20142014

Martin Dow

MBA PROJECT

TERMS OF REFERENCE

SUBMITTED TO
Mr. Asad Ilyas

PROJECT TITLE

MBA Project Coordinator

M AR K E T P O T E N T I AL
AN ALYSI S O F
N E UT R AC E UT I C AL M AR K E T

TEAM MEMBERS
Adil Majid

Erp: 01261

Chd. Jawad-ur-Rehman

Erp: 01278

Mamoon Bin Burhan

Erp: 01188

Institute of Business
Administration,
Karachi
Syed
Irfan Ali Zaidi

Erp: 06665

0|Page
Martin Down
12/7/2014

Martin Dow

MBA PROJECT

TERMS OF REFERENCE

Introduction to the Project Market Potential Analysis

(Neutraceuticals)
Dr. Stephen DeFelice, founder of the Foundation for Innovation in Medicine, defined a
neutraceutical as food, or parts of food, that provides medical or health benefits, including the
prevention and treatment of disease. (Puri, Bhattacharya and Ajmera, 2013)
With the riding population and increase in disposable income, Pakistani society and its
consumers are now moving towards improving their lifestyle choices. One trend which has
emerged in the past few years is the increase in usage and consumption of Neutraceutical
Products such as energy drinks, energy bars, food supplements and others. Companies like
Searle, Abbot, & PepsiCo have introduced various products such as Vitamin Water, Ensure
and Sting and experienced varied amounts of success.
Keeping this in Mind Martin Dow has also decided to venture into the field of Neutraceuticals.
Currently the company is majorly involved in production of world class generic pharmaceutical
products including Lexotanil, Revotril and Valium. This report and project will focus obtaining
market insights and conductin detailed market potential analysis to determine whether it is
feasible for a company like Martin Dow to venture into this market.

Problem Identification Identifying the need

As presented in the introduction, the market of neutraceutical products is a relatively new and
un-established market. Participants in this market belong to both pharmaceutical industry as
well as FMCG industry. The reason why a company like Martin Dow is interested to foray into
this particular area is the lack of regulations and barriers involved in the launching of a product.
For instance if the company decides to launch a pharmaceutical product, it will take them 2 3
years just to get a formal approval from the authorities, whereas in the neutraceutical segment
these regulations do not apply and hence the company can launch new products easily and
quickly.
Moreover the company can also market these products on a broader scale and build its brand
image which is currently nonexistent in the minds of general public as the company has only
recently launched its operations in Pakistan.

1|Page
Institute of Business Administration, Karachi

Martin Dow

MBA PROJECT

TERMS OF REFERENCE

Project Vision
To determine, explore and predict the growth potential in the Neutraceutical market.

Faculty Advisor for the Project

We will be advised by Prof. xxx throughout the Project.

Project Objectives
1. To explore consumer insights with respect to:
The perception consumers hold towards the various neutraceutical products
currently available in the market
Study the present usage of the neutraceutical products.
Identify the consumer preferences for imported vs local products.
2. To determine industry dynamics of the neutraceutical market:
Conduct a retail audit
3. To find out market share of existing brands:
Branding activities undertaken.
Sales generated over the past few years.
Extent of Market penetration achieved.

Scope
The company has factory in Karachi where we will conduct our research.

2|Page
Institute of Business Administration, Karachi

Martin Dow

MBA PROJECT

TERMS OF REFERENCE

Timeline of Activities

3|Page
Institute of Business Administration, Karachi

Martin Dow

MBA PROJECT

TERMS OF REFERENCE

Research Methodology
Problem Definition
Secondry Research
Literature Review

Case Studies Analysis

Competitor Analysis

Primary Research
Focus Group

Retail Audit

In-depth interview

Questionnaire

Analysis
Qualitative and Quantitative Analysis using SPSS

Recommendations & Implementation

Alternatives
The above research will help us find out whether there is a potential for the company to enter
the neutraceuticals market in Pakistan or should it focus on its current pharmaceutical
products.

Budget for the Project

We are expected to incur the following costs during the course of our research:

Cost Head
Traveling / Transportation Expenditures
Stationary & Printing / Photocopying
Arrangements of focus groups and interviews
TOTAL

Budgeted Costs
Rs. 15,000
Rs. 15,000
Rs. 10,000
Rs. 40,000

4|Page
Institute of Business Administration, Karachi

Martin Dow

MBA PROJECT

TERMS OF REFERENCE

Risks and Constraints of our Research

Listed below are potential risks and constraints faced by our project:
Time horizon and the risk of overrunning it
Political instability, which would hinder our schedules of Market research
Sampling errors
Limited budget and the risk of overrunning it
Privacy / Confidentiality issues

Resources required from the company

During the course of this project, the company is expected to provide us with the following:
Research support in terms of information and clients customers accessibility.
Detailed meeting with the client at least once a month.
Financial reimbursement of approximately Rs. 40,000 (details highlighted in the Budget
section).

5|Page
Institute of Business Administration, Karachi