An Assignment

For
Business To Business Marketing

“The Marketing Plan”

To Launch New Chewing Gum

INSOGUM
In Indian Market

SUBMITTED TO: SUBMITTED BY:

Mr. Shubendra S Kaushlendra Kumar singh
Parihar (JIML-09-066)

Dated: 02/11/2010

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 Acknowledgement

Getting practical knowledge should be one of

the major aims of any business program.
Jaipuria Institute Of Management, Lucknow
has started following policy of assigning
different practical assignments to its
students so a touch of real working
environment can be given to the students
apart from classroom studies to widen their
perspective.

The satisfaction and euphoria that

accompany the successful completion of any
work would be incomplete unless we mention
some of the persons, as an expression of
gratitude, which made it possible, whose
constant guidance and encouragement
served as a beckon light and crowned the
efforts and success.

I take this opportunity of expressing our

gratitude to Prof. Shubhendra Parihar, who
has always been of immense help during the
making of this project, which helped us a

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great deal in enhancing our knowledge by
virtue of practical application. Her guidance
and support carried us all through the
preparation of this project.

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 TABLE OF CONTENTS

Acknowledgement ______________________________ i

Table Of Contents ______________________________ ii

Executive Summary ______________________________

1
Mission Statement ______________________________ 1

Situational Analysis ______________________________ 2

Product Features ______________________________

2
Target Market ______________________________
3
Market Segmentation ______________________________ 3

Positioning ______________________________
4
Competition ______________________________
5
SWOT Analysis ______________________________ 5

Product Name and Logo ______________________________ 6

Product Packaging ______________________________

7
Product Labeling ______________________________
7
Product Pricing Strategies ______________________________
8
Break Even Analysis ______________________________ 9

Promotion Techniques ______________________________

10
Distribution Channels ______________________________ 11

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 __ INSOGUM__
MARKETING PLAN

Executive Summary:

INSOGUMis an innovative product by The KK Pharmaceuticals. INSOGUM is a chew

gum for diabetes patients to lower the diabetes level. It is easily available, easy to use, and
highly effective product and its aim is to replace traditional medication techniques for
diabetes like injections and offer medical treatment to diabetes patients through painless
and freshening to medication techniques.

Mission To preserve health and improve quality of life by

Statement: providing
thoroughly researched high-quality innovative medical solutions to the public
through
a highly capable and motivated human resource.

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Situational Analysis:

The KK Pharmaceuticals is in its first year of business as a start-up operation. The

company believes in providing health products to market through innovative means. For
which it conducts research. InsoGum is a result of long researches and could prove to be a
product that can change the way of medication.

Diabetes patients usually have to take injections as a medication; and injection comes with

its own set of problems. To give injection doze there should be some expert, moreover
taking injection is a painful process. So an alternative to injection for insulin is what market
needs.

There have been attempts earlier to bring alternatives for diabetes patients and introduction
of insulin inhaler in 2006 by a US based company was also such attempt. Insulin Inhaler
failed because of its high prices. Keeping in view present, past and future The KK
Pharmaceutical is proud to introduce INSOGUM; a chew gum for diabetes patients. This
product is easy to use, easy to market, easy to prescribe (as it is available in 2 potencies)
and most importantly, it is available in affordable price.

PRODUCT Features:

Easy to chew

Non-
Sticky
In natural fruit
Flavor
Chew gum in pink color

Size of chew gum will be half of average chew gum available in market.

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Target Market:

Target market is divided in 3 factors:

1. Diabetes patients in remote areas.

2. For those diabetes patients, who don’t want to go through painful procedure of taking
injection. 50+ diabetes patients fall especially in this category.

3. Upper and upper middle class diabetes patients; who are early adopters of innovative
products.

Class adopters,
15

Remote, 35

Injection Factor,
50

Market
Segmentation:
Market is segmented on the basis of geographical and psychological factors.
Remote areas target market fall under head of geographic segment. Injection and
class factor market fall under head of psychological segment.

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Positioning and
Competition:
GUM
alternatives because of new and innovative features. Other insulin medicines (both

In contrast; INSOGUM is a customer oriented product- whose goal is to providing

focuses target market feelings along with their product quality. That is what makes

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Competition
:
As it is shown in above graph, that INSO GUM is positioned in upper right corner of graph,
which makes it high priced and high quality product. Its high price is justified because of its
additional benefits which it delivers to its users. Also it is an innovative product and
company is using market skimming price strategy to enter into market.

SWOT
Analysis:
The following SWOT analysis discusses to key factors that may positively or negatively
affect the progress of product and company in the market.

Strengths Competitive advantage because of extra features, innovative product.

:
Weaknesses: Short expiry dates because of product nature, Potency matching
problem may be too complex for common users.

Opportunities Additional product lines could be introduced for similar diseases

:
after some research..

Threats:Doctors may hesitate in prescribing it in initial stages,.

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Product Name, Brand and
LOGO

Product name is INSOGUM..

INSOGUMis combination of two words, which are INSOand GUM. The word INSO
is taken from Insulinand word GUM is taken from Chew Gum . So product name
gives an idea of product type and its features.

INSOGUMis very Easy to remember & Pronounce and it gets very easily on
anyone’s tongue.

A Color combination of Blue and Red is used in product name and logo. It is Easy on
eyes, Elegant as well as energetic.

Logo contains Product name and medical’s + sign in it..

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Product
Packaging:
Packaging of a product is very important part of modern marketing plan. It should not
only
be attractive, easy to use but also safe. Here are some major points about packaging of
INSOGUM, which will be available in form of 10 chew gums bundle primary packing.

Hard plastic primary packing containing 10 chew gums.

Primary packing plastic will be transparent and light blue in shade.

Packing material will be of high quality.

Sun light, Temperature, Humidity resisting packing,.. Enabling high life of

product.

Product Labeling:
As it is a medical product; so Descriptive Labeling is used.
Approach
PRIMARY PackageProduct Name, Logo, Potency of Product, ingredients, MFG
Labeling:
& EXP dates, Batch NO, Company Name, Registration Number.

In SECONDARY Package in addition to all above elements, the number of units

labeling;
in each secondary pack & unit price of each chew gum will be mentioned too.

Dosage guidance pamphlet will be included in packing; it will be both in Hindi and English
language. Moreover, precautions will also be mentioned.

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 Pricing Techniques & Strategies:
Pricing is thought to be most important P of the Marketing Plan. Price should be set which
customer is willing to pay for product. INSOGUM is an innovative product and according to

research and surveys people will be willing to pay prices little bit higher than market prices
of INSOGUM’s rival products.

Company has used market skimming strategy to enter into market and to overcome its initial
costs and to reap benefits of introducing innovative product. That is why company don’t
sees all of the diabetes patients as its target market as for now. Currently the target market
is only limited to remote areas patients and injection fearing patients.

Moreover, cost plus pricing technique is used to cover all costs and charge extra as a profit.
Initially company is not offering much of incentives to its customers. But only in form of
quantity discounts. Quantity discount offer is used as promotional technique and as a
pricing technique to attract customers and to convince them to buy more quantity of product,

especially in bulk quantity.

Customer buying 5 or or more than 5 packets of INSOGUM (which means 50 or 50+ chew
gums) will be offered a special discount of 15% on purchase.

Company would also conduct financial analysis and forecasts, which will help it in
determining its future strategies plan. On of important analysis is Break even analysis.

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Break Even Analysis:

The breakeven analysis show that what income its must generate for specific units and for
specific period to meet it costs.

Break even analysis of company show following points;

Unit Price: 4.70+0.30=5.00 retail price

Unit Variable Cost: 3.00

Unit Fixed Cost: 1.10

Break Even Point: 4.10

Per unit Profit: 4.70 - 4.10= 0.60

Unit variable cost of InsoGum is 300 and unit fixed cost is 110; which makes total unit cost
to be 410. Company sells product forward on a price of 470; which is sold to final consumer
at retail price of 500.

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Promotion Techniques
Electronic MediaElectronic Media TV channels will be used as a
Advertisements:
major tool of promoting the product. Attractive and informative advertisements
of
product will be prepared as it is introductory stage of product.

Brand Ambassador – Reference Personalities: Doctors and Famous personalities

will be used as Brand Ambassador and Reference personalities. This will be done in
order to get confidence of customer for a product which is first of its type in market and
customer might show hesitation in using it.

Message Designing: Message will be argumental in nature and conclusion will be

drawn in message.

Medical Representatives:Medical representatives will be hired and trained and send

to doctors in target markets to convince the doctors on writing the INSOGUM and to
create awareness about product.

The KK will distribute the samples of INSOGUM to doctors; so that

Pharmaceutical
they can be convinced.

The KK will also distribute the samples of INSOGUM by conducting

pharmaceutical
medical checking of diabetes patients in famous clinics and hospitals.
camps
Awareness Creation stage: As it is new product so in start major focus of promotion
will be to create awareness about product.

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Distribution Channels and
Techniques
In initial stages, focus of marketing plan is to keep distribution costs low. Therefore
narrowed indirect distribution channels will be used to distribute products. Moreover
company has decided to go for selective marketing; since the product is new and company
is not in mass marketing stage. Therefore, Company will sell its products to whole sellers,
who will sell products forward to retailers.

Company à Wholesalers à Retailers

--------------------------------------------------Thank
You-----------------------------------------------------

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