Executive Summary Cigol Bangladesh Ltd. is planning to launch a new product range named “Z Clean Hand wash” in a growing market. Though Lifebuoy Hand wash (A product of Unilever) is the current market leader, and there’s more competitors like Dettol Hand wash (Reckit Benkiser), Savlon Hand washing Liquid (ACI) and Sepnol Hand wash (Square Toiletries ltd. ), we can compete because our hand washing products offer a distinctive blend of quality, features, benefits, service and value based pricing. We are aiming several segments in the consumer and business market.
Our plan is to capture the advantage of the increasing demand for more featured, varied and exclusive hand wash products for everyone and also providing service, based on consumer type. The primary marketing objective is to achieve first-year Bangladesh market share of 5 percent with unit sales of 1,00,000. The primary financial objectives are to achieve first-year sales revenues of Tk. 5,02,500, keep first year losses to less than Tk. 1,05,000 and break even in the middle of second year. Introduction: Product name: Company name: Price: General color:
Target market: Health conscious people, Mothers/Parents, Women, Men, Kids, Working People/Outdoor people, Household Users, Corporations Current Marketing Situation: In Bangladesh due to more concern for hygiene and recent increase in various contaminative diseases, Hand wash market in Bangladesh received a sudden rise in demand. Forecasts suggest an annual sales increase of 10 percent for the next 3 years. The major competition is Lifebuoy, Savlon and Dettol due to their long-term brand equity. Yet we can compete with our product variety and some unique offers.
But at first Cigol Bangladesh Ltd. cautiously needs to determine the specific benefits and features it is planning to offer to specific customers. Our company is planning to extend the brand further and increase its market share by using the new branding strategy. The company is now preparing to enter the growing market of Personal care and planning to launch a whole new product range of hand wash using a new brand name. Competitive Review: At present the hand wash market in Bangladesh is at its growth stage. Four main competitors exist in this market.
But these products hardly offer any variety. Competition is mainly from Lifebuoy, Savlon and Dettol due to their bran equity. Our main challenge will be establishing a new brand in the current market. The Key competitors review is listed below * Unilever: Unilever launched the brand lifebuoy and the product was anti bacterial soap. Then it launched lifebuoy liquid hand wash of two different colours. Lifebuoy hand wash is currently offering the market 200ml bottles and also Refill packets. It emphasizes on the guarantee on killing 99. 9% bacteria that can harm health. At present it is the market leader. * ACI: ACI launched the Savlon handwashing liquid and currently offering 250ml and 1000ml bottles. No other variety is offered by ACI. * Reckit Benckiser: Reckit Benkiser has launched Dettol Anti Bacterial Liquid Hand wash with a tagline “Be 100% sure”. It also offers 200ml bottles and also Refill packets. * Square toiletries ltd. : Square Toiletries ltd. , a successful personal care product manufacturer recently launched Sepnol Anti Bacterial Hand wash of 200 ml bottles.
But it hasn’t achieved its break-even point yet. Though Unilever is dominating the current hand wash market, Cigol Bangladesh Ltd. can bend out a specific image and gain acknowledgment among the targeted markets with its distinctive product features. Table Z. 2 shows a selection of competitive hand washing products and prices. Table Z. 2- Selected Handwash products and pricing | | | | Competitor| Product| Features| Price| Unilever| Lifebuoy Handwash| Two coloured antibacterial handwashing liquid. Promises 99. 99% diminishing of bacteria. | Tk. 45 for 200ml bottle| ACI| Savlon Handwash| Antibacterial Handwash in two different sizes of 250 ml and 1000 ml| Tk. 150 for 250mlTk. 400 for 1000ml| Reckit Benckiser| Dettol Handwash| Antibacterial Handwash ensuring 100% protection from bacteria. | Tk. 120 for 200ml| Square Toiletries Ltd| Sepnol Handwash| Antibacterial Handwash which is both antibacterial and healing. | Tk. 196 for 200ml| Market Description: Cigol Bangladesh Ltd. ’s market consists of consumers and business users who want hygiene, variety in products, quality and freedom to choose the product of their preference.
Specific segments are being targeted Health conscious People, Household general users, Women, Concerned Parents, Men, Working/Outdoor People and Corporations. Table Z. 1 shows how Z Clean Hand wash products deal with the needs of targeted segments. * TABLE Z. 1- Needs and Associated Benefits/Features/Services of Z Clean Hand washing Product Range | | | Targeted Segment| Customer Need| Associated Product and its Benefits/Features/Services| Health Conscious people (Consumer Market)| * Protection from germs and a healthy life| * ‘Z Clean Total’Anti bacterial high concentrated hand washing liquid soap. Mothers/Parents(Consumer Market) | * Protection from germs and a healthy life for their kids * Suitable Hand wash products for their children’s delicate skin * Harmless * Kid friendly | * ‘Z Clean Kiddo’Anti bacterial hand washing liquid soap * Milder Liquid Hand washing Soap * Swallow proof and No More Tears * No sharp edge packaging and use of popular cartoon characters to design the bottles which can be collected. Women(Consumer Market)| * Protection from germs without drying the skin * Smells Nice * Feminine Feelings while using| * ‘Z Clean Famine’ anti bacterial hand washing liquid enriched with moisturizer and Aloe * Five types of fragrances: Red Rose, White Jasmine, Tangy Orange, Soothing Lavender and Mystic Sweet Pea * Feminine packaging using pastel shades of colours, slender bottles. Men(Consumer Market)| * Protection from germs * Masculine feelings while using| * ‘Z Clean Men’ anti bacterial hand washing liquid. * Masculine fragrance range including: Tough Wood, Cinnamon Earth and Cigar Lust. Fuller bottles and use of dark colours. | Working People/Outdoor People (Consumer Market)| * Protection from germs anytime and anywhere| * ‘Z Clean All-time’ anti bacterial hand washing kit. A portable folded packet containing two types of tissue- soap infused tissue and wiping wet tissue. Household Users(Consumer Market)| * Protection from germs, easy to use and keep| * ‘Z Clean Total’ anti bacterial hand washing liquid bottles with push out nozzles and stick on technique| Corporations(Business Market)| * Continuous supply of hand washing liquids for public use * Containers to keep liquid hand wash| * ‘Z Clean GB’ anti bacterial hand washing liquids of mega size bottles. * Service given to set hand wash holders in the required places for free. | Strengths * Our firm currently holds the largest amount of total market share with our existing different products.
Over the last four periods, we have increased our market share by over 60 percent. We have consistently maintained the largest total retail sales and revenues in comparison to our four major competitors. * We continue to have the largest and, we feel, the most experienced sales force in the industry. Our plan to hire and train personnel prior to the introduction of our newest products has obviously worked to our advantage. * Our Firm is currently the Market Leader in two consumer segments: the Buffs and the Others.
We also maintain the leading shares in all three distribution channels: Specialty Stores, Department Stores, and Mass Merchandise. * Our R&D department has continued to improve. We have built such a solid foundation that our new brand introductions and modifications have done extremely well upon entry into the market. We are confident that our R&D group has gained adequate experience to successfully guide us into a new market in the near future. * Our Brand awareness continues to increase, as we devote ample amounts of capital to our advertising.
Weaknesses * Throughout our management, we have had difficulty predicting the initial production levels of our new product. We must request productions levels more efficiently in order to meet sales requirements and minimize inventory holding costs. * The changing preference of the consumers continues to challenge our firm. We are forced to continually monitor and adjust the Perceptual Objectives to reposition our products in an attempt to gain additional market share. * We would like to expand into the Vodite market.
However, we do not have the necessary capital to proceed at this time. We must substantially increase our revenues in the next period in order to enter this new market and still remain competitive in the hand wash market. Opportunities * We have now gained extensive market experience. This has afforded us the opportunity to successfully reposition our brands at poorly targeted segments. As we continue to draw on this advantage, we will achieve a greater market share and higher revenues. * In Period 6, we completed a project Feasibility Study for the Vodite market.
If our revenues remain stable in the coming periods, we will have the opportunity to complete this R&D project and introduce a brand into the untapped Vodite market. * We are able to purchase additional hand wash market studies to better position our products according to the preferences of our targeted markets. This will provide us with opportunities to further increase our market share. Threats * Our brand positioning is frequently threatened by the unstable Purchase Intentions of consumers in the hand wash market. No apparent trends have been identified to date. Competition in the hand wash market remains constant and the ability of our competitors to better project some Ideal Values remains a constant threat to our market share. * In addition, the growth rates are projected to decrease in all segments but one. This threat requires us to operate under more scrutinized production levels. Pricing Strategy Our pricing strategy focuses on matching each customer segment’s ideal price point as closely as possible, with only slight variations to take the current market situation into account.
Our goal is to be perceived as a supplier of high-quality products at fair prices. We have set our prices at the mid-to-low end of customers’ expectations in order to succeed in a market with many competing brands with similar characteristics. Now that we have a high-quality product in each segment, we will charge slightly higher prices in segments with little competition in order to both increase our profit margins as well as customers’ perception of our products’ level of quality.
We tried this approach in Sing brand out of necessity to at least cover our production cost, and it did not hurt the brand’s introduction at all. In the Vodite market we will start with a price-skimming strategy, and switch to hitting optimal price points once we have increased our knowledge of customer’s expectations in the Vodite market. Period 4 will see no significant changes; we will continue to price our products at the target segment’s ideal point. SITO| SIBI| SIBU| SING| SIGH| 209| 470| 337| 254| 465| Level of prices for Period 4