Description
A brand named “Spin n Clear” under the umbrella of GFK corporation, Spin n Clear is very effective detergent agent by its composition. Managers are expecting that it will make a sound image in the consumers evoked set of mind.
Project of Strategic Marketing
On
Group Name: Opportunity Seizers
Company Name: GFK corporation. (Detergents)
Submitted to: Prof. Aais K!an
Submitted by:
". Far!an Sa#eem. $eg. %o. &'f()mbam''*+
,ussain -ain u# Abiden. $eg. %o. &'f()mbam''*.
Syed A#i Kamran. $eg. %o. &'f()mbam''/0
UNIVERSIT O! CENTR"# PUN$"% #"&ORE
0
T"%#E O! CONTENTS
'.( Intro'uction...................................................................................+
'.+ "ission 1ision................................................................................*
'.* 1a#ues............................................................................................*
...........................................................................................................................................
+.( Situation "na
i).........................................................................2
+.' "ar3et Summary...........................................................................2
+.+ "ar3et potentia#............................................................................2
+.* Demograp!ic 4rends.....................................................................2
+.2 5onsumer 6e!a7iour.....................................................................0
+.0 5ompetiti7e 8n7ironment.............................................................0
+./ 8conomy......................................................................................./
+.9 &ega# and Po#itica# :ssues..............................................................9
*.( O*jecti+e) an' "ction P(an).......................................................)
*.' Product........................................................................................'(
*.+ P#ace...........................................................................................'(
*.* Price............................................................................................''
*.2 Promotion....................................................................................''
2.( Microen+iornment......................................................................'+
0.( Macroen+iornment.....................................................................'*
/.( ,i)tri*ution Strategy.................................................................'0
9.( !inancia( ")pect)........................................................................'9
9.' Fi;ed 5osts..................................................................................'9
9.+ Product &aunc!ing 5ost...............................................................'9
9.* e are #aunc!ing a brand named ?Spin n 5#ear@ under t!e umbre##a of
GFK corporationA Spin n 5#ear is 7ery eBecti7e detergent agent by its
composition. "anagers are e;pecting t!at it i## ma3e a sound image
in t!e consumers e7o3ed set of mind.
A 'etergent (as a noun) is a materia# intended to assist c#eaning. 4!e
term is sometimes used to diBerentiate beteen soap and
ot!er surfactants used for c#eaning. As an adCecti7e pertaining to a
substanceA it (or Ddetersi7eD) means Dc#eaningD or D!a7ing c#eaning
propertiesDE DdetergencyD indicates presence or degree of c#eaning
property.
A detergent poder !ic! gi7es you a better c#eaning poer it!
muc! #ess eBort t!an t!e simi#ar priced competitors.
#ogo of Spin N C(ear:
Tag (ine of Spin N C(ear:
“Stains No More”
4!e statement is s!oing t!e operati7eness of t!e detergent. :tFs
conciseA ac!ie7ab#e and rea#istic. 5reate a good sense in t!e mind of
reader.
2
Our Mi))ion:
Our mission is to add 7ita#ity to #ife. >e meet e7eryday needs for
!ygieneA and persona# care it! brands t!at !e#p peop#e fee# good and
get more out of #ife.
Our Vi)ion:
4o be #eading Grm in t!e detergent industryA by pro7iding better Hua#ity
ser7ices to customers and gain #arger customer base and greater
mar3et s!are.
Our Va(ue):
Integrity
• >e a#ays try to do t!e rig!t t!ing.
• >e are !onest and straig!tforard it! eac! ot!er.
• >e operate it!in t!e #etter and spirit.
• >e up!o#d t!e 7a#ues and princip#es of GFK company in e7ery
action and decision.
• >e are data based and inte##ectua#ity !onest in ad7ocating
proposa#sA inc#uding recognizing ris3s.
Leadership
• >e are a## #eaders in our area of responsibi#ityA it! a deep
commitment to de#i7ering #eaders!ip resu#ts.
• >e !a7e a c#ear 7ision of !ere e are going.
• >e focus our resources to ac!ie7e #eaders!ip obCecti7es and
strategies.
• >e de7e#op t!e capabi#ity to de#i7er our strategies and e#iminate
organizationa# barriers.
Ownership
• >e accept persona# accountabi#ity to meet our persona# needsA
impro7e our systems and !e#p ot!ers impro7e t!eir
eBecti7eness.
• >e a## act #i3e onersA treating t!e companyFs assets as our on
and be!a7ing it! t!e companyFs #ong term success in mind.
Passion for Winning
• >e are determined to be t!e best at doing !at matters most.
• >e !a7e a !ea#t!y dissatisfaction it! t!e status Huo.
• >e !a7e a compe##ing desire to impro7e and to in in t!e
mar3etp#ace.
Trust
• >e respect our GFK co##eaguesA customers and consumersA and
treat t!em as e ant to be treated.
3
• >e !a7e conGdence in eac! ot!erFs capabi#ities and intentions.
• >e be#ie7e t!at peop#e or3 best !en t!ere is a foundation of
trust
Situation "nai)
Market Summary
At GFK 5O$PO$A4:O%A e !a7e detai#ed information about t!e 3itc!en
app#iance mar3et as e## as a compre!ensi7e understanding of
consumer needs. According to t!e +((* sur7ey of !ouse!o#d energy
use produced by %atura# $esources Pa3istanA !ome oners account for
92.2I of Detergent oners. 6ased on t!is informationA e !a7e
decided to target current and ne !ome oners during our Grst year of
#aunc!A as t!ey are most #i3e#y to eit!er !a7e a Detergent or i## need
one insta##ed. 4!e mar3et size (in !ouse!o#ds) is based on information
from Statistics Pa3istan from +((*A it is estimated t!at t!ere are o7er
'' mi##ion !ouse!o#ds in Pa3istan. Of t!ese !ouse!o#dsA appro;imate#y
. mi##ion are onedA !ence * mi##ion !ouse!o#ds are rented.
5on7erse#yA appro;imate#y / mi##ion !ome oners (!ouse!o#ds) on a
Detergent.
Market potential
4!e !ouse!o#d penetration of domestic e#ectrica# app#iances is 7ery
e## de7e#oped in most sectors of t!e Pa3istani mar3et. Detergents are
a potentia# mar3et for penetrationA as t!ey are con7enient for young
fami#ies it! to income earners.
$etai# 7o#ume sa#es of Detergents are predicted to increase by '*I
o7er t!e +((* to +((. period. ,ouse!o#d penetration of Detergents
increased o7er t!e re7ie periodA yet t!e re#ati7e#y #o penetration
rate presents a continued opportunity for ne sa#es o7er t!e
forecasted years.
4
emographi! Trends
4!e trend toard con7enience is a#so #arge#y dri7en by t!e s!ortened
time t!at !ouse!o#ds de7ote to !ouse!o#d c!oresA as or3 p#aced
greater demands on timeA t!ereby #ea7ing remaining time during t!e
a7erage day de7oted to #eisure rat!er t!an coo3ing and c#eaning.
According Statistics Pa3istanA t!e number of ne constructions !as
been consistent since +((+. :n +((0A t!ere ere '*0A2/' ne
constructions. 4!is is an important mar3et for GFK 5O$PO$A4:O% to
target as ne app#iances are soug!t items for t!ese consumers.
Pa3istan !as a #arge informa# economyA !ic! t!e go7ernment is trying
to document and assess. Appro;imate#y 2)I of adu#ts are #iterateA and
#ife e;pectancy is about /2 years. 4!e popu#ationA about '/. mi##ion in
+((9A is groing at about '..(I.
$e#ati7e#y fe resources in t!e past !ad been de7oted to socio=
economic de7e#opment or infrastructure proCects. :nadeHuate pro7ision
of socia# ser7icesA !ig! birt! rates and immigration from nearby
countries in t!e past !a7e contributed to a persistence of po7erty. An
inJuentia# recent study
conc#uded t!at t!e ferti#ity rate pea3ed in t!e
').(sA and !as since fa##en s!arp#y. Pa3istan !as a fami#y=income Gini
inde; of 2'A c#ose to t!e or#d a7erage of *).
"onsumer #eha$iour
>it! competition being prominent t!roug!out t!e Detergent mar3et
segmentA t!ere are many diBerent types and sty#es of Detergents
a7ai#ab#e to on.
6ui#t=in units accounted for )2I of retai# 7o#ume sa#es in +((*A up from
)'I in ')).. A#t!oug! t!ere are counter top and portab#e mode#s
a7ai#ab#eA t!ese are rare#y found in Pa3istani !omes. >it! t!e size and
design of most 3itc!ensA bui#t=in mode#s are easi#y accommodated and
t!e added con7enience of not !a7ing to manua##y !oo3 t!e app#iance
5
to t!e sin3 and t!e space=sa7ing features of a bui#t=in Detergent are
primary factors be!ind t!e dec#ine of t!e freestanding mode#. :n factA it
is no diKcu#t to Gnd freestanding Detergents in retai# out#etsA as most
mode#s on t!e sa#es Joor are bui#t=in.
%!onomy
4!e economy of Paki)tan is t!e +9t! #argest economy in t!e or#d in
terms of purc!asing poerA and t!e 2.t! #argest in abso#ute do##ar
terms. Pa3istan !as a semi industria#ized economy t!at main#y
encompasses te;ti#esA c!emica#sA food processingA agricu#ture and
ot!er industries. Grot! po#es of Pa3istanLs economy are situated
a#ong t!e :ndus $i7erA di7ersiGed economies of Karac!i and PunCabLs
urban centersA coe;ist it! #esser de7e#oped areas in ot!er parts of t!e
country. 4!e economy !as suBered in t!e past from decades
of interna# po#itica# disputesA a fast groing popu#ationA mi;ed #e7e#s of
foreign in7estmentA and a cost#yA ongoing confrontation it!
neig!boring :ndia. ,oe7erA :"F=appro7ed go7ernment po#iciesA
bo#stered by foreign in7estment and reneed access to g#oba# mar3etsA
!a7e generated so#id macroeconomic reco7ery t!e #ast decade.
Substantia# macroeconomic reforms since +(((A most notab#y at
pri7atizing t!e ban3ing sector !a7e !e#ped t!e economy.
GDP grot!A spurred by gains in t!e industria# and ser7ice sectorsA
remained in t!e /=.I range in +((2=(/. Due to economic reforms in
t!e year +((( by t!e "us!arraf go7ernment. :n +((0A t!e >or#d
6an3 named Pa3istan t!e top reformer in its region and in t!e top '(
reformers g#oba##y. :s#amabad !as steadi#y raised de7e#opment
spending in recent yearsA inc#uding a 0+I rea# increase in t!e budget
a##ocation for de7e#opment in FM(9A a necessary step toard re7ersing
6
t!e broad underde7e#opment of its socia# sector. 4!e Gsca# deGcit = t!e
resu#t of c!ronica##y #o ta; co##ection and increased spendingA
inc#uding reconstruction costs from t!e de7astating Kas!mir
eart!Hua3e in +((0 as manageab#e.
:nJation remains t!e biggest t!reat to t!e economyA Cumping to more
t!an )I in +((0 before easing to 9.)I in +((/. :n +((.A fo##oing t!e
surge in g#oba# petro# prices inJation in Pa3istan !as reac!ed as !ig! as
+0.(I. 4!e centra# ban3 is pursuing tig!ter monetary po#icy !i#e
trying to preser7e grot!. Foreign e;c!ange reser7es are bo#stered by
steady or3er remittancesA but a groing current account deGcit =
dri7en by a idening trade gap as import grot! outstrips e;port
e;pansion = cou#d dra don reser7es and dampen GDP grot! in t!e
medium term.
Te!hnology
4!e Spin n 5#ear Detergent uses cryogenic tec!no#ogy to c#ean your
Stains in a ay t!at is economica##y and eco#ogica##y 7iab#e. 4!e use of
dry ice pe##ets a##os for a c#ean met!od of remo7ing dirt and grimeA
!i#e at t!e same time it does not produce any secondary astes.
4!e dry ice medium is c!emica##y neutra#A e#ectrica##y non=conducti7e
and tota##y non=abrasi7e. 4!ere are abso#ute#y no secondary astes
and t!e materia# being remo7ed genera##y becomes #ig!t dry dust t!at
is captured in G#ters. 4!e dry ice b#oc3sA pe##etsA and poders are
s!on in t!e diagram be#o.
it! reference to DetergentsA t!is trans#ated
into an a7erage annua# energy use reduction of *9I. 4!e SP:% %
5&8A$ Detergent i## furt!er reduce energy consumption by 0(I as
compared to current products on t!e mar3et.
O*jecti+e) an' "ction P(an)
4!e primary target for our Grst year on t!e mar3et is residentia#
!omeoners as t!ey are en7ironmenta##y conscientious indi7idua#s and
are attracted by ne inno7ati7e products. 4!ey ere a#so t!e essence
for de7e#oping t!is product so it is important t!at t!ey be t!e Grst to
!a7e t!e opportunity of using our product.
I'ea generation: 4!e concept of t!is energy eKcientA #o cost
Detergent arose from customer comp#aints based on feedbac3
conducted in Nu#y +(().
I'ea )creening: GFK 5O$PO$A4:O%A a company !ic! is concerned
it! t!e comfort and con7enience of its customers considers t!at t!e
ne SP:% % 5&8A$ Detergent is in=#ine it! t!e companyLs obCecti7esA
strategies and resources. 4!is as conGrmed in September after a
meeting !e#d it! GFK 5O$PO$A4:O% e;ecuti7es.
9
Concept 'e+e(opment an' te)ting: De7e#opment too3 one year
it! a Gna# prototype a7ai#ab#e and ready for testing in %o7ember
+(().
Marketing )trategy 'e+e(opment: :n Nanuary +('(A t!e penetration
business strategy as agreed upon as being a cost eBecti7e and
aBordab#e strategy for #aunc!ing t!e ne SP:% % 5&8A$ Detergent.
%u)ine)) anai): Fo##oing t!e business ana#ysis comp#eted in
December +(()A !ic! as inc#uded in t!e mar3eting p#anA it as
determined t!at a return on in7estment i## be ac!ie7ed after 0 years
it! on#y t!e Grst year s!oing year#y #osses. Fo##oing t!e Gft! yearA
it is forecasted t!at GFK 5O$PO$A4:O% i## ma3e appro;imate#y O9
"i##ion proGt on t!eir ne productA SP:% % 5&8A$.
Pro'uct 'e+e(opment: 4!e Gna# prototype as comp#eted in October
+(().
Commercia(i/ation: 4!e product i## be #aunc!ed in Nanuary +('(.
& P's of Marketing(
Produ!t(
4!e product as de7e#oped based on customer feedbac3 and mar3et
researc! conducted on Pa3istani consumers. 4o do soA e !a7e not on#y
ta3en into account consumer concerns about en7ironmentA energyA
aterA po##utionA detergents and noiseA e !a7e anticipated t!ese
e;pectationsA and !a7e no surpassed t!em by designing t!e on#y
detergent t!at addressed a## t!ese issues simu#taneous#y.
"omposition(
A detergent typica##y consists of ionic and anionic surfactants !ic! act
as t!e detergent to remo7e t!e dirt from t!e c#ot!esA perfumeA
10
p!osp!ors !ic! ma3e c#ot!es appear !iter (it is t!ese t!at s!o up
under u#tra7io#et #ig!t)A and for poders antica3ing agents to pre7ent
t!e poder becoming one #arge #ump in t!e presence of moisture. For
#iHuid detergentsA t!e bu#3 of t!e product is aterE for concentrated
#iHuidsA some!at #ess aterA but sti## t!e product is most#y ater.
6io#ogica# #aundry detergents contain enzymes !ic! act
as cata#ysts to DeatD t!e dirt oB of t!e #aundryE t!ese function best at
t!e 3inds of body temperatures found in arm=b#ooded creatures
(*( P5 (./ PF) to 0( P5 ('++ PF)) and i## perform no betterA and
sometimes orseA at !ig!er temperatures. Detergents may !a7e ot!er
additi7es suc! as b#eac!es and fabric softeners and t!ese are usua##y
ad7ertised c#ear#y on t!e pac3ets as se##ing points.
Pla!e
>e p#an to #aunc! t!is product in t!e maCor urban cities in Pa3istanA
name#y &a!oreA Karac!iA :s#amabad and "u#tan. 4!e #aunc! i##
coincide it! t!e %ationa# ,ome s!o occurring in eac! of t!ese cities.
4!e %ationa# ,ome S!o pro7ides GFK 5O$PO$A4:O% it! t!e
opportunity of bringing aareness to t!e mar3etp#ace. 4!e %ationa#
,ome S!os a## ta3e p#ace in t!e spring season amongst t!ese 2
diBerent cities. GFK 5O$PO$A4:O% i## continue to maintain product
a7ai#abi#ity t!roug! t!eir 3ey retai#ers.
Pri!e
4!e prices of spin n c#ear detergent poder for 7arious sizes of
pac3ages are as fo##osE
11
01g 22222222222222222222222222222222 R) 344566
3 1g 22222222222222222222222222222222 R) 44566
766g22222222222222222222222222222222 R) 74566
066g ================================ R) 04566
87g 22222222222222222222222222222222 R) 4566
Promotion
>e !a7e diBerent promotiona# campaigns t!at i## !e#p to bring
aareness to t!is ne product. 4!e Statistics Pa3istan '))/ 5ensus
found t!at on#y ++I of Pa3istanLs popu#ation (/.2 mi##ion) #i7e in rura#
areas. 4!ereforeA as mentioned abo7eA e i## concentrate our #aunc!
in t!e urban areas. As e p#an to #aunc! in maCor cities in Pa3istanA
name#yA &a!oreA :s#amabadA Karac!iA and "u#tanA our #aunc! in eac! of
t!ese cities i## fo##o t!e same pattern.
MICROENVIRONMENT:
4!e factors of t!is en7ironment are e;p#ained be#o:
Supp(ier):
Suppliers are an important link in the company’s overall customer value !elivery
system." #ll $%& corporation approve! a'encies han!le! (y commercial !epartment.
Marketing Interme'iarie):
"ar3eting intermediaries !e#p t!e company to promoteA se##A and
distribute its goods to Gna# buyers. 4!ey inc#ude rese##ersA p!ysica#
distribution GrmsA mar3eting ser7ices agencies and Gnancia#
intermediaries.
:t is 7ery diKcu#t to dea# it! a## t!e !o#esa#ers and retai#ers
indi7idua##y so GFK corporation !as a so#e distribution system.
Cu)tomer):
12
5onsumer mar3ets consist of indi7idua#s and !ouse!o#ds t!at buy
goods and ser7ices for persona# consumption. :n t!e case of our
c!osen product 9SPIN N C#E"R: A a detergent A t!e main customers
our !ouse=i7es because t!ey are t!e ones !o buy detergents.
Competitor):
4!ere are * main p#ayers in t!e detergent industry of Pa3istan.
') 5o#gate=pa#mo#i7e corporation ( 6rite A 8;press poer A 6onus )
+) &e7er 6rot!ers ( Surf A >!ee# )
*) Proctor Q Gamb#e ( Arie# )
Pu*(ic):
4!e companyFs mar3eting en7ironment a#so inc#udes 7arious pub#ics
suc! as A Financia# pub#ics A "edia pub#ics A Go7ernment pub#ics A
5itizen action pub#ics A &oca# pub#ics A :nterna# pub#ics and t!e genera#
pub#ic. Amongst a## t!e pub#ics t!e most important is t!e genera# pub#ic
A because t!ey are t!e ones t!at but t!e product so t!e company
needs to be concerned about t!eir attitudes toard its products.
M"CRO ENVIRONMENT:
4!e factors of t!is en7ironment are e;p#ained be#o:
,emograp;ic):
:n t!e case of 9SPIN N C#E"R: t!e demograp!ics t!at e !a7e found
out are A t!at any !ouseife !o is bot! price sensiti7e as e## as
Hua#ity conscious A be#ongs to any c#assA any occupation A if can aBord
Spin % 5#ear i## buy it.
P)yc;ograp;ic):
Peop#e !o are ambitiousA !ygiene consciousA t!ose !o ant to be
aut!oritati7e are Spin % 5#ear buyersA because !en it comes to
persona#ity 7a#ues t!an no compromise.
Tec;no(ogy:
13
GFK corporation as t!e Grst one to #aunc! in ?po#yt!ene bags.@ 4!is
as a c!ange in tec!no#ogy t!e po#y pac3s donFt get torn oB after
getting et #i3e t!e carton bo;esA so t!is c!ange found a ready mar3et.
Economy:
Spin % 5#ear is a premium Hua#ity detergent at a re#ati7e#y #o price
t!an ot!er detergents of same Hua#ity. 4!is as made possib#e by
#aunc!ing it in po#yt!ene bags so as to cut don cost price.
Market )i/e:
)ue to the launchin' o* !i**erent !eter'ents in sachets + a lar'e num(er o* soap users are
convertin' into !eter'ent users (ecause no, they can a**or! to (uy a !eter'ent at the
price o* soap. -otal per annum sale o* !eter'ents in .akistan is upto 40+000 tons. 4!is
mar3et is groing at a rate of 2.+0I per annum.
Target market:
%orma##y spea3ing detergent is a product !ic! is purc!ased by t!e
!ousei7es but sti## t!ere is a big target mar3et.
emographi!s(
"ge:
Peop#e of a## ages #i3e to ear c#ean c#ot!es.
Gen'er:
"a#e and Fema#e.
!ami(y )i/e:
%o #imit of membersA c#ot!es are to be as!ed.
!ami(y (ife cyc(e:
Moung or o#dA married or sing#e.
Income:
*A2(( and abo7e ( because Spin % 5#ear is not mar3eted in sac!ets so
a person !as to earn t!is muc! so t!at !e can spend at#east 'I of !is
income to buy a sma## pac3 of Spin % 5#ear.)
Occupation:
14
Students A >or3ing peop#e and ,ousei7es.
Socia( c(a)):
e
be#ie7e satisGed emp#oyees i## #ead to better products t!at are
designed and manufactured in a more eKcient ay. Furt!ermoreA at
GFK 5O$PO$A4:O%A e ensure t!at a## our manufacturing processes
are en7ironmenta##y safeA and t!at any manufacturing by=product is
17
proper#y disposed. 4!ereforeA budget is a#so set aside for t!e
en7ironment. 4!e e;ecuti7e and oKce staB sa#aries are a7eraged and
accounted. 4enty percent is added to t!eir sa#ary to account for t!eir
beneGts. OKce supp#ies inc#ude items suc! as computersA softare
#icenses or paper.
Produ!t Laun!hing "ost
4!e product #aunc! costs i## be added to t!e G;ed costs. 4!eseA
!oe7er !a7e been separated out because t!ey on#y app#y to t!e
product #aunc! (i.e. t!e Grst year). Our unit price i## be setA to ensure
t!e product #aunc!ing costs are zero in t!e second year. 4!e tab#e
be#o #ists t!e e;tra cost associated it! #aunc!ing t!e ne product.
+nit "ost ,-aria.le "ost/
Some manufacturing materia#s are e;pandab#e during t!e
manufacturing process. 4!e cost of t!ese types of materia#s depends
on t!e number of units produced. 4o minimize t!e mi#eageA to truc3s
i## be in eac! of t!e four cities speciGed ear#ierA and t!e merc!andise
i## arri7e by train to eac! city #ea7ing from &a!ore.
"'+erti)ing Goa():
Once a company decides !at type of speciGc ad7ertising campaign it
ants to useA it must decide !at approac! s!ou#d carry t!e message.
A company is interested in a number of areas regarding ad7ertisingA
suc! as freHuencyA media impactA media timingA and reac!.
!re>uency refers to t!e a7erage number of times t!at an a7erage
consumer is e;posed to t!e ad7ertising campaign. A company usua##y
estab#is!es freHuency goa#sA !ic! can 7ary for eac! ad7ertising
campaign. For e;amp#eA a company mig!t ant to !a7e t!e a7erage
consumer e;posed to t!e message at #east si; times during t!e
18
ad7ertising campaign. 4!is number mig!t seem !ig!A but in a croded
and competiti7e mar3et repetition is one of t!e best met!ods to
increase t!e productLs 7isibi#ity and to increase company sa#es. 4!e
more e;posure a company desires for its productA t!e more e;pensi7e
t!e ad7ertising campaign. 4!usA often on#y #arge companies can aBord
to !a7e !ig!=freHuency ad7ertisements during a campaign.
Me'ia Impact "edia impact genera##y refers to !o eBecti7e
ad7ertising i## be t!roug! t!e 7arious media out#ets (e.g.A te#e7isionA
:nternetA print). A company must decideA based on its productA t!e best
met!od to ma;imize consumer interest and aareness. For e;amp#eA a
company promoting a ne #aundry detergent mig!t fare better it!
te#e7ision commercia#s rat!er t!an simp#e print ads because more
consumers are #i3e#y to see t!e te#e7ision commercia#. Simi#ar#yA a
company suc! as "ercedes=6enzA !ic! mar3ets e;pensi7e productsA
mig!t ad7ertise in specia#ty car magazines to reac! a !ig! percentage
of its potentia# customers. 6efore any money is spent on any
ad7ertising mediaA a t!oroug! ana#ysis is done of eac! oneLs strengt!s
and ea3nesses in comparison to t!e cost. Once t!e ana#ysis is doneA
t!e company i## ma3e t!e best decision possib#e and embar3 on its
ad7ertising campaign.
Me'ia Timing Anot!er maCor consideration for any company engaging
in an ad7ertising campaign is !en to run t!e ad7ertisements. For
e;amp#eA some companies run ads during t!e !o#idays to promote
season=speciGc products. 4!e ot!er maCor consideration for a company
is !et!er it ants to emp#oy a continuous or pu#sing pattern of
ad7ertisements. 5ontinuous refers to ad7ertisements t!at are run on a
sc!edu#ed basis for a gi7en time period.
4!e ad7antage of t!is tactic is t!at an ad7ertising campaign can run
#onger and mig!t pro7ide more e;posure o7er time. For e;amp#eA a
19
company cou#d run an ad7ertising campaign for a particu#ar product
t!at #asts years it! t!e !ope of 3eeping t!e product in t!e minds of
customers. Pu#sing indicates t!at ad7ertisements i## be sc!edu#ed in a
disproportionate manner it!in a gi7en time frame. 4!usA a company
cou#d run t!irty=to te#e7ision commercia#s o7er a t!ree=or si;=mont!
period to promote t!e speciGc product is ants to se##. 4!e ad7antage
it! t!e pu#sing strategy is tofo#d. 4!e company cou#d spend #ess
money on ad7ertising o7er a s!orter time period but sti## gain t!e same
recognition because t!e ad7ertising campaign is more intense.
Reac; $eac! refers to t!e percentage of customers in t!e target
mar3et !o are e;posed to t!e ad7ertising campaign for a gi7en time
period. A company mig!t !a7e a goa# of reac!ing at #east .( percent of
its target audience during a gi7en time frame. 4!e goa# is to be as
c#ose to '(( percent as possib#eA because t!e more t!e target
audience is e;posed to t!e messageA t!e !ig!er t!e c!ance of future
sa#es.
T;e %o)ton Con)u(ting Group ?%CG@ matriA pro7ides a Grm an
opportunity to assess how well its business units work together. 8ac!
business unit is e7a#uated in terms of to factors: market share and
t!e growth prospects in t!e mar3et. Genera##yA t!e #arger a GrmFs
s!areA t!e stronger its positionA and t!e greater t!e grot! in a mar3etA
t!e better future possibi#ities. Four combinations emerge:
20
• A star represents a business unit t!at !as a !ig! s!are in a
groing mar3et. For e;amp#eA "otoro#a !as a #arge s!are in t!e
rapid#y groing mar3et for ce##u#ar p!ones.
• A question mark resu#ts !en a unit !as a sma## s!are in a
rapid#y groing mar3et. 4!e GrmFs positionA t!enA is not as strong
as it ou#d !a7e been !ad its mar3et s!are been greaterA but
t!ere is an opportunity to gro. For e;amp#eA ,e#ett=Pac3ard
!as a sma## s!are of t!e digita# camera mar3etA but t!is is a 7ery
rapid#y groing mar3et.
• A cash cow resu#ts !en a Grm !as a #arge s!are in a mar3et t!at
is not groingA and may e7en be s!rin3ing. 6rot!er !as a #arge
s!are of t!e typeriter mar3et.
• A dog resu#ts !en a business unit !as a sma## s!are in a mar3et
t!at is not groing. 4!is is genera##y a some!at unattracti7e
situationA a#t!oug! dogs can sti## be proGtab#e in t!e s!ort run.
For e;amp#eA Smit! 5orona !o !as a sma## s!are of t!e
typeriter mar3et.
Firms are usua##y best of it! a portfo#io t!at !as a balance of Grms in
eac! category. 4!e cas! cos tend to generate cash but require little
future investment. On t!e ot!er !andA stars generate some cas!A but
even more cash is needed to invest in the futureSfor researc! and
de7e#opmentA mar3eting campaignsA and bui#ding ne manufacturing
faci#ities. 4!ereforeA a Grm may ta3e e;cess cas! from t!e cas! co
and di7ert it to t!e star.
0 SWOT ,“Strengths1 Opportunities1 Weaknesses1 and
Threats”/
!or eAamp(e: " strength cou(' *e:
• Mour specia#ist mar3eting e;pertise.
• A neA inno7ati7e product or ser7ice.
• &ocation of your business.
• Rua#ity processes and procedures.
21
• Any ot!er aspect of your business t!at adds 7a#ue to your
product or ser7ice.
" weakness cou(' *e:
• &ac3 of mar3eting e;pertise.
• e can summarize from t!e Gndings pro7ided in t!e Situation Ana#ysisA
t!at t!ere is a signiGcant opportunity t!at can be capita#ized on !en
#oo3ing at t!e current dis!as!ing mar3et. 4o pro7e t!is pointA #et us
23
summarize t!e 3ey Gndings of t!e Situation Ana#ysisA name#y: t!e focus
of impro7ements to DetergentsE t!e forecast grot! in t!e Pa3istani
economyE coup#ed it! t!e pro#iferation of !ome impro7ements. 4!ese
t!ree main areas constitute t!e opportunityA to !ic! our inno7ati7e
ne tec!no#ogy s!a## on#y be impro7ed.
:n conc#usionA t!ese t!ree factors are t!e perfect b#end of opportunities
on !ic! our idea can Jouris!. 4!e area of greatest opportunity for
grot! and inno7ationA it!in t!e e;isting Detergent mar3etA #ies in t!e
diBusion of t!e cryogenic c#eaning tec!no#ogy. 4!is cutting=edge
tec!no#ogyA current#y in=use in t!e aerospace industryA and patented
for in=!ome c#eaningA refers to t!e art of ater=and=detergent=free
dis!as!ing. >e are t!en #eft it! spot#ess and bacteria=free Stains
e7ery timeA it!out !a7ing to pre=soa3 before actua##y as!ing. 4!is
tec!no#ogy is t!e anser to noise=reduction demandsA as noise is
e#iminatedA as e## as aterA energy and conscience use. A## in a##A t!e
perfect combination beteen consumers demands of possib#e
upgrades to t!e e;isting Detergents and a ay to capita#ize on mar3et
ma;imization. 4!is i## e7ident#y ta3e t!e mar3et by storm.
Ad7ertising ObCecti7es:
Ad7ertising obCecti7es are t!e communication tas3s to be
accomp#is!ed it! speciGc customers t!at a company is trying to
reac! during a particu#ar time frame. A company t!at ad7ertises
usua##y stri7es to ac!ie7e one of four ad7ertising obCecti7es: tria#A
continuityA brand sitc!ingA and sitc!bac3. >!ic! of t!e four
24
ad7ertising obCecti7es is se#ected usua##y depends on !ere t!e
product is in its #ife cyc#e.
Tria( 4!e purpose of t!e tria# obCecti7e is to encourage customers to
ma3e an initia# purc!ase of a ne product. 5ompanies i## typica##y
emp#oy creati7e ad7ertising strategies in order to cut t!roug! ot!er
competing ad7ertisements. 4!e reason is simp#e: >it!out t!at Grst tria#
of a product by customersA t!ere i## not be any re peat purc!ases.
Continuity 5ontinuity ad7ertising is a strategy to 3eep current
customers using a particu#ar product. 8;isting customers are targeted
and are usua##y pro7ided ne and diBerent information about a product
t!at is designed to bui#d consumer #oya#ty.
%ran' S
A brand named “Spin n Clear” under the umbrella of GFK corporation, Spin n Clear is very effective detergent agent by its composition. Managers are expecting that it will make a sound image in the consumers evoked set of mind.
Project of Strategic Marketing
On
Group Name: Opportunity Seizers
Company Name: GFK corporation. (Detergents)
Submitted to: Prof. Aais K!an
Submitted by:
". Far!an Sa#eem. $eg. %o. &'f()mbam''*+
,ussain -ain u# Abiden. $eg. %o. &'f()mbam''*.
Syed A#i Kamran. $eg. %o. &'f()mbam''/0
UNIVERSIT O! CENTR"# PUN$"% #"&ORE
0
T"%#E O! CONTENTS
'.( Intro'uction...................................................................................+
'.+ "ission 1ision................................................................................*
'.* 1a#ues............................................................................................*
...........................................................................................................................................
+.( Situation "na
i).........................................................................2+.' "ar3et Summary...........................................................................2
+.+ "ar3et potentia#............................................................................2
+.* Demograp!ic 4rends.....................................................................2
+.2 5onsumer 6e!a7iour.....................................................................0
+.0 5ompetiti7e 8n7ironment.............................................................0
+./ 8conomy......................................................................................./
+.9 &ega# and Po#itica# :ssues..............................................................9
*.( O*jecti+e) an' "ction P(an).......................................................)
*.' Product........................................................................................'(
*.+ P#ace...........................................................................................'(
*.* Price............................................................................................''
*.2 Promotion....................................................................................''
2.( Microen+iornment......................................................................'+
0.( Macroen+iornment.....................................................................'*
/.( ,i)tri*ution Strategy.................................................................'0
9.( !inancia( ")pect)........................................................................'9
9.' Fi;ed 5osts..................................................................................'9
9.+ Product &aunc!ing 5ost...............................................................'9
9.* e are #aunc!ing a brand named ?Spin n 5#ear@ under t!e umbre##a of
GFK corporationA Spin n 5#ear is 7ery eBecti7e detergent agent by its
composition. "anagers are e;pecting t!at it i## ma3e a sound image
in t!e consumers e7o3ed set of mind.
A 'etergent (as a noun) is a materia# intended to assist c#eaning. 4!e
term is sometimes used to diBerentiate beteen soap and
ot!er surfactants used for c#eaning. As an adCecti7e pertaining to a
substanceA it (or Ddetersi7eD) means Dc#eaningD or D!a7ing c#eaning
propertiesDE DdetergencyD indicates presence or degree of c#eaning
property.
A detergent poder !ic! gi7es you a better c#eaning poer it!
muc! #ess eBort t!an t!e simi#ar priced competitors.
#ogo of Spin N C(ear:
Tag (ine of Spin N C(ear:
“Stains No More”
4!e statement is s!oing t!e operati7eness of t!e detergent. :tFs
conciseA ac!ie7ab#e and rea#istic. 5reate a good sense in t!e mind of
reader.
2
Our Mi))ion:
Our mission is to add 7ita#ity to #ife. >e meet e7eryday needs for
!ygieneA and persona# care it! brands t!at !e#p peop#e fee# good and
get more out of #ife.
Our Vi)ion:
4o be #eading Grm in t!e detergent industryA by pro7iding better Hua#ity
ser7ices to customers and gain #arger customer base and greater
mar3et s!are.
Our Va(ue):
Integrity
• >e a#ays try to do t!e rig!t t!ing.
• >e are !onest and straig!tforard it! eac! ot!er.
• >e operate it!in t!e #etter and spirit.
• >e up!o#d t!e 7a#ues and princip#es of GFK company in e7ery
action and decision.
• >e are data based and inte##ectua#ity !onest in ad7ocating
proposa#sA inc#uding recognizing ris3s.
Leadership
• >e are a## #eaders in our area of responsibi#ityA it! a deep
commitment to de#i7ering #eaders!ip resu#ts.
• >e !a7e a c#ear 7ision of !ere e are going.
• >e focus our resources to ac!ie7e #eaders!ip obCecti7es and
strategies.
• >e de7e#op t!e capabi#ity to de#i7er our strategies and e#iminate
organizationa# barriers.
Ownership
• >e accept persona# accountabi#ity to meet our persona# needsA
impro7e our systems and !e#p ot!ers impro7e t!eir
eBecti7eness.
• >e a## act #i3e onersA treating t!e companyFs assets as our on
and be!a7ing it! t!e companyFs #ong term success in mind.
Passion for Winning
• >e are determined to be t!e best at doing !at matters most.
• >e !a7e a !ea#t!y dissatisfaction it! t!e status Huo.
• >e !a7e a compe##ing desire to impro7e and to in in t!e
mar3etp#ace.
Trust
• >e respect our GFK co##eaguesA customers and consumersA and
treat t!em as e ant to be treated.
3
• >e !a7e conGdence in eac! ot!erFs capabi#ities and intentions.
• >e be#ie7e t!at peop#e or3 best !en t!ere is a foundation of
trust
Situation "na
i)Market Summary
At GFK 5O$PO$A4:O%A e !a7e detai#ed information about t!e 3itc!en
app#iance mar3et as e## as a compre!ensi7e understanding of
consumer needs. According to t!e +((* sur7ey of !ouse!o#d energy
use produced by %atura# $esources Pa3istanA !ome oners account for
92.2I of Detergent oners. 6ased on t!is informationA e !a7e
decided to target current and ne !ome oners during our Grst year of
#aunc!A as t!ey are most #i3e#y to eit!er !a7e a Detergent or i## need
one insta##ed. 4!e mar3et size (in !ouse!o#ds) is based on information
from Statistics Pa3istan from +((*A it is estimated t!at t!ere are o7er
'' mi##ion !ouse!o#ds in Pa3istan. Of t!ese !ouse!o#dsA appro;imate#y
. mi##ion are onedA !ence * mi##ion !ouse!o#ds are rented.
5on7erse#yA appro;imate#y / mi##ion !ome oners (!ouse!o#ds) on a
Detergent.
Market potential
4!e !ouse!o#d penetration of domestic e#ectrica# app#iances is 7ery
e## de7e#oped in most sectors of t!e Pa3istani mar3et. Detergents are
a potentia# mar3et for penetrationA as t!ey are con7enient for young
fami#ies it! to income earners.
$etai# 7o#ume sa#es of Detergents are predicted to increase by '*I
o7er t!e +((* to +((. period. ,ouse!o#d penetration of Detergents
increased o7er t!e re7ie periodA yet t!e re#ati7e#y #o penetration
rate presents a continued opportunity for ne sa#es o7er t!e
forecasted years.
4
emographi! Trends
4!e trend toard con7enience is a#so #arge#y dri7en by t!e s!ortened
time t!at !ouse!o#ds de7ote to !ouse!o#d c!oresA as or3 p#aced
greater demands on timeA t!ereby #ea7ing remaining time during t!e
a7erage day de7oted to #eisure rat!er t!an coo3ing and c#eaning.
According Statistics Pa3istanA t!e number of ne constructions !as
been consistent since +((+. :n +((0A t!ere ere '*0A2/' ne
constructions. 4!is is an important mar3et for GFK 5O$PO$A4:O% to
target as ne app#iances are soug!t items for t!ese consumers.
Pa3istan !as a #arge informa# economyA !ic! t!e go7ernment is trying
to document and assess. Appro;imate#y 2)I of adu#ts are #iterateA and
#ife e;pectancy is about /2 years. 4!e popu#ationA about '/. mi##ion in
+((9A is groing at about '..(I.
$e#ati7e#y fe resources in t!e past !ad been de7oted to socio=
economic de7e#opment or infrastructure proCects. :nadeHuate pro7ision
of socia# ser7icesA !ig! birt! rates and immigration from nearby
countries in t!e past !a7e contributed to a persistence of po7erty. An
inJuentia# recent study
conc#uded t!at t!e ferti#ity rate pea3ed in t!e
').(sA and !as since fa##en s!arp#y. Pa3istan !as a fami#y=income Gini
inde; of 2'A c#ose to t!e or#d a7erage of *).
"onsumer #eha$iour
>it! competition being prominent t!roug!out t!e Detergent mar3et
segmentA t!ere are many diBerent types and sty#es of Detergents
a7ai#ab#e to on.
6ui#t=in units accounted for )2I of retai# 7o#ume sa#es in +((*A up from
)'I in ')).. A#t!oug! t!ere are counter top and portab#e mode#s
a7ai#ab#eA t!ese are rare#y found in Pa3istani !omes. >it! t!e size and
design of most 3itc!ensA bui#t=in mode#s are easi#y accommodated and
t!e added con7enience of not !a7ing to manua##y !oo3 t!e app#iance
5
to t!e sin3 and t!e space=sa7ing features of a bui#t=in Detergent are
primary factors be!ind t!e dec#ine of t!e freestanding mode#. :n factA it
is no diKcu#t to Gnd freestanding Detergents in retai# out#etsA as most
mode#s on t!e sa#es Joor are bui#t=in.
%!onomy
4!e economy of Paki)tan is t!e +9t! #argest economy in t!e or#d in
terms of purc!asing poerA and t!e 2.t! #argest in abso#ute do##ar
terms. Pa3istan !as a semi industria#ized economy t!at main#y
encompasses te;ti#esA c!emica#sA food processingA agricu#ture and
ot!er industries. Grot! po#es of Pa3istanLs economy are situated
a#ong t!e :ndus $i7erA di7ersiGed economies of Karac!i and PunCabLs
urban centersA coe;ist it! #esser de7e#oped areas in ot!er parts of t!e
country. 4!e economy !as suBered in t!e past from decades
of interna# po#itica# disputesA a fast groing popu#ationA mi;ed #e7e#s of
foreign in7estmentA and a cost#yA ongoing confrontation it!
neig!boring :ndia. ,oe7erA :"F=appro7ed go7ernment po#iciesA
bo#stered by foreign in7estment and reneed access to g#oba# mar3etsA
!a7e generated so#id macroeconomic reco7ery t!e #ast decade.
Substantia# macroeconomic reforms since +(((A most notab#y at
pri7atizing t!e ban3ing sector !a7e !e#ped t!e economy.
GDP grot!A spurred by gains in t!e industria# and ser7ice sectorsA
remained in t!e /=.I range in +((2=(/. Due to economic reforms in
t!e year +((( by t!e "us!arraf go7ernment. :n +((0A t!e >or#d
6an3 named Pa3istan t!e top reformer in its region and in t!e top '(
reformers g#oba##y. :s#amabad !as steadi#y raised de7e#opment
spending in recent yearsA inc#uding a 0+I rea# increase in t!e budget
a##ocation for de7e#opment in FM(9A a necessary step toard re7ersing
6
t!e broad underde7e#opment of its socia# sector. 4!e Gsca# deGcit = t!e
resu#t of c!ronica##y #o ta; co##ection and increased spendingA
inc#uding reconstruction costs from t!e de7astating Kas!mir
eart!Hua3e in +((0 as manageab#e.
:nJation remains t!e biggest t!reat to t!e economyA Cumping to more
t!an )I in +((0 before easing to 9.)I in +((/. :n +((.A fo##oing t!e
surge in g#oba# petro# prices inJation in Pa3istan !as reac!ed as !ig! as
+0.(I. 4!e centra# ban3 is pursuing tig!ter monetary po#icy !i#e
trying to preser7e grot!. Foreign e;c!ange reser7es are bo#stered by
steady or3er remittancesA but a groing current account deGcit =
dri7en by a idening trade gap as import grot! outstrips e;port
e;pansion = cou#d dra don reser7es and dampen GDP grot! in t!e
medium term.
Te!hnology
4!e Spin n 5#ear Detergent uses cryogenic tec!no#ogy to c#ean your
Stains in a ay t!at is economica##y and eco#ogica##y 7iab#e. 4!e use of
dry ice pe##ets a##os for a c#ean met!od of remo7ing dirt and grimeA
!i#e at t!e same time it does not produce any secondary astes.
4!e dry ice medium is c!emica##y neutra#A e#ectrica##y non=conducti7e
and tota##y non=abrasi7e. 4!ere are abso#ute#y no secondary astes
and t!e materia# being remo7ed genera##y becomes #ig!t dry dust t!at
is captured in G#ters. 4!e dry ice b#oc3sA pe##etsA and poders are
s!on in t!e diagram be#o.
it! reference to DetergentsA t!is trans#ated
into an a7erage annua# energy use reduction of *9I. 4!e SP:% %
5&8A$ Detergent i## furt!er reduce energy consumption by 0(I as
compared to current products on t!e mar3et.
O*jecti+e) an' "ction P(an)
4!e primary target for our Grst year on t!e mar3et is residentia#
!omeoners as t!ey are en7ironmenta##y conscientious indi7idua#s and
are attracted by ne inno7ati7e products. 4!ey ere a#so t!e essence
for de7e#oping t!is product so it is important t!at t!ey be t!e Grst to
!a7e t!e opportunity of using our product.
I'ea generation: 4!e concept of t!is energy eKcientA #o cost
Detergent arose from customer comp#aints based on feedbac3
conducted in Nu#y +(().
I'ea )creening: GFK 5O$PO$A4:O%A a company !ic! is concerned
it! t!e comfort and con7enience of its customers considers t!at t!e
ne SP:% % 5&8A$ Detergent is in=#ine it! t!e companyLs obCecti7esA
strategies and resources. 4!is as conGrmed in September after a
meeting !e#d it! GFK 5O$PO$A4:O% e;ecuti7es.
9
Concept 'e+e(opment an' te)ting: De7e#opment too3 one year
it! a Gna# prototype a7ai#ab#e and ready for testing in %o7ember
+(().
Marketing )trategy 'e+e(opment: :n Nanuary +('(A t!e penetration
business strategy as agreed upon as being a cost eBecti7e and
aBordab#e strategy for #aunc!ing t!e ne SP:% % 5&8A$ Detergent.
%u)ine)) ana
i): Fo##oing t!e business ana#ysis comp#eted inDecember +(()A !ic! as inc#uded in t!e mar3eting p#anA it as
determined t!at a return on in7estment i## be ac!ie7ed after 0 years
it! on#y t!e Grst year s!oing year#y #osses. Fo##oing t!e Gft! yearA
it is forecasted t!at GFK 5O$PO$A4:O% i## ma3e appro;imate#y O9
"i##ion proGt on t!eir ne productA SP:% % 5&8A$.
Pro'uct 'e+e(opment: 4!e Gna# prototype as comp#eted in October
+(().
Commercia(i/ation: 4!e product i## be #aunc!ed in Nanuary +('(.
& P's of Marketing(
Produ!t(
4!e product as de7e#oped based on customer feedbac3 and mar3et
researc! conducted on Pa3istani consumers. 4o do soA e !a7e not on#y
ta3en into account consumer concerns about en7ironmentA energyA
aterA po##utionA detergents and noiseA e !a7e anticipated t!ese
e;pectationsA and !a7e no surpassed t!em by designing t!e on#y
detergent t!at addressed a## t!ese issues simu#taneous#y.
"omposition(
A detergent typica##y consists of ionic and anionic surfactants !ic! act
as t!e detergent to remo7e t!e dirt from t!e c#ot!esA perfumeA
10
p!osp!ors !ic! ma3e c#ot!es appear !iter (it is t!ese t!at s!o up
under u#tra7io#et #ig!t)A and for poders antica3ing agents to pre7ent
t!e poder becoming one #arge #ump in t!e presence of moisture. For
#iHuid detergentsA t!e bu#3 of t!e product is aterE for concentrated
#iHuidsA some!at #ess aterA but sti## t!e product is most#y ater.
6io#ogica# #aundry detergents contain enzymes !ic! act
as cata#ysts to DeatD t!e dirt oB of t!e #aundryE t!ese function best at
t!e 3inds of body temperatures found in arm=b#ooded creatures
(*( P5 (./ PF) to 0( P5 ('++ PF)) and i## perform no betterA and
sometimes orseA at !ig!er temperatures. Detergents may !a7e ot!er
additi7es suc! as b#eac!es and fabric softeners and t!ese are usua##y
ad7ertised c#ear#y on t!e pac3ets as se##ing points.
Pla!e
>e p#an to #aunc! t!is product in t!e maCor urban cities in Pa3istanA
name#y &a!oreA Karac!iA :s#amabad and "u#tan. 4!e #aunc! i##
coincide it! t!e %ationa# ,ome s!o occurring in eac! of t!ese cities.
4!e %ationa# ,ome S!o pro7ides GFK 5O$PO$A4:O% it! t!e
opportunity of bringing aareness to t!e mar3etp#ace. 4!e %ationa#
,ome S!os a## ta3e p#ace in t!e spring season amongst t!ese 2
diBerent cities. GFK 5O$PO$A4:O% i## continue to maintain product
a7ai#abi#ity t!roug! t!eir 3ey retai#ers.
Pri!e
4!e prices of spin n c#ear detergent poder for 7arious sizes of
pac3ages are as fo##osE
11
01g 22222222222222222222222222222222 R) 344566
3 1g 22222222222222222222222222222222 R) 44566
766g22222222222222222222222222222222 R) 74566
066g ================================ R) 04566
87g 22222222222222222222222222222222 R) 4566
Promotion
>e !a7e diBerent promotiona# campaigns t!at i## !e#p to bring
aareness to t!is ne product. 4!e Statistics Pa3istan '))/ 5ensus
found t!at on#y ++I of Pa3istanLs popu#ation (/.2 mi##ion) #i7e in rura#
areas. 4!ereforeA as mentioned abo7eA e i## concentrate our #aunc!
in t!e urban areas. As e p#an to #aunc! in maCor cities in Pa3istanA
name#yA &a!oreA :s#amabadA Karac!iA and "u#tanA our #aunc! in eac! of
t!ese cities i## fo##o t!e same pattern.
MICROENVIRONMENT:
4!e factors of t!is en7ironment are e;p#ained be#o:
Supp(ier):
Suppliers are an important link in the company’s overall customer value !elivery
system." #ll $%& corporation approve! a'encies han!le! (y commercial !epartment.
Marketing Interme'iarie):
"ar3eting intermediaries !e#p t!e company to promoteA se##A and
distribute its goods to Gna# buyers. 4!ey inc#ude rese##ersA p!ysica#
distribution GrmsA mar3eting ser7ices agencies and Gnancia#
intermediaries.
:t is 7ery diKcu#t to dea# it! a## t!e !o#esa#ers and retai#ers
indi7idua##y so GFK corporation !as a so#e distribution system.
Cu)tomer):
12
5onsumer mar3ets consist of indi7idua#s and !ouse!o#ds t!at buy
goods and ser7ices for persona# consumption. :n t!e case of our
c!osen product 9SPIN N C#E"R: A a detergent A t!e main customers
our !ouse=i7es because t!ey are t!e ones !o buy detergents.
Competitor):
4!ere are * main p#ayers in t!e detergent industry of Pa3istan.
') 5o#gate=pa#mo#i7e corporation ( 6rite A 8;press poer A 6onus )
+) &e7er 6rot!ers ( Surf A >!ee# )
*) Proctor Q Gamb#e ( Arie# )
Pu*(ic):
4!e companyFs mar3eting en7ironment a#so inc#udes 7arious pub#ics
suc! as A Financia# pub#ics A "edia pub#ics A Go7ernment pub#ics A
5itizen action pub#ics A &oca# pub#ics A :nterna# pub#ics and t!e genera#
pub#ic. Amongst a## t!e pub#ics t!e most important is t!e genera# pub#ic
A because t!ey are t!e ones t!at but t!e product so t!e company
needs to be concerned about t!eir attitudes toard its products.
M"CRO ENVIRONMENT:
4!e factors of t!is en7ironment are e;p#ained be#o:
,emograp;ic):
:n t!e case of 9SPIN N C#E"R: t!e demograp!ics t!at e !a7e found
out are A t!at any !ouseife !o is bot! price sensiti7e as e## as
Hua#ity conscious A be#ongs to any c#assA any occupation A if can aBord
Spin % 5#ear i## buy it.
P)yc;ograp;ic):
Peop#e !o are ambitiousA !ygiene consciousA t!ose !o ant to be
aut!oritati7e are Spin % 5#ear buyersA because !en it comes to
persona#ity 7a#ues t!an no compromise.
Tec;no(ogy:
13
GFK corporation as t!e Grst one to #aunc! in ?po#yt!ene bags.@ 4!is
as a c!ange in tec!no#ogy t!e po#y pac3s donFt get torn oB after
getting et #i3e t!e carton bo;esA so t!is c!ange found a ready mar3et.
Economy:
Spin % 5#ear is a premium Hua#ity detergent at a re#ati7e#y #o price
t!an ot!er detergents of same Hua#ity. 4!is as made possib#e by
#aunc!ing it in po#yt!ene bags so as to cut don cost price.
Market )i/e:
)ue to the launchin' o* !i**erent !eter'ents in sachets + a lar'e num(er o* soap users are
convertin' into !eter'ent users (ecause no, they can a**or! to (uy a !eter'ent at the
price o* soap. -otal per annum sale o* !eter'ents in .akistan is upto 40+000 tons. 4!is
mar3et is groing at a rate of 2.+0I per annum.
Target market:
%orma##y spea3ing detergent is a product !ic! is purc!ased by t!e
!ousei7es but sti## t!ere is a big target mar3et.
emographi!s(
"ge:
Peop#e of a## ages #i3e to ear c#ean c#ot!es.
Gen'er:
"a#e and Fema#e.
!ami(y )i/e:
%o #imit of membersA c#ot!es are to be as!ed.
!ami(y (ife cyc(e:
Moung or o#dA married or sing#e.
Income:
*A2(( and abo7e ( because Spin % 5#ear is not mar3eted in sac!ets so
a person !as to earn t!is muc! so t!at !e can spend at#east 'I of !is
income to buy a sma## pac3 of Spin % 5#ear.)
Occupation:
14
Students A >or3ing peop#e and ,ousei7es.
Socia( c(a)):
e
be#ie7e satisGed emp#oyees i## #ead to better products t!at are
designed and manufactured in a more eKcient ay. Furt!ermoreA at
GFK 5O$PO$A4:O%A e ensure t!at a## our manufacturing processes
are en7ironmenta##y safeA and t!at any manufacturing by=product is
17
proper#y disposed. 4!ereforeA budget is a#so set aside for t!e
en7ironment. 4!e e;ecuti7e and oKce staB sa#aries are a7eraged and
accounted. 4enty percent is added to t!eir sa#ary to account for t!eir
beneGts. OKce supp#ies inc#ude items suc! as computersA softare
#icenses or paper.
Produ!t Laun!hing "ost
4!e product #aunc! costs i## be added to t!e G;ed costs. 4!eseA
!oe7er !a7e been separated out because t!ey on#y app#y to t!e
product #aunc! (i.e. t!e Grst year). Our unit price i## be setA to ensure
t!e product #aunc!ing costs are zero in t!e second year. 4!e tab#e
be#o #ists t!e e;tra cost associated it! #aunc!ing t!e ne product.
+nit "ost ,-aria.le "ost/
Some manufacturing materia#s are e;pandab#e during t!e
manufacturing process. 4!e cost of t!ese types of materia#s depends
on t!e number of units produced. 4o minimize t!e mi#eageA to truc3s
i## be in eac! of t!e four cities speciGed ear#ierA and t!e merc!andise
i## arri7e by train to eac! city #ea7ing from &a!ore.
"'+erti)ing Goa():
Once a company decides !at type of speciGc ad7ertising campaign it
ants to useA it must decide !at approac! s!ou#d carry t!e message.
A company is interested in a number of areas regarding ad7ertisingA
suc! as freHuencyA media impactA media timingA and reac!.
!re>uency refers to t!e a7erage number of times t!at an a7erage
consumer is e;posed to t!e ad7ertising campaign. A company usua##y
estab#is!es freHuency goa#sA !ic! can 7ary for eac! ad7ertising
campaign. For e;amp#eA a company mig!t ant to !a7e t!e a7erage
consumer e;posed to t!e message at #east si; times during t!e
18
ad7ertising campaign. 4!is number mig!t seem !ig!A but in a croded
and competiti7e mar3et repetition is one of t!e best met!ods to
increase t!e productLs 7isibi#ity and to increase company sa#es. 4!e
more e;posure a company desires for its productA t!e more e;pensi7e
t!e ad7ertising campaign. 4!usA often on#y #arge companies can aBord
to !a7e !ig!=freHuency ad7ertisements during a campaign.
Me'ia Impact "edia impact genera##y refers to !o eBecti7e
ad7ertising i## be t!roug! t!e 7arious media out#ets (e.g.A te#e7isionA
:nternetA print). A company must decideA based on its productA t!e best
met!od to ma;imize consumer interest and aareness. For e;amp#eA a
company promoting a ne #aundry detergent mig!t fare better it!
te#e7ision commercia#s rat!er t!an simp#e print ads because more
consumers are #i3e#y to see t!e te#e7ision commercia#. Simi#ar#yA a
company suc! as "ercedes=6enzA !ic! mar3ets e;pensi7e productsA
mig!t ad7ertise in specia#ty car magazines to reac! a !ig! percentage
of its potentia# customers. 6efore any money is spent on any
ad7ertising mediaA a t!oroug! ana#ysis is done of eac! oneLs strengt!s
and ea3nesses in comparison to t!e cost. Once t!e ana#ysis is doneA
t!e company i## ma3e t!e best decision possib#e and embar3 on its
ad7ertising campaign.
Me'ia Timing Anot!er maCor consideration for any company engaging
in an ad7ertising campaign is !en to run t!e ad7ertisements. For
e;amp#eA some companies run ads during t!e !o#idays to promote
season=speciGc products. 4!e ot!er maCor consideration for a company
is !et!er it ants to emp#oy a continuous or pu#sing pattern of
ad7ertisements. 5ontinuous refers to ad7ertisements t!at are run on a
sc!edu#ed basis for a gi7en time period.
4!e ad7antage of t!is tactic is t!at an ad7ertising campaign can run
#onger and mig!t pro7ide more e;posure o7er time. For e;amp#eA a
19
company cou#d run an ad7ertising campaign for a particu#ar product
t!at #asts years it! t!e !ope of 3eeping t!e product in t!e minds of
customers. Pu#sing indicates t!at ad7ertisements i## be sc!edu#ed in a
disproportionate manner it!in a gi7en time frame. 4!usA a company
cou#d run t!irty=to te#e7ision commercia#s o7er a t!ree=or si;=mont!
period to promote t!e speciGc product is ants to se##. 4!e ad7antage
it! t!e pu#sing strategy is tofo#d. 4!e company cou#d spend #ess
money on ad7ertising o7er a s!orter time period but sti## gain t!e same
recognition because t!e ad7ertising campaign is more intense.
Reac; $eac! refers to t!e percentage of customers in t!e target
mar3et !o are e;posed to t!e ad7ertising campaign for a gi7en time
period. A company mig!t !a7e a goa# of reac!ing at #east .( percent of
its target audience during a gi7en time frame. 4!e goa# is to be as
c#ose to '(( percent as possib#eA because t!e more t!e target
audience is e;posed to t!e messageA t!e !ig!er t!e c!ance of future
sa#es.
T;e %o)ton Con)u(ting Group ?%CG@ matriA pro7ides a Grm an
opportunity to assess how well its business units work together. 8ac!
business unit is e7a#uated in terms of to factors: market share and
t!e growth prospects in t!e mar3et. Genera##yA t!e #arger a GrmFs
s!areA t!e stronger its positionA and t!e greater t!e grot! in a mar3etA
t!e better future possibi#ities. Four combinations emerge:
20
• A star represents a business unit t!at !as a !ig! s!are in a
groing mar3et. For e;amp#eA "otoro#a !as a #arge s!are in t!e
rapid#y groing mar3et for ce##u#ar p!ones.
• A question mark resu#ts !en a unit !as a sma## s!are in a
rapid#y groing mar3et. 4!e GrmFs positionA t!enA is not as strong
as it ou#d !a7e been !ad its mar3et s!are been greaterA but
t!ere is an opportunity to gro. For e;amp#eA ,e#ett=Pac3ard
!as a sma## s!are of t!e digita# camera mar3etA but t!is is a 7ery
rapid#y groing mar3et.
• A cash cow resu#ts !en a Grm !as a #arge s!are in a mar3et t!at
is not groingA and may e7en be s!rin3ing. 6rot!er !as a #arge
s!are of t!e typeriter mar3et.
• A dog resu#ts !en a business unit !as a sma## s!are in a mar3et
t!at is not groing. 4!is is genera##y a some!at unattracti7e
situationA a#t!oug! dogs can sti## be proGtab#e in t!e s!ort run.
For e;amp#eA Smit! 5orona !o !as a sma## s!are of t!e
typeriter mar3et.
Firms are usua##y best of it! a portfo#io t!at !as a balance of Grms in
eac! category. 4!e cas! cos tend to generate cash but require little
future investment. On t!e ot!er !andA stars generate some cas!A but
even more cash is needed to invest in the futureSfor researc! and
de7e#opmentA mar3eting campaignsA and bui#ding ne manufacturing
faci#ities. 4!ereforeA a Grm may ta3e e;cess cas! from t!e cas! co
and di7ert it to t!e star.
0 SWOT ,“Strengths1 Opportunities1 Weaknesses1 and
Threats”/
!or eAamp(e: " strength cou(' *e:
• Mour specia#ist mar3eting e;pertise.
• A neA inno7ati7e product or ser7ice.
• &ocation of your business.
• Rua#ity processes and procedures.
21
• Any ot!er aspect of your business t!at adds 7a#ue to your
product or ser7ice.
" weakness cou(' *e:
• &ac3 of mar3eting e;pertise.
• e can summarize from t!e Gndings pro7ided in t!e Situation Ana#ysisA
t!at t!ere is a signiGcant opportunity t!at can be capita#ized on !en
#oo3ing at t!e current dis!as!ing mar3et. 4o pro7e t!is pointA #et us
23
summarize t!e 3ey Gndings of t!e Situation Ana#ysisA name#y: t!e focus
of impro7ements to DetergentsE t!e forecast grot! in t!e Pa3istani
economyE coup#ed it! t!e pro#iferation of !ome impro7ements. 4!ese
t!ree main areas constitute t!e opportunityA to !ic! our inno7ati7e
ne tec!no#ogy s!a## on#y be impro7ed.
:n conc#usionA t!ese t!ree factors are t!e perfect b#end of opportunities
on !ic! our idea can Jouris!. 4!e area of greatest opportunity for
grot! and inno7ationA it!in t!e e;isting Detergent mar3etA #ies in t!e
diBusion of t!e cryogenic c#eaning tec!no#ogy. 4!is cutting=edge
tec!no#ogyA current#y in=use in t!e aerospace industryA and patented
for in=!ome c#eaningA refers to t!e art of ater=and=detergent=free
dis!as!ing. >e are t!en #eft it! spot#ess and bacteria=free Stains
e7ery timeA it!out !a7ing to pre=soa3 before actua##y as!ing. 4!is
tec!no#ogy is t!e anser to noise=reduction demandsA as noise is
e#iminatedA as e## as aterA energy and conscience use. A## in a##A t!e
perfect combination beteen consumers demands of possib#e
upgrades to t!e e;isting Detergents and a ay to capita#ize on mar3et
ma;imization. 4!is i## e7ident#y ta3e t!e mar3et by storm.
Ad7ertising ObCecti7es:
Ad7ertising obCecti7es are t!e communication tas3s to be
accomp#is!ed it! speciGc customers t!at a company is trying to
reac! during a particu#ar time frame. A company t!at ad7ertises
usua##y stri7es to ac!ie7e one of four ad7ertising obCecti7es: tria#A
continuityA brand sitc!ingA and sitc!bac3. >!ic! of t!e four
24
ad7ertising obCecti7es is se#ected usua##y depends on !ere t!e
product is in its #ife cyc#e.
Tria( 4!e purpose of t!e tria# obCecti7e is to encourage customers to
ma3e an initia# purc!ase of a ne product. 5ompanies i## typica##y
emp#oy creati7e ad7ertising strategies in order to cut t!roug! ot!er
competing ad7ertisements. 4!e reason is simp#e: >it!out t!at Grst tria#
of a product by customersA t!ere i## not be any re peat purc!ases.
Continuity 5ontinuity ad7ertising is a strategy to 3eep current
customers using a particu#ar product. 8;isting customers are targeted
and are usua##y pro7ided ne and diBerent information about a product
t!at is designed to bui#d consumer #oya#ty.
%ran' S