Dentonic

Raheel Bachlani Rabia Mujtaba Haider Rizvi Osama Hasham Haqqi

ABOUT THE COMPANY

Ala Chemicals was founded in 1963. One of the initial industries of Pakistan Pioneer of Oral Care Products Pioneers of Tooth Powder Pioneers of the First Animated Advertisement ( Italy made)

Specifications
Production Area 5000-10000 Square Feet Laboratory with Quality Assurance Have their own Dental Doctors Export to Middle East Countries Reported Sales of about 1 million US$ to 1.5 million US $

Competitors
Medicam English Forhans Aqua Fresh Colgate

About The Product/Service

SWOT ANALYSIS

STRENGTHS
Dentonics products with low price and High quality. Distribution of Dentonic is all over the world. Best machines and materials available for high efficient production. Computerized productions with the best plants available

WEAKNESSES
Loss bearing during natural disasters Giving the distributors a completely new business with the cancellation of their previous balances. No proper feedbacks available.

No proper Advertisements and media campaigns available for the products.

Absence of some products which are only for export end.

OPPORTUNITIES
Expansion in major cities and areas.

Production of tooth powder with the best available resources.

New product lines such as Tooth pastes and Smokers powders etc. The price structure mismatch with the customers demands. Innovations Like Miswak powder. Used by Miswak users and they responded very well because the product was according to their level and taste and work.

THREATS
Globalization Powders are now obsolete. Major of the generation are now going towards pastes. Providing their products to NGOs on no profit, No Loss basis but the NGOs sells those products in the market again.

Hospitals and Hotels taking their hand sanitizers for free but then they are also selling that in the markets.

OPPORTUNITIES AN ISSUES ANALYSIS

Analysis of Opportunities
Use of toothpastes is related to health.

Consumption all over the world.

Flavored toothpastes for kids.

Miswak toothpaste attract more customers.

Mouthwash instead of Toothpaste for old age people.

OBJECTIVES

GOAL FORMULATION

PLANNNING PROGRAM

PROBLEMS OR ISSU

NATURE OF PROBLEMS / ISSUES

CURRENT POLICIES
Image value Yellow colored bottled tooth powder. Personnel value Door to door sales. Service value Dentonic recommended Sales person and Doctor in every popular super market of city. Product value Core benefits Augmentation Packaging Economical with good quality. - Stronger and white teeth. Less Cavity. Protection against germs. Free toothbrushes with product. - Primary Packing

Customer Value
Image Value Ek Blue tube wala toothpase and Yellow bottle

Customer Ki Awaz

My father use it and I havent seen him using any other Powder or Paste Personnel Value Frequent Management Trainings Dentonic Sales persons at Naheed/Makro/Chaseup from 9 pm to 5 pm

Customer Value
Product Value

Customer Ki Awaz

10 Customers were Given a choice of choosing 1 toothpaste Out of Medicam/Forhans/Dentonic Guess what Dentonic was selected 9 times The result was opposite in Dentonic Vs Colgate Why? :S Dikhne mei acha hai Pakistani Brand hai Service Value Money Back Guarantee Some disruptions in delivering the product Customer Ki Awaz

Recommendations
A proper track of stocks should be maintained. Stocks should not be
Advertize yourself as much as possible. People today want to know about Dentonic on Television, Radio and other communication channels. Door to Door sales today cannot cover the population of Pakistan. So its best that promotion schemes should be launched in the densely populated areas.

outdated, over stocked and under stocked at critical sales point. Online Buying and selling can also improve the Image of Dentonic Always compare your products with others to

A proper feedback system whether online or offline should be launched

Proper Sales Person Training Should be carried out
atleast once/twice in a year

keep

track

of

how

Dentonic

is

performing with respect to others.

Sales Person should be available till the closing time of superstores/wholesalers.

Support Services
Money back guarantee Customer Survey & Feedback Free Dental Checkup Camps

Packaging
Primary Packaging Shipping Packaging

NEEDS
Lack of avalaibility

Lack of visibility
No advertising efforts

Quality

Positioning
A yellow can toothpowder!!!!!

Positioning
No Positioning of toothpastes

Reasons for poor positioning

Lack of awareness Lack of availability Lack of visibility

ACTION PROGRAM

Developing Strategies
Telemarketing

Display areas
Billboards

Use of traditional advertisements.

Awareness seminars in hospitals

Free gifts and promotion items on bulk purchase

Requirement of strong retail network

ACTION PLANS

 Brand repositioning. Customer service regarding dental care. Protection against Unpleasant smell during Ramzan.

FINANCIAL PROJECTIONS

Budget Plan

Milestone

CONTROLS

Feedback Mechanism

Control Mechanism

THANKYOU

Customer Cost
Time Cost
10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 ToothPaste Normal/Sensitive ToothPodwer Smokers/Sensitive ToothPaste Gel Toothpaste Miswak Dentonic Powder

Kilometers

Kilometers

Small Retail Stores

Big Retail Stores

WholeSalers Super Stores WholeSalers

Competitors
Energy Cost Psychic Customer Ki Awaz

45

Monetory Cost English ToothPaste Medicam Colgate Dentonic

40 35 30 25 20 15 10 5 0 English Medicam Colgate Dentonic Closeup Grams Retail Price

Consumer Buying Behavior

Details
The following data was carried out from 23 people at Naheed / Chaseup/ Diamond Supermarket/ Makro Every Socio-Economic Class was asked questions After competitor/Dentonic related produt questions, the buying behavior was decided.

Customer Buying Behavior

Buying Behavior in toothpaste depends upon: A. Class Factor B. Psychic Factor

High Involvement Significant Differences between Brands Complex buying behavior

Low Involvement

Lowe Not so and Variety-seeking buying 5 Sensitive percen behavior People middl Class Habitual buying behavior

Few Differences between Brands

Dissonancereducing buying behavior

Sensitive People
High Involvement Significant Differences between Brands Complex buying behavior Low Involvement Variety-seeking buying behavior

Upper Class

Few Differences between Brands

Dissonancereducing buying behavior

Habitual buying behavior

Recommendations
Advertisement can attract more habitual buying behavior Awareness Should be made among

For Upper Class too advertisements should be made for variety seeking buyers.
Take Care of shelf space

habitual buyers Try to create products for lower class at low prices (can be of small size) just like upper class so at least they should know the product
Try to make more innovative products for sensitive class

Make each and every flavor competitors are making.

INDUSTRIAL ANALYSIS

ERA of Customization
The World is changing day by day, consumers needs are changing. There is a 360 shift seen in the markets; now consumers decide what and how they want!!

TOP 10 Toothpastes
1. 2. 3. Sensodyne Pronamel Colgate Total advanced whitening Crest Pro-Health Enamel Shield Toothpaste 4. Aquafresh 5. Arm & Hammer Advance white Baking Soda and Peroxide 6. Arm & Hammer advance white brilliant Sparkle toothpaste 7. Colgate Baking Soda and Peroxide Whitening Oxygen Bubbles Brisk Mint Paste 8. Colgate Sensitive Enamel Protect 9. Mentadent Advanced Breath Freshening 10. Crest Tartar Control Whitening Plus Scope Cook Peppermint Liquid Gel

Toothpaste Manufacturer
Multinational National

Dentonic Offerings
Toothpowder
1. Dentonic powder 2. Dentonic Smokers 3. Dentonic Plus

Toothpaste
1. Ultra whitening Cinnamon Euclyptus Peppermint Lemon 2. Dentonic Miswak 3. Dentonic Flouride 4. Dentonic for Sensitive teeth

Past 4 years
Market Analysis
Growth in volumes of powder is because of the purchase of the powder variants by NGOs and other charity organizations Help to the flood victims and to the distributors loss of Rs. 1.5 Crore in last four years Provides products to NGOs on non-profit terms and basis
50 40

% Growth

30 20 10

2006-07 2008

0
-10 -20

2009

Future 4 years
Market Analysis
Maintain volume throughout the years
The powder volume is planned to be remain same for next four years The company is also planning to increase the overall sales by 20%
25 20

% Growth

2011-12
15 10 5 0

2013 2014

Competitor -Market Analysis

Colgate-Palmolive is a 34 billion dollar company Colgate-Palmolive operates in over 90 countries around the world, there should be no reason to see falling revenue or operating margins for this company with growing demand of these products Colgate has seen nearly 11% quarterly revenue growth Colgate's operating margins stands at over 20.39%

Recommendations
The company is high at CSR; it should analyze the annual profits and then set a percentage for such activities The company should divest few SKUs of powders if they are not producing the profits The company should focus on creating value rather than increasing volume The company should change its target markets and positioning and producing the product at lower prices for the NGOs and charitable organization With R&D, company should also focus on promoting the product

The company should develop strategy to beat other local companies and their preferred products

MICRO/MACRO ENVIRONMENT

Macro and Micro Environment

Marketing management is to build healthy relationship with customer s by creating customer value and satisfaction.However marketing managers cannot do this alone.

Major Actors in Microenvironment

With reference to dentonic ,
1.THE COMPANY 2.SUPPLIERS 3.MARKETING INTERMEDIARIES 4.COMPETITORS 5.PUBLICS 6.CUSTOMERS

1.THE COMPANY
In the case of dentonic we have found some drawbacks in the inter deptt coordination.
The companies that always excel are those in which there is strong coordination between marketing, sales and research & development

2. SUPPLIERS
We have observed that shortage or delay tactics from the suppliers can also provide dint to the customer indirectly and customer will not buy that product which is not frequently available in the market
In this case rising prices of raw material have also made a jerk in supply chain activites and in bigger picture it will decline the sale volume as well

3.MARKETING INTERMEDIARIES
Majority of us havnt see any media publicity of dentonic from a long time.This thing reflect either the quality is not up to the mark or standard or it is a flaw of intermediaries that are not placing eye catching signboards and media advertisement Also there is a need to improve distribution network nationwide .It also share the company burden and give chances to improvise services nationally and new people some time give more advantages then the older one.
GOOD ADVERTISING DOES NOT JUST CIRCULATE INFORMATION. IT PENETRATES THE PUBLIC MIND WITH DESIRES AND BELIEF. (LEO BURNETT)

4.COMPETITORS
Mainly dentonic company is fighting against few local groups in which Medicam(Roomi enterprises), , Protect (roomi enterprises), Neem (tulsi trading) , Forhans (biofar chemical) , English , Doctor (Ehsan Harford) ,Macleans ,Mr white are the leading competitors
While majority of markets are under the acquisition of some multinationals that are; Colgate ,Closeup ,Pepsodent ,Sensodyne, Aquafresh.

RELATED EXAMPLES:
According to Mr. Mobeen Ahmed (looking after grocery department of chaseup) Out of all the variants dentonic has there are 3 customers per day for every variant of dentonic The export quality products kept at chaseup has slow business then local Only 20 cartons per variant is bought in a month compared to other oral care products and stocks are also returned every month Dentonic sales ratio is 1 to 5 compared to Colgate Dentonic sales ratio is 1 to 2 compared to Medicam Dentonic sales ratio is 1 to 1 compared to English

5.PUBLICS
Is a group that has an actual or potential interest in or impact on an organizations ability to achieve its objective FINANCIAL PUBLIC: Right now company is neither listed in stock exchange due to less company worth in the existing market nor the company have some private shares offering to the ordinary public GOVERNMENT PUBLIC : The company sale raise to triple because number of Ngos and other Govs are buying there products due to there low prices in the time of flood fiasco.

6.CUSTOMERS:
One good thing I have found which is the Dr.Dentonic availability .You can get easy and usefull tips for your teeth problems.
Only the less price notion is the factor that compel the customer towards there products. Is too ordinary that at first instance person thinks that it was made by some non professional person

AS WE ALL KNOW THAT FIRST IMPRESSION IS THE LAST IMPRESSION

MAJOR FORCES IN MACRO ENVIRONMENT 1. DEMOGRAPHIC ENVIRONMENT

Around 10 years back dentonic tooth powder was usually seen at every home but now due to the changing living standards (changing lifestyles) Due to population surplus factor they have lost the synchronization between supply and demand and fails to the customer expectation In Pakistan majority people are young so they do not try to follow one thing they like change in every aspect (youth envolvement) This white collared paradigm shift has also make impact directly on dentonic powder due to which there products are totally neglected in urban

2.ECONOMIC ENVIRONMENT
These products are available according to the pocket value of customer in various sizes from 25 mg to 175 mg tooth paste.

Due to less prices number of NGOs and GOVs buy these products and circulate in the affected areas .

3.NATURAL ENVIRONMENT
One thing need to remember that the company is using items free from pollutants and the packaging is under the proper hygenic environment

4. TECHNOLOGICAL
The technology they are using is up to the mark if we compare it with local manufacturers facilities either in product development, multi layer packing

5.POLITICAL AND SOCIAL ENVIRONMENT

Agencies in respective to dentistry are taking under table corruption and ruining all product and quality standards of this field.It perceived to be that in Pakistan that no company can get different dental certifications like FDA and etc without it. Number of taxes are also a hurdle for these local companies

DEFINING VALUE (SEGMENTATION/TARGETING/ POSITIONING)

Segmentation

Geographic

Demographic

Segments

Behavioral

Psychographic

Recommendations
Orange Flavored toothpaste for kids. Miswak/other flavor in toothpowder. Mouth wash for older people with weaker teeth.

TARGETING

Targeting
Geographical Country region Population Density Climate Demographic Gender Age Family size Income group Psychographic Lifestyle Social Class Behavioral Occasion Loyalty status Usage Benefits All Pakistan Bangladesh Srilanka Saudi Arabia Urban/Rural Any

All All except kids Any Lower, Middle, upper middle and high class.
Teenage, Middle agers, Elderly Rural, Lower, Middle & Upper Class Daily (once or twice) High Heavy Yes with brush pack

Targeting
Toothpastes for Upper/ Middle Class Toothpowder for Rural /lower Class Gels for youth Smokers toothpowder for smokers Dentonic Miswak for Upper Class

Recommendations
Create Awareness Print and Electronic media campaigns Customer Feedback Sales Promotions.

Positioning

Recommendations
Clear Tagline in Promotions Post purchase support Web Existence Availability and Visibility of the product

Creating Value

PRODUCT

Product
Item 1

Product Levels Core Benefit, Actual Product, Augmentation Individual Product Decision Packaging, Labeling, Support Service Major Brand Strategy Line Extension, Brand Extension Product Mix Product Mix Width, Product Line Length, Consistency Product Life Cycle

Item 2

Item 3

Item 4

Item 5

Core Benefits

Product Levels

Stronger & whiter teeth Anti-plaque, Lesser Cavity, Brighter Teeth Protection for gums & teeth

Augmentation
Money back guarantee Free tooth brushes

Actual Product
Tooth Paste Toot powder

Labeling
Core benefits Directions to use Warnings Ingredients Contact Information Price Expiry Date Weight Barcode Product Information

Brand Strategy
Line Extension
Low Price toothpaste
New flavor for elite class

Brand Extension
Mouth washes Tooth brushes

Product Mix
Product - Mix Width
Toothpaste Toothpowder

Product - Line Length

Ultra whitening Gel (70g/170g) Refreshing Lemon Mint Refreshing Eucalyptus Mint Refreshing Peppermint Refreshing Cinnamon

For Healthy Teeth & Gums (180g/90g/45g) Plain With Mouth Wash Faster Stain Remover (55g) For Smokers

Flouride Toothpaste (200g/125g/75g/50g/25g) Calcium + Triclosan For sensitive teeth Miswak Al Assil (170g)

For Sensitive teeth

Product Life Cycle

Decline stage Sales volume is very low Minimum profit Trying to move the brand back to growth stage, by catering the needs of different segments. Their coming up plans are introducing new product categories and also new variants of existing products.

Section Header

PRICE

Cost based pricing

Formulation Packaging Storage Distribution Utilities Labor

Toothpowder
Price ranges Between PKR 10 to 40 Low production cost Low cost of material and components Less demand

Product

SKU (g)

Price (PKR)

SKU (g)

Price (PKR)

SKU (g)

Price (PKR)

Dentonic Powder

45

12

90

20

180

35

Dentonic Powder with Mouthwash Dentonic Smokers Toothpowder Dentonic powder for Senisitive teeth

45

12

90

20

180

35

55

90

55

90

Toothpaste
Price ranges Between PKR 60 to 150 Good quality plastic squeezable tubes For export to Middle East and KSA

Product

SKUs (g)

Dentonic Sensitive Dentonic Ultra whitening (Eucalyptus, Lemon, Refreshing peppermint, Refreshing cinnamon) Dentonic Original

75 70, 140 & 170

125 & 200 170

Dentonic Miswak

Product mix Strategy

Product Line Pricing rather than Single variant. The pricing is based on the cost differences between the products and customer evaluations of different features The customer can get the Dentonic product for as low as PKR 10 to as high as PKR 150

The ranges provide an edge to the Dentonic for catering more market segments

Response to Price Change

As a consumer product, it cannot change prices frequently
Change in price is not seen due to change in consumer product Change in price can divert customer

Competitor product at cheaper rate

Habitual/ Variety seeking Behavior of customer

Reasons
Economical condition of country

Perception and mind set of customer

Recommendations
Value based pricing; the company should go for this rather than cost based pricing because the promotional activities are almost non existent in the company and only those customers are buying it that has some value in their minds for the Dentonic Brand. Innovations and improvement in the manufacturing process must be brought in to decrease the overall cost of the product e.g. Automation of packaging operation. Price adjustment strategies must be offered to the customers e.g. discounts to increase sales of the product and attract more customers for trial and then usage. Other offers like providing free complementary product with toothpaste must be introduced. Innovation of the unit pack of powders which would ease the use of Dentonic powder and increase the sales and will attract more customers. This can be done by offering a finger tip brush with powder inside it with unit consumption pack in the form of blisters and that can be used during travelling as well. This will not only innovate the Dentonic powders but will also be more consumed as very rarely such products are found in Pakistan and foreign markets.

Recommendations
Targeting more segments; as Dentonic offers many toothpastes with good packaging for foreign, these products can be offered to many segments within country to increase the overall sales of the products Dentonic was the first to launch the Sensitive Toothpaste but Colgate won the game by extensive promotional activities and creating values in the eyes of customer; The company should invest more in marketing activities to create value in the eyes of customer parallel with the Research and Development Promotional pricing; this should be done atleast once in a year to have peak sales and more customers trying Dentonic. This could be done on some special event or can be done for specific segments like for children or senior citizen. This can be carried out by going to schools and organizing seminars and providing coupons to buy the Dentonic product from any retailer with specified discount. This can also be done at malls to attract people of every age, the most potential segment is Housewives because mostly they make the decision for such consumable items. Targeting them and the children will definitely increase the sales

PLACE

Place
Item 1

Distribution Network Local Market, International Market Distribution Channels

Item 2

Item 3

Recommendations

Distribution Network
Local Market
Across various cities of Pak
Small no. of distributors about 250 only Sister company named Royal Distribution Line, for KHI only Promotional distribution till 5yrs Bangladesh Srilanka Saudi Arabia

International Market
Small distributors in :

Distribution Channels
Retailer Whole Seller Hyper Markets

Weakness
Weak distribution
Unable to meet even the low demand Lack of availability E.g. Macro

Recommendations
Efficient distribution Ensure availability

Communicating Value

BCG MATRIX
On the whole company is in the question mark figure where market growth rate is very high and the competition is very tough and the company market share is not so in numbers. Note: Dentonic was the first Pakistani PDA certified company who introduce sensitive tooth paste. As per Dentonic personnel Colgate sensitive was launch after Dentonic sensitive but due to Mass advertising people think them as a patrons.

QUESTION MARKS
Dentonic flavour tooth paste ( Cinamin , Eucliptus , Lemon , peppermint ) , Miswak al assil and Sensitive tooth paste

STARS

No star product but till 2003 dentonic toothpowder

Ultra whitening paste, and smookers toothpowder

DOGS

CASH COWS
Dentonic tooth paste ,toothpowder

COMMUNICATING VALUES
RECOMMENDATIONS
Company have to follow strategy of telemarketing which is the most cheapest and easy way to get new consumers Small display places have to be introduced at pocket points in some famous outlets all over Pakistan Brand uniqueness also need to be shown off by the help of Bilboards , Moving Sign Panles / holdings , Channels. Traditional old advertisement have to again play on media ,So that the people not forget the company and there useful products.
Awareness seminars have to organize at different hospitals so that the doctors will easily understand your product affectiveness They also need to strengthen product line e.g m.wash,brush