Marketing Plan on Juice

Marketing Plan on Juice

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Presented to: Madam Naima Khurshid

Presented by: Zubair Rashid (CIIT/FA09-MBA-036/SWL)  DISCOVER NEW BOOKS

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Imran Babar (CIIT/FA09-MBA-064/SWL)

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Farhan Saeed (CIIT/FA09-MBA-062/SWL) Syed Mubashir (CIIT/FA09-MBA-060/SWL) Fozia Mumtaz (CIIT/FA09-MBA-088/SWL)

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY SAHIWAL

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DEDICATION Read Free For 30 Days Dedicated to our loving parents, teachers and especially out friends/class

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ACKNOWLEDGEMENT Read Free For 30 Days 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 Naima Khurshid. Her keen interest and invaluable guidance, in every stage of the

project is greatly appreciated.


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Table of Contents 1 Introduction................................................................................................................ 5 2 Objectives and Issues ................................................................................................. 7 Read Free For 30 Days 3 Executive Summary ................................................................................................... 9 4 Situation Analyses .................................................................................................... 10 4.1 Target Market Summary .................................................................................. 10 4.1.1 Market segmentation .................................................................................. 10 4.1.2 Market Needs .............................................................................................. 10 4.1.3 Market Trends ............................................................................................ 11 4.1.4 Market Growth ........................................................................................... 11 4.2 SWOT analysis .................................................................................................. 11 4.2.1 Strengths .............................................................................................................. 11 4.2.2Weaknesses .................................................................................................. 12 4.2.3 Opportunities .............................................................................................. 12  DISCOVER NEW BOOKS  READ EVERYWHERE  BUILD YOUR DIGITAL READING LISTS 4.2.4 Threats ........................................................................................................ 12 4.3 Competition Overview ....................................................................................... 13 4.4 Distributors Review ........................................................................................... 15 4.5 Environmental Factors ...................................................................................... 15 4.5.1 Political factors ........................................................................................... 16 4.5.2 Social factors ............................................................................................... 16 4.5.3 Demographic factors ................................................................................... 16 4.5.4 Technological factors .................................................................................. 17 5 MARKETNG STRATEGY ..................................................................................... 17 5.1 Positioning Strategies ........................................................................................ 17 5.2 Product Strategy ................................................................................................ 18 5.3 Pricing Strategies ............................................................................................... 18 5.4 Promotion Strategies ......................................................................................... 20 5.5 Channels of Distribution ................................................................................... 21 6 Market Budget ......................................................................................................... 22 6.1 Market Research ............................................................................................... 22 6.2 Budgeting ........................................................................................................... 24 1. Electronic media .......................................................................................... 24 2. Print Media .................................................................................................. 24 3. Cable operators ............................................................................................ 25 4. Billboards ..................................................................................................... 25 5. Skins advert ................................................................................................. 25 6.3 Action Programs ................................................................................................ 26 7 Measurement, Review and Control ......................................................................... 26 7.1 Organizational Structure .................................................................................. 26 7.2 Methodology for Review and Evaluation ......................................................... 27 REFERENCES ............................................................................................................ 28

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1 Introduction


People started too perished under the scorching heat of summer in our country. They need an energy drink to refresh themselves. ¼nergizer 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, sportsmen become tired due to the work burden and sunlight which make them feel loose. They need an energy drink that makes them re-energize so they may be able to perform better again and feel refresh.

Ingredients are:

Apple and Orange Pulp

.

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Company¶s Vision Statement Read Free For 30 Days ³To 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.  DISCOVER NEW BOOKS

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Company¶s Mission Statement ³To 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 Punch Line: ¼nergizer -" Taste with low fats" - People in Pakistan generally refers cold drinks as µPure Taste¶. So ¼nergizer wants to give an impression that whenever a customer think of µPure Taste¶, they should think of Freshness. So the Punch line makes µTaste¶ equal to Freshness. Of late, we also have the ³100 % pure taste´.

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2 Objectives and Issues

³Making our customers winners by constantly exceeding their expectations.´ Its chief objectives are:

1

To achieve compatibility with national voluntary standards on environmental management systems.

2

To build mutual trust with consumers, governmental authorities and business partners.


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To ensure continuous improvement of Company environmental performance.

4

Conservation of natural resources and minimization of waste.

5

Total compliance with the laws.

6

To establish the benchmark for good business practice.

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Employing new technologies and processing.

8

By committing to resources, both human and financial.

9

Measuring the cost and benefits to business of its activities.

10 Monitor progress. 11 Audit results. 12 Review targets. Objective and Goals must be smart for the purpose of marketing plan as we know SMART means specific, measurable, attainable, realistic and timely First Year Objective:

The objectives are 1

Growth in all regions.

2

To earn a good reputation and create a good image of the company.

3

Satisfy our customer

4

Provide high quality Fruit Juice.

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Second Year Objectives:

1

Increase the advertisement.

2

Generate 60% brand awareness with in the consumers target market.


Issues Issues regarding of the new business is as following in Pakistan: 1

Working conditions and treatment of workers & Violation of the basic rights of workers

2

The use of child labour.

3

Relations with shareholders, other investors, employees, government and with


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suppliers. 4

Treatment of customers - e.g. honouring the spirit as well as the letter of the law in respect to warranties and after sales service

5

Corporate behaviour e.g. when negotiating deals

6

To check that ethical principles are being pursued

Following are also the issues that ³¼nergizer´ will 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.

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3 Executive Summary

Freshness Company Limited is a Pakistan-based beverages company. The Company is engaged in manufacturing, processing and sale of Beverages. The segments of the Company include juices. The company is trying their level best to differentiate themselves from other local & international companies and trying to win the competition in juice industry by adopting modern trends and technologies operational  the DISCOVER NEW BOOKS  READ EVERYWHERE inboth BUILD YOUR DIGITAL READING LISTS fields as well as in marketing of their products. In this detailed project we covered all most all the topics related to the marketing plan. First of all we presented the companies¶ introduction which included the Ingredients. We described MARKET analysis, and the next step we do experiment about SWOT analysis who its effect on our brand, competitor analysis, Distribution Channel Overview. We describes PEST analysis about juices and then we explain the marketing Strategies like as(product strategy , price strategy and distribution strategy ,communication strategy), so we explain and other things related to a marketing plan such as marketing budget, organizational structure and evaluation. Innovative technology, , Globalization, Matrices, , Financial Review, Porter¶s five model, Industrial analysis, Five Ws and Future Plans Of Company.

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4 Situation Analyses Read Free For 30 Days 4.1 Target Market Summary ¼nergizer 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.

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The customer of the ¼nergizer consists of following: Geographic¶s

The ¼nergizer geographic target area is currently Lahore. We are supplying our product to all area of the Lahore. Here we check the Density (Urban, suburban, rural) area that it is suitable for our product or not, and check the climate of the area. Demographics

There is an almost equal ratio between male and female and also kids. And we are focusing the market according to their age, family size, income, occupation, education, religion, race, nationality. 4.1.2 Market Needs

People want the juice at the low price with high quality, and which is easily available in the market from which they can easily purchase.

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4.1.3 Market Trends

This concept involves understanding and to decide on how to buy and sell in the market, since it is possible to research the factors leading to the current market condition. By taking efficient market hypothesis into consideration, it is possible to understand how the

Read Free to Forconsider 30 Days shaping the market reached the current position, which factors are likely market, and what could occur to change the current trend at some point in the future. Here we will see our customer is focus on what type of juice and now what are the trends in our target market, then according to it we will offer the product. 4.1.4 Market Growth

Here we shall see that our target market product is in growth or not, we will check that  DISCOVER NEW BOOKS  READ EVERYWHERE  BUILD YOUR DIGITAL READING LISTS our product is right for that age or gender of people or not, and we offering product to right people like as student and sports-man, if there is any gap then we again create the plan for the growth. Tin Pack Protection packing of our product can growth the product and it will differentiate our product from competitors.

4.2 SWOT analysis 4.2.1 Strengths y Updated technology plant y

Quality product

y

Specialists available for specialized jobs and tasks

y

Very experienced staff to its credit

y

Medical insurance of employees

y

Pakistani made

y

Targeted to low and middle class people.

y

Reasonable price

y

Approved from health department ministry of health

y

International standard packing

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y

Artificial flavors free

y

Expiry date above 3 months

4.2.2Weaknesses

y

new juice industry

y

small distribution network

y

Only three flavor.


4.2.3 Opportunities

y

 DISCOVER NEW BOOKS Increase the distribution network.

y

Pursue the newer technology & techniques.

y

Market is very big & attractive.

y

Take-over of the distributor

y

Gain control of more than 50% of the market share.

y

Increased demand of high quality products due to Lahore being a developed city.

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4.2.4 Threats

y

Political instability.

y

No political affiliation

y

lack of production

y

lack of distribution

y

new entrance from the exiting competitors

y

so many competitors

y

retaining consumers

y

Economic instability.

y

Increases of general sales tax 12

Increase in prices of electricity (increase in manufacturing overheads, hence

y

decreasing profit y

margin unless prices are increased)

y

Imposition of heavy taxes on import of machinery


4.3 Competition Overview

³¼nergizer´ Competitors

The competitors of ³¼nergizer´ juice are more than 10. Nestle is leading market right  DISCOVER NEW BOOKS  READ EVERYWHERE  BUILD YOUR DIGITAL READING LISTS now and other companies are far away from it. Nestle 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 Nestle and other juices which have large market share. The main competitor is Nestle.

Nestle Different Nestle juices with different size and price is given below.

Product Type

Size

Price

NESTLE PINEAPPLE

200ml

20

NESTLE JUICE ORANGE

200m

20

NESTLE JUICE MANGO

200m

20

NESTLE RED GRAPE

1000ml

95

200ml

20

1000ml

80

NECTAR

NECTAR NESTLE RED GRAPE NECTAR NESTLE

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MANGO+ORANGE SLIM

Qualities of Nestle

High availability


Large range of flavors Standardized and attractive packing large promotion and market coverage Available in Various weights packing.


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Price

Different sizes are available in various prices. Minimum price is 20 Rs. Promotion

They promote this product through Electronic media Advertisement through telephone, television (Cable), and the Web, b. Print Media Advertisement through Newspaper and magazine. Billboard Advertisement through billboard on the road or most visitors places. Place:

Nestle has wide networks all over Pakistan it has more than 300 distributors in all over four provinces of Pakistan.

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4.4 Distributors Review To assure the availability of its product ³¼nergizer´ juice has established effective network of registered dealers. The main target of these juices is Lahore. From vertical Read Free For 30 Days marketing system, we use conventional distribution channel

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.  DISCOVER NEW BOOKS

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The end consumer would then purchase ³¼nergizer´ 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 ³¼nergizer´ will be made available all over Lahore. Wholesalers and retailers are more independent, and each is trying to maximize the profits, no channel member has much control over the other members, and no formal means exists for assigning roles and resolving channel conflict. One channel member owns the others, has contracts with them.

4.5 Environmental Factors There is following environmental factors

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Political Economical Social Technological 4.5.1 Political factors


Marketing decision are strongly affected by development in the political environment, that influences or limit various organizations and individual in a given society like as( laws, government agencies and pressure groups). Legislation affecting the business around the world it covering issues such as competition fair trade practices, environmental protection, product safety, truth in advertisement, consumer privacy, packaging and labeling, child labour, pricing and other important areas.  DISCOVER NEW BOOKS

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4.5.2 Social factors

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. A consumer behavior also influences by social factors such as the consumer small groups, family and social roles and status. in the groups we will talk about upper class, middle class, working class, lower class, in the society opinion leader is a person who is special personality , skills and knowledge that influences others, from which positive word of mouth has been created. In Family we see that the target market is family oriented or individual, because it influences the buying behavior 4.5.3 Demographic factors

The demographic is major interest to marketers because it involves people, and people make up markets. Demographic is study of human populations in terms of size, density, location, age, gender, race, occupation, and other things. If there is changes in the density, location, age, gender, race, occupation then automatically consumer behaviour will change,

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In Density urban and rural people have different thinking about the product, different location people have different perception, and different age people use different product from each other, so make the product according to the target market, 4.5.4 Technological factors

Read Free For 30 Days Company has technology with which they can compete in Lahore first and then all in Pakistan and now company is investing in their infrastructure to not only expand but also to upgrade their existing structure. The technology environment changes rapidly. Think of all of today¶s common products that were not available 100 years ago. So there is some forces that create new technology, then they create new product and market opportunities (Innovation). In our product we can use new machinery for making products and for labeling or packaging the material.  DISCOVER NEW BOOKS

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5 MARKETNG STRATEGY The market strategy is based on positioning of the product, product nature, about pricing, channels of distribution, about promotion and marketing research.

5.1 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 ³¼nergizer´ them in an instant. We have to position our product on the base of quality, cost and nutrition¶s. In the positioning strategy company is trying to create a good position of brand in the consumer mind.

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5.2 Product Strategy When placing a product within a market many factors and decisions have to be taken into consideration. These include: Product design Product quality


1 Product features 2

Branding

While creating the product strategy we will focus on these 4 elements Product variety

Our product would be available in the following flavors:1

Apple

2

Orange

3

Grapes

4

Mix-fruit


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Brand Name

The name which we have chosen for our product is ³¼nergizer´ Quality

High quality assurance would be our first priority. This would be ensured by: 1

Implementing high quality standards

2

Total quality management

3 Acquisition of the high quality raw materials Design ³¼nergizer´

is a sweet, refreshing Juice with an eye catching Tin pack.

5.3 Pricing Strategies We are doing the value based pricing strategy. Because we allocate the cost to the product on perception of consumer about the product 18

Amounts are in Pak Rupees Total cost per kg = 16 Units produced per kg = 4


Per unit production cost= 16/4= 4/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 = 4+2.00+.15= 6.15/Profit margin per juice pack: 3/ (distributor)/Invoice DISCOVER NEW BOOKS  price READ EVERYWHERE  BUILD YOUR DIGITAL READING LISTS Selling price per juice pack per juice pack = 15.5/-

Selling price per box containing 27 juice packs (distributor) = 418.50/Profit per unit (manufacturer) = 3 Profit per pack sold (27 juice packs) = 81 Trade price= 15.50

PRICE

AND

Retail price= 20.00

QUALITY GRID:

This grid shows what pricing strategy a firm is

perusing:-

ECONOMY

PENETRATION

³¼nergizer´

SKIMMING

PREMIUM

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According to this grid we are offering high quality at low price. So we are following


penetration strategy.

5.4 Promotion 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.  DISCOVER NEW BOOKS

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Criteria for Promotion

In promotion our main objective is to provide: 1

Awareness

2

Knowledge

3

Liking

4

Preference

5

Purchasing

Main Sources of Promotion:

1

Advertising:

Company directly not involve in the promotion but paid some amount for the awareness of the product , it has been done by third party( advertising agency) for example Road side board 2 Sale Promotion Short term incentive has been given for the sale of product in the shape of discount, coupons, and displays. 3 Public Relation

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Building good relations with the others company or publics by obtaining favorable publicity, building up a good corporate image, it is also indirectly promotion. Like as CSR. 4 Personal Selling Personal presentation by the firms sale force for the purpose of making sales and Read Free For 30 Days building customer relationship.

Push or Pull Strategies Marketing theory distinguishes between two main kinds of promotional strategy - "push" and "pull". Push:

A ³push´ 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  DISCOVER NEW BOOKS  READ EVERYWHERE  BUILD YOUR DIGITAL to wholesalers, the wholesalers promote it to retailers, and the retailers promote it toREADING LISTS

consumers.

Pull: A ³pull´ 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.

5.5 Channels of Distribution

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We are doing conventional distribution channel because we are trying to low our cost and  DISCOVER NEW BOOKS

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maximize the sale, so we use wholesaler and retailer for the sale of product

6 Market Budget 6.1 Market Research Using research, we are identifying the benefits that our target market segments value. Using the research tools as: 1

Feedback from test market

2

Surveys

3

Questionnaires

Brand awareness research will help us determine the effectiveness and efficiency of our message.

Example: 1. I enjoy juice that is:

1 Fresh squeezed 2 Made from concentrate 3 Without pulp 4

With some pulp

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5

Anytime at all

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Others:

2. I usually prefer the following brands of juice:

1

Nestle

2

Benz

3

Shezan

4

Other:


3. I drink juice because:

1

It's a good source of energy

2

It's a good source of vitamins

3

It goes well with other foods

4

It tastes great

5

Others:


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4. about the price of juice:

1

I don't care much.

2

I buy less when the price goes up.

3

I buy extra on sale & store them.

5. About the brand(s) I buy:

1

I often switch based upon price

2

I sometimes buy juice

3

I always buy the same brand

4

Other:

6. I own a juice machine and squeeze my own juice.

1 Yes, sometimes 2 Yes, everyday 3

No...

7. I am:

1

Female

2

Male

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8. My age group is:

1 Under 10 2

11-20

3 21-29 4 30-39


5 40-49 6 50-59

6.2 Budgeting 1 Electronic Media 2 Print Media 3 Cables operator 4 Billboards


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5 Skins advert 1. Electronic media

Geo:

For 15 days 20000 Per day 30sec 3 times in a day 6 lacs 2. Print Media

Nawai waqt

Front page quarter page 4 colour

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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/-


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3. 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

1

Sanda to mansoora

2

Food Street to mughalpoora

100000*2= 2 lacs/2= 1lac 4. 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 5. Skins advert

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50 main stores/areas/shops in city Per skin cost 200 80* 200 = 16000/-


6.3 Action Programs

The ³¼nergizer´ 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.  DISCOVER NEW BOOKS

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February We will start an integrated print/displays/television campaign. The campaign

will show how many features the ³TEEN-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. 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.

7 Measurement, Review and Control 7.1 Organizational Structure Management

Title

Chairman of the Board

Name

Age

Title Date

Start Date

Zubair Rashid

Chief Executive Officer/ Managing Director, Director Imran Babar Head of Finance and Control, Secretary

AQEEL

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Business Names Business Name

Freshness water Limited Freshness Pakistan Ltd.


General Information

Number of Employees:

2,345 (As of 12/31/2010)

Outstanding Shares:

784 (As of 12/31/2010)

Shareholders:

671 (As of 12/31/2010)

Stock Exchange:

KAR

Fax Number:

(040) 578-9302

 DISCOVER NEWImran BOOKS Babar,  READholds EVERYWHERE BUILD YOUR DIGITAL LISTS FRESHNESS¶s chief marketing officer, overall responsibility forREADING 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

7.2 Methodology for Review and Evaluation .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: 1

Measuring

2

Comparing

3

Correcting

Measuring We can check our marketing condition through measuring in which different types of tasks may be performed like

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1

Surveys

2

Questionnaires

Comparing In controlling process we compare our product with our standards. Read Free For 30 Days

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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REFERENCES 1

By own thinking

2

Concern Books Related to marketing K, Philip. (2008), Principles of Marketing, 12 e th

1

http://www.scribd.com/doc/26821627/Nestle-Juices-Project

2

www.nestle.pk/pdf/price_list_Jan_2010.pdf

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Marketing Plan on Juice

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