New Product Launch
New Product Launch
New Product Launch
1
Marketing Project For A New Product Launch
Executive Summary
This project focuses on the following areas:
1. Unilever’s Philosophy
2. Unilever’s Corporate Purpose
3. Unilever’s History
4. Market Overview for Cooking Oil Industry
5. PEST analysis for Cooking Oil industry
6. Unilever’s Analysis
7. Current Product Range Of Unilever
8. Internal Audit of DALDA
9. External Audit of HABIB as competitor
10. SWOT analysis of HABIB
11. Customer Audit
12. Market Segmentation
13. Assumptions
14. Marketing Objectives & Strategies for new product
15. Setting Marketing Objectives
16. Characteristics Of Products
17. Target Marketing & Market Segmentation
18. Market Potential
19. Market Positioning
20. Marketing Mix Strategies
21. Alternative Marketing Plan
22. Important activities of promotional plan
23. Objective of each promotional activity
24. Measurements, Review & control
25. References
2
Marketing Project For A New Product Launch
PREFACE
3
Marketing Project For A New Product Launch
ACKNOWLEDGEMENT
4
Marketing Project For A New Product Launch
UNILEVER’S PHILOSOPHY
5
Marketing Project For A New Product Launch
UNILEVER’S CORPORATE
PURPOSE:
7
Marketing Project For A New Product Launch
8
Marketing Project For A New Product Launch
Marketing Project
Submitted to:
SIR SOHAIL KAMRAN
Submitted By:
RABIA
MADIHA
SEHRISH
TABASSUM
COMPANY HISTORY
9
Marketing Project For A New Product Launch
In line with global alignment strategy and in order to leverage the synergies of Unilever’s
International brand strength, market edge and corporate image, Lever Brothers
Pakistan Limited has change its name to Unilever Pakistan Limited, in August 2002
VISION STATEMENT
“Touching Hearts,
Changing Lives”
SSC
1. BRANDS
- DALDA BNASPATI
- DALDA COOKING OIL
- PLANTA COOKING OIL
- BLUE BAND MARGARINE
- INDUSTRIAL AND BAKERY FATS
- MELANGE
2. BEVERAGES
- PEARL DUST
- RED ROSE
- A-1 KARAK CHAP
- KENYA MIXTURE
- RICHBRU
- HOTEL CHAI
- LIPTON
a) Skin Cleaning:
- LUX
- LIFEBUOY
- FAIR & LOVELY SOAP
b) Fabric Wash:
- SURF EXCEL
- WHEEL
11
Marketing Project For A New Product Launch
c) Home Care:
- Vim Scorer
- Vim Bar
- VIM BAR
- MAGIC WHEEL
4. Personal Care
5. Oral Care
- CLOSE UP
12
Marketing Project For A New Product Launch
13
Marketing Project For A New Product Launch
OFFICERS
Musharaf hai (Chairman & chief executive)
Amar naseem ( seceratary)
TABLE 1.1
Recent stock performance
1 Week 4.0%
4 Weeks 18.2%
13 Weeks 38.3%
52 Weeks 69.9%
Earnings / Dividends (as of 9/30/02)
Earnings Dividends
Most Recent Qtr 76.86 59.00
Last 12 Months 132.7 96.50
Ratio Analysis
Address
14
Marketing Project For A New Product Launch
• Market Trends:
Market trend for cooking oil:
15
Marketing Project For A New Product Launch
16
Marketing Project For A New Product Launch
Unilever’s Analysis
17
Marketing Project For A New Product Launch
Goal
Unilever goal is to add Vitality to life. We meet everyday need of nutrition, hygiene
and personal care with brands that help people to feel good, look good and get more out of life.
-
Culture
Our deep roots in local culture and in markets give us our strong relationship with
consumers and are the foundation for our future growth. We will bring our wealth of knowledge
and international expertise to the service of local consumers.
Strength
- Unilever is a multinational organization
- It deals with highly differential products
- Always provides innovative products
- Strong customer relationship
Weaknesses
- Its less focus on reshaping product
18
Marketing Project For A New Product Launch
19
Marketing Project For A New Product Launch
Number
In the fiscal year of 2001 the estimates were 180000 metric tons. Imports were
expected to grow to 200000 metric tons for the following year. Imports were of US$ 1 billion
annually. The average annual growth rate for edible oil industry is 12.5% per annum for several
years.the demand for cookong oil is estimated to be grow at 5 % per annum
Type
- Home consumers
- Hotels
- Organizations
- Industries
Value drivers
We provide the best packing option by the following manner;
- Plastic bottles
- Steal coded seals
- Convenient to use
Decision Process
The decision process is very simple because of
- Simple decision
- Daily use product
- More frequently purchase
20
Marketing Project For A New Product Launch
21
Marketing Project For A New Product Launch
PRODUCT
BRAND NAME:
QUALITY:
PACKAGING:
DALDA introduced plastic bottles.
DALDA has also introduced different sizes of bottles for cooking oil packing.
22
Marketing Project For A New Product Launch
TABLE 1.4
PRICE
We are offering competitive introductory price which is mentioned below
DISCOUNT:
We are offering discount 10 Rs each cane in order to capture maximum attention of our
target market
LEASING OPTION;
• Not available
PLACE
DISTRIBUTION CHANNEL:
• Distribution channel includes whole sellers grocery stores utility stores
LOCATION:
LOGISTICS:
PROMOTION
ADVERTISING PLANS:
• Print Media
• Electronic Media
• Radio FM
PROMOTIONAL PROGRAMMES:
DALDA has survived over a long period of time by reaching its customers through different
promotional plans
• Superior marketing
• Advance communications
• Innovative radio programs
• Effective press usage
• Cinema
• DALDA’s cook book (VOL 1& 2)
• DALDA ka Dastarkhawan
• DALDA Cooking competition
• DALDA Food Show
• Free sampling
24
Marketing Project For A New Product Launch
External Audit
Main competitors:
•
• HABIB
• SEASONS
• RAFHAN
• SOYA SUPREME
25
Marketing Project For A New Product Launch
120
FREQUENCY
100
80 PERCENT
60
VALID PERCENT
40
COMMULATIVE
20
PERCENT
0
N
L
Y
TY
G
E
TA
IO
IT
IC
IN
LI
AL
IT
TO
PR
G
BI
TR
KA
U
LA
Q
NU
C
AI
D
PA
LI
AV
VA
Explanation of graph:
The respondents on various attributes also favour HABIB as a strong competitor
of DALDA.13.3% purchase for its price, 20% for its quality , 30% for its nutrition 13.3 %
purchase it for DALDA’s unavailability and 23.3% for its packaging
STRENGTH:
WEAKNESS:
- Less innovative
- Less sales
26
Marketing Project For A New Product Launch
Strength
• Hygienic oil
• High volume or sale
• Number one brand
• New idea of packaging
Weaknesses
Opportunities
• Large market share
• High profit
• New investment
• New innovation
Threats
• Value shift
• New product
• Intense competition
• New competitor
27
Marketing Project For A New Product Launch
Market Segmentation
28
Marketing Project For A New Product Launch
Description
Premium
Females between the ages of (25-35) years
Mothers playing an influential role in decision making
A household of four and more
Target personality include low income segment as well (loose and mid-price)
Table 1.4
s a le s p r o p o r tio n
23%
t in s
pouc hes
53%
24% lo o s e
Pest
29
Marketing Project For A New Product Launch
Political Factors:
• Democracies are under pressure to show that they can protect the health of their
population.
• Global society is under pressure to demonstrate it can mobilize resources to
effectively tackle global social problems.
• Tackling health problems requires long term thinking, complex partnerships and
innovative forms of organization.
• Health suffers more in wars and other complex consequences.
Economical Factors:
Social factors:
30
Marketing Project For A New Product Launch
Technological factors:
• Health problems are always dynamic and sometimes this change is unpredictable. Health
interventions can lead to new health hazards.
• Without knowledge about health, there can be no response to health threats.
• Technology is poorly distributed in areas where people are unable to create demand for it
effectively.
• New technologies are the result of increasingly sophisticated processes and currently
seem to be of decreasing cost effectiveness.
• New technologies pose poorly-understood risks as well as offering hard to qualify
benefits
• Information technology has a potential to revolutionize the disseminations of knowledge
about health.
31
Marketing Project For A New Product Launch
ASSUMPTIONS:
It is assumed that the political, economical, and social condition will remain same during the
whole year in which the product is launched e-g market price of palm seeds.
32
Marketing Project For A New Product Launch
MARKETING OBJECTIVES
& STRATEGIES FOR NEW
PRODUCT:
Marketing Objectives:
1. Sales objective:
33
Marketing Project For A New Product Launch
Sales of worth Rs.2500000 for initial 12 months by doing promotional and introduction
activities
.
2. Profitability Objective:
To earn profit of 10% of sales initially.
4. Customer Satisfaction:
We plan to provide our customers with the best of quality, health and convenience, at low
and affordable prices.
Ways
Planned To
Adopt To Help Improve Our Customer Service:
3. Have a web site that is easy to navigate. Add a frequently asked question's "FAQ" page
and explain anything that might confuse your customers or visitors.
4. Resolve customer complaints quickly and completely. Answer all e-mail and phone calls
within a few hours.
5. Not to make customers or visitors hunt for contact information. Make it easy for them to
contact us.
6. Give our employees bonuses or incentives to practice excellent customer service. Tell
employees to be flexible with each individual customer, each one has different concerns,
needs and wants.
7. Give your customers more than they expect.
8. Reward in points -- give customers a point for every rupee they spend.
35
Marketing Project For A New Product Launch
BRAND AWARENESS
36
Marketing Project For A New Product Launch
AVAILABLE SIZES:
• 1 LITER
• 2.5 LITER
• 5 LITER
PACKAGING:
• PLASTIC BOTTLES
• LAHORE
• ISLAMABAD
• KARACHI
• PESHAWAR
• RAWALPINDI
MARKET SEGMENTATION
ALGAE COOKING the following OIL will segment their market on criteria
GEOGRAPHIC SEGMENTATION:
(a) REGION:
37
Marketing Project For A New Product Launch
•Country –wise
•Province-wise
• City-wise etc
DEMOGRAPHIC SEGMENTATION:
(a) AGE:
• Under 25, 25-45,over 45
(b)Gender:
• Male, Female
(c) Income:
• A-F households with class A households having the highest
income and class F having the lowest.
(d)Education:
• Uneducated, Primary
school,Matriculation,Intermediate,Bachlors,Masters ,PhD
PSYCHOGRAPHIC SEGMENTATION:
(a) SOCIAL CLASS:
• A-F households –A being upper class and F being the lower
class
BEHAVIORAL SEGMENTATION:
(a) Purchase Occasion:
• Regular occasion
• Special occasion
38
Marketing Project For A New Product Launch
• None
• Medium
• Strong
• Absolute
39
Marketing Project For A New Product Launch
TARGET MARKET:
GEOGRAPHIC
(a) Region:
Algae cooking oil will be a nation-wide brand and it will target all areas in urban Sindh, Punjab
and N.W.F.P
40
Marketing Project For A New Product Launch
DEMOGRAPHIC
(a) AGE:
• 25-45
(b) GENDER;
• Traditional female house wives
(c) INCOME:
• Households A with income range..20000 and above
• Households B* with income range…10000-15000
• Households C** with income range….7000-10000
(d) EDUCATION:
• Atleast Matriculatio
PSYCHOGRAPHIC
PRODUCT POSITIONING
A GIFT FOR THE NEW MILLENIUM
ALGAE COOKING OIL
41
Marketing Project For A New Product Launch
42
Marketing Project For A New Product Launch
43
Marketing Project For A New Product Launch
The Marketing Mix is the set of marketing tools that work together to affect the market.
The four elements of the Mix are, of course the Product ITSELF; the Price at which it is
offered for sale in the market; the Place or how the product is distributed; and the
Promotion which brings the product to the attention of the customers, arouses his/her
interest, builds up the desire for the product and finally moves him/her to act /purchase the
product.
The following section of this project will deal the Marketing Mix used by UNILEVER for
its new brand ALGAE COOKING OIL.
PRODUCT
44
Marketing Project For A New Product Launch
PRODUCT
PRODUCT CLASSIFICATION:
ALGAE COOKING OIL is a consumer product.
PRODUCT ATTRIBUTES:
Product Quality:
Unilever promises the highest quality of all of its products. As such ALGAE COKING OIL is
also manufactured to the highest standards. The consistency in Unilever promises and delivered
products please customers.
Product Features:
45
Marketing Project For A New Product Launch
Algae Cooking Oil offers two new best features for the new millennium; the power of algae
and the omega 3.
Omega 3 algae oil is nutritionally identical to fish oil. It contains DHA and EPA. But it is not an
animal product. It conserves fish resources while providing us with an excellent source of omega
3 essential fatty acids. Algae oil could replace both fish oil and flaxseed oil as an omega 3
supplement now
The algal-oil feed stock that is used to produce bio diesel can also be used for fuel directly as
Straight Vegetable Oil(SVO)
The algal-oil feedstock that is used to produce biodisel can also be used for fuel directly as
"Straight Vegetable Oil", (SVO). The benefit of using the oil in this manner is that it doesn't
require the additional energy needed for transesterification,
Product Design:
Unilever has once again compliance with its customer oriented policy by
introducing a new brand; omega 3 cooking oil in its current product line, that’s a
unique product with enriched features. It is altogether a new product, packaged in a
one liter polyjar.
Packaging:
46
Marketing Project For A New Product Launch
All Unilever product’s packaging are imported. Even the ink used on packaging is imported. The
packaging is of the highest standards; at least in the local market. Omega 3 Algae oil is available
in tins, bottles and poly-bags. All packages are clearly and legibly labeled as to contents and
ingredients. All packages are easy and safe to use. The omega 3 cooking oil packaging color is
transparent with green and black labels.
Branding:
There are typically four levels of meaning conveyed by Unilever about its new product in
cooking oil range.
Brand Strategy:
Dalda sunflower
Dalda cookoing oil
Dalda lajawab
47
Multi Brand New Brand
Dalda planta cooking Omega 3 Algae Cooking
oil Oil
Marketing Project For A New Product Launch
PRICE
48
Marketing Project For A New Product Launch
PRICE
Unilever’s marketing objective is primarily to tap the upper middle class and upper class
segments.For this Unilever has to achieve Product Quality Leadreship in doing so they have to
incur more R&D costs.To cover these costs Umilever has to follow the Value Based Pricing
and Premium Based Strategies.
The following grid summarizes the above discussion on pricing strategy.
Higher quality
Premium strategy Good Value strategy
Value based pricing
49
Marketing Project For A New Product Launch
PLACE
50
Marketing Project For A New Product Launch
The set of people and firms involved in the transfer of the title to
a product as the product moves from producer to ultimate
consumer or business user
PLACE:
UNILEVER PAKISTAN believes in synergy, that is a perfect blend of all the
components of marketing mix. Proof lies in it having the most efficient and the
largest distribution (networks) system in our country
Multiple distribution channels are to be used for omega 3 algae cooking oil.
Channel Levels:
Multiple distribution channels are used by Unilever are as follows
Customer
51
Marketing Project For A New Product Launch
Sales Setup:
Sales Controller
GSM TMM
Area Manager
PROMOTION
52
Marketing Project For A New Product Launch
Unilever being the market –oriented and the customer-oriented company its
marketing efforts are relatively the most.
The most concentrated promotion techniques used are television and
advertisements
For omega 3 Algae cooking oil the marketing used will be Visibility marketing and
Media marketing.
VISIBILITY MARKETING:
Omega 3 algae cooking oil will concentrate more on visibility and availability. this
includes print advertisements, price cards, posters at vendor’s shops, sign
boards,buntings,flags etc
MEDIA MARKETING:
Unilever will use different newspapers and magazines for promoting omega 3
cooking oil but the major emphasize will be on advertisements shown at the times
53
Marketing Project For A New Product Launch
loving mothers are watching TV. The ads also run at different times of the day
specially between 6.30 to 7.30
The message concentrates on aroma, taste, healthy and happy cheerful life.The
theme wsas image building. It informs about the product and persuades the
consumers to buy it.
The color of the omega 3 cookimg oil is lightened as buyers prefer light oil.It will
get little support due to strong competition from the likes of corn oil, canola oil,etc
therefore not much of the advertising budget, rather promotional efforts are
allocated towards it. These ads emphasize lighteness and the strong energy source
i.e algae as a main ingredient of the omega 3 algae cooking oil .
SALES PROMOTION:
Unilever will also play its role in promoting omega 3 algae cooking oil by
arranging different events like cooking contests games and shows
PERSONAL SELLING:
Unilever will adopt personal selling in order to introduce and promote omega 3
algae cooking oil. It will also try to come up with consumer promotion by giving
trade off to the retailers.
OTHER MEDIUMS:
Print ads in magazines such as Women’s Own, She, etc, and those read by average
but literate house wives. Buntings, posters, trade flags(hung at the retailers)
inducing consumers to try the latest taste for omega 3 algae cooking oil.
Besides this the cookery programs shown on TV will be a good promotion tactic as
these programs will show omega 3 algae cooking oil use in different Pakistani as
well as other countries’ popular dishes. In this way the viewers will remember the
brand name through the message “gift for the new millennium; eat healthy live
healthy”.
The symbol and the color of the bottle of omega 3 algae cooking oil is also a good
way to communicate to the consumer who can’t read but can easily recognize the
bottle by the algae symbol or the green and black color scheme.
The unique and attractive design of the bottles is also a way of consumers’
persuasions for new omega 3 algae cooking oil.
Different sizes (plastic bottles of 5, 2.5 & 1 liter) are available for the convenience
of consumers and target all segments of the market
54
Marketing Project For A New Product Launch
Product
Change in color of oil:
If the consumers bothered about the dark color of the cooking oil than unilever will go
for the lightining of color of the Omega 3 Algae Cooking oil in ordre to give the effect of
lightness for more health conscious consumers.
Price
Discount offerings:
Unilever can offer discunt to its customers in order to attract more number of
customers.
Reduction in prices:
Unilever can go for market penetration strategy by offering less prices.
Promotion
Tokens and Gift hampers:
Unilever can offer tokens on purchasing Omega 3 Algae Cooking Oil and also give gift
hampers by a lucky draw to its customers.
Place
Wide Distribution:
Unilever can adopt wide distribution by franchising.
.
56
Marketing Project For A New Product Launch
04. July 02,10 Sep 15,10 Free sampling 500000 Mr.Amir Marketing
of the 50 ml
oil bottle
57
Marketing Project For A New Product Launch
02. Electronic This activity is the aggressive marketing campaign for the launch of the Algae
and print cooking oil. People will be able to get to know about the new oil, its qualities
media and better health ingredients.
Advertisement
03. Billboards It’s also the part of marketing campaign where hug\e billboards are installed
and at signals and places where people can view the Algae cooking oil’s
Hoardings advertisements.
04. Free Free sampling is to introduce the Algae cooking oil to the local markets by
sampling asking people to check the taste of the Algae cooking oil.
05. Live This activity is also for the introduction of Algae cooking oil to those
cooking shows customers which do not have the facility to watch advertisements on TV or
in different those who are illiterate.
cities
06. Personal It is to sale at cost by the company for the introduction of the Algae cooking
selling oil initially in market.
58
Marketing Project For A New Product Launch
In case there are certain deviations in the market situation then the organization has
to take certain precautionary steps in order to control and manage those immediate
changes as follows...
Performance
How to set the What to check&
Task The standard measurement
standard how to control
& review
1. To achieve Sales target per Analysis of Comparison of Significant
personal sales period of time for territorial individual shortfall between
targets individual groups potential, salesperson's target and
and or products individual product sales achievement over
customers against targets meaningful period
potential. of time
59
Marketing Project For A New Product Launch
Discussion and
agreement
between
salesperson and
manager.
Analysis of
Achievement of
individual
specified range Failure to achieve
customer record
2. To sell the and quantity of Scrutiny of agreed objectives.
of potential and
required range sales to a individual Complacency
present sales.
and quantity to particular customer records. within range of
Discussion and
individual customer or group Observation of sales made to
agreement
customers of customers selling in the field. individual
between
within a time customers.
salesperson and
period
manager.
Analysis of High ratio of calls
To achieve
individual to an individual
appropriate call Scrutiny of
3. To plan customers customer relative
frequency on individual
journeys and call potential. Analysis to that customers
individual customer records.
frequencies to of order/call yield. Shortfall on
customers. Analysis of order/
achieve minimal ratios. Discussion agreed total
Number of live call ratio.
practicable selling and agreement number of calls
customer calls Examination of
cost between made over an
during a given call reports.
salesperson and agreed period of
time period
manager. time.
Identify total
Shortfall in
Number of number of Examination of
number of
prospect calls potential and call reports,
prospect call from
during a time actual customers records of new
4. To acquire new agreed standard.
period. Selling that could accounts opened,
customers Low ratio of
new products to produce results. ratio of existing to
existing to
existing Identify potential
potential
customers. opportunity areas customers.
customers.
for prospecting.
60
Marketing Project For A New Product Launch
To exercise the
Standard to be Regular Failure to identify
necessary skills
agreed in observations of objectives of each
and techniques
discussion field selling using stage of sales
5. To make a sales required to
between manager a systematic approach, identify
approach of the achieve the
and salesperson analysis of specific areas of
required quality identified
related to performance in skill weakness, use
objective.
company each stage of the of support
Continuous use of
standards. sales approach. material.
sales material.
61