8/6/2019 MKT 202 Report

1/201

Executive Summary

Topgallant Group which has started their business with ababy care product named Rowlly Special since 2001. TheGroup is very renown for its personal and home careproducts. As a team of marketing executives we have madea plan for lunching a new brand Acacia from the company.Acacia is beauty care soap, which is a new beauty careproduct of our company going to be marketed very soon.

Topgallant family is going to manufacture and market

beauty care soap for the first time. We are following thestandard process of marketing plan includes: 1.Productreview 2.Current market situation 3.Threats and opportunityanalysis 4.Objectives and issues 5.Marketing strategy6.Actions program 7.Budget 8.Controls.Each and everypoints has to be well-organized because of this kind ofproduct. Topgallant family has several competitors. We havetaken the 4ps that is marketing mix for the planning andanalysis. At first, we have shown details about the market

situation to understand the market place and customerneeds and wants. Then, we have analyzed our brand andproduct. After that, we made SWOT analysis to design acustomer driven marketing strategy. Finally, we constructeda marketing program that delivers superior value, to buildprofitable customer relationship and create customerdelight.

8/6/2019 MKT 202 Report

2/201

Introduction with the Company

Topgallant Group started its journey in 2001 by launching a

single product named Rowlly Special. But with thedevelopment of time, they have spread out with differentkinds of products and they are now recognized as one of therenowned brand in Bangladesh. The corporate head office of

Topgallant Group is situated at Gulshan in Dhaka. It is 8storied building with highly lucrative furnishing. The factoryis located in Gazipur on 120 bigha land. It has 10 regionaloffices and it has distributor in 64 districts. The Chairman of

Topgallant group is Rezaul Karim. The group has also steelbusiness and paper business. The steel mill and paper mill is

also located in Gazipur. Gazipur plant has four units. Two ofthem are for home and personal care productmanufacturing, one is for steel product and the other is forpaper product manufacturing. They are using latesttechnologies for the production of personal and home care.

Topgallants business method is competitive with the othermultinational companies operating in Bangladesh. Thebrands which have been introduced by them in the markethave a strong image. The brands have very high demand in

the market. Though they have come only a few years ago,but they have achieved a good market share in the similarproduct market, with the other companies. Within a veryshort time it has created a value among the consumers. But

Topgallant Group is renowned for its health care and homecare consumer products. Over the last 9 years, TopgallantGroup has been constantly bringing new and world-class

8/6/2019 MKT 202 Report

3/201

products for the Bangladeshi people to remove the dailydrudgery of life. Over 85% of the countrys households useone or more of our products. Including the top management8000 employees are working in this group. They are

altogether leading the company through the competition inthe market. The group is always eager to employ high skillprofessionals besides its practice to develop the humanresource by training. They maintain a good corporate cultureinside and outside the company. The Group believes inhighly efficient management capability.Their purpose is tomeet the everyday needs of people everywhere to anticipatethe aspirations of their consumers and customers and torespond creatively and competitively with branded productsand services which raise the quality of life.

With all these aspects the Topgallant Group wants to lead inthe competitive market of Bangladesh by gaining customersatisfaction and creating value for them.

The Products

The list of products has been given below:

Fabric and Home Care Products: Zarix, Mr. Clean, SmashAerosol, Smash Coil, Hinder, Hinder Total, Wizard.

Beauty Care: Malina.

Baby and Family care: Rowlly Special: by launching it wehad started our journey in 2001.

Health Care: Brisk liquid, Brisk Soap, Disprin.

Miscellaneous: Air Mail

Our leading product is Rowlly Special. Its a baby and familycare product becomes a core brand. Another successful

8/6/2019 MKT 202 Report

4/201

brand is Brisk liquid and soap. The brands also capture agood market share within a very short time.

Business Strategy

People's lives are changing fast. As the way we all live andwork evolves, our needs and tastes change too. At

Topgallant they aim to help people in their daily lives. Sothey keep developing new products, improving tried andtested brands and promoting better, more efficient ways ofworking.

They have a portfolio of brands that are popular across thecountry. This popularity came* Strong roots in local markets and first-hand knowledge

of the local culture.* World-class business expertise applied nationally to

serve consumers everywhere.

Focusing on performance and productivity, they encouragetheir people to develop new ideas and put fresh approachesinto practice. Hand in hand with this is a strong sense of

responsibility to the communities they serve. The groupdoesnt only measure success in financial terms; how theyachieve results is important too. They work hard to conductour business with integrity - respecting their employees,their consumers and the environment around them.

Introducing New Brand

Topgallant family wanted to enter a new market bylaunching a new product named Acacia to dominate the soap

market. The Marketing Processa Five-Step Process-

1. Understand the marketplace and customer needs andwants

2. Design a customer-driven marketing strategy3. Construct a marketing program that delivers superior

value

8/6/2019 MKT 202 Report

5/201

4. Build profitable relationships and create customerdelight

5. Capture value from customers to create profits andcustomer quality

The estimated size of market for beauty soap is Tk 22 billionin Bangladesh. As it is a matured market, so the scope forgrowth is limited. To gain the market share in thisenvironment, what will be the marketing strategy? Acaciamust follow the customer driven marketing strategy. Onecould be appropriate for the current situation isdifferentiating market strategy.We should first segment the market, target that market andposition our product.

Our marketing challenge is to position a high-quality, highvalue-added product in the present competitive market.Our focus on the market would be, to gain a customer andnever lose them.

Topgallantis going to introduced Acacia beauty soap in themarket wherecompetitors of Soap Company like Lux, Meril, Aromatic, Keyaand Tibet capture the market.

Lux: Lux beauty soap is introduced by Unilever. Mostof the market share; probably 30% share is capture byonly Lux. Soap market is dominated by Lux.

Meril: Meril soap is one of the products of SquareConsumer Product Ltd. After Lux, Meril capture 18%of total market share.

Aromatic: Aromatic soap is launched by AromaticCosmetics Ltd. Their selling proposition is providingvariety of flavors. Aromatic gained 12% of total marketshare.

Keya: Keya Cosmetic Ltd manufactures the Keyabeauty soap. Their selling proposition is variety of

8/6/2019 MKT 202 Report

6/201

flavors and beautification. Keya capture 11% of marketshare.

Tibet: Tibet soap is under ofKohinoor CosmeticsLtd. Their selling proposition is variety of flavors. Tibet

gained 9% of market share.

8/6/2019 MKT 202 Report

7/201

Table of Competitors products and prices:

CompetitorsBrandName

PackSize

Price

Marketing

Company

MfgCountry

SellingProposition

MarketShare

Acacia 125gm.85 gm.45 gm.

TK 20TK 16TK 8

Topgallant

Group

BD Enhancement ofnaturalbeauty

?

LUX 100 gm.75 gm.40 gm.

TK 20TK 15TK 7

UNILEVER BD Variety of flavors,beautification

30%

MERIL 100gm.85gm.35gm.

TK 20TK 17 TK 7

SquareConsum

erProducts

Ltd

BD UsualVariety offlavors

18%

AROMATIC 75 gm. TK 16 AromaticCosmetics Ltd,

JamunaGroup ofIndustrie

s

BD UsualVariety offlavors

12%

KEYA 100 gm.

75 gm.35 gm.

TK 18

TK 16TK 7

Keya

Cosmetics Ltd.

BD Variety of

flavors,beautification

11%

TIBET 85 gm.35 gm.

TK 16TK 7

KohinoorCosmetics Ltd.

BD Variety of flavors

9%

8/6/2019 MKT 202 Report

8/201

Miscellaneous

-----------

--------

Misc Misc Misc 20%

Product Review

Product: AcaciaA new range of beauty soap from Topgallant Group

Product Type & Flavor:We are going to offer four types of beauty soaps

with four different features at first:-

Acacia in Green: For oily skin Acacia in Blue : For dry skin Acacia in Pink : For normal skin Acacia in Lemon : For combination skin

Benefits of Acacia:

We avoid using harmful chemicals and our soap isbase free.

Our soap contain lower levels of alkalinebalancedPH factorsoft and supple skin

Minute exfoliating particles to scrub away deadcellscleaner and firmer looking skin

8/6/2019 MKT 202 Report

9/201

Our soap content Anti bacterial which reduce acneand pimples

Deodorizing agents keep body odor at bay

Acacia is 100% herbal, and thus halal andhypoallergenic.

SWOT Analysis

Strength:

Topgallant Group can build on four important strengths-

Capture the Market

Deliver Superior Value

Strong in Technology

Competency

Weaknesses:

Topgallant Group first time going to introduced the Acaciabeauty soap, so as new comer we have two mainweaknesses-

Lack of Brand Awareness

8/6/2019 MKT 202 Report

10/201

Lack of Managerial Depth

Opportunity:

Topgallantcan take advantage of four major marketsopportunity-

Mass Promotion

Countrywide Distribution

Increase Demand

New Market for new Product

Threats:We face four main threats at the introduction of

Acacia beauty soap-

Enhanced Competition

Downward Pricing Pressure

Difficult to Manage Distributor

Changing Buyer Taste & Preference

Objectives & Issues:

8/6/2019 MKT 202 Report

11/201

We have set aggressive but achievable objectives for thefirst, second and third years of market entry

Target towards Market share

Year 1 2%

Year 2 5%

Year 3 10% to 15%

Marketing Strategy:

Marketing strategy includes doing Market segment, decidingtarget market, positioning,

Market Segmentation: Dividing a market into distinct groupswith distinct needs, characteristics, or behavior who mightrequire separate products or marketing mixes.

Segmenting Consumer Markets-

Demographic segmentation

Most popular segmentation

Psychographic segmentation

Lifestyle, social class, and personality-basedsegmentation

Behavioral segmentation

Beauty soap consumers can be divided in four segmentsdepending on their income. On the basis of their purchasing

8/6/2019 MKT 202 Report

12/201

power, rate of consumption and the cost to serve eachsegments attractiveness is discussed bellow:

Lower middle class

Middle class

Upper middle class The rest of the upper class

After evaluating all the segments we consider these twosegments as profitable for us to serve:

1. Upper middle class: This segment has goodpurchasing power and high rate of consumption. And itwill not cost much to satisfy them unlike the upperclass segment.2. Middle class: This segment represents a huge poolof consumers and they account for much of thequantity sold.

The positioning statement:To individuals who desire to add some value to their dailyordinary lives, Acacia is the unique soap that offers morethan any other brand, because it has the most exclusiveof benefits available in the most convenient way ever

8/6/2019 MKT 202 Report

13/201

Product Strategy:

Acacia beauty soap will offer more benefit and greater valueduring the following year with different color, size and otherfeatures.

Goals of Acacia:

Capture attention of target market

successfully

Target consumer needs

Position the product effectively, efficiently

and profitably for fulfilling consumers

perceived values

8/6/2019 MKT 202 Report

14/201

Grow through implementing effective

marketing strategies

Pricing Strategy:

Price-The amount of money charged for a product or service, or

the sum of the values that consumers exchange for thebenefits of having or using the product or service.Market Skimming-

Setting a High Price for a New Product to SkimMaximum Revenues layer by layer from the segmentswilling to pay the high price.

Results in Fewer, But More Profitable Sales.

Market Penetration-

Setting a Low Price for a New Product in Order toPenetrate the Market Quickly and Deeply.

Attract a Large Number of Buyers and Win a LargerMarket Share

Acacia will implement the pricing strategy of marketpenetration.

Acacia beauty soap will be introduced in three categories

with four different features.

Price and Pack Sizes ofAcacia

Pack sizes Price

8/6/2019 MKT 202 Report

15/201

125gm Tk.20

85gm Tk.16

45gm Tk.8

Distribution Strategy:

Acacia brand products will be distribute through a network ofselective store and non store retailers in the overall market.Among the most important channel partners being contactedare-

Company Sales Force

Manufacture Agency

Industrial Distributor

Communication Strategy:

Television is one of the most powerful media foradvertisement. We will broadcast sensationaladvertisements that create interest in the viewers andattracts.

8/6/2019 MKT 202 Report

16/201

Radio is potentially a good opportunity forcommunication. Our target buyers listen to local news,talk shows, and sports. So we get a great opportunity toattract our buyers through radio.

Billboards will be setup in attractive locations wherethey can easily attract attention. Electronic billboardswill be set up in some selective important locations.

Posters and leaflets will be posted in variouslocations primarily to create awareness

Action Programs:

April:

Attracting & Managing dealers Convincing it will be profitable for them

Educating them about the productMay:

Product Launch

Large scale promotion Broadcast media : TV, Radio Print media : Newspapers, magazines Billboards, Posters, Leaflets

June:

Offering discounts to dealers Reduction in whole sale price/price off

Offering free goods in a bundleJuly:

Arranging sales competition

Bonus for high performance

8/6/2019 MKT 202 Report

17/201

Commission on the basis of sales made

August:

Launch of new advertisements

To make conviction and purchaseSeptember:

Market survey

To measure customer satisfaction

To evaluate the effectiveness of ourmarketing programs

Budget:

Break Even Analysis:

The Break even point that is break even volume has beenshown below-

8/6/2019 MKT 202 Report

18/201

Profit at different years:

Size Pric

e

Wholesale

Price

Variable

Cost

Fixed cost Break Even

Volume

125 gm 20 17.00 15.00 140,000,000 70,000,000

85gm 16 13.00 11.50 35,000,000 23,333,333

45gm 8 5.75 5.00 25,000,000 13,333,333

8/6/2019 MKT 202 Report

19/201

Year Expected

sales

Expected

Revenue

Expected

variable

cost

Total cost Total

Revenue

Profit

2010 15,000,000 255,000,000 225,000,000 365,000,000 255,000,000 -110,000,000

2011 25,000,000 425,000,000 375,000,000 740,000,000 680,000,000 -60,000,000

2012 30,000,000 510,000,000 450,000,000 1190,000,000 1190,000,000 0

2013 34,000,000 578,000,000 510,000,000 1700,000,000 1768,000,000 68,000,000

Controls:

Evaluating marketing strategies in attaining goals andobjectives

Comparing actual performance with expectedperformance

Comparing with competitors performanceMaking corrective actions

Reference:

8/6/2019 MKT 202 Report

20/20

a) Principles of Marketing, Philip Kotler & Gray Armstrong(12th edition)

b) www.google.comc) www.wikipedia.org

http://www.google.com/http://www.google.com/