Current Marketing Situation

WHITE PEARL Toothpaste Company Ltd; founded one and

half years ago by two friends Ferdous Ahmed and Mohtasim
Ahmed with their past work experience in the toiletries market,
is about to enter the toothpaste market which is dominated by
other competitors. The market research team of White Pearl
earlier assessed the opportunities for Toothpaste Industry in
Bangladesh and found out that that it offers huge potential.
As a result White Pearl decided to launch a tooth paste which
has all these required features to reach the customer base by
creating a strong market share position than the existing
competitors with the marketing slogan Your Ultimate
Toothpaste.

Market Description >>

White Pearls market consists of the rising per capita income and increasing awareness is
driving demand of oral care products. Currently, toothpaste enjoys a country wide penetration
level of 75 %, with only 15 % of them brush twice a day. The per capita consumption in
Bangladesh stands at 270gms/year.
Consumers have started switching to value-added toothpastes like sensitive toothpastes, gels,
mouth washes, and teeth whitening products with various cool and exotic flavors. More or
less the competitors cover all these features but which they lack is in this market is failing to
introduce the raw exotic and new flavors.
So to create a solid market position White Pearl is offering quality toothpaste which will fight
all the tooth problems by giving the customers with a taste of new and unique variety of
flavors with very competitive prices which in the market is not available.

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Product Review >>

The WHITE PEARL toothpaste is a kind of toothpaste which has every element to meet up
the consumers needs and wants. It is made in such a way that it has specialized in all the
sectors of tooth and mouth that in one word it can be said expert.
WHITE PEARL toothpaste can face 8 problems:

Protect all around teeth, even where a toothbrush doesnt reach

Create great mint taste which freshen breath longer time period
Protect against root caries
Clean and make teeth whiter
Repair early decay spots (cavity)
Work as a mild antiseptics
Gum Bleeding
Reduce Sensitivity

Another special characteristic of it is that it spreads around and penetrates in between teeth
for All-Around Decay Protection.
Thus this product WHITE PEARL has the capability of fulfilling the needs and wants of our
consumers.
Ingredients:
The special and unique natural flavors of WHITE PEARL are spearmint, peppermint,
wintergreen, and cinnamon. Last but not the least the ingredient fluorides reduce decay by
increasing the strength of teeth.

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Active

Inactive

Silica
Sorbital
Triclosan
Sodium Chloride
Zinc Citrate
Eugenol
Chlorohexidine
Fluorides
Binders

Water
Detergent
Binding Agents
Preservatives
Abrasives for
polishing

cleaning

&

Binders thicken toothpastes. They prevent separation of the solid and liquid components,
especially during storage.
The target group would be:

Geographically targeted segment: Supplying our product to all areas through retailers
and simultaneously to super market as well. Second priority goes to densely populated
areas such as Dhanmondi, Mirpur, Mohammadpur, Uttara and Lalbagh of Dhaka City.

Demographically targeted segment: Targeted for all age of people. Highly affordable
from upper-middle class to skilled working class. Available in different sizes for large,
medium and small families.

Psychographically targeted segment: Supply quantity of the particular flavored

toothpaste will depend on the demand of particular flavor. All in all we have targeted
this market for trendy and conscious consumers of toothpaste.

Category

Price (Tk.)

Quantity

Small size

40.00

125 gm

Standard size

65.00

200 gm

Jumbo size

80.00

250 gm

Total sales are expected to be around Tk.12crore in the first year of operation.

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Competitive Review >>

After analyzing different ads and brands we have identified that most of the companies have focused
on
Germ fighting ability
Healthy teeth
Fresh breath
Whitening
Gum protection

Above some pictures of top brands of the competitors are shown.

The toothpaste segment in Bangladesh is largely a two player industry, Colgate & Unilever
Bangladesh (Pepsodent, Close-Up) which account for ~70 % of the entire market. For years,
Pepsodent has dominated the toothpaste market in Bangladesh with ~ 45 % market share.
However in one category of toothpaste these companies offer solutions for 5 (five)
problems while WHITE PEARL can face with 8 (eight) with unique natural varieties of
spearmint, peppermint, wintergreen, and cinnamon flavors. Thus it makes White Pearl the
Worlds 1st toothpaste to tackle 8 oral problems from one single tube of paste.
The price range of these competitors products fall almost in the same amount with WHITE
PEARL, as the competitive pricing strategy is followed by WHITE PEARL.

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Distribution Review >>

The nationwide small retail & large retail (wholesale) outlets, grocery shops and
supermarkets, will be the main distributors for WHITE PEARL in order to make it available
in the hands of our final consumers.
Factory

Warehouse

Groceries, retailers, online shops and super markets

Final customers and consumers

SWOT Analysis
SWOT stands for Strengths Weaknesses Opportunities Threats
Strengths

Good quality toothpaste

Has the capability to fulfill ground breaking 8

types of needs for maintaining an ultimate
oral care

Weaknesses

Same price range like the competitors

Opportunities

Offering four different unique natural flavors

Threats

Pepsodent, Colgate & Close-Up have greater

market share

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Objectives and Issues

1st year operation
To carry out promotional & social awareness campaign in a constant pace
Promotion and marketing is very important tool to create a brand more popular by passing
its activity among the consumers, and simultaneously we will perform social awareness
programs, for example free dental check up. All these will reflect a special image of our
brand name to the mind of our general consumers.
To ensure quality control
To make sure to the consumers that the product which are manufactured is neither
defected nor spoiled item. Ensuring this will boost the popularity of our product one step
further.
2nd year operation
To increase the sales margin
In order to make WHITE PEARL a popular brand, general consumers must have the
buying interest for it. So to make it we should increase the total sales margin of it.
To achieve customer satisfaction through better complain practice
The more complains the better result of the product, in this obtaining the satisfaction and
can give solutions to the problems which consumers may face. Thus it will help them to
stay longer and will create a bond with our product and might create a sense of popularity
among the other types of consumers as well.
3rd year operation
To enforce market research & product development
Market researchers can get the consumers views and wants more on the product, in this
way the desired product they want to see might be developed.

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Marketing Strategy
White Pearls marketing strategy is based on a positioning of single brand with only
variations that are selected by consumers when making a choice i.e. the exception of flavors
and different sizes. Our primary consumer target is middle- to upper-income people who need
one tooth paste to tackle with almost all oral problems for all age group. All of the four
marketing-mix strategies express WHITE PEARLSs differentiation to the targeted
group/market.

Positioning >>
Using product differentiation, we are positioning the White Pearl as the most versatile,
convenient, value-added model for personal and professional use. The marketing strategy will
focus on the 8 problem fighting solutions as the main feature differentiating the White
Pearl from all the other big competitors. This will be the competitive advantage for it.

Product Strategy >>

White Pearl will have all the features that are described in the Product Review section. It will
have hotline numbers on its body to contact with us for any queries. On the coming years we
will build on these customers feedback issues more in the coming years. Building the WHITE
PEARL brand is an integral part of our product strategy. The brand and logo (White Pearls
distinctive glowing green & black font) will be displayed on the product and its packaging,
and reinforced by its prominence in the introductory marketing campaign.

Pricing Strategy >>

Category

Cost Price (Tk.)

Distributors profit

Gross profit

Selling price (Tk.)

margin (Tk.)

(Tk.)

inclusive VAT

Small (125g)

25.00

2.50

12.50

40.00

Standard

49.00

2.75

13.25

65.00

Jumbo (250g)

64.00

3.00

13.00

80.00

Total from 3

138.00

8.25

38.75

185.00

(200g)

categories

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Distribution Strategy >>

Our channel strategy is to use selective distribution to have White Pearl sold through wellknown stores and online retailers. During the first year, we will add channel partners until we
have coverage in all major Bangladesh markets and the product is included in the major super
markets promotional leaflets and shopping Web sites. We will also investigate distribution
through super chain outlets maintained by major carriers such as Agora, Shwapno, Almas etc.
In support of the chain shops, White Pearl will provide demonstration products, detailed
specification handouts, and full-color photos and displays featuring the product. We will also
arrange special trade terms for retailers that place volume orders.

Marketing Communications strategy >>

By integrating all messages in all media, we will reinforce the brand name and the main
points of product differentiation, especially our 8 problem fighting solutions as the main
feature, along with the offering of four different unique natural flavors. Advertising will
appear on a pulsing basis to maintain brand awareness and communicate various
differentiation messages.
The agency will also coordinate public relations efforts to build the White
Pearl brand and support the differentiation message with the help of BDS
(Bangladesh Dental Society). To attract market attention and encourage
purchasing, we will offer as a limited-time premium a free toothbrush. To
attract, retain, and motivate channel partners for a push strategy, we will
use trade sales promotions and personal selling to distributors.

Marketing Research >>

Using research, we are identifying the specific features and benefits that our target market
segments value. Feedback from market tests, surveys, and focus groups will help us develop
the White Pearl. We are also measuring and analyzing customers attitudes toward competing
brands and products. Brand awareness research will help us determine the effectiveness and
efficiency of our messages and media. Finally, we will use customer satisfaction studies to
gauge market reaction.

Marketing Organization >>

White Pearls chief marketing officer Md. Ashfaq Uddin Tuhin, holds overall responsibility
for marketing strategy and direction. On the next page it shows the structure of the eightperson marketing organization. White Pearl hired Point 33 Marketing Firm to handle
national sales campaigns, trade and consumer sales promotions, and public relations efforts.
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Action Programs
WHITE PEARL will be introduced in February. Following are summaries of the action
programs that will be used during the first six months of 1st year to achieve our stated
objectives.

January >>
We will initiate a Tk.16lac trade sales promotion campaign to educate dealers and generate
excitement for the product launch in February. We will exhibit at the major consumer trade
shows (i.e. trade fairs) and provide samples to selected product reviewers, opinion leaders,
and celebrities as part of our public relations strategy. Our training staff will work with sales
personnel at major retail chains to explain WHITE PEARLS features, benefits, and
competitive advantages.

February >>
We will start an integrated print/radio/Internet campaign targeting professionals and
consumers. The campaign will show how quickly WHITE PEARLS users can solve 8 oral

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problems and how they feel about the four different unique natural flavors. This campaign
will be supported by the places at which a retail transaction is carried out and online shops.

March >>
As the advertising campaign continues, we will add consumer sales promotion tactics such
giving away free toothbrush or cash discounts as a premium. We will also distribute new
point-of-purchase displays to support our retailers especially the super markets/chain shops.

April >>
We will hold a trade sales contest offering prizes for the salesperson and retail organization
that sells the most White Pearl tooth paste during one month.

May >>
We plan to roll out a new national advertising campaign this month. The radio ads will
feature dentists who will ask about 8 oral problems and how they feel about the four different
unique natural flavors. The print ads will show these celebrities holding their WHITE
PEARL tooth paste.

June >>
In this month we will launch another different campaign which will feature how actually
White Pearl benefits its users and giving relief to their oral problems. From this we can
measure the level of quality within the product that White Pearl is required to provide in
order to fulfill its set objectives.

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Budgets
Total first-year sales revenue of White Pearl is anticipated at Tk. 12crore, with a total
selling price of Tk.185 per three categories and variable cost per unit of Tk.146.25, and thus
the anticipated total unit sales volume would be (Tk.12crore Tk.185) = 648,649 units
(648lacs 649 units) of White Pearl tooth pastes.
We anticipate two years loss because Break Even calculations indicate that White Pearl will
become profitable after the sales volume exceeds 12, 90,323 units, early in the products
third year. Our break-even analysis assumes per-unit wholesale revenue of Tk. 185 per unit,
variable cost of Tk. 146.25 per unit, and estimated first-year fixed costs of Tk. 5crore. Based
on these assumptions, the break-even calculation is:
Tk. 5crore
=

12, 90,323 units

Tk. 185 Tk. 146.25 = 38.75

N.B. Here three size categories of White Pearl considered as one to avoid complexities of break even
calculation

Controls
White Pearls marketing management fully dedicated in planning tight control measures to
closely monitor quality and customer service satisfaction. This will enable us to react very
quickly in correcting any problems that may occur. Other early warning signals that will be
monitored for signs of deviation from the plan include monthly sales (by segment and
distribution) and monthly expenses.

*** THE END ***

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