luvs diaper feasibility to enter in pakistan
TRANSCRIPT
Project: To Introduce a New Brand of Diaper in Pakistan Our company is interested to introduce a new Diaper brand in Pakistan “LUVS”.
This brand is owned by Procter & Gamble, PAMPERS is an existing brand of Procter & Gamble, most selling diaper brand amongst the people, which are more conscious about their baby’s health & their mental satisfaction as well. But the important thing is that all the customers for diapers in Pakistan not use Pampers due to some higher prices, they have to compromise quality keeping in front their budgets, even in most of the areas mainly rural, still people are using old style, traditional cloth nappies & economical plastic panties, which obviously are not good for baby’s health, cause rashes & some other skin diseases. So our target is to capture that class, as LUVS diapers are low price diapers with better quality.
Areas Studied Product Introduction Market Size Existing Brands & Their Market Share Current Marketing & Advertisement Activities of Different Existing Brands Distribution Channel Product Life Cycle Taxation Structure Packaging Requirement Quality Standards Legal Requirements
PRODUCT INTRODUCTION New diaper brand “LUVS” Brand owned by Procter & Gamble Budget friendly Alternative of any premium brand
somehow without sacrificing quality. Currently covers main mediocre markets
in USA
MARKET SIZE OF PAKISTAN P & G covers 73% of Pakistan market (our main
competitive edge) 0 to 7 years babies are 30% of the population 15% of these use different brands of diapers We have to grab customers who can’t afford other
premium diapers Those who don’t use diapers could be attracted
towards this product “LUVS” due to low price value.www.euromonitor.com
BRAND & THEIR MARKET SHAREBrands of diapers in Pakistan & their market share VOLUME SHARE Pampers 250 (M) Units 58% Other Branded 94 (M) Units 22% Diapers
(Baby Care, Hapi Napi, Baby Master) Other Non-Branded 86(M) Units 20% Diapers www.pbs.gov.pk
www.slideshare.net (By Brand Academy)
BRAND & THEIR MARKET SHAREBrands of diapers in Pakistan & their market share VALUE SHARE Pampers 3270 (M) Rupees 62.80% Other Branded 1234 (M) Rupees 23.69% Diapers
(Baby Care, Hapi Napi, Baby Master) Other Non-Branded Diapers 525(M) Rupees 13.50%
There is space available to sell product to non-user of diapers, by educating them & providing low cost diapers in replacement of Plastic and Cloth nappies.
www.pbs.gov.pk www.slideshare.net (By Brand Academy)
CURRENT MARKETING & ADVERTISEMENT ACTIVITIES OF DIFFERENT BRANDSExisting brands are advertising for their products in different ways, Awareness to parents about benefits of the product for their babies through TV 68% Magazines 6.7% Radio 2.3% Social Media 5%
TV Ad (TV Ad.mp4)
CURRENT MARKETING & ADVERTISEMENT ACTIVITIES OF DIFFERENT BRANDS Stall 10.5% Boards & banners
2.5% Newspapers
5% Boards & banners
2.5%
We’ll also use these modes of marketing & advertisement for our product & we’ll mainly focus on our low price competitive edge with a better quality product, we’ll also strongly target to customers who buy local, poor quality brands & people who don’t use diapers.
www.slideshare.net (By Brand Academy
DISTRIBUTION CHANNEL Companies are using different distribution channels
all over in Pakistan; they are using big & small all functional distributors for their products which help them to spread their product in markets of Pakistan.
Z & J Corporation Karachi is distributor of “Baby Master”, “Hapi Napi” & “Baby Care”.
PAN Industry is distributor of ‘Diapy’.
DISTRIBUTION CHANNEL Procter & Gamble for Pampers using their own distribution channels,
massive & systematic Supply Chain setup e.g.
1. More than 300 distributors in Pakistan responsible for the distribution of pre-defined geographical areas.
2. TOP Stores (TSP’s), high profile outlets e.g Al-Fateh, Akbari, HKB.
3. Direct Delivery (Key Accounts), Institutional buyer, who directly sale the product to consumer, e.g. METRO, HYPER STAR.
We’ll use these existing distributors at first stage of our marketing plans by offering them competitive profit share, some lucky draws, some incentive plans etc.
PRODUCT LIFE CYCLE The market for our product is ever green, as Pakistan is a
populated country, Population is increasing day by day, People are getting awareness about their baby’s health, Literacy amongst the people is increasing day by day, Their purchase power is also increasing significantly, At the moment Pakistan is 18th largest country with maximum
middle class people 55%. Predicted population of Pakistan till 2030 will be 250 (M) due to high birth rate.
Hence this product has eternally enduring market. www.euromonitor.com
www.tribune.com.pkDr. Javaid Abdul Ghani (Karachi School of Business & Leadership)
PRODUCT LIFE CYCLE –EXISTING BRANDS
TAXATION STRUCTURE We’ll have to import our product from USA at this stage, as we
have some later future plans for production facilities in Pakistan, so we have to pay duty & taxes according to below mentioned structure,
HS Code 9619.0020
Custom Duty @ 20% Sales Tax @ 17% Income Tax @ 6% Additional Sales Tax @ 3%
This diaper will cost after even paying all duty & taxes 6.50/Pc.
PACKAGINGPacking of LUVS DiaperSize 1 264 Pcs BoxSize 2 240 Pcs BoxSize 3 222 Pcs BoxSize 4 192 Pcs BoxSize 5 168 Pcs BoxSmall Packing for all sizes 40 Pcs Package
According to local regulations, at the time of import there must be proper marking on packages e.g. Country of Origin Weight Product life time Printed price Product life on each packet
www.ebay.com/luvsdiapers
QUALITY STANDARDS There must be certifications of some reputable
quality assurance company in exporting country about quality measures of product,
We have to get this certified from local quality assurance company e.g. Bureau Veritas, SGS etc. & submit to relevant Government Health Care department for further approvals/certifications.
Product must be certified from PSQCA.
LEGAL REQUIREMENT According to country’s regulation at the first
stage, we have to get registered the Brand “LUVS” in P & G territory.
Have to get product analysed from PSQCA/PCSIR. Have to get Government Health Department
registration. There will be low costs of registration required as
P & G has already registered & regular tax payer in country. Company will also hire a legal consultant for their corporate & lawful matters.