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Current Marketing Situation

WHITE PEARL Toothpaste Company Ltd; founded one and

half years ago by two friends Ferdous Ahmed and Mohtasim

Ahmed with their past work experience in the toiletries market,

is about to enter the toothpaste market which is dominated by

other competitors. The market research team of White Pearl

earlier assessed the opportunities for Toothpaste Industry in

Bangladesh and found out that that it offers huge potential.

As a result White Pearl decided to launch a tooth paste which

has all these required features to reach the customer base by

creating a strong market share position than the existing

competitors with the marketing slogan Your Ultimate

Toothpaste.

Market Description >>

White Pearls market consists of the rising per capita income and increasing awareness is

driving demand of oral care products. Currently, toothpaste enjoys a country wide penetration

level of 75 %, with only 15 % of them brush twice a day. The per capita consumption in

Bangladesh stands at 270gms/year.

Consumers have started switching to value-added toothpastes like sensitive toothpastes, gels,

mouth washes, and teeth whitening products with various cool and exotic flavors. More or

less the competitors cover all these features but which they lack is in this market is failing to

introduce the raw exotic and new flavors.

So to create a solid market position White Pearl is offering quality toothpaste which will fight

all the tooth problems by giving the customers with a taste of new and unique variety of

flavors with very competitive prices which in the market is not available.

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Product Review >>

The WHITE PEARL toothpaste is a kind of toothpaste which has every element to meet up

the consumers needs and wants. It is made in such a way that it has specialized in all the

sectors of tooth and mouth that in one word it can be said expert.

WHITE PEARL toothpaste can face 8 problems:

Protect all around teeth, even where a toothbrush doesnt reach

Create great mint taste which freshen breath longer time period

Protect against root caries

Clean and make teeth whiter

Repair early decay spots (cavity)

Work as a mild antiseptics

Gum Bleeding

Reduce Sensitivity

Another special characteristic of it is that it spreads around and penetrates in between teeth

for All-Around Decay Protection.

Thus this product WHITE PEARL has the capability of fulfilling the needs and wants of our

consumers.

Ingredients:

The special and unique natural flavors of WHITE PEARL are spearmint, peppermint,

wintergreen, and cinnamon. Last but not the least the ingredient fluorides reduce decay by

increasing the strength of teeth.

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Active

Silica

Sorbital

Triclosan

Sodium Chloride

Zinc Citrate

Eugenol

Chlorohexidine

Fluorides Binders

Binders thicken toothpastes. They prevent separation of the solid and liquid components,

especially during storage.

The target group would be:

Geographically targeted segment: Supplying our product to all areas through retailers

and simultaneously to super market as well. Second priority goes to densely populated

areas such as Dhanmondi, Mirpur, Mohammadpur, Uttara and Lalbagh of Dhaka City.

Demographically targeted segment: Targeted for all age of people. Highly affordable

from upper-middle class to skilled working class. Available in different sizes for large,

medium and small families.

Psychographically targeted segment: Supply quantity of the particular flavored

toothpaste will depend on the demand of particular flavor. All in all we have targeted

this market for trendy and conscious consumers of toothpaste.

Total sales are expected to be around Tk.12crore in the first year of operation.

Category Price (Tk.) Quantity

Small size 40.00 125 gm

Standard size 65.00 200 gm

Jumbo size 80.00 250 gm

Inactive

Water

Detergent

Binding Agents

Preservatives

Abrasives for cleaning &

polishing

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Competitive Review >>

After analyzing different ads and brands we have identified that most of the companies have focused

on

Germ fighting ability

Healthy teeth

Fresh breath

Whitening

Gum protection

Above some pictures of top brands of the competitors are shown.

The toothpaste segment in Bangladesh is largely a two player industry, Colgate & Unilever

Bangladesh (Pepsodent, Close-Up) which account for ~70 % of the entire market. For years,

Pepsodent has dominated the toothpaste market in Bangladesh with ~ 45 % market share.

However in one category of toothpaste these companies offer solutions for 5 (five)

problems while WHITE PEARL can face with 8 (eight) with unique natural varieties of

spearmint, peppermint, wintergreen, and cinnamon flavors. Thus it makes White Pearl the

Worlds 1st toothpaste to tackle 8 oral problems from one single tube of paste.

The price range of these competitors products fall almost in the same amount with WHITE

PEARL, as the competitive pricing strategy is followed by WHITE PEARL.

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Distribution Review >>

The nationwide small retail & large retail (wholesale) outlets, grocery shops and

supermarkets, will be the main distributors for WHITE PEARL in order to make it available

in the hands of our final consumers.

SWOT Analysis

SWOT stands for Strengths Weaknesses Opportunities Threats

Strengths Good quality toothpaste

Has the capability to fulfill ground breaking 8

types of needs for maintaining an ultimate

oral care

Weaknesses Same price range like the competitors

Opportunities Offering four different unique natural flavors

Threats Pepsodent, Colgate & Close-Up have greater

market share

Warehouse

Groceries, retailers, online shops and super markets

Final customers and consumers

Factory

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Objectives and Issues

1st year operation

To carry out promotional & social awareness campaign in a constant pace

Promotion and marketing is very important tool to create a brand more popular by passing

its activity among the consumers, and simultaneously we will perform social awareness

programs, for example free dental check up. All these will reflect a special image of our

brand name to the mind of our general consumers.

To ensure quality control

To make sure to the consumers that the product which are manufactured is neither

defected nor spoiled item. Ensuring this will boost the popularity of our product one step

further.

2nd

year operation

To increase the sales margin

In order to make WHITE PEARL a popular brand, general consumers must have the

buying interest for it. So to make it we should increase the total sales margin of it.

To achieve customer satisfaction through better complain practice

The more complains the better result of the product, in this obtaining the satisfaction and

can give solutions to the problems which consumers may face. Thus it will help them to

stay longer and will create a bond with our product and might create a sense of popularity

among the other types of consumers as well.

3rd

year operation

To enforce market research & product development

Market researchers can get the consumers views and wants more on the product, in this

way the desired product they want to see might be developed.

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Marketing Strategy

White Pearls marketing strategy is based on a positioning of single brand with only

variations that are selected by consumers when making a choice i.e. the exception of flavors

and different sizes. Our primary consumer target is middle- to upper-income people who need

one tooth paste to tackle with almost all oral problems for all age group. All of the four

marketing-mix strategies express WHITE PEARLSs differentiation to the targeted

group/market.

Positioning >>

Using product differentiation, we are positioning the White Pearl as the most versatile,

convenient, value-added model for personal and professional use. The marketing strategy will

focus on the 8 problem fighting solutions as the main feature differentiating the White

Pearl from all the other big competitors. This will be the competitive advantage for it.

Product Strategy >>

White Pearl will have all the features that are described in the Product Review section. It will

have hotline numbers on its body to contact with us for any queries. On the coming years we

will build on these customers feedback issues more in the coming years. Building the WHITE

PEARL brand is an integral part of our product strategy. The brand and logo (White Pearls

distinctive glowing green & black font) will be displayed on the product and its packaging,

and reinforced by its prominence in the introductory marketing campaign.

Pricing Strategy >>

Category Cost Price (Tk.) Distributors profit

margin (Tk.)

Gross profit

(Tk.)

Selling price (Tk.)

inclusive VAT

Small (125g) 25.00 2.50 12.50 40.00

Standard

(200g)

49.00 2.75 13.25 65.00

Jumbo (250g) 64.00 3.00 13.00 80.00

Total from 3

categories

138.00 8.25 38.75 185.00

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Distribution Strategy >>

Our channel strategy is to use selective distribution to have White Pearl sold through well-

known stores and online retailers. During the first year, we will add channel partners until we

have coverage in all major Bangladesh markets and the product is included in the major super

markets promotional leaflets and shopping Web sites. We will also investigate distribution

through super chain outlets maintained by major carriers such as Agora, Shwapno, Almas etc.

In support of the chain shops, White Pearl will provide demonstration products, detailed

specification handouts, and full-color photos and displays featuring the product. We will also

arrange special trade terms for retailers that place volume orders.

Marketing Communications strategy >>

By integrating all messages in all media, we will reinforce the brand name and the main

points of product differentiation, especially our 8 problem fighting solutions as the main

feature, along with the offering of four different unique natural flavors. Advertising will

appear on a pulsing basis to maintain brand awareness and communicate various

differentiation messages.

The agency will also coordinate public relations efforts to build the White

Pearl brand and support the differentiation message with the help of BDS

(Bangladesh Dental Society). To attract market attention and encourage

purchasing, we will offer as a limited-time premium a free toothbrush. To

attract, retain, and motivate channel partners for a push strategy, we will

use trade sales promotions and personal selling to distributors.

Marketing Research >>

Using research, we are identifying the specific features and benefits that our target market

segments value. Feedback from market tests, surveys, and focus groups will help us develop

the White Pearl. We are also measuring and analyzing customers attitudes toward competing

brands and products. Brand awareness research will help us determine the effectiveness and

efficiency of our messages and media. Finally, we will use customer satisfaction studies to

gauge market reaction.

Marketing Organization >>

White Pearls chief marketing officer Md. Ashfaq Uddin Tuhin, holds overall responsibility

for marketing strategy and direction. On the next page it shows the structure of the eight-

person marketing organization. White Pearl hired Point 33 Marketing Firm to handle

national sales campaigns, trade and consumer sales promotions, and public relations efforts.

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Action Programs

WHITE PEARL will be introduced in February. Following are summaries of the action

programs that will be used during the first six months of 1st year to achieve our stated

objectives.

January >>

We will initiate a Tk.16lac trade sales promotion campaign to educate dealers and generate

excitement for the product launch in February. We will exhibit at the major consumer trade

shows (i.e. trade fairs) and provide samples to selected product reviewers, opinion leaders,

and celebrities as part of our public relations strategy. Our training staff will work with sales

personnel at major retail chains to explain WHITE PEARLS features, benefits, and

competitive advantages.

February >>

We will start an integrated print/radio/Internet campaign targeting professionals and

consumers. The campaign will show how quickly WHITE PEARLS users can solve 8 oral

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problems and how they feel about the four different unique natural flavors. This campaign

will be supported by the places at which a retail transaction is carried out and online shops.

March >>

As the advertising campaign continues, we will add consumer sales promotion tactics such

giving away free toothbrush or cash discounts as a premium. We will also distribute new

point-of-purchase displays to support our retailers especially the super markets/chain shops.

April >>

We will hold a trade sales contest offering prizes for the salesperson and retail organization

that sells the most White Pearl tooth paste during one month.

May >>

We plan to roll out a new national advertising campaign this month. The radio ads will

feature dentists who will ask about 8 oral problems and how they feel about the four different

unique natural flavors. The print ads will show these celebrities holding their WHITE

PEARL tooth paste.

June >>

In this month we will launch another different campaign which will feature how actually

White Pearl benefits its users and giving relief to their oral problems. From this we can

measure the level of quality within the product that White Pearl is required to provide in

order to fulfill its set objectives.

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Budgets

Total first-year sales revenue of White Pearl is anticipated at Tk. 12crore, with a total

selling price of Tk.185 per three categories and variable cost per unit of Tk.146.25, and thus

the anticipated total unit sales volume would be (Tk.12crore Tk.185) = 648,649 units

(648lacs 649 units) of White Pearl tooth pastes.

We anticipate two years loss because Break Even calculations indicate that White Pearl will

become profitable after the sales volume exceeds 12, 90,323 units, early in the products

third year. Our break-even analysis assumes per-unit wholesale revenue of Tk. 185 per unit,

variable cost of Tk. 146.25 per unit, and estimated first-year fixed costs of Tk. 5crore. Based

on these assumptions, the break-even calculation is:

Controls

White Pearls marketing management fully dedicated in planning tight control measures to

closely monitor quality and customer service satisfaction. This will enable us to react very

quickly in correcting any problems that may occur. Other early warning signals that will be

monitored for signs of deviation from the plan include monthly sales (by segment and

distribution) and monthly expenses.

*** THE END ***

Tk. 5crore

Tk. 185 Tk. 146.25

12, 90,323 units

= 38.75

=

N.B. Here three size categories of White Pearl considered as one to avoid complexities of break even

calculation