MUHAMMAD ASAD JAVED

Marketing Management

Master in Business Administration

Project Submitted to Sir Sharjel Zubair

New Product Launching

Company Product

Fresher Juice Background

The parent company of Fresher is Al-Hilal industries. Al-Hilal was established

in1960 and they launched their first production in 1962 that was Sultan Banaspati

cooking oil and after about 40 years they have now shifted introduction of juices.

The main policy of Al-Hilal industries is PULL policy rather than PUSH policy

that is they want to place their product on shelves first, they want maximum

placement and then advertise their product. They have placement is Lahore,

Karachi, Islamabad, Faisalabad and Multan. They want focus branding as

their main focus is on group a people. Al-Hilal doesn't compromise on quality as

per its name Hilal means pure and in near future they are planning to launch water

called Blue, rapsel oil and carbonated fruit drinks called kooler. Introduction:

Fresher is a new product launched by Al-Hilal industries. Other

industries like AL-HILAL FOUNDRY & WORKSHOP (PVT) LTD. AL-

HILAL VEGETABLE GHEE MILLS (PVT) LTD.

Situational analysis: The situational analysis covers the following key areas:

Current Products

Current Target Market

Current Distributor Network

Current

Competitors

Financial Analysis

External Forces

Current Products:

Fruit juice by AL-HILAL: Boomer is a soft drink by Al-Hilal who has launched juices like Fresher and

Kooler. Fresher is a famous one whereas Kooler is a new drink which is seen less

in market. After very little time of launching Kooler, Al-Hilal launched their soft

drink with the name of Boomer.

Product attributes:

Packing: The juice packed in the quantities 500ml. Packaging is done on imported

machinery as it considered being highly sophisticated and hygienic.

Storage: Products will be stored in cool dry store before distribution because it is a pulp of

juices and affected from sunlight and moisture.

Product Shelf life: Fresher Juice in 500ml serving packs have better shelf life and have shelf life

of less than 6 months.

Packaging Material Used: Heal th and safety a re d i rect ly l inked wi th the packing mater ia l

used and people are much concerned about it. That is the primary reason why

packaging has been used by Al-Hilal.

Features:

Here are of the some features of our product: Fresh original fruit juice

Provides proteins and minerals (vitamin-c, sugar, protein and sodium etc.)

Provides vitamins

Beneficial for kidneys there are many nutrients that show the best

effect.

Excellent in taste all flavors.

Gives freshness like original taste.

It is not harmful to anybody, processing of all fresher juices are pure and

healthy.

Qualities of Fresher juice: Larger availability. Good range of flavors like

Orange

Strawberry

Guava

Falsa

Peach

Mango.

Standardized and attractive packing that attracts the customers’. Large

promotion and market coverage.

Product Strategy:

Nature of the product: Everyone has their own ideas about replacing essential body fluids, vitamins

and minerals - whether it's after exercise or just a tiring day at the office. Fruit

juice is still one of the best ways to refresh the body's essential nutrients and it's

a natural source of energy. Common People especially young generation is

inclined to have ready to consume drinks; in addition hotels, hospitals are also

expanding day by day where juices could be marketed successfully.

Give values to the customers to delighting them.

Do whatever it takes not to satisfy the customers but retain the customers.

In order to accomplish this objective, the company has established sales,

marketing and support teams.

Fresher juices: Flavors available: Orange

Strawberry

Guava

Falsa

Peach

Mango

Pricing Objectives: The objectives of Fresher Juices for pricing are as follows:

Pricing Strategy: Al-Hilal when introduced fresher juice in the market set the Price at PRs.

40/- while the competitive price was PRs. 35/-. This above average price

was due the better quality product and a new Juice Brand by a well knows

Juice Company and Industry giant like:

To achieve a target return.

To maximize profit.

Stabilize prices to meet competition.

Market share Leadership to increase the market share.

Product Quality Leadership to give the quality to the customers.

Factors Affecting the Price of Fresher juice: The following are the same factors that are affecting the price of Fresher Juice:

They are using the expensive technology.

The transportation, roads are not in a good condition

The unstable politicians, which have positive and negative effect on the

price.

The labor cost is low in Pakistan as compare to the others.

The advertisement is increasing the cost price of it but this is necessary.

Due to increase in taxes the price of them is also increased.

They are using good quality packing which increase their cost.

The distribution network includes the distributor then the wholesaler and in the end

the retailer. Again benefits are provided on the achievement of the sales targets and

timely delivery of products. In some cases products are provided to big retailers by

the distributor itself but mostly it is being purchased by the retailer from the

wholesaler.

The Channel of Distribution: Market

Local seller

Whole seller

Fair Price Shops

Distribution Strategy: Through the heavy advertisement the distribution can be affected because the

distribution mainly depends upon the demand. In the Fresher they are using the

above channel for distribution the product.

Some of people who wants to purchases very heavy amount of the Fresher juice,

they come to the company directly and buy which is required.

The whole seller are purchasing them for the resale able purpose but less than the

first once.

Distribution Areas:

Distributing in major cities such as: Lahore

Karachi

Islamabad

Storage: Company has the stores to store the juice packets before the juice goes for

distribution.

Demand situation: Company always has the backup store juice to fulfill this demand.

Handling order: To deliver the right quality and quantity of the Fresher juice, they are working on

the daily bases. They have transport to achieve all the things according to their

product. For distribution they are always have the future planning.

Promotion: Al-Hilal is using following mediums for promotion of Fresher juice:

Advertisement boards

Television

Radio

Newspapers

Broachers

Internet

Doing these things according to the plans, for example

Now wants to advertise the product more through media by using the

famous people

Large discount for the people who purchase the Fresher juice directly from

the company and in large amount

Giving free samples to the people who visit the company.

Stale operations are functioning in which they are giving the free testing

samples

Target: The target fragments for Fresher the people using juices instead of the soft

drink like Coke and Pepsi.

External forces: Trends, events, conditions that are external (usually uncontrolled by the company)

that may impact the company’s products or the market:

Areas of consideration: Environmental

Social and cultural

Demographic

Economic

Technological

Political

Legal, regulatory, ethical

Environment: The interest is in environmental trends and events that have the potential to affect

strategy. This analysis should identify such trends and events and the estimate their

likelihood and impact. There is no control on environment so it effect the products

of specially juices.

Socio cultural: Company’s concern with current or emerging trends in lifestyle, fashions, and

other components of culture and there implications these represent the

opportunities and threats according to the market and products.

Demographic: Demographic trends affect the market size of the industry (growth rate, income,

population shifts) these trends represent an opportunity or threat so it is also

affected.

Economic: Economic trends have an impact on business activity (Interest rates, inflation,

unemployment levels, energy availability, disposable income, etc.)That also

impact the company’s products and the market.

Technological: The existing technologies maturing and technological developments and trends are

affecting the industry product.

Political: Government bureaucrats able to carry out decisions, On the basis resource

allocations made, the bureaucracy facilitate or retard the development of the

organization that are affecting the industry product and market.

Legal, regulatory, ethical: Changes in regulation are possible, their impact be on industry, tax or other

incentives are being developed that might affect strategy development.

Marketing Strategy and Marketing Objectives: This section consists of three major issues:

Marketing Strategy

Financial Objectives

Marketing Objectives

Identify Marketing Strategy:

Marketing analysis: The company’s strategic planning is exactly in accordance with the mission and

goal of the company. The process of developing and maintaining a strategic fit

Between the organizations goals and capabilities and it’s changing marketing

opportunities. It involves: company mission, setting supporting objectives,

designing a sound business portfolio, and coordinating functional strategies. The

company’s marketing strategic objectives are as follows:

Maintain positive, steady growth each quarter.

Experience a growth in new customers who are turned into long-

term customers.

Customer driven marketing strategy: Customer driven marketing strategy refers the strategy focusing the customer

values and customer satisfaction.

Company’s main purpose is to deliver the maximum benefit to its customers in

minimum cost. In this regard company carries out following steps for its product

and for its customers.

Market Segmentation

Market Targeting

Market Positioning

Market stability: Marketing strategy is to promote the end result. Most of the time, customers want

to know what the end result of buying product of service is going to be like. So

gives the best quality to customers remain the market stable.

Competitive analysis: In this analysis the company see that how can they take edge over their

competitors. As far as the competitors of Al-Hilal are concerned there are many

competitors of Al-Hilal in Regular fruit juices.

Company is getting edge over its competitors by following these tact and

steps

Fresher juices are offered at normal prices and give best quality as

compared to our competitor.

The Fresher has edge over its competitors with best quality penetrate the

market and achieving targets to attract the customers.

The retailer earns more profit from company by selling more product

analyze

Fresher juice comprises of 32% original pulp of fruits while Nestle juices are

called nectar juice (that which is manufactured with artificial flavors)

Competitors of Fresher Juice: 1. Vivo Juice

2. Pulpy Orange

3. Slice Mango

4. Siprus Juice

5. Nestle Juice

6. Shezan Juice

7. Rani Juice

The details about FRESHER competitors are as follows.

Vivo Juice: Vivo juices are considered as the main competitors of fresher. Vivo juice jumped

in the market and introduce same flavor as fresher does. They introduce flavors

(I).Mango (ii). Guava (iii). Strawberry (IV). Orange. But not introduce Peach &

Falsa yet.

The price of vivo juices is same as the prices of fresher just because of capture the

market. So their prices are also 40/- PRs.

Ingredients: Purified water

Mango pulp

Sucrose

Acidulent and Vitamin

Free From preservatives

Artificial flavors

Pulpy Orange: Pulpy orange launched by Coca Cola company before five years has become most

popular drink in Pakistan. Because of Coca Cola quality and brand. They have

introduced only one flavors in their fresh drink which is Orange and used orange

pulpy in it.

So the price of this drink is 60/- PRs.

Ingredients: Filtered Water

Concentrated Apple juice

Ascorbic Acid (Vitamin C)

Slice Mango: Pepsi launched their juice line. Named as “Slice”. They only introduced Slice juice

in mango flavor. Their price also low then other juice manufacturing concern as

Slice price is 20/- PRs with small packing of 250 ml.

Ingredients: Filtered water

Concentrated apple juice

Nestle Juice Nestle encourages the consumer response to Nestle orange juice that was launched

in 1996, the flavors of Nestle juice was expand with the introduction of Mango

flavor, Orange flavor. Consumer response to these new flavors has been unbeaten

and in expected to gain further.

The Nestle introduce further flavors

Red Grape, Pine Apple, Chaunsa, Guava, Simple Mango, Mix Fruit,

Siprus Juice Siprus was introduce their fresh juice last year. The company name which was

Company (Pvt.) Ltd. They introduce their only one flavor which is mango.

Ingredients Mango Pulp

Purified Water

Sugar

Stabilizer

Citric Acid

Ascorbic Acid

Artificial Flavor

Shezan Juice: Shezan juice is a brand name. Shezan company its self-control all working of their

products. They introduce their juices in the flavor of Mango, Apple, and Mix fruit,

Twist, which capture the market maximum due to their low prices.

Rani Juice: Rani juices are introduced to compete the market. They launch their products in the

flavor of Mango, Orange etc.

Big Apple: Another competitor’s product which is uses in the season that is Big Apple.

But this product is not in the competitor list because this is not a fresh juice.

Competitors Analysis:

Company Name Quality S

Vivo & Slice Juices has low share in the market. Maximum above juices are

sale in the market.

Market price comparison: Name of the Company

Price of the J

Name of Company Price of Juice in Market

Vivo Juice PR 40/- 500 ml

Fresher Juice PR 50/- 500 ml

Pulpy Orange PR 50/- 250 ml

Slice Mango PR 20/- 250 ml

Shezan Juice PR 15/-

Nestle Juice PR 20/-

Rani Juice PR 40/-

Country Juice PR 15/-

Company Name Quality Service Location Facility

Nestle Better Good Excellent Good

Fresher Good Normal Good Normal

Slice Normal Normal Good Average

Shezan Best Best Good Average

Rani Normal Normal Normal Normal

Pulpy Normal Good Good Average

Uses of these products in consumer point of view:

Nestle 70 %

Shezan 80%

Fresher 60%

Pulpy 80%

Rani 65%

Slice 75%

Siprus 20%

Vivo 20%

Fresher Juice SWOT Analysis:

Strengths:

Fresher itself (Name of brand): As name shows it provides freshness and pure & fresh quality.

Pure and natural products: Company uses the ingredients pure and good quality foods. They do not use any

kind of (cent)-flavor.

Qualified sales staff: Sales staff of the company is qualified at least masters and they preferred the staffs

that have specialization in marketing and finance.

The honest and determined employees: As compared to other companies our staff is well reputed and honest and they

determine to achieve their goals.

No complains on the quality:

The product of Fresher is pure and quality wise up in the market competitors

according to company’s point of view no complain on the quality of fresher from

customers.

Attractive packaging: The packaging of fresher juices is good and having well reputation in the mind of

customers.

Weaknesses:

Capacity Of plant: Main weakness of the company is capacity of plant.

Company does not fulfill the requirement of product in the market as compared

with their competitor Shezan mostly in summer season.

Distribution is weak: Companies distribution is weak because of fresher is available only in big cities

and not properly available in big cities. In big cities fresher is available only big

store or Marts etc.

Less Public Awareness: As Shezan juices have great perception value in minds of customers so while

competing in the market so people has no awareness about fresher because newly

launched .this is also company’s weakness.

Sugar Free: As compared with other companies most of companies gives sugar free juices but

fresher does not provide sugar free because of their pure quality. If they try to

create sugar free their quality become low.

Opportunities:

Distribution network may be increases: Fresher company may increase their distribution network throughout Pakistan

other than big cities like Gujranwala, Sargodha, and Multan etc.

Increasing the advertisement, may increase sale: At this time fresher have weak point of less advertisement. But in future they try

to increase their advertisement in print media and electronic media. By taking this

step their sale automatically increases.

May be added of new varieties-(In flavor):

Management is deciding to launch new varieties of flavor which can compete the

other competitors in the market.

Market growth: Juices market expands very fast .A new research proves that in future (2017) every

person use 185.5 liters juices per years.

Threats:

High Taxes: Al-Hilal Company’s major threat is that it is facing the high tax rates ranges from

17% to 18%.

Competitor’s prices: The competitors prices against fresher juices is comparatively low due to this itis a

competitor’s price threat facing by these juices.

Maximum sale of product is in the season otherwise low sale:

Increase in competitors: There are a large number of competitors which are increasing competition in the

market.

High packaging cost: Due to supplicated packing of al-Hilal juices it is bearing a high cost.

Current Market Situation: Fresher a product of AL-Hilal Industries arrived new in the market. It has already

captured the juice market by their different taste and packing. Fresher juice is a

fresh juice product that is going to introduce in the Lahore domestic market. We

are focusing to all levels of generation. The kids, youths, mature and olds and

overall families the prices of the fresher juice are moderate, because it is for

everyone in the society.

Distribution Strategies:

This product is distributed through authorized distributors, who are selected

on a tough criteria, I-e qualification, previous experience of the same field,

distributor’s storage place which should be neat, clean and up to the mark,

his motor vehicle etc.

Proper planning by following demand and supply rule carries out

distribution. Also the distribution strategy of the competitors is considered.

Inventory level of juices in the god owns of the distributors is always kept

more than demand so as to fulfill the demand of potential customers.

Fresher juices are distributed to all the A class superstores of high traffic

markets of posh areas. For example in case of Lahore the areas of high

availability are Model Town, Liberty, and Anarkali.

Geographic’s: The fresher juice geographic target area is currently Lahore. We are supplying our

product to all area of the Lahore. We have further divided the areas of Lahore into

4 zones.

A zone includes Gulberg, M.M Alam road, Defence

B zone includes upper Mall, Wahdat road, and model town

C zone includes lower mall, Allama Iqbal Town, Sabzazar Scheme

D zone includes Multan road, Sakeem MOR, Allama Iqbal town

Demographics: There is an almost equal ratio between male and female and also kids. We are

focusing:

Kids

Youngsters

Mature

Old age persons

Marketing Strategy and Objectives: The market strategy is based on positioning of the product in the mind

of consumers. Providing high quality Juice to the customers. We will distribute our

product on mass level so that we can maximize the profitability.

Assigns sales target according to region and seasons:

Parameters.

Sales incentives

Promotional offers.

Distributors

Wholesalers

Retailers

Through transportation

Channel management:

Fresher has lot of control over the channel

In case of fresher to Authorized distributor to retail

Shops (defined territory of distributor)

Fresher assigns a particular territory.

Distributor under an agreement.

Positioning Strategies: We want to put an image of our product in the consumers minds compare to

competitors product. We want to target the high school, college and graduate

students and government sectors that have to work hard and need to Fresher juice

them in an instant.

Targeting: We will target the following segment

Mostly youth generation

Communication Strategies:

Promotion: Actually the promotion is a first step when we are launching a new product, but we

make its strategies in last. We want to make a good image in the mind of

customers, so that they will buy only our products.

Main Sources of Promotion: Electronic Media (Sponsored to Special program Hasb-e-Haal On Dunya

news (Beautiful people on dawn news)

Print Media (Jang newspaper, Friday times, she magazine and Dalda ka

dasterkhawn)

Cable network (local cable)

Places (big super stores, pace etc.

Distributors Review: To assure the availability of its product “Fresher juice” juice has established

effective network of registered dealers. The main target of these juices is Lahore

and all over Pakistan.

The end consumer would then purchase “Fresher juice” from the retailer. The

distributors are the most reliable distributors in the region. They enjoy a flawless

reputation combined with business relations with numerous retailers even in the

rural areas of Lahore and near sides. This has ensured that

made available all over Lahore.

Marketing Organization: Fresher juices chief marketing officer holds overall responsibility for all of the

company’s marketing activities. There are other subordinates with him to help the

sales campaigns, trade and consumer sales promotions, and public relations

Point of difference of fresher juice: Consumer is considered as the king of market. Their need varies from time to time

due to change in technology, fashion, tastes, behavior and lifestyle. Customers demand 100 % calorie free juices now from which they can derive

potential health benefits.

Marketing mix strategies for segment:

Income: People having income25000 to 50,000 and above are included in the target

market.

Age: Youth an old age people are taken as the most important targets in case of

pure juices.

Gender: Females in emphasis, while males also are considered as a part of target

market.

Family size: All family sizes either small or large, either single or married all are

included in its target segment.

Life-cycle stage: That life cycle stage is given more importance which includes more young

people either males or females.

Geographic Location: A class superstores and grocery stores in the high traffic markets in posh

areas of all the cities of distribution throughout the Pakistan.

Life Style Fresher juices are highly meant for sophisticated, diet and health conscious,

smart and self-conscious people who give great importance to hygienic

food.

Use occasion: The fresher juices are a part of breakfast. But they may also be used

throughout the day. As these juices are a sort of energizers, so they are also

used after exercise.

Prior Experience: It is an important variable as far as any eatable product is concerned.

Because if any customer who has already tested theses juices and has gained

its nutritional benefits and had enjoyed its good taste odor then he/she will

surely be attracted towards its reuse.

Purchase behavior:

In the case of fresher juices the size of purchase is not very small because

they are the part of breakfast which is taken daily and are used after exercise

so are the part of routine and the brand loyal customers will purchase it on

consistent basis.

Time and location of implementation:

Activities to Be Implemented:

Sales representatives target all the untapped markets and niches, by using

current products.

Revenue objectivity should be given high attention, and it should increase by

45% every year

Product line should be extended by adding new flavors of juices.

Related and unrelated diversification in the form of eatables, made up of

fruit extracts and food pulp.

Role of R&D should be increased to help

Target markets most effectively

To get knowledge about consumers preferences.

More budget and resources should be allocated to advertisement and sales

promotion.

How Implementation To Be Done: Develop desirable skills in the employees who are assigned the basics of target

implemented these skills may include.

The ability of sales force, personnel in finance department, expert inbred

etc., should first understand the nature of the tasks or tasks importance for

the company.

To increase the ability to put right people on right jobs .i.e. the person of

finance dept. should not be given the tasks of R&D, which is highly

sensitive and innovational field.

Responsibilities for Implementation o Create the effectiveness of the personnel to focus on critical aspects of

their job.

Other remedies to enhance implementation includes:

Organizational Design: Organizational design should consist of multifunctional teams, including at least 1

member of each department to solve the problem or to achieve the targets.

Incentives: Various rewards may help achieve successful implementation. For Example in case

of fresher juices, bonuses or commission should be given to members of sales

force/personal selling teams who sales more units of juice packets

Communication: Rapid and accurate movement of information should be confirmed .To-do so

efficient and effective feedback systems should be introduced. For example in case

of fresher juice the smooth flow of information should be confirmed from a single

member of sales force / distributors up tithe brand manager and vice versa.

Critical success factors:

There are a lot of factors exist in the success of a company that may be the core

competences of that particular company. Al-Hilal is the one of the national

company, which is deal in juices. There are following of the critical success factors

of the AL HILAL

Company

Product Quality: Al-Hilal juices are offer in market with high quality in both pure and

fresh verities. Fresher offer in pure juices,

Prices Competition: In cutthroat competition al-Hilal offer best suitable prices, which it’s all type

of customers can purchase. Fresher juices available with high quality and

reasonable prices.

Financial position: Al Hilal has very strong position in all financial matters due to which it is adopt

diversification strategies and try to bring innovation in all products to attract the

new customers and retain the existing customers.

Management: Al Hilal Company has very educated and experienced management people who

cooperative and discuss each and every thing with each other so the cross-sectional

discussion is very common in al-Hilal Company.

Evaluation and Control: For evaluation and control of fresher juices conduct a comprehensive audit of all

the departments by comparing the current results of company’s objectives They get

comprehensive information from all the departments carefully and its analysis is

conducted with great care . The results are analyzed with great emphasis on the

company’s behalf. If there appears any deficit then revise their strategies

implement them and then get the results and if there are no loopholes found they

continue to implement that strategy for the specified period of time. This

evaluation conduct twice a year.

Growth: Fresher juice is presently on the growth in the business life cycle. Now it should

focus on the more customer centered approach and should introduce more

innovative and up to-date products so that it could retain more and more

customers. Fresher’s retail division is on star and it needs more investment to

maintain the present position in the market.

Conclusion: According to our observation after visiting the company and taking

information from the market we have concluded that:-

They have to make new strategy for the competitors like Nestle and Shezan.

They have large capital, so they have to spend more money in the

advertising field

They have to introduce new flavor in the market

They are going good but have to improve internal environment

They have to improve their distributor sector.

Recommendations: As we have mentioned that FRESHER needs to improve its distribution strategy.

FRESHER Is targeting youngsters as a potential so if company supply directly to

the schools, colleges and universities it removes intermediaries and due to high

profit ratio café owners will promote FRESHER Compared to other juices