sir faheem ather haqan
TRANSCRIPT
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AKHTAR HUSSAIN ROLL NO. 133
MUHAMMAD FAROOQ ROLL NO. 121
ASGHAR ABBAS ROLL NO. 130
FAISAL NADEEM ROLL NO. 113
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ACKNOWLEDGMENTSACKNOWLEDGMENTS
All praise to Almighty Allah,The most merciful and Compassionate,
With the willingness of whom we are able toDo a project like this and
Without Whom we are nothing.
We express our gratitude to our kind facilitatorSIR FAHEEM ATHER HAQANISIR FAHEEM ATHER HAQANI
Who kept our morale high by his suggestion and appreciationHe was available to us whenever and for what ever we consulted
himWithout his precious guidance and help we would never be able
to develop this project.
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PRODUCTPRODUCT
In marketing, a product is anything that can be offered to amarket that might satisfy a want or need. However it is muchmore than just a physical object. It is the complete bundle of
benefits or satisfactions that buyers perceive they will obtain ifthey purchase the product. It is the sum of all physical,psychological, symbolic, and service attributes.
A product is similar togoods. Inaccounting, goods are physicalobjects that are available in the marketplace. This differentiatesthem from a service, which is a non-material product. The termgoods is used primarily by those that wish to abstract from the
details of a given product. As such it is useful in accounting andeconomic models. The term productis used primarily by thosethat wish to examine the details and richness of a specific marketoffering. As such it is useful to marketers, managers, and qualitycontrol specialists.
A "man" can also be an "experience", which like a service isintangible. However an experience is unique to the receivingindividual, based upon their history. Example: amusement parksoffer rides (product), acceptance of credit cards (service), andaudience participation at the dolphin show (experience). My
value of the dolphin show is different from yours, and to theextent I value it more, will trade more for it (money).
The word "product" is also used as a pejorative term to describeteenagers who have homogenized themselves in the sense theyhave become indistinguishable due to their clothing, possessions,andbrands they choose to display (at least at first glance).
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THREE ASPECTSTHREE ASPECTS
There are three aspects to any product or service:
1.1. Core BenefitCore Benefito In-use benefitso Psychological benefits (e.g., self-image enhancement,
hope, status, self worth)o Problem reduction benefits (e.g., safety,
convenience)2.2. Tangible Product or ServiceTangible Product or Service
o Product attributes and featureso Qualityo Styling
o Packaging protection and label informationo Brand name
3.3. Augmented Product or ServiceAugmented Product or Serviceo Warrantyo Installationo Deliveryo Credit availabilityo After-sale service and maintenance
CLASSIFYING PRODUCTSCLASSIFYING PRODUCTS
Product managementinvolves developing strategies and tacticsthat will increase product demand (referred to as primarydemand) over the product's life cycle. One useful technique inunderstanding a product is the Aspinwall Classification System.It classifies and rates products based on five variables:
1. Replacement rate (how frequently is the productrepurchased?)
2. Gross margin (how much profit is obtained from each
product?)3. Buyer goal adjustment (how flexible are the buyers'purchasing habits in regards to this product?)
4. Duration of product satisfaction (how long will the productproduce benefits for the user?)
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5. Duration of buyer search behavior (how long will they shopfor the product?)
TYPES OF PRODUCTSTYPES OF PRODUCTS
There are several types of products:
Consumer products: used by end users Industrial products: used in the production of other goods Convenience goods: purchased frequently and with
minimal effort Impulse goods: purchase stimulated by immediate sensory
cues Emergency goods: goods required immediately
Shopping goods: some comparison with other goods Specialty goods: extensive comparisons with other goods
and a lengthy information search Unsought goods: e.g., cemetery plots, insurance Perishable goods: goods that will deteriorate quickly even
without use Durable goods: goods that survive multiple use occasions Non-durable/consumption/consumable goods: goods that
are used up in one occasion Capital goods: installations, equipment, and buildings Parts and materials: goods that go into a finished product Supplies and services: goods that facilitate production Commodities: undifferentiated goods (e.g., wheat, gold,
sugar) By-products: a product that results from the manufacture
of another product
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CONTENTSCONTENTS
Executive Summary
Introduction Of the Product
Mission Statement
Marketing Environment Analysis
Political Conditions
Economical Conditions
Social cultural Conditions
Technological Conditions
SWOT Analysis
SWOT ANALYSIS OF Nestl
Strengths
Weaknesses
Opportunities
Threats
Pure Healths SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
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Conclusion of Marketing Environment
Marketing Mix
Product
Price
Placement
Promotion
Bibliography
EXECUTIVE SUMMARYEXECUTIVE SUMMARY
We want to describe that our this project of new product
development will help a lot us in our future marketing career.
Purpose of this project is to build our confidence and seek
marketing activities practically. In this project we focused on
how to launch a new product in the market. We also tried to
explain how to control all other marketing activities, marketing
strategies future plans other activities. For this purpose we
established a new company
PURE HEALTH DAIRIESPURE HEALTH DAIRIES
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Our this company deals with tetra pack-food items. Our product
name is
PURE HEALTH YOGURTPURE HEALTH YOGURT
INTRODUCTION OF PRODUCTINTRODUCTION OF PRODUCT
Product that we launched has frequently large use in our daily
life. People use dairy products daily. Most of people use yogurt in
breakfast. This product has healthy impact on the health of
people. It is also not dependent on any particular season or
event. The product has the quality that it does not has a negative
perception on religious, racial, color and on other social
conflicts.
Company NameCompany Name
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PURE HEALTH DAIRIES
Product NameProduct Name
PURE HEALTH YOGURT
SLOGANSLOGAN
We dont provide people Just Yogurt but pure health.
MISSION STATEMENT
Our objective is to provide fresh quality Yogurt keeping in view
all the health standards and customer demands at affordable
price.
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LOGO
MARKETING ENVIRONMENT ANALYSIS
This analysis includes complete study of marketing environment.
Every company must study its marketing environment before
introducing or launching a new product in the market. Company
should have full knowledge about its surroundings and
competitors. Company should fulfill all these conditions before
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any launching any new product in market or before taking nay
step. Therefore we have also studied the marketing environment
before launching our this new product.We have alsostudied the
environmental impact that could have an effect on our strategies
in full.
1. POLITICAL CONDITIONS
STRENGTHS
For a healthy business environment the stable political
conditions are must. At the moment the country is governed by
semi-democratic parties. But the important thing is that beside
different controversial issues among Govt. and the opposition
parties the Govt. is paying serious attention to matters relating to
trade and industry. A trade policy is recently announced by the
Govt. in which steps are taken and strategies are formulized to
develop investor friendly conditions in the country and the policy
is in very much favor of investors. The Govt. has taken serious
measures to help the investors in determining the business
opportunities. The industry and Trade department is conducting
seminars and is training the investors to formulate strategies.
The Govt. is also providing credit facilities to the investors
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through different banks and financial institutions. In short the
Govt. is making its level best and is guiding and encouraging new
investors to promote investment in the country and providing
best facilities to them.
WEAKNESSES
The biggest political weakness that discourages the promotion of
investment in the country is the absence of a completely
democratic environment. The investors are not certain about the
existence of the Govt. and its policies in the long run. As for as
the history of the country is concerned, the country has not been
ruled by a completely democratic party for a complete period.
Although the current political scenario is quite reliable but the
investors are hesitant to take initiative because of the countrys
past political achievements. Among other weaknesses are the
non-elastic and inconsistent tax structure of the country which
has also an impediment in the way to establish a new company.
2. ECONOMICAL CONDITIONS
STRENGTHS
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Economical factor plays an important role in the successful
operation of a company. At present the interest rates are low
which are very much encouraging for the investors. The banks
are offering credit to investors at very low rates and on very short
notice. The Govt. has made special arrangements to provide
credit in a very short time and SBP in the same connection has
reduced the interest charges and offered various facilities to
investors.
WEAKNESSES
The fluctuating inflation rate and the increasing unemployment
is the biggest hurdle in the way to new investment. Although the
Govt. is taking measures to overcome the increasing inflation
and level unemployment but it is not sure by that, concerning to
the past continuously changing history of the Govt. The economic
conditions of the country are not satisfactory at the moment and
the countrys economy is in depression and recession. The GDP is
not as attractive as it should be to attract new investment but it
may rise in the future.
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3.3. SOCIAL CULTURAL CONDITIONSSOCIAL CULTURAL CONDITIONS
The Social cultural Conditions have not a substantial impact on
the product by itself. Social environment has no impact on the
food items. This is because by using Yogurt social values are not
damaged. Rather we are expecting good response from the
customers, as our company is totally a Pakistani company. The
product as being the national food, launched by a country based
company is thought to be the warmly welcomed by the society as
the societys present attitude is developing more towards its
national products.
As for as the products religious impact is concerned, it does not
have an offensive image about a religion. Our target market is
mostly Muslim dominant so the product is well according to the
religion.
Another strength related to the product is that the societys
attitude is now developing towards diet and people are now more
conscious towards their health. The product has the quality to
provide people the necessary vitamins and proteins and has the
ability to help people maintain their diet.
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4.4. TECHNOLOGICAL CONDITIONSTECHNOLOGICAL CONDITIONS
STRENGTHSSTRENGTHS
The technology is moving with a rapid speed and is offering
convenient ways which are also cost effective in developing the
products. The technological environment is offering new ways to
develop high quality products in a very quick time. New machines
for standardization, pasteurization, packing products etc. are
developed which has made the production as well as other
process very cheep and made it possible to develop more
products in less time to dominate the whole market. Through
Technology the products could be maintained fresh and high
quality that can be stored for long times.
Another very recent and highly valued technological benefit that
also helps in striking the minds of consumers is the development
of internet and E.business through which companies can
compete and influence the minds of customers by offering them
information rich products.
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WEAKNESSESWEAKNESSES
Although technology is very beneficial for developing the
products quickly and at a very low price yet it has some
disadvantages as well.
Current high technological development is more beneficial for
established companies but we as a newly launched company
could not afford to update our equipments as quickly. Although
we have latest machinery but the technology is changing in days
and this discourages the infants to struggle. The old companies
due to their larger market share and economies of large scale
production could update their machinery accordingly and that
creates hurdles in the operations of companies working on small
scale.
SWOT ANALYSISSWOT ANALYSIS
SWOT ANALYSIS OF NestlSWOT ANALYSIS OF Nestl
STRENGTHSSTRENGTHS
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1.1. FINANCIALFINANCIAL
During 2002-2003 Nestl showed growth in total profit and sales
as well, in 2003, Nestl total sales had reached U.S.$29 billion. It
had become the world's largest food ad beverage company at that
time.
Nestl strong sale was due to its giant sales network around the
world. The company operated 428 factories in 60 countries. Total
company sales were 46 percent in Europe, 26 percent in North
America, with a further 12 percent in Asia and 10 percent in Latin
America and the Caribbean. (Exhibit 1)
As the financial situation were of fundamental importance to the
company, Nestl successfully strict-controlled its stock and
debtors, and centralized cash as much as possible.
Figure : Total Profit of Nestl from 2002 to 2003
NESTLE Total Profit
US$711
US$995
US$1,225
US$1,393
US$1,475
0 200 400 600 800 1000 1200 1400 1600
US Million Dollars
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Figure: Total Sales of Nestl from 2002-2003
NESTLE Total Sales
US$17,159
US$21,153
US$23,626
US$27,803
US$29,365
0 5000 10000 15000 20000 25000 30000 35000
US Million Dollars
Exhibit 1: Nestl Financial Summary (Millions of Swiss Frances)
2000 2001 2002Net sales 31,141 38,050 40,600Operating income 3,156 3,671 4,288Net income
1,487 1,789 2,038Total assets 24,474 25,095 33,169
2. MARKETINGMARKETING
A. PRODUCT IMAGEPRODUCT IMAGE
Nestl had built up a good image in the countries in which it
entered. Every year, Nestl would spend about Swiss Franc
80 millions to help the developing countries to improve the
quality of the products. Meanwhile, they had employed over
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100 experts to provide training courses to the local people in
the developing countries. All these activities could help
Nestl build up a good image in those countries.
B.B. BRANDINGBRANDING
Nestl was good at her brand management. Nestl treated
her brands as well as the brand managers were the most
important assets. Chief executive Peter Bra beck regarded
the company's brands as "Creatures with a Soul". Brands
need to be "nursed rather than managed," he said.
In addition, Nestl had 20 marketing research companies
worldwide to study the consumer behaviors in a particular
country. This builds up a brand that could suit local taste in
different region.
3. OPERATIONOPERATION
A. OPERATION PHILOSOPHYOPERATION PHILOSOPHY
Nestl original activities are in Switzerland, and account for
less than 2% of its global turnover. Nestl learned very early
to respect the social, political and cultural traditions of all
countries in which the products were produced and sold.
And she decentralized into "People and Products" oriented
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company. In other words, Nestl had great respect for the
cultures and traditions of the countries in which she
operated. Nestl believed that its activities in any country
could only be of long-term benefit to the company if they
were at the same time beneficial for that country. The
continuous and well-proven success of the Nestl Group was
based on the merit of its long-term strategy rather than
aiming at short-term only benefits.
B.
MANAGEMENT STRUCTUREMANAGEMENT STRUCTURE
Nestl had established a good decentralized organization
system. It was experienced in pushing down responsibility to
local units, which typically enjoyed a high degree of
autonomy with regard to decisions involving pricing,
distribution, marketing, human resources, and so on. In
each regional office, it had the power to do the best analysis
and decide the most suitable taste and preference for the
products, in order to adapt to the country difference.
HUMAN RESOURCESHUMAN RESOURCES
In Nestl, the human factor played a prominent basic part in
company strategy. She devoted to developing and fostering
managers and training employees so as to raise product
quality. In 1963, Nestl already set up a large Nestl training
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center to provide employee with different knowledge and
technology about making instant products. Besides, Nestl
achieved good human resources management by making few
rungs in the management ladder.
C. RESEARCH & DEVELOPMENTRESEARCH & DEVELOPMENT
Nestl emphasized the quality of the Yogurt. Before starting
production in one country, it would send a team of Yogurt
experts to do the research of the local milk quality. Also, as
there were about different kinds of Nestl Yogurts, Nestl
would do the test experiment in that country to ensure their
tastes was subject to the different preferences of consumer in
different countries
WEAKNESSESWEAKNESSES
DISTRIBUTIONDISTRIBUTION
In Pakistan, Nestl lacked an established distribution network to
transport raw materials to factories and the finished goods to the
wholesalers or retailers. This weakness would increase the
distribution cost of Yogurts.
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SOURCING OF RAW MATERIALSOURCING OF RAW MATERIAL
Milk is the major raw material of Nestle Yogurt. Nestl usually
procured milk from one farm that produced high quality milk.
However, reliance on one farm would reduce its bargaining
power on suppliers.
OPPORTUNITIESOPPORTUNITIES
1. HUGE MARKET POTENTIAL1. HUGE MARKET POTENTIAL
In Pakistani markets still there is a large potential available for
the manufacturers to introduce the Yogurt because for a time
being Yogurt producers didnt cater the whole market which
opens a window for a manufacturer to come in the market as
Yogurt supplier in tetra packs.
11. URBAN REGION BLOOMING11. URBAN REGION BLOOMING
So far Nestle has targeted the main cities like Karachi,
Islamabad, Lahore & Multan etc but the cities like Hyderabad,
Mansehra and other developing cities were ignored in the past
but now they are also very lucrative areas to be dumped by
consumer products.
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THREATSTHREATS
1. CHALLENGE OF SUBSTITUTES1. CHALLENGE OF SUBSTITUTES
When we talk about tetra pack Yogurt CDL has emerged as a big
threat for all the Yogurt producers. Similarly at the same time
Halla has been in the market over the period and is maintaining
its reasonable share in the market so this is one area where
Nestle has to ponder over to surpass these close competitors.
11. LOW PRICING OF OTHER BRANDS11. LOW PRICING OF OTHER BRANDS
The prices at which the other companies are offering their Yogurt
are comparatively very low as compared to the Nestle Yogurt that
affects the market of the Nestle
Average consumers never go for the Nestle because of the high
price. So Nestle should have to lesser their price in order to
capture a large market share.
PURE HEALTH,S SWOT ANALYSISPURE HEALTH,S SWOT ANALYSIS
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The SWOT analysis covers strengths, weaknesses, opportunities
and the threats. Strengths and weaknesses are generally internal
factors, which we can address by changing our business
activities. Opportunities and threats are generally external. But
before setting strategies there should be a process, which should
be carried on while setting strategies. This process is normally
known as SWOT analysis.
S: StrengthsS: Strengths
W: WeaknessesW: Weaknesses
O: OpportunitiesO: Opportunities
T: ThreatsT: Threats
STRENGTHSSTRENGTHS
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1 . QUALIFIED AND EXPERIENCED MANAGEMENTQUALIFIED AND EXPERIENCED MANAGEMENT
We have hired experienced managers who are qualified from the
worlds renowned business schools and have a great exposure in
serving leading firms in the industry. All of them have strong
innovative skills and they are enthusiastic and are focused to
make their countrys firm as the worlds largest food firm by
focusing to capture the markets of Jhang and Sargodha in the
initial stage of their long journey.
2 . LATEST EQUIPMENTLATEST EQUIPMENT
To ensure quality and curtailing the cost we have the latest
machinery and equipments. We have the latest machinery that
is now in use in most of the international firms.
33. PERSONAL DAIRY FARM. PERSONAL DAIRY FARM
We have a well established and well-managed personal dairy
farm to get the best quality raw material used in the production
of yogurt at the right time. By having our own dairy farm we do
not have to rely on any suppliers.
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44 . MOTIVATED AND INNOVATED EMPLOYEES. MOTIVATED AND INNOVATED EMPLOYEES
Employees are the most valuable assets for any company and
they play a key role in its success. Fortunately we have a pool
of the best and hardworking employees in the market. Our
Human Resource Department has recruited employees with
having innovative skills and they are masters in their work
area.
55. STRONG FINANCIAL POSITION. STRONG FINANCIAL POSITION
As compared with most of our competitors we have a sound
financial position and credibility in the eyes of financial
institutions. We have a very handsome balance sheet and
valuable assets.
6 . PERCEPTION OF BEING THE NATIONAL6 . PERCEPTION OF BEING THE NATIONAL
As the recent trend of the society is moving towards buying
the national products so we have a competitive edge on most
of our competitors as being the nationals.
WEAKNESSESWEAKNESSES
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1 . NEW COMPANY---- LESS RECOGNITION AMONGNEW COMPANY---- LESS RECOGNITION AMONG
CUSTOMERS AS COMPARED TO COMPETITORSCUSTOMERS AS COMPARED TO COMPETITORS
As our company is new in the industry and there are already well
established brands in the market we would face a strong
competition in terms of price, packaging and positioning of our
brand in the at a desirable place in the minds of the consumers.
22 . LIMITED KNOWLEDGE OF CUSTOMERS. LIMITED KNOWLEDGE OF CUSTOMERS
As we are launching our first packaged product in the market so
we have little idea about the consumers attitudes, behaviors and
response towards our product. We cannot pre-assume the
response of the customers.
33. DISECONOMIES OF SMALL SCALE PRODUCTION. DISECONOMIES OF SMALL SCALE PRODUCTION
As we are launching the product only for Sargodha and Jhang
region, our production is at small scale and because of strong
competition we have to emphasize on intensive advertising
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campaigns we have to face the diseconomies of small-scale
production.
44 . LACK OF OWN DISTRIBUTION CHANNELS. LACK OF OWN DISTRIBUTION CHANNELS
As we are newly established we do not have our own
distribution channels to place our product. We have to rely on
some private firms to make our products available on the
right place and at the right time throughout the whole market
(Sargodha/Jhang).
OPPORTUNITIESOPPORTUNITIES
1 . PRODUCT LINE EXPANSION1 . PRODUCT LINE EXPANSION
Our personal dairy farm can provide us an enormous support
in increasing our product line by offering products like Desi
Ghee, Butter, Cream and Cheese.
2 . MARKET EXPANSION2 . MARKET EXPANSION
We can expand our market in future to the entire country and
across the country as well.
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THREATSTHREATS
1 STRONG AND SOUND COMPETITORS1 STRONG AND SOUND COMPETITORS
Major threats to our company are of two kinds on dealing in
packaged yogurt and others selling loose yogurt. The loose yogurt
centers are large in numbers and are widely spread especially in
Sargodha region. The multinational firms like Nestle are well
established and have their desired positioning in the minds of
consumer.
2. LESS INCLINATION TOWARDS PACKAGED2. LESS INCLINATION TOWARDS PACKAGED
PRODUCTSPRODUCTS
The consumers especially in Sargodha and some areas of Jhang
are more inclined towards loose yogurt centers because of their
cultural backgrounds.
3. CONSUMERS USUALLY DONT APPRECIATE NEW3. CONSUMERS USUALLY DONT APPRECIATE NEW
PRODUCTSPRODUCTS
The trend, as we have experienced in this region through survey
is that majority of the people dont appreciate new companies or
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new products except for those companies who have high
credibility in the market.
CONCLUSION OF MARKETING ENVIROMENTCONCLUSION OF MARKETING ENVIROMENT
With the help of an intensive study of the entire market in its
whole perspective it has come to know that the overall
environment is not much in favor of new firms. Because of semi-
democratic ruling and the presence of well established
competitors holding major part of the market it seems very
difficult for a new firm to make its place in the market and
position its product easily.
The political, economical (to some extant) and technological
environments are more in favor of previously established firms
and thus making it difficult for the new ones to enter. In reality
every firm has to spend some time and develop its strategies
according to the environment. But at the moment the
environment is not consistent politically, economically as well as
technologically. The interest rates, inflation rate, Govt.
strategies, policies, rules governing trade and industry in the
country are changing very frequently. Also technology is
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changing rapidly. This has placed impediments for newly and
less experienced firms to enter and survive in the market.
However the socio-cultural market is bending in favor of national
base firms as ours, the attitudes of people is now changing from
foreign products to national product as the Anti Muslim
campaigns are growing in progress by the foreign countries thus
encouraging the local firms to expand their operations.
MANUFACTURING PLANMANUFACTURING PLAN
We have a well plan about
Facility
Inventory management
Human resources
Operational management
ENTREPRENEURIAL TEAMENTREPRENEURIAL TEAM
We have hired experienced managers who are qualified fromthe most recognized institutes of Pakistan. They are best in
their fields. All of them have strong and great skills andabilities to take a business from low to a high peak.
MARKETING MIXMARKETING MIX
1. PRODUCT1. PRODUCT
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PRODUCT NAMEPRODUCT NAME
Pure Health Yogurt
The product is named based on its quality level and on the
companys strategy and its vision to provide high quality
products to its valued customers not only to increase its market
share but also to provide fresh and delicious yogurt to its
customers that will give them strength and protection against the
adverse effects of diseases and ultimately increase their life.
PRODUCT STRATEGYPRODUCT STRATEGY
As we are a newly launched company and we have no pre-existing
customers, we have to position our product in the minds of the
customers and consequently in the market with the help of our
effective and customer oriented strategies.
Keeping this in mind we have conducted a survey of people
belonging to different age groups and social classes. In that
particular survey they were questioned about different aspects of
the product which has helped us to determine the product sizes,
packing, colors and other such attributes that customers like the
most and that our competitors are not offering at present.
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COMPETITORS STRATEGYCOMPETITORS STRATEGY
The size of the product is of much importance in the success of
the product. As for as size of the product is concerned our
competitors are offering their products in following sizes.
Nestle
500gm
200gm
CDL
500gm
Prime
500gm
Halla
475gm
Also provide yogurt in loose packs.
Loose Yogurt centers
They have no specific sizes, but they provide customers products
in sizes which they demand. Their product are also not in proper
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packing and are not developed on the basis of international
standards.
THE COMPANYS STRATEGYTHE COMPANYS STRATEGY
On the basis of product sizes offered by our competitors and on
the basis of information obtained from survey we have decided to
introduce our product in the market in the following sizes.
------------1 Liter
------------500gms
------------250gms
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COLORSCOLORS
As for as the colors are concerned most of the people have
showed their interest in bright colors without naming a
particular color, but majority of people have agreed on
the following colors to be the part of labeling the product.
---------------Blue
--------------- Red
---------------Yellow
---------------Green
PACKINGPACKING
According to the information gathered through survey the people
have stressed that the product should be offered in a packing that
facilitate customers to keep other house hold things and could be
used for multipurpose.
By keeping this in mind we have designed the packing of the
product that serves that purpose of the customers. We have
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offered the product of 250mg in traditional thin plastic packing
that is most often used by our competitors.
The packing of 500 gm and of 1liter product size is as follows.
The Big Lid opening offers a unique possibility to enter new
segments. The Tetra Top package with this opening is suitable for
highly viscous and even gelatinous products. It opens up
approximately three quarters of the package top, allowing its
content to be eaten with a spoon.
BENEFITSBENEFITS
Plastic top in different colors
The large opening is convenient for eating with a spoon
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Applicable for the Tetra Top package family Midi (200,
250, 330, 375, 400, 500 ml, 1liter).
Could be used for multipurpose and for storing dry
things.
Ability to save the product from the adverse effects of
light, heat and other environmental factors.
22 . PRICE. PRICE
Every marketing activity--------including pricing ----should bedirected towards a goal. Thus one should decide on its pricing
objectives before determining the price itself.
PRICING OBJECTIVESPRICING OBJECTIVES
There are mainly three types of pricing objectives.
PROFIT ORIENTEDPROFIT ORIENTED
o To achieve a target return
o To maximize profit
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SALES ORIENTEDSALES ORIENTED
o To increase sales volume
o To maintain or increase market share
STATUS QUO-ORIENTEDSTATUS QUO-ORIENTED
o To stabilize prices
o To meet competition
As we are in infancy and have no position in the market we have
decided to enter in the market by focusing on Sales Oriented
objectives and determine our strategy accordingly.
We have examined the prices of our competitors and determine
our prices as follows.
PRICING STRATEGYPRICING STRATEGY
Prices offered by competitors:
Nestle
CDL
Loose Yogurt Centers
Halla
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OUR PRICINGOUR PRICING
STRATEGYSTRATEGY
Cost Approximation
The total per unit cost
that will occur on the
production of the
product is estimated as follows.
Cost of milk Rs.4
Electricity Rs.2
Factory over head Rs.6
Miscellaneous Rs.5
Total cost approx. [Rs.17]
NestleProduct
Size Price500gm Rs.24200gm Rs.13
CDL500gm Rs.23
Loose Yogurt
Centers
1 Liter Rs.24500gm Rs.12250gm Rs.6
Halla475gm Rs.25Loose packing
1Liter Rs.22
Prime500gm Rs.24
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As we are new in the market and our objective is not to maximize
our profit but to capture the market we will introduce our
product at a discounted price initially. But with the passage of
time we will place our product on its real price but we have
decided to penetrate the market with low price.
In accordance to our strategy we have decided to offer the
product to customers at a discounted price of Rs.20 for the very
first month of its issue. After one month we raise its price to
Rs.23. This price is very much compatible and the offer is
substantial enough to attract a large percentage of market in a
very quick time.
As for as the retailers are concerned they are offered a margin of
Rs.1 at present. We have decided to give them a maximum
margin of Rs.2. That will helps us in promoting our product
broadly and with convenience also.
33.PLACEMENT.PLACEMENT
As for as the placement of the product is concerned we have
decided to place the product in all the major as well as minor
markets of Sargodha and Jhang. Yogurt is such type of product
which is purchased frequently and it is required on daily basis.
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We have decided to acquire the services of the largest and the
most organized distributors of Sargodha and Jhang in the
beginning. The Khan Distributors have a great name in the
market and they are also well established and have their access in
both cities. We have decided to place our products with their
services in Sargodha and Jhang by giving them some share in the
profit as per agreement.
4.4. PROMOTIONPROMOTION
Effective promotion paws they way for the products success.
There are many different ways through we can promote our
product. Actually Yogurt is among such products that have a very
wide market and it is almost equally consumed by different age
group people. Keeping this in mind we have planned a very wide
promotion strategy that covers almost every part of the society.
We have also paid serious attention to the span of intensive
promotion in the initial stages. We have supported our
promotional strategy with the use of media, printing sources and
also with the help of some schemes such as lucky draws, hajj
schemes as well as extra product in the same price. Our
promotion strategy in detail is as follows.
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PROMOTION THROUGH MEDIAPROMOTION THROUGH MEDIA
1. TELEVISION CHANNELS1. TELEVISION CHANNELS
As a wide range of our market watches TV daily, we have
decided to promote our product to that part of our target
market through TV. Since our target market includes people
belonging to all age as well as social groups so we have decided
to promote our product through intensive TV marketing. In
this connection we have made arrangements to play the ads of
our product during NEWS, Stage Shows, Dramas, Cartoons,
Morning Transmission and in other such occasions and in
such program that convey our message to maximum people
belonging to our target market. We have decided to play our
ads between 5 to 10 times daily for the very first month
consecutively.
2. NEWS PAPERS AND MAGAZINES2. NEWS PAPERS AND MAGAZINES
NEWS papers and Magazines are also very important sources of
reaching to our customers who do not watch TV. There are many
NEWS papers and Magazines in the market which cover the
whole of Sargodha and Jhang comprehensively. We have chosen
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the following NEWS papers and Magazines to promote our
product.
NEWS papersNEWS papers
JANG
NAWA-E-WAQT
THE NEWS
DAILY ARZOO
MAGAZINESMAGAZINES
AKHBAR-E-JAHAN
FAMILY MAGAZINE
We have decided to print our ads on the front pages of all these
sources in the very first weak and then in the vicinity of most
attractive parts, columns, and portions of then afterwards.
PROMOTION THROUGH PAMPHLETSPROMOTION THROUGH PAMPHLETS
In order to make our promotion more intensive and also to cover
and convey our message to maximum of our market we have
decided to promote our product through pamphlets. We have
decided to print above 40000 pamphlets that are not only
attractive in their design but also rich in information. These
pamphlets will be distributed in the public places such as
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Mosques, Parks, Markets and also by dropping the pamphlets
door to door.
PROMOTIN THROUGH BANNERS AND SIGN BOARDSPROMOTIN THROUGH BANNERS AND SIGN BOARDS
Another very important and wide ranged strategy is to promote
our product through Banners and Sign Boards. It has been said
that,
Picture speaks a thousand wordsPicture speaks a thousand words
keeping this in mind we have decided to construct and prepare
highly attractive as well as innovative Banners and Sign Boards
that will be installed on all the Main Spots, Public Places, Main
Roads, Railway Stations and on all the sky scrappers of the cities.
PROMOTION THROUGH CABLE OPERATORSPROMOTION THROUGH CABLE OPERATORS
Cable is the most popular and fast growing entertainment source
and is getting popularity by leaps and bounds. We have decided
to promote our product by playing continuous ads of our product
on the cable during a program as well as by continuously
scrolling a bar through out the month.
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PROMOTION THROUGH SCHEMESPROMOTION THROUGH SCHEMES
We have decided to promote our product also by introducing
some consumer as well as retailer oriented schemes. The
schemes that we have decided to offer are as
Hajj Schemes based on current scenario
Lucky draws
Extra Product With in the Same Price
Offering gifts of Home Appliances
BIBLIOGRAPHYBIBLIOGRAPHY
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WEB REFERENCESWEB REFERENCES
www.tetrapak.com
www.google.net.pk
www.economist.com
www.nestle.com
PERSONAL REFERENCESPERSONAL REFERENCES
Naeem KhanNaeem Khan
Hassan JavedHassan Javed
Mian AhmedMian Ahmed
OTHERSOTHERS
Residents of Sargodha and Jhang.
YOUR OPINION:YOUR OPINION:
http://www.tetrapak.com/http://www.google.net.pk/http://www.economist.com/http://www.nestle.com/http://www.tetrapak.com/http://www.google.net.pk/http://www.economist.com/http://www.nestle.com/ -
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