INTRODUCTION

Dentonic was the first industrial toothpowder launched in Pakistan. It was launched in 1963 and in a couple of year it started used to be at most households. You can judge from the fact that every other day you would hear a Dentonic ad on TV and Radio. But now its slowly losing its popularity. Why? Because of change in cultural trends, people like convenience and comfort. They are concerted about their health and fitness. The trend is towards showoff and not simplicity. Therefore they have switched over to paste. This explains the declining popularity of Dentonic. To take hold of the declining sale we are trying to come up with a new Dentonic product (Dentonic toothpaste), which caters for the current changing in cultural trends. To take forward our idea we conducted a market research in the two cities of Pakistan. Islamabad and Rawalpindi. The aim of the research was to know our target market, their need and demography. Due to hostile competition in the todays environment the customer has a huge choice to choose from high quality to the lowest price toothpaste. Many people want good quality product with the lowest price. This thinking follows largely in the middle class population, which we consider a favorable segment for our product. In the proceeding pages we have written a full marketing program for our new product. Such as objectives, situational analysis differentiations and positioning, and Marketing Mix. (Product, pricing, placing and promotion.)

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MARKETING PROGRAM
O

UR MISSION STATEMENT
We offer a product that is a unique blend of good quality with least price for average Pakistani.

Major objectives for Dentonic toothpaste

1. To produce such a product which is according to the financial capacity of average Pakistani. 2. Coming up with a product that caters for the current changing cultural trends. 3. The image of the Dentonic toothpaste should enhance the image of the parent product. 4. Initially we will launch our product in Rawalpindi and Islamabad but later on we plan to introduce it into new geographical areas where our Dentonic tooth powder already exists. 5. We will promote our product through effective promotional campaign. 6. Concentrate on decreasing costs through effecting management of cost and through using latest technology as well as hiring a skilled management, workers and sale force. 7. Increase its availability by expanding the distribution channels over time. practical shape to our idea. 9. At the initial stage while introducing this product our goal is sale oriented rather than profit oriented. 8. Efforts should be made to get a financial assistance so that we can give a

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SITUATIONAL ANALYSIS
Micro and Macro Environment Micro Environment:
While producing product like Dentonic toothpaste in the competitive market we must consider the following Micro/Macro factors.
(Note that these all are assumptions because there is no information available about company on Internet.)

Financial position Suppliers Market intermederies Customers Competitors

Financial position: (internal factor)

In our view the financial position of the company is not very strong (for 39yrs they are producing a single product) so we have to take huge loan from the banks to pay for raw materials and for other marketing expenses. As the interest rates are very high therefore it is difficult to pay it back. But we hope through effective planning, we can manage it.

Suppliers:
In Rawalpindi and Islamabad where we have conducted a research there are three main suppliers. It mean that here some sort of monopolistic type situation exits therefore the rate of raw material is very high.

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Market Intermediaries: Distribution channels: In Islamabad and Rawalpindi there are two main
wholesale markets. In Rawalpindi Lankari Bazar and in Islamabad G-9 Karachi company. These markets are not only popular in these cities but also in other areas situated near these cities.

Financial markets:

In both twins cities many banks are situated such as

I.D.B.P, etc. we hope we can get a required amount of loan from these institutes.

Marketing services agencies:

We have to get the services of these agencies because we need effective marketing for our new product. We try to find those companies, which provide these services at reasonable rates.

Customers:
Almost 70% of the population of Rawalpindi and Islamabad are middle class people. [E.g. the average monthly income of citizens of Islamabad, which is a capital city of Pakistan, is only Rs.10, 000 (source:
www.asiaweek.com)]

People, these

days are very conscious about spending money because their buying power has reduced to a great extend because of the inflation. Middle class is actually our target market, which in reference to these cities, are huge in number. Our present customers largely belong to the lower class Majority of them are tradition bound and are trapped in the vicious circle of poverty. They take a lot of time to accept changes. Therefore we are trying to target new market e.g. middleclass etc.

Competitors:
The market we are going to target is highly competitive. Many low price toothpastes are available in the market. For example English, sparkle two good, Minto etc. To get an edge on them we need to offer a quality product with low price and start an effective marketing campaign.

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Macro Environment:
Economic conditions:
Economic condition are further subdivided into three categories: Business cycle Interest rate Inflation

Business cycle:
As we know our economy is in resection. At this time the launching a new product or in other words expanding a business is highly risky. Especially in the case of our product it is more risky.

Interest rate:
The interest rate offered to us in case we take a loan is in between 17% to 20%, which is very high. As the market is very competitive so it is very difficult to get higher profit so we have to stand on a minimum profit and under these circumstances it is very difficult to repay loan with such a high interest rate.

Inflation:
In Pakistan the inflation rate is very high generally speaking the growth rate is from 8 to 10%. Consumer buying power is decreasing day by day. All the raw material is increasing day by day. Our mission is to produce a product of better quality with a low price. Under these circumstances a lot of effort is needed to achieve our mission.

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Government policies towards industry and business:

Now, a day the government is very harsh towards business community Documentation of economy results in disaster. As a result of it business suffer a lot.

Taxation:
Government has declared some areas as tax free zone. So we will go for this facility. But we must keep one thing in mind that in Pakistan govt. Polices are not permanent.

Smuggling:
This is one of the major factors because we are producing toothpaste of low price (20-25) where the smuggled toothpaste (family size) of better quality is available in Rs18-20. Therefore we must keep this fact in our mind.

Demography:
The average income of citizens of Islamabad is 10,000 the population of Islamabad is more than 800,000 and the population of Rawalpindi is almost more than 1,500,000. For our product age wise and income wise population distribution is important. Below we are providing age wise population distribution of Pakistan. Population (2000) in thousands
AGE TOTAL 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 TOTAL 141,554 17,939 15,141 12,942 10,706 9,439 7,711 6,391 4,998 3,920 3,498 2,987 MALE 72,488 9,254 7,830 6,700 5,559 4,873 3,957 3,233 2,481 1,913 1,721 1,484 FEMALE 69,066 8,684 7,311 6,242 5,146 4,566 3,754 3,159 2,517 2,006 1,777 1,50

Source: U.S. Census Bureau, International Data Base.

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Cultural Factors:
There is a cultural shift is our society and now the people are not ready to use products such as toothpowders Dandasa etc. They like convenient products. Show off is very common in our society. Therefore almost 70% people in related to the areas where we took interview use toothpaste. Moreover most of the people of Islamabad and Rawalpindi are health conscious and know the importance of good toothpaste for their healthy teeth. Therefore we include beside the element of low price, the element of quality, which guarantee dental care.

International Trade policy:

The policies of World trade organization are very hostile against third world countries e.g. if Pakistan allows free trade, this result is the bankruptcy of local industries. So we must produce such a good, which could meet the international challenges.

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SWOT ANALYSIS
STRENGTH
The strengths of the Dentonic manufacturing company are as follows: 1. Brand is well established. 2. Product is available in the market with consistency. 3. It was established in1963 which proves, has survived four decades. 4. It is the only well know brand of powder available in the market. 5. Its ads are very popular among the youngster.

6. It was the first industrial project in Pakistan so the banks can trust on it
while providing loans. (Source: www.webpages.com.pk)

7. People have awareness about this product and most of them whom we
interviewed rate it good. (16 out of 40, 40%)

8. Most of the people are willing to use Dentonic toothpaste, if it is available

in the market. (36 out of 40, 90%)

Weaknesses
1. Its image in a whole Pakistani community is not very good.

2. People want convenience so dislike using tooth powder. Whom we

interviewed most of them including a lower middle class people use toothpaste. (28 out of 40, 70%). 3. No additional facility has ever been given to customers for enhancing it image and sales, since it was established. 4. The customer has an image in mind that this product belongs to the lower class of society.

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5. In our view the company is not financially so much strong. Because for almost 40 years they didnt introduce any new product nor improve the quality of their existing product. Similarly they didnt promote their product a lot. Therefore it is difficult for company to take high risk.

Opportunities:
Almost 70% of the population of Pakistan is miserly effected by inflation. They are ready to buy a product of good quality at reasonable prices. So considering this we have a huge target market which is loyal to good quality & low priced product. While introducing Dentonic toothpaste we have good opportunity of not only increasing the sale volume but also increasing share in the total target market.

Threats:
1. The toothpaste market is very competitive. Therefore vast promotional campaign is required. 2. Majority of the Dentonic users belong to the lower class and are tradition bound so take time to accept change. 3. Because the image of Dentonic is not good therefore it is a danger that may be Dentonic toothpaste will not be accepted in the society. But we believe although the image is bad but it is not incurable. Through effective planning and marketing efforts we can manage it. 4. Due to influence of foreign companies hard work is required to compete with them.

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GROWTH STRATEGIES
After scanning our micro/macro environment and SWOT analysis the question arising here is that what are we doing? Basically we are developing a new product for a new market. We are entering into a new market as well as with a new product due to the change of cultural patterns. Now people like convenience. They like those products, which are easy to use. Moreover on the basis of our research we find that a large population of our new market use toothpaste so we are introducing Dentonic toothpaste for them. This approach helps us to increase our revenue as well as market share. The important feature of our new market is, that they are mostly belonging to the middle class. They want quality if provided to them at low price. Secondly due to the intensive competition in toothpaste market as such nobody is loyal to any toothpaste. Those products are sold much, which are promoted much. To keep our product growing we have to promote it much other wise we cannot achieve our goals. Along with diversification strategy we are also trying to sell our new product to Dentonic toothpowder user. We hope sooner and later we are able to acquired goals and over previous customers will also buy toothpaste. One can ask that you are the only firm that is producing toothpowder. Why you are developing new product and entering into a new market? The answer is due to the availability of low price toothpaste we think our toothpowder market cannot compete with them. To give them a tight competition it is necessary to develop a new product so that we cannot loose our market.

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DIFFERENTIATION AND POSITIONING

Differentiation:
In order to give birth to our product name and image we are launching Dentonic toothpaste. This paste is although not so much different from the existing toothpaste available in the market, but we have planed to differentiate it from our competitors using various marketing techniques, such as owing a different word in customer mind, by using flexible tubes (like close-up tube) which is not yet been introduce in a low price toothpaste. We will focus on quality and project its quality features excessively through advertisement such as only reliable low price toothpaste for your dental care etc.

Positioning:
Before we discuss positioning. First of all we want to discuss, the different segments of the market. What segment we are targeting and why we are targeting this? Since in Pakistan majority of the population lives in the rural areas, they are still uneducated, uninformed and of a conservative nature making them quite tradition bound. Therefore it is very difficult for us to develop a product for these people. These people dont like to change their habits. According to the rough estimate 55% of the total population of Pakistan belongs to the category of laggards. Whereas 15% are lower middle, 18% are upper middle, 10% are upper class and 2% are elites. Our tooth powder is very popular among the lower class, lower middle class as well as to some extent upper middle class. In the resent years because many other low price toothpaste like English, Sparkle two good etc. have emerged. This result is our toothpowder and its market shared to start

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decreasing. To take control over this situation we have decided to develop a new product as well as a new market.

Segmentation:
We have divided the Pakistani community on the basis of their need characteristics and behavior. We consider different social classes as our basis of segmentation. They are upper class, middle class and lower class people. The upper class people generally want a high quality product. They are mostly health conscious and being greatly influenced with imported product. Now getting the attention of these people is very difficult. Because Dentonics image in the eyes as a powder and a product for lower class, repels them away from any product under the brand name of Dentonic. Secondly we cannot finance a huge research to develop a product, which is of high quality that could compete with foreign toothpaste. Neither can we start a comprehensive promotional campaign to get the attention of these people towards our product. The lower class people are mostly conservative and they have limited excess to media. Therefore they take time to accept new product. The third and last segment is middle class, which is a favorable segment for our new product. We have various reasons to target these people. Because: Our economic conditions are getting worse to worst. The gap between rich and poor is becoming wider and wider. People belong to middle class mostly are concerted about a low price and a high quality product. Among these there are many people who easily adopt a new product if it is of a low price but of good quality.

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 Through our research we came to know that majority of these people

have an awareness of Dentonic toothpowder (32 of 40, 80%) and they have a good image of Dentonic. (13 of 40 32.5% good & 14 of 40,35% fine). Almost 90% of people are ready to buy Dentonic toothpaste if it available in the market. Many people want some change in the packing of toothpaste as well as it quality e.g. some suggest flexible tube for Dentonic toothpastes. Some Dentonic users are also ready to buy the product if the product meets their financial capacity as well as expectation. E.g. Quality of toothpaste should be like Dentonic powder or better

Target Market:
We think from the above discussion as well as from the result of the survey that middle class people could be our target market. Among middle class we have targeted those people that belong to the income rage of 2000-10000,all people from children to elders up to age 50. The some common characteristics of these people are:

They are price sensitive although the results of the survey showing
some thing else but we think it could be an error of research. The figures we obtained from our survey shows (17 0f 40 42.50% said they see price, 14 of 40, 35% said they see quality & 9 0f 40 22.5% said they see both price and quality.) They belong to the income rage of 200010000. Most of them do a lower level job e.g. clerks, mechanics, lower level administrative work etc.

They are basically our new market because majority of them use
toothpaste. (28 of 40, 70% use toothpaste, 8 of 40, 20% use toothpowder and rest of them use other things e.g. Maswaq etc.)

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 The lower class as well as the upper middle class can be our potential target market if we are successful in promoting our new product. They are culturally moderate people as compare to lower class. Moreover as we are mentioned in our initial objectives that in the beginning we will only target the market of Islamabad and Rawalpindi (largely lower areas of these cities). Although the market here as compare to the other cities of Pakistan e.g. Karachi is small but we think it is good for testing. If our product is successful in this area than we will definitely target other cities of Pakistan e.g. Karachi, Lahore etc. after conducting a comprehensive survey. Rest of the detail about this class will be given in the research analysis. Now we will explain where we have positioned our toothpaste in our expected customer mind. Twice a day every day is the phrase, which is already known by the name of Dentonic toothpowder. In case of Dentonic toothpaste we are replacing this phrase with this: we care for your teeth Moreover some change definitely we will bring in projecting the image of the Dentonic toothpaste, which could make it different from other toothpaste. We have decided that we will project it as a low price and good quality paste for average Pakistani. This projection helps us to get unique position in the market. Because all the existing low price toothpaste e.g. English projecting their toothpaste on the basis of low price only. We project our toothpaste as good quality paste, which is the only reliable paste available at low price for your proper dental care.

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Forecasting Demand:
AS we already said that almost 70% of the population of Islamabad and Rawalpindi belongs to middle class. Therefore there can be a huge demand for our toothpaste in these cities. If we talk in respect of our survey almost 90% (36 of 40) people are ready to buy Dentonic toothpaste. According to the census of 1998 the total population of Islamabad is 800,000 of these 800 thousand 34.4%(275 thousand) is a rural population and 65.6%(525 thousand) is an urban population.
(Source: population censes 1981 & 1998 or www.finance.gov.pk)

We have no reliable statistics of Rawalpindi population. In our view it population is more than 1.5 million. On the bases of these statistics and our survey results the expected demand for our product in Islamabad is 331 thousand in urban areas and 52 thousand in rural areas.) In Rawalpindi we expect 700 thousand people will buy our product. Hence our product minimum total market is 1.08 million. Among this large population belong to the middle and lower middle class. If we are able to sell our product to maximum people of our target market we can get our initial objectives.
(Formula we use is total population * .70 this give us middle class people after that we multiplied the answer

with .9 (our survey result) this will give us the expected demand. In order to save it from over estimating we deduct some people of rural side as well as urban side).

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MARKETING MIX
Finally after analyzing our expectation and survey results now we are designing the marketing mix of our new product, DENTONIC TOOTHPASTE. There are four elements of marketing mix. Product price Placement Promotion.

Product:
We have chosen Dentonic because our research shows that most of the people know Dentonic very well. By using this product, people would easily recognize Dentonic as the company, which has served them for decades and has satisfied their needs. Therefore any new product by them would never be ignored because of the loyalty people have with the old things.

Varieties:
Weve thought of installing Dentonic initially in one variety only, which is the mint flavor.

SIZE:
Initially well be introducing a large size pack of seventy grams. Later on well plan to introduce a small size pack as well as family size if its successful.

Design:
Well use the same design as that of Dentonic tooth powder, which has a multitude of yellow and green color.

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PACKING:
As we know its one of the major factors in promotion of the product. A good packaging encourages impulse buying. Along with the fact that it attracts the customers eyes and attention towards itself. Therefore, weve made an attractive pack of Dentonic toothpaste the important features of our packaging are as follows. 1. Price;( which is clearly written on the pack.) Its effect would be that the customer at first sight of the product would be able to assess its value and would itself do the work of a sales person. 2. Some information relating to the use of the product and benefits etc would be given in the pack. 3. Company name and P.O box number shall be given in front. So that if any customer or the retailers etc if have any query than they could easily contact the manufactures or the whole sellers for their urgent problem. 4. Another thing is that the package shall be attractive which weve taken form the original Dentonic parent product, which is quite attractive. And weve used family packing, such as the one that already exists in the original Dentonic so as to create a familiarity with the original Dentonic product.

IMPORTANT FEATURES OF DENTONIC:

1. Its a low price high quality product. 2. The regular use of the Dentonic toothpaste twice a day prevents from bacteria 3. Its available in a flexible plastic tube, which is soft packing that helps the ejection of the paste a lot easier. This feature has never ever before been introduced in a low priced toothpaste. Were the first one to introduce it. 4. It packing resembles that of the original Dentonic powder.

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Price:
As our target market is middle class (largely lower middle) whose earning per month is between RS 2000 to 10,000. So we must keep the price between RS 18-20 because. Our target market financial capacity is not so good. Our aim is to produce a quality product at low price. We want higher sales. We at initial stage will concentrate on higher sale and less profit margin.

Listed price:
The printed price of our product will be Rs 20.

Discounts and allowances:

We will provide 10% (Rs 18/tube) discount to the whole seller. If we authorized any firm to distribute our product we will provide 12% (Rs17.6/tube) discount to distributor, 8% (18.4/tube) to retailer. In case of credit 0.5% will be deducted in each case. Further we offer a bonus of 1% for whole seller if he sells 3600 toothpaste/month whereas 0.50% will be given to retailer if any retailer sells 250 pack of toothpaste per month. We set low price because we want to increase our sale. It is basically our saleoriented objective. If we are able to sell as much toothpaste to our target market we will achieve our initial goals.

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Distributional channel:
We will use two types of distribution channels. 1. Producer 2. Producer Wholesaler Retailer Retailer customer. customer

CHANNEL # 1
We will sell our product directly to wholesaler in case of Rawalpindi at Lankari Bazar and in case of Islamabad at G-9 Karachi company. AS we know that other areas markets are also attached with Lankari Bazar, so by selecting a wholesale market at Lankari Bazar we can also introduce our product in Taxila, Abbtabad, Heripur, Wah, and Gujar khan District etc. The villages related to Islamabad can come to Karachi Company for their purchase.

CHANNEL # 2
This distribution channel will largely work in Islamabad. We hire some Suzukis from the market. We have our own sale person who will sell the product directly to all well-known retail stores of Islamabad and Rawalpindi. By this approach not only, we can, give some profit margin to retailer but also we can get higher profit margin. This will also promote our product.

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PROMOTION:
No big idea gets off the ground without an adequate promotion. We plan to promote the product but that also, staying in our financial capacity, for that we want to advertise it as much as possible. All of our ADS must show the same idea. We care for your teeth. This is the word we want to owe in the prospects mind. For advertising we will use above the line as well as below the line advertising mediums. But our major focus will be on below the line strategy. BELOW THE LINE MEDIUM: We will distribute brochures in all sectors of Islamabad and Rawalpindi. We also plan to display our brochures in front of every major shop of Islamabad and Rawalpindi. In Rawalpindi, well use the billboards to advertise our new product which is the most effective advertising among the below the line strategy. Big banners, especially the ones hung at the entrance of bazaars and at different mela`s etc provide an adequate advertising. Well try to hang them at places where the maximum amount of people can see our Ads. Such as Murree road Rawalpindi etc. ABOVE THE LINE: We will do this type of advertising according to our capacity .Now in this case if we go on TV, then we will try that our ads come on prime time as well as on the children time. We plan in a way that our Ads at least continue for one month on Ptv and PTV World. MAGAZINES: According to the current statistics the Jung, dawn, news, akhbar-e-jehan etc are the biggest distributors of news. Now if we use them for this purpose then well have the widest promotion as compared: if we give somewhere else.

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Apart from this the evening newspaper are also going to be in consideration, so that these people who read these newspapers should also get aware of this product. Also the women digest such as the KIREN and KHAWATEEN etc will be considered. We are trying to give our ads in front page of every print media for at least one month. RADIO: Since most of the population in Pakistan lives in the rural areas. Over there due to the cultural trends, as well as poverty their still using radio habitually while working .In these places, Fm 100 and Fm 101, The RADIO PAKISTAN are mostly the most heard mediums of information interchange. Sales promotion. In order to increase our sale we have set a low price. Other strategies of sale promotion such as free sampling, free toothbrush with toothpaste etc at the initial stage we are not using. But when there is a need of it we will definitely use it.

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