Presented By: Hina Yousuf Sana Jafri Aqib Awan Abbas Sherazee Jahangeer Ali Khan Faizan Ahmed Stardust Private Limited Pure – Moisturizing Hand Wash Fresh – Body Wash Face Factor – Gentle Face Wash New Product O0 Hina Yousuf Sana Jafri Faizan Ahmed Jehangeer Ali Khan Abbas Sherazee Aaqib Awan CEO Director Marketing Director Finance Director Human Resources Director Production Brand Manager Manager Finance Manager Human Resources Manager Production Advertising Agency Accountants Creative Account Executive Assistant Brand Manager Human Resource Executives Production Supervisor Director Sales Manager Sales Sales Executives Distribution Manager Assistant Distribution Manager ‘To manufacture and supply premium quality deodorant sprays to consumers at a cost effective yet profitable price. Build positive relationships with customers and satisfy customer life style and hygiene needs.’ ‘To establish ourselves as the only deodorant manufacturing company in Pakistan that produces premium export quality deodorants to consumers within and outside Pakistan. Our vision is to break the perception of associating low quality with locally manufactured products.’ Market Shares of Deodorants Axe 13% Other Deodorants 14% Lynx 3% Impulse 8% Rexona 6% Gillette 5% Fa 13% Nike 11% Adidas 11% Sure 10% Nivea 6% Market Shares of Direct & Indirect Competitors All Deodorants 3% Alternatives 15% Perfume 42% Talcum Powder 40% Age Target market 13 – 25 Habitual users Life Stage Middle School, High School, College, or University Fresh Graduates Fresh Career People who are interesting in leisure activities, such as parties and sports Use The uses of 0º will be as follows: Daily grooming Personal care and hygiene Getting dressed 0º is targeting the upper-middle and upper class individuals of Pakistan in: Karachi: Areas include Defence, Clifton, KDA, Bahadurabad, and North Nazimabad Lahore: Defence, Gulberg, Liberty, Lahore Cantt, and Model Town Islamabad: Most of Islamabad is included in the geographic location Faisalabad: Most of Faisalabad is included in the geographic location 0º will be the only deodorant manufacturer in Pakistan Since it will be a manufacturer within Pakistan, there will be no payments of customs State-of-the-art imported machinery Established corporate image Low cost labor Self-generated power supply Strong liquidity base Low priced product Centralized organizational hierarchy Strong research into target market Sex appeal used in advertisement, which attracts people Commitment towards customer satisfaction Commitment to provide reliable products of high quality Caters to both genders Only one other deodorant brand (Rexona) advertises in Pakistan Imported ingredients Startup cost of capital equipment Inexperienced employees Training requirements No brand recognition No scent variety Not accredited by any quality control body No previous experience in deodorant market Less market share in initial stages of product life cycle Not many deodorant users exist in the market (3% penetration in entire population) 0º only targets the upper-middle and upper classes, thus there is a restriction to the strategies being used Expanding targeted markets International expansion Increasing shelf-space Vendor Supply System Large numbers of sales can lead to economies of scale Introducing variants in the future Reluctance of consumers to try new and locally manufactured product Political instability Competition by large and established multinational corporations Emergence of more brands Price wars Political Issues Gang Wars Strikes Change in Government Regulations Taliban Threats Security Concerns Public Holidays Economical Issues Global Recession High Inflation Rate in Pakistan High Rate of Borrowing Globalization: The phenomenon of globalization has led to several famous and large brands of deodorants from different countries being recognized and accepted by consumers. High Fuel Prices Social Issues Small Target Market Social Acceptance Nuclear Families Technological Issues Lack of Machinery Lack of Skilled Labor Lack of Electricity Lack of Raw Materials Price Production Product Place Distribution Price Promotion Female Deodorant Ingredients Butane Isobutane Propane Parfum Cyclomethicone Aluminum Chlorohydrate Talc Disteardimonium Hectorite Dimethicone Octyldodecanol Butyloctanoic Acid Theobroma Cocoa Extract Cocoa Seed Butter Men’s Deodorant Ingredients Alcohol Denat Butane Isobutane Propane Parfum Isopropyl Myristate Propylene Glycol Linalool Citral Benzyl Alcohol Benzyl Benzoate Eugenol Men Women Fa (150ml) 150 150 Sure (150ml) 190 185 Nivea (150ml) 260 280 Axe (150ml) 160 - Lynx (150ml) 160 - Rexona (Roll-On) 90 90 Adidas (150ml) 170 165 Nike (150ml) 170 165 Gillette (150ml) 195 - Impulse (150ml) - 120 Men Women Raw Material Cost 30 34 Overhead Cost 4 4 Labor Cost 4 4 Promotional Cost 34 34 Distribution Cost 3 3 Profit 6 6 Total Cost 81 85 Distributor Margin (10%) 4.05 4.25 Cost Before Sales Tax 85.05 89.25 Sales Tax (16%) 13.608 14.28 Cost After Sales Tax 98.658 103.53 Retailer Margin 9.8658 10.353 109 114 Maximum Retail Price Manufacturer Wholesaler Retailer Consumer Penetrate market by 3% in the first fiscal year Establish competitive prices to capture markets Create brand awareness through heavy advertising Solidify distribution base Build PR through launch event Achieve high state of product awareness and recall Achieve economies of scale by June 2010 Build better relationship with wholesalers than rivals Have a better reputation with customers than rivals To achieve 20% return on capital employed by June 2015 To gain 10% of the market share by 2019 Diversify product range by 2015 Achieve growth of 60% by 2016 Capture different target markets Establish brand loyalty and equity Export 0º to far-east and middle east markets by 2025 Advertising Facebook GT Magazine 96.0 FM 89.0 FM Billboards Dawn Newspaper Daily Times Newspaper Play TV Style 360 Promotional Campaigns in Supermarkets Karachi: Agha’s, Ebco, My Superstore, and DMart Islamabad: D. Watson, Shaheen, Herald, Jinnah Superstore, and Shams Store Lahore: HKB, Pot Pourri, Zakah Pharmacy, Liberty, and Europa Faisalabad: All large stores Middle Schools and High Schools Colleges The best Gyms in each city (such as Shapes and Lifestyle in Karachi) This would be done in the sense of getting media publicity by having reviews and articles written about 0º in magazines and newspapers. There could also be TV and radio presentations given. 0º could also host or take part in charitable events and contributions. Promotional Budget for Men’s Deodorants (Rs. 109) Total No. of Cans Sold per retailer, per month 20 Total Sale per year 240 Total No. of Retailers 2500 Total Cans Sold per year Total Sale Promotional Cost Per Can Total Cans Sold per year Annual Promotional Cost for Men’s Deodorants 600,000 Rs. 65,400,000 34 600,000 20,400,000 Promotional Budget for Women’s Deodorants (Rs. 114) Total No. of Cans Sold per retailer, per month 20 Total Sale per year 240 Total No. of Retailers 2500 Total Cans Sold per year Total Sale Promotional Cost Per Can Total Cans Sold per year Annual Promotional Cost for Men’s Deodorants 600,000 Rs. 68,400,000 34 600,000 20,400,000 Total Annual Promotional Cost = Rs. 20,400,000 + Rs. 20,400,000 = Rs. 40,800,000 Total Annual Sales (Forecasted) = Rs. 65,400,000 + Rs. 68,400,000 = Rs. 113,800,000 Facebook GT Magazine Billboards Dawn Newspaper Daily Times Newspaper Play TV Style 360 96.0 and 89.0 FM Event Total Budget – Rs. 40,800,000 1.50% 5% 30% 22% Event Print Ads Billboard 12% Radio 29.50% TV Internet Television: Dawn News Style 360 Play TV 1 minute advertisement at prime time – 6pm to 10pm. 5 times daily Radio: 96.0 FM 89.0 FM 15 second advertisement at prime time – 6pm to 10pm. 5 times daily Billboards: 4 Billboards in Karachi 2 Billboards in Lahore 1 Billboard in Islamabad 1 Billboard in Faisalabad Karachi: 2 Talwar, 3 Talwar, Shahrah-e-Faisal, Clifton Bridge Lahore: Liberty, Gulberg Islamabad: Block F-9 Faisalabad: Anywhere Internet: Facebook Magazines: GT Once every month – full page advertisement Newspaper: Dawn Daily Times Dawn: Twice every month, so 6 times in the quarter Daily Times: Only on Sunday supplement Event Product Launch Event