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Pronto
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Marketing Plan






















Alfrink,
Zoetermeer, 7 July 2014, 3VL
Stefan Weegink, Karan Jangbahadoer Sing, Aymar Berkel & Max van Beek

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Index

INTRODUCTION ............................................................................................................................. 4
PRODUCT ....................................................................................................................................... 5
PRICE .............................................................................................................................................. 7
PLACE ........................................................................................................................................... 12
PROMOTION ................................................................................................................................. 13
CONCLUSION ............................................................................................................................... 15
TASK DIVISION ............................................................................................................................ 16



4
Introduction

Welcome to the marketing plan of the brand new product Pronto toothpaste. In
this marketing plan we will present you our product, price, place and promotion.
We want to create and carry out our plans, and therefore we use this marketing
method.

Our brand name is Pronto. The product is a toothpaste which is aimed for
business people which are willing to pay more for a product and are aged
between 30-55. The word Pronto is Italian for fast and the toothpaste cleans and
whiten your teeth fast and therefore the word Pronto is used. If you use Pronto
toothpaste your are fresh for Business and your are clean. In Business it is very
important to have a good first impression and Pronto toothpaste helps you with
having a good first impression. The toothpaste comes with a free Pronto After
Fresh(mouthwash) and that will freshen your breath even more. But before we
can introduce the toothpaste in the Pharmacies we have to do a few things and
that is what we are going to show you in this marketing plan.





5
Product

The product that we are producing is
called Pronto, it is a toothpaste. The
target audience for our toothpaste are
business people, in other words
people that have a higher income
than the average. Those are people
from the age between around 30 up
to 55. We choose for the name Pronto for our toothpaste because the Italian
word, which means quick, has a classy sound and that appeals to our target
audience. In the logo we made an icecap, that is because we want to indicate
that the brand Pronto is very cool (like in cold) and very fresh. The Pronto
toothpaste itself is white and it has a fresh and a little sweet taste. Pronto
toothpaste makes your teeth whiter. We did this because our target audience like
things to be classy and efficient.

The ingredients and their function:

Distilled water
The distilled water makes the toothpaste more fluid

Glycerol
The glycerol makes sure that the toothpaste wont dry out

Peppermint oil
The peppermint oil gives the toothpaste a fresh taste

Saccharine
Saccharine is an artificial sweetener, which makes the taste of the
toothpaste sweeter

Teepol
The Teepol makes the toothpaste foam

Fixodent
The Fixodent is the thickening agent in the toothpaste

Calcium carbonate
The calcium carbonate causes the toothpaste to scrub while using

Vivil peppermint
The vivil peppermint gives the toothpaste an extra fresh taste

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For the packaging we use a normal formed toothpaste tube with a nice gold with
black designed label. The Pronto toothpaste tube comes in a box which is also
designed with a gold and black label. We used the colours gold and black,
because the colour gold shows class and luxury, and the colour black show the
efficiency, the power and the elegance. In the box there is a system that pushes
the toothpaste up when opening the box. That is just to make it more luxurious
and make it easier to use. All those accessory are considered to be the tangible
products. The tangible products are the physical products. the intangible product,
so the product that can only be received indirectly, is the brand value and the
recognition.
The Pronto toothpaste is a homogeneous product, because other brands of
toothpaste have a concept that is a bit similar to the concept that we have. But
our toothpaste really focus of the people with higher income and the other brands
just focus on the average target audience. So in that way you can also say that
our product is also heterogeneous.


By promoting the Pronto
toothpaste very much, we
want to create a big
recognition for our toothpaste,
that is in the introduction
phase. Then our brand and
our product have the
opportunity to grow and start
to sell a lot, that is in the
growth phase. Later the sales
and the success will reach its
highest point and that is in the
maturity phase. And usually
the next phase for a product
is that the sales will go down
and the success rate will also go down, that is called the decline phase. But we
want to prevent the Pronto toothpaste to fall in the decline phase, so we started
to think ahead and make plans to improve and renovate our toothpaste. We
came up the ideas to add other kind of flavour to our basic toothpaste, so that the
costumers will have more choice within our brand and we came up with the idea
to sell more that only toothpaste, so that we have a back-up. But those are all
plans for the future.




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Price

This document shows the cost of one toothpaste, since this toothpaste is a
project we wont be able to buy a lot of certain ingredients. Which means that our
prices are not competitive, our toothpaste therefore doesnt aim for competition.
Prices are based on real prices which are checked at 02/07/14. Our choices are
made by looking at the possible options, we checked whether the options would
be cheap enough, trustworthy, reliable and qualitative. The price calculations are
divided into three parts, the start capital part, the price for one product part and
the promotional part. Since we want Pronto to be exclusive and qualitative, we
need a good factory.

Start capital
- Factory
- Country based in
Price of one product
- Ingredients
- Labour
- Shipping from factory
- Customs, duties and logistics
- Shipping to the stores
- Profit
- Extra percentage to prevent future problems
Promotion
- Promotional costs subdivided into: - Commercials
- Costs of making commercials
- celebrity as the head of Pronto
Start Capital

Pronto toothpaste is a toothpaste which must have quality, since the price is
higher than average, the costumer wants a qualitative product. Pronto company
had two possibilities, the first possibility was to open up a factory and control the
own process of making the toothpaste. This would require a large start capital
which is not profitable for us in this stage of the toothpaste Pronto. The second
option was to use an existing toothpaste factory to produce Pronto toothpaste.
Pronto company agreed on cooperating with Airsun Commodity Co., Ltd.
Factory. This factory delivers quality products for competitive prices. The
minimum order is 72,000* pieces which has our own etiquette as well as custom
packaging which is designed by Pronto company
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Pronto Company have contacted Airsun Commodity about pricing and shipping,
the details were given to the factory including all the ingredients used and their
amounts. As well as the etiquette (Price of etiquette is based on amount of
colours used) and its documents in the package. Here is the list of ingredients
and prices all rounded off: (All calculations on page ***)

- 15 mL distilled water 0.000375
- 2 spatulas (1.965 grams) Fixodent 0.01
- 7 mL glycerol 0.09
- 1.2 mL teepol 0.01
- 1 Saccharine tablet 0.01
- 3 drops (3/15) Peppermint oil 0.08
- 32 grams Calcium Carbonate 0.15
- Labour- , factory costs & packaging 0.146832651
Total variable costs: 0.487207651 including
VAT

Variable costs exclude shipping to the destination (in this case the Netherlands),
customs and taxes because of the European trade barrier, advertisement and
shipping to the stores.
* The amount 72,000 is the minimum amount per order, the more orders the
lower the price.

Shipping, handling & extra costs

After the toothpaste and its package has been made, the whole batch needs to
be transported to the destination country. In this case it will be the Netherlands,
which as well be our test country. There were several options for Pronto
company to choose from, air freight and shipping over sea. We chose shipping
over sea because this is the most cost efficient option, because our toothpaste
does not have a short life (like flowers have). The container will come in size of
20ft by 8 feet by 8.6 feet. This is the standard container which the biggest
transport companies uses. The volume of the container =
5.919 x 2.340 x 2.380 = 32.96 cubic metres
We had two options about filling the container, the first option was to just drop all
the tubes and assemble it in the Netherlands, to save shipping costs. Anyway,
since the factory said that they assemble the toothpaste before it will be shipped,
so we will fill the container with the Pronto toothpaste including all the packages,
excluding the extra gift (Pronto after fresh) The volume of one Pronto package =
4 cm x 4 cm x 14 cm = 224 cubic centimetres : 1000 : 1000 = 0.00022400
cubic metres
32.96 cubic metres : 0.00022400 cubic metres = 147,142
Which means that we can ship 147,142 pronto toothpaste packages in one 20
feet container, so to calculate the shipping cost of each toothpaste. We need to
divide the cost of one container divided by 147,142. Since Pronto company
does not have any experience in shipping it was difficult to receive quotes from
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the big shipping company. Although after some calls Pronto company managed
to find a price for one 20 feet container. One 20 feet container on a ship from
China to the Netherlands costs around $1000 dollars, excluding the handling by
Kuehne & nagel (Logistics company). 1000 dollars is 732,65 euros. We already
calculated that 147,142 Pronto packages fit in the container. Removing 2000
packages to have a safe calculation.
732,65 euros : 145,000 Pronto packages = 0,0050527586206897 per
package
Although this price seems pretty low, we also need to add taxes from customs
(because the shipment takes place from a non-EU country to an EU country)
which means that we need to pay.
We calculated that shipping would cost 732,65 euros, we need to add the
price of the 145,000 pronto packages to this number. 732,56 + (145,000 x
0,487207651) = 71,377.669395 euros x 1.21 (21 % Taxes) = 86,366.97996795
euros including taxes.

There are of course handling costs and shipping to a logistics company. Handling
will be done by Kuehne & Nagel, situated in the Netherlands. They will take care
of all the documents involved in shipping the Pronto toothpaste. We will hire Van
Zijp logistics (located in Zoetermeer, Kelvinstraat) to pick up the container. They
store all the Pronto toothpaste packages, and transports them to the main store
in Rotterdam. They would also transport them from this main store to the other
stores. However, it was not possible to get a price indication. Kuehne & Nagel
anyway did give a rough price sketch:

Handling costs: ~ 120 euros (Really depends on how big your container is,
weight and the product that is inside the container)

Pronto company called Kuehne & Nagel for a price indication, however they
could not give us one because we had not enough information yet. They did
however said that one container approximately costs 120 euros for handling.
Van Zijp Logistics could not give a price indication at all, because we had not
enough information as well.

Profit

Pronto is a toothpaste which focuses on people who have a higher salary than
the average person. This means that our product is qualitative instead of
competitive. Pronto Company focuses on delivering products which do their job
well, this means that Pronto toothpaste does not have a regular toothpaste price.
Our toothpaste will cost 6.99 / $6.99. This price seems high, we agree it is. But
this price does appeal to people who have more money to spent, they would
rather buy a toothpaste which appeals to their interest: Getting nice white teeth
(because of Prontos new white bleaching technology) and have a really fresh
breath. Because these people mostly represent a big company, they need to be
fresh all day, a regular toothpaste cannot fill this job. We could sell the toothpaste
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for a lower price, but the brand Pronto toothpaste would be less worth and
known. (Think about the brands Louis Vuitton, Herms and Balenciaga. These
brands also sell their products for a high price to protect the brand name value)
So competitive pricing and the cost-plus method is not an option for us.

Price Sales* Revenues Profit
6.99 10,000 69,900 63,943.66
5.99 15,000 89,850 80,915.48
4.99 20,000 99,800 87,887.31
3.99 25,000 99750 84,859.14
2.99 30,000 89,700 71,830.97

If you look at the table, you see that Pronto company chooses to pick the
highest price. Although it has the least amount of sales, revenues and profit. This
is because as explained above, Pronto toothpaste needs to be exclusive. The
toothpaste wont be exclusive when there are 50,000 sales.

Extra percentage to prevent future problems

Most companies add this extra percentage to their product. There is a possibility
that something went wrong, this could be in the factory, during shipping or in the
toothpaste itself. For example, 1,000 Pronto toothpaste have some poison in
them, during a process which went wrong. The costumer got ill and sues Pronto
company. The effect of this would be much worse if we did not prepare for this,
however with this extra percentage in every Pronto toothpaste, we already have
a capital to pay these kind of things. If we do not include this percentage, Pronto
company could go bankrupt in the worst scenario.
The percentage will be 3% per Pronto toothpaste. The price of one Pronto
toothpaste is: 86,366.97996795 / 145,000 Pronto packages = 0.595634345
euros per Pronto toothpaste.
3 x 0.595634345
= ---------------------- = 0.01786903 euros per
toothpaste
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Which means that we will spare ~0.017 euros per Pronto toothpaste. So the final
price per Pronto toothpaste will be:

0.595634345 + 0.01786903 = 0.613503375 Euros per Pronto package
Pronto company will sell Pronto toothpaste to the stores for 3 euros per Pronto
packages. So the stores can sell it for around 2.1 times the price they buy the
toothpaste for. The 2.1 times rule is approached by many stores in the
Netherlands (Pronto company called some of these stores to conclude at which
price it needs to sell Pronto toothpaste). Of course the Netherlands applies taxes
%
100 0.595
3 ?
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on the 3 euros per toothpaste. The taxes are 21% on the 3 euros, because
toothpaste does not apply for the 6 % taxes rule, which results in smaller profit.
0.21 x 3 = 0.63 euros
3 euros 0.63 euros = 2.37 Pronto company earns per Pronto package
If we want to know what the final profit per Pronto package is, we need to
calculate the selling price of the Pronto package the cost per package:
2.37 euros 0.613503375 euros = 1.76 euros profit per Pronto Package

Promotion

If you look back at the demand oriented pricing table you can see several
numbers of sales, revenues and profit. These numbers are based on the amount
of Pronto toothpaste sold without any promotion, except for mouth to mouth
advertisement, which is of course free. Pronto company chooses to advertise
during business hours, this includes RTL (Z) (which is in the morning where they
show the stocks of different companies) as well as the television program
business class. Extra options for promotion includes newspapers like de
telegraaf and het financieel dagblad although de telegraaf might not attract the
target audience Pronto company aims for, we do consider it as an extra
advertisement option. The last option we also consider is to advertise Pronto
toothpaste on highway billboards, again this option is in consideration because
this may not attract the target audience Pronto company aims for as well.
Therefore our calculation:
Advertisement which will definitely be used:
- Rtl (Z) television advertisement
- Rtlnieuws television advertisement
- Business class television advertisement
Total costs of these advertisements ~ 145,000 per week
Advertisement which is in consideration:
- De telegraaf advertisement
- Het financieel dagblad advertisement
- Highway billboards advertisement
Total costs of these advertisements ~ 22,500 per advertisement + 1,500
per board =
24,000 euros = 145,000 + 24,000 = 169,000 euros
Note that this price will be seen as fixed costs, which means that we will not
calculate it in the variable costs. The reason why we do this is because the
advertisements may not appeal to the costumers or not be effective. These
advertisements will of course not be permanent, there are several factors which
Pronto company needs to take into account when considering to run the
advertisements. First of all, does the media value overweight the value we put
into the advertisements, otherwise it would not be relevant for us to advertise for
Pronto toothpaste in this way. Second, do we appeal the right target audience
with these types of advertisements? If these factors are positive, we have the
right type of advertisement.

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Place

Our target audience for the toothpaste are business people of the whole world.
Therefore we need to have the headquarter close to a place where there are a lot
of worldwide transport connections. So that our product can be sold to every
business person.

Secondly we would like to have the headquarter in
the Netherlands because we will start in the
Netherlands so it is easier to set up business. This
causes that there two good options, next to
Schiphol or next to the harbor in Rotterdam. Both
have good international connections and also
national connections, but we have chosen for
Rotterdam. Because in Rotterdam you have ships
and ships are a lot cheaper than planes so that we
can cut in the price or have a bigger profit.

Rotterdam is also in the centre of the world and it is easy to have a distribution
centre of there. From here we can access the whole world by ships, trains and
trucks. Which makes it possible to reach all the business people.

So our distribution centre, factory and our office will be in Rotterdam. This is
easy for communication between them. We will be importing everything to make
the toothpaste from Asia, because the products are cheaper there and the costs
of transports arent very high either.


We decided that it was a good idea
to sell our product apart from in the
supermarkets also in pharmacies.
Since our toothpaste makes sure
your teeth are very healthy and a lot
of people come here, including
business people. So there is a bigger
chance that the business people see
our product and buy it.



Our market chain will be as following:

Ingredients + needs for packaging (labels and Tubes) from Asia(transport to -->)
Toothpaste factory (transport to-->) packaging in Rotterdam(transport to -->)
Distribution centre (transport to -->) Retail sales (transport to -->) Customers
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Promotion

In order to get our product out there, we will be using several promotion methods.
We want to communicate with our customers and inform them about our product
so they know what they are buying. We think that we have a good product and
we want to let our customers to choose Pronto as toothpaste. All we want is that
business people make are clean and therefore make a good first impression!
Our target audience is business people which are willing to pay more for a
product and are aged between 40-55. Since there arent that much business
people as people with a regular job we need to promote much, so our target
audience will know our product very well. In order to achieve this we need to
need to promote the product in things business people read, watch or listen to.
The promotion is focused on the toothpaste only(Individual promotion).

We created a commercial which attracts to our target audience,
because business people dont like busy commercials, business
people like calm and modern commercials more. In the
commercial we first used some scientific facts to show why
Pronto toothpaste is better and after that we have someone
with bad teeth and we give him Pronto
toothpaste and it
felt so fresh that he had the feeling that he
thought about the Artic. The commercial will be
shown on RTL7 from 8.30 AM to 18.00 PM, this
is when RTLZ news is and that is a program
which focuses on the economy of the world. And we are going to show the
commercial Between 19.30 PM to 20.00 PM on RTL4, this because business
people also watch the regular news and in between the news there is time for a
commercial and that is a good time to show the commercial. The costs of
sending the commercial on these times are 145.000 to advertise it one whole
week.

We will also use papers to achieve the goal. We have
created an advertisement and we want to advertise
in papers which are much read and also focuses on
the Economy. Papers which we will advertise in are
Het Financieele Dagblad and De Telegraaf,
because De Telegraaf is the most read paper in The
Netherlands and Het Financieele Dagblad is a
paper which focuses much on the Economy.
Advertising in these papers will cost us 22.500 per
advertisement.

We will also advertise on big boards next to the big highways to the big cities,
because most business people need to be close to the big cities for their work
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and close to the big cities most of the time there are traffic jams so if then people
are looking outside they will see Pronto toothpaste and they will remember it,
because they want to be fresh for Business. It wouldnt work to place boards
next to roads which arent driven that much and especially not by business
people, because most businesses are located close to the big cities and the
economical heart of the Netherlands is in Amsterdam so that doesnt have any
good effect. The price of the boards next to the road is 1500 per board.

Another thing we are giving the people is a free Pronto After
Fresh(Mouthwash) to let people be sure from their breath and
it also helps as Promotion, because if you could choose between
Pronto toothpaste and another toothpaste of the same price you
would choose Pronto, because you get something extra with it.
The making of Pronto After Fresh is 0.28 per bottle.
With these kinds of Promotion we try to reach our target
audience as much as possible and make a reputation for the name Pronto.





















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Conclusion

This is the final part of our marketing plan and we have almost finished the whole
project. By making the marketing plan, we learned very much of marketing and of
the process of making a product. Working in this group went very well, because
we have all got the same kind of mind set, so we all had the same kind of ideas.
But we also had a struggle working together, because we all live far apart from
each other. Because of that we had to communicate over the social media, which
is quiet difficult. But in the end everything worked out very nicely.
We have created a toothpaste called Pronto. The pronto toothpaste aims at
adults with a higher income than average. The brand of Pronto gives people a
elegant and a classy impression. For finding a fitting price for the Pronto
toothpaste, a lot of research and work had to be done. There had to be thought
of ingredients, factory, labour, shipping and etc. The final price has become
6.99. We also had to think for a right place to sell out toothpaste, so a place that
is appealing for business people. So we thought of big and crowded places like
Schiphol and Rotterdam. To get a good recognition for our brand Pronto, we
needed to find good ways to promote our brand. We needed to promote our
product for the right people. So we thought of promoting out brand at RTL
stations, in some financial newspapers and on signs along road of some big
cities in the Netherlands.
In the end we are very pleased with our product and with our marketing plan. The
making of the marketing plan was very educational. And we as a group are very
proud of the end results of our project and we enjoyed it very much.


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Task Division

Aymar Berkel = Most of Price & Task division
Stefan Weegink = Place, putting together, part of price & front page
Max van Beek = Introduction & promotion
Karan Jangbahadoer Sing = Conclusion & product