HAMDARD UNIVERSITY CITY CAMPUS

FINAL REPORT
Report on launching of a new product

SUBJECT:
MARKETING MANAGEMENT
 HAMDARD UNIVERSITY CITY CAMPUS
Report on launching of a new product

SUBMITTED TO : MAJOR GHULAM ABBAS

SUBMITTED BY: Group Members

Manawar Ali Khan (MEN2200770)

Rahil Shaukat Ali (MEN2200782)
Jimmy Dossani (MEN2200766)
Syed Ahsan Hussain Rizvi (MEN2200978)

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Shahnawaz Lalani (MEN )
Syed Muhammad Arsalan (MEN2200806)

A Tea for Every Taste

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DEDICATION

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 We dedicate this report to those
who helped us in making this
report, especially to our
honorable instructor
Major Ghulam Abbas and our
respected mates and in last thanks
to everyone who helped us support
and make it possible to complete
this report.

INDUSTRY OVERVIEW

The Tea manufacturing industry in Pakistan prepares products ready

for sale and consumption.

This involves the sourcing of ingredients, processing, preservation

and packaging. It also involves a range of processes including
product research and design, taste testing, and marketing.

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The public these days craves a choice in its hot beverage selection,
and the companies whose business it is to quench your taste and
demand very seriously. The population of Karachi, for instance, is
around 16 million and everyone like to have TEA, after the spending
hours of tremendous work. The trend of hot beverage consumption
can be seen which shows that Karachi has a big hot beverage market
and lots of opportunities are present in this market. The consumption
of hot beverages is increasing.

We are new to the industry of TEA, we first time going to introduce

our innovative instant Tea “TEMPTATION TEA” that is the reason
we don’t have any competitor in the current market but maybe we will
find some competitor in the future who have good image in the eyes
of consumers like Tapal, Lipton etc.

INTRODUCTION OF OUR COMPANY

We “Star (Pvt.) Ltd.” newly established a company situated at Korangi Industrial

Area, Karachi, and producing convenience instant tea. As our first product, we
have launched a relaxing instant tea. Having researched and analyzed rigorously
we have finally come to a conclusion that there exists a potential in a newly
developed instant TEA market. We have made complete market research before
introducing TEMPTATION TEA. Initially, we are introducing TEMPTATION TEA
in the major cities of Pakistan only; namely Karachi, Lahore, Islamabad,
Peshawar. But we will soon be expanding our geographical markets by extending
our product all over Pakistan. Our origins are humble but our vision and aims are
very high.

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To start our manpower consists of 80 employees. Under the CEO we have five
directors responsible for finance, marketing and sales, production and human
resource departments.

After a humble start we expect to expand swiftly after reaching our initial targets.
Our production capacity as of now is 480,000 sachets per month.

We are expecting that 65% of population in Karachi will appreciate our product
and they will buy TEMPTATION TEA. This is our initial expectation and we hope
that we will achieve this target and consumers will enjoy the taste of
TEMPTATION TEA because we have given great importance to consumer taste
and preference in the production of TEMPTATION TEA.

MISSION

• Our mission is to deliver consistent quality to our

customers combining taste and using pure ingredients and the
best available technology thus meeting the

• Highest standard of quality, at competitive prices.

• We shall achieve this through management’s

commitment, participation of employees,

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 • Ethical practices, consumer insights and continuous
improvement of all our processes, products and services.

VISION
• To be very innovative, marketing and research oriented
company.

• To be a leader and take advantage of our leadership position in

all currently TEA making companies thought out the country.

• To develop products in line with market potential through the

means of indigenous technology using R & D.

• Market our product comprehensively

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 • To target every segment of Tea drinker in the country

• To become a well known brand

Our vision captures the essence of who we are. Everything we do

flows from our vision. We just don't happen to be a business that sells
– it's what we're all about. Our vision is about meeting consumers'
needs and making drink an easier, healthier, more enjoyable part of
life.

CORPORTATE OBJECTIVES

The corporate objectives of the organization include:

 Double the size of the company within 5 years and there by deliver
superior value creation.

 Connect with suppliers.

 Nurture new categories.

 Extend product line.

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 Behave as challenger.

 Build human resources.

MARKETING OBJECTIVES

Star (Pvt.) Ltd. is very strict in laying down its marketing objectives
and strategies, therefore the following explicit objectives although not
quantifiable have been jolted down:

o To maintain the profitability of the business thought out new

products during the year.
o To continue with the quest for maximum quality being delivered
to the consumers.

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 o To satisfy, meet and exceed both the explicit and implicit needs
of the consumers.

Some of the major strategies to meet these objectives are:

o Identification of the unfulfilled needs of the consumers using

marketing research by making use of the focus groups, thus
tailoring the products to the needs that are intended to be
satisfied.
o Providing additional value to the consumers by increasing the
indirect benefits such as money back guarantee etc.

To sum up, the marketing objective is to achieve customer

satisfaction in response to changing market trend and have a good
market share. First we want to create brand awareness in the major
cities and satisfy the consumer then in future we want to make our
brand profitable.

STRATEGIES SET THE COURSE

Our six strategies are our road map for achieving long-term success,
and ultimately reaching our vision. They provide the framework for
the goals we set and the commitments we make to our investors,
employees and communities around the country.

• Build superior consumer brand value – Delivering more product

benefits to consumers at the right price, compared to the competition.
We’ll do this with great-tasting products, innovative packaging, consistent
high quality, wide availability, helpful services and strong brand image.

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 • Transform the portfolio – Accelerating the shift in our product portfolio to
better align with key consumer and customer trends and the fastest-
growing sales channels and demographic groups.
• Expand Trough out country– Increasing our business thought out the
country, especially in the big cities of the country.
• Drive out costs and assets – Creating a leaner cost structure and
making better use of our assets to generate savings we can reinvest in
brand-building.
• Strengthen employee and organizational excellence – Developing
organizational capability and supporting our employees in meeting
business challenges.
• Act responsibly – Continuing our long tradition of integrity and support
for the community, and engaging on the societal issues that are most
relevant to our business.

THE CORE VALUES

Our Values...

• Innovation – Satisfying real-life needs with unique ideas

• Quality – Fulfilling a promise to deliver the best
• Safety – Ensuring high standards in everything we make
• Respect – Caring for people, communities and the environment
• Integrity – Doing the right thing

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 • Openness – Listening to the ideas of others and encouraging
an open dialogue

These six values are what we stand for, the standard of conduct we
hold ourselves to and our commitment to the people who work with
us, invest in us, and purchase our products. They plainly
communicate what the world can expect of TEMPTATION TEA and
what we must expect of ourselves.

ABOUT THE PRODUCT

Tea is a miraculous medicine for the maintenance of

Health”

There are many instant tea provider are currently working in the market but
they are producing herbal tea , lemon tea, etc but TEMPTATION TEA is
basically based on same recipe of tea which usually drink in Pakistan.
some of the tea manufacturer like LIPTON and others they are just

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producing tea but as far as concern about our product you can find
everything in a single sachet like “TEA, MILK,SUGAR” in a powder form.
We also introduce tea for the diabetic patients which having similar
ingredients but in the place of sugar we use diabetic sugar for them.

“TEMPTATION TEA is the product which makes life easy”

Our product TEMPTATION TEA is very unique and innovative

product in market because these days people don’t have much time
for making tea by its traditional method, so that is the reason
TEMPTATION TEAE instant hot beverage save time and give u same
taste as you can find in any other tea, Many companies was
introduced TEA bags for reducing time in making tea but still in tea
bags you must need milk sugar in spare but as you people know in
our product reduce the mental stress in making of tea. You just boiled
water and after exceeding 100 degree centigrade or in a hot water
you just put a sachet stair it and then read for drink.

BENEFITS OF OUR PRODUCTS

Some of the major benefits of our “TEMPTATION TEA” is

always ready to drink need just a little work. Secondly our
product is also use as a medicated product because it using
for treating everything from headaches to depression and

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some medical conditions in which our drink is reputed to be
helpful in fighting with.

 High cholesterol levels

 Cardiovascular disease

 Infection

 Cancer

We believe that the secret to a better lifestyle lies in an

understanding of people, communities and nature.

S.W.O.T ANALYSIS

STRENGTH
 Strong sales force
 A new innovative product

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 Highly equipped plant
 Best quality
 Better advertising campaign
 Economical price

WEAKNESSES
 Lack of experience
 New company
 Development & training of employees at initial stage
 Budget control at initial stage
 Weak distribution

OPPORTUNITIES
 Huge market of Pakistan
 Potential in the market as the industry is in growth stage

THREATS
 Acceptance of new brand in the market

POSITIONING OF PRODUCT
Star (Pvt.) Ltd. positions its products in relation to the competition because we
will build the resources to do so. The company positions its products in the minds
of the consumers using both image and product differentiation. The unique
features of the product TEMPTATION TEA are stressed by making use of both

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electronic and print media and similarly the image of Star (Pvt.) Ltd. is utilized
while introducing new and novel products so that it can serve as a cushion
against the quick failure of the product.

ASSURANCE OF QUALITY
The Products are Manufactured/Processed in State-of-the-art facilities and
undergo stringent quality control measures to ensure high quality standards.

Special care is taken to follow the health and labeling laws applicable in Pakistan
to avoid any loss on rejection by the concerned authorities.

WORLD CLASS TECHNOLOGY

TEMPTATION TEA is manufactured in totally automated environments.
International class technology is used to pack TEMPTATION TEA in world class
Pilfer-proof, moisture-resistant packs, which ensure that the products retain their
taste & freshness for years.

PACKAGING

The packaging of TEMPTATION TEA is done through mutual cooperation

between the management of STAR (Pvt.) Ltd. and the advertising agency REAL
WORLD AD AGENCY. The company specifies the target market and the
segment which has to be appealed, the company also specifies the
characteristics of the product and thus the agency designs the package after

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taking into consideration all these factors. As of now, we have launched
TEMPTATION TEA only in 25 gm sachet packs, which can easily be purchased
and used by our target consumers. They are convenient to use and can be
afforded easily by individuals. We have introduced the sachet packs initially
because we believe that in the present day when the life has become very fast
and busy, consumers require products which are convenient, time saving and
readily available for easy consumption at any time. Consumers these days don’t
go for bulky shopping rather they are more interested in buying less quantities
focusing on their individual needs. Also as we are new to the market we want to
get the consumers to know, try and like our brand. Later we plan to introduce jar
and box packs of TEMPTATION TEA as well, mainly of two sizes Regular and
Family. These new packs would cater to the needs of other segments of the
market.

The sachet design and labels of TEMPTATION TEA are made eye-catching and
attention grabbing by the use of bright colors, the back side of the package gives
the preparation directions to the consumer, in addition to other details such as
ingredients, company information and net weight of the contents.

PRICE

The company maintains a strict control over the prices of the product
and both the retail price as well as the consumer price is set by the
company and great care is taken to ensure that the ultimate

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consumers receive the product at the set price i.e. the company
engage in strict resale price maintenance.

PRICE OF TEMPTATION TEAE

25 gm Sachet: Rs. 15/-

The price per sachet of TEMPTATION TEA is set at par with the
quality of the product as well as the market price and some of the
HOT BEVERAGES are currently selling in the market.

THE PRICING OBJECTIVE

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According to the product manager, there are basically two types of
pricing approaches being employed in almost all industries in general
are:

COST BASED PRICING:

The simplest pricing method is cost-plus pricing – adding a standard

markup to the cost of the product. This way, prices are set after
taking into consideration the costs of production thus to provide a
company with a fixed and solid profit base.

MARKET BASED PRICING

This approach to pricing sets prices after recognizing the need being
fulfilled by the product, the affordability range of the target market and
after conducting a thorough sensitivity analysis and specifying
formulations. It is based on the philosophy of “customer first”. Ideally
the company should adopt the pricing approach.

However, currently has been priced as a result of the combination of

these two approaches in order to serve the dual purpose of satisfying
and exceeding customer expectations and to maintain the profitability
of the business.

PLACEMENT

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During the initial phase, we are launching TEMPTATION TEA in only the major
cities of Pakistan; namely Karachi, Lahore, Islamabad, Peshawar. The
distribution channels used by STAR (Pvt.) Ltd. are:

Producer Distributor Retailer Consumer

The distributor we have in Karachi is Premier Agency which will take care
whether the retailers have the right quantity of stocks at hand at the right time.
Moreover we will provide incentives to our distributors

REASONS FOR USING THIS CHANNEL

The company utilizes this channel because:

 The unit value of the product is low.
 The product can be stored for a considerable time.
 The product does not require technical information.
 Convenience is a very important factor in its distribution
 The product does not require many services before, at or after sale.
 The number of potential customers is very high.
 The target market is spread all over Pakistan.

PROMOTION

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Promotion is an element in an organization’s marketing mix that serves to inform,
persuade and remind the market of a product and the organization selling it.

The promotional methods used by TEMPTATION TEA - 22 - 22 - are:

 Sales promotion
 Advertising

SALES PROMOTION
Sales promotion, a key ingredient in marketing campaigns, consists of a diverse
collection of incentive tolls, mostly short term, designed to stimulate quicker or
greater purchase of products by consumers.

The main objectives for using sales promotion are:

o To stimulate business user or household demand for a product.

o Improving the marketing performance of middlemen and sales people.
o Supplementing advertising.

The sales promotion activities being carried out by TEMPTATION TEA include:

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EVENTS SPONSORSHIP banners of TEMPTATION TEA can be
seen at many important events being held in Karachi, banners have also
been placed around the big business centers of Karachi.

FREE SAMPLING which we are carrying out in different schools,

colleges and universities to create awareness of TEMPTATION TEA and
thus induce trial and liking for the product and ultimately create brand
loyalty. Moreover, sampling is also being done at the main super markets
and departmental stores of Karachi.

ADVERTISING

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ADVERTISING OBJECTIVES

Our advertising objective is to earn our reputation as a leading INSTANT TEA

company and initially gain customer confidence that will eventually lead us to
gain a large market share.

SHORT TERM OBJECTIVES

• To achieve sales of 300,000 sachets of TEMPTATION TEA in the first

three months.
• To establish brand acceptance.

LONG TERM OBJECTIVES

• After brand acceptance enhancement of sales of at least 25% annually.

• To hold largest market share within three years.
• To make TEMPTATION TEA a household name through effective media
planning.
• To be symbolic with quality in minds of consumers.

We have focused on three types of advertising media:

o Print (Newspaper/ magazines)

o Television
o Outdoor ads

All these three media would include in them different advertising objectives.

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• INDUCE TRIAL In inducing trial, consumer usage is defined.
TEMPTATION TEA tells the consumers that how, why and when they should use
the product. All this is mentioned in the advertising campaign.

• SUSTAIN PREFERENCE The presentation of the product

emphasizing its taste, freshness and high quality will help the consumers to
sustain on the product.

• CHANGE HABITS In response to consumer, TEMPTATION TEA has

played its role to compete, in quality conscious market. The brand interactions
and direct marketing activities would play a vital role in changing the habits of the
consumers.

MEDIA OBJECTIVES

The promotional campaign and advertising develop strong association in the

mind of consumers. We have preferred the electronic media as the primary
media whereas print and outdoor media come second. The T.V. advertisement
gives the theme of the product usage situation focusing on our slogan
“………………………………………………………….”

• TIME LINE FOR THE MEDIA PLAN

The time line for media plan is selected from 4 to 6 O’ clock while people driving
from their offices to home, 7 to 8 O’ clock during talk shows, comic programs, 8
to 10 O’ clock during prime time family programs. Moreover we will place our ads
in between sports related programs and matches as the cricket phobia is on
these days, in order to target the youngsters and sporty and fitness conscious
people. This would increase the corporate image.

• MEDIUM

The hoardings and billboards sustain the ads. The advertising on television
would build the image. In print media, newspapers and magazines would give
long time coverage through the daily, weekly, monthly etc.

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 • REACH & FREQUENCY

The nationwide advertising inform about the reach and frequency. A particular
research company will provide the sample size of the target population. The
circulation of Gross Rating Point (GRPs) provides the exact information about the
watching ads target market.

MEDIA PLANNING PROCESS

TIME LINES FOR MEDIA PLAN

While executing advertising campaign we have to keep in mind that lives of

common people are extremely busy and identification of time frame is critical
otherwise the whole exercise can result in disastrous and futile outcome.

LAUNCH PERIOD

We suggest a nationwide launch with the launch period of one month in order to
create proper awareness of our brand name “TEMPTATION TEA”. We will not
make any compromise and advertise most aggressively during initial periods to
inform and to persuade user in every effective way.

POST LAUNCH PERIOD

We intend to keep reminding and persuading consumers by effective strategies

designed accordingly.

MEDIA DECISIONS
After analyzing and comparing all important factors, utilizing a thorough decision
making process and considering our marketing objectives we have selected the
following media.

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PRINT MEDIA

Out of the total budget allocated for advertising, 30% has been allocated for the
print media, as it has a longer life, reach to the masses and augments the
electronic media.

NEWSPAPERS

We have mainly selected the two top selling newspapers of Pakistan because of
their highest rate of circulation and coverage, which easily covers our desired
target market. We have chosen:

• Dawn
• Daily Jung

MAGAZINES

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We have selected mainly two magazines which are targeting our desired and
potential customers and have a sound coverage and readership. As
TEMPTATION TEA is targeted at a different segments comprising of families,
workers, sports people and students, we have chosen the weekly family
magazine Akhbar-e-Jahan and monthly magazine Harold

OUTDOOR ADVERTISING

BILLBOARDS
Billboards are one of the important tools in our advertising campaign. Our desired
locations for billboards which we have selected are:

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 I.. I. Chundrigar Road
 Shahra-e-Faisal
 Schawn Circle

We have selected these locations owing to the fact that they have the most
potential of being sighted by the potential consumers and are the busy areas of
Karachi. Even many office buildings are located at these areas, thus covering our
segment of middle and lower class workers, who may get to see our billboards
on regular basis and purchase our product on impulse.

POINT OF PURCHASE

Pint of purchase material is the greatest source of buying among our target
customers. For our product TEMPTATION TEA we have focused mainly on:

• Posters
• Banners
• Buntings
• Hangers for the sachets

 ELECTRONIC MEDIA
The significance of electronic media is the most in the modern days we are in. A
huge majority of the population today gets exposed to T.V. and Radio, the rate is
considerably higher in comparison to the print media which is dependent on the
literacy and mental level of the audience. Whereas T.V. ads are mostly viewed
and understood by even the illiterate population, thus urging us to spend 60% of
our total advertising budget on electronic media.

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T.V.
In the case of television we have designed our campaign through the following
channels:

• GEO
• INDUS

Our T.V. ads of about 50 second duration will be aired through these channels
during family hours and prime time shows, more frequently during the launch
phase.

RADIO
We will place our radio ads on the following two channels during the drive time
8-10 in the morning and 4-6 in the evening:
• FM-100
• FM-101

We have selected the morning and drive time so that we can reach our target
audience, who are mainly office workers driving to and from the offices during
these hours. Also the house wives get to listen to radio during these hours In
addition to these we are also planning for branded shows on radio of half hour
duration.

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INTERACTIVE CDS

We are also planning to distribute interactive CDs to the major cable networks
with a number of music videos based on the theme of our product TEMPTATION
TEA which can be played on the cable networks any time through out the day.
This will be effective since will have a greater reach among the mass audience in
a more cost effective manner.

PROMOTIONAL EVENTS
During our launch period we shall be carrying out the promotional activities more
aggressively, we will be setting up stalls in the major shopping malls and super
markets for a period of four weeks in order to create awareness of our newly
launched brand TEMPTATION TEA

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 MEDIA SCHEDULE

DAWN & JUNG

PERIOD: Launch 1 Month

DAWN & 1st Week 2nd Week 3rd Week 4th Week
JUNG
Size and 20 X 3 20 X 3 20 X 3 (Black 20 X 3 (Black
format (Colored) (Colored) and white) and white)
Day Sunday Sunday Sunday Sunday
Position Front page Back page Page 3 Page 3
Frequency 1 time a week 1 time a week 1 time a week 1 time a week

AKHBAR-E-JAHAN

Akhbar-e- 1st month 2nd month 3rd month 4th month

Jahan
Size & 1 page color 1 page color 1 page color 1 page color
Format
Position Back page Back Page Inside Inside
Frequency 3 times/month 2 times/month Once/month Once/month

BILLBOARD SCHEDULE

Billboards Size Duration Form

Shahra-e-Faisal 10 by 20 feet 12 months Plain
I.I. Chundrigar 10 by 20 feet 6 months Plain
Road
Shawn Circle 10 by 20 feet 3 months Plain

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 GEO TV LAUNCHES 1 MONTH

Program Days Time Duration Frequency

Career Online Friday 6-7 50 sec 4
spots/program
News Tuesday Before/mid 50 sec 4 spots/ day
news
Ordinary First week B/W 10-12 pm 50 sec 2 spots
Ordinary Last week B/W 6-7 30 sec 2 spots

RADIO

Radio Days Time Duration

FM 100 6 months Drive time 2 Hours
FM 101 First 3 months Drive time 2 Hours

FINANCIAL ANALYSIS
ORIGINAL INVESTMENT

Original investment Amount in Millions (Rs.)

Plant (30 years) 46
Building & Factory 14
Fitting & Fixtures 15
Generator 3.5
Misc 3
Marketing plan 18.5
0
Total 100

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 Designing Marketing Budget

Marketing Plan Amount in Million Percentage%

Placement 8 43.3
Promotion 3 16.2
Positioning 5 27
Promotion 2.5 13.5

Gross Profit per Sachet

Particualars Amount in Rs. Percentage Ratio

Price per sachet 10
Manufacturing Cost 6 60%
Gross Profit 4 40%

PROJECTED CASH FLOW FOR NEXT THREE YEARS

Particulars Year 1 Year 2 Year 3

Sales (in 96 120 140
million)
Cost of goods 57.6 72 84
Sold
Gross Profit 38.4 48 56
Marketing, 40 40 36
Admin & Sales
Promo
Net Cash Flow (1.6) 8 20

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 CONCLUSION

It can easily be concluded by reviewing the entire text of the report that our
product TEMPTATION TEA has great potential in the market as the powdered
instant TEA industry is at the growth stage. TEMPTATION TEA can count on its
combination of great taste with refreshing power and high quality to create its
own niche in the market and this way can gain brand loyalty by its customers.
Although very strong competitors are there in the market but the unique taste of
TEMPTATION TEA will surely appeal to the masses and it is bound to capture a
high market share in the time to com. We have used all the strategies to target
our potential customers and the results seem to be promising.

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 REFERENCES

o Marketing Management (Eleventh Edition) by Philip Kotler

o Advertising- Principles And Practice (Sixth Edition) By Wells

Burnett Moriarty

o www.kraft.com

o www.trendwatching.com

o www.rasnaindia.com

o www.mouthshut.com

o www.wikipedia.en

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