Fay Toilet Tissue Final Report
Fay Toilet Tissue Final Report
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2 Target Segment 5
3 Major Rivals 6
6 Bibliography 23
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Value Proposition of Fay Toilet Tissues
Foreword.
Fay Toilet Tissues have been around in Dhaka City for a very long time now, starting with its inception in 1986 when
Kallol Group, a local business conglomerate attained the licensing agreements from Fay International UK and
therefore was able to introduce the first Toilet Tissues in Bangladesh. Ever since then, after a period of 30 years, the
basic core product is still the same with very little variation in terms of product quality and packaging. The Market for
Toilet Tissues however, has changed substantially over the years, thanks to new product category entrants like
Bashundhara Toilet Tissues which has become the dominant player alongside the recent advents of similar Brand
entrants such as Sonali and Bangla Toilet Tissues.
Sadly Fay Toilet Tissues, in spite of playing the role of both introducer and first time mover in the Toilet Tissue
product category, could not attain market dominance as well as differentiate its product sufficiently over the years.
Attributable to these fallouts are more in lieu with the shortcoming of its producer and distributor in Bangladesh,
Kallol Group rather than the parent company itself. What is most surprising of all however, is that even after all of
these years Fay still has a considerable market presence and a loyal customer base which has promulgated its direct
competitors to imitate its core elements with varying degrees of success. Most trivial of all to note is that Fay’s most
important value proposition, softness has been unmatched by its rivals and continues to be so till this day.
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Softness
Fay Toilet Tissues single most important attribute regarding value is its texture softness and feel. Unlike all of its
other competitor brands which feel coarse, rough and tangy Fay’s Toilet Tissues are extremely soft and have a warm
feeling to them. This is why over the years, even after market share has eroded and been eaten by other
competitors, Fay still has a substantial market presence, simply because of this attribute. This is because the
exclusive wood pulp required for production is imported directly from the UK and provided and processed by Fay
International, the original parent, thus making imitation of the product nearly impossible by competitors. As a result
this softness can be considered as Fay Toilet Tissue’s core competence.
Similarly because of this core competence regarding Softness, additional usage benefits can accrue which are in the
form of:
1) Household Usage - Many households also use Toilet Tissues as regular tissue paper and the softness of Fay
Toilet Tissues enhances that usage tendency.
2) Gender - Women tend to prefer user friendly products more than men do and softness is one of the most
important attributes that they will consider when it comes to tissue papers. It is therefore not ironic that
most of Fay Toilet Tissues customers are women.
Pricing
Another substantial yet overlooked value proposition for Fay Toilet Tissues might be its price. Even though when we
carried out our market research we could not relate why Fay was pricing its smallest Toilet Tissue Packs at Tk. 22 and
its largest ones at Tk. 25 when the competition was selling at Tk. 15, 17 and 25 respectively with respect to size
increments, in a highly price conscious market, price itself could act as a buffer for consumer perception. This is
because from the outside, the market for Toilet Tissues might seem quite homogeneous with just-noticeable
differences and nothing more but a premium price may act as a sufficient lever to enhance consumer image in the
form of a luxury product. Since Consumers are highly price conscious and price sensitive in our country, a substantial
price difference might seem to them that Fay Toilet Tissues are better than its competitors since it is a luxury
product. However, the Toilet Tissue industry is such that ultimately consumers may not be attentive to minor details
and focus more on the staple use of the product and henceforth, quantity not quality is the norm. Therefore
premium pricing may not be that much of a value affected component as postulated.
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Description of the Target Segment
Fay Toilet Tissues target segment is based upon demographic credentials applicable with regard to income and social
class. Therefore Fay Toilet Tissues target segment basically represents those customers who fall into the Higher-
middle income and affluent categories (HMAC) and for whom the base core benefit is not just hygiene but some
premium value additives such as softness and higher prices.
However In order to understand how and why Fay Toilet Tissues is being targeted at the higher middle income
segment, it is necessary to have information regarding its distribution channels, Pricing Strategies and Packaging and
Sizes.
Distribution Channels
Deigning from market research, it has been found that Fay Toilet Tissues are available only in the Supermarket
chains such as Shopno and Agora and in Departmental Stores that are substantially larger and have a more
comprehensive product assortment than the local alley side grocery shops or convenience stores. As such Kallol
Group seems to be providing Fay Toilet Tissues only at exclusive stores and chains which are likely to attract a middle
income and higher segment. Unlike its other competitors primarily Bashundhara Toilet Tissue which has huge
distribution channel and can be found in nearly every convenience and grocery stores in the city and other
metropolitan areas, the exclusivity of Fay to the large supermarket chains and large Departmental stores suggests
that Fay Toilet Tissues target Segment is the middle class and higher individuals.
Pricing:
The Pricing Strategy regarding Fay Toilet Tissues is quite confusing. The Smallest pack size has been set at Tk.22
which is much higher than all the other Toilet Tissues regarding that size category whereas the price for the largest
Pack has been set at TK. 25 which is the same for other competitors. Why Fay Toilet Tissues has been priced as such
remains a mystery as no proper correlation can be found regarding premium pricing strategy. However it can
perhaps be inferred that Fay Toilet Tissues has been priced as such to elicit a premium appeal to its consumers
because the core benchmark price is set above the competition. Also the scarcity of availability of the larger sized
pack in most locations may point towards an inconsistent premium pricing strategy therefore positing that the
primary sized offering is the smaller pack (of 180 sheets) and not the larger one(220 sheets).
Another Interesting point of note with regard to Fay Toilet Tissues is that it is the only Brand which displays product
quantity information. The only reason that Fay might do this is because of guidelines endorsed by Fay International
UK, its original parent. However in what way this may affect consumer brand appeal is unconfirmed, but remains
noteworthy since product quantity information is completely unavailable in competitor’s product offerings and
makes Fay Toilet Tissues a bit unique.
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Major Rivals of the Product
The Higherarchy of Fay Toilet Tissue’s competitors are set in an ascending order based on their market share and
outlook.
Bashundhara Toilet Tissue is the largest direct competitor of Fay as well as the largest producer of Toilet Tissues in
Bangladesh.
Comes in a variety of packages with different pigmentation, texture, coloring, smell and sizes. However no Quantity
amounts were specified unlike Fay. Product offerings are available in the following formats:
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Marketing strategies:
Bashundhara Toilet Tissue an extension of the Bashundhara Paper Mills product lines, has attained market
dominance and leadership because it employs the following marketing strategies:
1) Huge Distribution Channels – making its products available in nearly every nook and corner of Dhaka Cities
Convenience stores in alleys and supermarkets.
2) Product Differentiation – comes in three categories as showcased above and provides the consumers with
more choice and specifications.
Marketing Insight:
Parent Branding – Bashundhara Group is a highly diversified firm and produces a whole range of products starting
with real estate to cement and even Toilet tissues. However what is interesting and significant to note is that all of
its products are branded in its original name. Therefore it becomes easier for consumers to actually identify one
segment of Bashundhara’s products due to affiliations with other product categories under the same Brand name.
Therefore Bashundhara Toilet Tissues branding is aligned with the reputational category of its parent brand, thus
eliminating many promotional costs and marketing campaigns and endorsing consumers affiliations and brand
image. This is a very important and overlooked advantage that Bashundhara has with regard to not just Fay Toilet
Tissue, but also with all the other competitors in the Toilet Tissue category whose brand names are not aligned or
similar to the parent brand.
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Bangla Super Gold
Bangla
Bangla
Marketing Strategies:
Follows Bashundhara Toilet Tissues somewhat directly in terms of marketing strategies with respect to product
differentiation, only incorporating J.n.d (just noticeable differences) in its packaging to segregate the brand as a
different competitor. It is trying to formulate a wide distribution channel like Bashundhara but is not quite there yet
as Bangla Toilet Tissues are still not available nearly everywhere.
Marketing Insight:
Is trying to adopt a follow the leader strategy with just about enough differentiation to position itself as a different
brand from the market leader. Although this direct copycat strategy might seem unethical and unconventional
deemed elsewhere, it is still effective because Bangladesh has a rapidly growing urban economy consumer base, and
as demographics change so do consumer demands for hygiene products. Therefore a potentially huge market
remains largely untapped and there for the taking, and Bangla Tissues is positioning itself to be able to take a large
chunk of the cake when it becomes available.
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Sonali Toilet Tissue:
Produced by Younus Paper Mills which is a part of local business Conglomerate, Younus Group. Only one offering
was found in the form of Sonali gold and of the same size as that of Bashundhara and Bangla Gold toilet Tissue. Very
Scarcely available in select stores and may have entered the Toilet Tissue market only recently no pertinent
marketing information could be gleaned regarding this competitor except for that fact that it exists in the market.
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Biggest Marketing Challenges for Fay Toilet Tissue
The biggest marketing challenges that Fay Toilet Tissue is facing in Bangladesh is with regard to three things:
lack of brand awareness by consumers, old fashioned designs and inconsistent distributions strategies.
Perhaps the most important challenge facing Fay Toilet Tissues in the present market environment is with regard to
consumer’s lack of awareness of the product resulting in Brand Obscurity. The primary reason why this challenge has
taken center stage is due the fact that Fay Toilet Tissues has been extremely meagerly advertised in the market. The
same advertisement has been used by Kallol Group to market Fay’s product lines for at least the last 15 years and
has been presented only occasionally in some magazines with no presence in newspapers as of date.
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With such a meagre presence in terms of promotion it is not surprising at all that consumer brand recollection has
been virtually nonexistent. How can a brand that has so little presence in the market with regard to even print media
hope to garner sales and nurture brand loyalty. Similarly speaking due to this shallow representation of brand appeal
consumers have moved away to competitor’s offerings, thereby taking away Fay’s market share. Lack of Brand
awareness due to a lack of promotional activities on Fay Toilet Tissues behalf is the fundamental reason why this
brand still remains quite obscure.
This picture
showcases the
outdated and
obsolete packaging
that has been used
by Fay toilet
Tissues for the last
10years without
any change in
either labeling or
design.
Another detrimental fact about Fay’s Toilet Tissue Brand obscurity is that the packages are extremely old fashioned
thereby eliciting consumer purchase withdrawals. Over the years this packaging has remained essentially the same.
Not surprisingly all the competitors have come up with better, more refreshing and visually appealing packages. If
Fay’s toilet tissues were kept side by side, many consumer would probably opt for the other brands instead of buying
that of Fay.
Shown in the next page is a real world situation that pervades the case for Fay Toilet Tissues present packaging
problems. The differences between other Toilet Tissue Brands and that for Fay are quite contrasting.
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Inconsistent Distributions strategy
Another extremely important marketing Challenge for Fay Toilet Tissues is with regard to its incoherent and
inconsistent product distribution in outlets. These practices seem to be more entwined with the management
malpractices and inconsistencies of its distributor, Kallol Group then to the brand itself. Outlined in much more detail
in the next page are the issues that plague Fay Toilet Tissues distributary problems.
When we were carrying out our market research visiting the different supermarket chains and large
departmental stores in different areas of Dhaka City we were amazed to find that in some of the most
important and popular supermarket chains Fay Tissue was not available. For instance in Meena Bazar we
could not find any existence of Fay Toilet Tissues whereas in Agora we found the widest variety of Fay
products available. The only logical rationale for this discrepancy is that Kallol Group has no set pattern for
its distribution. Given the already existing issues plaguing the image of the brand, these practices by its
licensee only seem to stifle consumer branding.
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2) Inconsistencies in availability of Product offerings:
For a long time it was thought that Kallol Group marketed Fay Toilet Tissues in only 1 size and offering.
However on visiting Shopno’s stall in Panthapath we were pleasantly surprised to find that another larger
offering was available. Yet what puzzled us the most is that this larger sized package was not available in
Shopno’s other outlets nearby such as in Green Road. The answer of why such Kallol Group would do such a
thing is in fact a big mystery and all we could rationalize is that there seems to be a lack of a logical pattern in
which certain larger and smaller packs were not distributed together. This question becomes even more
evident when Bashundhara Group and Bangla Toilet tissues are found together in various size offerings
whereas for Fay this is largely absent and highly inconsistent.
It has become worthy of mention by now that certain issues need to highlighted regarding Kallol Group, the licensee
distributor of Fay Tissue paper brands in Bangladesh, since many of Fay’s biggest marketing challenges are being set
up by its licensee itself.
If one visits the website of Kallol group at kallolgroup.com then it is clearly evident that this is a highly diversified
business conglomerate selling multiple brands under one roof starting from the hugely successful Retail watch
outlets - Time Zone to FMCG goods such as Fay and Mama noodles. However what is surprising is that in the last 10
years or so Kallol Group has been busy buying and acquiring other dying brands as well. Brands such as Jet, Aromatic
and Camelia Soap have been bought under the hood of Kallol group in the last 10 years and these products can still
be found on the shelves of supermarket chains and large departmental stores today. What is surprising is that these
products seem to be suffering from the same form of marketing myopia that exhibited their decline in the first place
yet seem to be available sufficiently for consumers. These strategies point towards only one direction. It seems that
Kallol Groups business strategy is to acquire cash cow brands which generate more revenues than expenses and
continue producing them until the brand completely dies out or declines. This is one of the reasons why over the
years, even without any branding or marketing efforts Fay has continued to grow because Bangladesh is an emerging
market with an ever so growing middle class segment. However sadly this does not bode well for Fay’s Brand image
at all and the market dominance of Bashundhara Tissue papers as well as the advent of brands like Bangla Tissue and
Sonali can only erode its brand equity.
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Other considerable problems:
Additionally a number of secondary cultural and competitive factors enhances the obscurity for marketing Fay Toilet
Tissues in the Bangladeshi context making them noteworthy of mention.
1) Product category:
Toilet Tissues represent an FMCG segment where displaying ways of hygienic usage of the product is very
difficult to portray visually. Given that Toilet Tissues are exclusively used for the most personal of hygienic
reasons, a place where marketers cannot follow directly so they have to rely on other very informal means
of getting their branding message to the end consumers. This means that unlike many other products which
can be marketed to consumers directly via advertising messages and other forms of promotion in nearly all
forms of media formats, by the product category that Toilet Tissues represent by itself, branding and
promoting the product is much more difficult. This case is synonymous with regard to Fay Toilet Tissue as
well
2) Bangladeshi Conservatism:
The Bangladeshi Culture is widely reputed to be a very lively and colorful culture. But Beneath the spectrum
that lies our cultural colors it is also understood that Bangladeshis are also very conservative and the views
of many secularist practices in other countries can be considered as Taboos. Given such a plight, it becomes
very difficult to showcase any ads or visual messages that may contain visual cues toward using products
that one may use while in the loo or for the most personal reasons. Sanitary products such as Harpic and
Savlon/Dettol are popular because they showcase usage with respect to an environment or outcome. In
contrast contraceptives, sanitary napkins have to be very indirectly and subliminally marketed to end
consumers so that no cultural objections are raised. The same is the case for Toilet Tissue papers.
This is a unique problem that Fay is facing and is best explained if the context of its largest rival and market
leader, Bashundhara Toilet Tissue is taken into context.
Bashundhara Group produces a large array of different products starting from Baby Diapers, Toilet Tissue (in
particular) to Cement and Real Estate. Yet all of the company’s products are branded in its own name no
matter how different or uncorrelated they are. This has led Bashundhara Group to accrue some extra
advantages in its Toilet Tissue segment because:
a) Brand Equity is enforced and enlarged because consumers can link Bashundhara Group’s other products
and attach its overall brand reputation with regard to its Toilet Tissues.
b) The Toilet Tissue Product Category is hard to advertise in the Bangladeshi context yet Bashundhara
Group does not need to advertise heavily for it because of its Umbrella Brand connections with its other
product portfolios.
c) Its Umbrella Brand Connections actually helps save the brand millions in taka of extra advertising
expenses and promotional expenses.
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d) Bashundhara groups Ethnocentric Tagline: “For the good of the people and the country” helps endorse
Brand loyalty and such advantages may help to cement its Toilet Tissue Paper Branding.
In contrast Fay Tissue papers (the entire Brand itself, not just the Toilet Tissue paper category) does not enjoy any of
these benefits. This is basically because Kallol Group, its licensee manufacturer and distributor in Bangladesh does
not own the brand and therefore cannot align it with its own brand name. This denotes that in order to increase
market share and endorse its presence in the customer’s mind, Fay Toilet Tissues has to be heavily promoted using
informal visual cues to market its product and this is exactly the area where this brand is lacking the most. For the
past 15 years or more, Kallol group has been using the same advertisement to market Fay’s entire product category
and has utilized the same old fashioned product packaging to sell the product. This attribute was copied and
improved upon by Fay’s competitors years ago and is thus far obsolete.
Promotional Mix
The main objective of these marketing strategies is to place Fay Toilet Tissues as an active product in the minds of
consumers so that they are always acquainted with the brand and do not need to recall the brand elements, which is
presently the case. Since Toilet Tissues are a staple good in the convenience category, the strategy is to advertise
them heavily and make them available in all major retailers. This is exactly what is lacking for Fay Toilet Tissues and
here we discuss the promotional strategies that Kallol Group can adopt to promote Fay Toilet Tissue. The Strategies
are:
1) Advertising the entire product Line in Print and Digital media : It has to be stressed that Toilet Tissues
represent a product category which cannot be easily marketed and portrayed in the Bangladeshi social
context as a result of many cultural and Social Taboos. As a result the product has to be promoted as
discretely as possible so that the intended message is easily conveyed and implicitly understood by the
consumer. Therefore what Kallol Group can do is that they can promote the entire product line in the same
manner that Bashundhara Group, Fay’s closest rival, has done.
The product line advertisement that we recommend for Fay is shown in the next page. We would like to
point out that Bashundhara’s Advertisement is being used because it is different and more modern than
Fay’s obsolete product line print advertisement used years ago and we recommend Fay update its product
line advertisements accordingly.
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Fay’s previous print ad was very dull and boring with no background emphasis and design. In Contrast Bashundhara
Paper Mills advertisement is much more refreshing, modern and has a nice catch phrase. Note that for Fay the
advertisement should be similar but should emphasize softness instead of the catch phrase.
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2) Redesigning the packaging and labels
Similarly here is another advertisement regarding Fay’s product line marketed abroad. This one has a very different,
modern and distinct look than what Fay is normally branded in Bangladesh, starting from the packaging to the labels.
Promoted in Kenya, this Ad showcases the differences in the quality of the print media advertisements from that of
Fay’s obsolete version used by Kallol Group. We strongly recommend using the same type of advertisement with
similar backgrounds in news papers and magazines as well as on billboards. The coloring scheme must be changed
to conform to the present product line designs, but the entire advertisement will still remain starkely similar.
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3) Advertising Fay Toilet Tissue only:
Once the product line has been appropriately redesigned and advertised, we are focusing on the next move
in the strategic mix – advertising Fay Toilet Tissues as an individual line extension in print and digital media.
Because the product category has to be so discretely and implicitly promoted, we recommend using Fay
Toilet Tissues main core competency, softness, to visually promote the brand and not any forms of usage
indications. An example of such an advertisement could be in the form of a newspaper or magazine ad
showcased below (note that the advertisement will be in Bangla for Bangla newspapers and magazines and
in English for English Dailies and so forth).
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Distributions Mix
Available fully
Other Large
Departmental Stores
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Similarly Fay Toilet Tissue size offerings were available in a very confusing manner and in order for Fay to make a
proper revitalization of its brand awareness it is necessary that all of its Toilet Tissue sizes be available equally in all
the outlets presently being sold to. This means that both the larger and smaller sizes be available side by side since
this strategy is already exploited by all of Fay Toilet Tissues major rivals. In order to do this Kallol Group will have to
focus on logistical in house support and receiving feedback from its retailers regarding subsequent shortages which
need to be replenished immediately.
Hotline: To rectify this situation we strongly recommend Kallol Group to set up a separate hotline (like 880-222-
555) catering only to the concerns of Fay’s products from all of its retailers. This hotline will be provided to them only
and will not be dispersed to any other party. The advantages accrued from such a step is that Kallol Group can
immediately help replenish product offering shortages with regard to both supply and availability of variants as soon
as they become aware of it.
Hiring Distribution Vans: we recommend that Kallol group have a wide network of manually driven rickshaw type
vans which are prominently used by not just its competitors but is also a nationwide phenomenon with regard to
distributing many convenience products (especially FMCGS). It will be less cost effective and more intuitive since
Fay is now distributed primarily through Kallol Group’s distributions transport which is time consuming given the
dismal state of Dhaka city’s traffic and road conditions.
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Alongside deterring from a push strategy we are not recommending Kallol Group to spread Fay all across Dhaka city
(as previously mentioned) because of some additional reasons as well which are:
2) Brand awareness generation is more important than widespread distribution since many customers are not
familiar with the product even when found available in retailing locations.
3) Finally the distributions strategy is inconsistent and unorganized presently and is a much more pressing
matter in the short run to rectify since this is directly tampering with Fay Toilet Tissue market presence at
the moment.
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Bibliography
Textbooks:
Kotler, Philip, Jha Mithileswar et al. (2013) – Marketing Management (14 th edition), Dorling Kindersley (India) Pvt.
Ltd on license from Pearson Education SEA.
Schiffman, Leon G, Kanuk, Leslie Lazar and Kumar, S. Ramesh (2010) – Consumer Behavior (10 th edition) Dorling
Kindersley Pvt. Ltd (India) on license from Pearson Education SEA.
Company information
http://www.bashundharapapermill.com
http://kallolgroup.com/fmcgpage.html#
http://www.younusgroup.com/industries.html
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