Final Project Smm All Ayad

A PROJECT OF UMT PARTICIPANTS

Table of ContentsPEST Analysis.........................................................................................................................................3Porter analysis of “Red Syrup” industry in Pakistan...................................................................7

1. New Market Entrants..................................................................................................................72. Supplier Power............................................................................................................................83. Buyer Power.................................................................................................................................94. Competitive Rivalry in red syrup...............................................................................................105. Substitutes of red syrup.............................................................................................................10

WHAT IS STRATEGY............................................................................................................................11The origins of strategic positions..........................................................................................................12

Existing Strategies...................................................................................................................................14Strategic Group Map........................................................................................................................15

PRODUCT STRATEGY.........................................................................................................................22PRICING STRATEGY.............................................................................................................................24PROMOTION STRATEGY.....................................................................................................................25POSITIONING..........................................................................................................................................271) Product Attributes..............................................................................................................................272) Product Benefits................................................................................................................................273) Usage Occasions...............................................................................................................................284) Away from Competitors..................................................................................................................29Distribution..............................................................................................................................................29Production Strategy of Qarshi Industry:..............................................................................................31Production Strategy of Competitors:.....................................................................................................32

Production Strategy of Rooh Afza:....................................................................................................32Production Strategy of Nuraus:.........................................................................................................32

Competitors Analysis For The Leaders Of Another Strategic Group:..............................................32Competitor Analysis For the Leader Nestle..............................................................................34Strategic Group Map Of Cola Industry........................................................................................35

Position of Rival Industries................................................................................................................36PEPSI COLA the Leader......................................................................................................................37

Competitor Analysis for the Leader PEPSI......................................................................................37Producer ---------- Retailer-----------End users..................................................................................38

Red Syrup Industry........................................................................................................................39Soft drink Industry & Red Syrup......................................................................................................40Jam-e- Sales for Last 5 years............................................................................................................41Sales Forecast for 2007 and 2008...........................................................................................................41Perceptual Map of Jam-e-Shirin.......................................................................................................44

Explanation of Map 3..........................................................................................................................47Decision about New Product.............................................................................................................48Decision Tree....................................................................................................................................49New Product...........................................................................................................................................50Benefits of the Product.......................................................................................................................50Identification of Segment:..................................................................................................................51

Segmentation from Income Level................................................................................................53Segmentation from Geographical Location Of Lahore..........................................................54Aggregation of Segmentation.......................................................................................................55

STRATEGIC FOCUS...............................................................................................................................56

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Purpose of the Marketing Plan..............................................................................................................56Mission Statement.................................................................................................................................56Goals......................................................................................................................................................56Porter’s Generic Strategies Model.........................................................................................................56

Strategies..................................................................................................................................................57The Jam-e- instant Strategy...............................................................................................................57

SWOT Analysis.........................................................................................................................................57Strengths...............................................................................................................................................58Weaknesses...........................................................................................................................................58Opportunities.......................................................................................................................................58Threats..................................................................................................................................................58

TOWS.......................................................................................................................................................59Internal Factor Evaluation Matrix table: (IFE table).....................................................................61External Factor Evaluation table: (EFE table).....................................................................................61General Electric Matrix (GE Matrix).................................................................................................62STRATIGIC GROUP MAP FOR NEW PRODUCT..........................................................................63

Reason for selecting two Strategic Group.........................................................................................63VARIABLES:..................................................................................................................................63

Strategic Group Map Of Juice Industry..........................................................................................64Strategic Group of Soda & Cola Industry............................................................................................65

VARIABLES....................................................................................................................................65Strategic Group Map Of Soda & Cola Industry..................................................................................65Competitor Analysis............................................................................................................................66Competitors Strategies.......................................................................................................................68Marketing SMART Objectives For 3 Years.....................................................................................69

OUR VISION.......................................................................................................................................69MISSION STATEMENT.....................................................................................................................69

“National leadership in our field”..............................................................................................................69Build Branded drink to improve quality of life by offering tasty, affordable and highly nutritional products to our consumers to compete others................................69Marketing SMART objectives in 3rd Year of launching Product.........................................................74

A. Advertisement Status...............................................................................................................74B. Sales Improvement Plan.............................................................................................................74

PRODUCT/MARKET STRATEGY.......................................................................................................75STEP 1...................................................................................................................................................75STEP 2...................................................................................................................................................76STEP 3...................................................................................................................................................77STEP 4...................................................................................................................................................77Step 5.....................................................................................................................................................78STEP 6...................................................................................................................................................78STEP 7...................................................................................................................................................80

BASIC COMPATATIVE STRATEGY................................................................................................81Marketing mix........................................................................................................................................83P&L ACCOUNT OF 2007......................................................................................................................85P&L ACCOUNT OF 2008......................................................................................................................86

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PEST Analysis

Factor & Trend Business Implication Company Response

Political & Legal

Economic

Social & Cultural

Technolo

Rule of the government for red syrup industry is they should produce highly safe & Hygienic Product

Business should implement the testing on their product and produce fully processed product with laboratory testing.

Qarshi industry implements 129 laboratory tests on its product.

Government has reduced the import duty on plants & machinery of industry.

Industrialists are importing more and new technological plants for their product.

Qarshi Industries has import new technology for reducing its product cost.

People are health conscious and not want to take so much coke.

Produce on highly safe environment and also introduce sugar free red syrup in Pakistan.

Qarshi industries has 6 international certificates which proof it is fully hygienic product.

Technology trend is going up & Pakistan has browed market for introducing new technology. People are adopting new technology very rapidly

This business is also want new technology because without using technology we can not reduce price and make hygienic product.

Qarshi Industries already have latest technology for making product and importing new technology as well

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Political Environment

Stability of the government reflects the foreign investment but in past Pakistan government was not

stable but first time national assembly has got stability for five years so it is good sign for investing

activity. Government has given rebate and shows the politeness in its rules and regulation of import &

export and has given free hand to industrialist to invest here. Government of Pakistan is also giving the

legal safety to investor and following the encouraging policy for investor.

After giving all these facilities and safety, investor do not show interest to invest here because the

political parties are not stable and there is no democracy. They see the history of political parties and

they conclude that, in 59 years history of Pakistan independence only 22 years were democratic

government and remaining were under army. When a investor watch this situation in Pakistan then he

think that those political parties who do not know and can not secure their own future and can not

establish it self so what security it will provide us. This situation do not encourage the out side investor

as well as inside.

So in the end we can conclude that these political & legal factors reflect very bad effect on investors and

discourage them to invest here. Some policies are good but can not success whenever we don’t have

political stability in Pakistan.

Economic Environment

Economic environment is a most critical environment for any industry. In this regard we consider the

government rules and regulation because economic policies encourage and help to take a decision for an

industrialist that he should invest or he shouldn’t invest in this country. So if we analyze Pakistan’s

economy in the leadership of Shaukat Aziz our economy is growing and if we see the GDP of Pakistan,

it is growing from last five years but negative point is this that inflation is also growing rapidly which is

not a good sign for our economy. For investment purpose Pakistan’s economy is not impressive because

inflation rate is very high so we can say economic environment is very risky in Pakistan.

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Social Environment

After considering the government rules and regulations an investor analyzes the social environment of a

country because it gives a good idea about their product sale in a particular country. Pakistan culture is

very different, there are many languages are being speak here and basically it is an Islamic country and

97% Muslims live in Pakistan. But now people have changed and they prefer modernism on Islam. Up

to 30% people adopt new fashion and changes in industry. If we see Pakistani culture in the light of red

syrup industry then we will see now 70% people are health conscious and they want pure and natural

thing.

Technological Environment

Today’s era technology can play a back born role for any industry and if any one do not implement

those changes that are occurring in the industry then we can simply say that it would not survive long

run and will get end very soon. Now we will talk about Pakistan’s technological environment. Pakistan

social trend has also been changed and people also want fully quality product. If we take our beverage

industry there are so many technologies involve in it and people here want hygienic products which are

fully processed and it can not be possible without technology.

Now our government is encouraging technology competition in local market especially E-Commerce is

growing up and people buy their favorite product online and Government establish a Hardware

Development Fund (HDF) to finance IT hardware related R&D and manufacturing activities.

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Porter’s five Forces of “RED SYRUP” industry

in Pakistan

Competitive Rivalry:

Among 3-4 firms (2 qurshi(51%) & hamdard(43%) have major market share.

Produce nearly same products with little difference of taste.

Slow industry growth.

Supplier Power:

Large no. of supplier in market. Inputs have no substitutes. No Threat of forward integration. Switching cost is high. Supplier power is low in red syrup

industry.

Substitutes: Large no. of

substitutes (nearly same & less price available.

Low Switching cost of buyer towards substitutes.

Buyer Power:

No of substitutes are available in market.

Large no of buyer Switching cost very low. High buyer power. Buyer have No capability of

back wards integration.

New Market Entrants:

Growth market. 3-4 major competitors. Huge capital requires. High marketing, distribution cost

required. Experience and learning

required. Switching cost of business is

high. Easy access to in put. No special limitations by the

government.

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Porter analysis of “Red Syrup” industry in Pakistan

1. New Market Entrants

Growth market

Red syrup industry is the growing industry in Pakistan due to its tradition, living style of people and

hot season or mostly hot atmosphere. So there are a lot of opportunities available for the newcomer

who wants to start red syrup business.

Major competitors

But the main thing is that for a newcomer is that there are some major competitor in the market who

have hold a huge share in market of Pakistan even some like qurshi and hamdard have capture some

amount of share in other countries like UAE, Africa etc. so it will be a very hard job to compete

them and get a market share against them. No drought it will be a great war of market share in red

syrup industry.

Capital requirements

If you want to set a business at national level it will required a huge amount of capital because its

plants & factory, offices at different location, your staff, distribution channel, and advertisement will

charge a huge amount of capital. its will be difficult to start business with less amount of capital if

we will do that then we will not be able to enter in the war of market share in red syrup industry in

Pakistan.

Marketing, distribution cost

In start to make a brand name in market of red syrup industry it will consume a huge amount of

advertisement and to sell your product at different locations in Pakistan it will also consume a huge

amount of distribution cost.

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Experience and learning

New comer should have some knowledge about this industry ups and down of that industry then he

will be able to do his business success fully.

Switching cost

Switching cost of changing the business is very high because your plants and other thing assets will

not easily sale when ever you will want and at the time of shutting down you will have to face a lot

of loss.

Access to in put

New comer will never be facing some problems during purchase of inputs because there are no of

suppliers of herbal are available in market.

Government policies

There are no special limitations by the government for a person who want to setup business of red

syrup in Pakistan he should get a licence or register his firm it will be in his favour if he want to do

business at national and international level.

2. Supplier Power

No. of supplier

A lot of suppliers are available in market so there is no any problem to get the inputs and no need to

import the inputs from any other market.

Substitutes of in puts

Because in red syrup the use a lot of herbal so product so there are no any substitutes are available in

market of natural herbal products

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Threat of forward integration

Supply have less power of bargaining because they have no capability to forward integration means

they are not able to produce it self red syrup and not able to sell it in market of Pakistan in large

quantity.

Switching cost of supplier

Because in market very little amount of buyer are present so they can never bargain them and can

never easily switch to the other buyer party

Overall Supplier power:

Suppliers have low bargaining power as compare to the buyer.

3. Buyer Power

Substitutes in market

A lot of substitute’s are available in the market so no of choices are available in the market buyer

can switch easily to any other substitutes.

No of buyer

Huge amount of buyer are available in the market.

Switching cost of buyer

Switching cost of buyer is very low red syrup to any other substitutes.

Buyer power

Huge amount of buyer are available in the market, and no of substitutes are also available and

switching cost of buyer are very low so overall buyer are powerful as compare to the suppler.

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Back wards integration

Buyer have no capability to backward integration means a lot of buyer are available in the market of red

syrup industry in Pakistan but they have no capability to produce it self red syrup easily.

4. Competitive Rivalry in red syrup

Major market share

3-4 firms have captured a huge amount of share in red syrup market like Hamdard, Qarshi, Norus, and

Marhaba. According to sale of 2005.

HAMDARD (ROOH AFZA = (40%)

QURSHI (JAM-E-SHIRIN = (52%)

MARHABA = (2%)

NURUS = (4%) APPROXIMATILLY

OTHERS = (2%)

Same products

Competitors in the red syrup industry produce nearly same product with the little difference of taste.

Slow industry growth

Industry growth rate is 3-4% annually its show that it’s a very slow growth rate.

5. Substitutes of red syrup

No. of substitutes

A huge amount of substitutes of red syrup are available in the market due to which customers have a no

of option during purchasing and so customer is in power.

Switching cost of buyer

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Due to the availability of no of substitutes in market switching cost of buyer are very low.

WHAT IS STRATEGY

This portion of project tells us about what is strategy. It tells how to implement the new strategies. A

strategy establishes a vision of how our company can differentiate it self economically from our

competitors, and how various activities, which we do, will help us to accomplish the vision.

Operational Effectiveness Is Not Strategy

Positioning once a heart of strategy is now failed and rejected just because the competitors can quickly

copy any market position and the competitive advantage is for the very short period.

The reason of the problem is the failure to distinguish between operational effectiveness and strategy.

The main problem lies when the companies inability to translate those gains into sustainable

profitability. As manager’s tries to push to improve on all fronts, they move further away from viable

competitive positions.

Operational effectiveness means performing these activities better that is, faster, or with fewer inputs

and defects than rivals. Companies can reap enormous advantages from operational effectiveness. The

maximum value a company can deliver at a given cost, given the best available technology, skills, and

management techniques shifts outward, lowering costs and improving value at the same time. Such

competition produces absolute improvement in operational effectiveness, but relative improvement for

no one. And the more benchmarking that company’s do, the more competitive convergence you have

that is, the more indistinguishable companies are from one another.

Strategic positioning attempts to achieve sustainable competitive advantage by preserving what is

distinctive about a company. It means performing different activities from rivals, or performing similar

activities in different ways.

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Superior performance is the primary goal of any enterprise and for that the strategy and operational

effectiveness are essential. But these two work in different ways.

A company can outperform rivals if it can create a difference that it can preserve. It must deliver greater

value to customers or create compare able value at a lower cost, or do both. Superior profitability then

follows.

The essence of strategy is choosing to perform activities differently than rivals do.

Rivals can easily copy your improvements in quality and efficiency. But they shouldn’t be

able to copy your strategic.

A company can out perform rivals only if it can establish a difference that it can preserve.

The origins of strategic positions

Strategic positions emerge from three distinct sources that are not mutually exclusive and often

overlap.

Producing of a subset of an industry’s products or services (variety based positioning)

Serving most or all the needs of a particular group of customers (needs based positioning)

Segmenting customers who are accessible in different ways, although there needs are similar to

those to those of other customers (accessible based positioning)

Serving broad needs of many customers in a narrow market

Serving broad needs of few customers

Serving few needs of many customers

Some competitive activities are incompatible; thus, gains in one area can be achieved only at the

expense of another area.

Fit has to do with the ways a company’s activities interact and reinforce one another.

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Strategy rests on unique activities

Competitive strategy is about being different. It means deliberately choosing a different set of

activities to deliver a unique mix of value.

Example

Take examples of two different companies South west airlines and Ikea (the global furniture retailer)

how they choose the different strategy to gain the market share in there segment. Southwest airlines

provide short-haul, low cost, point to point service between midsize cities and secondary airports in

large cities. They avoid large airports and don’t fly great distances and its customers include

business travelers, families and students.

Whereas has A clear strategic positioning. Ikea targets young furniture’s buyers who want style at

low cost. Although much of its low-cost position comes from having customers “do it themselves”

Ikea offers a number of extra services that its competitors do not.

Conclusion

This portion of project tells us about the strategy and how it can be implemented in the market. It

tells us about the different strategies the companies prepare and act on to take the competitive edge

with its competitors. As our project is about Jam-e-Shirin (Qarshi) there are following strategies

related to our product Jam-e-Shirin and its competitor’s strategies.

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Qarshi Jam-e-

Existing Strategies

Qarshi industry has developed the following strategies to promote its products and increasing the

profitability. By using these strategies Qarshi is now able to compete with its competitors.

Selected Product

Jam-e-Shirin 800 ml

Jam-e-Shirin 1.5 litter

Jam-e-Shirin 3 litter

Competitors’ Products

Rooh Afza

Marhaba

Norus

Squashes

Sehzan and Nestle jucies

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Strategic Group Map

A strategic group map displays different competitive positions that rival firms occupy.

RIVAL FIRMS

A Strategic Group

Consists of those rival firms with similar competitive approaches and positions in an industry. Jam-e-

and Roh Afza comes in same strategic group with more than competitive characteristics in common like

sell in same price/quality range, cover same geographic areas, have comparable product line breadth,

emphasize same types of distribution channels, offer buyers similar services, use identical technological

approaches.

The closer strategic groups are on map, the stronger the competitive rivalry among member firms tends

to be.

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STRATEGIC GROUP MAP:

VARIABLES

Segment Product

Map explanation

In above map there are two variables Segment and Product.

Low income

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We can see in map that low income level people use open beverages more and after that none branded

packed beverage, but the percentage of branded packed beverage is very low. (Jam-e- Shirin and Roh

Afza).

Middle income

In the above map the middle income level people use branded packed beverage (Jam-e- and Roh Afza).

The percentage of imported juices and nestle juices is very low.

High income

High income level people uses imported juices more. And the percentage of branded packed red syrups

(Jam-e- and Roh Afza) is very low.

STRATEGIC GROUP MAP

VARIABLES

Sales Product

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Map explanation

In the above map there are two variables sales and product.

We can conclude from above map that the sales of open beverages and none branded packed beverages

are very low. Secondly the sales of branded packed red beverages are medium. And thirdly the sales of

other imported juices in the market are very high as compare to last two categories of

product/beverages.

Segments of Qarshi Jam–e-Shirin

In this portion of project we will discuss that how many segments Qarshi is serving for its product

JAM-e-SHIRIN and what strategy they are using for these segments.

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Market segmentation

The commonly used basis for segmenting the consumer market may be grouped in following categories,

which are selected by the Qarshi for its product Jam-e-Shirin as well:

1) Geographic Segmentation

Qarshi JAM-e-SHIRIN consumption is associated with the geographic as well as economic conditions

of a place. Red syrup is demanded in every area of Punjab, Sindh, & NWFP. The cultural distribution

can be stated as modernize and regional distribution will be divided into Urban, Sub Urban, Ex Urban,

and Rural. The climate of Pakistan is tropical, we have long span of summer that starts from March and

ends in October. So, the demand for Jam-e-Shirin is high in summer.

2) Demographic Segmentation

Age: People from all age groups (Focus Kids 6-12 years)

Sex: Both Male & Female

Occupation: People from all walks of life

Income: Rs. 5,000/- and above

Religion: Muslims & Non Muslims

3) Psychographics Segmentation

The social class, which is included in the target group of Jam-e-Shirin (Red syrup), is consumer from

lower upper class and middle class. They will buy this product because of their social set up and price of

the product. The consumer has wide range of personalities from dynamic to interesting. From self

confident to extra vested, from adventuresome to social able. The personality of a person makes a lot of

difference in buying power.

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The lifestyle of consumer varies from flashy, liberal modern to dull conservative and backward. It is a

very important factor which very much influences the buying pattern of the consumer. People will be

mostly influenced by high quality, healthful richness and branding of product.

4) Behavioural Segmentation

The customer expects high quality in a new product to shift from existing one. Red Syrup (Jam-e-Shirin,

etc) is pure and 100% natural drink, which creates loyalty and consumers normally don’t shift from this

product. Jam-e-Shirin is available in different sizes plastic bottles and convenient for consumers that

they can use it any time at home with out any expiry date. It is very frequently consumed product so its

usage rate is very high in summer and especially in the month of holly RAMZAN.

5) Benefit Segmentation

The people group (old age) more sensitive for healthy lifestyle and wanting mild fragrance of drink

are more attracted and benefited by Jam-e-Shirin. Because in old age people don’t like Pepsi, coca cola

etc due to harmful impact on their health and some times doctors strongly recommend to old age people

that they should use natural and pure drinks like Jam-e-Shirin because it has no side effects on health.

6) Target Market

A target market is defined as a group of customers (people or organization) at whom seller specifically

intends to aim its marketing efforts. For this purpose company must analyze three components:

Consumer

Buying Power

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Social and psychological factors influencing buying patterns

With the increase in literacy rate, awareness about health and physical fitness is cutting across our

society. This means Red Syrup industry has market in each age group of society. Due to increased

industrialization the income and the life standards are improving. But the new generation is becoming

modern and their life style is totally change and they like Pepsi and coca cola rather than Red syrups.

The main uses of Red syrup (Jam-e-Shirin) are

Health and fitness

Serving

Refreshment and entertainment

On the basis of above information Qarshi Industry adopted differentiated Marketing Strategy for

different drinks like Sundel Syrup, Ilachi Syrup, Almond Syrup etc and about 200 medicated products.

Natural resources are not limited and Qarshi industry can introduce different flavors for different

segments of the market and different marketing programs for each segment.

Segmentation Strategy

Qarshi industry is targeting all above-mentioned Segments and they have developed multiple

strategies for a single product Jam-e-Shirin because each & every target segment is getting benefit

from this single product (JAM-e-SHIRIN) like:

Females are more conscious about their health & fitness and also for their kids and whole family.

Hospitable people. Hospitality is considered to be a very important and deeply rooted

characteristic of Pakistani traditions. People feel it prestige to serve their guests in a most

affordable, courteous and better manner and Jam-e-Shirin takes a few minutes in preparation.

Teachers also convince students for selecting delicious, energy & natural drink full of fun like

Jam-e-Shirin.

Doctors prescribing natural herbal drinks to Women, Children and Old age people. Mostly

children are getting benefits from jam-e-Shirin because sometimes children don’t drink milk and

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mothers prepare Jam-e-Shirin by mixing milk in it and children drink more than average. It’s a

strategy of Qarshi Jam-e-Shirin for targeting children segment. And more over Qarshi industry

prepared Jam-e-Shirin in a way that each and every segment is getting benefit from it.

PRODUCT

1) PRODUCT VARIETY/ LINE

Jam-e-Shirin is available in single flavor but the Qarshi industry has broad range of Product

line/variety. All the products are made from 100 % natural ingredients with no artificial flavors. Each

product of Qarshi Industry has no side effects on health.

Qarshi Industry’s Products

Product Line Of Drinks

1) Jam-e-Shirin Syrup (Leader)

2) Sundal Syrup

3) Almond Syrup

4) Ilaichi Syrup

Product Line Of Medicines:

1) Herbal Joher Joshanda (Leader)

2) Herbal Health care Medicines

3) Herbal Diabetes Medicines

4) Herbal Demagi Tonic

5) About 200 Medicated Products

6)

PRODUCT STRATEGY

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1) BRAND NAME

Brand name is “JAM-e-SHIRIN”.

2) QUALITY

Demanding businesses require quality, efficient and cost effective to protect and taking excellent

environment. So Qarshi Industry is responsible to maintain a standard by ISO 9001 (UK), 14001(UK),

HACCP (China), 17025(Norway), and Organic Certification (Holand). Jam-e-Shirin is made by natural

things like Refined Sugar, Aqua Distillate, Santalum album, Rosa, damascene, Parmelia perlata, Aqua

Distillate, Pandanus tectorius, Andropogon, muricatus, Sodium Benzoate as Preservative, Citric Acid,

Food colour.

3) FEATURES

There are some important features in our product JAM-e-SHIRIN, which compete in the market place

against existing company.

Jam-e-Shirin Syrup has capacity to store it for a longer period of time, which creates a differentiated strategy against other drinks in market.

Jam-e-Shirin is 100% pure drink without any chemicals or artificial flavors.

You can add water to prepare Jam-e-Shirin or milk to enjoy the different flavor especially for

children.

Use Jam-e-Shirin to reduce thrust & feel refreshment.

4) SIZE

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Jam-e-Shirin is an excellent source of refreshment; it is available in following attractive sizes and

packing:

800 ml Jam-e-Shirin

1.5 Litter Jam-e-Shirin

3 Litter Jam-e-Shirin

5) DESIGN & PACKING

Jam-e-Shirin is available in different shapes of plastic bottles. Packaging is a vital aspect of product. It

serves as the silent “Salesman” on the shelf.

PRODUCT STRATEGY

The product strategy exploit by the Qarshi industry for Jam-e-Shirin is that:

Consumer can use it for a longer period of time (1 year Expiry) and

Easy to make.

Consumer can prepare Jam-e-Shirin by adding water or milk”.

PRICING STRATEGY

Price is the value of a product expressed in the terms of money and any other monetary medium of

exchange. The price of a product is major determinant of the market demand for the item. Price effects

the firm’s competitive position and its share of the market. As a result, price has a considerable bearing

on the company’s revenue and net profit. Price of Jam-e-Shirin is determined through these evaluations:

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1) DEMAND FOR THE PRODUCT

To estimate the market potential of JAM-e-SHIRIN Qarshi industry adopt two methods:

Direct Derivation Method

Survey of Buyers Intention

This survey revealed that the people of Pakistan are quite dynamic in their tastes, quality, preferences

and also health conscious. They always welcome new changes open heartily and if that change is good

in quality and other features, they do adopt it. But the Jam-e-Shirin creates loyalty, and customers

usually don’t switch from it and prices are stable in both season summer & winter.

2) TARGET MARKET SHARE

The market share targeted by Qarshi Industry for Jam-e-Shirin is a major factor to consider in

determining the price of Jam-e-Shirin. While estimating the demand Qarshi Industry keep its production

capacity in mind as a major factor. Qarshi Industry is targeting middle and lower income group as its

market and determine its price according to their buying power and buying patterns.

3) COMPETITIVE PRICES

Name and prices of main market players in Red Syrup are given below:

FACTOR Qarshi&Hamdard Naurus-Sundip Marhaba

Product

Jam-e-Shirin

Rooh Afzah Rose Syrup Rose Syrup

Price range 85-300 85-250 80-250

It is very important to determine right price at right time. Pricing policy of the company is cost plus

pricing which means setting the price of one unit of a product equals to unit total cost plus desired profit

on the unit.

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For pricing strategy important elements are

Cost of Product + overheads+ service + profit +Brand image

PROMOTION STRATEGY

Promotion activities mean to communicate with the potential customers. Promotional mix is an

important program of the Qarshi Industry, which is combination of Personal selling, advertisement,

Sales promotion, publicity and public relations. Advertising message should be based on positioning

statement. The message should be attractive, appealing and persuasive. So, advertising agency must

correlate all factors for successful promotional plan for Jam-e-Shirin. Keeping in mind the promotional

budget, advertisement is recommended as:

Qarshi industry advertises its product Jam-e-Shirin in Jang, The news and monthly family

magazine to aware the product to people.

Adds in Television, Radio and through Billboards

1) ADVERTISING

Qarshi industry advertises its product Jam-e-Shirin through Television Ad, Banners, Posters, Billboard,

Newspaper Ad, and Qarshi Products Magazine.

2) PUBLIC RELATIONS

Qarshi Industry has a lot of retailers, wholesalers and distributors in the different cities that have strong

communication and relation with public. They provide some useful information about Qarshi product

(Jam-e-Shirin) with sympathetic attitude and emotional feelings such as “This product is 100% pure and

is prepare with herbal natural ingredients for your needs and it is only Pakistani product to compete

other countries’ product”.

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3) SALES FORCE

Qarshi Industry is expanding the advertisement range from different style or types in the different

category of shops day by day. So people will be bound to purchase Jam-e-Shirin because of high-class

advertisement and coverage.

4) SALES PROMOTION

Qarshi industry also promotes its product Jam-e-Shirin by sales promotion, like Qarshi industry gives

more Incentives/Profit Margin to retailers. By adopting all these strategies Qarshi industry promote its

product JAM-e-SHIRIN in a well manner.

POSITIONING

100% Natural & Pure Syrup ------ As Pure As Nature

It is very important that how can marketers position their products, their distribution channels, their

technologies, even their company’s corporate identity? Positioning is the process of achieving a desired

place in the mind of target market.

Jam-e-Shirin positioning approach is by product attributes, benefits, usage occasions, away from

competitors, and product classes:

1) Product Attributes

The characteristics of Jam-e-Shirin are as follow:

Hillal

100 % Pure

Herbal Natural Ingredients used to prepare it

27


No side effects on health

2) Product Benefits

Benefits of Jam-e-Shirin are different for different class of users like:

Positioning for Youngsters: (100 % Fun & Refreshment)

You’ll love Jam-e-Shirin because it is fun, refreshment, and natural taste.

Be bright and strong with healthy and tasty Jam-e-Shirin.

Positioning for Females and Families: (100 % Natural)

Jam-e-Shirin is full of nutritious contents is best Syrup for women.

Hospitable women looking to serve 100 % pure Natural drink, Jam-e-Shirin is available in

convenient 800 ml, 1.5 litter, and 3 litter plastic bottles.

For families & Guests using Jam-e-Shirin is the best drink to provide a natural flavor with

hundred percent freshness in taste and fragrance.

POSITIONING FOR KIDS & OLD AGE PEOPLE: (100 % Pure)

Good Health necessary for Good Life.

Jam-e-Shirin provides an excellent source of Vitamins, with no added artificial flavor or

chemicals. Add Milk to prepare a beneficial Jam-e-Shirin drink (full of vitamins) for your kids

and see your kids more healthy.

Kids love pure drinks because it is fresh and naturally tasty and will bring a smile to your child’s

face with every glass.

Jam-e-Shirin is the best drink for old age people because there is no harmful impacts on their

health after drink it.

3) Usage Occasions

28


When to use Jam-e-Shirin

Use jam-e-Shirin to reduce thirst or feel refreshment in hot weather.

Use jam-e-Shirin in the month of Ramadan to reduce thirst or feel healthiness.

Use Jam-e-Shirin to serve your guests.

How to use Jam-e-Shirin

Pour 25 ml Jam-e- concentrates into one glass (225 ml) of chilled water or milk and shakes

well. Jam-e- can be taken at any time of the day or night when desired, mixed with water,

milk or diluted curds so as to suit your taste. One bottle (800 ml) of Jam-e- is enough to

prepare 32 servings.

4) Away from Competitors

Jam-e-Shirin’s Positioning is away from competitors in the following ways:

You can store it for a longer period of time (1 year).

Available in different size of plastic bottles.

No harmful ingredients use like cola drinks etc.

Distribution

1) - CHANNELS

Qarshi Industry is improving day by day quickly the range of channels in the different area of different

countries in the advance level through a large number of distributors, and retailers.

Producer---------distributors---------- Retailer-----------End users

29


Qarshi Industry uses this channel for distribution of Jam-e-Shirin . Since the timely distribution is the

basic requirement to promote sales and have confidence of retailers, one department concentrate on

following:

Controlling Staff of distribution department.

Specify goals and objectives of department.

Maintaining a regular and perfect communication with the retailers.

Communication of retailers’ complaints about the product price, product quality and distribution

to the concerned staff.

Reviewing placement of Jam-e-Shirin in shelves and racks of stores and shops and observing

consumer response.

Thus selective distribution policy is adopted.

2) COVERAGE

We have advance range of advertisement in the different countries as visual Live or recorded Coverage

such as Television and online in the website www.Qarshi Industries (Pvt) Ltd .com. You can see all the

information about product details individually in Home Page.

3) LOCATIONS

Qarshi industry’s main focus areas and locations are given forward: -

In Pakistan:

1- Lahore

2- Faisalabad

3- Islamabad

4- Hyderabad

5- Nawab Shah

6- Sibbi

30


Jam-e-Shirin is available in all other major cities of Pakistan. And also export in:

Outside Pakistan

1- SAARC Countries

2- Africa

3- Middle East.

4) TRANSPORT

Different types of transports are available for services of the distributors. Because Qarshi industry want

to provide product to the customers safely and full of taste.

Production Strategy of Qarshi Industry:

Qarshi Industry adopts the following Production strategy for Jam-e-Shirin:

Demand For Jam-e-Shirin:

A tasty, refreshing and efficacious drink. Not a single drop of water is used during its preparations. It is

prepared from pure distillates (Araqiyat). Jam-e- satisfies thirst and is wholeheartedly refreshing. After

drinking Jam-e-, one does not feel heaviness of the stomach. Jam-e- retains its taste, efficacy and

usefulness in all season.

Production Strategy of Jam-e-Shirin:

To know the production strategy of Qarshi Jam-e-Shirin we interviewed the production manager of

Qarshi Jam-e-Shirin and get the following results:

Production Season:

31


Qarshi Industry produces Jam-e-Shirin for 10 months, starting from February and stops the production

at the end of November. Qarshi industry doesn’t produce Jam-e-Shirin in the months of January and

December. January and December both are the off periods that’s why they don’t produce in these

months and fulfill the demand in these two months from the stored material.

Production Capacity:

The beverage production plant of Qarshi has capacity to produce about 20 thousand tons material daily

and they produce all type of Syrups on daily basis like Jam-e-Shirin, Sun dip Syrup, Ilaich Syrup,

Almond Syrup etc.

Production of Jam-e-Shirin:

Qarshi industry produces about 10 thousand Pets of Jam-e-Shirin on daily basis and each Pet contains 6

bottles of Jam-e-Shirin.

Production Strategy of Competitors:

There are two main competitors of Jam-e-Shirin, Hmdard ROOH AFZA and NURAUS,

Production Strategy of Rooh Afza:

Rooh Afza produces its material from the month of February and end production in the month of

November.

Production Strategy of Nuraus:

Nuraus starts its production in the month of March and end the production in the month of August

Competitors Analysis For The Leaders Of Another Strategic Group:

32


We have chosen two strategic groups and done the competitors analysis for the leaders of each

strategic group as follow:

1) Strategic Group Map Of Juice Industry:

VARIABLES:

Segment Product

33


LEADER:

NESTLE JUICE

RIVAL INDUSTRYIES:

SEHZAN JUICE

COUNTRY JUICE

34


Position of Rival Industries

In above strategic map there are two rival industries, Sehzan and Country juice industries. Both

industries produce almost same quality of juices with same pricing strategy and these both industries

have same distribution channels and also targeting the same segments in the market. Due to low

quality these industries are targeting low-income level people.

Nestle The Leader

Nestle is the market leader in juice industry we have developed the competitor analysis for Nestle to

see how Nestle become the market leader in the Juice industry and what strategies they are using:

Competitor Analysis For the Leader Nestle

Brand Image

To become the market leader Nestle Company spend more budget on advertisement due to this the

brand image has been increased in the mind of people and they just want Nestle drinks and also high

quality.

Quality

Nestle Company always focuses on the quality of products and also R&D with about 150 quality test

certificates, and never looses its customers due to poor quality.

Product variety

35


Nestle company introduced so many flavors of juices for targeting different segments. This strategy

helped the Nestle to become the market leader. Because increase in product line or variety means

increase in sales and profitability.

Advertisement

Advertisement also plays an important role for the image of product and company. Nestle Company

spends high budget on advertisement it creates brand image and people attract towards the product.

Strategic Group Map Of Cola Industry

VARIABLES:

Sales

Product

36


LEADER:

PEPSI COLA

RIVAL INDUSTRIES:

COCA COLA RC COLA

Position of Rival Industries

In above strategic group map of cola industries there are two rival industries, COCA COLA and RC

COLA. These both industries have same amount of product variety, same distribution channels in

37


Pakistan, same prices, but the sales of COCA COLA are high as compare to the RC COLA due to

brand image and high advertisement. RC COLA is available only in Pakistan.

PEPSI COLA the Leader

PEPSI COLA is the market leader in COLA industry we have developed the competitor analysis for

PEPSI COLA to see how PEPSI become the market leader in the cola industry and what strategies

they are using:

Competitor Analysis for the Leader PEPSI

Acquisition Of 7up Industry

Pepsi cola industry has acquired the 7up Industry to increase the sales. The logic behind this acquisition

was that the distributors of other cola industries like RC cola were selling their cola beverages with the

help of 7up. The distributors of RC cola industry were selling both, RC cola & 7up to the retailer. Now

PEPSI has captured the market of RC cola.

Brand Image

To become the market leader PEPSI COLA Industry spend more budget on advertisement due to this the

brand image has been increased in the mind of people and they just want PEPSI cola and also high

quality.

No Distributors

Pepsi cola industry has removed the distribution channels or agency system and focuses on direct sales

to the retailers/shop keepers. With the help of this strategy PEPSI cola is now saving the profit margin

of agencies. But their transportation cost has been increased.

38


Producer ---------- Retailer-----------End users

Product variety

PEPSI industry has increased its product line by acquiring 7up, and also introduced mineral water in the

market to increase the profitability.

High Advertisement

Advertisement also plays an important role for the image of product and company. PEPSI industry

spends high budget on advertisement it creates brand image and people attract towards the product. All

the above strategies help to the industries to become the market leader.

Competitors Strategies

Our main competitor now are Pepsi and Coca-cola and juices their main strategies are heavy

advertisement and to create a good image in the mind of the consumer. Pepsi and Coca-cola are also

very active in sponsorships for games and other big events for promoting their brand image and selling

their products. Now Pepsi Pakistan is going to handle the business for the main company PepsiCo in

Middle East and Africa. This surely will increase the horizon of Pepsi Pakistan. Juices on the other hand

have been promoted with the slogan of being pure and hygienic. The number one brand in juices is

Nestle and in local companies it is Shezan but now other companies are also entering this business.

Our Response

We are not a direct competitor of Pepsi and Coke but come as substitute and we have been fighting with

Pepsi for the last three or may be more years through advertisement. In the beginning our product falls

in the category of Red Syrup drinks which needs preparation. Now we are going to introduce an instant

drink which is not present in the market. This drink will come with direct competition with Pepsi, Coke

39


and Juices. As this drink is a change in our old drink we have to make a slight change in the name. We

will also introduce new flavors in it with the passage of time.

New entrant

One new company is trying to enter the Pakistani Red Syrup market which is Sharbat-e-Azam from

Darbur an Indian company.

New entrant Strategies:

Indian products are already in the Pakistani market and many people are familiar with the name of

Darbur through cable channels advertisement and the company will also take advantage of free trade to

cut down duties cost. They will try to cash on their brand name to sell their new product.

Red Syrup Industry

Red syrup industry is a growing industry in Pakistan and different companies has the different market

share in this industry we can see it in pie chart;

So in this chart we can see that jam-e- and Roh Afza has the main share of Red Syrup industry and these

are the main competitors but norus has also good share but not a big competitor of Qarshi.

40


Soft drink Industry & Red Syrup

We can divide into 5 parts of our soft drink industry. These can be cola drinks, squashes, juices, syrup

and powder drinks. The market share of these industries are almost (base on assumption) cola drinks has

56.6% market share, squashes 4.71%,juices 22.62%, Syrup 10.6% and powder drinks has 5.47%. the

total sales of the soft drink industry is 50.3 billion and syrup industry share is 10.6% and if we calculate

only jam-e- share in soft drink industry it is 5.09% of overall soft drink industry. We can see these

distributions in pie chart;

Calculation of Market Share of Jam-e- in over all Soft Drink industry

41


Market share of Jam-e- = Company Sales * 100 Total Sales

Market share of Jam-e- = 270400000 * 100 5300000000

Market share of Jam-e- = 5. 09 %

Jam-e- Sales for Last 5 years

Sales Forecast for 2007 and 2008

Now we will forecast Jam-e- sales for the year 2007. For fore casting we will use two different methods one is smooth fore casting and other is Holt Winter Model. Here is the sale fore casting for year 2007;

Smooth Fore Casting MethodE1=Y1

E2=wY2+(1-w)E1

w = .8

YEAR Sales FORECAST 2001 152000000 1520000002002 180300000 174640000

42


2003 197100000 1926080002004 234500000 2261216002005 265500000 2576243202006 270400000 267844864

Forecasting the sales for 2007 and 2008

F2007 = E2006

YEAR FORECAST2007 2678448642008 267844864

050000000

100000000150000000200000000250000000300000000

1 2 3 4 5 6

Years

Sales Fore Cast

Sales

FORECAST

43


Sales Forecast with Holt-Winter Models

Formulas using for calculating components of the Holt-Winters Model

E2=Y2

T2= Y2-Y1

E3=wY3+(1-w)(E2+T2)T3=v(E3-E2)+(1-V)T2

YEAR Sales Et(w = .8) Tt(v = .4)2001 1520000002002 180300000 180300000 283000002003 197100000 199400000 246200002004 234500000 232404000 279736002005 265500000 264475520 296127682006 270400000 275137657.6 22032516

FT+1 =ET+TT

F2007 297170173

Ft+K = Et+kTt

F2008 319202689

YEAR FORECAST2007 2971701732008 319202689

44


Perceptual Map of Jam-e-Shirin

Perceptual Map 1:

Price: Price deals will the value of single bottle

Availability: This deals with the availability of the bottles on the shop near to the consumers.

Sales Forecast with Holt Winter Model

0

100000000

200000000

300000000

1 2 3 4 5 6

Years

Sales

Forecast

Attributes ROH

AFZA

JAM_E_ NORUS MARHABA LOCAL

PRICE4 4 2 2 1

AVAILABILITY

4 5 3 2 2

5 JS

45


Explanation of Map 1

Jam-e- ranked highest in the price and availability perception map which means that the consumers are

satisfied with the price of Jam-e- and that it is easily available in the markets from where the consumers

can buy it without any problem whereas Roh Afza is ranked lower to Jam-e- and Norus is lower than

Roh Afza, whereas Marhaba and local red syrups got unsatisfactory results from the respondents.

Perceptual Map 2:

Quality: This means whether the product is hygienic for health and can it be consumed safely.

Brand Name: This explores the perception of people about the brand they are using is associated to

what extent with their life style.

Explanation of Map 2:

Jam-e- ranked highest in the quality and brand name perception map which means that the consumers

are highly satisfied with the quality of Jam-e- and that it has good brand image in the minds of the

consumers that’s why most of the respondent gives full marks to the brand name factor. Whereas Roh

Afza is ranked lower to Jam-e- and Norus, Marhaba and local red syrups got unsatisfactory results from

the respondents.

Perceptual Map 3:

Packaging: Packaging deals with the covering through which the product reaches the consumer.

Taste: It deals with the sweetness, bitterness, sourness, saltiness of the product and the ingredients of the

product.

Attributes ROH

AFZA


QUALITY4 5 2 2 2

BRAND NAME

4 5 2 2 2

Quality

Brand Name

321 4 5

1

2

4

5

RA

JS

NRMHLO

Attributes ROH

AFZA


PACKAGING4 5 3 2 2

TASTE

4 5 2 2 2

46


Explanation of Map 3Jam-e- ranked highest in the packaging and taste perception map which means that the consumers are

satisfied with the taste of Jam-e- and that it is packaged in a nice looking durable transparent bottle.

Whereas Roh Afza is ranked lower to Jam-e-, Norus is better than Marhaba and local red syrups got

unsatisfactory results from the respondents.

Packaging

Taste

3

1

2

4

5

21 4 5NR

MHLO

RA

JS

47


Decision about New Product

After analyzing CVA, we found two gaps in our product one is people want instant drink because they

don’t want to take it at home and mix water, lemon and sugar because if people have thirst they don’t do

all such things. People want instant Jam-e- which they will take from shop and drink. Secondly we

found that they want Diet Jam-e- but more than 50% people emphases on instant drink and about 25 %

people want sugar free. Now we are not able to decide that which product we should launch first

because we can launch one product this time and after developing first one we will launch second one so

for decision purpose that which product we should launch first we will make decision tree and then we

will be in good position to decide whether we should launch instant drink first or sugar free. We found

another thing that people not use jam-e- for fashion or enjoyment, people always drink Jam-e- for feel

refresh only that’s why new generation not drink red syrup. They feel that it is old fashion so our target

will be the change their mind and make Jam-e- fashionable. Here is our people opinion for new

innovation which they want to see in Jam-e-.

Innovation In Jam-e-

Total1.00 2.00 3.00 4.00 5.00 6.00QUESTION 14 READY TO

DRINK 5 7 9 9 3 2 35

CHANGE COLOR 1 2 1 0 0 0 4

SACHET PACK1 0 2 2 1 1 7

DIET (SUGAR FREE)

0 6 1 4 2 2 15

Total 7 15 13 15 6 5 61

So in this chart

we can clearly

see that More

than 60 %

48


people want instant drink and 25% people want sugar free but we will decide it after making decision

tree.

Decision Tree

28.685 % 0.5 Launch 57.37 %

Instant Drink 0.5

28.685 % 0%Don’t

Launch

Launch 25%

12.5% 0.5

Sugar Free

0.5

0%

Don’t Launch

49


So here we got the result that we should launch first the instant drink with new fashion and after

establishing this product we will go for the sugar free Jam-e- and it is our next good news for sugar

patient that after success of instant Jam-e-, our next target will be the sugar free Jam-e-.

New Product

So after above analysis we have reached on this result that we should launch new product which is

“INSTANT JAM-E-”. We can enhance our sales with the help of instant drink and can change the

perception of people who think that it is a old fashion drink because we will launch this drink in

different colors and flavors, for competing cola drinks we are launching this drink in 500 ml plastic

bottles only in Rs.12 which will compete cola 250 ml bottles as well as 500 ml.

Benefits of the Product

The instant drink of Jam-e- is a valuable product because after analyzing all aspects of Jam-e- we found

that it is the best time to launch instant Jam-e-. If we see the market no one introduce this type of

product and the drop back of Jam-e- is only that it is not instant. So we are introducing Instant Jam-e-

and in our opinion it has a lot of benefits for customer, those are as under;

First and very important benefit of this product which can compete cola drinks is that, it is ready

to drink any one can take & drink this any where any time and with this characteristic we can

compete cola drinks because its 500 ml bottle customer will purchase only in Rs 12 and this

bottle will compete with 250 ml and 500 ml bottles of cola drinks.

People become health conscious and there are so many new diseases born like hepatitis A,

Hepatitis B, Dingy virus and many others so people don’t want those products which may

happen of these diseases. Cola drinks are not good for health in long run so our product is totally

Herbal product and not a harmful product for our health so people will prefer this product on our

product.

50


It can not put bad effect on the health of the people because we are launching our product in

disposable bottles and it is totally herbal.

Customer will feel gratification after using this product and it will give great satisfaction of our

customer.

This is totally herbal so its ingredient reduces our tension and depression into comfort so after

using this we feel fresh.

Its color is totally different from existing product of drinks.

It has lemon (vitamin c) in its taste which is very necessary in summer.

Now customer can drink any where, whether they are in car or they are in plane, they can carry it

easily and drink where they want.

Identification of Segment:

For this particular our segment which are health conscious and quantity conscious so our segment is,

those people who are 18 – 32 age , and second segment who are health conscious they can be from any

age group. It is not for high class group product it is for middle class and lower middle class people.

Here we will segment our product from demographically and geographically.

51


Age Group for Segmentation

In the survey of 61 people 35 said they want instant drink and from which 16 people who belong to 21 –

26 want instant drink and from other ages gave normal response so we found our target market that is

collage and university student and that is some where 18 to 29 which can be our target for instant drink.

15 – 20 05

21 – 26 16

27 – 32 05

33 – 38 05

More than 46 % people in this age group

52


Segmentation from Income Level

If we segment our target market from income level so it can be;

So we can see in this chart that our segment is very clear that more than 90% people lie in lower

segment or who they belong to middle class or lower middle class so if we segment our product it can be

middle class and lower middle class people.

53


Segmentation from Geographical Location Of Lahore

From the result of CVA we can segment our target market from geographical location

Here our target market is not a A class people or high class people we are targeting middle class and

lower middle class people all over the Lahore.

Upper LahoreRavi, Badshahi MasjidC Class

Defense A class

Gulberg, Garden Town, Model Town A,B ClassTown ship

Faisal TownJohar TownWapda town

B Class

Krishan Nagar, Maal RoadA,B,C Class

Mughal Pura

B,C Class

54


Calculation of Segment Potential

Total People of Lahore = 10,000,000

For Student

4500000 * .5 * .1 = 225,000

For Other Middle Class People

4500000 * .5 * .3 = 675,000

Aggregation of Segmentation

So our first segment is the young people.People who belong to middle class like A or B class.There income level is medium not a high income segment.

55


STRATEGIC FOCUS

Purpose of the Marketing Plan

Purpose of this marketing plan is to explore the marketing strategies for launching a new instant drink

by the name of Jam-e- instant in all over Pakistan and if possible abroad. Jam-e- instant is an instant

drink with the qualities of original Jam-e- intended to provide highly enriched taste in diverse flavors.

This document provides a detailed analysis of environmental scanning, industry analysis, targeting,

positioning, competitors, and price and product strategies for Jam-e- instant.

Mission Statement

“We provide high quality instant drink with rich taste catering to the diverse taste of our valued

customers, and intend to be one of the leading instant drink producers that satisfies the need of all

stakeholders by exploring the market opportunities”

GoalsOur goal is to become the definitive benchmark and overwhelmingly the preferred instant drink. Jam-e-

instant objectives for the first three years of operation include:

Creating a high-quality, intimate, and accepting atmosphere that will differentiate our self from the

typical drinks and juices.

Providing high-quality instant drink and regular red syrup at a competitive price.

Porter’s Generic Strategies Model

Cost leadership strategy Differentiation strategyBroadMarket

Scope

56


Focused low cost strategy Focused differentiation strategy

Strategies

Differentiation. The organization’s resources and attention are directed toward distinguishing its

products from those of the competition.

Cost Leadership. The organization’s resources and attention are directed toward minimizing costs to

operate more efficiently than the competition.

Focused differentiation. The organization concentrates on one special market segment and tries to

offer customers in that segment a unique product.

Focused Cost Leadership. The organization concentrates on one special market segment and tries in

that segment to be the provider with lowest costs.

The Jam-e- instant Strategy

The Jam-e- instant is positioned in a unique special market, which suggests a differentiation strategy.

Such a strategy is accomplished through marketing a product unique from the other products sold in the

market and offering focused objectives.

SWOT Analysis

A SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses,

Opportunities, and Threats involved in a project or business venture. Strengths and weaknesses are

internal to our business. Opportunities and threats originate from outside the business. A SWOT analysis

Narrow

Low Price Uniqueness

Source of Competitive Advantage

57


is performed early in the project development process, and helps organizations evaluate the

environmental factors and internal situation facing a project.

Strengths

1. Best Product Quality

2. Visionary and capable leadership / Entrepreneurial orientation

3. Low cost drink than competitor

4. Financially stable

5. Brand Image

6. Strong Distribution Channel

Weaknesses

1. Seasonal Drink

2. Expiry period

3. Old fashioned drink

Opportunities

1. People prefer instant drink.

2. Consumers like to taste new flavors.

3. Huge Gap for this type of Product in market.

4. Huge market available.

Threats

1. Growing number of competition in the market

2. New entrants

58


TOWS

Strength

1. Best Product Quality2. Visionary and capable

leadership / Entrepreneurial orientation


4. Financially stable 5. Brand Image6. Strong Distribution

Channel

Weakness

1. Seasonal Drink

2. Expiry period

3. Old fashioned drink

Opportunity

1. People prefer instant drink.

2. Consumers like to taste new flavors.

3. Huge Gap for this type of Product in market.

4. Huge market available.

SO

1. S5, S3, S1

2. S5, S1

3. S6

4. S2, S4

WO

2. W1, W3

3. W2

Threats

1. Growing number of

competition in the

market

2. New entrants

ST

1. S1,S3, S5

2. S4, S5, S6

WT

1. W3, W1

2. W1, W3

59


Explanation

SO 1: We will avail this opportunity through our core strengths of

1. Brand Image



SO 2: We will avail this opportunity through our strengths of

1. Brand Image


SO 3: We will avail this opportunity through our strength of


SO 4: We will avail this opportunity through our strengths of

1. Visionary and capable leadership / Entrepreneurial orientation


WO 1: We will convert our weakness in to opportunity by

1. Seasonal Drink (Consumers like to taste new flavors).

2. Old fashioned drink (Consumers like to taste new flavors).

WO 2: We will convert this weakness in to opportunity by

1. Expiry period (Huge Gap for this type of Product in market).

ST 1: We will cater this threat by these strengths



3. Brand Image

ST 2: We will cater this threat by these strengths


2. Brand Image


WT 1: These weaknesses can turn into threats because of

1. Old fashioned drink (Growing number of competition in the market).

2. Seasonal Drink (Growing number of competition in the market).

60


WT 2: These weaknesses can turn into threats because of

1. Seasonal Drink (New entrants).

2. Old fashioned drink (New entrants).

Creative Strategies

To stop our weaknesses from turning in to threats because of the new entrants we are introducing the

new instant drink to cater these weaknesses as before we have been lagging behind from the industry as

our product is termed as old fashioned because it needs preparation now this problem is solved through

our new instant drink with exciting new taste and feeling. We will also setup new plants imported from

abroad to cater to the problem of seasonal drink issue by introducing special flavors for each season for

our valuable consumers so that they can drink our new instant drink in each season.

Internal Factor Evaluation Matrix table: (IFE table)

Factor Weight Rate Total

Strength

1. Best Product Quality 0.05 4 0.2

2. Visionary and capable leadership /Entrepreneurial orientation 0.05 3 0.15

3. Low cost drink than competitor 0.3 4 1.2

4. Financially stable 0.08 2 0.16

5. Brand Image 0.1 3 0.3

6. Strong Distribution Channel 0.13 2.5 0.325

Weaknesses

1. Seasonal Drink 0.1 2 0.2

2. Expiry period 0.04 2 0.08

3. Old fashioned drink 0.15 3 0.45

Total 1 3.065

External Factor Evaluation table: (EFE table)

Factor Impact Weight Rate Total

61


Opportunities

1. People prefer instant drink. + 0.3 4 1.2

2. Consumers like to taste new flavors. + 0.05 2 0.1

3. Huge Gap for this type of Product in market. + 0.2 3 0.6

4. Huge market available. + 0.05 2 0.1

Threats

Growing number of competition in the market. - 0.3 2 0.6

New entrants - 0.1 4 0.4

Total 1 3

General Electric Matrix (GE Matrix)

EFE

IFE

Market Attractiveness and Growth

4 3 2 1

1

2

3

4

3.06

62


STRATIGIC GROUP MAP FOR NEW PRODUCT

We want to join two strategic groups, which are as follow

Strategic Group of Juice Industry: Strategic Group of Soda/cola Industry:

Reason for selecting two Strategic Group

We are launching instant drink of Jam-e-Shirin, which will compete all type of beverages like Juices, Syrups, and Soda/ Cola. All these beverages are available in the market with the price starts from Rs. 10 to Rs. 20 and we have calculated the cost of our Instant drink of Jam-e-Shirin, which comes between these two figures so its means we can capture the shares from all types of beverages.

Strategic Group of Juice Industry

VARIABLES:

Segments

Products

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Strategic Group Map Of Juice Industry

RIVAL INDUSTRIES

In above strategic group map of juice industry there are two rival industries with similar competitive

approaches and positions in an industry. Like SEHZAN JUICE and COUNTRY JUICE comes in

same strategic group with more than competitive characteristics in common like sell in same

price/quality range, cover same geographic areas, have comparable product line breadth, emphasize

same types of distribution channels, offer buyers similar services, use identical technological

approaches. These both rival industries are targeting middle and low-income level segments.

The closer strategic groups are on map, the stronger the competitive rivalry among member industries

tends to be.

THE MARKET LEADER

Nestlé is the market leader of juice industry as we discussed its strategies in detail that how Nestlé

become the market leader of juice industry. As you can see that Nestlé is targeting high-income

segments because its prices are high as compare to other industries and quality of product is also high

due to this they have developed the strong brand image.

NEW ENTRANT/ PRODUCT

We are launching the new product of JAM-e-SHIRIN, that will be “ready to drink” at any time in

both seasons summer & winter. There is no drink available like JAM-e-SHIRIN (ready to drink) in the

market. We are launching high quality and low cost drink to target Low-income and Middle-income

level segments. With low cost advantage our price for this product will also be low for target segments

and the size of bottle is also greater than the other packed juices available in the market. We discussed

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the strategies of this new product in details under the head of Competitive Strategies Of NEW

PRODUCT to compete with juice industry.

Strategic Group of Soda & Cola Industry

VARIABLES

Segments

Products

Strategic Group Map Of Soda & Cola Industry

RIVAL INDUSTRIES

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In above strategic group map of soda and cola industry there are two rival industries with similar

competitive approaches and positions in an industry. Like COCA COLA and RC COLA comes in

same strategic group with more than competitive characteristics in common like sell in same

price/quality range, cover same geographic areas in Pakistan, have comparable product line breadth,

emphasize same types of distribution channels, offer buyers similar services, use identical

technological approaches. These both rival industries are targeting Middle and low-income level

segments.

The closer strategic groups are on map, the stronger the competitive rivalry among member industries tends to be.

THE MARKET LEADER:

PEPSI COLA is the market leader of soda and cola industry as we discussed its strategies in detail that

how PEPSI become the market leader of Cola industry. As you can see that PEPSI is targeting high-

income level segments because PEPSI COLA is spending more budget on advertisement as compare to

COCA COLA and RC COLA due to advertisement Pepsi cola have developed the strong brand image

and also increasing product line day by day.

NEW ENTRANT/ PRODUCT

We are launching the new product of JAM-e-SHIRIN, that will be “ready to drink” at any time in

both seasons summer & winter. There is no drink available like JAM-e-SHIRIN (ready to drink) in the

market. We are launching high quality and low cost drink to target Low-income and Middle-income

level segments. With low cost advantage our price for this product will also be low for target segments

and the size of bottle is same like other beverages of cola industries (500ml Plastic bottle) available in

the market. We discussed the strategies of this new product in details under the head of Competitive

Strategies Of NEW PRODUCT to compete with Soda and Cola industry.

Competitor Analysis

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Our main competitors for the instant drink are Pepsi, Coca-cola, and Packed Juices. These are present in

the country for some years and they have developed a good distribution and sales network and Pepsi and

Coca-cola are the market leaders. The annual total sales of these two leading players range between 175-

180 million crates and every year these two organized players are gaining their sales by 8 to 10 percent.

So this creates a big challenge for us to come to the level of these two big players. Nestle on the other

hand is the leader in Juices. Nestle is a foreign brand and it also has the distribution and sales network

spread in the country and abroad. Here it is important to tell that we are not competing with these big

companies at present. These companies are our target for the near future.

FACTOR Qarshi(Jam-e-)

Pepsi

Pakistan

Coca-cola

Pakistan

Nestle

Pakistan

Products

Herbal

products ,red

syrup drinks

Carbonized

drinks,

mineral

water,

Snacks

Carbonized

drinks

Packed fruit

juices, Milk

products

Price

85-150 (Jam-e-),

12 (instant

drink)

10-90

approx 10-90 approx

15-100

approx

Quality

High quality,

unique

experience

High

quality,

unique taste

High quality,

unique taste

High quality,

unique taste

Expertise Herbal products drinks drinks Milk pack,

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FACTOR Qarshi(Jam-e-)

Pepsi

Pakistan

Coca-cola

Pakistan

Nestle

Pakistan

Juices pack

Coverage

Pakistan, Middle

east, SAARC,

Africa

Pakistan,

Middle east,

Arabic

Africa Pakistan Pakistan

Appearance Good Attractive Attractive Attractive

Advertising

Billboards, TV

ads, Magazines.

TV ads,

Sponsorship,

Newspaper,

Billboards.

TV ads,

Sponsorship,

Newspaper,

Billboards.

TV ads,

Newspaper,

Billboards.

Competitors Strategies

Our main competitor now are Pepsi and Coca-cola and juices their main strategies are heavy

advertisement and to create a good image in the mind of the consumer. Pepsi and Coca-cola are also

very active in sponsorships for games and other big events for promoting their brand image and selling

their products. Now Pepsi Pakistan is going to handle the business for the main company PepsiCo in

Middle East and Africa. This surely will increase the horizon of Pepsi Pakistan. Juices on the other hand

have been promoted with the slogan of being pure and hygienic. The number one brand in juices is

Nestle and in local companies it is Shezan but now other companies are also entering this business.

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Marketing SMART Objectives For 3 Years

Each and every company has some marketing specific, measurable, attainable, and reliable and

time frame objectives for future while launching the new product or after modification in existing

product etc. So Qarshi Industry also planed the 3 Year marketing objectives for the new Product of Jam-

e-Shirin (Instant Jam-e-Shirin drink), which is as follow:

OUR VISION

“Cures Naturally Cares Globally”

Most innovative and fastest growing natural drink industry offering health conscious

products enjoyed in “every season.”

MISSION STATEMENT

“National leadership in our field”

Build Branded drink to improve quality of life by offering tasty, affordable and

highly nutritional products to our consumers to compete others.

Marketing SMART objectives in 1 st Year of launching Product

In first year during launching new instant drink of Jam-e-Shirin we want to obtain the following marketing objectives:

A. Developing the Brand Image:

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As Qarshi industry already has developed the brand image in the minds of people but to target new

segments for the new product they should focus on the following marketing techniques to fulfill the

marketing objective of developing brand image for the new product:

High Advertisement in First Year:

To develop the brand image of new instant Jam-e-Shirin Qarshi industry should spend high budget

on advertisement. Because advertisement creates the brand image and awareness of new product

which helps in increasing market share and profitability. For this purpose we will advertise our

product on the following T.V channels:

1) Before Jeo News.2) On cable Channels only.

High Quality:

Now a days people are becoming more health conscious so Qarshi should focus on high quality drink to create the good image of product.

Free Sample:

To develop the product image Qarshi industry should offer free sample of new drink to target different segments.

All the above approaches will be help full for the Qarshi to fulfill the marketing SMART objectives.

Feed Back:

Get the feed back from the group of people and check their response if there is something to modify then do that.

B. Selection of Geographic Areas

Our 2nd marketing objective in first year of launching new product is to decide that which geographic area is best for the sales of new product and in which areas the distribution should be develop.

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C. Capture Market Share

The 3rd marketing SMART objective in first year of launching product is to capture the maximum market share from new product. For this purpose Qarshi should focus on the following core and supporting strategies to capture the market share:

Core and Supporting Strategies:

Product/Market Core Strategy Supporting Strategy

1. An Instant drink (Ready to Drink)

Product:

Develop a new productJam-e-ShirinInstant Drink

Price:

Keep the price low to encourage customer interest and increasing the sales as well as capture MARKET SHARE.

Promotion:

Hire and train a new sales force to call on distribution channels; advertise in print media to create consumer awareness.

2. Target Middle and Low income Segment

Promotion:

Promote heavily by printed media, pamphlets, Banners etc.

Product:

Develop attractive packing of product to attract the customers.

Distributions:

Mention the distribution centers and availability of product for the awareness of customers.

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Marketing SMART objectives in 2 nd Year of launching Product :

During 2nd year we want to obtain the following marketing objectives:

A. Get the Feed Back About Product :

In 2nd year we will try to find out the flow of our product that what is the response of our target segment,

from advertisement etc. For this purpose we can use several methods. To know about consumer

perception about our product, we launch extensive feed back system like.

Personal interviews during purchasing from our distributions or retailers.

We keep record of our frequent customers.

Give them comment card to only those customers who ready to fill it.

Telephone interviews from our frequent customers.

And if it doesn’t work then we will make following changes in our marketing system.

If our advertisement plan fails to return our planned output. Than we reduce our budget

on those Medias not giving us healthy rate of return.

We develop an interactive web site of our new product.

After checking the feed back and calculating the sales of our new product in previous year then we will fulfill the following marketing objectives.

B. Price structure :

In 2nd year we will check the sales if sales are high then we will increase the price to cover the budget, which we spend on the advertisement etc. But this price will be stable for coming years. Because at this stage our industry will be on growth stage.

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C. Increasing Sales & Profitability:

In 2nd year our marketing objective will be to increase the sales and profitability. For this purpose we will be focusing on the following techniques:

C. Objective Requirements Expected Results

Growth with industries:

To limit efforts to those necessary to maintain market share. Reduce

product weaknesses.

Market intelligence; some

capital and expenses

investments.

Stable market share, profit, cash

flow,

Grow Fast:To grow volume and share faster than competition and faster than

general industry growth rate.

Available resources for investment.

Higher market share in short term and reduces threat

of new entrant, perhaps lower

returns.

Attain Cost Leadership:

To achieve lowest delivered costs

relative to competition with acceptable quality level. To defend against powerful

entries.

Relatively high market share;

disciplined management

efforts; favorable access to raw

material, aggressive pricing.

In early stages may result in

start-up losses to build share;

ultimately, high margins;

relatively low capital turnover

rates.

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Marketing SMART objectives in 3rd Year of launching Product

During 3rd year we want to obtain the following marketing SMART objectives:

A. Advertisement Status

In 3rd year of launching product our first marketing SMART objective is to check the advertisement status if the sales are stable and there is no threat of new entrant then decrease the expenses of advertisement and fix the time frame for advertisement.

If the sales and profitability is decreasing in 3rd year then our 2nd marketing SMART objective will be as follow:

B. Sales Improvement Plan

B Objective Requirements Expected Results

Uncovered market Areas:

To capture that part of market that is not brand loyal. To serve the needs better than present

industries like Juice and cola

industries.

Market research ability; production

capability;

Increase short-term profits. Put market on a new

growth part.

Regional-MarketApproach:

To diversify risk of dependence on

one part of a region.

Management commitment to

expansion. Logistical ability to

serve regional areas. Resources.

Increase growth rate. Increase

market share and sale volume.

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Increase retailer’s Profit

margin:

To increase the sales, because if the profit margin

of retailers will be high then they will sell more.

Material management with

low cost, maintaining all

unnecessary expenses.

Relatively low profit but high

sales.

Offer schemes in product through advertisement:

To target specific segment for short period. Increasing

supplies in market.

Low cost advantage, and

offering product schemes like 5%

discount offer etc.

Increasing sales in the off-periods

and reducing the threat of expiry date of products and storage cost

etc.

Renew or Modification:

To overcome weaknesses in product/market mix in order to

improve share or to prepare a new

generation or substitute.

Strong enough competitive position to

generate necessary resources for

renewal efforts,

Short term decline in sales, then

sudden gradual breakout of old volume/profit

patterns.

PRODUCT/MARKET STRATEGY

The following step-by-step procedure is used for formulating product/market strategy for the new product:

STEP 1

Starting with present business the growth rate of Red syrups is increasing every year. So the

market environment is better for the Red syrup industry in future. The historical performance of

Qarshi Industry was better and it’s also increasing. Our 80 % strategies for the new product will

be dependent on the existing strategies of Qarshi industry like same distribution centers serving

the same market areas etc. more over the 20 % strategies of the new product will be dependent

on the marketing SMART objectives that if our existing strategies are not up to the stander of

our new product then we take the further steps which are mentioned in marketing objectives.

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HOW TO GROW?

1) Sales increasing Plan.2) Advertisement status.3) Geographic areas etc.

STEP 2

Product/Market Environment

Over the planning period the market environment will also change like:

1) Geographic area:

Qarshi industry will have to touch new market areas and new geographic areas for the sales

of new drink (Jam-e-Shirin ready to drink). So for this purpose the market environment will

change as well as product environment will also change because there are so many

competitors in beverage industry so they will have to select the place for competing the

competitors.

2) Advertisement Status

Advertisement also plays a great role in changing the product/market environment. Like

Qarshi industry is using limited advertisement criteria but for the new product they will

have to advertise more with the help of billboards, pamphlets etc.

3) Relations with Retailers

The sales of these types of products are more dependent on the retailers because

customers have to purchase these types of drinks directly from the retail stores and

Qarshi industry mostly focuses on the distributors not on retailers. So the product/market

environment will change.

STEP 3

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If Qarshi industry starts with the existing business strategies then the product/market

environment will not be change.

If Qarshi industry adopts new strategies for the new product then the product/market

environment will change as follow:

If Qarshi industry targets the new geographic areas then the market environment will change

because they will be entering in the high competition market. And there will be so many brands

to compete each other.

Advertisement status will also change the market environment because they would have to put

the billboards in the market to create the brand image and awareness for customers.

To increase the sales of new product Qarshi industry would have to develop the good relation

with the retailers that would also change the product/market environment for this purpose Qarshi

industry would have to hire the new marketing team for the new product.

STEP 4

In this step of product/market strategy we will analyze the predictions made in step no 1,2, and 3.

if we get the positive feed back from these predictions then we will stop and would not do the

extra efforts for the growth of industry or if the sales are satisfactory/up to the target. If not then

we will change the plan and make the changes in advertisement or target the new geographic

areas.

Step 5

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New Product’s Strengths & Weaknesses

Strengths & Weaknesses Of Competitors:

STEP 6

Difference between Our Marketing Strategies & Competitor’s Marketing Strategies:

Qarshi’s Marketing Strategies

Qarshi industry should adopt the following marketing strategies to compete with its competitors, which are as follow:

First -In Strategy

Qarshi industry used the First -In strategy before the competitors like Hamdard and Nuruse etc. through this strategy Qarshi Industry can develop the good brand image in the mind of its customers.

Low price than competitors

Strengths

Best Product Quality Visionary and capable leadership/

Entrepreneurial orientation Dedicated employees Ability to produce on time Financially stable Strong distribution channel Low cost advantage then competitor’s

products. Low price Drink.

Weaknesses

People prefers modern drinks (old fashion drink)

Strength Brand Image Specialist marketing team Financially stable Capture big market areas

Weaknesses Wastage (leakage in tetra packed juices) Harm full impacts on health (cola) Shorter expiry date.

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The competitors like Nestle juices are offering 250 ml tetra packed juice with price of 15 Rs per pack and our new product will be available in 500 ml plastic bottle with the price range of 16-18 Rs per bottle.

100% pure and natural Drink:

Qarshi industry is introducing 100% natural drink to their customers with no side effects on health. Now people are becoming more health conscious and they are leaving drinks like cola etc.

Other more strategies are mentioned in the head of COMPETITIVE STRATEGIES.

Competitors’ Marketing Strategies

The competitors in beverage industry are using the following marketing strategies to compete each other:

Nestle Juice Industry’s Marketing Strategy

Product Variety Strategy

Nestle company introduced so many flavors of juices for targeting different segments. This strategy helped the Nestle to become the market leader. Because increase in product line or variety means increase in sales and profitability. Advertisement

Advertisement also plays an important role for the image of product and company. Nestle Company spends high budget on advertisement it creates brand image and people attract towards the product.

Pepsi Cola Industry’s Marketing Strategies

Pepsi cola industry is using the following criteria of marketing strategies:

Spend high on Advertisement

Advertisement also plays an important role for the image of product and company. PEPSI industry spends high budget on advertisement it creates brand image and people attract towards the product. All the above strategies help to the industries to become the market leader.

Acquisition Of 7up Industry:

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Pepsi cola industry has acquired the 7up Industry to increase the sales. The logic behind this acquisition was that the distributors of other cola industries like RC cola were selling their cola beverages with the help of 7up. The distributors of RC cola industry were selling both, RC cola & 7up to the retailer. Now PEPSI has captured the market of RC cola.

No Distributors:

Pepsi cola industry has removed the distribution channels or agency system and focuses on direct sales to the retailers/shop keepers. With the help of this strategy PEPSI cola is now saving the profit margin of agencies. But their transportation cost has been increased.

Producer ---------- Retailer-----------End users

STEP 7

After analyzing the Qarshi industry’s marketing strategies with its competitor’s strategy we discovered some variations in marketing strategies that would produce a more favorable relationship in Qarshi’s competitive posture in the future, which are as follow:

Supplying Uncovered Geographic areas :

Fer Fre

BASIC COMPATATIVE STRATEGY

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There are some competitors available in the market of Pakistan in red syrup product but a lot of

substitutes are also available which can change the choice of the buyer during purchasing like Pepsi,

Coca-Cola, dew, lime water, simple water, fresh juices, chemical juices, milk, shakes, squashes etc. are

some major substitutes our mission is to position our product in the mind of the customer or buyer he

will prefer our product as compare to the other substitutes. We will try to position our new product

instant jam-e-Shirin half liter bottle with some following advantages.

Herbal drink

Jam-e-Shirin is the product which is made with the herbal product and every one knows that herbal is

part of nature. And natural production are better then the human production. So uses of herbal are better

for the life of the humans as compare to the other things and its decrease the diseases rate from the life

of the human. Jam-e-Shirin is herbal drinks its use is better for the health of the people is never ever

leaves any side effect on human.

Chemical free drink

Jam-e-Shirin is the product which is free from the chemicals. colas ,and other juices are

Mixture of altos of chemicals which leaves some side effect on the health of the people.

Same like water

Instant jam-e-Shirin is just like water but with a great taste and colure of love. Because in instant jam-e-

Shirin 15-20% mixture of herbals and remaining 80-85% are water.

Easily availability

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Instant chilled jam-e-Shirin will be easily available at every general store, shop, pan shop, canteens, etc.

Disposable

Instant chilled jam-e-Shirin will be available in half liter plastic disposable bottles.

Low price

We will introduce this product with a low price as compare to the substitutes. its price will be 12 rupees

only.

Image

We will image our product in the mind of the customer in this sense that when ever any one is out of

home and he feels thirst he will use instant jam-e-Shirin instead of water and other colas.

Position with a line

We will position instant jam-e-Shirin in the mind of the customer with the words

“Piyo Jab chahoo jaha chahoo”

Marketing mix

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COST STRUCTURE:

Price points:Sale price of the instant chilled jam-e-sheree is 12 Rs.

cost Rs.

herbal liquid 2.33

water 0.85

Printed Rapper 0.79

plastic bottle 2.99

wages 0.35

electricity 0.6

total per bottle variable cost 7.91

Rs.

total variable cost 7.91

general expenses 0.7

company profit 0.99

distributor 0.65

retailer/whole seller 1

sale tax 0.75

total sale price per unit 12

Product line

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Jam-e-sheree is a product of the Qurshi Private limited qurshi industry deal in the medicines and red

syrup and other herbal drinks it have nearly 200 product in the market of the Pakistan . instant jam-e-

sheree will be expansion in the product line of qurshi private limited . We introduce 2 latest product

instant chilled jam-e-sheree in half litter plastic bottle.

Positioning strategy

“piyo Jab chahoo jaha chahoo”

We will position our product instant jam-e-Shirin in the mind of the customer they will use it instead of water and other colas when they are out of home. They use it to remove their thirst .After paying a reasonable price.

Promotion and advertisement strategy

To promote our new product instant jam-e-Shirin we will do a lot of advertisement

AdvertisementFor advertisement we will use

Electronic media Adds on local television channels, ads on cable especially on star plus and during films breaks.

Paper mediaIn news papers, magazines etc.

PromotionFor promotion of our new product we will

Arrange some musical concerts. Lucky draw. Free sample on different places like bazaar, bus stop, roads, free stall in sports competitions

(race, cycle race, cricket, hockey, football, etc)

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Distribution strategy

FACTORY --------WHOLE SALLER/RETAILER----CUNSUMER.Three year profit and loss account:

Target sale of 2007=22500000

P&L ACCOUNT OF 2007

QURSHI PRIVATE LIMITED (INSTANT JAM-E-SHIRIN DEPARTMENT)

PROFIT & LOSS ACCOUNT

AT THE END OF 31st DECEMBER 2007

PARTICULAR RS

SALE 270000000

COST OF GOOD SOLD 177975000

GROSS PROFIT 92025000

EXPENCES

general expenses: 10000000

ADVERTIMENT EXPENCESS: 15000000

administrative expenses:

Salaries 5000000

contribution margin 37125000

NET INCME BEFORE TAX 24900000

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LESS TAX% 9960000

NET PROFIT 14940000

P&L ACCOUNT OF 2008

Target sale of 2008= 19800000




PARTICULAR RS

SALE 237600000



EXPENCES

general exences: 10000000


administrative expencess:

salaries 5000000

contribution magin 32670000


LESS TAX% 7324800

NET PROFIT 10987200

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Target sale of 2009=20800000




PARTICULAR RS

SALE 249600000



EXPENCES

general exences: 10000000


administrative expencess:

salaries 5000000

contribution magin 34320000


LESS TAX% 8300800

NET PROFIT 12451200

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