Marketing Plan on Close Up Neem Toothpaste
LETTER OF TRANSMITTAL
20.05.2008 Mr. ________ Lecturer Faculty of Business ___________University
Sub: Submission of Report on “Marketing plan of Close Up Neem”
Dear Mam, We the undersigned students were assigned to prepare a report on “Marketing plan of Close Up Neem Toothpaste”, we have prepared this report. In preparing this report, we have followed your guidelines. As per your direction, we have added a lot of information from the mentioned topic. From this report we have achieved a lot of basic knowledge and we think ourselves that it will help us a lot in our future career. We sincerely hope this report will fulfill the requirements suggested by you under the course Marketing Management. We truly appreciated this report. We hope it will be accepted by you. If you have any question after reading this report, let us know. Sincerely yours Mr. ________
First we would like to great thank to our Allah who makes us and also gives us all capacity to do something in every time. We give thank our Honorable course teacher XXXXXXX for his any time co-operation. He helped us by giving all kinds of information regarding to our Report. We also grateful to the Mohammad Risalat Siddique (Management Trainee Brands & Development, Unilever Bangladesh) & Mr. Aman Ashraf Faiz (Company Media Manager, Unilever Bangladesh) for their kind co-operation & information to fulfill our report otherwise it would tough for us to complete our report. Computer makes our works very easy and saves our time. In the Lab we could use easily the computer and completed our report on group as a result some time we faced some problem about operating the computer and this time the computer man of the lab helped us. So we are expressing our great thanks to xxxxxxxx [IT Officer]. They helped us to giving some information that was vital for our report. We are also very much grateful to the shopkeepers and the customers who helped us by giving important information and gave us their valuable time. At last, we express our sincere gratefulness to the class mates and group member of us who give us important knowledge regarding to our report.
Thanks from Mr. xxxxxxxxx
(On behalf of the group)
ELABORATION OF ABBREVIATION
TABLE OF CONTENT
Chapter Chapter-01 Topics name Executive Summary Introduction 1.1 Origin of the report 1.2 Scope of the report 1.3 Purpose 1.4 Methodology 1.5 Limitation of the Study Chapter-02 Overview of the organization 2.1 Market share 2.2 History 2.2.1 Unilever 2.2.2 Unilever Bangladesh 2.3 Type of business 2.4 Operations Page no. X-XI 12-15 13 13 14 14 14-15 16-23 17 18 18 18 18 18
2.5 Constitution 2.6 Product categories 2.7 Brands
2.8 Manufacturing facilities 2.9 Employees 2.10. purpose 2.10.1 Adding Vitality to Life 2.11. Principles 2.11.1. Standard of conduct
19 19 19 19 19 19-20 20 20
Topics name 2.11.2. Obeying the law 2.11.3. Employees 2.11.4. Consumers 2.11.5. Shareholders 2.11.6. Business partners 2.11.7. Community involvement 2.11.8. Public activities 2.11.9. The environment 2.11.10. Innovation 2.11.11. Competition 2.11.12. Business integrity 2.11.13. Conflicts of interests 2.11.14. Compliance
Page no. 20 21 21 21 21 22 22 22 22 22 23 23 23 24-28 25 25-27 27-28
Product situation 3.1. “What is Toothpaste?” 3.2. Background of Toothpaste. 3.3. Close Up Toothpaste
3.3.1. Improving oral hygiene
3.3.2. Exciting Flavours 3.3.3. Close up Crystal tooth whitener 3.3.4. Close up Limited Editions Chapter-04 New product review 4.1. Other ingredients
28 28 28 29-32 31-32
Topics name Current market situation 5.1. Market situation 5.2. Product situation 5.3. Competitive situation 5.4. Distribution situation 5.5. Macro environment
Page no. 33-37 34 34 35-36 37 37 38-43 39-41 39-40 39 39 40 40 40-41 41-42 41-42 42 42-43 44-45 45 45 46-55 47 47-48 48
SOWT & Issue analysis 6.1. Internal Environmental Analysis 6.1.A. Strength 6.1.A.1. Marketing 6.1.A.2. Finance 6.1.A.3. Manufacturing 6.1.A.4. Organization 6.1.B. Weakness 6.2 External Environmental Analysis 6.2.A. Opportunity 6.2.B. Threat 6.3. Issue analysis
Objectives 7.1. Financial Objectives 7.2. Marketing objectives
Marketing strategy 8.1. Target Market: 8.2. Positioning 8.3. A brand that keeps to its clinically proven promises
Topics name 8.4. Product line 8.5. Price 8.6. Distribution outlets 8.7. Marketing communication 8.8. Sales promotion 8.9. Research & Development 8.10. Marketing Research
Page no. 49 49 49 49-52 53 53 53-55 56-58 57 57-58 59-60 60 61-62
Action program 9.1. Category: 1 9.2. Category: 2
Chapter-10 Chapter-10 Appended Part Bibliography
Financial projection Income statement Conclusion
The researches of this report say that Unilever continues to play an active role in the area of corporate social responsibility. Unilever has given Dhaka International Airport - the gateway of Bangladesh a completely new look. Beautification of the premises is an exemplary initiative which no other multinational has taken. Close Up knows that being close is a fundamental human need. Each Close Up product as long lasting freshness, gives you the social confidence you need to get closer to others. In many of our products we use state-of-the-art technology to deliver the results you need. Our latest innovation combines two benefits in one toothpaste using new centrefilled technology. In Europe Signal combines the benefits of a gel toothpaste with the anti-bacterial action of a mouthwash, while in Asia Close Up has a gel with milk calcium nutrients, neem in its centre to give you strong teeth and fresh breath. Being as change oriented as its target market, Close Up continually renews the oral care experience by introducing new flavors every now and then. The new Close up offers four exciting flavors including an all new Eucalyptus Buzz. Other variants are Menthol Chill, Icy Cool, neem and Red Hot.
The overall marketing process of Unilever Company is good. Though they have some internal problem they are still trying to prevent it. Within several year of operation, Close Up became the fastest growing toothpaste of the country with a growth rate of 90%. This milestone was achieved with innovative and attractive products and services targeting the different market segments; aggressive improvement of product quality and dedicated customer care; and effective communication that emotionally connected consumers with close up.
After executive the segmentation strategies of Unilever companies (Close up Neem) we recommended that its product quality, its segments of all products (medium size) is excellent. Last but not least we have supported our indenting and included data by the documents supplied by the surveyed company and have clipped in the appendix part.
CHAPTER – 1
Unilever is one of the most dynamic company in the world. Unilever operates its
business in worldwide. Close up is one of the strong product of Unilever which is launched in 1984, it is today the largest Tooth paste company of world. Firstly Closeup was launched as a gel toothpaste containing micro-whiteners and mouthwash. It has grown to be one of the largest and most diversified service in the Middle East, Africa and Asia. Seeing the success that Unilever Bangladesh had with low unit price packs in other categories, a sachet - more popularly called mini pack - met with astounding success and enabled millions of youth, who aspired for a modern trendy brand but were unable to afford one, to use the brand
1.1. Origin of the report
This report originates to fulfill the requirement of studying Marketing Management, which is a course of BBA Program of Northern University Bangladesh. The topic of the report is “New marketing plan on Close Up Neem Toothpaste.”
1.2. Scope of the report
The company is very organized and resourceful organization. Its annual reports, publication, documents and websites are very much rich for data collection. It includes a comparative analysis of the marketing plan of the Close Up Neem. The comparative analysis would form the basis for the next part of the report, which highlights the winning ingredients of the marketing plan. To be exhaustive the report also indicates the shortcoming of their marketing programs, reaction to competitors’ action and finally the impact of this activity on consumer. It however dose not cover the financial analysis to support the findings of the report. The supporting activities of other department are also beyond the scope of the study. The study will be developed in the following sequence:
Orientation with the industry and related companies. Company plan to purpose its marketing objectives in the target market.
The purpose of the report is to develop our skills in marketing activities, to elaborate our thinking as well as “New marketing plan on Close Up Neem Toothpaste”. Through this report we will able to make our self at any situation when we got the any sort of assignment or task or making any report regarding a products marketing plan. It also help us for fulfillment our knowledge for a marketing plan and make our self appropriate for current job market.
The report has been prepared based on secondary data such as the company’s annual report, company’s documents and collected necessary information from the company employees after talking as primary data as well as down loaded data from their website through internet. Then above all these documents are also been calculated, analyzed and organized to evaluate the financial performance of Unilever. All data have been used in word program to management report, finally the report prepared to show the company management at present situation. The information that will be obtained from the research tasted with some statistical tools. After gathered all the selected important information we will try our best to take a decision whether this are success or not.
1.5. Limitations of the study
The study on new marketing plan on close Up Neem is a very comprehensive and extensive task. During the time of preparing this report we have been faced many problem. These are follows: • The time frame fixed for preparing the report was really hard to be met. As a result, sufficient concentration could not be given which was needed for much better study.
We are very much sorry not provide enough information due to lack of information. To prepare this report we have faced a lot of problems such as unavailability of lab, electricity problem, unavailability of related books, lack of time, unavailability of information in net etc.
Representative and mangers of different level were 100+30 respectively which reduces the reliability of the results.
CHAPTER – 2
OVERVIEW OF THE ORGANIZATION
OVERVIEW OF THE ORGANIZATION
2.1 Market share
Unilever’s mission statement is ‘meeting the everyday needs of people everywhere’, and the multinational definitely has a huge and expanding global reach. Unilever proudly declares that every day 150 million people are choosing their brands ‘to feed their families and clean their homes’. Unilever is one of the world’s top makers of packaged consumer goods and moves countless products like deodorants, fragrances, soap, margarine, tea and frozen foods all over the world. The corporation sells products in over 150 countries and has annual sales of approximately $ 46 billion (£31,5bn). Unilever controls subsidiaries in at least 90 countries and employs 295,000 (in 2000) people. Unilever is one of the world’s top three food firms -after Nestle and Kraft- and the world’s second largest packaged consumer goods company –behind Procter & Gamble. However, in spite of Unilever’s vast size and presence worldwide, the company’s actual visibility is surprisingly low. Anonymity hides the company’s importance. Unilever does not retail under its own name, preferring brand names to create the illusion of diversity. Who does not know brand names like Magnum, Omo, Dove, Knorr, Ben & Jerry’s, Lipton, Slim-Fast, Iglo, Unox, Becel, and Lever2000? They’re all part of the ‘Unilever armada of brand names’. To make sure the brand names do not go unnoticed, Unilever spends huge amounts of money on marketing and advertising. Advertising has always been a keystone of Unilever’s businesses. The Dutch-Anglo company is likely to be the world’s number one advertiser.
2.2 History 2.2.1 Unilever
Unilever was formed in 1930 when the Dutch margarine company Margarine Unie merged with British soapmaker Lever Brothers. Companies were competing for the same raw materials (e.g. oilseeds), both were involved in large-scale marketing of household products and both used similar distribution channels. Between them, they had operations in over 40 countries. Margarine Unie grew through mergers with others margarine companies in the 1920s. Lever Brothers was founded in 1885 by William Hesketh Lever. Lever established soap factories around the world, and had plantations in many Third World countries. In 1917, Lever began to diversify into foods, acquiring fish, ice cream and canned foods businesses.
2.2.2 Unilever Bangladesh
Over the the last four decades, Unilever Bangladesh has been constantly bringing new and world-class products for the Bangladeshi people to remove the daily drudgery of life. Over 90% of the country’s households use one or more of our products.
2.3. Type of business
Fast Moving Consumer Goods company with local manufacturing facilities, reporting to regional business groups for innovation and business results.
Home and Personal Care, Foods
Unilever - 60.75% shares, Government of Bangladesh - 39.25%
2.6. Product categories
Household Care, Fabric Cleaning, Skin Cleansing, Skin Care, Oral Care, Hair Care, Personal Grooming, Tea based Beverages.
Wheel, Lux, Lifebuoy, Fair & Lovely, Pond's, Close Up, Sunsilk, Lipton Taaza, Pepsodent, Clear, Vim, Surf Excel, Rexona, Dove, Vaseline & Lakme.
2.8. Manufacturing facilities
The company has a Soap Manufacturing factory and a Personal Products Factory located in Chittagong. Besides these, there is a tea packaging operation in Chittagong and three manufacturing units in Dhaka, which are owned and run by third parties exclusively dedicated to Unilever Bangladesh.
Unilever Operations in Bangladesh provide employment to over 10,000 people directly and through its dedicated suppliers, distributors and service providers. 99.5% of UBL employees are locals and we have equal number of Bangladeshis working abroad in other Unilever companies as expatriates.
At the heart of the corporate purpose, which guides us in our approach to doing business, is the drive to serve consumers in a unique and effective way. This purpose has been communicated to all employees worldwide.
2.10.1 Adding Vitality to Life
Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life.
Unilever’s deep roots in local cultures and markets around the world give them their strong relationship with consumers and are the foundation for our future growth. They will bring our wealth of knowledge and international expertise to the service of local consumers – a truly multi-local multinational. UBL long-term success requires a total commitment to exceptional standards of performance and productivity, to working together effectively, and to a willingness to embrace new ideas and learn continuously. To succeed also requires, we believe, the highest standards of corporate behaviour towards everyone UBL work with, the communities we touch, and the environment on which we have an impact. This is UBL road to sustainable, profitable growth, creating long-term value for their shareholders, our people, and our business partners.
Unilever’s code of business principles describes the operational standards that everyone at Unilever follows, wherever they are in the world. It also supports our approach to governance and corporate responsibility.
2.11.1. Standard of conduct
Unilever’s conduct their operations with honesty, integrity and openness, and with respect for the human rights and interests of our employees. They shall similarly respect the legitimate interests of those with whom they have relationships.
2.11.2. Obeying the law
Unilever companies and our employees are required to comply with the laws and regulations of the countries in which they operate.
Unilever is committed to diversity in a working environment where there is mutual trust and respect and where everyone feels responsible for the performance and reputation of our company. They will recruit, employ and promote employees on the sole basis of the qualifications and abilities needed for the work to be performed. They are committed to safe and healthy working conditions for all employees. They will not use any form of forced, compulsory or child labour. They are committed to working with employees to develop and enhance each individual’s skills and capabilities. They respect the dignity of the individual and the right of employees to freedom of association. They will maintain good communications with employees through company based information and consultation procedures.
Unilever is committed to providing branded products and services which consistently offer value in terms of price and quality, and which are safe for their intended use. Products and services will be accurately and properly labelled, advertised and communicated.
Unilever will conduct its operations in accordance with internationally accepted principles of good corporate governance. Unilever provide timely, regular and reliable information on our activities, structure, financial situation and performance to all shareholders.
2.11.6. Business partners
Unilever is committed to establishing mutually beneficial relations with its suppliers, customers and business partners. In their business dealings they expect our partners to adhere to business principles consistent with their own.
2.11.7. Community involvement
Unilever strives to be a trusted corporate citizen and, as an integral part of society, to fulfill our responsibilities to the societies and communities in which we operate.
2.11.8. Public activities
Unilever companies are encouraged to promote and defend their legitimate business interests. Unilever will co-operate with governments and other organisations, both directly and through bodies such as trade associations, in the development of proposed legislation and other regulations which may affect legitimate business interests. Unilever neither supports political parties nor contributes to the funds of groups whose activities are calculated to promote party interests.
2.11.9. The environment
Unilever is committed to making continuous improvements in the management of our environmental impact and to the longer-term goal of developing a sustainable business. Unilever will work in partnership with others to promote environmental care, increase understanding of environmental issues and disseminate good practice.
Through scientific innovation to meet consumer needs they respect the concerns of our consumers and of society. Unilever will work on the basis of sound science, applying rigorous standards of product safety.
Unilever believes in vigorous yet fair competition and supports the development of appropriate competition laws. Unilever companies and employees will conduct their operations in accordance with the principles of fair competition and all applicable regulations.
2.11.12. Business integrity
Unilever does not give or receive, whether directly or indirectly, bribes or other improper advantages for business or financial gain. No employee may offer, give or receive any gift or payment which is, or may be construed as being, a bribe. Any demand for, or offer of, a bribe must be rejected immediately and reported to management. Unilever accounting records and supporting documents must accurately describe and reflect the nature of the underlying transactions. No undisclosed or unrecorded account, fund or asset will be established or maintained.
2.11.13. Conflicts of interests
All Unilever employees are expected to avoid personal activities and financial interests which could conflict with their responsibilities to the company. Unilever employees must not seek gain for themselves or others through misuse of their positions.
2.11.14. Compliance - monitoring - reporting
Compliance with these principles is an essential element of their business success. The Unilever Board is responsible for ensuring these principles are communicated to, and understood and observed by, all employees. Day-to-day responsibility is delegated to all senior management of the categories,regions, functions and operating companies. They are responsible for implementing these principles, if necessary through more detailed guidance tailored to local needs. Assurance of compliance is given and monitored each year. Compliance with the Code is subject to review by the Board supported by the Audit Committee of the Board and the Unilever Executive Committee. Any breaches of the Code must be reported in accordance with the procedures specified by the Joint Secretaries. The Board of Unilever will not criticise management for any loss of business resulting from adherence to these principles and other mandatory policies and instructions. The Board of Unilever expects employees to bring to their attention, or to that of senior management, any breach or suspected breach of these principles.
CHAPTER – 3
3.1. We should know first “What is Toothpaste?”
Toothpaste is a paste or gel dentifrice used to clean and improve the aesthetic appearance and health of teeth. In some countries, due to translation issues, it is commonly referred to as "Toothcream." Toothpaste use can promote good oral hygiene: it can aid in the removal of dental plaque and food from the teeth, it can aid in the elimination and/or masking of halitosis, and it can deliver active ingredients such as fluoride to prevent tooth and gums disease. In most or all developed countries, usage after each meal is encouraged. However excessive usage may cause kidney failure due to the body's attempt at digesting the toothpaste's chemicals which often slide down the throat with each use. If a large amount of toothpaste is swallowed, Poison Control should be contacted immediately.
3.2. Background of Toothpaste.
It is believed that first traces of oral hygiene were found to be dated around 5000 years ago in Egypt, China, Mongolia and India. India has a long history of Ayurveda, an Indian form of medicine. Neem twigs (a.k.a. daatun) were used for brushing teeth in India. This practice is perhaps one of the earliest and most effective forms of dental care and is still prevalent in villages in India. The usage is simple: chew one end of the neem twig until it somewhat resembles the bristles of a toothbrush, and then use it to brush your teeth. The tooth brush seems to have its origins in the daatun. Similarly, the Miswak served as a very effective natural toothbrush in the medieval Islamic world and is still used in the modern Islamic world. The earliest known reference to a toothpaste is in a manuscript from Egypt in the 4th century AD, which prescribes a mixture of powdered salt, pepper, mint leaves, and iris flowers. The Romans used toothpaste formulations based on human urine. In the 9th
century, the Persian musician and fashion designer Ziryab is known to have invented a type of toothpaste, which he popularized throughout Islamic Spain. The exact ingredients of this toothpaste are not currently known, but it was reported to have been both "functional and pleasant to taste." An 18th century American toothpaste recipe containing burnt bread has been found. Another formula around this time called for dragon's blood (a resin), cinnamon, and burnt alum. However, toothpastes or powders did not come into general use in the West until the 19th century in Britain. In the early 1800s, the toothbrush was usually used only with water, but tooth powders soon gained popularity. Most were home made, with chalk, pulverized brick, and salt being common ingredients. An 1866 Home Encyclopedia recommended pulverized charcoal, and cautioned that many patented tooth powders that were commercially marketed did more harm than good. In 1892, Dr. Washington Sheffield of New London, Connecticut manufactured toothpaste into a collapsible tube. Sheffield's toothpaste was called Dr. Sheffield's Creme Dentifrice. He first came up with the idea of toothpaste in a collapsible tube after his son traveled to Paris and saw painters using paint from tubes. In 1896, Colgate Dental Cream was packaged in collapsible tubes imitating Sheffield. By 1900, a paste made of hydrogen peroxide and baking soda was recommended. Premixed toothpastes were first marketed in the 19th century, but did not surpass the popularity of tooth-powder until World War I. In New York City in 1896, Colgate & Company manufactured toothpaste in the first collapsible tube, similar to that recently introduced for artists' paints. Fluoride was first added to toothpastes in 1914, and was criticized by the American Dental Association (ADA) in 1937. Fluoride toothpastes developed in the 1950s received the ADA's approval. To develop first ADA approved fluoride toothpaste, Procter & Gamble started a research program in the early 1940s. In 1950, Procter & Gamble developed a joint research project team headed by Dr. Joseph Muhler at Indiana University to study new toothpaste with fluoride. In 1955, Procter & Gamble's Crest
(toothpaste) launched its first clinically proven fluoride toothpaste. On August 1, 1960, the ADA reported that "Crest has been shown to be an effective anticaries (decay preventative) dentifrice that can be of significant value when used in a conscientiously applied program of oral hygiene and regular professional care." Countries limit and suggest different amounts acceptable for health. Much of Africa has a slightly higher percent than the U.S. In June, 2007, the US Food and Drug Administration and similar agencies in Panama, Puerto Rico and Australia advised American consumers to avoid, return, or discard certain brands of toothpaste manufactured in China, after batches of Chinese made toothpaste were found to be contaminated with the poisonous chemical diethylene glycol, also called diglycol or labeled as "DEG" on the tube. The chemical is used in antifreeze as a solvent and is potentially fatal. Toothpaste is most commonly sold in flexible tubes, though harder containers are available. The hard containers stand straight up, availing more of the toothpaste and saving shelf space.
3.3. Close Up Toothpaste
Close up was launched as a gel toothpaste containing micro-whiteners and mouthwash in 1984, and fired the imagination of the population with it's exciting advertising. Seeing the success that Unilever Bangladesh had with low unit price packs in other categories, a sachet - more popularly called mini pack - met with astounding success and enabled millions of youth, who aspired for a modern trendy brand but were unable to afford one, to use the brand.
3.3.1. Improving oral hygiene
Close up mini virtually dominates the low unit price segment in oral care, and has been instrumental in improving the oral hygiene in Bangladesh, particularly the rural market where it enjoys a huge franchise.
3.3.2. Exciting Flavours
Being as change oriented as its target market, Close up continually renews the oral care experience by introducing new flavours every now and then. The new Close up offers four exciting flavours including an all new Eucalyptus Buzz. Other variants are Menthol Chill, Icy Cool and Red Hot.
3.3.3. Close up Crystal tooth whitener
Close up Crystal with vitamin fluoride system, is a unique whitening gel that brings a brighter sparkle to your teeth in just 4 weeks! This fluoride enriched tooth whitener delivers complete mouth fitness with a great mouthwash effect along with caring for your gums!
3.3.4. Close up Limited Editions
With a view to delight the consumers with exciting flavors, a couple of never-beforetasted and deliciously mouthwatering limited edition flavors were launched.
Closeup Luscious Lychee - Introduced in 2006, this is a mouthwatering mix of rich, sweet taste of Lychees and delightful spearmint freshness. Closeup Tangerine Burst - After the huge success of Luscious Lychee, Closeup Tangering Burst was launch in 2007. This flavor offered a a light splash of orange and peppermint for a zesty tang in your mouth.
CHAPTER – 4
NEW PRODUCT REVIEW
NEW PRODUCT REVIEW
Unilever is a famous company all over the world, they offer their product for the need & wants of the people of different geographical area and according to the demand of the situation they modified their products. Unilever aims to understand peoples' needs best and develop appropriate communication services to improve peoples' life and make it simple. All members of the Unilever family are highly passionate individuals, fully committed to provide beset quality, reliability & innovative. Unilever customers' needs matter most to us- making their life simple and improve. Now Unilever going to introduce a new product in their Close Up product line. that is “Close Up Neem”. We all knows from the ancient period neem most commonly used for the oral hygiene and it also have the herbal benefit. Still today many people use neem. If Unilever perfectly introduce this product in the current market people easily can go through it. In this new product the consumer will get the benefit such as, the strong teeth & gums, whitening and feel fresh mouth. In shortly we use the following ingredients for closeup neem toothpaste
• • • • • • • • •
Sorbitol Cilica Higher abrasive cilica Sodium fluoride Vitamin-E acited Ci 42051 Ci 19140 Neem Flavor
• • • • • •
Aqua Calcium carbonate Sodium monoflurophosphate PVD salt Cardamom oil Basil sweet oil
4.1. Other ingredients
In addition to fluoride, the other fundamental ingredient in most toothpastes is an abrasive. Studies have shown that abrasives in toothpaste reduce the time needed to remove plaque from the teeth by approximately 50%. Abrasives, like the dental polishing agents used in dentist's offices, also cause a small amount of enamel erosion which is termed "polishing" action. Some brands contain powdered white mica which acts as a mild abrasive, and also adds a cosmetically-pleasing glittery shimmer to the paste. Many may contain frustules of dead diatoms as a mild abrasive. The removal of plaque and calculus prevents caries and periodontal disease. The polishing of teeth removes stains from tooth surfaces, but has not been shown to improve dental health over and above the effects of the removal of plaque and calculus. Many, though not all, toothpastes contain sodium lauryl sulfate (SLS) or another of the sulfate family. SLS is found in other personal care products as well, such as shampoo, and is largely a foaming agent although it also acts as a powerful antimicrobial. Due to the anionic charge of SLS, mouthwashes containing cetylpyridinium chloride (which has a cationic charge and thus neutralises SLS) should not be used straight after brushing. SLS may cause a greater frequency of mouth ulcers in some people as it can dry out the protective layer of oral tissues causing the underlying tissues to become damaged. Ingredients such as baking soda, enzymes, vitamins, herbs, calcium, calcium sodium phosphosilicate, mouthwash, and/or hydrogen peroxide are often combined into base mixes and marketed as being beneficial. Some manufacturers add antibacterial agents, for 30
example triclosan or zinc chloride, to prevent gingivitis. Triclosan is a very common ingredient in the UK. Toothpaste comes in a variety of flavors, most often being some variation on mint (spearmint, peppermint, regular mint, etc). Other more exotic flavors include: anise, apricot, bubblegum (marketed mostly to children), cinnamon, fennel, neem, ginger, vanilla, lemon, orange, pine. Flavors which have been introduced but discontinued due to poor reception include peanut butter, iced tea, and even whisky. Some brands of toothpaste are unflavored, but many are both flavored and sweetened. Because sugar can cause tooth decay, artificial sweeteners are generally employed for this purpose. The inclusion of sweet-tasting but toxic diethylene glycol in Chinese-made toothpaste led to a multi-nation and multi-brand toothpaste recall in 2007. Many toothpastes contain colorings for better visual acceptance.
Chapter – 5
5.1. Market situation
Here data are presented on the target market. The size and growth of the market (in unit or TK.) are shown for several past years and by market and geographical segments. Data on customer needs, perceptions and buying-behavior tends are also presented. The toothpaste market accounts for approximately 48% of the home toothpaste market. Sales are expected to be stable over the next few years. The primary buyers are middle class, Upper middle class & lower class people (All age people), who are concern about their teeth & gums, who have little capacity to concern with the dentist but want to avoid this expense because of their limited income. They want to buy a reputed company’s toothpaste by a name they can trust. They want a toothpaste with all the materials that is appropriate for their need.
5.2. Product situation
Row 1 shows the total Industry sales in (gm.). Row 2 shows Unilever’s market share. Row 3 shows the Average price per unit (For 50 gm of Close Up Neem in TK.). Row 4 shows variable cost per unit (material, labor, and energy) rising each year. Row 5 shows GC margin per unit in taka. Row 6 shows sales volume in unit. Row 7 shows sales revenue in taka. Row 8 shows advertising and promotion cost in taka. Row 9 shows Sales force & distribution in taka. Row 10 shows marketing research budget in taka. Row 11 shows Operating Expense in taka. Row 12 shows net operating profit after marketing expenses in taka.
1 2 3 4 5 6 7 8 9 10 11 12
Industry sales in (gm.) Company market share (%) Average price per unit (For 50 gm) [Tk] Variable cost per unit (Tk) GC margin per unit (Tk) Sales volume in unit Sales revenue (Tk) Advertising and promotion (Tk) Sales force & distribution (Tk) Marketing research (Tk) Operating Expense (Tk) Net operating profit (Tk)
4355000000 48% 18 15 3 2177500000 78,39,00,000 17,98,20,000 4,49,55,000 2,69,73,000 5,39,46,000 47,82,06,000
4995000000 48% 19 15.5 3.5 2497500000 94,90,50,000 22,77,72,000 5,69,43,000 3,41,65,800 6,83,31,600 56,18,37,600
5.3. Competitive situation
The major competitor are identified and described in terms of size, goals, market share, product quality, marketing strategies and other characteristics that are needed to understand their intentions and behavior. The major competitors of Close Up are Colgate, White plus, Pepsodent. The market leader is Close Up itself. According to our analysis a brand from Close Up is current market leader with a market share of 48%. of volume share. Pepsudent is the challenger brand with a market share of 28%. Rest of the market with a share of 24% is booked by the toothpaste brands of other local manufacturing companies and imported foreign brands. Close Up is market leader here they focus on different strategy. They produce different kind of toothpaste that is vast difference from other competitor’s toothpaste. Their quality also good from others. Pepsodent is the follower and they are the main competitor of close up. The competitor’s activities and reaction become more visible through understanding various consumer behavior patterns. Moreover understanding consumer behavior properly will help the marketers to react according to their demand and choice criteria. With this, prepare communication strategy become more easy and effective in long terms. It also helps to decide what to offer and when, with what
attributes and benefits. It also describes the price sensitivity to take appropriate price strategies. (The pie diagram is given in the next page)
Should Pie diagram
Closeup Pepsudent Others
(Figure: Market Share of Toothpastes)
Brand Name Close Up Pepsodent Colgate White plus Fresh gel
Size Mediu m
Existing packet size of brands with price satisfactory level)
5.4. Distribution situation
This section presents data on the size and importance of each distribution channel. Close up toothpaste are sold through Wholesaler (80%) and Retailer (20%) (super shops, departmental shops, Shopping mall). Unilever dominates in channels that are declining in importance, whereas it is a weak competitor in the faster-growing channels such as discount stores. Unilever gives more margin to its dealers, which is similar to what other competitor give.
5.5. Macro environment
This section describe broad macro environment trends such as demographic, economic, technological, political-legal, social-cultural-that bear on the product line’s future. About 95% of Bangladeshi people of all class and ages are serious about teeth and gums. They spend most of the time about their doctor consultancy for their teeth. The economic situation of toothpaste in Bangladesh has good position. But some political affect work besides this. Some time some political issues are cause to harmful for toothpaste industry, and there have also some technological problem.
CHAPTER – 6
SOWT & ISSUE ANALYSIS
6.1. Internal Environmental Analysis
6.1.A. Strength 6.1.A.1. Marketing
I. High company reputation. II. Rising market share day by day. III. Enable to provide much more customer satisfaction than competitors. IV. Higher product quality. V. Provide higher service quality. VI. Pricing effectiveness is better than the others. VII. Distribution effectiveness is better than the others. VIII. Promotion effectiveness is better than the others. IX. Innovation effectiveness is better than the others. X. Strong management team enables to provide geographical coverage. XI. Able to launch a new product faster than the competitors. XII. This company are operating different product.
I. Higher cost or availability of capital. II. Financial position is much more stable than the other.
I. Provide strong facilities both their management and customer. II. Have a strong capacity to handle any sort of problem. III. They are able to produce on time. IV. Technical manufacturing skill is batter than the other.
I. Top management has clear vision to make their company number one in Bangladesh with their strong leadership. II. They are very much dedicated to the employee. III. Entrepreneurial orientation is better than the other company. IV. This company is flexible and responsible to the customer. V. Teen sprit is consider as the most important factor for remarkable success. VI. Adequate expert people in the marketing plan department. VII. Upgraded technical knowledge regarding the industry make the difference with the competitors.
I. The major weakness of the organization is the internal conflict of the management. Working sprit is seriously hampered by management conflict of the organization. II. Though Unilever has a very good team for the marketing plan, but not all the people are experienced. III. Communication barrier is the major weakness of the organization. IV. Weakness in implementing the corporate strategy by the operating employee is the weakness of the organization.
V. Expectation of the top management is very high. Sometimes they set very high target which is not achievable at all time. Sometimes it becomes burden for the employee. VI. Company dose not create enough mantel pressure to the employee to achieve their target, so they become bound to adopt unethical way to achieve their target.
6.2 External Environmental Analysis 6.2.A. Opportunity
I. To get new customers after modification. II. To increase market share. III. To provide more qualities in our toothpaste. IV. Providing more benefit (strong teeth and gums and whitening) in our toothpaste can increase more customer satisfaction. V. Our market reputation will increase also. VI. Our profit margin will increase as well. VII. To increase the advertising. VIII. To decrease the product price. IX. To decrease cost of production. X. To increase of importing raw materials. XI. XIII. XIV. their respective area. XV. Economic condition of Bangladesh is very fast. So a lot of opportunity is waiting for the toothpaste market. It is expected that good economic condition of the country will help to continue this growth. 40 To increase the distribution channel. XII. Opportunity to follow differentiation strategy for existing product. Increasing productivity by providing adequate tanning. Incentive for the employee who dose outstanding performance in
Have a strong opportunity to collect skilled and experienced people from the different private and public university.
I. Major threat arises from the new entrants. II. Many competitors in the toothpaste market. III. IV. V. VI. VII. VIII. Customers may switch off if the company unable to make the right decision at the appropriate situation for their product. Unethical competition. Such as, price cut, advertising, giving gift by the competitor may threaten position of Unilever. Following the same strategy by the competitors. Worsening law and order situation of the country. Availability of the substitute product in the market. Technological break through adopted by the compactors.
6.3. Issue analysis
In this section of the marketing plan, the product manager uses the strength/weakness analysis to define the main issues that the plan must address. Close up must consider the following basic issues: Close up must consider the following basic issues: I. Is Close up possible to stay in toothpaste business? Can it compete effectively? II. If Close up stays in the business, should it continue with its present products, distribution channel, and price and promotion policies. III. Should Close up switch to high growth channels? Can it do this and yet retain the loyalty of its current market. IV. Should Close up increase its advertising and promotion expenditures to match competitor’s expenditure?
V. Should Close up pour money into R&D to developed advance features and quality?
CHAPTER – 7
7.1. Financial Objectives
Unilever management wants each business unit to deliver a good financial performance. The product manager sets the following financial objectives
• • •
Earn an annual rate of return on investment over the next one year of 2 to 3 percent after tax. Over the year. Produce net profits of 16% to 17% approximately in 2007. Achieve next year total sales revenue of TK 94,90,50,000 based on an average price of 19 TK per unit (50gm.).
7.2. Marketing objectives
• • • • Expand consumer awareness of the Close up brand from 48% to 75 % over the next year. Expand the market share 2 to 3% over the next year. Expand the number of dealers by 98 %. Aim for an average price of TK 19 for 50 gm & TK 36 for 100 gm.
CHAPTER – 8
Marketing strategy of Close Up Neem Toothpaste
There are many kinds of toothpaste in the world. Our company name is Unilever. It’s a multinational company. We developed toothpaste 24 years ago (in 1984).Close Up Neem is one of new toothpaste of Unilever.
The toothpaste’s name is
“Close Up Neem”
Here is the game plan:
8.1. Target Market:
Middle, Upper-middle & Lower class (all ages) people.
“Closeup Neem” provides a refreshingly real alternative for people who recognize that cure and strength, Herbal benefit appropiate for teeth and gum. It has some different quality and feature from other’s. The main special feature of our product is herbal product. Now a days most of the people are concern about the herbal product. Our product that is close up neem can satisfied those people who want to use herbal (neem) toothpaste. In this product consumer will get all the herbal benefit of neem. This product provide the consumer: Neem 46
• • • • •
Antcavity protection. Better breath. Strong teeth. Wither teeth. Antiseptic benefit. Other reagent s
This also can protect the diseases like: • • • • • Dental abcess. Dental charises. Gum bleeding. Gum sweeling. Hyperplasia.
“Close Up Neem …….. Feel as natural.” 8.3. A brand that keeps to its clinically proven promises
To help you enjoy your own brand of mouth freshness, germs protect and strength of teeth “Closeup Nim” provides a wide range of cleansing and mouth clener care products that make a genuine difference to the condition and feel of your teeth and gums. Now it is top tothpaste brand, “Closeup” started its life in 1984 as a toothpaste Close up mini virtually dominates the low unit price segment in oral care, and has been instrumental in improving the oral hygiene in Bangladesh, particularly the rural market where it enjoys a huge franchise that was clinically proven to be milder for dry, sensitive teeth and gums than other leading toothpaste
8.4. Product line
This product are going to offer one lower price model that means mini size which is 50 gm. and one middle price model that means middle size which is 100 gm.
Price will be lower than the competitor’s product, for capturing and giving proper satisfaction to the customer. Primarily we fixed Tk. 19 for 50 gm. Close up neem & Tk. 36 for 100 gm. Close up neem.
8.6. Distribution outlets
This section presents data on the size and importance of each distribution channel. Close up toothpaste is sold through Wholesaler and Retailer (super shops, departmental shops, Shopping mall). Unilever dominates in channels that are declining in importance, whereas it is a weak competitor in the faster-growing channels such as discount stores. Unilever gives more margin to its dealers, which is similar to what other competitor give.
8.7. Marketing communication
1) TV Advertise After modification of our toothpaste, we will make a huge and attractive TV advertises to attract the customers, as most of the people of our country buy toothpaste after watching the TV ads. We want to inform the mass people about our toothpaste by TV ads.
2) Internet Information We are going to open a web address of us. All the information of us will be given on that site and people can easily know about us and the quality of our products.
3) Ticket Advertises We will advertise about our toothpaste on different types of tickets such as cinema tickets, bus tickets, launch tickets, train tickets, plane tickets etc.
4) Banner, Festoon, Placard We will also advertise by banner, festoon and placards.
5) Joining Fair By joining different types of fairs held in our country, we want to advertise and accelerate our sales.
6) Sail Advertising We will provide free sail in deferent places to make the people aware about our toothpaste.
7) Concert Programs We will arrange concert programs in different types of schools, colleges, universities and other places to make the people aware about our toothpaste. We will also make the concert by the chose up 1’s part-1 & 2’s top 10 competitors. 8) Bill Board We will provide attractive bill boards in different popular roads and stoppages both in the cities & metropolitan areas.
Too much strong
Smile an ever lasting smile……………..
8.8. Sales promotion
Develop a new advertising campaign that supports the positioning strategies, emphasize on lower pries and availability then the competitors, close up 1 contest all over the country and UK, USA & UAE for encouraging above 16 to 30 age of young generation. As a new product that means close up neem we are going to launch this product at the grand finale.
8.9. Research & Development
R & D department are responsible for the Research & Development of this product. The expenditure of this product will be increase according to the needs and wants to the customer for developing better styling.
8.10. Marketing Research
We will very much concern about the needs and wants of the target market and delivering satisfaction better then competitor, should research how make this product available by offering more quality product, unique feature with out any bad effect through lower price than the other competitors than the market. In this section it is also very much necessary to think about the future expected return by giving more product quality and feature through customer observation. The usage of toothpaste started to climb up in Bangladesh as people became aware about the usefulness of the product. As different brands were introduced in the market and the awareness gradually increased, the usage of toothpaste in different classes also started to increase. Later, different brands offering different benefits and attributes were introduced in the market to provide dental service according to the different demand of the potential buyers. Now a day’s toothpaste is regarded as one of the demanded consumer good within the perspective of Bangladesh. The usage rate have increased, the consumption also
increased as a result. This has established toothpaste as a profitable industry in Bangladesh. We went to the market with a questionnaire to justify the needs and wants of the customers about our toothpaste. We wanted to know the customers’ expectations about our toothpaste. We talked several types of people, several stages of people to know that who are our current customers and who are our probable customers. We also sent some questions over internet to the people. Over the telephone we asked some people. We wanted to know that, customers are satisfied with our product or not. We also talked with the shopkeepers. By talking with the shopkeepers, we became know that which brand is very much preferable to customers and why they like that toothpaste. We also knew that what the customers’ attitudes towards our toothpaste are. The shopkeepers also informed us about the attitudes of the customers towards the price of our product.
We found that there are different types of customers. They have different types of demands. Moreover there are lots of giant competitors in the market. Now, we are going to modify of our toothpaste in the market which will cover big portion of the market share and which will reach all the requirements of the all stages of people. Considering the demands of the people and the competitors in the market, the density, the climate, gender, the income level, education, religion etc we are going to deduct some ingredients from our existing toothpaste and we also are going to add some ingredients as well. In the following points the ingredients are shown which we are going to add or remove: • We are going to introduce different sizes of toothpaste, especially medium size , (100 gm.) & mini size (50gm.).
We are going to introduce herbal toothpaste. . We are going to use the modern machineries to make our toothpaste without any touch of hand. 53
9. Action program:
Here is the action program of Close up Neem Toothpaste:
9.1. Category: 1
1st Action program: First four month for packaging program. 2nd Action program: Identify the product size and appropriate price within 30 days. 3rd Action program: Creative design and attractive design within 15 days. 4th Action program: Collection of raw materials within three month. 5th Action program: Sales promotion, campaign, Free trail, Advertising.
9.2. Category: 2
February, 09 Unilever will advertise “Close up Neem” in the Billboard form the 1st February. And the product “Close up Neem Toothpaste” will launch on 25th February on the Close up 1 Gao Bangladesh Gao’s grand final round. March, 09 Unilever will advertise in the TV that a free mini pack of Closeup Menthol chill will be given to everyone by buying a Close up Neem 100gm. Pack. April,09 Unilever will arrange concert programs in different colleges, universities and other open places to make the people aware about our Close up Neem Toothpaste. We will also make an offer of free concert ticket with two 100 gm. Close up Neem Toothpaste. Mr. Taposh, assistant consumer promotion director, will handle this project at a planned cost of Tk 3,00,000. 56
May,09 Unilever will participate in the Trade show in Dhaka Pan Pacific Sonargaon Hotel. Md. Rezaul Karim, dealer promotion director, will make the arrangements. The expected cost is Tk 5,00,000. A newspaper advertisement will announce those consumers who will show this paper cut within 2 days of the advertisement date, he or she will get 50% discount. With this discount paper he or she will given a lottery coupon, ten lucky winners will receive free one years’ Close up Neem Toothpaste for their healthy teeth. Mr. Obydur Rahaman will handle this project at a planned cost of Tk. 3,50,000
Close Up Neem Toothpaste Income statement For Year Ended 31st December, 2009
Figures in TK.
Figures in TK.
Advertising Expense (TV+ Newspaper+ Billboard) Miscellaneous Expense (Include Trade show and concert) Salaries and wages Expense Supplies Expense
40,00,000 25,00,000 1500000 1100000 9100000 TK. 9800000
Our expected Net Gross Profit in this year is 51.85%
CHAPTER – 11
We prepare a report on “Toothpaste” that the product is modified. We learn many things after preparing our report. We modify the product that is “Close Up Neem Toothpaste” and we believe these products achieve its customer’s satisfaction. In the above we discuss the strengths of our company that will help in future because without strengths a company cannot exit. The opportunities will help our company what kinds of facility will get the future. Our company solves its weakness and overcomes its threats. Our company adds different kinds of flavor in its toothpaste. Our toothpaste contains many advantage or features that will achieve its customer satisfaction. Our company survey different area for its product quality and then it get different kinds of question. And it wants to give best quality that the customers want. The questionnaires will help what kinds of question may be arising in the future. So we can say that our toothpaste must achieve its goal because our toothpaste gives the best quality than other toothpastes in the market. And we believe that our product’s life cycle will be longer.
This study on preparing a Marketing plan enables us to know how a firm plans to reach its marketing objectives through tactical guidelines for the marketing programs and financial allocation over the planning period. As business students we have learned one of the most important outputs of the marketing process.
1. What percentage of toothpaste market is dominated by Close up? 2. What percentage of toothpaste market is dominated by Pepsodent? 3. What percentage of toothpaste market is dominated by other competitors? 4. From when Unilever Produces Close up toothpaste? 5. How many size of Close up neem offer to the market? 6. What percent of market share is capture by Unilever at present? 7. What is the market growth rate of Close up? 8. Who is the target market of Close up? 9. What percent of market share will capture by Close up after modification? 10. How much net profit they earn? 11. Who are the competitors of Close up?
• • Marketing Management \\\\The Millennium Edition ~~ Philip Kotler. Marketing Management /// Eleventh (11th) Edition ## Philip Kotler. 63
Principles of Accounting --- 6th Edition /// Donald E. Kisoe.
http://en.wikipedia.org/wiki/Toothpaste http://unilever.com.bd/ourbrands/personalcare/Closeup.asp http://unilever.com.bd/ourcompany/UnileverBangladesh/At_a_glance.asp