dentonic combined

DentonicRaheel BachlaniRabiaMujtaba Haider RizviOsamaHasham 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)

SpecificationsProduction 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 $

CompetitorsMedicam

English

Forhans

Aqua Fresh

Colgate

About The Product/Service

SWOT ANALYSIS

STRENGTHS•Dentonic’s 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 customer’s 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 NGO’s on no profit, No Loss basis but the NGO’s 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 AND 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 ISSUES

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 – Economical with good quality.•Core benefits - Stronger and white teeth. Less Cavity. Protection against germs.•Augmentation – Free toothbrushes with product.•Packaging - Primary Packing

Customer Value Image Value

“Ek Blue tube wala toothpase and Yellow bottle”

“My father use it and I havent seen him using any otherPowder or Paste”

Personnel Value• Frequent Management Trainings• Dentonic Sales persons at Naheed/Makro/Chaseup from

9 pm to 5 pm

Customer Ki Awaz

Customer ValueProduct Value

• 10 Customers were Given a choice of choosing 1 toothpasteOut of Medicam/Forhans/Dentonic

Guess what Dentonic was selected 9 timesThe 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

Customer Ki Awaz

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.

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  

A proper track of stocks should be

maintained. Stocks should not be

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 keep track of how Dentonic is

performing with respect to others. Sales Person should be available till the

closing time of superstores/wholesalers.

Recommendations

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

A yellow can toothpowder!!

!!!

Positioning

No Positioning of toothpastes

Positioning

Lack of awarenessLack of availability Lack of visibility

Reasons for poor positioning

ACTION PROGRAMS

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

Den

toni

c Po

wde

r

Toot

hPas

te N

orm

al/S

ensi

tive

Toot

hPod

wer

Sm

oker

s/Se

nsiti

ve

Toot

hPas

te G

el

Toot

hpas

te M

isw

ak

Small Retail Stores

Big Retail Stores

WholeSalers

Super Stores

WholeSalers

02000400060008000

10000

Kilometers

Kilometers

CompetitorsEnergy Cost

Psychic

“Yar advertize karne ke Paise nahi

Product Ki Quality Kiya ho gi”

“Powder ka Zamana Poorana ho

gaya”

“Yeh Advertizement Nahi Karte”

Customer Ki Awaz

Monetory Cost

English ToothPaste

Medicam

Colgate

Dentonic

English Medicam Colgate Dentonic Closeup0

5

10

15

20

25

30

35

40

45

GramsRetail Price

Consumer Buying Behavior

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.

Details

Customer Buying BehaviorBuying Behavior in toothpaste depends upon:

A. Class Factor

B. Psychic Factor

High Involvement Low Involvement

Significant Differences between Brands

Complex buying behavior

Variety-seeking buying behavior

Few Differences between Brands

Dissonance-reducing buying behavior

Habitual buying behavior

Lower and 50 percent middle Class

Not so Sensitiv

e People

High Involvement Low Involvement

Significant Differences between Brands

Complex buying behavior

Variety-seeking buying behavior

Few Differences between Brands

Dissonance-reducing buying behavior

Habitual buying behavior

Sensitive

People Upper Class

For Upper Class too advertisements should

be made for variety seeking buyers. Take Care of shelf space

Make each and every flavor competitors

are making.

Advertisement can attract more habitual

buying behavior

Awareness Should be made among

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

Recommendations

INDUSTRIAL ANALYSIS

ERA of CustomizationThe 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 Toothpastes1. Sensodyne Pronamel2. Colgate Total advanced

whitening3. Crest Pro-Health Enamel Shield

Toothpaste4. Aquafresh5. Arm & Hammer Advance white

Baking Soda and Peroxide6. Arm & Hammer advance white

brilliant Sparkle toothpaste7. Colgate Baking Soda and

Peroxide Whitening Oxygen Bubbles Brisk Mint Paste

8. Colgate Sensitive Enamel Protect9. Mentadent Advanced Breath

Freshening10. Crest Tartar Control Whitening

Plus Scope Cook Peppermint Liquid Gel

2

8

Toothpaste ManufacturerMultinational National

Dentonic Offerings

Toothpowder

1. Dentonic powder2. Dentonic Smokers3. Dentonic Plus

Toothpaste1. Ultra whitening

CinnamonEuclyptusPeppermintLemon

2. Dentonic Miswak 3. Dentonic Flouride4. Dentonic for Sensitive

teeth

Market Analysis

Florid

e Too

thpas

te

Ultraw

hitenin

g Gel

all si

zes

Tooth

paste

Total

Denton

ic Pow

der

Denton

ic plus p

owder

Tooth

powder

total

Total M

arke

t-20

-10

0

10

20

30

40

50

Past 4 years

2006-0720082009

% G

row

th

Growth in volumes of powder is because of the purchase of the powder variants by NGOs and other charity organizationsHelp to the flood victims and to the distributorsloss of Rs. 1.5 Crore in last four yearsProvides products to NGOs on non-profit terms and basis

Market Analysis

Floride ToothpasteToothpaste Total

Dentonic plus powderTotal Market

0

5

10

15

20

25 Future 4 years

2011-1220132014

% G

row

th

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%

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%

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

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 develop strategy to beat other local companies and their preferred products

MICRO/MACROENVIRONMENT

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

Macro and Micro Environment

With reference to dentonic , 

1.THE COMPANY

2.SUPPLIERS

3.MARKETING INTERMEDIARIES

4.COMPETITORS

5.PUBLICS

6.CUSTOMERS

Major Actors in Microenvironment

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

1.THE COMPANY

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

2. SUPPLIERS

Majority of us hav’nt 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)

3.MARKETING INTERMEDIARIES

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.

4.COMPETITORS

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 MedicamDentonic sales ratio is 1 to 1 compared to English

RELATED EXAMPLES:

Is a group that has an actual or potential interest in or impact on an organization’s 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 Ngo’s and other Gov’s are buying there products due to there low prices in the time of flood fiasco.

5.PUBLICS

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”

6.CUSTOMERS:

1. DEMOGRAPHIC ENVIRONMENTAround 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

MAJOR FORCES IN MACRO 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 NGO’s and GOV’s buy these products and circulate in the affected areas .

2.ECONOMIC 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 certification’s like FDA and etc without it.

Number of taxes are also a hurdle for these local companies

3.NATURAL ENVIRONMENT

DEFINING VALUE(SEGMENTATION/TARGETING/POSITIONING)

Segmentation

Recommendations

Orange Flavored toothpaste for kids.

Miswak/other flavor in toothpowder.

Mouth wash for older people with weaker teeth.

TARGETING

TargetingGeographical Country region All Population Pakistan Bangladesh Srilanka Saudi

Arabia

Density Urban/Rural Climate Any Demographic Gender All Age All except kids Family size Any Income group Lower, Middle, upper middle and high

class.

Psychographic Lifestyle Teenage, Middle agers, Elderly Social Class Rural, Lower, Middle & Upper Class Behavioral Occasion Daily (once or twice) Loyalty status High Usage Heavy Benefits 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

Major Brand StrategyLine Extension, Brand Extension

ProductProduct Levels Core Benefit, Actual Product, Augmentation

Individual Product DecisionPackaging, Labeling, Support Service

Product MixProduct Mix Width, Product Line Length, ConsistencyProduct Life Cycle

Item 1

Item 2

Item 3

Item 4

Item 5

Product Levels

Core Benefits• Stronger & whiter

teeth• Anti-plaque, Lesser

Cavity, Brighter Teeth• Protection for gums &

teeth

Actual Product• Tooth Paste• Toot powder

Augmentation• Money back

guarantee• Free tooth

brushes

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

Brand StrategyLine Extension

• Low Price toothpaste

• New flavor for elite class

Brand Extension

• Mouth washes

• Tooth brushes

Product MixProduct - Mix Width

Product

- Line Length

Toothpaste Toothpowder

Ultra whitening Gel (70g/170g) For Healthy Teeth & Gums (180g/90g/45g)

Refreshing Lemon Mint Plain

Refreshing Eucalyptus Mint With Mouth Wash

Refreshing Peppermint

Refreshing Cinnamon Faster Stain Remover (55g)

For Smokers

Flouride Toothpaste (200g/125g/75g/50g/25g) For Sensitive teeth

Calcium + Triclosan

For sensitive teeth

Miswak Al Assil (170g)

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.

PRICESection Header

Cost based pricingFormulation PackagingStorageDistributionUtilitiesLabor

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

45 12 90 20 180 35

Dentonic Smokers Toothpowder

55 90 - - - -

Dentonic powder for Senisitive teeth

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 75

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

70, 140 & 170

Dentonic Original 125 & 200

Dentonic Miswak 170

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 ChangeAs 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

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

Recommendations

PLACE

Recommendations

PlaceDistribution NetworkLocal Market, International Market

Distribution Channels

Item 1

Item 2

Item 3

Distribution NetworkLocal 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

International Market

Small distributors in :

• Bangladesh

• Srilanka

• Saudi Arabia

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

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.

BCG MATRIX

STARS No star product but till 2003 dentonic toothpowder

DOGS Ultra whitening paste, and smookers toothpowder CASH COWS Dentonic tooth paste ,toothpowder

QUESTION MARKSDentonic flavour tooth paste ( Cinamin , Eucliptus ,

Lemon , peppermint ) , Miswak al assil and Sensitive tooth paste

• Brand uniqueness also need to be shown off by the help of Bilboards , Moving Sign Panles / holdings , Channels.

COMMUNICATING VALUES• 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

• 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

RECOMMENDATIONS