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P&B Beverage company

ACKNOWLEDEMENT
We offer our humblest thanks to ALMIGHTY ALLAH who is beneficial, merciful and whose blessing enabled us to complete this project. We cant find the words to express gratitude for our parents whose prayers has always been the key to our success, which made us worthy of achievements and all the blessings that God showered upon us. The affection of our mother and encouragement of our father led us to reach this position that we have. We are thankful to a number of people who have assisted and aided us in going beyond the theoretical concepts provided in the books, and to make a practical report keeping in view the rational situation that persists in the market. We appreciate the efforts of Mr. Arif Vaseer for giving us the opportunity to get involved in this project, which has been completed after extensive hard work and effort. We are also very grateful to Mr.Saqib Shahzad for his help and high support. We are also thankful to all our friends who supported us throughout our project and give us good advice whenever we needed. Their company was like a gift of God for us. Sincere thanks to all

P&B Beverage company

EXECUTIVE SUMMARY
This marketing plan deals with the launching of a new energy drink named Pink & Blue in Rawalpindi and Islamabad by P&B BEVERAGE COMPANY. Our products will be positioned very carefully. They will be of extremely high quality to ensure customer satisfaction, supported by impeccable service to our customers. The report contains and explains the major variable components, which are required in the process of a product launch. It provides in-depth analysis of the energy drink, which is going to be presented in the market, stating the differential advantage the product has over other competing brands in the market. Currently in Pakistan there is low trend of using energy drink and only males are targeted in the market; however the trend is continuously rising especially in the urban areas. This gives us a hope and helps us to be optimistic. We can suppose that if our product is properly advertised and awareness is created among the people, our firm will have a bright future. We will have to adopt a marketing strategy which will not only make our product known to the customers but also make them realize the importance and benefits of using energy drinks. Our target customers would be the generation of 20 to 40 years of age, males and females will targeted separately. The customers of big cities would be targeted belonging to the upper and middle class. The marketing mix has highlighted all the key factors which are to be kept under consideration, and every aspect has been dealt with utmost details, keeping in view the internal and the external factors, especially the terms and conditions of the market. Initial plans are to produce two main products primarily focusing men and women. These products will be sold in different sized cans ranging from the 250 ml to the 500 ml cans. The Pink coloured can is specially targeting women and Blue is for men.

P&B Beverage company

Our marketing strategy will be based mainly on ensuring customers know what need the product is able to fulfill, and making the right product and information available to the right target customer. We will ensure that our product price is taken into consideration people's budgets, and that these people appreciate the product and know that it exists, including where to find it. However these prices will also take into consideration the cost of production and distribution so as to ensure that we remain viable and operational. The marketing effort will convey the sense of quality and satisfaction in every picture, every promotion, and every publication. We intend to provide the customer with more than just a traditional energy drink. Our customers are assured of products that have been produced using the highest quality standards.

COMPANY PROFILE
The P&B Beverages is a new firm going to start its operation in Islamabad. It will start with an energy drink product with the name Pink and Blue. Pink as the color represents

P&B Beverage company

is specifically targeting women and Blue is specifically targeting men. The firm is going to start its operations in a limited geographical level. To continue to thrive as a business over the next ten years and beyond, we must look ahead, understand the trends and forces that will shape our business in the future and move swiftly to prepare for what's to come. We must get ready for tomorrow today.
Vision:

To provide maximum level of service to our customers; To create high standards in customer care; To offer maximum quality control of products and services;

Mission:

Our mission is to serve people by providing quality energy drink


Slogan:

FEEL THE POWER

Corporate Objective:

We strive to operate our company on a sound financial basis of profitable growth increasing value for our stake holders and creating career opportunities and financial rewards for our employees

GAP ANALYSIS

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In Pakistan it has been noted that the majority of energy drink consumers continuously change brand, so thus there is no brand loyalty for energy drinks in Pakistan. And as energy drinks are new to Pakistan, the market share for any specific brand is not determined as yet. But still Redbull is on the top in market. The market segment, which we are targeting for Pink and Blue Energy Drink, comprises men and women who have a busy life style and need to keep energized to get through the tough day. So therefore they need something, which provides them with energy through out the day. There are some imported drinks in the market, but they are expensive as they are imported. Mainly the existing brands in the market are targeting Men. We have identified a new segment which is targeting Women which is Pink in color as the color represents feminine so this product is mainly targeting women. The can color is also in Pink Color to distinguish it from other. The recipe and ingredients for the female energy drink will be much lighter than those for men.

ENVIRONMENTAL ANALYSIS
Because of the growing craze over energy drinks, the number of energy drink brands has been increasing steadily as everyone wants to take advantage of the expanding market. The demand for energy drinks could be a direct result of peoples lives becoming busier.

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As people fill their lives to capacity and then add even more responsibilities, the daily schedules can become quite overwhelming, leaving little time for rest, relaxation, or sleep. All of this activity causes stress and fatigue, but there is no time to stop for a moment and recharge the batteries. As a result, people often turn to refreshment to keep them going throughout the day and give them the energy they need to complete everything they need to do. Energy drinks are one of the more popular stimulants because they are quick and easy, and most have few recognizable negative side effects. In Pakistan with the increasing trends of using energy drinks number of brands available are increasing. There are distributors who import these ready to drink around the world. Main market to import energy drinks is UAE, from there importers import in bulk and then distribute in their target areas. OZO Switzerland is a beverage company with the most extensive distribution system in the world. To distribute their product in Pakistan they have granted the rights to Ghani Group of Industries. Who recently have soft launched the product in Lahore market as OZO energy drink can be found in cafeterias at colleges and universities. This is the only brand that distributors import it directly from the manufacturer and they make its packaging accordingly then. The majority of the sales are coming from urban areas where people have greater purchasing power and awareness of such drinks. Sales of energy drinks are limited in rural areas although they are growing. Around 66% of the Pakistani population resides in rural areas, but most do not buy energy drinks as they are too expensive. Energy drinks are soft drinks advertised as being specifically designed to provide energy. The number of energy drink brands is actually much greater than people realize. Red Bull has been the dominant brand for many years, probably because it was one of the first energy drinks developed. Word of mouth has been a big part of Red Bulls advertising.

P&B Beverage company

Red Bull was the first successful energy drink in the market. But afterward companies realize that it is a very big market of those people who like energy drinks. So other companies also jumped in to share their part. Recently we have seen many companies in Pakistan, like Pepsi and Shezan, who have jumped in energy drinks business. One thing is common in all energy drinks that they are costly then other drinks; juices, malt, carbohydrate drinks etc. They have a special market which is increasing day by day. After lots of energy drinks in market, all are trying to compete with each other in any way possible. They are trying to give a better taste because taste is the most prominent change in these energy drinks. Taste is not acceptable in mass market, however many are trying now to increase their market share by giving a different taste. Second thing is their price, they are trying to reduce the price to gather a larger share like a big company Pepsi have introduced their energy drink Sting in just Rs. 60/- as compare to Red Bull the most famous energy drink costs above Rs. 140/- Thirdly they are working on distribution, trying to make their drinks available in all parts of the city, in every shop. Few energy drinks have different strategy to remain with their specific market.

COMPETITOR ANALYSIS
The energy drink industry is still in its birth stage in Pakistan and is highly disorganized and fragmented. There are no large scale competitors present and only a few international players exist in the markets that sell their products via very upscale retail outlets catering to the very elite of our society. However, the product will face a high level of competition

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from these international players that are increasing their supply of the product in the market day by day. Many new soft and energy drinks have been developed in recent years, worldwide, offering consumers a multitude of more interesting and unusual alternatives to standard soft drinks. Pre-mixed and flavored energy drinks tend to appeal to consumers aged between 17 and 40- years old. To meet the demands of these consumers, new energy drinks are coming up every day in the Pakistani markets. Furthermore, one of the recent launches of these kinds of drinks in Pakistan includes Iced tea by Nestle.

Our most notable competitors in the market are:


Red Bull

Red bull is the pioneer and most famous energy drink in the market. It was the first one to introduce energy drinks in Pakistani market. Red Bull kept its price high and remains with their specific market they target. Their price is Rs. 140/- which makes it the most expensive energy drink in the market. It is mostly available in posh areas of the city in start. Afterward there is a big change that they seek through another interesting market and start to supply their bottles to Pan wala shops which was not bad at all. People over there start trying it and I think that idea didnt catch by mass market because its hard to see Red Bull at Pan wali dukan anymore. They have shifted to Pepsis Sting. The pan walas now keep sting as an energy drink rather than red bull. People usually are not accommodating when it comes to energy drinks sharp taste. Many people regard the taste as the cough syrup. Though who are fan of Red Bull taunt to all other available energy drinks in market that they have sweeter taste.

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Booster

Booster is a German energy drink brand. It attracts one from the start as one looks to its packing. Like all other energy drinks available in long think tin packs, this is available in small, fat plastic bottle. Its packing is different from all energy drinks in the market so it appeals you at the first place. Second important thing is its price; this is an imported drink which is based in Germany so people would likely to trust the quality of drink. It is of Rs. 75/- but if one buy it from whole sale market then one might also get it at the price of Rs. 65/Third interesting thing about Booster is its awesome taste. This was the first energy drink which makes a good impression of whole industry in the minds of consumers. Its unique bottle design call customers to try it for once and then become a regular customer of it for as long as Pepsicos Sting jumped in.
Ozo

Ozo has a little different taste. Most important thing about this energy drink is that is available in few stores only, they have low distribution cycle which makes it hard to find. It is also in different bottle rather than typical energy drinks thin and long tins. This is available in green glass small size bottle with a plastic cap. Taste of this drink is acceptable. Many times there are comments by the customers that they want to actually try this new drink but are not able to find it in the market. This is the cheapest energy drink in the market till now which costs Rs. 55/- in retail market. If they work on the availability of this drink then it might gain an edge over other drinks in terms of low pricing.
Power Full

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Power Full is also a new energy drink in market. Red Bull would be the oldest one but new energy drinks are taking their share and at one side they are reducing the share of Red Bull but at the other side they are creating a larger market for energy drink users. Its bottle didnt attract a lot of target market but its red color on tin indicates me that it would be something like Red Bull. And its taste is similar to that of BOOSTER. However it is less sweet than Booster and people might like to have this instead of Booster. But its price is Rs. 100/- and for me sweet is good. People usually prefer booster over power full because of its attractive packaging.
Speed

After seeing lot of potential in energy drinks market, Shezan also introduced its energy drink with the name of Speed. Their packing is cool. Plus their price was like of Red Bull, it is available for Rs. 140/- whereas new energy drinks have tried to beat the prices. Speed has kept its price above which might attract people about its quality and uniqueness.
Sting

Pepsi introduced their energy drink in Pakistan with the name of Sting. They must have come in the market after lot of research. They checked the loop holes in energy drinks market and try to fix it from the product. Earlier energy drinks was considered as a sour drink which people take to energize them and to wake up late at night. Sting has added better taste in it. They have made it full of flavor with ingredients of energy drinks as well. They have introduced two flavors in energy drinks which is a positive factor to compete all energy drinks available in market. For competing Red Bull they have introduced their red berry flavor in red can. Taste is regarded as nice. Most important about Sting to catch the mass market is its rates. They are one of the cheapest energy drinks in the market. Sting can is of Rs. 60/- If a less price energy drink

P&B Beverage company

came in market, people would think about its quality and might not go for it. But when a big company like Pepsi co came up with energy drink, whether its price low, people wont question about its quality. Although there are many similarities between all the different energy drink brands, there are obviously some differences. The primary difference that distinguishes many energy drinks is the ingredient list. All energy drinks must contain something that results in an increase of energy, but there are various ways to achieve this effect. All of the energy drink brands experiment with their own unique mixture of ingredients, adding higher concentrations of some and lower concentrations of others.

SOCIO POLITICAL FACTORS


Political/government factors affect The P&B Beverage Company in many ways. Food and drink safety and security regulations will continue to be a hot issue as many producers strive to make sure that there will be only good and safe ingredients entering and leaving their processing units. In this industry, bad experience by customers turns into bad reputation. The beverage company needs to be in compliance now more than ever with food and drink safety commissions so that they can ensure that there will be no bad experiences to give them poor publicity. Socially and culturally, The Beverage Company definitely has to be emphasizing to their need to be culturally sensitive. As minority groups are increasing every year, businesses have to be sensitive and knowledgeable about all different cultures in order to satisfy the diverse group of consumers.

CUSTOMER ANALYSIS
Who are our consumers?

The first step in target marketing process is segmentation. We segmented the market aged between 20-40 years because in this segment, we came to know that consumers specially young adults aged 20-30 are increasingly facing too many options to choose from.

P&B Beverage company

Target market

Initially the business will be operational in Rawalpindi and Islamabad, so we can sell directly to the retailers without involving any third party. Afterwards when the business will expand its activities in other cities independent distributers will be hired. We will also make sure that our product is available in the top universities of the twin cities.

Market Segmentation

Market segmentation proves beneficial if it is done correctly. A straight forward approach to segmenting, targeting and reaching a market involves five steps: Form prospective buyers into segments by characteristics. Form products to be sold into groups. Estimate the size of the markets. Select target markets. Take marketing actions to reach the target markets.

In segmenting Pink & Blues market, age, density, income and life style are all useful characteristics for market segmentation. Age can be divided into various parts such as 2024 (students & athletes) and 25-40 (professional athletes and business officials). Density segmentation can follow urban and suburban localities. Income can be divided simply by under Rs.40, 000, Rs.40, 001-60,000, Rs.60, 001-Rs.80,000 and Rs.80,001 and above. Lastly, lifestyle can by separated into health conscious consumers and those who are not. Obviously, Islamabad market is quite large, so selecting target markets would be ideal. Focusing on caffeine drinkers (approximately ages 18+), in general, would be a wise decision because Pink & Blue can be a substitute drink for caffeine beverages like coffee. We also think that focusing more specifically on university students and athletes as well as professionals, aged 20-35, would benefit from Pink & Blue tremendously because

P&B Beverage company

these two segments are the companys main consumers. After all, some of the main benefits of Pink & Blue are to help improve physical endurance, concentration, reaction speed and increase mental alertness. Also, focusing on health conscious consumers would account for people who are concerned

BUYER ANALYSIS
Brand Loyalty:

The Pakistani customers do not have awareness of energy drink category as such. Thus Pink and Blue has to create awareness among the target audience of the category, widening the target base, while creating a differentiating factor for itself, from soft drinks that will stimulate mind and body simultaneously.
Consumer Insights:

The target customers believe that energy drink is associated with sports / adventure only. It is something not to be consumed for any social hang out of friends and family. Energy drinks is for the male segment only. It is socially unacceptable for the females to consume energy drinks. The energy drinks are only for teens and young adults. It is taken as totally unacceptable for the adults aged 30 and above. A large chunk of the market sees energy drinks as something addictive, drug infused beverage with negative health implication. Teens consume it to boost their brain powers before their exams, and to delay their sleep.

P&B Beverage company

There are certain cultural barriers which term energy drinks to provide fake energy, and believe these companies are playing psychological games with the minds of consumers. Energy Drink contains vitamins which are to be taken by people with vitamin deficiency, not by normal people. As doctors advice, Vitamins should only be taken to substitute a vitamin deficiency in the body, or during times when you are undergoing lots of physical training where the body consumes more vitamins, fats and carbohydrates.
Demographics:

Age: 20-40 Gender: Males and Females Education: High School Graduates/ Intermediates at least. Geographic Location: Islamabad and Rawalpindi (Upper & Middle class areas) Occupation: Students, Working people, Athletes and People into sports.
Lifestyle Profile

Lifestyles in the case of Pink & Blue Energy Drink are determined by our consumers personal characteristics; for example, their likes, dislikes and personality. Secondly, his or her personal context, for example university, group or number of friends and lastly their needs and emotions. These three sets of factors together influenced the pattern of our consumers activities and how they spend time and money. As Pink & Blue is an energy drink and the idea of an energy drink is new to the Pakistani market, we can say people

P&B Beverage company

who like to try new things, are social and have the desire to do better and more will buy Pink & Blue.
Attitudes

Attitudes can be used to predict behavior. When we knew that people of ages twenty to forty have a tough routine and they strive to do better whether its in sports, university work or even business matters, we predicted that they would likely have an energy drink that would keep them energized and refreshed for better results in whatever they do.
Motivation

Motivation has two components: drive/arousal and goal object. Therefore, the identification of peoples need to stay fresh and going was kept in mind. We will motivate these people by showing and telling them how their goals can be achieved if they keep themselves refreshed.
Benefit Sought

Markets can also be segmented based on consumers preferences for a specific product attribute or characteristic. Various energy drinks help prevent stress, inattentiveness, physical and mental weakness. The energy drink, that we have named Pink & Blue, is not only good for preventing stress, inattentiveness and physical and mental weakness, its also good for caffeine drinkers (TEA & COFFEE) as it also has a fair bit of amount of caffeine in it.

Decision Making Involved:


The consumers decision making has many stages and various factors affecting it, they are as follows:

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1. Problem Recognition

In our case, a student or a working professional may recognize that he/she is running out of physical and mental energy due to workload, resulting in stress or getting physically weak while playing a particular type of sport. In that case, they will look for things that will give them and energy and power to overcome weakness.
2. Information Search

Here the consumer will look for products that will satisfy his need. He will complete his search and will find energy drinks as the best alternative. A lot of options will come as there are so many brands in the market present widely.
3. Evaluation Of Alternatives

Pink & Blue with its excellent quality, a fair price and an edge over other energy drinks targeting separately women and men, will be a sure choice over average quality, expensive energy drink. Decision criteria of our consumer would be on the basis of price, style and quality of the energy drink.

4. Purchase

After choosing the best alternative, our consumer will be ready for the purchase. He will buy the product and will consume it.
5. Post-Purchase Behavior

Once a consumer buys Pink & Blue, he or she may engage in post-purchase behavior, via further purchases and/or re-evaluation. Many times, one purchase leads to others.

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Although, dissatisfaction is often due to a doubt whether a correct decision has been made or not. In order to satisfy our consumers, we will make sure that we provide them the best quality and ads aimed at purchasers.

Routine Consumer Decision Making


This will occur in the case of buying Pink & Blue, as this decision involves a consumer buying out of habit i.e. professional athletes, therefore, they will skip steps in the process. He or she will spend little time shopping and often re-buys the same brand. In this category are items/products with which a person has much experience. Pink & Blue will be bought regularly as it has no perceived risk and is relatively low in price as compared to our competitors. Once the consumer will realize that Pink & Blue is consumed, a repurchase is made.

MARKETING OBJECTIVES
The main marketing objectives for the first five years would be: Building an image in the market for Pink & Blue so that consumers see it as a superior product. Creating a sense of brand loyalty among consumers for Pink & Blue

P&B Beverage company

Focus on giving the consumers what they want when they want it. Making them believe that Pink & Blue IS WHAT THEY WANT. Our main plan would be to minimize operating costs as much as possible. So the main aim is minimize costs and maximize profits. To generate awareness about the uniqueness of the brand to the targeted segment To differentiate it from its competitors To induce trial and repurchases To maintain brand loyalty after the period of trial and further enhance brand image To reach the target market through effective utilization of communication channels To establish a memorable and pleasing image in the target audiences mind To establish Pink & Blue as the only identified brand linked to purity and innovation

SWOT ANALYSIS
Strengths: Strong financial background. Separate Drink is also available for the females which are lighter in taste then those for males. No visible change in sales even after price increase. Knowledge of target markets.

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Weaknesses: Lack of a reputation in comparison to our competitors. Large market share of other energy drinks like Red Bull. Limited market. Large market share of other energy drinks.
Opportunities:

Expansion in new markets A good opportunity facing us because energy drinks market can be expanded very well. There is a demand in the current market to adopt different flavours and versions of the product. Pink and Blue should widen its product line to retain the current market as well as capture more market. The product can be made available in the universities where the prime target market spends lots of the time. It will also help the brand to build a reputation of a fashion social symbol.
Threats:

Unstable political situation of our country. There is a misconception among the consumers that energy drinks contains contents to provide fake energy which are harmful for the health. Emergence of substitutes. Price war.

PORTER FIVE FORCES


Applying Porters five forces to the Pakistani energy drink market allows us to garner a retrospective view of the potential attractiveness in terms of profitability of the industry.
Threat of new Entrants (Low)

Although energy drinks are similar in their nature, they differ greatly in their ingredients and its concentration level. Energy drink market is growing like a weed. Companies are striving to put out the best energy drink designed for the potential customer that they have

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in mind. They are concerned with packing whatever ingredients they can to improve the stamina and physical performance of human beings. Therefore, the primary difference that distinguishes many energy drinks is the ingredient list. Customers do not face any significant costs in switching suppliers, as they are free to choose any brands they wish. No factor restricts them to use any particular brand. It is easy, cheap and convenient to buy any other brand they wish. Wholesalers do not find it difficult to import energy drinks in Pakistan because they do not need a lot of capital to do so. The new comers face difficulty in accessing distribution channels in Pakistan. This is because of the agreements made between the distributors and companies under which distributors are allowed to circulate only company related brands. New comers face excessive cost to turn these distributors in their favour. Mostly, other brands of energy drinks do not have a franchise based system but only they are imported by whole sellers who make them available in markets and create a competition in the industry. Distributors on the other hand, have to make sure that product is available throughout the country and therefore face high costs. Most of the foreign energy drink brands sold in Pakistan have manufacturing plants in their home country; they come to Pakistan via importing of whole sellers, while in Pakistan they mostly focus on distribution channels and marketing. Therefore, this also shows how different companies will compete more on distribution channels than the product itself. Experience does helps in continuously lower costs. This is because of strong distribution partnership made between the company and distributor. Main cost faced in Pakistan by these foreign companies consists of distribution cost. Good relationship created through long term business dealings with distributors ensures distributors confidence and lower bargaining power over the company itself. There are some basic requirements that need to be fulfilled before entering this industry. In Pakistan people have misconception about the product ingredients and its side effects.

P&B Beverage company

Therefore some restrictions are placed by government before initiating any of such projects. Government needs to be assured of product quality and standard. Therefore before starting a business, company needs to get permission for business. New comer expects strong retaliation on entering the market. This retaliation comes naturally as Red Bull is strong brand, almost acting like a monopoly. Therefore, as a monopolist it is expected for them to maintain its position and derail anyone who comes as an obstacle.
Bargaining Power of Suppliers (Neutral)

The inputs are standard rather than unique or differentiated. Energy Drinks operating in Pakistan are just a franchise which imports basic products from the suppliers and sold it in Pakistan through distribution partners. Therefore the product that these distributors get is standardized. Suppliers of the ingredients of Energy Drinks are needed by other industries as well and they has the option of switching its suppliers because the inputs are standard therefore manufacturers has a power over their suppliers. But on the other hand, the suppliers have number of other industries to supply to therefore they also have a power in the industries, therefore this force is getting a neutral rating.

Bargaining Power of Buyers (High)

The bargaining power of buyer is high in this industry. Although there arent a large number of customers and customers dont incur any costs in switching brands, the industry seems pretty attractive in terms of buyer power. First of all, the customer doesnt require any important information regarding the product. Its an energy drink with its apparent functionality and theres no need to convey additional information concerning the usage. As there are many new brands coming in the market customers can easily switch to another brand in no time.

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Threat of Substitutes (High)

Most energy drinks are carbonated drinks that contain large amounts of caffeine and sugar with additional ingredients. Energy drinks are used to satisfy the need for quick mental alertness. Several substitutes were in the market for energy drinks even before energy drinks were introduced. For example, coffee can be substitute because of the general perception of consumer that its consumption promotes mental alertness. Presences of many substitutes in the market that are easily available pose a certain threat to energy drinks. These substitutes are easily available in shops.
Rivalry among Existing Firms (Medium)

The energy drink industry in Pakistan has a high concentration ratio, meaning that fewer firms hold the larger part of the market. Especially since this market is smaller in Pakistan then in other countries and also has a slower growth rate. This can be due to the higher prices of the product. This means that energy drink industry is less competitive and this fact makes the industry favourable. Customers here can freely switch their brand preference without incurring any costs, which is an unfavourable factor for the industry.

MARKETING MIX
Product:

The product will be the best quality product in the market made from the finest ingredients through the best processes. Pink & Blue Energy Drink is the beginning for a venture into the future. Pink and Blue energy drink water contains Carbonated water, high fructose syrup and/or sugar, Citric Acid, orange and apple juice from concentrate, natural flavors, Sodium Benzoate, Sodium Polyphosphates, Caffeine, Erythrism Acid, Maurine, Calcium Imodium Etta (to product flavor), Potassium Benzoate, Brominates Vegetable oil, Calcium Disodium EDTA, Modified Food Starch. Pink & Blue:

P&B Beverage company

Our product is an energy drink. Now the question here is; what exactly is an energy drink? Is it something that keeps you awake for long hours? Something that gives you extra energy to work for hours? Or is it a supplement that compensates for the lost salt and water in your body? Energy drink is a beverage, which adds energized ingredients and vitamins for body stimulant. Despite the pleasant taste, the significant feature of energy drink is its ability to enhance power, strength, and speed. It helps to extend the duration during which the body is able to efficiently engage in specific mental or physical activity. Its hard to choose one particular energy drink over another since today's breed of energy drinks includes primarily the same thing. Pink & Blue offers better taste, it is an energy drink that can be used by anyone and everyone. Pink & Blue provides better quality and a better image, the competition for energy drinks is high no doubt, but our drink provides a light better tasting with targeting specifically women with a new product, better packaged and better imaged energy supplement that can even be used as a substitute for water which can compensate for your body water and salts.
Price:

Pricing wise, we offer a high quality and fashionable product at a lower price. It allows us to position ourselves as one of the best quality/price balanced brands. Initially we will launch product with an introductory price so more and more people can be attracted and can buy and test the product. Purchase price of 1 can is Rs.50
Promotion:

The promotion effort will be targeted toward not only informing the target audience but also creating an image of the product.

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Communication Channels T.V campaigns (through Cable) Bill boards Local Newspapers Posters

Placement:

The distribution strategy of Pink & Blue basically relates to the fact that how it should reach its target market. The company intends to use a mix of exclusive distribution in certain areas and intensive distribution in high turnover areas as well as channels.

VALUE CHAIN ANALYSIS


Firm Infrastructure Suppo rt Activit ies Human Resource Management Technology Development Procurement Outbound Logistics Marketing and Sales

Inbound Logistics

Operations

Service

Support Activities:

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Firm infrastructure: Refers to the number of employees and their management

techniques according to which the consumer perspectives relating to a product are identified. New methodologies of communicating with the consumers are adopted, change oriented behavior is used throughout the organization. Firm infrastructure of P&E is very strong. The whole distribution and management is to be handled by Pakistani staff who are much aware of the psyche of people and the areas where the product is being launched. Human Resource Management: HR activities will be decided by Top Management within the country. Staff will be hired within the country who are better and have well know how of the operations.

Technology Development: P&B will invests heavily in R&D and always try to come up with something unique which serves their name best in order to let them stay the market leader of energy drinks market.

Procurement: P&B will have more than one supplier and the inputs or raw materials are not unique but rather standard so, it tries to buy those raw materials which are superior in quality, which will allow the final product to be better than the previous one in order to satisfy consumers and meet their demands. P&B cannot compromise on the quality of the product hence raw materials which are acquired from different resources are of a premium quality.
Primary Activities:

Inbound Logistics: This involves bringing and procuring raw materials for the business. Raw materials are handled effectively there in order to produce the best product so that the final product has improved quality every time. Best raw material is selected and is used for the preparation of final product.

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Operations: Innovating new and unique products is one of the competency of P&B. Operations are carried out such that new product can be developed by investing more and more in research and development. Consumers attention span towards any product is decreasing with time so consumers also expect companies to bring something new every time. Operations carried out are according to customers specifications and requirements which are unique in processes and produce innovative outputs. Outbound Logistics: First of all the final product will be stored in depot, from where the product will be sent out for sale in market to the retailers. Marketing and Sales: This is one of the important factors which will help in the success of Pink and Blue. To keep the company abreast with competition and to provide support to its channel partners and to increase the sales, P&B will put lot of effort in its marketing activities. This includes maintaining excellent relations with its channel partners, making huge investments in Advertising for the launch of a product. Service: In this industry after sale service is not required.

SUPPLY CHAIN MODEL

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Raw Material/ Suppliers

COMPANY

FINISHED GOOD

WAREHOUSE

DISTRIBUTOR

SALESMEN

WHOLESALER

RETAILER

RETAILER

CUSTOMER

CUSTOMER

P&B Beverage company

In the supply chain the primary activity of the company is to receive material to be used for making the product. P&B will take the best quality of the raw material from the supplier to ensure that the product is of high quality. After receiving the product the company uses it machines and other resources to make and transform the raw material into finished goods. After that when finished goods are produced they are taken to the warehouse, from where they are available for distribution. Everything at the Distributor point owned and managed by the distributor, even the salespersons are on the Distributors payroll. Wholesalers get their stock directly from the Company and thus get special rates and extra discounts from the Company. Retailers are the most important chain in the distribution channel as they are the only point of contact with the customers. Retailers get their stock from all the other channel members in the distribution channel. This is how the supply chain of P&B will function.

P&B Beverage company

BLUE OCEAN STRATEGY


P & B Beverage Companys Blue Ocean Strategy is that its going to operate in uncontested market place through pink energy drink where market is irrelevant and we can create and capture a new demand targeting girls/women by introducing a new energy drink only for girls. We will be able to establish an additional category of untouched competition. It is Pink Energy Drink, as the pink color represents feminine it is particularly for girls/women.
Strategy Canvas for Pink Energy Drink:

P&B Beverage Company will be focusing on the following parameters for its new product Pink Energy Drink, which lies under blue ocean strategy:1- Huge expenditures are on promotional activities .This includes the following: Promoting them Pink in color as the color represents feminine so this product is mainly targeting women. Promoting Pink Energy Drink as a strength giving drink for girls and specially for working women. It is lighter in taste and less caffeine component is added. 2- Investments are moderate because already company is manufacturing Blue energy drink for men. P&B Beverage Company will only need to invest in material for making Pink Energy Drink. 3- Pink Energy Drink will be promoted on the basis of its Quality and new target market. 4- There is a strong distribution network because our market is not big we are just targeting in Rawalpindi/Islamabad markets initially. 5- Can packaging; a very large amount of investment goes in providing delicate and very stylish kind of can packaging. Because we are focusing on girls/women and girls/women like very stylish, glittering things. Hence stylish and delicate packaging becomes inevitable. So the canvass can be drawn as follows:

P&B Beverage company

Properties Promotion Manufacturing Quality Distribution Packaging

Degree of Investment or Emphasis High Moderate High Moderate High

Pink Energ Drink S y trateg Canvas y


6 5 4 3 2 1 0 Promotion Manufacturing Quality Distribution Packaging

Strategy Canvas For Existing Industry:

Pink & Blue Beverage Company will be focusing on the following parameters for its existing industry that is Blue Energy Drink:1- Moderate expenditures are on promotional activities. 2- Investments are huge because machinery cost and capital expenditure are high. 3- Blue Energy Drink will be promoted on the basis of Quality. 4- There is a strong distribution network because our market is not big we are just targeting in Rawalpindi/Islamabad markets initially. 5- Can packaging; a moderate amount of investment or emphasis should be given to Blue Energy Drink because as far as men are concerned they prefer good quality, they dont like flashy things. So in this case the investment will decrease a bit.

P&B Beverage company

So the canvass can be drawn as follows: Properties Promotion Manufacturing Quality Distribution Packaging Degree of Investment or Emphasis Moderate High High Moderate Moderate

Blue Energ Drink S y trateg Canvas y


6 5 4 3 2 1 0 Promotion Manufacturing Quality Distribution Packaging

Combined Strategy Canvas of Pink & Blue Energy Drink:

C bined S om trateg Canvas y


6 5 4 3 2 1 0 Blue Energy Drink Pink Energy Drink

P&B Beverage company

Four Action Frameworks

Eliminate

Pink Energy Drink has nothing that should be eliminated.

Reduce

Strong taste which we use in Blue Energy Drink. Pink Energy Drink should be light because our target customers are women. Caffeine quantity will be reduced.

Raise

Quality of energy drink should be raised because customers whether its men or women will prefer good quality product. Design and style should be enhanced.

Create

Brand awareness using female influential celebrities. Style of the can which symbolizes femininity. Awareness regarding Energy Drinks.

P&B Beverage company

MARKETING STRATEGIES

Product Opportunity Matrix

Existing Products

New Products

Existing Markets (Market Penetration) (Product Development)

New Markets (Market Development) (Diversification)

Blue Energy Drink is a product that is not totally new to the market. There already exists a market for energy drinks. Also, since the energy drinks market is very well defined and has limited scope in terms of broadening, we are looking at the Current Market instead of a new one. Thus, adopting a Market Penetration Strategy for Blue Energy Drink seems to be most appropriate, within which, our aim will be to maximize market share. This can be done by aggressively marketing and advertising the product to make the target segment aware of the value propositions on offer.

Pink Energy Drink is a new concept in the market targeting a new market segment as well. So diversification strategy seems appropriate. Our product is targeting specifically women which is a segment not yet targeted by competitors and there are also modifications in the product that is according to the taste of women i.e. Caffeine is less used in the Pink Energy Drink.

P&B Beverage company

Product Life Cycle

Introductio n

Growth

Maturity

Decline

Out of the four life cycle stages, Energy Drinks are in the growth stage. Since energy drinks have been around for many years. New products and new emerging brands have expanded consumer choice in the energy drink market, which has pushed them in the growth stage. Whereas Pink and Blue Energy Drink is in its Introduction Stage as it is going to launch in the market.

P&B Beverage company

BCG Matrix

Relative Market Share


HIGH LOW

Market Growth Rate

HIGH

Star

Question Mark

LOW

Cash Cow

Dog

The relative position of Pink and Blue Energy Drink in the market dominated by Red Bull is quite low and the potential for market growth is very high. Thus Pink and Blue falls in the question marks quadrant, where it has high potential to increase market share and move to the stars quadrant, and eventually to cash cows where the market growth will slow down. Also it is to be noted that if Pink and Blue does not succeed in becoming a market leader, then there is a possibility that after years of cash consumption it will degenerate into dogs when the market growth will decline.

P&B Beverage company

TOWS MATRIX

Strengths
1. 2. 3. Strong Financial Background Separate Drink for Females No visible change in sales even after price increase Knowledge of target markets. Expand in other markets to generate higher revenue (s1,o1 &o2) Target male and females from universities (s2,o4)

Weaknesses
1. 2. 3. Price pressure competitors. from

Lack of a reputation in comparison to our competitors Large market share of other energy drinks like Red Bull. Limited market

4.

4.

Opportunities
1. Expansion in new markets

S-O Strategies
1.

W-O Strategies
1. Take advantage of exploring new markets to increase production and reduce price (w1, o1,o2)

2.

Energy Drink market can be expanded very well Extension of product line to increase market share Target Universities directly

2.

3.

4.

Threats
1. Unstable political situation of our country

S-T Strategies
1. Bring a new product that has no caffeine (s1,t2)

W-T Strategies
1. Conduct an official lab testing of Pink and Blue in order to remove the misconceptions of people. (T2,W2)

2.

Misconception about energy drinks

3.

Emergence of Substitutes

P&B Beverage company

4.

Price War

SALES FORCAST

Month
March April May June July August September October November December

Sales
20000 20000 23000 25000 28000 22500 23100 19000 18000 15000

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