25.Unilever also has this thought that when buying this

toothpaste for these youngsters, elders of the family may also end up using the same Close-Up

Whitening Cinnamon Blast toothpaste. Research shows that this age group prefers the brand to

the other brands due to different reasons.

Gender

Basically this product is a unisex product targeting both genders by the same token, reason being

that this is a consumer health product used by both genders equally.

Family Life Cycle

16 25 is an age group that mainly encompasses people who are teen-agers or young, single or

newly married as young generation has a great liking for junk food so they will prefer a

toothpaste with cavity protection.

Education

Mostly people who will use Close-Up Whitening Cinnamon Blasttoothpaste are people who are

educated and are health conscious, as they know that brushing teeth is an important part of

hygiene.

Occupation

Close-Up Whitening Cinnamon Blast is a toothpaste which will be used by people of every

occupation whether a doctor, student, teacher, lawyer, whoever.

Psychographics


22/32



Income Group

20000+ is the targeted income level for Close-Up Whitening Cinnamon Blast.

Social Class

Being a niche product Close-Up Whitening Cinnamon Blastwill be used by people belonging to

upper-upper class and upper-middle class. But research also shows that many people think that it

is highly priced but still they prefer it to other brands due to its high quality.

Lifestyle

People who will use Close-Up Whitening Cinnamon Blast toothpaste are all health conscious,

extroverts, out-going, trendy and social in nature. They will be inspired by advertisements and

packaging of the product as well. They dont mind paying a little more for popular & expensivetoothpaste, which gives them, complete satisfaction.

Personality

People who will use Close-Up Whitening Cinnamon Blasttoothpaste will be those who are more

health conscious, also fresh breath conscious, gregarious, ambitious, trendy & tasteful people

who use Close-Up Whitening Cinnamon Blastfor hygienic purposes and internal satisfaction, as

they know they are also getting the promised quality and cavity protection. They are

mesmerizing in nature. They want the best for themselves. And they even agree upon the fact

that they advice people to use Close-Up Whitening Cinnamon Blastbecause they think its worth

the price.

Behavioral

Readiness Stage

Target market is aware of Close-Up toothpaste as a product, and will know how Close up

Whitening Cinnamon Blast differs from other brands available in the market, the price it offers

and the image that is associated with it.


23/32



User Status

Majority users of Close-Up Lemon Mint are those who like trying new tastes or who are usingClose-Up toothpaste for quite sometime or people who like the combination of lemon and mint

together. Other users are people who have switched to Close-Up Lemon Mint from some other

brand and find it better then others.

Benefits

There are many benefits of usingClose-Up Whitening Cinnamon Blast toothpaste. First of all

its a quality product for keeping ones teeth clean. Second it just not cleans the teeth; it also

makes them ultra white; gives one a unique flavor of cinnamon. Third it provides cavity

protection and stronger teeth and gums. And last and most important of all it leaves breathe fresh

for long hours.

Usage Rate

Usage rate of Close-Up Whitening Cinnamon Blasttoothpaste will increase day by day, as its in

its introductory stage of its life cycle. Research shows that many people will get attracted to the

product due to the enchanting advertisements and word of mouth.

Loyalty Status

Nothing can be said about the loyalty status at this point of time as the product is in its

introductory stage. On one hand nothing can be said about the loyalty status as toothpaste is a

convenience good, but on the other hand research shows that many people are loyal to Close-Up

toothpaste as a brand.


24/32



Attitude

Attitude of people between ages of 16 25 towards the product is very positive. The image of

the product is of a high quality, trendy, spanking new and expensive toothpaste. Overall it is

imaged as a good quality product, which gives complete value to its consumers.

ISSUES AT THE TIME OF LAUNCH

There will be no issues faced by the company at the time of launch. They launched Close up

lemon mint because Close up is represented as an innovative brand and are continuing their

practice by launching Whitening Cinnamon Blast. In the year 2000, they launched Close up ultra


25/32



whitening and they had a huge success and their sales doubled. Because of that they took out a

new variant in 2003. They expected a sale of 20% by the new Close up lemon mint, but they got

sales of 35%, which is a tremendous success. They actually extracted the sales from Colgate,

which they never even thought about. We are launchingWhitening Cinnamon Blast for which

we have used a very attractive glossy and metalized material for packaging. For which we have

done outsourcing. Their cost of production is very high as we are manufacturing gels not pastes.

SWOT ANAYSIS

CLOSE UP Whitening Cinnamon Blast

Strengths

y Close ups greatest strength is the blind trust of the consumers in the brand.y The entire product range has extremely high brand awareness.


26/32



y The quality of the product is maintained at high standards under the supervision ofUnilever International.

y In the toothpaste category its the only Cinnamon brand available in Pakistan.y It is perceived as a modern brand as compared to other brands as it caters to the youth.y Its greatest strength is its combination of gel, cinnamon and fluoride. The gel with its

whitening formula while it refreshes and acts as a local analgesic.

y Close up Whitening Cinnamon Blast have antioxidant. Fluoride helps in making teethand gums strong.

y Close up Whitening Cinnamon Blast will be widely available in urban cities as well asrural areas.

y Leaves teeth feeling extra clean and mouth feeling extra fresh.y Close up Whitening Cinnamon Blast provides for cavity protection.

Weaknesses

yThe brand suffers with an image problem. Close up focuses on the upper segment, just theteenagers.

yClose up Whitening Cinnamon Blast has a sweet flavor which people of Pakistan are notused to of.

yClose up is priced very highly Rs 40 for 75 grams and Rs 20 for 30 grams.yAs close up is gel based so its total cost of production is very high.yConsumers perceived close up to be little expensive.

Opportunities

y As close up Whitening Cinnamon Blast is in its introductory stage of product life cycle, it hasa huge market.

y The branded market has been receiving a warm welcome in the metropolitan areas of


27/32



Pakistan.

y People are becoming health conscious and are switching to brands offering vitamins, cavityprotection and teeth whitening attributes.

y There is a growing segment of young people trying to socialize and project them selves ascool young group. Therefore, the Whitening Cinnamon Blast with its whitening abilities and

cinnamon flavor stand a very good chance.

y In the toothpaste category its the only Cinnamon brand available in Pakistan. So it can bepriced very highly.

y No competition in this segment from other brands.y Close up has innovative packaging glossy and metalized. All other tooth pastes have simple

packaging.

Threats

y The unbranded segment comprises an enormous 50 % of the market share.y Toothpaste is a convenience good, not much brand loyalty.y Close is facing threat from smuggled (imported) brands, which are snatching away the

market share.

y Close ups biggest challenge would be to grow with the existing products.y Close ups direct competitors is Colgate which is much famous in the market.

COMPETITION

Basically four players namely; Medicam, English, Colgate and Close up dominate the branded

market of toothpastes in Pakistan. Besides this there are a very large number of un quantifiable

imported products in the toothpaste category. Therefore it becomes highly difficult to estimate

the market size.

Close up has many competitors all around Pakistan. Medicam is projected as cure for bleeding

gums and it is a premium product as it is priced very highly. English is projected as economical

family toothpaste and is priced very low as it caters to the lower income segment. Colgate


28/32



provides cavity protection and it is the direct competitor of Closeup. Besides these Closeups

huge competitors are smuggled brands and imported toothpastes.

In the toothpaste market, Medicam with its healing properties is a sure shot market leader.

However, Close up lemon mint is the market leader in the teeth whitening category.

The branded oral health care market is divided into toothpaste 52 % market share and tooth

powder 48% share. Among the 52 % of toothpaste, the market share is divided between the

smuggled imported brands and local brands such as Medicam, English, Colgate and Close up.

Close up has the youngest image in the mindset of the consumer, as it was the first one to market

toothpaste in trendy, glossy and metalized packing. Colgate and other brands that are trying to

keep up with competition also introduced new packaging. However, only Close up owns this trait

in the mind of the consumer.

Competitive strategy to deal with all the competitors at the same time would be designing one

strategy to deal with a competitor in a particular region, which would affect the sales and image

of the same product in the other region. Hence an extensive research is required to design a

competitive strategy according to a particular situation on hand.

As the market for toothpastes is characterized by perfect competition, a single firm cannot alter

the price by making alterations with its output. However, under perfect competition, the most

attractive strategy to attract customers is through price cuts. But as Close up is a market leader in

teeth whitening and is positioned as a youth brand, it should not go for a price cut option as it

might create a negative impression in the minds of loyal consumers.

The main reason could be attributed to the fact that consumer have low involvement with tooth


29/32



pastes products and they usually buy on price alone rather than passing through the normal

sequence of belief, attitude and behavior. There are not much visible differences among tooth

paste brands, and almost all brands have the same qualities, so consumer cannot distinguish

between different brands, they make their buying decisions on price alone. Also the whole family

is not involved in the decision-making. The housewife could be the decider, and the influencers

could be friends, family and advertisements.

STRATEGIES TO ADOPT IN LATER STAGES

OF THE PRODUCT LIFE CYCLE

GROWTH

Close up Ultra Whitening had reached the maturity stage, and the introduction of Close up

Lemon Mint is in growth stage but its sale is reaching in stable condition. Launching of Close up

Whitening Cinnamon Blast brought the brand back into the growth stage. Currently our product

Close up Whitening Cinnamon Blast is in the introductory stage, it is expected to have high

acceptance in the market and increased sales turnover reaping profits for the company. But


30/32



as the product will move to the growth and maturity stage they will have to adopt different

strategies to keep it afloat in the market.

MATURITY

Maturity stage is characterized by a decrease in the growth pace of the product. The sales have

stopped growing or have slowed down. This happens when your product has been tried and

bought by everybody in the market whom you were targeting but now there is no further increase

in sales. In this stage if you do not differentiate your product, competitors can take over the

market share by coming up with something new and different.

The first and foremost thing that should be done is to retain the market share by holding onto

existing customers, by providing them with additional benefits. They can also bring about moreaugmentations in the product to make sure that it continues to entice the consumers and hold

onto their interest.

Another strategy would be to expand the market. Venturing into areas not covered previously

and developing the market for the product. Since Close up Whitening Cinnamon Blast is only

targeting the upper class segment, there might still be some areas, which are neglected. They can

tap into these areas by launching an economy pack for middle class people such as the white-

collar officers in the age group of 20s who have

the desire to follow the trend and try the toothpaste but maybe cannot afford it at this price.

Secondly they can build primary demand. This can be done by educating people about the

benefits of brushing teeth after every meal and creating more demand by increased usage. They

can promote this in their advertisements by telling consumers to use the product thrice a day after

every meal.

DECLINE


31/32



This stage will only occur when the product has completely gone off the priority list of

consumers and they are no longer interested in purchasing it anymore. It has nothing new to offer

and it has failed in the face of fierce competition and rival brands.

This situation occurs a lot of times when a new technology is introduced in the market and the

existing companies are tentative about adopting it. They stick to their old methods and

techniques of production and therefore lose out on much lucrative opportunities.

The idea is set a trend rather than follow it. We want to be the innovators. We would want to be

the first ones to come up with a new idea or technology and present it in an attractive package to

the market.

We can also come up with a line extension or a new variant to revitalize sales and breathe life

into the dead brand. We can do this by changing the form and shape of the product

or adding something extra to come with a totally new unique selling proposition. In some cases

however we will have to come up with a totally new product to trigger interest of the consumers.

MEDIA GRAPHICS

Close-up Whitening Cinnamon Blast will target its consumers through different media graphics

such as news paper, radio, press, internet, billboards, and mainly through advertisements and

outdoor activities.


32/32


35893379 marketing report final

Documents