Iqra University 2004

SAAM

SAAM’S

WhiteningWhitening WrapsWraps

MARKETING PLAN

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ACKNOWLEDGMENTS

By the grace of Allah Almighty, we have successfully completed the term report

on our marketing project "SAM’s Whitening Wraps."

The project was assigned to us by Dr. Syed Asif Hasan. We are thankful to him

for giving us a chance to learn about marketing strategies. This will help us in

enhancing our entrepreneurial and creative skills.

In successful launch of our Whitening Strips, we are thankful to several people

without whom the launch would not have been possible. Worthy of our

gratitude is management of Agha’s superstore for providing us different

information. We thank different dentists whom we have visited and got

information. We thank our families for their support and coping up with our

absences. Our class fellows and friends also helped us with their suggestions

and ideas.

Finally, the members of the group are thankful to each other for supporting

and complementing each other whenever need be.

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TABLE OF CONTENTS

Sr# Description Page#

1 EXECUTIVE SUMMARY 6

Brand Name Brief Description of ProductCompetitive Advantage

2 MARKETING PLAN 8

SWOT AnalysisBCG matrix

3 MARKET SEGMENTATION 10

Broad Potential Market4 PRODUCT POSITIONING 11

5 PRODUCT BRANDING 12

Brand Name DecisionBranding Strategy

6 PRODUCT PACKAGING 12

Packaging costPackaging Strategy

7 PRODUCT LABELING 12

The label would8 COMPETITOR ANALYSIS 13

Major CompetitorsOverall Strategy for Responding to Competition

9 MARKETING MIX 14

PricingPlace/Location ProductPromotion

10 FINANCIAL PLAN 21

Expenses for Business OperationsSources of Finance

11 ACTION PLAN 23

12 APPENDIX 24

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3 Steps to profess ional whi tening.

SA

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AM’s

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EXECUTIVE SUMMARY

Be the founders to adopt is the road of our success

There are few dental care products that could satisfy the needs of natives of Karachi.

They need products through which they will not only live a healthy life but should add

confidence to their personality.

In order to contribute towards fulfillment of this particular need of public of Karachi, we

plan to provide them with a product that is easy to keep, use and give utmost

satisfaction. The most appropriate product that meets the stated criteria is Teeth

Whitening Wraps. Thus we – SAAM – plan to import, market & sell the whitening wraps

under the trademark of Rembrandt®.

Brand Name

SAAM’S WHITINING WRAPS

Brief Description of Product

SAAM’S is the teeth-whitening wrap. Each package comes with 4 syringes which can be

useful for 2-3 times filling. Unlike other brands SAAM’S Whitening Wraps are only used

once a day (for 20 minutes). Adhesive wraps conform to teeth and fold-back tabs keep

wraps in place for better coverage. SAAM’S wraps are lined with the same safe enamel-

whitening ingredient used by dentists.

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Competitive Advantage

We have no direct competitors as such, but our indirect competitors are expected to be

all dental care products in Karachi. The only competitors we have are the dentists whom

we have manipulated as intermediaries on commission basis.

We are introducing our idea of launching whitening wraps in the market on the surety

that are potential customers who care for their teeth. Whitening wraps are the dental

care product that is the need of status & role oriented people because it does not make

only your teeth healthy but gives you confidence also. On the basis on research and

intelligence there are no whitening wraps available in the market at present. The major

difference that supports our home care treatment would be:

• Our whitening wraps would be the only option for consumers who want avoid the

hassle of going for the dentist treatment

• If they want their teeth to look healthy in an cost competitive advantage over the

dentist’s charges.

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MARKETING PLAN

SWOT Analysis

STRENGTHS

• Rembrandt® Brand Equity attached to the product

• Mass promotion

• Prime location, easily approachable and the most prominent to the

target market

• Well-designed product packaging.

• Dentist recommendation.

• Adequate financial resources.

• An acknowledged market leader (as Rembrandt in USA)

• Cost advantage.

• Product innovative skills

• Ahead on experience curve

WEAKNESSES

• Operating problems

• Premium price as compared to other dental care products in Pakistan.

OPPORTUNITIES

• Expand product lines to meet broader customer needs

• Diversity into related product

• No direct competition

• A need for whitening wraps

• Possibility of capturing the dental care product market with the

competitive advantage

• If appreciated by the consumers then we can make it locally

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THREATS

• Custom Duty & Shipping cost

• Uncertain foreign exchange rate

• May others enter the market after our success

• Slow market growth.

• Growing bargain power and suppliers.

BCG matrix:

Our product comes under the “Question Mark” level, because it is just being introduced

to our target market and will take time to move to other levels.

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MARKET SEGMENTATION

Broad Potential Market

During the marketing research that we conducted (through questionnaire attached) we

learned that our target market is every one who have issues with teeth whitening and

are keen and highly interested in satisfying this “need” with a substitute product of a

dentist procedure, especially for those who want a cost advantage or don’t have the time

to visit the dentist for the treatment. Our products USP’s are explained later on in detail

in this report.

In order to formulate an effective marketing and promotional strategy, the target market

for SAAM’s has been divided into 2 different segments:

• Upper Middle Class and Upper Class

Based on Geographic variables, Demographics variables, Psychographic variables, and

Behavioral variables.

Geographic Variables

• Posh localities of Karachi like D.H.A, Clifton, KDA, Nazimabad, and Gulshan Iqbal

Block 6.

Demographic variables

• Age: Age 12 to onwards

• Income: Family income 45,000+, individual income 12,000+.

• Gender: Both male and female

Psychographic variables

• Social class: Upper Class, Upper Middle Class, Middle class.

• Life styles and personality: People who are conscious about there teeth and

cannot manage time to visiting the dentist for whitening and polishing treatment

or money, especially the working men & women.

Behavioral variables

• Awareness: Target market is already aware of teeth whitening and polishing in

Karachi, but through dentist only.

• Occasion: People can use it on occasion bases e.g. weddings, e.t.c.

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PRODUCT POSITIONING

1) The competitive advantage over the dentist would be our product’s USP.

2) Its criteria are based on:

• Its importance :

It’s healthy to have clean and white teeth in the growing population of Karachi.

Where it’s highly important to bring awareness to some and remind some people of

the importance of clean and white teeth.

• Communicable :

Since our product is innovative, and its brand name carry’s its feature, the message

is very clearly being communicated to the target market.

• Affordable :

It has a cost advantage, over our indirect competitors (the not manipulated dentists).

3) Our brands over all positioning strategy is: more for less.

4) Positing statement of SAAM’s whitening wraps is influential and communicates the

message to our target market.

“Visible Whitening in only 20 minutes!”

PRODUCT BRANDING

Our brand name is SAAM’s teeth whitening wraps representing the feature of our product

“cleaning and whitening” of teeth.

Brand Name Decision:

Our brand name decision is based on the following reasons:

• Easy to pronounce

• Easy to spell

• Communicates the product benefit & feature

• Sounds good

• Easy to recall

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Branding Strategy:

The branding strategy of our product is Private Branding; some 1 else manufactures the

product (Rembrandt) and some one else sells the product (SAAM’s)

PRODUCT PACKAGING

We are importing the product the product only without packaging as the product with

packaging was costing us quite expensive, profit margin was low and we decided to do

packaging locally from Khalid Bros in Urdu bazaar Karachi.

Packaging costHere locally the packaging cost is Rs: 21/box.and Rs: 4 for printing /box.

Packaging StrategySAAM’s whitening wrap is packed “individually” with secondary packaging; one layer

would be the box itself and the other would be the cellophane around the box.

PRODUCT LABELING

The label would:• State the price

• Ingredients

• Quantity

• Timing

• Duration

• How to use it?

• Represent the features of product

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COMPETITOR ANALYSIS

Major Competitors

No major competitors exist as it is an innovative product.

Overall Strategy for Responding to Competition

Brand Name

Our strategy to counter the competitors is to create the SAAM whitening wraps brand

name in the minds of the customer. The customers, instead of thinking about the

wraps, should think about the prestige that is only brought to them by SAAM.

Monopoly

For the time being, we are the only Whitening Wraps marketers in the Karachi City. Our

promotion should be such that only our name should come to the customers’ minds

when they think about buying a Whitening Wrap.

Customer Loyalty

We plan to gain long-term customer loyalty by offering quality product through selective

retailers and dentists. We would offer quantity discounts to retailers to keep them

coming back to us.

Opinion Leaders

Dentists are the opinion leaders of our product. Who will influence our target market on

the purchase of our product as a scientific recommendation.

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MARKETING MIX

Pricing

Pricing Strategy

We intend to follow the Prestige pricing strategy because our product is innovative and

distribution is on selective outlets.

Description of Pricing Strategy

SAAM’S whiting wraps is a new product that is why initially we have set high prices to

ski maximum retinues for the segments willing to pay the high prices. Our product

image and quality supports its high price. We are selling at selective places but ore

profitably there are no competitors entering the market easily. After six months we re

planning to give functional discounts and quantity discounts to retailers.

Consumer price of our product is Rs: 2500 only.

Place/Location

Place include company activities that make the product available to the target

consumers. Place refers to channel of distribution that is selected by marketing

intermediaries. Sam’s Whitening Wraps will be using a push strategy in which its

product is distributed to retailers and dentists.

Description of the location selected for business.

Dental Clinics

• Dr Alvis clininc.- Sindhi Muslim Society

• Dr Burkis clininc - Khyban-e-Shamsheer

• Dr .Mitha’s Clinic – Zamzama Blvd

• Dr. M.Altamash - Clifton

• Fatima Dental hospital - PECHS

• Dr. Anthony Hu. Sy. - Clifton

• Pabaney Dental & Orthodontic Clinic - Block E, N. Nazmabad

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Retailers:

• Agha’s super market - Clifton

• Motta’s - Clifton

• Ami’s - Defence

• Paradise - Clifton

• Naheed’s - Tariq Road

• Jumbo - Gulshan Iqbal

• Saanies - Perl Continental

• Ziauddin Pharmacy - Ziauddin hospital

• MidEast Pharmacy - Clifton

• OK Super mart - Nazimabad

• Time Medicos - National Stadium, Gulshan Iqbal

• Big Save - New millennium mall, Gulshan Iqbal

• Astra - Parktowers

• National Medical Centre - Defence

• Etc

Channel level:

Level 2

Distribution Intensity

Selective Distribution

Intensity of our product is selective because few intermediaries are involves like

retailers and dentists who are willing to carry our company’s product in selective

territories as we are targeting middle upper class and upper class.

Manufacturer Distributor Retailers Consumers

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Product

Product Life Cycle (PLC)

SAAM’s whitening wraps is in the 2nd stage of the product development life cycle

(Introduction), growth would be slow as it is an innovative product, but the market

already exists for the product. Thus with heavy promotion the company will move its

way towards growth.

The consumers of our product at this stage of the product life cycle would be the

innovators and soon the early majority.

PRODUCT DEVELOPMENT STRATEGY

Idea Generation:

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All of us brainstormed different ideas amongst our group and talked about it with

friends and family to get ideas for various products that they think Karachi’s market

would require. We came up with the idea of promoting dental care products in Karachi.

Then to be more precise we came up with the idea of teeth whitening, after which we

on researched the various products that can be sources of teeth whitening:

• Toothpaste

• Whitening Wraps

• Whitening Strips

• Whitening Solution

• Whitening Wand

Idea Screening:

After research, we analyzed each source and with our objective (profitable customer

satisfaction). It was analyzed that:

• Toothpaste

Was never able to bring bridge in the gap to whitening, even though it claimed several

times to do so.

Prove: always claims but in our knowledge people are yet to experience such a thing

happen from toothpaste.

• Whitening Strips:

Would only whiten the front teeth of the upper and lower jaw but not the inside and

would not whiten the area of contact between the teeth.

Prove: Sana’s cousin in the US used this and was not completely satisfied due to the

above-mentioned problem.

• Whitening Solutions:

Have been a failure too, as they also not been able to bring customer satisfaction.

Prove: confirmation from Asha’s Super Store and a few other stores was taken.

• Whitening Wand:

Almost the same as the whitening solution, does not work as it states. People are not

interested in purchasing this product.

Prove: popular outlets are not willing to carry this product when researched.

• Whitening Wraps:

That has proven to bring customer satisfaction, because it has a gel along with the

plastic denture which allows the gel to be fully distributed in all corners of the teeth and

the Potassium Hydroxide Solution which is the ability to really make teeth white.

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Prove: To confirm this, Sana’s other cousin brought this product from the US some time

back and did the whole process, and was satisfied by what it claimed.

Concept Development & Testing: The concept already existed. All we needed to do was to identify the need of our product in

the market (through questionnaires) and make it available to our target market if high

intensity was measured. And the result concluded that there is a market need for such a

product.

Marketing Strategy Development: Our marketing strategy is easily affordable by upper class with out any problem, we do not

have any direct incentives with our product to offer to our retailers and dentists but we can

give then other sales contests rewards.

Business Analysis: Our sales cost and profit projects are on the period or six months

Projected sales = 10000000

Projected cost = 8612432

Projected profit = 1387568

Test Marketing: Tough we are not going for test marketing as no doubt our product has a cost advantage over our

competitors but its pricing strategy is pioneer, which does not allow us to execute this step. But

again, prove mentioned in the Idea Screening for Whitening Wraps would be enough to move on.

Commercialization: We would go for commercialization once the product has entered the growth stage and is running

successfully not far away from the Star in the BCG Matrix.

Promotion

Methods of PromotionAdvertising, Sales Promotion and Public Relations

Advertising

Advertising Strategy

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• Pioneer advertising because of its primary demand, introductory stage and

awareness information & interest.

• And Brand advertising, because it’s the brand name with its usage.

Selected Advertising Media

1) Media Types:

Our objective is to build primary demand by informing consumers about the features of

our product and make position the brand name with its usage in the mind of the

consumers.

Major media types:

• TV

• News papers

• Outdoor Advertising

2) Media Vehicles:

TVSpecific media vehicle involve:

• GEO TV at khabarnama time, 9:04. And it would be a continuous pattern; 1st 2

weeks, and then would pulsing; once a month. And in the followed by every 1st

week of every month continuously.

• World Call (through Star Plus) 2ce a day, having 2 spots in between 9:30-10:30

pm for 6 months on every alternate day.

News Paper

The placement of out product would be on the third page of DAWN, once a month on

weekends especially on Sunday for 4 months. Taking an add size of [20 x 3]

Outdoor AdvertisingDistribution of posters, broachers to our retailers and the dentists, 2 posters and 50

broachers to each retailer and dentist. And on the basis on broachers consumption

more printing would be done.

Sales Promotion

Safes contest between retailers and dentists to motivate them to increase the sales

performance over a given period. Allocation of rewards and benefits would given.

Example:

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• Give security systems in the form of scan machines, and cameras.

• Increase efficiency by barcode readers, and computers

• And remake their pen flex name board.

Personal selling

Would consist of 2 sales people who would market our product to our target retailers

and dentists and inform, communicate out products benefits and will goodwill of our

product.

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FINANCIAL PLAN

Expenses for Business Operations

Price per Unit

Initial Price $18 58.17 PKR 1047.06

Quantity Discount 11% 115.18

Cost after discount 931.88

Import Charges 24% 223.65

Cost after import 1155.54

Packaging & printing Cost 25.00

cost after packaging 1180.54

Commission of Distributor 12% 141.66

Commission of Retailer 15% 177.08

Cost after commissions - VC 1499.28

Gross Profit Margin 45.00% 674.68

Price before GST 2173.96

GST 15% 326.09

Consumer's Price 2500.0

Total Fixed CostFixed Cost Amt qty month total

Office rent 6000 6 36000Warehouse 6000 6 36000

Salaries Expenses 5000 2 6 60000Sales Person 8000 2 6 96000

Motorcycle 50000 2 100000Transportation expenses 5000 6 30000

Utility Expenses 8000 6 48000Promotional Expense 2179312

Entertainment Expense 5000 6 30000

Fixed cost 2615312

Total Variable Cost

Description VC/unit Units Total

VC 1499.28 4000 5997120

Total CostDescription Amountfixed cost 2615312Variable Cost 5997120Total Cost 8612432

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Total Promotional BudgetBill board 500000

TV promotion

Add making expense 85000

On air expense 500000

News paper(20x3 Dawn) once in a month for 4 month 1000000

Out door promotional expenses 13312

World call expense 81000

Total 2,179,312

Total Revenue (units 4000 x 2500 price /unit) 10000000

Break even Profit (TR-TC) 1387568Profit of a month (Profit/6) 231261.3Profit of an individual(Profit of a Month /4) 57815.33Break even (FC/Price - VC) 1417568Break Even In Units 2613Break Even In Rs 6533576

Sources of FinanceThe sources of financing for the product are the four members of the SAAM group, who

have agreed to invest in the product on an equal share basis

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ACTION PLAN

Market Evidence Research July 15 – August 1, 2004

Supplier Search July 23 – August 06, 2004

Launch August 17, 2004

Post Launch Marketing August 17 – February 16, 2004

Sales Closing February 17, 2004

We plan to launch SAAM’s® on August 17, 2003. We plan to sell the product for 1st stage that

would be of 6 months duration.

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APPENDIX

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