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FINAL PROJECT OF MARKETING MANAGEMENT

Submitted by:
Asghar Ali

Submitted to:
Mr. Ahmad Bilal

TABLE OF CONTENTS:
Executive summary Marketing objectives Marketing plans Hypothesis # 1 Hypothesis # 2 Questionnaire Situational analysis Big idea Positioning and differential advantage Target market and target demand Demand forecast Market segmentation Differential advantage Marketing mix (4 Ps) Consumer relationship management Conclusion

EXECUTIVE SUMMARY
This report covers the repositioning of the TARGET DETERGENT POEDER which is a project for our subject of Marketing Management course in our 3rd Semester at the BAHRIA UNIVERSITY. When we thought to conduct a search, we face a chain of competitors in the market including a large number of competitors like Arial, bonus, surf excel, wheel and many others. It was seems to be a really tough job but we develop courage in our self and venture to conduct the search in particular target market. In this process I began by analyzing Targets micro and macro environment. This is then followed by an audit of Targets Marketing Objectives, Swot analysis, Marketing mix and to change the packaging. We will then focus on the productivity and finally conclude by analyzing the marketing functions such as products, price, distribution, promotion and sales force.

2. MARKETING OBJECTIVES
The objective of doing this project on the Target detergent powder was to check the causes of less market share of detergent. In this project, we survey the markets to get the idea of consumer buying behavior. We analyzed consumer behavior and we graphically analyzed the market to check the target market and income level of target customers. For this purpose we have developed the hypothesis and made some market research based on the market survey, the survey of the distribution company (biz channel) we also made questionnaire which cover both the qualitative as well as quantitative data with the help of this information we will develop a six months marketing plans. These plans will help us getting rid of threats and make us able to avail the opportunities. With the information, we will get from the above procedures the necessary changes will make in the recent marketing plans of the marketing unit. This

plan will help us in getting better market share and restoring the present customers.

CORE OBJECTIVES AND PLANS:

The objectives are as follows:-

1. 2. 3. 2003. 4. profits. 5.

To get product manufactured and placed within 2 months. To develop complete promotion program for next six months. To improve the market share of the local market by the end of year

To concentrate on the local market share in first year rather than

Initially, start with a single product.

We have developed to hypothesis, which will help us in determining the threats and opportunities and will also help us in making a one-year business plan. With the help of this hypothesis we will also check the position of the product in the market.

HYPOTHESEIS # 1:
So far as the less sale of target detergent powder is concerned, we have developed a hypothesis, which defines the factors, which are the main causes of less market share. These factors are related with inappropriate placing insufficient promotion, low quality, social factors, psychological factors and trend. 1) The less market share of the Target detergent powder is due to the unavailability of the detergent on the maximum outlets. The distributional channels are also insufficient. This is not available in most sectors in Islamabad as well as in Rawalpindi.

2) The most consumers of detergent powder dont even know about the target detergent powder because the promotional channels are also ineffective. 3) The most important factor, which has the important impact on the market share of the Target detergent powder, is the low quality product. 4) The mostly consumer of detergent powders use to purchase the surf detergent because of the general trend based on being the pioneer in the world of detergent powders. 5) Due to the poor customer relation management the Target detergent powder is not able to get the feedback from the consumers. 6) Because of being late in the line detergents the Target detergent powder is being affected by the general trend of using the other detergents like surf excel, bonus, wheel and Ariel.

HYPOTHSIS # 2:
The consumers of detergent powders use the Target because of the image of the company and they dont want to use the soap and fewer prices. 1) T.K limited a company of U.K has a good image in the mind of consumers. So the consumers use this detergent powder. 2) The less price of Target also attracts the consumers of middle class, which dont want to use the washing soaps. 3) The consumers having large families with less income level also use this detergent

Research Methodology:
In this project, we used questionnaire for our research methodology. In questionnaire we applied quantitative approach to analysis of consumer buying behavior, decision process of consumer, consumers impulse buying & comparison of posh and ordinary areas.

QUESTIONAIRE:
I developed a questionnaire for getting direct information from the end consumers. We had used the close-ended questioners. These questions will be close ended and will help us in getting the data will be qualitative in nature. With the help of these questioners we will get the information about the problems, which our product is facing in market. This will also help us in getting information about the position of our product in the minds of the customers. This data will also help us to now the demand of the customers and the needs that they want to fulfill their need. We will be able to increase the satisfaction level of our customers also. We will also be able to now the threats that the product is facing in this stage. This will be a good form of feed back from the customers and with the help of these questioners we will also be able to introduce the product infant of our customers. After assessing the data we will get the company will be able to make the amendments in its plans.

QUESTIONAIR FOR MARKET SURVEY


We are the students of Bahria University and we want to relaunch the target detergent powder. So we need a feed back from the users of detergent as well as the users of the washing soap.

MONTHLY INCOME OF HOUSE

MONTHLY HOME BUDGET FOR DETERGENTS

NAME OF PRODUCT IN USE

1.

Are you satisfied with the detergents you are using? a) b) c) d) Very Happy Satisfied O.K. Not Satisfied

2.

If unsatisfied, what may be the reasons? a) b) c) d) Cost is high. Quality is low. Quality is good, though cost is high. Shape of products is uncomfortable.

4) PERFORMANCE AND PRICE: Price affects my purchasing decision I can pay a high for a good detergent I prefer high price detergents

2.

Do you care about the company of detergent while shopping?

a) b) c) 3.

Yes Some Times Not at All

What products you like to purchase? a) b) c) d) e) f) Surf Excel. Surf. Wheel. Target. Ariel. Any other.

4.

Are you chemical conscious, which are used in detergents? a) b) c) Yes Some Times No

5. What purchasing flexibility level you have, if a new product is introduced? a) b) c) d) e) Up to 0% Up to 25% Up to 50% Up to 75% Up to 100%

6.

Do you need/expect a new detergent product? a) b) c) Yes No Neutral

7.

What product you spend most of your monthly budget?

a) b) c) d) 8.

Detergent Soap. Detergent Powders Bleach. Sanitary Detergent.

How a new product is desirable to you? a) b) c) It should be costly & of quality. It should have compromise on quality & cost. It should have quality but lower cost.

SWOT ANALYSIS:
With the help of the market research, which we had made, we are able to know the strong nesses opportunities threats and week nesses. The target detergent is facing this time. We will have to improve the image of the product by doing some changes in the promotion and placing strategy.

WEAKNESSES.

The data collected with the help of the questioners has helped us to determine the threats the target detergent powder is facing this time. UNSATISFACTION. First of all the price of the product is more than the expectations of the consumers. And the consumers are in need of some improvement, which the detergent should, made in the price packaging and the name of the product. DISTRIBUTIOON. The distribution channel is totally unable to meet the requirements of the market share. So we will improve the efficiency of the Distribution Company. PROMOTION The promotional channel is also week so the company will have to improve the promotion of the product in the prospects mind. Contract with the evernew Concept private limited will be made. This agency has a good experience of starting affective advertising campaigns.

OPPORTUNITIES. So we will improve the efficiency of the distribution company and if the don't do it well with in two months the new PROMOTION AND

ADVERTISING. A new advertising company will be contracted (Ever new Concept private limited). This agency has a good experience of starting affective advertising campaigns. CHANGE. The image of the Target detergent powder will be improved by changing its name from "Target" to "Super Target" detergent powder and the new packaging will made. In this entire environment the packaging will also be changed and the cost will also be reduced in the packaging.

STRONGNESS.

EXPERIENCE

T.K limited has a good experience of making detergent powders and the company has a large number of fixed and current assets

LOWCOST

The cost of production is also less because of the use of best technology in production units. I possessed a house whose ground floor structure was very suitable for manufacturing process. This gave me an advantage of not bothering about costs involved in hiring of a place, which is suitable, accessible & costly.

FIRST PRIORITY.

So the sale is less concerned but the image is the most important factor for company. Firstly, we will launch an affective

advertising campaign and in the mean while, the (biz channel) the distribution agency will place into maximum outlets. Secondly the customers are satisfied with the quality of the product and harmful chemicals are not used in this product and we can get better results by catering the chemical conscious customers. And the second opportunity is this that this is a quality product with fewer prices, which no one can offer.

THREATS.
NEW IN THE MARKET.

The brand is in its initial stages so the customers are not aware of the image as well as quality of the brand. So the company will take time to get the more market share and this is the main problem for the company to be late in the market.

PLANS:

In the first six months, the company will focus on improving the image of product with proper advertising plans and will make it possible to place the product to maximum outlets and the company will totally focus on improving market share by pull customer strategy. After these six months, the company will improve the marketing budget and the distribution will be improved to first large 15 cities of Pakistan.

BIG IDEA:
A central idea, which we have developed to change the preferences and inclination of impulse buying of our target consumers and that, is directly related to positioning. We declare it as a slogan to our new and improved product i.e.

Highly affordable for commonly with a lot of features and advantages.

3.

POSITIONING & DIFFERNTIAL ADVANTAGE

POSITIONING OF PRODUCT:After conducting all market research & setting up marketing objectives, I have to position product Target Detergent Powder into the market. Presently, there are many big giants of same product. Even then, I had much scope of penetrating into the market. I selected lower income strata where people have fewer budgets for monthly domestic households. By targeting lower income group, I feel there are three main competitors in the local market:i. ii. iii. iv. Ariel Detergent Powder. Bonus Detergent Powder. Wheal Detergent Powder Local small manufacturers.

The prices of these products are targeted at the lower income group. My strategy is to position my product among same target group with price competitiveness.

4.

TARGET MARKET & MARKET DEMAND:

The target market for Super Target Detergent Powder is, as discussed above, lower income group. Initially, the product will be supplied to following local areas:-

MARKET SURVEY: By keeping are customers in mind we visited the different areas of Islamabad and Rawalpindi. With the help of this survey, we are able to get the information about our potential buyers and potential of the market as well.

ISLAMABAD.

S.No. Area i. ii. iii. iv. v. vi. Barry Imam. Saidpur. Malpur. Chak Shehzad. Tarlai. Other areas.

No. Of Houses. 3000 3000 3000 3000 5000 10000 27000

RAWALPINDI
S.No. Area i. ii. iii. iv. v. Internal areas of city. Pirwadhai. Misrial. Muslim Town. Shakariyal. No. Of Houses. 10000 10000 30000 30000 20000 100000 Total Target Group Houses These are some of the local areas their more than 90% population belongs to lower strata of society. 127000

DEMAND FORECAST:
The demand for detergent powders is very high. The above population forms the targeted 5% of total local market share. Every household consumer has demand for the product. A market research shows that demand for different products is observed in following ratio in above local target markets: -

i. ii. iii. iv.

Ariel Detergent Powder Bonus Detergent Power Wheal Detergent Powder. Others.

35% 15% 14% 36%

The demand for these products is elastic. This means that if the cost varies, the demand varies. This thing is a good sign for marketing plan (pricing) of the proposed product.

SATISFACTION LEVEL:

The satisfaction level is good for this product. The consumers are satisfied with quality of the product so the customers are loyal to this product. GRAPH.

SATISFACTION LEVEL
HAPPY

SATISFIED

OK

NOT SATISFIED

QUALITY CONSCIOUS LEVEL WITH INCOME LEVEL:

QUALITY AND INCOME


INCOME LEVEL

30000 25000 20000 15000 10000 5000 0 1 2 3 4 5 6

INCOME QUALITY

QUALITY LEVEL

Graph of the demand

COMPITETION

40 35 30 25 20 15 10 5 0

USAGE

USAGE

COMPANIES

USAGE LEVEL OF SOAP AND DETERGENT

USAGE RATIO

SOAP DETERGENT

MARKET SEGMENTATION
We have divided the market segment into two segments by keeping in mind the potential customers and placing of the product. i. Geographical Segmentation. ii. Segmentation by income.

DIFFERENTIAL ADVANTAGE:
Super Target Detergent Powder will try to have competitive edge over its pricing as the company is highly concerned with getting the maximum market share rather than increasing the amount of sales. So this approach will help the company in getting a differential advantage over the other competitors.

MARKETING MIX (4 Ps)


Now comes the final stage, which leads to launching of the product into the market.

PRODUCT:
The product, I have decided, to be single at the earlier stage. After penetrating into the market, I will venture to increase marketing mix. The name of the product is TARGET DETERGENT POWDER. Basically, the powder is cloths washing powder, which will have following attributes: i. ii. iii. It will be light blue in color so as to give blue liquid impression. Mixing least chemicals will produce it. It would be safe for skin health.

iv.

It will improve the shine in the clothes. It will not be harmful for the color of clothes.

v.

PRICING:
Price comparison with other brands.

Brands.
Ariel Bonus Target Surfexel

Prices per kg.


120 35 112 125

Graph.

price 150 100


price

50 0 ariel bonus target surfexel

As I have targeted lower income group, the pricing policy has to be accordingly. The product would be available at low price and we will improve the quality: -

i. ii.

Full bag (1 kg) Half bag ( kg)

Rs.112.00 Rs.60.00

iii. iv.

Quarter bag ( kg) Small pack (100 gm)

Rs.32.00 Rs.5.00

This price is even less than the existing products. This pricing policy may at initial stage be costly, but once the product is penetrated into the market, it would be in position to change its price a little bit.

MARKET PENETRATING STRATEGY.. We have decided to get the maximum share by applying the penetration strategy. So the price will be less and the quality will be high.

GOOD PRICING STRATEGY. The company has a quality detergent, which has a maximum power to clean the clothes, and the price is also low. So the pricing strategy will be good and the market share will increase by this strategy.

DISTRIBUTION:

The company will change the distribution plans and will distribute the product to maximum outlets. The door-to-door distribution policy will be made which will also made the distribution more affective.

Vertical Marketing System

In the distribution process there will be a systematic way between the distributors, whole sellers, retailers and the company. The company will made a contract with all these and will check the distribution with its own resources as well. In this way there will be check on the work of distribution and all the negligence of the distributors will be identified at any stage.

Sales persons.

Each distributor will hire the sales persons, which will be good in communicational skills. Each sales person will be given a specific are and the sales person will also be given some specific target about the increase in the sales of the allocated are on the yearly bases. The sales person will show any negligence will be warned or fired.

Push strategy

By applying this strategy more incentives will be given to the distributors whole sellers and retailers. With the help of this strategy the company will be in position to attract the customers with the help of whole sellers and retailers with the combination of push strategy and penetrating strategy.

PROMOTION:

This is the last but most important factor of marketing strategy. Promotion of the product is very important and is instrumental in success of the product. We will adopt the following promotional strategies: -

Price discounts. A special offer of the sale discount on the each volume level. And the special offer will be given on the purchase of more than five kgs. This promotional price discount will be only for a limited time.

Social campaigns. The company will also give some portion of the profit to some social organization which work for the rights of women in our counter it will be given a proper coverage with the help of television channels.

Integrating market strategy

i.

Advertisements will be made with help of integrating market strategy and with help of FM 100 and FM 101.

Below the line advertising. Advertisement through banners billboards brochures, flyers and handouts.

Promotion campaigns with the help of other companies. Contracts with some companies manufacturing related products will be contacted and contracts will be made to improve the sales of the product by combine promotional policies. Like the companies manufacturing washing machine or producing clothes and ready mead garments.

Personal selling Sales persons will be hired which will be given some are this personal selling will introduce the product to the new customers and will be able to get the feed back for the benefit of company to reduce the dissatisfaction of the customers and to improve the promotion. The door to door selling will improve the sales but it will also help us in promoting the product and developing the image of product in customers mind.

CONSUMER RELATIONSHIP MANAGEMENT.


Keeping in mind the present scenario and the circumstances it is necessary to develop a strong relationship of confidence between the company and the customer. So a new department of consumer relationship management will be made. It will improve the flow of feed back from the consumers to the company. This department will get the important data and will make it possible to remove the problems, which the consumers are

facing. This will also support the promotion of the product and a strong relation will be developed between the company and the consumers. This will also help the company to improve the quality of the product.

Market research office.

Another department will be made which will help the company to do the market research for getting the new ideas from the mind of customers. This department will also get the feed back from the distributors as well as resellers. This method will improve the flow of feedback and the flow of information will be better and faster.

Idea screening.

All the ideas will be first analyzed and then the work on them will be started. The company will not start any other category or line of the product till next two years. The ideas related with the super target will be screened and research on them will be made. And the person who will give the good idea will be given reworded.

RESEARCH FOR ADVERTISING.

The advertising company will again made the market research and will analyze the current market situation which will lead to a new market advertising plan for attracting customers and increasing the market share.

PACKAGING:

As we all know, packaging is by itself a sales person of the product. A shaping person walks through the grails of a store and is attracted by all those products, which have some attraction for him.

My product, though aimed at being low cost, will have following packaging policy: i. Less expensive. ii. Shocking Color. iii. Urdu inscription. These, I believe will attract the customers I want to aim at. The weight of the product serial no. Of the product. The methods of using the detergent for getting best results will be written on packaging paper. In addition with these things, the E-mail address of the company will also be written. The product will be packed in this way that it will protect the product as well as its quality and will be safe from the children.

LABELING. All the necessary information about the product will be written on the product and the date of production the weight of the product help line number address of the company and the web address will also be written on the product. All the details about the use of the product will be written on the label of the product.

CONCLUSION:
Some one very rightly said, When you dont know where to go, any road will lead you there. This axiom holds truth in the case of planning. My marketing planning definitely tells me where I am to go, and how to reach my destination. It is only implementation phase, which will matter now.

After having formulated my marketing strategy, I feel confident to implement it as desired. I hope with my product and good planning I can get the desired results within stipulated time.

RECOMMENDATIONS.
We had planed the project according to the need and demand of the product after keeping in mind the total aspects of the market. And to fulfill the need of the customers to the maximum level. All the plans will be implemented for the given time after that the new strategy will be developed to do the best in the benefits of both customers as well as the company.

SOURCES.
1. ARORA BUSINESS MEGAZINE. 2. PHILIP COTLER

3. MARKET RESEARCH. 4. BIZ CHANNEL DISTRIBUTION UNIT.

5. INTER NET.