MARKETING PLAN

FOR

Freshees Cold Storages

It Keeps Us Fresh & Healthy

SUBMITTED BY: Muhammad Umar Cheema

SUBMITTED TO: Mr. Hanif Shehzad Malik

DEPARTMENT OF MANAGEMENT SCIENCES

NATIONAL UNIVERSITY OF MODERN LANGUAGES

H-9 ISLAMABAD
 Acknowledgment

First off all, I would like to thank my supervisor of this project, Lecturer Mr. Hanif
Shehzad Malik for the valuable guidance and advice. He inspired me greatly to work on this
project. He motivated me a lot for completing my work on this project.

I would like to thank him for showing me some examples that were related to the
topic of my project. Besides, I would like to thank the authority of National University of
Modern languages for providing me a good environment and facilities to complete this
project. And I am also very thankful to my Respected and honorable colleague Lt. Col Sir
Abdul Salam who helps me a lot to do my work.

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 Executive Summary

This project is about the establishing a cold storage in the agricultural/rural area
Ahmed Nagar Chattha, Gujranwala Pakistan. This area is basically agricultural area and the
farmers and growers are cultivated many types of fruits and vegetables in this area, like
tomato’s potato’s, and multiple vegetables and there are 4 cold storage corporations in that
locality so there is need of cold storage facility in this area, and the market is very vast and
having a lot of potential to raise our profit.

Our primary marketing objective is to increase the sales by the availability of fresh,
improved quality of high value perishable fruits and vegetables for both local sale and for
export, which would otherwise perish or deteriorate.

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 Table Of Contents
1. Introduction: .............................................................................................. 1
a. Vision: ................................................................................................................... 1

b. Mission:................................................................................................................. 1

c. Logo & Slogan: ..................................................................................................... 1

2. Current Marketing Situation: .................................................................. 2

a. Market Description: .............................................................................................. 2

b. Product Review: .................................................................................................... 2

c. Competitors Preview: ........................................................................................... 3

3. Strengths, Weaknesses, Opportunities and Threat Analysis: ............... 3

a. Strengths: .............................................................................................................. 3

b. Opportunities: ....................................................................................................... 4

c. Weaknesses & Threats: ......................................................................................... 4

4. Objectives and Issues: ............................................................................... 4

a. Objectives: ............................................................................................................ 4

b. Issues: ................................................................................................................... 5

5. Marketing Strategy: .................................................................................. 5

a. Positioning Strategy: ............................................................................................. 5

b. Product Strategy: .................................................................................................. 5

c. Pricing strategy: .................................................................................................... 6

e. Promotion strategy: .............................................................................................. 6

6. Marketing Research: ................................................................................. 7

7. Marketing Organization: .......................................................................... 7

8. Product Process Flow: ............................................................................... 8

9. Action Programs ........................................................................................ 8

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10. Budgeting: .................................................................................................. 8
a. Economic Factors: ................................................................................................ 9

b. Prices of Raw Material and Equipments: ............................................................. 9

11. Controls: ..................................................................................................... 9

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1. Introduction:
This project is a sample plan of a cold storage corporation which will provide customers
the facility of storage for their vegetables, fruits, and multiple perishable foods and dairy
items for selling them into off-season, with the coordination of The Small and Medium
Enterprise Development Authority (SMEDA) and the supervision of Punjab Government.
This project will be introduced in Ahmed Nagar Chattha, a very high potential market
for agricultural products near the one of the crowded cities of Pakistan i.e., Gujranwala.

As there is only one cold storage near Ahmed Nagar Chattha, so this will be in great favor
for this project.

a. Vision:
“ To become a market leader of cold storage corporation in the area of
Gujranwala Pakistan”.

b. Mission:

“We help feed the people by safely and efficiently storing and delivering food
product to valued customers around the whole country in a cost efficient
manner”.

c. Logo & Slogan:

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2. Current Marketing Situation:
Most of the existing local Cold Storage’s are constructed on locally developed methods,
which maintain a uniform temperature for all commodities stored. The goods are not
stored at their recommended relative storage temperatures and life, and because of this the
quality of stored commodity is badly affected. For Example Potatoes require specialized
post-harvest treatment, appropriate temperature and relative humidity control for their
proper & optimum storage, which most of the existing local cold stores lack. This causes
the spoilage of goods and items so this situation demands a proper planning for cold
storages.

a. Market Description:
Specific segments targeted include vegetable growers, fruit growers and traders.
This project surely addresses the needs of all these groups. It will equip the target
segments with safe and sound, reliable, storage facilities according to their needs
or requirements for their goods. It will safe their time, money as well as guarantee
the security of their goods. The growers will be earn more profit as compared to
others who are not avail this service because they will able to sale their goods in
both seasons, it will show a noticeable decrease in the ratio of food deterioration.
Our target segment is the small and big farmers and as well as the exporters of the
vegetables and fruits.

b. Product Review:
 This cold storage offers the following main features:
 It is in the heart of agricultural areaso everyone coming to the surrounding
areas can have access to it.
 It is affordable for all the segments of population.
 It offers a complete security, safety and storage system.
 Cold Storage delivers award-winning refrigerated logistics which have multi-
temperature controlled storage (-20 to +60).
 It has a facility of firefighting sprinklers.
 It provides safety to goods according to their requirement in separate
terminals.

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  It will be eco-friendly.
 It will be Environment Friendly.

c. Competitors Preview:
There are already four cold storage corporations in the surroundings of that area
so there will be a perfect competition. Number one is the Cheema Cold Storages
which is the well known cold storage in that area and it holds the 45% of
marketing share and they have the 8 years experience also so they will be the our
strong competitors more than others, 2nd is Cool Breeze Cold Storages, 3rd is the
Proya cold storages and 4th one is the Itefaq Cold Storages.

 These all Cold Storage Companies are using the old and primitive method of
storing the fruits and vegetables.
 Cheema cold storages have the facility of transportation only.
 The technology which is using by them is the 10 years old technology.
 They have lot of experience to do the business.

3. Strengths, Weaknesses, Opportunities and Threat Analysis:

a. Strengths:
 Adequate insulation.
 Outside waterproofing.
 Inside vapor proofing.
 Ventilation.
 Air distribution.
 Adequate humidification.
 Properly designed controls for precisely maintaining the storage atmosphere.
 Fairly good price.
 Use of machinery that is durable and feasible.
 Low operational cost because of energy efficient construction.
 Compartmentalization provide opportunity to store different commodities at
their respective temperatures.

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 b. Opportunities:
 By using effective marketing strategies cold storage business can attract more
growers and traders.
 Sufficient quality control and reduction of waste will directly enhance
availability of the produce.
 Further, the cold storage facilities would result in
supplies during off-season which otherwise may not be possible.
 Timely placement of products in the cold storage will help preserve their
quality and improve shelf life.

c. Weaknesses & Threats:

 Irregular government policies e.g., abnormal tax increase.
 Fluctuation or unexpected increase in electricity tariff.
 Failure of fruits and vegetable crops due to natural calamity.
 Ruthless competition by other business adversaries.
 New competitor in the market.New competitor will be a constant threat to the
business because it is a very big market. If another investor comes up with
another cold storage than the customers will be divided.
 Some of the political forces can be a hindrance in the establishment of this
cold storage.

4. Objectives and Issues:

a. Objectives:
These are the basic objectives of this plan:

 To facilitate people by providing them healthy foods in all seasons in an

affordable and effective manner.
 To run the business on profit base.
 Retain the existing customers and delivered the customer value and customer
satisfaction.

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 b. Issues:
A heavy investment will be made to create a distinctive image of the cold storage, and
for projecting innovation, and providence of quality and value. Awareness and
response of people will be measured to adjust the market efforts as necessary. And I
have no personally experience to doing such business yet.

5. Marketing Strategy:
Freshees Cold Storages is based on positioning of product differentiation. The primary
consumer target is the growers who grows the vegetables and fruits at large scale and
those farmers who cultivate the multiple perishable items at small and medium scale also.
The secondary consumer target is the exporters who need to purchase the food items and
vegetables for exporting them into foreign countries. This cold storage will fulfill the
needs of all the segments.

a. Positioning Strategy:
Our positioning strategy is to make or develop our companies position in the
customers mind as well as in the market. Using differentiation, this plan is positioned
as the most convenient and value added cold storage facilities for the people from all
segments. We will focusing on the providence of more quality goods and other
perishable items to our customers which will be more convenient to our target
customers.

b. Product Strategy:
We are going to adopt undifferentiated product strategy which will address all the
classes irrespective of age and group. The plan will take account of the layout and
design of the cold storage corporation to ensure efficiency of operation and the
maintenance of good Health & Safety by providing the healthy and fresh food items
to our customers..The revenue raised will be used to subsidies benefits or incentives
that encourage people to use our services.

 Its provides public refrigerated warehousing.

 It will provides the different temperatures for different items according to their
specification.
 Transport services will also be given to the door step of the customers.

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  It is in the hub of the area which is the most convenient for our target
segments.
 Best class of aluminum will be used for warehousing
 Always adopt new technologies.
 Export quality packing in which provides safety to the goods and items while
transportation.
 The cold storage building will consist of Pre-fabricated refrigerated (Walk-in
type) structure. This type of structure is highly superior to any form of
refrigerated storage construction previously available in Pakistan due to its
better technology and energy efficiency.

c. Pricing strategy:
It will be ensured that the people will be facilitated by fewer charges and more
benefits so that’s why we will adopt the Market Penetration Pricing Strategy, and for
this purpose we will use the Geographic pricing strategy. The price range will be set
as it would be affordable for all the segments. The prices are different for different
segments and the quality of services are also different.

 Attractive prices for all segments

 Prices will be set according to the competitors price strategy
 Prices will be affordable.
d. Placement Strategy:
For the placement we will use the direct marketing distribution channels because our
target segment is local growers and exporters. for the local growers or customers we
will use the direct marketing channels and for the exporters or foreigners we will use
the indirect marketing distribution channels if necessary.

e. Promotion strategy:
Beside following the following parameters, we shell b adopting the direct
communication channels:

 Distribution of the pamphlets.

 Through advertisement on local media
 Banners on the sides of main roads of Ali pur chattha and Gujranwala.
 Print media.

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  Developing our own website.

6. Marketing Research:
Using research, the specific features and benefits will be identified that the target
segments value. Through surveys and feedback from the consumers will help to measure
and analyze the effectiveness and efficiency of the services provided. This will also help
us to develop more effective strategies.

7. Marketing Organization:
Marketing teams will be organized under the supervision of marketing manager who will
target the objectives set by CEO.

And for inventories there will be a stock manager who will operate all the stock inward or
outward from the warehouses.

Overall organization will be as following;

CEO

Marketing Administrator
Stock Manager Finance Manager
Manager Manger

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8. Product Process Flow:
The working of the Cold Storage will be as follows:

Potato Bags Receiving/ Con

Received From ditioning
the Customer Chamber

Commodities
placed in.

Commodities Distribution/ C
Transported onditioning
Chamber

9. Action Programs
Our action program is started with a campaign which will be started for the first season
through pamphlets’ distribution, banners on the main roads of Ali pur Chattha and in the
surroundings and local and social media. The campaign will show the basic features of
the cold storages.

The consumers will be given discount for the first season if they store or sale the goods
more than 100 tons. This will attract more and more customers. It will also help to assess
the practicality of the project.

Different packages fo.r local growers will be introduced. Company will provides the free
transport facility in the area of 20 km around the cold storage.

10.Budgeting:
We did the survey of a cold storage in the Mureedke near Lahore and we concluded that
total cost in establishing the cold storage in 2008 was about Rs 2 crore, and as we will
install the new and imported technology so that’s why its cost will be highly increases.
So if we are interested in building new cold storage at Ahmed Nagar Chattha the total
cost will increase on the basis of following factors:

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a. Economic Factors:
Economic Factors of country is the most effecting on cost of any projects according to
the present political conditions.

b. Prices of Raw Material and Equipments:

It is another very important aspect of the economy, that affects:
 cost of raw materials,
 cost of aluminum,
 refrigerator system,
 other equipments,
 cost of infrastructure,
 paying power of people,
 cost of production and
 cost of transport etc.

So on the basis of some above mentioned factors price level is increased about 50% as
compared to the last five years. If we calculate total cost now, the amount of 3 crore
increased by 50%.

11.Controls:
It is planned to have tight control measures to closely monitor quality and customer
service satisfaction. This will enable the management to react very quickly in correcting
any problems that may occur. It will also help to improve the standard of the services
provided to the customers to win their trust and satisfaction.

We are focusing on to deliver the customer value and customer satisfaction through an
efficient manner and retaining the our existing customers as well as win the new
customers and capture the more market share. For controlling our performance we will
take following steps:

 Make our R & D Centre more strong and effective.

 Made innovations to get a competitive advantage over our competitors.
 New product development.
 Proper check and balance over the company’s Assets and financial resources. Etc.