MARKETING MANAGEMENT

PROGRAM: BBA

FINAL PROJECT

Submitted to:

Sir Mobin-ul-Haq

Submitted by:

Kamal Ibrahim 14022034020

REMARKS

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EXECUTIVE SUMMARYARABIAN’S is a local baking company. ARBIAN’S in the market from APRIL 2000.The company

will launch its new product “ARABIAN TASTE” biscuits in OCTOBER 2007.

The ARABIAN’S has a good range of resources in start including finance, Manpower and strong

market of advertisement. ARABIAN’S will not only manufacture biscuits but also having the plan to

produce cakes and other products in future. ARABIAN’S will come in market as market challenger

and will open new ways to have natural and pure taste.

ARABIAN’S new product ARABIAN TASTE will face threats because there is a strong competition

in the market. There is intense competition among the competitors product in the market. ARABIAN

TASTE will launch with pull strategy and our objective is to gain 20% market share within one year.

ARABIAN TASTE’S challenging team make efforts to be the strong brand in the market

. ARABIAN TASTE provides good quality on comparatively low price. This factor will make

ARABIAN TASTE distinguishing from competitors and it will make the strong brand of the market.

ARABIAN TASTE’S consumers and their good relationship and heavy advertising campaign, give

loyal consumer for the promotion and success. Advertising campaign effectively worked that it has

captured the target market. Positioning of brand is very much strong that it will work. Marketing

strategy of ARABIAN TASTE is according to the objective of the company and also helpful to

achieve its objectives. The company can boost up the sale by good advertisement media and also by

providing good quality to maintain its brand uniformity among the user.

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Company history:

MR. USMAN SAJJAD baking specialist, experienced a new taste of baked biscuits for the family

get together. His experience was really appreciated by the family members. He was interested in

baking the biscuits with date’s chips for new taste as it was not available in the market. As he

produced the date’s biscuits he realized that he has good skills in developing the biscuits with

original taste. When he launched the date’s biscuits at low level, people emphasis him to produce on

large scale. First he produced the date’s biscuits at his own home than with the passage of time

having good business he launched his own company, named ARABIAN’S.

Company introduction

ARABIAN’S was launched in APRIL 2000; the ARABIAN’S is basically

PRIVATE LIMITED COMPANY. We have sufficient network system of production, delivering, and

to monitor the staff. The company is engaged in producing the best quality baking products. The

basic aim of producing the baked products is to serve the best quality with the maximum purity

having the nutritional factor kept in view.

Organizational structure:

The basic structure of organization is, at the top level there is chairman then managing director, then

general manager, finance manager and marketing manager further brand manager for different

brands and sales managers. Above them they deal with account officer, sale officer and sale

supervisors.

Type of IndustryThe industry is basically a baked product-oriented industry. The company has strong investment

power. The initial investment was Rs.1 million. At that time the plant had the capacity to produce

5000,000 packs per year and was planted in industrial development zone which was not so far from

city which helped the manager to communicate with the supervisors easily. It was expected that the

demand for ARABIAN TASTE would come more from city side as compare to rural areas.

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In 2003, ARABIN TASTE nation wide BISCUIT sales were 2 million PACKS and by the year 2005,

WE were grown to 3 million PACKS. In 2006, ARABIAN TASTE had plans of extending their

product line and will introduce CAKE with the brand name “ARAIAN SHORTY”. We will further

extend the product line by introducing other baked products like bread, pizza, and bakarhani, with

different recipe. Now these days they have ARABIAN TASTE BISCUITS with high calcium and

full of nutrition’s and presently gaining the market share because of the increase in awareness among

customers regarding health issues.

Product History Arabian taste was launched in year 2000 and started business at low level from one city Lahore. Due

to its good response from the customers, Company launched country wide in 2003. The ARABIAN

TASTE serves the healthy food with the originality and having maximum purity in it.

Company’s Profile

COMPANY NAME:

ARABIAN’S

Brand Name: “ARABIAN TASTE”

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MARKETING PLANIn marketing plan we are going to cover all aspects of S.O.S.T.A.C.

S SUITATIONAL ANALYSIS

O OBJECTIVES

S STRATEGIES

T TACTICS

A ACTION

C CONTROLLING

SITUATIONAL ANALYSIS

MARKET RESEARCH

Arabian’s has launched new brand in Pakistan which is Arabian taste Biscuits. In Pakistan,

the people are already using to have different biscuits. So, there is new taste to in market with

maximum purity, as the ARABIAN’S has launched the desirable product of the customer the

market has given a favorable response.

SITUATION ANALYSISIn order to identify and satisfy customer’s needs, every company has to take into consideration its

internal and external situation. In that way, by scanning the company’s environment and by

collecting all the necessary information, a SWOT analysis can be developed. SWOT analysis is

critical for a company, as on one hand it enables it to identify its weaknesses and threats and 5

therefore to reduce them and on the other hand, to take advantage of its strengths and opportunities.

Strengths and weaknesses are controllable factors that are related to the company, whereas

opportunities and threats are uncontrollable factors such as economic, social etc. that give

information about the industry.

Source: (Westwood, 2002)

In this regard we conduct situation analysis which is mainly revolves around two points which are:

Internal analysis

External analysis

INTERNAL ANALYSIS

Vision: 1- Capture the whole market in the baking world.

2- Our vision is to be the leader of best health-caring food products.

3-Tto be a one of the competent leading house of FMCG product

Mission statement:

Since 2000 ARABIAN’S in market with the mission to compete the whole market in producing

the quality product in competitive price with the help of cooperative and experienced staff as to

target the high returns. Our aim is to give the taste with the maximum purity, taste to give the people

real healthy lives.

PROFITABILITYArabian’s which is going to start its business in Pakistan. It is newly established company which had

launched biscuits in Pakistan. The brand is profitable because the cost per pack is Rs.1.75 on ticky

packs, Rs.4.5 for half pack while Rs.14.50 for family pack which manufactured in local industry and

its sale price starts on quality basis is Rs.3.00 for ticky pack, Rs.9.00 for half pack and Rs.18.00 for

family pack size in Pakistan.

CUSTOMER LOYALTY

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The product biscuit has already developed its worth in the market and also make them customers

loyal. But some companies have attained the more customers’ loyalty such as PEAK FREENS, LU

and BISCONI.

Market is always full of competitors same is the case with ARABIAN’S. But ARABIAN’S product

ARABIAN TASTE has made its position in the market. ARABIAN TASTE has got the customer

loyalty due to its nutritional and maximum purity.

PRODUCT LIFE CYCLEIn order to have a view about Arabian Taste performance in the market lets have a pictorial view that

where the ARABIAN TASTE stands through the product life cycle.

ARABIAN TASTE LIFE CYCLE

`

This graphical view is drafted with the help of complete survey of market.

ARABIAN TASTE diagram shows time on X- axis and sales volume on Y-axis. ARABIAN

TASTE is on the introductory stage which is shown by arrows in the diagram. ARABIAN TASTE

is clearly shown on the graph where it is standing right now it is just in the end stages of introduction

and touches the starting area of growth. ARABIAN TASTE has the bright future as it has got the

market share and made its awareness in very less time.

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Current situation

As the product life cycle shows that ARABIAN TASTE is on the introductory stages, so the sales

volume is low and the cost is high. ARABIAN TASTE is showing good results so the profits are not

in negative position but low its awareness is creating by free trial. Distribution cost is high and many

expenses like advertisement to make the product awareness.

EXTERNAL ANALYSIS

MICRO ENVIRONMENT

THE COMPANY-ARABIAN’S:The company ARABIAN’S is a new company which is going to enterprise the business of FMCG

products type like baked products. ARABIAN’S is engaged in the manufacturing of baked products

but also with the aim to provide the Arabian taste with the maximum purified form and healthy

nutritional food.

COMPETITORS:There are number of competitors in the baking products as the baking products are very much old

and are used for the many years. ARABIAN’S have also competitors but our product ARABIAN

TASTE has to face the following

SOOPER:Today the brand of LU, SOOPER is very much popular in the biscuits. SOOPER is actually

capturing the market through the good and mostly fresh quality. SOOPER has basically positioned

itself as healthy food through presenting egg and milk cookies.

CHOCOLATE CHIP :

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CHOCLATE CHIP by BISCONI has also the biggest market share; they are using chocolate chips in

the cookies. it is the new trend in chocolate biscuits. They positioned the CHOCOLATE CHIP as

that its different from others.

Others There are a number of biscuits in the market they have made their positions in the market very well.

Others include mainly by LU, and peak freans, KOLSON. LU has many brands like prince, Tuc etc.

PEAK FREANS have butter puff, glory; peanut pick etc and Mayfair have JAM HEARTS etc.

COMPETITIVE RIVALRY:

The competitive rivalry among FMCG producers has become intense. The competitors constantly

offer new product.

BUYING POWER:

We have targeted the consumers whose buying power is average. Because we have to increase the

market shares as much as we can. This is the result of the increasing number of independent firms

and the pressure of consumer groups and the regulator.

POWER OF SUPPLIERS :

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FMCG manufacturers competed for market share with significant presence. It was difficult to

introduce the new product in the market. But the ARABIAN TASTE has positioned itself in

consumers mind by its purity and different taste.

THREAT OF SUBSTITUTES :

The consumer will return to competitors, if ARABIAN TASTE looses its quality.

Since the low price of the biscuits with the same features can be one of the main reasons. For

example, more and more comfortablilty and affordability

THREAT OF ENTRANT :

In Pakistan the market is open for competition. Cakes & Bakes and Gourmet bakers are local treats

as they are launching baked products, while LU, peakfreans, and KOLSON are countrywide treats

for biscuits in Pakistan.

MACRO ENVIROMENT

ECONOMIC FACTORS

Market requires buying power as well as people. The economic environment consists

of factors that effect consumer purchasing power and spending patterns.

DEMOGRAPHIC FACTORS The demographic factor does not affect the company’s environment. As age, gender,

occupation etc has nothing to do with it.

TECHNOLOGICAL FACTORS

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Technological factors affect the environment of the company positively

because company has introduced modern machines that automatically pack it with imported sealing

and sent it to market. It has also the capacity of producing more than 150,000 packs of biscuits per

day.

POLITICAL FACTORS Every Govt. tries to provide the public facilities as the best they can do. Our

company is getting benefit from this act as it is showing more practice of consumerism than its

competitors.

In case of consumers protection legislation it will have none negative effect as our company is

environmental friendly organization & care about the health of its customers & communities.

COMPETITIVE FACTORS Competitive factors also affect the company’s environment because its main

competitor LU is stable in the market but according to our survey Arabian Taste has snatched about

10% market share of LU.

S.W.O.T. ANALYSIS

Situation analysis is also called S.W.O.T Analysis.S Strengths

W weaknesses

O opportunities

T threats

The SWOT Analysis is an extremely useful tool for understanding and decision making for all

situations in an organization. It provides a good framework for reviewing strategy, position and

direction of a company.

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STRENGTHS:-

Strengths are company’s positive points, which help the company to attain the strong position

in the market, which provide the company opportunities to become a better company than its

competitors.

ARABIAN TASTE has following strengths, which show its success.

PRICE

Our product is a priced low then our competitor; price factor is a major issue that gives us the benefit

to build up our self. It also gives an edge with price conscious consumers.

QUALITY

The quality of our product is also strength of the company. Our quality helps us to distinguish us

from our competitors. Dates that is using total different taste, this feature of quality will also help us

to retain customer and to increase sale.

PRODUCT LIFE CYCLE The life cycle of Arabian Taste is seems to be reaching the introductory stage quickly. We have

contingency plans to keep growing by making new products, targeting additional segments and

adjusting prices.

Technology

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Latest technology is used in our industry to be the best in the quality management. As

the ARABIAN’S engineers know that without latest technology we can’t get maximum profit.

Manufacturing plant We are using our own manufacturing plant to minimize the cost and for the success of the

product as to get high returns.

WEAKNESSES: - Every company have some weaknesses because no one is perfect in this world, as far as ARABIAN

TASTE is concerned, it also has some weaknesses. By ARABIAN’S has learned from the success

and mistakes of our competitors. We have following weaknesses:

LACK OF AWARENESS . In beginning Arabian’s is not yet established a product or image in the market place, whereas

Chocolate Chip or other brands have strong brand recognition. This is an area we will address with

promotion and will tell the consumer about our product. We will motivate people through our

advertisement campaign.

Less experienced staff Lack of experienced & quality staff management ARABIAN’S is facing many

problems and there is always experienced staff required for the quality management

Lack of capital As far as planning is concerned ARABIAN’S have plans .Low funds always give

problem in production and fulfilling those plans.

OPPURTUNITIES: - The ARABIAN’S must use best strengths to take advantages of attractive opportunities in the

environment and from market.

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INCREASED DEMAND ARABIAN’S has the opportunity to penetrate in the market as there is increased in demand of

biscuits. Consumers are increasing day by day and as it is on growing stage it is very beneficial for

the company to target audience by their strategies.

Buying behavior Pakistan, where consumer is conscious about the health so we can give them quality

products and for price conscious people, price is low

International business Business can be established to other countries especially in Middle East.

Marketing relationship Get strong marketing relationship to the clients as well as clients.

Distribution channel Establish strong and effective distribution channel.

THREATS: -

Political Instability The political instability can pose a danger in the growth & productivity of the company

Economy The economic crises in a country may also affect the performance of the company in terms of

sales & profits

New EntrantsEntry of new entrants in the market can be threatening for our newly launched product

DOWNWARD PRESSURE ON PRICING Increasing competition and market-share strategies are pushing biscuits prices down. Still, our

objective of seeking a 15% market share at the end of 2009

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Existing Companies Existing companies are our competitors in the market. There are so many competitors in the

market.

Loyal Customers Customer loyalty to other product is very much important. Loyal customers advertise the product

for free of cost as to increase the sale loyal customers are important

OBJECTIVES

To maintain positive and strong growth in every market segment perusing its target market.

To give awareness to 30% target market till the end of 2009.

To make profit 1/3rd against sales up till 2010.

To take the market share up to 10 to 15% till 2009.

To capture the market share by diversification in its product.

To focusing on customer relationship.

STRATEGIESThese are means through which company’s objectives will be achieved

SEGMENTATION STRATEGY

Market segmentation is the process that marketers use to divide up the market into smaller segments

that can be efficiently addressed.

Markets consist of buyers, and buyers differ in one or more ways. They may differ in their wants,

resources, locations, buying attitudes, and buying practices. Through market segmentation,

companies divide large, heterogeneous markets into smaller segments that can be reached more

efficiently and effectively. In this section, we discuss four important segmentation topics.

Geographic segmentation

Demographic segmentation

Psychographics segmentation

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Behavioural segmentation

Geographic segmentationGeographic segmentation calls for dividing the market into different geographical units such as

nations, regions, states, counties, cities, or even neighborhoods.

Arabian Taste will first launch in Lahore and some other cities. Only the rural areas and small cities

are not our focus.

WORLD REGION: In all over the world there are many big markets like U.S.A, UK, Africa and Asia but our main

focus at this time only in Asia.

COUNTRY:

There are many countries in Asia like India, Sri Lanka, China etc, but Pakistan is the main

country from where we launch our product.

CITY:

Lahore, Qasur, Gujranwala, Faisalabad, Islamabad, Karachi, Hyderabad, Mirpur khaas,

Sialkot, Peshawar and Multan are the major cities in which we have launched Arabian Taste.

DENSITY:

Normally Urban areas are important for us according to marketing point of view.

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DEMOGRAPHIC SEGMENTATION

Demographic segmentation can be defined as dividing the market into groups based on demographic

variables such as age, sex, family size, family life cycle, income, occupation, education, religion,

race, and nationality. Demographic factors are the most popular bases for segmenting customer

groups.

AGE:

Consumer needs and wants change with age. Arabian Taste can use from the age of 8 to old age

people.

FAMILY SIZE

If we divide the family size into three categories that is

Small

Large

Average

In small family size we consider, there are more than two persons exist. In average family size there

are 4 to 6 persons are living but not more than 7 persons.

7 persons living together, is called large family, and Arabian Taste offering family packs also.

OCCUPATION

Our product can be used by businessmen, professionals, government employees, private employee or any other person as ARABIAN TASTE targets every age

Income

Income segmentation means that dividing a market into different income groups. Arabian Taste can

be used by the income level of Rs.15000 and above

PSYCOGRAPHIC SEGMENTATIONPSYCOGRAPHIC SEGMENTATION

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Psychographics segmentation is dividing a market into different groups based on social class,

lifestyle, or personality characteristics.

SOCIAL CLASS

Arabian Taste can use by different social classes for example upper, middle, lower and working

class, but only lower classes are not our target market because they are visibly poverty stricken

and usually out of work.

BEHAVIORAL SEGMENTATION

Behavioral segmentation means that dividing buyers into groups based on their knowledge, attitudes,

uses, or responses to a product. We believe that behavior variables are the best starting point for

building market segments.

OCCASIONAL:

Occasional segmentation is divine of market into groups according to occasions when

buyers get the idea to buy, actually make their purchase, or uses the purchased item.

Arabian Taste can use on regular bases.

BENEFITS:

Benefit segmentation is all about the market into groups for benefits that consumers

seek from the product. Arabian Taste provides health benefits and status benefits

USER STATUS: Our product can use by potential consumers, which means that those who have a buying power and

they are interested to buy our product. There are two types of consumer, First time user and Regular

user.

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READINESS STAGE:

All persons who are aware, informed, interested and intended to buy. These are all our targeting

customers.

ATTITUDE:

Positive, indifferent

TARGET MARKETING STRATEGY

TARGET MARKET:A group of people for whom the marketer designs the marketing mix is called the target

market.

There are three main factors which cerebrals keeps in mind while selecting the target the

market:

1) Segment size & growth

2) Segment structural attractiveness

3) Company objectives &resources

So-on these bases we target the urban areas of Pakistan.

Our target market is very vast and has a much variation in it. The aim of our company is to

target the all ages of people, semi government and private organizational employees and

professionals are also our targeted market. Also we are focusing on the cafeterias of all the

public and private sector’s, colleges, universities like PCBA Lahore.

In fact the company wants to reform the culture of biscuits prevailing in the market.

Market Positioning

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• Product Classifications

Specialty of Product

Consumer products with unique characteristics or brand identification for which a significant

group of buyers is willing to make a special purchase effort

ARABIAN TASTE of ARABIAN’S is classified as purely specialty product as it is the

product with unique characteristics and brand identification for which every group of buyers is

willing to make a special purchase effort. It is also because it involves huge money and intensive

decision making by the customer.

Product Attributes

Product Quality

The ability of a product to perform its functions; it includes the product’s overall durability,

reliability, precision, and other valued attributes.

Product FeaturesFeatures are a competitive tool for differentiating the company’s product from competitors’

products.

The biggest competitive tool for ARABIAN TASTE, which is also the competitive advantage

to the company, for differentiating the product from competitors’ products is the Dates. Dates taste

biscuits are not yet launched by any company in Pakistan So, it’s a great opportunity for ARABIAN

TASTE.

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• Benefits offered Health and Purity

• Usage occasions– Day to day use, Events, parties

• Users– Capturing the families, teen-agers, youngsters, and married people.

• Activities– Arabian taste as the first with dates and purity

• Personalities– Healthy biscuits with maximum purity.

Over all positioning strategy:The same for less strategy is to be used by Arabian Taste, as its quality is high and price is

low as compare to competitor

PERCEPTUAL MAP OF ARABIAN TASTE

Perceptual map shows that Arabian taste giving good quality as compare with others. There are

some brands in the market which are giving poor quality in low price, while ARABIAN TASTE

giving good quality along with healthy nutritional aspects

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We are surviving because we have launched our product that already exists in market.

ARABIAN TASTE UNDER THE BCG GROWTH SHARE MATRIX

A portfolio-planning method that evaluates a company’s strategic business unit in terms of their

market growth rate & relative market share is known as BCG MATRIX. SBU’s are classified as

star, cash cows, question marks, or dog.

Question mark:-According to the SWOT analysis ARABIAN TASTE lays under Question mark because it is newly

launched in different cities so it has a less market share and producing less cash.

Push & Pull Strategy

THRIVING

DIE SLOWLY

SURVIVING

!

DIE QUICKLY

Effective

Ineffective

Efficient Inefficient

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Pull Strategy:

We will use the pull strategy, as we are entering into an existing market with some strong

brand names. Having view, we have decided to get directly to the user through our

advertisement channels & convince them to prefer ARABIAN TASTE.

ARABIAN TASTE is the market challenger that exists in the market with natural and different tasteARABIAN TASTE is the market challenger that exists in the market with natural and different taste

with comparatively low price as well as normal market share.with comparatively low price as well as normal market share.

Flanking attackFlanking attack•• Rather than attacking head on, as a challenger we are going to attackRather than attacking head on, as a challenger we are going to attack

on the competitor’s weak points.on the competitor’s weak points.

•• We are using this strategy because we have sufficient resources asWe are using this strategy because we have sufficient resources as

compare to competitors.compare to competitors.

PULL Strategy

Demand Interme-Diaries

Demand Biscuit consumer

Marketing activities

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Choosing an attack against the competitors

COMPETITORS

Types of competitor

There are two types of competitor

Following are the competitors.

PRIMARY COMPETITOR Chocolate Chip

SECONDARY COMPETITORS Others

Strength And Weaknesses Of CompetitorsSTRENGTHS

Top of mind

Trust winning

Huge Market Share

WEAKNESSES Chances of overcharge by retailers

Hired distribution setup

COMPETITIVE ADVANTAGES Competitive price.

Natural taste.

Biscuit tray.

Printed price.

Water proof wrappers.

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Expiry date.TACTICSTACTICS

Marketing Mix

1-PRODUCT:

From long procedure of product development we have done analysis process to develop a product,

which is not yet launched, and consumer demand some new taste, as there is no taste in market like

ARABIAN TASTE.

It best fits with 4P’s of marketing mix, which are necessary for any product to become successful.

PRODUCT = CUSTOMER’S SATISFACTION

CORE PRODUCT

Arabian taste The key benefit of our product is to fulfill the demand of something new in market with pure taste of

DATES and give satisfaction, this attribute make it unique and remarkable.

Satisfaction

Its is also its core benefit that it isn’t only fulfill the desire but also give satisfaction to thirst as

DATES fulfill the desire of water also with good health. The differential advantage with competitors

is thirst quench through biscuits. This benefit also makes our product unique and attractive.

ACTUAL PRODUCT

The actual product of ARABIAN’S is ARABIAN TASTE, which is DATES FLAVOURED

BISCUITS with the specific INGREDIENTS.

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AUGMENTED PRODUCT

MEDICAL BENEFITS OF ARABIAN TASTE

It is proved medically by research that it is good for health, it has the ability to fulfill the desire of

water and it has so many benefits, in-short good for health. The variety of vitamins, calories and

other elements are the specific concern while manufacturing.

BENEFITS OF PRODUCT:

1. Good for health.

2. It will enhance the functioning of stomach.

3. You don’t get fat.

4. Thirst fulfillment

5. Feel patience

2-PRICE:

“Price is the value which is charge for a product, service, favor, vote etc.” Price is the sum of all the

values that consumer exchange for the benefits of having or using the product. It’s only the source of

revenue from the marketing mix all others (product, place, promotion) are cost.

Strategy:

Arabian’s use penetration pricing strategy because the product is new in the market and usually this

is the most appropriate approach to get the people aware of new product.

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As we have many competitors that’s why it is very good strategy to capture the market and to

become the market leader our company set the price.

Pricing Objective:

The objective, which kept in mind before selecting the price, is to capture the maximum market share

and to become the market leader.

How we set price?

There are many factors, which we kept in mind before setting the price. Those are given below:

a) Costs:

o Production cost

o Distribution cost

o Advertisement cost

o Promotion cost

o Administrative cost

b) Cost & price of competitors

c) Estimated demand.

Price selecting method:

We use cost based pricing, in this method we calculate all the costs and then add our profit margin in

the cost. The expected profit margin of Arabian’s is 8.75%, which is good for the newly developed

product.

PRICES

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Price of ticki pack =Rs.03.00

Price of half pack =Rs.09.00

Price of family pack =Rs.18.00

DESCRIBING COST OF HALF PACKMANUFACTURING COST RS. 4

PACKING RS 0.80 PAISA

LABELING RS 0.25 PAISA

BISCUIT TRAY RS 1

TAX RS 1.05

ADVERTISING RS 0.20

TOTAL COST RS 7.30

The most important feature of the product pricing is that as the customer is buying more quantity of

the product he is being benefited more from the gradually decreasing prices.

The more complex matters involving the sales tax and cost of production matters and profit

involvement in the distribution channel and organizational profit taking matter are clearly explained

in the financial sector of this report.

3-PLACE:

DISTRIBUTION CHANNELWe are using the 3 level of channel distribution involving Whole seller, Distributor and the Retailer.

INTENSIVE DISTRIBUTION We are following the intensive distribution approach in our delivery of products to the consumers

because market research describes the more market share distribution channel.

POTENTIAL CUSTOMERSWe are adopting intensive distribution system due to a fact that we have a large number of potential

customers.

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COVAREGEWe have covered almost all cities of Pakistan, which are developed and suitable for our product. Our

future plans about coverage of our product are the Middle East. Actually the target of Arabian’s is

the whole world (especially the Islamic countries).

ASSORTMENTSWe focus on the urban regions with different strategies, which attract consumer. It is easy to cover

the urban areas but it is difficult to cover all the rural areas, so our main focus is urban areas.

INVENTORYWe have a raw material of two months to avoid any kind of conflicts or difficulties, which

may happen in future. We have production of two months in advance to meet the

requirements of the urgent need. We follow economic order quantity technique.

TRANSPORTATIONWe have our own transportation service to cover the all the segment of the Arabian’s. Because the

success of company is also depend on the easy access and cover all the segments. Quick service is

the key point.

4-PromotionFor promotion Arabian Taste is going to launch huge promotional campaigns to get the product

introduced in the market. Now they have started massive promotional campaigns like advertisement,

billboards, and free samples and now they are starting other promotional campaign named.

Promotion strategies:

Usage of print media i.e. printing of posters as well as displaying it and distributing it at

proper places

Advertisement in print media i.e. newspapers

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Usage of electronic media i.e. showing the ads on television, about the convenience and

availability

Insertion of leaflets in Sunday newspapers, through hawkers for the distribution to all the

newspaper purchasers.

Usage of e-commerce i.e. launching of website and advertising on web.

.

Product Analysis: Biscuits

Brand Name:

“ARABIAN TASTE”

Logo: “TASTE IN TIME”Various offerings:

ARABIAN SHORTY ARABIAN SALTY

Ingredients:Flour, hydrogenated vegetable oil, dates chips (sugar, full cream milk powder, butter and Soya

lecithin)

Taste:Taste of Dates with baked cookies

Quality Statement:The quality statement of Arabian Taste is “To achieve the customer satisfaction, we are

dedicated to supply the prestigious products of ARABIAN’S highest quality through our dedicated

team work defined by the regulatory parameters.”

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Pricing Analysis:

Pricing Method:

Arabian taste is focusing on the Penetration pricing that means Pricing method of new product

introduction to market that consists of pricing low and promoting heavily in order to gain a large

market share.

As we are launching our product from a low price and visibility of product everywhere so that we are

focusing on the “penetration pricing”

Place Analysis : Placement:

Coverage and Reach:

As the map shows that map is divided into two parts

Star area

Square area

STAR AREA: The area, which is shown by star, has covered by ARABIAN’S with our fast

and consistent network of distribution system.

SQUARE AREA: The area shown by square will be cover by ARABIAN’S is in the future

planning’s.

Sales territory analysis:

TEST MARKETING:After completing our product manufacturing, we give the samples to different people and then we

made analysis of their responses.

When people satisfied from our product then we made packaging shape and give it brand

name.

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The brand name is “ARABIAN TASTE”.

We used two techniques:

o SIMULATED TEST MARKETING

o STANDARD TEST MARKETING

We selected these two methods because these methods give the most accurate results about our

product’s feasibility and demand in the market.

The other main reason behind that we are going to launch a new product, so the company always

wants success of the product

The wise decision for the success of the product to get the response of the consumer before

launching

Both the test process and results derived are as below:

SIMULATED TEST MARKETING:We call 30 to 40 experienced shopkeepers & questioning them about brand familiarity. We created

an artificial environment on selected stores, put our ARABIAN TASTE and also the product of our

competitors and call a panel of customers and shopkeepers there to sell and buy products. First we

make a blind test and get the opinion of consumers and then, we gave them a limited budget in which

they can easily purchase our product and also competitor’s product. Then after this process we call

the selected panel to call the results. We became satisfied when they told us that our sales volume is

satisfactory and up to the mark. Then we meet the customers who were not buying our product and

gave them free samples for consumption and specify them the unique qualities of our products.

In short, ARABIAN TASTE got good results in analysis and according to the results ARABIAN

TASTE is able enough that it could be launched, without the threat of failure in the market.

At the same time the process of standard test marketing was continue, so have a look on the results

derived from that and then we will decide that we are either going to introduce our product at

national level or not.

STANDARD TEST MARKETING:We selected Lahore, Gujranwala, Islamabad and Karachi for standard test marketing and run a heavy

marketing campaign in these cities. Actually the main purpose behind the selection of these cities

was communication facilities and comparatively average competitor interaction in our work.32

We continued our campaign for three months because three months are enough to observe the buying

behavior of the consumer and in this short time period there was no risk that the competitor will

create any trouble for us by developing the product having same features like us.

As we get the results of three months campaign we became happy because the results were not only

positive in nature but also they were favorable more than our expectations.

RESULT:As results were favorable so company decided that ARABIAN TASTE is demanded for the final

introduction at national level. So we decided to move forward towards our next and the last step in

the process of new product development that is commercialization.

ACTION PLAN

The Arabian’s was introduced in APRIL 2000. Following is the summary of the action Plans we will

do during the first year to achieve our stated objectives.

Arabian’s top management managed the project and will lead the company in the market. Our head

of Departments operate their departments and control the performance of the department. Heads are

responsible for the performance of their departments.

Meeting of the heads held after every accounting period to analyze the actual performance of the

overall company and individual departments. In meeting, efficiency and effectiveness of the

department will be determined. According to the performance of the company step will be taken in

favor of the company and will convey the message to the other staff of the company through memo.

Our finance department controls and monitors the budget of the company. It determines and

estimates the budget for each department according to the needs of the department.

Media plan monitored by marketing manager and him run a campaign of the company for promotion.

Our media campaign will be run on stated media partners. We will run T.V ads 16 days of the month.

Utilities department will be accommodate our staff if they are needed any person or in case of

emergency they will use our installed utilities.

CONTROLLINGWe are planning tight to control measures to monitor high quality and provide full customer

satisfaction.

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ALLOCATE PERSONNEL :

For the better control the Arabian’s will allocate personnel in the company in following order:

In our company we have different departments. As the above shown in figure, we have design our

market department and their sub departments they are working separately. Market research

department conducted research and survey different modes of the search to analyze and compare our

performance and bring information what customer demands. This department controls and develop

the strategy of the company that when and which strategy should be implemented for both short term

and long term. After planning, our marketing staff will handle the media campaign and control all

matters of campaign. With coordination of our media partners this department will make position in

the audience mind and build the image of ARABIAN TASTE. Sales market staff will assess the sales

of the company and promote the sales. Sales staff also makes sales promotional strategies to get

maximum sales.

BUDGET MONITORING:

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Chief executive

officer

Advertising sales promotion staff

Sales manager for market segment

Market planning staff

Market search staff

Marketing department

Finance department

Purchase department

We put an effective control to monitor our company annual budget, which is Rs.100 million. The

finance department provides finance to each department for the promotion, visibility, goodwill,

marketing of ARABIAN TASTE and finance managers will monitor budget directly.

MARKTING PLAN CONTROL

The company has planned to run the campaign on 5 TV channels as they are stated above GEO

ENTERTAINMENT, PTV, INDUS VISION, AAJ, and HUM. Our Advertising sales promotional

staff controls our media plans. We run 3 different times our advertisement on TV. As company has

the objective for the brand awareness according to this objective company has fixed Rs. 30 millions

for media plans for the first year.

TV CHANNELS: GEO ENTERTAINMENT, PTV, INDUS VISION, AAJ, HUM

NEWSPAPER: DAWN, NAWA-I-WAQT, JUNG, AND DIN

BILBOARDS: JAIL ROAD 60(20), MALL ROAD 60(20)

FAISAL TOWN, MODEL TOWN, CHOBURGI

RADIO: FM 106.2, FM 103, and FM 100

UPDATING PLAN : We will update our plans to meet our objectives to gain the market share up to 20% and to attract the

customers from our competitors. If our any campaign does not give the desired result then our

marketing staff has another plan. Staff will change the timing of ads and may change the channels to

increase awareness. Our market planning department will manage the plans when and which plan

should be executed. It will determine according to the market demand and situation.

MEASURING OBJECTIVES

At the end of first year, Arabian’s will measure its objectives. It will check and answer that where the

company is now. Is company has achieved 20% market shares? Our target is to sale ARABIAN

TASTE 30% of competitor’s sale in one year. When we sell almost 25% in one year then our market

share will be achieve. Our marketing plan having worth that will produce the desired results.

Although company brand awareness that will help in coming years to compete the market.

Promotional mix

Promotional activities:

Advertisement: we are advertising through TV channels: newspapers, billboards, radio for the

promotion of ARABIAN TASTE.35

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