ICI Pakistan Limited

Life Sciences Business Animal Health Division

Marketing Plan

Tellilac - Marketing plan June 25th 2012 Background Proteins for human needs mainly come from milk and meat .Milk and meat are so related for human fitness that their collective consumption can be used as a parameter of national health. The countries where the population enjoys better health have necessarily higher consumption of milk and meat, and it is otherwise in developing countries where human health is always at risk. In Pakistan total production of these two essentials milk and meat is far below the national consumption needs. This is despite the fact that Pakistan has sizeable dairy animal population. The milk and meat ratio of Pakistan Livestock is very low when compared to animals in other countries, especially in developed countries. A reasonable increase in dairy heads can ensure a sizeable increase in the yield. The present scenario in Pakistan indicates that dairy farming is going to develop as an industry. It is now apparent that in the days to come dairy use of animals both for milk and meat continue to receive more and more attention. Increased production of milk and meat is a prime and urgent need, if the country needs to meet its protein requirements at a required level. The present production of milk and meat is highly inadequate and is far below the potential of the countrys animal population. This calls for an examination of the present level of production of milk and meat in the country and the potential for increased production. From a national perspective, Pakistan despite, having a huge potential for dairy sector development and registering an increase in total milk production over the years, is failing to meet the needs of the growing population. Our average annual milk production is far below the world average. The productivity is 1,333 liters per animal per lactation in our country where as in developed world it is 6,000 liters. The growth demand is increasing by six to seven percent while the supply is increasing 3.2 percent per annum. In cattle colonies around the urban areas dairy farmers dont have the facility for animal grazing to raise cattle or keep animals during dry period. In these colonies, one alarming factor is the slaughter of newly born calves and of animals as soon as they go dry. The productive life of buffalo is 10 years but in these cattle colonies dairy farmers sell their animals for slaughter as soon as they go dry, often after their 1st lactation. With the increase in demand of protein, milk producers are unable to meet the increasing demands of milk, so after parturition dairy farmers don't nurse the young ones with adequate quantity of milk. Due to deficiency of proper feeding Calves don't grow up to their potential. In rural areas many of the calves die in their early age due to malnutrition and those who survive don't attain the weight up to the potential. To fulfill the needs of the meet and milk in the country it is necessary to provide alternate sources of milk to save the new generation of young calves. Substitute of milk (TELLILAC) is an ideal choice for farmers to nurse the young calves to grow up to their maximum potential and fulfill the needs of the protein shortage in the country and reduce the imports of dry milk and beef. The Animal Health Division of ICI Pakistan is involved in the marketing of veterinary products (manufactured locally as well as imported from reputed principals) for livestock. ICI Pakistan is currently marketing livestock products and has the largest market share in this segment. Our company name, logo and products are well respected and recognized in the industry as market leaders. The current total animal population is estimated at 137m (cattle - 22%, buffalo - 20%, sheep - 19% and goat - 39%).

Estimated current livestock market (not including poultry) is Rs. 2.5billion out of which the anthelmintic segment has 24% share, antibiotics 21% Animal feed 20% and Harmones 21% share. According to our estimates the current number of animals exposed to balanced diet are 3.5% for cattle & buffalo, and negligible in sheep & goat. Retarded growth is one of the major problems exist in livestock population. The main cause of low usage is lack of awareness and economic condition of the farmer. ICI is launching CMR 1st time at its platform in Pakistan from a reputable company having annual turn over of Rs 75billion US$ per year, 149,000 employees world wide, operating in 63 countries with 165 production locations in 24 countries and is the worlds biggest animal feed producer. The Product Tellilac is a complete feed for young new born calves. Tellilac meets the demands and standards for feeding methods throughout the world. Tellilac maximises growth and rumen development as the microelements (Vitamins and Minerals) have adjusted to hot climates and highly suitable for tropical breeds. Tellilac contains Dairy products, High quality Vegetable protein, Vegetable fat, Vitamins, Minerals and Antioxidant. Packing Product is available in 10kg convenient packing Tellilac would offer following advantages. 1. 2. 3. 4. 5. 6. Composition of cow milk does not remain same throughout the year, where as Tellilac will provide uniform supply of ingredients throughout the year. Tellilac will lower the risk of Diarrhoea. Farmers keep on changing feeding programme to enhance Fat and protein level that may cause diarrhoea in young calves. Iron content in Tellilac is 30 times higher as compared to fresh milk which prevents anaemic condition in young calves. Tellilac contains a natural growth promoter, which will provide an optimal growth of the calves. Tellilac is a safe alternative for fresh milk and exclude problems with a high cell count in fresh milk. Tellilac reduce the chances of indigestion. Fresh milk with a high cell count can contaminate the calf with staphylococcus bacteria and milk with penicillin can induce a resistance for bacteria and digestion problems. Tellilac will reduce the risk of Paratuberclosis infections on dairy farms. Tellilac provide healthy well-developed calves, which leads to high producer cows.

7. 8.

Feeding Instrcutions

Take approximately half of the needed amount of water at 50C Gradually add the required amount of powder (using a measuring glass or weighing scale), while stirring strongly, until smooth milk is obtained. Add hot or cold water up to the desired amount, ensuring a temperature of 40C by using a thermometer. Feed the calves immediately while the milk still is approximately 40C. They can be fed via artificial nipples or trained to drink from a bucket. To avoid diarrhea, clean and sanitize all feeding equipment between each feeding! In addition, make sure to use high quality, clean water

Calves feeding schedule

Buffalo calves 1kg: 06 liter water Cow calves 1kg: 10 Liter water
F eedingS chedule for C ow C alves
Age Telilac Plus Calf Starter Feed Kg/Day
ad.lib ad.lib ad.lib ad.lib ad.lib ad.lib ad.lib ad.lib ad.lib ad.lib ad.lib ad.lib 1.5 1-3 days 4-7 days 2 week 3 week 4 week 5 week 6 week 7 week 8 week 9 week 10 week 11 week 12 week 4 month 5 month 6 month 7 month 8 month until breeding
th th th th th th th th th th th th th th th th

F eedingS chedule for Buffalo Calves

Age Whole natural milk Telilac Plus Times/day / liters
4 x 0.5 liter 4 x 1.0 liter 3 x 1.0 liter 3 x 1.3 liter 3 x 1.4 liter 3 x 1.4 liter 3 x 1.0 liter 3 x 0.5 liter -

Calf Starter Feed Kg/Day

ad.lib ad.lib ad.lib ad.lib ad.lib ad.lib ad.lib ad.lib ad.lib ad.lib ad.lib ad.lib 1.5 -

Times/ day/ liters

1-3 days 4-7 days 2 week 3 week 4 week 5 week 6 week 7 week 8 week 9 week 10 week 11 week 12 week 4 month 5 month 6 month 7 month 8 month until breeding
th th th th th th th th th th th th th th th th

Times/day/ liters
5 x unlimited colostrum 4 x 1.0 liter milk 4 x 1.6 liter milk 4 x 1.1 liter milk 4 x 1.1 liter milk 3 x 1.3 liter milk 3 x 1.3 liter milk 3 x 1.4 liter milk 3 x 1.4 liter milk 3 x 1.0 liter milk 3 x 0.5 liter milk -

5 x unlimited colostrum 2 x 1.5 liter 2 x 1.7 liter 2 x 2.0 liter 2 x 3.0 liter 2 x 3.0 liter 2 x 3.0 liter 2 x 3.0 liter 2 x 3.0 liter 2 x 2.5 liter 2 x 2.5 liter 2 x 2.0 liter 2 x 2.0 liter -

Marketing Objectives
To achieve Ex ICI sales of 6400 bags of Tellilac 10kg in 1 st year of launch To create brand awareness among farmers, professionals and distributors. To establish concept of CMR among farmers and professionals To introduce Tellilac in NGOs, Government institutions and Calf fattening farms.

Market requirement is to educate farmers, Veterinarians and professionals to recognize the need of protein shortage in the country and spare fresh milk as much as possible to benefit themselves and nation as well. Geographic spread of farmers is difficult and expensive to reach. We will benefit by our field force already located in all livestock populated areas. We will use our Vanda distributors 135 in number along with sub distributors 250-300 and chemists as stockist. Each Area Manager will plan product awareness programme at these outlets.

Target Area The product will be launched nationally. All areas with milk price of Rs. 50 and above would be included in target areas. Field force reaches a large population of farmers. By educating Vets/paravets and farmers we would be able to extend product information to most of the locations. Our special focus would be urbane areas Target Customers All the animal owners who are enjoying milk price Rs 50/lit. Govt institutions especially Army which is a major purchaser of Denkamilk will be focused. Another segment is NGOs like Idara-e-kissan, LDDB meat project , Pakistan dairy development company and milk collection companies like Nestle milk Pack, Haleeb foods, Engro and Nirala dairies will be focused. They do have team of Doctors and technicians who visit farms and advise farmers ways to improve health of Livestock. All Area Managers will arrange meetings with these milk collection companies on regional basis. A multimedia presentation will be given to their team about Tellilac. It would be emphasized that Tellilac will help them to achieve their milk collection target. Big Livestock Farms like Sweet Water, Sapphire etc. will be approached directly to convince them that Tellilac is a better choice for them commercially.

SWOT ANALYSIS
STRENGTHS: ICI' s high quality image. Cargill a worlds biggest feed Manufacturing Company Professionally trained sales force. OPPORTUNITY: Vast market. Low penetration of competition in the market. Economic benefit by using CMR. WEAKNESS: Small packing unavailability Mixing and usage temperature 50c & 40c.

THREATS: Lower milk prices in rural areas Low purchasing capacity of farmers. Uneducated farmers, difficult to convince Difficult to change the old habits of farmers. Farmer will not follow instructions of product use

COMPETITION Following products are already available in the Market in competition of Tellilac.

Serial No. 1. 2. 3.

Product

Company

Pack size (Kg) 25 25 25

Trade Price (Rs) 3600 3200 4200

Denkami lk Joosten Sprayfo red

Prix Pharmaceuticals Prix Pharmaceuticals Profarm Pakistan

At the moment these products are not major threat for Tellilac, however with the passage of time when our sales team create awareness among farmers, competition may get advantage of that awareness by reducing their prices. At present no one has sales team like ICI. So they are getting slow response according to their sales team potential. Following seems to be major threat in order of priority.

Serial No. 1. 2. 3.

Product

Company

Pack size (Kg) 25 25 25

Trade Price (Rs) 3600 3200 4200

Market Share (%) 75 5 15

Denkami lk Joosten Sprayfo red

Prix Pharmaceutical s Prix Pharmaceutical s Profarm Pakistan

Tellilac Vs Competitor Tellilac would be highlighted as a better product from worlds biggest company. Better Quality Service at doorstep of the Farmer Low risk of diarrhoea and mortality

MARKETING STRATEGY Objectives a) b) c) d) To introduce the concept of using Calf Milk replacer. To get market leadership in the CMR market. To establish ICI image as a company providing better economic output for farmers. To take advantage of the existing sales force.

Price Tellilac 10kg pack is priced as below Trade Price Tellilac 10kg 2000 MRP 2200

Introductory price of Rs. 2000 would be offered to the trade until the product is established in the market, after that price would be revised upward.
Distribution Product would be distributed directly to institutions and trade. We will use the Vanda distributors and Sub-distributors channel to introduce the product at gross root level. Product will be made available to all Vanda distributors and sub-distributors. AMs would provide a list of Vanda dealers and sub-dealers where milk price is above Rs. 50/ liter. There are about 130 Vanda dealers and 250-300 sub-dealers which will be used as stockists.. Packing Tellilac is presented in 10 kg bag. Press Advertisement The publication will help us in creating brand awareness in the market. A full/Half/Quarter page advertisxement will be placed in AVN/News & Views for 03 months August September and October 2012. Sales Force The selling technique would focus on the team to create a pull for the product. The target customers would be getting information about the product from different sources that are through sales team and advertisement. A farmer awareness campaign about Tellilac will be run by the sales team in collaboration with NGOs and milk collection companies

PROMOTIONAL PLAN Sales Team The product would be launched through our sales team. The team would be given product training covering the early Calf care, handling promotional literature & objections. PM/BDM/MM will visit the team in their respective areas to observe the response of the product in the market Pre lunch Meeting One-day pre launch meeting will be arranged in Lahore in which All the sales team would be invited. The meeting would provide the product knowledge and strategy to combat competition the sales team. PM would visit the teams in their respective areas to see the response of the product in the market. Professional Gathering The sales team would conduct professional/Farmer gatherings at smaller cities/towns to introduce our products to area professional. Our team normally does such gatherings for other products currently promoted by them. Literature Promotional literature 10 per person will be provided to the field force for promoting the product. Giveaways The following giveaways have planned to be provided to the team: Key chains in 1st phase of launch. Caps for Farmers in 2nd phase of launch

Promotional Material
The Stockists play a vital role in making a product successful. In order to generate their interest and give them a constant reminder Banners would be displayed on their shops. These banners will also be used in all Farmer gatherings . A product flyer, which mentioned the special introductory price, would be distributed among farmer and professional.

Financials
Promotional expenses

Product Keychain Caps Total

Volume 6800 2000

Rate 10.00 40

Value (Rs) 68000 80000 20200

Summary
When Telilac Plus as well as natural milk is given, it is best to mix them before feeding. It is advised to use good quality hay. Silages not recommended for calves under 7 months of age. After 7 months, it is possible to feed 50% good quality hay and 50% silages. Make sure the calf has access to clean, free-choice water Calves can be weaned if they eat minimum 1 kg calf starter feed per day for at least 3 days in a row.

General Guidelines
A good quality palatable starter (min 22% protein) should be on offer from day 5. Feed to appetite, is preferable to ad lib feeding. Calves prefer to have calf starter in a shallow bowl, one in which they can scrape their tongues under the grain. They consume more starter when they are able to reach the bottom of the container. Deep containers are less attractive to calves as accumulated feed becomes spoiled with saliva and calves find it physically more challenging to get at the feed. All buckets and containers should be emptied and cleaned daily. Calves should not be weaned until they are eating 900 grams of starter per day for 3 consecutive days. Calf starter with considerable molasses may freeze in winter into frozen lumps and may clump in the hot humid summer months. Calf starter with excessive molasses may attract flies in the summer. Ensure adequate fresh, clean water is available.

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