STRATEGIC MARKETING MANAGEMENT

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ACKNOWLEDMENT
After in depth and prolonged study and research work we finally succeeded in completing our term report of Strategic marketing management on repositioning of the brand named Mospel . We are thankful to Dr. M.A.K Chishti who being the instructor of this particular course remained very cooperative and helpful throughout the term to give guidelines and make rational decisions. We are grateful to him for his kind supervision. During the process of completion of our project report, many persons helped us providing their kind services to accomplish this task. Each of our group members took their responsibility to accomplish the task of completing the project.

Abbot Mospel

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LETTER OF AUTHORIZATION
Dear Reader The report prepared on Repositioning of Mospel was authorized by Dr. M.A.K Chishti, my teacher of Strategic Marketing Management at IQRA UNIVERSITY in the beginning of this course. This report is on the course of Strategic Marketing Management. Sincerely, Ebadullah Bilal Rabbani

Abbot Mospel

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LETTER OF TRANSMITTAL
Dr. M.A.K Chishti Iqra University Main Campus Karachi

Dear Dr. M.A.K Chishti

We request you to accept this report on the repositioning of Mospel that was assigned to us at the beginning of summer 2011. It has been a privilege to work on this report and we have put in our utmost effort to prepare a comprehensive report on the topic. If you have any query concerning the report, we shall be happy to discuss them with you. Sincerely, Ebadullah Bilal Rabbani

Abbot Mospel

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EXECUTIVE SUMMARY
The purpose of conducting a repositioning study on Mospel is that during the past few years the market share of mospel in the repellent industry has shorten due to which they have lost the volume of sales and many competitors have also come up plus the old competitors have gained their market size while Mospel is on the verge of losing its market share. By this study we will be able to analyze the situation and the reasons why Mospel has lost its market share and is unable to compete with the brands like Mortien, Finis Typhon etc who are currently the major holders of the market share in the repellent Industry. With the help of this study we will also try to reposition the product in the market and also try to provide feasible solutions so that it can help the organization in the coming future. We will try to come up with the solutions that are realistic and can be used in the future.

Abbot Mospel

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INTRODUCTION TO THE COMPANY

They are a global broad-based healthcare company devoted to discovering new medicines, new technologies and new ways to manage health. Their products span the continuum of care, from nutritional products and laboratory diagnostics through medical devices and pharmaceutical therapies. Their comprehensive line of products addresses all important health needs from infancy through the golden years. Their work across broad lines of business gives them a wealth of knowledge, understanding and capabilities in a number of health areas, including: y y y y Pharmaceuticals Nutritional Diagnostics Diabetes Care

Their capabilities allow them to focus on some of the most serious threats to a long and healthy life. From cancer and diabetes to a range of other conditions, their scientists are working hard every day to discover and develop new technologies and treatments for people in Pakistan and around the world.

Abbot Mospel

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CORPORATE STRUCTURE OF ABBOTT

Shareholders

Audit Committee

Board of Directors

Human Resource Committee

Share Transfer Committee

CEO

Banking Committee

In

Abbot Mospel

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Corporate Information
BOARD OF DIRECTORS Munir A. Shaikh (Chairman) Asif Jooma (Chief Executive Officer) Kamran Y. Mirza Thomas C. Freyman (Alternate Director Sadi Syed) Syed Anis Ahmed Angelo Kondes Shamim Ahmad Khan

AUDIT COMMITTEE
Shamim Ahmad Khan (Chairman) Munir A. Shaikh Kamran Y. Mirza Siraj Lawai (Chief Internal Auditor by invitation) Syed Anis Ahmed (CFO by invitation) HUMAN RESOURCE COMMITTEE Munir A. Shaikh (Chairman) Asif Jooma Shamim Ahmad Khan SHARE TRANSFER COMMITTEE Asif Jooma (Chairman) Syed Anis Ahmed Sadi Syed (Alternate Director to Thomas C. Freyman) BANKING COMMITTEE Munir A. Shaikh (Chairman) Asif Jooma Sadi Syed (Alternate Director to Thomas C. Freyman) Syed Anis Ahmed COMPANY SECRETARY Malik Saadatullah

Abbot Mospel

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SENIOR MANAGEMENT TEAM Asif Jooma (Chief Executive Officer) Syed Anis Ahmed (Chief Financial Officer) Sadi Syed (Operations Director) Dr. Sarmad Maqbool (Marketing & Strategy Director) Dr. Farrukh Hafeez (Quality Assurance Director) Ayub A. Siddiqui (Head of Nutrition Division) Habib Ahmed (Head of Diagnostic Division) Syed Imtiazuddin (Head of Diabetes Care Division) Dr. Arshad Ahmed (Medical Director) Seema Khan (Regulatory Director) Athar Noman Khan (Materials Management Director) Hassham M. Malik (Human Resource Director) CITY OFFICE 8th Floor, Faysal House, ST-02, Shahrah-e-Faisal, Karachi REGISTERED OFFICE Opp. Radio Pakistan Transmission Centre, Hyderabad Road, Landhi, P.O. Box 7229, Karachi WEBSITE www.abbott.com.pk

Abbot Mospel

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STRATEGIC MARKETING MANAGEMENT VISION

To be a premier healthcare company in Pakistan.

TERM REPORT

MISSION
To deliver consistently superior products and services that contributes significantly to improve the quality of life of the consumers.

HISTORY AT A GLANCE
For more than 120 years, Abbott has been a pioneer in developing innovative solutions that improve health and the practice of healthcare. In 1888, 30-year-old Wallace C. Abbott, M.D., began making a new form of medicine. Using the active - or alkaloid - part of a medicinal plant, he formed tiny pills, called dosimetric granules, which provided a measured amount of the drug. The demand for these accurate granules soon far exceeded the needs of his own practice. From a small operation based above Dr. Abbott's pharmacy, Abbott has evolved into one of the world's leading healthcare companies. y 1888 Dr. Abbott begins producing dosimetric granules in his apartment on Chicago's North Side. 1900 The business is officially incorporated in Illinois as the Abbott Alkaloidal Company 1915 The company changes its name to Abbott Laboratories. 1920 Dr. Abbott breaks ground for a new manufacturing facility in North Chicago. 1929 Abbott stock is listed on the Chicago Stock Exchange. 1964 The company acquires M&R Dietetic Laboratories of Columbus, Ohio, which eventually becomes Abbott Nutritron. 1973 Abbott forms its diagnostics division to bring together all diagnostic products and services. The company also introduces Ensure, its first adult medical nutritional. 1997 Abbott acquires the parenteral products business of Sanofi Pharmaceuticals, Inc., and also launches several new products, including an improved version of Similan infant formula in the United States. 2001 Abbott completes the acquisition of the pharmaceutical business of BASF, including the global operations of Knoll Pharmaceuticals. In addition, Abbott acquires Vysis, Inc., a leading genomic disease management company. 2010: Abbot acquires Solvay Pharmaceuticals and STARLIMS. Abbott also receives approval for XIENCE V in Japan Page 9

y y y y

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STRATEGIC MARKETING MANAGEMENT STRATEGIC PRIORITIES: INNOVATING FOR THE FUTURE

TERM REPORT

Scientific discovery and innovation are the hallmarks of Abbott's business - and the core of our commitment to advancing health and well-being. Our broad scientific expertise enables us to create new health care products, carry them through the critical stages of development and then deliver them to patients and health care providers around the world. Our diverse portfolio of pharmaceuticals, nutritional and medical and diagnostic devices share a common framework of excellence in science, research, development and engineering. Our ongoing investment in R & D enables us to address the Ever-changing global disease burden and to foster new, improved Solutions for emerging health care challenges.

ENHANCING ACCESS
Our expertise and resources help to bridge gaps in healthcare access. We tailor our approach to specific patient needs in specific regions of the world. Expanding access to care requires addressing a complex array of challenges. Lack of awareness about health care issues and treatments, inadequate healthcare infrastructure and social stigmas also can make it difficult for patients to get the medicines they need. We work to address these and other obstacles as part of our core business strategy and as part of our commitment to enhancing global health and well-being.

PROTECTING PATIENTS & CONSUMERS

Our ability to create life-enhancing and life-preserving products is constantly bolstered by scientific advances, but delivering on our commitment to patients and consumers goes well beyond the laboratory. To deliver safe and effective products - at the right time and in the right dosage or formulation - we work to educate patients and health care professionals about potential risks and side effects. All medicines, health care interventions, procedures and products carry some degree of risk - which must be balanced against the often greater risks associated with the illnesses or injuries these interventions are designed to treat. Fully educating and informing our stakeholders about these risks and benefits is paramount. Along with educating patients and health care professionals about the safe use of our products, we work hard to ensure safety and consumer protection throughout the manufacturing and distribution process. The safety of many product ingredients is generating significant debate throughout the health care industry. At the same time, the broad geographic dispersion of our supply chain requires increased oversight and auditing.

SAFEGUARDING THE ENVIRONMENT

Abbott Pakistan has long been committed to minimizing our global environmental impacts - from the sourcing of raw materials, the manufacture and distribution of our products, and the use and disposal of our products by consumers and healthcare practitioners. Our commitment to patient and consumer protection is shared by all Abbott Pakistan employees and by the even greater numbers of people working on behalf of our partners and suppliers. We hold all of them to high ethical and performance standards and maintain effective management systems to review and audit them. Our quality management system is supported by policies, Abbot Mospel Page 10

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processes, procedures and resources that ensure our products are designed and manufactured to be safe and effective. All our processes are regularly monitored, and our products are assessed against approved specifications before distribution.

MOSPEL (STUDY PRODUCT)

Our product is a mosquito repellent Mospel Spray. The Spray has an added feature of being operated with chemicals. Mospel Spray is effective against all biting insects including mosquitoes, biting flies, deer flies, ticks, black flies, sand flies. It is the perfect travel companion. Mospel Spray Formula Family Spray is pleasant to use and the non greasy formula. Spray contains no propellants and is quick and easy to use. The Pump Spray provides up to 8 hours protection and can be used on children s cloths. Effective evacuation of mosquitoes     No irritation of eyes. No hoarseness of throat. No headaches No allergies. Due to complex structure of Mospel Spray provides a calming and soothing relief from the effects of insect, mosquito, jellyfish bites and nettle stings. And now you can get all the relief.

INGREDIENTS:
The ingredients of our product are active Ingredients in Insect Repellents: DEET (chemical name, N,N-diethyl-meta-toluamide or N,N-diethly-3-methyl-benzamide) is the active ingredient found in many insect repellent products. It is used to repel biting pests such as mosquitoes and ticks, including ticks that may carry Lyme disease. Products containing DEET currently are available to the public in a variety of liquids, lotions, sprays, and impregnated materials (e.g., wrist bands).

Abbot Mospel

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Market Share and Analysis:

Market Share: Mospel: 10% - 12% of the repellent Industry Mortein: 35% - 40% of the repellent Industry. Average Monthly Sales: Mospel: less than 100 units in a shop. Mortein: More than 150 units in a shop.

Abbot Mospel

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STRATEGIC MARKETING MANAGEMENT Survey Analysis:

1. Of the following which product you have in your shop?(Multiple select) y Mospel y Mortein y Finnis y Typhon 2. Which is the more Popular Brand? y Mospel y Mortein y Finnis y Typhon

TERM REPORT

Popular Brand
10% 20% 15% Mospel Mortein Finnis 55% Typhon

3. How many average units of Mospel do you sell on monthly basis? y Less than 100 y 100 -150 y 151-200 y 201-250 y Above 250

Average Monthly Sles

10% 0% 0% 0% Less than 100 100-150 151-200 90% 201-250 Above 250

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4. How many average units of Mortein do you sell on monthly basis? y Less than 100 y 100-150 y 151-200 y 201-250 y Above 250

Average Montly Sales

3% 5% 2% Less than 100 100-150 45% 45% 151-200 201-250 Above 250

5. How many average units of Finnis do you sell on monthly basis? y Less than 100 y 100-150 y 151-200 y 201-250 y Above 250

Avg Monthly Sales

0% 0% 7% 3% Less than 100 100-150 151-200 201-250 90% Above 250

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6. How many average units of typhon do you sell on monthly basis? y Less than 100 y 100-150 y 151-200 y 201-250 y Above 250

Avg Montly Sales

0% 0% Less than 100 100-150 151-200 100% 201-250 Above 250

7. Has there been a decline in the sales of Mospel? y Yes y No

Decline In Sales
5%

Yes No 95%

8. Has there been a decline in the sales of Mortien? y Yes y No

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Decline In Sales
20% 80% Yes No

9. Has there been a decline in the sales of finnis? y Yes y No

Decline In Sales
2% Yes 98% No

10. Has there been a decline in the sales of typhoon? y Yes y No

Decline In Sales
0% Yes 100% No

Abbot Mospel

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STRATEGIC MARKETING MANAGEMENT Re-launch and Repositioning of Mospel:

LAUNCH OF A MOSQUITO REPELLENT IN SPRAY FORM:

TERM REPORT

MARKETING MIX:
The marketing mix of our product will be done this way:

1. PRODUCT:
y Segmentation of the product Mospel will be conducted in the following way: GEOGRAPHIC: Initially using the geographic variable Mospel Spray has segmented the market into the Sindh. PSYCHOGRAPHIC: It has also segmented on the lifestyle variable, for people who have an adventurous lifestyle who can carry our Spray at their outings. SOCIO-ECONOMIC CLASSIFICATION: Class A, Class B and Class C. We have also included Class C because Spray is considered to be a premium product but we want Mospel Spray to be used by Class C as well since it is economical compared to the other Spray in the market. BEHAVIORAL: Mospel Spray has segmented on the benefit variable by providing the benefit of being protected from mosquitoes. Mospel Spray has also segmented on the basis of occasion where it can used on occasions like camps, outings provided used in a closed area.

TARGETING
Our target market is Strata A, Strata B and Strata C. We would aim to target our customer which will be a woman and children because Mospel Spray is a household product and usually the woman buys it.

Abbot Mospel

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STRATEGIC MARKETING MANAGEMENT 2. POSITIONING STATEMENT

TERM REPORT

Mospel Spray is primarily positioned as A Spray form Repellent which is the most effective to repel mosquitoes, absolutely safe, convenient and economical which protects you always.

PRODUCT DIFFERENTIATION
Our product is one of its kinds. Most of the other repellents are in form of lotions, patches, vaporizers, whereas we are the first movers to have a Spray Mosquito Repellent. We have an added feature as well. Most of the other sprays become ineffective if there are power cuts but Mospel Spray overcomes this problem.

POSITIOINING STRATEGY
Our positioning strategy is benefit positioning since we want to be known as the most effective Mospel Spray.

3. PRICING
The pricing strategy will be of Penetration pricing and our combo-pack is Rs. 67/-. Reason for this strategy is because we want to sell high volumes which will result in high longrun profits. The price of our product is low as compared to our competitors mainly. We want to penetrate into the market and want to be known as the product which is value for money.

4. PLACE
ABBOTT DISTRIBUTION ABBOTT has their own depot i.e. their own distributorship in Karachi, Multan, Lahore and Islamabad dealing directly to customers (Distributors and institutions). ABBOTT has market distributors in big cities and specific areas are assigned to each distributor (who works on 6% commission basis) so that they can specifically take care of their areas and make sure those proper services and products are delivered to each and every customer. These distributors are linked with ABBOTT through satellites which report back on weekly basis about sales and inventory level. ABBOTT Pakistan monitors these distributors with the help of inventory system as this is the standard system they use for distributors i.e. they are supposed to hold six weeks inventory.

DISTRIBUTORS:
y y y y y y Premier Agencies(Muslimabad Jameshed Road Karachi) International Brands limited(NIC Building 8th floor Abbassi Shaheed Road) Babar Medicine, Lahore Nadeem Trader, Peshawer D.S Pharma, Rawalpindi Baloch Enterprise, Multan

Abbot Mospel

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STRATEGIC MARKETING MANAGEMENT PROMOTION

TERM REPORT

The means that we have used for promoting our product are as follows: y y y Print Ads Hoardings TV Commercial

In start we will have two print ads for promoting our product and creating awareness among the public. These will be published in the leading newspapers. The hoarding will be will be shown in all the major cities. We have one TV commercial which will be aired for about six months. The message appeal of the ad is that of benefits and uniqueness of product. On the day of the launch of the product we will call upon a press conference for creating awareness about our product through the media.

BRANDING
y BRAND NAME- MOSPEL SPRAY It is easy to remember. It portrays what the product can do. Consumers can relate to the name. It is easy to pronounce.

TAGLINE- BE PROTECTED. ALWAYS!!

Mospel Spray has the ability to fight with all the mosquitoes that affect the consumer. Its sole aim is to protect the consumer. Moreover it is mobile and can be carried anywhere. So the tagline brings out the same. Consumers who use the Mospel Spray will be protected always.

LOGO
Our brand logo is a dead mosquito. The dead mosquito portrays the fact that our spray is more powerful.

Abbot Mospel

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SWOT ANALYSIS
After thorough analysis and research we did the SWOT Analysis for the product and came to following results :

STRENGTHS: y y y y y y
Good company reputation. Strong distribution network. Strong brand positioning. Have deep roots in the Pharmaceutical business. Excellent professional management team. It is strength of our company as we have the first mover advantage over mosquito repellent in spray form and also because people are shifting their loyalties to hygienic products as t h e y h a v e r e a l i z e d t h e h e a l t h y p r o d u c t s . Economical: The price of our product is comparatively lower to the competitors though we provide the same quality. Innovative- operated: Our products extra feature, that it can be s t r e n g t h a s i t p r o v i d e s convenience to customers.

y y

WEAKNESSES: y y y
Lacking of deep rural penetration. Employee rededication - High Field Force turnover. Severe Managerial crises.

OPPORTUNITIES:
y y y y y High rate of population increase in Pakistan. Promotion intensive market. Increasing healthcare awareness. M a r k e t i s g r o w i n g : As the market is growing at a fairly good rate we have a great opportunity to capture the market share. First Mover advantage: we have the first mover advantage over being the first spray mosquito repellent in the industry..

THREATS:
y y y y y y y High inflation rate. Foreign Exchange Rates Political conditions of Pakistan. Govt. restriction on price Low price local pharmaceutical products Competition from Existing brands having a large market share. Increase in competition because of upcoming segments such as personal sprays and gels.

Abbot Mospel

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POTERS 5 FORCE MODEL:

This model was also made after the thorough analysis of the repellent Industry. The following results were obtained from the study of this model:

THREAT OF COMPETITORS
The threat of competitors is high because there are a lot of players in the market and two new segments that is personal sprays and gels have come in which will increase the existing competition. Also existing players are entering new segments which increase the competition.

THREAT OF NEW ENTRANTS

New entrants to an industry can raise the level of competition, which depends mainly on the barriers to entry. In case of mosquito repellent industry the entry barriers are low since the costs to set up the plant is not very high. The exit barriers are low and there by firms can enter and exit easily.

THREAT OF SUBSTITUTE PRODUCTS

The presence of substitutes can dilute the attractiveness of a particular industry. The threat of substitute products is high. The substitutes for mosquito repellent would be agarbattis, bed net, patches, coil and lotions.

THREAT OF BUYERS BARGAINING POWER

The buyer s bargaining power is low since they cannot influence the prices to such a great deal. They have to purchase the product at whatever prices available.

THREAT OF SUPPLIERS BARGAINING POWER

The cost of items bought from suppliers can have a significant impact on the company s profitability. The threat of supplier s bargaining is moderate. But certain chemicals are not available everywhere which increases the supplier s bargaining power.

FUTURE PLANS
After educating the people we would shift towards the organic mosquito repellent. Eventually our product would be available nationwide. We also plan to enter the rural market. We also plan to diversify into horizontal integration of mosquito repellent sprays and creams. Company plans to export its product to countries like Afghanistan, Bangladesh, etc.

CONCLUSION
Because using a mosquito repellent means direct exposure to you, your family, and your pets, we suggests to choose carefully if you need to use repellents. Consider both the effectiveness of a repellent and its potential health hazards. Our Product Abbott Mosquito repellent by the name of Mospel Spray fulfills both the requirement it is not only an effective but is also safe to use.

Abbot Mospel

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