Envoirmental Scannig

ENVOIRMENTAL SCANNIG 1. POLITICAL FACTORS: In Pakistan our political condition is not so good. There is instability of government rules in some areas of Pakistan due to bad law and order; many companies are leaving the Pakistan and transferring their investment to other countries due to unpredictable atmosphere i.e. tullow oil. Government is trying its best to overcome these problems but it will take time. So recent political conditions of Pakistan is not suitable for our project 2. LEGAL FACTORS: Fuze Company deals with energy drinks, i.e. juices and tea. These products are purely halal. All material used in the production of these products are according to the rules and regulations of ISLAM. There are not any such laws which prohibit our project. So this will be beneficial to invest in Pakistan. 3. ECONOMICAL FACTORS: GDP of Pakistan decreased in the current situation, GDP growth for fiscal year 2008-09 recorded as 2 percent against the budgetary target 5.5 percent. It showed 2.5 percent negatively. Inflation rate is so high and the unemployment rate is also so high. So due to instable political conditions, economy of Pakistan is also affected. Due to these factors COCA COLA has earned low profit as compared to previous years. Net foreign investment in Pakistan fell 42.7 percent to $2.21 billion in the first 10 months of the 2008/09 fiscal year compared with $3.86 billion in the same period last year. So it is not a good decision to invest more in Pakistan. 4. CULTURAL FACTORS: Pakistani culture is affected by globalization and the media. Now Pakistani culture is going to change as western. A major part of our population is habitual of traditional tea (black & green). They prefer most to this tea than cold tea which we are offering. The culture is going to change but it will take time to change the preference of tea. So Pakistani culture doesn’t suits to our white tea, because it is available in the form of energy drink.

5. COMPETITIVE ANALYSIS: In Pakistan, there is no direct competitor of our white tea because no company offered such type of tea. TAPAL offered cold tea recently but it faces lot of problems which become the cause of there product failure. Unilever also have lipton cold tea in its product line but they don’t launched it in Pakistan now. So lipton can also be a competitor in future.

CONCLUSION: According to the above analysis the legal and competitive factors in Pakistan are suitable for the fuze beverage, but the current political and culture conditions of Pakistan are not suitable for the fuze beverage so we decide that we can not launch our product in this situation because of this lot of risk factor involve that become the cause of product failure due to which our company suffer heavy loss. Although in Pakistan the arm forces doing operation in NWFP against terrorism that’s why no one country is willing to make investment in Pakistan Another drawback is that people of this country mostly prefer to take traditional tea mean black & green tea, so this situation takes time to switch them from traditional tea to cold tea (white tea). Tapal also launched cold tea but it faces failure due to low demand of cold tea. Unilever has also lipton cold tea in their product line but they don’t launched it due to negative feasibility report.

PREDICTION: In Pakistan the political conditions is unpredictable due to mismanagement of government. In many areas of Pakistan some military operation affected the political and economical condition of Pakistan. Due to these factors the political and economical condition of Pakistan is not predictable. If we control these factors which affects the political conditions and economy of Pakistan then Pakistan will be preferable to invest. In USA, people are health conscious. They prefer most to quality and brands, and always give importance to readymade goods because of their easy use. But in Pakistan people adopt traditional ways for acquiring food. They don’t give importance to packed food or branded food. But preferences are changing day by day and people are becoming aware to the branded products and their quality. But it will take some time to get maximum attraction of the population.

MODES OF ENTRY: We select IMPORTS as a mode to enter in to any country. Importing is basically the easy approach to going internationally & globally, which involve only selling of products

WHY WE SELECT THIS MODE: 1. COST EFFECTIVE: We select it because it is a simple mode to enter in to any country and it is the initial stage of introducing the white tea in Pakistan due to this we save our cost. Our company is operating in different countries of the world but all the countries still doing importing of fuze drinks from home company because it the strategy of home company to avoid from heavy loss that’s why company can’t adopt any other mode. 2. LESS EXPENSIVE: If company adopt any other mode like franchising, licensing etc than lot of risk factors involved like transfer of technical know how and expensive. The operations of our company are on limited scale on this basis we adopt import mode and it is beneficial for our product because it is less expensive. 3. SPEEDY ENTRY: Imports are easy and fast mode to enter in any market, because in imports we just get the products from the production department which is located at any other country, and distribute our product for sale purpose. By imports we can easily distribute our products effectively and efficiently to the whole market. 4. LESS RISKY: Imports are less risky because we involve minimum operations for the business. We don’t transfer our production department to the host country. So in case of loss or failure of product, we can easily windup our business. So the risk factor is very low in imports.

LOCATIONS: We will launch this product in the main cities of Pakistan o Islamabad o Lahore o Karachi

SEGMENTATION: 1. INCOME LEVEL: We will choose this segment for our product because of its price that is 1.5$. So the income level which we will target i. upper class ii. upper middle class iii. middle class 2. AGE: White tea is a health conscious product that is used for the good health. So it can be used by any gender and any age group. So we will target the segment for this product which include a. children b. youngsters c. elders 3. PSYCHOGRAPHIC: In psychographic, we check the values, attitude and life style of the people. So we will choose this segment because the psychographic factors of these countries are favorable for white tea. The lifestyle and attitude of these citizens shows that they prefer most to those products which are ready to consume. White tea will be available as a drink. So it will be attracted by this segment.

MARKETING PROMOTION: For the market promotion of white tea, we will adopt market pull strategy. Because coca cola is a world famous company which deals with beverages products, as a subsidiary company of coca cola, it will adopt the marketing process of coca cola. So we advertise white tea as the product of coca cola. So we will use the marketing channels as i. T.V ii. News papers iii. Internet iv. Flyers v. billbords

DISTRIBUTION CHANNEL: White tea is the product of Fuze Company which is the subsidiary company of coca cola. As the parent company coca cola supports fuze for its marketing and all others business operations, so in Pakistan we will use the distribution channel of coca cola. Coca cola has its distribution centers and vehicles for the distribution of its products in the different cities. Coca cola has divided the whole area of Pakistani market into different regions and it has a specific distribution center in that region

EXPANSION PLAN: After the successful launch of white tea in Pakistan, if we found the desire demand of white tea in Pakistan, we will be willing to establish our production department in Pakistan to meet the rapid demand in Pakistan. Coca cola is already successful in Pakistan and they have their best channel of distribution and production departments. So we will transfer our technology and production equipment in Pakistan for cheap production of white tea and other products that we can launch in future. As the future demand will increase and many competitors will come into the market. Fuze will start it whole production here due to cheap labor and feasible factors such as govt. policies. As the fuze will move to other neighboring countries in future so it will also exports its product to that countries. So the production department in Pakistan can be used to meet the demand of neighboring countries at initial stage.