Forhan Division Zonite Products Corp. is a well established and reputed company in world with a large series of its products having different verities in term taste. Forhan's is one of the most prominent products of Forhan Division Zonite Products Corp. Our project is to introduce a new orange flavored Forhan's toothpaste which is specially prepared for kids which is very popular in UK market. Our aim is to produce best quality product for kids all over the world to make the market more attractive for our products. As our company believes that quality is our product, so therefore our company has prepared the product according to the best quality standards.
In order to complete this report I have selected this particular product name Forhans which is not popular as other oral products.
MARKET SELECTION PROCESS & ENVIRONMENTAL ANALYSIS
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It is the first step to develop a marketing plan to introduce this new product into the Pakistani market. The main purpose of this analysis is to discover the distribution trends, company's product and most importantly the situation of the markets in which the company has decided to compete in.
It includes the following two steps:
- Internal analysis
- External analysis
Our three fundamental values are--------caring, Global Networking and continuous improvement are part of everything we do.Mission statement:
To provide Forhan's with a significant competitive advantage by reducing the total delivered cost, extending the technology resources and developing the excellence in purchasing, logistics and sourcing process.Market share:
Forhan Division Zonite Products is an exceptionally renowned brand when we talk about oral care. Forhan's launched many products keeping in mind the preferences of its customers. Its own the 26% share of the whole oral market and it is on the top as a market leader of oral hygiene.Customer loyalty:
Forhan Division Zonite Products Corp. has been serving its customers all over the world for a long time so Forhan has made a large of loyal customers by fulfilling their demand to their perceived level and satisfaction.
HOFSTEDE CULTURAL DIMENSION THEORYCulture as a modern factor- Collectivism or individualism:
The culture exist is based on collectivism and religion is very important factor which affects the people trend about a product. Pakistan is a Muslim country and it has strong ties with other Muslim countries. As people are more aware with the world issues so in order to launch a product into country like Pakistan we will look into the people approach to the product manufactured outside the world. As Pakistan has no diplomatic relations with Israel so people are definitely will reject any product which has been manufactured or distributed through Israel. Our product going to be manufactured in United Kingdom so we are expecting no such issue towards our product.
In order going to be manufactured in UK according to the health's strict rules and regulations, people in Pakistan are becoming more health conscious about their kids and people there prefer products made in western countries because of good qualities and hygienic reason. On the other hand if this product has been introduced in China, there will some other issue like people in china prefer in buying their own countries product.
Macro: The macro environmental analysis consist of larger societal forces that affect the micro environment including demographic, economic, natural, technological, political and cultural forces.
Political factors play a vital role for the business prevailing in the country. If the government is in active then the company advances at a standard rate but on the other had a drastic fall can be seen.
If a country experience inflation then it will have a negative impact on the businesses running in that country. So our product will directly influenced by this factor.
The main forces affecting our decisions about our product are social and cultural forces. Before taking any decision we have to keep in mind the religious and cultural factors for our survival in the industry because people will repel the product that their religion and culture do not prefer.
Always on Time
Marked to Standard
We have to keep our technology and techniques up to date for keeping our product preferable in the market.
The micro environment consist of factors close to the company that affects its ability to serve its customers - the company, supplier, market intermediaries, customer market, competitors and publics.
The strength of Forhan is as follow:-
- Qualified sales staff
- Strong financial backup
- Orange Gel:-
First time in the Pakistani market we are going to introduce the tooth paste with orange gel. It will provide you the maximum freshness in your mouth through out the day. This will keep fighting against bacterial actions in your mouth.
- Due to high rate of taxes our prices will be high
- Giant competitors like Pepsodent, Colgate and Close-up
In the opportunities of the Forhan orange are...
- Large investment
- Intensive distribution
- Stable economic position will boost the sale of product.
In the threats the Forhan orange feels there are....
- Chances of failure:- As the company is new in the market, may be people accept the new taste or may be reject the new product. The company has no idea of its chances of success.
- Competitors:- In Pakistan there are many companies in the field of toothpaste manufacturing so there is a huge rate of competition in the market. Some international companies are also offering their product of this category.
- Unstable political conditions
Strategy is a decision which will affect all the subsequent tactics. Marketing strategies are the means by which objectives will be achieved. It reflects the company best opinion as to how it can most profitably apply its skills and resources in the marketplace. Market strategy is the broad statement of ways in which a company sets out to achieve its objectives. Strategies endows us with a broad direction directing the way through which we can achieve the desired position or objectives.
- Market segmentation
- Market targeting
- Market positioning
Markets consist of buyers and buyers differ in one or more ways. They may differ in wants, resources, locations, buying attitudes and buying practices. Dividing a market into smaller group of buyers with distinct needs, characteristics or behaviors who might require separate products or market mix. This is what we called it market segmentation.
To target a market we have divided our market on the basis of four variables:
We have divided Pakistan into four segments on the basis of provinces. We start from Punjab province which is biggest in population and more prosperous than others provinces.Demographic:
The basis selected variable from demographic segmentation is age. Our product Forhan (junior) is specifically for kids. This is why we will target the kids age of 4-9years old.Psychographic:
Psychographic segmentation has been done on the basis of social class. We will target the middle class and high class.Behavioral:
According to national survey by Forhan Division Zonite Products Corp. only 16% of population of Pakistan has been using the toothpaste as a mean of daily oral cleaning. But this trend has been changing now as many people have start using toothpaste for cleaning their teeth. Kids have been especially advised by doctors to use toothpaste to clean their teeth. So in order to attract the kids we have introduce orange flavor Forhan toothpaste.Market Targeting
The firm now has evaluated the various segments and decide how many and which segment it can serve best. A target market consists of a set of buyers who share common needs or charters tics that the company decides to serve.
Forhan junior by Forhan Division Zonite Products Corp. will now plan to be part of besieged customer group (children). It is basically orange cooing crystal gel that is specifically manufactured for kids from age 4 to 9 years old. This flavor is preferred by the majority of kids so they would love to try this new flavor.Market positioning:
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In planning the positioning strategies we have prepare a positioning map. We want our customers to get the quality product at a price which is in their budget limit.
Our product is best in quality and price wise it is cheaper than other Close-up and Pepsodent product. (answer, 2000)
MARKETING MIX STRATEGYTACTICS:
Tactics include all the techniques and methodologies used to achieve the objectives. More precisely, the way we get a hold on our objectives and provide the detail of strategies via individual tactical tool.
It includes marketing mix which is stated:
Price has been a major factor affecting the buyer's choice. Price is the only element in the marketing mix that produces revenues as our required audiences are kids so our price range will be according to the quantity and size of the tube. We will set prices of our product by taking account all internal factors including marketing objectives, marketing mix strategy, costs etc and external factors including the nature of the market and demand, competition and some other environmental factors like economy and government issues. The price varies as we are launching our product in three different sizes occupying our targeted consumers. The product will consist of a 30g, 50g and 70g tube.
We price the customers all the following possible ways:
- FOB-origin pricing
- Uniform delivering pricing
- Zone pricing
- Basing point pricing
- Freight absorption pricing
Forhan's junior is supposed to offer through Uniform delivering pricing Scheme.Uniform delivering pricing
Frohan's junior has a uniform delivering pricing strategy in which it will charge the same price to all of its customers, regardless of their location.Product:
Parents are very conscious about the type of quality of tooth paste their kids are going to use, keeping in view the requirements of the parents we have to retain the competence of quality meanwhile making the product more colorful, flavored and eye catching for the targeted kids. It will be a symmetric packing range in three different sizes making it more adoptable and affordable for people concerning our focus income level assortment.
Our core product is the orange gel with cooling crystals, in the tube. The hub benefits are stated as follow:
- Prevent tooth cavities
- Prevent exposed root cavities
- Fight against bad breath
- Reduce plague
- Reduce gum problem
- Remove stains.
The brand name of our product is Forhan's Junior.
- Quality: we are determined in providing the brand, assuring the quality and affordability to the major sector of the country.
- Design and Style: The design and Style of Forhan's junior are set to be quite appealing and catchy for kids. Kids are usually more attracted towards colors and cartoons.
- Features: The toothpaste is manufactured as an orange gel with cooling crystals and enclosed in an attractive tube.
- Packaging: the packaging is made very attractive as the product is specifically designed for children.
In order to make it a augmented product we will include the classification of the product, website address and helpline number.
Branding: A brand is a name, term, sign, symbol, design or a combination of these, intended to identify the goods or services of one seller or group of sellers and to differentiate them from the competitors.Place:
Placement plays an important role in the life cycle of product so we will place our product at:
- Departmental stores
- Shopping malls
- Target Retailers
We will use the distribution network which we use for other products in Pakistan.Distribution:
Our product will follow a chain in which from the manufacturers (Forhan Division Zonite Products Corp.,) from UK will be shipped straight to the warehouse of distributors then to respective zones. Thus after pricing, the product will goes to the shops (retailers) and finally to the customers and end customers.Promotion:
The promotional strategy which Forhan junior will adopt to cop up with the competitive market would be firstly focus on awareness of the new product. This would be done by placing stalls and counters of Forhan junior 30g tube free of cost, outside the schools. Then next step would be promotion through magazines, newspapers, billboards, pamphlets, T.V channels along with buntings in the shops.
Making attractive T.V advertisements would definitely attract and urge children to try it because of its catchy appearance. (netmba, 2000)
We are supposed to use the following steps in our promotional mix:
- Personal selling
- Public Relations
- Sales promotion
- Direct marketing
We will advertise our product through television, billboards, magazines, newspapers and brochures. We will advertise our product through billboards because kids who watch our ads on television when they will watch our value added product on billboards they will definitely enforce their parents to buy it for them.Personal Selling
This scheme will be applied in the introductory phase. The product will be available on doorstep for making more and more people customary of this product and people will test the product without going to the shops.Public relations
Forhan junior has decided to trail for a certain amount of revenue in specified time period and has decided to donate 9% of the total revenue to charity organizations earned per annum by the team.Sales Promotion
Sales promotions are made in order to intensify the boost of sales. It can be done in a variety of ways. We can offer short term incentive in order to break through the market. We can also offer the complementary products like tooth brush with the sale of 50g pack after achieving the desired sales.Direct Marketing
Direct marketing are very helpful in order to maintaining good relations with the customers. Customer normally wants to know more about the specification and characteristics of the product and this can be done through providing the customers with the proper channel that they can use to interact with the company. The medium use for this can be either through billboards or directly mailing the customers.
After making the strategies and managing the tactics. We will put them into action and try implementing them more efficiently to get the maximum results.
FOREIGN MARKET STRATEGY
A DIFFERENTIATION STRATEGY
Forehan's junior toothpaste is a product that will perceived in the market as being unique. The brand name is well known in the world and the product is quite different from other competing product in market. This uniqueness will bring more profit for the company in the market. We can set our own prices as people prefer buying quality product for their kids. Our competitive advantage is superior quality of fruity crystal gel toothpaste with maximum calcium and fluoride. As presently the company brand name Forhan is well known all over the world so it will be a competitive advantage in order to market this new product into Pakistan.
PORTER'S FIVE FORCES FOR MARKETING STRATEGYBargaining power of Suppliers:
For tooth paste Industry Company enjoys more bargaining power over suppliers. As Forhan Division Zonite Products Corp., is based in U.K and there is many suppliers of raw material for toothpaste production so there is very little bargaining power of supplier.Bargaining power of consumers:
The bargaining power of consumers in Pakistani is very high. People have many choices when they want to buy toothpaste. So in order to attract the consumers the Forhan needs to concentrate more and more on the quality of the toothpaste and needs to keep the prices lower than the competitors. Quality is something which has a great influence on the people decision making. They can compromise on prices but on quality of toothpaste them wont. As they are many competitors in the market but if we keep the quality of the toothpaste in the market and advertise in a proper ways then there will be high chances that our product will easily penetrate in the market. Cost leadership is the biggest advantage we can have in the market. So Quality and cost leadership are very important which can influenced the bargaining power of the consumers.Potential threat of Substitute product:
Forhan has to take several measures in order to face the potential threat of substitute product.Rivalry among competing Firms:
In the fast moving consumer goods there is strong rivalry among the competitors. There are scare that from the customers because the market is very saturated and the competitors will try to attract the customers to snatch their share of market.
Potential entry of new competitors:
As there is no restrictions from the Government for new entrants into the market so there will be high chance of entry of new competitors.
CHANNELS OF DISTRIBUTION
Forhan will use different channels (retailers and wholesalers) to search and delivers the prospective customers. Forhan will use the distribution channels which are very efficient, effective and which are not only meets customer needs but also provide them the valuable services.
It will also use the different method to design a channel of distribution. First of all Forhan will specify the role of its channel of distribution. It usually adopts the offensive kind of distribution which is fast enough to sell to sell its products through out the country.
It will specify the role of product, price and promotion. It decides that what type of middleman should be used either retain whole seller as agent. Forhan set the intensity of the distribution, it uses the very intensive kind of distribution and it means that its sale volume is very large.
International marketing is not all about talking your product to a foreign market and start selling. It's a complete process which demand a through research of market of that country, analyzing its external and internal environment, selecting a specific target market and then formulate a strategy to introduce your product. Tooth paste is a common product which is in use of every person and there are many international companies which are selling their products in Pakistan. It will be a waste of investment if the company does not make any strategy and required cultural analysis before entering into the foreign country.
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