Dentonic Report
Dentonic Report
Dentonic Report
NIC
TOOTHPO
WDER
Marketing Management
Report
SUBMITTED TO:
Nizar Noorali
DATE:
8/12/2013
SUBMITTED BY:
Benazir Burhan
MArham Zafar
Noor Ul Ain
Warda Mairaj
Subata Iftikhar
Areeba Iqbal
Table of Contents
Company Mission
Statement...............................................................................................5
Company
Background........................................................................................................
.5
Introduction to Dentonic
Powder.........................................................................................6
S.W.O.T
Analysis..............................................................................................................
.. 7
Boston
Matrix.................................................................................................................
.....8
Ansoff
Matrix.................................................................................................................
.....9
Market
Development................................................................................................
...9
Diversification..............................................................................................
................9
Market
Penetration:..................................................................................................
....9
Market
Development:..............................................................................................
....9
Product
Development:..............................................................................................
...9
Diversification:............................................................................................
................9
Product
Mix.....................................................................................................................
..10
Micro
Environment........................................................................................................
....12
The
Company......................................................................................................
.......12
Suppliers......................................................................................................
..............12
Marketing
Intermediaries...........................................................................................1
2
Customers....................................................................................................
..............12
Competitors..................................................................................................
..............12
Publics..........................................................................................................
..............13
Macro
Environment.......................................................................................................
....14
Demographic Forces
.................................................................................................14
Economic
Forces........................................................................................................1
4
Natural
Forces...........................................................................................................
.14
Technological
Forces.................................................................................................14
Political
Forces...........................................................................................................
14
Cultural
Forces...........................................................................................................
15
Market
Segmentation......................................................................................................
...16
The Segmentation
Chart........................................................................................... .16
Psychographic
Segmentation.....................................................................................16
Behavioral
Segmentation...........................................................................................16
Target
Marketing...........................................................................................................
....17
The Marketing
Mix............................................................................................................18
Product ........................................................................................................
..............18
Price.............................................................................................................
..............18
Place.............................................................................................................
..............19
Promotion.....................................................................................................
..............19
Research..............................................................................................................
...............21
Hypothesis:..................................................................................................
..............21
Description and
Results............................................................................................. 21
Conclusion...................................................................................................
..............21
Questionnaire......................................................................................................
...............24
Product Life-Cycle
Strategies............................................................................................25
The Product Life-Cycle
(PLC)...................................................................................25
Product Development
Stage.......................................................................................25
Introduction
Stage......................................................................................................25
Growth
Stage............................................................................................................
.26
Maturity
Stage............................................................................................................
26
Decline
Stage............................................................................................................
.26
Recommendations...............................................................................................
...............31
Company Background
S.W.O.T
Analysis
Strengths:
Weaknesses:
No correspondence with dentists.
Bad word of mouth from desists & consumers.
Weak promotional strategies
Opportunities:
There are no local toothpowder brands afflicted with PDA currently, except
for Dentonic Fluoride toothpowder, whereas International brands such as
Colgate & MacLeans are foreign affiliated as well as with PDA.
Dentonic toothpowder can target the Classes B+ more effective once they
get affiliated with either BDA or ADA.
Product line-extension plans coming up to improve Dentoinics brand name
& increase the over all companys market share, as they plan to enter in
every field of Oral Care products. Example: Mouth wash (spray), Fresh
Breather & Toothpowder for KIDS.
Threats:
Wide
variety
of
International
Substitutes
can
destroy
Dentonic
Ansoff
Matrix
Existing Products
Existing Markets
Market Penetration
Increase distribution
New Markets
Market Development
Export markets
New Products
Product Development
Dentonic Plus
New packaging
Diversification
Toothpastes
Market Penetration:
Dentonic Toothpowder has a huge distribution network consisting of 10 vans to distribute
in Karachi. They distribute to CSDs, departmental stores, utility stores, etc. Outside
Karachi, they have 250 distributors, covering 15000 shops every month.
Market Development:
Ala Chemicals started exporting its products to different countries such as U.A.E, Saudi
Arabia and Sri Lanka. Dentonic also gave a franchise in Bangladesh, from where the
toothpowder is sent to Calcutta, India.
Product Development:
Ala Chemicals developed a new toothpowder, Dentonic Plus which generates foam
when applied, unlike their regular toothpowder. This is to make the toothpowder feel
more like toothpaste.
Besides the new product, Ala Chemicals also changed Dentonic Toothpowders
packaging and introduced a press-to-open lid cover, which is more convenient for
Consumers. Dentonic also has different packaging for export products.
Diversification:
Apart from the toothpowder business, Ala Chemicals launched its
toothpaste 5 years back. Now they have a whole range of toothpastes,
which includes the regular toothpaste, Dentonic for sensitive teeth and
Dentonic Ultrawhitening Gel (mainly for export).
Micro
Environment
The Company
Dentonics owners work in a very coordinated way. Currently two brothers are
running the company with their father as the chairperson. Mr. Saghir Alvi handles the
marketing and sales while Mr. Zaheer Alvi handles the production. Managers are
hired for departments such as finance and human resource etc who are supervised
by the owners.
Suppliers
Ala Chemicals has to deal with many different suppliers. They acquire their
raw materials from Standard Chemicals ltd, packing labels are supplied by Tariq
Process and Cartons are purchased from Islamic Packages. Essential oils and flavors
are imported from England and China.
Marketing
Intermediaries
Ala Chemicals have a fleet of distribution vehicles within Karachi. Apart from that
they have 250 distributors within Pakistan to sell their product. They have also hired
20 people to work with the distributors and go shop to shop in looking for new
opportunities or to inform if stocks are running out. Ala Chemicals sells either directly
to retailer or through wholesalers, but when we asked them which way they prefer
more, they answered, selling directly to retailers as that way they can get better
market feedback and can keep better quality controls, by supplying fresh stock.
Customers
Dentonic Toothpowder is a personal consumption product and is sold to households.
Dentonic is basically used by the lower income class people. The consumers in Pakistan
are very loyal and do not like changes. This is one of the reasons why Dentonics
packaging and appearance has been the same over so many years. On the contrary,
Dentonics packing is totally different abroad, and the powder is packed in a different
designed bottle which is suitable to and accepted by those consumers.
Competitors
Ala C h e m i c a l s h a s a t o o t h p o w d e r m o n o p o l y i n P a k i s t a n . Many c o mp a n i e s
t r i e d launching toothpowder, but failed. For example, Colgate launched a toothpowder
by the name of Trident, Khass powder was launched by Medicam group in 1989 and
even Unilever almost launched a toothpowder under the banner of Pepsodent which they
later launched in India as they could not compete with the low margins of
Dentonic. Dentonics international competitor in the U.A.E is Ukril.
Publics
Ala Chemicals works a lot with Dental associations and consult dentists, as they are an
importance to the toothpowder. Ala Chemicals invites dental universities to bring their
students to visit the factory and see the level of quality and learn about the product, so
that they could recommend it when they start their practice. Ala Chemicals is the only
Pakistani Company approved by Pakistan Dental Association.
Macro Environment
Demographic Forces
Dentonic caters to all segments whether it is of age, gender or race. The problem it
faces is that as due to increasing diversity and a better-educated population, Dentonic
Toothpowder is loosing its sales in the younger generation. Today, we look forward to an
easy way of brushing and unless we feel foam inside our mouth we are not satisfied with
the cleanliness of our teeth. Dentonic now caters to the new generation as well now that
it has introduced a new Dentonic Plus Toothpowder that includes foaming agent and
also a flip top cap which makes it easier to use.
Economic Forces
The regular Dentonic Toothpowder does not target any specific income group but due to
its low price 90% of its users are those who earn less than Rs.7000 per month.
Natural Forces
As Dentonic Toothpowder is 98% limestone, there are as such no natural factors that
affect its production. But the water used in its production was once found to be
unhygienic which made them install their own water distillation plant.
Technological Forces
Technological changes have affected Dentonics sales over a period of time. The
increase in sales of new toothpaste has hurt the sales of Dentonic Toothpowder. To
keep themselves in the future market, Ala Chemicals has introduced Dentonic
toothpaste as well which is doing well in the international markets. They have also
installed a computerized machine to check every batch of toothpaste before its delivery.
This machine ROTOVISCO, checks the quality of toothpaste and its viscosity. If
the readings deviate 2%-3%, the whole 200kg batch is destroyed.
Political Forces
As such Dentonic is not really affected by government agencies and pressure groups,
but Dentonic is approved by Pakistan Dental Association (PDA) and is also ISO 90012000 certified. These certifications are helpful in the international market. Ala Chemicals
does not have any labor union, so is does not face problems concerning labor strikes etc.
The only thing that affects the production level are political strikes.
Cultural Forces
Some people have status issues so majority of the people do not use Dentonic as they
regard it as an old formula. Most users are old age people who are using Dentonic for
more than 15years and they are loyal towards this product. Some peoples perception is
that Dentonic toothpowder is for smokers, thus they do not use it.
Market Segmentation
The Segmentation Chart
Geographic
World region or country
Demographic
Age
3+
Family
2+
Income
Psychographic
Social class
class
Behavioral
Benefits
User Status
Loyalty status
Readiness stage
aware
size
Under Rs 7,000
Upper lowers, working class, middle
Economy, quality, convenience
Nonuser, regular user
None, strong
Unaware,
Psychographic Segmentation
Dentonic Toothpowder is targeted to people constituting the working class, middle class
and upper lower class. It is however, not targeted to the lower lowers because although,
they come in the income category of under Rs 7,000, even the smallest pack of Dentonic
Toothpowder costing Rs 18 is mostly out of their budget. The lower lowers therefore,
prefer using Luqmani Manjan, which costs them Rs 2.5 per pack. This also makes
Luqmani Manjan a competitor to Dentonic Toothpowder, as mentioned earlier.
Behavioral Segmentation
Behavioral segmentation, as the name suggests, divides buyers on the basis of their
behavior, knowledge or response to a product. Dentonic Toothpowder is a product that
offers high quality and convenience at a reasonable price. However, each segment of
the market (the upper lowers, working class and middle class) seeks for varied benefits.
While the upper lowers look for the economy of Dentonic Toothpowder, the
working class looks for both its economy and quality and finally, the middle class
looks for the quality, convenience and economy of the product. Due to these varied
interests, Ala Chemicals subdivides its market for Dentonic Toothpowder on the basis
basis, or that they were not using the product at all. These results further classified the
population on the basis of loyalty; strong and none.
There are only two stages of readiness; aware and unaware. This is largely depended
on the fact that Dentonic Toothpowder has not been promoted or advertised in a while.
Therefore, only those people who saw Dentonic Toothpowders early adverts are aware
of the product and the more recent generation has not even heard of the product unless
their family uses it. It should also be noted that even those people who are aware of the
product are not exactly consuming it. An example of this is the group of people who
switched from toothpowders to toothpaste.
Target
Marketing
Dentonic Toothpowder is an undifferentiated (mass) marketed product therefore, it
caters to the entire market with the same offer; providing good dental health to all
segments of the society at an affordable price (mission statement).
Mass marketing is also suitable for Dentonic Toothpowder since it is a high quality
standardized product. In fact, Ala Chemicals has state-of-the-art technology installed to
perform checks on each batch of toothpowder produced to maintain standardization.
However, it should be noted that although Dentonic Toothpowder is a mass marketed
product, recent developments may lead to it becoming a differentiated marketed product.
The newer generation as it is, prefers toothpaste over toothpowder however, Dentonic
Plus Toothpowder on the other hand, with the foaming agent has actually started to
become popular among children. This may turn Dentonic Toothpowder into a product
that is consumed by those people who are reluctant to change therefore, eventually
making Dentonic Toothpowder a differentiated marketed product.
Introduction
Sal
es
and
Pro
fits
Growth
Maturity
Decline
Time
MARKETING MIX:
PRODUCT
Dentonic
Toothpaste:
After the success of Dentonic Tooth powder among the masses Ala
Chemicals launched a better version in form of Dentonic
Toothpaste. Dentonic Toothpaste with dual action whitens your
teeth and protects from bacteria and other tooth decay. The MFP
fluoride helps strengthen teeth and effectively protects against
cavities. It contains clinically proven anti bacterial agent Triclosan
for healthier gums and teeth.
Dentonic toothpaste contains gentle cleaning agents. Its Mint
Flavor gives consumers a fresh breath and a confident smile. The
unique flavor of the toothpaste makes the consumer feel good
while using the product.
Dentonic
Toothpaste
40+
Aqua
Glycerine 30.00
Formailn
20.8
0.4
Iodine
Triclosan 15.75
TCP
3.00
4.5
PRICE
Prices of Dentonic Toothpowder:
According to our survey consumers are ready to pay 35 Rs for 75 gms Pack.
As it is formulated considering aging diseases of mouth it has 0.5 more
Triclosan and .1 % Fluoride and hence we are not adding any artificial and
dangerous chemical for temporarily soothing like steroids.
Price is
75gms = Rs. 45
50gms = Rs. 30
PACKAGING
Dentonic Toothpowder is basically packed in Poly Vinyl Carbonate (PVC) -the
common name of which is plastic, boxboard, which has a thin
Laminated printing on it and toothpastes tube is made up of flexible plastic
packaging and therefore makes it a secondary packaging.
Packet size is 75 gms.
DISTRIBUTION
The toothpowder is available at every retail and general store in Classes B and
C.
There are 6 mobile vans, which are responsible for the distribution of the
product to the retail outlets. Total sales force comprises of 12 sales
representatives and 4 Area Sales Officers for Karachi Region. For monitoring
purpose we also have one Sales Manager.
Distribution is done in boxes, 6, 8, 12 dozens packs per box. But we would
only use 12 dozen packs per box.
The four Ps of the marketing Mix of Dentonic toothpowder can be better understood
by the following Diagram.
P
a
c
k
a
g
i
n
g
S
e
r
v
i
c
e
s
P
rod
uct
Vari
ety
Qual
ity
Desi
gn
Feat
ures
Bran
d
Nam
e
P
r
o
m
o
t
i
o
n
A
d
v
e
r
t
i
s
ing
Personal
Selling
Sales
promotio
n Public
relations
yment
period
Credit
terms
P
r
i
c
e
Target
Customer
s
Intende
d
Positionin
g
L
i
s
t
p
r
i
c
e
D
i
s
c
o
u
n
t
s
A
l
l
o
w
a
n
c
e
s
P
a
Place
Chann
els
Cover
age
Assort
ments
Locati
ons
Invent
ory
Trans
portati
on
Logist
ics
Distribution network
ALA
CHEMICALS
Distribution
RETAILERS
CONSUMERS
Retail Outlets:
The product will be made available in almost 129 retail outlets in different
locations of Karachi where already dentonic is being distributed.
DENTONIC TOOTH
PERCEPTION
POWDER
A GENERAL
RESEARCH PROCESS
Defining the problem, the decision alternatives and the
research objectives:
1)
2) Research Plan:
Research is exploratory as we had to find the problems and reasons of its less
success though it has a large potential market.
3) Data Sources:
We have gathered information from secondary and primary data both.
4) Research Instruments:
Questionnaires contained:
Open ended questions
Close ended questions.
5) Sampling Plan:
Sampling is done on the basis of convenience sampling.
Sample for a survey was 40 respondents of age 40 and above.
Sample for personal interviewing was, on the basis of arranged
interviews that include:
a) Dentonic employees: Mr. S.A. Alavi (Proprietor), Mr. Saheer Alavi
(Director), Mr. Abdul Haq (Chief Chemist), Mr. Khalid Jhangir (Sales
Manager), Mr. Ifran Ahmed Siddique (Marketing Manager) & Lab Assistant.
b) Dentists: Dr. Shahjahan Katpar (Asst. Prof. / Maxillofacial &Dental
Surgeons at Hamdard College of Medicine & Dentistry, Hamdard UniversityKarachi), Dr. Shiraz Burki (Dr. Burki Dental Clinic), Dr. Anthony (Dr.
Anthonys Clinic)
6) Information gathered / findings of the research:
Dentonic:
Due to fake Dentonic spread out in different locations in Pakistan the
reputable name of Dentonic tooth powders image was severely damaged, and
market declined.
Dentists & Respondents:
Because of no provision in advancement for a longer period of time Dentonic
Powder lost its customers to other available brands. The shifting was caused
because of no improvement in the formula and no scientific recommendations
were given from Dental Association.
The general perception about Dentonic Powder in the minds of people was not
favorable for Dentonic Fluoride toothpaste and therefore people are reluctant
in trying the new Dentonic Toothpaste.
ADVERTISING OBJECTIVE:
ADVERTISING BUDGETS
Media
1) Television
2) Magazines & News paper
3) Hoardings
1. TV Media Vehicles
The channels we chose are GEO,Hum Tv,ARY
Channel: GEO
Duration: 3 Months
Rates per Minute:
(Between 8 pm and 9 pm)
4pots x 3 months = 12pots Prime Time on Sundays
I spot per week -4 spots a month 30000 for 30 sec add
Designing Cost= Rs 10,000 for two different sizes that is half page and full
page magazine ad.
2nd month
1time
3rd month
1time
Details of Akhbaar-e-Jehan
Page Size = 40 cm x 20 cm; Column width = 4.25 cm; Column length = 37
cm;
No. of columns = 6; no. of pages (72 approx);
Paper used news print or offset
Outside cover = white offset
Circulation = It is the largest circulated Urdu weekly in Pakistan
3. Hoarding
We placed Dentonic toothpowder hoardings in the following areas of Pakistan,
which were basically according to its target market, i.e., of classes B and C.
These places along with 3 months (quarterly) rates were:
Every hoarding is 10 X 20; Rate = Rs. 28,500/Designing and Printing Cost= Rs .65 per sq ft (130*65= Rs. 8,450)
Total Expense for 3 months = Rs. 85500(28500*3)
85500* 3hoardings = Rs. 598500
Total hoarding expense =256500=8450= 264950/3 months
88316=per month hoarding exp
KARACHI (LOCATIONS FOR HORDINGS)
Print ads
83130
Tvc
132000
Making tvc
25000
MANUFACTURING COST:
Rs. 80 per kg is the cost of Raw material that is inclusive of 30 Rs per Kg
Triclosin.
The total pieces of 75 gm manufactured in 200 kg paste will be 26,000/The total paste manufactured ;200*6= 12,00. One batch is equals to 200 kg
and total production in a day is 6 batches .
200kg *6=1200kg
1200*1000gms=1200000
200,000 gm/ 75 gm = Rs. 16000 pieces is produced / month.(1piece=75gms)
------1200kg *70= 84000(cost of paste)rs
cost of goods sold
16000*4=64000
16000*2=40000
printing and manufacturing cost =104000 Rs
Per piece=6.5
Total tooth paste manufacturing cost 16000 pieces
Making toothpaste
84000
104000
188000
Per piece
11.5
8000 pieces
94000
63168
379008
TOTAL EXPENSE
Utility Expense
Electricity Rs. 50,0000 Telephone Rs. 10000
Gas Rs. 5000/Total 65000
Salary Expense
5sales force
7 sales rep
2 area officers
5000 *5
2*10000
25000
20000
sales manager
7000
1marketing manager
8000
chemist
20000
allowances
20000
helpers 3000 *2
total salary expense =
6000
106000
utility exp
70000
20000
240130
Sales tax
total expenses
126000
562130
60%
50%
Percentag
e
40%
Us
30%
20%
10%
0%
0-20
21-40
40+
Age
60%
50%
40%
30%
20%
10%
0%
Users of Toothpowder
80%
70%
Percentage
60%
50%
40%
30%
20%
10%
0%
Questionnaire
1. Age Group
0 - 20
21 - 30
31 - 40
41 - 50
2. Area of living?
3. Do you live in a rented or owned house?
Rented
Owned
Honda
Toyota
50 +
No
Recommendations
Toothpowder in our society is considered to be less effective than toothpaste-toothbrush
usage, which is essentially untrue. This misconception originates from lack of knowledge
on the customers part. Dentonic has been unsuccessful in communicating its
effectiveness to the wider audience.
Another complaint that we received after conducting our survey was that a few parents
complaint that the kids eat it thinking it is candy and that should be harmful to their
health. Studies have shown that its not, yes children should rather not eat it, but if they
happen to swallow some, it is not hazardous to their health.
Some parents complained that their children do not like the taste very much, to cure that,
we suggested to the management that flavors be introduced to give it variety and better
taste.
Thirdly, Ala chemicals has pulled off all advertisements for the moment, for they
have allocated large budgets on research and since it sells on very slim margins, it
will be coming up with active promotional campaigns very soon.