new market plan

8/4/2019 New Market Plan

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Product and Brand Management

Presented by

Sanket Deshmukh (C-08)Vineetha Menon (C-19)

Sterling Institute Of Management Studies


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The youth(Knowledgeable ,trendy, ambitious,

Responsible and energetic), who will be the next

generation to mould the countrys future.

Since it is a FMCG product, the sales of the product willcome from middle class and upper class households.

Target marketTarget market


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Jagoo Re campaign .

Jaago Re as a campaign urges the

youth to take a stand on various issues

such as voting and corruption and do

their bit thereby encouraging them to

be the change they want to see.

Unique selling propositionUnique selling proposition


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Taste and Quality at affordable price.

Customized tea offerings depending on the tastes. Regional Brands are Kanan Devan, Gemini and

Chakra Gold.

Refreshing Aroma.

Value to ConsumersValue to Consumers


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SWOTSWOT


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56 Tea gardens in Assam , Kerala and Tamil Nadu. These

plantation will help to imbibe the flavors of these regions

into the tea .

Tea is considered as a health drink (known for its

antioxidant properties)

Demand for tea has been growing at some 2% per annum

and should accelerate further

StrengthsStrengths


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Indian labor laws, do more harm to industry and labor.

Labor intensive industry so related problems.

Limited scalability; its a US $ 5 billion market globally and

growing at a very slow pace.

WeaknessWeakness


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Biggest opportunities in rural market.

Visible trend towards the health drink; up to the tea industry to

make aware consuming population of the facts. Tea has a distinct advantage over more popular beverage

coffee .

To make tea more acceptable and fashionable like coffee.

To come up with new flavors/formulation of the tea.

OpportunitiesOpportunities


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Regional players offering mediocre products at low prices

or with attractive promotions .

It is perceived as being old fashioned and less functional

than some substitute products.

To retain young population from being lured by

multinationals to aerated and flavored drinks.

Labor problems .

Competition from regional and local players.

ThreatsThreats


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CompetitorsCompetitors


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Hindustan Lever Ltd.

Tata Tea Ltd.

Duncans Industries

Wagh Bakri Ltd.

Private Label

Goodricke Group Ltd.

Golden Tips Tea Pvt.

Hasmukhrai & Co

Girnar Food & Beverages

P ltd

Sapat Packaging

Industries

Top 10 Tea Companies In IndiaTop 10 Tea Companies In India


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The median price for a 250-gm pack in northern India, Tata Teas

main market, is approximately Rs 42.50 .

The largest segment of the packet tea market is economy at 61 per

cent where the average tea price is less than Rs 145 per kg;

Followed by the popular segment where pricing is in the Rs 145-180

per kg range and then the premium end beyond Rs 180 per kg.

Pricing strategyPricing strategy


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Media

TV

Print

POP/POS

Banners

Marcom Mix

Advertising

Sales Promotion : Sachet

Public Relations Message strategy

Messages in Hindi or regional languages and English.

Media selection

Compelling benefits

PromotionPromotion


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Achieve target sales of 4000 kg/day.T

he strategy used toaccomplish this objective would be to advertise by using all mediavehicles selected, which will position Tata Tea to be the best qualitybeverage among target market.

After six months strategy of Tata Tea will shift from selectivedistribution to intensive distribution slowly, there by maximizing thenumber of retailers.

Once the awareness has been created, the main objective will be toincrease the market share. The aim will be to achieve an increase in

the market share of approximately 15% in the first year.

Producing a positive cash flow hence increasing the growth rate ofTata Tea will be another objective.

Marketing ObjectiveMarketing Objective


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BUDGETBUDGET


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Month Feb-May Jun-Sep Oct-Jan Total

Frequency 60 121 121

Cost(lac) 952.9008 1905.8016 1905.8016 4764.504

The ad will accentuate on the differential features andbenefits.

The preferred time would between 8:00 - 10:00 at night.

Advertising Expenses (TV)Advertising Expenses (TV)


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Cost(lac) 571.74 1143.48 1143.48 2858.7024

These will be placed in cities of south India, SouthWest and South East India.

Malls , highways will be our main targets.

Advertisement (Billboards)Advertisement (Billboards)


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Cost(lac) 190.580 381.160 381.160 952.9008

Advertisement on RADIOAdvertisement on RADIO


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COST ON MEDIACOST ON MEDIA

0

200

400

600

800

1000

1200

1400

1600

1800

2000

1st Qtr 2nd Qtr 3rd Qtr

TV

boardning

radio

newspaper

magazine


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Samples in form of sachets will be distributed in retail stores on

the basis of customers buying items more than 100Rs will be

given 2 Sachets to induce people to try Tata Tea. This will be for

3 months.

1000 sachets per month

for 3 months 3000 sachets.

Cost of one sachet Rs 2.64

Total Cost Rs 7,920

Sales Promotion (SAMPLES)Sales Promotion (SAMPLES)


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If customers bring 10 Tata tea packs they will be

getting 200 Rs card worth of balance.

Total Cost of Cards Rs 32,000

Patronage AwardsPatronage Awards


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Dispensers will be placed in 10 different localities where theexistence of our target market is at maximum.

Dispenser cost @ 1750 Rs 17,500

Cost of ingredients Rs 6,800

Total Cost of Free Trial Rs 24,300

Sales Promotion (FREE TRIALS )


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Scratch cards in every fifth pack of tea.

Cost of Scratch cards ----- Rs 100

Total teabags sold with

Scratchcards (units) ------ Rs107

TOTAL COST OF SCHEME ------ RS 10,700

Schemeto inducethesalesSchemeto inducethesales


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Top Retailers will be given 100 Packs per month forthree months 300 Packs.

Cost of 300 Packs Rs 6,600

Grand total of sales promotion = Rs 82,208

Scheme for retailersScheme for retailers


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SALES FORECAST


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Sales per day (Rs) ---- 720,000 Sales per day (Kg) ---- 4500 Sales per year (Rs) ---- 259200000

Sales per year (kg) ---- 1620000 Revenue per year (Rs) ---- 421,200,000

Sales per 3 months ---- 405000 Kg Revenue per 3 months ---- 105,300,000 Profit in three months ---- 10,530,000


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0

50000

100000

150000

200000

250000

300000

1st Qtr 2nd Qtr 3rd Qtr

tea bags

speciality

loose tea

Sales ForecastSales Forecast


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Profit expected

0 1000 2000 3000 4000

1st Qtr

2nd Qtr

3rd Qtr


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On August 2nd The Product will be launched and its scale would be metro city

wide.

On August 17th, September 7th, October5th advertisements will be published inleading newspapers.

After six months of Launch, the company will commence a downward stretch, and

will launch a dust tea which will be targeted to lower class income segments.

On alternate days advertisements will be launched in different channels on thebasis of two fixed spots, i.e. 7:30 and 9:30.

Advertisements will place on Magazines once every month.

On month end Distributor will visit each retailer and give the compensation on salespromotion schemes, company has chosen

The company will participate in melas, trade shows, and exhibitions of all kind toincrease the awareness of the new launch.

Action PlanAction Plan


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THANK YOUTHANK YOU

new market plan

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