copy of full and final

Upload: nomi-khan

Post on 05-Apr-2018

216 views

Category:

Documents


0 download

TRANSCRIPT

  • 7/31/2019 Copy of Full and Final

    1/30

    INTRODUCES NEW FLAVORED JUICES

    Dedication

    For our esteemed parents who supported us while formulating this ProjectProposal and they also had been our inspiration when it comes to proficiency inthe desired field. It is by virtue of their hard work and above board grooming thatwe stand in good stead.

    - 1 -

  • 7/31/2019 Copy of Full and Final

    2/30

    INTRODUCES NEW FLAVORED JUICES

    ACKNOWLEDGMENTS

    This report would not have been possible without the strenuous efforts of many

    people, starting from our esteemed Sir M. Umer. His vast spectrum of knowledgeand proficiency in Fundamentals of Marketing has served us in big number in order

    to give life to our potential thoughts. Moreover Sir M. Umer has also tailored and

    polished us a lot in the past and as consequence to that we are quite clear in our

    minds and certainly heading towards the right direction. We take our above boardteacher as an inspiration and it gives us motivation and strength .

    - 2 -

  • 7/31/2019 Copy of Full and Final

    3/30

    INTRODUCES NEW FLAVORED JUICES

    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 new flavoredjuice is a beverage prepared from clarified Fruits. 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. 2541 million 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 three main brands in this segment of non- carbonated drink markets;

    they are Fruita vitals from nestle Shezan,and Olfrute from olpers. These

    three 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 Rani

    Juice [Middle East], Ballantine [Australia], and Tipco [Thailand], with the

    intention to strengthen their hold in Pakistan and to grow with the market.

    - 3 -

  • 7/31/2019 Copy of Full and Final

    4/30

    INTRODUCES NEW FLAVORED JUICES

    Company

    FMSFT Enterprises Pvt. Ltd will be entering the food processing industry with its

    first launch i.e. Tetra pack juices.Four of the Five investors have full operational responsibilities. FS FH and MD are

    the co-founders and have entrepreneurial and industrial experience. SR brings

    operational management and financial skills to the operation.

    FMSFT Enterprises Pvt. Ltd has a Strategic Alliance with the New Zealand based

    company Zespri International Limited to supply some fruits to Pakistan. Pursuant

    to our company policy stating "Quality First, Credit Prominent", we process our

    Juices with strict production standard, quality control and sophisticated processing

    technology, we at all time provide our consumers the natural and healthy fruit

    juice.

    Our Start up costs, listed below, has been financed to date by the investment from

    its owners. Following are the parameters:

    Particulars Amount

    Land & site development;[x[ acres @ Rs. [y] lakh per acres xxx

    Building and civil works xxx

    Plant and machineries xxx

    Miscellaneous Fixed Assets xxx

    Preoperative expenses xxx

    Preliminary expenses xxx

    Technical know-how and engineering fees xxx

    Contingencies @ 10%xxx

    Capital Expenditure xxx

    Margin money for working capital xxx

    Project cost xxxx

    Market Analysis

    - 4 -

  • 7/31/2019 Copy of Full and Final

    5/30

    INTRODUCES NEW FLAVORED JUICES

    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 Minute maid, Rani, and Life 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 furthersegmentation.

    Packaged fruit juices are getting recognized as social drinks now, with dominant

    consumption being observed in the company of family and friends.

    The results of the research can be briefly put as follows:

    Among packaged fruit beverages, the awareness to trial, ratio of Nestls juice

    brand has been rated the highest. Up to 17% of the respondents were aware

    of Tropicana, while the brands trial stood at 11%, also, 8% of the respondents

    stocked the brand at their homes. Other parameters where Tropicana edged

    out competitors included taste, health, purity and nutrition, according to the

    study, Tropicana was also perceiver as reasonably priced.

    The average Pakistani may have a legendary weakness for mango, but when

    it comes to preference of fruit-based juices; his choices are in tune with

    international trends. Therefore it is orange juice that is the most preferred fruit

    juice flavour in Pakistan, followed by apple, Grapes and mixed fruit.

    The findings indicate that most packaged juice drinking consumers travel

    abroad on holidays.

    - 5 -

  • 7/31/2019 Copy of Full and Final

    6/30

    INTRODUCES NEW FLAVORED JUICES

    Other attributes of branded juice consumers include employment of domestic

    help, ownership of assets and credit cards, and health consciousness with

    80% respondents going to aerobic classes or working out at gymnasiums.

    Understandably therefore, awareness and trial levels of packaged juices are

    higher within the Sec A category, than among Sec B consumers, the majority

    of whom rated these as aspirational.

    Awareness levels are similar in both Karachi and Lahore; more trials are

    generated by Karachites than their counterparts in Lahore.

    The consumers are starting to perceive fruit juices at home. While 55% of the

    respondents consumed 1- litre packs at home, 45% consumed 200ml packs.

    The fruit beverage market has more acceptances in big cities like Karachi,

    Lahore, Islamabad, Quetta and Peshawar, which is due to the more awareness

    there with relations to the rest of the country.

    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, market can be

    segmented as:

    - 6 -

  • 7/31/2019 Copy of Full and Final

    7/30

    INTRODUCES NEW FLAVORED JUICES

    Fruit juice with pulp content more than 80%. Brands falling in this

    category are Nestle, shezan, Tropicana, etc.

    Fruit Nectarwith pulp content between 40% to *0%. Maaza come in

    this category.

    Fruit Drinks with pulp content less than 40%. Frooto and Tops 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.

    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 nectaris 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.

    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 anew food product to the market have two questionsdoes it taste good and will

    consumers buy it?

    - 7 -

  • 7/31/2019 Copy of Full and Final

    8/30

    INTRODUCES NEW FLAVORED JUICES

    Market Trends:

    Tropical fruits and flavours dominate the market, yet some consumers are stillhesitant to try unknown exotic flavors like litchi, gray fruit, papaya and berry.

    Companies have found the best way to introduce exotics is in combination with

    familiar flavours. A flavour combination that began in the new age, 5% to 10%

    juice category, and has spread to other beverage categories as well as to other

    products like kiwi, strawberry, etc. stating that it was a small company that took

    the risk and won.

    Industry analysis

    The Rs. 2541 million 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%,

    The canned juice market initially covered by international brands. But they did not

    make a mark in the market due to reasons such as high price, unattractive

    packaging and lack of right promotion programme.

    Nestle, introduced a mango drink 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.

    - 8 -

  • 7/31/2019 Copy of Full and Final

    9/30

    INTRODUCES NEW FLAVORED JUICES

    Leading Manufacturers** of Fruit Beverages

    in Pakistan

    - 9 -

    Company Brand flavours

    1. NESTLE Fruita vitals Mango, Guava, Pineapple, Apple, Redgrapes & Orange etc.

    Appy Apple

    2. PEPSICO LTD. Tropicana Orange, Nature Sweet, Apple,Grape, Pineapple, Mixed Fruit etc.

    Slice Mango, Litchi, Orange & Guava.

    3. SHEZAN Real Grape, Guava, Orange, Pineapple,Apple, Mixed Fruit, Mango.

    Real Active Orange, Apple

    4. OLPERS Olfrute Mango, Guava, Pineapple, Apple, Redgrapes & Orange

    5. Coca Cola Maaza Mango

    6. FROOTOINDUSTRIES (PVT)LIMITED

    Frooto Mango, Apple, mixed fruit,

    7.MURREEBREWERY

    Tops Mango, Apple, mixed fruit,

    **Thementionedlistconsistsofthebrandsnoticeableinmetrosandassuchthere

    area

    largenumberofsmallcanningunitsscatteredalloverthecountrycatering

    tonic

    hemarkets.

  • 7/31/2019 Copy of Full and Final

    10/30

    INTRODUCES NEW FLAVORED JUICES

    Imports

    With a whole range of product lines opened up for imports over the past 14

    months, these exporters have now full freedom to exploit the huge Pakistanimarket. The fruit juice market in Pakistan is not yet large enough to justify

    investing.

    Today the consumer has got a wide variety to choose from as many foreign food

    and personal products can come in unrestricted now. The Pakistani market place

    has seen a dramatic increase in the range and quality. There is expected to be

    some level of competition in these areas. Quality will have to improve and

    manufacturers will have to be more cost effective.

    Consumers belief in Pakistani products too is going up; earlier issues were of

    durability and poor shelf life. Now, Pakistani products have moved up to the next

    level. This could make it tough for imported products to make a dent in

    established categories, especially where there is a substantial price difference.

    Problems with imports:

    The imported products on offer in most stores stocking foreign foods reveal

    that they are close to their expiry dates.

    Most such products available now come through the grey market. Most of

    these products, especially those that come from South-East Asian countries,

    are imported by agents who supply to stores.

    The other problem that retailers face is that since they are dealing with agentsthere is a problem of returns of products when they are past expiry dates.

    Pakistan is a difficult market mainly because of delays at the docks, tariffs and

    duties on various products, bribery and corruption and the lack of a cold chain

    (for horticulture produce).

    - 10 -

  • 7/31/2019 Copy of Full and Final

    11/30

    INTRODUCES NEW FLAVORED JUICES

    Substitutes

    Fruit juice companies have to face a two level competition i.e. on the first level

    with the substitutes and the then the players within the industry. The NESTLE is

    comprised of the following player with respect to Pakistan.

    Soft Drinks (both carbonated and Non- carbonated soft drinks)

    Soft Drinks are divided into carbonated and Non- carbonated drinks. While Cola,

    lemon and oranges are carbonated drinks mango drinks come Non- carbonated

    category.

    Flavored Milk(energy, MILO, OVALTINE etc.)Just like fruit drinks Flavoured milk is also positioned on the health platform.

    Companies are trying to project it as a fun drink with added flavours and

    innovative packaging.

    Mineral Water

    Fruit drink sellers consider even mineral water as substitute to their offerings. The

    main assumption is that packs ensure quality delivery.

    Other products

    Milk by- products like buttermilk and lassi also serve as major substitutes. They

    compete in terms of low price as well as easy availability. These drinks are also

    considered important from the health perspective.

    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.

    - 11 -

  • 7/31/2019 Copy of Full and Final

    12/30

    INTRODUCES NEW FLAVORED JUICES

    The distribution is mainly done through stockist.

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

    be operating:

    The urban Pakistani retail sector has traditionally been structured around three

    small retail entitiesthe grocer, the general store and the chemist.

    The grocerstocks 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

    - 12 -

    Companys Manufacturing Facilities

    Franchises Stockiest Agent

    Retailer

    End User

    Distributor

  • 7/31/2019 Copy of Full and Final

    13/30

    INTRODUCES NEW FLAVORED JUICES

    Ice-cream parlours,

    Consumption and buying Patterns

    The Pakistani lifestyle has a traditional predilection for fresh fruits and vegetables

    or those processed at home. People go in for fresh fruits vending from kiosk

    fountains, which produce instant juices from fresh fruits in the presence of the

    consumer.

    Taste is often the secondary consideration in the Pakistani market for beverages.

    Fruit juices also lose on roughage, which is an important part of fruit nutrition. Few

    people know the difference between a juice and nectar.At present;

    Per capita consumption of juices in Pakistani is estimated at a fraction of a litre

    i.e. 200ml.

    Consumers go for convenient and economy products.

    Availability in chilled form and brand awareness plays a crucial role in

    purchase decision.

    Brand loyalty is very low, as all the products taste the same.

    Consumers are money conscious where the purchase of fruit

    beverages is concern.

    Main Competitors:

    A host of brands are jostling for thirst space. Not just colas but beverages and fruit

    juices of all hues are adorning shop shelves.

    NESTL FRUITA VITALS: Nestl has been serving Pakistaniconsumers since 1988, when our parent company, the Switzerland-basedNestl SA, first acquired a share in Milkpak Ltd.

    - 13 -

  • 7/31/2019 Copy of Full and Final

    14/30

    INTRODUCES NEW FLAVORED JUICES

    PepsiCo:PepsiCo, one of the worlds largest food and beveragecompanies, has offered its products through independent bottlers inPakistan for more than 40 years.

    Product

    Kiwi fruits are small

    oval fruits with a thin

    brown skin, soft green

    flesh and black seeds.

    They are rich in many

    Vitamins, flavonoids

    and minerals. In

    particular, they containa high amount of

    Vitamin C (more than

    oranges), as much

    potassium as bananas

    and a good amount of

    beta-carotene

    PAPAYA

    - 14 -

    http://var/www/apps/conversion/current/Administrator/Desktop/100%20mrk%20project/kiwi/Health+Benefits+of+Kiwi+Fruit.htmhttp://var/www/apps/conversion/current/Administrator/Desktop/100%20mrk%20project/kiwi/Health+Benefits+of+Kiwi+Fruit.htm
  • 7/31/2019 Copy of Full and Final

    15/30

    INTRODUCES NEW FLAVORED JUICES

    PAPAYA is rich in Anti-oxidants, the B vitamins, folateand pantothenic acid; and the minerals, potassium andmagnesium; and fiber. Together, these nutrientspromote the health of the cardiovascular system andalso provide protection against colon cancer. Inaddition, papaya contains the digestive enzyme,papain, which is used like brome lain, a similar enzymefound in pineapple, to treat sports injuries, othercauses of trauma, and allergies.

    CHERRY

    Cherriesare one ofthe verylow caloriefruits; yetare richsource ofnutrients,

    vitaminsandminerals.Both sweetas well astartCherriesare packed

    - 15 -

  • 7/31/2019 Copy of Full and Final

    16/30

    INTRODUCES NEW FLAVORED JUICES

    with numerous health benefiting compounds that areessential for wellbeing. Cherries are pigment rich fruits.These pigments are in fact polyphenol flavonoidcompounds known as anthocyanin glycosides.

    Anthocyanin are red, purple or blue pigments found in

    many fruits and vegetables, especially concentrated intheir skin, known to have powerful anti-oxidantproperties.

    LYCHEE

    Delicious and juicy Lychee or "Litchi" reminds you thearrival of summer Litchi, like citrus fruits, is an excellentsource of vitamin C; 100 g fresh fruits provide 71.5 mgor 119% of daily-recommended value. Studies suggestthat consumption of fruits rich in vitamin C helps body

    develop resistance against infectious agents andscavenge harmful, pro-inflammatory free radicals. It is

    a very good source of B-complex vitamins such asthiamin, niacin and folates. These vitamins are

    essential since they function by acting as co-factors tohelp body metabolize carbohydrates, protein and fats.

    - 16 -

  • 7/31/2019 Copy of Full and Final

    17/30

    INTRODUCES NEW FLAVORED JUICES

    Product Description

    This product is actually a mix of 80 percent pure juice,

    water, and cane sugar. With a strong, accurate flavor,

    this could actually turn out to be a pretty tasty orange

    juice substitute a possible motivation for placing a

    high-visibility Vitamin C label across the front of the

    package.

    1) Fruit Juice in 250ml PET Bottle

    Product code:KS250ML

    Description:Juice

    Packing:24 X 250ml

    Gross Weight: 12.5kg

    Approx. Qty per 20ft FCL:1400 Cartons

    The well-designed packaging ensures that it stands outwhether it be displayed in normal shelves or walk-in

    chillers.

    Stored at an ambient temperature away from direct

    sunlight or heat, the product has a shelf life of one (1)

    year from date of production. It should be consumed

    immediately upon opening and JUICES are best

    served chilled. MRP of this 250 ml bottled drink will be

    Rs. 30.

    - 17 -

  • 7/31/2019 Copy of Full and Final

    18/30

    INTRODUCES NEW FLAVORED JUICES

    2) Fruit Juice 1.2 liter Concentrate

    Product code:KC25FFM

    Description: JUICE

    Packing:12 x 1.2lt

    Gross Weight:16.5kg

    Approx. Qty per20ft FCL:1008

    Cartons

    This product comes attractively packaged in a 1.2 Litre

    PET Bottle with a recommended dilution rate of One

    (1) part concentrate to Seven (7) parts water. This

    variant offers value for money and convenience for

    those with large families or entertains frequently.

    3) Fruit Juice Drink in Tetra Brik

    Aseptic 1litre and 2 litre Slim line ReCap

    Product code: KS01TPSL

    Description: Kiwifruit JuiceDrink

    Packing: 12 X 1lt, 12 X 2lt

    Gross Weight: 13kg

    Approx. Qty per 20ft FCL:1350 Cartons

    - 18 -

  • 7/31/2019 Copy of Full and Final

    19/30

    INTRODUCES NEW FLAVORED JUICES

    This Tetra Brik variant is UHT processed, contains no

    preservatives and comes with a convenient re-sealable

    non-drip spout. It is an ideal choice for active families or

    individuals who want a convenient yet nutritious thirst

    quencher

    .Future Products:

    BERRY JUICE

    GRAY FRUIT JUICE

    PackagingJuices 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.

    Key Success Factors

    Processing and Packaging

    technologies used:

    State of the art production and packaging technology is a

    must in this industry. This gives an edge in packaging and

    ensuring freshness of product besides enhancing the

    image.

    distribution strategies, logistics and

    reach in the market:

    - 19 -

  • 7/31/2019 Copy of Full and Final

    20/30

    INTRODUCES NEW FLAVORED JUICES

    A strong distribution network is essential for ensuring

    availability to fight competition from the other players and

    also the substitute that have a strong distribution reach.

    Sourcing of raw materials:

    Global sourcing strategy will give an edge over other

    players in terms of both cost and quality advantages.

    Flexible and effective marketing

    mix:

    The product mix, promotional mix, pricing mix anddistribution mix should be made effective and should be

    flexible in all sense it should help us to combat the primary

    competitors

    strategic alliances and joint

    ventures:

    Strategic alliances and joint ventures help in gainingcompetitive advantage in packaging, distribution and

    product formulations.

    SWOT Analysis

    Strengths:

    - 20 -

  • 7/31/2019 Copy of Full and Final

    21/30

    INTRODUCES NEW FLAVORED JUICES

    Innovative flavors hence we are bound to get the

    attention with proper communication.

    Committed, capable and ambitious management.

    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.

    New in the market and not all people take the risk ofexperimenting with taste.

    Our financial constraints with respect to our

    competitors demand that our resources are used

    optimally.

    Opportunity:

    The market is in a growing stage and fairly small in

    terms of market share as compared to other.

    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.

    These fruits can be then cultivated in Pakistan, to cut

    down the cost of imports of the fruit.

    - 21 -

  • 7/31/2019 Copy of Full and Final

    22/30

    INTRODUCES NEW FLAVORED JUICES

    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.

    Others can adopt the flavour and the value of a unique

    flavour could be neutralized soon.

    Marketing Strategy

    Marketing Summary:

    Pursuant to our company policy stating "Quality First,

    Credit Prominent", we process our Juices with strict

    production standard, quality control and sophisticated

    processing technology, we at all time provide our

    consumers the natural and healthy fruit juice.

    New flavor in the market and the company is also new so

    its marketing budget cannot be limited. So the strategy will

    be to enter the market with a big bang. Developing

    visibility and brand equity is the key. FMSFT juices will be

    advertised in different media with respect to our target

    market .In addition to the advertisements which will be

    used to drive consumer sales, FMSFT juices will leverage

    a networking campaign with respect to the distributors and

    - 22 -

  • 7/31/2019 Copy of Full and Final

    23/30

    INTRODUCES NEW FLAVORED JUICES

    sale promotion at the points of purchase i.e. local

    restaurants, gyms etc. to drive commercial sales.

    FMSFT juices will be on the shelf in all markets by 15 th

    February, the company will start supplying its stock by 6 th

    February. The promotional activities will start from 12th

    February.

    Mission:

    FMSFT juices 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.

    Marketing Objective:

    Maintain positive and steady growth each month.

    Experience an increase in new customers.

    Generate brand equity at the markets we are catering

    to as well as within the supplier and distribution

    networks.

    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.

    Target Markets:

    - 23 -

  • 7/31/2019 Copy of Full and Final

    24/30

    INTRODUCES NEW FLAVORED JUICES

    The women of the house

    Children

    The teenagers

    In-home consumption

    Out of home consumption

    Positioning:

    FMSFT JUICE will position itself as a no compromise

    drink where a person does not have to make any

    compromise with the fun element of having the refresher

    and the health element and that it is also socially

    appreciated/ accepted.

    Brand Logo:

    Strategies:

    The single objective is to position FMSFT juices as the

    natural and healthy fruit juice in the cities it is served,

    commanding a 30% market share within 5 years. The

    marketing strategy will seek to first create customer

    awareness regarding product, develop the customer base

    and work towards building customer loyalty.

    - 24 -

  • 7/31/2019 Copy of Full and Final

    25/30

    INTRODUCES NEW FLAVORED JUICES

    The advertisements will be for the purpose of building and

    registering FMSFT juices as natural and healthy fruit juice

    and not only for our introductory flavour but also for the

    flavours in future. The ads and the promotional activities

    will be concentrating only on the cities in which FMSFT

    juices is served hence the main weight age will be given to

    the local media and advertisement on the national level

    only to the objective making our presence felt.

    Marketing Mix

    Marketing mix comprises of approaches to price,

    distribution, advertising and promotion.

    Pricing:

    Price is the marketing mix element that produces

    revenues, the others produce costs and it is also one of

    the most flexible elements as it can be changed quickly,unlike product features and channel commitments.

    Pakistan is known as a price sensitive market i.e. an

    Pakistani customer wants more value at low price.

    FMSFT juices will be priced as follows:

    250 ml Rs.30

    01 liter Rs. 90

    1.2 liter Rs. 130

    02 liter Rs. 180

    05 liter - Rs.400

    - 25 -

  • 7/31/2019 Copy of Full and Final

    26/30

    INTRODUCES NEW FLAVORED JUICES

    Distribution:

    The distribution or reach factor is a marketing mix element

    that needs to be monitored over a period of time. The

    company FMSFT Enterprises Pvt. Ltd has its FMSFT

    juices manufacturing and packaging plant in ISLAMABAD.

    The fruits will be imported from New Zealand based

    company Zespri International Limited.

    The initial launch will be in the following cities:

    KARACHI

    LAHORE

    ISLAMABAD

    QUETTA

    PESHAWAR

    The transportation to the cities will be basically through rail

    and road depending on cost effectiveness. To keep the

    channel active and result oriented following initial steps will

    be taken;

    They will be given discounts on cash purchases.

    The goods will be available on credit basis also.

    Retailers have to be segmented based on Volume,

    exclusiveness, complementary products handled and

    basic requirement of refrigeration facilities, which is a must

    for our product. These factors will be given consideration

    before incentive schemes are worked out.

    FMSFT juices will be marketed through different channels.

    All different sizes will be available at places where buyer

    buys products in greater volume;

    - 26 -

  • 7/31/2019 Copy of Full and Final

    27/30

    INTRODUCES NEW FLAVORED JUICES

    Supermarkets

    Discount stores like Big Bazaar, Apna

    bazaar, etc.

    Hyper Mall

    Petrol pumps

    Chemists, General and Convenience stores

    Health clubs, Gym, Gymkhanas, Ice-cream

    parlors etc.

    Entertainment zone: Theaters, Cinemas,

    Parks, Amusement parks.

    Hotels & Restaurants

    Bakeries

    The effectiveness of our channel will only be known when

    we assess our chosen channel on the following criteria:

    Are the customers expectation been met by us?

    Are the channels serving the targeted segments?

    Are our intermediaries motivated?

    Future thought on distribution:

    In the plan to go international our FMSFT juices will be

    available in Japan, France, Greece, Hong Kong, Macao

    and China mainland in the future.

    Promotional Strategy:

    The promotional efforts will be on two fronts i.e. on our

    direct customers and the end consumers. This should

    - 27 -

  • 7/31/2019 Copy of Full and Final

    28/30

    INTRODUCES NEW FLAVORED JUICES

    ensure FMSFT juices 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

    FMSFT juices.

    FMSFT juices 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.

    ADVERTISINGAdvertising 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. The combinations of TV channels will be

    used at different intervals. The channels will be selected

    keeping in mind our target

    Audio:

    - 28 -

  • 7/31/2019 Copy of Full and Final

    29/30

    INTRODUCES NEW FLAVORED JUICES

    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.

    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.

    World Wide Web:

    We will make our presence felt on the internet by hosting a

    website for the brand which will be named

    www.FMSFTFOODS.com .

    Time frame

    - 29 -

    http://www.fmsftfoods.com/http://www.fmsftfoods.com/
  • 7/31/2019 Copy of Full and Final

    30/30

    INTRODUCES NEW FLAVORED JUICES

    An assortment of promotional tools will be used to

    increase visibility but the promotional activities will be

    concentrated differently with relation to the seasonal

    pattern in the country.

    Marketing communication budget:

    In the initial period the marketing communication budget

    approved by the company is Rs. 80 lakh to maximum of 1

    crore. Later when our product portfolio is expanded i.e.

    within a span of one and a half years from commencing

    operation the company will adopt the percentage of sales

    method i.e. the company plans to spend 15% of sales on

    promotional activities.

    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.FMSFT.com.

    Conclusion: