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-:Submitted To
SSSSSSSSS
SIR FAROOQ
JAMAL
Submitted By:-
QAISAR ABBAS
09-NTU-5044
SAJJAD MAQBOOL
09-NTU-5048
SOHAIL PERVAZ
09-NTU-5053
WASIM YOUSAF
09-NTU-5060
TABLE OF CONTENT
ACKNOWLEDGEMENT-----------------------------------04
Dedication------------------------------------------------------05
Current Marketing Situations-------------------------------06
Market Review------------------------------------------------07
Product Review-----------------------------------------------09
Competitive
Review-----------------------------------------12
Distribution Review------------------------------------------17
S.W.O.T
Analysis--------------------------------------------21
Pricing---------------------------------------------------------36
Action Program-----------------------------------------------45
Budget---------------------------------------------------------47
Milestones----------------------------------------------------49
-----------------------------------------------------References
50
II
Dedicated
to
OUR BELOVED"
"PARENTS
Whose prayers, sympathy,
affection and guidance are
always with us all the time
Market Review
Our company`s consists male and female of all ages who want to have a
new flavor of sauce 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 Grewia Sauce 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 winter season. After this we have a plan to deliver the product
in the whole Pakistan.
We assumed that our Sauce will easily prevail in the whole of Edible
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 winter 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 four big cities Faisalabad,
Karachi, Lahore, and Multan. First we will make segments of these cities.
After making these segments we will evaluate each segment to analyze
which segment is beneficial for us or not. We will make each segment on
such basis.
1. Geographic
2. Demographic
3. Psychographic
4. Behavioral
Geographic segmentation:In geographic segmentation we will divide each city into different
segments according to Areas, States, Regions, and Markets. First of all
we made the division in Faisalabad city in different segments like
D. Ground, Madina town, Peoples Colony 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 and had
filled through them. It was the only tool for us to know the people that
what they want?
Gender segmentation:We need not to make the search on gender segmentation because our
Sauce is for both male and female.
Income Segmentation:We easily made the division according to the income of the people.
Through the income segmentation we divide the people into different
levels of groups regarding their income. Such like
8
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 five which are
Upper class.
Upper middle class.
Middle class.
Lower middle class.
Lower class.
For making the best marketing structure we set a reasonable price which
suits all types of social classes in Faisalabad.
Introduction:Our company`s 1st product, Grewia sauce, keep the following standards
and features multi vitamin and Sauce proteins for skin and body glow.
Grewia Sauce contains Grewia, sugar, Black pepper, stabilizer, and
permitted preservatives. These ingredients provide the body 8 hrs energy.
10
Core Benefit:Core benefit of our product are Flavor, Strong Bones, and 8 hrs energy.
Actual Product:Grewia Sauce is actually the Sauce of winter season and use for the
purposes defined before. It relates to the Edible market. Actual product in
detail is
Brand Name: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 and Pakistan. It is a valuable Sauce for all kind of
people living in Faisalabad. The standard of Grewia Sauce is quiet match
with the high level of Sauces
Design:Color of our Sauce is natural color of the fruit and we provide the Sauce
in a round conical bottle & pouch packs which looks like it.
11
12
Grewia
Sauce
13
Competitive Review:If we make a close look to the Edible industry then see that a lot of
companies which facilitate the people by providing such types of
products. There are lot of big and small companies which compete each
other. Each and every of them want to defeat their competitors. For this
purpose they facilitate their customers more than others. Now the
problem is that we are launching a new product in the winter season.
Many of the companies launches their such types of products in the
winter season. It means these companies are as a hurdle for our Sauce.
For this purpose we made a strategy discussed later in the plan.
Our Key Competitors:In Edible market industry there are many companies which produce the
Sauces but all of them are not our key competitors. It is because they do
not produce the Sauce of our level. Now our key competitors are
Shezan Sauces`.`.`.`.`.`.`.`.`.`.`.`.`.`.`.
National Sauces`.`.`.`.`.`.``.`.`.`
14
Industry Competition:In Industry there is not only one firm or company who produce the Sauce.
It means there in no monopoly but there is perfect competition. Perfect
competition means that many firms and companies are working as the
competitors of each other.
Now if we see the competitors of Grewia Sauce then we see the name
(Shezan) first. Why the Shezan first? In answer to this question we can
say Shezan is the largest selling company of Sauces. We can see that
Shezan made many Sauces like Shezan Tomato, Garlic, Chili, and Mix.
On the other hand if we see the other types of companies like National
Sauces also made the good sale. These companies also produce like
National Sauces of Tomato, Garlic, Chili, and Mix.
15
Shezan
Product
Name
Tomato
Garlic
Chili
Tomato
+Chili
Mixed
National
sauces
Tomato
Framwor
k
Category
Paste (sauce)
Paste (sauce)
Paste (sauce)
Paste (sauce)
Paste (sauce)
Paste (sauce)
Product
_Class
Size in
GM
Price in Rs
40
40
200
78
1000
350
40
40
200
78
1000
350
40
40
200
78
1000
350
40
40
200
78
1000
350
40
40
200
78
1000
350
40
35
200
65
1000
275
Overall
Market
Share
%47
%29
16
Garlic
Chili
Mixed
Paste (sauce)
Paste (sauce)
Paste (sauce)
40
35
200
65
1000
275
40
35
200
65
1000
275
40
35
200
65
1000
275
18
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
19
Channel Levels:-
20
Distribution Situation:We will use two channels for distribution of Grewia Sauce
Sale Promotion officers (Direct Channel):We will distribute Grewia Sauce to the Edible market related
instaurations like Government offices, Universities, Collages, Edible
market stores, Departmental stores, and even up the Medical stores. 50%
of Grewia Sauce sales would be through direct channel.
Distribution Outlets:We use the distribution outlets to increase the distribution of Grewia
Sauce in the remaining untapped retail outlets.
Sales Force:Our company will arrange 15 sales promotional officers who will be
responsible to the direct sales in the institutions, colleges, and Edible
market stores etc
Sales Promotion Team:Actually we develop a team of 40 sales promotional officers, which will
completely be responsible for the direct sales. Each of them will be
responsible for promoting Grewia Sauce at the assigned locality.
Distribution and Warehousing:There will be 25 authorized distributers of Grewia sauce. Each of them
having 10 to 15 warehouses to store the Grewia Sauce. Company have its
own network of Rickshaws, which easily deliver the Grewia Sauce to the
retailers
22
S.W.O.T Analysis:With the help of S.W.O.T Analysis we know the strength, Weakness,
Opportunities, and threats of Grewia sauce.
25
Objectives and
Issues:Every Company has objectives and issues regarding their product.
Different companies have different objectives like some companies want
to increase their sale, some want to maximize their profits, and some want
to increase their market share value etc
We also have some objectives and issues according to our product. For
this purpose we made a three year strategy in which we define our
objectives clearly. Our objectives are divided into market terms. These
objectives are
Objectives:Market Objectives:1st year Objectives:In 1st year we want to capture 20% market share value. For this purpose
we have to promote our sales. Our satiations made forecasting and says
that we will capture the required level of market share after promoting the
sales volume.
2nd year objectives:We will capture the 35% of market share value of Edible market industry
in the 2nd year. For this purpose we will launch 1 new product having
same brand. We will follow this strategy if we get 20% share value of
Edible market in the 1st year otherwise we will change our strategy. We
will start work on it after launching Grewia sauce.
3rd year objectives:We want to capture 45% of Edible market share value in 3rd year. It is
compulsory for us to increase our sales by launching new products in the
same brand, to capture the required level of market share.
In 3rd year we will completely change our strategy. We will launch a
Grewia Jam in the winter season. It might be the best way to achieve the
required level of market share
26
Sales Objectives:As we already discussed in the market objectives that we will increase
sales year to year. We cannot tell perfectly that how much sales could be
made within our strategic year but our target is 15 millions
Profit Objectives:We are committed to earn 25% profit on sales in 1st year. For this purpose
we will reduce our cost and maximized our profit
Our company will commit to attain our objectives and goals in defined
time period. All the objectives and goals are supposed to be a great
challenge for us and we will accept all of them. For the achievement of
these goals and objectives we have to face some key issues which
are
Sound Brand Images of Our Competitors:Each and everyone know about our competitor`s brand. People have lot
of awareness of their brands. Another great issue for us is that they have
27
Heavy Promotion of Competitors:Our competitors already made heavy promotion of their brands and
products. To compete our competitors we have to make a heavy
promotion otherwise we fail to achieve our objectives.
Permanent Customers:Our competitors already have lot of customers. Those customers who
believe in our competitors and a good position in their mind. It is because
our competitors provide them the things that they want.
Suppose some people believe in Shezan that it is used for health and also
Pakistan`s no.1 Sauce. It has its permanent customers and it is very
difficult for us to create a better sketch in the minds of those customers
about Grewia Sauce.
28
Segmentation...
Targeting.....
Positioning..
These three elements are defined in detail below
29
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.
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.
30
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.
Targeting:After evaluating different segments, now we will must decide which and
how segments we will target.
31
Undifferentiated Marketing:We will not select undifferentiated marketing because we will not enter in
the market with one offer for all customers. In undifferentiated marketing
the difficulties arises in developing a product or brand that will satisfy all
consumers. The companies which select mass marketing often face
trouble competing with more focused firms that do a better job of
satisfying the needs of specific segment and niches. Due to this we will
not select undifferentiated or Mass marketing.
Concentrated Marketing:We will not select concentrated marketing because we have so enough
resources to meet the needs of an individual segment. Through selecting
concentrated marketing segment we will not achieve our objectives.
Local Marketing:We also select Local Marketing to satisfy the needs and wants of local
customers groups, cities, neighborhoods, and even specific stores. We
will do Local Marketing with differentiated marketing.
1. Product Differentiation:Form:Our product is totally a Sauce which is used for Breakfast and bread. In
our promotion we will focus on product differentiation. Through our
promotion we will tell our customers main differences of our product
from our competitors. We have a Sauce in the market which is a multi
purpose Sauce.
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 and Pakistan. It is a valuable Sauce for all kind of people
living in Faisalabad. The standard of Grewia Sauce is quiet match with
the high level of Sauces
2. Service Differentiation:Easily Available:Grewia Sauce is easily available in the whole market of Faisalabad first.
After that we will provide it in the other cities of Pakistan.
34
Customer Consulting:We will arrange a customer consulting program which will be telecast on
some well known TV channel. Through this program we consult with our
customer and ask some questions regarding our product. We will try to
solve the problems of our customers.
3. Personnel Differentiation:Companies can gain strong competitive advantage through having better
trained people. Our Brand will have an edge over its competitors in the
personnel differentiation because its personnel have competence to serve
its customers, are friendly, respectful with its customers. The personnel
performance is credible because of their commitment with the customer.
4. Channel Differentiation:To serve the customers at the priority level, our brand will have8
distributors and 18 sales promotion Officers in Faisalabad. They are well
expertise, and have batter coverage than others. Same like this we will
arrange sound distribution channel in other cities like Karachi, Multan
and Islamabad. We create differentiation in our product through our
channel .
5. Image Differentiation:Our company will be a national company, and will have batter image in
all over Pakistan due to its performance and is so far the only Edible
market company in Pakistan to get ISO 9002 Certification - a Quality
Management System. While adhering to this Quality Management
System, the company is committed to strict quality standards in all its
35
Level of Positioning:Basically there are three level of positioning through which we will
position our products in the customers minds. For positioning of our
product we will use these three levels.
1- Positioning by Attributes
2- Positioning by Benefits
3- Positioning by Values
Positioning by Attributes:We will position our product on the basis of attributes and features of our
product. We will focus on attributes and features of Grewia Sauce which
it contains. Through our positioning we will try to set and fix the features
36
Positioning by Benefits:We will also focus on the benefits of the product when we will position
our product. Through positioning we will tell our customers how many
benefits they can get from our product. Our product has main benefit that
it is a multi purpose product which we will target in positioning of our
product.
Positioning by Values:We will also position our product on the basis of customer values. Like
this, If you want to look Halthy than use Grewia sauce.
Reason:Our product lies in FMCG category; due to this our main focus will be on
two levels, Attributes and Benefits. For FMCG, these two levels are very
beneficial. We will talk on values but little bit, because in FMCG
category value is not concerned more. FMCG category is lying in
convenient goods, in this type of goods values have not so enough weight
age. Values are mostly concerned in shopping goods and special goods.
So due to this our main focus will be on two levels Positioning by
Attributes and Positioning by Benefits.
37
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
38
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.
39
Competitors cost, prices and offers:We will also access the cost per unit, prices and offers of our competitors.
We will access the pricing strategies of our 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.
Pricing Approach:Value Based Pricing:We will choose value base pricing, we will charge fairly low price for a
high offering. Value pricing says that the price should represent a highvalue offer to consumers. Value based pricing uses buyers perception of
value, not the seller cost as the key to pricing.
We will set its target price based on the customer perceptions of the
product value. The targeted value and price then drive decisions about
product and what cost can be incurred. As a result, pricing begins with
analyzing consumer needs and value perceptions, and price is set to
match consumer perceived value.
40
Break Even:It is the point where we will cover our total revenue and our total cost in
terms of units and volume. It can be verified by the following formula
Break Even Volume = Fixed Cost / Price Variable Cost
We will struggle to get our break even point to cover our cost in terms of
units and sales.
41
Quantity in GM
Price in Rs
Grewia sauce
60
21 Rs
Grewia sauce
300
105 Rs
Grewia sauce
1000
349 Rs
Grewia sauce
2600
529 Rs
Pricing Objectives:There are many general pricing objectives which include survival, current
profit maximization, market share leadership, product quality leadership
and relationship building. From these objectives we will select two
pricing objectives which are very clear
1-Market Share Leadership
2-Product Quality Leadership
Product Quality Leadership:We believe in quality as well as in quantity. Within this price we will
make sure the quality of our product. We will not compromise with
quality. Our product is quality based product. We will charge from our
42
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, Edible
market Stores, Departmental stores, and General Stores etc
43
44
Selecting Specific Vehicles:The media planner will search for the most cost effective, dominant, and
frequent vehicles within each chosen media type. The planner will have
to rely on media measurement service that will provide estimate of
audience size, composition, and media cost. Our Company is a customer
oriented company; its aim is to serve maximum number of customers. For
advertising its products we will chose advertising vehicles that are cost
effective, covering large number of audience.
Electronic Media:The electronic media will be only Radio and Television. In Radio
vehicles we will advertise in FM 100, FM 101, FM 99, FM 103 and
Radio Pakistan. In Television vehicle will be PTV, PTV World, Geo
Television (Cable), Express News and at ARY Gold (Cable).
Print Media:The print media will Newspapers (Front Quarter page), i.e. Jang, The
News, Dawn, and Magazines (Quarter page) i.e. Akhbar-e-Jehan, Family
magazine, Khwateen Digest, Sunday magazine.
Deciding on Media Timing:We will have to advertise Grewia Sauce on TV 3 times in a day and
almost 5 days a week in first three months. The ad will go on air in the
prime time broadcasting like Drama hours; it will also be advertise daily
in the mid break of KHARBANAMA. Instant Tea Pack will also be
advertised in the sports matches like Cricket Matches which are very
keenly seen in our community.
Advertising Budget:-
45
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.grewia.com.pk
46
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
April May
Launch
Grewia sauce
promotion
Sale office
Sponsor
sports
Explanation:47
June
July
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 Grewia Sauce 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.
48
PARTICULARS
Rs
Rs
SALES expected
30,000,000
22,50,000
Sales discount
6, 60,000
Net sales
27090000
18150000
Gross profit
8940000
Operating expenses
Selling expenses /Market expenses
55000
Advertising expenses
200000
Depreciation expenses
50000
40000
49
345000
Administrative expenses
Office Salaries Expenses
550000
Rent Expenses
55000
Insurance Expenses
97500
70800
55000
828300
__1173300_
1799500
Other income
RENT income
75000
Interest received
50000
NET Income
125000
19245400
50
Milestones:Mile Stone
Start date
End Date
Budget
Marketing
01/02/2010
12/04/2010
Plan
Manager
Khurram
Department
Marketing
Shahzad
completion
Website
04/02/2010
12/03/2010
Amir Abbas
completion
Advertising
Marketing
Khan
03/02/2010
12/0405/2010
25000
Campaign1
Shahzad
Marketing
Hasan and
M.Zubair
Advertising
25/02/2010
20/07/2010
30000
campaign2
Retail
Outside
Marketing
firm
01/02/2010
15/08/2010
Channel
Shahzad
Marketing
Hasan
Total
55,000
References
www.mickinsey.com
www.wikipedia.com
www.Nestle. Com
www. Haleeb.com
www.Angrofoods.com
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