Rose Petal 156d6f
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- Words: 6,352
- Pages: 47
-:SUBJECT:-
PRODUCT: SUBMITTED TO:
PROF. HASHIM SULTAN
PRESENTED BY:
Group Insaa Waheed Hafsa Fatima Waqas Faiz Arslan Mehmood
L1R06MBBF2035. L1R06MBBF2010. L1R06MBBF2001. L1R06MBBF2036
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FINAL PROJECT REPORT ROSE PETAL
.
Group Leader Insaa Waheed
Student of MBA (Banking & Finance), PCBA
Principal Investigators Arslan Mehmood Hafsa Fatima Students of MBA (Banking & Finance), PCBA
Research Assistants Insaa Waheed Waqas Faiz Students of MBA (Banking & Finance), PCBA
Authors
Insaa Waheed Waqas Faiz Arslan Mehmood Hasfa Fatima Students of MBA (Banking & Finance), PCBA Preparation of this report is the result of detailed research and cooperation of Regional Sales Manager (D) Mr. Omar Rafique & Area Sales Manager (D) Mr. Muhammad Muddasar Anjum.
Punjab College of Business istration University of Central Punjab 31-Main Gulberg, Lahore, Pakistan . Phone: +92-42-5755314-7 Fax: +92-42-5710881
www.u.edu.pk
Final Report
•
December 2006
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DEDICATED TO OUR PARENTS Who have always been the source of inspiration for us and gave us the courage to do this impossible and difficult task. They are also trying to do everything for us until success kisses our feet. We love them because they are the one who care for us a lot.
INSAA WAHEED WAQAS FAIZ ARSLAN MEHMOOD HAFSA FATIMA Page 3 of 47
TABLE OF CONTENTS Dedication --------------------------------------------------------------- 3 Acknowledgement ------------------------------------------------- 7 Executive Summary ------------------------------------------------- 8
Ch1 1 HISTORY & OVERVIEW Packages Ltd --------------------------------------------------History and introduction --------------------------------Main manufacturing divisions -------------------------Mission statement of Packages Ltd----------------------D Vision ----------------------------------------------------Want for a hygienic product-------------------------------Launching of Rose Petal Tissues -------------------------Mission statement of Rose Petal Tissues ----------------
10 10 13 15 15 16 16 16
MARKETING ENVIRONMENT
2
The Company’s Microenvironment The Company’s Macroenvironment
3
-------------------- 17 -------------------- 22
SEGMENTING AND TARGETING Market Segmentation ---------------------------------- 24 Target Market ------------------------------------------- 26
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4
CONSUMER EVALUATION
27
Buyer’s black box ---------------------------------Characteristics affecting buying behavior--------------Buying decision Behavior ---------------------------------The Buyer Decision Process ------------------------------The Buyer’s response ----------------------------------------
27 27 31 32 33
5
DEVELOPING MARKETING MIX
34
PRODUCT STRATEGIES Levels of Product ------------------------------------------- 35 Product classification ----------------------------------------- 36 Individual product decision --------------------------------- 38 Product mix decision ------------------------------------------ 43 Product line decision ------------------------------------------ 44 Brand equity ---------------------------------------------------- 44 Building strong brands ---------------------------------------- 44 6
PRICING STRATEGIES
48
Factors considered while setting Rose Petal’s Price Internal Factors --------------------------------External Factors --------------------------------General pricing approaches ---------------------7
DISTRIBUTION STRATEGIES
48 48 49 50
51
Distribution channel ----------------------------------------Channels for Consumer Product -----------------------Level of Distribution Intensity -----------------------Vertical marketing Network ------------------------------Retailing --------------------------------------------------Major logistics functions ------------------------------------
51 52 52 53 53 54
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8
PROMOTION STRATEGIES
55
Developing Rose Petal Promotional Strategy ------ 55 Promotion mix strategy --------------------------------- 56 Major marketing decision ---------------------------------- 57
9
PRODUCT EVALUATION Marketing Management Orientation --------------------- 58 Marketing philosophy ---------------------------------------- 59
10
PRODUCT ANALYSIS Corporate portfolio analysis of Rose Petal -------------- 60 Product life cycle strategy for Rose Petal ---------------- 61
11
RECOMMENDATIONS AND SUGGESTIONS Regarding Product -------------------------------------------- 62 Regarding Placement----------------------------------------- 63 Regarding Promotion----------------------------------------- 63
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ACKNOWLEDGEMENT In this project we have made an effort to discuss the marketing plan for a popular brand in tissues, ROSE PETAL, of Packages Ltd. This project report is the result of our untiring efforts in the whole semester to explain maximum aspects of marketing regarding Rose Petal tissues. Packages is the leading and only packaging company in Pakistan providing packaging solutions for exceptional value to customers. We are very thankful to the REGIONAL SALES MANAGER
D, Mr. Omar Rafique and the AREA SALES MANAGER D, Mr. Muhammad Muddasar Anjum, who helped us in preparing this project by giving the maximum possible information about Rose Petal and Packages Ltd. Special thanks to our teacher Prof. Hashim Sultan, who gave us the maximum knowledge and understanding of our subject and enabled us to prepare a marketing project report.
THANKS Students of MBA-BF
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EXECUTIVE SUMMARY Packages Ltd was established in 1956 as a t venture between the Ali Group of Pakistan and Akerlund and Rausing of Sweden, Packages Limited provides packaging solutions for exceptional value to individuals and businesses. They are the only packaging facility in Pakistan offering a complete range of packaging solutions including offset printed cartons, shipping containers and flexible packaging materials to individuals and businesses worldwide. They have three manufacturing divisions i.e Paper and board division, Packaging division and consumer Products division Consumer Buying Behavior for Rose Petal is Variety Seeking because there is Low involvement of consumer and also the price of tissues is low. Rose Petal has direct as well as indirect competitors. In direct competitors it has no primary competitor because of its monopoly in the tissue market and its secondary competitors are Moveeta, Fay, Flying and Jasmine. The companies producing towels, napkins and handkerchiefs are the indirect competitors of Rose Petal tissues. Target market of Rose Petal is the middle class then they stretch towards others. It caters all the economy by providing different variants in its fleet of tissues at different prices.
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Packages Ltd was the first company in Pakistan who took the initiative step in tissue market. The core Product is the catering of unhygienic issues by providing a disposable product. Packages Ltd introduced a new product Rose Petal tissues in its Consumer Products Division (D) which was manufactured solely for the benefits of consumer. Rose Petal is following both the line filling and line stretching product line decisions. Under Rose Petal, Packages Ltd is doing line extension and brand extension. Packages Ltd is also doing multi-branding by offering Tulip tissues in its D. Rose Petal tissues is a special designed product by Packages Ltd which is very useful in daily life. The prices of Rose Petal have been set after a through study of market. Packages Ltd had the option that they could reduce the price of 1st version of Rose Petal tissues, but once you lower the prices then it is almost impossible to raise them again. For this purpose Packages Ltd provided various ranges under Rose Petal brand name with different lower and higher prices, each targeting a different class and market. Packages Ltd has intense distribution setup. They have approximately more than 300 distributors who distributes their tissues all over Pakistan. They are using the Wholesalers channel. Promotional campaigns of Rose Petal tissues are very strong since its launch in 1982. ment on Television, Billboards, on stops and buses are very impressive and attractive. Rose Petal promotional campaign and conducting of various health seminars is designed according to the Target customers. For Rose Petal tissues, Packages Ltd is following PULL Strategy.
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PACKAGES LIMITED HISTORY, INTRODUCTION AND OVERVIEW Rapid growth of industrial economy bases on different factors and packaging is one of them. Packages Limited was born out of a dream to set up in Pakistan, industries of excellence based on local raw material and talent. Packages Limited is a leading packaging manufacturing company of Pakistan. It is the sole largest industry in Pakistan serving about the 35% needs of the country. Syed Baber Ali Shah, who was the first managing director of Packages Limited, went to Sweden in 1954 to negotiate the contract with Akerland & Rausing of Sweden. Akerland & Rausing had been the leading paper converters in Europe. In Pakistan, there was no previous experience of a packaging industry. Therefore, Pakistanis needed technical collaboration with their Swedish partners. In the beginning, the first problem was the selection of site. Finally, Lahore was selected due to the following reasons: • Easy availability of workers. • Easy availability of raw material. • Easy transportation all over the country. So, Ali family provided the capital, land, labor, management and local experts while their partners provided technology, machinery, experts and also training to Pakistanis. Syed Baber Ali was the first Managing Director.
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Mr. Syed Mratib Ali Shah laid the foundation stone on The 26th of March 1956. The construction was started from the Solid Board Department and by the end of October, 1956 the main shed of the factory was completed. At the same time the Swedish engineers with the help of Pakistani staff installed machinery. Packages Limited started operating in May 1957 with a paid up capital of Rs. 4.94 million as a t venture between the Ali group and Akerlund & Rausing of Sweden. In the beginning 22 Swedish experts came to Pakistan to run the factory and to train the Pakistani staff. In 1958 production of packaging cartons for different industries was started. Usually, the packaging cartons are for Soaps, Confectionery, Biscuits, Cigarettes, Tea, Pharmaceutical products and many other products. Over the years, the Company continued to enhance its facilities to meet the growing demand of packaging products. Additional capital was raised from sponsors, International Finance Corporation and from the public in making the total paid up capital to Rs. 31 million in 1965. Since 1982, Packages Limited has a t venture in Tetra Pak Pakistan Limited with Tetra Pak International to manufacture paper for liquid food packaging and to sell Tetra Pak packaging equipment.
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The main industries covered by Packages Limited are: o Soap Industry o Shoe Industry o Tissue Industry o Tea Industry o Tobacco Industry o Food Industry o Sweets & Confectioneries Since 1957, Packages has been producing inks for its own consumption. In 1993, the Company agreed to form a t venture with equity participation from Coates Lorilleux, world’s second largest printing ink manufacturer to produce inks for Packages Limited and the general market. Also in 1993, a t venture agreement was signed with “Mitsubishi Corporation of Japan” for the manufacture of polypropylene films at the industrial estate in Hattar, NWFP. The name of this project was Tri-Pack Films Limited, In 1995, an agreement was signed with UHDE of to setup a plant for the manufacture of Hydrogen Peroxide (H2O2), an environmentally friendly bleaching chemical, with an annual capacity of 12500 tones, near Lahore, Punjab. In 1996, a t venture agreement was signed with Print care (Ceylon) Limited for the production of flexible packaging in Sri Lanka.
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Another important service department of the Packages Limited is its “Power Plant”. In 1967 they set up 6 MW power plants, but to ensure a continuous and dependable supply of power for its production lines.
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In the field of consumer products, Packages Limited has shown tremendous potential and commendable talent. One of the consumer products of the company are “Rose Petal” Tissues. The production of Rose Petal was the first introduction of tissue paper industry in Pakistan through which Packages has introduced so many brands of tissues.
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MANUFACTURING DIVISIONS OF PACKAGES Packages Limited provides packaging solutions for exceptional value to individuals and businesses. They are the only packaging facility in Pakistan offering a complete range of packaging solutions including offset printed cartons, shipping containers and flexible packaging materials to individuals and businesses worldwide. The three manufacturing divisions of Packages Ltd are as follows:
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-:MANUFACTURING DIVISIONS:-
The Paper and Board Division manufactures paper and board from a mixture of wood, pulp and other raw materials, and treats effluent. The Packaging Division takes materials from the Paper and Board division and converts customer ideas into finished products. Under Packaging division they are engaged in carton business unit where they produce cartons for various businesses, they are also engaged in corruwal business unit and they have one flexible business unit where they do flexible packaging using polythin material.
The Consumer Products Division, which manufactures off-the-shelf branded consumer products.
The product mix width of Packages Ltd is five as it deals in 5 main business units.
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PRODUCT STRATEGY LEVELS OF PRODUCT Core Product TO SOLVE
Augmented Product
Actual Product
CORE PRODUCT
The core benefit of Rose Petal tissues is that it is solving hygienic and cleanliness issues and is not polluting the environment because of its disposable nature.
ACTUAL PRODUCT
The actual product is the Rose Petal tissues. The ingredients of Rose Petal tissues are wood, pulp, wheat straw and perfumes. It is a fine quality tissue made up of the combination of various colors. They are in multi colors and are of different sizes such as small pocket tissues, large & medium toilet rolls, family and party tissues.
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AUGMENTED PRODUCT
Rose Petal has monopoly in the tissue market as it is capturing 80-85% of the market share of tissues. It is considered to be a fast moving product and has a huge range of tissues. It is currently not offering any augmented features in its product, but its authority is planning to cater these issues in future.
PRODUCT CLASSIFICATION CONSUMER PRODUCT
Rose petal tissue is a consumer product and is based on the quality oriented strategy where the company is heading towards improvement and awareness of the importance of using tissue papers. It is promoting its product with the help of wide range of distributors and many ment campaigns. Under consumer product it lies in the category of convenience product.
CONVENIENCE PRODUCT
Rose Petal is a convenience good because of the following marketing considerations:
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CONSUMER BUYING BEHAVIOUR
PRICE
PLACEMENT (DISTRIBUTION)
PROMOTION
Rose Petal is a fast moving good and a disposable product. People buy it frequently with low involvement in the buying process because the consumer buying behavior for these tissues is variety seeking. The target market of the Rose Petal tissues is middle class and then they stretch up and down. Their price range if from Rs.5- Rs.500 so that it could be feasible for both consumers and business customers in their buying.
Company is using selling concept by distributing its product in the market through its approximately 300 distributors.
Rose Petal is promoting its product in a very effective manner. Any campaign it launches through any medium is very strong and effective. Nowadays it has chosen a new medium i.e. cable TV as it is cheaper and more effective.
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INDIVIDUAL PRODUCT DECISION The following model represents the individual product decision:
Product
attribute
Branding
Packaging
Labeling
Product Services
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PRODUCT ATTRIBUTES The attributes of Rose Petal tissues are
PRODUCT QUALITY
TQM APPROACH
The aim of Packages Ltd is to follow the product concept which shows that the company is very much particular and do not compromise on the quality of its tissues. It has a separate quality control department which tests the tissues in of their quality on the spot before dispatchment. So any loop holes in tissue quality is checked at the same time. In of quality control the Company is relying on the following approach: Rose Petal has been following the TQM approach since their preliminary years to capture the market in of their quality. Now they are certified by ISO 9000 for producing quality tissues. As Rose Petal is well known in the market as a tissue brand so now its authority is relying on R on Q (Return on Quality) approach as it is viewing quality as an investment and holding quality efforts able for bottom line results. Rose Petal relies on the two dimensions of quality.
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QUALITY LEVELS
QUALITY CONSISTENCY
PRODUCT RANGE & FEATURES
ROSE PETAL FACIAL TISSUES
FEATURES ROSE PETAL TISSUE ROLLS
FEATURES
Ability of the product to perform its functions is performance quality. Rose Petal focuses on quality levels as it s its tissue position in the market e.g. Rose Petal facial tissues are soft and gentle as their function is to be used for facial concerns and party tissues are not that smooth as their function is to be used in parties for cleaning purposes. Rose Petal relies on quality consistency as this product is free from defects and is consistent in delivering a targeted level of performance. Following is the Rose Petal product range and their features: a) b) c) d) e) f) g) h)
Rose Petal Multicolor facial tissues. Rose Petal Perfumed facial tissues. Rose Petal Luxury facial tissues. Rose Petal Supreme facial tissues. Rose Petal Pop up facial tissues. Rose Petal Oro facial tissues. Rose Petal Rumaal pocket pack. Rose Petal Wet tissues.
They are soft and gentle and are fragrant. a) b) c) d)
Rose Petal Toilet rolls small. Rose Petal Twin toilet rolls. Rose Petal Toilet rolls bigger. Rose Petal Paper towel.
They are used in kitchens and toilets for cleansing purposes. Page 23 of 47
ROSE PETAL PARTY PRODUCTS FEATURES ROSE PETAL OTHER PRODUCTS
a) Party pack 500s. b) Jumbo paper towel. c) Table napkins. Party pack tissues are available in large quantity as they are used in parties. a) b) c) d) e)
N Fold Tissue Dispenser. Rose Petal Dental Serviette. Rose Petal Coffee Napkin. Rose Petal Coaster. Rose Petal Dental Napkin.
FEATURES
Rose Petal provides different features in products other than tissues as its coffee napkins are useful while drinking coffee and its coaters are useful to put under the tea cup on table and its dental napkin and serviette are useful in hospitals.
STYLE AND DESIGN
As far as product design & style is concerned there are 3 to 4 different styles and designs of Rose Petal tissues. They change their product design according to the occasions e.g. in basant they launched their party size tissues with colorful kites embossed on them.
BRANDING
Recognition of product. These days almost every product is known by its Brand Name. Brand name helps consumer identify the product. Brand name also tells the buyer something about product quality. In Rose Petal the word ROSE reflects the elegant features of the product.
Color Rose Petal is available in all colors of the season. Page 24 of 47
PACKAGING
Packaging is one of the important processes it covers all the activities of deg and styling the product.. In this process Managers have to decide that how the product will be transferred to the consumers. Rose Petal relies on the following for its packaging:
PRIMARY PACK
Tissues are placed in primary packs i.e. the tissue boxes from which the consumer directly pulls and consume the tissue. The logo and label of the company and Rose Petal is embossed on the tissue box.
CONTAINER PACK
Tissue boxes are packed in containers like cartons for their mobility. The logo and label of Rose Petal is also printed on the cartons.
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LABELING
The logo of Rose Petal and of its company Packages Ltd is embossed on tissue box. They change the color of their Rose Petal logo according to the occasions like on Independence Day they changed the color of Rose Petal logo into green and white. According to the policies for companies every product’s ingredients are to be printed at the back of the product but Rose Petal has not followed this policy because the Company’s authority feels that if they mention the tissue ingredients on the back of their tissue pack it will create a negative perception in the minds of the consumer about their product.
PRODUCT SERVICES
Currently they are not providing any product services for their consumer but they are planning to provide these services in future.
PRODUCT MIX DECISION MIX WIDTH
Mix width means Number of products available under one Product Line. Packages Ltd deals in five main business units under its manufacturing divisions. i.e. Paper and board unit, corruwal unit, carton business unit, flexible business unit and consumer product unit.
MIX DEPTH
Mix depth means different versions of each product. Total versions of each product in the product line of Rose Petal are 36.
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PRODUCT LINE DECISION Rose Petal follows line extension with both product line decisions i.e. Line Filling & line Stretching. LINE STRETCHING
They follow line stretching by offering various ranges of tissues at different prices under the brand name of Rose Petal.
LINE FILLING
They follow line filling by providing different versions under the same type of tissues at the same price.
BRAND EQUITY The positive differential effect of brand name Rose Petal on consumers is its superb quality. As people think about Rose Petal, quality tissues come in their mind this is the reason why consumer are willing to pay more for Rose Petal tissues. So quality is the measure of brand equity of Rose Petal tissues.
BUILDING STRONG BRANDS Model Brand Positioning
Brand name selection
Brand Sponsorship
Brand Development
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Following are the marketing strategies through which we can build strong brands.
BRAND POSITIONING
Rose Petal has designed its positioning statement in emotional aspect. Its positioning statement is:
“ROSE PETAL NA HOTA TO KIA HOTA” This is an emotional positioning statement as it cares for the emotions of people in their busy life by catering their hygienic and cleanliness problems. This statement tells the consumer that if in the hour of need whether you were to clean anything or you had influenza you needed a product which could be disposed off after its one use unlike the handkerchief which you had to use the same again and again. So this statement tells that if Rose Petal was not there what you would have done.
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BRAND NAME SELECTION
They have chosen the brand name ROSE PETAL so they can tell about the function of their product. They were matching and comparing the elegance of their product with that of Rose as it is a very delicate and fragrant flower. The concept behind this brand name was that tissue box is like a rose and tissues are like the petals of that rose. They wanted to give you the feel that holding a tissue in your hand is like you are holding a delicate Rose Petal.
BRAND SPONSORSHIP
Packages Ltd has the following sponsorship option:
MANUFACTURER BRAND
The tissues manufactured in Packages Ltd come under manufacturers brand. Packages Ltd manufactures tissues, paper cups and plates etc under their own manufacturing brand Rose Petal. Rose Petal manufactures tissues, coasters, paper cups etc on orders for different companies, hospitals, airlines etc with the Packages embossed on the back of the tissue. They also manufacture tissues on private orders given by people on their various occasions e.g. on weddings or birthday parties etc.
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BRAND DEVELOPMENT Rose Petal has three choices when it comes to brand development
LINE EXTENSION
Rose Petal is extending its product line by adding new tissue range under the same brand name (Rose Petal) and same nature of product i.e. tissues like Perfumed, Luxury, Supreme, Popup, Oro, Rumaal etc.
BRAND EXTENSION
The authority of Rose Petal tissues is also doing brand extension as with the same brand name (Rose Petal) it is manufacturing paper cups, paper plates, napkins, fold dispenser, dental serviette, coffee napkins and coasters in different sizes.
MULTI BRAND
Packages Ltd also comes under multibrands as it is offering additional brand in their tissue category i.e. Tulip tissues which is not their main tissue brand but acts as a fighting and ing brand for Rose Petal tissues. Tulip tissues are also available in different ranges.
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PRICING STRATEGY In the current era companies are playing with the price. Price is the only factor in marketing mix which can generate revenue while the other three factors represent cost. So this is very necessary to make effective pricing strategies to compete in the market in long run. Rose Petal is a special designed product under the head of consumer products division of Packages Ltd. The prices of Rose Petal have been set after a through study of the market. Packages Ltd had the option that it could reduce the price of its regular pack so that everyone could purchase it but the company knows that once the prices are lowered then it is almost impossible to raise them again. For this purpose Packages Ltd provided various ranges of tissues under Rose Petal with different prices i.e. from Rs.5 to Rs.500 and every range has its own target market. Rose Petal’s mix depth is 36. They are relying on line stretching and line filling of their products in the perspective of prices.
FACTORS CONSIDERED WHILE SETTING ROSE PETAL’S PRICE
INTERNAL FACTORS MARKETING OBJECTIVES
According to the brand manager of Rose Petal the market share of Rose petal has reached its current maximum profit position. They are the pioneers and the market leader in the tissue market providing quality product. They can set Page 31 of 47
prices to keep the loyalty and of consumer and to avoid government interventions. They can change their profit percentage to kill the indirect competition with mega companies.
MARKETING MIX Price is one of the only marketing mix tools STRATEGY that the company uses to achieve its marketing objectives. Price decisions must be cocoordinated with the other 3 Ps. In TARGET COSTING first they start with the idea of setting the price then they get the actual cost and after that they ensure what price should be settled. TYPES OF COST
TOTAL COST= FIXED + COST
VARIABLE COST
EXTERNAL FACTORS THE MARKET TYPES
Packages Ltd is enjoying monopoly for last 24 years so this is another reason for charging higher prices as compared to secondary competitors.
GENERAL SALES TAX
If the government increases the general sales tax from 15 – 20 % then it highly affects the prices of Rose Petal tissues.
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GENERAL PRICING APPROACHES The company can set a price anywhere between a low to produce a profit and one that is too high to produce a demand. Product cost sets a floor to the price; consumer perceptions of the product’s value set the ceiling. In general pricing approaches the company is following the cost based pricing approach.
COST BASED PRICING APPROACH The company is following the cost based approach and one of the price settlement model for their a Pop Up tissue is as follows: ] VARIABLE COST = FIXED COST= UNIT COST= EXPECTED UNIT SALES= UNITS COST= SALES TAX= 15 % of cost UNIT COST = (VARIABLE + FIXED)/UNIT SALES UNIT COST = MARKUP PRICE= UNIT COST___________ =
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(1-DESIRED RETURN ON SALES) SELLING PRICE = UNIT COST + MARKUP PRICE + SALES TAX SELLING PRICE =
DISTRIBUTION STRATEGY The network made by the company, suppliers, distributors and ultimate consumers makes the distribution setup. The distribution of products of a company is important for its sale. In case of Rose Petal, the distribution is very important because of its aggressive demand in the market. This is the reason why Rose Petal is available in huge stores as well as small retail stores. DISTRIBUTION CHANNEL
Rose petal has a set of interdependent organizations involved in the process of making tissues available for use of the consumer. Rose petal has made the distribution channel so that the product can reach to almost all of the outlets. So as we have mention about the type of customer with whom the company is dealing so they are using both the following channels. Business marketing channel Consumer marketing channel
BUSINESS MARKETING CHANNEL
CONSUMER MARKETING
For the business Clients, Rose Petal is using direct marketing channel where the company is directly dealing with the client. Due to this they take direct order from them and design tissues according to the will of the client For the consumer marketing, the company is using indirect marketing channel where it has Page 34 of 47
CHANNEL
added intermediary parties like wholesaler,
retailer so that the product can reach all parts of the market efficiently.
CHANNELS FOR CONSUMER PRODUCTS WHOLESALER CHANNEL
Rose petal has a huge wholesale set up. They have approximately more than 300 wholesalers and is from big city to a small town in Pakistan. Rose Petal gives immense importance to this so that’s why their distribution channel is spread like roots of a tree.
RETAILERS CHANNEL
Mostly retailers buy the product from wholesalers and some retailers like (C.S.D, HKB) directly buy from company and then the consumer buys from them.
TERRITORY OFFICERS
Rose petal has territory officers which controls the distribution set ups effectively. Every region has its own territory officer.
LEVELS OF DISTRIBUTION INTENSITY INTENSIVE
Intensive distribution means distributing a product to as many retail outlets as possible. Rose Petal distribution is very intensive. As it is consumer convenience product so customers’ convenience come first and the company’s aim is
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to provide the good at the door step of the consumers.
VERTICAL MARKETING NETWORKS Vertical Marketing Network consists of suppliers, wholesalers and retailers acting as a unified network. Either one channel member owns the others, has contracts with them, or has so much power that they all cooperate. The vertical marketing network can be dominated by the suppliers, wholesalers or retailers. Rose petal has its wholesaler or retailers who are providing its product to its target market.
TYPES OF VERTICAL MARKETING SYSTEM ISTERED
The rose petal is coordinating with its wholesalers for the distribution of the product.
RETAILING Retailing involves all the activities in selling goods to the ultimate consumers. Major retailers of Rose Petal are convenience stores and super stores.
CONVENIENCE STORES Convenience stores are relatively small stores located near residential area. They are opened for long hours, seven days a week. Page 36 of 47
SUPER STORES Super stores are very large stores traditionally aimed at meeting consumer’s total needs for routine purchased food and non-food items and our product is a non-food item.
MAJOR LOGISTICS FUNCTIONS Folowing are the logistic functions which the company follows for its distribution :
• WARE HOUSING • INYENTORY MANAGEMENT • TRANSPORTATION
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PROMOTION ROSE PETAL PROMOTION STRATEGY Promotion is an ongoing process that requires much planning. A strategy is simply a careful plan. The effectiveness of strategy depends on more than how much money has been put into it. Effectiveness results from the thoroughness of planning and the consistency with which activities has been carried out.
IDENTIFYING The Rose Petal marketer had identified their THE TARGET target market as they incorporated. The target AUDIENCE market is middle class and then they stretch up and down so they design promotional campaigns keeping in view the target market
BUYERS READINESS STAGE
Buyer readiness stage of rose petal is conviction as now consumer believes that rose petal is the best brand in the market.
CHOOSING A MESSAGE
Rose petal is using functional promotion campaign as they are relying on functional positioning statement
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CHOOSING AMONG MAJOR MEDIA TYPES
They are using all the non personal communication mediums to reach the consumer and tell them that Rose Petal is the need of today and the life without Rose Petal can’t be imagined so the campaign of Rose Petal is following these medias:
SELECTING A MESSAGE SOURCE
Television. Magazine Newspapers. Radio
Rose petal is using the celebrity system of ment as they are focusing on Pakistani market so they are using Pakistani celebrities as opinion leaders in the commercials of their product.
PROMOTION MIX STRATEGY PULL STATEGY
For Rose Petal Packages LTD is following PULL Strategy. Packages LTD run heavy promotional campaigns and health seminars for Rose Petal to create awareness of the tissue usage among people. Once people get well aware of the importance of the product usage, they will demand the product from the retailers.
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MAJOR MARKETING DECISION Advertising decision is based on following decision.
OBJECTIVE SETTING BUDGET DECISION
MESSAGE EXECUTION MEDIA DECISION
Rose Petal advertising.
is
focusing
on
reminder
Rose petal is using most logical budget setting method as it first set its goals to be accomplished and then estimate it’s cost of performing these tasks. Rose Petal is executing its message through slice of life as it shows bride using Rose Petal in the TV ad. Rose Petal is using radio, Radio, magazine and newspaper.
TV
For this purpose concept of Pulsing was
DECIDING ON used. Pulsing means scheduling ads MEDIA TIMINGS unevenly over a given time period. The idea behind pulsing was to heavily for a short period of time to build awareness about the package. Rose Petal evaluate its advertising EVALUATE campaign by comparing its MENT
past
sale with past advertising expenditure
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MARKETING MANAGEMENT ORIENTATION Marketing management wants to design strategy that will build profitable with target consumer but the philosophy should guide the company how to produce the goods in which quantity and how to create interest of consumer in the product and giving value preposition to the consumer. There are five alternatives concepts under which organizations can design their marketing strategy.
The Production Concept. The Product Concept. The Selling Concept. The Marketing Concept. The Societal Marketing Concept. However Rose Petal is following the three concepts.
PRODUCT CONCEPT
Rose Petal is based on quality oriented strategy where the company is heading towards improvement and awareness of the importance of using tissue papers perusing the product concept.
SELLING CONCEPT
With the help of wide range of distributors and many ment campaigns, the management of Rose Petal focuses on selling concept
SOCIETAL MARKETING CONCEPT
Packages Ltd is also following the Societal Marketing concept as the authority of Rose Petal tissues has installed an environmental plant worth 10 millions for air purification and has run effective earth quake relief campaigns at the disaster of 8th October, 2005. The product (Rose Petal tissues) itself is designed for the human long term welfare i.e. good health. Page 41 of 47
MARKETING PHILOSOPHY Packages Ltd is pursuing on customer driven marketing strategy for its consumer product (Rose Petal tissues). They design their product and its strategies according to the needs and wants of their customers e.g. Rose petal tissues has launched another tissue (table napkins) in the market which was demanded by various food chains like PC, Avari, Pizza Hut, McDonalds etc.
CONSUMER WANT A lot of cleanliness and unhygienic issues were prevailing in the country where people were suffering from various viral diseases and due to its infection in the air the rate of sick people were alarming. Due to these problems the consumer wanted a product which could solve these problems and functions like the handkerchief and which could also be disposed off after its one use. Rose Petal tissues fulfill this want .
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CORPORATE PORTFOLIO ANALYSIS OF ROSE PETAL TISSUES POSTION OF PACKAGES LTD FOR ROSE PETAL IN BCG MATRIX: Packages Ltd lies among stars in the BCG matrix:
STARS Packages Ltd lies among stars as it holds dominant share of the tissue market and the growth rate of the company is also very high in the perspective of Rose Petal tissues.
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PRODUCT LIFE CYCLE STRATEGY OF ROSE PETAL TISSUES The product (ROSE PETAL) lies in the maturity stage of product life cycle strategy:
GROWTH The reason why Rose Petal comes under growth stage is that the product has achieved acceptance by most potential buyers and is enjoying monopoly in the tissue market for the last 2 decades and is still growing with an alarming rate introducing new variants in its fleet. Page 44 of 47
RECOMMENDATIONS AND SUGGESTIONS After the thorough analysis of the Company Packages Ltd regarding Rose Petal, we recommend them the following:
PRODUCT AUGMENTED FEATURES
QUALITY
Rose petal is not offering any augmented features like they are not giving any additional services to their customers for example Raabta facility. We recommend them to print either their e.mail or mailing address or web site or any U.A.N number at the back of the tissue box in future for any complaints and suggestions of people People are quite satisfied with the quality and branding of Rose Petal tissues. Rose Petal captures 80% of the market share. For acquiring the other 20% share, we recommend them to carry on TQM (Total Quality Management) approach. Through this approach the Company keeps on improving the product constantly and will also be able to attract its potential customers.
PACKAGING
Attractive packaging gives an edge to the Company over the competitors. So we recommend them to enhance their packaging which looks innovative and creative. Packaging is the only tool which captures the attention of the buyer and leads the product to success.
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PLACEMENT APPLYING PROPER MARKETING LOGISTICS
According to the marketing research conducted by us, only 56% of the people are satisfied with the availability of Rose Petal tissues at their nearest shop but rest are not especially in rural and remote areas. So Packages Limited should apply proper marketing logistics especially in the rural and remote areas: which means to plan, implement and control the physical distribution of Rose Petal tissues from point of origin to point of consumption (right product to right customer in right time at the right place).
SHELF ATTENTION (Availability)
To gain maximum attention of customers, the product should be placed on the front shelf of the nearest shopping outlets. Packages Limited should follow this technique. Flying and other competitors of Rose Petal tissues occupied 20% share in the market just because of their availability and shelf attention.
PROMOTION BRAND RECALLING
Packages Limited has been selling Rose Petal tissues for the last 24 years and brand recalling is the only way to retain actual customers as there is a threat that many new competitors can come in the tissue paper market such as China paper industry after WTO.
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Through this marketing research, it is clear that Rose Petal lacks in the outdoor ment OUTDOOR that’s why we recommend them to focus on MENT promotion campaigns through billboards, signboards and posters.
CABLE TV PROMOTION
Rose Petal is now promoting its product on cable TV because it is cheaper as compared to other mediums and at the same time it is capturing small areas for its promotion. We recommend the company to carry on with this medium and to broadcast Rose Petal on popular channels to capture maximum market as it is an effective way for promotion.
----------------------------------------------------------------------------------------------------------THANKS.
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PRODUCT: SUBMITTED TO:
PROF. HASHIM SULTAN
PRESENTED BY:
Group Insaa Waheed Hafsa Fatima Waqas Faiz Arslan Mehmood
L1R06MBBF2035. L1R06MBBF2010. L1R06MBBF2001. L1R06MBBF2036
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FINAL PROJECT REPORT ROSE PETAL
.
Group Leader Insaa Waheed
Student of MBA (Banking & Finance), PCBA
Principal Investigators Arslan Mehmood Hafsa Fatima Students of MBA (Banking & Finance), PCBA
Research Assistants Insaa Waheed Waqas Faiz Students of MBA (Banking & Finance), PCBA
Authors
Insaa Waheed Waqas Faiz Arslan Mehmood Hasfa Fatima Students of MBA (Banking & Finance), PCBA Preparation of this report is the result of detailed research and cooperation of Regional Sales Manager (D) Mr. Omar Rafique & Area Sales Manager (D) Mr. Muhammad Muddasar Anjum.
Punjab College of Business istration University of Central Punjab 31-Main Gulberg, Lahore, Pakistan . Phone: +92-42-5755314-7 Fax: +92-42-5710881
www.u.edu.pk
Final Report
•
December 2006
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DEDICATED TO OUR PARENTS Who have always been the source of inspiration for us and gave us the courage to do this impossible and difficult task. They are also trying to do everything for us until success kisses our feet. We love them because they are the one who care for us a lot.
INSAA WAHEED WAQAS FAIZ ARSLAN MEHMOOD HAFSA FATIMA Page 3 of 47
TABLE OF CONTENTS Dedication --------------------------------------------------------------- 3 Acknowledgement ------------------------------------------------- 7 Executive Summary ------------------------------------------------- 8
Ch1 1 HISTORY & OVERVIEW Packages Ltd --------------------------------------------------History and introduction --------------------------------Main manufacturing divisions -------------------------Mission statement of Packages Ltd----------------------D Vision ----------------------------------------------------Want for a hygienic product-------------------------------Launching of Rose Petal Tissues -------------------------Mission statement of Rose Petal Tissues ----------------
10 10 13 15 15 16 16 16
MARKETING ENVIRONMENT
2
The Company’s Microenvironment The Company’s Macroenvironment
3
-------------------- 17 -------------------- 22
SEGMENTING AND TARGETING Market Segmentation ---------------------------------- 24 Target Market ------------------------------------------- 26
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4
CONSUMER EVALUATION
27
Buyer’s black box ---------------------------------Characteristics affecting buying behavior--------------Buying decision Behavior ---------------------------------The Buyer Decision Process ------------------------------The Buyer’s response ----------------------------------------
27 27 31 32 33
5
DEVELOPING MARKETING MIX
34
PRODUCT STRATEGIES Levels of Product ------------------------------------------- 35 Product classification ----------------------------------------- 36 Individual product decision --------------------------------- 38 Product mix decision ------------------------------------------ 43 Product line decision ------------------------------------------ 44 Brand equity ---------------------------------------------------- 44 Building strong brands ---------------------------------------- 44 6
PRICING STRATEGIES
48
Factors considered while setting Rose Petal’s Price Internal Factors --------------------------------External Factors --------------------------------General pricing approaches ---------------------7
DISTRIBUTION STRATEGIES
48 48 49 50
51
Distribution channel ----------------------------------------Channels for Consumer Product -----------------------Level of Distribution Intensity -----------------------Vertical marketing Network ------------------------------Retailing --------------------------------------------------Major logistics functions ------------------------------------
51 52 52 53 53 54
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8
PROMOTION STRATEGIES
55
Developing Rose Petal Promotional Strategy ------ 55 Promotion mix strategy --------------------------------- 56 Major marketing decision ---------------------------------- 57
9
PRODUCT EVALUATION Marketing Management Orientation --------------------- 58 Marketing philosophy ---------------------------------------- 59
10
PRODUCT ANALYSIS Corporate portfolio analysis of Rose Petal -------------- 60 Product life cycle strategy for Rose Petal ---------------- 61
11
RECOMMENDATIONS AND SUGGESTIONS Regarding Product -------------------------------------------- 62 Regarding Placement----------------------------------------- 63 Regarding Promotion----------------------------------------- 63
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ACKNOWLEDGEMENT In this project we have made an effort to discuss the marketing plan for a popular brand in tissues, ROSE PETAL, of Packages Ltd. This project report is the result of our untiring efforts in the whole semester to explain maximum aspects of marketing regarding Rose Petal tissues. Packages is the leading and only packaging company in Pakistan providing packaging solutions for exceptional value to customers. We are very thankful to the REGIONAL SALES MANAGER
D, Mr. Omar Rafique and the AREA SALES MANAGER D, Mr. Muhammad Muddasar Anjum, who helped us in preparing this project by giving the maximum possible information about Rose Petal and Packages Ltd. Special thanks to our teacher Prof. Hashim Sultan, who gave us the maximum knowledge and understanding of our subject and enabled us to prepare a marketing project report.
THANKS Students of MBA-BF
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EXECUTIVE SUMMARY Packages Ltd was established in 1956 as a t venture between the Ali Group of Pakistan and Akerlund and Rausing of Sweden, Packages Limited provides packaging solutions for exceptional value to individuals and businesses. They are the only packaging facility in Pakistan offering a complete range of packaging solutions including offset printed cartons, shipping containers and flexible packaging materials to individuals and businesses worldwide. They have three manufacturing divisions i.e Paper and board division, Packaging division and consumer Products division Consumer Buying Behavior for Rose Petal is Variety Seeking because there is Low involvement of consumer and also the price of tissues is low. Rose Petal has direct as well as indirect competitors. In direct competitors it has no primary competitor because of its monopoly in the tissue market and its secondary competitors are Moveeta, Fay, Flying and Jasmine. The companies producing towels, napkins and handkerchiefs are the indirect competitors of Rose Petal tissues. Target market of Rose Petal is the middle class then they stretch towards others. It caters all the economy by providing different variants in its fleet of tissues at different prices.
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Packages Ltd was the first company in Pakistan who took the initiative step in tissue market. The core Product is the catering of unhygienic issues by providing a disposable product. Packages Ltd introduced a new product Rose Petal tissues in its Consumer Products Division (D) which was manufactured solely for the benefits of consumer. Rose Petal is following both the line filling and line stretching product line decisions. Under Rose Petal, Packages Ltd is doing line extension and brand extension. Packages Ltd is also doing multi-branding by offering Tulip tissues in its D. Rose Petal tissues is a special designed product by Packages Ltd which is very useful in daily life. The prices of Rose Petal have been set after a through study of market. Packages Ltd had the option that they could reduce the price of 1st version of Rose Petal tissues, but once you lower the prices then it is almost impossible to raise them again. For this purpose Packages Ltd provided various ranges under Rose Petal brand name with different lower and higher prices, each targeting a different class and market. Packages Ltd has intense distribution setup. They have approximately more than 300 distributors who distributes their tissues all over Pakistan. They are using the Wholesalers channel. Promotional campaigns of Rose Petal tissues are very strong since its launch in 1982. ment on Television, Billboards, on stops and buses are very impressive and attractive. Rose Petal promotional campaign and conducting of various health seminars is designed according to the Target customers. For Rose Petal tissues, Packages Ltd is following PULL Strategy.
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PACKAGES LIMITED HISTORY, INTRODUCTION AND OVERVIEW Rapid growth of industrial economy bases on different factors and packaging is one of them. Packages Limited was born out of a dream to set up in Pakistan, industries of excellence based on local raw material and talent. Packages Limited is a leading packaging manufacturing company of Pakistan. It is the sole largest industry in Pakistan serving about the 35% needs of the country. Syed Baber Ali Shah, who was the first managing director of Packages Limited, went to Sweden in 1954 to negotiate the contract with Akerland & Rausing of Sweden. Akerland & Rausing had been the leading paper converters in Europe. In Pakistan, there was no previous experience of a packaging industry. Therefore, Pakistanis needed technical collaboration with their Swedish partners. In the beginning, the first problem was the selection of site. Finally, Lahore was selected due to the following reasons: • Easy availability of workers. • Easy availability of raw material. • Easy transportation all over the country. So, Ali family provided the capital, land, labor, management and local experts while their partners provided technology, machinery, experts and also training to Pakistanis. Syed Baber Ali was the first Managing Director.
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Mr. Syed Mratib Ali Shah laid the foundation stone on The 26th of March 1956. The construction was started from the Solid Board Department and by the end of October, 1956 the main shed of the factory was completed. At the same time the Swedish engineers with the help of Pakistani staff installed machinery. Packages Limited started operating in May 1957 with a paid up capital of Rs. 4.94 million as a t venture between the Ali group and Akerlund & Rausing of Sweden. In the beginning 22 Swedish experts came to Pakistan to run the factory and to train the Pakistani staff. In 1958 production of packaging cartons for different industries was started. Usually, the packaging cartons are for Soaps, Confectionery, Biscuits, Cigarettes, Tea, Pharmaceutical products and many other products. Over the years, the Company continued to enhance its facilities to meet the growing demand of packaging products. Additional capital was raised from sponsors, International Finance Corporation and from the public in making the total paid up capital to Rs. 31 million in 1965. Since 1982, Packages Limited has a t venture in Tetra Pak Pakistan Limited with Tetra Pak International to manufacture paper for liquid food packaging and to sell Tetra Pak packaging equipment.
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The main industries covered by Packages Limited are: o Soap Industry o Shoe Industry o Tissue Industry o Tea Industry o Tobacco Industry o Food Industry o Sweets & Confectioneries Since 1957, Packages has been producing inks for its own consumption. In 1993, the Company agreed to form a t venture with equity participation from Coates Lorilleux, world’s second largest printing ink manufacturer to produce inks for Packages Limited and the general market. Also in 1993, a t venture agreement was signed with “Mitsubishi Corporation of Japan” for the manufacture of polypropylene films at the industrial estate in Hattar, NWFP. The name of this project was Tri-Pack Films Limited, In 1995, an agreement was signed with UHDE of to setup a plant for the manufacture of Hydrogen Peroxide (H2O2), an environmentally friendly bleaching chemical, with an annual capacity of 12500 tones, near Lahore, Punjab. In 1996, a t venture agreement was signed with Print care (Ceylon) Limited for the production of flexible packaging in Sri Lanka.
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Another important service department of the Packages Limited is its “Power Plant”. In 1967 they set up 6 MW power plants, but to ensure a continuous and dependable supply of power for its production lines.
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In the field of consumer products, Packages Limited has shown tremendous potential and commendable talent. One of the consumer products of the company are “Rose Petal” Tissues. The production of Rose Petal was the first introduction of tissue paper industry in Pakistan through which Packages has introduced so many brands of tissues.
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MANUFACTURING DIVISIONS OF PACKAGES Packages Limited provides packaging solutions for exceptional value to individuals and businesses. They are the only packaging facility in Pakistan offering a complete range of packaging solutions including offset printed cartons, shipping containers and flexible packaging materials to individuals and businesses worldwide. The three manufacturing divisions of Packages Ltd are as follows:
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-:MANUFACTURING DIVISIONS:-
The Paper and Board Division manufactures paper and board from a mixture of wood, pulp and other raw materials, and treats effluent. The Packaging Division takes materials from the Paper and Board division and converts customer ideas into finished products. Under Packaging division they are engaged in carton business unit where they produce cartons for various businesses, they are also engaged in corruwal business unit and they have one flexible business unit where they do flexible packaging using polythin material.
The Consumer Products Division, which manufactures off-the-shelf branded consumer products.
The product mix width of Packages Ltd is five as it deals in 5 main business units.
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PRODUCT STRATEGY LEVELS OF PRODUCT Core Product TO SOLVE
Augmented Product
Actual Product
CORE PRODUCT
The core benefit of Rose Petal tissues is that it is solving hygienic and cleanliness issues and is not polluting the environment because of its disposable nature.
ACTUAL PRODUCT
The actual product is the Rose Petal tissues. The ingredients of Rose Petal tissues are wood, pulp, wheat straw and perfumes. It is a fine quality tissue made up of the combination of various colors. They are in multi colors and are of different sizes such as small pocket tissues, large & medium toilet rolls, family and party tissues.
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AUGMENTED PRODUCT
Rose Petal has monopoly in the tissue market as it is capturing 80-85% of the market share of tissues. It is considered to be a fast moving product and has a huge range of tissues. It is currently not offering any augmented features in its product, but its authority is planning to cater these issues in future.
PRODUCT CLASSIFICATION CONSUMER PRODUCT
Rose petal tissue is a consumer product and is based on the quality oriented strategy where the company is heading towards improvement and awareness of the importance of using tissue papers. It is promoting its product with the help of wide range of distributors and many ment campaigns. Under consumer product it lies in the category of convenience product.
CONVENIENCE PRODUCT
Rose Petal is a convenience good because of the following marketing considerations:
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CONSUMER BUYING BEHAVIOUR
PRICE
PLACEMENT (DISTRIBUTION)
PROMOTION
Rose Petal is a fast moving good and a disposable product. People buy it frequently with low involvement in the buying process because the consumer buying behavior for these tissues is variety seeking. The target market of the Rose Petal tissues is middle class and then they stretch up and down. Their price range if from Rs.5- Rs.500 so that it could be feasible for both consumers and business customers in their buying.
Company is using selling concept by distributing its product in the market through its approximately 300 distributors.
Rose Petal is promoting its product in a very effective manner. Any campaign it launches through any medium is very strong and effective. Nowadays it has chosen a new medium i.e. cable TV as it is cheaper and more effective.
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INDIVIDUAL PRODUCT DECISION The following model represents the individual product decision:
Product
attribute
Branding
Packaging
Labeling
Product Services
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PRODUCT ATTRIBUTES The attributes of Rose Petal tissues are
PRODUCT QUALITY
TQM APPROACH
The aim of Packages Ltd is to follow the product concept which shows that the company is very much particular and do not compromise on the quality of its tissues. It has a separate quality control department which tests the tissues in of their quality on the spot before dispatchment. So any loop holes in tissue quality is checked at the same time. In of quality control the Company is relying on the following approach: Rose Petal has been following the TQM approach since their preliminary years to capture the market in of their quality. Now they are certified by ISO 9000 for producing quality tissues. As Rose Petal is well known in the market as a tissue brand so now its authority is relying on R on Q (Return on Quality) approach as it is viewing quality as an investment and holding quality efforts able for bottom line results. Rose Petal relies on the two dimensions of quality.
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QUALITY LEVELS
QUALITY CONSISTENCY
PRODUCT RANGE & FEATURES
ROSE PETAL FACIAL TISSUES
FEATURES ROSE PETAL TISSUE ROLLS
FEATURES
Ability of the product to perform its functions is performance quality. Rose Petal focuses on quality levels as it s its tissue position in the market e.g. Rose Petal facial tissues are soft and gentle as their function is to be used for facial concerns and party tissues are not that smooth as their function is to be used in parties for cleaning purposes. Rose Petal relies on quality consistency as this product is free from defects and is consistent in delivering a targeted level of performance. Following is the Rose Petal product range and their features: a) b) c) d) e) f) g) h)
Rose Petal Multicolor facial tissues. Rose Petal Perfumed facial tissues. Rose Petal Luxury facial tissues. Rose Petal Supreme facial tissues. Rose Petal Pop up facial tissues. Rose Petal Oro facial tissues. Rose Petal Rumaal pocket pack. Rose Petal Wet tissues.
They are soft and gentle and are fragrant. a) b) c) d)
Rose Petal Toilet rolls small. Rose Petal Twin toilet rolls. Rose Petal Toilet rolls bigger. Rose Petal Paper towel.
They are used in kitchens and toilets for cleansing purposes. Page 23 of 47
ROSE PETAL PARTY PRODUCTS FEATURES ROSE PETAL OTHER PRODUCTS
a) Party pack 500s. b) Jumbo paper towel. c) Table napkins. Party pack tissues are available in large quantity as they are used in parties. a) b) c) d) e)
N Fold Tissue Dispenser. Rose Petal Dental Serviette. Rose Petal Coffee Napkin. Rose Petal Coaster. Rose Petal Dental Napkin.
FEATURES
Rose Petal provides different features in products other than tissues as its coffee napkins are useful while drinking coffee and its coaters are useful to put under the tea cup on table and its dental napkin and serviette are useful in hospitals.
STYLE AND DESIGN
As far as product design & style is concerned there are 3 to 4 different styles and designs of Rose Petal tissues. They change their product design according to the occasions e.g. in basant they launched their party size tissues with colorful kites embossed on them.
BRANDING
Recognition of product. These days almost every product is known by its Brand Name. Brand name helps consumer identify the product. Brand name also tells the buyer something about product quality. In Rose Petal the word ROSE reflects the elegant features of the product.
Color Rose Petal is available in all colors of the season. Page 24 of 47
PACKAGING
Packaging is one of the important processes it covers all the activities of deg and styling the product.. In this process Managers have to decide that how the product will be transferred to the consumers. Rose Petal relies on the following for its packaging:
PRIMARY PACK
Tissues are placed in primary packs i.e. the tissue boxes from which the consumer directly pulls and consume the tissue. The logo and label of the company and Rose Petal is embossed on the tissue box.
CONTAINER PACK
Tissue boxes are packed in containers like cartons for their mobility. The logo and label of Rose Petal is also printed on the cartons.
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LABELING
The logo of Rose Petal and of its company Packages Ltd is embossed on tissue box. They change the color of their Rose Petal logo according to the occasions like on Independence Day they changed the color of Rose Petal logo into green and white. According to the policies for companies every product’s ingredients are to be printed at the back of the product but Rose Petal has not followed this policy because the Company’s authority feels that if they mention the tissue ingredients on the back of their tissue pack it will create a negative perception in the minds of the consumer about their product.
PRODUCT SERVICES
Currently they are not providing any product services for their consumer but they are planning to provide these services in future.
PRODUCT MIX DECISION MIX WIDTH
Mix width means Number of products available under one Product Line. Packages Ltd deals in five main business units under its manufacturing divisions. i.e. Paper and board unit, corruwal unit, carton business unit, flexible business unit and consumer product unit.
MIX DEPTH
Mix depth means different versions of each product. Total versions of each product in the product line of Rose Petal are 36.
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PRODUCT LINE DECISION Rose Petal follows line extension with both product line decisions i.e. Line Filling & line Stretching. LINE STRETCHING
They follow line stretching by offering various ranges of tissues at different prices under the brand name of Rose Petal.
LINE FILLING
They follow line filling by providing different versions under the same type of tissues at the same price.
BRAND EQUITY The positive differential effect of brand name Rose Petal on consumers is its superb quality. As people think about Rose Petal, quality tissues come in their mind this is the reason why consumer are willing to pay more for Rose Petal tissues. So quality is the measure of brand equity of Rose Petal tissues.
BUILDING STRONG BRANDS Model Brand Positioning
Brand name selection
Brand Sponsorship
Brand Development
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Following are the marketing strategies through which we can build strong brands.
BRAND POSITIONING
Rose Petal has designed its positioning statement in emotional aspect. Its positioning statement is:
“ROSE PETAL NA HOTA TO KIA HOTA” This is an emotional positioning statement as it cares for the emotions of people in their busy life by catering their hygienic and cleanliness problems. This statement tells the consumer that if in the hour of need whether you were to clean anything or you had influenza you needed a product which could be disposed off after its one use unlike the handkerchief which you had to use the same again and again. So this statement tells that if Rose Petal was not there what you would have done.
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BRAND NAME SELECTION
They have chosen the brand name ROSE PETAL so they can tell about the function of their product. They were matching and comparing the elegance of their product with that of Rose as it is a very delicate and fragrant flower. The concept behind this brand name was that tissue box is like a rose and tissues are like the petals of that rose. They wanted to give you the feel that holding a tissue in your hand is like you are holding a delicate Rose Petal.
BRAND SPONSORSHIP
Packages Ltd has the following sponsorship option:
MANUFACTURER BRAND
The tissues manufactured in Packages Ltd come under manufacturers brand. Packages Ltd manufactures tissues, paper cups and plates etc under their own manufacturing brand Rose Petal. Rose Petal manufactures tissues, coasters, paper cups etc on orders for different companies, hospitals, airlines etc with the Packages embossed on the back of the tissue. They also manufacture tissues on private orders given by people on their various occasions e.g. on weddings or birthday parties etc.
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BRAND DEVELOPMENT Rose Petal has three choices when it comes to brand development
LINE EXTENSION
Rose Petal is extending its product line by adding new tissue range under the same brand name (Rose Petal) and same nature of product i.e. tissues like Perfumed, Luxury, Supreme, Popup, Oro, Rumaal etc.
BRAND EXTENSION
The authority of Rose Petal tissues is also doing brand extension as with the same brand name (Rose Petal) it is manufacturing paper cups, paper plates, napkins, fold dispenser, dental serviette, coffee napkins and coasters in different sizes.
MULTI BRAND
Packages Ltd also comes under multibrands as it is offering additional brand in their tissue category i.e. Tulip tissues which is not their main tissue brand but acts as a fighting and ing brand for Rose Petal tissues. Tulip tissues are also available in different ranges.
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PRICING STRATEGY In the current era companies are playing with the price. Price is the only factor in marketing mix which can generate revenue while the other three factors represent cost. So this is very necessary to make effective pricing strategies to compete in the market in long run. Rose Petal is a special designed product under the head of consumer products division of Packages Ltd. The prices of Rose Petal have been set after a through study of the market. Packages Ltd had the option that it could reduce the price of its regular pack so that everyone could purchase it but the company knows that once the prices are lowered then it is almost impossible to raise them again. For this purpose Packages Ltd provided various ranges of tissues under Rose Petal with different prices i.e. from Rs.5 to Rs.500 and every range has its own target market. Rose Petal’s mix depth is 36. They are relying on line stretching and line filling of their products in the perspective of prices.
FACTORS CONSIDERED WHILE SETTING ROSE PETAL’S PRICE
INTERNAL FACTORS MARKETING OBJECTIVES
According to the brand manager of Rose Petal the market share of Rose petal has reached its current maximum profit position. They are the pioneers and the market leader in the tissue market providing quality product. They can set Page 31 of 47
prices to keep the loyalty and of consumer and to avoid government interventions. They can change their profit percentage to kill the indirect competition with mega companies.
MARKETING MIX Price is one of the only marketing mix tools STRATEGY that the company uses to achieve its marketing objectives. Price decisions must be cocoordinated with the other 3 Ps. In TARGET COSTING first they start with the idea of setting the price then they get the actual cost and after that they ensure what price should be settled. TYPES OF COST
TOTAL COST= FIXED + COST
VARIABLE COST
EXTERNAL FACTORS THE MARKET TYPES
Packages Ltd is enjoying monopoly for last 24 years so this is another reason for charging higher prices as compared to secondary competitors.
GENERAL SALES TAX
If the government increases the general sales tax from 15 – 20 % then it highly affects the prices of Rose Petal tissues.
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GENERAL PRICING APPROACHES The company can set a price anywhere between a low to produce a profit and one that is too high to produce a demand. Product cost sets a floor to the price; consumer perceptions of the product’s value set the ceiling. In general pricing approaches the company is following the cost based pricing approach.
COST BASED PRICING APPROACH The company is following the cost based approach and one of the price settlement model for their a Pop Up tissue is as follows: ] VARIABLE COST = FIXED COST= UNIT COST= EXPECTED UNIT SALES= UNITS COST= SALES TAX= 15 % of cost UNIT COST = (VARIABLE + FIXED)/UNIT SALES UNIT COST = MARKUP PRICE= UNIT COST___________ =
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(1-DESIRED RETURN ON SALES) SELLING PRICE = UNIT COST + MARKUP PRICE + SALES TAX SELLING PRICE =
DISTRIBUTION STRATEGY The network made by the company, suppliers, distributors and ultimate consumers makes the distribution setup. The distribution of products of a company is important for its sale. In case of Rose Petal, the distribution is very important because of its aggressive demand in the market. This is the reason why Rose Petal is available in huge stores as well as small retail stores. DISTRIBUTION CHANNEL
Rose petal has a set of interdependent organizations involved in the process of making tissues available for use of the consumer. Rose petal has made the distribution channel so that the product can reach to almost all of the outlets. So as we have mention about the type of customer with whom the company is dealing so they are using both the following channels. Business marketing channel Consumer marketing channel
BUSINESS MARKETING CHANNEL
CONSUMER MARKETING
For the business Clients, Rose Petal is using direct marketing channel where the company is directly dealing with the client. Due to this they take direct order from them and design tissues according to the will of the client For the consumer marketing, the company is using indirect marketing channel where it has Page 34 of 47
CHANNEL
added intermediary parties like wholesaler,
retailer so that the product can reach all parts of the market efficiently.
CHANNELS FOR CONSUMER PRODUCTS WHOLESALER CHANNEL
Rose petal has a huge wholesale set up. They have approximately more than 300 wholesalers and is from big city to a small town in Pakistan. Rose Petal gives immense importance to this so that’s why their distribution channel is spread like roots of a tree.
RETAILERS CHANNEL
Mostly retailers buy the product from wholesalers and some retailers like (C.S.D, HKB) directly buy from company and then the consumer buys from them.
TERRITORY OFFICERS
Rose petal has territory officers which controls the distribution set ups effectively. Every region has its own territory officer.
LEVELS OF DISTRIBUTION INTENSITY INTENSIVE
Intensive distribution means distributing a product to as many retail outlets as possible. Rose Petal distribution is very intensive. As it is consumer convenience product so customers’ convenience come first and the company’s aim is
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to provide the good at the door step of the consumers.
VERTICAL MARKETING NETWORKS Vertical Marketing Network consists of suppliers, wholesalers and retailers acting as a unified network. Either one channel member owns the others, has contracts with them, or has so much power that they all cooperate. The vertical marketing network can be dominated by the suppliers, wholesalers or retailers. Rose petal has its wholesaler or retailers who are providing its product to its target market.
TYPES OF VERTICAL MARKETING SYSTEM ISTERED
The rose petal is coordinating with its wholesalers for the distribution of the product.
RETAILING Retailing involves all the activities in selling goods to the ultimate consumers. Major retailers of Rose Petal are convenience stores and super stores.
CONVENIENCE STORES Convenience stores are relatively small stores located near residential area. They are opened for long hours, seven days a week. Page 36 of 47
SUPER STORES Super stores are very large stores traditionally aimed at meeting consumer’s total needs for routine purchased food and non-food items and our product is a non-food item.
MAJOR LOGISTICS FUNCTIONS Folowing are the logistic functions which the company follows for its distribution :
• WARE HOUSING • INYENTORY MANAGEMENT • TRANSPORTATION
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PROMOTION ROSE PETAL PROMOTION STRATEGY Promotion is an ongoing process that requires much planning. A strategy is simply a careful plan. The effectiveness of strategy depends on more than how much money has been put into it. Effectiveness results from the thoroughness of planning and the consistency with which activities has been carried out.
IDENTIFYING The Rose Petal marketer had identified their THE TARGET target market as they incorporated. The target AUDIENCE market is middle class and then they stretch up and down so they design promotional campaigns keeping in view the target market
BUYERS READINESS STAGE
Buyer readiness stage of rose petal is conviction as now consumer believes that rose petal is the best brand in the market.
CHOOSING A MESSAGE
Rose petal is using functional promotion campaign as they are relying on functional positioning statement
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CHOOSING AMONG MAJOR MEDIA TYPES
They are using all the non personal communication mediums to reach the consumer and tell them that Rose Petal is the need of today and the life without Rose Petal can’t be imagined so the campaign of Rose Petal is following these medias:
SELECTING A MESSAGE SOURCE
Television. Magazine Newspapers. Radio
Rose petal is using the celebrity system of ment as they are focusing on Pakistani market so they are using Pakistani celebrities as opinion leaders in the commercials of their product.
PROMOTION MIX STRATEGY PULL STATEGY
For Rose Petal Packages LTD is following PULL Strategy. Packages LTD run heavy promotional campaigns and health seminars for Rose Petal to create awareness of the tissue usage among people. Once people get well aware of the importance of the product usage, they will demand the product from the retailers.
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MAJOR MARKETING DECISION Advertising decision is based on following decision.
OBJECTIVE SETTING BUDGET DECISION
MESSAGE EXECUTION MEDIA DECISION
Rose Petal advertising.
is
focusing
on
reminder
Rose petal is using most logical budget setting method as it first set its goals to be accomplished and then estimate it’s cost of performing these tasks. Rose Petal is executing its message through slice of life as it shows bride using Rose Petal in the TV ad. Rose Petal is using radio, Radio, magazine and newspaper.
TV
For this purpose concept of Pulsing was
DECIDING ON used. Pulsing means scheduling ads MEDIA TIMINGS unevenly over a given time period. The idea behind pulsing was to heavily for a short period of time to build awareness about the package. Rose Petal evaluate its advertising EVALUATE campaign by comparing its MENT
past
sale with past advertising expenditure
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MARKETING MANAGEMENT ORIENTATION Marketing management wants to design strategy that will build profitable with target consumer but the philosophy should guide the company how to produce the goods in which quantity and how to create interest of consumer in the product and giving value preposition to the consumer. There are five alternatives concepts under which organizations can design their marketing strategy.
The Production Concept. The Product Concept. The Selling Concept. The Marketing Concept. The Societal Marketing Concept. However Rose Petal is following the three concepts.
PRODUCT CONCEPT
Rose Petal is based on quality oriented strategy where the company is heading towards improvement and awareness of the importance of using tissue papers perusing the product concept.
SELLING CONCEPT
With the help of wide range of distributors and many ment campaigns, the management of Rose Petal focuses on selling concept
SOCIETAL MARKETING CONCEPT
Packages Ltd is also following the Societal Marketing concept as the authority of Rose Petal tissues has installed an environmental plant worth 10 millions for air purification and has run effective earth quake relief campaigns at the disaster of 8th October, 2005. The product (Rose Petal tissues) itself is designed for the human long term welfare i.e. good health. Page 41 of 47
MARKETING PHILOSOPHY Packages Ltd is pursuing on customer driven marketing strategy for its consumer product (Rose Petal tissues). They design their product and its strategies according to the needs and wants of their customers e.g. Rose petal tissues has launched another tissue (table napkins) in the market which was demanded by various food chains like PC, Avari, Pizza Hut, McDonalds etc.
CONSUMER WANT A lot of cleanliness and unhygienic issues were prevailing in the country where people were suffering from various viral diseases and due to its infection in the air the rate of sick people were alarming. Due to these problems the consumer wanted a product which could solve these problems and functions like the handkerchief and which could also be disposed off after its one use. Rose Petal tissues fulfill this want .
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CORPORATE PORTFOLIO ANALYSIS OF ROSE PETAL TISSUES POSTION OF PACKAGES LTD FOR ROSE PETAL IN BCG MATRIX: Packages Ltd lies among stars in the BCG matrix:
STARS Packages Ltd lies among stars as it holds dominant share of the tissue market and the growth rate of the company is also very high in the perspective of Rose Petal tissues.
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PRODUCT LIFE CYCLE STRATEGY OF ROSE PETAL TISSUES The product (ROSE PETAL) lies in the maturity stage of product life cycle strategy:
GROWTH The reason why Rose Petal comes under growth stage is that the product has achieved acceptance by most potential buyers and is enjoying monopoly in the tissue market for the last 2 decades and is still growing with an alarming rate introducing new variants in its fleet. Page 44 of 47
RECOMMENDATIONS AND SUGGESTIONS After the thorough analysis of the Company Packages Ltd regarding Rose Petal, we recommend them the following:
PRODUCT AUGMENTED FEATURES
QUALITY
Rose petal is not offering any augmented features like they are not giving any additional services to their customers for example Raabta facility. We recommend them to print either their e.mail or mailing address or web site or any U.A.N number at the back of the tissue box in future for any complaints and suggestions of people People are quite satisfied with the quality and branding of Rose Petal tissues. Rose Petal captures 80% of the market share. For acquiring the other 20% share, we recommend them to carry on TQM (Total Quality Management) approach. Through this approach the Company keeps on improving the product constantly and will also be able to attract its potential customers.
PACKAGING
Attractive packaging gives an edge to the Company over the competitors. So we recommend them to enhance their packaging which looks innovative and creative. Packaging is the only tool which captures the attention of the buyer and leads the product to success.
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PLACEMENT APPLYING PROPER MARKETING LOGISTICS
According to the marketing research conducted by us, only 56% of the people are satisfied with the availability of Rose Petal tissues at their nearest shop but rest are not especially in rural and remote areas. So Packages Limited should apply proper marketing logistics especially in the rural and remote areas: which means to plan, implement and control the physical distribution of Rose Petal tissues from point of origin to point of consumption (right product to right customer in right time at the right place).
SHELF ATTENTION (Availability)
To gain maximum attention of customers, the product should be placed on the front shelf of the nearest shopping outlets. Packages Limited should follow this technique. Flying and other competitors of Rose Petal tissues occupied 20% share in the market just because of their availability and shelf attention.
PROMOTION BRAND RECALLING
Packages Limited has been selling Rose Petal tissues for the last 24 years and brand recalling is the only way to retain actual customers as there is a threat that many new competitors can come in the tissue paper market such as China paper industry after WTO.
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Through this marketing research, it is clear that Rose Petal lacks in the outdoor ment OUTDOOR that’s why we recommend them to focus on MENT promotion campaigns through billboards, signboards and posters.
CABLE TV PROMOTION
Rose Petal is now promoting its product on cable TV because it is cheaper as compared to other mediums and at the same time it is capturing small areas for its promotion. We recommend the company to carry on with this medium and to broadcast Rose Petal on popular channels to capture maximum market as it is an effective way for promotion.
----------------------------------------------------------------------------------------------------------THANKS.
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