Marketing Plan For A New Product With Diagram
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- Words: 5,912
- Pages: 56
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Prepared for: Ms. TABINDA ISLAM
Prepared by:
GROUP LEADER: GROUP MEMBERS:
AQEEL ABBAS SADAF PERVAIZ GHULAM MURTAZA UMER MALIK SHAH BAHRAM AZAM SAQI NADEEM HABIB
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DEDICATION DEDICATED TO OUR LOVING PARENTS & TEACHERS ESPECIALLY MS. TABINDA ISLAM
AND
OUR FRIENDS/CLASS FELLOWS
ACKNOWLEDGEMENT 2
© Copyright BizTree. 2006. All rights reserved. Protected by the copyright laws of the United States and Canada and by international treaties. IT IS ILLEGAL AND STRICTLY PROHIBITED TO DISTRIBUTE, PUBLISH, OFFER FOR SALE, LICENSE OR SUBLICENSE, GIVE OR DISCLOSE TO ANY OTHER PARTY, THIS PRODUCT IN HARD COPY OR DIGITAL FORM. ALL OFFENDERS WILL AUTOMATICALLY BE SUED IN A COURT OF LAW.
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First of all, we bow ourselves before ALLAH, the Merciful and Beneficent for empowering us to start and complete this project. The work presented in this project has been carried out under the dedicated supervision of MS.TABINDA ISLAM. His keen interest and invaluable guidance, in every stage of the project is greatly appreciated.
SADAF PERVAIZ AQEEL ABBAS OMER MALIK SHAH BEHRAM AZAM SAQI NADEEM HABIB
Statement of Confidentiality & Non-Disclosure
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This document contains proprietary and confidential information. All data submitted to SUPERIOR UNIVERSTY is provided in reliance upon its consent not to use or disclose any information contained herein except in the context of its business dealings with Freshness Company Ltd. The recipient of this document agrees to inform its present and future employees and partners who view or have access to the document's content of its confidential nature. The recipient agrees to instruct each employee that they must not disclose any information concerning this document to others except to the extent that such matters are generally known to, and are available for use by, the public. The recipient also agrees not duplicate or distribute or permit others to duplicate or distribute any material contained herein without Freshness Company Ltd's express written consent. Freshness Company Ltd retains all title, ownership and intellectual property rights to the material and trademarks contained herein, including all supporting documentation, files, marketing material, and multimedia. BY ACCEPTANCE OF THIS DOCUMENT, THE RECIPIENT AGREES TO BE BOUND BY THE AFOREMENTIONED STATEMENT.
OUR MISSION STATEMENT 4
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"We promise to respect our self and others, have the courage to do what's right, show loyalty to our university, our self, and our community, have tolerance for all, and accept responsibility for our words and actions."
EXECUTIVE SUMMARY
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Freshness Company Limited is a Pakistan-based beverages company. The Company is engaged in manufacturing, processing and sale of Beverages; Juices (sugar free, drinking water). The segments of the Company include juices and water products. Management
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Title
Name
Age
Title Date
Start Date
Chairman of the Board SAROOP ANWER
Chief Executive Officer/ Managing Director, Director SADAF PERVAIZ 11/28/2007 Head of Finance and Control, Secretary AQEEL ABBAS
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Business Names Business Name
Freshness water Limited Freshness Pakistan Ltd.
General Information Number of Employees: 2,345 (As of 12/31/2007) Outstanding Shares: 784 (As of 12/31/2007) Shareholders: 671 (As of 12/31/2007) Stock Exchange: KAR Fax Number: (42) 578-9302
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TABLE OF CONTENTS Company’s Mission Statement COMPANY’S VISION STATEMENT
10 10
THE FRESHNES BUSINESS IN LAHORE
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INTRODUCTION TO TEEN-AGE JUICE CURRENT MARKET SITUATION Market Demographics Geographic Demographic MARKET DESCRIPTION Product review Product Features COMPETITVE REVIEW “TEEN-AGE JUICE” COMPETITORS
12 13
Benz Shezan DISTRIBUTORS REVIEW SWOT ANALYSIS PEST ANALYSIS OBJECTIVES & ISSUES MARKETNG STRATEGY Positioning Strategies MARKETING MIX Product Strategy Product variety BRAND NAME QUALITY DESIGN
15-16 17 18 19-21 22 23 24 24 25 25 25 26 26 26
Pricing Strategies
26
Amounts are in Pak Rupees PRICE AND QUALITY GRID Communication Strategies CRITERIA FOR PROMOTION
Main Sources of Prootion Market Research
13 13 13 14 14 14 15 15
27 27 28 28 28 29-30 9
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Marketing Organization Action Programs BUDGETTING Electronic edia Print Media Cable operators Main cable operators Billboard Skins advert Expected Revenue On television On News Paper On Cable On Billboard On skins Promotion Strategy Push Pull Controls Measuring Comparing Correcting
31 31 32 32 33 33 34 34 34 35 35 35 36 36 37 38 38 38 39 39 39 39
Consumer Motivation
40
Innate & acquired needs
40
Emotional Motives
40
Brand personality
40
Personality and color
41
Consumer Perception
41
Just noticeable Difference (j.n.d)
42
Perceptual selection
42
Selective perception
43
Perceptual Blocking
43
Perceptual organization
43
Consumer imagery
43
Perceived quality CONSUMER LEARNING
44 45
Instrumental conditioning
46
Involvement theory
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CONSUMER ATTITUDE
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Tricomponent model
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Attitude-towards-ad Model Situation Analysis Social Analysis Environmental Analysis Freshness environmental strategy Main Issues in Focus Supply Chain APPENDIX CONCLUSION References
47 48 48 49 49 49 50 51-52 53 54
COMPANY’S MISSION STATEMENT “To set world class standards in the Juice industry through providing a diverse range of high quality Juice products that are prepared in accordance with Islamic principles striving to satisfy consumers tastes and needs and serving the Society”
COMPANY’S VISION STATEMENT “To be a global leader in the Juice industry, dedicated to provide fresh and pure juice with the highest standard of quality and health and a role model for all Juice providers” There is a strong emphasis on Research and Design in the new organization together with a willingness to collaborate with other companies to bring advantaged products to the market
COMPANY'S PUNCH LINE: Freshness -" Taste with low fats" - People in Pakistan generally refers cold drinks as ‘Pure Taste’. So Freshness wants to give an impression that whenever a customer think of ‘Pure Taste’, he should think of Freshness. So the Punch line makes ‘Taste’ equal to Freshness. Of late, we also have the “100 % pure taste”.
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THE FRESHNES BUSINESS IN LAHORE The FRESHNES will commence its operation in Lahore from February 2009. The factory facility has been founded on a 10 canal area of land in the Industrial area, Riawind Road Lahore. The factory is expected to match the demand of our products. We have ensured the installation of modern, sophisticated and efficient equipment, conforming to the very latest standards of "Goods Manufacturing Practices".
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INTRODUCTION TO TEEN-AGE JUICE People started too perished under the scorching heat of summer in our country. They need an energy drink to refresh themselves. TEEN-AGE JUICE is a fresh juice product. It provides energy and keeps people fresh when they are felt weak or tired from doing a lot of work. It contains vitamins and proteins which is a useful energy source. Vitamins give freshness and proteins are the energy cells that recharge the human body so that they work at their maximum. With low fats
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The students, employees and workers become tired due to the work burden and sunlight which make them feel loose. They need an energy drink that makes them reenergize so they may be able to perform better again and feel refresh.
INGREDIENTS ARE: Apple and Orange Pulp
.
CURRENT MARKET SITUATION Refresh is a fresh juice product that is going to introduce in the Lahore domestic market. We are focusing to all levels of generation. The kids, youths, mature and olds and overall families The prices of the refresh are moderate, because it is for everyone in the society.
MARKET SEGMENTATION: The customer of the Refresh consists of following:
a. Geographic’s: 14
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The refresh geographic target area is currently Lahore. We are supplying our product to all area of the Lahore.
b. Demographics: There is an almost equal ratio between male and female and also kids. Ages 5--- 50 are the customers. We are focusing offering
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MARKET
DESCRIPTION
The TEEN-AGE JUICE is currently facing a very competitive environment. Because the competitors of the TEEN-AGE JUICE are:•
Shezan
•
Country
•
Benz
•
Sunfresh
PRODUCT REVIEW: The TEEN-AGE JUICE is available in 125ml size and available in different Flavors like: •
Apple
•
Orange
•
Grapes
•
Mix-fruit
PRODUCT FEATURES: The products have the following Features: •
Available in different sizes
•
Fresh original Fruit Juice
•
Having Protein and Minerals
•
Tetra Pack Protection packing.
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COMPETITVE REVIEW “TEEN-AGE JUICE” COMPETITORS: The competitors of “Refresh” juice are more than 10. Benz is leading market right now and other companies are far away from it. Benz has loyal customers over the years because it is very old company and customers are aware of its merits & demerits. The company’s first purpose is to compete Benz and other juices which have large market share. The main competitors are Benz & Shezan.
1.BENZ PRODUCT: Benz juices are the products of Benz Pakistan LTD.
QUALITIES OF BENZ: a. High availability b. Large range of flavors c.
Standardized and attractive packing
d. large promotion and market coverage e. Available in Various weights packing.
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PRICE: Different sizes are available in various prices. Minimum price is 15 Rs.
PROMOTION: They promote this product through a. Electronic media b. Print Media c. FM Radio stations d. Wall Chalking e. Billboard
PLACE: Benz has wide networks all over Pakistan it has more than 300 distributors in all over four provinces of Pakistan.
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2.SHEZAN PRODUCT: The product we selected is shezan juice a product by Shezan international Ltd
QUALITIES OF SHEZAN: a. High availability b. Large range of flavours c.
Standedised and attractive packing
d. large promotion and market coverage e. Available in Various weights packing.
PRICE: Minimum price of juice is 10 R.s .
PLACE: Shezan has a large market share in Pakistan.
PROMOTION: They promote this product through a. Electronic media
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b. Print Media c. FM Radio stations d. Wall Chalking e. Billboard
DISTRIBUTORS REVIEW To assure the availability of its product “Refresh” juice has established effective network of registered dealers. The main target of these juices is Lahore.
MANUFACTURER
DISTRIBUTOR
RETAILER
CONSUMER
We don’t have our own distribution channel; we have a third party association for this activity. The distributor directly picks the order from the factory floor and distributes it to the various retailers and wholesaler. The end consumer would then purchase “TEEN-AGE JUICE” from the retailer. The distributor hired by us is amongst the most reliable distributors in the region. They enjoy a flawless reputation combined with business relations with numerous retailers even in the rural areas of Lahore and near sides. This has ensured that “TEEN-AGE JUICE” will be made available all over Lahore.
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SWOT ANALYSIS
STRENGTHS: •
Updated technology plant
•
Quality product
•
Specialists available for specialized jobs and tasks
•
Very experienced staff to its credit
•
Medical insurance of employees
•
Pakistani made 21
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•
Targeted to low and middle class people.
•
Reasonable price
•
Approved from health department ministry of health
•
International standard packing
•
Artificial flavors free
•
Expiry date above 3 months
WEAKNESS •
new juice industry
•
small distribution network
•
Only three flavor.
OPPORTUNITIES •
Increase the distribution network.
•
Pursue the newer technology & techniques.
•
Market is very big & attractive.
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•
Take-over of the distributor
•
Gain control of more than 50% of the market share.
•
Increased demand of high quality products due to Lahore being a developed city.
THREATS •
Political instability.
•
No political affiliation
•
lack of production
•
lack of distribution
•
new entrance from the exiting competitors
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•
so many competitors
•
retaining consumers
•
Economic instability.
•
Increases of general sales tax
•
Increase in prices of electricity (increase in manufacturing overheads, hence decreasing profit
•
margin unless prices are increased)
•
Imposition of heavy taxes on import of machinery
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Pest Analysis Analysis •
Political
•
Economical
•
Social
•
Technological
Political factors: Environment is investor friendly beverages sector is under de-regulation.
Economical factor: Market should consider long term and short term of a trading market. Inflation is controlling by state bank and under strict eyes but unemployment rate is going up and up with the increase level of poverty.
Social factor: As Pakistan is an Islamic country and people are very strict in case of Islam any things against the philosophy of Islam on either print or electronic media are treated as against Pakistan.
Technological factor: Company has technology with which they can compete in the Pakistan and now company is investing in their infrastructure to not only expand but also to upgrade their existing structure.
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OBJECTIVES & ISSUES Objective and Goals must be smart for the purpose of marketing plan as we know SMART means specific, measurable, attainable, realistic and timely •
Growth in all regions.
•
Satisfy our customer.
•
Provide high quality Fruit Juice.
FIRST YEAR OBJECTIVE: The objectives are •
Profit maximization.
•
To earn a good reputation and create a good image of the company.
SECOND YEAR OBJECTIVES: •
Increase the advertisement.
•
Generate 60% brand awareness with in the consumers target market.
ISSUES: Following are the issues that “TEEN-AGE JUICE” is facing: In relation to the product launch our major issue is the ability to establish a well regarded brand name linked to a meaningful positioning. We must heavily invest in market to create an image of our company and our brand. We also need to measure the awareness and response from the customer about our product. So we can adjust our marketing efforts. 26
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MARKETNG STRATEGY The market strategy is based on positioning of the product in the mind of consumers. •
Providing high quality Juice to the customers.
•
Targeting upper-end income as the end customers.
1.
POSITIONING STRATEGIES:
We want to put an image of our product in the consumers mind as compare to competitor’s product. We want to target the high school, college and graduate students who have to work hard and need to “TEEN-AGE JUICE” them in an instant. We have to position our product on the base of quality, cost and nutrition’s.
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MARKETING MIX Product Price Promotion Place
2. PRODUCT STRATEGY: •
Develop the long-term relationship with the customers
•
Give values to the customers to delighting them
•
Do whatever it takes not to satisfy the customers but retain our customers
In order to accomplish this objective, the company has established sales, marketing and support teams.
PRODUCT VARIETY: Our product would be available in the following flavors: Apple Orange Grapes Mix-fruit
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BRAND NAME: The name which we have chosen for our product is “TEEN-AGE JUICE”. JUICE
QUALITY: High quality assurance would be our first priority. This would be ensured by: •
Implementing high quality standards
•
Total quality management
•
Acquisition of the high quality raw materials
DESIGN: “TEEN-AGE JUICE”” is a sweet, refreshing Juice with an eye catching Tetra hedral pack.
3. PRICING STRATEGIES: Our pricing strategies for the product are for total cost, which include custom services and other expenses. Pricing strategy usually change as the product passes through its life cycle. The price should be set at moderate level in order to attract a large number of buyers and to gain large market share.
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Amounts are in Pak Rupees: Total cost per kg = 14.40 Units produced per kg = 4 kg Per unit production cost= 14.40/4= 3.60/Packing per Juice= 1.75/Per straw = .15/Card board box for 27 juices = .25* 27 = 6.75(.25) Total packing cost per juice pack = 1.75+.25 = 2.00/Total cost per juice pack = 3.60+2.00+.15= 5.75/Profit margin per juice pack: 1.667 Selling price per juice pack (distributor)/Invoice price per juice pack = 7.40/Selling price per box containing 27 juice packs (distributor) = 200.00/Profit per unit (manufacturer) = 1.667 Profit per pack sold (27 juice packs) = 45 Trade price= 7.40
Retail price= 10.00
PRICE AND QUALITY GRID: This grid shows what pricing strategy a firm is perusing:L O W
PRICE
H I G H
PENETRATION
ECONOMY
“FRESHESS” “FRESHESS
SKIMMING
PREMIUM
LOW
HIGH
Quality According to this grid we are offering high quality at low price. So we are following penetration strategy. 30
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4. COMMUNICATION STRATEGIES: PROMOTION: Actually the promotion is a first step when we are launching a new product, but we make its strategies in last. We want to make a good image in the mind of customers, so that they will buy only our products.
CRITERIA FOR PROMOTION: In promotion our main objective is to provide: •
Awareness
•
Knowledge
•
Liking
•
Preference
•
Purchasing
MAIN SOURCES OF PROMOTION: •
skins
•
Print Media
•
Electronic Media
•
Cable network
5. MARKET RESEARCH: Using research, we are identifying the benefits that our target market segments value. Using the research tools as: o Feedback from test market o Surveys o Questionnaires 31
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Brand awareness research will help us determine the effectiveness and efficiency of our message.
Example: 1. I enjoy juice that is: • Fresh squeezed •
Made from concentrate
•
Without pulp
•
With some pulp
•
Anytime at all
•
Others:
2. I usually prefer the following brands of juice: • Nestle •
Benz
•
Shezan
•
Other:
3. I drink juice because: • It's a good source of energy •
It's a good source of vitamins
•
It goes well with other foods
•
It tastes great
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•
Others:
4. about the price of juice: • I don't care much. •
I buy less when the price goes up.
•
I buy extra on sale & store them.
5. About the brand(s) I buy: • I often switch based upon price •
I sometimes buy juice
•
I always buy the same brand
•
Other:
6. I own a juice machine and squeeze my own juice. • Yes, sometimes •
Yes, everyday
•
No...
7. I am: • Female •
Male
8. My age group is: • Under 10 •
11-20
•
21-29 33
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•
30-39
•
40-49
•
50-59
6. MARKETING ORGANIZATION: FRESHNESS’s chief marketing officer, GHULAM MURTAZA, holds overall responsibility for all of the company’s marketing activities. There are other subordinates with him to help the sales campaigns, trade and consumer sales promotions, and public relations efforts.
7. ACTION PROGRAMS: The “TEEN-AGE JUICE” will be introduced in February. Following are summaries of the action programs we will use during this summer session to achieve our stated objectives. January we will initiate 1000000 rupees trade sales promotion campaign to educate dealers and generate excitement for the product launch, and provide sample crates to our selected product reviewers, opinion leaders and celebrities as part of our public relation strategy. February We will start an integrated print/displays/television campaign. The campaign will show how many features the “TEEN-AGE JUICE” have for users to reenergize them. June As the juice advertisement continues, we will add consumer sales promotion by including them to our messages. We will also support or retailer to increase our sales.
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July-August We plan to roll out a new advertisement having new views of customers who have used our drink which will help to promote our juice.
8. BUDGETTING: •
Electronic Media
•
Print Media
•
Cables operator
•
Billboards
•
Skins advert
A. ELECTRONIC MEDIA: Geo: For 15 days 2000 PST 30sec 3 times in a day 6 lacs
B. PRINT MEDIA: Nawai waqt: 35
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Front page quarter page 4 colour For 2 days 30000 * 2 = 60000 27” on after 3 days at back 7000* 8 = 56000
Jang: Only on Sundays 30000*4= 1 lac 20 thousand 236000/-
C.
CABLE OPERATORS:
Advertisement will play only at Ten Sports and on Star plus in evening from 6 to 12 pm because viewer ship of these channels are more as compare to others. For the purpose of this company decides to spend Rs. 100,000. In this budget 4 cable operators with maximum coverage in Lahore city will play ad on the above-mentioned channels in routine for 2 months.
Main cable operators Sanda to mansoora Food Street to mughalpoora 100000*2= 2 lacs/2= 1lac 36
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D. BILLBOARDS: Company decides to take billboards for its starting advertisement campaign this is a plan of 15 days rent for billboard is Rs.100, 000 each. The sites selected by the company are in the areas of Mall Road, DHS, Allama Iqbal Town, Liberty Market, kalma chowk, 5 * 100000= 5 lacs
E. SKINS ADVERT: 50 main stores/areas/shops in city Per skin cost 200 80* 200 = 16000/-
Expected Revenue Total population of Lahore = 7500000 A. ON TELEVISION: Expenditure: 600000/20% of population viewed our ad= 7500000*20 /100 =1500000 10% of viewed population tried our product = 1500000 * 10 / 100 =150000 10% of population tried became our average customer = 150000*10/100=15000 On 1 unit sold we get profit = 1.667/On 15000 units we get = 15000*1.667 =25005/For 30 days = 2
5005 * 30 =750150/37
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Revenue = 750150/-
B. ON NEWS PAPER: Expenditure: 236000/Total readership = 3000000 25% of Readership viewed our ad= 3000000*25 /100 = 750000 10% of Readership tried our product =750000 * 10 / 100 =75000 10% of tried became our average customer = 75000*10/100 = 7500 On 1 unit sold we get profit = 1.667/On 7500 units we get = 7500*1.667 =12502.5/For 30 days = 12502.5* 30 =375075/Revenue = 375075/-
C.
ON CABLE:
Expenditure: 100000/10% of population viewed our ad= 7500000*10 /100 = 750000 10% of viewed population tried our product = 750000 * 10 / 100 =75000 10% of population tried became our average customer = 75000*10/100 = 7500 On 1 unit sold we get profit = 1.667/On 13000 units we get = 7500*1.667 =12502.5/For 30 days = 12502.5 * 30 =375075/Revenue = 375075/-
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D. ON BILLBOARD: Expenditure: 500000/20% of population viewed our ad= 7500000*20 /100 =1500000 10% of viewed population tried our product = 1500000 * 10 / 100 =150000 10% of population tried became our average customer = 150000*10/100 = 15000 On 1 unit sold we get profit = 1.667/On 15000 units we get = 15000*1.667 =25005/For 30 days = 25005 * 30 =750150/Revenue = 750150/-
E. ON SKINS Expenditure: 16000/Total readership = 300000 25% of Readership viewed our ad= 300000*25 /100 = 75000 10% of Readership tried our product =75000 * 10 / 100 =7500 10% of tried became our average customer = 7500*10/100 = 750 On 1 unit sold we get profit = 1.667/On 13000 units we get = 750*1.667 =1250.25/For 30 days = 1250.25 * 30 =37507.5/Revenue = 37507.5/-
Total revenue: 2287957.5/39
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Only total expenditure: 1552000/2287957.5- 1552000 =735957.5/-
Promotion Strategy "Push or Pull"? Marketing theory distinguishes between two main kinds of promotional strategy - "push" and "pull".
Push: A “push” promotional strategy makes use of a company's sales force and trade promotion activities to create consumer demand for a product. The Freshness promotes the product to wholesalers, the wholesalers promote it to retailers, and the retailers promote it to consumers. For example Freshness promote their products via retailers such as Juices, energy drinks. Personal selling and trade promotions are often the most effective promotional tools for companies such as Freshness. for example offering subsidies on the Different flavors of juices to encourage retailers to sell higher volumes. A "push" strategy tries to 40
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sell directly to the consumer, bypassing other distribution channels (e.g. selling insurance or holidays directly). With this type of strategy, consumer promotions and advertising are the most likely promotional tools.
Pull: A “pull” selling strategy is one that requires high spending on advertising and consumer promotion to build up consumer demand for a product. If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers.
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CONTROLS: This is the main and last element of the marketing planning by using this we can check our product standard by comparing It with our standards if there is any problem arrive in marketing plan the it must be corrected. Three main functions are performed under this element of planning that is: •
Measuring
•
Comparing
•
Correcting
Measuring: We can check our marketing condition through measuring in which different types of tasks may be performed like •
Surveys
•
Questionnaires
Comparing: In controlling process we compare our product with our standards.
Correcting: If any problem occurs then correcting process will take place in which we found that from where the problem will arises.
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Consumer Motivation Innate & acquired needs Consumer can fulfill both his basic innate need (thirst) and acquired need (egoistic need) at the same time.
Emotional Motives We will target the emotional motives (pride) of consumers. The consumers will feel proud of drinking tin pack drink, and show his belonging to a particular class.
Brand personality
Brand Personality
Excitement
- Spirited - Up-to-date
Competence
Ruggedness
- intelligent
- outdoorsy
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We will later develop ads showing successful student in the college using our TEENAGE JUICE. As well as adventurous and thrilling ads, ads with the famous celebrities like Atif Aslam & Ali Zafar.
Personality and color As we are targeting the youngsters, so the packing will include base color ‘silver’, with ‘blue’ and ‘red’ fore color.
Silver wealthy Red exciting, passionate Blue authority
Consumer Perception Just noticeable Difference (j.n.d) The competitor’s quantity of tin pack is usually 330 ml. But our product’s quantity will be 350 ml (above j.n.d level). Provide less calories 35.4 kcal (above j.n.d level).
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Perceptual selection Nature of stimulus: Our brand name is “TEEN-AGE” related to teenage YOUTH. The brand name will be easy to remember, recall and the consumers can relate it to the youngsters. Expectation: It is the common perception of Pakistani people that the local made JUICES like Country, fruity etc. are of inferior quality. Similarly, the drinks in regular bottles are mostly counterfeits. In order to change the perception, we have introduced the drink in Tin pack to establish good image about the quality.
Selective perception Selective attention: We will use attractive colors like olive, orange in the back ground of the advertisement in the print media in order to get the attention of the youngsters. The advertisement will be pasted up side down, so that the consumers will pay special attention to the ad as it will create a unique look. Also in the T.V advertisements, the popular songs of Pop singers like Atif Aslam , Ali Zafar will be played as background music for stimulus generalization.
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Perceptual Blocking: We shall organize and sponsor a 20/20 Cricket Cup among the regional cricket teams. Place our product’s advertising hoarding in the cricket matches of Pakistan. Be the official sponsors of the Pakistan Hockey team. Repetition of advertisement on different channels. Placement of product in T.V dramas. Organize musical concerts. Sponsor the Geo sports news.
Perceptual organization Figure and ground Attractive colors like olive, orange in the back ground of the advertisement in the print media. Popular songs of the Pop singers like Atif Aslam , Ali Zafar will be played as background music in T.V advertisement and these celebrities will also perform in the advertisement. These celebrities are popular among the youngsters.
Consumer imagery Product positioning TEEN-AGE JUICE will be positioned as a drink for the youngsters who are enthusiastic, extroverts and energetic and who enjoy their life.
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Perceived quality Extrinsic cues
TEEN-AGE JUICE will be introduced in Tin pack to establish good image about the quality.
As we are targeting the youngsters, so the packing will include base color ‘silver’ , with ‘blue’ and ‘red’ fore color. Pop singers Atif Aslam , Ali Zafar’s appearance in the advertisement.
CONSUMER LEARNING Classical conditioning Repetition Repetition of advertisement on different channels.
Stimulus discrimination Positioning “TEEN-AGE” against the competitors (NESTLE, SHEZAN) as drink for the youngsters who are enthusiastic, extroverts and energetic and who enjoy their life.
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Instrumental conditioning Shaping Free drinks will be offered through promotional campaigns at the school, colleges, universities, shopping malls. One tin can will be given free on purchase of 2 two 1.5 liter pack of Teen-age.
Involvement theory Peripheral Route Pop singers Atif Aslam , Ali Zafar’s appearance in the advertisement.
CONSUMER ATTITUDE Tricomponent model As our product is a low-involvement product and soft drinks is mostly related to impulsive buying. We are following the peripheral route, so the following will be the sequence
Affective
Co native
Cognitive
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Attitude-towards-ad Model Our desired objective is to form the consumer’s attitude through the following route:
Exposure to AD
Export Process
Feeling from Ad (Affect)
Belief about Brand
Attitude toward Ad Export Process Export Export Licenses
Attitude towards brand
Finish Web Development
Company D Company E
Company F Company G Company H
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Situation Analysis Social Analysis: For beverages companies, take back and recycling add value. They support brand value and customer loyalty and inspire customer insights. They also demonstrate environmental responsibility. Manufacturers like Freshness are generally in a disadvantaged position for take back, due to the costs involved and the lack of many consumer touch points. Again in new products. In a typical consumer scenario, such as when a health conscious customer is perceived value. Successful take back is also driven to a great extent by economics and market factors, which in turn place large quantities of used Beverages in refreshing scenarios. This causes concern for the quality and safety of products repaired or altered outside of the intense controls fundamental to a juice production process. By governments. There are various take back channels and “Freshness” company has limited control over the actual flows. Despite the challenges posed by the logistics of existent. Freshness is also piloting different forms of cooperation with operators and distributors, such as collection Raw material at point of Distributers, as well as in various industry level schemes
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Environmental Analysis Freshness aims to be a leading company in environmental performance. By working to reduce the adverse environmental impacts of our products and activities, our customers can use our products with confidence and good conscience. Combining environmental issues into daily work makes business sense for Freshness. By working to reduce the adverse environmental impacts of our products and activities, we minimize risk, ensure legal compliance, gain stakeholder acceptance, and help advance the long-term success of our company. Our customers can also use our products with confidence and good conscience. Through our environmental strategy, we work to ensure that our products are safe for Health use. Teen-age juice by Freshness Company is a trusted brand and we take that trust seriously.
Freshness environmental strategy: Freshness is a leading company in environmental performance. Freshness’s environmental strategy is based on lifecycle thinking, beginning with the extraction of raw materials and ending with recycling and disposal of as well as the reintroduction of recovered materials into the economic system. Our goal is to make people healthy and fresh, which have no undue environmental impact, consume energy efficiently, and that can be appropriately reused, recycled or disposed of. Freshness's environmental strategy is integrated with our business strategy. Our four business groups have set environmental targets for their own activities to implement our corporate level environmental strategy.
Main Issues in Focus: Three important global issues remain at the forefront of much of Freshness’s environmental work. End-of-life products and energy efficiency. * Substance management during the planning and design of our products, one of our main focus areas is their material content. We are continuously analyzing the materials used in our products with the aim of reducing the amount of potentially hazardous or Harmful content.
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* we have many years to exist in a market for our own arrangements for Juice and other beverages , as well as for make strong customer relationship. Freshness is assuming product responsibility as defined by the directive as it is implemented throughout Pakistan. And of course in Centers and Flagship stores in all markets where we do business.
*
Energy efficiency In our product creation as well as our own operational activities, an important area for continuous performance improvement is in energy efficiency. We have consistently been able to reduce the energy intensity of our products.
Supply Chain: We are committed to reducing the environmental impact of our business. We expect all Beverages suppliers to take a similar approach. At Freshness, we believe in long-term partnerships with suppliers who share our approach to ethical business. Together we work hard to anticipate risk, demonstrate company values, enhance our governance practices, increase employee satifaction and look after the communities where we do business.
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APPENDIX
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Country
FRESHNESS
Resources Logistics Beverages Experience System design skill Brand power Consumer Relationship Cleverness Industrial design Music solution Breadth
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CONCLUSION Freshness is become to world leader in Beverages’ Industries, driving the transformation and growth of the converging Healthy and Energetic Environment. Freshness is about enhancing taste and exploring new way to feel fresh and healthy. Explore the full potential of TEEN-AGE with Different Flavors coming in market with full of competition
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References • •
• •
• • • •
www.google.com www.freshness.com Visited seniors of Superior University www.superior.edu.pk Visited teachers By own thinking Concern Books Related to Report Writing Koen, B. V., 2002. “On the importance of "presence" in a web-based course”, Frontiers in Education Conference. Vol. 1, pp. T3E/21-T3E/26.
•
Zou, P., Marsden, P. and Ong, E. 2002. The application of E-learning in construction management programs”, AUBEA Conference.
•
Wang, A.Y.2002. “Predictors of web-student performance: The role of self-efficacy and reasons for taking an on-line class”, Computers in Human Behavior, Vol. 18, No. 2, pp. 151-163
56
Prepared for: Ms. TABINDA ISLAM
Prepared by:
GROUP LEADER: GROUP MEMBERS:
AQEEL ABBAS SADAF PERVAIZ GHULAM MURTAZA UMER MALIK SHAH BAHRAM AZAM SAQI NADEEM HABIB
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DEDICATION DEDICATED TO OUR LOVING PARENTS & TEACHERS ESPECIALLY MS. TABINDA ISLAM
AND
OUR FRIENDS/CLASS FELLOWS
ACKNOWLEDGEMENT 2
© Copyright BizTree. 2006. All rights reserved. Protected by the copyright laws of the United States and Canada and by international treaties. IT IS ILLEGAL AND STRICTLY PROHIBITED TO DISTRIBUTE, PUBLISH, OFFER FOR SALE, LICENSE OR SUBLICENSE, GIVE OR DISCLOSE TO ANY OTHER PARTY, THIS PRODUCT IN HARD COPY OR DIGITAL FORM. ALL OFFENDERS WILL AUTOMATICALLY BE SUED IN A COURT OF LAW.
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First of all, we bow ourselves before ALLAH, the Merciful and Beneficent for empowering us to start and complete this project. The work presented in this project has been carried out under the dedicated supervision of MS.TABINDA ISLAM. His keen interest and invaluable guidance, in every stage of the project is greatly appreciated.
SADAF PERVAIZ AQEEL ABBAS OMER MALIK SHAH BEHRAM AZAM SAQI NADEEM HABIB
Statement of Confidentiality & Non-Disclosure
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This document contains proprietary and confidential information. All data submitted to SUPERIOR UNIVERSTY is provided in reliance upon its consent not to use or disclose any information contained herein except in the context of its business dealings with Freshness Company Ltd. The recipient of this document agrees to inform its present and future employees and partners who view or have access to the document's content of its confidential nature. The recipient agrees to instruct each employee that they must not disclose any information concerning this document to others except to the extent that such matters are generally known to, and are available for use by, the public. The recipient also agrees not duplicate or distribute or permit others to duplicate or distribute any material contained herein without Freshness Company Ltd's express written consent. Freshness Company Ltd retains all title, ownership and intellectual property rights to the material and trademarks contained herein, including all supporting documentation, files, marketing material, and multimedia. BY ACCEPTANCE OF THIS DOCUMENT, THE RECIPIENT AGREES TO BE BOUND BY THE AFOREMENTIONED STATEMENT.
OUR MISSION STATEMENT 4
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"We promise to respect our self and others, have the courage to do what's right, show loyalty to our university, our self, and our community, have tolerance for all, and accept responsibility for our words and actions."
EXECUTIVE SUMMARY
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Freshness Company Limited is a Pakistan-based beverages company. The Company is engaged in manufacturing, processing and sale of Beverages; Juices (sugar free, drinking water). The segments of the Company include juices and water products. Management
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Title
Name
Age
Title Date
Start Date
Chairman of the Board SAROOP ANWER
Chief Executive Officer/ Managing Director, Director SADAF PERVAIZ 11/28/2007 Head of Finance and Control, Secretary AQEEL ABBAS
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Business Names Business Name
Freshness water Limited Freshness Pakistan Ltd.
General Information Number of Employees: 2,345 (As of 12/31/2007) Outstanding Shares: 784 (As of 12/31/2007) Shareholders: 671 (As of 12/31/2007) Stock Exchange: KAR Fax Number: (42) 578-9302
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TABLE OF CONTENTS Company’s Mission Statement COMPANY’S VISION STATEMENT
10 10
THE FRESHNES BUSINESS IN LAHORE
11
INTRODUCTION TO TEEN-AGE JUICE CURRENT MARKET SITUATION Market Demographics Geographic Demographic MARKET DESCRIPTION Product review Product Features COMPETITVE REVIEW “TEEN-AGE JUICE” COMPETITORS
12 13
Benz Shezan DISTRIBUTORS REVIEW SWOT ANALYSIS PEST ANALYSIS OBJECTIVES & ISSUES MARKETNG STRATEGY Positioning Strategies MARKETING MIX Product Strategy Product variety BRAND NAME QUALITY DESIGN
15-16 17 18 19-21 22 23 24 24 25 25 25 26 26 26
Pricing Strategies
26
Amounts are in Pak Rupees PRICE AND QUALITY GRID Communication Strategies CRITERIA FOR PROMOTION
Main Sources of Prootion Market Research
13 13 13 14 14 14 15 15
27 27 28 28 28 29-30 9
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Marketing Organization Action Programs BUDGETTING Electronic edia Print Media Cable operators Main cable operators Billboard Skins advert Expected Revenue On television On News Paper On Cable On Billboard On skins Promotion Strategy Push Pull Controls Measuring Comparing Correcting
31 31 32 32 33 33 34 34 34 35 35 35 36 36 37 38 38 38 39 39 39 39
Consumer Motivation
40
Innate & acquired needs
40
Emotional Motives
40
Brand personality
40
Personality and color
41
Consumer Perception
41
Just noticeable Difference (j.n.d)
42
Perceptual selection
42
Selective perception
43
Perceptual Blocking
43
Perceptual organization
43
Consumer imagery
43
Perceived quality CONSUMER LEARNING
44 45
Instrumental conditioning
46
Involvement theory
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CONSUMER ATTITUDE
46
Tricomponent model
46
Attitude-towards-ad Model Situation Analysis Social Analysis Environmental Analysis Freshness environmental strategy Main Issues in Focus Supply Chain APPENDIX CONCLUSION References
47 48 48 49 49 49 50 51-52 53 54
COMPANY’S MISSION STATEMENT “To set world class standards in the Juice industry through providing a diverse range of high quality Juice products that are prepared in accordance with Islamic principles striving to satisfy consumers tastes and needs and serving the Society”
COMPANY’S VISION STATEMENT “To be a global leader in the Juice industry, dedicated to provide fresh and pure juice with the highest standard of quality and health and a role model for all Juice providers” There is a strong emphasis on Research and Design in the new organization together with a willingness to collaborate with other companies to bring advantaged products to the market
COMPANY'S PUNCH LINE: Freshness -" Taste with low fats" - People in Pakistan generally refers cold drinks as ‘Pure Taste’. So Freshness wants to give an impression that whenever a customer think of ‘Pure Taste’, he should think of Freshness. So the Punch line makes ‘Taste’ equal to Freshness. Of late, we also have the “100 % pure taste”.
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THE FRESHNES BUSINESS IN LAHORE The FRESHNES will commence its operation in Lahore from February 2009. The factory facility has been founded on a 10 canal area of land in the Industrial area, Riawind Road Lahore. The factory is expected to match the demand of our products. We have ensured the installation of modern, sophisticated and efficient equipment, conforming to the very latest standards of "Goods Manufacturing Practices".
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INTRODUCTION TO TEEN-AGE JUICE People started too perished under the scorching heat of summer in our country. They need an energy drink to refresh themselves. TEEN-AGE JUICE is a fresh juice product. It provides energy and keeps people fresh when they are felt weak or tired from doing a lot of work. It contains vitamins and proteins which is a useful energy source. Vitamins give freshness and proteins are the energy cells that recharge the human body so that they work at their maximum. With low fats
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The students, employees and workers become tired due to the work burden and sunlight which make them feel loose. They need an energy drink that makes them reenergize so they may be able to perform better again and feel refresh.
INGREDIENTS ARE: Apple and Orange Pulp
.
CURRENT MARKET SITUATION Refresh is a fresh juice product that is going to introduce in the Lahore domestic market. We are focusing to all levels of generation. The kids, youths, mature and olds and overall families The prices of the refresh are moderate, because it is for everyone in the society.
MARKET SEGMENTATION: The customer of the Refresh consists of following:
a. Geographic’s: 14
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The refresh geographic target area is currently Lahore. We are supplying our product to all area of the Lahore.
b. Demographics: There is an almost equal ratio between male and female and also kids. Ages 5--- 50 are the customers. We are focusing offering
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MARKET
DESCRIPTION
The TEEN-AGE JUICE is currently facing a very competitive environment. Because the competitors of the TEEN-AGE JUICE are:•
Shezan
•
Country
•
Benz
•
Sunfresh
PRODUCT REVIEW: The TEEN-AGE JUICE is available in 125ml size and available in different Flavors like: •
Apple
•
Orange
•
Grapes
•
Mix-fruit
PRODUCT FEATURES: The products have the following Features: •
Available in different sizes
•
Fresh original Fruit Juice
•
Having Protein and Minerals
•
Tetra Pack Protection packing.
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COMPETITVE REVIEW “TEEN-AGE JUICE” COMPETITORS: The competitors of “Refresh” juice are more than 10. Benz is leading market right now and other companies are far away from it. Benz has loyal customers over the years because it is very old company and customers are aware of its merits & demerits. The company’s first purpose is to compete Benz and other juices which have large market share. The main competitors are Benz & Shezan.
1.BENZ PRODUCT: Benz juices are the products of Benz Pakistan LTD.
QUALITIES OF BENZ: a. High availability b. Large range of flavors c.
Standardized and attractive packing
d. large promotion and market coverage e. Available in Various weights packing.
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PRICE: Different sizes are available in various prices. Minimum price is 15 Rs.
PROMOTION: They promote this product through a. Electronic media b. Print Media c. FM Radio stations d. Wall Chalking e. Billboard
PLACE: Benz has wide networks all over Pakistan it has more than 300 distributors in all over four provinces of Pakistan.
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2.SHEZAN PRODUCT: The product we selected is shezan juice a product by Shezan international Ltd
QUALITIES OF SHEZAN: a. High availability b. Large range of flavours c.
Standedised and attractive packing
d. large promotion and market coverage e. Available in Various weights packing.
PRICE: Minimum price of juice is 10 R.s .
PLACE: Shezan has a large market share in Pakistan.
PROMOTION: They promote this product through a. Electronic media
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b. Print Media c. FM Radio stations d. Wall Chalking e. Billboard
DISTRIBUTORS REVIEW To assure the availability of its product “Refresh” juice has established effective network of registered dealers. The main target of these juices is Lahore.
MANUFACTURER
DISTRIBUTOR
RETAILER
CONSUMER
We don’t have our own distribution channel; we have a third party association for this activity. The distributor directly picks the order from the factory floor and distributes it to the various retailers and wholesaler. The end consumer would then purchase “TEEN-AGE JUICE” from the retailer. The distributor hired by us is amongst the most reliable distributors in the region. They enjoy a flawless reputation combined with business relations with numerous retailers even in the rural areas of Lahore and near sides. This has ensured that “TEEN-AGE JUICE” will be made available all over Lahore.
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SWOT ANALYSIS
STRENGTHS: •
Updated technology plant
•
Quality product
•
Specialists available for specialized jobs and tasks
•
Very experienced staff to its credit
•
Medical insurance of employees
•
Pakistani made 21
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•
Targeted to low and middle class people.
•
Reasonable price
•
Approved from health department ministry of health
•
International standard packing
•
Artificial flavors free
•
Expiry date above 3 months
WEAKNESS •
new juice industry
•
small distribution network
•
Only three flavor.
OPPORTUNITIES •
Increase the distribution network.
•
Pursue the newer technology & techniques.
•
Market is very big & attractive.
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•
Take-over of the distributor
•
Gain control of more than 50% of the market share.
•
Increased demand of high quality products due to Lahore being a developed city.
THREATS •
Political instability.
•
No political affiliation
•
lack of production
•
lack of distribution
•
new entrance from the exiting competitors
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•
so many competitors
•
retaining consumers
•
Economic instability.
•
Increases of general sales tax
•
Increase in prices of electricity (increase in manufacturing overheads, hence decreasing profit
•
margin unless prices are increased)
•
Imposition of heavy taxes on import of machinery
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Pest Analysis Analysis •
Political
•
Economical
•
Social
•
Technological
Political factors: Environment is investor friendly beverages sector is under de-regulation.
Economical factor: Market should consider long term and short term of a trading market. Inflation is controlling by state bank and under strict eyes but unemployment rate is going up and up with the increase level of poverty.
Social factor: As Pakistan is an Islamic country and people are very strict in case of Islam any things against the philosophy of Islam on either print or electronic media are treated as against Pakistan.
Technological factor: Company has technology with which they can compete in the Pakistan and now company is investing in their infrastructure to not only expand but also to upgrade their existing structure.
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OBJECTIVES & ISSUES Objective and Goals must be smart for the purpose of marketing plan as we know SMART means specific, measurable, attainable, realistic and timely •
Growth in all regions.
•
Satisfy our customer.
•
Provide high quality Fruit Juice.
FIRST YEAR OBJECTIVE: The objectives are •
Profit maximization.
•
To earn a good reputation and create a good image of the company.
SECOND YEAR OBJECTIVES: •
Increase the advertisement.
•
Generate 60% brand awareness with in the consumers target market.
ISSUES: Following are the issues that “TEEN-AGE JUICE” is facing: In relation to the product launch our major issue is the ability to establish a well regarded brand name linked to a meaningful positioning. We must heavily invest in market to create an image of our company and our brand. We also need to measure the awareness and response from the customer about our product. So we can adjust our marketing efforts. 26
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MARKETNG STRATEGY The market strategy is based on positioning of the product in the mind of consumers. •
Providing high quality Juice to the customers.
•
Targeting upper-end income as the end customers.
1.
POSITIONING STRATEGIES:
We want to put an image of our product in the consumers mind as compare to competitor’s product. We want to target the high school, college and graduate students who have to work hard and need to “TEEN-AGE JUICE” them in an instant. We have to position our product on the base of quality, cost and nutrition’s.
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MARKETING MIX Product Price Promotion Place
2. PRODUCT STRATEGY: •
Develop the long-term relationship with the customers
•
Give values to the customers to delighting them
•
Do whatever it takes not to satisfy the customers but retain our customers
In order to accomplish this objective, the company has established sales, marketing and support teams.
PRODUCT VARIETY: Our product would be available in the following flavors: Apple Orange Grapes Mix-fruit
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BRAND NAME: The name which we have chosen for our product is “TEEN-AGE JUICE”. JUICE
QUALITY: High quality assurance would be our first priority. This would be ensured by: •
Implementing high quality standards
•
Total quality management
•
Acquisition of the high quality raw materials
DESIGN: “TEEN-AGE JUICE”” is a sweet, refreshing Juice with an eye catching Tetra hedral pack.
3. PRICING STRATEGIES: Our pricing strategies for the product are for total cost, which include custom services and other expenses. Pricing strategy usually change as the product passes through its life cycle. The price should be set at moderate level in order to attract a large number of buyers and to gain large market share.
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Amounts are in Pak Rupees: Total cost per kg = 14.40 Units produced per kg = 4 kg Per unit production cost= 14.40/4= 3.60/Packing per Juice= 1.75/Per straw = .15/Card board box for 27 juices = .25* 27 = 6.75(.25) Total packing cost per juice pack = 1.75+.25 = 2.00/Total cost per juice pack = 3.60+2.00+.15= 5.75/Profit margin per juice pack: 1.667 Selling price per juice pack (distributor)/Invoice price per juice pack = 7.40/Selling price per box containing 27 juice packs (distributor) = 200.00/Profit per unit (manufacturer) = 1.667 Profit per pack sold (27 juice packs) = 45 Trade price= 7.40
Retail price= 10.00
PRICE AND QUALITY GRID: This grid shows what pricing strategy a firm is perusing:L O W
PRICE
H I G H
PENETRATION
ECONOMY
“FRESHESS” “FRESHESS
SKIMMING
PREMIUM
LOW
HIGH
Quality According to this grid we are offering high quality at low price. So we are following penetration strategy. 30
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4. COMMUNICATION STRATEGIES: PROMOTION: Actually the promotion is a first step when we are launching a new product, but we make its strategies in last. We want to make a good image in the mind of customers, so that they will buy only our products.
CRITERIA FOR PROMOTION: In promotion our main objective is to provide: •
Awareness
•
Knowledge
•
Liking
•
Preference
•
Purchasing
MAIN SOURCES OF PROMOTION: •
skins
•
Print Media
•
Electronic Media
•
Cable network
5. MARKET RESEARCH: Using research, we are identifying the benefits that our target market segments value. Using the research tools as: o Feedback from test market o Surveys o Questionnaires 31
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Brand awareness research will help us determine the effectiveness and efficiency of our message.
Example: 1. I enjoy juice that is: • Fresh squeezed •
Made from concentrate
•
Without pulp
•
With some pulp
•
Anytime at all
•
Others:
2. I usually prefer the following brands of juice: • Nestle •
Benz
•
Shezan
•
Other:
3. I drink juice because: • It's a good source of energy •
It's a good source of vitamins
•
It goes well with other foods
•
It tastes great
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•
Others:
4. about the price of juice: • I don't care much. •
I buy less when the price goes up.
•
I buy extra on sale & store them.
5. About the brand(s) I buy: • I often switch based upon price •
I sometimes buy juice
•
I always buy the same brand
•
Other:
6. I own a juice machine and squeeze my own juice. • Yes, sometimes •
Yes, everyday
•
No...
7. I am: • Female •
Male
8. My age group is: • Under 10 •
11-20
•
21-29 33
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•
30-39
•
40-49
•
50-59
6. MARKETING ORGANIZATION: FRESHNESS’s chief marketing officer, GHULAM MURTAZA, holds overall responsibility for all of the company’s marketing activities. There are other subordinates with him to help the sales campaigns, trade and consumer sales promotions, and public relations efforts.
7. ACTION PROGRAMS: The “TEEN-AGE JUICE” will be introduced in February. Following are summaries of the action programs we will use during this summer session to achieve our stated objectives. January we will initiate 1000000 rupees trade sales promotion campaign to educate dealers and generate excitement for the product launch, and provide sample crates to our selected product reviewers, opinion leaders and celebrities as part of our public relation strategy. February We will start an integrated print/displays/television campaign. The campaign will show how many features the “TEEN-AGE JUICE” have for users to reenergize them. June As the juice advertisement continues, we will add consumer sales promotion by including them to our messages. We will also support or retailer to increase our sales.
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July-August We plan to roll out a new advertisement having new views of customers who have used our drink which will help to promote our juice.
8. BUDGETTING: •
Electronic Media
•
Print Media
•
Cables operator
•
Billboards
•
Skins advert
A. ELECTRONIC MEDIA: Geo: For 15 days 2000 PST 30sec 3 times in a day 6 lacs
B. PRINT MEDIA: Nawai waqt: 35
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Front page quarter page 4 colour For 2 days 30000 * 2 = 60000 27” on after 3 days at back 7000* 8 = 56000
Jang: Only on Sundays 30000*4= 1 lac 20 thousand 236000/-
C.
CABLE OPERATORS:
Advertisement will play only at Ten Sports and on Star plus in evening from 6 to 12 pm because viewer ship of these channels are more as compare to others. For the purpose of this company decides to spend Rs. 100,000. In this budget 4 cable operators with maximum coverage in Lahore city will play ad on the above-mentioned channels in routine for 2 months.
Main cable operators Sanda to mansoora Food Street to mughalpoora 100000*2= 2 lacs/2= 1lac 36
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D. BILLBOARDS: Company decides to take billboards for its starting advertisement campaign this is a plan of 15 days rent for billboard is Rs.100, 000 each. The sites selected by the company are in the areas of Mall Road, DHS, Allama Iqbal Town, Liberty Market, kalma chowk, 5 * 100000= 5 lacs
E. SKINS ADVERT: 50 main stores/areas/shops in city Per skin cost 200 80* 200 = 16000/-
Expected Revenue Total population of Lahore = 7500000 A. ON TELEVISION: Expenditure: 600000/20% of population viewed our ad= 7500000*20 /100 =1500000 10% of viewed population tried our product = 1500000 * 10 / 100 =150000 10% of population tried became our average customer = 150000*10/100=15000 On 1 unit sold we get profit = 1.667/On 15000 units we get = 15000*1.667 =25005/For 30 days = 2
5005 * 30 =750150/37
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Revenue = 750150/-
B. ON NEWS PAPER: Expenditure: 236000/Total readership = 3000000 25% of Readership viewed our ad= 3000000*25 /100 = 750000 10% of Readership tried our product =750000 * 10 / 100 =75000 10% of tried became our average customer = 75000*10/100 = 7500 On 1 unit sold we get profit = 1.667/On 7500 units we get = 7500*1.667 =12502.5/For 30 days = 12502.5* 30 =375075/Revenue = 375075/-
C.
ON CABLE:
Expenditure: 100000/10% of population viewed our ad= 7500000*10 /100 = 750000 10% of viewed population tried our product = 750000 * 10 / 100 =75000 10% of population tried became our average customer = 75000*10/100 = 7500 On 1 unit sold we get profit = 1.667/On 13000 units we get = 7500*1.667 =12502.5/For 30 days = 12502.5 * 30 =375075/Revenue = 375075/-
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D. ON BILLBOARD: Expenditure: 500000/20% of population viewed our ad= 7500000*20 /100 =1500000 10% of viewed population tried our product = 1500000 * 10 / 100 =150000 10% of population tried became our average customer = 150000*10/100 = 15000 On 1 unit sold we get profit = 1.667/On 15000 units we get = 15000*1.667 =25005/For 30 days = 25005 * 30 =750150/Revenue = 750150/-
E. ON SKINS Expenditure: 16000/Total readership = 300000 25% of Readership viewed our ad= 300000*25 /100 = 75000 10% of Readership tried our product =75000 * 10 / 100 =7500 10% of tried became our average customer = 7500*10/100 = 750 On 1 unit sold we get profit = 1.667/On 13000 units we get = 750*1.667 =1250.25/For 30 days = 1250.25 * 30 =37507.5/Revenue = 37507.5/-
Total revenue: 2287957.5/39
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Only total expenditure: 1552000/2287957.5- 1552000 =735957.5/-
Promotion Strategy "Push or Pull"? Marketing theory distinguishes between two main kinds of promotional strategy - "push" and "pull".
Push: A “push” promotional strategy makes use of a company's sales force and trade promotion activities to create consumer demand for a product. The Freshness promotes the product to wholesalers, the wholesalers promote it to retailers, and the retailers promote it to consumers. For example Freshness promote their products via retailers such as Juices, energy drinks. Personal selling and trade promotions are often the most effective promotional tools for companies such as Freshness. for example offering subsidies on the Different flavors of juices to encourage retailers to sell higher volumes. A "push" strategy tries to 40
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sell directly to the consumer, bypassing other distribution channels (e.g. selling insurance or holidays directly). With this type of strategy, consumer promotions and advertising are the most likely promotional tools.
Pull: A “pull” selling strategy is one that requires high spending on advertising and consumer promotion to build up consumer demand for a product. If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers.
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CONTROLS: This is the main and last element of the marketing planning by using this we can check our product standard by comparing It with our standards if there is any problem arrive in marketing plan the it must be corrected. Three main functions are performed under this element of planning that is: •
Measuring
•
Comparing
•
Correcting
Measuring: We can check our marketing condition through measuring in which different types of tasks may be performed like •
Surveys
•
Questionnaires
Comparing: In controlling process we compare our product with our standards.
Correcting: If any problem occurs then correcting process will take place in which we found that from where the problem will arises.
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Consumer Motivation Innate & acquired needs Consumer can fulfill both his basic innate need (thirst) and acquired need (egoistic need) at the same time.
Emotional Motives We will target the emotional motives (pride) of consumers. The consumers will feel proud of drinking tin pack drink, and show his belonging to a particular class.
Brand personality
Brand Personality
Excitement
- Spirited - Up-to-date
Competence
Ruggedness
- intelligent
- outdoorsy
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We will later develop ads showing successful student in the college using our TEENAGE JUICE. As well as adventurous and thrilling ads, ads with the famous celebrities like Atif Aslam & Ali Zafar.
Personality and color As we are targeting the youngsters, so the packing will include base color ‘silver’, with ‘blue’ and ‘red’ fore color.
Silver wealthy Red exciting, passionate Blue authority
Consumer Perception Just noticeable Difference (j.n.d) The competitor’s quantity of tin pack is usually 330 ml. But our product’s quantity will be 350 ml (above j.n.d level). Provide less calories 35.4 kcal (above j.n.d level).
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Perceptual selection Nature of stimulus: Our brand name is “TEEN-AGE” related to teenage YOUTH. The brand name will be easy to remember, recall and the consumers can relate it to the youngsters. Expectation: It is the common perception of Pakistani people that the local made JUICES like Country, fruity etc. are of inferior quality. Similarly, the drinks in regular bottles are mostly counterfeits. In order to change the perception, we have introduced the drink in Tin pack to establish good image about the quality.
Selective perception Selective attention: We will use attractive colors like olive, orange in the back ground of the advertisement in the print media in order to get the attention of the youngsters. The advertisement will be pasted up side down, so that the consumers will pay special attention to the ad as it will create a unique look. Also in the T.V advertisements, the popular songs of Pop singers like Atif Aslam , Ali Zafar will be played as background music for stimulus generalization.
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Perceptual Blocking: We shall organize and sponsor a 20/20 Cricket Cup among the regional cricket teams. Place our product’s advertising hoarding in the cricket matches of Pakistan. Be the official sponsors of the Pakistan Hockey team. Repetition of advertisement on different channels. Placement of product in T.V dramas. Organize musical concerts. Sponsor the Geo sports news.
Perceptual organization Figure and ground Attractive colors like olive, orange in the back ground of the advertisement in the print media. Popular songs of the Pop singers like Atif Aslam , Ali Zafar will be played as background music in T.V advertisement and these celebrities will also perform in the advertisement. These celebrities are popular among the youngsters.
Consumer imagery Product positioning TEEN-AGE JUICE will be positioned as a drink for the youngsters who are enthusiastic, extroverts and energetic and who enjoy their life.
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Perceived quality Extrinsic cues
TEEN-AGE JUICE will be introduced in Tin pack to establish good image about the quality.
As we are targeting the youngsters, so the packing will include base color ‘silver’ , with ‘blue’ and ‘red’ fore color. Pop singers Atif Aslam , Ali Zafar’s appearance in the advertisement.
CONSUMER LEARNING Classical conditioning Repetition Repetition of advertisement on different channels.
Stimulus discrimination Positioning “TEEN-AGE” against the competitors (NESTLE, SHEZAN) as drink for the youngsters who are enthusiastic, extroverts and energetic and who enjoy their life.
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Instrumental conditioning Shaping Free drinks will be offered through promotional campaigns at the school, colleges, universities, shopping malls. One tin can will be given free on purchase of 2 two 1.5 liter pack of Teen-age.
Involvement theory Peripheral Route Pop singers Atif Aslam , Ali Zafar’s appearance in the advertisement.
CONSUMER ATTITUDE Tricomponent model As our product is a low-involvement product and soft drinks is mostly related to impulsive buying. We are following the peripheral route, so the following will be the sequence
Affective
Co native
Cognitive
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Attitude-towards-ad Model Our desired objective is to form the consumer’s attitude through the following route:
Exposure to AD
Export Process
Feeling from Ad (Affect)
Belief about Brand
Attitude toward Ad Export Process Export Export Licenses
Attitude towards brand
Finish Web Development
Company D Company E
Company F Company G Company H
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Situation Analysis Social Analysis: For beverages companies, take back and recycling add value. They support brand value and customer loyalty and inspire customer insights. They also demonstrate environmental responsibility. Manufacturers like Freshness are generally in a disadvantaged position for take back, due to the costs involved and the lack of many consumer touch points. Again in new products. In a typical consumer scenario, such as when a health conscious customer is perceived value. Successful take back is also driven to a great extent by economics and market factors, which in turn place large quantities of used Beverages in refreshing scenarios. This causes concern for the quality and safety of products repaired or altered outside of the intense controls fundamental to a juice production process. By governments. There are various take back channels and “Freshness” company has limited control over the actual flows. Despite the challenges posed by the logistics of existent. Freshness is also piloting different forms of cooperation with operators and distributors, such as collection Raw material at point of Distributers, as well as in various industry level schemes
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Environmental Analysis Freshness aims to be a leading company in environmental performance. By working to reduce the adverse environmental impacts of our products and activities, our customers can use our products with confidence and good conscience. Combining environmental issues into daily work makes business sense for Freshness. By working to reduce the adverse environmental impacts of our products and activities, we minimize risk, ensure legal compliance, gain stakeholder acceptance, and help advance the long-term success of our company. Our customers can also use our products with confidence and good conscience. Through our environmental strategy, we work to ensure that our products are safe for Health use. Teen-age juice by Freshness Company is a trusted brand and we take that trust seriously.
Freshness environmental strategy: Freshness is a leading company in environmental performance. Freshness’s environmental strategy is based on lifecycle thinking, beginning with the extraction of raw materials and ending with recycling and disposal of as well as the reintroduction of recovered materials into the economic system. Our goal is to make people healthy and fresh, which have no undue environmental impact, consume energy efficiently, and that can be appropriately reused, recycled or disposed of. Freshness's environmental strategy is integrated with our business strategy. Our four business groups have set environmental targets for their own activities to implement our corporate level environmental strategy.
Main Issues in Focus: Three important global issues remain at the forefront of much of Freshness’s environmental work. End-of-life products and energy efficiency. * Substance management during the planning and design of our products, one of our main focus areas is their material content. We are continuously analyzing the materials used in our products with the aim of reducing the amount of potentially hazardous or Harmful content.
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* we have many years to exist in a market for our own arrangements for Juice and other beverages , as well as for make strong customer relationship. Freshness is assuming product responsibility as defined by the directive as it is implemented throughout Pakistan. And of course in Centers and Flagship stores in all markets where we do business.
*
Energy efficiency In our product creation as well as our own operational activities, an important area for continuous performance improvement is in energy efficiency. We have consistently been able to reduce the energy intensity of our products.
Supply Chain: We are committed to reducing the environmental impact of our business. We expect all Beverages suppliers to take a similar approach. At Freshness, we believe in long-term partnerships with suppliers who share our approach to ethical business. Together we work hard to anticipate risk, demonstrate company values, enhance our governance practices, increase employee satifaction and look after the communities where we do business.
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APPENDIX
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Country
FRESHNESS
Resources Logistics Beverages Experience System design skill Brand power Consumer Relationship Cleverness Industrial design Music solution Breadth
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CONCLUSION Freshness is become to world leader in Beverages’ Industries, driving the transformation and growth of the converging Healthy and Energetic Environment. Freshness is about enhancing taste and exploring new way to feel fresh and healthy. Explore the full potential of TEEN-AGE with Different Flavors coming in market with full of competition
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References • •
• •
• • • •
www.google.com www.freshness.com Visited seniors of Superior University www.superior.edu.pk Visited teachers By own thinking Concern Books Related to Report Writing Koen, B. V., 2002. “On the importance of "presence" in a web-based course”, Frontiers in Education Conference. Vol. 1, pp. T3E/21-T3E/26.
•
Zou, P., Marsden, P. and Ong, E. 2002. The application of E-learning in construction management programs”, AUBEA Conference.
•
Wang, A.Y.2002. “Predictors of web-student performance: The role of self-efficacy and reasons for taking an on-line class”, Computers in Human Behavior, Vol. 18, No. 2, pp. 151-163
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