You are on page 1of 39

ACKNOLEDGEMENTS

We gratefully acknowledge God Almighty for giving us courage and


potential for achieving our goals. We would also like to thank Ms Erum Naz
for her invaluable support and guidance in preparing this report. In the end,
we would like to thank all the people, who helped us out in finalizing this
report.

Thank you all.


Misson Statement

“An outstanding global company with leading brands and exceptional people that
together really makes a difference”

RECKITT BENCKISER

HISTORY OF THE COMPANY

Reckitt Benckiser traces its origin to the early 19th century when Issac Reckitt & Jeremiah
Colman established their separate businesses with the passage of time the companies grew
closer and were joined by other family firms with similar ambitions and outlook. Today
Reckitt Benckiser operates as a truly global business, meeting the need of consumer
worldwide.
Reckitt Benckiser basically sell leading household & pharmaceutical products in more than
120 countries around the world. Their brands are well-known household names, used by
more than 1 billion consumers each year.

The Commission has approved the merger between Reckitt Benckiser plc and Dutch
company Benckiser NV. Although the operation is largely complementary in products and
geographical scope, the new group, Reckitt Benckiser, will be the market leader for some
household cleaning and care products. However, it will continue to face strong competition,
including that from major multiple food retail and drug chains, and that the merger will not
create or strengthen a dominant position
RECKITT BENCKISER OF PAKISTAN LIMITED

Reckitt Benckiser is well known to its consumers in the sub-continent since 1916.Recently,
Reckitt has merged with “Benckiser” globally. In Pakistan after the completion of the
statutory formalities the name of the company has changed to Reckitt Benckiser Pakistan
Limited.

Reckitt formally entered the Pakistani market in 1951 as a trading concern. The company
had established it first manufacturing unit at Maripur and today it is known as one of the
leading manufacturer and marketer of Household and Pharmaceutical products in Pakistan.

Reckitt is known for introducing quality products keeping consumer needs in mind. Brands
like Cherry Blossom, Robin Blue, Dettol, Disprin have household names for years.
Recently the company has introduced a wider range of its international product in the local
market. Such as Mortein, Dettol Shaving Cream, Gaviscon etc.

Reckitt Benckiser is a public limited company quoted on stock exchange of Pakistan; it has
a staff of 825 people, with three manufacturing units and a track record of growing sales &
profits.
Besides these tangibles Reckitts is known as an ethical corporate citizen, it is socially
conscious company and has always worked in a manner that serves its commercial interest
whilst contributing to the welfare of the environment in which it operates.
Reckitt Benckiser OF Pakistan: PRODUCT LINE
In Pakistan Reckitt Benckiser deal in the sector of household and as well as in
pharmaceutical. Both the sector have equal share in the firm. Their product line constitutes
of Air care, floor care, laundry care, lavatory care, shoe care, pest control, analgesic and
antiseptics products.

PRODUCT LINE OF HOUSEHOLD ITEMS


PRODUCT LINE BRAND PRODUCT RANGE PRODUCT USAGE
AIR CARE AIROZONE It comes in the form of gel, sprays, This air freshener was launched in
liquid wicks 1999.To fulfill consumer need from
odors-neutralizing to fragrance
enhancement
FLOOR & CAR CARE MANSION It is available in form of paste It cares for a variety of floor surface
& it is also used for shining floor of
new houses.
LAUNDRY CARE ROBIN Robin Blue (1951) It was launched in 1951.
Robin Liquid Blue (1988) Today it ranges includes detergent,
Robin Fabric Softner (1993) fabric bleaches, fabric conditioner,
Robin Liquid Bleach (1993) ironing aids, laundry blue
Robin Cuffs n Collar (1994) whiteners, stain removers and
starches.
LAVATORY CARE HARPIC Harpic Liquid (1985) Harpic is the world number one
Harpic Powder (1992) lavatory care brand. It provides
disinfections and germ –killing for
toilet cistern and toilet bowls.
PEST CONTROL MORTEIN Available in form of sprays & coils It was launched in 1994.it is used
for killing Aerosols, cockroach
Baits, Rat –baits, Rat trips, triggers.
PIF PAF It is available in form of spray It was launched in 1997.It is used
for killing or repelling insects.
COBRA It is available in form of spray It was launched in 1998.It is used
for killing or repelling insects
SHOE CARE CHERRY Paste polish (1951) Quality wax, cream and liquid shoe
BLOSSOM Self shine (1988) care product to care for nearly all
Insta –Shiner (1991) type of shoes. It gives a deep long-
lasting shine.
COBRA It is available in form of Creams, It was launched in 1964.it is an
Liquid, and Pastes. innovative shoe care product.
MELTONIAN It was available in form of creams It was launched in 1981. Basically it
was a shoe care product for
premium class.
SURFACE CARE ZIPP Available in form of liquid, It was launched in 1980. It is an
triggers. easy off self-scrubbing kitchen
cleanser.
SHOE CARE PRODUCTS OF RECKITT BENCKISER

Shoe care products are a very profitable global core category in the household portfolio of
Reckitt Benckiser. This category has a turnover of 66% annually. These products are
available and produced In Africa, Middle East, South Africa and to minor extent of
Australasian and Europe where the firm is marketing it strong leading brands such as
Cherry Blossom, Cobra and Nugget.

CHERRY BLOSSOM:
Cherry Blossom is the leading brand in Reckitt Benckiser shoe care portfolio of Pakistan.
This brand is available in form of Creams, Liquid, paste, Sponges.

COBRA:
Cobra is the second brand in the Reckitt Benckiser portfolio of shoe care items in Pakistan.
Basically this product has a minor presence in Pakistan. It is usually exported to
Afghanistan. This brand is available in the form of Cream, Liquid and paste.

MELTONIAN
Meltonian was a premium product for shoe care product in Reckitts portfolio, which was
available in 7 shades .It use to be in form of cream. But in early 2000 the firm has deleted
the product from its portfolio because it was not generating enough revenue.
SHOE CARE RANGE OF CHERRY BLOSSOM

ITEM SHADES LAUNCHING SIZE IN % SHARE IN RETRIVED


DATE ML PORTFOLIO BACK DATE
PASTE BLACK 1951 100,50,20 90% Neutral & light
POLISH BROWN 100,50,20 tan has been
DARK TAN 100,50,20 retrieved back in
NEUTRAL early 2000.
LIGHT TAN

LIQUID BLACK 1988 2%


POLISH BROWN
NEUTRAL
SHOE NEUTRAL 1997 >1% Retrieved backed
SHINER in 2000.
WHITE White Late 1951 100,50 6%
LIQUID
POLISH
SHOE NEUTRAL MID 80’S 1% Retrieved back in
CREAM MAROON early 2000
BLACK
LAUNCHING A SUEDE SHOES SPRAY POLISH
We are launching a suede shoe polish spray under the brand name of Cherry Blossom.
Cherry Blossom is the market leader in the shoe care industry and has a well-reputable
brand name. We have noticed a significant demand in the market for a polish for the sued
material of shoes as the shoe industry is growing with the rate of 7% over last 10 years.
(Economic Survey Of Pakistan). Suede shoes have been in fashion for some time now and
consumers are not having any proper shoe care product for suede shoes. We had conducted
a small study of the shoe care market in which we had interviewed retail shoe outlet owners
and consumers to inquire if there was indeed a significant demand for a polish for suede
shoes. On the basis of this study, we have come to the conclusion that there is a need for a
proper suede polish as the only polishes available in the market are either locally
manufactured (not available everywhere) or they are imported (too expensive).

MARKETING RESEARCH PROCESS SUEDE SPRAY


In marketing research process we conducted Descriptive research, as our objective was to
describe things such as market potential for our product or the demographics and the
attitudes of consumer who will buy our product. Our first part of recommendations has
covered the areas of opportunity on the basis of shoe types and accordingly the shoe care
products that are needed.
Results of Consumer Survey (Total=250 people)
Shoe Type for Which
Polish Is Not Percentage
Available Count
Sports Shoes 80 32.00%
Rubber 5 2.00%
Nagras 30 12.00%
Suede 110 44.00%
Rexene 10 4.00%
Plastic 15 6.00%
Total 250 100.0%
Results of Retailer Survey (Total=20 Shoe Stores)
Product is needed or not
Suede Polish
Count Percent
Yes 14 70.00%
No 6 30.00%
Total 20 100.0%

Marketing objective
“To increase usage of suede shoe polishes and to provide the consumer
with an easy-to-use and effective polish”

DEVELOPING GROWTH STRATEGY:


The strategy we have used is product development. Our product is new and the market
already exists for imported and locally manufactured sprays.

Looking at the analysis of our survey we have found that “suede” is fast taking over market
as the second most preferred type of shoes. It is gaining popularity and recognition for its
attractive designs, comfort and smart look. However, as far as the polishing of suede is
concerned it is a major issue among the consumers and the retailers as well as we can see
44% consumers desiring a polish for suede.
We observed almost all big retailers like English Boot House, Modila Shoes, Service, Bata,
Hush puppies and other stores in different areas of Karachi. During the fieldwork we found
out that EBH and Modila do keep suede shoe polish. But these sprays are either imported
(very high price) or locally manufactured (not good in quality). The analysis has very
clearly shown that 60% retailers demand for suede polish (At reasonable prices). Secondly,
they have no issue in stocking these products as long as consumer demands them. Suede
has already become a part of fashion, so the need for proper shoe care products for suede
will definitely arise.
Launching a suede spray can be a major success if combined with the right marketing and
promotional mix. According to or surveys currently the suede sprays that are available in
the market are at only a few shoe retail outlets as well as a few supermarkets. These
products are imported mostly and are not available in the most common purchase place
selected by consumers that is ‘General Stores’ or any normal shoe store.
From consumer point of view “suede spray” should be available but at a reasonable price.
If we look at the market and the evoked set of shoe care products that people have in mind,
we see that people are well aware of particular brand names in the shoe care products
category. This could be a major opportunity area for shoe care products manufacturing
companies. If a suede spray is launched in the market with any of these famous brand
names like “Cherry Blossom” or “Kiwi” the consumer is going to buy it. But as the prices
of KIWI is very high they are not capturing the market and a lot of potential is there which
we will avail. In the current scenario of brand loyalty and repeat purchases these brands are
doing pretty well. If suede spray is being launched under any of these brand names it could
easily beat the imported brand currently available at the retailers shop. Another important
observation is that retailers of Bata and Service shoes specifically preferred and
recommend “Cherry Blossom” for the shoe protection.
Consequently, we can say that launching “Suede Spray” is a brilliant idea. Some
important points that should be kept in mind are the pricing, packaging and distribution.

Will it add value to the existing brand?


As mentioned before that Cherry Blossom is a very well known brand, launching a
Suede Shoe Spray will again add more value and variety to this brand. As there is a lot of
demand from consumer and retailers sides. Looking at the consumer behavior we have seen
that they are very careless about polishing their shoes and for a shoe type like suede they
might not get bothered about polishing the shoes. So, launching a Suede Shoe Spray will
definitely bring ease to the customers. Polishing shoes will be no more a hectic job; our
product is very instant and easy to use. We already have many loyal customers and by
adding this new product they will be more satisfied. Different sizes will be available in the
market as to increase affordability. Advertising should also be done in order to increase the
awareness for polishing the suede shoes. Proper distribution at retail stores can do wonders
for the success of “Suede Spray”.

POSITIONING STATEMENT
“Round the clock shoes protection”

Branding
The product will be launched under the established brand name of cherry blossom and will
be a line extension in the form of a new product development growth strategy.

Current Product New Product

Present Market SUEDE SPRAY

New Market
SWOT ANALYSIS

Strengths
1. The product is being launched under the brand name of Cherry Blossom, a name which
is deeply entrenched in the minds of the consumers and which commands premium.
High brand loyalty exists in the market and consumers are likely to try out the new
product being launched under the name of Cherry Blossom.
2. Reckitt Benckiser has been in the shoe care business for a considerable amount of time
and has the required marketing expertise and knowledge about the attitudes of the
customers. Since Reckit Benckiser is launching our product, the launch would be
greatly helped by the accumulated experience of the company.
3. Reckitt has a wide and extensive distribution network. This distribution network will
ensure a wide coverage for our product.
4. The name of Cherry Blossom will help us to secure sufficient shelf space since Cherry
Blossom is a fast moving product and retailers are likely to stock such a product.
5. Existing facilities will be used for packaging of the product. This will result in
considerable savings in terms of investment in fixed assets.

Weaknesses
1. Though the company has a wide distribution network, it has generally failed to
maintain the quality of the channel. The retailers have questioned the efficiency of the
channel in terms of its ability to fulfill the orders in a timely manner.
2. Since the product is being launched under the brand name of Cherry Blossom, the
brand equity could suffer if the product is not successful and this can result in decreased
sales of other products.
3. Since there is a general lack of awareness in the market regarding the availability of
suede polishes, the company faces an uphill task to create such awareness. The
company will be forced to advertise heavily which can result in losses in the initial
years.
4. It would have very little control over the quality of the actual product since the
company is not preparing the polish itself. It would have to adopt strict quality checks
to ensure that the product that is being delivered to the market is of the highest quality.

Opportunities
1. Research indicates that the attitudes of people are changing and there is a growing
demand for suede shoes. Since polish is a complimentary product, the increase in
demand for suede shoes is likely to be accompanied by an increase in demand for suede
polishes.
2. Despite the presence of a number of brands of suede polishes in the market, there is a
lack of awareness regarding the availability of such a product and a huge portion of the
market is still not being served. Thus, there is great potential for our product to capture
a significant portion of the market in the initial years.
3. The Government has reduced taxes on shoe polishes and therefore the product can be
made available to the consumers at a lower price.

Threats
1. Currently, the entry barriers in this industry are very low since many retailers are
buying the polish from an outside vendor and selling it under their own brand name.
This trend could continue and many new competitors could emerge in the near future.
2. The vendor himself could become a competitor after gaining sufficient amount of
experience.
3. If product does not perform up to the customer’s expectation, it will affect other
products under same brand.
MACRO ECONOMIC FACTORS( STEP ANALYSIS)

Social factor
1. The market size for suede shoes will increase in proportion to the population growth.
Estimates show that population growth rate is forecasted at 4%.
2. Consumers changing preferences. Suede shoes have become a regular choice for both
sexes for casual as well as formal wear. The more the market for suede shoes increases, the
more suede polishes will be in demand as our polish is a complimentary product.
3. Increasing number of women in workforce. Suede is a natural choice for women
especially for formal wear and with the increasing usage of suede shoes, demand for
polishes is bound to rise as well.

Political factor
1. The industry has better chance for growth because recently the government has
removed regulation on this industry and has even reduced taxes on this industry.
2. Most of policies, regulations are dictated by parent company so changes in political
situation does not have a direct bearing on our company, although a stable political setup
would improve the company’s business.

Technological factor
1. The firm is equipped with the latest automated machinery to package the suede polish
with minimum occurrence of waste.

Economic factor:
1. Gross National Product of our country does not give a true picture of the purchasing
power of an average citizen.
2. Economic condition of Pakistan is showing signs of recovery that will have a positive
impact on business condition in the country to expand operations.

Cultural factor:
1. Our launching will be near by the season of EID (mid-Ramzan) that is the peak
shopping time from customer’s point of view.
MARKET SEGMENT:

Demographic segmentation
Age: 18-42
Gender: Male and female
Income: Rs. 10,000 +
Social Grade: Socio-economic class: “A & B”
Social status: Upper and Middle class
Heads of household: Male / Female
Occupation: Students, working class, businessmen, professionals.
Marital Status: bachelor, married couples,
Geographic: it will be launched only in Karachi for the first year and then it will
be launched in other major cities of Pakistan

Geographic segmentation
The segment of the market is distributed geographically in the areas of:
• Clifton
• Defence
• Tariq-Road
• Hyderi
The above geographical locations consists of the target market that is according to income
and demographical specifications

Psychographics segmentation
Lifestyle: outgoing, high spending pattern, progressive
Personality appearance conscious,
Self-concept educated
Behavioral segmentation

Level of use: it is used on frequent basis either daily or weekly


Occasion of use: usage is not occasional, it is frequent or when need arises
Buying intensity: mostly monthly or quarterly

Segmentation basis
We have segmented our target market on the basis of household income. We are targeting
the income bracket of socio-economic class A and B who fall under income category of Rs.
10,000 per month and above. For A class, usage of suede is more common in both sexes
and thus they will be our primary targets. We will use effective marketing strategies like in-
store publicity, free trials, posters, buntings, etc. (details of our comprehensive marketing
strategies are given in our marketing plan) in areas where A class citizens reside or shop
more frequently.
B class citizens also purchase suede shoes but on a lesser frequency so we will not pursue
aggressive marketing strategies in B class localities. Rather we will use normal marketing
tools like in-store publicity, etc.
With the passage of time, the size of the suede shoe market is predicted to expand
according to our retailer survey because customer trends are shifting to purchasing suede
shoes for both casual as well as formal wear. Whenever the market is noticed to expand, we
will increase our marketing reach all over the city and also all over the country.
TARGET MARKET

Initially, we are going to market our product only in the metropolitan city of Karachi. The
reason for this is that we had conducted our research strictly in this geographical area and
to apply the results of our survey to the entire region of Pakistan would be a wrongdoing.

Short Term Goal


For the first six months we will be launching our product at these specific markets in
Karachi, as they have much of untapped potential for our product. These markets are very
ideal according to our Market segmentation as mentioned before:
Defence, Clifton, Tariq Road, Hydery.

Long Term Goal


After looking at the customer response and profitability / Sales ratio in Karachi we will be
launching our product in all over Pakistan. In long run our goal will be to capture 50%
market share over the next three years. Once our product is successful, we will bring in
color variations depending upon the marketability of different colors.
As we have a cost advantage over other local and international competitors we also can
expand our reach to international markets and make huge profits by exporting the suede
spray to major countries.
COMPETITOR ANALYSIS

Our competitors can be divided into 2 broad categories:


• Imported products
GOLD
• Locally manufactured products KIWI 5%
10%

OTHERS
Imported products 15%

The major brands available in the market are:


EBH
Kiwi 70%

Gold
Polishes sold by Modilla under their own brand name.

The prices of these products range from Rs. 75 to Rs. 150. These products are available
only at a limited number of retail outlets and they target a very small portion of the market.
These products aim to skim a lot of profit from a small but a profitable segment of the
market by keeping their prices high and limiting their expenditure on promotion and
advertising. These products try to attract customers through their attractive packaging.
Their packaging consists of a metal, aerosol can along with a brush to clean the dust on
shoes. These products also provide an added benefit in the sense that these polishes can be
used for other purposes such as for cleaning handbags, wallets, jackets etc.

Locally produced polishes


The polishes are prepared by independent manufacturers and then sold to major shoe
outlets like EBH and Scrubber. These outlets then sell these polishes under their own brand
name. These polishes are available in a standard size of 250 ml at Rs. 59. Though the prices
of these products are low, the sales of these products are not high because first of all, they
are not widely available and secondly, no effort is being made by the outlets to induce the
trial of the product. Most of the customers that visit these outlets are not even aware of the
presence of such a product.

COMPETITIVE EDGE
First of all the competitive advantage exists because we have very low cost of production
and thus we can sell our product at very cheap and reasonable prices to gain a high market
share in less time. Secondly Cherry Blossom has a good brand image and is perceived to
have high quality standards, so there are more chances for our product to prosper.

4 Ps
PRODUCT
By the term product we mean the actual good service we are providing to our consumer to
satisfy there need and what is different in our product compared to our competitor. The
product we are offering to our consumer is a Suede Spray polish that will help clear dust
and keep the shoe safe from stains and dirt.

LEVELS OF OUR PRODUCT


Figure on next page

Core product
Our core product is shoe polish in the form of spray, which is basically used to clean suede
shoes. We fee that shoes are an important factor in a persons personality and we are
providing a product by which our consumers can keep their suede shoes in spic and span
condition. The polish will be available in a plastic bottle with 250 ml content.

Actual product
Our actual product is suede shoe polish, which is only applicable on suede shoes. We will
be launching the polish initially in Neutral color, as it is the most commonly used and can
be applied on almost any surface.

Augmented product
We will be providing consumers with a fragrant suede spray that will protect and clean
their suede shoes primarily. Our suede spray can also be applied on other select apparel or
suede products like nubuck leather jackets, suede purses, etc.
PRICING
Our price versus the competitor
The price for the suede spray is going to be Rs. 50. We are currently the only local
established manufacturer that is bringing a suede polish in the market and the competition
we are faced with are imported suede sprays, locally manufactured suede sprays and
smuggled suede sprays. The price comparison of the different products available in the
market is as follows:

Brand name Price (Rs) Quantity


Cherry blossom (suede polish) 50 250 ml
Kiwi 275 250 ml
Gold 75 80 ml
EBH (suede cleaner) 59 250 ml
Scrubber 59 250 ml
Servis shoe 60 250 ml
Modila Shoes (imported) 100 150 ml

As we can see from the above table, Cherry Blossom will be entering the market with a
price of Rs. 50 per 250 ml bottle. Our main competitor in the shoe care industry is Kiwi
and Kiwi does not have any locally manufactured suede spray, instead the Kiwi suede
spray available is imported or smuggled and it is available in only selected retail stores all
over Karachi and these stores are only in the high income areas. The other competitor Gold
is a Turkish brand that is imported and this product has failed to capture a significant
market share. Thus we are directly competing with local retail shoe outlets like English
Boot House and Scrubber who get the suede spray manufactured locally. The sales at these
outlets of suede sprays is very high as consumers do not have any other alternative i.e.
there are no other suede sprays available at retail stores.

Price Quality Strategy


HIGHER PRICE LOWER PRICE
QUALITYHIGHER

PREMIUM STRATEGY GOOD-VALUE STRATEGY

OVERCHARGING STRATEGY ECONOMY STRATEGY


QUALITYLOWER

The cost structure of our suede spray on a per unit basis is as follows:
Maximum Retail Price 50
Retailer Margin (10 %) 5
Wholesale Price 45
Wholesale margin (10%) 4.5
Trade price 40.5
Distributor Margin (6.2%) 2.5
38
Sales Tax (@18%) 7
Gross Price 31
Gross margin (40%) 12.4
Cost price 18.6

At Reckitt Benckiser, no product will be manufactured unless the Gross margin on the
product is at minimum 40%.

Cost price breakup per unit basis:


Cost Price 18.6
Manufacturing Cost (Rs. 20 per liter) 5*a
250ml
Packaging Cost 10.6*b
Labor Cost 2
Factory Overheads 1
0
*a Manufacturing Cost includes the following
Liquid Detergent
Distilled Water
Dye
Fragrance
*b Packaging Cost includes the following:
Plastic Bottle
Nosel Spray
Carton Cost
Printing
Manufacturing will be outsourced to a local manufacturer Champak International
Company, while packaging will be done at Reckitt’s own factory. The primary reason for
this decision is that if this same product is entirely manufactured at Reckitt’s own facility,
the cost per unit would rise substantially as the labor cost is very high. If this same function
is outsourced, we will be saving immensely on manufacturing cost and we will be able to
provide an economical product to our consumers. This outsourcing is however done
keeping the standard practices of Reckitt Benckiser at top priority.
Expected price change
The prices in the shoe care industry are forecasted to remain the same over the next few
years, however, fluctuations may be expected in the tax structure

MARKET-PENETRATION

Rather than setting a high initial price to skim off small but profitable market segments, we
have decided to introduce the product with a low price and heavy promotion spending. On
one hand, a low initial price will help us to penetrate the market quickly and deeply - to
attract a large number of buyers quickly and win a large market share. On the other hand, a
heavy expenditure on advertising and promotion will help us to create awareness about our
product since most of the people are unaware of the availability of suede polishes. It is
expected that with an increase in sales, our unit manufacturing costs will fall with the scale
of production and accumulated manufacturing experience.
A look at the current prices prevailing in the market reveals that at Rs. 50, our product will
have the lowest price. The reason we are able to charge a very low price is because:

• In case of imported products like Kiwi, the cost of importing the packaged product
makes it very difficult for them to charge a low price. This product is available only at
a limited number of stores and attracts only the high-end of the market.
• Since they do not have any production facilities, local retailers like EBH have to
rely on outside vendors not only for the product itself but also for the packaging of the
product. They then sell the product under their own brand name. The presence of the
outside vendor increases their costs and hence they are not able to charge a lower price.
• We on the other hand will be able to charge a lower price because existing facilities
of Reckit Benckiser will be used for packaging purposes whereas the manufacturing
function will be outsourced.

PACKAGING
By the term packaging we are trying to communicate to our consumer how will the product
reach them and in what color scheme, shape and sizes will it be available. Initially, we plan
to launch the suede spray in a cylindrical bottle with a spray nosel fit on top for applying
the polish. The bottle will hold a maximum content of 250 ml and will be in a yellow color
packaging. On the bottle, we have printed a sticker with the company name, logo, product
features and usage instructions along with other information like precautions.

PLACE:
Shelf space, display space, front shelf
One of the main features of Reckitt Benckiser is its extensive distribution coverage. We
have an 87 strong distribution network all over the country and in Karachi where we will
be launching our product, we will be distributing in Karachi through our three main
distributors namely APEX, MULTICARE and JTM. The areas of Karachi allotted to each
of these distributors are as follows:
APEX District South and West
MULTICARE District Central
JTM District Malir and East

Our distributors will collect the packages goods from our factory at S.I.T.E. and then each
one of them will be responsible to evenly distribute the product to wholesalers / retailers in
their respective districts. At retail stores, it is our mandate that the polish be displayed at an
eye contact level so that it is visible to the customer easily. In-store setting will be
discussed in more detail in our marketing plan in the following section.
Our distributors are supposed to replenish stocks at all retail and wholesale outlets at a
frequency of once every fortnight regularly and in case of specific orders from retailers /
wholesalers, as and when the need arises.
Lead-time from order to delivery will be one day because our factory is situated in Karachi
and our target market is also Karachi. Shelf life of the product is 3 years.
Setting The Total Promotion Budget and Mix:
One of the most difficult marketing decisions facing a company is how much to
spend on promotional activities. Usually four different methods can be used for the
promotion of our product. The method we will be using for budgeting our promotional
activities is the ‘Objective and Task’ method.

Promotion Objective:
‘Reckit & Benckiser’ does not have any budgeting problem ,people already know
about the existing brand. We just have to create awareness about the new product being
offered by the same brand in the market. Promotional activities will not be done in order to
create awareness about the new product under that brand name itself.
1. Tasks needed to achieve these objectives:
Different tasks included in achieving the promotion objectives, i.e. to create awareness
about the ‘Suede shoe spray’ include:
Offering Lower Introductory Prices, Price packs and POP (Point of purchase). ( This refers
to the Pull Strategy).
In the beginning we will be giving certain incentives, allowances to retailers in order to
make them increase our sales. We even have to provide the shopkeepers with good
incentives, so that they keep our Shoe spray in a prominent shelf of their shop.(Push
Strategy, specially in early age of product lifecycle).

2. Estimating The total Budget:


According to the survey, we have different details on how costly it is to provide
incentives and allowances to retailers. To ask shopkeepers to keep our product in the most
prominent shelves of their shops will add to our expenses.
Selecting Promotion Tools:
The two promotion tools we are using for the promotion of our product ‘Suede Shoe Spray’
are :
Sales Promotion Tools:
• Price-Packs: Firstly, we will be offering an introductory price in the early age of the
product life cycle to attract customers.
• Point Of Purchase(POP) Promotion: There will be banners and posters and tying-up
POP materials, at the point of purchase that will create awareness about the new
‘Suede Shoe Spray’ available in market with higher quality and lower price.

Advertising Tools:
• Firstly, we’ll be putting on Banners , distributing Brochures and Leaflets and
placing Posters through out the city to create awareness about the new product
‘Suede Shoe Spray’.

Banners :We have planned to put banners at the prime locations such as Tariq-road ,
Schon circle, Hyderi Market , Main Zamzama Street . At the same time banners are also
going to be placed at these locations e.g. Shahra-e-Faisal and I.I Chundrigar Road. These
banners are going to create the needed amount of hype and awareness
10 Banners (8ft length*3ft breadth) four color = 850*10 = RS. 8500(Estimated)

Brochures and Leaflets: We have planned to put brochures and leaflets at prime
locations of Tariq Road, Boat basim , Park Towers, Clifton etc.(major departmental store)
Leaflets are going to be distributed at the major signals of our market which consist of
mainly Schon-Circle , Mc Donalds signal Tariq Road.
5000 leaflets at the cost of 2.5/leaflet = Rs 12500/- (Estimated)

Posters:Posters of 3*2 will be placed various locations like snoopy, Tariq road (Dolmen
center),Agah’s Supermart , EBH , Bata , Service stores in our marget market
.

• Secondly, we’ll be giving advertisements in newspapers. The Newspaper we


selected is ‘DAWN’ as according to our survey, DAWN has the highest frequency
of readers all over Pakistan. In DAWN, the advertisement will be published every
Sunday in the ‘IMAGES’ section, as even the most irregular newspaper reader
gives a look at the ‘IMAGES’ section of DAWN.

• We will also advertise on Television. The channels we have chosen for


advertisement are ‘Star Plus’ and ‘PTV Network’, as these two channels have the
highest number of viewers. The timeslot, most suitable for our advertisement on
both the channels is from 8:00p.m. to 10:00p.m. This is due to the ‘Drama Hour’
and ‘PTV News’ telecasted on the ‘PTV Network’ in this period of time. Then, on
‘Star Plus’, it is because of the most famous program ‘Kaun Banega Karorepati’
telecasted in these time intervals.

Relative importance of promotion


tools for launching 'Suede Shoe
Spray'

Advertising

Sales Promotion

Personal Selling

Public Relations

Message Execution:
Life Style:
We will attract customers by making them ‘Image and Style conscious’. In our
advertisement, we will be showing people with style and glamour. Thus, in order to
maintain style, it is equally important to maintain the look of your pair of shoes, which can
be done by applying the new ‘Suede Shoe Spray’ by Cherry Blossom.

Testimonial:
The models for our advertisement will be famous and inspiring personalities of our society
and targeted market who like wearing and maintaining suede shoes, who have now tried
and adopted the new ‘Suede Shoe Spray’. Through this, a great percentage of people in our
society can be convinced at buying our shoe spray.
We can say that ‘ One of the purposes why people avoid wearing suede shoes is the
problem of its maintenance’, the easy solution to this problem is the existence of ‘Suede
shoe spray’ that gives a totally new look to already worn shoes. This will make a good
market of suede shoes and thus for suede shoe sprays.

MARKET TRENDS:
Where is the market going and why?
The shoe care industry is still in its growth stage because new products and new entrants
are coming in market at regular intervals. Consumer behavior suggests that with the
increase in suede shoes usage, there is already a need for suede shoes and this market is
being served with only locally manufactured products or imported products which are out
of the reach of a major portion of the target market. Thus there is still untapped potential in
the market.

Product life cycle:


The product suede shoe polish is currently in its introductory stage.

MARKET CONSUMERS:
Who will be buying our product?
In our society mostly house wives purchase the household items and our product is also
included in this. According to our research, the purchase frequency of shoe polishes
depends on the frequency of usage. The frequency of usage identified is 89.2% either on a
daily (43.6%) or on a weekly (45.6%). Thus we can safely conclude that shoe polish
purchase and usage frequency is very high amongst consumers so our product is bound to
take off with very good returns.

Why will they buying?


Basically shoes play a important role in a persons physical appearance and thus people
purchase shoe polish to give a clean look and also to protect their shoes from dust and dirt.

What are they looking for , or on what factor are there buying decision
made?
Basically in our society, consumers look for quality, value for money, brand name, and
convenience of using the product. On this basis, since the suede spray is being launched
under the established brand name of Cherry Blossom (which is also a market leader in the
shoe care industry), we are addressing these key areas and we forecast a high sales figure.

Can the product increase consumer satisfaction/value


In my opinion this line extension by Cherry Blossom will satisfy consumers because they
can now purchase a good quality suede polish of an established brand name. The usage of
suede shoes by both sexes is becoming more of a common phenomenon and it is no longer
a fad. With the increased usage of suede shoes, the consumers are demanding a polish for
these shoes. By providing them a high quality product with low prices will definitely add
more value and we will be able to retain our loyal customers and also bring new satisfied
ones
 Kiosk displays at retail outlets.
We will be giving display stands to selected retail outlets all over Karachi. We have
decided to give kiosk displays to 200 shops all over Karachi in different areas. These
display stands will be of fiberglass and will hold only our product. It will have a capacity to
hold 24 of our suede sprays and will be a four-storey stand. We will also incur an
additional cost of transportation and will also have to give retailers a separate margin for
letting us put up the stand in their shops.
Cost incurred is as follows
Kiosk stands @ Rs. 2,800 in 150 shops = Rs. 420,000
Transportation & Retailer margin = Rs. 200,000
Total = Rs. 620,000

 Shelf stackers at retail outlets:


10,000 @ Rs. 2.00 = Rs. 20,000

 Buntings: Size will be 3*2 inches


20,000 @ Rs. 4.00 = Rs. 80,000

LAUNCHING DATE:
The promotion will start on the 1th of Ramazan and will go on until the night of Eid
Wednesday. The promotional stalls will be setup in the following areas of Karachi:
Tariq road, Saddar, Clifton, Haidery, Defense, and Gulshan-e-Iqbal.

ALLOCATED DAYS ALLOCATED DAYS

Project Assigned

Debugging & finalizing of questionaries

Development of survey plan

Actual Survey

Analysis of data

Finalizingthe data
Feeding the data into computers

Report writing

Promotions material

Contingencies

Submission Date

This section of our report is for reference and it contains some of the results we had
gathered as part of our research. This sections has the respective questions and also the
results obtained that have been indispensable to us in determining the marketability,
demand and average consumption of the suede polish.

QUESTION # 1

Do You Prefer Particular


Brand?
Count
Yes 207
No 42

The objective of this question is linked with our information needs as to ascertain whether
people are brand loyal when they purchase polish or do they just purchase at random
By looking at the responses of our sample sizes it clearly indicates that a majority of our
sample are brand loyal and are not easy switchers until something extraordinary is provided
to them. There are different attributes people attach to polishes. Some prefer only their tried
brand and would go to great lengths to purchase only that particular brand, whereas others
say that they do not care much about which brand they are purchasing because they believe
there is not much difference in the polishes available in the market.
QUESTION # 2

Kiwi Cherry Lude Deer Rex Other


Brand
Count Count Count Count Count Count
Yes 166 185 4 3 20 8
No 83 64 245 246 229 241

This question aims at indicating specifically which brand the sample are using. After
having established usage, brand awareness and brand loyalty, the next step was to find out
exactly which brand do consumers use. This question however is a multiple response
question and consumers have ticked on more than one brand being used by them.
Frequency of purchasing a particular brand depends on the brand loyalty, awareness and
satisfactory result of using the polish. Since many in our sample did not find any major
differences between Kiwi and Cherry Blossom, these two brands have the highest usage in
our sample. Cherry Blossom however is the leader of the pack in terms of usage as was
evident in the fact that Cherry Blossom also had the highest mind-share of our sample.

QUESTION # 3

Monthly Quarterly Semi- Annually Other


Annually Purchase
Habit
Count Count Count Count Count
Yes 142 71 21 14 1
No 107 178 228 234 248

As per our research information needs, we were also supposed to find out the purchasing
frequency of shoe polishes. This is an important factor when deciding on the distribution
aspect of any product. This will help our client ascertain how regularly should stocks at
retail and wholesale stores be replenished.
Basically frequency of purchase greatly depends on the usage of product. During the
survey we have found out that there are a number of reasons due to which purchase of shoe
polish varies.
QUESTION # 4

Supermarket Kiryana General Store Other Place


Count Count Count Count
Yes 86 60 111 13
No 163 189 138 236

This question helped us identify the purchasing place of our sample.


Purchasing place of consumer greatly depends on the availability of product, variety,
retailer influence, etc. During the survey we found out that people purchase shoe care item
from places where they get a complete range of product, and generally from places they
buy their monthly ration from.

QUESTION # 5

How Frequently Do You Use Polish?


Frequency Percent Valid Cumulative
Percent Percent
Valid Daily 109 43.6 44.1 44.1
Weekly 114 45.6 46.2 90.3
Forthnightly 11 4.4 4.5 94.7
Monthly 12 4.8 4.9 99.6
12 1 .4 .4 100.0
Total 247 98.8 100.0
Missing System 3 1.2
Total 250 100.0

This question tells us the frequency of polish usage that is in close context of the frequency
of purchase in Question 9.
Frequency of usage varies from consumer to consumer. Some people are very conscious
about the protection and shine of shoes and their frequency of usage is very high, while
some people are careless and polish it once in a blue moon. Some consumers in our sample
say that bother cleaning their shoes, they get it don’t by cobblers
We have noted that the frequency of usage on a weekly basis is the highest in our sample.
One interesting finding was that a number of our sample elements told us that they polish
shoes once a week with either ‘liquid’ or ‘paste’ (according to usage) and the remaining
days of the week, they just apply ‘shoe shiner’ to give the shoes a neat look. The number of
consumers who related this habit of polish usage was also quite substantial.
The second highest frequency of usage is ‘daily’. These consumers are mostly those who
do not usually polish their shoes themselves rather it is done by servants (mostly), wives,
and by cobblers (least)

QUESTION 6
The purpose of this question is to ascertain what are the types of fast selling shoes. This is
an important factor specially for polish manufacturers as it will guide them as to what the
customer demands are. If the findings of this factor are capitalized on, the polish
manufacturers will have an edge over competitors as they would have provided the
required shoe care product in advance.
Leather Rexene Suede Shoes Sports
Shoes Shoes Shoes?
Count Count Count Count
Yes 37 19 31 10
No 3 21 9 30

Leather shoes are leading in demand and this is obvious due to the popularity of quality
leather shoes available and also the fact that leather shoes serve a dual purpose of being
worn as formal as well as casual wear.
Rexene shoes, mostly preferred by women has an almost 50-50 demand. Rexene shoes are
economical, they come in a wide variety and they are also available in fancy designs that
replicate the latest fashions in the market.
The popularity of suede shoes is of considerable importance. 77.5% of retailers have agreed
that suede shoes are demanded regularly. This is a sign for polish manufacturers to take
advantage of this growing market and make products available such that consumers have
no obstacles in finding adequate shoe care products.
Sports shoes have always been in constant demand and these shoes are such that their
purchase is not on a very regular basis. One pair of sports shoes would last consumers
longer than other types of shoes but this factor would also depend on the usage of these
shoes. Retailers however have pointed out that sports shoes are demanded regularly.

PRODUCT LINE OF PHARMACEUTICAL ITEMS

PRODUCT LINE BRAND PRODUCT RANGE PRODUCT USAGE


ANTISEPTICS DETTOL Liquid (1951) It is a specialized antiseptic
Soap (1973) liquid used widely. its spectrum
Plasters (1991) of use covers personal &
Shaving Cream (1992) environmental usage including
Antiseptic Cream (1993) wound cleansing, personal
hygiene, surface disinfections
ANALGESIC BONJELA Available in gel It was launched in late 80 ‘s. it
is a product for relief of pain
and discomfort of mouth ulcers,
cold sores, denture sore spot &
infant teething.
DISPRIN Available in form of Was launched in 1964. It is
tablets recommended for relief of pain,
fever and inflammation.
DISPRIN CV Available in form of Launched in mid 90’s. It helps
tablets in minimizing future risk for
patients with platelet –related
disease.
DISPROL Available in form of This product was launched in
tablets & liquid 1999.it help in relive of pain and
reduces fever.
DISPRIN DIRECT Available in form of It was launched in 1995.it help
tablet in relive of pain immediately .it
can be taken without water even.
GASTRO- SENOKOT Available in form of It was launched in 1982 .it is
INTESTINALS Granules, syrups, tablets used in reliving occasional or
non-persistent constipation.