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Presented By: Hina Yousuf Sana Jafri Aqib Awan Abbas Sherazee Jahangeer Ali Khan Faizan Ahmed.

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Presentation on theme: "Presented By: Hina Yousuf Sana Jafri Aqib Awan Abbas Sherazee Jahangeer Ali Khan Faizan Ahmed."— Presentation transcript:

1 Presented By: Hina Yousuf Sana Jafri Aqib Awan Abbas Sherazee Jahangeer Ali Khan Faizan Ahmed

2  Stardust Private Limited  Pure – Moisturizing Hand Wash  Fresh – Body Wash  Face Factor – Gentle Face Wash  New Product  O 0

3  Hina Yousuf  Sana Jafri  Faizan Ahmed  Jehangeer Ali Khan  Abbas Sherazee  Aaqib Awan

4 CEO Director Marketing Brand Manager Assistant Brand Manager Advertising Agency Creative Account Executive Director Finance Manager Finance Accountants Director Human Resources Manager Human Resources Human Resource Executives Director Production Manager Production Production Supervisor Director Sales Manager Sales Sales Executives Distribution Manager Assistant Distribution Manager

5  ‘To manufacture and supply premium quality deodorant sprays to consumers at a cost effective yet profitable price. Build positive relationships with customers and satisfy customer life style and hygiene needs.’

6  ‘To establish ourselves as the only deodorant manufacturing company in Pakistan that produces premium export quality deodorants to consumers within and outside Pakistan. Our vision is to break the perception of associating low quality with locally manufactured products.’

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9  Age  Target market 13 – 25  Habitual users  Life Stage  Middle School, High School, College, or University  Fresh Graduates  Fresh Career  People who are interesting in leisure activities, such as parties and sports

10  Use  The uses of 0º will be as follows:  Daily grooming  Personal care and hygiene  Getting dressed

11  0º is targeting the upper-middle and upper class individuals of Pakistan in:  Karachi: Areas include Defence, Clifton, KDA, Bahadurabad, and North Nazimabad  Lahore: Defence, Gulberg, Liberty, Lahore Cantt, and Model Town  Islamabad: Most of Islamabad is included in the geographic location  Faisalabad: Most of Faisalabad is included in the geographic location

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14  0º will be the only deodorant manufacturer in Pakistan  Since it will be a manufacturer within Pakistan, there will be no payments of customs  State-of-the-art imported machinery  Established corporate image  Low cost labor  Self-generated power supply  Strong liquidity base  Low priced product  Centralized organizational hierarchy  Strong research into target market  Sex appeal used in advertisement, which attracts people  Commitment towards customer satisfaction  Commitment to provide reliable products of high quality  Caters to both genders  Only one other deodorant brand (Rexona) advertises in Pakistan

15  Imported ingredients  Startup cost of capital equipment  Inexperienced employees  Training requirements  No brand recognition  No scent variety  Not accredited by any quality control body  No previous experience in deodorant market  Less market share in initial stages of product life cycle  Not many deodorant users exist in the market (3% penetration in entire population)  0º only targets the upper-middle and upper classes, thus there is a restriction to the strategies being used

16  Expanding targeted markets  International expansion  Increasing shelf-space  Vendor Supply System  Large numbers of sales can lead to economies of scale  Introducing variants in the future

17  Reluctance of consumers to try new and locally manufactured product  Political instability  Competition by large and established multinational corporations  Emergence of more brands  Price wars

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19  Political Issues  Gang Wars  Strikes  Change in Government Regulations  Taliban Threats  Security Concerns  Public Holidays

20  Economical Issues  Global Recession  High Inflation Rate in Pakistan  High Rate of Borrowing  Globalization: The phenomenon of globalization has led to several famous and large brands of deodorants from different countries being recognized and accepted by consumers.  High Fuel Prices

21  Social Issues  Small Target Market  Social Acceptance  Nuclear Families

22  Technological Issues  Lack of Machinery  Lack of Skilled Labor  Lack of Electricity  Lack of Raw Materials

23  Price  Production

24  Product  Place Distribution  Price  Promotion

25  Female Deodorant Ingredients  Butane  Isobutane  Propane  Parfum  Cyclomethicone  Aluminum Chlorohydrate  Talc  Disteardimonium Hectorite  Dimethicone  Octyldodecanol  Butyloctanoic Acid  Theobroma Cocoa Extract  Cocoa Seed Butter

26  Men’s Deodorant Ingredients  Alcohol Denat  Butane  Isobutane  Propane  Parfum  Isopropyl  Myristate  Propylene Glycol  Linalool  Citral  Benzyl Alcohol  Benzyl Benzoate  Eugenol

27 MenWomen Fa (150ml)150 Sure (150ml)190185 Nivea (150ml)260280 Axe (150ml)160- Lynx (150ml)160- Rexona (Roll-On)90 Adidas (150ml)170165 Nike (150ml)170165 Gillette (150ml)195- Impulse (150ml)-120

28 MenWomen Raw Material Cost3034 Overhead Cost44 Labor Cost44 Promotional Cost34 Distribution Cost33 Profit66 Total Cost8185 Distributor Margin (10%)4.054.25 Cost Before Sales Tax85.0589.25 Sales Tax (16%)13.60814.28 Cost After Sales Tax98.658103.53 Retailer Margin9.865810.353 Maximum Retail Price109114

29  Manufacturer  Wholesaler  Retailer  Consumer

30  Penetrate market by 3% in the first fiscal year  Establish competitive prices to capture markets  Create brand awareness through heavy advertising  Solidify distribution base  Build PR through launch event  Achieve high state of product awareness and recall  Achieve economies of scale by June 2010  Build better relationship with wholesalers than rivals  Have a better reputation with customers than rivals

31  To achieve 20% return on capital employed by June 2015  To gain 10% of the market share by 2019  Diversify product range by 2015  Achieve growth of 60% by 2016  Capture different target markets  Establish brand loyalty and equity  Export 0º to far-east and middle east markets by 2025

32  Advertising  Facebook  GT Magazine  96.0 FM  89.0 FM  Billboards  Dawn Newspaper  Daily Times Newspaper  Play TV  Style 360

33  Promotional Campaigns in  Supermarkets  Karachi: Agha’s, Ebco, My Superstore, and DMart  Islamabad: D. Watson, Shaheen, Herald, Jinnah Superstore, and Shams Store  Lahore: HKB, Pot Pourri, Zakah Pharmacy, Liberty, and Europa  Faisalabad: All large stores  Middle Schools and High Schools  Colleges  The best Gyms in each city (such as Shapes and Lifestyle in Karachi)

34  This would be done in the sense of getting media publicity by having reviews and articles written about 0º in magazines and newspapers. There could also be TV and radio presentations given. 0º could also host or take part in charitable events and contributions.

35 Total No. of Cans Sold per retailer, per month20 Total Sale per year240 Total No. of Retailers2500 Total Cans Sold per year600,000 Total SaleRs. 65,400,000 Promotional Cost Per Can34 Total Cans Sold per year600,000 Annual Promotional Cost for Men’s Deodorants20,400,000 Promotional Budget for Men’s Deodorants (Rs. 109)

36 Total No. of Cans Sold per retailer, per month20 Total Sale per year240 Total No. of Retailers2500 Total Cans Sold per year600,000 Total SaleRs. 68,400,000 Promotional Cost Per Can34 Total Cans Sold per year600,000 Annual Promotional Cost for Men’s Deodorants20,400,000 Promotional Budget for Women’s Deodorants (Rs. 114)

37  Total Annual Promotional Cost = Rs. 20,400,000 + Rs. 20,400,000 = Rs. 40,800,000  Total Annual Sales (Forecasted) = Rs. 65,400,000 + Rs. 68,400,000 = Rs. 113,800,000

38  Facebook  GT Magazine  Billboards  Dawn Newspaper  Daily Times Newspaper  Play TV  Style 360  96.0 and 89.0 FM  Event

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40 Television: Dawn News Style 360 Play TV 1 minute advertisement at prime time – 6pm to 10pm. 5 times daily Radio: 96.0 FM 89.0 FM 15 second advertisement at prime time – 6pm to 10pm. 5 times daily Billboards: 4 Billboards in Karachi 2 Billboards in Lahore 1 Billboard in Islamabad 1 Billboard in Faisalabad Karachi: 2 Talwar, 3 Talwar, Shahrah-e-Faisal, Clifton Bridge Lahore: Liberty, Gulberg Islamabad: Block F-9 Faisalabad: Anywhere Internet: Facebook Magazines: GT Once every month – full page advertisement Newspaper: Dawn Daily Times Dawn: Twice every month, so 6 times in the quarter Daily Times: Only on Sunday supplement EventProduct Launch Event

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