do lot gum report

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1 Executive summary People consume chewing gum believing that it helps to manage weight, improves digestion, improves oral health, improves memory, and reduces symptoms of stress. Companies carefully guard their recipes for making chewing gum, but all chewing gum has the same basic ingredients. The basic ingredients are: gum base, sweeteners and flavorings. To keep up with increasing demand, manufacturers are using synthetic gum bases to continue their business. Synthetic gum base is not good for health. Some brands claim their chewing gum ‘Suger-free’, but they use ‘ Sugar Alcohols’ instead. Moreover, currently popular chewing gums contain very little nutritional value. Dolot natural gum promises hygienic alcohol free gum. Instead of using synthetic gum base Dolot natural gum will use Chicle, a natural gum, as a gum base. Dolot natural gum will use alcohol

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Executive summary

People consume chewing gum believing that it helps to manage weight, improves digestion,

improves oral health, improves memory, and reduces symptoms of stress. Companies carefully

guard their recipes for making chewing gum, but all chewing gum has the same basic

ingredients. The basic ingredients are: gum base, sweeteners and flavorings. To keep up with

increasing demand, manufacturers are using synthetic gum bases to continue their business.

Synthetic gum base is not good for health. Some brands claim their chewing gum ‘Suger-free’,

but they use ‘Sugar Alcohols’ instead. Moreover, currently popular chewing gums contain very

little nutritional value.

Dolot natural gum promises hygienic alcohol free gum. Instead of using synthetic gum base

Dolot natural gum will use Chicle, a natural gum, as a gum base. Dolot natural gum will use

alcohol free sweetener. Dolot natural gum’s effort will be to avoid all the unhygienic

ingredients to make the chewing gum, and to add nutritional value to the product.

The world market for chewing gum is $19 billion, and the market size is dramatically growing

each year. Approximately 100,000 tons of chewing gum consumed each year around the world.

Chewing gum’s market size in Bangladesh is growing up rapidly.

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Market segment

Market segmentation is the process that companies use to divide large, heterogeneous markets

into small markets that can be reached more efficiently and effectively with products and

services that match their unique needs. We segment our market according to psychographic and

behavioral segmentation.

Behavioral segment:

Approximately 50 million people smoke tobacco in Bangladesh (July 2009 est.). The following

data shows the number of cigarette consumption per capita.

Rankin

gCountry

Number of cigarettes

per adult per year

142 Bangladesh 154

43 percent of adults (age 15+) in Bangladesh use tobacco. These people are our main target

customer. Adults of these age use chewing gum as a after smoking smell remover.

SmokerNon somker

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Psychographic segment:

College or University student’s ages within 18-24 are the second major chewing gum consumer.

They consume chewing gum for oral care and fresh breath.

Target market:

Target market means make segment of customer for whom Dolot natural gum will be made and

sold, who have different needs, characteristics or behavior.

We are targeting smokers as our main target market since chewing gum is specially consumed to

remove the after taste and smell from smoking cigarettes. Other characteristics that describe

Dolot Natural gum’s target customers include:

A sense of style

Believes in good value

Prioritize quality   over cost

Educated

Prefers natural product

Positioning:

Positioning is designing company’s offerings and image in such a way that is occupies a

distinctive place in the minds of the target customer.

Attributes: Nutritious

Benefits: Improves oral health.

Positioning by creating value: To build strongest brand position in the market we

will establish beliefs and values. Our main objective is to take care of our

consumers’ health through providing hygienic and harmless consumer product.

Our best effort will be to position our brand as a “Maker of natural gum”

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Marketing Mix (4P):

Product design:

Ingredients:

Chewing gum base: Chicle, a natural latex.

Sweetener: Stevia, a natural sweetener, commonly known as sweetleaf, sugarleaf. As a

sweetener and sugar substitute, stevia's taste has a slower onset and longer duration than

that of sugar.

Flavors

Product mix is the list of the products that a specific company often or want to sales according

the choice of their target customer.

The product mixes for Dolot natural gum are given below:

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Packet design:

o Travel pack: Contains 12 pieces of hard coated gum.

The package will be comprised of an outer cardboard sheath in which a clear plastic package,

‘polyethylene’ can easily slide in and out. The plastic will act as housing for 12 pieces of hard

coated gum. A thin aluminum sheet will cover the gum in conjunction with adhesive to create a

tight seal. The plastic is easily manipulated which will allow the user to push on one side and

eject the gum through the foil.

Dolot

Travel pack

Mango

Strawberry

36gms

Apple

Regular pack

Mango

Strawberry

Apple

3gms

Classic pack

Mango

Strawberry

150gms

Apple

Product Mix

Product Mix Length

Product Mix Depth

Product Mix Width

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o Regular pack: Contains 1 piece of hard coated gum.

The gum will be covered by plastic wrapping paper.

o Classic pack: Contains 50 pieces of hard coated gum in a plastic jar.

Product summary:

The gum will be filled with liquid natural flavor, and the upper side will be coated by strong

mint.

Pricing policy

To price our product we’ll follow the cost-based pricing, a policy by which we will determine

the price by adding a fair profit or return with the production cost. The cost of producing Dolot

natural gum might be higher than that of competitors as a result of using natural ingredients.

Market surveys from many credential sources found that people are willing to pay much money

for a healthy, natural, and hygienic product.

Dolot natural gum will be available in

Travel pack

Regular pack

Classic pack

Price:

Travel pack : 30 TK

Regular pack: 3TK

Classic pack : 120 TK

Pricing strategy:

Cost-based pricing = Production cost + Profit

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Distribution activities:

We are expecting our products will be stocked in the majority of

Tea stalls

Pharmacies

Grocery shops

Super shops

Department store

Cigarette-selling-points

To make our product available at the places mentioned above, we will apply intensive

distribution process.

Distributor

Retailer

Consumers

Promotional Activities:

Manufacturer

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The target audience for our promotional activities is primarily comprised of 18-24 year old male

and females. This target segment tends to be active, trendy, bold, and have a sense of style. The

highest consumption rate for chewing gum falls within this 18-24 age. Our promotional activities

will primarily focus on the use of social media as well as non-traditional media to promote the

brand message.

1. Determining Communication Objectives:

Advertising: Through advertising we believe we can increase:

Awareness by 15%, within 3 months, because of teaser ads on TV, newspapers, and

magazines.

Knowledge by 20%, within 2 months, due to information provided in our full version

ads.

Preferring by 25%, within 4 months, through many enetertainable events, website

info, Reviews, ads, Buzz in the social network etc.

Publicity/PR: We plan to increase the following by publicity:

Awareness by 9% , within 2 months , due to sponsorship of exclusive events.

Knowledge by 6%, within 3 months, due to sponsorship of exclusive shows, etc.

Liking by 5%, within 6 months due to sponsorship of exclusive shows, etc.

Preferring by 21%, within 3 months, through many joyful events, website info,

Reviews, ads, Buzz in the social network etc.

Internet Marketing: Through internet marketing we will create-

10% awareness within 6 months;

15% liking within 1 year through online selling;

12% purchase through online selling.

Direct Marketing: Through various types of direct marketing:

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20% preference can be created;

22% conviction will be achieved within 4 months.

Sales promotion: Through various types of sales promotion we will create-

25% liking will be created within 7 months;

10% awareness will be created by 8 months.

2. Designing a message appeal:

To design our message appeal we will follow “AIDA”. It will help to get attention, hold

interest, arouse desire and obtain Action through our message. In order to design our

message we will use different appeals. They are-

Rational appeal/informational appeal;

Emotional appeal;

Festive/special event appeal.

Rational appeal:

In order to create rational appeal we will use different information about the product like

different flavors (Mango, Strawberry, and Apple). We will also use different price of

different size of packets. Competitive advantage can also be used like “Dolot uses only

natural ingredients to make chewing gum”

Moral appeal:

As Dolot natural gum is healthy and nutritious, it will make people aware of their health so

we will use moral appeal also.

3. Designing a Message Structure:

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Designing a message structure we need to focus on some issues. They are-

Whether or not to draw a conclusion: We won’t draw a conclusion for our message or TV

advertisement for the first 3 weeks. It will help us to create a buzz in people. After 3

weeks we will draw the conclusion.

One-sided or two-sided argument: we will use two sided argument. Like it’s costly but

worth it.

We will make our ads in a way that will help our customers to understand that we provide the

best quality product.

4. Choosing Media:

Personal Media:

Social Media: Communicate with our customer using various social media such as Facebook,

Google+, Twitter, YouTube;

Non- personal Media: We have chosen some non-personal media and channels. These are:

Media Channel

Television Channel i, ATN Bangla, NTV, Independent

Radio Radio Foorti, Radio Today, Radio Amer

Newspaper Prothom Alo, Daily Star, Dhaka Tribune

Magazine Shaptahik, Binodon

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Competitive analysis:

Dolot Natural’s major competitors are:

Wrigley

Pran

Perfetti Van Melle

Lotte

All of our major competitors target a general audience rather than a specific market

segment, and they all provide almost similar products. Sometimes the product ingredients

are the same. None of our major competitors uses natural ingredients to their product.

Dolot natural’s differentiated product and specific market segment will give it a

competitive advantage in the market.

Conclusion:

Today’s marketing is all about communicating and making relationship with customers not only

sell the product and get profit. That’s why we make our marketing plan on the basic of making a

long term relationship with customers not to attain the target sell. We hope this will make us

more loyal to our customers.

Wrigley’s Orbit Gum

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Product analysis

Orbit is a brand of sugarless chewing gum from the Wrigley Company. There are three flavors

Orbit gum available in local market in Bangladesh.

Orbit Sugarfree Gum Mixed Fruit Quantity: 6 pcsPrice: TK: 20

It “Whitens teeth”, as claimed on the box.Orbit Sugarfree Gum Spearmint Quantity: 6PcsPrice: TK: 20

“Just brushed clean Feeling” as it claims on the boxOrbit Sugarfree Gum White Quantity 6PcsPrice: TK: 20

Orbit has no promotional activities in Bangladesh.

Ingredients:

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Gum Base

Gum base puts the "chew" in chewing gum, binding all the ingredients together for a smooth,

soft texture. The Wrigley Company uses synthetic gum base materials for a consistent and safe

base that provides longer-lasting flavor, improved texture and reduced tackiness.

Sweeteners

The finest grades of pure powdered cane sugar, beet sugar and corn syrup are used in the

production of Wrigley's sugar-sweetened chewing gums.

Several types of high-intensity sweeteners are used in Wrigley's sugar-free products and as flavor

enhancers in some other brands. These artificial sweeteners deliver long-lasting, non-caloric taste

and do not promote tooth-decay.

Acesulfame K

Aspartame

Maltitol

Sucralose

Sorbitol

Xylitol

Softeners and Bulking Agents

Glycerin and other vegetable oil products help keep the gum soft and flexible by retaining the

proper amount of moisture in Wrigley products. Ingredients like mannitol and sorbitol ensure the

proper density of a product.

Flavorings and Colorings

The most popular flavors for chewing gums come from the mint plant. Mint flavoring for

Wrigley's chewing gums is extracted from fresh mint plants grown on farms in the United States.

After the plants are harvested, they go through a distillation process that extracts the oils used for

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flavoring Wrigley brands. Other Wrigley brands are flavored by a variety of fruit and spice

essences. Colorings are used to distinguish different flavors.

Preservatives

A small amount of preservative helps maintain the freshness of all Wrigley products.

Perfetti Van Melle's Center Fresh

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Product Analysis

Center Fresh, the flagship brand of Perfetti Van Melle's was launched in 1994. It is available in

Spearmint,

peppermint and

Sweet mint flavors.

Price: 2 Tk

Center Fresh has no promotional activities in Bangladesh.

Lotte’s Spout Gum

Product Analysis

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Spout is a famous brand from Lotte Confectionery. Lotte Confectionery is a South Korean company

headquartered in Yangpyeong-dong Yeongdeungpo-gu, Seoul, Korea. It was established in 1967 and

its plants are located in Seoul.

Three flavors spout gum is available in Bangladesh market:

Lotte Spout Gum Cinnamon

23.80 gm

Price 30TK

Lotte Spout Gum Peppermint

23.80 gm

Price 30 TK

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Lotte Spout Gum Spearmint

23.80 gm

Price 30TK

Lotte’s Spout Gum has no promotional activities in Bangladesh.

Pran Chewing Gum

Product analysis

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Pran is a large company of Bangladesh. There are three types of chewing gum are available in

local market in Bangladesh.

Pran Bubble Gum

Quantity: 1

Weight: 4gm

Flavor: None

Price: 1 TK.

Promotion: Advertising in television, billboard, also in facebook.

Pran Fruitfil Gum

Quantity: 1

Weight: 4.5gm

Flavor: Mango, Grape, Strawberry

Price: 2 TK.

Promotion: Advertising in television, newspaper, billboard, also in facebook.

Pran Xcel Gum

Quantity: 1

Weight: 3gm

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Flavor: None

Price: 2 TK.

Promotion: Sales promotion, and personal selling. Also use social network.

Dubble Bubble

Product Analysis

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Dubble Bubble is a brand of pink-colored bubblegum invented by Walter Diemer, an accountant

at Philadelphia based Fleer Chewing Gum Company, in 1928

The main ingredients in Dubble Bubble gum are Sugar, Dextrose, Corn Syrup, Gum Base,

Tapioca Dextrin, Titanium Dioxide, Confectioner's Glaze, Carnauba Wax, Corn Starch, Artificial

Flavors, Artificial Colors, (FD&C Red 40, Blue 1, Yellow 5, Yellow 6, Red 3), BHT (to

maintain freshness), Milk and Soy.

Dubble Bubble twist gum is a 5 g, bite-size piece of chewing gum containing 20 calories with 0

g of fat, 0 mg of cholesterol, 5 mg of sodium, 5 g of carbohydrates, 0 g of dietary fiber, 4 g of

sugar and 0 g of protein. Dubble Bubble Ball Gum is available in 5 g servings containing 20

calories, 5 mg of sodium, 5 g of carbs and 4 g of sugars. Dubble Bubble specialty bubble-gum

cigars come in 20 g servings and contain 70 calories, 18 g of carbs and 15 g of sugar. Dubble

Bubble Office Pleasures bite-size gum pieces come in 3.5 g servings containing 15 calories, 3 g

of carbs and 3 g of sugar.

Price Analysis:

The price of every Dubble Bubble gum is BDT 5. However most shop sell Dubble Bubble

Gum in box. So every box costs 500 BDT.

Dubble Bubble gum has no promotional activities in Bangladesh