Brooke Bond Report

ACKNOWLEDGMENT

We hereby thank Allah who gave us the ability and strength in completing this project. We also thank our teacher whose kind words and guidance helped us throughout this report, the work that have been put in this report would not have been possible without his guidance and support. This has been a thorough group effort and each group member is thanked for putting in effort on this project.

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EXECUTIVE SUMMARY Unilever (Pakistan) Limited Formerly known as Lever Brothers (Pakistan) Limited is by far the largest and most experienced fast moving consumer goods (FMCG) organization in Pakistan. It’s beverages accounted for 40% of 2002 revenues. The major tea brands are Brooke Bond Supreme, Lipton Yellow Label, Pearl Dust and A-1 Karak Chai (formerly A-1 Kenya mixture chai). Unilever has a dominant 35% market share in tea industry and is the leading player in the packaged tea market. Unilever is very sensitive to international tea prices, this makes the margins very sensitive as tea purchases constitute about 45% of manufacturing costs. Then of course smuggling is a major concern. There is rampant smuggling of tea, which has seriously affected Lever's sales and earnings. However, company owns two of the most widely recognized brands 'Lipton Yellow Label' and 'Brooke Bond Supreme'. The major competition facing Lever at present is from Tapal Danedar Tea, which is truly the market challenger. Brooke bond Supreme is one of the most popular brands which has the major market share in Punjab and most of the rural Pakistan, but it hasn’t proved to be successful in Karachi because there are already established brands competing against Supreme. As this product lies in high involvement category and strong brand conviction, very few percentage of the target market has tried the brand despite of high image of the product. Intensive advertising and promotional schemes have been launched but did not enticed prospects to even try the product. Brooke Bond supreme is weak in its assortment and it conveys low quality image from its packaging and labeling. Secondly Karachiites prefer strong and aromatic blend where Supreme is not prevailing either. Brooke bond Supreme has run out of options although there is a realization that newer brands takes time to establish but there is a deficiency in its assortment and its nature of blend which doesn’t match with the preferences of target market (Karachi) and leaving the brand as it is means that the market share will decrease over time and soon it will be vanished from the market. On the other hand altering the product according to the geographic region and preferences of people and using the brand name to gain a competitive

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edge will result in a reasonable market share and a success in a failed product which is also ruining the image in populace’s psyche.

TABLE OF CONTENTS

1.

2.

3.

4.

5.

6.

Tea Abstracts………………………… …..04 Company Background…………… …..……05 Re Launch of Brooke Bond Supreme……….06 An Introduction of Supreme Black Brew…...07 Current Marketing Situation……… ……...08 Opportunity and Issue Analysis… ………..12

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Marketing Objectives……………… ……15

7.

Marketing Strategy………………… …...16

8.

Projected Profit and Loss Statement……...22

9.

10.

11.

Action Programs…………………… …...28 Conclusion………………………… …....29

TEA Abstracts Today, tea is drunk by almost half of the world's population. Tea is undoubtedly the national drink of Pakistan. Tea is an aromatic stimulant, containing various polyphonic, essential oils and caffeine. The concentration of caffeine in tea ranges from 2.5% to 4.5% and it is this caffeine content that makes tea a useful stimulant. Tea is the beverage made when the processed leaves of the tea plant are infused with boiling water.

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In Pakistan, tea is only blended and packed, but not produced. Three basic categories of tea are marketed in Pakistan which are: -Mixture -Danedar -Chura Danedar is also known as leaf tea while Chura is known as dust tea. There are around five hundred flavors available in tea. The rural areas of Sindh are considered to be heavy consumers of dust tea. Punjab has a high consumption of leaf tea. It has more consumption than any other type of drink available in the market today. It is estimated that Pakistanis consume over 130 million kg of tea worth over 4 billion rupees every year. Despite the increasing emphasis on its hazardous effects on health and the continuously rising prices, due to the low literacy rate and unavailability of a better substitute, the demand and the consumption has increased over the years and is growing at an annual rate of 6%. Tea is an aromatic stimulant, containing various polyphenois, essential oils and caffeine. The concentration of caffeine in tea ranges from 2.5% to 4.5% and it is this caffeine content that makes tea a useful stimulant. Although second to coffee in commercial value, tea ranks 1st as the most popular beverage in the world. Tea is the beverage made when the processed leaves of the tea plant are infused with boiling water. Native to Southeast Asia, the tea plant, Camellia sinensis, is a small shrublike, evergreen tree. It's leaves have the chemicals, caffeine and tannin.

COMPANY BACKGROUND Unilever was created in 1930 when the British soap maker Lever Brothers merged with the Dutch margarine producer, Margarine Unie. At the time, an international merger was an unusual move. But the owners of the two companies could see that bringing together complimentary businesses with strong global networks would create new opportunities. Unilever (Pakistan) Limited Formerly known as Lever Brothers (Pakistan) Limited is by far the largest and most experienced fast moving consumer goods (FMCG) firm in Pakistan. It enjoys a very large market share in consumer goods, the lions

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share even, and is particularly dominant in tea and ice-cream. The largest competitor of Unilever in Pakistan is Procter & Gamble which also is a house hold name in consumer goods all over the world. Unilever’s principal activities are to manufacture and sell spreads and cooking products, ice cream, beverages and home and personal care products. Some of the products in the unilever line are Brooke Bond, Lipton, Lux, Rexona, Sunsilk, Surf, Blue Band and Planta.

RELAUNCH OF BROOKE BOND SUPREME The recent failure of Brooke Bond supreme is the prime reason for re launching Brooke Bond supreme in Karachi. The major reasons for the failure of Brooke Bond supreme is credited to the taste preferences of People of Karachi and to the major competitions that Brooke Bond is facing from

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Tapal Danedar, Tapal Family Mixture and from Lipton Yellow Label which is the family brand of Unilever along with Brooke Bond supreme.

Reasons Of Failure: Brooke Bond supreme is one of the leading tea brands all over Pakistan but the sales in Karachi have been very poor since its introduction. The major reason of it is : •

The major concern which prevails in the tea industry is the blend itself, and because of the preferences variation of people of different parts of Pakistan, one single tea can not be introduced country wide without any alterations. After being successful in Punjab, when Brooke Bond Supreme was launched in Karachi it was not altered, which resulted in the failure of the product

•

People of Karachi prefer Danedar tea more then any other tea because of the aromatic smell. This is the prime reason of the success of Tapal Danedar in Karachi.

•

Another reason that can be cited for the failure of Brooke Bond is the fierce competition it is facing from Tapal and Lipton Yellow Label. Tapal have the upper edge over Brooke Bond is because of the quality of the tea and with different assortments it has covered the shelf space. On the other hand Brooke Bond supreme just have 2 different pack sizes.

Introduction of SUPREME BLACK BREW Brooke Bond supreme have been re launched only in karachi considering the large potential market and penchant of the target market, we have

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executed the concept of multi-brands and launched Supreme as ‘Supreme Black Brew’ in Karachi. The name Black Brew has been kept to catch the eyes of people of Karachi who prefer their tea strong and aromatic. ‘Black’ gives an image of Strong and ‘Brew’ comes from beverage which relates to the aroma of the tea. Supreme Black Brew have been re launched with many different assortments along with heavy advertisements and promotional schemes as it is the only way it will entice the people to try it, who as of now are faithful to Tapal and Lipton. Supreme Black Brew has been re launched with different assortments to cover the shelf space to catch the people’s eyes. The different assortments are: Small Pack:

100 grams

Family Pack:

250 grams

Plastic Jars

400 grams

Tea Bags

50 Pieces

Tea Bags

100 Pieces

Stir Ready Stir Ready is the pioneer in its category and have been launched for the first time. It is as its name suggests ‘Stir Ready’. A tea bag is attached to a spoon which you stir and drink at the same time with more convenience and ease.

CURRENT MARKETING SITUATION

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Market Situation The tea industry of Pakistan constitutes the target market of nearly half of the population and yearly consumption is 130,000 tons. And the consumption rate is still accelerating at a fast pace, accumulates to be 6% annually. The populations of tea Consumers represent the income level and area of residence which constitute of upper middle class in volume of 1,950,000, middle class in volume of 5,200,000, lower middle class in volume of 3,900,000, lower class 1,300,000, calculated in percentage as 15%, 40%, 30%, and 10% respectively. The preference of buyers shows the concern in quality, aroma, strong ness and the nature of tea type. Normally the buying decision of tea is taken by household women aged between 30 to 60. This category belongs to the dissonance reducing buying behavior where there are not many varieties or differences are there however the involvement in the product is high. Due to the humid weather and the hectic lifestyle, tea works as an effective stimulant. Another reason for tea being a popular stimulant is that coffee, a close substitute of tea is comparatively expensive which most people cannot afford.

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Competitive Situation Unilever owns two of the most widely recognized product lines Lipton and Brooke Bond. The major competition facing Lever at present is from Tapal Danedar Tea, who is truly a market challenger. Lipton comprises of Yellow Label which is designed for upper middle, upper lower and upper middle class, which is a market leader in the industry, it comes in all the packages including hard packs, jars, and teabags. Lipton yellow label although the direct competitor of Brooke Bond Supreme comes in the family of Unilever so it is prone to its competing attacks. Lipton follows a massive promotion scheme to hold its share. Richbru is designed for middle and lower upper classes, and Pearl dust is designed for rural areas, mostly districts of Sindh where consumption of dust is extensive. They both are not stated as direct competitors of Supreme because they are targeting to different audience. Lipton has a market share of 25%. Brooke Bond comprises of Supreme and A1 karak Tea which is designed for lower classes, originally known as Kenya mixture and then A1 Kenya mixture. Brooke Bond has a market share of 9%. Tapal with the assortments like Danedar and Family mixture collectively has a market share of 22% overall and in Karachi it has 24%. Tapal is not only a direct competitor but can be stated as a only competitor because all the major market share holders belong to the family of Unilever except Tapal. Tapal also comes in various packages and consumes much of the shelf space in super markets and convenient stores. Tapal has the biggest advantage of its assortments as is served not only by mixture but also Danedar which is getting very popular day by day. Tapal has a good image in consumer’s mind and its price is also reasonably attractive. A sizable portion of the market is dominated by loose tea or unbranded tea. However, these brands are currently threatened by smuggled tea from Afghanistan which is available in the open market duty free. This has posed a lot of problems for genuine importers of tea who cannot compete with this tea because of its low price. These unbranded teas have the biggest market share of 40% because of its low price. The other brands including Sohni, Kohinoor, and Ispahani etc constitute the market share of 2% in Karachi.

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Distribution Situation This is the perfect example of two-level channel distribution which would be from the manufacturer to the distributor to the retailer. Normally the margin of distributor ranges from 8 to 10 percent per pack and the margin associated for retailer is 6 to 7 percent per pack. Although it differs from company to company and brand to brand because of the variation of the sizes and quantity disparity. Although established brands like Tapal and Lipton do intensive distribution which has a major draw back of price wars and image of the product sacrifices as it can be found in lower class geographical localities.

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Macro Environment Situation Due to the natural environment, Tea is not produced in Pakistan, but only blended and packed. It is imported from Kenya, Indonesia, Sri Lanka, China, Bangladesh, India and other countries. Agents in these countries purchase it from auction and export it to Pakistan. They work on commission basis, usually ten cents per kg. Unilever (Lipton) in order to get backward integration is experimenting in Swat and Mansera to produce tea. Although no significant results have been achieved, they are still trying. If they get successful all the products lie in the family of Unilever will enjoy the lowered prices of tea without having to pay the import duty which will win a competitive edge in terms of cost leadership. The legal environment posses some of the problems like Tea sales have continued to suffer from rampant smuggling of tea. Lever presently pays more than 80% as taxes on imported tea. This has made tea smuggling attractive. Not only unbranded tea but also established brands are also threatened by smuggled tea from Afghanistan which is available in the open market duty free. This has posed a lot of problems for genuine importers of tea who cannot compete with this tea because of its low price. The Socio-cultural environment plays a very massive role in tea industry because the choices and preferences of people in different provinces are varied to a great extent. In interior Sindh and Balochistan, there are heavy consumers of Dust tea, Punjab likes mixture and in Karachi Danedar is exceedingly popular.

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OPPORTUNITY AND ISSUE ANALYSIS SWOT ANALYSIS Strengths •

The recent alteration results in Strong blend backed up by even stronger brand image.

•

The packaging is very attractive, first time tea has been introduced in brown packaging

•

Unique sizes have been introduced for various segments including teabags, stir ready.

•

To compete with Tapal Brooke Bond has also launched its assortments in mixture and Danedar.

•

IBL distribution company, although charges high commission charges, offers efficient service in which it is made sure that product will be widely distributed, retailers will not experience shortage of products and the name IBL increases more value of the product.

Weakness •

It is a product being introduced in an already existing tea market with established brands.

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•

No competitive advantage can be brought in this industry. Only massive advertising and promotional activities may entice consumer for trial.

Opportunities •

The consumption of tea increases with the growth in population. At the moment, the population of the country is growing at a rate of 2.9% annually, and tea at a rate of 6%. This means that presently there is a considerable opportunity for the growth of tea in Pakistan.

•

The initial re-launch of Brooke Bond Supreme is limited to Karachi only, however, other principle cities will be taken into account in the future. Specially in Punjab mixture blend can be introduced under the brand name of Supreme. Slowly, Supreme will penetrate the market in other cities and expand its future market share.

•

Unilever is trying to produce tea in Pakistan. If this is successful, then much lower prices will be offered to consumers and competitive advantage can be gained in terms of cost leadership.

Threats •

A rigorous threat is the increasing number of branded and unbranded tea in the market with ample price difference. For that, established companies need to increase their advertising and promotional budget. There is a need to get a better shelf space and more retailer patronization for the company's brand.

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•

Unilever presently pays 80% as taxes on imported tea. This rise in import duty on tea by government is intended to discourage it's consumption, which possess to be a threat as it has resulted in higher prices for the consumers.

ISSUES ANALYSIS •

The market share of Brooke Bond Supreme in Karachi is decreasing day by day, would it be more suitable for the company to divest Supreme in Karachi and continue with Brooke Bond A1 tea.

•

If the decision has been made to re-launch Supreme, would it be reasonable to re-launch it countrywide.

•

Because of expensive shelf spaces in popular stores, would it be advisable for Brooke bond to introduce new Packages and bear additional costs or would it be more profitable for long term to introduce more packages and increase choice for end consumer.

•

Is it possible that the market share of Lipton (which comes in the family of Unilever) will be cannibalized by Brooke Bond Supreme which operates in almost the same target market as of Lipton, instead of gaining the share of Tapal.

•

The Brooke Bond that is being launched only in Karachi will differ from the rest, so would it create any discrepancies in consumers mind and disrupt the positioning or image of the product.

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•

Should price be set on the basis of competitor’s prices, premium on quality, or desired margin schemes.

•

Advertising and promotional vehicles should be different than before as there is an integration of upper segments have been included (super segments).

Marketing Objectives

•

Achieve target sales of 4000 kg/day. The strategy used to accomplish this objective would be to advertise by using all media vehicles selected, which will position Brooke Bond supreme to be the best quality beverage among target market.

•

After six months strategy of supreme will shift from selective distribution to intensive distribution slowly, there by maximizing the number of retailers.

•

Once the awareness has been created, the main objective will be to increase the market share. The aim will be to achieve an increase in the market share of approximately 15% in the first year.

•

Producing a positive cash flow hence increasing the growth rate of Brooke Bond will be another objective.

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MARKETING STRATEGY Overview •

According to our research target market in Karachi prefer Danedar and that is the reason why Tapal Danedar is so popular. So Supreme will be launched in both mixture and Danedar.

•

The pricing of our product gives us an advantage in the market compared to our competitors, as most brands are priced at Rs.46.

•

Introductory pricing will be offered for three months for Rs.36 (no profit basis).

•

There will be heavy advertisements done on supreme along with sales promotional schemes both for the consumers and the retailers. The aim will be to create awareness in the people and to induce them in trials of Supreme Black Brew.

•

Many assortments of Supreme will be taken out to cover the shelf space and hence creating awareness which will increase the choice and chance at the part of consumers.

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P

roduct

Tea is an aromatic stimulant, containing various polyphenois, essential oils and caffeine. The concentration of caffeine in tea ranges from 2.5% to 4.5% and it is this caffeine content that makes tea a useful stimulant. Tea is the beverage made when the processed leaves of the tea plant are infused with boiling water. In Pakistan, tea is only blended and packed, but not produced. Three basic categories of tea are marketed in Pakistan, namely

• Mixture • Danedar • Chura Danedar is also known as leaf tea while Chura is known as dust tea. There are around five hundred flavors available in tea. Fine (Dust) tea grains are distinguished by D, D1, D2. The codes assigned to these grains constitute the major categories of tea Danedar - BP1 + BP

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The rural areas of Sind are considered to be heavy consumers of dust tea. Punjab has a high consumption of leaf tea. According to our research target market in Karachi prefer danedar and that is the reason why tapal danedar is so popular. So Supreme will be launched in both mixture and Danedar. Because of the high brand awareness of Brooke Bond Supreme, It can not be changed during relaunch but if major alterations. However two different product mixes for same brand in different cities may lead to confusionand discrepancy, so concept of multi brands has been executed. The new name will be Supreme Black Brew which communicates the benefits of the product such that the product is strong in its blend and comes with two assortments demanded by the target market.

P

rice

The pricing strategy put to work is Markup Pricing Technique which states that after calculating the cost, required margin in percent should be included to determine the price, Moreover competition pricing is also considered. Therefore the price is marginally high than that of competitors to educate the consumers that the quality of the product is improved and of high quality. For an instance price of 100g is calculated as follows. •

Cost for 100 grams

Rs 16.0

•

Packaging cost per box

Rs

0.5

•

Distributors profit margin

Rs

3.6

•

Retailers profit margin

Rs

3.0

•

Total

Rs 23.3

•

Gross Margin

Rs

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2.8

Supreme Black Brew

•

Total Price

Rs 26.0

Pricing of other packages are 200gms for the price of Rs. 56/-, teabags 50 pcs are priced at 65, teabags are priced at Rs 125/- jar is priced at Rs 100Rs.

P

lace

The company is using a two-level channel, where Company will hire a distributor who will work on commission basis and further more the distributor will sell the product to customer which will ultimately be sold to end-consumers. That is the channel of distribution would be from the manufacturer to the distributor to the retailer. The distributor that we have decided upon is International Brands Limited (IBL). In first six months the Brooke Bond will use selective distribution technique where retailers will only be selected for distribution according to the geographical regions, where the existence of target market is at large

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Reward power will be excercised with retailes that is the the margin per pack will increase for different range of sales volume. Lajawaab employees the push strategy as it offers the distributor a margin of Rs 4 on each box of 250 grams. Similarly, the retailers are offered Rs 3 on each box of 250 grams. This margin is comparatively high as compared to our competitors. Within Karachi some of the major areas that will be covered are as follows: Clifton, Defence, Tariq Road, PECHS, Bahadurabad, KDA Scheme1, Saddar, Gulshan-e-Iqbal, Nazimabad and Garden.

P

romotion

In initial six months price will be slightly higher than other brands so to increase the prestige of the product, but after that schemes will be introduced like 10% free which enhances the affordability and does not instigate a price decrease which may result in the change of perception in consumer’s mind. N that can happen either in form of loss of quality or loss of sales.

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Supreme employes the push strategy as it offers the distributor (IBL) a margin of Rs 3.5/- to Rs 4/- on each Pack. Similarly, the retailers are offered Rs 2.5/- to Rs 3/- on each Pack. This margin is comparatively high as compared to our competitors.

The objective is to increase the sales ,

increase the awareness, and sustain preferences through the distribution network. At the same time, the pull strategy is also being employed. The consumers are being directly reached through the effective media planning Following are some of the schemes included in the plan

•

Samples in form of sachets will be distributed to retail stores on the basis of customers buying items more than 100Rs will be given 2 Sachets to induce people to try the new product

•

If customers bring 10 packs of supreme they will be getting 200 Rs card worth of balance

•

Dispensers will be placed in 10 different localities of Karachi, where the existence of our target market is at max.

•

Top Retailers will be given 100 Packs per month for three months 300 Packs

P

ackaging

In fast moving consumer goods packaging and labeling plays an important part. However there are very sensitive decisions have to be made for

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instance color scheme, types of packages, distribution and retailer margin on different packs, communication criteria and etc. Different Packages of Supreme Black Brew 1. Hard Packs ( Small ) of 100g 2. Hard Packs ( Family ) of 200g 3. Jars of 450g 4. Economy packs of 500g 5. Teabags of 50 6. Teabags of 100 7. Stir ready packing.

The color scheme has been chosen with careful consideration of red and black gradients. Originally Brooke bond Supreme served only lower and middle classes. Now that upward stretch has been done and upper classes has also been targeted, so its necessary to communicate high prestige through labeling. Moreover red and black scheme is chosen to show the strong nature of its blend.

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PROJECTED PROFIT AND LOSS STATEMENT Budget has been done for the period of three months

Advertising Expenses TELEVISION Advertising campaign will be featured on television emphasizing on the new extension of supreme.

The ad will accentuate on the differential

features and benefits of Supreme black brew and there by assent with slogan to enhance the sales of the product. The product will be advertised on PTV and GEO. The preferred time would between 8:00 - 10:00 at night, as this is the time slot where maximum prospective consumers are watching television.

The reason being that

dramas, news and other popular programs are telecasted at this time.

Release schedule & cost of production (30 sec) T.V ad

Rs 250,000/-

Release on PTV on daily basis 02 fixed spot, alternate days. @ 38,600/- at 7:40, 9:30 pm

Rs 3,474,000

Release on GEO on daily basis 01 fixed spot, daily. @ 14,500/7:50, 9:15 pm.

Rs 2,610,000/-

Total Brand Management

Rs 6,344,000/24

Supreme Black Brew

PUBLICATION MEDIA As we are targeting upper as well as middle classes Advertisements will be placed in magazines and newspapers, both in English and in Urdu.

NEWSPAPERS Initially It is very necessary to communicate the new extension of the the product it should be profoundly advertised in leading newspapers like DAWN, NEWS and JUNG. At first, the third page will be used, and the size of the ad will be half of 1/4 pg. This will create awareness and attract attention.

DAWN on 3rd page (1/8 (60cm) pg colored) @ 198,200/Once a month on Sunday

Rs 594,400/-

JANG on 3rd page (1/8 pg colored) @165,600/Once a month on Friday

Rs 496,800/-

Total 1,091,200/-

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MAGAZINES Due to high geographic and demographic selectivity and its credibility and prestige it is preferred that this media vehicle should also be selected. The following magazines have been considered – Herald

HERALD (1 pg colored ad) Second Half, One insertion monthly @ 25000/75000/-

Rs

SHE (1 pg colored ad) One insertion monthly @ 8000/24000/-

Rs

MAG ( 1 pg colored ad) One insertion weekly @ 2000/24000/-

Rs

Total 123,000/-

Rs

OUTDOOR MEDIA Posters will be printed and distributed among retail outlets. Cut outs will be provided to retailers in order to be put up in the air space. Four billboards of Supreme Black Brew will be set up. One on Shahrah-eFaisal, one near FTC, one near Schon Circle and one on Hasan Square to get high repeat exposure.

Posters and Cutouts 2 Billboards will be placed at Shahrah-e-faisal, Clifton Brand Management

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Rs 200,000/-

Supreme Black Brew

Schon Circle Cost of Billboard 10’ X 5’ @ 51000 per board

Rs 153,000/-

Rent for three month @ 180,000 and 250,000

Rs 1,290,000

Total 1,643,000/-

Rs

SALES PROMOTION SAMPLES Samples in form of sachets will be distributed to retail stores on the basis of customers buying items more than 100Rs will be given 2 Sachets to induce people to try the new product.

1000 sachets per month for 3 months 3000 sachets. Cost of one sachet

Rs 2.64

Total Cost

Rs 7,920

PATRONAGE AWARDS If customers bring 10 packs of supreme they will be getting 200 Rs card worth of balance.

Total Cost of Cards

Rs 32,000

FREE TRIALS

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Dispensers will be placed in 10 different localities of Karachi, where the existence of our target market is at max.

Dispenser cost @ 1750 Cost of ingredients

Rs 17,500 Rs 6,800

Total Cost of Free Trial

Rs 24,300

SCHEME IN JARS TO INDUCE THE SALES

Scotch brite @ Rs 8.5 For 3 months Accumulated For 81 Pieces.

Rs 688

Cash Rebates Scheme OF SCRATCH CARDS IN EVERY FIFTH PACK OF TEA BAG

Cost of Scratch cards Total teabags sold with Scratch cards

Rs 100 Rs 107

Total Cost of scheme

Rs 10,700

SCHEME FOR RETAILERS Top Retailers will be given 100 Packs per month for three months 300 Packs

Cost of 300 Packs

Rs 6,600

Grand Total of Sales Promotion Brand Management

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Rs 82,208 Supreme Black Brew

COMBINED EXPENSES INCURRED DURING FIRST THREE MONTHS TELEVISION COST NEWSPAPER MAGAZINES OUTDOOR CONTINGENCY

Rs 6,344,000/Rs 1,091,200/Rs 123,000/Rs 1,643,000/Rs 500,000/-

Total

Rs

9,701,200/-

SALES FORECAST Karachi's population

13m

Target Market

11m

No. of households

1.8m

Target Market Share of Supreme

10%

Consumption per month

180,000 households

Avg consumption of households/month

0.75kg

Consumption of Supreme/month

135000 kg

Sales per day (Rs)

720,000

Sales per day (Kg)

4500

Sales per year (Rs)

259200000

Sales per year (kg)

1620000

Sales per year (Kg)

1620000

Revenue per year (Rs)

421,200,000

Sales per 3 months

405000 Kg

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Revenue per 3 months

105,300,000

Profit in three months

10,530,000

Action Programs •

On August 2nd The Product Brooke Bond will be launched at the venue AMI main campus and its scale would be Karachi wide.

•

On August 17th, September 7th, October 5th advertisements will be published in leading newspapers.

•

After six months of Launch, the company will commence a downward stretch, and will launch a dust tea which will be targeted to lower class income segments and interior sindh.

•

On alternate days advertisements will be launched in two different channels (PTV and GEO) on the basis of two fixed spots, ie 7:30 and 9:30.

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•

Advertisements will placed on Magazines like Herald, she, and Mag, once every month.

•

On month end Distributor will visit each retailer and give the compensation on sales promotion schemes, company has chosen

•

The company will participate in melas, trade shows, and exhibitions of all kind to increase the awareness of the new launch.

Conclusion With reciprocity of understanding and strength of character as the foundation of Supreme Black Brew philosophy, Brooke Bond takes the lead as a fore-runner in sophisticated, ethical consumer marketing, selling and distribution of tea throughout the world. The tea industry of Pakistan constitutes the target market of nearly half of the population and yearly consumption is 130,000 tons. And the consumption rate is still accelerating at a fast pace, accumulates to be 6% annually. Looking at an extensive target market of eleven million one can say that there is still a chance to compete with already established brands. The pillars of this project has been laid

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on to this very foundation That our product is positioned as a quality product, which is easily affordable. Although the task of educating and spreading awareness maybe a difficult task, but the new brand will be backed by the well-built identity of its parent brand. The new brand which matches the preference of target market will successfully commit the task of delighting customers and at the end of the year, it will get a success to gain market share of 15% and capitalization of 6000g of Black brew everyday.

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