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t TABLE OF CONTENTS TABLE OF CONTENTS EXECUTIVE SUMMARY EXECUTIVE SUMMARY............................................ 3 COMPANY PROFILE COMPANY PROFILE............................................... LOCATION OF ALA CHEMICALS LOCATION OF ALA CHEMICALS....................................4 AIMS AND OBJECTIVES AIMS AND OBJECTIVES.......................................... 4 MARKETING MIX MARKETING MIX................................................ 9 1). Product 1). Product................................................10 Dentonic Tooth Powder Dentonic Tooth Powder......................................10 Dentonic Tooth Paste Dentonic Tooth Paste........................................5 INGREDIENTS INGREDIENTS................................................12 2). PRICE 2). PRICE..................................................13 3). PACKAGING 3). PACKAGING...............................................7 4). DISTRIBUTION (PLACE) 4). DISTRIBUTION (PLACE)..................................... DISTRIBUTION NETWORK DISTRIBUTION NETWORK........................................ 14 SWOT ANALYSIS SWOT ANALYSIS............................................... 15 COMPETITORS’ PRICES COMPETITORS’ PRICES......................................... 17 DENTONIC TOOTH PASTE - DENTONIC TOOTH PASTE - A GENERAL PERCEPTION A GENERAL PERCEPTION..................18 TARGET MARKET TARGET MARKET............................................... 12 CURRENT SALES CURRENT SALES................................................. ADVERTISING BUDGETS ADVERTISING BUDGETS......................................... 21 HOARDINGS HOARDINGS..................................................... CONCLUSION CONCLUSION....................................................
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Page 1: Den Tonic

t

TABLE OF CONTENTSTABLE OF CONTENTS

EXECUTIVE SUMMARYEXECUTIVE SUMMARY.............................................................................................3

COMPANY PROFILECOMPANY PROFILE....................................................................................................

LOCATION OF ALA CHEMICALSLOCATION OF ALA CHEMICALS..............................................................................4

AIMS AND OBJECTIVESAIMS AND OBJECTIVES............................................................................................4

MARKETING MIXMARKETING MIX.......................................................................................................9

1). Product1). Product..............................................................................................................10

Dentonic Tooth PowderDentonic Tooth Powder..........................................................................................10

Dentonic Tooth PasteDentonic Tooth Paste...............................................................................................5

INGREDIENTSINGREDIENTS.......................................................................................................12

2). PRICE2). PRICE...............................................................................................................13

3). PACKAGING3). PACKAGING.......................................................................................................7

4). DISTRIBUTION (PLACE)4). DISTRIBUTION (PLACE)......................................................................................

DISTRIBUTION NETWORKDISTRIBUTION NETWORK......................................................................................14

SWOT ANALYSISSWOT ANALYSIS.....................................................................................................15

COMPETITORS’ PRICESCOMPETITORS’ PRICES.........................................................................................17

DENTONIC TOOTH PASTE - DENTONIC TOOTH PASTE - A GENERAL PERCEPTIONA GENERAL PERCEPTION....................................18

TARGET MARKETTARGET MARKET....................................................................................................12

CURRENT SALESCURRENT SALES........................................................................................................

ADVERTISING BUDGETSADVERTISING BUDGETS........................................................................................21

HOARDINGSHOARDINGS................................................................................................................

CONCLUSIONCONCLUSION..............................................................................................................

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EXECUTIVE SUMMARYEXECUTIVE SUMMARY

Dentonic Toothpaste – not quite a common name in the households of today and not

really a “must buy” for the women of today who want to give their family and more so

their kids the very best in dental protection. Dentonic toothpaste, ever since its

launch and inception has hit the doldrums and has not seen its sales and revenues

peak on a high note.

The project we undertook is basically to focus on the upheaval of Dentonic

toothpaste and brining it back to its feet. For this, our group conducted basic

research, brainstorming session, late night sit-ins and early morning newspaper

analyses which not only showed us the true state of Dentonic toothpaste in the

Pakistani market but also was an enlightening factor in detailing us what kind of

overhaul this brand needs in its inner ranks.

For re-launching, we touched upon the advertising rates and budgets, which

comprised of our running its commercials on PTV and GEO as well as displaying its

newsprint ads in the renowned dailies and their magazines. We also made use of the

outdoor media, i.e., the hoardings so that we could do our very best in making the

product a hit amongst its

target market, i.e., the classes B and C – to whom we are basically targeting

towards.

MISSION STATEMENTMISSION STATEMENT

”To develop and sell high quality oral dental care that will capture the

dominant share of mind in all markets”

COMPANY PROFILECOMPANY PROFILE

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ALA Chemicals has been in business since 1963, manufacturing and marketing the

quality oral care products for healthy and beautiful smiles. As per their commitment

with the nation and also with their valued consumers, they are consistently

maintaining excellent quality standards of their products at all the stages. Every

product that comes out of the Ala plant achieves the highest level of quality. The

company is proactive with the rapidly changing market requirements of the

consumers.

MANUFACTURING & PACKAGING PLANTMANUFACTURING & PACKAGING PLANT

LOCATION LOCATION Dentonic Plant is situated in the heart of the Industrial area of the country. The clean

and natural environment also highlights the core values of environmental friendly

approach that the company adopts and encourages others to live up with.

ADDRESS The factory is located at F- 60, Sindh Industrial Trading Estate Ltd. off

Hub River Road, which is commonly known as S.I.T.E.

AIMS AND OBJECTIVES AIMS AND OBJECTIVES

We aim to increase our declining Market share through the introduction of new

Dentonic Fluoride. With better composition in the ingredients the new Dentonic

Fluoride contains clinically proven anti bacterial agent TRICLOSAN for healthier

gums and teeth with 2% extra MFP fluoride which also helps in treating sensitive

gums. We aim to cater the market of age 40 and above who are vigilant in their

choice of toothpaste because of sensitive gums and teeth.

We will achieve our objective by providing the marketplace with high quality Oral

Dental Care which caters to all their requirements including cleanliness, freshness

and preventing against their dental problems.

Customer satisfaction is and will be our top priority. To achieve customer

satisfaction, we anticipate with the rapidly changing market trends, monitoring the

customer wants through regular retail audit, maintaining quality of the products and

empowering our employees.

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Ritovischo machineTo check the particles size and binding force of toothpaste. 1000 millions pdm.

To check the shelf life of the product called as Oven.

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We have positioned ourselves in question mark but it is very near to dog.

SEGMENTATION, TARGETING & POSITIONINGSEGMENTATION, TARGETING & POSITIONING

Segmentation

On the basis of Segmentation Variables:

Demographic

Male and female both 40+

Target Marketing

Target Market

Dentonic’s target market is on the basis of Niche marketing, because we are

targeting one large share of one segment

Target Marketing Strategy.

Target marketing strategy that Dentontic is using to re-launch is 40+

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Positioning for Competitive Advantage

Competitive advantages

- Distinctive: toothpaste is made especially for the consumers of 40 and above.

- Superior: on the basis of quality as it is approved by PDA .it is medicated BUT

steroid free (unlike Medicam toothpaste and Tochme toothpaste)

- Affordable: Price per pack is very reasonable and according to our survey no

price objection was determined.

Positioning statement

Looking graceful everyday

-Dentonic Toothpaste

40+

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PROCUCT LIFE CYCLEPROCUCT LIFE CYCLE

Dentonic fluoride toothpaste is on introduction stage as it is being re-launched with

improved formula and targeting different set of consumers.

Through research, test marketing and heavy promotions, we are trying to rebuild the

image of the product by overcoming the weaknesses and problems faced by the

consumers. Using price penetration strategy to capture more market share in lesser

time.

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Sales & Profit Life CyclesSales & Profit Life CyclesSales & Profit Life CyclesSales & Profit Life Cycles

IntroductionIntroduction GrowthGrowth MaturityMaturity DeclineDecline

TimeTimeSales and Profits

6

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MARKETING MIX:

PRODUCTPRODUCT

Dentonic Tooth PowderDentonic Tooth Powder

Dentonic is one of the largest manufactures of the Oral Care Brands.

The Dentonic range of Oral care products is available throughout the

country.

Dentonic toothpowder is the pioneer in dental care products. Dentonic

was fairly famous among the all the classes and its presence was a

must in every household. Dentonic toothpowder due to its loyal

consumer remained a Market leader for more then 25 years .The

satisfactory feedback helped Dentonic to capture the market share as

well as it continued to grow successfully. Dentonic was able to

substitute medicines formerly used for sensitive gums and teeth.

Dentonic Toothpaste: Dentonic Toothpaste:

After the success of Dentonic Tooth powder among the masses Ala

Chemicals launched a better version in form of Dentonic Toothpaste.

Dentonic Toothpaste with dual action whitens your teeth and protects

from bacteria and other tooth decay. The MFP fluoride helps strengthen

teeth and effectively protects against cavities. It contains clinically

proven anti bacterial agent Triclosan for healthier gums and teeth.

Dentonic toothpaste contains gentle cleaning agents. Its Mint Flavor

gives consumers a fresh breath and a confident smile. The unique flavor

of the toothpaste makes the consumer feel good while using the

product.

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Dentonic Toothpaste 40+ Dentonic Toothpaste 40+

Since 1963 Dentonic Tooth powder of ala chemicals is into business

and proved its self a market leader for about 25 years and still is widely

acceptable all over Pakistan.

To cope up with the technological advancement in the toothpaste

industry Ala chemicals launched toothpaste 2 years back.

Unfortunately, it couldn’t prove itself to be a success unlike tooth

powder due to some misconception and false perception about the

image of dentonic.

To over come the weaknesses and to control the bad word of mouth

we come up with an improved formula considering our target market

demands, with the name Dentonic 40+ which is also PDA affiliated.

Due to the age factor there are numerous mouth diseases a human

body experiences and it should be accepted as a natural phenomena.

The deficiency of fluoride weakens the teeth to fight against bacteria for

that matter we have launched a toothpaste with extra Fluoride .2%

and .5% (antibacterial) extra Triclosin.

To overcome weaknesses and control the bad word of mouth we are

using heavy promotional activities to change the consumer perception

about Dentonic.

Advantages of Using Dentonic Toothpaste 40+ Advantages of Using Dentonic Toothpaste 40+

With age changing every year, once you reach the age of 40, your teeth

requirements change for care, your teeth tend to become more sensitive, the gaps

between them widen and there are more chances for cavities. Understanding these

requirements Dentonic has re-launched toothpaste called DENTONIC

TOOTHPASTE 40+ to fulfill four teeth requirements perfectly. Dentionic toothpaste

40+ is being introduced in a minty flavor for you. RE-LAUNCH – – DDENTONIC ENTONIC TTOOTHPASTEOOTHPASTE 8

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Ingredients of Dentonic Toothpaste 40+ (1500 kg)

Aqua 20.8

Calcium Glycerophosphate 1.95

Glycerine 30.00

Sodium Saccharin 3.9

TriSodium Phosphate 4.5

Formailn 0.4

Sodium Monofluorophosphate 11.25

Sodium Methyl Cocoyl Taurate 11.25

Iodine 3.00

Triclosan 15.75

TCP 4.5

Dentonic Toothpaste Line Extension

Dentonic is also launching its toothpaste called;

Dentonic toothpaste 40+ (Spearmint flavor-sugar free)

Dentonic toothpaste 40+ (Cinnamon flavor- sugar free)

Dentonic toothpaste 40+ (Ice-Mint flavor- sugar free)

We strongly advice our consumers to switch to the above mentioned brand of our

toothpaste as they are only excellent substitutes of Dentonic toothpaste 40+ (Mint

Flavor).

PRICEPRICE

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Prices of Dentonic Toothpaste 40+:Prices of Dentonic Toothpaste 40+:

According to our survey consumers are ready to pay 35 Rs for 75 gms Pack. As it is

formulated considering aging diseases of mouth it has 0.5 more Triclosan and .1 %

Fluoride and hence we are not adding any artificial and dangerous chemical for

temporarily soothing like steroids.

Price is

75gms = Rs. 45

50gms = Rs. 30

PACKAGINGPACKAGING

Dentonic Toothpaste is basically packed in Poly Vinyl Carbonate (PVC) -the

common name of which is plastic, boxboard, which has a thin

Laminated printing on it and toothpaste’s tube is made up of flexible plastic

packaging and therefore makes it a secondary packaging.

Packet size is 75 gms.

DISTRIBUTIONDISTRIBUTION

The toothpaste is available at every retail and general store in Classes B and C.

There are 6 mobile vans, which are responsible for the distribution of the product to

the retail outlets. Total sales force comprises of 12 sales representatives and 4 Area

Sales Officers for Karachi Region. For monitoring purpose we also have one Sales

Manager.

Distribution is done in boxes, 6, 8, 12 dozens packs per box. But we would only use

12 dozen packs per box.

Distribution networkDistribution network

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ALA CHEMICALS

Own distributionRETAILERSCONSUMERS

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Retail Outlets:

The product will be made available in almost 129 retail outlets in different locations of Karachi where already dentonic is being distributed.

SWOT ANALYSISSWOT ANALYSIS

Strengths:

Dentonic is using NO steroid in their toothpaste as compared with Medicam

which is using Cortico steroid. And basically using any kind of steroid is illegal in

toothpaste.

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Weaknesses:

No correspondence with dentists.

Bad word of mouth from desists & consumers.

Weak promotional strategies

Opportunities:

There are no local toothpaste brands afflicted with PDA currently, except for

Dentonic Fluoride toothpaste, where as International brands such as Colgate &

MacLean’s are foreign affiliated as well as with PDA.

Dentonic toothpaste can target the Classes B+ more effective once they get

affiliated with either BDA or ADA.

Product line-extension plans coming up to improve Dentoinic’s brand name &

increase the over all company’s market share, as they plan to enter in every field

of Oral Care products. Example: Mouth wash (spray), Fresh Breather &

Toothpaste for KIDS.

Threats:

Wide variety of International Substitutes can destroy Dentonic toothpaste’s brand

image due to non-affiliation from BDA (British Dental Association), or ADA

(American Dental Association).

It is very difficult to change over all perception of people who are destroying the

image of Dentonic thus it would be one big hurdle we have to face in re-launching

the product.

Fake Dentonic toothpowder spread out in different locations of Pakistan in many

retail outlets has been a major threat to Dentonic’s brand image from a long time.

Excise & Taxation department demands for under table commission.

COMPETITOR REVIEW

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We have one close local competitor who is Medicam and it is not PDA affiliated.

Other major competitors are MacLean’s 40+, Forhans and Sensodine. Dentists are

totally against of using Medicam because it is proved by Dental association that they

are using steroids for temporary pain relief. Hence, Medicam lost its image due to

human cries against it.

COMPETITOR PRICES

1. MACLEANS TOOTHPASTE

PRICE (in Rs.) Net Weight (in grams)

25 40

36 70

49 110

79 200

2. FORHANS TOOTHPASTE

PRICE (in Rs.) Net Weight (in grams)

19 40

29 70

45 120

54 160

3. MEDICAM TOOTHPASTE

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PRICE (in Rs.) Net Weight (in grams)

32 150

DENTONIC TOOTH PASTE - DENTONIC TOOTH PASTE - A GENERAL PERCEPTIONA GENERAL PERCEPTION

With no provision of advancement for a longer period of time Dentonic powder lost

it’s customers to other available brands. The shifting was caused because of no

improvement in the formula and no scientific recommendations were given from

Dental Association.

The general perception about Dentonic Powder in the minds of people was not

favorable for Dentonic Fluoride toothpaste and therefore people are reluctant in

trying the new Dentonic Toothpaste.

It is very difficult to change their perceptions and this is one big hurdle we have to

face in re-launching the product. The General perception can be overcome by

improving the quality of the product and also by affiliating it with PDA to ensure

proven quality.

RESEARCH PROCESSRESEARCH PROCESS

1) Defining the problem, the decision alternatives and the research

objectives:

We have conducted a research to find out the reasons of its non acceptance and

dissatisfaction among consumers and problems faced by them.

2) Research Plan:

Research is exploratory as we had to find the problems and reasons of its less

success though it has a large potential market.

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3) Data Sources:

We have gathered information from secondary and primary data both.

Secondary source of our data is Internet (www.dentonic.com.pk)

Whereas Primary research sources are:

Surveys

Personal Interviews

4) Research Instruments:

Questionnaires contained:

Open ended questions

Close ended questions.

5) Sampling Plan:

Sampling is done on the basis of convenience sampling.

Sample for a survey was 40 respondents of age 40 and above.

Sample for personal interviewing was, on the basis of arranged interviews that

include:

a) a) Dentonic employees: Mr. S.A. Alavi (Proprietor), Mr. Saheer Alavi (Director), Mr.

Abdul Haq (Chief Chemist), Mr. Khalid Jhangir (Sales Manager), Mr. Ifran Ahmed

Siddique (Marketing Manager) & Lab Assistant.

b) Dentists: Dr. Shahjahan Katpar (Asst. Prof. / Maxillofacial &Dental Surgeons at

Hamdard College of Medicine & Dentistry, Hamdard University-Karachi), Dr. Shiraz

Burki (Dr. Burki Dental Clinic), Dr. Anthony (Dr. Anthony’s Clinic)

6) Information gathered / findings of the research:

Dentonic:

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Due to fake Dentonic spread out in different locations in Pakistan the reputable name

of Dentonic tooth powder’s image was severely damaged, and market declined.

Dentists & Respondents:

Because of no provision in advancement for a longer period of time Dentonic Powder

lost it’s customers to other available brands. The shifting was caused because of no

improvement in the formula and no scientific recommendations were given from

Dental Association.

The general perception about Dentonic Powder in the minds of people was not

favorable for Dentonic Fluoride toothpaste and therefore people are reluctant in

trying the new Dentonic Toothpaste.

SUGGESTIONS FROM RESPONDENTS:SUGGESTIONS FROM RESPONDENTS:

It is very difficult to change the respondents’ perceptions and this is one big hurdle

we have to face in re-launching the product. The respondents’ suggestions to

overcome the current perception are as follows:

1) Improving the quality of the product and also by affiliating it with PDA to ensure

proven quality (tooth powder & tooth paste)

2) Improved formula by adding more fluoride to it (tooth powder & tooth paste)

3) Making its particles finer (tooth powder)

4)70% people were suspicious and say it’s not trustworthy. So this company needs

some BDA or PDA certification.

ADVERTISING OBJECTIVE:ADVERTISING OBJECTIVE:We are using Reminder and Informational advertising.

Reminder advertising to remind all the loyal & switched consumers of Dentonic

Toothpowder about the existing Dentonic Toothpaste in the market. And Informative

advertising to aware and educate other consumers about Dentonic Toothpaste 40+

(Extra Fluoride Formula’s) existence in the market. But both advertising objectives

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convey one basic message of the revived Dentonic with promising customer

satisfaction.

ADVERTISING BUDGETSADVERTISING BUDGETSMedia

1) Television

2) Magazines & News paper

3) Hoardings

1. TV Media Vehicles

The channels we chose are GEO & Star Plus.

Channel: GEO

Duration: 3 Months

Rates per Minute:

(Between 8 pm and 9 pm)

4pots x 3 months = 12pots Prime Time on Sundays

I spot per week -4 spots a month 30000 for 30 sec add

Rate Rs. = 30000*4 = 120000/month

Channel: Star Plus

Duration: 3 Months

Rates per Minute:

8 Spots per day = Rs. 12,000/-month (10 pm and 11 pm)

Rate Rs. 12000*3= Rs 36,000/-for three months

Total TVC expense = Rs. 132000

(Inclusive of f Rs. 100000for making cost)

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2. Print Ad Media Vehicle:

The print ad media we chose for Magazine (Akhbaar-e-Jahan & Jung Sunday

Magazine) & for News Paper (Jung, Ummat & Awwam).

Designing Cost= Rs 10,000 for two different sizes that is half page and full page

magazine ad.

Magazine: Akhbaar-e-Jehan (Weekly) (Alternate Weeks)

Duration: 3 months

1st month 2nd month 3rd month

1time 1time 1time

Rate = Rs. 40000 per week

Half page ad

Details of Akhbaar-e-Jehan

Page Size = 40 cm x 20 cm; Column width = 4.25 cm; Column length = 37 cm;

No. of columns = 6; no. of pages (72 approx);

Paper used news print or offset

Outside cover = white offset

Circulation = It is the largest circulated Urdu weekly in Pakistan

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Magazine: Jang Sunday Magazine

Duration = 3 months

Karachi:

Rate per issue = Rs. 20000/-; size = Half page, color.

Twice a month alternate Sundays.

Technical Details of Jang Sunday Magazine

Add will be on the 3rd page.

Only on Sundays

20000*2 =40000/month

40000*3= 120000

40000/month

Newspaper: Awaam

Duration = 3 months

Rate per day 4 column, 30 cm = Rs. 3,925/-

Add will be on the 3rd page

On Monday and Friday

4 Weeks in a month x 2 days per week = 8 times x 3 months = 24 x 3,925 = Rs.

94,000/-

Per month 31300.

Total Print Ad Expense = Rs.83130

3. Hoarding

We placed Dentonic toothpaste hoardings in the following areas of Pakistan, which

were basically according to its target market, i.e., of classes B and C. These places

along with 3 months (quarterly) rates were:

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Every hoarding is 10 X 20; Rate = Rs. 28,500/-

Designing and Printing Cost= Rs .65 per sq ft (130*65= Rs. 8,450)

Total Expense for 3 months = Rs. 85500(28500*3)

85500* 3hoardings = Rs. 598500

Total hoarding expense =256500=8450= 264950/3 months

88316=per month hoarding exp

KARACHI (LOCATIONS FOR HORDINGS)

Shara-e-Fasial (Hoarding with skin and light)

Garden (Amma Tower)

Gulshan (Nipa Chowrangi)

Total Advertising expense

Print ads 83130

Tvc 132000

Making tvc 25000

Total ad exp / months

Total advertising expense per month = Rs. 240130

MANUFACTURING COST:

Rs. 80 per kg is the cost of Raw material that is inclusive of 30 Rs per Kg Triclosin.

The total pieces of 75 gm manufactured in 200 kg paste will be 26,000/-

The total paste manufactured; 200*6= 12, 00. One batch is equals to 200 kg and

total production in a day is 6 batches.

200kg *6=1200kg

1200*1000gms=1200000

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200,000 gm/ 75 gm = Rs. 16000 pieces is produced / month.(1piece=75gms)

------1200kg *70= 84000(cost of paste) rs

Cost of goods sold

16000*4=64000

16000*2=40000

Printing and manufacturing cost =104000 Rs

Per piece=6.5

Total tooth paste manufacturing cost 16000 pieces

Making toothpaste 84000

Printing and tubing 104000

Total manufacturing cost 188000

Per piece 11.5

8000 pieces 94000

Total pieces manufactured in a month 28000 =282000s Distributors 12 % 34000 315840 Retailers discount 20% 63168 Cost of good sold for 240000 pieces 379008 Cost of one piece =16.00

TOTAL EXPENSE

Utility Expense

Electricity Rs. 50,0000- Telephone Rs. 10000 Gas Rs. 5000/-

Total 65000

Salary Expense

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5sales force

7 sales rep 5000 *5 250002 area officers 2*10000 20000Sales manager 70001marketing manager 8000Chemist 20000Allowances 20000Helpers 3000 *2 6000 Total salary expense = 106000

Utility exp 70000

Other miscellaneous expense 20000Advertising expense 240130 Sales tax 126000 Total expenses 562130

Cost + expenses =total cost.Total cost = 844130

Quantity *price =revenue 24000*45=1080000

Revenue – manufacturing cost =gross profit.108000 -282000= 798000

Revenue – total cost = 235870 Net income

SALES PROMOTION PLANSSALES PROMOTION PLANSAbove the line Activities (Consumer Promotion Tools):

1. Sweepstakes

2. Contests

3. Free samples

4. Free trials

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Below the line Activities (Trade Promotion Tools):

1. Free Goods (12+1)

2. Sales Contest

3. Specialty Items (Wall Clocks, Pens etc)

OUR SUGGESTION

1) Arrange meetings/seminars with dentists to clarify their views on Dentonic products, with in their manufacturing location with a complete survey of the plant.

2) Scientific Recommendations from renowned dentists.

3) Follow the ADA approval as soon as possible.

4) Promotional strategies should use in different locations other than the one’s they are already targeting.

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