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  1. 1. Hajvery UniversityPrinciples of ManagementAssignment # 4Presented By:Engr. Shoaib Mughal (312-3302)
  2. 2. Company Introduction, Diaper History, Promotions01Decline Reason, Competitors, Market Growth02SWOT & PESTLE Analysis, Two year Marketing Plan03Product Segmentation, Targeting0405
  3. 3. Shield Corporation Ltd.Shield® Corporation Ltd. established in 1975 as a Public Limited Company waslisted on the Stock Exchange in the same year. Shield® by virtue of its vast rangeis the leader in Oral and Baby Care segment. All the products manufacturedcomplying sophisticated European Technologies fully comply with the InternationalStandards.Shield® is committed to the protection of the environment and for the strict codeenforcement and regulations of ISO 14000 systems is skilled, seasoned, andyoung. They are focused and dedicated to make Shield® a renowned, growing andleading company not only locally but globally as well, and also a responsiblecorporate citizen. For last two decades, Shield® has shown a success track recordand launched a variety of Quality Products and set new milestones in the marketwith an ultimate objective of „Care‟. For that reason, all the intermediaries havealways shown a satisfactory trend with the operations and marketing activities ofthe company.
  4. 4. VISION:Our vision is to be an organization offering value to everyone in the family, known for itsinnovative, groundbreaking & responsible marketing approach where people love theirjobs & feel proud to be a part of Shield.Mission :our mission of caring and protecting human life. The „Care‟ is the core spirit, which hasmade Shield® as a recognized household name in Pakistan. approach has been theforefront in every managerial decision and this has been incorporated in every step of thesystem, so in other words, every step is directed towards the ultimate goal of „CustomerCare‟.
  5. 5. The first idea for the disposable baby diaper came in 1947 by Vic Mills, which eventuallybecame the Pampers baby diaper. Pampers was launched in the spring of 1961.Interestingly, the first baby diaper did not have means for attachment. This wasproblematic for the consumer because one needed to have tape ready for each diaperchange.The disposable diaper industry felt the innovation for the baby diaper in the 1970s.Adding an elastic stretch to the waist of disposable diapers in the early 1980s helped thefit of the diaper. The 1990s added many new features to the baby diaper, such asmechanical tapes in the form of Velcro, and other types of hook and loop. Pamper is themarket leader in this category and introduce new features in their diapers.In August 2000, P&G launched “PAMPERS” in Pakistan. Currently the major competitionis in between Pampers, Baby Master, Diapy and others.
  6. 6. Product Concept:The product concept of diapers is to prevent the leakage of urine and stool.There are two types of diapers:Cloth diapers Disposable diapers
  7. 7. Presently, in this market all the companies related to baby diapers haveemployed both push & pull strategy.After a long standing in the market, Pampers has created very strong brand equity.Intense price competition is from the imported/smuggled brands, which retailersprefer a lot because of the high margins.Purchasing behavior depends upon the quality, consistent market presence.In the diapers category number of players like P&G, Diapy & Z&J (Baby Master)gained the „trust‟, which the consumer has gave after a long period of time becausethese companies didn‟t have link with baby category before in Pakistan market.
  8. 8. Having a child is an emotional thing for the parents, so they are veryconscious about their child health. Here consumers are quite carefuland take serious and cautious steps and choose those brands whichhave goodwill and established in their mind.The young mothers take advices/instructions from their mothers,mother-in-laws; close family members and friends, who are alsomothers. So there is strong presence of Word-of-Mouth network.Mothers are the main purchasers of the products, target purchasingagent and they make the final decision.A high profile market requiring heavy promotion through mass media.Seasonality factor is present in this category.
  9. 9. Shield launcher their diaper by the name of Shield Diaper on April, 2011. But due tosome factors Shield Diaper was decline.GST ISSUES AT LAUNCH: Around the time of launch GST was implemented by the Govt. Baby Master responded by selling 60,000 cartons on old price because of GSTbeing levied.SEASONAL IMPACT: Demand in off-season is substantially low. The Peak season for Diaper sales is between October & March. Shield launched their diapers in April‟11 & found a lot of resistance from tradesince they were already overstocked with different Diaper brands.
  10. 10. COMPETITORS REACTION: Re-launch of Pampers in new packaging and a lot of media noise MRP (pickup price) reduction of Pampers from Rs. 239 to Rs. 199 (17%reduction). 12+1 scheme by Baby MasterLAKE OF ADVERTISEMENT & MARKETING: During the launching of Shield Diaper Marketing department failed to have goodmarketing and advertisement strategy.
  11. 11. Shield® as the market leader in the Baby Care segment plans to be the total solutionprovider in this category. Shield® is going to Re-launch their Baby Diaper, whichoffers: Frontal Tape: Velcro system that allows unlimited opening and closing. SoftTouch, cloth like, Breathable Back Sheet. Internal Gel Layer: Allows immediateabsorption of urine thus avoiding skin irritation. Elastic Leg Cuff: Fit on baby‟s thighsto prevent leakage.
  12. 12. The major competitors of Shield Diaper:
  13. 13. Estimated annual value is Rs. 4,408,992,000/-. Market growing rate should be 8% to 10%.The movements of the products have trough and crests.SEASON PERIODWinter: September to MarchSummer: April to AugustApproximately 35% sales decrease in April to August.
  14. 14. 1. Small ~ 35%2. Medium ~ 35%3. Large ~ 15%4. Extra Large ~ 15%Regular Pack ~ 40%Economy Pack ~ 60%
  15. 15. Strengths: The products have a mass-market appeal. Shield enjoys a very well established distribution network in thecountry approximately 250 distributors in Pakistan. Shield as a mega brand enjoys a very good reputation in terms ofBrand Equity in the market amongst consumers especially in themothers. Higher management is confident & highly supportive.Weaknesses: As far as Diapers is concerned, the company does not have experience in this range. As this range needs lot of promotion and awareness support, so large amount of budgetshould be allocated to take a considerable share from pampers and Diapy to create abrand identity in the market. The machine can only produce basic diapers, and it is inactive in term of innovation.
  16. 16. Opportunity: Consumption rate of this range is comparatively higher than the present feeding range. This will provide a base to enter into new segment in the Baby Care segment like DiapersRash Cream, Baby Wipes etc. Consumption rate of this product is high. (Diaper life is not more than 10 hours) This range is catering to the same target market in which we are presently targeting,which ultimately enhances the overall company‟s image and portfolio. Increasing awareness generated by companies to shift from cloth nappies to disposablediapers through various Commercial/ public service TVCs. There are still a number of areas which require additional improvement. One such area isthat of leakage reduction. The pursuit of leakage free diapers makes the trial of newdiaper brands an attractive proposition. Leveraging Shield baby cares existing capabilities in the baby care market towards thediapers category.
  17. 17. Threat: Pampers is very well entrenched in the mind and market. Theyare the market leaders. Secondly, when they face the challengefrom Shield they would react very aggressively. Diapy, which isagain a very strong brand enjoy very strong Brand Equity intheir respective market. New entrants ( influx of low cost Chinese brands).
  18. 18. PoliticallyThere are some politically factors. Like- Tax policies.- Political stability- Fiscal policies- Trade and tariff limitationNOTE: But unfortunately in Pakistan- consumer protectionlaws are not very strong.EconomicallyThese are some Economically factors.- Economic stability- Economic growth- Interest rates- Inflation rates- Exchange rates
  19. 19. Socially. - Population growth rate- Age distribution- Career attitudes- Consumer behavior- Religion and culture itselfTechnologically- Distribution and communication channels- Technology incentives- Automation- Rate of technological change- Environmental and ecological aspect- Barriers to entry- Production level- outsourcing decisions
  20. 20. LegallyThe law would be impact any industry and business.- Consumers protection Laws.- Safety Standers laws.- Labor laws.EnvironmentalThe environmental factors include.- geographical location,- Climate, weather- Other such factors that are not just limited to climatic conditions.
  21. 21. Segment 1 Consume 6 to 7 diapers a daySegment 2 Consume 2 to 3 diapers a daySegment 3 Consume 1 diaper in a day usually at night.Segment 4 Here diaper use occasionally especially attending the parties.Principal Benefit: Leakage protection and drynessGender: UnisexArea: Urban and Rural areasDecision Making Units (DMUs):a. Buyer: Motherb. Influencer: Grand Mother and Family Membersc. Consumer: Childd. Decider: MotherSegmentation:
  22. 22. Targeting:As stated in the DMUs, the target consumer is child, but being minor he/shecannot take any sort of decision and totally dependent on his/her family, wherebuying decision is taken by the „purchasing agent‟.The ‘target purchasing agent’ is:Age Group: Young mothers to middle adulthoodAge Range: 25-40Information Source: Parents; family members; television; News paper.Therefore, the communication mix, promotion and packaging should be designedto appeal the purchasing agent, who is mostly mother of the user.
  23. 23. “For young mothers looking for value for money in buying quality diapers fortheir babies from a trusted source that provides the basic hygiene for thehealthy growth of their babies.”
  24. 24. Shield® Diapers packaging is designed with eye catching colors andkeeping the same theme as of its existing feeding range.
  25. 25. FEATURE PAMPER DIAPY BABY MASTER SHIELDVelcro √ √ √ √Back SheetNon-WovenPE √ PE √WetnessIndicator- - √ -Perfume cumlotion√ - - -„√’ indicates the presence of the feature.
  26. 26. VISION:“To become the best personal and household care company and amongstthe most trusted names in product categories we decide to be in.”MarketPenetrationProductDevelopmentMarketDevelopment DiversificationSTRATEGY:PresentPresentNewNewMaMARKETINGMARKETING OBJECTIVES:Proposed strategies and plans arebased upon the following basic marketingobjectivesIt should be penetrate and achieve 7%of market share in the Baby DiapersCategory in the launching year 2013.It should be available in the nook andcorner of the country in 2 months afterthe launch.It should be increase the range and toestablish Shield as a „Total SolutionProvider‟ in the Baby care segment.
  27. 27. Industry Pricing Map:Shield should be initially charge Rs. 18.29 per diaper in regular size andRs 17.50 per diaper in Bachat Pack.
  28. 28. Company Size Unit in PB Retail Prices Per Unit CostDiapy Regular 7 135 19.29Baby Master Regular 7 135 19.29Dryfur Regular 7 125 17.86Happy Nappy Regular 7 120 17.14Pampers Regular 10 199 19.90Shield Regular 7 135 18.29Diapy Economy Pack 24 430 17.92Happy Nappy Bachat Pack 14 220 15.71Baby Master Bachat Pack 14 270 19.29EQ Economy Pack 18 260 14.44ABC (Ezigrip) Economy Pack 14 260 18.57Shield Bachat Pack 14 250 17.50Pampers Value Pack 20 370 18.50RegularPackValuePack
  29. 29. Shield currently following contractual VMSsystem because “Premier Group "is anofficial partner of Shield as Distributorswith 250 branches in Pakistan.DISTRIBUTION OBJECTIVES:Product to be made available in all present towns in entirePakistan in two months after its launch.Cover 23,000 outlets in launch year.Focus will be at retail level then to wholesale.
  30. 30. Distribution Strategy:Three phases of distribution should be employed to ensure that Diapers should be in theright place at the right time and in the right quantity.New dealers should be appointed in case of conflict of interests.To fulfill the above mentioned objective, the launch month is divided into following phases:MonthDay 1 - Day 07 ASM TownsDay 7 - Day 14 ASM + SO TownsDay 14 – Day 25 ASM Town Whole sale + SDsASM Base TownsSO Base TownsOthersApril 2013 April 2013April 2013
  31. 31. Shield Distributor W/SRetailDISCOUNT STRUCTURE:Shield should be offered some discount structure.Shield to Distributor: 9.5%Distributor to Whole Sellers: 5%RetailUpto 750/- – 1999/- Discount 1%Upto 2000/- – 2999/- Discount 2%Above 3000/- Discount 3%
  32. 32. The promotion strategy will initially revolve around informing customers about theproduct and generate trials.Above-the-line Activity:Television Commercials: To create awareness & recall, TV commercials play avery important role but we are designing different ad‟s with certain objectivesFM Radio: Presently FM Radio has high listenership specially the music segmentsby the housewives in the morning while executing daily tasks in kitchen and otherhousehold activities
  33. 33. Print Media – Newspapers/Magazines: Advertisement willbe placed in newspapers/magazines.Billboards – Billboards will be placed at selected locationsto create awareness & Recall of the product.
  34. 34. Below-the-Line Activity:1.Merchandising:To enhance the visibility and effective display of ShieldDiapers2.Door to Door Selling (DDS):The main objective of this activity is to createawareness about the brand and increase the trail.3.Sampling in Maternity Homes:To create one to one close contact and an emotionalbound between the Mothers and Shield.4.Shop Converter Activity:To provide information about the Shield diapers to thecustomer visiting the shops.5.Shopping Mall Activity:To provide information about the Shield Diapersthrough sampling to the mothers at shopping mall.