Marketing Management

New Product
Development

• Submitted to:
– Sir Farooq Jam

GRADUATE SCHOOL OF MANAGEMENT

INTERNATIONAL ISLAMIC UNIVERSITY
Group Members:

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Kha
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Imran
Khalid
ZUKAIF
Farooq
 ZUKAIF Herbal Tea Company
Ltd

Registered Office and factory:

Ternoal Islamabad
Phone: 0333-9835303
0333-6836340
0322-9780672
Fax: 051-5827385
Web site: www.zukaiftea.com.pk/
(web under construction)
 IDEA GENERATION

How we become smart????

• NEED RECOGNIZATION
• People are now a days very much
conscious about there fitness. They have
no time so they can't do heavy exercises
in GYM.
• So Much Effort Requires To Reduce
Weight.
• Other Sources Are Money And Time
Consuming.
 Herbal Diet
Tea

• Herbal tea can be made with fresh or dried

flowers, leaves, seeds or roots, generally by
pouring boiling water over the plant parts and
letting them steep for a few minutes. Seeds and
roots can also be boiled on a stove. The tisane is
then strained, sweetened if so desired, and
served.
• Lemon grass has an intriguing, lemony perfume
without the bite that lemons can add to a dish.
• The taste is refreshing and light with a hint of
ginger.
 Vision
“To be the no. 1 in the industry of Diet Tea by
fulfilling the promises towards our customers
and to maximize our profits at ultimate level by
producing large number of units”

Mission
“Our mission is to satisfy our customers by
fulfilling there expected need of losing weight,
maintain body physic and change in the taste
of Tea.”
 PRODUCTION

 Lemon Grass
Lemon grass and other herbals was primarily
grown in India, Indonesia, and South East Asia.
We are growing lemon gross near areas of
Peshawar.
 Other Herbals:
• Other herbals which are used in small
quantities and normal price will be imported
from Thailand.
• Platy codon
• Herba houttuyniae
• Peppermint
 Raw
Material

Lemon Platy Herba Pepper

Grass Codon Houttuyni mint
ae
 Segmenta
tion

Lower
Segment
20% of the total
Middle market
Segment
Upper 50% of the total
Segment
market
30% of the total
market
 Geographic Segmentation

Region:
Islamabad
Rawalpindi
Density: RAWALPIN
Urban DI
Climate:
Moderate
TARGETING

For Every Customer

For Overweight People

For Fitness Conscious

People Who Want Change In Taste

For Diabetic Patient

 POSITIONING

Look smart in a very

short time without any
side affect.

“Welcome in the new world of Tea”

 Marketing Mix
Strategies

o Product
o Price
o Placement
o Promotion
o People
o Packaging
o Process
 Product:

 Brand name: HERBAL DIET TEA

 Quality:
 Design:
 Packaging:
(Detailed discussion in packaging)
 Features:
 No side effect
 Natural flavor
 Lemony perfume
 Refreshing and delicious taste

 Sizes
 1 KG
 500 gram
 250 gram
 Sachet
Product Life Cycle

Year Kg Sales
2009 3333
2010 25000
2011 32500
2012 43475
2013 61425
 Pricing

1 500 250 Sach

Particular Kg gra gra et
Listed Price 220 m
130 m70 (20)
150
Trade Price 198 117 63 138
Distributor Price 158 94 50 113
Transportation Cost 151 90 48 108
Packaging 136 82 41 100
CGM 90 65 30 75
Allowances are provided on bulk purchase
Payment period is 15-20 days by the distributor i.e. 3/10
net 20
Seasonal price: no variation
ZUKAIF HERBAL TEA COMPANY LTD.
FIVE YEARS STRATEGIC PLAN
  2008-09 2009-10 2010-11 2011-12 2012-13

           

Quantity to be sold 3,333 25,000 32,500 43,875 61,425

Price per Kg. 220 250 275 300 330
Cost per Kg. 70 100 130 155 180
           
Sales Income 733,333 6,250,000 8,937,500 13,162,500 20,270,250
Cost of sales 233,333 2,500,000 4,225,000 6,800,625 11,056,500
Gross Margin 500,000 3,750,000 4,712,500 6,361,875 9,213,750
           

Fixed Costs Including

Depreciation 190,000 250,000 330,000 380,000 450,000
Operating Profit 310,000 3,500,000 4,382,500 5,981,875 8,763,750
Finance Cost-@22% 216,449 250,000 330,000 425,000 600,000
Pre Tax Profit 93,551 3,250,000 4,052,500 5,556,875 8,163,750
Tax@ 35% 32,743 1,137,500 1,418,375 1,944,906 2,857,313
Net Profit after Tax 60,808 2,112,500 2,634,125 3,611,969 5,306,438
ZUKAIF HERBAL TEA COMPANY LTD.
Initial Balance sheet
ASSETS       Liabilities and Owner's Equity
  Rs. Rs.    Rs. 
Cash & Bank 473,000  Debt   40% 983,860 
Inventory   1,000,000  Equity 60% 1,475,790 
Total Current
Assets   1,473,000       
Fixed Assets:            
Machinery 700,000         
Less: Depreciation 70,000 630,000       
Furniture and 
Fixtures  70,000         
Less: Depreciation 10,500 59,500       
Vehicles    700,000         
Less: Depreciation 70,000 630,000       
Office Equipment 112,500         
Less: Depreciation 22,500 90,000       
               
               
Total Fixed Assets   1,409,500       
Working Capital   422850       
Total 2,459,650 2,459,650 
 Promoti
on
Push
strategy: 65%

Pull strategy:
35%
Promotion

Sales
promotion

• Distributor
motivation(≈20%)
• Retailer motivation (≈10%)
• Sales representative
Advertiseme
nt
• Adds on local cable TV
because it is launched
only in Islamabad and
Rawalpindi now
• Bill boards
• Posters and Leaf lets
• Local news papers
• Magazines
• FM Radio
• Gym clubs/ health
centers
Public relation

• Seminars, factory tours, street

activities and funfairs
Sale Force

• Different
Direct incentives to boost up the
Marketing
sales

• Some extent
 Competitors:
Direct
competition:
– Fasten Diet Tea (UK based)

Indirect
Competition
– Tea Companies
• Brooke Bond supreme
• Lipton (31% market share)
• Tapal
– Weight reducers belts
• E.g. Sona belt and many other brands
– Weight reducing medicines
PLACEMENT

Channel of
Distribution

– Institutional
• Marriot, Sarina, PC, Café & Hostels etc
– General
• Factory to Distributor (2 distributors; 1
for each city)
• Distributor to retailer
• Retailer to consumer
– Direct selling: selling at door step
PLACEMENT

• Market Coverage:
• Rawalpindi Zone
– 8000 shops
• Islamabad Zone
– 5000 shops

• Inventory
• FIFO method
• Transportation
• 2 Shahzore trucks
 PEOPLE

Employees
Strength:
– Factory 50
– Sales force 10
 Packagin
g
Quality:
– Standard Quality

Design:
– Beautiful, Attractive, Colorful
 Packagin
g
Information:
– Address, about ingredients,
health care, expiry date, toll free
number
Attractivenes
s:
– Green, yellow, and
red colors are used
Plucki Tea Tea Tea Colori
ng wither Rollin Drying ng
Tea ing g
Fan
 Up
Coming

l I c ed
Herba
Tea

Coming soon………