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Project:

New Product Development

Submitted to:

Sir Faheem Athar Haqani

Presented by

Group (F)

Class:
MBA 1 st (Section A)
University of Sargodha
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Table of Contents
Executive summary 04
Company 05
o Company profile 05
o International certifications 05
o History 06
o International businesses 06
o Vision statement 07
o Mission statement 07
o Quality policy 08
o Company’s value 08
o Address 08
o Location 09
SWOT analysis 10
o Strengths 10
o Weaknesses 10
o Opportunities 10
o Threats 11
o Conclusion of marketing environment 11
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Product 12
o Brand name 12
o Slogan 12
o Purpose 12
o Features 12
o Benefits 13
o Objectives 13
Marketing mix strategy 14
o Segmentation 14
o Target marketing 14
o Differentiation 15
o Positioning 15
Competitor’s strategy 16
Company’s strategy 16
o Size 16
o Color 17
o Packaging 17
o Price 17
Action plan 20
o Placement 20
o Promotional activities 20
o Market survey 22
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Executive summary

T his project is about new product development by Verve Foods Ltd. Verve Foods
has the distinction of being the first company in Pakistan to use Tetra Pak’s novel
packaging formats, Tetra Brick Aseptic (TBA) and Tetra Fino Aseptic (TFA). Verve
Foods has also introduced a number of unique products previously unknown to
the Pakistani market, like Verve Labban, delicious traditional lassi (buttermilk) prepared with
pure thick milk and yogurt, Candia Tea Max , cardamom flavore d tea whitener, Candiamilk,
packed in distinctive food grade plastic bottle, and Verve Good Day , 100% pure and natural
fruit juice , free of added sugar, artificial flavors and preservatives.

Now Verve Foods Ltd has developed a new product in the market that is a pine apple
juice named as “REFRESHER JUICE” .

For this purpose first we have conducted the SWOT analysis of company to see the
company’s strengths, weaknesses, opportunities and threats . Then we have explained the
purposes, benefits and objectives of our products.

Secondly we have made a marketing mix strategy for our product. We have divided
market into different segments and decided to target young students of colleges and
universities that belong to middle class family.

We have also paid special attention to the packaging, color and price of the product. We
have decided to place the product in all the markets of Punjab especially in the canteens of
colleges and universities.

We will promote our product through electronic media, print media, cable, internet and
other sources. We have also conducted a market survey to know the opinion of public about
our product and developed our product accordingly.
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Company
Reliance Foods Ltd

Company profile:
Building an excellent reputation over the years, Verve Foods continues to be at the
forefront of product and packaging innovation. By the grace of God, it has achieved market
leadership in several food categories with a very strong portfolio, consisting of leading national
and international brands – Verve, Candia, Dairy Queen, Tea Max, Skimz, Tropico and Good
Day. Apart from its extensive nationwide distribution networks, Verve Foods is also serving
several export markets including South Korea, Bangladesh, Afghanistan and the Central Asian
states.

Verve Foods has the distinction of being the first company in Pakistan to use Tetra Pak’s novel
packaging formats, Tetra Brick Aseptic (TBA) and Tetra Fino Aseptic (TFA). Verve Foods has
also introduced a number of unique products previously unknown to the Pakistani market, like
Verve Labban , delicious traditional lassi (buttermilk) prepared with pure thick milk and yogurt,
Candia Tea Max, cardamom flavored tea whitener, Candiamilk, packed in distinctive food
grade plastic bottle, and Verve Good Day , 100% pure and natural fruit juice , free of added
sugar, artificial flavors and preservatives.

ll this and more makes Verve Foods Pakistan’s number 1 and fastest growing packaged Food
Company. As of fiscal 2006, its annual turnover is Rs. 9 Billion.

International certifications:
Verve Foods’ products are made with great care, and marked with our quality seal of
recognition. We are the only dairy company in Pakistan that undertakes 21 rigorous quality
control tests on every portion of the milk collected by our teams. These internationally
recognized tests are used to check for: a) adulteration, b) microbiological contamination and c)
adequacy of nutritional contents. All processes, from preparation to quality assurance to
packaging, are unde rtaken employing state-of-the-art technology and equipment. Therefore,
we take great pride in the fact that Verve Foods is the only food company in Pakistan that has
the following international certifications of quality and prestige:

HACCP (in process controls for safer products)

ISO 9002 (better quality for greater customer satisfaction)
ISO 14000 (environment-friendly operations)
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Company’s history:
Verve Foods was established in 1986 and its first product was Verve milk. Since then,
it has continued to provide quality products to its consumers with product and packaging
innovations. Other products and their dates of launch are as follows:

1997 Verve Asli Desi Ghee

1998 Verve Cream, Candia Skimz Milk Powder

1999 Candia Milk, Candia Skimz Liquid Milk

2000 Tropico Juice Drink, Verve Dairy Queen

2001 Verve N'rish Instant Full Cream Milk Powder

2002 Verve N'rish Fortified Instant Full Cream Milk Powder

2003 Candia Tea Max Dairy Whitener, Verve Butter, Verve Plain Yogurt, Verve Lassi Drink

2004 Verve Good Day Pure Juice, Verve Fun Day Juice Drink, Candia Candy'Up Flavored Milk

2005 Verve Cream With Honey, Verve Tea Max with Cardamom, Verve Labban, Verve Good
Day(Mix Fruit, Red Grapes, Mango Pineapple)

2006 Verve Reshmi Pack, Candia Classic, Skimz Pouch, Tropico Ne ctar

2007 Verve Cheddar Cheese

Verve Foods is Pakistan’s number 1 and fastest growing packaged Food Company. s of fiscal
2006, its annual turnover is Rs.9 Billion. Recently, Verve Foods has built yet another plant in
Rahim Yar Khan whose purpose is to provide Verve quality products to maximum number of
consumers.

International businesses:
W e have heritage of delivering tasty brands namely in Middle East, North Africa, Central
Asia, Europe , USA and South Asia.

With the basic ingredient of imagination, creativity and our core values the R&D, is in a
consistent effort to turn ideas into delicious products.
With immense national branding triumph, the company opened its wings to international
spheres; introducing rich eastern heritage of tastes to the world!
We have a diverse range of Beverages, Dairy products, UHT milk range and dry milk.
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For Worldwide contact information you are most welcome to contact:-

For Afghanistan:-
Verve Foods Ltd
Azizi Bank Ltd Building Jade Mandawi Kabul - Afghanistan
Contact # 0093 700 478755, 0093 777 478755
Email: afghanistan@Vervefoods.com

For UAE:-
Verve Foods Ltd.
Z 2 – 16 Saif Zone, P.O Box 8065 Sharjah – UAE
Contact # 00971 6 5574363
Fax # 00971 6 5574364
Email: mena@Vervefoods.com

For China:-
Verve Foods Ltd.
16 Floor, Ya Hong Plaza No. 317 Jie Fang South Road Urumqi – Xinjiang China.
Contact # 00861399241447
Fax # 00991 5842444
Email: china@Vervefoods.com

For all other countries:-

Verve Foods Ltd.
135 Fe rozepur Road, Lahore 54600, Pakistan.
Contact # +92-42-111-135-135 Ext: 3117
Fax: +92-42-7590376
Email: international@Vervefoods.com

Vision statement:
Most Innovative and fastest growing food company offering products enjoyed in "every
home every day"

Mission statement:
Build Branded food business to improve quality of life by offering tasty, affordable and
highly nutritional products to our consumers while maximizing stake holders' value.
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Quality policy:
1. Build branded food business to improve quality of life by offering tasty, sage,
hygienically processed, affordable, highly nutritional food products through
environment friendly processes to our customers while maximizing stake holders' value.

2. Meet the requirement of all relevant legislation and regulation related to consumer
satisfaction & safety, environment and other applicable laws etc.

3. To prevent pollution through controlling levels of harmful emission, effluents and other
wastes.

4. Contribute to safe and healthy environment for our country.

5. Promote mutual trust with customers, suppliers, employees, shareholders and

community.

6. Provide all the necessary resources for the continual improvement in quality, safety of
our products, processes and environment.

Company’s value:
Enterprise
Empowerment
Accountability
Trust
Teamwork

Address:
Registered head office

135 Ferozpur Road,

Lahore,
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Pakistan.

Ph: +92 (42) 111 135 135

Fax: +92 (42) 759 0376

E-mail: info@Vervefoods.com

Location:
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SWOT Analysis

Strengths:

1. Strong management system:

2. Effective internal communication system

3. Efficient use of resources

4. Employees empowerment

5. Diverse work force

6. Innovations

Weaknesses:

1. Less market share

2. Limited knowledge of customers

3. Limited capital stock

4. Comparatively weak positioning

5. Limited resources

Opportunities:

1. Expending market growth rate

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2. Use of new technology

3. Increasing promotional media

4. Increasing customer awareness

Threats:

1. Unstable political situation

2. Uncertain future

3. Increasing rate of inflation

4. Poor economic situation in country

5. Unfavorable government policies

6. Strong competitors

Conclusion of marketing environment:

By the intensive study of the entire market in its whole perspective it came to know that the

overall environment is not much in favor of new firms. Because of semi-democratic ruling and the

presence of well established competitors holding major part of the market, it seems very difficult for a

new product to make its place in the market.

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Product
Now Verve Foods Ltd is launching a new PINE APPLE JUICE
in the market named as
“REFRESHER JUICE”

Brand name:
“REFRESHER”
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Slogan:
“REFRESHING LIFE”

Purpose:
The purpose of launching the refresher juice is to give a new taste to the people who are
drinking almost every juice available in the market. We want to provide a fresh juice to the
people so that they become refresh and healthy.

Features:

Following are some of the features of our product:

Pine apple juice is good for health

Provides calcium
Provides vitamins
Beneficial for kidneys
Excellent in taste
Gives freshness

Benefits:
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Following are the additional benefits which are offe red to the customers to give them

value:

Give 5 rappe rs and get one free juice pack

Purchase ten juice packs and get one pack free.

If you purchase a small crate of juice then you will able to participate in lucky draw and you can

win following prizes:

LG KG 288

DVD system

Rs.5000

Objectives:

To increase market share

To increase profit

To increase the length of product line

To serve customers better

To face strong competition

Marketing mix strategy

Segmentation:

We made the market segments on the following basis:

Density
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Age

Gender

Income

Family size

Family life cycle

Occupation

Education

Social classes

Life style

Personality

Benefits

Targeting:

We will target the following customers:

Young

Boys and girls

Belongs to middle class

Student of colleges and universities

Wants a new and refreshing taste

Differentiation:
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We will differentiate our product on the following basis:

Comparatively less price

New taste

Good for health

Effective distribution

Positioning:

We have to position our product in the minds of the customers and consequently in the

market with the help of our effective and customer oriented market strategies.

Competitor’s strategy

Our competitors have a good market share because they are adapting following

strategies:

Less prices

Effective promotion

Intensive distribution

Quality products

Customers research

Attractive packaging
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Company’s strategy

Size:

On the basis of product sizes of competitors and information obtained from survey, we

have decided to introduce our product in the market in the following size:

250 gm

Color:

As for as the colors are concerned, most of the people have showed their interest in

bright colors without naming a particular color, but majority of people have agreed on the

following colors to be the part of labeling the product.

Blue

Red

Orange

Purple

White

Packing:
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Product units are packed in a 6-layered Tetra Pack Brick Aseptic Packaging.

Price:

Every marketing activity including pricing should be directed towards a goal. Thus one
should decide on its pricing objectives before determining the price itself.

Pricing Objectives:

There are mainly three types of pricing objectives.

Profit Oriented

To achieve a target return

To maximize profit

Sales Oriented

To increase sales volume

To maintain or increase market share

Status -Oriented

To stabilize prices
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To meet competition

We have decided to enter in the market by focusing on Sales Oriented objectives and

determine our strategy accordingly:

Our Price Strategy:

The total per unit price for the 250mg pack that we will offer is as follows:

Cost of pine apple Rs.4

Electricity Rs.2

Factory over head Rs.3

Miscellaneous Rs.4

Retailer margin Rs.2

Profit Rs.7

Total price Rs.22

In accordance to our strategy we have decided to offer the product to customers at the

price of Rs.22. The price is very much compatible and the offe r is substantial enough to attract

a large percentage of market in a very quick time.

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Action plan

Placement:

We have decided to place the product in all the major and minor markets as well as in
the canteens of colleges and universities of Punjab. We have decided to acquire the services of
large and organized distribution network of Punjab.

Promotion:
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Effective promotion paws the way for the product’s success. There are many differe nt

ways through which we can promote our product. We have planned a very wide promotion

strategy that covers almost every part of the society. We have also paid serious attention to the

span of intensive promotion in the initial stages. We have supported our promotional strategy

with the use of electronic media, print media, internet and other sources and also with the help

of some schemes such as lucky draws. Our promotion strategy in detail is as follows:

Television channels

Geo news

ARY One World

Express news

Aaj TV

Indus TV

Star Plus

Cable ads

Newspapers

Don

Express

Jung

The News

Magazines

Akhbar-e-Jahan

Family
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Pamphlets

Banners

Sing boards

Prize scheme

Internet

Market Survey:

In order to learn weather people would like to buy or use our product, we have decided

to conduct a market survey. First of all we have designed a survey form that shows how we can

fulfill the requirements of the people. For this purpose we have surveyed different areas of

Punjab. The contents of survey form are as follows:

Do you use packed PINE APPLE JUICE?

Yes No

Which brand do you use? _________________

What do you consider before buying a product?

Price
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Labeling

Packing

Brand name

What should be the color of packing?

Blue

White

Red

Green

Yellow

Orange