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Corporate Social Responsibility

GROUP MEMBER

Madiha Zahoor Mahwish Naz Mohammad Adil Ibrahim Parker

INTRODUCTION

The corporate belief that a company needs to be responsible for its

actions – socially, ethically, and environmentally.

EASTERN PRODUCT (Pvt) LIMITED

Eastern products (pvt) limited is one of the emerging company in Pakistan.

The Owner name is Mr.Haaji Mohammad Yaseen. The company started this business in 1991 with

the philosophy to satisfy their customer needs.

Cont…

The company deals particularly in tea industry having 3 brands of tea i.e. vital, surhan and dawn.

Moreover, It has now entered in soap industry and launched a cleansing agent as vital soap.

COMPANY’S VISION

The vision is to “Adding vitality to life and meeting everyday needs for nutrition, hygiene with brands that help people feel good, look good and get more out of life”.

COMPANY’S MISSION

The main goal is to produce the most reliable and valuable products and services to core competency in blending and packaging technology.

CEO's Message:

He started this business in 1991 with the philosophy to satisfy customer needs, by establishing strategic relationships with all distributors, retailers and end buyers.

They will continue to have a strong competitive position in today's market place furthermore, will strengthen the company's capability to serve the tea industry

MARKETING MIX

The four of marketing Vital Tea are as follows: Product Price Placement Promotion

PRODUCT

Trade name: Vital tea, an Eastern Product (PVT) Limited The actual product: Tea Beverage

Cont…

Branding: Yellow aspect of refreshing, hard pack and softpack both also tin pack and plastic Packing.

PRICE

Vital Tea has never wanted to compromise on quality so they adopted value based pricing.

We can say that its price varies according to cost and even in high quality

PLACEMENT

Vital tea has a distribution network spread across the large area of Pakistan.

It has its headquarter in Haroon Abad. More than 200 distribution offices all over

Pakistan It has 50000 outlets in Pakistan.

Cont..

Vital Tea has distribution channel as follow: 

MANUFACTURER OF VITAL DISTRIBUTORS

RETAILERS

CUSTOMERS

PROMOTION

The company promote its product throughelectronic media. Television:Vital Tea spends on television advertisement.Commercial during cable network movies, TVshows. Magazines:Akhbar-e-Jahan, Fashion& Business Magazine.

SWOT ANALYSIS

STRENGTHS Experienced and Quality Management. Highly Innovative. Strong Company image Quality & Variety Effective & Attractive

Cont..

Weaknesses High prices of the Product Substitute Products Lack of Advertisement Comparatively less Frequent Schemes and Discount Packages.

Cont..

Opportunities Brand is the part of traditional drinking habits Comparatively less product prices Export in other country making its image in

Pakistan. Launching of tea Bags.

Cont..

Threats Strong completion in rural and urban areas. Internationally increasing tea prices. Political conditions in the country may be

obstacle to exports.

How company is affecting environment

Company is making a massive hurt to the environment.

It is producing harmful carbon dioxide and polluting the air.

It is also using natural resources and utilizing them in a bulk for maximizing the profit.

Model of Corporate Social Responsibility:

As company is having considerable profit with significant sale of its product so we plan a model of CSR for it.

For the purpose of formulating CSR plan, we have placed our emphasis on the people of THAR, where the people particularly living in desert their life in left on the mercy of rain.

Severe concerns over Thar Kohistan, Sindh:

There are at least two years of no rainfall in every decade when famine conditions occur in Thar and Kohistan.

Total of 243 deaths have been reported this year out of them 133 are children alone.

Approximately, 175,000 families are reported to have been affected by the drought

Cont…

Marketing campaign

We will start a campaign by the name of Zindagi Bachao .

In this we will emphasize that buy our product and a part of it will be spend to betterment of Thar people.

More CSR adds will be placed for the awareness of customers.

Our budget for Thar

Fund of food and water 25 million

Fund for providing medical aid 6 million

Fund for transportation of people and animals during drought

9 million

Total budget 40 million

Cont…

As eastern product (pvt) limited is a big company so there is a huge amount that we can invest on CSR.

This budgeting is based on company’s gross profit is 4 billion rupees.

Cont… It is general practice (not a benchmark) of the

companies which are ethically enrolled in CSR program that they set their 1% of the gross profit for the sake of this responsibility.

So, AssumeIf company’s gross profit=4 billion rupeesThen,1% of GP=40million rupeesWhich is equal to required bugdet.

CONCLUSION Eastern company prefer their brand equity in

their products. The marketing strategies are quite satisfactory. However company needs to involve in CSR

activity in order to maintain the brand image and to reduce the environmental crises.

RECOMMENDATIONS

It is highly recommended to be socially responsible for the company because its earning profit through many natural resources.

Recommended CSR plan will help them to increase the profit and brand image in long term.

Cont…

The business of business should be about money and profit we have made a plan that does not effect our profit as well increase the profit by touching people hearts.