Strategic Marketing
Strategic Marketing
Strategic Marketing
2015
MKT460.7
Marketing Plan on
Nabila Tabassum
Rumjhum Fattah
Sameera
Submitted
Murad to:
Mr. Varqa Shamsi Bahar
North South University
Date of submission: 27th November,2015
LETTER OF TRANSMITTAL
27TH November, 2015
To
Mr. Varqa Shamsi Bahar
Lecturer
School of Business and Economics
North South University,
Bashundhara, Dhaka.
Dear Sir,
We are pleased to submit the marketing plan on Hashi tooth powder as a part of
requirement for our MKT 460 course.
In preparing this marketing plan, we have tried our level best to include all the relevant
information and explanations to make the report informative and comprehensive.
It was a very enriching experience for us to prepare this marketing plan. We will be
available for any clarification, if required. Thank you for giving us this wonderful
opportunity to work on this plan.
Sincerely yours,
1311271 630
1311006 630
1310166630
1311070630
1230058630
1230896030
Table of Contents
Topic
01
Page no.
Customer Analysis
Competitor Analysis
02
STP Analysis
03
25
Product Strategy
Pricing Strategy
34
Channel Strategy
Communication Strategy
04
Conclusion
49
05
Bibliography
50
Acknowledgements
We take this opportunity to express our profound gratitude and deep regards to our guide Varqa
Shamsi Bahar for his exemplary guidance, monitoring and constant encouragement throughout the
course of this group project work. The blessing, help and guidance given by him time to time shall
carry us a long way in the journey of life on which we are about to embark. We are obliged to
survey respondents, for the valuable information and time provided by them. We are grateful for
their cooperation during the period of our research. We are also very obliged to those who have
been a part of this research starting from our driver to our friends and everyone who took the
trouble to get our assignment done. Lastly, we thank almighty, our parents for their support and
encouragement, without which this project would not be possible.
Executive Summary
Hashi toothpowder is a new unique, innovative brand that will be established in the year 2015. The
product concept was influenced by the idea of delivering a brand which is good in quality and
quantity, for a reasonable price for the socio economic class D & E of the rural Bangladeshi people.
The benefits that Hashi tooth powder will provide its customers are It will whiten the teeth of
the users and prevent toothache at the same time.
Our primary communication objective is to create our brand image in the minds of the consumers.
MACRO-ENVIRONMENT ANALYSIS
1) Demographic Environment:
Demography is the study of human population. Hence, any statistics related to human or human
population is demographic environment.. Demographic segmentation considers the number of
people living in a particular area at a particular time, the climate and the size of the population as
well. Humans make up consumer markets. Some of the parameters to consider under
demographic environment are:
1. Population age mix: Population Age mix involves statistics related to the age of a given
population. In other words, it is the study of the age of a given population in a country.
Bangladesh is a developing country with total population of 163,654,860 (July 2013 est.) and
with population growth rate 1.59%. The average of the population is 23.9 years (male 23.4 years
female 24.4 years). (Index Mundi, 2013)
The country's population is almost evenly distributed throughout its 64 districts except for the
three Hill Tracts districts which are rather sparsely inhabited. Regionally, the eastern districts
have a slightly higher density than the western ones. On average, a district has a population of
about 1.8 million, a thana 230,000, a union 25,000 and a village 2,000. There are 490 thanas,
4,451 unions and 59,990 villages. The number of households is about 20 million. On average, a
household consists of 5.6 persons. There are 4 metropolitan cities and 119 municipalities in the
country. The level of urbanization is low at 20%. This leaves about 80% of the country's total
population to live in the rural areas which primarily depend on a poorly developed agriculture for
livelihood. The capital city of Dhaka has an estimated population of 8.58 million. The density of
population per square kilometer is about 800. (Mitra, 2011)
Percentage
Male
Female
0-14 years
33%
27,393,912
26,601,199
15-24
18.8%
14,337,930
16,377,785
25-54
37.6%
29,091,046
55-64
5.7%
4,775,062
4,625,192
4.9%
32,455,670
3,918,341
4,078,723
Source: CIA World Factbook
28.4% of total population lives in urban area and 71.6% population lives in rural area. Life
expectancy at birth is estimated to be 70.36 years for total population and for male 68.48 years,
for female 72.31 years.
2. Educational groups: Educational group is the understanding of the education level of a given
population.
Literacy Rate
Percentage
Male
62%
Female
53.4%
The primary school enrollment rate has risen to 86% and the rate for secondary school
enrollment to 33%. To intensify promotion of compulsory primary education, the food-for
education program has been extended to over 16,000 schools. Most consumers of socio
economic class D and E are not much educated. They have either completed high school or
totally uneducated. Most of our target consumers belong to socio economic class D and E; hence
they are not much educated. Our company should persuade them not in creative communications
but simple communication methods explaining the benefits of our toothpaste.
3. Ethnic markets: Ethnic Background of our target market is that they are Bangladeshi.
Population Percentage
Socio-economic
Income
2.42%
40,000 or more
13.28%
10000-30000
15.67%
6000-20000
30.29%
5,000-15000
38.33%
3000-10,000
Class A
Socio-economic
Class B
Socio-economic
Class C
Socio-economic
Class D
Socio-economic
Class E
5. Religion market: It is the study of religious background of people of specific population. Our
target consumers are mainly Muslims. However, there are also Hindus, Buddhists, and Christians
too. So it is very important to provide this huge Muslim consumer segment with Halal product.
Religion percentage
100%
90%
80%
70%
60%
50%
Religion percentage
40%
30%
20%
10%
0%
Muslim
Hinduism
Buddhism
Chistianity
Majority of Bangladeshis are Bengali, constituting 98% of the population, other 2% includes
tribal groups, non-Bengali Muslims.
2) Economic Environment:
The Economy of Bangladesh has been growing at a rate of approximately 6% per year. Although
half of the Bangladeshi population is employed in the agricultural sector, Bangladesh economy
relies on its garments exports, which is the backbone of Bangladeshi Industrial Sector (CIA
World Factbook). In addition, a lot of countries are outsourcing their work to Bangladesh, thus
increasing employment. People are setting up new and innovative businesses and playing an
important role in technological advancement. Looking into the income distribution in
Bangladesh, we can see that, inequality between social classes is increasing everyday. According
to an article posted in Bangladesh Economy Association, almost half of the total income belongs
to the upper class (about 51%) and it is rising at a rate of 0.46% annually. The middle class
contributes approximately 33% of the total income decreasing at a rate 0.5% annually. The lower
class contributes about 16% of the total income decreasing at a rate of 0.7% annually (Khan,
2014). After analyzing these values, we can assume that Bangladesh falls under Category (IV) of
income distribution pattern, that is, low medium high incomes. The expenditure distribution is
similar to the income distribution. The upper classs expenditure is increasing at the rate 0.51%
annually and the lower classs expenditure is decreasing at a rate of approximately 0.5%
annually (Khan, 2014). The target audience for our product falls under the section D and E
consumers mentioned in the slides. It consists of 68% of our total population with an average
persons monthly income ranging from BDT 3,000 to BDT 15,000.
Although most of the population of Bangladesh falls under the lower class category, the upper
class are constantly being aggressive in their business methods and getting wealthier everyday.
They are constantly demanding high quality products and expensive life-style thus making
Bangladesh one of the top Industrializing Economies.
3) Natural Environment:
Bangladesh is a low laying country in South Asia. Natural gas, arable land, timber and pure surface
water are the main natural resources of Bangladesh. But Bangladesh has a high rate of poverty
because of not using these resources efficiently. These resources are nonrenewable. So by
destroying, polluting and using these resources, the rate of scarcity of resources is getting high. As
a result prices of raw materials are increasing. Population of Bangladesh is also high comparing to
the land it has. It is one of the reasons of pollutions in Bangladesh. Unplanned industries are also
responsible for polluting water and air. Besides, deforestation and over using of ground water is
responsible for extraction of arsenic which has negative effect on public health. Sometimes floods,
tornadoes and cyclones etc. are responsible for destroying natural resources.
For practicing proper corporate environmentalism United Nation Development Program has given
Bangladesh three Sustainable Development Goal which are related to environment. Economic
growth should be guided by sustainable development principles, where social and ecological
objectives of development must take a center position in building a socially inclusive,
environmentally sustainable and democratically vibrant society. Environmental governance must
play a key role in charting out the development path (Rahman, 2015). Many companies in
Bangladesh are trying to come up with a good corporate environment plans. Grameenphone
launched its environmental and climate change campaign which persuades its consumers to be
environment friendly. British American Tobacco is doing really good in this sector. They are doing
proactive activities. To ensure the farmers success in all aspects of farming they have undertaken
programs to inform farmers about various environmentally friendly sustainable agriculture
techniques, and developed skills training programs for their application. Their initiatives include
Green Manuring with Dhaincha (Sesbaniaaculeata) - an effective approach in enriching soil health
and fertility. Dhaincha is also promoted as alternate fuel in leaf growing areas. (Sustainable
agriculture, 2015). Besides, Many Banks in Bangladesh are practicing green banking.
4) Technological Environment:
73 percent of Bangladeshs rural households use mobile phones. Chittagong have the highest
number of users whereas Rangpur the lowest. 81.6% of households in rural areas of Chittagong
have functioning mobile phones, followed by Khulna at 77.2% and Rajshahi at 74.1%. Sylhet,
Barisal and Dhaka have above 70% of rural families using mobile, while Rangpur has 64.3%, the
lowest. There are almost sixty eight thousands villages in Bangladesh and the worst part is only
42% of the rural population currently has access to electricity in Bangladesh, leaving about 13
million rural households without electricity. (Christine E. Kimes, 2014).About 2 million remote
households and rural shops have been provided with solar home systems since 2002. 50,000 solar
home systems are being installed every month. 32% people in rural areas use Television. However,
radio still commands large audiences in the rural areas, where 73% of Bangladeshis live. The 2011
Nielsen Survey indicated that Bangladeshis who still listen to radio are increasingly tuning in on
their mobile phones rather than a traditional radio set because they cannot afford a
television(Media and Telecoms Landscape Guide). So, Radio will be an effective communication
channel to reach these audience.
5) Political Environment:
Almost all the rural areas in Bangladesh have a political head locally called Chairman. He uses
political powers to take lawful decisions in these areas. These chairmans are mostly corrupted and
10
abuse their power a lot. But they have the back of the majority of the people in these areas even
after theyre treated wrongfully because he has political power. Police and Ansar are the law
enforcement agents in these areas. Even majority of these people are corrupted aswell. Villagers
normally do not get justice. The local court called Shalish consists of most powerful people in
the village. Majority of them are muslim, so the they take decisions according the laws of Islam.
But then again, even these people are mostly biased as we often see in newspapers such as beating
up women because of getting raped and etc. Yet, the people in the village obey them as they feel
it is the law of their religion.
6) Socio Cultural Environment:
Culture is a collection of shared values and beliefs that are reflected as acceptable
behaviour by a specific group of people. It comprises of two thingsMuslim dominate the majority of the population of the rural areas in Bangladesh. So, the views of
religions play a big role behind the core beliefs of rural people in Bangladesh. They rely on using
100% halal products, eating halal foods, following the rules of religion, respecting the elder people,
following the Islamic rules for banking, celebrating the religious festivals with new clothes, . So,
the core beliefs play a great role in their consumption process. Some secondary beliefs are also
there like, girls should do hijab, they should be married off early, boys need to be able to earn
money after completing SSC or even before that.But beliefs are changing slowly but surely .Most
of the rural men wear lungi, genji, shirt and women wear salwaar kameez and sharee..They also
like to enjoy jatra shows. Agriculture is their main occupation.
MICRO-ENVIRONMENT ANALYSIS
1) Customer Analysis:
Need: Hashi toothpowder will help its customer to keep their teeth white People belongs to socio
economic class D & E. According to a survey it has been found that almost half of the adults
forget to brush their teeth. (parrie, 2015) When it comes to Bangladesh the percentage even go
high in the rural area. Most of the people in rural area use their finger to clean their teeth. Hashi
11
toothpowder has got natural ingredients which will clean their teeth and will reduce the chance
of having toothache as well.
People belongs to socio economic class D & E in the rural area have a habit of smoking and
chewing betel leaf. This results stains in teeth and sometime create pain for not taking care of
their teeth. In this case Hashi tooth powder will keep their teeth clean and will consider the pain
also.
To understand the need, buying behavior, their consumption of oral products better, and to find
out the demand of the product, how much the targeted customers are willing to pay; a primary
research has been done.
Primary Data:
These questions were asked to people who belong to the social classes of SEC D and SEC E. And
the sample size was 40.
12
toothpaste
neemstick, burn ash, coal,etc
55
tooth powder
35
2. how much money do you spend for oral care products generally?
23% people said they spend generally 10-20 for oral care product to care for their teeth. Majority
of the people who spend 21-30bdt for oral care product are 57 %. However 15% people dont
bother to spend 31-40bdt for their toothpowder or toothpaste. Only 5% consumers said they
spend around 41-50bdt and 3% people who care about their teeth and aware of its sensitiveness
13
10-20 bdt
21-30 bdt
31-40bdt
41-5-bdt
above 50 bdt
57%
14
Column1
23%
whitening clean teeth
fresh breath
25%
69%
strong teeth
reduce toothache
17%
15
once in a day
68%
twice in a day
once in two days
1.2
depends on rembering about
brushing
19%
3%
16
preferred brand
30%
38%
magic
pepsodent
tibet
local brands
4%
28%
Analysis: teeth pain is common in people living in rural area because of toot much smoking and
chewing betel leafs and not cleaning teeth afterwards. 40% of people consult local kobiraz all the
time and if it doesnt work they go for local doctors available in the pharmacy store. 35% people
gurgle with warm salt water for initial treatment to get relief from pain.25% people ignore the
17
pain and sometime they dont have enough money to consult a doctor or go for a treatment.
0
25%
40%
35%
7. How much money you will pay for a tooth powder (made of natural ingredients) can
whitening your teeth and reduce the chances of having toothache?
Analysis: 25% people said they will spend only 10-20 bdt for such oral care product.43% people
said they will be able to pay 21-30 bdt for product having such attribute that meets their need.
Another 25% people said they can 31-40 bdt.only 2% people said they wont be having any
problem to spend 41-50 bdt. However 5% people said they will above 50 tk only if the product
can really reduce teeth pain.
18
product. In this case, the young members of the family might be the influencers as they are more
interested in TV or RDC commercials. The wife or the mother of the family can also be the
influencer as she stays at home mostly and gets more time to watch TV or to listen to radio and
can suggest male members to buy that product.
Decider: who consider the opinion of influencer. In this father or elder male member of the family
decides which product to buy.
The purchaser: The individual who actually pay to purchases the product. He or she is the
individual that hands over the cash in exchange for the benefits. In this case the father or the any
male members of the family maybe the purchaser as they go out more often in comparison to the
female members.
The user/consumer: is the individual who consumes the product. Here, the product is Hashi tooth
powder. So, in this case, everyone in the family is likely to be the user.
19
Ans. WHAT are the benefits that the customers are looking for in a tooth powder. In this case, the
people in the rural area they buy the brands which are affordable as far as price is concerned. The
brands that they prefer are magic tooth powder, pepsodent toothpowder, biddut kalo neemer
majon and other local cheap brands.
WHEN do they use the product?
Ans. They use toothpowder when they want to clean their teeth. Basically people brush their teeth
or use toothpowder in the morning and after dinner in the night.
WHY do they buy the product?
Ans. It signifies what unfulfilled needs do they possess. People use toothpowder to clean their
teeth and to take a good care of their teeth. In this case, they will use Hashi toothpowder to get
whitening teeth and to reduce the chances of having toothache as well.
2) Competitor Analysis
The oral care industry in Bangladesh has very good growth rate. This oral care market industry is
proving to be very promising and quite competitive. In this highly competitive market it is very
20
important to know who are our competitors, how they are doing businesses and what will be our
competitors that we need to outperform. For assessing our competitors we need to asses three
steps.
i) Identifying Competitors
First of all identifying competitors is very important because it enable us to make strategies that
who are the direct threats for us. Another thing is we need to identify our indirect competitors.
Sometimes Indirect competitors can cause serious harm in business.
a) Direct Competitors
Direct competitors are those brands who belong to same category and satisfy same needs. In our
case we have both local and foreign brands as our direct competitors. Pepsodent, Magic, Tibet,
Biddut Kalo Nimer Majon and other brands which are produced and used in specific local areas
like Sonia toothpowder, OK toothpowder are our direct competitors. Pepsodent tooth powder is
very high in quality but comparing to magic, their price is quite high. But in rural areas where
people are very price sensitive Magic is more popular than pepsodent. Magic is proving good
quality toothpowder with a low price. Then, if we consider other local brands their quality is not
up to the mark. But comparing to Magic, Pepsodent has more distributor across the country and
their market share is quite high. These things make Pepsodent market leader.
21
b) Indirect Competitors
Indirect competitors are those who selling different products but satisfying same customer needs.
In our case all toothpaste brands is our indirect competitors. As we are targeting social class D
and E, so we need to look on Magic Total Clean, White Plus these two toothpaste brands because
these two are very popular among social class D and E.
c) Strategic Group:
Strategic group is our closest rivals in the market. Because they follow the similar strategy like
Hashi and targeted the same customer group. As we are launching teeth whitening toothpowder
with the benefit of toothache reduction for the rural area people, we will be trying to meet their
needs in lowest cost possible way. Both the toothpowder and toothpaste brands are our strategic
group as they are targeting the same customer needs as Hashi and using the same marketing
strategy. Toothpowder brands like Magic charge 18tk for their 50gm bottle and 30tk for their
100gm bottle. But in counter of Magic and Pepsodent we will charge 18tk for 55gm toothpowder
and 30tk for 100gm toothpowder. We are giving 5gm extra to attract our consumers and grab
market share.
22
goal would be capturing the market share and by trying to be in the market leading position. So
Hashi will be a market challenger for our competitors. As a market challenger it is very important
for Hashi to owning the category in the consumers mindset and for this, position defense strategy
will be used. We will convince our customers that Hashi can make their teeth whiter than any other
tooth powder brands. As it is completely new product idea for the rural area people we will have
a competitive edge. Another thing is we will also use Side attack strategy. It means we will find
out competitors weakness and attack on that point. A big weakness of our competitors is they are
serving quite good to the social class D but they are not serving properly to social class E. So we
will try our best to serve social class E as well as D.
b) Strength of the Competitors:
1. Products like Pepsodent and Magic have strong Brand name and equity. Besides the local
brands like Sonia and Ok also have a strong market in the rural area.
2. They possess good financial resources. So they can counter our plan and can easily reduce or
give incentives to the consumers if situation demands.
3. These companies are doing business for a long time. So they possess proper understandings of
the market.
23
by natural ingredients as well. We will not charge extra money for this benefit. No brands in
Bangladesh toothpowder market is focusing on prevention of toothache.
Hence most of the competitors target social class D and E, some people in rural area who are
belonging to social class E still do not use any kinds of oral care product. Our competitors fail to
serve efficiently to Social class E.
2) Threats:
1. Local Brands like Sonia Toothpowder, Ok etc. are very popular in their area. Besides, they are
proving toothpowder at a very low price. It is very tough to beat them in terms of pricing.
2. It is very tough educate our rural customers and change their belief. They often use coal, mud,
root of the trees to clean their teeth. They often ignore health issues.
24
BASES
OF CHARACTERISTICS
SEGMENTATION
Geographic
Urban Area
Rural Area
Segmentation
Demographic
Age:
Segmentation
1-12
13-20
21-30
31-40
41-50
50+
Gender:
Male
Female
Income:
3,000-
11,000-
16,000-
31,000-
10,000
15,000
30,000
40,000
25
40,000+
Occupation:
holder
puller
rural
workers
Socio-Economic Class:
Sec A
Psychographic
Sec B
Sec C
Sec D
Sec E
Lifestyle:
Segmentation
Workaholic Healthy
Economic Trendy
Rural
Personality:
Self
confidence
Behavioral
User Status-
Segmentation
Ex-user
Current-user
26
Non-user
Usage Rate-
Light user
Medium user
Heavy user
Benefit
Segmentation
White teeth
Toothache
solution
27
Economic
Fresh Breath
BASES OF
SEGMENTATION
CHARACTERISTICS
Geographic
Urban Area
Rural Area
Segmentation
Demographic
Age:
Segmentation
1-13
14-20
21-30
31-40
41-50
50+
Gender:
Male
Female
Income:
3,000-
11,000-
16,000-
31,000-
10,000
15,000
30,000
40,000
28
40,000+
Occupation:
holder
pullers
rural
workers
Socio-Economic Class:
Sec A
Sec B
Sec C
Sec D
Sec E
Psychographic
Segmentation
Lifestyle:
Economic Trendy
Workaholic Healthy
Rural
Personality:
self
confidence
29
Behavioral
Segmentation
User Status-
Ex-user
Current-user
Non-user
Medium user
Heavy user
Usage Rate-
Light user
Benefit
Segmentation
White teeth
Toothache
Economic
Fresh breath
solution
3) Brand Positioning:
i) Point of difference (POD):
Whitens teeth: Hashi will whiten the teeth of its users better than any other competitors
in the market.
Prevent toothache: Hashi will not only provide whiter teeth, it will also reduce the
chance of toothache as well as prevent toothache of the consumers.
Hashi toothpowder will help the targeted consumers to prevent toothache and have white teeth
at the same time. The consumers of SEC D and E do not have the luxury to go to dentists every
time they have toothache. Hashi tooth powder will reduce the chances of toothaches in the future
and also prevent toothaches of those who have it already. These group of consumers are very price
30
sensitive. So, Hashi will not only serve the users with white teeth but also help reduce the cost of
dentists for them. Our POD associations will possess these three characteristics -
- Desirability (customers perspective):Hashi will whiten the teeth and reduce the chance of
toothache of the consumers along with treating toothaches. As it comes with a very reasonable
price, the POD is desirable to the consumers.
- Deliverability (companys perspective): The point of difference is deliverable because the
company has enough internal resources and expertise for the production of Hashi tooth powder
to effectively and efficiently serve the consumers.
- Differentiated (competitors): No other competitors in the market provide white teeth and
toothache solution like Hashi does for these groups of consumers (SEC D and E). Thus it is
differentiated from the competitors products. v
ii) Point of Parity (POP):
-
31
Product quality: Hashi tooth powder has the ability to effectively and efficiently address
the need of the consumers as it provides whiter teeth along with toothache prevention.
Product attributes: Hashi has natural ingredients such as salt, tea tree oil, cinnamon and
honey which relives the user from toothache and also lessens the chance of it in the future.
Important: our POD is vital because our product gives various benefits such as
whitening teeth and preventing toothache. It contains natural ingredients that will
provide its consumers with less chance of toothache in the future.
Superior: our product is superior than our competitors as no other competitors provide
white teeth with preventing toothache.
Communicable: the product strategies are communicable. We shall use our IMC
campaign to interact with the target customers about the product's attributes.
Affordable: Hashi is affordable as customers are getting various unique benefits that
our competitors do not offer and that too at a reasonable price.
v) Value proposition:
- Same for the less:Hashi will use same for the less value proposition. The same for less value
proposition involves providing good quality products but at a less price. We chose this proposition
as it provides a lot of attributes than its competitors (indirect) at less price. The competitors charge
32
18-20tk for 50mg while Hashi will charge 17tk for 55mg providing more benefits to the consumers
effectively and efficiently.
vi) Brand mantra:
Brand mantra means giving a brand a mission statement, stating why an organization exists. It is
regarded as the heart and soul of the brand. Our brand mantra will beGood quality toothpowder, Socio Economic classD and E in rural areas of Bangladesh,
Whitening teeth and preventing toothache
The components of our brand mantra-
Brand function (what): Hashis nature is Oral care. Hashis provided benefit is
whitening teeth and removing toothache.
Descriptive modifier (whom): Hashi is providing the benefit to people in the rural area
who belong to socio-economic class D and E
Emotional modifier (how): Hashi will minimize the chances of toothache and remove
toothache by using natural ingredients such as salt, tea tree oil, cinnamon and honey.
Emotional Modifier
Descriptive modifier
Brand Function
Works as teeth whiteners and Rural area of socio-economic Provides oral care
toothache preventers.
class D and E
33
harmed.
iv) Augmented product level- it is the additional benefit that a company provides to the consumer.
Here hashi tooth powder will reduce the chances of having toothache in future if they use this
regularly.
- also Cleaning of teeth, Fresh breath, Maintaining healthy gums.
v) Potential product level: It refers to all the benefits or services that a company wants to provide
in the future. It also includes all the possible transformations or augmentations that a product or an
offering may undergo in the future.
-more attractive container, certified by doctor, superior quality, meets multiple needs of
consumer
Durability: This refers to the expected economic life of a product. Products can either be
durable or non-durable.
i) Non-durable: The product that is being launched for the socio economic class section D
& E of Bangladeshi people is 55gm and 110gm tooth powder. It will be finished after few
34
usage. As the financial risk is low and dont have to convince customer a lot. It is
categorized as non-durable product. Depending on usage 50gm tooth powder can be stored
for 10 -15 days in family. 100gm is for around a month usage tooth powder for a family.
ii) Consumer goods: They can be further classified into convenience goods, shopping goods,
specialty goods and unsought goods. Here our brands Hashi tooth powder is a convenience
goods. Both the 50gm and 100gm toothpowder are frequently buying non-durable
products. For Tooth powder products, the consumers are most likely to possess a habitual
buying behavior. So, basically it is kind of a product for which the customer involvement
is low and there are only few differences among the available brands.
Brand Development Strategy: This is utilized when a company launches a new product.
The company needs to give a brand name to this new product so that it may have a brand
identity and the consumers will become aware of the new product. Among the different
types of brand development strategy which are Line extensions, Brand extensions, Multibrands, New brands and Co-branding; we are going to choose New brand strategy
i) New brand strategy for Hashi tooth powder: This strategy will be followed to launch the
product. It is a new product under a new category with a new brand name. A lot of time, effort and
money will be invested in promotions.
ii) We will not be using ingredient branding. As our target consumer lives in the rural area we will
use high promotion to set in our positioning in our customers mind. People belonging to socio
economic class D and E in the rural area are not aware of brand value. They want something
which will only clean their teeth and as a result we will be using the same message to
communicate with our target customer to set the brand name in their brand.
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Labeling:
Our packaging is done in such way that in can be easily stored in home. It is easy to use and the
cap is tight enough so that the product will remain good inside for use. Labeling provides the
information about the product. As our product is a non-durable and the target market is not that
educated so we tried to keep it simple and provide the basic information about the attribute of
Hashi tooth powder.
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Packaging:
Pricing Strategy:
Pricing is one of the most important factors in starting up a new business. The initial price set for
the product determines its chances of making an impact on the market. Hence, it is essential for a
company to implement the right pricing strategy.
Pricing Objective:
The Pricing Objective of our product is to make an impact on the market and gain a
significant amount of market share in the economy. As our target consumers belong to the lower
class people of Bangladesh, we need to keep our price very low. Lower prices will lead to higher
sales, and higher sales will in turn lead to lower production costs and higher profits. If the
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consumers are getting good quality product at a lower price than its competitors, more and more
people will shift to our product, hence increasing the market share.
Price of Product:
When setting the price of a product, a business needs to analyze their competitors pricing.
Looking into competitors of our product, the biggest competitor of our product is Magic. Their
Magic tooth powder has the maximum market share and their products market price is
30tk(100gm) and 18tk(50gm). Hence we aim to provide the 100gm bottle at a market price of 28
tk with a trade price of 26 tk and 55gm bottle at a market price of 17 tk with a trade price of 16 tk.
Pricing Method:
As our target consumers belong to the bottom of the income pyramid and consists of 68%
of the total population, the most important thing for our business is to capture a good amount of
market share in the economy. Hence, Penetration-Pricing strategy will be used as a pricing method
for our product. This method involves the pricing to be significantly lower than the competitors
price in order to achieve market share.
Since the target consumers for our product falls under the section D and E consumers, their
income is very low. Hence a 1tk/2tk difference in price will make a significant impact on the
consumers minds causing them to be more inclined towards our product. Once our product is out
in the market with sufficient amount of market share, the price can be increased in order to
maximize profits.
Promotional Pricing:
Promotional pricing is also a very important factor when introducing a new product into
the market. This can be divided into 2 segments: Promotional Pricing for Retailers and Promotional
Pricing for consumers.
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Promotional Pricing for Retailers: The business needs to lure in retailers to buy their products to
introduce them to the customers. Along with the normal marketing strategies, the retailers also
play an important role in marketing the product because they have direct communication with the
consumers. If the retailers are given an incentive, they will be more inclined to sell our product
than other competitors products. So we decided to introduce a special system for the retailers: If
the retailers are able to meet the sales requirements of the month set by the company, the retailers
will be given a stipend which is 5% of the their sales of the month. For example, the company sets
the goal to be 50 bottles/month. If the retailers are able to meet this goal and sell more than 50
bottles they will get a cash rebate of 5% of their total sales. This will push the retailers to sell our
product more than other products.
Promotional Pricing for Consumers: It is also important for a business to provide promotional
pricing to the customers so that they are more inclined to buy their products. Therefore we have
decided to give an instant cash rebate of 5 tk when they buy two 100mg bottles from the stores.
We will also provide the customers with 1 tk-off-discount coupons whenever they buy a
55mg bottle and 2 tk-off-discount coupons whenever they buy a 100mg bottle. In this way, people
will be more encouraged to continue using our product and refer our product to their family and
friends. This will help increase our sales and help us achieve the desired market share in the
economy.
Channel Strategy:
Marketing channels comprises of marketing intermediaries who are sets of businesses present
between the manufacturer and the consumer. It is because of these intermediaries, the product
passes through from the manufacturers hands into the hands of the consumer so that the consumers
can actually purchase the product and consume the product.
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Indirect Channel:
We will be utilizing an indirect channel to deliver their product into the hands of the final
consumers. As the target market of Hashi is people belonging to socio economic class D and E, if
the brand uses direct channel than it would be not possible to keep the price down and it will also
be very difficult to reach the consumers thoroughly depending on direct channel method.
The brand will be using two level channels which contain two marketing intermediaries such as a
wholesaler and retailer. The manufacturer of Hashi will sell the product to the wholesalers who
will in-turn sell it to retails shops, grocery stores, etc. The retailers will then finally sell it to the
consumers at a profit.
We will use both push and pull strategy to attract the consumers. During off peak hours, We will
utilize pull strategy by coming up with IMC campaign to promote Hashi to consumers, providing
information about Hashis unique attributes and offering the customers with various price
discounts and quantity discounts. During the peak times, we will utilize push strategy where it will
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give incentives like reducing the trade price, giving free bottles of the tooth powder if they buy in
bulk, or even giving rewards for buying the products in bulk for channel members to stock/shelve
the product and sell to the final consumers.
Intensive Distribution:
As the tooth powder is a convenience product, that is purchased frequently, immediately, and with
minimal purchasing effort and comparison shopping, we will be using intensive or mass
distribution in the rural areas so that rural people can easily access the product and get it easily. In
intensive distribution, goods or services are placed in as many outlets as possible. We will be
spending a lot of investment at the beginning when launching the product. Consequently, we want
a return on investment quickly and for that to happen, we needs to utilize intensive distribution in
retail shops, grocery stores etc. in all over the rural area of Bangladesh, so that target market can
be reached effectively and efficiently.
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Factory
Wholesalers
Retail Shops
Groceries
Consumers
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Communication Objective-
1. Creating brand awareness for our product- Our promotions and advertisements will
encourage brand awareness, hoping to create a sustaining image of Hashis quality and
benefits in the consumers minds
2. Brand Association We want to tell our customers that if they are looking for a
product that can make their teeth whiter and pain free, then Hashi is the tooth power they
should consider. The natural ingredients in our product should also work as a competitive
advantage as many rural consumers still believe in natural tooth cleaning remedies such
as tree branches, char coal, ashes from specific woods, etc.
4. Brand Recall- The name of the product is very catchy, Hashi, thus it will stick to the
consumers mind. The product logo and label is very attractive, so if they see a
combination of yellow and red or even teeth, it will remind them of Hashi.
All of our advertisements will be in Bengali as our target market is sec D and E.
Message Strategy:
Cognitive Message Strategy- We will use cognitive message strategy where we will
showcase how our USP of one product which has 3 benefits and by using the product will
make teeth mainly whiter, and also that it helps relief toothache. The perceived benefits of
using our product will result in whiter and pain free teeth. But whiteness will be our main
point of concentration as most users in the rural areas, (which is our main target market) as
the users in those places use dental care products just to clean their teeth. As they are not
very educated and thus does not focus on the benefits such as fighting germs, stronger teeth,
gum care etc. They focus on mainly keeping their teeth clean and white and so our message
strategy will mainly focus on keeping teeth white while also insignificantly stating other
benefits such as stronger and healthier teeth.
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Affective Message Strategy- Affective advertising will also be used. The advertisements
may not directly appeal emotionally but once they think about the message, emotions will
kick in.
we will also have brand message strategy where celebrities endorse the product to
increase brand image and credibility of the brand. The celebrity should be from rural area
and has that rural image to him so that audience can connect to him.
Execution of Message:
Informational: In our RDC we will communicate the benefits of our products. Our
posters will also be communicating our different benefits in different posters. Some
posters will emphasize on how using our product will relief pain when tooth is aching,
others will show how using Hashi teeth will become whiter.
Message Source:
Message source will be coming from a celebrity who is famous in rural areas mainly.
Someone from Bengali natoks is preferred. He should have a very rural image engraved
on his attitude and language. He should have nice looking teeth too. As he will be the
message source, our target audience should feel easier to trust what he says and be
inspired to use the product. Our celebrity will make the products image more credible.
Similarity: We will use the same celebrity that we use in our Television advertisement
and RDC as the spokesperson. Thus when the consumers will see him in other
programmers, they will think about the funny commercials he did for Hashi.
We will be launching our product as Hashi. To let our consumers know that we have
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stepped into the market and that we are available for cleaning teeth, we will need to
communicate our benefits to the consumers for which they will purchase our product.
The natural ingredients used in our product will help reduce tooth ache and also make
teeth whiter. So to communicate these we will use above the line communication (ATL).
Using mediums such as Television and radio to reach mass audience will help us create
awareness for our product.
We will also use BTL communication. By using BTL communication, we will showcase
our benefits which we can show in our tvc. For example in posters, we will show how
using Hashi Tooth powder, one can be relieved from tooth ache. We will also use free
sampling. We will give small scathes to our consumers so that they can use them and
later purchase the product.
Radio Advertisement: Hashi's radio advertisement will air in Bangladesh Betar, Radio
Foorti 88.0fm and Radio today 89.6 as these are the more popular radio stations listened
to. This advertisement will be different from the television advert but will communicate
how teeth can be whiter, made stronger and healthier. The voice used in the radio will be
of the celebrity from the TV ads.
Trade Promotions: Heavy Trade discounts will be given to retailers and wholesalers
initially as to encourage them to buy and stack large quantities of the bottles in their
stores, thus falling in the eyes of consumers.
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Print Advertisement: Small posters advertisements will be hung on retail outlets. Some
will be put on back of rickshaws, buses, cngs, trucks lamps, poles, walls etc. similar to
how KSRM has done their print marketing. Newspaper adverts wont be used as not too
many people read newspapers them in villages.
Poster advertisements will be changed from time to time. One advertisement design will
be used for a couple of months and then another design will be used for the next couple
of months. Each poster will convey different messages. Although out tag line used in the
posters will remain the same which is Eibar data ber kore hashbo
For example, one of the posters will show two pictures. In one picture, a pretty village
girl will be smiling with nice teeth. Underneath it will be written uses Hashi (Uni Hashi
bebohar koren) the other picture will be of a woman with broken and bad teeth (Uni
Hashi bebohar korenna).
In another poster, there will be a picture of a person in a lot of pain and his hands on his
cheeks where the pain is. Caption will be Hashi tooth power bebohar korun, betha
mukto data rakhun
In one of the posters, a man will be chewing a thick sugarcane stick. Caption will be
Hashi daatrakhun, khabar shad hobe aro darun (Keep strong teeth and your food will
taste better)
Samples: Small sachets of Hashi will be given out for free by personal sellers near the
retail shops to men and women to use while they also say about how the tooth powder
will benefit them.
Local Doctors: As dentists are not often visited in rural areas, we will provide doctors
with Hashi tooth powder and ask them to advice their patients to use such product so that
they can keep their teeth clean, healthy and strong as use of natural coal, tree branches etc
can lead to harmful diseases. The doctors will be given presents or cash to provide us
such service.
Free Distribution of polythene: we will give free polythene bag where our logo will be
printed on in the local shops and in local bazaars in the rural area. So whenever someone
will but a product they will be given that product inside our bag and people will see that
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by this kind of practice we can reach a huge portion of our customer and for free
polythene shop keepers will recommend our product to consumers
Person A is practicing to smile in the mirror. Person B asks him what is he doing and if
he has gone mad.. Person A replies that hes practicing to smile nicely and that he doesnt
find his smile nice. So person B says that all smiles will look good if your teeth are white
and beautiful and then he shows his smile to Person A. Person A asks how his teeth are
so nice, and Person B says that, here, use Hashi tooth Power, it will make your teeth
white and beautiful and your smile nice
Then person B says to the audience that use Hashi tooth power and keep your teeth white,
strong and healthy:-
Person B- Hashi daat power beboharkorun, apner data shundor o betha mukto rakhun.
Eibar data ber kore hashbo !
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Poster:
Establishment of 360 degree Branding:360 degree branding occurs when a brand surrounds the
consumers from every side keeping consumer in the center. This surrounding is done with the
message of communication. Through utilization of different touch points this 360 degree branding
is done. Our brand is not only concerned about the ATL touch points but it is also concerned about
the BTL. So with our IMC campaign it is our plan to surround our customers from every corner
with our message that our brand Hashi is available in the market now which is a unique product
and which is far better than other toothpowders. This is how we will be establishing a successful
360 degree branding
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CONCLUSION
Hashi will be the only brand to provide both white teeth and preventing toothache in one single
tooth powder. Since the target market is of SEC D & E, Hashi will be charging low price. People
in these markets want white teeth more than anything else, so well be able to capture a large
portion of the market. Keeping in mind the price sensitivity and economies of scale Hashi will
provide extra quantity and affordable price while generating profit from the sales.
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BIBLIOGRAPHY
"Bangladesh Economy 2015, CIA World Factbook." Bangladesh Economy 2015, CIA
World Factbook. 10 Feb.2015. Web. 10 Nov. 2015. Retrieved from:
<http://www.theodora.com/wfbcurrent/bangladesh/bangladesh_economy.html>
Rahman, D. A. (2015, March 12). Environmental governance and growth. The Daily
Star. Retrieved from http://www.thedailystar.net/supplements/24th-anniversary-the-dailystar-part-3/environmental-governance-and-growth-71123
http://www.cdacnetwork.org/contentAsset/raw-data/38d6a8d4-c96c-4583-bf8ba402e7413ca7/attachedFile
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