majesty final

8/8/2019 Majesty Final

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EXECUTIVE SUMMARY

AMJ Group ofCompanion Limited Companies is launching a new tea brand named Majesty. An

analysis of the industry indicates the clutter and domination of the tea industry in Pakistan by a few

brands. Important point to be noted here is that in Pakistan tea is taken not as a beverage, but as

food. Therefore, making the people realize the difference in quality Majesty is sure to raise the

expectations of tea tastes and aroma. The targets of this brand are status oriented, outgoing andworking individuals who like to prefer stylish and quality product s and extremely high on taste and

are ambitious in their own fields. The marketing strategy to reach this target revolves around heavy

promotion to break the barriers of established brands and to flow the product through a controlled

network. The product stand out for the aroma and raw pieces of tea that will are reserved for

special people to make their moments special. Making the premium brand available at an economical

price range and in convenient tin and soft packs, would act as a source of protection at the time of

launch .The distribution plan is to make the brand available in the A and B+ stores of the big cities

like Karachi, Lahore and Islamabad.The goods would be pushed with the help of an evaluation and

incentive based system of distributors. The foremost element of the plan is the promotion because

tea is a product that has earned great levels of loyalty and to break the barriers of established brands

the promotion is to be carried out in two phase. The first phase is concerned with the initi ating trials

to get the target customer an idea of the quality offered by Majesty. The second phase is Brand

building efforts, which is most possibly going to start within three months of launch. These activities

would include those tactics that would create loyalty towards Majesty

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Our isionFormatted:Font: 26 pt

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Reverting back to the origin

and heritage.

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r Missi Missi

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Our purpose is to provide a refreshin up of tea to ourustomers. We are dedi ated to ivin you the

nowled e ne essary to fully appre iate the wonderfularomas of our tea leaves. We offer our premium teasdire tly from the tea rower, you are assured the hi hest

quality and freshest tea leaves in the mar et.

orporate Objectives

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ORPORATEOBJECTIVES

The objectives ofA.M.J. Group of CompaniesCompanion Ltd are:

y To launch Majes y in Pakistan.y To provide customers with high quality tea.yy To build brand image, develop immediate shelf-off take and strong

brand loyalty with the brand.

y

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y To be the leadinger in premium tea sector of Pakistan by providingoriginal Ceylon tea.

y To maintain customer satisfaction by never compromising on qualityand flavor.

y To provide customers with high quality tea.y To work as a team to achieve corporate goals.y To increase the sales of standard tea in place of loose tea in the rural

areas by launching sachet packs and soft jars.

y The hot drinks market is expected to further develop between 2005and 2010 as the population of Pakistan increases. We aim tTo achieve

the third largest markets share by continued media campaigns and

generating awareness about the benefits of tea to the health of

consumers.

y To have a long term profitable business by creating long termrelationship with our shareholders and employees.Stakeholders.

y To build brand image, develop immediate shelf-off take andstrong brand loyalty with the brand.




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Tea Tre ds iPakis a TEA TRENDS IN PAKISTAN

A Overview


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In Pakistan, a morning and evening cup of tea is an essential part of everyday culture.

This tradition has existed for many years. Every guest in a home in Pakistan is most

likely to ask for a cup of tea. This trend has always created a strong demand for tea in

Pakistan and made it the world's third largest importer of tea. In terms of tea

consumption, it is the seventh largest country. Even in summer when the weather is

extremely hot, tea is drunkminimum twice a day. During the review period, the hot

drinks market grew in both volume and value terms. Tea dominated the market in

both the retail and foodservice channels. Tea is a part of daily life.

Heal

h aware ess i creases dema d f r gree

ea a d fr i

/her

al

ea

Increasing health awareness has led to higher demand for green tea and fruit/herbal

tea. Green tea is mostly consumed in urban areas and in some rural areas. It has been

proved that green tea helps weight loss. Fruit/herbal tea alsoGreen tea experienced

significant overall growth between 20005 and 200805 because it has a remedial effect.

Dema d f r d s

ea a d s

r g

ea i creasi g

There has been an increase in demand for dust tea and strong tea in rural areas.

Consumers in the suburbs in rural areas like dust tea whereas consumers in towns in

rural areas and urban areas prefer strong tea. This increasing demand has urged

manufacturers to focus on dust tea and strong tea.

Sales f

her h

dri ks remai small

gr wi g

Other hot drinks isdrinks are the smallest sector within the hot drinks market. These

drinks are only consumed in urban areas where the media has more of an influence

and inhabitants have more disposable income.



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S

eady gr w

h ex ec

ed ver

he f recas

eri d

The hot drinks market is expected to further develop between 20059 and 20105 as the

population of Pakistan increases. It will also be boosted by continued mediacampaigns coupled with a growing western influence.

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Fac

sAa

T

ea:

y Pakistan is a tea drinking nation.y The total tea category counts to approximately 135,000 tons that is growing at a

rate of 3% each year.

y Per capita consumption is approximately 1 kg per year.

MarketBif rcati :

The main type of tea present in the market is as follows:











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I d stry A alysisINDUSTRYANALYSIS

Pakistan is not a tea producing country but is an important consuming country, being

the third largest importer of tea in the world and therefore of considerable interest to

the main tea exporting countries. Consumption in 20063 was 109 000 tones. In

addition to the substantial legal imports, large volumes are smuggled into Pakistan.,

largely via Afghanistan. Tea imports in the country rose 11 percent during the 2003-04

fiscal year to 116.94 million kg, amounting to $187.63 million, compared to 105.35

million kg worth $163.14 million during the 2002-03 fiscal year.

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Government control does seem likely to continue to decline, giving greater

opportunity for the private sector to react to market demands and compete for the

consumers expenditure. This will mean greater opportunity to actively market tea

using all the available marketing tools, including promotion, product diversification,

market segmentation, and searching for other forms and uses for tea.

As their populations continue to increase, consumption will grow,though at lower rates than previously. If incomes grow, per capita consumption will

also be stimulated, but competition from other beverages will continue to place

restrictions on this growth in tea consumption. Tea is facing small but increasing

competition from other, more expensive, beverages.

Import duties and other taxes have been declining and can be expected to encourage

increased imports from countries formerly facing higher rates, such as India. In July

2004 Pakistan reduced the import duty on tea from 20 percent to 10 percent and.

Tthe sales tax on tea was reduced to 15% and income tax to 2 %.

SWOT ANALYSIS



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COMPETITOR

Strengths:

y 100% Pure Ceylon Teay Imported Brand.y Premium Qualityy Various Packing sizes

Weaknesses:

y Low Awarenessy High Pricey Volatile Tea Prices

Opportunities:

y Low import duties and taxesy Growing populationy Ever-growing Tea Markety No other Ceylon Tea in the

market

y Brand acceptance

Threats:

y Smuggling from other countriesand black markets

y Unstable Economic Scenarioy Unstable Political Conditions


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Co petitor

AnalysisANALYSIS:

KEY:b

Yb

b

ic td e

Yell d f b

a g elh h

Sh

rd d

kh

d ed Su c re i e

TD Tac al Dae edar

LYL 7.37% BBS 11.79%

A1 3.68%

TD 11%

TFM 3%

PD 3.68%

Mezban

1.47%Mushroom

8%

Loose Tea

45%








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TFM Tar al Fa s ily Mixture

t

Dt

earl Dust

A1, 4%

BBS, 13%

Loose Tea, 45%

LYL, 8%

Mezban, 2%

Mushroom, 8%

PD, 4%

TDS, 11%

TFM, 5%

Consumption Analysis

Unilever

37u

v

w p w l

2 x y

Other Brw nds

38 y

Market Share

Unilever

p l

Other Br nds





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MAR ET SHARE

The market share ofUnilever in Pakistan is around 37% and the major competitor

Tapal has the market share of 25%, other 38% market share is held by other brands.

In Karachi Tapal is a leader with a market share of 60% and

Unilever with 17% only, Unilever teas has strong holding in the province of Punjab

compare to the Tapal who has major holding in Sindh.

Customer AnalysisCUSTOMERANALYSIS



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DEMOGRAPHICS OF PA

ISTAN:

Population: 152.53 million

Rate ofpopulation growth: 1.9%

Life expectancy: 64.10 years (males), 63.80 years (females)

Literacy: 53.0%** (rural 41.6% & ur an 69.7%

Ur an Population 44 M

Rural Population 96.5 M

PopulationGrowth rate: 2.28%per annum

Population density: 172persons per square km

Age composition: Less than 15 yrs: 41%

Earning Mem ers (All Pakistan) 1.78 M

Average household size:RuralUr an

6.67 Persons6.55 Persons

6.79 Persons

Literacy:47.1%

Estimated Num

er ofHouseholdsAll Pakistan

RuralUr an

19.01 M13.45 M6.25 M

Average City wise Population

arachiLahoreIslama adRawalpindi

10 M5.47 M0.57 M1.52 M

Year 1998

Indicators Pakistan NWFP* FATA# Punjab Sind Baluchistan Islamabad
















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SOCIAL CLASS CLASSIFICATION:

The socio-economic class ofUrban Pakistan has been divided into in to 7 classes:

SEC Proportion in Ur

an Pakistan (%)

A1 2.8

A2 3.8

B 10.0

C 18.5

D 21.6

E1 19.4

E2 23.9

Urban Sind appears to be relatively better-off province in comparison to the other

three. Amongst the metros Karachi /Islamabad / Lahore appears to be housing a

greater percentage of upper socio-economic status households.

The variable which decides the SEC classification are;

Occupation of the Chief earner Education of the Chief earner

These two variables best explain and predict the consumption, income and durable

ownership of any household.
































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A1 Class:

Most educatedHighly educated and affluent group,group in urban Pakistan.

Chiefchief earner in this class areearners in this class are professionals, businessmen

and technocrats. The class is the heaviest consumer of packaged goods and media.

with Greater per capita income and smaller average household size. Average monthly

stated income is above Rs. 500,000.

A2 Class:

A majority of the chief earners are employed. Called the eEducated and employed

class of urban Pakistan. Very particular and brand conscious, Penetration of all

entertainment and necessary durable is high. Bank account ownership of the chief

earners and housewives is relatively. Housewives in this class are reasonably well-

educated. All types of Media consumption are high. Income ranges from Rs. 100,000

to Rs. 500,000.

B Class:

Is This classa class, which exhibits the characteristics of an upper-middle class.

Majority of chief earners have college education i.aree. Ggraduates andwho are

arbusine businessmen or and executives. On an average, there are two earning






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members in aone house.hold in each SEC. Iincome ranges is from Rs. 50,000 to Rs.

100,000.







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Target

Marketand

Market Segmentation


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MAR ET SEGMENTATION ANDTARGET



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Target Market:

Our target market is males and females age 25 yrs and above of upper

upper middle

class who are non users or brand switchers. In addition to them we also plan to target

Clubs, Hotels, Airlines and Consulates. We believe that our main market is the

customers who are frequent users of tea, hence focusing the customers who are non

users would automatically attract the regular users.




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Customer Profile:

These are status oriented, outgoing and working individuals who like to prefer stylish

and quality products and extremely high on taste and are ambitious.. They are

professionals or executives who make the decision themselves. They use tea in

morning, day and evening3-5 times a day. The usage rate is very high.

Convenience:

There is a growing segment of consumer that is searching for convenient products

(tea bags for working) that suit their busy life styles. Their fast paced working and

family life implies that consumption moments will involve less planned, less formal

but more frequent and occur in more different locations.

Our customers choose among tea brands based upon quality, convenience, and to a

lesser extent, price. Although consumers may differentiate brands based on freshness

and aroma, to our knowledge few significant competitors are focusing on these two

aspects. The key benefit of freshness and the perishable nature of tea are being largely

overlooked.

Our marketing strategies are designed to appeal to a customer base that falls within

one of the most economically favorable demographic groups in Pakistan.. We believe

our customers tend to be over 25 years and above in age, well-educated with an

average household income of over Rs.40, 000 per month. Our customers are located

in the selected metropolitan areas of Pakistan.




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Segmentation

We have divided the market into the following segments:

The Busy

ees:

They are the highly busy professionals and students who want convenient in the

products. For them tea bags are the best.

The Stylo:

They are the people with more resources, emphasize on quality and stylish looking

products. They are adventuresome and like to try new products. Age normally ranges

b/w 20 to 30 years. We are takingconvenient packs out hard boxes and tins for them.

The Trial Chunk:

These are the middle income group who are aspiring to be like the upper class. They

try the small versions of premium brands. For them we have come up with 200 gm

soft pack.

The Esta

lished:








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These are educated, sophisticated, well off people of age 35 and above and prefer

established and quality brands. They are very conscious about their tea, oil, and tooth

paste and cigarette brands etc. Brand loyalty is the highest among them. For them tin

packs with appealing packing is appropriate in all variety.

Marketing

St

rat

egyMAR ETING STRATEGY





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MAR

ETING STRATEGY:

Our marketing strategy will accomplish two things: first to make the customers aware

of Majestys presence in the market and second to educate people as to what Majesty

has that others dont. The marketing budget will not exceed 215% of our gross annual

sales.

Appeal to the customers will be done through:

y Heavy advertisements in the initial phase.y Banners and flyers in the selected retail outletsyy Hoardings and bill boardsy Ads in local newspapers and magazinesy Review by a journalist in The Dawn Magazine of Sunday.y Tea dispensers in offices, airport, shopping malls and hospitals.

Growth Strategy:



















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Because Majesty is a new entry, we will have to promote it as a premium brand with

strong heritage and aroma. Our sales forecast depends on establishing a loyal

customer basewhothat drink tea regularly and prefer quality. We will expand our

presence in specialty stores, super markets and super stores. We will expand the

availability of our brand through a controlled network of distribution to such stores.

We will deliver pre-packaged tea to local distributors who specialize in items with

limited shelf life and visit stores on a daily or frequent basis to deliver products and

restock shelves. We will supply our distributor partners with a branded free-standing

rack for placement at the stores. We are targeting placement of the rack in or near the

bakery section (in Makro) or food section in other stores to avoid competing for shelf

space in the crowded tea aisle and to reinforce our freshness positioning.

Tea Tasting PLATES:

Every week we will offer our tea as a tasting at different locations. These locations

will be A and B class. Four to five small cups labeled with Majesty with appropriate

cup cakes accompaniments. These plates will allow customers to try our tea without

committing to a full jar. These tasting will be priced at Rs. 15.

Special Events:

In addition to our weekly tasting, Majesty will offer customers sponsoring events like

MovieCricket Matches, bridal show, and book fairs and painting exhibition.









Comment [L5]: Shudnt this be free ????







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Marketing Mix

Product Promotion


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Price Packaging

MAR ETING MIX


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Product

I.


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Brand name:

The brand name for the tea has been suggested as MAJESTY

, which emphasizes on the premium image of the brand.

Tagline:

Our tag line goes as below. It will appear in our print ads, TVCs, Billboards andRadio.

Special Moments, Special TeaABrand for the Stars


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UNIQUE Selling proposition:

The USP of Majesty is its aroma and raw pieces of tea that will are reserved forspecial people to make them feel the achievement of their ambitions and goals, hencefinding themselves amongst the starstheir moments special.

.Positioning STATEMENT::

Majestywill be positioned as apremium tea brand that is for a distinguished few andrefreshes mind and soul.












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II.Packaging:

Packing material for tea consists of Master /Outer Carton, MetallizedMetalized Liner(foil used inside the pack), Aactual package to cover the tea (inner pack) andBundlingbundling sheets used in the outer cartons.

Packaging: The packaging of majesty tea has been very carefully designed keeping in mind the

esthetic value, principles of packaging and preservation of aroma and taste of the tea.

We have followed a focus strategy in branding and packaging of our product. Thedistinct dark green color with majesty written in golden stands out among competitive





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brands. Green and golden colors look very elegant and blend together beautifully withstanding the contrast. Majesty comes in different sizes and pickings,SKUs, tinpacks, both soft

hard in convenience packs and tea bags. Intense care was taken tomake sure consistency must remain in the packaging, keeping in mind the visibilityand recall factors.

The tin convenient packs are launched specifically to give our product a premiumbrand image, ensuring the consumers of the tea, traditional rich taste and aroma which are the hallmark of sub-continental tea drinking heritage. An aluminum foil

covers the inside of the packs to further preserve the freshness and aroma of the tea.On the cover, it would be attractively decorated in green and golden which would bemade easy to carry, giving customers an added relief for transportation

Tin packs are round-shaped with tightening lid, which can be opened and closed quiteeasily. An aluminum foil covers the inside of the tin packs to further preserve thefreshness and aroma of the tea.Tin packs come in 1 kg and 500 gm packs.

The normal hard card board and soft aluminum foil packs come in different sizesranging from 1kg family pack (which only comes in soft pack) to 500 gm pack, and200gm pack to 125 gm pack.

100 and 50 tea bags packs will be launched simultaneously. The packing will benormal boxed shape like all competitive brands, but with distinct color and brandname of majesty.

We are also planning to launch special edition tin packs of 100 tea bags to grace the specialoccasions such as Eid. Besides we will give these packs as our promotional gift to differentorganizations.

S

Us:

Packaging Sizese





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Convenient TIN

PPacks

1 Kkilo

500gmsGrams

200 Ggrams

125 Grams

Soft Packs 1 kilo

500 gms

200 gms

125 gms

Tea Bags

100 Ppieces

50 Ppieces



















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Price

III.

I. PRICE




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Pricing Strategy

Considering the fact that the tea is a product whose industry is in the maturity stagethe launch of Majesty would have to be done such that the targets realize thepremium quality of the product. The Target that we have deduced for ourselveswould be met with a market penetration strategy.

What we plan to do is the pricing of different SKUs with different margins

since the packaging of tin packs are costing high and they are targeted to

the A class in the socio- economic class we will follow the rapid price

skimming strategy.By segmenting the mass we hope that the price can be

controlled. Since the price competition is severe here in this industry this

segmentation would offer a degree of protection.

Rapid Price Skimming Strategy

The high price of the tin packs, would create an exclusive image of the

brand that is offering premium quality tea and a packaging that retains the

freshness and aroma of the tea. With the high level of promotion we would

take a frim step in the tea industry which is already so cluttered.The

promotional plan is discussed further in the report.




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Market Penetration Strategy

The tea bags and the softthe convenient packs that are already stuck in the price

wars would have to be introduced with a price that at least encourages trial of our

product. This trial would also be supported by our promotions. The pricingwould be

done on the basis of market competitive prices, which atleast leads to the position

which would let the brand stand amongst all.

Once the product is accepted by the target customer, price revision should

be brought into focus. of the soft pack SKUs and the box of Tea bags

with 100 and 50 pieces would be priced competitive prices as compared to

the market prices.

Listprice:

The price of various SKUs is given below. The pricing strategy followed is Product

form pricing in which different SKUs will be priced differently but not

proportionately to their costs.

Packaging Size Sales Price(Rupees)

TIN Packs 1 kilo 270

500gms 125

200gms 65

Soft Packs 1 kilo 240

500 gms 125




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200 gms 150

125 gms 64

Tea Bags 100 pieces 150

50 pieces 85

Packaging Size Price

Convenient

Packs

1 kilo 360

500gms 185

200gms 75

125 gms 50

Tea Bags100 pieces 200

50 pieces 120

Pricing Policy

Since we have segmented our product SKUs fror different Social economic class we

have decided with our financial department that we will follow a different pricing

policy for Convenient packs and the tin packages and that fro the teabags and the

soft packs. Although, the raw material and the per kgcost would remain the same it is







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the margin that would differ and the cost of packaging and the kind of promotion

that would be conducted too.

y Cost-Plus PricingThis is the approach in which we would add a certain mark-up. The mark-up that

we have decided after the per packet cost calculation and after doing an analysis of

some of the companiescompanys profit margin is 38-410 %. The cost that we are

going to take in this formula would be the per unit cost of production (taking in to

consideration of the fixed cost and the variable cost for each product). We would

market our convenient packs on this basis.

y Market- Based PricingAfter having determined the market, the price of the brand is to give a better

feel of the premium quality tea that we are offering. We are making a conscious

decision of charging higher than the market average for theTea Bags, Tin packs to

demonstrate quality and come as a branded label that is not yet introduced here in,

Pakistan.

Discount

The retailers will be given a 42 % discount on the purchase of more than at least100 kg and 4 % for the purchase of more than 200 kgs 45% of the tea that is

supplied by them to the final customers. Incentives regarding this will be given to














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the intermediaries to push the product, which would include the target based sales

discount and bonuses

II. III. PLACE:

Distri

ution Network:



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The distri

uti ill

e d e i the ur

a cities

akista i.e.

arachi,j

ahore,

Islak a

ad a d Ra all i di etc. The compa ies mobile va s ill go to them

a dn

o

retail outlets on t icehrice a eekbasis. These retailers

irms places their order or

demand to the head office on eeklybasis, and then head office put for ard this

demand order to the regional

arehouse

hich distributes products to the requesting

retailersed firm. The inventory level and sales requirement ill show the amount of

tea packets required. The distributionprocess is as follows.

DISTRIBUTIONPLANNING (HEAD

OFFICE

DISTRIBUTORSS

RETAILERS WHOLESEALERS

CUSTORMERS

















48/94

Page 48 of 72

Motivating the channel mem

ers:

We will give 4% margin to the distributors. Other incentives include trade offers.

Over the long term we will offer credit terms that are competitive or better, both in

length and method of payments, such as open accountcredit account for 660 days or

longer. (4/30, n/60)

Evaluating distri

utors:

The distributor should delivers agreed targets and has excellent market coverage. The

sales will be evaluated over time by measuring ratios of our sales with competitor

sales, matching sales against past performance and monitoring inventory turnover

ratios.

Logistics:

Lead Time:

The Lead time will be three weeks to reach from the Sri Llanka. It will include the

entire process from ordering till the delivery of goods.

Shipments ofthe Imported Tea tothe Head Office:











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49/94

Page 49 of 72

The consignment of tea coming from Sri Lanka will come in cargo ships. The

suppliers of the tea deliver the tea directly to the head office. Karachi Tea Factory will

be located near the sSea Pport so the distance from the port to the factory is reduced.

There will be an outside clearance department that will deal with the customs

clearance issues.

The containers and trucks will be used for transportation from the factory to

distributors, wholesalers and retailers.

Packing Material purchased from Suppliers.

The local suppliers of packing material directly deliver the goods to the both

factoriesfactory.

Dispatchi

ng of fi

nished goods

tothe regio

nal Depo

ts

Following types of vehicles are used for the dispatch of finished goods to the regional

warehouses:

y 20 feet containers which can carry up to 1250cartons per tripy 40 feet containers capable of carrying 2300 cartons per trip

Warehousing:




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50/94

Page 50 of 72

Total warehouse capacity of is 1530 tons in Karachi near Korangi that provides

storage conditions and systems to protect against moisture, climatic conditions,

physical damage, pests or contamination from internal and external sources.

IV.Promotion

III. PROMOTION:




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51/94

Page 51 of 72

PROMOTION STRATEGY:

We plan to have two phases for the launch of the brand. The first phase is the

launching and establishment of brand name. The second phase includes brand

building efforts.

Phase iI:

Phase one will include the maximum visibility with the help of media campaign and

BTL activities. The launch ofphase I will be of 3 months in which 60% of the total

budget will be spent. The post launch phase will continue for 9 months in which the

remaining 40% of the budget will be spent.








52/94

Page 52 of 72

VEHICLESMediums:

Thevehicles mediums used will be

y Printy Electronicy BTLy Public Relations

Print:

We plan to print the ads in the following news papers and magazines.

Ne spapers:

y 27 x 4Quarter page ads in The Dawn on page 23 on Monday,Wednesday, andFriday. Cost is Rs. 257040 1,500,000. (250,000 x 2 x 3)

y 27 x 4 Quarter page ads in Tthe Dawn on page 12 on Sunday. Cost is Rs.317520.750,000 (250,000 x 3)

y Quarter page ads in The News on page 1 on Tuesday and Thursday. Cost isRs. 750,000 (125,000 x 2 x 3)

y 27 x 4 Quarter page ads in Business Recorder on Page 12 on Monday,Wednesday and Friday. Cost is Rs. 132300. 1,500,000. (250,000 x 2 x 3)

y 27 x 4 in Jang on Monday, Wednesday and Friday on the back. Cost is Rs.267300.



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53/94

Page 53 of 72

Magazines:

Specific Targeted Monthlies and Quarterlies will be chosen for the Launch and

Post Launch. The will also include a free tea bag to induce trial in the post launch

phase.These ads will be full page colored ones.

y Aurora will cost around Rs. 680,000. (20,000 x 3)y Herald will cost Rs. 75,000 (25,000 x 3)36000.y Newsline will cost Rs. 54,000 (18,000 x 3)33000.y SHE will cost Rs. 45,000 (15,000 x 3)

yy SHE ill cost Rs. 27000.y S

ynergyzer

ill cost Rs. 70,000

utdoor:

Hoardings and Pena flex boards of size 60 x 20 will be placed in the following

area.60 x 20 in

y DHA Korangi Roady North Nazimabad 5 Star Cchowrangi near the signal.y KDA scheme 33y Karsaz Roady I.I. Chudrigar Road.y Bahadurabad Chowrangi



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54/94

Page 54 of 72

yThree months cost will be Rs.1, 875,000 ((1,500,000/12) x 3 x 5)

90 by 30 billboards will be placed at

y FTC Flyovery Clifton Bridgey Shahra-e-Faisal

For three months, these would cost 1,500,000 ((2,000,000/12) x 3 x 3)








55/94

Page 55 of 72

Electronic:

Television:

4530 secTVC TVCwill be run on the following channelsduring the times submitted

in the front.:

Channel Time Cost

AAJ TV 19:15-19:30 Rs 50,000

AR

one world 8 pm to 10pm20:15-20:30 Rs 3,1540,000 (35,000 x 2 x

45)

Hum TV 18:00-18:15 Rs 30,000

AR

digital 19:45-20:00 Rs 60,000

MasalaCable TV 10 pm to 12 midnight20:30-20:45

Rs 1,275,000 (425,000 x3)70,000

Zauq Weekly show Sponsored

for a Month

Rs. 2,000,000

Radio:

EarlyMmorning Ddrive Ttime Sshows. 2530 sec Radio Spots for an early morning

breakfast Tea on FM 10189 and 91. Costing Rs 180,000 (2,000 x 2 x 45)

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56/94

Page 56 of 72

Public relations:

The public relationship activities will include

y Advertorials and press releases regarding the benefits of tea drinking, publicityof the upcoming Majesty through press relations and news releases in which

the consumers will be educated about the types of tea, the characteristics of leaf

tea and the tea process in Sri-Lanka.

y We also plan to sponsor the any upcoming cricket series in Pakistanblockbuster movie Om Shanti Om in Cineplex and Capri Cinema, with tea break

during intermission that will have hi-tea where Majesty will be served in the

mugs printed with the brand name.. Placing the Tea stall at the stadiums.

Belowthe line activities

Retail utlets:

y Shops will have service racks, mobiles, buntings and foot step that will lead toMajestys umbrella stand where the push girl will present the customers with

100 gm soft pack for trial.

y Give away will include tea cup, tray with Majestys name printed on it, tea cozyand spoons.

y


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57/94

Page 57 of 72

yLucky draws will be held in which the winners will win exclusive tea set.

POS/POPMaterials:

y Banners of Majesty will be placed in shops.y Majestys tags on hotel occupancy doorknobs.

Field ode ha ged






Underline

Comment [L6]:Now what is this ?


Underline


Underline



58/94

Page 58 of 72

y Majestys branded Tea Break mini shops will be placed in Clubs, Consulates,Karachi Gym Khana, Airport and shopping malls like Forum, Gulf,

ZamZama, Dolmen Centre and Al Madina Centre Hyderi for inducing trials

and maximizing visibility.

y Majestys tents will also be placed at Stadium for the up coming cricket

matches.

y Tea dispensers for free trialswill be placed in offices, book fairs of Oxford,Liberty books and book fair held at Frere Hall, Art counsel and Hospitals like

AKU, OMI, Mid South City and Ziauddin Oncology centre.

y

y Free samples of 100 gm will be distributed at I.I. Chundrigar

road, Tariq road and Millennium Mall.

Tea launch:

We plan to have a Tea Festival in which we will launch Majesty. The experts will tell

about the quality and characteristics of tea, the strong heritage of Sri-Lanka, tea

drinking methods and brochures will be given telling people how to prepare tea.

There will also be Tea tasters available through which people can taste our product

prepared on spot.

different flavors of Tea that are Oregon, Darjeeling, Cardimom and Green Tea.

Total below the line activities would be summed up with a cost of Rs. 1,000,000



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59/94

Page 59 of 72

Phase II:

The second phase includes brand building efforts through the following mechanisms.

Brand Building efforts:

Vehicles to be used will be:

y PRINTy ELECTRONICy BTL

Print

Ne spapers:

DAWN / Business Recorder and Jang - Quarter Page follow up Ads. Rs

2,250,000

Television

20 15 Secs brand based adoption TVC TVCs on the above various mentioned

channels. Costing Rs. 2,000,000.

Radio

15 sec Radio Spots for an early morning breakfast Tea z Evening Tea, for Rs.

500,000















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60/94

Page 60 of 72

TEA TROLLEY:

Exclusively Branded Tea Trolleys for Majesty specially made to

serve in Business meetings, Hotel Suites, Clubs, Consulates and Hi

Tea will also be available.

MediaWweightage:


Field { ode { ha| ged


Formatted: Left



61/94

Page 61 of 72

Electronic : 405%

TV 9390%

Radio 710%

Print : 3430%

Newspapers 9660%

Magazines 40%

Others

utdoor : 2130%

BTL 1522%

POS / Outdoor 785%

Events}

Sponsorships 10%
















62/94

Page 62 of 72

Ad Concept: Formatted: Font: GaramondFormatted: Font: Garamond




63/94

Page 63 of 72

We will use emotional and slice of life appeal in which different special moments

will be shown. The ad will be a 3045minuteseconds long TVC.TVC. The ad concept

is given as below:

SHOT 1:

Family Re-union:Student before exam:

The guy comes home from abroad; he is greeted by the family members. His sister

and brothers all encircle him. He appears to be tired then his youngest sister brings in

Majesty. The guy will be shown to be indulged in the aroma and takes a sip and feels

fresh.

The statement appears is Bondage of loveA boy of aged 20-22, would be shown at

the late hours of night and feeling very drowsy but eager to study for exams. His

Mom comes in with a cup of MAJEST~

and presents to the boy with encouragement

for more hard work. Next scene the same boy would be flying in the air with the

degree/certificate in hand. Tag line appears Taste the Success

SHOT 2:

Campus:Executive beforePresentation:

A group of friends will be shown. Some will be chatting, some studying, some will be

teasing each other. The cup of Majesty will be placed near them and they will be

shown having a sip in between the conversation and passing on the cup of tea to a

student who is sitting a little far from them. One of the students from the group

invites him to join and gives him Majesty cup

The statement appears will be Pass on the sweetness An executive on the chair

feeling so tired and lazy and still finalizing the presentation would appear next. A


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64/94

Page 64 of 72

colleague comes in with the cup of MAJEST

. Giving the freshest looks, he

completes the presentation and goes in the board room. All top level management

applauds him and he feels proud. Tag Line appears Pass onthe sweetness

Shot 3:

TheFamily:

Executive Board:

A young professional female will be shown giving presentation to a foreign

delegation. The delegation seems to appear tired. She hints the secretary who brings in

tea. The delegation has the tea and fresh looks appear on their faces. In the end the

deal is shown to be closed over the cup of Majesty.

The statement appears will be Taste the Success

Last scene, Wife comes in late from work. A child and husband notice it, goes into the

kitchen, prepares a cup of MAJEST

and presents to the lady. The wife happily goes

to the kitchen and made food for the family. On the dining table, every one praises

her and enjoys the meal. Tag line appears Indulge the aroma in life

SHOT 4:

A couple:

The rain is going on. The hus

and is sitting idly in front of TV switching

channels. He has expressions of

oredom on his face. His wife notices this and

goes to the kitchen where she is shown toprepare Majesty. The aroma of tea

will activate the guy and he is shown to

e

reathing the aroma. The wife

rings inthe tea and they

oth will

e shownto enjoy their cups oftea.

The statement will appear as Indulge inthe aroma of Life



















65/94

Page 65 of 72

The last tagline will appear as Special moments, special teaABrand for the Stars.

In the background the jingle will be runningthrough outthroughout the ad

The making of this ad would cost Rs. 2,000,000.





66/94

Page 66 of 72

BU

Bu

dgetin

gDGETING








Bold



67/94

Page 67 of 72

Budgeting will be done on the basis of the sales department feedback and market

feedback that will be in the form of the gap analysis. Gap is calculated by thedifference in what Majesty is selling and the amount the competitor is selling. This

will be done so that if there are certain trendis certain trend we would identify it

and expand our mark into other cities of Pakistan too. Plans will be developed

before the beginning of the year so that each aspect of the production i.e. the

financial, marketing and operations needs may be planned.


68/94

Page 68 of 72

Perf r I c e St te e t

Rupees

000 000

Sales 151,460

Cost of GoodsSold

Raw material 44,621

Packagi g 4,661

Ot er Ma ufacturi g Over ead 1,550

DirectLa or 7,430

Mac i ea d Mai te a ce 4,380

62,642

Gr Pr f t 88,818

Admi &Selli g Expe ses

Advertisi gexp 22,719

Ot er Admi & Selli g Expe se 2,500

Operati g Expe ses 7,350

Depreciation Expense 4,900

37,469

EBIT 51,349

Interest Expenses 28,100

Profit beforetaxes 23,249

Taxes 3,487Net I c e 19,762


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69/94

Page 69 of 72

Pro Forma Balance Sheet (Rupees)

Current assets 900,000


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Page 70 of 72

Fixed Assets 4,500,000

Total Assets 5,400,000

Current Liabilities 3,00,000

Long-Term Debt 2,700,000

Total De t 3,000,000

Total Equity 2,400,000



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71/94

Page 71 of 72

Sales Forecasts:

Annual Sales estimate will be revised every month according to demand every month.

The sales estimates are made on the basis of:

y Consumer demandsy Wholesalers ordersy Promotional Schemes

yWe have done a sales forecast of the different SKUs andon the basis is that of the

research that on average the tea industry has growth rate of 15% . %. We have

estimated a growth of atleast 4% in the start and then the percentage rise would be in

an arithmetic progression series.


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Pa e 72 f 72

Sales Forecast

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

years

Salesin

Rupe

Tin Packet

Soft Packs

We wishMAJESTY a longand prosperous LIFE

Find

a Star

in you,

with

MAJESTY

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majesty final

Documents