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Executive Summary
Topgallant Group which has started their business with ababy care product named Rowlly Special since 2001. TheGroup is very renown for its personal and home careproducts. As a team of marketing executives we have madea plan for lunching a new brand Acacia from the company.Acacia is beauty care soap, which is a new beauty careproduct of our company going to be marketed very soon.
Topgallant family is going to manufacture and market
beauty care soap for the first time. We are following thestandard process of marketing plan includes: 1.Productreview 2.Current market situation 3.Threats and opportunityanalysis 4.Objectives and issues 5.Marketing strategy6.Actions program 7.Budget 8.Controls.Each and everypoints has to be well-organized because of this kind ofproduct. Topgallant family has several competitors. We havetaken the 4ps that is marketing mix for the planning andanalysis. At first, we have shown details about the market
situation to understand the market place and customerneeds and wants. Then, we have analyzed our brand andproduct. After that, we made SWOT analysis to design acustomer driven marketing strategy. Finally, we constructeda marketing program that delivers superior value, to buildprofitable customer relationship and create customerdelight.
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Introduction with the Company
Topgallant Group started its journey in 2001 by launching a
single product named Rowlly Special. But with thedevelopment of time, they have spread out with differentkinds of products and they are now recognized as one of therenowned brand in Bangladesh. The corporate head office of
Topgallant Group is situated at Gulshan in Dhaka. It is 8storied building with highly lucrative furnishing. The factoryis located in Gazipur on 120 bigha land. It has 10 regionaloffices and it has distributor in 64 districts. The Chairman of
Topgallant group is Rezaul Karim. The group has also steelbusiness and paper business. The steel mill and paper mill is
also located in Gazipur. Gazipur plant has four units. Two ofthem are for home and personal care productmanufacturing, one is for steel product and the other is forpaper product manufacturing. They are using latesttechnologies for the production of personal and home care.
Topgallants business method is competitive with the othermultinational companies operating in Bangladesh. Thebrands which have been introduced by them in the markethave a strong image. The brands have very high demand in
the market. Though they have come only a few years ago,but they have achieved a good market share in the similarproduct market, with the other companies. Within a veryshort time it has created a value among the consumers. But
Topgallant Group is renowned for its health care and homecare consumer products. Over the last 9 years, TopgallantGroup has been constantly bringing new and world-class
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products for the Bangladeshi people to remove the dailydrudgery of life. Over 85% of the countrys households useone or more of our products. Including the top management8000 employees are working in this group. They are
altogether leading the company through the competition inthe market. The group is always eager to employ high skillprofessionals besides its practice to develop the humanresource by training. They maintain a good corporate cultureinside and outside the company. The Group believes inhighly efficient management capability.Their purpose is tomeet the everyday needs of people everywhere to anticipatethe aspirations of their consumers and customers and torespond creatively and competitively with branded productsand services which raise the quality of life.
With all these aspects the Topgallant Group wants to lead inthe competitive market of Bangladesh by gaining customersatisfaction and creating value for them.
The Products
The list of products has been given below:
Fabric and Home Care Products: Zarix, Mr. Clean, SmashAerosol, Smash Coil, Hinder, Hinder Total, Wizard.
Beauty Care: Malina.
Baby and Family care: Rowlly Special: by launching it wehad started our journey in 2001.
Health Care: Brisk liquid, Brisk Soap, Disprin.
Miscellaneous: Air Mail
Our leading product is Rowlly Special. Its a baby and familycare product becomes a core brand. Another successful
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brand is Brisk liquid and soap. The brands also capture agood market share within a very short time.
Business Strategy
People's lives are changing fast. As the way we all live andwork evolves, our needs and tastes change too. At
Topgallant they aim to help people in their daily lives. Sothey keep developing new products, improving tried andtested brands and promoting better, more efficient ways ofworking.
They have a portfolio of brands that are popular across thecountry. This popularity came* Strong roots in local markets and first-hand knowledge
of the local culture.* World-class business expertise applied nationally to
serve consumers everywhere.
Focusing on performance and productivity, they encouragetheir people to develop new ideas and put fresh approachesinto practice. Hand in hand with this is a strong sense of
responsibility to the communities they serve. The groupdoesnt only measure success in financial terms; how theyachieve results is important too. They work hard to conductour business with integrity - respecting their employees,their consumers and the environment around them.
Introducing New Brand
Topgallant family wanted to enter a new market bylaunching a new product named Acacia to dominate the soap
market. The Marketing Processa Five-Step Process-
1. Understand the marketplace and customer needs andwants
2. Design a customer-driven marketing strategy3. Construct a marketing program that delivers superior
value
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4. Build profitable relationships and create customerdelight
5. Capture value from customers to create profits andcustomer quality
The estimated size of market for beauty soap is Tk 22 billionin Bangladesh. As it is a matured market, so the scope forgrowth is limited. To gain the market share in thisenvironment, what will be the marketing strategy? Acaciamust follow the customer driven marketing strategy. Onecould be appropriate for the current situation isdifferentiating market strategy.We should first segment the market, target that market andposition our product.
Our marketing challenge is to position a high-quality, highvalue-added product in the present competitive market.Our focus on the market would be, to gain a customer andnever lose them.
Topgallantis going to introduced Acacia beauty soap in themarket wherecompetitors of Soap Company like Lux, Meril, Aromatic, Keyaand Tibet capture the market.
Lux: Lux beauty soap is introduced by Unilever. Mostof the market share; probably 30% share is capture byonly Lux. Soap market is dominated by Lux.
Meril: Meril soap is one of the products of SquareConsumer Product Ltd. After Lux, Meril capture 18%of total market share.
Aromatic: Aromatic soap is launched by AromaticCosmetics Ltd. Their selling proposition is providingvariety of flavors. Aromatic gained 12% of total marketshare.
Keya: Keya Cosmetic Ltd manufactures the Keyabeauty soap. Their selling proposition is variety of
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flavors and beautification. Keya capture 11% of marketshare.
Tibet: Tibet soap is under ofKohinoor CosmeticsLtd. Their selling proposition is variety of flavors. Tibet
gained 9% of market share.
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Table of Competitors products and prices:
CompetitorsBrandName
PackSize
Price
Marketing
Company
MfgCountry
SellingProposition
MarketShare
Acacia 125gm.85 gm.45 gm.
TK 20TK 16TK 8
Topgallant
Group
BD Enhancement ofnaturalbeauty
?
LUX 100 gm.75 gm.40 gm.
TK 20TK 15TK 7
UNILEVER BD Variety of flavors,beautification
30%
MERIL 100gm.85gm.35gm.
TK 20TK 17 TK 7
SquareConsum
erProducts
Ltd
BD UsualVariety offlavors
18%
AROMATIC 75 gm. TK 16 AromaticCosmetics Ltd,
JamunaGroup ofIndustrie
s
BD UsualVariety offlavors
12%
KEYA 100 gm.
75 gm.35 gm.
TK 18
TK 16TK 7
Keya
Cosmetics Ltd.
BD Variety of
flavors,beautification
11%
TIBET 85 gm.35 gm.
TK 16TK 7
KohinoorCosmetics Ltd.
BD Variety of flavors
9%
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Miscellaneous
-----------
--------
Misc Misc Misc 20%
Product Review
Product: AcaciaA new range of beauty soap from Topgallant Group
Product Type & Flavor:We are going to offer four types of beauty soaps
with four different features at first:-
Acacia in Green: For oily skin Acacia in Blue : For dry skin Acacia in Pink : For normal skin Acacia in Lemon : For combination skin
Benefits of Acacia:
We avoid using harmful chemicals and our soap isbase free.
Our soap contain lower levels of alkalinebalancedPH factorsoft and supple skin
Minute exfoliating particles to scrub away deadcellscleaner and firmer looking skin
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Our soap content Anti bacterial which reduce acneand pimples
Deodorizing agents keep body odor at bay
Acacia is 100% herbal, and thus halal andhypoallergenic.
SWOT Analysis
Strength:
Topgallant Group can build on four important strengths-
Capture the Market
Deliver Superior Value
Strong in Technology
Competency
Weaknesses:
Topgallant Group first time going to introduced the Acaciabeauty soap, so as new comer we have two mainweaknesses-
Lack of Brand Awareness
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Lack of Managerial Depth
Opportunity:
Topgallantcan take advantage of four major marketsopportunity-
Mass Promotion
Countrywide Distribution
Increase Demand
New Market for new Product
Threats:We face four main threats at the introduction of
Acacia beauty soap-
Enhanced Competition
Downward Pricing Pressure
Difficult to Manage Distributor
Changing Buyer Taste & Preference
Objectives & Issues:
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We have set aggressive but achievable objectives for thefirst, second and third years of market entry
Target towards Market share
Year 1 2%
Year 2 5%
Year 3 10% to 15%
Marketing Strategy:
Marketing strategy includes doing Market segment, decidingtarget market, positioning,
Market Segmentation: Dividing a market into distinct groupswith distinct needs, characteristics, or behavior who mightrequire separate products or marketing mixes.
Segmenting Consumer Markets-
Demographic segmentation
Most popular segmentation
Psychographic segmentation
Lifestyle, social class, and personality-basedsegmentation
Behavioral segmentation
Beauty soap consumers can be divided in four segmentsdepending on their income. On the basis of their purchasing
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power, rate of consumption and the cost to serve eachsegments attractiveness is discussed bellow:
Lower middle class
Middle class
Upper middle class The rest of the upper class
After evaluating all the segments we consider these twosegments as profitable for us to serve:
1. Upper middle class: This segment has goodpurchasing power and high rate of consumption. And itwill not cost much to satisfy them unlike the upperclass segment.2. Middle class: This segment represents a huge poolof consumers and they account for much of thequantity sold.
The positioning statement:To individuals who desire to add some value to their dailyordinary lives, Acacia is the unique soap that offers morethan any other brand, because it has the most exclusiveof benefits available in the most convenient way ever
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Product Strategy:
Acacia beauty soap will offer more benefit and greater valueduring the following year with different color, size and otherfeatures.
Goals of Acacia:
Capture attention of target market
successfully
Target consumer needs
Position the product effectively, efficiently
and profitably for fulfilling consumers
perceived values
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Grow through implementing effective
marketing strategies
Pricing Strategy:
Price-The amount of money charged for a product or service, or
the sum of the values that consumers exchange for thebenefits of having or using the product or service.Market Skimming-
Setting a High Price for a New Product to SkimMaximum Revenues layer by layer from the segmentswilling to pay the high price.
Results in Fewer, But More Profitable Sales.
Market Penetration-
Setting a Low Price for a New Product in Order toPenetrate the Market Quickly and Deeply.
Attract a Large Number of Buyers and Win a LargerMarket Share
Acacia will implement the pricing strategy of marketpenetration.
Acacia beauty soap will be introduced in three categories
with four different features.
Price and Pack Sizes ofAcacia
Pack sizes Price
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125gm Tk.20
85gm Tk.16
45gm Tk.8
Distribution Strategy:
Acacia brand products will be distribute through a network ofselective store and non store retailers in the overall market.Among the most important channel partners being contactedare-
Company Sales Force
Manufacture Agency
Industrial Distributor
Communication Strategy:
Television is one of the most powerful media foradvertisement. We will broadcast sensationaladvertisements that create interest in the viewers andattracts.
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Radio is potentially a good opportunity forcommunication. Our target buyers listen to local news,talk shows, and sports. So we get a great opportunity toattract our buyers through radio.
Billboards will be setup in attractive locations wherethey can easily attract attention. Electronic billboardswill be set up in some selective important locations.
Posters and leaflets will be posted in variouslocations primarily to create awareness
Action Programs:
April:
Attracting & Managing dealers Convincing it will be profitable for them
Educating them about the productMay:
Product Launch
Large scale promotion Broadcast media : TV, Radio Print media : Newspapers, magazines Billboards, Posters, Leaflets
June:
Offering discounts to dealers Reduction in whole sale price/price off
Offering free goods in a bundleJuly:
Arranging sales competition
Bonus for high performance
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Commission on the basis of sales made
August:
Launch of new advertisements
To make conviction and purchaseSeptember:
Market survey
To measure customer satisfaction
To evaluate the effectiveness of ourmarketing programs
Budget:
Break Even Analysis:
The Break even point that is break even volume has beenshown below-
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Profit at different years:
Size Pric
e
Wholesale
Price
Variable
Cost
Fixed cost Break Even
Volume
125 gm 20 17.00 15.00 140,000,000 70,000,000
85gm 16 13.00 11.50 35,000,000 23,333,333
45gm 8 5.75 5.00 25,000,000 13,333,333
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Year Expected
sales
Expected
Revenue
Expected
variable
cost
Total cost Total
Revenue
Profit
2010 15,000,000 255,000,000 225,000,000 365,000,000 255,000,000 -110,000,000
2011 25,000,000 425,000,000 375,000,000 740,000,000 680,000,000 -60,000,000
2012 30,000,000 510,000,000 450,000,000 1190,000,000 1190,000,000 0
2013 34,000,000 578,000,000 510,000,000 1700,000,000 1768,000,000 68,000,000
Controls:
Evaluating marketing strategies in attaining goals andobjectives
Comparing actual performance with expectedperformance
Comparing with competitors performanceMaking corrective actions
Reference:
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a) Principles of Marketing, Philip Kotler & Gray Armstrong(12th edition)
b) www.google.comc) www.wikipedia.org
http://www.google.com/http://www.google.com/