1

IN THE NAME OF ALLAH, THE MOST BENEFICENT AND THE MOST MERCIFUL.

DEDICATION

This report is dedicated to our Parents. For their love, support and help for us.
Their prayers are a source of determination for us.
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Acknowledgement

We are very grateful to Almighty Allah, the compassionate and merciful,

who knows about whatever is in the universe and beyond it, hidden or evident
and has enabled us to elucidate a drop from the existing ocean of knowledge.
All praises to be the Holy Prophet Muhammad (Peace Be upon Him), a
star brightening the path of faith and knowledge, Luminary to the truth and
justice.
We are also thankful to the Department of Business Administration of our
University(CIIT) for their full support in making this project a huge success. Our
thanks also go to the teachers who helped us and we have forgotten to mention
their names. We are also gratified to all our friends for their guidance and
encouragement.
3

INTRODUCTION OF SWEETENER INDUSTRY AND STEVIA

Sweeteners markets have evolved rapidly, since the 80‟s, with global shifts in
consumer preferences for better and safer sugar alternatives. In the 80‟s the
major markets for alternative sweeteners was in foods and beverages for
diabetics. According to a Freedonia report, it was in 1960, with demand of health
conscious consumers the market for alternative sweeteners emerged. People
started to care about their health and started to look for different things that could
give healthier life to them.
stevia, a native of Paraguay is fast becoming a major source of high potency bio-
sweetener. It is a hypocaloric bio-sweetener known for its therapeutic properties,
in the treatment of cough, joint pains, blood pressure, diabetic, weight
management and skin rejuvenation etc.
The Japanese were the first to use Stevia as a table-top sweetener. In the 90‟s
Japanese food products sweetened with Stevia accounted for about 41 percent
of sweetened foods made in the country. Due to increased awareness towards
use of herbal and traditionally accepted medicinal plants, a steady Stevia market
is emerging.
The sweetness in Stevia is mainly attributed to two compounds viz. Stevioside
and Rebaudioside A which can be up to 250 times sweeter than sucrose.
Stevia is normally used as fresh Stevia leaves, dried leaves, extract and liquid
concentrates. In the 70‟s and 80‟s, Stevia developed as a sweetener and flavor
enhancer in Japan, China, Korea, Israel, Brazil and Paraguay . Some of the
emerging areas where Stevia and Stevia herb extracts are used periodically are
toothpaste, mouthwashes, skincare, food, controlling human disorders, and as a
bacterial agent. Sweetener markets have been through enormous transitions in
recent times, with a slew of sugar alternatives emerging on the scene. Post 90s,
the global diabetic population particularly in Asia has been exploding
exponentially. This has led to a rapid growth in markets for a natural, low calorie
sweetener. With research indicating harmful impact of products such as
Asparatame there was need to develop an alternate product.

1. CURRENT ENVIRONMENT( MACROENVIRONMENT)

4

o Economy

Whole world is facing the recession scenario and everyone is passing through
critical time of unemployment and devaluation of money so its very difficult for
people in Pakistan to choose most expensive products until and unless they don‟t
find any value added services or benefits over the cost with them. Economic
condition matters a lot for stevia marketing while making marketing plan in long
as well as in short run to place stevia in the memory of customers so they could
recognize and recall brand at any time. To deal with poor economic condition
stevia need very strong marketing backup as it cant lower the price due to its
production cost and its availability.

o Legal

The Stevia boom which spread to USA caught the attention of the U.S. Food and
Drug Administration, which in 1987, issued a ban on its use because it had not
been approved as a food additive. In 1991, Stevia was deemed unsafe and was
banned from the USA completely. It was only legalised as a dietary supplement
due to the changing of laws. Following lengthy debates, in 1995, the FDA issued
a statement allowing Stevia to be used as a dietary supplement.

Regulations related to the use of Stevia products have been evolving

continuously over the last few years. A brief on regulatory evolution is
tabulated below.
Year Status
2004
JECFA Provisional Standard stipulated that glycosides
content shall be no less than 95% (after drying).
Stevioside and Rebaudioside A together shall account for no
less than 70% of the total amount of steviol glycosides.

2007 Specified that Steviol glycosides content shall be no less than

95% of the total weight (after drying).It did not specify the
content of Rebaudioside A.Methanol residue shall be no
more than 200mg/kg.

2008
Ethanol residue shall be no more than 5000mg/kg.

2009
FDA stipulated that Rebaudioside A and Stevioside shall be
declared separately as food additives
5

Source: The Food Science and Technology Centre of Jinan, University, Guangzhou, PRC at
CMT’S Stevia World Summit in China, 2009

Sweeteners market, and in particular Stevia market, has seen intense activities
through 2009. This followed FDA‟s letter of no objection to GRAS, in December
2008, allowing the use of Reb A, known as Rebaudioside A or Rebiana, of 95%
purity and above in food and beverages. Due to increased awareness towards
use of herbal and traditionally accepted medicinal plants, a steady Stevia market
is emerging. In Pakistan stevia

o Government

Government allowed scientists of National Agricultural Research Centre

(NARC), Islamabad - the premier research establishment of PARC to do
research on Stevia(plant) which shows that government is paying attention
towards the advantages of stevia as a sweetener. . In 2003, it was sown for the
first time in Pakistan at different climatic sites including shade, semi-shade and
full sunlight for testing its viability in the local environment. Its germination has
been recorded very well at NARC, Islamabad and now the plants are under
observation with respect to acclimatisation. These plants have attained a height
of one foot and are expected to bloom this year. When these plants attain the
height of one meter, the experiment will be considered as successful according
to the climatic conditions of Pakistan.

After their successful acclimatisation, the plant will be sent to different units of the
Horticulture Research Institute of NARC situated at different locations i.e. Sariab
(Quetta), Tandojam (Sindh), Tarnab (NWFP) and Faisalabad (Punjab) for
Uniform Yield Trials and other relevant studies on its various biological effects.

o Technology

With evolving technologies and improved Steviol glycosides production

processes, there have been increasingly higher requirements on product quality.
6

CURRENT SITUATION (MARKET ANALYSIS)

o Market definition

Sweeteners markets have evolved rapidly, since the 80‟s, with global shifts in
consumer preferences for better and safer sugar alternatives. In the 80‟s the
major markets for alternative sweeteners was in foods and beverages for
diabetics. “Stevia Rebaudiana” or “sweet leaf” or stevia, a native of Paraguay is
fast becoming a major source of high potency bio-sweetener. It is a hypocaloric
bio-sweetener known for its therapeutic properties, in the treatment of cough,
joint pains, blood pressure, diabetic, weight management and skin rejuvenation
etc. Due to increased awareness towards use of herbal and traditionally
accepted medicinal plants, a steady Stevia market is emerging. Currently in
market stevia as a sweetener is facing intense competition because there as
many competitors of stevia in market and they are offering far better prices then
7

stevia and stevia have to make its place in market by new positioning that it is
natural and it has no side effects as other products of competitors are though
cheaper but have a lot of side effects. Splenda a major competitor of stevia is
not natural; it is a chlorinated artificial sweetener. There have been no long-term
human studies on the safety of Splenda; however, issues have been raised
about Splenda in a new study from Duke University. According to the study,
Splenda “suppresses beneficial bacteria and directly affects the expression of the
transporter P-gp and cytochrome P-450 isozymes that are known to interfere with
the bioavailability of drugs and nutrients. Further more other competitors like
Canderal. Sucral, medium are though cheaper but have side effects too and are
not safe for health.

o Market size

It‟s stevia‟s year. All-natural and calorie-free, stevia is poised to become the „holy
grail‟ of sweeteners, Since December 2008, when the FDA approved use of
rebaudioside A (an active ingredient of stevia) in Pakistan Stevia can be seen in
different stores but right now in limited quantity. People are moving towards
adapting the trend of caring about their health more consciously as compared to
previous years.

We can forecast the sales of stevia to grow in near future by looking

 The trends in the market that shows people awareness about their
health and more care about the health of their kids.
 Different researches already done or in progress about the
sweeteners available in the market and their side effects
 Exposure of people towards the side effects.

The FDA‟s approval of stevia in food and drink opened the door for this market‟s
explosion, New product activity has accelerated in recent years, and since most
categories with stevia applications remain untapped, we expect many more
stevia-infused product introductions in the next few years.

o Market segmentation
8

PSYCHOGRAPHIC SEGMENTATION

Psychographic segmentation includes segmentation on the basis of personality,

lifestyle, value and attitude of people in the market. Stevia needs to do
psychographic segmentation because of product positioning and category.
Whole sweeteners have a biggest substitute i-e Sugar and sweeteners exist in
the market by positioning themselves as a healthy substitute of sugar. People
who are more conscious about their health or are suffering with any diseases,
have purchasing power and have an ability to adapt new change in taste lie in
this particular segment. Stevia needs to be positioned in the way that should
match with the lifestyle and attitude of the target market otherwise people would
move towards other competitors in the market.

DEMOGRAPHIC SEGMENTATION

Stevia can do segmentation on the basis of demographics by dividing market into

different sub categories including age, gender and education.

AGE

Stevia is made from natural herbs and there is no artificial ingredients added in it
that is its competitive advantage too and this factor make it different from other
competitors. Being 100% natural this product has no side effects and is suitable

for people of all ages. Stevia‟s positioning is done by promoting two important
things

 FOR KIDS

“Precautions is better then cure”. Stevia should be part of your diet from
younger age so you would be protected from many diseases from which
many older people are suffering.

 FOR MIDDLE AGE

Whether you are suffering from any disease or not its suitable for you to live
heather for your whole life.
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 FOR OLD PEOPLE

Stevia is the best natural herbal product for old people whether they are
suffering from any disease or not. Usage of this product would add healthier
years in their life.

GENDER

 MALE

Stevia is suitable for male because it is a healthier product. People who go to

gym , work in office, eat fastly due to time factor, or are conscious about their
health should use stevia and this is our target market too.

 FEMALE

Females are always found more conscious about their health. Females can
use stevia without any hesitation because it is 100% natural. Even stevia is
safe for pregnant women.

EDUCATION

Although stevia is for both educated and uneducated people but people who are
well educated have the ability to adapt new things more easily as compared to
uneducated people and are much more aware about their health. Educated
people would be targeted at first who will some how act as an ambassador of
stevia. School colleges, universities, offices would be the other way to attract
people.

INCOME

As stevia is bit expensive then other competitors so its target class is high
income people who have the purchasing power, intentions and are conscious
about their health.

BEHAVIORAL SEGMENTATION

Stevia‟s segmentation would be done by looking at the profitability and income

status of the people in market.

GEOGRAPHIC SEGMENTATION
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Stevia is needed to be present in almost all the stores who are licensed and have
a rush of people specially in the areas where people of higher income, people
who are fond of healthier life like to go for shopping. As we would do intense
advertisement to create awareness so we have a plan to place the product
equally. Survey through observation state that competitors products are available
almost at every store to compete with them stevia should be placed equally.

 COMPETITION AND MARKET SHARE

Currently stevia is facing intense competition in market. Major factor that is

creating hurdle for stevia to success is Price, less promotion and distribution
channels. The survey shows that people are not buying stevia because most of
them have not heard about it before and are not aware of its presence. Second is
due to price and who buy it next time when they go to purchase it they don‟t find
it. All factors are collective reasons for decline in sales.

CANDERAL

Canderel is a brand of artificial sweetener made mainly from aspartame,

Canderel is marketed by The Merisant Company a global corporation with
headquarters in Chicago, Ilionis, also Switzerland, mexico and Australia.
Canderel was first marketed in France in 1979. The name Canderel is a
combination of candi and Airelles- the French word for bilberries.

1. CANDEREL's main sweetening ingredient is digested by the body just

like other everyday foods.
2. You can manage your weight with CANDEREL.
11

3. CANDEREL can be used for cooking and baking

4. CANDEREL is suitable for diabetics.
5. CANDEREL is suitable for children
6. pregnant women can use CANDEREL
7. Nursing mothers can use CANDEREL.
8. CANDEREL is Kosher, GMO-free, suitable for vegetarians and
people with gluten intolerance.

BRAND QUANTITY PRICE

Canderal powder 80g 230
Tabs 200 140
100 80

SUCRAL

Sucral is the Substitute of sugar. It came in market within last five years. With its
ability to offer multiple usage, be it for beverages, cooking or baking, it is the
most suitable sweetener to replace sugar, unlike any other artificial sweeteners
available in the market.
Sucral is an exciting news for everyone, including people with diabetes as well.
As now you can enjoy the sweet taste of foods and beverages, without all the
calories and carbohydrates of Sugar.
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BRAND QUANTITY PRICE

Sucral powder 84g 230
Tabs 200 125
Sachet 50 145

SPLENDA

SPLENDA® No Calorie Sweetener contains sucralose (SPLENDA® Brand

Sweetener), the no calorie sweetener with no unpleasant aftertaste. SPLENDA®
No Calorie Sweetener can be used virtually anywhere sugar is used. It can also
be used in cooking and baking in a variety of recipes. Like many no and low
calorie sweeteners, each serving of SPLENDA® No Calorie Sweetener contains
a very small amount of common food ingredients, e.g., dextrose and/or
maltodextrin, for volume. Because the amount of these ingredients is so small,
SPLENDA® No Calorie Sweetener still has an insignificant calorie value per
serving and meets FDA's standards for "no calorie" sweeteners.

SPLENDA® No Calorie Sweetener comes in two forms for consumers,

granulated and packet. The granulated form of SPLENDA® No Calorie
Sweetener measures and pours just like sugar. SPLENDA® Packets provide a
convenient way to add sweetness without guilt!

Sucralose (or SPLENDA® Brand Sweetener), the high intensity sweetener used
in the SPLENDA® Products is not natural. It is a no calorie sweetener that is
made from a process that starts with sugar. Although sucralose has a structure
like sugar and a sugar-like taste, it is not natural. The advertising and packaging
for SPLENDA® Products do not represent the product as “natural.” Sucralose,
13

the no-calorie sweetening ingredient in SPLENDA® No Calorie Sweetener, is

about 600 times sweeter than sugar. Like other tabletop sweeteners, the
granulated and packet products contain small amounts of carbohydrate (less
than 1 gram per serving) for consistent sweetening and to provide volume. These
bulking ingredients are dextrose (packets) and maltodextrin (packets and
granulated). However, the bulking agents provide so few calories per serving that
the FDA allows the SPLENDA® No Calorie Sweetener Products to be called no-
calorie sweeteners, because they provide less than five calories per serving.

BRAND QUANTITY PRICE

Splenda powder 84g 560
Tabs 300 575
Sachet 100 55o
50 330
200 1075

MARKET SHARE
COMPANIES MARKET SHARE
Stevia Stevia after FDI approval came in
market but due to lack of promotional
strategies, High prices, Lack of
Awareness and Poor distribution
channels it is not able to capture a lot
of market share. It carries only 6% of
total share.
Sucral Sucral is the brand launched as a
sugar substitute in Pakistan by Father
& Sons Company. Sucral has entered
a saturated market where it is
surrounded by many competitors, both
local and international. It carries 17% of
total share.
Canderal Canderal is the most selling brand in
sweetener industry. It is comparatively
cheaper with much stronger marketing
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strategies. Canderal carries 58% of

total share.
Splenda Splenda is the major competitor of
Stevia. Similar to stevia it is offering
higher prices with quite similar benefits
but due to good distribution strategies it
is available in market. Splenda carries
19% of total share.

6%
19%
17%
stevia
sucral
canderal
splenda

58%

SWOT of COMPETITORS

STERNGTH  The major strength of

competitors of Stevia is there
date of presence in the market.
FDI has given all companies
license to operate and sell there
product in market since long
time and stevia was banned by
FDI for long time.

 Second major strength of

competitors is there product
availability in the market. Most of
the products are not particularly
targeted to any shop and are
available to all rush stores.

 Products of other companies are

properly marketed and
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awareness is created by looking

at the attitude and buying
patterns of people.

 Price of competitor‟s product is

very reasonable which they are
able to do by reducing the
quality as they are artificial
sweeteners which leads to
increase in sales and ultimately
increase in market share.

WEAKNESS
 Products are not Natural.

 products have Side effects

 Harmful for users.

 Researches done on the harmful

effects of products by scientists.

OPPORTUNITIES
 Due to major downfall in
economy people have got much
more sensitive about price of
goods and will not get ready
more easily for purchasing the
expensive products.

 Media is a major tool to attract

more people so competitors can
equally use media for attracting
people.

 Different tactics are now

available to confuse people.

 Customer Relationship
management is now a major tool
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to be closer to customers and

offer other value based services
without concentration on
product.

THREAT
 FDI has given approval to other
firms to enter in sweetener
industry.

 Media can be contacted by other

firms in the same industry.

 Lack of awareness about

sweetener industry.

 Availability of natural
sweeteners in the market.

 Downfall of economy increases

the issue of price sensitivity.

 Research by scientists about the

side effects of sweeteners.
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o Market trends
Trends are now changing. People are getting more conscious about their health
and more then 90% of population is suffering from diabetes that‟s why more and
more people are looking towards the substitute of sugar that could provide them

with good health and save them from further increase in diabetes disease.
Market trends toward sweetener industry over the year are increasing.

40
35
30
25
20
15
10
5
0
1999 2002 2005 2009

2. Current Situation - Consumer Analysis

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o Nature of the buying decision

The consumer passes through five stages

 Problem Recognition

The buying process starts when the buyer recognizes a problem or need of
substitute of sugar. When a person is suffering from diabetes or is getting
more conscious about his/her health then he / she would face such problems.
Marketer needs to recognize the circumstances that trigger buyer towards
that thing. Marketing strategies then can be formed to motivate buyers to give
serious consideration towards the product. Marketing of stevia should be such
strong that buyer whenever would face such problem he/she find only stevia
in mind.

 Information Search

Buyer before purchasing the product gets information about the product
available. Buyer some times simply becomes more receptive to information
about a product and at next level buyer would go towards phoning a friend,
material search , going online, and visiting stores. Marketers of stevia needs
to focus on all the sources that influence buyers decisions. It could be
Personal, Commercial, Public, Experiential. Now in the technological
advancement internet is the major source of information so stevia should be
properly advertised on internet with proper target market.

 Evaluation of Alternatives

At this step consumer make decision that is mostly found as conscious and
rational. First consumer try to fulfill its basic needs second consumer would
see the added benefits with the product solution, Third consumer would see
the bundle of attributes with varying abilities. Marketing strategies of stevia

should be focused towards the core competency as well as there should be

complete consideration towards the added benefits with product. Added
benefits may include discounts, buy one get 10% discounts on second

purchase, buy stevia and get discount on any other diabetic medicine etc
ultimate goal is to stop consumer to use other sweeteners in the market that
has side effects too.
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 Purchase decision

A t this stage consumer have already set a preferred brand and ultimately
deal with other factors at this stage including Brand, dealer, quantity, timing
and payment method. At this stage stevia needs to make its distribution
channel more reliable and authentic to make product available in market for
consumer.

 Post purchase Behavior

Marketers need to get a complete follow-up to get more accurate result

second time. At the beginning when stevia is not much popular among people
and sdont know what consumers feel about the product after using stevia
needs to get back to back feed back from consumer. Recent study suggest
that stevia need to focus on price issue and after taste because either
consumer don‟t buy product due to higher prices or don‟t purchase it after
using one time.

o Participants

Stevia is suitable for all people which includes Children , young, middle age
and older people. Stevia is natural product that‟s why it has no side effects
and it would provide no harm to anyone who use this product.

o Buyer Motivation and Expectations

Buyers are motivated towards product with conscious and unconscious

factors. Unconsciously buyer react to the shape, size, brand name, material
and color of the product. Marketing strategies are formulated by following the

conscious and unconscious factors that motivate buyer. Stevia is available in

form of powder, tablets, liquid in the market.
When the basic needs of buyers would be fulfilled then he/she would move
toward the safety need that is the next step defined in Maslow‟s hierarchy of

need. Being on second step it is impossible for buyer to compromise on

safety issues and it is a positive indication for marketer to promote and sale
the product.
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The trend is changing buyers are getting more conscious about their health
and the patients are trying to get a product that could provide them
satisfaction of betterment of their health. Stevia is expensive because it has
no side effects and it is 100% natural product. By looking at this people
would associate more expectations from stevia as compared to other
sweeteners available in the market. People when would pay more price they
would ask or expect more advantages or benefits from the product because
they are paying more for it other wise they would prefer other sweeteners in
the market if stevia would give lesser or even equal advantage as other
sweeteners in the market are giving.

o loyalty segments

Marketing strategy of stevia is formulated on the basis of their Hard-core loyal,

split loyal, shifting loyal and switchers by studying all company is able to analyze
its strength, competitors and mistakes did in past. The most important asset of
company is its loyal customers and for them company is starting loyalty programs
and training their own sales force to guide buyers about their health issues for
life.

CURRENT SITUATION (INTERNAL)

o Company Resources

 Financial

According to Global Industry Analysis, Artificial Sweeteners, July 2007 report, out
of the total sweeteners market of around USD 47.5 bn in 2007-08, Stevia
markets accounted for USD 5.5 bn and a likely USD 8.2 bn by 2015. Beverages
21

are expected to spur Stevia growth while other products like yoghurt,
confectionery and gums are all set to make an impact.
Stevia product development and launches have seen several partnerships such
as Pepsico-Merisant and Coke-Cargill alliances. Pepsico-Merisant and Coke-
Cargill were the first to get the FDA approval.
Pepsico was the first to launch the stevia products internationally and in the US.
It launched Sobe Life water both internationally and in the US. It also launched
Tropicana 50, a reduced calorie orange juice in the US. Coca Cola company
launched Sprite green and Odwalla drinks.
All the products of stevia are available in market with the partnership of other
companies. As manufacturers worldwide start incorporating this new ingredient
into their products, the need to assure users of the quality and consistency and
purity will be critical. The quality standard is expected to help in this venture.

 People
companies who are marketing Stevia extracts :

• PureCircle announced contract extensions with Cargill and major new contracts
with PepsiCo and Whole Earth Sweetener Company for the supply of high-purity
Reb A in beverages, foods and tabletop sweeteners worldwide. PureCircle has a
license agreement giving it the right to sell high-purity Reb A under the PureVia™
brand in categories and customers to be determined PureVia is being sold in US
markets.

• Pyure Brands LLC, Naples, Fla., is producing 97 percent reb-A under its own
Pyure brand for tabletop use, but wants to specialize as a private-label supplier
for grocery stores, as well as being in talks with some commercial customers.

• Wisdom Natural Brands has been producing a stevia tabletop sweetener under
the SweetLeaf brand. SweetLeaf Sweetener obtained self affirmed GRAS status
in Mar ‟08 as determined by two independent groups of former FDA professional
scientists.

• GLG Life Tech, also made a GRAS self-affirmation the day after the FDA non
objection. Its 97 percent reb-A is called Rebpure. GLG is a supplier to Cargill.

 Time

The Japanese were the first to use Stevia as a table-top sweetener. In the
90‟s Japanese food products sweetened with Stevia accounted for about 41
percent of sweetened foods made in the country. The Stevia boom which
spread to USA caught the attention of the U.S. Food and Drug Administration,
22

which in 1987, issued a ban on its use because it had not been approved as a
food additive. In 1995, the FDA issued a statement allowing Stevia to be used
as a dietary supplement. Stevia got banned for almost 8 years over the years
sweeteners came in market and made there position now it‟s a time for stevia
to work and prove itself. Stevia came in market with distinctive capabilities
which other sweeteners are not providing and that give competitive edge to
stevia. Awareness towards healthy life, Harmful effects of sweeteners and
different prescriptions on usage of sweeteners is increasing.

 skills

GLG Life Tech Corporation is a global leader in the supply of high purity stevia,
an all natural, zero-calorie sweetener used in food and beverages. The
Company‟s operations cover each step in the stevia supply chain including non-
GMO stevia seed breeding, natural propagation, stevia leaf growth and harvest,
proprietary extraction and refining, marketing and distribution of finished
product. GLG advanced technology and extraction technique make it one of the
world‟s leading producers of high purity stevia extracts, including rebiana made
with 97% Rebaudioside. In addition, the Company‟s global sales and marketing
arm, GLG-Weider Sweet Naturals, works with companies around the world to

bring stevia extract supply solutions for food, beverage, pharmaceutical and
nutraceutical applications.

With evolving technologies and improved Steviol glycosides production

processes, there have been increasingly higher requirements on product quality.
Sales force need to be properly trained to make marketing plan stronger.

o Objectives

VISION
A Leader in providing natural products necessary to attain highest level of
HEALTH throughout life.

MISSION
The mission is to serve the nation by providing natural, harmless and healthy
products.
23

Marketing objectives

Marketing objectives are

 To create awareness
 Increase sales
 Create loyalty
 Maintain long term relationships
 Create brand equity
 Increase customer retention
 Bridge between manufacturer and customer

3. SITUATION ANALYSIS (SWOT)

Internal Factors Strengths Weaknesses

Management Experienced, broad base Large size may lead to

of interests and conflicting interests.
knowledge Marketing employees
and sales force is not
aware of marketing the
product globally.

Product Line Differentiated, Variation So much product lines

in products but still not able to knock
out other sweeteners.
24

Marketing Marketing by promoting Segmentation,

usp i-e100% natural with promotion, distribution,
no side effects. pricing, aftertaste,
technological
advancement and CRM
are not properly
integrated

Personnel Very experienced, high Not aware of marketing

knowledge the product globally.

Finance Higher price, large capital High production cost

base. leads to higher prices
and less sales revenue.
Research & Stevia is currently being Researches are done but
Development combined in blends, with still no change came in
research and product taste,
development exploring technology, market
different flavor systems. analysis and knowledge
Branding has also proven gaps.
to be very effective in
promoting new
sweeteners
External Factors Opportunities Threats

Consumer/Social Increase in awareness Less awareness about

towards health the side effects of
consciousness and 90% sweeteners available in
population is suffering market.
with diabetes
Competitive It is 100% natural with noLess awareness and
side effects and suitable higher price would affect
for all. the sales and growth.
There is a chance of
another competitor in
market with natural
ingredients.
Technological Maintenance of proper Optimal utilization of
website which subscribes technology is still
and provides information required because
regarding long production competitors could get
25

line. competitive advantage by

Economic Consumer income is high
for the Stevia class.
using more advance
technology.
By looking at the current
economic downfall
people have got more
sensitive about prices
and want bundle of
benefits within the price
they are paying for
product.

Sustainable Competitive Advantage

Sweeteners market, and in particular Stevia market, has seen intense

activities through 2009.

The stevia landscape is fast changing as new product launches face pressure
on the regulatory and consumer fronts. As a low calorie, natural, non-
carcinogenic intense sweetener, Stevia has great potential to capture markets
from competing alternative sweeteners and to replace some markets for
starch syrups when blended with sugar or other bulking agents.

Stevia has been used with success to treat many ailments including diabetes,
high blood pressure, gingivitis, digestion ailments, and addictions, topically for
acne and other skin ailments and also as a wonderful weight loss aid. Stevia
provides several advantages over sugar and artificial sweeteners when used
in food production, lower costs for transportation, storage/warehousing and
handling charges. In 2006, the World Health Organization evaluated Stevia
and found no evidence of carcinogenicty in Stevioside and Rebaudioside A. It
also reported that Stevioside led to beneficial effects in patients with
hypertension or with type-2 diabetes. The report concluded that further study
was needed to determine proper dosage.
26

4. MARKETING RESEARCH

o Information Requirements

Information was required to implement marketing plan strongly in Pakistan by

doing complete research on the behavior, nature of buying decision, economic
condition, consumer concerns, sourcing preferences, market drivers, technology,
segments interested in buying, distribution channels and market trends. All the
information played a major role in analyzing the importance of each step and its
proper way of implementation.

o Research Methodology

For research we collected primary data and secondary data. In primary data
collection we used a technique of Observational research. We observed
consumers as they shop and consumed sweeteners in the whole time we were
active in research. This type of research helped us to analyze consumer
behavior, nature of buying decision, consumer preferences, and attitudes. In
secondary data collection we used internet and books, and other reading
material on sweetener industry.
27

o Research Results

Most respondents had mixed feelings on key issues outlined in information

requirement; however, there was an overall positive feeling about market growth.
In the sweetener industry, creating awareness is key to consumer acceptance,
which is why it comes as no surprise to see respondents indicate that they don‟t
know about a brand named as stivia in market. Many respondents also believe
that this concern can emerge as a number one limiting factor for Stevia‟s market
growth in the future.
Respondents also identified regulations as a key concern, indicating that the
regulatory stance on Stevia sweeteners is a knowledge gap. Supply reliability

was the 3rd most popular concern, and is a reflection of demand for stevia
sweeteners overtaking current supply.
Research findings highlight, the future of this industry is dependent on greater
access to information on cultivation, production, flavor-enhancements,
regulations, supply chain, marketing and socio-economic issues. Constantly
monitoring trends in the industry will provide critical information needed for
business and public policy decision-making.

10%
30%
Supply reliability
Regulations
Promotion
40%
price

20%

Research also indicate that currently to execute the marketing plan more
efficiently company needs to get more market information time to time more then
information of technology, economics and Agronomy to get aware about the
changes, strength ad opportunities of competitors and regulation amendments.
28

11%

17% Market
46% Technology
Economics
Agronomy

26%

MARKETING STRATEGIES

PRODUCT
Stevia Biovista Pvt. Ltd. has carved out a niche by providing Stevia - Zero Calorie
all natural sweeteners through its innovative range of products, powered with a
customer centric vision and an eye for quality. Today, company offers diverse
range of Zero Calorie Natural Sweetener products based on “Stevia Natural
Herb” for consumer as well as for food and beverages industry. The company is
committed to providing products and services at par with international standards.
Stevia helps control blood sugar, high blood pressure, digestive ailments and is a
healthy weight loss aid. Stevialife consumer products are available in powder,
tablets and liquid form. Stevialife is 300 times sweeter then sugar at the same
time it is a Zero Calorie Diet.
For food industry Uses for Stevialife Concentrate Products and Extracts
Steviosides and Rebaodioside white concentrate powder of different
percentages.
Stevia Extracts are used in Soft drinks, cordials, fruit juices , Ice creams, yogurts,
sherbets , Pastries, pies, baking , Jams, sauces, pickles, Jellies, desserts,
Chewing gum ,Candies, confectioneries , Sea-foods, vegetables, Weight-watcher
diets, Diabetic diets, Flavor, color and odor enhancers , A source of antioxidants ,
Alcoholic beverage enhancer (aging agent and catalyst).
Stevia (Stevia rebaudiana) is a wonderful dietary supplement used for over 1500
years as a sweetener and for medicinal purposes. Since the 1970's, stevia has
been used in Japan as the main alternative to sugar, used instead of the banned
aspartame in diet soda, gum and other food and beverages. Stevia is also being
used as a sweetener in other countries after extensive studies proved its safety.
29

Stevia has been used with success to treat many ailments including diabetes,
high blood pressure, gingivitis, digestion ailments, and addictions, topically for
acne and other skin ailments and also as a wonderful weight loss aid. Safe for
diabetics as it does not raise blood sugar!

 PRODUCT LINE

Liquid Stevia

SweetLeaf Liquid stevia with all natural flavors is convenient and easy to use. At
only pennies per drop, you can easily dress up water, coffee, tea, yogurt,
cocktails, whip cream, smoothies, ice cubes, and nearly anything else you can
dream up. A great replacement for sodas and soft drinks for your kids (and
adults)!

FLAVORS IN LIQUID

 Apricot Nectar
 Chocolate Raspberry
 Cinnamon - New!
 Chocolate - New!
 English Toffee
 Grape - New!
 Lemon
30

 Peppermint - New!
 Root Beer - New!
 Valencia Orange
 Vanilla Creme

Stevia Tabs

SteviaTabsTM Stevia extract will dissolve in hot or cold liquids, adding quality
nutrition with an intensely sweet flavor without sugar or artificial sweeteners. It's
calorie-free and safe for diabetics and hypoglycemics.

One SweetLeafTM SteviaTabTM Stevia extract tablet is as sweet as a teaspoon of

sugar.
31

Stevia Sachet

Stevia sachet has zero calories, carbs, zero glycemic index, zero chemicals.
Available in convenient packets or powder form.

SteviaClear ( Liquid Stevia )

32

All natural, no calories, no carbs, no bitter aftertaste, and endless uses.

SteviaClear brings pure Stevia extract to liquid form. With 1440 servings per
bottle, you‟re definitely getting your money‟s worth. Just two drops of SteviaClear
are as sweet as 1 teaspoon of sugar - yet has no calories, carbohydrates nor
bitter aftertaste.

Drop this pure Stevia extract into your hot or iced coffee or tea. You‟ll love getting
sweet without paying for it in calories or chemicals. Safe for diabetics, too.

 Convenient and economical to use

 Zero calories, zero carbs
 Absolutely no chemicals, alcohol, or glycerin
 Pure Stevia extract in water
 Safe for diabetics
 Can be used in cooking, baking, hot or cold beverages, and many more
uses

PRODUCT STENGTH AND WEAKNESS

STRENGTH WEAKNESS
 Stevia is 100% natural product  Ingredients used to produce stevia
are very rare that‟s why products of
stevia are expensive.

 It has NO side effects  Its aftertaste is not according to the

taste buds of Asians.

 It is suitable for all participants  Its not available in particular product

which include children, middle age, usage form.
older male and female.
33

PRODUCT LIFECYCLE MANAGEMENT

Products of stevia are in initial stage phase, even products are not marketed
rightly that‟s why people don‟t know about this brand too. Whole marketing
plan needs to be created and executed in proper manner to get maximum
sales and revenue.

Stevia lie on introduction stage

34

BRAND NAME, BRAND IMAGE AND BRAND EQUITY

BRAND

A brand is a name, term, sign, symbol or design or a combination of them,

intended to identify the goods or services of one seller or group of seller and to
differentiate them from those of competitors.

The brand that we have chosen for our project is Stevia.

BRAND ELEMENTS

BRAND NAME

Brand name is the central element of a brand and there are almost 6 ways to
name your brand, the type stevia is chosen to name the brand is suggestive
words that suggest any activity, benefit or function of product. “Stevia
Rebaudiana” or “sweet leaf” or stevia, normally used as fresh Stevia leaves,
dried leaves, extract and liquid concentrates.
35

The name of our brand is Stevia which is a suggestive name and has relevance
with the product ingredients; we have chosen this name because it is:

Easy to pronounce
Easy to remember
Easy to recall
Shows the herb used in production
Can be used in many countries

UNIFORM RESOURCE LOCATOR

In order to compete in market Stevia also have to operate on the internet and for
that purpose stevia have a detailed website which is
www.stevia.com
This website gives you detailed information about the brand, you can come to
know about different product line which includes stevia tabs, stevia sachet and
Stevia liquid available with many new and unique recipes to ad delight to your
cooking.

LOGOS AND SYMBOLS

Logo is most commonly known as the brand mark, if you go for a logotype then it
is a word mark. Logo is used to give the audience a visual cue and is used to
attract the customer so that it is easy for him to recall and recognize the brand.
36

The advantage of this word mark or logo is that it shows the herb used in
production of product which make it authentic and it is easy to recognize and
recall.

CHARACTER

A character is a brand symbol which can be any real life character a real
personality or an animated character.
In case of stevia we have chosen doctor as a person who convinces people that
this product is 100% natural and it has no side effects. As stevia was banned for
more then 5 years this might give perception that stevia is not suitable for their
health to avoid this comment we have chosen doctor to come in promotion of
stevia and explain that stevia is 100% natural and have no side effect.

SLOGANS

A slogan is a short descriptive or persuasive phrase which gives your brand

meaningfulness. The meaning that you want to give to your brand is given by
slogan.
The slogan of stevia is “All natural”
This slogan tells us how stevia is different from other sweeteners in market.
Stevia is 100% natural and has no side effects where as other sweeteners in
market have side effects and include artificial flavors.

JINGLE
We have not made a jingle of our product and according to our budget we have
made a n ad which tells that it is 100% natural and has no side effects. All
participants can use it without any risk.

PACKAGING

Packaging is the container or the wrapper of the product which are used for your
product.
37

Packaging of stevia had been done on international standards and we have used
special foil seal to protect the quality, medication and taste of product. Stevia is
available in bottles, small box with tabs and card box which contain sachet.

BCG MATRIX
38

Stevia lie at Question

mark stage.

Sweetener industry is growing with coming time people are getting more
conscious about their health and are more aware about the products that help
them to reduce deceases. Here at question mark stage the industry growth rate
is high and the market share of company is low. In this situation company needs
to adapt some strategies to take it at star stage.

STRATEGIES
When the product is at the introduction stage and still not able to get competitive
market share then company should go for market development, market
penetration, and product development.

MARKET DEVELOPMENT
39

Market development involves introducing present products or services into new

geographic areas. Stevia should go for market development because

 Its basic industry is becoming rapidly global in scope.

 New and untapped or unsaturated markets exist.
 New channels of distribution are available that are reliable, inexpensive
and of good quality.

PRODUCT DEVELOPMENT

Product development is a strategy that seeks increased sales by improving or

modifying present products and services. Stevia should go for product
development because

 Organization competes in an industry that is characterized by rapid

technological developments.
 Major competitor‟s product is of better aftertaste.
 Organization competes in a high growth industry.
 Organization has especially strong research and development capabilities.

The research suggests that stevia has some aftertaste problems that need to be
sorted out immediately. Research shows that taste development gap should be
covered to get increase in sales.

23%

36% Average
Moderately low gap
low gap
12% high gap
Moderately high gap
3%
26%

MARKET PENETRATION

A market penetration strategy seeks to increase market share for present

products or services in present market through greater marketing efforts. This
strategy is mostly used alone or with combination of other strategies. Marketing
strategy includes

 Increase in number of salesperson

40

 Increasing advertising expenditure

 Offering extensive sales promotion items
 Increasing publicity efforts.

Stevia should go for market penetration because

 Current market is still not saturated with other products.

 Usage rate or awareness of present customers could be increase
significantly
 Total market share of industry is increasing with time

CONCENTRIC DIVERSIFICATION

Adding new, but related products or services is widely called as concentric

diversification. Stevia can produce icing sugar for baking (cakes and donuts
etc) or can make special sugar powder to add in sweet dishes as done by
competitor.
Stevia should go for concentric diversification because

 New but related products could be offered at highly competitive prices.

 Adding new but related products would significantly enhance the sales
of current products.
 The organization has new management team.

PRICE

Stevia products are produced from herb which is rare and expensive. It is very
difficult to reduce the price of the product with the existing resources. As most of
the organic products are found as expensive and artificial products are found as
cheaper but stevia has competitive advantage of over other artificial sweeteners
41

is because it is 100% natural and has no side effects. People who are conscious
about their health or are already suffering from any disease would not go to take
any risk and would not compromise in price. As in economic recession people
are very sensitive about price but people are more aware of the organic or
natural effects of products. Economics and pricing will be key determinant in the
growth of Stevia.
It is critical for suppliers to rationalize Stevia prices to enter the mainstream
ingredient business. Economies of scale and distribution will also throw up new
challenges impacting the pricing. Rebaudioside A content in Stevia leaves is
related to plant variety, region, method of cultivation, preservation and
preparation processes. Existing Stevia leaves can produce different
Rebaudioside A contents, but the use of sophisticated process and equipment
and higher raw materials and per-unit energy cost are expected to push prices
up.

QUANTITIES AND PRICE RANGES:

QUANTITY PRICE (Rs)

Box containing sachet(50) 315
Box containing tabs 145
Bottles 350

Pricing Objectives

First of all we decide where we want to position our market offering. Stevia
position marketing objective through pricing on the basis of product quality
leadership. Product is categorized by high level of perceived quality and taste.
The price set is not very high that it reaches out of affordability of consumer.

Pricing Method

Pricing method followed by stevia product is Markup pricing, done by identifying

input cost and finally analyzing the realistic profit should be attained from that
input. Being 100% natural and with no side effects this product is expensive as
compared to other major competitors but it satisfy the consumer need of safety
for which the consumer move towards sweetener industry.
42

PRICING STRATEGIES

Stevia products are available with different pricing strategies in market to cater
the needs of maximum people and attract more customers towards the product.
Price strategies would be dependent upon the marketing strategies. Marketing
would modify the degree of prices in particular segment and need for price
change in any situation.

Currently the price strategies include

 Location pricing

Same stevia product is priced differently at different locations even though the
cost of offering at each location is the same. Stevia in 7th avenue is available for
315 rs where as same stevia products in I- sectors of Islamabad are available for
305 rs.

 Channel pricing

Stevia carries different prices depending on whether it is purchased from a

high market store of Islamabad, a normal chemist shop in Rawalpindi,
doctor‟s clinic, hospitals, or for awareness seminars.

 Product form pricing

Different versions of the product are priced differently but not proportionality
of their respective costs.
43

 Price discrimination

Price discrimination on stevia products is offered to customers on the basis of

their loyalty towards the product and the quantity demanded of the product

 Customer segment pricing

Different prices are charged to different customers. Elder people get discount
when they get prescription from the doctor or when any educational
department ask for the product to create awareness.

 Backward integration

Backward integration is a strategy of seeking ownership or increased control

of firm‟s suppliers.

Stevia should go for this strategy because

 Current suppliers are not reliable and are expensive

 Current suppliers cannot meet the current needs
 Numbers of suppliers are small and competitors are large
 Industry is growing rapidly
 Cost leadership is very important to come and survive in competition

Discounts and Allowances

Stevia currently need to rely on discounts and allowances to survive and get
position in market other wise it will stay to be an unknown brand for all.
Discounts would make stevia a popular brand with more benefits and value.
Currently company can give

 Cash Discounts

Cash discount is given to people who buy product more frequently.

 Quantity Discounts

Quantity discounts are given to those who buy in bulk for self usage or for
further recommendations. E.g Doctors can place Stevia in clinics, Gym
instructors can place it in Gym‟s and Bakery owners can use it in bakery
items for diabetic patients.
44

 Psychological discounting

It includes selling the price at a price line form. Selling stevia at price of
299 or 199 this would not make huge decrease in price but would increase
sales in return.

 Discounts for Social Responsibility

Special discounts are given for people who want to create health
consciousness among people or want to create awareness about
sweeteners in market.

PROMOTION
Promotion is done to disseminate information about a product, product
line, brand, or company. It is one of the four key aspects of the marketing
mix.

o Promotional Goals

The goals to promote a product are

 sales increases
 new product acceptance
 creation of brand equity
 positioning
 competitive retaliations.
45

o Promotional Mix

ADVERTISING, MEDIA, AND VEHICLES

MEDIA VEHICLES ADVERTISMENT

TV Cooking programs, T-V commercial,

health awareness Seminars
programs, Sponsor time
checks.
RADIO Add health awareness Voice commercials and
programs with ads. awareness programs by
experts.
NEWSPAPERS Articles on Reviews, Ads Print ads, Newspaper
on main or second page. supplements, Catalogs

WEBSITES & EMAILS Banners, popups , email Broachers, fliers ,

to targeted audience Banners on streets
46

TELEVISION ADS

TV CHANNEL TIMING FREQUENCY

GEO
(Time Check) 7-12 pm 6 Times a Day

ARY DIGITAL
(Commercial
Ads) Prime Time 3 Times a Day

PTV
(Commercial
Ads) Different Slots 3 Times a Day

MASALA TV Cooking shows 2 Times a Day

GEO SUPER Different Slots 4 Times a Day

47

PRINT ADS

Magazine Frequency

Daily dawn Twice every week

Roznama jung 10 times a month

Sunday Plus On Sundays

(The Nation)

Raabta Once a Month

48

 SEMINARS/ EDUCATIONAL INSTITUTIONS

To create awareness about stevia product line we will arrange seminars

headed by doctors and research scientists to tell about the benefits of the
product in hospitals or educational institutions.

 NEWSPAPERS

Articles written by research scientists and doctors would be published

every Sunday to create more awareness and promote the product.

 SOCIAL RESPONSIBILITY

Banners on roads with health care lines would show that company is
socially responsible and positive image would be created.

 TV ADS AND PROGRAMS

49

Ads would be properly shown with proper timing and channel. Special
shelves would be placed in stores with brand ambassadors. Fliers and
broachers would be properly arranged to guide people. Cooking programs
are arranged which show the usage of stevia products. In Masala Tv
proper sponsor programs are shown.

 JOINT VENTURE/ PARTNERING

Joint venture is a popular strategy that occurs when two or more

companies form a temporary partnership for the purpose of capitalizing on
some opportunity. Stevia can be jointly promoted with any different
industry e.g tea or milk industry. Stevia need to be promoted with local
company which has already made its place and position in market. By
strategic alliance with stevia other company would get an opportunity to
show themselves socially responsible.
Stevia should go for joint venture because

 Stevia needs to be promoted locally

 Stevia needs to compete in highly growing industry
 Stevia wants to create good positioning
 Price should be justified with benefits
 Helps in market development

 CUSTOMER RELATIONSHIP MANAGEMENT

Stevia is highly interested in knowing and giving value to customers

because stevia cares about its customers Stevia is going to preserve
database of its customers gathered from observations, reasons of
purchase, interests, habits of customers. Database would contain
50

complete information about the frequency of purchase and purpose.

Every customer would be considered as an individual and would get
individual benefits. Customer service department would be open 24
hours for all who want to get any information about product and its
availability. Customers can do shopping online from internet and can
book their orders. By online purchase we can collect data of
customers, monthly newsletters and emails can allow us to make long-
term relations from customers.

 MOBILE DOCTOR

Today because of technological advancement we have a concept of

mobile doctor who give guidance when you are facing any medical
problem. Stevia has a contact with all mobile doctors who can guide
you about all issues related to diabetes, in the treatment of cough, joint
pains, blood pressure, diabetic, weight management and skin
rejuvenation.

 FULL DOCUMENTARY

Complete documentary should be formed showing the process from

production to the distribution of stevia and its benefits to consumer. In
documentary awareness should be created about sweetener industry.

 SPONSORSHIP

Company should arrange sponsorship events e.g. sponsor game

shows or sport events e-g hockey, cricket or golf and allow loyal
customers and sports heroes in that event, cooking programs or health
walks etc.
51

 INTERNET

Company give complete information about its product on website

www.stevia.com, stevia promotions are also placed on hospital
websites, health related clubs, Fitness gym sites, and groups on

facebook. Contacts are made through email based on monthly, weekly

or daily subscriptions.

 RESTURANTS AND AIRLINES

Stevia should marketed and placed in restaurants for the use by

customers and airlines should also serve stevia sweetener to travelers.
52

 INSERTS(Leaflets in magazines and newspaper)

Broachers would be inserted in newspaper of Sunday that will include

whole information about stevia product and contact details.

 DIRECT MARKETING
Sales force would be assigned with the work measured on the basis of
reward on performance. Sales force would visit offices with stevia
product and would arrange small informational lecture for office
workers. At the end of lecture option would be given to listeners to
purchase the product on discounts at spot and memberships for stevia
health care club.

 MASCOT
Advertisement of stevia is done with a Mascot. Mascots are powerpuff
girls (STEVIA GIRLS) who represent strength, love, peace, help,
happiness and Heaven.
53

PERSONAL SELLING

Stevia products are different from other sweeteners in the market but less
or even no one know about the difference and there is less awareness
about it. People either chose product on the basis of price or by looking at
unconscious cues i-e colors, size and packaging. The main feature needs
to be positioned is that it is 100% natural and has no side effects and this
is stevia‟s competitive advantage. Stevia is now managing trained brand
ambassadors who will stay in front of the shelves where stevia is placed
so when people come and get confuse about the difference in product
price then they can tell them about its advantage over other products in
shelve.

During the whole process the brand ambassadors will tactically identify the
needs and problems, deal with objections, forestall the objection and
follow-up. Catalogs would be present with brand ambassadors to give and
guide customers about prices, product line, advantages, history and usage
of stevia products. Broachers could guide customers and help brand
ambassadors to provide complete information to customers in short time.

SALES PROMOTION
54

Scheme Memberships Benefit

 Loyal Reward Memberships for Deals in luxurious

Program consumers including restaurants, 5% payment
 On-shelf (children, Middle age, of medical fees, free
couponing older male and female) entry in health seminars.
 On-line
couponing
 Dealer loader Dealers/ retailers Extra sales promotion
 Trade contest tools given to retailer for
 Point-of- stevia with time to time
purchase gifts in bulk quantity
displays including Diaries, Fridges
 Training or Computers. 10%
programs decrease in price if
purchased in bulk and
result into increase in
sales.
 Certifications Doctors and surgeons Certificates travel to
 Research and enhance experience and
experience online recommendations
of doctors who be closely
associated with the sales
of stevia products.

PUBLIC RELATIONS

Stevia is a product for health conscious people because people who are
either suffering from diabetes or are conscious about the health would be
inelastic about the price of product and would see the benefits associated
with the product other then price.
55

DISTRIBUTION
Channels of distribution provide the link between production or supply and
consumption. They are used to make products or services accessible and
available to consumers or buyers. As a product or services passes through its
channel of distribution it gains added value because it becomes available to the
consumers when and where it is wanted.

o Geographical coverage

Stevia need heavy advertisement to get famous and to create awareness about
natural ingredients with no side effects. To create a balance between heavy
advertisement distributions should be at same level. Stevia should be available in
areas where it is advertised. If we take example of Islamabad and rawalpindi
stevia should be available in every sector of Islamabad to provide a value to
customers and heavy placement would increase chance of sales.

o Distribution channels

The distribution channel adapted by stevia is short channel. The supplier or

manufacturer supplies the customer in a consumer goods market through a
retailer, who acts as a reseller or intermediary.
56

Manufacturer/supplier

Retailer

Customer

Whilst the supplier is not in a direct contact with the customer, this channel type
minimises the loss of contact ; while at the same time it maximises the supplier‟s
influence and control over the retail intermediary or agent.

For instance, The supplier and retailer will agree to co-operate in funding,
designing and spacifying:

 Promotional activity, whether it can be external advertising or in-store

sales promotion.
 Store layout and product display
 Training of shop sales staff

o Physical Distribution

GLG Life Tech Corporation is a global leader in the supply of high purity stevia,
an all natural, zero-calorie sweetener used in food and beverages. The
Company‟s operations cover each step in the stevia supply chain including non-
GMO stevia seed breeding, natural propagation, stevia leaf growth and harvest,
proprietary extraction and refining, marketing and distribution of finished product.
GLG advanced technology and extraction technique make it one of the world‟s
leading producers of high purity stevia extracts, including rebiana made with 97%
57

Rebaudioside A. GLG Life Tech Corporation manage the distribution of product

in Pakistan and make strategies according to the demand.

Stevia products are available in below mentioned places in bulk quantity.

 Medical stores
 Hospitals
 Clinics
 Retail stores
 Restaurants
 Gyms
 Women health clubs

INITIAL INVESTMENT:
The initial investment is estimated to be 150 lakh rupees.

RESEARCH EXPENSES:
The estimated budget for conducting the research is rupees 20, 00,000/-

EXPENSES ON ADVERTISING:

1. On television:
58

Advertising on television (PTV-1) for 4 minute slot costs rupees 142500.00/-

per minute, from 7:00 PM to 7:30 PM. The estimated expense for advertising
on this medium is rupees 25, 00000/-

2. On radio:

Advertising on radio costs on the basis of “per second”. An advertisement of

1minute on prime time costs rupees 10,000. If the ad is being given on radio
from 15-18 times then it will cost 1.5 lakh rupees.

3. In newspapers:

Giving the advertisement in a news paper (classified which includes Jang

group, Dawn, and The news) will approximately cost 35 rupees per word
thus making a total of 500,000.

4. In magazines:

The cost of advertising in a magazine will cost 850-1000 rupees per word
depending upon the location of the page. So, if the ad is being given in a
weekly magazine then it will approximately cost 10, 00000/- rupees.

5. Bill boards:

The cost of advertising the product on bill boards costs a per day tax of 1 lakh
and 50 thousand rupees to the government. And if the billboard is used for 15
days then it will cost 22 lakh and 50 thousand rupees.

ADMINISTRATIVE COST:
It includes the salaries of the managers and executives. The estimated expense
is of rupees 50, 00000/-
59

CONTINGENCY PLANS

A Contingency plan is a plan devised for a specific situation when things could go
wrong. Contingency plans are devised by businesses who want to be prepared
for anything that could happen. They are sometimes known as "Back-up plans",
"Worst-case scenario plans", "Scrap Stituation" or "Plan B"
We have recommended different strategies for Marketing mix which include
product, price, place and promotion. Contingency plans would get active when
other strategies get failed or everything is not going as planned.

 MOVE AHEAD OF COMPETITOR

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Competitive advantage of stevia is that it is 100% natural and this gives stevia a
chance to charge maximum price which is comparatively higher then competitors
price. Company should try to maintain its competitive advantage and try to add
additional value based things in it. Currently we can see that stevia can face
aftertaste issues and to over come this issues Flavor companies are launching
tool boxes and solutions for eliminating the aftertaste associated with Stevia-
derived sweeteners. Comax flavours, Symrise, Firmenich & Sensient Flavours for
example, have all been busy developing new masking agents for Stevia, with
each of them working on customization for a variety of applications.
Givaudan has been directing its taste research, sensory science and receptor-
guided ingredient discovery to address the bitterness associated with Reb A.
Screening of a diverse chemical library has led to a portfolio of more than 20 new
flavour ingredients effective against Reb A bitterness. Stevia should try to
maintain this competitive advantage and when it see that another competitor can
overcome this competitive advantage then company would go for additional
flavors to keep itself different.

 INTEGRATING SOCIAL NEEDS WITH BUSINESS GOALS

When company face a situation when its Plan A is not working properly and need
to take help of Plan B then company would try to use such points which it
observe when Plan A was implemented and need of plan B arose. All the
information and sources would be gathered and new strategy would be made
accordingly.

 REDUCTION IN PRICE WITH RESPECT TO PACKAGING

Stevia would be available in new packs with reduce quantity and price would be
measured according to the quantity. 50 tabs each box would be charge lesser
then box of 100 tabs. This would allow company to provide convenience to
customer to purchase in lesser and economical price.

 SPECIAL WEIGHTLOSS AND HEALTH CARE CLINICS

Special weight loss and health care clinics would be arranged to create
awareness and loyalty programs to retain and acquire new customers.

 MANAGE CERTIFICATION

Authentic certificate should be arranged in short time immediately to get more

satisfaction for customers.
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CONCLUSION
The future of this industry is dependent on greater access to information on
cultivation, production, flavor-enhancements, regulations, supply chain,
marketing and socio-economic issues. Constantly monitoring trends in the
industry will provide critical information needed for business and public policy
decision-making. There are several limitations to the growth of Stevia markets.
The key ones relate to economics as Stevia products are currently more
expensive than other high-intensity sweetener products. The other issue relates
to after tastes as Stevia products are reported to have a distinct after taste.
Companies involved in formulation development are focusing on this as also
product consistency issues. The major challenges for the Stevia market is
competition with ordinary sugar, higher price of Stevia added products than the
ordinary products and lack of raw materials. As Stevia value chain from
cultivation to processing to refining is poised to grow in near future, it is
imperative to look at sustainable models of Stevia production – an activity which
can have profound implications for revitalising rural economies world wide.
Higher marketing efforts would create awareness about sweetener industry and
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stevia in minds of consumers. With time stevia first would become Trade mark,
then it would become Trust mark and finally it would be converted into Love
mark.

REFERENCES
 www.stevia.com
 Wikipedia
 Stevia world forum
 Sales force management
 Marketing practices
 Global stevia industry perception report 2009- Dr RajaGopal
 A Position Paper by KnowGenix in line with Stevia World Europe 2009
 „Stevia as an Alternative Sweetener - Promise and Challenges‟ was
written by Dr. R. Rajagopal,