Market Review:

Our company`s consists male and female of all ages who want to have a
new flavor of juice and also want to have different features. We next
discuss a table in the plan, highlights the needs and demands of targeted
customers.
First we launch sugarcane juice in Faisalabad city. We made a survey in
the whole of Faisalabad and the demand of such type of product is too
much high in the summer season. After this we have a plan to deliver the
product in the other cities.
We assumed that our juice will easily prevail in the whole market. It is
only because our 1 product covers all the customer needs. Our mission
statement will create complete and effective positioning. We will
introduce our product in summer season. We are a profit oriented
company as others are, but in starting we have to minimize the sale price.
For this purpose we have to reduce the cost price first. Before minimizing
the cost we also have to study customer mind. When we identify the
customer need then we must provide the quality product by building a
standard with the minimum cost

Market segmentation:
First of all we are introducing our product in big cities Faisalabad. First
we will make segments of this city.
We will make each segment on such basis.

1.
2.
3.
4.

Geographic
Demographic
Psychographic
Behavioral

Geographic segmentation:

In geographic segmentation we will divide the city into different

segments according to Areas, Regions, and Markets. First of all we made
the division in Faisalabad city in different segments like, Madina town,
Millat chowk, nishat abad, and Samanabad. With this segmentation we
can easily understand the Needs, Wants, and Demands of the people of
Faisalabad. With the help of a short survey we finalized this decision. We
made a questionnaire for the general public. It was the only tool for us to
know the people that what they want?

Demographic Segmentation:
In Demographic segmentation we will divide people according to
their ages and life cycle. We will divide our customers regarding
.their ages as teenagers, twenty five plus, thirty five plus, and so on

Age Groups:
17-24 years
25 34 years
35-44 years
Above 45 years

Gender segmentation:
We need not to make the search on gender segmentation because our
juice is for both male and female.

Income Segmentation:
Through the income segmentation we divide the people into different
levels of groups regarding their income. Such like
Below then 15000
Above then 15000

Psychographic Segmentation:

To analyze the psyche of the people of Faisalabad we divide them in

social class, Lifestyle, and Personality. According to the social class the
available types in Faisalabad are three which are

Upper class
Middle class
Lower class

For making the best marketing structure we set a reasonable price which
suits all types of social classes in Faisalabad.

Behavioral Segmentation:
Behavioral segmentation divides buyers into groups, based on their
Knowledge, Attitude, Uses, or Responses to a product. We also believe
like many marketers that behavior variables are the best starting point for
building the best market segmentation. In Faisalabad we see the
behaviors of the people with the help of the questionnaire. After filling
the questionnaire we easily determine the values like Occasions, Benefits,
User Status, User Rates, and Attitude towards the product.

Product Review:
Company Name:
RUS-SIP

Product Name:Rus-sip

Introduction:
Our product is sugarcane juice in tetra pack packaging. Sugarcane juice is
widely used in summer season because it is good in taste and low in cost.
In Pakistan no company has launched sugar cane juice till now in tetra
pack. So we have decided to launch a sugar cane juice because sugar

cane juice is naturally sweet, so it can be sold with a little additional

processing we can make flavors also as a lime juice, and orange juice.

Levels of product:

tcudorP fo sleveL
tifeneb
eroC
tcudorP
lautcA

tcudorP
detneemguA

Core Benefit:
Core benefit of our product are flavor, and good for health.

Actual Product:
Sugar cane juice is actually the juice of summer season and use for the
purposes defined before.

Features:
It has direct effect on digestive system and it contains nutrients which are
healthful for life1. It strengthens the stomach, kidneys, heart, eyes, and
brain and sex organs.

Brand Name:

1
4

We launch a new product in the market and with the help of this product
we establish our business. We dont have any brand till now.

Quality Level:
We made the best quality product. its because it is a new product and
also for getting more and more response, and to gain the best level of
goodwill in Faisalabad. It is a valuable juice for all kind of people living
in Faisalabad.

Design:
Color of our juice is natural and we provide the juice in tetra pack.

Packaging:
Packing of juice it like

Type of Product:
Basically sugar cane juice convenient good. Less buying effort is required
to purchase this product. It is our product which will be available at
general stores, Departmental stores, and super markets.

Competitive Review:
Increase in competition
There is large competition in juices market

Competition Overview:
Indirect Competitors
:The indirect competitors of our Product are
Shezan (Mango, Punch, Orange, Apple.)
Nestle ( chounsa , guava, grapes nectar)
Coca cola (pulpy orange)
But we are not competing our product with them because they are the
competitors of the Juice market and they are only providing the different
.flavor juices but not the sugarcane juice

Indirect Competitive analysis:

The indirect Competitive framework of juice and their companies is
Framwor
k
Overall
Market
Share
%47

%29

Price in Rs

Size in
GM

42

300

60

500

100

1000

42

300

60

500

100

1000

42

300

60

500

100

1000

42

300

60

500

100

1000

42

300

60

500

100

1000

45

300

75

500

120

1000

45

300

75

500

120

1000

45

300

75

500

120

1000

45

300

75

500

120

1000

Indirect competitive

Product
_Class

Category

Product
Name

Jar and Balti

Paste (sauce)

Tomato

Jar and Balti

Paste (sauce)

Garlic

Jar and Balti

Paste (sauce)

Chili

Jar and Balti

Paste (sauce)

Tomato
+Chili

Jar and Balti

Paste (sauce)

Mixed

Jar and Balti

Paste (sauce)

Tomato

Jar and Balti

Paste (sauce)

Garlic

Jar and Balti

Paste (sauce)

Jar and Balti

Paste (sauce)

Company &
Brand Name

Shezan

National
sauces

Chili

Mixed

Indirect Competitor`s Profile:

Shezan International Limited
The Shezan International Limited was incorporated on May 30, 1964 as a
Private Limited Company. Shezan International Limited was conceived
as a joint venture by the Shahnawaz Group, Pakistan and Alliance
Industrial Development Corporation, U.S.A. in 1964. Shezan is the
largest food processing unit having developed and installed the capacity
to meet the country's local as well as export needs. In 1971, Shahnawaz
group purchased all the shares of Alliance Industrial Development
Corporation with the permission of the Government of Pakistan. In 198081 a separate unit was installed in Karachi which now caters for Karachi,
.Sind and export demand
A bottle filling plant was set in 1983 in Lahore, Punjab. An independent
Tetra Brik plant was commissioned in 1987.In the year 1990 it was
decided to install a juice factory at the Hattar in North West Frontier
Province of Pakistan. Shezan International's Head Office Located in
Lahore, Pakistan. In Canada, Target Foods, is the authorized distributor
for all Shezan Products. The items they are producing now adays are
* Juices
* Sauces
* Chutneys
* Syrups
* Squashes

Distribution Review:
Distribution means to distribute the product through different channels.
Extension is in the nature of every business. For extending a business we
use some channels to distribute the juice. Mostly this cycle is used for the
distribution of the product.
Mostly companies changed their strategies day by day due to
development of distribution channels. These days all the well dressed
organizations adopted the distribution channels.

Manufactu
re

Consumer

Distribut
ion
Review

Distribute
r

Wholesell
er & Retail

In Conclusion to this for a successful business we determine some

standards to make a very right decision. Not all, but some of them are as
follows

10

How far the customers are?

The type of product being transported
Lead time required
Cost associated with transport

We have to select the most suitable distribution channel which will be

completely helpful for us against our indirect competitors. As we already
discussed that first we launch our product in Faisalabad, after that we will
be in other big cities of Pakistan. Our distribution channels in Faisalabad
are Distributers, Wholesalers, than retailers. We will make the easy access
of sugar cane juice in the Super Markets, Super Stores, Departmental
Stores, and General Stores. We mainly focuses on the retailers because
they are the only people which deliver our product to the final consumers.
If we have the strong parties (Retailers) then we can easily achieve our
objectives.

Marketing channels:
These are known as the set of independent organizations involved in the
process of making a product or service available for the use or
consumption. These channels perform the work of moving the goods
from Manufacturer to the final consumer. It is the only way through
which we can provide the goods to the final consumer at the right time
and right place according to the needs, wants, and demands of general
public. Mostly these channels perform the functions like.
They collect the information about the potential and current
customers, competitors, and other acts, facts, forces of the
marketing environment.
They develop the disseminate persuasive communication to
stimulate the purchasing.
They place an order to the company.
They provide best place for storage and movement of physical
products.
They evaluate and clarify the customer`s needs, wants, and
demands properly.
In conclusion to all these actions we can say that they perform their
self as a platform on which all the work activities are handled between
the customers and manufacturers

Channel Levels:

11

Consumer
Wholeselles & Retailor
Distributer
Manufact
urer

It is a two-level channel, we will have our own distributors which are

suppose to deliver the sugar cane juice to the wholesaler as well as the
retailer.

Distribution Situation:
We will use two channels for distribution of sugar cane juice.

Retail outlets (Indirect channel)

Sale Promotion officers (Direct Channel)

12

Retail Outlets (indirect channel):

We will target many big retail outlets which will provide sugar cane juice
to the consumers. 80% of sugar cane juice sales would be through
indirect channels.

Sale Promotion officers (Direct Channel):

We will distribute sugar cane juice to the related market, Universities,
Collages, Departmental stores. 20% of juice sales would be through direct
channel..

Sales Force:
Our company will arrange 3 sales promotional officers who will be
responsible to the direct sales in the institutions, colleges, and market
stores etc.

Sales Promotion Team:

Actually we develop a team of 10 sales promotional officers, which will
completely be responsible for the direct sales. Each of them will be
responsible for promoting juice at the assigned locality.

Distribution and Warehousing:

There will be 7 authorized distributers of sugar cane juice. Each of them
having 1 to 2 warehouses to store the juice. Company have its own
network of loader Rickshaws, which easily deliver the sugar cane juice
to the retailers.

Swot Analysis of our Company

:Strength
:First mover Advantage
We have introduced sugarcane juice in tetra pack for the first time. So it is helpful for
us to have more customer at the than other new competitors because the time the take
.to enter the market the customer will become loyal to our product

Quality Conscious

13

Rus-juice produce a good quality products. It can not compromise on

.quality
:Less no of taste

We have introduced the first time that there is not any sugarcane juice in
.tetra pack available in market
:Weaknesses
Storage ability
.Rus-juice not store able for long time
:Loyality

Consumers are brand loyal toward competitors product so we have to

convince them.Beacuse there are already competitors who are dealing in
.juices and beverages, so it is difficult to shift them from other juices
:Opportunities
:New flavor
.We can introduce flavored sugarcane juices. E.g., mint and ginger flavor etc
:Export
.We can export our product to foreign country in order to earn more profit

Global hub
Since manufacturing of some products is cheaper in Pakistan than in other South East
Asian countries

Support foreign investors

14

.Government support foreign investors to invest in Pakistan

:Threats
Government Regulation
They face problem if government employ taxes on them which force them to raise the
.price of their product

Increase in competition
There is large competition in juices market

Suggestions for Weaknesses and threats:First of all the company has to reduce its weaknesses and then
move on to the threats .There are some suggestions or some
positive or negative to reduce the burden of weaknesses and
threats. These ideas or suggestions are

15

 First the company has to create a brand and then focus on it

by advertise more and more to get the best positioning level in the
minds of the general public. If company create a strong brand
image then it is very easy to remove the weak point
In second company have to made strong relations with the
distribution channels.
3rd things are threats that our indirect competitors are strong. They
have strong brand image. The company has to make the Quality
level, Design, Packaging, and label of rus-sip.
If the company does so then it can easily get the best positioning level
in the mind of consumer. By following these three suggestions the
company can easily remove the big problems that it will face in the
near future.

Goals and Objective

Our objective is divided into different parts.

First year objective is to capture 8% market share of juice
industry with sales revenue of minimum 20 million and net
profit of 3 million.

16

 2nd year objective is to obtain 18% market share with sales

revenue of 40 million rupees net profit of 7 million. And five
year our market share will be 30 %.
Continuous growth in sales
Increase the seasonal sales volume
Improve the companys image
Delivering the good quality and taste to the consumers at a fair
price

Key Issues:
Market Competition
There is a sound competition in juice market. It is very difficult to entre
into the market with a new product in this lot of competition between
Shezan, and Nestle. It is a great issue for us.

Sound Brand Images of Our indirect Competitors:

Each and everyone know about our indirect competitor`s brand. People
have lot of awareness of their brands. It means we have to face a lot of
problems while entering in the market.

Marketing Strategy:
Our marketing strategy is based on these three elements

Segmentation.
Targeting.
Positioning.
These three elements are defined in detail below

17

Segmentation:
We segmented the market on the following basis
Evaluating Market Segments: Segment Size and Growth: Segment Structural Attractiveness: Company Objective and Resources: Level Of Competition: Substitute Product: Power Of Buyers: Power Of Suppliers:-

Evaluating Market Segments:

First of al we must evaluate the various segments and we will decide how
many and which segment we can serve best. Here we evaluate target
market segments.

Segment Size and Growth:

Before selecting any target market first we will evaluate segment size and
growth. We will first collect and analyze on current segment sales, growth
rates, and expected profit from segment. We will be interested in that
segment which have right size growth.

Segment Structural Attractiveness:

We also need to examine major structural factors that affect long run
segment attractiveness. A segment may be less attractive if it already
contains many strong and aggressive competitors. The existence of many
actual or potential substitute products may limit prices and profit that can
be earned from that segment. The relative power of buyers also affects
attractiveness.

18

Company Objectives and Resources:

After evaluating segment size, growth and attractiveness we will evaluate
company objectives and resources. Some attractive segments may be
dismissed quickly because they did not match with company long run
objectives or company may lack of skills and resources needed to succeed
in attractive segment. We will access that our objective may fulfill in this
segment or not. Our resources will meet the requirements of the segment
or not.

Level of Competition:
We will evaluate the level of competition in the segment. Competition
may be less or more in the segment. There may be pure competition,
monopolistic competition, oligopolistic competition, or pure monopoly in
the segment.

Substitute Products:
We will evaluate the substitute products in the market regarding our
product. There may be some substitute products in the segment which
affect the demand of our product.

Power of Buyers:
We will also evaluate the power of buyers in the segment. We will also
access the per capita income of our buyers rather they can purchase our
products or not.

Powerful Suppliers:
In this we will evaluate the suppliers in segment that they are powerful or
not.

Target Market
The target market for our product will be upper class, middle class , and
the lower class .

19

Sugarcane juice is a type of product which everybody wants to have . But

the price of our product is lower , so every class can afford it easily . First
we will be introducing our product in Faisalabad..
Following segments in the market will be targeted:
Students of schools , colleges and universities
Sportsmen
Specially the patients of hypatitics C , it is an auspicious thing for
their liver
People of all age groups

Positioning Statements:
Save your moments and enjoy your moments
Make your life so easy and comfortable
Make your life quick and fast

Performance Quality:
We made the best quality product its because it is a new product and also
for getting more and more response, and to gain the best level of goodwill
in Faisalabad. It is a valuable juice for all kind of people living in
Faisalabad. The standard of juice is quiet match with the high level of
juice

20

Positioning Strategy
Brand strategy is at the heart of marketing strategy. It is the act of
designing the company offer and image so that it occupies a distinct and
valued place in the target customer mind.
Sugarcane juice is very beneficial for health and provides refreshment. As
we are launching sugar cane juice in tetra pack, so we want to create
positive and long lasting image in the minds of customers that we are
providing hygienic juice because we are also introducing new flavors like
lime and orange etc.
Point of parity
Different flavor
Tetra packing
Point of difference
100% pure juice

Positioning by Values:
We will also position our product on the basis of customer values. Like
this, If you want to look Healthy than use sugar cane juice.
.

Easily Available:
Juice is easily available in the whole market of Faisalabad first. After that
we will provide it in the other cities of Pakistan.

21

PRICING:
Price is amount of money which we will charge from our customers in
return.

Factors to consider when setting price:

During setting the price we will consider these factors.
1-Internal Factors
2-External factors

Internal Factors:
During setting the price we will first consider internal factors, like
Marketing objectives
Marketing mix strategies
Cost
Organizational consideration

Marketing Objectives:
When we will set the price of our product then from internal factors we
will consider the following factors.
Survival
Current profit maximization
Market share leadership
Product quality leadership

22

Marketing Mix Strategies:

We will carefully coordinate price with other marketing mix elements.
We will use target costing to support product positioning strategies based
on price.

Cost:
During setting the price we will access the cost, variable cost, fixed cost
and total cost.

Organizational Consideration:
We will create price setting department which will set the prices.

External Factors:
After considering the internal factors we will access the some external
factors as,
1-Nature of market and demand
2-Competitive costs, prices and offers
3-Other environmental elements

Nature of market and demand:

Before setting the price we will access the nature of market and demand.
We will assess that which type of market is existing. Rather there is pure
competition, Monopolistic competition, Oligopolistic competition or Pure
monopoly. After accessing these types of market then we will set our
price.

Indirect Competitors cost, prices and offers:

23

We will also access the cost per unit, prices and offers of our indirect
competitors. We will access the pricing strategies of our indirect
competitors. We will access that what is per unit cost of our competitors
and what prices they are charging from customers. We will also access
the competitors offers related to price. After accessing these factors we
will set our price.

Other Environmental Elements:

Before setting the price we will access the economic condition of
Pakistan. We will also access the inflation rate in Pakistan. We will also
access the market condition like boom, recovery or recession.
We will evaluate the Govt restrictions regarding price.

Our Prices schedule

Name of Product

Quantity in ML

Price in Rs

Rus-sip

250

Rs.15

Rus-sip

500

Rs.25

Distribution Strategy:
Extensive Distribution:
We will make extensive distribution of our product in Faisalabad like. We
will target only metropolitan areas of these Faisalabad. We will distribute
our product only in the urban areas. We will not target the rural areas of
the Faisalabad. We will distribute our product to supermarkets, ,
Departmental stores, and General Stores etc.

Reason:

24

The reason is that in start we will make extensive distribution because we

will increase our distribution with the passage of time .As people will get
awareness about our product and as the demand of juice. we will increase
its distribution area.
Channel Distribution

The place of the distribution and availability of the product also influence
the buying behavior

because if the product is in reach of the consumer he will prefer it and if it

is hard to find the

product in the market he will never buy that product. So we

provided our

product to all the all the

distributors and they will provided it to famous retailers.

Electronic Media:
The electronic media will be only cable network.
Promotion strategy
The promotion of the product i.e. the advertisement, sales promotion and other
promotional tools can change the buying behavior because some of the individuals
highly influenced by the advertisement of the product. we have decided to use
integrated marketing communication in which there will be blend of different

25

marketing promotional tools that will convey clear and consistent message of our
product to the customers. These Promotional tools are given below

Newspaper

Newspaper has the widest readership and circulation among our targeted market;
these would carry most of the advertisements for the publication media. Also, the
print ads will be published in other much read newspapers like be designed, i.e. half
.page and quarter page

Billboards

Billboards will be placed at busy area in the city. Billboard will be our most
.permanent and long lasting form of advertisement

Promotional Vans

Promotional vans would be deployed on public places which would distribute sugar
cane juice for free giving out the message of being an instant energy drink. This
campaign of free sampling would last for three week at least in order to make people
aware of the benefits and the attributes

Electronic Media:
The electronic media will be only cable network.
.

26

Advertising Budget:
In this advance age, business cannot be successfully done without
advertisement and promotion. Advertisement and promotion are life
blood of an organization. So to make our business quite successful we
will have to make advertisement and promotion. So for this purpose we
want too much budget.

Reason:
We have selected these tools because these are essential for advertisement
and promotion. These are the basic tool for the advertisement. All our
competitors are using this tool for their advertisement and promotion.
These tools are directly affect on behave of customers. Customers mostly
communicate with these media channels. These tools are the source
where customers get information about new different products which are
introducing in the market.

Web site
Our website include brief introduction of our product its features and
complete information about the packaging and distribution channel.
www.Rus-sip.com.pk

27

Action Program:
Here we are showing the action plan which will guide us in performing
our activities.

Actiities

Aug Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apri

May June

l
production &
launch
Promotion
Sale office
Sponsor
sports

28

July

Explanation:
After making the plan of rus-sip, we will make its Action program that
how we will perform our activities. In Action Program we will implement
our marketing strategies. We will assign duties to each employee
regarding his specialization. Sales Department will enter in the market to
get orders. Promotional team will start its work of promotion. Our
management will handle each department.

Launching Time:
We will launch sugar can juice (RUS-SIP) in the spring season.

Promotion:
We will promote our product before launching and we will promote it
whole the year.

Sale Office:
Our sale office already be open before launching Rus-sip and will work
through out the year. Our sale officers will visit the market and will
introduce our product in the market before launching in the market. They
will collect orders from market and will provide them supply.

29

Division Of Resources:
Total Investment

10 million

Fixed cost

3.2 million

o Machinery

2 million

o Building Rent

0 .6 million

o Fixture + maintenance

0.4 million

o Staff

0.2million

Variable cost

3 million

o Raw material

2.5 million

o Labour + utility bills

0.5 million

30

Budgeting:
Budgets:
Expected Income Statement
Marvels & Co
Expected Income Statement

PARTICULARS

Rs

SALES expected

11950000

LESS: sales return allowances

600,000

Sales discount

179250

Net sales

11,170,750

Less Cost of merchandise sold

96, 00,000

Gross profit

1570750

Tax @ 16%

251320

Net income after tax

1319430

31

Milestones
Mile Stone

Start date

End Date

Budget

Manager

Department

Marketing

01/02/2010

20/04/2010

Sajjad

Marketing

Plan

Maqbool

completion
Website

04/02/2010

20/04/2010

Sohail

completion
Advertising

Marketing

Pervaz
03/02/2010

12/04/2010

25000

Campaign1

Wasim

Marketing

Yousaf&
Qasir Abbas

Advertising

25/02/2010

20/07/2010

30000

campaign2
Total

Outside

Marketing

firm
55,000

References:
32

 Sir Farooq Sauceal

(NTU Faisalabad)

Philip Kotler

(Principle Of Marketing)

Journal of Marketing
Journal of Advertisement
Mickinsey Quarterly
Websites:
www.mickinsey.com
www.wikipedia.com
www.smeda.com
www.Angrofoods.com

Survey from different people

33