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Report
Marketing Principles
Cane o Fresh
By
Ali Nasir Ahmed Anjlee Helmnani Hunain Aziz Manesh Permani Maryam Bashir Safa Sultan
Submitted To
Fahad Zuberi
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Letter of Transmittal
November 27th , 2010 Mr. Fahad Zuberi Marketing Principles SZABIST
Dear Sir, We are submitting you the report, due on November 27th,2010, the report is based on the marketing plan of a new business idea. The purpose of the report is to inform you regarding our research work. The content of this report concentrates on how we have marketed our product with in the given budget . We have tried our level best to cover all aspects of the subject and we hope that this report will serve its purpose. Thanking You,
Ali Nasir Anjlee Hemnani Hunnain Aziz Manesh Permani Maryam Bashir Safa Sultan
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Acknowledgement
We, the members of this particular group would like to thank our Marketing Principles Sir, for helping us understand the interesting concepts of marketing by both, giving us theoretical examples and practical examples to help us increase our knowledge and in effect helping us complete this term report.
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Executive Summary
In this report we have presented the marketing plan of an entrepreneurship idea which is of a Sugar Cane Juice in Tetra packaging In Pakistan there are all flavours of juice available in tetra packaging courtesy of different companies but none of those companies ever came up with this flavor of juice in tetra packaging. Another reason why we took an initiative for this project that after our marketing research phase we came to know that people actually demand this product but it is not available. The problems faced by the people who are sugar cane juice drinkers were low availability ,few vendors kiosks, unhygienic and many more. In this report we have thoroughly described the ideas of how to market this sugar cane juice named as Cane o Fresh we have compatibly used all 5 of our marketing communication mix tools and came up with a strong combination of marketing activities with the help of these tools. These tools include Advertising, Sales and Promotion, Direct Marketing and Public Relations.More over Line Extension, Sponsorships and Social Responsible activities will kep the product alive in the minds of the customers in the future stages of the product. We have made the Marketing plan by constraining ourselves to a certain amount of budget to give a more of a realistic touch to this project from the electricity bill to the heavy machinery we have calculated the risk and return of each and every investment and expense involved. Cane o Fresh will be available in all retail stores (Kirana , general stores, super markets etc) in just Rs. 15/- and being a convenience product its target market will be mass or undifferentiated market. We will position this product by strongly relating is brand image with happy moments as to match the tag line A Juice That Makes You Happy
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Table of Contents
1 Introduction ................................................................................................................................... 10 1.1 2 Mission and Vision Statement ................................................................................................ 11
Current Market Situation: .............................................................................................................. 13 2.1 2.2 2.3 2.4 Economical: ............................................................................................................................ 13 Political .................................................................................................................................. 15 Cultural: ................................................................................................................................. 15 Technological: ........................................................................................................................ 16
SWOT Analyses: ............................................................................................................................. 18 3.1 3.2 3.3 3.4 Strengths: ............................................................................................................................... 18 Weaknesses: .......................................................................................................................... 18 Opportunities: ........................................................................................................................ 18 Threats: .................................................................................................................................. 18
Objectives and Issues: .................................................................................................................... 20 4.1 4.2 Objectives: ............................................................................................................................. 20 Issues ..................................................................................................................................... 20
The Marketing Mix: ........................................................................................................................ 22 5.1 5.2 5.3 5.4 5.5 Product: ................................................................................................................................. 22 Price: ...................................................................................................................................... 22 Place: ..................................................................................................................................... 23 Promotion: ............................................................................................................................. 23 Packaging: .............................................................................................................................. 24
4 C s (Customers View Point) ........................................................................................................ 24 6.1 6.2 6.3 6.4 Customer Solution: ................................................................................................................. 24 Cost : ...................................................................................................................................... 24 Convenience:.......................................................................................................................... 24 Communication: ..................................................................................................................... 24
Competitors Analyses .................................................................................................................... 26 7.1 7.2 7.3 7.4 Competitors: .......................................................................................................................... 26 Advertising: ............................................................................................................................ 26 Marketing Strategy Used:- ...................................................................................................... 26 Differential Strategy ............................................................................................................... 26
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Environment: ................................................................................................................................. 29 8.1 8.2 8.3 Suppliers: ............................................................................................................................... 29 Intermediaries : ...................................................................................................................... 29 Customer: .............................................................................................................................. 29
9 10 11
The Benefits of Cane o Fresh Juice: .............................................................................................. 31 Distribution: ............................................................................................................................... 33 Segmentation:............................................................................................................................ 36 Geographical Segmentation: .................................................................................................. 36 Country :......................................................................................................................... 36 City: ................................................................................................................................ 36 Density: .......................................................................................................................... 36
11.1
11.3.1 11.4
Behaviouristic......................................................................................................................... 37 Benefit............................................................................................................................ 37
Target a Marketing Strategies: ................................................................................................... 37 For Upper Class : .................................................................................................................... 37 For Middle Class: .................................................................................................................... 37 For Lower Class: ..................................................................................................................... 37 Positioning ................................................................................................................................. 38 Positioning Strategy:............................................................................................................... 38 More for the Less Value proposition: .............................................................................. 38 Same for Less Value Proposition: ................................................................................... 38
Type of Product: ......................................................................................................................... 38 Convenience:.......................................................................................................................... 38 Brand Strategy: .......................................................................................................................... 39 Line Extension: ....................................................................................................................... 39 Package Sizes: ........................................................................................................................ 39 Logo ....................................................................................................................................... 39 Page 7
BCG Matrix:................................................................................................................................ 39 Marketing Plan........................................................................................................................... 42 For universities: ...................................................................................................................... 42 For Schools ............................................................................................................................. 43 For Hospitals .......................................................................................................................... 43 For Malls ................................................................................................................................ 43 On Roads: ............................................................................................................................... 44 Retail Marketing: .................................................................................................................... 44 Print Media ............................................................................................................................ 45 Billboards ............................................................................................................................... 45 Mobile Marketing................................................................................................................... 45 RADIO................................................................................................................................. 46 WEBSITE ............................................................................................................................. 46 Formal launch event ........................................................................................................... 46 Post Launch: ....................................................................................................................... 47 Marketing Strategy 6 months after attaining the break even: ............................................. 48 Launch of the Public Figure : ........................................................................................... 48 After 3 years going Socially Responsible:............................................................................. 49 4th Year: .............................................................................................................................. 50
17.10 17.11 17.12 17.13 17.14 17.15 17.16 17.17 18 18.1 18.2 18.3 18.4 19 20 20.1 20.2
Time Line: .................................................................................................................................. 52 Year 1: Dec 2010- Feb 2011 .................................................................................................... 52 Year 2 :April 2012: .................................................................................................................. 52 Year 3:January 2013-December 2013 ..................................................................................... 52 Year 4 : 2014 .......................................................................................................................... 52 Product Life Cycle (PLC) Curve: ................................................................................................... 53 Budgeting & Control ................................................................................................................... 55 Return of Investment ............................................................................................................. 57 Income Statement .................................................................................................................. 58
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Table of Figures:
Figure 1: Hierarchy of Distribution of the product .................................................................................. 33 Figure 2: Logo of the product "Cane 'o' Fresh ......................................................................................... 39 Figure 3: BCG MATRIX For HAMS Cane Industry ..................................................................................... 40 Figure 4: Showing the concept of our stall at Malls ................................................................................ 43 Figure 5: Portraying Concept of Stalls at Malls ....................................................................................... 44 Figure 6 Showing the concept of Bike Marketing ................................................................................... 46 Figure 7 Product Life Cycle of Cane 'o' Fresh .......................................................................................... 53
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Introduction
y Company Name: HAMS Cane Industry
Product Name: Cane-o-Fresh Business Type: Producer of Packaged Sugar Cane Juices
Technology Introduced By HAMS Cane Industry In Pakistan: A technology has been developed for preserving the sugarcane juice in bottles for a period up to six months. The process of preserving the sugarcane juice involves peeling, crushing, filtration, pasteurization and bottling. Sodium Benzoate @ 125 ppm is added as preservative. The bottled juice can be stored without any loss in the quality and flavour for six months at room temperature.
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Vision Statement To emerge as one of the best producers of Organically grown and Scientifically extracted Quality Sugar Cane Juices in packaged form and by making the life of the people and the society more easier by making it conveniently available and providing the natural refreshment of sugar cane juices in a more hygienic and healthy way by never compromising on the quality of the product and keep on bringing innovations in our product as per consumer needs which increases our profits
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Realiazing the fact that sugar cane juice is only available at Vendors Kiosks (Stalls) and in place which are vary shabby, dirty and narrow which makes the potential customers think twice whether to go drink it or not. Sugar cane juices are not easily available and if they are available very few people know about this place.More over the vendor kiosks are located in a way just like regular shops that people living near to it only know about it. After talking to the people at the vendors kiosks daily more than 200 glass of juices are sold from particularly one vendor kiosks.
Through our questionnaire which had a sample size 100 we came to the conclusion that more than 75% people were in the opinion of having sugar cane juices in packaged form . When interviewed people said that they rarely used to consume fresh juices like Apple , Orange and others in the market today, so we can conclude from this that when these juices were conveniently available and in a more presentable, hygienic form people started consuming them. There is no doubt about this that that Sugar cane juices have a potential market but if we can capitalize on the opportunity of making them available in the packaged form more people will consume it as compared to Vendors Kiosks.
2.1 Economical:
Why people shifted from fresh juices to packaged juices in Pakistan ?The answer to this question is that a normal fresh juice price is Rs. 40 /- where as a normal packaged juice price is half of it Rs. 20/- more over packaged juices are easily available and in a more hygienic form.We similarly will provide the packaged juice in cheaper rates as compared to the fresh juice available at vendors kiosks i.e Rs.5/- less than the fresh juice.The price of our packaged sugar cane juice will be Rs. 15/- . We will have different sizes 200ml pack will be for Rs. 15/- ,same as the the fresh juice (small glass of sugar cane) , 500ml pack will be for Rs 35/- , Rs. 5 /- less than the fresh juice (large glass of sugar cane) The increase in inflation will increase the prices of sugar cane juices.
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The economic position of the country if weaken will lead to further reduction in income of the people which effects consumer buying behaviour The Agriculture Department calculates a detailed cost of production and sets a minimum price for sugarcane based on this calculation. However, in recent years these minimum prices have been lower than the prices which mills have actually paid, due to the shortages of cane. There have been occasional harvest stoppages such as in late 1995 and early 1996 when farmers refused to deliver cane at the minimum price which was being offered by mills. The production of gur provides an alternative outlet for cane. The price of sugar itself is not directly controlled, though imports and exports are strictly regulated in ways to affect price. In 1996, average retail sugar prices in urban areas were around 18.5 rupees/kg (US 51.28 cents/kg). A less refined grade of sugar, sakria, was selling at 16 rupees (US 44.35 cents/kg), and gur at 14 rupees (US 38.8 cents/kg). The wholesale price of sugar was only slightly lower, at 18 rupees/kg (US 49.9 cents/kg). Outside the cities, sugar prices are generally slightly higher. Some amounts of low priced sugar are sold through government stores to the needy. A "cess" (tax) on sugarcane, half from farmer and half from mill, originally intended to support sugarcane research, is now being used for building feeder roads. The cess varies among the provinces. These different tax rates affect the net support price, and change the net relative prices received by farmers and mills in the different provinces. In addition to the announced support price, a premium to be paid to growers who deliver high quality cane is announced each year by the Government. For 1996/97, the quality premium was to be paid if average recovery was higher than 8.5 percent in Punjab and NWFP Provinces, and 8.7 percent in Sind Province. The rate of payment was 0.32 rupees (US 0.89 cents) per 40 kilograms of cane for each 0.1 percent point recovery over the base level. For example, if a Punjab mill averaged 8.6 percent recovery, growers would be paid an extra 0.32 rupees (US 0.89 cents) per 40 kilograms of cane. Payment of Income Tax on the earned income
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2.2 Political
Taking the certificate /permission from Government for setting up the plant ,and opening the new business. The Pakistan government influences the industry through the price of sugar, price of sugarcane, mill licensing, special types of taxation, and import and export controls (some direct, some indirect). Market-based policies are spreading in many parts of the world, and Pakistan is no exception, although the influence of this trend on sugar policies is not clear. Pakistan is expected to reduce its sugar imports in the short run, as recent firm internal prices are likely to provide stimulus to domestic production, while constraining the growth of consumption. This would conform to long-stated self-sufficiency goals. However, with clear limits on irrigation water and production inputs, self-sufficiency for Pakistan in any one commodity, such as sugar, may come at the price of foregone production of other crops. The price of refined sugar in the world market in the last decade has been more stable than in earlier decades, and as world trade becomes based more on market-oriented policies, the world price may become a more clear "opportunity cost" against which to compare domestic prices. The currency devaluation which Pakistan has recently experienced provides a window of opportunity for Pakistan's sugar policy to be realized. However, in the longer run, improved efficiency will be required to create the basis for a competitive industry. There are likely to be ongoing technical efficiency gains in the industry, and Pakistan appears to be well positioned to adopt technological improvements. More over a change in Government might lead to change in policies which may affect our business. Keeping in mind the uncertain situation of the city, terrorist attacks and suicide bombings more over military operations are not friendly signs for sound business environment.
2.3 Cultural:
Looking from a cultural perspective people look upon sugar cane juices as natural refreshment and energy.Sugar cane juices are most popular in countries like Pakistan and India.In Pakistan
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this product indeed has a potential market.As people here like to be Desi infact some people like to eat unhygienic things it is normal in Pakistan.But talking about the health this product doesnot cater to majority of the middle class and the elite class who prefer packaged juices cause of there health being affected.More over the factor of being Desi can be a good analogy of Sugar Cane juice with our culture.It is a source of physical and mental enlightenment for people in a Desi way. Now a question might arise that why the lower class would be attracted to our product.The lower class does consume Packaged juices but rarely , our USP will be that we will sell 200ml the small pack of packaged Sugar Cane juice in Rs. 15/- while it is available at Vendors Kiosks at Rs. 20/- people will definitely shift to our product more over it will be easily available at any Kiryana and general store
2.4 Technological:
As Sugar cane juice gets black in color in 10 minutes because of huge amount of iron in it which makes it undrinkable so we needed to preserve the juice as we will sell it in tetra packing for this purpose we used the following technology :
A technology has been developed for preserving the sugarcane juice in tetra packaging for a period up to six months. The process of preserving the sugarcane juice involves peeling, crushing, filtration, pasteurization and bottling. Sodium Benzoate @ 125 ppm is added as preservative. The packaged/bottled juice can be stored without any loss in the quality and flavour for six months at room temperature.
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SWOT ANALYSES
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SWOT Analyses:
Initiators: We are the first company to introduce the Sugar Cane juice in tetra packaging As we have launched this product we can have a strong hand over any new entries in the market in the same field. Promoting the hygiene factor gives a strong position over Vendors Kiosks Hams Cane Industry never compromises on Quality. Produces Quality products Its is a mass market product First Company in Pakistan to have access to preservative for Sugar Cane juices Can be stored for 6 months Easily available that at Vendors Kiosks
3.1 Strengths:
y y y y y y y y
3.2 Weaknesses:
y y y y y y y y y Sugar cane juice has very few customers as compared to other juices Strong market share gained by orange and apple juices Nestle has a strong brand name It will be difficult for us to capitalize on the market for atleast first year as Nestle being a rich an resourceful brand can eliminate us from competition through branding activities Soft Drinks are also an indirect competition and gain a large market share People in Pakistan are Desi and sometimes eat things that are not clean or hygienic that Pakistani culture,while we are promoting a hygienic product Vendors Kiosks juices prices can be lower than he prices of our packaged juice. Customers are not brand loyal
3.3 Opportunities:
y y y y We can have new flavors like Ginger, Mint, Carrot etc Maufacturing in Pakistan is easy as Pakistan is one of the largest producers of Sugar cane juices We can even export our juices Government support :Providing employment to the people
3.4 Threats:
y y y Large competition both direct and indirect that is other juices and soft drinks Increase in Government Taxes will increase the prices As no entry barriers new competitors can enter the market easily
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4.1 Objectives:
y y y To gain 4% Market Share by the end of 1st year of business operations. To Gain 8% Market Share by the end of 2nd year of business operations. To encourage the sales of packed sugar cane juices so that people dont buy juices from unhygienic available selling points. y y y y To have continuos growth in sales. To increase seasonal sales output. To create a strong brand name and improve companys image. To give the best quality packed sugar cane juices to the people at relatively less prices as compared to fresh sugar cane juices available at stalls. y To make it available and famous in all places across Pakistan where the temperature is relatively hot.
4.2 Issues
y One of the issues we faced was that packaged Apple ,Mango ,Orange etc juices are having a good market share because there fresh juices are almost double the price of the packaged ones ,where as in Pakistan you can also find a glass of Fresh Sugar Cane Juice worth Rs. 10/- It is a general mind set of the people that if the product is of cheaper rates it wont be of good quality which damages your brand image . y People in Pakistan are used to eat and drink unhygienic things ,its there culture.Our product is mass market and people from the lower classes doesnot bother about the hygience factor y All the countries like Brazil,Thailand are now selling sugar cane juices in packaged forms ,we should also start doing this and should discourage the current unhygienic availability of sugar cane juices. y Lots of diseases like viral fever spreads due to such stalls
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MARKETING MIX
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5.1 Product:
First ever Sugar cane juice in tetra pack packaging. Emphasizing on the factors such as hygiene, health, quality and refreshment for the customer. We will be offering the Sugar cane juice in tetra packaging in 3 flavors Lemon, Mint and Normal Sugar cane juices
5.2 Price:
We will be offering packaged sugar cane juices in 2 sizes of packs and each size with different prices y y 200 ml Rs. 15/Half Liter Rs. 35/
PRICING:
y y y y y y y y y y y y y y y y
Cost Sheet Cost of Production Companys Profit Packaging Promotion Transportation Selling & Distribution Cost to Distributor Distributors profit Cost to Wholesaler Wholesaler Profit Retailer Cost Retailer Profit MRP GST Retailer Incentives 1.7 0.5 1.00 0.50 .75 2.80 1.50 2.00 1.00 1.75
Rs 1.00
7.75
8.50
9.00
10.00
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y y
0.5 Rs.15/-
PRICING OBJECTIVES The objectives of HAMS for pricing Cane-o-Fresh are as follows: 1. Maximum Profit Oriented y y 2. To achieve a target return. To maximize profit.
3. 4.
5.3 Place:
As we have studied there are two types of place when we talk about the product the Geographic place and the placement of product at the retail Geographically we are going to supply this product in 2 Provinces that is Punjab and Sindh namely in places like Karachi, Islamabad, Lahore, reason being these places being really hot in summers and our product will be preffered in summer season. Retail: We will place our product in a separate refrigerator at the retail stores next to the other refrigerators.
5.4 Promotion:
We will be doing a full scale extensive promotional activities which includes both ATL and BTL activities but we will not opt for advertising on Television keeping in mind it will be a expensive thing to do and we are a new company so we need to keep budgets in control.
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5.5 Packaging:
Our products packaging will look really attractive and we will give different color scheme to packaging of different flavors of our product as packaging makes a really good difference to the consumer purchase. 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. Packaging is an important part of promotion today hence the company has decided that Cane-oFresh will be served tetra packaging for all the quantities and will carry the company Logo/ Symbol, nutrient value of the juice and the statutory requirements like the ingredients etc.
6.2 Cost :
y y Cheaper than the juice available at vendors kiosks Better quality of product in lower price Affordable for all classes
6.3 Convenience:
y Easily available to customers who have difficulty finding or going to vendors kiosks
6.4 Communication:
y y y y Desi hygienic refreshment Goodies (Anything free) makes you feel happy Can relate to the Pakistani culture Channels for communication News paper, Outdoors, Radio , BTL Activities
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COMPETITOR ANALYSES
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Competitors Analyses
Its keen to observe competitor and try to improve its quality and variety of products day by day by doing continuous enhancement.
7.1 Competitors:
y y y Vendors Kiosks is the pure competitors of the Cane-o-Fresh Other juices are also competition of Cane-o-Fresh Soft Drinks are also undirect competition of Cane-o-Fresh
7.2 Advertising:
Media opted for: Slogan: Push VS Pull: Radio, Bill Boards and Print Media. A Juice that makes you Happy. At some stores there is push strategy for the product where as at some stores its pull. Promise & Support: BEST HYGIENIC SUGAR CANE JUICE FOR DRINKING.
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Key success factors: Quality Continuous System Enhancement low and affordable price Competitive Advantage Easily available Healthiest juice Hygienic Form Differentiation Strategy Functional Selling Preposition Unique Unique Flavor Cultural essence
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ENVIRONMENT
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Environment:
8.1 Suppliers:
Company having their own sugarcane collection centers in different sectors which not only take the sugarcane from the farmers but also tell them about the modern techniques to improve the quality and quantity of sugarcane.
8.2 Intermediaries :
Company hire the private distribution and whole seller to provide its product to the selected cities and keeps a strict check on its distributors company had appoint an area manager on each distributor to keep an eye on its performance
8.3 Customer:
Our Company keenly study the demand of the community as the poverty level of our country is high and most of the people are not in condition to afford the packaged juice so company introduce a juice which is packaged but price is comparatively less than the open or loose juice.
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1) Sugarcane juice is a great preventive and healing source for sore throat, cold and flu. 2) It has a low glycemic index which keeps the body healthy. 3) This is one sweet drink even the diabetic can enjoy without fear. It is because it has no simple sugars. 4) Due to its alkaline nature, it helps to fight cancer. Studies indicate that it has positive activity against prostate and breast cancer cells. 5) It hydrates the body quickly when exposed to prolong heat and physical activity. 6) They are excellent substitutes for aerated drinks and cola. 7) It refreshes and energizes the body instantly as it is rich in carbohydrates. 8 ) Sugarcane strengthens the stomach, kidneys, heart, eyes brain and sex organs. 9) Febrile disorders which causes fever where there is a great amount of protein loss. But liberal intake of sugarcane juice provides the body with necessary protein and other food elements. 10) It keeps the urinary flow clear and helps the kidneys to perform their functions smoothly. 11) It is valuable in during micturation due to high acidity, genorrhoea, enlarged prostate, cyctitis and nepthritis. For better results, it should be mixed with lime juice, ginger juice and coconut water. 12) It can hasten recovery from jaundice.These are some of the benefits of drinking sugarcane juice. The rest can be listed by readers after they have had their share of this wonderful, sweet drink.
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DISTRIBUTION
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10 Distribution:
Channel Levels: The channel of distribution used by Cane-o-Fresh is: Intensive Distribution: As juice need to reach the consumer at their nearest locations this type of distribution channel is used. This type of distribution helps when for products that are categorized by low involvement of the customer and where customer looks for location convenience.
HAMS Industries
Wholesalers
Agents
Kirana Shops
In case of Cane-o-Fresh the company is using indirect distribution channel e.g. Wholesalers are agents of the company and they take commission to sell Cane-o-Fresh to retailers and then retailers sell it to ultimate consumers. Company has appointed sales officer to monitor the performance of the agents. Every sales officer visits an average of 50 shops a day. In a territory assigned by company he checks that product is available at every shop, Improve the displays and check the stock position. The Sales officer prepare a daily sales report and also at the end of the month and submit it to the Head office in Lahore. These Sales officers are guided by a Regional Sales Manager who is a manager
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of Regional Sales Office. There are four distributors in Lahore and four Sales Officers are assigned to each distribution to monitor the performance of the distributor. Distributors:The distributors will be in Islamabad, Lahore, Karachi
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SEGMENTATION
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11 Segmentation:
We will not target rural areas as they have been recently struck with a devastating flood and it is not the right time to launch a product for that market being such a small and new company when it comes to the market share.
Population :
Karachi 18 Million Lahore 10 Million Islamabad 1.21 Million y Face book Users :
More than 50 % People have access to it in these three cities 11.1.2 City: We have selected to distribute our product in the following cities : Karachi, Lahore, and Islamabad .We will expand our business in future based on sales and profit in these cities and as we had supply chain and finance issues so we opted for these three cities only. More over why we chose only these three cities because they are big and our product is preferred more in summer season and the weather is hot in these areas. 11.1.3 Density: We will be targeting Karachi , Lahore and Islamabad as they are densely populated
Cane o Fresh |Marketing Plan Page 36
Climate: We have targeted the three cities as there is extremely hot there in summer seasons and are product is preferred in summer seasons.
11.2 Demographic
11.2.1 Age: This product is for all age groups above 3 years of age. 11.2.2 Income: Mass Market product for all house holds: Lower class,middle class and upper class
11.3 Psychographic:
11.3.1 Life Style: People seeking health and hygiene factor from sugar cane juice or health conscious people.
11.4 Behaviouristic
11.4.1 Benefit The easy availibilty of the sugar cane juice at nearest outlet is a benefit seeked by the customer
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13 Positioning
It is comes in the premium juice segment and is positioned as a healthy and hygienic drink. This brand will be known for providing hygienic ,fresh sugar cane juices which creates happy moments for their customers as we say if a person is healthy he is happy and it is basically targeted at children and teenagers its over all a mass market product also catering to those who are health conscious and as the price is just Rs. 15/- it is affordable for all.As a taste that can be consumed as energy drink and also as satisfying need to consume juice .Hence it is promoted as a healthy, hygienic drink that it would give a person the energy to continue or start his daily routine happily and so is rightly named Cane o Fresh
14 Type of Product:
14.1 Convenience:
y y y y y Frequent Purchases Less buying effort Low Price Wide distribution Mass promotion
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15 Brand Strategy:
15.1 Line Extension:
We will be providing packaged sugar cane juices in the following flavours y y y y y Carrot Ginger Lemon Mint Normal
But we will be providing these flavours (Carrot and Ginger) after one year of the functioning of our business
15.3 Logo
16 BCG Matrix:
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Our Product being a new entrant in the market has a high market growth as people do try the new product and there are no substitutes to our product at this level as well. Where as having a strong competition in the field of juices we have a low market share that is 1.9% with respect to our competitor Nestle.
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17 Marketing Plan
Our first launch would be in Karachi. We wont formally launch it well just carry out prelaunch activities and for that well go in different universities and schools and other places and give free samples and also carry out other fun activities defined below.
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o Associated with a comment card will be lucky draw too so that people are tempted to fill our comment card Well have a face book page and ofcourse a website only at this pre-launch stage. Our brand ambassadors will be the ones who will be operating this page. Well post videos of our activities, winners in lucky draw, free samples distributed.whatever we did in different universities so that everyone gets aware of what we r doing and our brand ambassadors can be judged
individually on the basis of how many customers they bring on face book because if there is just one face book page they cant be judged on it! And whoever brings the greatest no. of customers will be given additional rewards accordingly.
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product at the malls.We will keep a very attractive stall at the malls and will give our product for free there.We will also take feedback from the people there and then from the comment card.It will be a very useful mode as the target market we are looking for we can find them easily at the malls.This would help us market our product really well.
17.5 On Roads:
Just like Engros Olfruito we will have our salesman giving our juices fro free on signals in day time only when its incredibly hot specially in places like Karachi and Lahore this will also go with our product as it is a refreshing juice preffered in summers more than winters and people will also feel the difference of the juice from that of vendorss kiosks and the basic motive to create positioning and create a USP for our product will be attained through this activity as Sugar Cane juices indeed help in beating up the heat and feel refreshed after your hectic day
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17.8 Billboards
well carry out billboard advertising in major areas only like Lahore Gulberg ,Islamabad near bahria town and model town , and in Karachi Clifton, Shahra-e-Faisal and Gulshan Bus stops branded with our products logo and our products picture. Under passes walls branded with our products logo e.g North Nazimabad Under pass, Clifton Under pass and other 6 under passes in all three cities
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17.10 RADIO
A 5 seconds Radio advertisement once in every hour of the day and thrice in every hour at the peak driving hours on Hot F.M 105 and F.M 91 as they provide the channel in our targeted cities Lahore, Islamabad and Karachi
17.11 WEBSITE
on our website we will have an informative blog regarding the health benefits of consuming sugar cane juice and the effects on health on consuming roadside unhygienic cane juice well also place ads on facebook and other most visited websites
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well be inviting corporates through the contacts of our suppliers and retailers because well have to use their support for inviting them otherwise why would corporates come on the launch event of a complete new company well also invite journalist, bloggers, media people well have formal presentation informing the guests about our product and several other things well also show some videos regarding the activities we conducted through our marketing phase Following our tag line A juice that makes you happy we will ask different schools do bring the children to the event , we will also invite students of different universities with their families to the event after the presentation there will be a dance party and there will be a bar where only our product Cane-o-fresh will be available after the dance party their will be huge amount of fire works and in the end the last fire work will write in the sky A juice that makes you happy on the departure of every guest they will be presented with flowers and wrist bands branded with our tag line A Juice That Makes You Happy after our official launch our product will be available only in major cities of Pakistan. Depending on the profit we earn we will then gradually expand our distribution networks throughout Pakistan We will see the results of this campaign after the end of month of February in the Magazine Aurora in the Campaign analyses section.More over we will also take feed back from customers from different universities and malls
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Following our tagline A juice that makes you Happy on purchase of our product we will give our customers (to children fancy plastic caps or balloons branded with our logo,to ladies flowers with a ribbon that is branded with our logo , and to men we will give wrist branded with the line I am Happy We will keep our 1 billboard in each area we targeted before (Karachi: Shahra-e-Faisal ,Clifton , Gulshan, Lahore: Gulberg ,Islamabad: Model town, Bahria Town). We will do our products branding at the bus stops Break Even : y We plan to reach our break even in 14 Months if the sales are normal
The concept is taken from Christmass Santa.The Cane o Man will be making visits to different schools, universities , corporate offices and hospitals and will be distributing goodies like chocolates, balloons,flowers,wrist bands and even our product Cane o Fresh to the people so that they get happy and we do branding and positioning of our product in the minds of the customer that indeed it is a juice that makes you happy. Cane o Man will appear after every six months and will visit on special occasions like before Eid or New Year or Mid of summers.Every time Cane o Man will appear we will make sure it goes to every targeted place just once.
roads atleast one groups from the fourth bus is cleaning some area some where and distributing our product. Total Expenses : Rs. 8,350,000/This activity will take place only if we have high sales and after the end of 3rd year of our business operations other wise we wont have funds for this activity
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TIME LINE
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18 Time Line:
18.1 Year 1: Dec 2010- Feb 2011
Teaser Stage : 10 Days , Started on 21st December to 30th December Launch Event on 31ST December Complete Marketing Period : 50 Days, Started on 1st January to 20th February Next Event: 14th February From 20th Feb 2011 to March 2012 the only Marketing would be through poster at Retail
outlets and our Products Branded Fridges placed at the kirana stores,general stores and super markets etc other retail outlets.
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R&D
1ST year
4th Year
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Spent on Marketing For 45 days Radio Billboards Dawn News Paper Stall in Malls Jung News Paper Van/Bike Marketing Online Marketing BTL Activities Road Marketing on Signals Magazines Launch Event Marketing Research Total Total Investment
y
100,000 4,000,000 2,000,000 500,000 1,000,000 1,200,000 300,000 50,000 10,000 40,000 350,000 2,000,000 Rs. 11,550,000 /Rs. 28,050,000 /-
The above rates are taken by calling the concerned authorities for each mode of marketing
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Total Monthly Expenses Expenses: Salaries: Labor Salaries (100 laborers X Rs. 8000/- Salary) Supervisors (Supervisors 4 X Rs. 15000/- Salary) Student Brand Ambassadors (10 Students X 10,000 Salary) Marketing Sales Person Salaries (50 People X 100,000) Total Salaries per month Rs. 1,460,000 /Monthly Bills Electricity Bill Miscellaneous Expenses Total Bills Total Monthly Expenses 200,000 100,000 Rs. 300,000/Rs. 1,760,000 /800,000 60,000 100,000 500,000
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Time To Reach Break Even : 14 Months We think this is achievable as our distribution would be across more 3000 retail at Karachi,Lahore ,Islamabad altogether which includes all the kirana stores, general stores ,marts , whole sale stores,canteens,dhabas etc which makes an average of 19 units of products at every retail point needs to be sold out across the three cities.More over Nestle has 67% market share and their daily sales is 400,000 liters while our monthly sale would be 288,000 liters which makes our market share with respect to Nestle 1.9 %, which shows that our approach is not exaggeration but reality.
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APPENDIX
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Appendix A Questionnaire Gender: M/F Questionnaire: Q-Which of the following beverages you prefer to drink in summers: (You can choose more than one option) o Soft Drinks o Fresh Juices o Packaged Juices Q- Do you think fresh juices are easily available? o o o o Yes No Very conveniently Available Difficult to find them Age:_________
Q- Which of the following factors effects your decision to consume juices? (You can choose more than one option) o o o o o o o o Weather specifically summers Mood You prefer juices over soft drinks Hygiene Health Convenience Packaging Any Other_________________
Q- Which flavor in juices is your favourite? (You can choose more than one ) o o o o o Apple Mango Orange Pine Apple Any Other________________
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Q- Do you think Packed Juices are better than Fresh Juices in terms of health and hygiene ? o Yes o No o It does not make any difference to me Q- With so many juices being available in packed form these days , would you prefer Sugar Cane juice being available in packaged form too? o Yes o No Q- Will it attract you to buy the packed Sugar Cane juice if the prices range from Rs. 10 to Rs. 15 for 200ml juice? o Yes o No Q- Do you think Sugar cane (Apple,Mango,Orange,Pineapple,etc) ? o o o o o Strongly agree Agree Niether Agree or DisAgree Dis Agree Strongly Dis agree THANK YOU juice is better than the other juices
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Appendix B Results of Questionnaire Sample Size =200 ; Male = 72% ; Female = 28% ; Age : 19 to 40 ; Classes/Occupation: All ( Random) More than One Option Can be Choosen
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Yes 50% No 38% Very Conveniently Available 4% Difficult to Find Them 10%
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Apple 30% Mango 18% Orange 46% Pine Apple 20% Any Other 16%
Q- Do you think Packaged Juices are better than Fresh Juices in terms of health and hygiene ?
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Q-With so many juices being available in packaged form these days , would you prefer Sugar Cane juice being available in packaged form too?
Yes 68% No 32 %
Q- Will it attract you to buy the packaged Sugar Cane juice if the prices range from Rs. 10 to Rs. 15 for 200ml juice?
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Q- Do you think Sugar cane juice is better than the other juices (Apple,Mango,Orange,Pineapple,etc) ?
Strongly Agree 16% Agree 24% Niether Agree Nor Dis Agree 36% Dis Agree 12% Strongly Dis Agree 16%
After analyzing the demand and need we developed a product sugarcane juice in tetra pack. In marketing research we analyze about the demand and trends of market as well as about customers. The product concept defines the purpose of the product, its suitability and business advantages for the envisaged market
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References:
y y http://www.pakissan.com/english/allabout/crop/sugarcane.shtml http://www.efooddepot.com/products/foco/3862/sugar_cane_drink_(jugo_de_cana_de_azu car)__hypen__16oz.html y y y y http://www.zeer.com/Food-Products/Foco-Sugar-Cane-Juice/000008104 http://www.tnau.ac.in/aecricbe/aetc/proc7-1.htm http://www.1000and1.com/sugarcanepage.html http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/Business/06-Mar2009/Sugarcane-price-surges-to-Rs13040kg-in-Sindh y y http://www.juiceandpopcornmachine.com/sugarcane-juice-machine.html http://www.pakissan.com/english/allabout/crop/sugarcane.shtml
http://www.tnau.ac.in/aecricbe/aetc/proc7-1.htm
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