Current Level of Competition and Strategies to Increase Market Share
Subject: Finance | Topics:

Main purpose of this report is to analysis the Current Level of Competition and Strategies to Increase Market Share. Other objectives are identify the factors regarding the marketing mix of detergent Powder with a view to enhancing the attraction of the potential doctors toward product. Report also focus on to make strategies on the basis of analysis and to give some recommendations for increasing the market share and for designing an appropriate marketing mix of detergent Powder. Finally analysis the substitute products of the detergent Powder (Tibet Detergent Powder).

Problem definition:

Background of the problem:

KCCL is planning to increase the market share of Tibet Detergent Powder (Detergent Washing Powder) as a washing product for the different types of people. It already exists in the market.

In this context, my organizational supervisor Mr Jahiruddin asked me design a study plan to increase its market share. Mr Jahiruddin informed me that Detergent Powder is a highly expensive Washing Group among its competitors. Mainly we are trying to get the market leadership by improving our marketing mix from the competitors mainly from Uniliver Bangladesh  which is a leading FMCG company in the country.

Statement of the problem:

The appropriate properties for the proposed recommendations are to be determined

Broad Objective

To analyze the current level of competition of detergent Powder (Tibet Detergent Powder) for establishing strategies in order to increase the market share

Specific Objectives

  • To analyze the different aspects (product features, pricing factors, distribution system) of the detergent Powder as an Washing powder for identifying the competitive position in the market
  • To identify the factors regarding the marketing mix of detergent Powder with a view to enhancing the attraction of the potential doctors toward this product
  • To analyze the prescription sharing about the detergent Powder (Tibet Detergent Powder) among competitors in the different hospitals.
  • To make strategies on the basis of analysis and to give some recommendations for increasing the market share and for designing an appropriate marketing mix of detergent Powder.
  • To know the substitute products of the detergent Powder (Tibet Detergent Powder).

 

Nature of the study:

This study is exploratory in nature. All issues intended from this study are to be explored through assessing and analyzing information gathering from different sources.

Date source:

Primary date: Primary data were collected through primary survey.

Secondary data: Secondary data were collected mainly from websites. The other sources were FMCG Guide and Kohinoor Chemical Co. (BD) Ltd.

Sampling plan:

Study area: Dhaka city.

Sampling element: Consumer

Extent: Ten Market located in Dhaka city.

Time: During the period of 10 April 2006-10 June 2006

Sampling method: Convenient sampling was used for drawing sample from the population.

Sampling frame: The Consumers  list provided by Kohinoor Chemical Co. (BD) Ltd.

Sample size: Top ten Market  in Dhaka City.

 

Study instruments:

The broad category of sample unit was interviewed through a set of structured questionnaire. The questionnaire is presented in Appendix.

Study Approach: Personal interviews.

Study limitations:

There are some controversies on the last conducted census in 2003. The study was conducted only in ten hospitals. Due to this, it is difficult to make the study findings to represent the entire Dhaka. On the part of the limitation, most of the times the doctors played very conservative role in sharing the information required to conduct this research.

Quality

KCCL is committed to cater to the healthcare needs of the nation. This commitment demands immense socials responsibility of ensuring quality in terms of quantity, purity, stability, safety, efficiency and presentation of the product. At every stage of the production, stringent control mechanism involving raw material testing, in-process quality control, packaging, labeling, finished product testing as well as stability monitoring and documentation is maintained to ensure the highest quality product consistently.

Standard Operating Procedures (SOPs) developed according to the cGMP guidelines of WHO and EU are being strictly followed in every steps to ensure full compliance with the process parameters. Well equipped with most modern and sophisticated equipment like High Performance Liquid Chromatography (HPLC), Gas Chromatography (GC), Infrared (IR) Spectrophotometer, Ultraviolet (UV) Spectrophotometer, Homogenizer, In-vitro Bioavailabilty tester, Lung simulator, Disintegrator and many others latest computer-aided quality control instruments and accessories, BPL ensures the highest quality products. This is how BPL has succeeded in gaining uncompromising trust and confidence of doctors and patients all over the country.

Cosmetics is directly related to human life and therefore, its manufacturers have immense social responsibility of providing safe and effective medication. From its very inception, KCCL  has always emphasized the need for uncompromising quality. KCCL commitment to quality is clear from its progressive use of state of the art manufacturing technology. BPL’s priority is to build a healthier tomorrow for the nation.

 

Blockbuster Products

Tibet 570 Soap

It is the highest selling product by value in Bangladesh FMCG market and also the undisputed brand leader in the FMCG market for the last 50  years.

Tibet Snow

It is the highest selling product by unit sales in Bangladesh FMCG market. It is now a popular household brand among all classes of people because of its unique efficacy and safety profile in face and skin.

It is the no#1 brand in Cosmetics since 1956.

Research and Development Carrying innovation forward

KCCL employs a significant part of its resources in its R&D with a view to retaining its leadership position in the Bangladesh FMCG market through introduction of innovative products. The R&D team comprises of academically sound and professionally competent diversified professionals who have firm commitment to new product development. R&D team of Kohinoor Chemical Co. (BD) Ltd. is consistently striving towards

  • developing new formulations
  • simplifying manufacturing processes
  • bringing cost efficiency

The untiring effort of the R&D team has enabled the company to introduce five new products with 15 presentation forms and strengths in 2005 while a good number of products are in the pipeline.

In the wake of the highly competitive scenario, our R&D is focusing on innovations of some high-value, high-margin new products. We believe our continuous effort in R&D will give us a competitive edge in the years to come.

New Products

Securing our future

To keep pace with the ever-changing global market scenario and to cater to the unmet healthcare needs of the nation, KCCL always concentrates its efforts in introducing new products with 15 presentation forms and strengths, which has already gained significant brand equity in the market. Some of the newly introduced products are:

Bactrol

Family Health care soap Bactrol was introduced by KCCL in 2005. Extensive consumer promotion, in addition to promotion to the healthcare providers, built a solid base to meet the changing social needs.

Sandalina Soap:

Sandalina Soap is  a first-time-in-Bangladesh product designed to capitalize a niche market-the FMCG market

 

Training and Development Investment for future

The ever-changing market place has fuelled KCCL’s determination to keep up with the changing times by constantly strengthening the information base, exploring new lines of business and expanding domestic as well as its overseas marketing network. This prompted the company to undertake infrastructural development to built competitive advantage in order to retain its position as a leading Chemicals company. KCCL is committed to developing individual human, technical and conceptual skills through various educational and a wide range of internal and external human resource development and job related training programs each and every year.

At KCCL, a well planned and structural designed in-house training activity involving sales, marketing, manufacturing, QC, QA etc. is conducted throughout the calendar year. These training programs are conducted by in-house resources persons on a regular basis and as per schedule.

 

Central Product Management Dept. (CPMD)

The Central Product Management Department is the heart of marketing of Kohinoor Chemical Co. (BD) Ltd. This dept. controls all promotional activities of BPL products. It is headed by Produce Promotion Manager. It operates through the following hierarchy:

  • Product Promotion Manager
  • Asst. Product Promotional Manager
  • Senior Product Officer
  • Product Officer

The CMP prepares the product plans. It determines how many products will get exposure in each month. The annual planning procedure is started in July and continues to January! February of the year of action. Usually, 15 — 20 products get exposure every month. Thus each product gets about 3 —4 times exposure every year.

One of its every important function is sales Forecasting. Sales forecasting is done monthly in association with the Sales Management Dept. During sales forecasting, previous sales trend and seasonal variations are taken into active consideration. Product life-cycle is also considered carefully.

 

Mis & Planning Dept.

Kohinoor Chemical Division has been brought under exclusive computer network. The MIS and Planning Dept. have two operational units: (1) Management Information System and (2) planning.

The dept. operates through the following hierarchy:

  • Manager (MIS & Planning)
  • Asst. Manager
  • Senior Officer
  • Officer

The primary objective of MIS is to ensure availability of all types of data throughout the Chemical Division. It collects sales data from points of sales, renewed physicians’ in-and-out data and processes market research data and disperse to respective departments. It manages employee profile including personal details and presence.

The MIS & Planning Dept. also provides computer training to the new employees.

 

Training Dept

This department is common of all the companies of Kohinoor Chemical Division. It arranges training for newly employed personnel of Kohinoor in collaboration with the respective departments.

The managers of BPL train the Product Officers and usually the Product Officers give training to the Sales Representatives.

It arranges training programs periodically so that the employees are always in pace with the changes of the company orientations and modern concepts of the FMCG Market.

Human Resources Dept. (Hrd)

A company is only as good as its people. The day-to-day management of KCCL is in the hands of experienced professionals dedicated to achieve outstanding levels of performance which ensures better customer service.

The Human Resources Department of Kohinoor Chemical Division is one of the sophisticated one in Bangladesh. It is headed by Human Resources Manager. It operates through the following hierarchy:

  • S.V.P Corporate Affairs
  • Asst. Human Resources Manager
  • Senior Officer, HR
  • Officer, HR

This Dept. is responsible for all employee related activities. It defines employment need for the organization and defines job description and qualification of the employees needed. That is, it is to decide whom to recruit, why to recruit and how to recruit. It recruits personnel whenever any need arises. Usually if any incumbent fails to be selected in an interview, he! she loses the chance forever.

There are a number of steps involved in the recruitment procedure. A written test and a face-to-face interview are mandatory for any type of recruitment. Over 880 young, energetic and highly motivated employees from different cultures and diverse disciplines such as pharmacy, chemistry, biochemistry, microbiology, medicine, engineering, business, law etc are working with KCCL at home and abroad

Persons from Pharmacy and Medical are assumed to deserve in the Chemical filed. With as sales force of over 250 highly professionals, KCCL are represented in every part of Bangladesh to ensure the promotion and delivery of its products at every level of customer. HRD arranges orientation for the new employees to the origination. In-house recruitment is encouraged than head-hunting. Head-hunting is practiced in special cases. Performance appraisal is an important task of Human Resources Dept. It decides incentive scheme for the employees. It arranges training courses, family tour and telephone facilities for the employees.

KCCL believes in professionalism and emphasizes job rotation or cross-functional activities. If one employee is found dissatisfied or deprived with his! her parent dept., she! he is transferred to another dept. depending on performance and qualification. Termination is a rare case which is done only against major offers. Human Resources Dept. looks after two rest houses, canteen, security and transport facilities of employees. According to records, most of the employees are aged below 45 years. Highest survival rate is 5 — 9 years. BPL does not practice any sex discrimination. It has 09% female employees.

 

Environment

Caring Concern of KCCL

KCCL is highly concerned about environmental safety. They are continuously striving to minimize the environmental impact through their operational excellence.

KCCL is committed to an ceo-friendly environment and its facilities are carefully designed and operated to prevent all forms of pollution. One of the primary concerns of the company is to contribute in keeping the earth clean. BPL is aware of its responsibility of caring for the environment and the importance of reducing the environmental effects of manufacturing activities to a practical minimum.

 

Creating a Virtual Future

Facing challenges of globalization

At Kohinoor Chemical, they do not wait to react to changes, they create a “virtual future” so that when the future arrives, they will be ready to face it. Kohinoor Chemical is one of the first companies to have an extensively computerized and automated work environment. The state-of-the-art Management Information System (MIS) forms a common information platform for the organization so that everything-from the production floor to the sales people working in a rural area, from the quality assurance department to the distribution operation of thirteen depots located throughout the country-is interconnected. In KCCL, information technology is used as a decision support system and coordination tool to facilitate human and machine performance and fast communication.

Their commitment to create a virtual future is reflected in their activities. We are the leading pharmaceutical company in promoting products and providing medical information on CD­ROM, and through Kiosk and Internet Websites. With a vision into the new millennium, BPL has taken proactive actions to face the challenges posed by a fast changing world economy and the advent of the information age by assimilating it into the work culture.

 

Market scenario

Total washing Market Size                 : 880.118 Million

Growth                                                : 27.66%

Total Detergent Market                      : 456.216 Million

Growth                                                :51.33%

% of total washing Market                 : 54.63%

Table: Price Information

 ProductPack Size15% VAT on
TP per unit
MRP with 15% VAT per unit
1Tibet Detergent Power 40 gm.5761.752.00
2Tibet Detergent Power 200 gm.1208.259.00
3Tibet Detergent Power 500 gm.4818.17

 

19.00
4Tibet Detergent Power 1000gm.2434.4738.00

Table: Competitive Price Analysis

Product40 gm.200 gm.500gm1Kg.
Tibet2.009.0019.0038.00
Wheel2.0010.0021.0040.00
Chaka2.0010.0021.0040.00
Keya2.009.0021.0038.00

Market scenario

Total washing Market Size                 : 880.118 Million

Growth                                                : 27.66%

Total Detergent Market                      : 456.216 Million

Growth                                                :51.33%

% of total washing Market                 : 54.63%

 

Value-wise Analysis of Top 4 Brands

 Name of the brand & CompanyVALUE (TK)GROWTH (%)SHARE (%)
1Wheel                          Uniliver111,812,64057.0424.51
2Tibet                            Kohinoor78,413,08168 6918 19
3Chaka                          Square62,556,25475.2315.56
4Keya                            Keya56,895,20156.4710.40

* Brand leader unit-wise

4Ps Analysis (Between KCCL Product & Major Cornpetitorf Brand Leader)

Product

Presence of Wheel is for a long time. Tibet is a comparatively new product.

Price

Price is similar.

 Place

Micro-credit policy of Square help in market penetration to certain area where Tibet is not available

Promotion

  • Wheel: Promotion of Wheel is not focused. But their range of Washing products makes them more aggressive with promotional efforts.
  • Tibet: Innovative promotion (Pre-launching questionnaire & gift, Clinical Experience Survey, promotion aiming at packaging features). KCCL may consider introducing the whole range of Washing products.

 

Recommendations:

  • KCCL should ensure all types of product available and prompt communication with the doctors who are usually in the Market so that Consumer can use Kohinoor’s product frequently.
  • KCCL should more concentrate on free sampling to the Market so that product efficacy will be known by the Consumer easily.
  • Sales Representatives (SRs) should be trained by properly so that they can care to the Customer or Consumer’ speeches and opinions and can report to the concerned department.
  • KCCL should establish sound and effective communication channels with Customer by offering sufficient product sampling and attractive gifts.
  • Product feature have to be distributed widely and repeatedly among the internee Consumer so that they can recall the product name whenever required.
  • Factory visit should be arranged regularly that would help to build confidence of Customers on KCCL products. Even the normal manufacturing and production facilities are likely to create good impact on the uses habit to the consumer.
  • A pre-visit question-answer session should be arranged to prepare answers to delicate queries of the Customer (price objection, KCCL’s sole concentration on export rather that local market, significance of Tibet Detergent Powder day etc.).
  • The price of the Tibet Detergent Powder should be reduced by controlling the overall cost of the company.
  • KCCL should invest more money to the R&D so that they can make the unique feature product and can gat the advantage by product differentiation.
  • As Uniliver Bangladesh Ltd. is the brand leader so KCCL should do the Guerrilla attack to get the leadership in the Detergent market.

 

 

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