STRATEGIC MANAGEMENT

PROJECT

GROUP MEMBERS:

SHAROZ AJMAL MBA1Y02181040

SYED MUHAMMAD MBA1Y02181041

IJLAL HAIDER
ADNAN MUNAWAR MBA1Y02173035

TATHEER ABBAS MBA1Y-02173063

MUHAMMAD FAISAL MBA1Y-02173053

ALI NAWAZ MBA1Y-02173054

SUBMITTED TO RESPECTED: SIR WAQAS

PERIDOT PRODUCTS (PVT) LIMITED
Table of contents:
I. INTRODUCTION
II. PORTER’S FIVE FORCES ANALYSIS
  BARRIERS TO ENTRY AND EXIT :
 THREAT OF SUBSTITUTES

 BUYER BARGAINING POWER:

 SUPPLIER BARGAINING POWER:
 INDUSTRY COMPETITION :

III. SWOT ANALYSIS

 Strength
 Weaknesses
 Opportunities
 Threats

IV. PEST ANALYSIS

 Political
 Economical
 Social
 Factor
 Technological

V. STRATEGY FORMULATION
 Product
 Price
 Distribution
 Place
 Promotion

VI. BUSINESS MODEL

VII. NEW TAG LINE
VIII. POP’S AND POD’S
IX. BUDGETING

Introduction

Peridot Products (Pvt) Limited, formerly known as Sara Lee Kiwi Pakistan (Pvt) Limited has
been in operation since 1958 in Pakistan. It is engaged in the manufacturing and marketing of
KIWI Shoe Care and Household products under a long term license agreement. It has created its
own brands such as Glint and Black Cat which are considered as leading brands in their
respective category. The Company management believes in diversification and has successfully
established its Textile Division which is engaged in manufacturing and export of various Textile
products such as yarn, fabric and apparel. The management is confident that Textile business will
grow by leaps and bounds in periods to come.

Peridot Products has stepped into the competitive market of house hold insecticides with
Inseguard. Inseguard, a complete household insecticide brand promising a great range of
excellent products for the consumer segment in Pakistan.

It has an excellent track record of providing quality products at competitive prices. It is having
large customer base across Pakistan using its products with great satisfaction.

In order to serve its valuable customers the company ensures that its products should reach
markets across Pakistan in the shortest possible time. To achieve this objective it has a very
strong and modernized country-wide multi-channel distribution network. There are total 150
distributors located throughout Pakistan, servicing retail shops, whole sale markets, departmental
stores and institutional buyers.It also exports its products to Afghanistan.

Company’s Head Office is located at Lakson Square Building No. 3, Sarwar Shaheed Road,
Karachi; and manufacturing facility is located at S.I.T.E. in Karachi, where all products are being
manufactured under one roof.

Company’s vision is to qualify as a leading FMCG company by acquiring bigger slice of market
share of its product range in a highly competitive market of Pakistan

Manufacturing and Marketing Products

Own Brands of Peridot Products (Pvt) Limited
Porter’s Five forces Analysis
To determine industry attractiveness and long-run industry profitability of the INSE-GUARD,
we choose to apply the Porter’s five forces in our analysis.

Porter’s five forces are:

(1) Barriers to Entry and exit

(2) Threat of substitutes

(3) Buyer bargaining power

(4) supplier bargaining power

(5) Industry Competition.

 BARRIERS TO ENTRY AND EXIT:

It’s normally difficult for a product to become a market pioneer after first failure and even in the
presence of different repellent companies in the market. Like Mosel which is a kind of same
nature product and has comparatively good market share .So there can be strong barrier for entry
once again into the market.
  THREAT OF SUBSTITUTES :

As there are number of other products like sprays, coils, electric repellant so there is a great threat of substitutes.

 BUYER BARGAINING POWER:

High brand loyalty for some products, thereby discouraging customers’ product shift. As
repellents are like the need of every home and there are many other well reputed products by
PERIDOT so with proper promotional measures that will be taken this time, the bargaining
power will be probably low.
  SUPPLIER BARGAINING POWER:

At first it can be high but with the passage of time Due to the long term relationships with
suppliers etc., PERIDOT will be able to negotiate better rates during times of high input cost
inflation.

 INDUSTRY COMPETITION:

All the competitors have the financial muscles to sustain their brands. And all are competing
with each other with new and newer products so Competition among the companies will be high.
SWOT Analysis

Strength

– Brand name depicting its purpose.

– Additional Mildly Perfumed feature.

– The only Mildly Perfumed Mosquito Repellent available in market.

– Competitive Price.

– Positive balance between Image & Affordability to ensure its leading position in terms of
‘Value for Money’ in the Low Segment.

– Attractive appearance with easy flip top open.

Weaknesses

– Lower image ratings due to nil consumer awareness.

– Non availability of product Vs. competition.

– Weak and uncontrolled distribution

– Less advertising & promotional activities compared to competitors.

– Less product life on shelves.

– Packaging weaknesses

- Bottle Size & Transparency

- Flip top Malfunctioning

Opportunities

– Introduction & Acceptance of new products under same brand range extension in household
insecticides through proper marketing.

– Growing trend of share/sales in household insecticides category.

– Increasing consumer awareness about diseases caused by mosquito. • National TV campaign

against Dengue

Threats

– Larger number of local & imported brands available in market.

– Extensive A&P of Market Leader

– Bargaining power of distributers

PEST analysis
"Political, Economic, Social, and Technological analysis" and describes a framework of macro-
environmental factors used in the environmental scanning component of strategic management.
It is a useful strategic tool for understanding market growth or decline, business position,
potential and direction for operation. We can analyze various different factors in a firm's macro
environment by the use of the PEST framework. If a factor emerges in numerous categories
managers plainly make a decision of where they think it best belongs. This analysis helps
managers decide whether the political, economic, social and technical conditions of the
organization they want to invest in are perfect from the point of view of investment. It is one of
the most important analyses for investing in another organization

POLITICAL

Manufacting firms like peridot products pvt ltd suffer badly due to the political system of
Pakistan is not strong enough due to corruption as government does not make effective
legislation to nip the evil of corruption. The government is involved in serious cases of money
laundering and corruption, commission and other serious allegations. The law and order situation
in the country is not exemplary and there is consistent danger of terrorist attacks. The public is
not pleased with their policies as they think differently from the masses and their priority list is
not up to the expectations of the people. The government is imposing taxes of all commodities
even the eatable products, which has grown concerns among the people. The economic situation
is worse and government shows its interests in taking loans from international monetary
organizations and returns this loan with interest, which cause heavy burden over the economy of
the country and it affects badly the life of common people.

ECONOMICAL
Due to poor economic policy of the government, the net loss of the country is still increasing and
the government is taking interest in getting more loans. There are stories of corruption in the
government and private sector and the people on the top of the government do not pay taxes,
which has increased the diverse condition of the government economic policies. Peridot products
pay high taxes which will eventually effects its profit margins and growth of the company.

SOCIAL FACTOR

In the developing countries like Pakistan, Health and Education are two major issues, which need
deep and special attention of the government but industry is also the backbone of any economy it
is also be focused by the government to strong the economy of Pakistan which will eventually
effects on the industrial revolution and economic conditions of our country. Unfortunately, the
government is focusing on other issues. The network of roads is necessary for quick traveling
and also enhances the economic activities but it is not as important as Industry, Health &
education.

TECHNOLOGICAL

Pakistan is giving less attention on technological changes which will effect he industries very
badly due to less focus on technological advancement the pedirot product pvt ltd effected badly
for the future challeneges as the government will impose high import cost on all the
technological advancements.
STRATEGY FORMULATION

 Product

Objectives

• New improved packaging

– Resize the bottle to accurate 60ml

– Issues with the flip top cap will be resolved at manufacturing end

Strategy

• Ensure price maintenance as of competition.

• Achieve brand superiority over competition.

– Future Plans

• More SKU’s of INSE-GUARD

– Pocket size bottle (30ml)

• Explore demand for product range

– Wet tissues

– Candles

– Liquidator
  Price

Objectives:

• Penetrate market with a competitive price , lower than most competitors.

Strategy

PENETRATION PRICING STRATEGY

• To become a low cost provider in mosquito repellent category and at the same time maintaining
the differentiation.

• Sustain price by utilizing less costly value chain activities.

 Place/Distribution
Objectives

• Increase distribution of Inse-Guard Mosquito Repellent in urban/ rural areas of country with a
major focus on urban areas of Pakistan.
• Trade/ Wholesale Promotions and Retailer Loyalty Programs to enhance trade recommendation
and support.

• Special Promotions/ Trade Discounts for urban/ rural wholesalers to support distribution
improvements. – Future Plans

• Specific budget will be planned separately for trade support to enhance and sustain distribution
levels

 Promotion
Objectives

– To identify the correct target market.

– To effectively communicate Inse-Guard to target consumers.

Strategy

• Frequency marketing strategy will be used to create recognition for INSE-GUARD on all type
of media.

ATL (above the line) Activities

» Frequency of 10 sec TVC and Radio

» New Tag line

» Colored Printed Adv in Jang and Dawn

BTL (below the line) Activities

– POS promotion: » Stickers / Posters, Mobile Hangers, Shelf talkers

BUSINESS MODEL

Weak Organization structure

New Tag Line

“MACHAR BHAGAO KHUSHBOO LAGA KE’’

POP’s and POD’s

(Points of parity & Points of difference)

POPs:

The main purpose of the repellent is the same for all and grab the great no of market share,
snatch the potential customers.

PODs:

 Two-in-one (mosquitoes and bugs): A new innovation, some companies have come out
with two in one eradicator. One bottle of INSE-Guard will kill both mosquitoes and other
bugs. Does it really work? It is anybody’s guess but it is a very clever marketing
innovation.

 Mosquito repellents that can be used as room freshener too: I have not seen this
innovation but is worth a try. Now a day’s most people are conscious about their
surrounding and they spend lavishly on room fresheners. So why not have a room
freshener that can eradicate the mosquitoes. but the marketers have to mull over the
positioning the product.
Reasons for product failure
Lack of Advertising techniques

• ATL Activities

Less frequency of TVC

Printed Adv just in Punjab paper (NAWA-E-WAQT)

• BTL Activities

Just POS promotion:

» aStickers / Posters, Mobile Hangers, Shelf talkers,

• Lack of consumer Awareness

• Not much benefits for retailers

• Ineffective monitoring of distribution

• Delayed Launch (November)

• Opportunity Lost (Dengue break through)

BUDGETING
CURRENT SENERIO OF MARKET SHARE
OF COMPETITIVE COMPANIES
Note ------- (Rupees '000) -------

Brand Share percentage Source

MOSPEL 70% Abbott Laboratories

NaturGard 10% Mortine

Miscellaneous local & imported products 20%

Total 100%
ADDITIONAL EXPENSE OF (PERIDOT
PRODUC PRIVATE LIMITED)
TO GAIN HIGH MARKET SHARE
ADDITIONAL EXPENSE TO GAIN MARKET SHARE

 718$ PER MINUTES CHARGE ON ADVERTISEMT ON GEO NEWS

 550$ PER MINUTES CHARGE ON ADVERTISEMT ON CARTOON NETWORKS

 200$ PER MINUTES CHARGE ON ADVERTISEMT ON PTV

 4900 CLASSIFIED RATE

 JHANG NEWS PAPER 4800$ FOR MAIN PAGE ADVERTISEMENT

 SOCIAL MEDIA ADVERTISMENT 1000$ TO GET 1 MILLION REACH FROM ALL OVER
PAKISTAN

ADDITIONAL EXPENSE FOR MONTLY ADVERTISEMENT WILL BE APPROXIMATELY

2872$+2200$+4800$+800$+4000$ TOTAL 14672$ MONTHLY EXPENSE

Selected Media Channels