Final Marketing Report

Product Launch Report

PREFACE

It is a great pleasure for us to present this report as requirement for the completion of MARKETING course. The report is for the launch of a new product “

”. The budget for this business is Rs 15 M, inclusive of Rs

2.5M that is allocated for advertisement and promotional activities. Commencement of the project was very difficult. Finally we came with this idea of launching this product. This freshness.

is a symbol of originality and

will be a name that will be a guarantee of quality that will

be refreshing for everyone that adopts it. It is said that “The known is finite, the unknown infinite; intellectually we stand on an islet in the midst of in illimitable ocean of inexplicability”. In the light of this saying, we have no doubt in saying that knowledge of marketing is in its real sense can be a service to mankind. Through the marketing knowledge and skills we identify the needs and want of people, ultimately to serve them by providing products and services, which they really need. In real life, we usually see that the diabetic person either in house as family member or as guest somewhere cannot join the others while something sweet is served. At that moment what they feel cannot be expressed through words. The closest we cam come to express is a feeling of isolation and of being misplaced. 1 DADA BHOY INSTITUTE OF HIGHER EDUCATION

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The need for Diabetic people was identified by our group and the embarrassing feelings of these people inspired us to produce a Sugar Free Juice “

”, not only to create a feeling of belonging but also a feeling of

acceptance of their own disease by them.

is not only for these people

who are forced to look for alternatives but is also for those who are diet conscious. Our

will not only eliminate the feeling of isolation among the

diabetic but will also provide added healthiness and sparkle to their lives. However how well the people will receive our product still remains a question. Until we get a proper feed back from ultimate consumers it is inscrutability that we face at the moment.

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LETTER OF ACKNOWLEDGEMENT

We would like to take this opportunity to extend our thanks to; Dr..Mohammad Afzal Nobahar ,Secretary General Diabetic Association of Pakistan & Ex. Director General Health of Pakistan for providing us data regarding diabetic patients in Pakistan, We also thank Al-Mustafa Diabetics Centre, Gulshan Iqbal and Mr.Raza, representative of Lilly Pharmaceutical Co. of Pakistan, for providing us opportunities to interview diabetics’ person, which proved to be the basis of our research. In last we would like to thank to our teacher Miss Reema Frooghi, we feel that without his guidance it was not possible for us to produce this report and launch

.

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Product Launch Report

GROUP MEMBERS

SUBMISSION BY:

Syed Atta-UrRehman Ahmed Nawaz Iftikhar Hussain Fahad Hashmi Ajit Kumar

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1. EXECUTIVE SUMMARY

In our market segment, there is a wide range of different types of Table serving SYRUPS (Juices). These juices are served in almost every house on different occasion to the guests. The serving of the juices to guests is part of our culture and in addition to being economical too, as compared to fresh fruit juices and soft drinks. Many companies have giant position with huge market shares and wide product mixes for example Hamdarad (Waqaf) Pakistan, Ahmed Food Industries, Mitchell’s, Qershi, Shezan, Quice and some other local juice companies.

There is a substantial demand for such types of juices and the demand is increasing day by day due to change in climate, which is getting hot for a longer duration of the year, Economical Factors, Health awareness and due to awareness of the people.

People especially in big cities adopt various ways to protect themselves from sunstroke and hot climate. This includes drinking of cold water, juices, squashes, ice creams or soft drinks and lassi etc.

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Management is profit oriented and believes on long term planning, in terms of new products, future’s market, growth, and we will try to stress wants of buyer.

After researching of market, regarding the predilection predisposition of the people towards table serving, we decided to launch a new range of SUGAR FREE JUICES

with product mix of SUGAR FREE JAMS and

MARMALADES in the market for those consumers who are overlooked by these giants or competitors who are the major market capturers. The special feature of

is not only a provision of healthy juice for diabetic patients

but it is also suitable for normal consumers with its taste just like a normal juice.

Firstly, we will launch

in Karachi Market. We have chosen “Niche

Market” due to limitation of our budget. We have allocated Rs2.5M on advertisements and sale promotion campaigns out of Rs 15M that is our total budget.

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COLLECTION OF DATA Basically, market research depends on two types of data that are: Primary Data  Secondary Data Primary Data Primary data is collected from personal/direct contact through interview on phone or/and random sample interviews in the shopping centers and special conducted surveys at various Diabetic Centers and have interviewed diabetic patients. From which, we gathered generous information about their need and wants and inferred possible behavior towards of our sugar free product.

Secondary Data Secondary Data is collected through Newspapers, Reports and Magazines to analyze the competitor advertisement campaign and policies. These sources provided some very valuable data, which enabled us to formulate

and move ahead with this project.

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ENVIRONMENTAL MONITORING a) External Macro Environment 1. Demographics Demographics refer to the characteristics of human population, including such factors as size, Distribution and growth. is for all age groups, especially targeted for diabetic patients. 2. Economical Due to uncertainty of economic conditions, we will charge reasonable price of our products.

3. Competition A company’s competitive environment obviously is a major influence of our marketing program. i)

Brand competition.

ii)

Substitute Products.

iii)

Price Competition.

4. Social and Cultural force. Hospitality is not only the part of our culture but our religion also educates for the same. Any change in our social and cultural structure would not have any major impact on hospitality/ hosting attitude of our population. We expect will go long way as it is strongly backed by cultural religious and social factors plus added feature of sugar free. We expect it will be millennium juice.

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5. Political and legal forces. Although Karachi city’s political and legal situation is not as good as it should be. We don’t feel any entry barrier of in our target market. 6. Technology. Technology has a tremendous impact on our life styles, our consumption patterns and our economic well-beings. To meet the challenges ahead we will process through latest technology. The product will be packed in best quality plastic bottle of modern shape with easy raining and carrying style with beautiful label on it. To capture lower class consumer market we will also introduce our Juices in sachets of different Weights to be classified as for five, ten guests serving. The second packing would be for lower and middle classes.

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b)External Micro Environment A market may be defined as a place where buyers and sellers meet, goods or services are offered for sale, and transfers of ownership occur. The market should be the focus of all marketing decisions in an organization. We consider three specific factors:  People’s need.  Purchasing power.  Buying behavior. After analyzing, we decided that we will make a special product with reasonable price and quality of the product will be controlled, because such types of products are associated with low involvement. 1) Suppliers. A business can not sell product without being able to make or buy it. That’s why the people or firms that supply the goods or services required by a producer to make what it sells are critical to our Marketing success. We had meeting with the fruit formers and they are agreed to supply us raw material for our product on bill-to-bill credit basis. We also held meeting with other integrates required for preparing of our product and concluded discussion ending with the terms and conditions most suitable for our current needs. 2) Marketing intermediaries. Marketing intermediaries are independent business organization that directly aids in the flow of Goods and services between a marketing organization and its markets. For this purpose, we will give advertisement for appointment of experienced distributors. 10 DADA BHOY INSTITUTE OF HIGHER EDUCATION

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c) Organization’s Internal Environment. Resources Management We believe in teamwork, therefore, we distributed different departments between our groups and unanimously as under  Syed Atta-Ur- Rehman

Chief Executive.

 Ms. Reema Frooghi

Director Marketing.

 Mr. Iftikhar Hussain

Director Finance and Legal Affairs

 Mr. Ahmed Nawaz

Director Human Resource.

 Mr. Fahad Hashmi

Director Production.

Capital Rs. 10,000 Million (Rupees: Ten Million only) Technical Staff We will hire the staff through News Papers advertisement. Labor Labors are easily available but they will require some training, for this purpose we will arrange one month training program.

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Location Project will be located at SITE area, an ideal location for Food Industries in Karachi. Planning is the management process, as applied to marketing, consists basically of:  Planning a marketing program.  Implementing it.  Evaluating its performance.

In short, Planning is deciding now, what we are going to do later including how and when, where and for whom. A clear purpose for marketing research needs to be identified before any action is taken. This purpose normally relates to a problem, issue or opportunity facing the organization, which is causing uncertainty as to which direction to take. When the purpose of the research is clear, it is possible to set specific objectives that will indicate what the research aims to find out and to identify the data (facts and figures) required to achieve those objectives.

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STRATEGIC COMPANY PLANS 1. Mission Statement: “To produce health care food products especially for Diabetic Patients with consumable feature by general consumers. And to build ‘s Image in Health Care food products” 2. Achieving Objectives: The aim can be achieved through / by:  Producing Quality Product with use of latest Technology.  Maintenance of Highly hygienic processing environment.  Health Standards.  Reasonable pricing.  Development of Brand Equity.  Building of Company’s Image in Health Care food products. 3. Continuous Research & Developments 4. Current Situation.  Giant competitors.  Low economic conditions. • Inflation. • Govt. Policies. • Financial Risk. 5. Objectives. To be able to:  Growth in Profit.  Develop Market Share.  Next year, we will introduce in other big cities.  Second year, we aimed to enter in new market all over country by creating awareness of our products and by increasing our productivity. 6. Strategies.  Every department has their separate objectives. 13 DADA BHOY INSTITUTE OF HIGHER EDUCATION

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 Coordination and cooperation between every department.

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STRATEGIC MARKETING PLANS a) Situation Analysis. “After analyzing situation and being new entrant in the market, we will fix price level of where it will give more attraction and satisfaction to the consumers with additional features of “ b) Marketing Objective  Developing Market Share.  Advertisement campaign.  Create Awareness. c) Positioning and Differential Advantage with its different packaging, easy carrying features and sachets packing will differentiate from others. The taste and unique feature of sugar free product will factor to gain the position in the market. d). Target Markets and Market Demand  Our targeted market is big cities of Pakistan like, Karachi, Lahore, Rawalpindi, Faisalabad, Hyderabad cities. In the cities, majority people are very busy and social and economic problems have impact on their lives and health. Tension feelings are resulting in increase of Diabetic Patients day by day. is of great attraction for them, which they need refresh them with added feature of health care.

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MARKETING MIX

a) PRODUCT

New Sugar Free, energy filled Juice Convenient Durable plastic bottle with easy carrying features Sachet packing of different weights Ingredients: Fresh fruit juices (sugar extracted) Aqua Extract of Flowers Herbs (imported from P.R. of China) Vegetables  Different flavours     

b) PRICE  When analyzing market situation we searched about the prices of our competitors and we found that the minimum price of any Juice is not less than Rs: 70/-. Therefore we decided to fix the price of at consumer attraction level of Rs: 60/- per bottle.

c) DISTRIBUTION  During a meeting with distributors we examined their distribution channels, we created our new distribution channel as under: PRODUCER  WHOLE SELLER  RETAILER  CONSUMER KARACHI REGION

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The region will consist of 5 zones: 1) 2) 3) 4) 5)

Karachi East Karachi West Karachi Central Karachi North Super Markets Zone (Whole Karachi)

The areas of 1-4 zones are those, which have been defined in the provisional government schedule of administration. Super markets zone will deal only with supermarkets/big stores of Karachi. d) PROMOTION:  Advertisements on T.V., newspapers, posters, and other activities.

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RESEARCH OBJECTIVES It is necessary to collect complete data/information before launching a new product. Our research objectives are:    

An analysis of the current market Consumers buying behaviour and purchasing power SWOT analysis Competitors

CURRENT MARKET SITUATION: Before launching our new product we collected information regarding current market situation of Juices. For this purpose we interviewed a cross section of population and diabetic patients on random basis. For this purpose we visited Diabetic Centers, Super Stores, restaurants and hotels etc. Before starting of this project we decided that we would produce a product completely on market orientation. We cannot cut / alter consumer’s needs and should make our product meeting their demands and needs. After research and completion of our survey we decided to introduce SUGAR FREE JUICE, which is full of vigor and which gives more satisfaction and refreshment to the patrons. The main point of is that it is not only for Diabetic patients but also caters to the needs of weight conscious people.

CONSUMERS BUYING BEHAVIOUR AND PURCHASING POWER Since is a low investment enterprise, we have fixed a lower price for our product, which should attract a larger cross section of consumers. This will give us a minimum profit at the launching stage.

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SWOT ANALYSIS a) Strengths:  We have two market segments: For diabetic patients and weight conscious people.  Our human resource, which consists of experienced and professionally skilled executives, is our greatest strength.  We have good quality product with reasonable price.  Durable and unbreakable packaging.  Different weight packaging and sachets of for lower class consumers.  In the past diet products introduced by other companies have not grown in our market due to indifferent advertising and the suspicion of consumers about the chemicals used in their products, whereas we have listed our natural ingredients on all our packaging and will stress this point in our advertising for .

b) Weaknesses: is completely new product and our brand is unknown.  Most of the customers avoid using new products.  Unfortunately the area where the company’s factory is located may adversely affect our production due to frequent load shedding and shortage of water. 

c) Opportunities:  Raw material is easily available  Literacy rate is increasing day by day  Through international media people are well aware about these types of products. 19 DADA BHOY INSTITUTE OF HIGHER EDUCATION

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 We have opportunity of creating awareness of

among all populations inclusive of diabetic patients. This opportunity will result in increase of demand of our product.

d) Threats:  Economic condition of the country  Giant competitors  Seasonal particularly in Northern parts of the country  Law and order situation e) Competitors:  In Juice industry we are confronted by giants like Hamdard,

Ahmed Foods, Mitchell’s, Shezan and soft drink companies like Pepsi and Coke, because of their existing strength in the market. The soft drink companies already have their diet products in the market.

Market Share of Competitors (Sales volume of 2008-2009) S.No.

Name of Company

Sales Ratio

1.

Hamdard (Waqf Pakistan)

42%

2.

Ahmed Food Industries

17%

3.

Mitchell’s

17%

4.

Shezan

15%

5.

Qarshi

9%

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ADOPTION STAGE a) AWARENESS Even though this product is not new for the market, its features are new because it is the First Sugar Free Syrup. We do not foresee any problem in developing awareness about . In our promotional activities, we will highlight its feature. Moreover, our company is new and our brand does not have any market share, for this purpose, we have designed an effective advertisement plan through consultation with Modern Advertisers. b) INTEREST:

Due to low involvement product, people buy it habitually and do not seek information about low involvement products. Is for serving guests and for household use therefore, people will purchase it very frequently in hot/summer season. We will produce it in different tastes and different packaging, which is something the competitors have not, and we hope to attract a lot of consumers. c) EVALUATION: The Company will lay stress on the product availability and since competitive advertising strategy will be used, this will induce customers to taste and evaluate the product. d) TRIAL: We will affix temporary stalls at different shopping centers like Clifton, Tariq Road, Zaibunnisa Street, Haidry and at picnic spots on holidays for free on the spot trial of . e) ADOPTION: Better quality, reasonable price and effective advertisement will lure customers to use more regularly and frequently. 21 DADA BHOY INSTITUTE OF HIGHER EDUCATION

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f) CONFIRMATION:

After six months we will gather data from consumer markets regarding . g) DEVELOPING EFFECTIVE COMMUNICATION: Communication plays a vital role in business. Effective communication is very necessary for every organization to achieve its goal. Therefore for effective communication we will take under mentioned steps:     

Identifying the target audience Choosing a message Formation Media Timing

h) IDENTIFYING THE TARGET AUDIENCE: Our product is for the masses but especially for diabetic patients. Therefore every person is our target. As per data provided by Dr. Mohammad Afzal Nobahar, Secretary General of Diabetic Association of Pakistan and ex-Director General Health of Pakistan: COUNTRY’S DATA TOTAL POPULATION OF PAKISTAN

DIABETIC PATIENTS

INCREASING RATIO EVERY YEAR

150 million

More than 20%

More than 8%

10 Million

More than 9%

More than 3.5%

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The Product is not new of the target market, because they are already using it, but there is a strong need the Company creates brand awareness of the product. i) MESSAGE: In advertisement, message plays a very important role. For this purpose effective communication is necessary. Attributes of products with different flavours with emphasis on new packaging will be advertised in newspapers and electronic media. j) CONTENT: A Defined feature of products is that it is Sugar Free. Our product provides full satisfaction to the consumer due to its good taste and as it controls sugar level. k) STRUCTURE: Ceremonies, and housewives and workingwomen will be the target market. All out efforts will be made to provide information about the ill effects of the competitors’ products. l) FORMAT: The communicator needs a strong format for the message. The Company will advertise the product on electronic media and print media. For print media, the Company has to emphasize on the designing of unbreakable bottle and sachet packing and rational technique will be used for advertising with slogan: m)

MEDIA: Our Company is targeting consumer market. So Company will sue both ways of communication, personal and non-personal communication for consumer market. But personal communication system will be used in very little way. Our hired employees will distribute handbills to the people at public places. 23

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Product Launch Report

Moreover, in non-personal communication, we will place advertisements in Newspapers and on Television. n) AD TIMING: The selection of Ad timing will be before starting of news at 9.00 p.m. because at this time most of our target customers are watching news. o) FACTORS IN SETTING THE PROMOTION MIX After developing the promotion mix, the Company has to consider the following factors:  Types of Product Market: Advertisement of Juice is very essential to the consumer market, and basically, we are targeting the consumer in both ways we will have to allocate funds for the advertisement.  Push Strategy: We will give 15% attractive discount to our distributors much higher than the competitors; this will increase their interest to sell products. We hope this strategy will definitely push our product.  Pull Strategy: Through pull strategy, we will try to define the real attributes and features of our product and give reasons as to why people should prefer products as compared to the product of our competitors as our product has natural ingredients as compared to our competitors as their products have chemicals.

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PRODUCT LIFE CYCLE Although, juice is not new for market, but its features and brand have no market share and people have no awareness about its SUGAR FREE attribute. For this purpose, we are using only following tools to create brand and product awareness.  Advertisement  Sales promotion  Public relation Advertising Advertising, collective term for public announcements designed to promote the sale of specific commodities or services.

For

, we take following steps:

Set Advertising Objectives. Our aim to inform, persuade or remind to consumer, because the target market is already aware of the product and they are already using it, therefore, it is necessary to us to high light our products main features i.e. its being SUGAR FREE. Advertising Budget is new for consumer market, therefore we need a large campaign spending in order to built brand awareness and getting market share 20% of our total capital is going to promotional activities. Strategy • Creating Message • Media 25 DADA BHOY INSTITUTE OF HIGHER EDUCATION

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Message (15-second ad at TV) We will deliver and define complete message to our target consumer ad before create advertising message, we will have to describe the following: Changing Message Environment Due to critical situation of the country and political changes, people watch television; especially watch news. Message Strategy For electric media: First seen on our ad: In birthday party, people enjoining with juices /soft drinks, But one person whose face is showing an unhappy expression, then one of the guests asks that person; Hello Khan, how are you, why don’t you take any sherbets? Khan responds “Dear kamran, I am fine, but I and my wife both are Diabetic patients and as per doctors advise we cannot drink any juice.” Then host enters and says to Asif,”why didn’t you tell me earlier”, Then host call waiter to bring new , for Mr. and Mrs. Asif, And also speaks about our product to Mr. Khan telling him that is sugar free and he can drink it frequently without any fear. Then Khan Face expressions change and he says now I am also included in the party of normal people and can enjoy every party. After which, side comes with background voice that: A magic innovation for every one especially for diabetic Patients, available in different flavors, “FEEL TERRIFIC WITH Pineapple, and mix fruit.

”

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Slogan: Pakistan ka phela sugar free sherbett Music …. First voice Sherbett, Maza, aur sehat sath sath Music…… Second voice Sub ka leay (five times repeat ion logo

appears)

Different flavors make the consumers brand loyal and lure their heart. The above slogan gives the meaning that our is not only Juice, it contains, some herbal Essence for health and freshness, which are helpful in controlling the sugar level. For Print Media: Same slogan with brief defining features with doctors recommendations showing attractive unbreakable different flavors bottles to catch and turn buying behavior of consumers mind. Other promotional Activities  By Hand bill: We arrange to distribute handbills to people giving brief definition of our Products and its benefits and attributes and differentiate from exiting available in the market.  By short-term incentive:

Umra ticket, offered to the consumer by balloting. Key chain, gaggles and handkerchief offered as gifts. Two bottles Bundle packaging offered on discount rate. Public Relations For succession of every product, it is necessary to leave a good image in the mind of consumer. It provides a long term benefits if kept in constant Process. From this way, people are informed by all about the . Though features and column written by some authenticated writer, which is also related with same field, for this purpose, we will publish Interviews of few doctors’ field experts.

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ADVERTISMENT PLAN AND BUDGET Duration

Media

Expenses

December to January February to April May to August September to November

Newspapers TV Stalls Other Activities

Rs. 12,000 Rs. 1,800,000 Rs. 60,000 Rs. 127,500

ADVERTISING CHAIN December to January

February to April

NEWSPAPERS

TELEVISION

May to August

May to August

September to November

STALLS

Other Promotional Activities

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BREAKEVEN ANALYSIS S.No.

Particulars

1

Amount

Variable Cost Raw material Labour Unbreakable Bottle Packaging and Labeling Other Costs (Utilities) Total Variable Cost

2

Rs. 19.25 Rs. 3.25 Rs. 2.00 Rs. 2.10 Rs. 3.00 Rs. 29.60

Fixed Cost

Rs. 450,000.00

Total Cost

Rs. 450,029.60

Formula of breakeven = Fixed cost / (selling Price – Variable Cost) = 450000 – (45.17 – 29.60) = 28902.00

PRICING STRATEGY S.No.

Price Strategy

Amount

Remarks

1

Producer Selling Price

Rs. 45.16

2

Whole Seller Selling Price

Rs. 47.43

Plus 5% Margin

3

Retailer Selling Price

Rs. 60.00

Plus 15% Sales Tax an 10% Margin

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There are many other phases leaving behind, which should in view & analyzed overtime. Some of them are as follows:SWOT Analysis Market Share of Competitors (Sales Volume of Previous Years) Adoption Stage Product’s Life Cycle Advertising Setting of Advertising Objectives. Other Promotional Activities Public Relations Advertisement Plan and Budget Advertising Chain Breakeven Analysis Pricing Strategy

Hence there is a great charm in launching this product & a Huge Market segments is awaiting for them who want to avail the opportunity. ***** Ends *****

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