Strategic Marketing

Syed Ali Kamran

M. Farhan Saleem

Hussain Zain ul abideen

Opportunity Seizers

Company Profile:

Type of Business: Product IndustryCompany Name: GFK detergents co.Product: Spin N Clear!USP: Cost focus, DifferentiationLogo:Tag Line

Type of Business: Product IndustryCompany Name: GFK detergents co.Product: Spin N Clear!USP: Cost focus, DifferentiationLogo:Tag Line

Spin N Clear

Vision

Mission

Touching HeartsChanging Lives

Mission is to add Vitality to life. Meet everyday needs for nutrition, hygiene and personal care with brands that help people look good, feel good and get more out of life.

Grow superior brandsImpactful innovationCompletive functional benefitsImpactful and effective communicationWin with customersDeliver best customer serviceFit to competeDeliver vitality

Core Values

Marketing Strategies

Different Stains

Introduction to Industry

Pakistan’s Laundry Industry

Pakistan’s Laundry Industry

Detergent Market Soap Market

Major Players in Detergent Industry are

Customer Analysis

Geographic Segmentation

Location All over Pakistan (rural urban)

Population 180million approx

Demographic Segmentation

Age 18 and above

Family Size Small / Nuclear Family

Occupation Housewives / Mothers

Target Market

Physiographic Segmentation

Class Lower Middle Class, Middle Class, Upper Middle Class and Upper Classes

Those who want their kids to learn while growing but conscious of dirt.

Psychological Characteristics

Brand Conscious, Status Conscious, Highly Educated, self motivated

Behavioral Segmentation

Motives Self Actualization

Category High End Needs

Involvement Low Involvement

Benefit Sought Segmentation

Stain Removal Want stain removal in one go/wash

Customer Analysis

Customer Motivations

Unmet Needs

Complete cleaning of stains and all in just one wash

A customer wants to save energy and water while doing their laundry.

Customers want to reduce the laundry burden and thus are looking for complete cleaning of stains in one go.

Customers looking for a detergent which takes care of their hands also (doesn’t dry them)

Over price and quality customers prefer good quality so that their laundry job is done without any nuisance

Reduces wrinkling so less ironing.

Uses less water-with water issue.

Anti bacterial formula-doesn’t allow germs to form when you sweat

Going for different skin types/allergies-people who have dry

Competitor Analysis

Direct Competitors

Class Middle Class, Upper Middle Class and Upper ClassesFamily Size Small FamilyOccupation Housewives /

Mothers

Class Lower Middle Class, Middle Class, Upper Middle Class and Upper ClassesFamily Size Medium / Big

FamilyOccupation Housewives /

Mothers

Market Analysis

Actual Market Size

•Market demand of 230,000-240,000 tons of detergents.

•The local detergent industry is producing around 175,000 tons.

•There is demand-supply gap of about 55,000 tons.

•Laundry Detergent Powder (LDP), as its market stands at 240,000 tons annual with a growth almost 10 percent a year.

Market Potential

•Detergent Market is growing by 10-12%.

•At present Consumer prefer detergent on the base of quality, especially the upper class they are very quality conscious

•Pakistani Peoples are moving from rural areas to urban areas as life style is changing.

•Advertising is promoting the detergents by comparing the functionality of different detergents and laundry Soaps.

•Increase awareness of usage benefit of detergent.

•Preference to use detergent to avoid the bad smell which comes from washing with soaps (as advertised by LDP’s)

Industry Attractiveness Summary

Components ImplicationsThreat of new entrants High

Bargaining power of buyer Low

Threat of substitutes Moderate to low

Bargaining power of suppliers Moderate to low

Threats of rivalry among competitors

Moderate to low

Internal Analysis

SWOT Analysis

SWOT Analysis

Strengths Strong brand image and brand awareness of ‘Spin N Clear’.

Large sales force.

Strong and healthy relationships with distributors and retailers.

Strong brand portfolio

Wide Innovation aspects

Excellent distribution

Success of slogan-stains are good

WeaknessStrong competitors

High price of product

Substitute product

Opportunities

Changing life style

New markets

Increased standard of living

More awareness

High rate of population growth.

Rising literacy.

Threats

Unbranded/ smuggled washing powder

Political issues

Rising inflation,

Profit margin is exposed to rupee devaluation.

Threat of imposing regulatory duty

BCG Matrix

PLC:

Recommended Strategies

Objective

“To be the best possible cleaning solution in the market”

Sub - Objective

•Approaching new markets•Innovation•Maintaining brand loyalty

Brand Association

Stain removal

Powerful cleaning

Brightness of colors intact

Good packagingGood fragrance

Value Proposition

Functional Benefits

Cleans and protects

Emotional Benefits

Stains No More!

Self expressive

Learning by doing

Target Market

Main segment Housewives/ Ladies

Another segment Laundry business

Niche Market Students and other groups etc.

Product Launching a specialist powder which is exclusively used for Machine washing and Tub washing .

Price Spin N Clear is a Quality product with affordable prices.

Place Same distribution through modern trade (superstores) and kiryana stores etc

Promotion

Regular education and awareness-building campaigns

Stock availability in relevant outlets.

Moreover, as consumers become more aware it is important to build credibility of an offering like Spin N Clear product line.

Marketing Mix

Product:Spin n Clear is devised to cater the needs of customers and provides the best solution for their dirty cloths.

PricePenetration Strategy:

The prices of spin n clear detergent powder for various sizes of packages are as follows; 2Kg --------------------------------Rs 199.001 Kg --------------------------------Rs 99.00500g --------------------------------Rs 59.00200g -------------------------------- Rs 29.0065g --------------------------------Rs 9.00

4 P’s

Suppliers

Marketing Intermediaries

Customers

Competitors

Publics

Micro-environment:

Macro-enviornment:

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.

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.Occupation:• Students , Working people and Housewives.Social class:• Upper class , Middle class and working class.

Demographics:

Spin N Clear buyers, because when it comes to personality values than no compromise.

• Lifestyle: Achievers , Strugglers and Ambitious people.• Personality: Hygiene conscious , Strong and Authorative.Promotional Target Market:• Promotion of the product in the target market is very

important to create sales.Age Group:• Matured age group:• By launching the detergent in polythene pack.• Young age group:• By launching it in a colorful and attractive pack.

Psychographics:

The distribution of SPIN N CLEAR is done by a distributing agencyThe company has divided Pakistan into 2 parts:• Sindh• PunjabSindh is further divided into 3 zones:• Karachi• Hyderabad• SukkurPunjab is further divided into 4 zones:• Lahore• Faisalabad• Islamabad• Multan• Each zone is fed by a warehouse , which feeds 60 towns around each zone.

Distribution Strategy:

Distribution StructureDetergentIndustry

National Sales Distributor

Regional Sales Distributor

Common Distributors

Wholesalers

Large Retailers

Macro Outlets

Retailers

Final Consumer

IMC:

•Hoardings•Danglers•Paper ads•Truck floats•TV ads•Radio ads

Hoarding:

BUS Floats

Promotional Campaign:

Strategy Alternatives

Improve packaging of product as the current plastic bags once get opened are hard to maintain and handle.

Branding some local laundry shops and selling the product to those shop owners at minimum revenue.

Go into new products like liquid washing solution / laundry detergent that is super concentrated so you use 75% less liquid could be the, meaning less packaging and easier carrying.

Attracting consumers through detergents with functional benefits such as scents, creating new forms of products such as liquid detergents.

Entering adjacent markets such as the pre-wash and post-wash segments.

Strategy Alternatives

• Fixed Costs• Product Launching Cost• Unit Cost (Variable Cost)

Financial Aspects: