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BABO DETERGENT

MKT-416 Prepared for MOHAMMAD ANAMUL HAQUE SENIOR LECTURER Department of Business Administration East West University

Prepared by Md.Anisur Rahman ID: 2008-1-10-051 Asif Ibnay Matin ID: 2008-1-10-030 Mohammed Imran ID: 2006-2-10-156

18 April, 2011

1. Executive summary:
Serial numbers 1 2 3 4 5 6 7 8 9 Topic Executive Summary Page number 4

Rationale for Product Selection 4 Mission and Vision Target market analysis SWOT Analysis Objectives Goals and Targets Brand Elements: Mix & Match 4 5 6 9 10 10

Leveraging through secondary 16 Brand strategy

10 11 12 13 14 15 16

Value Innovation Differentiation BLUE OCEAN The Four Actions Framework Brand sense

18 18 19 20 22

The three tier of non-customers 23 Conclusion 24

Quality of detergent has become a major issue for the babies all over the world. Especially in developing countries like us, we have serious quality problems regarding detergent. In order to change this scenario, it is necessary to give the parents more relieve in using detergent for their babies. It is used to measure the gap between quality expectations and perceptions in product manufacturing, it possible to establish action plans. In this paper we are focusing on the softness of clothes for the babies. BABO is preparing to launch a washing solution for the baby cloths. We are expecting to become the market leader with the help of our differentiation because of the opportunities available
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in the market like high demand and better quality product. We have targeted upper and uppermiddle class people.

2. Rationale for Product Selection

In the market there are so many different detergents available but most of them are generalized product. There are no detergents especially for babies. As the skin of baby is very sensitive they always need special care. And their cloths need to be washed carefully so the kids can feel comfortable. Thats why we have come up with the idea baby detergent. We want to reduce the trouble of the parents who worry about their baby.

3. Mission and Vision

Our mission is to be the top performer in all that we do, with this in mind we want to go ahead, to continually add value to our clients processes and products by providing highly accurate, reliable, and cost-effective and technologically advanced service. Vision of BABO is to strive to become the market leader in providing reliable BABY DETERGENT for the children.

4. Target market analysis:

Evaluating Market Segment: Orange juice is a refreshing juice so it is difficult to segment the market for the product. But we are going to segment our market on the basis of Demographic and Geographic segmentation. In demographic segmentation we will segment our product with family size, age and life-cycle and income segmentation.

Family size: Depending on the size of the family we are going to introduce our product in different size of plastic packet. Our product will be sold in 250 mg, 500 mg, and 1000 mg. For larger family, we have 1000 mg, for nuclear family we have 500mg and 250mg.

Age and life-cycle: Our juice is natural and fresh. So people of any age can drink it. So there is no limitation of age. To have childrens attention we offer attractive child juice pack featuring favorite Children characters. Young people will take it as drink and older people can take it both as drink and medicine.

Income: In our country every people are not able to spend same amount of money to purchase a product. So for their convenient we market our product in different size of packet. So that different income leveled consumer can afford it. Here our chart goes for BABO on the basis of income level.

Income level Of Customer Upper class Upper-Middle class

Percentage

Juice size

Product price

14% 22%

1000&500mg pack 500&250mg pack

150&80 80&40

Geographic Segment: As a new product in the market it is not possible for us to distribute our product to every corner of the country. So we made a survey and identify some major city those are going to be best place for our product. In geographic segmentation we will distribute our product in seven metropolitan city of Bangladesh, and these are; Dhaka, Sylhet, Chittagong, Barisal. After that we will distribute our juice in some selective district.

Effectiveness of Segments: We have discovered that our market segments are measurable by the size,

purchasing power and profit. It is easily accessible so we can reach and serve our customers well. The market is much large enough to earn profit. There are a large number of people who are
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willing to spend some amount of money to have detergent for babies. Segments that we have made to cover are differentiable. We have different offer for different types of people. And finally we are very much able to serve and compete in the market.

5. SWOT Analysis:
The following analysis illustrates the internal and external factors affecting the marketing opportunities of BABO entry into the Bangladeshi market. The most favorable internal factors for are increasingly affluent customer segment and their growing demand for washing the clothes for baby. The uniqueness of the product offering will be a great asset to the company and will help to attract the desired demographic in spite of competition by other companies into the detergent company. BABO has several powerful strengths one of them is unique products but our major weakness is goodwill problem. Major opportunity is growing demand on this products. We are also going to face some threats like cost of ingredients.

I.

Strengths

Soft clothes for BABIES: our main target is soft cloth for baby. Other detergents are make the clothes hard but our product make that soft and clean for babies. Modern and Exclusive detergent: BABO is a product of renown company Square . These product is very modern for the Baby who born yesterday. The outlook of the product is so beautiful. That is very attractive for MOTHERS and this also works as a promotional tool for us. Product Quality: Our detergent is of high quality. There is always a supervisor to take care of each child. Any kind of germs are finish by this detergent. we are not going to compromise our product quality. We have planned to increase the product quality in future. Managerial Structure: Our managerial structure is nicely designed. Top management is always very much careful about every step taken in the organization. Lower level management is always
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with connection to the upper level. Top-level management shares relevant information to the lower level so that they can take part in decision making. The decision making process is completed by all the accountable employees in the organization.

II.

Weakness

Experience: We have no experience about this kind of product because we are the pioneers in this business in this country and also there is no such kind of business with which we can benchmark. So we are not getting the right and perfect information from anywhere. Financial Resource: To start our business we are focusing on our one source of fund and bank loans. Though square is our mother brand but they invest some money because this is a new product. But we have only that amount which is required to start the business and carry out the day to day operation. Small target market: our target market is too small. our product is not for all category people, our target is upper-middle and upper class people, the price of the product is higher then any other detergent in the market. This is one of the major weaknesses of our products. III. Opportunity

Increasing Demand: BABO is going to add a new era in business because there is no such kind of product in Bangladesh. There is a well chance so that our product can increase rapidly and cover the whole field in Baby product. We are getting a high response in the field. At first our target is well educated women in the Dhaka city after that we will increase our work place in the whole country. Influence of Western Culture: People are getting more influenced by the western way of living life. People like convenient products more than ever. Since most of the parents are dual income earner they would want somebody to take their children soft and comfort clothes. Women in workforce: Now there is a lot of women are working in different fields. We know women are more conscious about their child then men. They have the money to purchase this product for their babies. This is a major opportunity for our product.
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IV.

Threat

Cost of ingredients: In present situation cost of ingredients is not stable. Ingredients cost is a very important element in our business. But it is going up all the time therefore it can affect our business every time and we may face problem regarding this. Entrance of New Competitors: In our business there are not so much competitors but business people are think over our business and going to compete with us in future.

Strength
Soft clothes for BABIES Modern and Exclusive detergent Product Quality Managerial Structure

Weakness
Small Target Market Financial Resource Experience

Opportunity
Increasing Demand Influence of Western Culture Women in workforce

Threats
Cost of ingredients Entrance of New Competitors

6. Objectives:
The objectives of the company that we have to achieve are:

Increasing Market Share: We want to increase our market share to 60% by next two years.
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Increase the service line: We want to provide service other metropolitan areas schools as well within the next three years. Increase resources: We want to increase the number of busses by acquiring four more buses and also our service quality within the next four years. Issues: Our major issues are to establish our business in profitable way with giving best service. We are going to invest heavily so that we can get a well response from the market. We also must measure awareness and response so that we can adjust our marketing effort if necessary.

7. Goals and Targets

We have set our goals and going in the right tract. Our goal is not only profit but also giving a best service to our customers.

Best Quality: BABO is going to give a best quality service to the customer. For that reason we have done a market survey and wanted to know what the demand of customers is. We can minimize our profit but cant compromise with our quality service. Minimize the Cost: We are going to take some initiative so that we can minimize our cost of service. One way we can minimize cost is we can go for cost synergy and also technology synergy. We use CNG as a substitute of fuel which will minimize our cost. Profit: Our farm is a service related business farm so one of our main goals is profit. Without profit no business firm can survive. So we are going to build up a profitable business but we will not compromise our service quality.

8. Brand Elements: Mix & Match

Brand elements, sometimes called brand identities, are those trademark able devices that serve to identify and differentiate the brand. The main brand elements are Brand name Logo and symbols Characters Color Slogan Package

8.1Brand Name:

We choose our brand name will be BABO. While choosing this name we consider some aspects. The reasons for choosing are

Meaningfulness:

The word BABO always draws an image of something related to children in our mind, so the word fun is representing that our product is for the children.

Unique within the industry:

The product that we are introducing in the market is totally new in our country. There is no detergent especially made for the childrens cloth. As there is no existing baby detergent in our current market that is why we are introducing this product to the consumers.

Sweet and easily pronounced:

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Our brand name is really sweet. It has only one word that rolls off the tongue smoothly. So it has a good alliteration. As it is easily pronounced any one can recall it easily and dont need to hear the name for second time even it is using on phone or internet.

Memorable:

The word BABO will help people to make a unique image in peoples mind and also the easy pronunciation will help to do that.

Flexible and expandable:

As square is a very big company but it has no line especially for the baby products. That is why now we are trying to introduce a separate brand for the baby products which will be named BABO. We are just introducing this line with this BABO detergent for the first time but we have planned to introduce other products under this brand name in the near future.

Embrace our company personality:

Our company is for serving safe and fun journey to the children. So the name fun gari is perfectly fits with our company personality.

8.2 Brand logo & Symbol:

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The BABO logo expresses some various ways.

Scalability:

We have paid major attention to the scalability of our logo. That means, it can be re-sized with ease, all the while maintaining its recognizable form and expressive imagery. We can use our logo look good from the bill-board to ink pen.

Looks good in black and white:

We can make sure that our logo design shines in both form and function no matter how it is rendered. Our logo can easily bounce between web and print arena. That means our logo is fairly flexible to be presented both in color form and in black and white form.

It is timeless:

Our logo will be just as effective 50 years down the road as it is today. Because, we have used cartoon character and words which are always use represent the comfort that this product will provide to the babies of all era. This will never allow anyone to pinpoint the era in which it was created. That is why we can say that our logo has no age.

It is memorable:

Our logo can make a place in customers mind easily because we are using cartoon character which will represent a happy baby. Especially, the typography and character will help people to make our logo more memorable. All these things will make the logo memorable.

Originality:

The cartoon character, the multiple color words has given the originality to our logo. As we have used multiple colors in our logo it cannot be easily mixed up with other logos.

Clean and clear:

The biggest success of our logo is that, it is clearly and cleanly conveying the category of our product to the customers.

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BABO is expressing the concentration and dedication of our organization towards the baby product category. We have used multiple colors that will attract both children and their parents mind. To wrap up, we can say our logo is naturally memorable, original, clean and clear and timeless which will take it to next level of greatness.

8.3 Color We are using three basic colors for the logo and for the packaging of the product. Here in the logo of the product we are using the Purple color which represents the position of rank, authority and privilage. We are using the Lemon color in the background which will represent the sense of freshness and cleanliness that the babies and their parents will experience.

8.4 Slogan Our slogan is Its all about your Baby Reasons for selecting this slogan are,

Simple: Our tagline is simple enough for everyone to understand. Because of its simplicity it will have an easy access to the mind of our target customers.

Memorable: Our tagline has an appealing flavor to the parents who are conscious about their babies as it is helping them to be more careful and protective to their babies. The meaningful word of the tagline will make it memorable.

Clarity:

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Our tagline is clearly emphasizing on the care for the babies. It is expressing about our product which will make the babies much more comfortable in their cloths. They will love to wear cloths which will be much more soft and comfortable than ever before.

Customer focused: Our tagline is customer focused because here we are making the parents much more concern about their babies.

Unique: Our tagline is definitely unique in the industry because we have no competitors in this product line. So we are introducing a totally new product In the market.

Benefit driven: Our tagline is representing the core benefit of our product which can make the cloth soft.

Catchy: ITS ALL ABOUT YOUR BABY has a catchy and attractive mood to the PARENTS.

Informative: The tagline is informative as it is expressing the key point of our product.

Believable: Our tagline is enough believable there is no vague idea about our product.

8.5 Packaging: Packaging is the activity of designing and producing containers or wrappers for a product. Packaging can be described as a coordinated system of preparing goods for transport, warehousing, logistics, sale and end use.
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Here we are using a plastic container for the good protection of the product and for graving the attention of the people.

As we all know that packaging if the last 15 second marketing tool because when people see the product in front of them then they think of purchasing the product. Thats why here we design our packet in such a way so that we can grave the parents attention for their so that they start purchasing this product.

9. Leveraging through secondary Brand strategy:

What is Brand Leveraging? A brand leveraging strategy uses the power of an existing brand name to support a companys entry into a new, but related, product category. Brand leveraging communicates valuable product information to consumers about new products. Generally, consumers maintain a consistent brand perception for established brands. Leveraging secondary brand association is important to reinforce the existing brand associations and responses in a fresh and different way. Brand leveraging does present challenges. To avoid brand dilution, leveraging should be limited to entering only those
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categories that are directly related to the original product. Also, manufacturing and inventory costs may be higher as a result of product diversification. A brand leveraging strategy can be extremely successful and profitable if it is correctly implemented and provides new products with the right image. Secondary brand knowledge can be created through linking the brand to: Companies Countries of origin Channels of distribution Other brands Characters Spokespersons Event Other third party sources

Why is Brand Leveraging Important? Brand leveraging is an important form of new product introduction because it provides consumers with a sense of familiarity by carrying positive brand characteristics and attitudes into a new product category. Instant recognition of the brand is established, and consumers with a favorable brand opinion likely will try a new product they perceive to have a similar quality level and attributes as their original favorite. Additionally, because the products are in different categories, they will not compete for market share the crux of a successful branding strategy. Our Secondary Brand Associations are:

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Company (Square): our product is detergent. So, after considering all the factors, we have chosen our secondary brand association as SQUARE. SQUARE is a renowned

company in consumer product industry.

Country of Origin (BANGLADESH): SQUARE country of origin is BANGLADESH. Spokesperson (Bipasha Hayat): Bipasha Hayat is a nice and jolly-minded artist of Bangladesh. She is very much conscious about their children. So our spokesperson is Bipasha Hayat.

Character: we are using the cartoon character which has a smiling face.

10.Value Innovation
10.1 Differentiation: Point of Difference is the benefits which are strongly associated with the brand and positively evaluated and believed that these are unique to that brand. The PODs of BABO are as follows:

1. How to make: this detergent is made with fully automated machine. There is no use of hands. The ingredient that we are using in this detergent is not harmful for babies. We are using 100% natural ingredients. element is being used for is detergent, which
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can make the clothes softer. We are focus on this element to differentiate our BABO detergent from others.

2. The latest: Our product is very much latest and we use the latest technology for this product. We are using the latest ingredient for this BABO, which can make your baby cloth softer and clear. BABO is environmentally safe, even for grey water

3. Specialization: we are specializing to make your baby cloth softer which other detergent cannot. Our main objective is to give the comfortable cloth for your baby and BABO is specializing on that category.

BABO should increase the association with their PODs so that they can increase the numbers of loyal customers and make strong competition with other brands. As a result, BABO can grab larger market share.

10.2 BLUE OCEAN Blue oceans denote all the industries not in existence todaythe unknown market space, untainted by competition. In blue oceans, demand is created rather than fought over. There is ample opportunity for growth that is both profitable and rapid. In blue oceans, competition is irrelevant because the rules of the game are waiting to be set. Blue Ocean is an analogy to describe the wider, deeper potential of market space that is not yet explored. The corner-stone of Blue Ocean Strategy is 'Value Innovation'. A blue ocean is created when a company achieves value innovation that creates value simultaneously for both the buyer and the company. The innovation (in product, service, or delivery) must raise and
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create value for the market, while simultaneously reducing or eliminating features or services that are less valued by the current or future market.

BLUE OCEAN FOR BABO

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The Four Actions Framework: To reconstruct buyer value element in crafting a new value curve we have developed the four actions framework.

ELIMINATE Traditional detergents contain harmful chemical that are too harmful to skins especially to babies. Its a big no-no to wash babys clothes with the rest of the laundry. People dont want to put their child at risk of acquiring skin diseases. Baby skin can be so sensitive. They could get rashes, skin allergies, and eczema especially from regular detergents and other laundry products. Certain chemical ingredients in these products are simply too strong for childs delicate skin. In our detergent we have identified those harmful ingredients and eliminated them.

REDUCE Firstly we reduced soaking time. Other detergents need at least 15-20 minutes to be perfectly soaked. But our new detergent need only 8-10 minutes. Again we also have increased the power of the powder. So now it requires less powder to wash cloths. In our country many people still wash cloth with their hands. Normal detergent creates many problems for skins because those detergents contain harmful substance. In this specialized detergent powder we have successfully reduced those harmful substances.

RAISE

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We have raised the after-wash softness quality of the clothes. Generally a cloth keeps losing its softness after every time its being washed. But with our advanced technology the baby cloth stays even soft after every wash.

CREATE Baby skin and health are very sensitive. This detergent contains anti-bacteria formula which removes any bacteria from the cloth. So the parents can feel safe about the baby.

10.3 Brand sense BABO detergent is a provider of a reliable, safe detergent. It is offered specially for childrens to ensure their comfort. It is a new type of product in the market. In our branding strategy we have learnt about brand sense. We have five sensory systems for an individual. For branding strategy for BABO detergent we can apply brand sense in a broader way. Brand sense can be applied in such a way:

SIGHT: 1. Colorful packaging and powder 2. Cartoon character The colorful package is attractive enough to strike in the mind of the customers. The main

product, the detergent powder is also colorful.

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The cartoon character used as the mascot is also an attractive figure which spreads joy and delight to the people. The smiling face of the cartoon can convince the consumers who will buy BABO for their baby.

SMELL: 1. Refreshing Smell BABO comes with a refreshing smell so the consumers always feel good about it.

HEARING: 1. Rhythmic brand name The name BABO is sweet and funny to hear and it completely matches with the type

of the product. If any person hears the name once they can easily remember the name at the time of purchase.

TOUCH:
1. Easily grip able can

Our product package is completely different from others. It is smart and easily grip able. While using the consumers can easily hold the can and pour the powder. It feels great to use.

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10.4 The three tire of non-customers:

1st tire

2nd tire

3rd tire

First tire: in this segment we have those people who are eagerly waiting for these kinds of product. So in this tire our priority consumers are the upper class and upper middle class people. Second tire: in this segment we have such customers who like to use traditional powder for their babies and they are not ready to accept this specialized product yet. We have to create some effective value for them by creating awareness. Third tire: it is a segment that is still unexplored. Since the product new in the market we do not want to capture this segment immediately.

Conclusion:
BABO will do exceptionally well after its first launching. At present, growth rate is a major factor. This means the people of Bangladesh will be inspired by the brand name BABO when it comes to the market. Still now, square is doing well with its current brand MERIL. Therefore it can be said without any doubt 24

that BABO has a prospective future if they implement these strategies and tactics effectively.

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