Dr.

Fresh
Oral and Personal Care Products

[Marketing Plan]

Presented by: DHS International April 17th, 2010

TABLE OF CONTENTS
1.0 Executive Summary

1.1 Dr. Fresh Introduction .

2.0 Situation Analysis

2.1 Market Summary .. 2.1.1 Economic Condition of Pakistan

2.1.2 Future Prospects ... 2.1.3 Oral Care Market Overview .. 2.1.4 Competitors Overview. 2.1.5 Brand Sales Trend ... 2.1.6 Growth Trend .

2.2 Swot Analysis ..

2.2.1 Strengths 2.2.2 Weaknesses 2.2.3 Threats 2.2.4 Opportunities .

2.3 Keys to success .

3.0 Marketing Strategy

3.0.1 Mission

..

...
3.0.2 Marketing Objectives . 3.0.3 Target Market . 3.0.4 Positioning ..

4.0 Marketing Mix 4.1 Product

.
4.1.0 Categorization .

4.2 Price ..
4.2.0 Competitors Pricing ... 4.2.1 Dr. Fresh Product Selection &Pricing .. .

4.3 Placement
4.3.1 Distribution ..

4.4 Promotion

5.0 Brand Launch .

5.1 Plan . 5.2 Time 5.3 Budget 5.4 Details .

5.4.0 Soft Launch 5.4.1 Marketing Campaign 5.4.2Budget Spread 5.4.3 Opening order

6.0 Conclusion .

1.0 EXECUTIVE SUMMARY

The report covers the information gathered through different sources about the oral care brands operating in Pakistan. The purpose of gathering this data is to ensure the market scenario of oral care brands, the current economic situation and the feasibility of launching a new oral care brand Dr. Fresh in the existing market of Pakistan.
The different sources include internet studies, competitors report from Lahore chamber of commerce, market surveys, Euromonitor International report on cosmetic & toiletries in Pakistan (May 2006).
1.1

DR. FRESH INTRODUCTION

Dr. Fresh an American Oral and Personal Care brand offers quality and innovative products for children and adults. Dr. Fresh includes the Dr. Fresh Dailies, Dr. Fresh Tek brand toothbrushes, Firefly flashing toothbrushes, Dr. Fresh Travel kits, Binaca breath sprays and Infectiguard hand sanitizers.

The above brands include toothbrushes, toothpaste, mouthwashes, whitening mouthwashes, dental floss, breath fresheners and hand sanitizers.

2.0 SITUATION ANALYSIS

Dr. Fresh is entering into the market where big players of oral care brands already exist; therefore, the competition initially will be tough and a little difficult to capture a big market share. Dr. Fresh at the start, in Pakistan, will be served as product centric to enlighten people about products features and to register them in the country.
2.1 MARKET SUMMARY
2.1.1

Economic Condition of Pakistan

Pakistans economy which is suffered immeasurably due to global slowdown and domestic financial crises are slowly recovering by getting back on the track. The economy is showing improvement giving hope to entrepreneurs and businessmen across the board. But this recovery is expected to be a slow recovery. By looking at the previous trends, the cosmetic & toiletries industry has made a progressive growth within the country especially between the period of 2002 2007. The level of consumption is overall slow but due to increased brand awareness and with the rising standards of living the overall consumption is further expected to increase in future. In the current year, the economys real GDP growth is expected to rise by 3.0% and the growth projection is likewise upgraded to 6.4% from 6.0%.
(source: The Dawn Media Group)

On the other hand, Pakistan is blessed by illegal imported goods and these traders are making huge profits every year, a major concern for local and multinational companies. Although the government is trying to prevent this kind of business but as yet there is no formal trading association for the segment.
2.1.2

Future Prospects

Cosmetics and toiletries market in Pakistan has a very high growth potential and is expected to grow further. According to the Euromonitor International report May 2006, it is predicted that the cosmetic and toiletries market will exceed PKR60 billion by 2015. Due to the improved living standards of upper class people in Pakistan, people prefer buying quality products over prices. Therefore, it can be seen that more international brands are entering into the market and expanding day by day.
2.1.3 ORAL CARE MARKET OVERVIEW

The market for Oral hygiene in Pakistan increased between 20022007, growing at an average annual rate of 3.4%
(Source: www.bharatbook.com/detail)

The cosmetics and personal care markets had average annual growth rates of 14%. In Pakistan, all cosmetics and toiletries sectors are in their infancy, so there is room to grow across the board. Consumers still do not have a lot of disposable income, so the most promising area for manufacturers is hygiene essentials bath, shower products, hair care and oral hygiene products.

2.1.4 COMPETITORS OVERVIEW

The following are few of the Oral Care brands operating in Pakistan Crest, Oral-B, Colgate, Sparkle Macleans, Aquafresh Shield Smokers Ezigrip Medicam Touchme, Minto Close-up, Pepsodent, Signal Doctor, Soda white tooth paste

The other local and international brands are also present in Pakistan amongst which few of them are entering through improper channels and are available in the market. COMPETITORS STUDIES

Following are the studies and product information of few of the leading Oral Care brands in Pakistan: 1. MARRIANA INTERNATIONAL In Pakistan, the local Marriana International won shares in the sector of oral hygiene. Market leader amongst local manufacturers of toiletries and healthcare products, has a network of distribution channel throughout Pakistan. Distributors and sub-distributors have been appointed at several locations to ensure free-flow of products throughout the country with constant monitoring by the Field Force engaged for this purpose. Wide range of products including toothpastes, talcum powders, shaving creams, shampoos, hair colours, facial and bleach creams, lotion etc are manufactured under the two brand names i.e. MEDICAM and TOUCHME. They includes the following products in their specific ranges Medicam Dental Cream
The company kept the price of its Medicam toothpaste low, and claimed that it was the best toothpaste in the oral hygiene category. The company backed its product with huge advertisements supported by the Pakistan Dental Council.

Touchme

Touchme includes the following line of oral care products Touchme Touchme Touchme Touchme new natural toothpaste minto toothpaste minto gum toothpaste minto mouthwash

2. UNILEVER

Personal Care products underlying Sales Growth 6.6%

Unilever sustainable Development overview 2008

Unilevers Signal, Pepsodent, Close Up toothpaste brands have reached more than 44 million children with school-based oral hygiene programmes over 19962008

Align partnership activities with the World Dental Federation to focus on day and night brushing campaign. Distribution & Retailing Worldwide Sales through 10 major retail chains Many of their sales are through millions of small shops, over 10 million in Asia alone 47% of sales from developing and emerging markets

3. LAKSON GROUP Colgate Palmolive Pakistan ltd. As a market leader in oral care products, Colgate took the initiative to increase awareness about oral health by developing close relations with dental professionals under their dental professional programs. Colgate Palmolive Pakistan ltd includes the following variants in oral care products Tooth Pastes Colgate great regular Flavor Colgate Herbal Colgate Max Fresh Colgate Misvak Colgate Total Partners with dental professional such as Pakistan Dental Association, dental institutes etc in working towards a shared objectives. TOOTH BRUSHES Colgate Navigator Plus
Colgate Navigator Plus is designed to gently provide a thorough and comfortable clean. Its innovative and flexible head and neck helps avoid excessive pressure, reducing the risk of injury to gums. It follows the contour of teeth and gums for superior plaque removal and has a rubber grip that gives a relaxed grip and easy maneuvering. It is clinically tested to remove more plaque than an ordinary flattrimmed toothbrush.

 Colgate Plus
Colgate Plus with its unique diamond shaped head provides easy access to the back teeth for an exceptional cleaning. Its polished bristles clean teeth effectively while protecting tooth enamel and gums.

Colgate Premier
Colgate Premier comes with V- trim bristles that reach deep in between teeth for a thorough cleaning. Its front power-tip bristles effectively clean teeth and its diamond head shape facilitates easy access to those hard to reach places at the back of the mouth.

Colgate Extra Clean

Colgate Extra Clean with its colored front tip bristles effectively reaches the back teeth to provide superior cleaning. Its curved bristle design effectively sweeps away plaque from non- flat areas. Its rubberthumb grip allows comfortable handling and control when you brush.

Colgate Super Flexible

Colgate Super Flexible has an advanced bristle design that cleans teeth surface and reaches deeper between them for thorough cleaning. Its Tapered Diamond Head is shaped for easy access to back teeth.

2.1.5 BRANDS SALES TREND Consumers are increasingly favoring supermarkets, big retail stores and other departmental stores. The major reason is that consumers find it easy to get everything under one roof as it saves their time. More and new international brands are also entering into these stores which are a big attraction for customers. Furthermore, due to the increased trend of different special discounts and other promotions in big stores, consumer gets attracted and likes to shop from here. People also do prefer buying oral care products from pharmacies therefore; they are also in trend in Pakistan. 2.1.6 GROWTH TREND

According to the Euromonitor International Report May 2006 the oral hygiene sector has experienced following growth rates:

Retail Sales: 2003-2005 (PKR billion) 2003 7.6 2004 7.9 2005 8.1

Retail Sales: % Value Growth 2000 - 2005 2000-2005 (Total) 19.1

Company Shares by Retail Value 2003-2005 2003 17.9 9.1 2.7 0.6 0.3 1.2 4.1 1.4 2.3 2004 18.1 8.7 2.7 0.6 0.3 1.4 4.4 1.5 2.5 2005 18.6 8.6 2.6 0.6 0.4 1.5 4.8 1.6 2.3

Unilever Pakistan Ltd Colgate Palmolive Ltd Marriana International Johnson & Johnson Werrick Health Care (Pvt) ltd English Laboratories Mega Lion Indonesia Roomi Enterprises (Pvt) ltd SmithKline Beecham ltd Pak

Brand Shares by Retail Value 2003-2005 In all the segments of Cosmetic & Toiletries 2003 %
1.3 1.2 0.8 0.5 0.3 0.30.3 0.5

1.4 2.3 3.1 2.7

Oral-B Colgate 6.8 Medicam Close-up Aqua Fresh Sensodyne Fresh & White Pepsodent Soda White tooth paste Sparkle Doctor Ezi Grip Shield

The above studies have shown that the biggest market share in Pakistan till of 2005 is of Colgate. Thus, Colgate is the market leader in Oral Hygiene products in Pakistan market share wise as well as range wise.

2.2 SWOT ANALYSIS

2.2.1

Strengths International brand Quality products Complete Range of oral hygiene Innovative products with special features Weaknesses High prices of few products as compared to the competitors Not a worldwide known brand Opportunities Participation in a growing market

2.2.2

2.2.3


2.2.4

to make consumers trust our brand to make it a preferred oral care brand To break the customer loyalty towards other oral care brands and captures a good market share. Threats High investments of competitors in marketing, distribution, availability etc... Increased competition Entrance of new player with heavy investments Economic instability

2.3 KEY TO SUCCESS

The key to success is Availability

3.0 MARKETING STRATEGY

The marketing strategy will be based on the availability of the products i.e. developing visibility of the brand which will be promoted through good marketing & advertising campaigns; thus, to attract customers by making them aware of the different and more innovative features of the products. Our primary focus will be on the expansion of distribution of the network so that our brand becomes peoples choice when they find Dr. Freshs product in each store.
3.0.1

MISSION
Our mission is to make Dr. Fresh a preferred brand in oral care industry in Pakistan and to own the biggest, wide and unique range of toothbrushes in kids segment.

3.0.2

MARKETING OBJECTIVES

Qualitative To make the brand customers choice in toothbrushes through proper marketing and advertising Quantitative To achieve a sales target of PKR 6.5 million during the first year of Dr. Fresh launch in Pakistan.

3.0.4 TARGET MARKET

SEC A1 According to Qualification Grad & Post Grads (General & Professional) Grad & Post Grads (Professional) SSC+ < Graduation According to Occupation Businessman, Self employed professionals, Industrialists, Officer & Executives Shop owners, Superior Level, Officers & Executives Jr. level, Skilled workers, Petty Traders, Clerk, Salesmen

A2 B1B2

Clerk,Salesmen C Schooling 5-9 years Skilled workers, Petty Traders, Clerk, Salesmen

Schooling upto 4 yrs

Clerk,Salesmen Skilled/Unskilled, Petty Traders,

Illiterate

Skilled/Unskilled, Petty Traders,

According to the above Socio Economic Classification in Urban areas, our targeted customer falls in the group A1, A2 and B1B2. The C category people will might buy the product but they would not be our loyal customers. They might not have the purchasing power and also due to the lack of awareness of oral hygiene.
3.0.5 POSITIONING

Dr. Fresh will be positioned as a premium brand in oral hygiene and oral care products in Pakistan due to its high prices, good quality and innovative products. Customer approach towards the brand will be based on developing proper brushing habits in kids and cleanliness and freshness of the mouth. The communication will help developing the brands image which will be worked on thoroughly.

4.0 MARKETING MIX

4.1 PRODUCT

Initially, we will introduce the following brands in Pakistan 1. 2. 3. 4. 5. Dr. Dr. Dr. Dr. Dr. Fresh Fresh Fresh Fresh Fresh Dailies Tek Firefly Marvel Oral Care

4.1.0 Categorization

4.2 PRICE

DR. FRESH

Adults range

Kids range

Dr. Fresh Dailies

Tek

Dr. Fresh Oral Care

Dr. Fresh Firefly

Dr. Fresh Marvel

To reflect the quality offered and to compete with the strong competitors already exists in the market, the prices of product (mentioned below) is kept where it will not harm the brands image yet is affordable to purchase for our targeted customers. Dr. Freshs prices of Dailies, Tek, Firefly and Marvel are realistic and affordable where prices of Travel kits and Oral Care are a bit higher and need to be revised. Mentioned below are competitors prices of only few products and also the given and proposed prices for Dr. Freshs products.
4.2.0

Competitors pricing

Prices of few of the products of other brands are mentioned below. This is just to get an idea of competitors prices in the market. PRODUCT
FLOSS Essential Floss Whitening Floss Power Floss - electric TOOTH BRUSH Adults Regular Criss Cross Bristles Triple Fan Bristles Whitening Extra Clean with tongue cleaner 360 whole mouth clean Zig Zag Plus PREMIER Smokers with hygiene cap Extra hard texture Flex Direct Reach Twin Pack (regular, simple) Single medium (zig-zag) Power Brushes Kids Range Stages3 -Disney(stationary set) Stages4 Kids2 Training Tooth Brush KIDS Giggles Flex Junior Junior Excellent Jordan Junior TOOTH PASTE Kids Toothpaste P&G: Oral-B P&G: Oral-B Colgate-Palmolive: Colgate GlaxoSmithKline: Macleans P&G: Crest Shield Corporation Ltd: Shield Shield Corporation Ltd: Shield CONCORD - Malaysia Jordan 275 180 35 110 140 35 20 120 80 P&G: Oral-B-exceed P&G: Oral-B - Vision Colgate-Palmolive: Colgate Colgate-Palmolive: Colgate Colgate-Palmolive: Colgate Colgate-Palmolive: Colgate Colgate-Palmolive: Colgate WERRICK: Smokers WERRICK: Smokers GlaxoSmithKline: Aquafresh Johnson & Johnson: Reach Johnson & Johnson: Reach Johnson & Johnson 110 50 80 50 80 50 20 50 180 150 145 125 340

Company & BRAND

P&G: Oral-B Johnson & Johnson - REACH Johnson & Johnson

PRICE
160 135 340

Tweety Other Flavored (Chinese) Adults Toothpaste Oral-B Others (an average price of larger size toothpaste falls between)

Colgate

170 85 110 Upto 100- 200

P&G: Oral-B

4.2.1

Dr. Fresh Product Selection & Pricing

Item Description DAILIES
DRF Tear Drop Mint Floss 130 YD Fresh & Clean Toothpaste DRF Revolution 2pk soft DRF Revolution 2pk medium DRF Massage Prop 2pk DRF 2pk brush & cover DRF JR. DRF Classic CMP to OralB Adv Soft DRF Classic CMP to cool wave Adv Soft DRF Classic CMP to Reach Adv Soft 196 216 221 221 201 218 98 98 98 98

Propose d Price

TEK
Professional Professional Professional Professional Professional Excel Soft straight soft straight medium straight firm angled soft angled medium 135 135 135 135 135 189

Excel Medium

189

FIREFLY
FRF Barnyard Music TB FRF Original TB FRF Step 1 Lightup TB Float n FRF TB 42MM FRF Floss 4 cnt FRF Adult Flashing TB FRF Toothpaste 398 287 373 392 58 290 352

MARVEL HEROES
Marvel Heroes Travel Kit with key chain buddy Spiderman Barrel brush with suction cup + round cap with 3D sticker Spiderman Barrel brush Spiderman Travel Kit Ziggly Spiderman Sccpted brush 285 207 193 232 265

ORAL CARE
DRF Turbo with ever ready batteries 320

4.3 PLACEMENT

The channel through which product will be transferred to the retailers to be consumed by the end user will be through below mentioned distribution
4.3.1

Distribution

The distribution of Dr. Fresh will be done through regular distributors and through wholesalers. Initially 5 main cities will be covered which includes Lahore, Karachi, Islamabad, Rawalpindi and Faisalabad.

4.4 PROMOTION

Promotions will be run throughout the year based on Special Offers Advertising in print and electronic mediums Outdoor, Instore Branding, Merchandising & other POS material Direct Marketing E-Marketing BTL Activities Public Relations

5.0 BRAND LAUNCH

5.1 PLAN Dr. Fresh will be started off in Pakistan with a soft launch. A heavy marketing campaign will be run after 3 months for the awareness and to establish the brand. 5.2 TIME Soft Launch at the time of availability of the products Marketing Campaign September 25th, 2010 till minimum of 30-45 days of period 5.3 BUDGET PKR 5.5 million 5.4 DETAILS

Theme
The theme of the launching campaign will be based on Hygiene & Freshness

Tagline
The tagline for the launch campaign will be Brush in the hygiene & freshness! Or Clean. Fresh. Healthy mouth! Soft Launch The soft launch will be done to make people aware of the brand so that when marketing campaign gets active people will be well aware and responsive to the campaign.
5.4.0

The soft launch includes exclusive product displays that entice customers to buy the product. This needs to be done to differentiate our products from the other so many toothbrushes which are dumped in any basket or racks in the stores. Along with this Posters will be placed instores to tell people about the brand availability in the stores.
5.4.1

Marketing Campaign

The marketing campaign will be run in September after Eid ul Fitr when all other activities slowed down and people get back in their normal routines. This is due to the fact that before and during Ramadan all FMCG companies are mostly active and doing advertising and marketing very heavily. Mobiles will be hanged instores for the purpose of dcor to create the impression and to inform people about the availability of the brand in Pakistan and to grab the attention of visitors. Flyers will also be distributed and will be placed at cash counters. 3 persons will be hired for Lahore to wear toothbrush mascot who will stand at the entrance of different stores covering all major stores of the city. They will distribute flyers among adults and kids. ATL campaign of Dr. Fresh will be started at the same time which will cover TV and print Ads.

5.4.2 Budget Spread

Launch Plan
Dr. Fresh LAUNCH PLAN - Lahore Only Sr. No. 1 ELECTRONIC CABLE Local Cable Operators (local operators + world call) - including CD Channels, Cartoon Network & other international channels HUM TV Package (minutes purchase) 1,500,0 00 1,950,0 00 Qty 15 @ Rs. 30,000/- each per month Cost

450,000

1 2 3 4

PRINT Jang (front Pg, colour Ad, 5x2) - Sunday only News Instep (20 x 3) Dawn Images (qtr pg) Daily Times Sunday Magazine

4 insertion 4 insertions 4 insertions 4 insertions

550,000 200,000 784,000 72,000 1,606,0 00

OUTDOOR 1 2 Streamers Activity (DHA, Cantt, Gulberg & others) Hoarding 500 Polls 3 or 4 900,000 1,000,0 00 1,900,0 00 1,000,0 00 175,000 6,631,0 00

POS Posters, Flyers, Brandings, Mascot activity Miscelleneous (including designing & others) TOTAL

Total Marketing Budget:

Month July August/Septemb er October/Novem ber

Activity Launch Campaign Off BTL activity Idea: Puppet show & Magic Show specfically for Dr. Fresh (including Dr. Fresh products and cavities puppets) at Alhamra Awareness (material including print Ads, flyers, Posters) to create hype of this activity - Pre & Post Activity

Cost 6.6 M

1M

Total

1.5 M 9.1 M

6.0 CONCLUSION
Despite of the major ups and downs in the Pakistans economy during the last few years, it has been seen that cosmetics and toiletries industry has shown a good growth over the years and companies already operating in this segment have invested heavily in marketing and advertising to achieve their goals. Oral hygiene market in Pakistan has experienced an average growth of 3.4% during 2002-2007. Thus, by seeing at the previous trends and According to Euromonitors Cosmetics & Toiletries senior industry analyst - Cosmetics & Toiletries and Personal Care products market is more dynamic than developed markets, so there are greater opportunities for value gains brands operating in oral hygiene market shows a positive response towards the industry. Although the consumer disposable income is growing in Pakistan but people are still avoid purchasing luxurious items and are more focused towards essential products like toothpastes, soaps etc. Therefore, investing in such a brand like Dr. Fresh in Pakistan seems to be a successful move for the company.