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Dentonic

Raheel Bachlani
Rabia
Mujtaba Haider Rizvi
Osama
Hasham Haqqi

ABOUT THE COMPANY

Ala Chemicals was founded in 1963. One of the initial industries


of Pakistan
Pioneer of Oral Care Products
Pioneers of Tooth Powder
Pioneers of the First Animated Advertisement ( Italy made)

Specifications
Production Area 5000-10000 Square Feet
Laboratory with Quality Assurance
Have their own Dental Doctors
Export to Middle East Countries
Reported Sales of about 1 million US$ to 1.5 million US $

Competitors
Medicam
English
Forhans
Aqua Fresh
Colgate

About The Product/Service

SWOT
ANALYSIS

STRENGTHS
Dentonics products with low price and High quality.
Distribution of Dentonic is all over the world.
Best machines and materials available for high efficient
production.
Computerized productions with the best plants available

WEAKNESSES
Loss bearing during natural disasters Giving the distributors a
completely new business with the cancellation of their previous
balances.
No proper feedbacks available.
No proper Advertisements and media campaigns available for
the products.
Absence of some products which are only for export end.

OPPORTUNITIES
Expansion in major cities and areas.
Production of tooth powder with the best available resources.
New product lines such as Tooth pastes and Smokers powders
etc.
The price structure mismatch with the customers demands.
Innovations Like Miswak powder. Used by Miswak users and
they responded very well because the product was according to
their level and taste and work.

THREATS
Globalization Powders are now obsolete. Major of the
generation are now going towards pastes.
Providing their products to NGOs on no profit, No Loss basis
but the NGOs sells those products in the market again.
Hospitals and Hotels taking their hand sanitizers for free but
then they are also selling that in the markets.

OPPORTUNITIE
AND ISSUES
ANALYSIS

Analysis of Opportunities
Use of toothpastes is related to health.
Consumption all over the world.
Flavored toothpastes for kids.
Miswak toothpaste attract more customers.
Mouthwash instead of Toothpaste for old age people.

OBJECTIVE
S

GOAL FORMULATION

PLANNNING PROGRAM

PROBLEMS OR ISSU

NATURE OF PROBLEMS /
ISSUES

CURRENT POLICIES
Image value
Yellow colored bottled tooth powder.
Personnel value Door to door sales.
Service value
Dentonic recommended Sales person and
Doctor in every popular super market of city.
Product value
Economical with good quality.
Core benefits
- Stronger and white teeth. Less Cavity.
Protection against germs.
Augmentation
Free toothbrushes with product.
Packaging
- Primary Packing

Customer Value
Image Value

Customer
Ki Awaz

Ek Blue tube wala toothpase and Yellow bottle


My father use it and I havent seen him using any other
Powder or Paste
Personnel Value
Frequent Management Trainings
Dentonic Sales persons at Naheed/Makro/Chaseup from
9 pm to 5 pm

Customer Value

Customer
Ki Awaz

Product Value
10 Customers were Given a choice of choosing 1 toothpaste
Out of Medicam/Forhans/Dentonic
Guess what Dentonic was selected 9 times
The result was opposite in Dentonic Vs Colgate
Why? :S Dikhne mei acha hai Pakistani Brand hai
Service Value
Money Back Guarantee
Some disruptions in delivering the product

Customer
Ki Awaz

Recommendations

A proper track of stocks should be

today want to know about Dentonic on Television,

maintained.

Radioandothercommunicationchannels.

Stocks

should

not

be

outdated,overstockedandunderstocked

populatedareas.

Alwayscompareyourproductswithothers
to keep track of how Dentonic is
performingwithrespecttoothers.

schemes should be launched in the densely

Online Buying and selling can also


improvetheImageofDentonic

Sales Person should be available till the


closingtimeofsuperstores/wholesalers.

Door to Door sales today cannot cover the


population of Pakistan. So its best that promotion

atcriticalsalespoint.

Advertize yourself as much as possible. People

Aproperfeedbacksystemwhetheronlineoroffline
shouldbelaunched

Proper Sales Person Training Should be carried out


atleastonce/twiceinayear

Support Services

Money back guarantee

Customer Survey & Feedback

Free Dental Checkup Camps

Packaging
Primary Packaging
Shipping Packaging

NEEDS
Lack of avalaibility
Lack of visibility
No advertising efforts
Quality

Positioning
A yellow can
toothpowder!!!!!

Positioning
No Positioning of
toothpastes

Reasons for poor


positioning
Lack of awareness
Lack of availability
Lack of visibility

ACTION
PROGRAMS

Developing Strategies
Telemarketing
Display areas
Billboards
Use of traditional advertisements.
Awareness seminars in hospitals
Free gifts and promotion items on bulk purchase
Requirement of strong retail network

ACTION
PLANS

Brand repositioning.
Customer service regarding dental care.
Protection against Unpleasant smell during Ramzan.

FINANCIAL
PROJECTIONS

Budget Plan

Milestone

CONTROLS

Feedback Mechanism

Control Mechanism

THANKYOU

Customer Cost
Time Cost

Kilometers
10000
9000
8000
7000
6000
5000
4000
3000
2000
1000
0

Kilometers

Competitors
EnergyCost
Psychic

Customer
Ki Awaz

P
o
ga wde
ya
rka

Za
ma
na
Po
ora

i
na
nah
ho

e
e
t
s
r
i
a

a
K
P

e
h
i
ek hog
Na

n
t
r
n
e
ka Kiya
m
e
e
z
i
r ti z
ert uality
e
v
v
d
ra tKiQ
Ad
a
h
e
Y

Y
uc
d
o
Pr

45

MonetoryCost

40
35

EnglishToothPaste
Medicam
Colgate
Dentonic

30
25

Grams

20

Retail Price

15
10
5
0
English

Medicam

Colgate

Dentonic

Closeup

Consumer Buying Behavior

Details
The following data was carried out from 23 people at
Naheed / Chaseup/ Diamond Supermarket/ Makro
Every Socio-Economic Class was asked questions
After competitor/Dentonic related produt questions,
the buying behavior was decided.

Customer Buying Behavior


BuyingBehaviorintoothpastedependsupon:
A. ClassFactor
B. PsychicFactor

High Involvement
Significant Differences
between Brands

Complexbuying
behavior

Few Differences between


Brands

Dissonancereducingbuying
behavior

Low Involvement

Lowe
Not so
and 5
Variety-seekingbuying
Sensitive
percen
behavior
People
middl
Class
Habitual buying
behavior

Sensitive
People
High Involvement

Low Involvement

Significant Differences
between Brands

Complexbuying
behavior

Variety-seeking
buying behavior

Few Differences between


Brands

Dissonancereducingbuying
behavior

Habitualbuying
behavior

Upper
Class

Recommendations

buyingbehavior

Awareness Should be made among

Try to create products for lower class at


low prices (can be of small size) just like
upper class so at least they should know
theproduct

bemadeforvarietyseekingbuyers.

Advertisement can attract more habitual

habitualbuyers

Try to make more innovative products for


sensitiveclass

ForUpperClasstooadvertisementsshould
TakeCareofshelfspace

Make each and every flavor competitors


aremaking.

INDUSTRIAL ANALYSIS

ERA of
Customization
The World is changing day
by day, consumers needs
are changing. There is a
360 shift seen in the
markets; now consumers
decide what and how they
want!!

TOP 10 Toothpastes
1.
2.
3.

Sensodyne Pronamel
Colgate Total advanced whitening
Crest Pro-Health Enamel Shield
Toothpaste
4. Aquafresh
5. Arm & Hammer Advance white
Baking Soda and Peroxide
6. Arm & Hammer advance white
brilliant Sparkle toothpaste
7. Colgate Baking Soda and Peroxide
Whitening Oxygen Bubbles Brisk
Mint Paste
8. Colgate Sensitive Enamel Protect
9. Mentadent Advanced Breath
Freshening
10. Crest Tartar Control Whitening Plus
Scope Cook Peppermint Liquid Gel

Toothpaste Manufacturer
Multinational

National

20%

80%

Dentonic Offerings
Toothpowder
Toothpaste

1. Dentonic powder
2. Dentonic Smokers
3. Dentonic Plus

1. Ultra whitening
Cinnamon
Euclyptus
Peppermint
Lemon
2. Dentonic Miswak
3. Dentonic Flouride
4. Dentonic for Sensitive teeth

Past 4 years
Market Analysis

50
40

30
Growth in volumes of
powder is because of the
20
purchase of the powder
10
% Growth
variants by NGOs and
other charity organizations
0
Help to the flood victims
-10
and to the distributors
-20
loss of Rs. 1.5 Crore in
last four years
Provides products to
NGOs on non-profit terms
and basis

2006-07
2008
2009

Future 4 years

25

Market Analysis

Maintain volume
throughout the years

20
15

201112

10

2013

% Growth
5

The powder volume is


planned to be remain same
for next four years

0
Floride Toothpaste
Toothpaste Total
Dentonic plus powder

The company is also


planning to increase the
overall sales by 20%

Total Market

Competitor -Market Analysis


Colgate-Palmolive is a 34 billion dollar company
Colgate-Palmolive operates in over 90 countries around the world, there
should be no reason to see falling revenue or operating margins for this
company with growing demand of these products
Colgate has seen nearly 11% quarterly revenue growth
Colgate's operating margins stands at over 20.39%

Recommendations
The company is high at CSR; it
should analyze the annual profits
and then set a percentage for such
activities

The company should focus on


creating value rather than
increasing volume

The company should divest few


SKUs of powders if they are not
producing the profits

The company should change its


target markets and positioning and
producing the product at lower
prices for the NGOs and charitable
organization

The company should develop


strategy to beat other local
companies and their preferred
products

With R&D, company should also


focus on promoting the product

MICRO/MACRO
ENVIRONMENT

Macro and Micro Environment


Marketing management is to build healthy
relationship with customer s by creating customer
value and satisfaction.However marketing
managers cannot do this alone.

Major Actors in Microenvironment


With reference to dentonic ,

1.THE COMPANY
2.SUPPLIERS
3.MARKETING INTERMEDIARIES
4.COMPETITORS
5.PUBLICS
6.CUSTOMERS

1.THE COMPANY
In the case of dentonic we have found some drawbacks in
the inter deptt coordination.
The companies that always excel are those in which there
is strong coordination between marketing, sales and
research & development

2. SUPPLIERS
We have observed that shortage or delay tactics from the
suppliers can also provide dint to the customer indirectly and
customer will not buy that product which is not frequently
available in the market
In this case rising prices of raw material have also made a jerk in
supply chain activites and in bigger picture it will decline the sale
volume as well

3.MARKETING INTERMEDIARIES
Majority of us havnt see any media publicity of dentonic from a
long time.This thing reflect either the quality is not up to the
mark or standard or it is a flaw of intermediaries that are not
placing eye catching signboards and media advertisement
Also there is a need to improve distribution network
nationwide .It also share the company burden and give chances
to improvise services nationally and new people some time give
more advantages then the older one.
GOOD ADVERTISING DOES NOT JUST CIRCULATE INFORMATION.
IT PENETRATES THE PUBLIC MIND WITH DESIRES AND BELIEF.
(LEO BURNETT)

4.COMPETITORS
Mainly dentonic company is fighting against few local groups in
which Medicam(Roomi enterprises), , Protect (roomi
enterprises), Neem (tulsi trading) , Forhans (biofar chemical) ,
English , Doctor (Ehsan Harford) ,Macleans ,Mr white are the
leading competitors
While majority of markets are under the acquisition of some
multinationals that are;
Colgate ,Closeup ,Pepsodent ,Sensodyne, Aquafresh.

RELATED EXAMPLES:
According to Mr. Mobeen Ahmed (looking after grocery
department of chaseup)

Out of all the variants dentonic has there are 3 customers per
day for every variant of dentonic

The export quality products kept at chaseup has slow business


then local

Only 20 cartons per variant is bought in a month compared to


other oral care products and stocks are also returned every
month

Dentonic sales ratio is 1 to 5 compared to Colgate


Dentonic sales ratio is 1 to 2 compared to Medicam
Dentonic sales ratio is 1 to 1 compared to English

5.PUBLICS
Is a group that has an actual or potential interest in or impact on
an organizations ability to achieve its objective
FINANCIAL PUBLIC:
Right now company is neither listed in stock exchange due to
less company worth in the existing market nor the company have
some private shares offering to the ordinary public
GOVERNMENT PUBLIC :
The company sale raise to triple because number of Ngos and
other Govs are buying there products due to there low prices in
the time of flood fiasco.

6.CUSTOMERS:
One good thing I have found which is the Dr.Dentonic
availability .You can get easy and usefull tips for your teeth
problems.
Only the less price notion is the factor that compel the customer
towards there products.
Is too ordinary that at first instance person thinks that it was
made by some non professional person

AS WE ALL KNOW THAT FIRST IMPRESSION IS THE LAST


IMPRESSION

MAJOR FORCES IN MACRO ENVIRONMENT


1. DEMOGRAPHIC ENVIRONMENT
Around 10 years back dentonic tooth powder was usually seen at
every home but now due to the changing living standards
(changing lifestyles)
Due to population surplus factor they have lost the
synchronization between supply and demand and fails to the
customer expectation
In Pakistan majority people are young so they do not try to follow
one thing they like change in every aspect (youth envolvement)
This white collared paradigm shift has also make impact directly
on dentonic powder due to which there products are totally
neglected in urban

2.ECONOMIC ENVIRONMENT
These products are available according to the pocket value of
customer in various sizes from 25 mg to 175 mg tooth paste.

Due to less prices number of NGOs and GOVs buy these


products and circulate in the affected areas .

3.NATURAL ENVIRONMENT
One thing need to remember that the company is using items
free from pollutants and the packaging is under the proper
hygenic environment

4. TECHNOLOGICAL
The technology they are using is up to the mark if we compare it
with local manufacturers facilities either in product development,
multi layer packing

5.POLITICAL AND SOCIAL ENVIRONMENT


Agencies in respective to dentistry are taking under table
corruption and ruining all product and quality standards of this
field.It perceived to be that in Pakistan that no company can get
different dental certifications like FDA and etc without it.
Number of taxes are also a hurdle for these local companies

DEFINING VALUE
(SEGMENTATION/TARGET
ING/
POSITIONING)

Segmentation

Recommendatio
ns

Orange Flavored
toothpaste for kids.
Miswak/other flavor in
toothpowder.
Mouth wash for older
people with weaker teeth.

TARGETING

Targeting
Geographical
Country region
Population
Density
Climate
Demographic
Gender
Age
Family size
Income group
Psychographic
Lifestyle
Social Class
Behavioral
Occasion
Loyalty status
Usage
Benefits

All
Pakistan Bangladesh Srilanka
Saudi Arabia
Urban/Rural
Any
All
All except kids
Any
Lower, Middle, upper middle and
high class.

Teenage, Middle agers, Elderly

Rural, Lower, Middle & Upper Class

Daily (once or twice)


High
Heavy
Yes with brush pack

Targeting
Toothpastes for Upper/ Middle Class
Toothpowder for Rural /lower Class
Gels for youth
Smokers toothpowder for smokers
Dentonic Miswak for Upper Class

Recommendatio
ns

Create Awareness
Print and Electronic
media campaigns
Customer Feedback
Sales Promotions.

Positioning

Recommendatio
ns

Clear Tagline in Promotions


Post purchase support
Web Existence
Availability and Visibility of
the product

Creating Value

PRODUCT

Product
Item 1

Product Levels
Core Benefit, Actual Product, Augmentation

Item 2

Individual Product Decision


Packaging, Labeling, Support Service

Item 3

Major Brand Strategy


Line Extension, Brand Extension

Item 4

Product Mix
Product Mix Width, Product Line Length, Consistency

Item 5

Product Life Cycle

Product
Levels

Labeling

Core benefits
Directions to use
Warnings
Ingredients
Contact Information
Price
Expiry Date
Weight
Barcode
Product Information

Brand Strategy
Line Extension
Brand Extension

Low Price toothpaste


New flavor for elite class

Mouth washes

Tooth brushes

Product Mix
Product - Mix Width
Toothpaste

Pro
du
ct Lin
e
Le
ngt
h

Ultra whitening Gel (70g/170g)


Refreshing Lemon Mint
Refreshing Eucalyptus Mint
Refreshing Peppermint
Refreshing Cinnamon

Toothpowder
For Healthy Teeth & Gums
(180g/90g/45g)
Plain
With Mouth Wash

Faster Stain Remover (55g)


For Smokers

Flouride Toothpaste
(200g/125g/75g/50g/25g)
Calcium + Triclosan
For sensitive teeth

Miswak Al Assil (170g)

For Sensitive teeth

Product Life Cycle


Decline stage
Sales volume is very low
Minimum profit
Trying to move the brand
back to growth stage, by
catering the needs of
different segments.
Their coming up plans are
introducing new product
categories and also new
variants
of
existing
products.

Section Header

PRICE

Cost based
pricing
Formulation
Packaging
Storage
Distribution
Utilities
Labor

Toothpowder

Product

Dentonic Powder

Price ranges Between


PKR 10 to 40

Dentonic Powder
with Mouthwash

Low production cost


Low cost of material and
components
Less demand

Dentonic Smokers
Toothpowder
Dentonic powder
for Senisitive teeth

SKU

Price

SKU

Price

SKU

Price

(g)

(PKR)

(g)

(PKR)

(g)

(PKR)

45

12

90

20

180

35

45

12

90

20

180

35

55

90

55

90

Toothpaste

Product

DentonicSensitive

Price ranges Between


PKR 60 to 150
Good quality plastic
squeezable tubes

DentonicUltrawhitening(Eucalyptus,
Lemon,Refreshingpeppermint,Refreshing
cinnamon)
DentonicOriginal

For export to Middle East


DentonicMiswak
and KSA

SKUs (g)

75
70,140&
170
125&
200
170

Product mix
Strategy
Product Line Pricing rather
than Single variant.
The pricing is based on the
cost differences between the
products and customer
evaluations of different
features
The customer can get the
Dentonic product for as low as
PKR 10 to as high as PKR 150
The ranges provide an edge
to the Dentonic for catering
more market segments

Response to Price
Change

As a consumer product, it
cannot change prices
frequently
Change in price is not seen
due to change in consumer
product
Change in price can divert
customer

Recommendations
Value based pricing; the company should
go for this rather than cost based pricing
because the promotional activities are almost
non existent in the company and only those
customers are buying it that has some value
in their minds for the Dentonic Brand.
Innovations and improvement in the
manufacturing process must be brought in to
decrease the overall cost of the product e.g.
Automation of packaging operation.
Price adjustment strategies must be offered
to the customers e.g. discounts to increase
sales of the product and attract more
customers for trial and then usage.

Other offers like providing free


complementary product with toothpaste
must be introduced.
Innovation of the unit pack of powders
which would ease the use of Dentonic
powder and increase the sales and will
attract more customers. This can be done
by offering a finger tip brush with
powder inside it with unit consumption
pack in the form of blisters and that can
be used during travelling as well. This
will not only innovate the Dentonic
powders but will also be more
consumed as very rarely such products
are found in Pakistan and foreign
markets.

Recommendations
Targeting more segments; as Dentonic
offers many toothpastes with good
packaging for foreign, these products can
be offered to many segments within
country to increase the overall sales of the
products
Dentonic was the first to launch the
Sensitive Toothpaste but Colgate won
the game by extensive promotional
activities and creating values in the eyes
of customer; The company should invest
more in marketing activities to create
value in the eyes of customer parallel
with the Research and Development

Promotional pricing; this should be


done atleast once in a year to have peak
sales and more customers trying
Dentonic. This could be done on some
special event or can be done for specific
segments like for children or senior
citizen. This can be carried out by going
to schools and organizing seminars and
providing coupons to buy the Dentonic
product from any retailer with specified
discount. This can also be done at malls
to attract people of every age, the most
potential segment is Housewives
because mostly they make the decision
for such consumable items. Targeting
them and the children will definitely
increase the sales

PLACE

Place
Item 1

Distribution Network
Local Market, International Market

Item 2

Distribution Channels

Item 3

Recommendations

Distribution Network
Local Market
International Market
Across various cities of Pak
Small no. of distributors about
250 only
Sister company named Royal
Distribution Line, for KHI only
Promotional distribution till
5yrs

Small distributors in :

Bangladesh

Srilanka

Saudi Arabia

Distribution
Channels

Retailer
Whole Seller
Hyper Markets

Weakness
Recommendations
Weak distribution
Unable to meet even the low
demand
Lack of availability
E.g. Macro

Efficient distribution

Ensure availability

Communicating Value

BCG MATRIX
On the whole company is in the question mark figure where market growth rate is very high and the
competition is very tough and the company market share is not so in numbers.
Note: Dentonic was the first Pakistani PDA certified company who introduce sensitive tooth paste.
As per Dentonic personnel Colgate sensitive was launch after Dentonic sensitive but due to Mass
advertising people think them as a patrons.

QUESTION MARKS
Dentonic flavour tooth paste ( Cinamin , Eucliptus , Lemon ,
peppermint ) , Miswak al assil and Sensitive tooth paste
STARS

No star product but till 2003 dentonic toothpowder

DOGS

Ultra whitening paste, and smookers toothpowder

CASH COWS
Dentonic tooth paste ,toothpowder

COMMUNICATING VALUES

RECOMMENDATIONS

Company have to follow strategy of telemarketing which


is the most cheapest and easy way to get new consumers
Small display places have to be introduced at pocket
points in some famous outlets all over Pakistan
Brand uniqueness also need to be shown off by the help
of Bilboards , Moving Sign Panles / holdings , Channels.
Traditional old advertisement have to again play on media ,So
that the people not forget the company and there useful
products.
Awareness seminars have to organize at different hospitals so
that the doctors will easily understand your product affectiveness
They also need to strengthen product line e.g m.wash,brush