Executive summary

Pakistan is a tropical country and has accorded a favorable reception to thirst quenchers such as fruit juices and aerated drinks. Ready to serve orange juice is a beverage prepared from clarified orange juice. When chilled the RTS beverage makes for a nutritious and refreshing drink. The nutritive value of real fruit beverages is far greater than that of synthetic products, which are being bottled and sold in large quantities throughout the country. If real fruit juices could be substituted for these synthetic preparations, it would be a boon to the consumer as well as the fruit grower. Pakistan is a market of diversity diverse with regards to incomes, price points of products, culture and preferences and a marketer has to get use to these diverse characteristics of the market. Drinking juice is not a part of our culture. We drink water with our meals but in the West one starts the day with breakfast and a glass of juice. Juice is to a great extent considered as a luxury not a necessity in our society, surely but slowly things are changing mainly in the urban and semi urban areas, where the population is getting more and more health conscious and are realizing the important nutrient values of fruit and are making them a part of their daily diet. The companies in this Rs. 100 crore industry will have to organize various promotional activities from time to time mainly to increase sampling and to educate the consumers about packaged fruit juice that it is as pure and nutritious as fresh juice which is perceived as fresh as it is extracted in their presence i.e. actual or assumed. There are two main brands in this segment of non- carbonated drink markets; they are Real from Dabur and Tropicana from PepsiCo. These two players command around 80% market share in the organised sector. We can observe this industry growing and new players entering the market. In recent times we have seen the entries of some international brands, like Berri [Australia], Ballantyne [Australia], and Tipco [Thailand], with the intention to strengthen their hold in Pakistan and to grow with the market

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Company

SABT Enterprises Pvt. Ltd will be entering the food processing industry with its first launch i.e. an Orange fruit juice. Three of the four investors have full operational responsibilities. Khakan and Faisal are the co-founders and have both entrepreneurial and industrial experience. Alveena and the rest of the group members brings operational management and financial skills to the operation. Pursuant to our company policy stating "Quality First, Credit Prominent", we process our orient juice with strict production standard, quality control and sophisticated processing technology, we at all time provide our consumers the natural and healthy orange fruit juice. Our Start up costs, listed below, has been financed to date by the investment from its owners. Following are the parameters:

Particulars Land & site development;[x[ acres @ Rs. [y] lack per acres Building and civil works Plant and machineries Miscellaneous Fixed Assets Preoperative expenses Preliminary expenses Technical know-how and engineering fees Contingencies @ 10% Capital Expenditure Margin money for working capital Project cost

Amount xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxxx

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Market Analysis Market Analysis Summary:

One can sense an evolution that the industry has seen with development in the tetra- pack market, there also has been a natural progression from drinks to nectars to juices and while traditionally fruit drinks were aimed at children, the new brands like Nur pur , Nestle, and Malt have focused on young adults and professionals. Although fruit drinks focus strongly on out of home consumption, the juices and nectars have been concentrating on takeaways or in-home consumption with more choice coming in, the tetra- pack market is likely to witness further segmentation. Packaged fruit juices are getting recognized as social drinks now, with dominant consumption being observed in the company of family and friends. People have started to perceive fruit juices as anytime beverages, with consumption being spread more or less evenly between the mid mornings, afternoons and evenings. And generation now is as much inclined to sipping fruit juices as colas, with teenagers driving the maximum trials. If the findings of a usage and attitude study conducted by market research agency PAK Research across 1200 adults in Sec A and Sec B households in Islamabad and Karachi are anything to go by, then its not just champagnes and colas that qualify as social beverages.

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Market Segmentation:
There has been no general acceptance of the product forms in the fruit beverage market. The consumer is basically concerned if it is a fruit juice or synthetically constituted product. Product segmentation, therefore, should be clearly delimited. Under the fruit drinks the first segmentation is between real fruit drinks and synthetic drinks. The real fruit drinks are based on natural fruit pulp or juice. The synthetic drinks are synthetic products with fruit or other flavors. Broad taste preferences could be another way to define the market. The market is at present also segmented on the basis of fruit pulp content. For the purpose of segmentation, on the basis of fruit pulp content. For the purpose of segmentation, on the basis of fruit pulp content, market can be segmented as: Fruit juice with pulp content more than 80%. Brands falling in this category are NURPUR etc. Fruit Nectar with pulp content between 40% to *0%. Nestle come in this category. Fruit Drinks with pulp content less than 40%. Frooti and Malt are the popular brands in this category. Segmentation could also be on the basis of the benefits provided to the consumer: One benefit could be the nutrition content it gives to the consumer so one market could be the health-conscious segment.

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Second benefit is thirst quenching, so the other segment could be those buying the drink or nectar for satisfying the thirst.

Another very broad segmentation can be on the type of situation in which the drink or nectar is used: People who are on the move i.e. Outdoor use e.g. those traveling. People who are using it on the breakfast table as a part of their menu i.e. in-house use.

Players very often choose one or more of such segmentations to differentiate their product and target market and accordingly plan their distribution and promotion patterns.

Market Needs:
Consumers usually, are not going to accept something that doesnt taste good even if it is good for them or has certain benefits. Companies working to bring a new food product to the market have two questionsdoes it taste good and will consumers buy it?

Industry analysis:
The Rs 100 crore packaged fruit juice market is estimated to be growing at 20% to 25% annually, with Tropicana and Real holding 40% market share each. The market can be categorized in terms of product content and there are three major product contents available. Drinks: Juice with pulp content less than 40%, Nectars: Juice with pulp content between 40 - 80%, Juices: Juice with pulp content more than 80%,

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Nestle orange nectar, a orange drink, was introduced in the tetra pack in 1985 and since then has been a leader in its segment. The market has suddenly picked up since 1994-95 and a few players have emerged as market leaders.

Leading Manufacturers of Fruit Beverages in Pakistan:

Company 1. Mava Brand Frooti Flavors Mango, Guava, Pineapple, Strawberry & Orange Apple Orange, Nature Sweet, Apple, Grape, Pineapple, Tomato, Mixed Fruit.

Appy 2. PepsiCo Ltd. Tropicana

Slice 3. NUR PUR Real

Mango, Litchi, Orange & Guava. Grape, Guava, Orange, Pineapple, Tomato, Mixed Fruit, Litchi, Mango. Orange, Apple Mango Mango, Guava Mango, Litchi Apple, Mango, Processed Guava, Pineapple, Orange

Real Active 5. Coca Cola 14. Modern Foods 15. Eastern Fruit 16. NESTLE Maaza Rasika Efil Nestle

[The above mentioned list consists of the brands noticeable in metros and as such there are a large number of small canning units scattered all over the country catering to niche markets.]

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Product
Orange fruits are small oval fruits with a thick orange skin, soft gr flesh and white seeds. They are rich in many Vitamins, flavonoids and minerals. In particular, they contain a high amount of Vitamin C (more than mangos and apples), as much potassium as
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bananas and a good amount of beta-carotene.

Anti Oxidant properties of orange Fruit It is important to note that orange fruits contain a remarkable amount of Vitamin C, E and A. Vitamin C is a water-soluble antioxidant that has been proven to protect our body from free radicals, dramatically improving the health of individuals who consumed it regularly against all kinds of disease, from cardiovascular problems to cancer and obesity. Vitamin E has been proven to have similar effects, but is fat-soluble and thus is complimentary to Vitamin C in its functions. orange fruits contain both these vitamins in high amount, which help protect our body against free radicals from all fronts. Orange fruit seed are where the most of the Vitamin E and dietary fiber are found. Summary of Orange Fruit Health Benefits Eating orange fruit is clearly a healthy choice, particularly useful in these cases: Prevents Asthma Prevents wheezing and coughing, especially in children Protects our DNA from mutations Provides a healthy amount of antioxidants and vitamins Helps prevent colon cancer thanks to a high fiber content

Product Description:
This product is actually a mix of 60 percent pure orange juice, water, and cane sugar. With a strong, accurate kiwi flavor, this could actually turn out to be a pretty tasty any other juice substitute a possible motivation for placing a highvisibility Vitamin C label across the front of the package.

SWOT Analysis:

Strengths: Innovative flavor hence we are bound to get the attention with proper communication. Committed, capable and ambitious management. We can gain incentives as we will be a SSI and so we can pass these to capture more market. Flexibility in our operations as initially we will be confined to few cities so can focus our efforts on the tasks.

Weakness: Our distribution set up initially will be weak when compared to the others in the market. We are entering the market with only one flavour and our next flavour will be out only after six months of the first launch. Our financial constraints with respect to our competitors demand that our resources are used optimally. We will not be able to price our product lower than the others in the market as we have a longer distribution channel and managing this channel also will be an important task. Also as our product is not available in Pakistan its cost of acquiring increases and therefore it cannot be sold at a low price in the initial stage.

Opportunity: The market is in a growing stage and fairly small in terms of market share as compared to other thirst quenching and healthy drinks so at this stage our entry is expected to be noticed. The market has a presence of only few players and they are not too aggressive in their acts. More and more people in the urban areas are getting health conscious and are making fruit juice a part of their daily diet. Hence the market is growing. The government policies are expected and are showing trends to encourage the food processing industry. The orange fruit can be then cultivated in Pakistan in the regions of Karachi, Islamabad, Lahore, Multan, Peshawar, Hayderabad, Larkana, Guwadar Port to cut down the cost of imports of the fruit. Threat: Our competitors are deep pocketed and they could harm us by getting aggressive in their promotional activities. The competitors have strong brand images in the market because of their other businesses and their presence in the market from an early stage. Pakistan market has characteristic of serving a wide variety people which is a challenge for all the marketers. Others can adopt the flavor and the value of a unique flavor could be neutralized soon.

Decisions taken after S.W.O.T analyses

Processing Place We selected a place that is suitable for our factory, easy to access, cheaper in cost concerning to our production Men power (labor) We have to hire cheaper and skillful labour and experienced administration for the success of our product Plant From different sources and research we found that American Mitsubishi plant is much cheaper and can fulfill our requirement. There are three different units of this plant: 1. for cleaning 2. for abstracting juice 3. for packaging

Implementation of plan

Marketing plan
Mission statement
Our mission is to provide the highest quality of fruit juices. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. We will ensure that our products will exceed the expectations of our customers i.e. we develop a competitively superior value proposition and valuedelivery system.

Marketing objectives
1. Maintain positive growth at each quarter (not standing seasonal sales pattern). 2. Slow and steady market penetration.

Financial objectives
Realize a 3% increase in the gross profit margins through efficiency gains every year. Reduce the logistic cost associated with product delivery by 10% by the end of the first five year of operation. Increase in profit margin through efficiency and economy scale gain. Marketing mix Positioning Our product will position itself as a premium quality product with comparatively high price and for every age. Pricing Price of the product will be fixed/finalized after the comparison with the competitors product price. Place As we are distributing our product in five major cities of Pakistan and we have large international market in Middle East.

Distribution patterns:
Distribution network and reach are vital factors for success of the brands in the fruit beverage market. It is mainly the distribution strategy that the companies are focusing upon. The distribution is mainly done through stockiest. The companies also have franchises that work as a separate entity. Some companies also have their C & F agents to give the product to the distributors, who further distribute to the retailers. To co-ordinate the things properly with the distributors, companies keep their own field force.

Below the figure shows the many ways the companies in this industry are seen to be operating:

Companys Manufacturing Facilities

Franchises

Stockiest

Agent

Distributor

Retailer

End User

The urban Pakistanian retail sector has traditionally been structured around three small retail entitiesthe grocer, the general store and the chemist. The grocer stocks non packaged, unbranded commodities such as rice, flour, and pulses, as well as branded fast moving consumer goods (FMCGs) The general store stocks only branded, packaged FMCGs. The chemist, a part from dispensing pharmaceuticals products, sells branded FMCGs such as personal care products and health foods. Departmental stores and supermarkets. Others: Bakeries and confectioners Fruit juice/ tea stall/ vending machines

Ice-cream parlours, Electrical and hardware stores and Non-food boutiques, etc.

These retail outfits stock branded FMCGs that gel with their businesses. Supply chain integration does not quite matter in the case of the small retailer because of the small scale of his operations. He normally deals directly with wholesalers with whom he is able to negotiate rates. Retail consolidation (consolidation of buying power) among supermarket operators is unlikely to hurt small retailers simply because it will affect manufacturers directly, who will not want to compromise on the distribution reach to offer large volumes to a few big retailers. The small retailers form an integral part of the wide distribution network set up by the large FMCG companies. Marketers have also found that private/ store brands from supermarkets can prove to be a threat to their own brands and hence, desist from encouraging retail consolidation.

Distribution
Cities 1. 2. 3. 4. 5. 6. 7. Karachi Lahore Multan Peshawar Faisalabad Islamabad Rawalpindi no. of distributors 3 2 2 2 2 2 2

Packaging Juices can be found in every type of packaging. In early days, cans and glass bottles were the only available types of packaging. Today, the assortment includes PET bottles, sports bottles and brick packs. Introduced to reduce shipping weight or to allow small children to pour their own juice, PET bottles provide another benefit: shatter- resistant properties. Juices found in refrigerator case typically come packed in gable-top cartons. The newest innovation in cartons is the re-closable plastic cap. Some single- serving juice drinks come in sports-top PET bottles. Some companies concentrate on proprietary packaging, with easy grips or unusual eye-catching shapes. Packaging is an important part of promotion today hence the company has decided that orange juice will be served in transparent PET bottles for all the quantities and will carry the company Logo/ Symbol, nutrient value of the juice and the statutory requirements like the ingredients etc. Promotion Strategy The promotion strategy will seek to first create customers awareness and taste concerning the product. The slogan/ message that our product will seek to communicate is TASTY & HEALTY.

Promotional Strategy:
The promotional efforts will be on two fronts i.e. on our direct customers and the end consumers. This should ensure orange juice a push from the distribution and a pull from the customers.

All our promotional efforts should serve some basic criteria like the activities should carry a feel good appeal and should enhance emotional attachment of the target with orange juice. Orange juice will be advertised in cost effective media like newspapers, radios, hoardings, at bus stands, and the most important and effective will be through TV advertisements. There will be some cosmetic variations of these advertisements when they are launched across the country. Regional celebrities who appeal to consumers may also be used in advertisements intended for various regions these celebrities will represent our positioning.

Sales Promotion: We will be tying up with few other marketers and piggy backing our product on theirs; this is expected to give us access to the shopping list and homes of our target. Marketers that we intend to tie up with will be the ones that have a place in the shopping list of the lady of the house e.g. branded wheat, salt, frozen vegetables, magazines etc. The company will also tie up with supermarkets and other stores, which are mainly volume oriented, by piggy backing our product on their in-house products. Both the above routes will help us in sampling our products to our target customers and in the right manner. Attention will be given to the presentation part too, POP materials, store displays, stickers etc. will be used to create awareness at the retail outlet. Advertising: Advertising will be exercised with a media mix, which will consist of: Print Media:

Print Media will be used in the form of news papers of various languages. Print media will be mainly used with a purpose of communicating and complimenting our sales promotion schemes to pursue and gives us visibility. Audiovisuals:

Television as a media will be used to inform the qualities and benefits of orange juice and give us visibility and build the brand image with the customers. The combinations of TV channels will be used at different intervals. The channels will be selected keeping in mind our target i.e. the lady of the house channels showing good TRP ratings for their soaps; the influencers i.e. her offspring music, movie channels, cartoons, etc. Audio:

Radio will be a key element in our media mix as it is cost effective and will cover our catering cities precisely. Under the brand name we will be running contests, sponsoring programme, etc. This will help us reach out to our target audience and the influencers. Outdoor:

Outdoor communication will be done to help us get the visibility i.e. with the help of Hoardings, which will be placed at areas that are prone to traffic jams and at toll Stations. Railway stations in Karachi and Rawalpindi will be a good target area for such print media as it also has maximum visibility because majority people travel daily by trains to work. In respect of this media the company will be very selective. Posters:

Posters will be created by the company during the events and will be carrying the company logo, brand name and the picture and the tag line.

Public Relation:

The company will be a part of events and/or will also be organizing its own events. The events will be chosen on the core values of community relation and whole family participation. The company will be a part of children and youth involving events like college/ school festivals, meets, etc and only use these as a platform to getting closer to their influencers and sample their product at a concession or commission basis. World Wide Web:

We will make our presence felt on the internet by hosting a website for the brand orange juice which will be named www.SABT.com which will; The website will be imparting the information about our products, quality and values i.e. history of orange, its cultivation, its benefits etc. Run online contests Give health tips Give recipes Opinion section - person is free to express his thoughts and feedbacks The website will be a tool to get closer to our customers and understand them better and will serve an entertainment and utility value. Methods 1. FREE STALLS IN HEALTH CLUBS

2. 3. 4. 5. 6. 7. 8.

FREE SAMPLING DISCOUNT RATE STALLS PERSONALITY MARKETING HOARDINGS BANNERS LOCAL CABLE CHANNELS

Segmentation
1.DEMOGRAPHIC Growing age Old age Sick people Sportsmen/women 2. GEOGRAPHICAL KARACHI, LAHORE, MULTAN, PESHAWAR, FAISALABAD HOT CLIMATE CITIES 3. BEHEVORIAL Health conscious people Target customers Growing age Old age Health conscious people Sportsmen/women

Future Products:
Aerated orange drinks Orange Kraze (orange-apple-lemon) Gold Maltfruit Juice

Marketing Research:

During the development of the marketing plans, several focus groups will be used to gain insights about our customers. These focus groups will provide us with helpful insight, which will compliment the decision making process. An additional source of dynamic market research will be the feedback mechanisms with the help of our website www.SABT.com , the contests which the company will be a part of and the primary research which may be done by us or another party if felt the need or in combination. These will be the steps which will be taken to understand the brands position in the customers mind and will serve the purpose of being close to our customer to understand him better. SABT Enterprises Pvt. Ltd will work hard in analyzing and implementing suggestions in order to improve its offerings aw well as to show its commitment to the customer and convey to them that their suggestions are valued. An important source of information will also be our competition. The company will keep an eye on the competitors activities as they are a constituent of our environment and their activities are bound to affect us. This will be done with the help of the secondary data available and primary data from our customers, our channel members and others.

Feedback
A well encouraging and satisfactory feedback is received from the customers who has start using our products and we have hope that in near future we will satisfy all the potential customers who are fond of oranges and product made from oranges. Inshallah.