Marketing Plane

7/28/2019 Marketing Plane

http://slidepdf.com/reader/full/marketing-plane 1/20

Executive summary

Pakistan is a tropical country and has accorded a favorable reception to thirst

quenchers such as fruit juices and aerated drinks. Ready to serve orange juice is

a beverage prepared from clarified orange juice. When chilled the RTS

beverage makes for a nutritious and refreshing drink. The nutritive value of real

fruit beverages is far greater than that of synthetic products, which are being

bottled and sold in large quantities throughout the country. If real fruit juices

could be substituted for these synthetic preparations, it would be a boon to the

consumer as well as the fruit grower.

Pakistan is a market of diversity – diverse with regards to incomes, price points

of products, culture and preferences and a marketer has to get use to these

diverse characteristics of the market.

Drinking juice is not a part of our culture. We drink water with our meals but in

the West one starts the day with breakfast and a glass of juice. Juice is to a

great extent considered as a luxury not a necessity in our society, surely but

slowly things are changing mainly in the urban and semi urban areas, where the

population is getting more and more health conscious and are realizing the

important nutrient values of fruit and are making them a part of their daily diet.The companies in this Rs. 100 crore industry will have to organize various

promotional activities from time to time mainly to increase sampling and to

educate the consumers about packaged fruit juice that it is as pure and nutritious

as fresh juice which is perceived as fresh as it is extracted in their presence i.e.

actual or assumed.

There are two main brands in this segment of non- carbonated drink markets;

they are ‘Real’ from Dabur and ‘Tropicana’ from PepsiCo. These two players

command around 80% market share in the organised sector.

We can observe this industry growing and new players entering the market. Inrecent times we have seen the entries of some international brands, like Berri[Australia], Ballantyne [Australia], and Tipco [Thailand], with the intention tostrengthen their hold in Pakistan and to grow with the market

- 1 - 1



Company

SABT Enterprises Pvt. Ltd will be entering the food processing industry with its

first launch i.e. an Orange fruit juice.

Three of the four investors have full operational responsibilities. Khakan and

Faisal are the co-founders and have both entrepreneurial and industrial

experience. Alveena and the rest of the group members brings operational

management and financial skills to the operation.

Pursuant to our company policy stating "Quality First, Credit Prominent", we

process our orient juice with strict production standard, quality control and

sophisticated processing technology, we at all time provide our consumers the

natural and healthy orange fruit juice.

Our Start up costs, listed below, has been financed to date by the investment

from its owners. Following are the parameters:

Particulars AmountLand & site development;[x[ acres @ Rs. [y] lack per acres xxx

Building and civil works xxx

Plant and machineries xxx

Miscellaneous Fixed Assets xxx

Preoperative expenses xxx

Preliminary expenses xxx

Technical know-how and engineering fees xxx

Contingencies @ 10% xxx

Capital Expenditure xxx

Margin money for working capital xxx

Project cost xxxx

- 2 - 2



Market Analysis

Market Analysis Summary:

One can sense an evolution that the industry has seen with development in the

tetra- pack market, there also has been a natural progression from drinks to

nectars to juices and while traditionally fruit drinks were aimed at children, the

new brands like ‘Nur pur , Nestle, and Malt’ have focused on young adults and

professionals.

Although fruit drinks focus strongly on out of home consumption, the juices and

nectars have been concentrating on takeaways or in-home consumption with

more choice coming in, the tetra- pack market is likely to witness further

segmentation.

Packaged fruit juices are getting recognized as social drinks now, with dominant

consumption being observed in the company of family and friends. People have

started to perceive fruit juices as anytime beverages, with consumption being

spread more or less evenly between the mid mornings, afternoons and

evenings. And generation now is as much inclined to sipping fruit juices as colas,

with teenagers driving the maximum trials.

If the findings of a usage and attitude study conducted by market research

agency PAK Research across 1200 adults in Sec A and Sec B households in

Islamabad and Karachi are anything to go by, then its not just champagnes and

colas that qualify as social beverages.

- 3 - 3



Market Segmentation:

There has been no general acceptance of the product forms in the fruit beverage

market. The consumer is basically concerned if it is a fruit juice or synthetically

constituted product. Product segmentation, therefore, should be clearly

delimited.

• Under the fruit drinks the first segmentation is between real fruit drinks and

synthetic drinks.

The real fruit drinks are based on natural fruit pulp or juice.

The synthetic drinks are synthetic products with fruit or other flavors.

• Broad taste preferences could be another way to define the market. The

market is at present also segmented on the basis of fruit pulp content. For

the purpose of segmentation, on the basis of fruit pulp content. For the

purpose of segmentation, on the basis of fruit pulp content, market can be

segmented as:

Fruit juice with pulp content more than 80%. Brands falling in this

category are NURPUR etc.

Fruit Nectar with pulp content between 40% to *0%. Nestle come in

this category.

Fruit Drinks with pulp content less than 40%. Frooti and Malt are the

popular brands in this category.

•

Segmentation could also be on the basis of the benefits provided to theconsumer:

One benefit could be the nutrition content it gives to the consumer

so one market could be the health-conscious segment.

- 4 - 4



Second benefit is thirst quenching, so the other segment could be

those buying the drink or nectar for satisfying the thirst.

• Another very broad segmentation can be on the type of situation in which

the drink or nectar is used:

People who are on the move i.e. Outdoor use e.g. those traveling.

People who are using it on the breakfast table as a part of their menu

i.e. in-house use.

Players very often choose one or more of such segmentations to differentiate

their product and target market and accordingly plan their distribution and

promotion patterns.

Market Needs:

Consumers usually, are not going to accept something that doesn’t taste good

even if it is good for them or has certain benefits. Companies working to bring a

new food product to the market have two questions—does it taste good and will

consumers buy it?

Industry analysis:

The Rs 100 crore packaged fruit juice market is estimated to be growing at 20%

to 25% annually, with Tropicana and Real holding 40% market share each.

The market can be categorized in terms of product content and there are three

major product contents available.

• Drinks: Juice with pulp content less than 40%,

• Nectars: Juice with pulp content between 40 - 80%,

• Juices: Juice with pulp content more than 80%,

- 5 - 5



Nestle orange nectar, a orange drink, was introduced in the tetra pack in 1985

and since then has been a leader in its segment. The market has suddenly

picked up since 1994-95 and a few players have emerged as market leaders.

Leading Manufacturers of Fruit Beverages in Pakistan:

Company Brand Flavors

1. Mava Frooti Mango, Guava, Pineapple, Strawberry& Orange

Appy Apple

2. PepsiCo Ltd. Tropicana Orange, Nature Sweet, Apple,Grape, Pineapple, Tomato, Mixed Fruit.

Slice Mango, Litchi, Orange & Guava.

3. NUR PUR Real Grape, Guava, Orange, Pineapple,Tomato, Mixed Fruit, Litchi, Mango.

Real Active Orange, Apple

5. Coca Cola Maaza Mango

14. Modern Foods Rasika Mango, Guava

15. Eastern Fruit Efil Mango, Litchi

16. NESTLE Nestle Apple, Mango, Processed Guava,Pineapple, Orange

[The above mentioned list consists of the brands noticeable in metros and as

such there are a large number of small canning units scattered all over the

country catering to niche markets.]

- 6 - 6



Product

Orange fruits

are small oval

fruits with a

thick orange

skin, soft gr

flesh and white

seeds. They are

rich in many

Vitamins,

flavonoids and

minerals. In

particular, they

contain a high

amount of

Vitamin C

(more than

mangos and

apples), as

much

potassium as

bananas and a

good amount of

beta-carotene.

- 7 - 7



Anti Oxidant properties of orange Fruit

It is important to note that orange fruits contain a remarkable amount of Vitamin

C, E and A. Vitamin C is a water-soluble antioxidant that has been proven to

protect our body from free radicals, dramatically improving the health of

individuals who consumed it regularly against all kinds of disease, from

cardiovascular problems to cancer and obesity. Vitamin E has been proven to

have similar effects, but is fat-soluble and thus is complimentary to Vitamin C in

its functions. orange fruits contain both these vitamins in high amount, which

help protect our body against free radicals from all fronts. Orange fruit seed are

where the most of the Vitamin E and dietary fiber are found.

Summary of Orange Fruit Health Benefits

Eating orange fruit is clearly a healthy choice, particularly useful in these cases:

• Prevents Asthma

• Prevents wheezing and coughing, especially in children

• Protects our DNA from mutations

• Provides a healthy amount of antioxidants and vitamins

• Helps prevent colon cancer thanks to a high fiber content

Product Description:

This product is actually a mix of 60 percent pure orange juice, water, and cane

sugar. With a strong, accurate kiwi flavor, this could actually turn out to be a

pretty tasty any other juice substitute – a possible motivation for placing a high-

visibility Vitamin C label across the front of the package.



SWOT Analysis:

Strengths:

• Innovative flavor hence we are bound to get the attention with proper

communication.

• Committed, capable and ambitious management.

• We can gain incentives as we will be a SSI and so we can pass these to

capture more market.

• Flexibility in our operations as initially we will be confined to few cities so can

focus our efforts on the tasks.

Weakness:

• Our distribution set up initially will be weak when compared to the others in

the market.

• We are entering the market with only one flavour and our next flavour will be

out only after six months of the first launch.

• Our financial constraints with respect to our competitors demand that our

resources are used optimally.

• We will not be able to price our product lower than the others in the market

as we have a longer distribution channel and managing this channel also will

be an important task. Also as our product is not available in Pakistan its cost

of acquiring increases and therefore it cannot be sold at a low price in the

initial stage.



Opportunity:

• The market is in a growing stage and fairly small in terms of market share as

compared to other thirst quenching and healthy drinks so at this stage our

entry is expected to be noticed.

• The market has a presence of only few players and they are not too

aggressive in their acts.

• More and more people in the urban areas are getting health conscious and

are making fruit juice a part of their daily diet. Hence the market is growing.

• The government policies are expected and are showing trends to encourage

the food processing industry.• The orange fruit can be then cultivated in Pakistan in the regions of Karachi,

Islamabad, Lahore, Multan, Peshawar, Hayderabad, Larkana, Guwadar Port

to cut down the cost of imports of the fruit.

Threat:

• Our competitors are deep pocketed and they could harm us by getting

aggressive in their promotional activities.

• The competitors have strong brand images in the market because of their

other businesses and their presence in the market from an early stage.

• Pakistan market has characteristic of serving a wide variety people which is

a challenge for all the marketers.

• Others can adopt the flavor and the value of a unique flavor could be

neutralized soon.



Decisions taken after S.W.O.T analyses

Processing PlaceWe selected a place that is suitable for our factory, easy to access,

cheaper in cost concerning to our production

Men power (labor)We have to hire cheaper and skillful labour and experienced

administration for the success of our product

PlantFrom different sources and research we found that American

Mitsubishi plant is much cheaper and can fulfill our requirement.There are three different units of this plant:

1. for cleaning

2. for abstracting juice3. for packaging

Implementation of plan

Marketing plan

Mission statement

Our mission is to provide the highest quality of fruit juices. We exist to attract and

maintain customers. When we adhere to this maxim, everything else will fall into

place. We will ensure that our products will exceed the expectations of our

customers i.e. we develop a competitively superior value proposition and value-

delivery system.

Marketing objectives1. Maintain positive growth at each quarter (not standing seasonal sales

pattern).

2. Slow and steady market penetration.



Financial objectives

• Realize a 3% increase in the gross profit margins through efficiency gains

every year.

• Reduce the logistic cost associated with product delivery by 10% by the end

of the first five year of operation.

Increase in profit margin through efficiency and economy scale gain.Marketing mix

PositioningOur product will position itself as a premium quality product with comparativelyhigh price and for every age.

PricingPrice of the product will be fixed/finalized after the comparison with thecompetitor’s product price. Place

As we are distributing our product in five major cities of Pakistan and we havelarge international market in Middle East.

Distribution patterns:

Distribution network and reach are vital factors for success of the brands in thefruit beverage market. It is mainly the distribution strategy that the companies

are focusing upon.

The distribution is mainly done through stockiest. The companies also have

franchises that work as a separate entity. Some companies also have their C &

F agents to give the product to the distributors, who further distribute to the

retailers. To co-ordinate the things properly with the distributors, companies

keep their own field force.



Below the figure shows the many ways the companies in this industry are seen

to be operating:

The urban Pakistanian retail sector has traditionally been structured around

three small retail entities—the grocer, the general store and the chemist.

• The grocer stocks non packaged, unbranded commodities such as rice,

flour, and pulses, as well as branded fast moving consumer goods (FMCGs)

• The general store stocks only branded, packaged FMCGs.

• The chemist, a part from dispensing pharmaceuticals products, sells branded

FMCGs such as personal care products and health foods.

• Departmental stores and supermarkets.

• Others:

Bakeries and confectioners

Fruit juice/ tea stall/ vending machines

Company’s Manufacturing Facilities

Franchises Stockiest Agent

Retailer

End User

Distributor



Ice-cream parlours,

Electrical and hardware stores and

Non-food boutiques, etc.

These retail outfits stock branded FMCGs that gel with their businesses.

Supply chain integration does not quite matter in the case of the small retailer

because of the small scale of his operations. He normally deals directly with

wholesalers with whom he is able to negotiate rates.

Retail consolidation (consolidation of buying power) among supermarket

operators is unlikely to hurt small retailers simply because it will affect

manufacturers directly, who will not want to compromise on the distribution reach

to offer large volumes to a few big retailers.

The small retailers form an integral part of the wide distribution network set up by

the large FMCG companies. Marketers have also found that private/ store

brands from supermarkets can prove to be a threat to their own brands and

hence, desist from encouraging retail consolidation.

Distribution

Cities no. of distributors

1. Karachi 32. Lahore 23. Multan 24. Peshawar 25. Faisalabad 26. Islamabad 2

7. Rawalpindi 2



Packaging

Juices can be found in every type of packaging. In early days, cans and glass

bottles were the only available types of packaging. Today, the assortment

includes PET bottles, sports bottles and brick packs.

Introduced to reduce shipping weight or to allow small children to pour their own

juice, PET bottles provide another benefit: shatter- resistant properties. Juices

found in refrigerator case typically come packed in gable-top cartons. The

newest innovation in cartons is the re-closable plastic cap. Some single- serving

juice drinks come in sports-top PET bottles. Some companies concentrate on

proprietary packaging, with easy grips or unusual eye-catching shapes.

Packaging is an important part of promotion today hence the company has

decided that orange juice will be served in transparent PET bottles for all the

quantities and will carry the company Logo/ Symbol, nutrient value of the juice

and the statutory requirements like the ingredients etc.

Promotion Strategy

The promotion strategy will seek to first create customer’s awareness and taste

concerning the product. The slogan/ message that our product will seek to

communicate is TASTY & HEALTY.

Promotional Strategy:

The promotional efforts will be on two fronts i.e. on our direct customers and the

end consumers. This should ensure orange juice a push from the distributionand a pull from the customers.



All our promotional efforts should serve some basic criteria like the activities

should carry a feel good appeal and should enhance emotional attachment of

the target with orange juice.

Orange juice will be advertised in cost effective media like newspapers, radios,

hoardings, at bus stands, and the most important and effective will be through

TV advertisements. There will be some cosmetic variations of these

advertisements when they are launched across the country. Regional celebrities

who appeal to consumers may also be used in advertisements intended for

various regions these celebrities will represent our positioning.

Sales Promotion:

We will be tying up with few other marketers and piggy backing our product on

theirs; this is expected to give us access to the shopping list and homes of our

target. Marketers that we intend to tie up with will be the ones that have a place

in the shopping list of the lady of the house e.g. branded wheat, salt, frozen

vegetables, magazines etc.

The company will also tie up with supermarkets and other stores, which are

mainly volume oriented, by piggy backing our product on their in-house products.

Both the above routes will help us in sampling our products to our target

customers and in the right manner.

Attention will be given to the presentation part too, POP materials, store

displays, stickers etc. will be used to create awareness at the retail outlet.

Advertising:

Advertising will be exercised with a media mix, which will consist of:

• Print Media:



Print Media will be used in the form of news papers of various languages. Print

media will be mainly used with a purpose of communicating and complimenting

our sales promotion schemes to pursue and gives us visibility.

• Audiovisuals:

Television as a media will be used to inform the qualities and benefits of orange

juice and give us visibility and build the brand image with the customers. The

combinations of TV channels will be used at different intervals. The channels will

be selected keeping in mind our target i.e. the lady of the house – channels

showing good TRP ratings for their soaps; the influencers i.e. her offspring –

music, movie channels, cartoons, etc.

• Audio:

Radio will be a key element in our media mix as it is cost effective and will cover

our catering cities precisely. Under the brand name we will be running contests,

sponsoring programme, etc. This will help us reach out to our target audience

and the influencers.

• Outdoor:

Outdoor communication will be done to help us get the visibility i.e. with the help

of Hoardings, which will be placed at areas that are prone to traffic jams and at

toll Stations. Railway stations in Karachi and Rawalpindi will be a good target

area for such print media as it also has maximum visibility because majoritypeople travel daily by trains to work. In respect of this media the company will be

very selective.

• Posters:



Posters will be created by the company during the events and will be carrying

the company logo, brand name and the picture and the tag line.

• Public Relation:

The company will be a part of events and/or will also be organizing its own

events. The events will be chosen on the core values of community relation and

whole family participation. The company will be a part of children and youth

involving events like college/ school festivals, meets, etc and only use these as a

platform to getting closer to their influencers and sample their product at a

concession or commission basis.

• World Wide Web:

We will make our presence felt on the internet by hosting a website for the brand

orange juice which will be named “www.SABT.com” which will;

The website will be imparting the information about our products,

quality and values i.e. history of orange, its cultivation, its benefits

etc.

Run online contests

Give health tips

Give recipes

Opinion section - person is free to express his thoughts and

feedbacks

The website will be a tool to get closer to our customers and understand them

better and will serve an entertainment and utility value.

Methods1. FREE STALLS IN HEALTH CLUBS

http://www.sabt.com/

http://www.sabt.com/



2. FREE SAMPLING3. DISCOUNT RATE STALLS4. PERSONALITY MARKETING5. HOARDINGS6. BANNERS

7. LOCAL CABLE CHANNELS8.

Segmentation

1.DEMOGRAPHIC

• Growing age

• Old age

• Sick people

• Sportsmen/women

2. GEOGRAPHICAL

• KARACHI, LAHORE, MULTAN, PESHAWAR, FAISALABAD

• HOT CLIMATE CITIES

3. BEHEVORIAL

• Health conscious people

•

Target customers

• Growing age

• Old age

• Health conscious people• Sportsmen/women

•

Future Products:

• Aerated orange drinks

• Orange Kraze (orange-apple-lemon)

• Gold Maltfruit Juice

Marketing Research:



During the development of the marketing plans, several focus groups will be

used to gain insights about our customers. These focus groups will provide us

with helpful insight, which will compliment the decision making process.

An additional source of dynamic market research will be the feedback

mechanisms with the help of our website “www.SABT.com” , the contests which

the company will be a part of and the primary research which may be done by us

or another party if felt the need or in combination.

These will be the steps which will be taken to understand the brands position in

the customers mind and will serve the purpose of being close to our customer to

understand him better. SABT Enterprises Pvt. Ltd will work hard in analyzing and

implementing suggestions in order to improve its offerings aw well as to show its

commitment to the customer and convey to them that their suggestions are

valued.

An important source of information will also be our competition. The company

will keep an eye on the competitor’s activities as they are a constituent of our

environment and their activities are bound to affect us. This will be done with the

help of the secondary data available and primary data from our customers, our channel members and others.

Feedback

A well encouraging and satisfactory feedback is received from the customers

who has start using our products and we have hope that in near future we will

satisfy all the potential customers who are fond of oranges and product made

from oranges. Inshallah.

Documents

Marketing Plane