26248716 Project on Stivia in Pakistan

7/29/2019 26248716 Project on Stivia in Pakistan

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IN THE NAME OF ALLAH, THE MOST BENEFICENT AND THE MOST MERCIFUL.

DEDICATION

This report is dedicated to our Parents. For their love, support and help for us.Their prayers are a source of determination for us.


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Acknowledgement

We are very grateful to Almighty Allah, the compassionate and merciful,

who knows about whatever is in the universe and beyond it, hidden or evidentand has enabled us to elucidate a drop from the existing ocean of knowledge.All praises to be the Holy Prophet Muhammad (Peace Be upon Him), a

star brightening the path of faith and knowledge, Luminary to the truth andjustice.

We are also thankful to the Department of Business Administration of ourUniversity(CIIT) for their full support in making this project a huge success. Ourthanks also go to the teachers who helped us and we have forgotten to mentiontheir names. We are also gratified to all our friends for their guidance andencouragement.


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INTRODUCTION OF SWEETENER INDUSTRY AND STEVIA

Sweeteners markets have evolved rapidly, since the 80s, with global shifts inconsumer preferences for better and safer sugar alternatives. In the 80s themajor markets for alternative sweeteners was in foods and beverages for

diabetics.According to a Freedonia report, it was in 1960, with demand of healthconscious consumers the market for alternative sweeteners emerged. Peoplestarted to care about their health and started to look for different things that couldgive healthier life to them.stevia, a native of Paraguay is fast becoming a major source of high potency bio-sweetener. It is a hypocaloric bio-sweetener known for its therapeutic properties,in the treatment of cough, joint pains, blood pressure, diabetic, weightmanagement and skin rejuvenation etc.The Japanese were the first to use Stevia as a table-top sweetener. In the 90sJapanese food products sweetened with Stevia accounted for about 41 percentof sweetened foods made in the country.Due to increased awareness towards

use of herbal and traditionally accepted medicinal plants, a steady Stevia marketis emerging.The sweetness in Stevia is mainly attributed to two compounds viz. Steviosideand Rebaudioside A which can be up to 250 times sweeter than sucrose.Stevia is normally used as fresh Stevia leaves, dried leaves, extract and liquidconcentrates. In the 70s and 80s, Stevia developed as a sweetener and flavorenhancer in Japan, China, Korea, Israel, Brazil and Paraguay . Some of theemerging areas where Stevia and Stevia herb extracts are used periodically aretoothpaste, mouthwashes, skincare, food, controlling human disorders, and as abacterial agent. Sweetener markets have been through enormous transitions inrecent times, with a slew of sugar alternatives emerging on the scene. Post 90s,

the global diabetic population particularly in Asia has been explodingexponentially. This has led to a rapid growth in markets for a natural, low caloriesweetener. With research indicating harmful impact of products such as

Asparatame there was need to develop an alternate product.

1. CURRENT ENVIRONMENT( MACROENVIRONMENT)


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o Economy

Whole world is facing the recession scenario and everyone is passing throughcritical time of unemployment and devaluation of money so its very difficult forpeople in Pakistan to choose most expensive products until and unless they dont

find any value added services or benefits over the cost with them. Economiccondition matters a lot for stevia marketing while making marketing plan in longas well as in short run to place stevia in the memory of customers so they couldrecognize and recall brand at any time. To deal with poor economic conditionstevia need very strong marketing backup as it cant lower the price due to itsproduction cost and its availability.

o Legal

The Stevia boom which spread to USA caught the attention of the U.S. Food andDrug Administration, which in 1987, issued a ban on its use because it had not

been approved as a food additive. In 1991, Stevia was deemed unsafe and wasbanned from the USA completely. It was only legalised as a dietary supplementdue to the changing of laws. Following lengthy debates, in 1995, the FDA issueda statement allowing Stevia to be used as a dietary supplement.

Regulations related to the use of Stevia products have been evolvingcontinuously over the last few years. A brief on regulatory evolution istabulated below.

Year Status

2004

JECFA Provisional Standard stipulated that glycosides

content shall be no less than 95% (after drying).Stevioside and Rebaudioside A together shall account for noless than 70% of the total amount of steviol glycosides.

2007 Specified that Steviol glycosides content shall be no less than95% of the total weight (after drying).It did not specify thecontent of Rebaudioside A.Methanol residue shall be nomore than 200mg/kg.

2008

Ethanol residue shall be no more than 5000mg/kg.

2009FDA stipulated that Rebaudioside A and Stevioside shall bedeclared separately as food additives


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Source: The Food Science and Technology Centre of Jinan, University, Guangzhou, PRC at

CMTS Stevia World Summit in China, 2009

Sweeteners market, and in particular Stevia market, has seen intense activitiesthrough 2009. This followed FDAs letter of no objection to GRAS, in December

2008, allowing the use of Reb A, known as Rebaudioside A or Rebiana, of 95%purity and above in food and beverages. Due to increased awareness towardsuse of herbal and traditionally accepted medicinal plants, a steady Stevia marketis emerging. In Pakistan stevia

o Government

Government allowed scientists of National Agricultural Research Centre(NARC), Islamabad - the premier research establishment of PARC to doresearch on Stevia(plant) which shows that government is paying attentiontowards the advantages of stevia as a sweetener. . In 2003, it was sown for the

first time in Pakistan at different climatic sites including shade, semi-shade andfull sunlight for testing its viability in the local environment. Its germination hasbeen recorded very well at NARC, Islamabad and now the plants are underobservation with respect to acclimatisation. These plants have attained a heightof one foot and are expected to bloom this year. When these plants attain theheight of one meter, the experiment will be considered as successful accordingto the climatic conditions of Pakistan.

After their successful acclimatisation, the plant will be sent to different units of theHorticulture Research Institute of NARC situated at different locations i.e. Sariab(Quetta), Tandojam (Sindh), Tarnab (NWFP) and Faisalabad (Punjab) for

Uniform Yield Trials and other relevant studies on its various biological effects.

o Technology

With evolving technologies and improved Steviol glycosides production

processes, there have been increasingly higher requirements on product quality.


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CURRENT SITUATION (MARKET ANALYSIS)

o Market definition

Sweeteners markets have evolved rapidly, since the 80s, with global shifts inconsumer preferences for better and safer sugar alternatives. In the 80s themajor markets for alternative sweeteners was in foods and beverages fordiabetics. Stevia Rebaudianaorsweet leaforstevia, a native of Paraguay isfast becoming a major source of high potency bio-sweetener. It is a hypocaloricbio-sweetener known for its therapeutic properties, in the treatment of cough,

joint pains, blood pressure, diabetic, weight management and skin rejuvenationetc. Due to increased awareness towards use of herbal and traditionallyaccepted medicinal plants, a steady Stevia market is emerging. Currently inmarket stevia as a sweetener is facing intense competition because there asmany competitors of stevia in market and they are offering far better prices then


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stevia and stevia have to make its place in market by new positioning that it isnatural and it has no side effects as other products of competitors are thoughcheaper but have a lot of side effects. Splenda a major competitor of stevia isnot natural; it is a chlorinated artificial sweetener. There have been no long-termhuman studies on the safety of Splenda; however, issues have been raised

about Splenda in a new study from Duke University. According to the study,Splenda suppresses beneficial bacteria and directly affects the expression of thetransporter P-gp and cytochrome P-450 isozymes that are known to interfere withthe bioavailability of drugs and nutrients. Further more other competitors likeCanderal. Sucral, medium are though cheaper but have side effects too and arenot safe for health.

o Market size

Its stevias year. All-natural and calorie-free, stevia is poised to become the holygrail of sweeteners, Since December 2008, when the FDA approved use of

rebaudioside A (an active ingredient of stevia) in Pakistan Stevia can be seen indifferent stores but right now in limited quantity. People are moving towardsadapting the trend of caring about their health more consciously as compared toprevious years.

We can forecast the sales of stevia to grow in near future by looking

The trends in the market that shows people awareness about theirhealth and more care about the health of their kids.

Different researches already done or in progress about thesweeteners available in the market and their side effects

Exposure of people towards the side effects.

The FDAs approval of stevia in food and drink opened the door for this markets

explosion, New product activity has accelerated in recent years, and since mostcategories with stevia applications remain untapped, we expect many morestevia-infused product introductions in the next few years.


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o Market segmentation

PSYCHOGRAPHIC SEGMENTATION

Psychographic segmentation includes segmentation on the basis of personality,

lifestyle, value and attitude of people in the market. Stevia needs to dopsychographic segmentation because of product positioning and category.Whole sweeteners have a biggest substitute i-e Sugar and sweeteners exist inthe market by positioning themselves as a healthy substitute of sugar. Peoplewho are more conscious about their health or are suffering with any diseases,have purchasing power and have an ability to adapt new change in taste lie inthis particular segment. Stevia needs to be positioned in the way that shouldmatch with the lifestyle and attitude of the target market otherwise people wouldmove towards other competitors in the market.

DEMOGRAPHIC SEGMENTATION

Stevia can do segmentation on the basis of demographics by dividing market intodifferent sub categories including age, gender and education.

AGE

Stevia is made from natural herbs and there is no artificial ingredients added in itthat is its competitive advantage too and this factor make it different from othercompetitors. Being 100% natural this product has no side effects and is suitable

for people of all ages. Stevias positioning is done by promoting two importantthings

FOR KIDS

Precautions is better then cure. Stevia should be part of your diet fromyounger age so you would be protected from many diseases from whichmany older people are suffering.

FOR MIDDLE AGE
http://en.wikipedia.org/wiki/Market_segmenthttp://en.wikipedia.org/wiki/Market_segment


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Whether you are suffering from any disease or not its suitable for you to liveheather for your whole life.

FOR OLD PEOPLE

Stevia is the best natural herbal product for old people whether they aresuffering from any disease or not. Usage of this product would add healthieryears in their life.

GENDER

MALE

Stevia is suitable for male because it is a healthier product. People who go togym , work in office, eat fastly due to time factor, or are conscious about theirhealth should use stevia and this is our target market too.

FEMALE

Females are always found more conscious about their health. Females canuse stevia without any hesitation because it is 100% natural. Even stevia issafe for pregnant women.

EDUCATION

Although stevia is for both educated and uneducated people but people who arewell educated have the ability to adapt new things more easily as compared touneducated people and are much more aware about their health. Educatedpeople would be targeted at first who will some how act as an ambassador ofstevia. School colleges, universities, offices would be the other way to attractpeople.

INCOME

As stevia is bit expensive then other competitors so its target class is highincome people who have the purchasing power, intentions and are conscious

about their health.

BEHAVIORAL SEGMENTATION

Stevias segmentation would be done by looking at the profitability and incomestatus of the people in market.


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GEOGRAPHIC SEGMENTATION

Stevia is needed to be present in almost all the stores who are licensed and have

a rush of people specially in the areas where people of higher income, peoplewho are fond of healthier life like to go for shopping. As we would do intenseadvertisement to create awareness so we have a plan to place the productequally. Survey through observation state that competitors products are availablealmost at every store to compete with them stevia should be placed equally.

COMPETITION AND MARKET SHARE

Currently stevia is facing intense competition in market. Major factor that iscreating hurdle for stevia to success is Price, less promotion and distributionchannels. The survey shows that people are not buying stevia because most of

them have not heard about it before and are not aware of its presence. Second isdue to price and who buy it next time when they go to purchase it they dont findit. All factors are collective reasons for decline in sales.

CANDERAL

Canderel is a brand of artificial sweetener made mainly from aspartame,Canderel is marketed by The Merisant Company a global corporation withheadquarters in Chicago, Ilionis, also Switzerland, mexico and Australia.Canderel was first marketed in France in 1979. The name Canderel is acombination of candi and Airelles- the French word for bilberries.
http://images.google.com.pk/imgres?imgurl=http://backoffice.p2ulive.co.uk/Uploads/Products/406a6446-9137-424b-ad13-a9a66bed736d/CanderelSweetner.jpg&imgrefurl=http://www.pharmacy2u.co.uk/search.aspx%3Fguid%3D9f2578ab-e1c3-47d6-8bf6-9da02017606e&usg=__N8yt0nbsqf0lu7-c8uwrpgB5Ds8=&h=250&w=250&sz=7&hl=en&start=8&um=1&tbnid=qRaf_T3Gb8Fl7M:&tbnh=111&tbnw=111&prev=/images%3Fq%3Dcanderel%26hl%3Den%26sa%3DN%26um%3D1


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1. CANDEREL's main sweetening ingredient is digested by the body justlike other everyday foods.2. You can manage your weight with CANDEREL.3. CANDEREL can be used for cooking and baking4. CANDEREL is suitable for diabetics.

5. CANDEREL is suitable for children6. pregnant women can use CANDEREL7. Nursing mothers can use CANDEREL.8. CANDEREL is Kosher, GMO-free, suitable for vegetarians and

people with gluten intolerance.

BRAND QUANTITY PRICE

Canderal powder 80g 230Tabs 200 140

100 80

SUCRAL

Sucral is the Substitute of sugar. It came in market within last five years. With itsability to offer multiple usage, be it for beverages, cooking or baking, it is themost suitable sweetener to replace sugar, unlike any other artificial sweetenersavailable in the market.


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Sucral is an exciting news for everyone, including people with diabetes as well.As now you can enjoy the sweet taste of foods and beverages, without all thecalories and carbohydrates of Sugar.


Sucral powder 84g 230Tabs 200 125

Sachet 50 145

SPLENDA

SPLENDA No Calorie Sweetener contains sucralose (SPLENDA BrandSweetener), the no calorie sweetener with no unpleasant aftertaste. SPLENDANo Calorie Sweetener can be used virtually anywhere sugar is used. It can alsobe used in cooking and baking in a variety of recipes. Like many no and lowcalorie sweeteners, each serving of SPLENDA No Calorie Sweetener containsa very small amount of common food ingredients, e.g., dextrose and/ormaltodextrin, for volume. Because the amount of these ingredients is so small,SPLENDA No Calorie Sweetener still has an insignificant calorie value perserving and meets FDA's standards for "no calorie" sweeteners.

SPLENDA No Calorie Sweetener comes in two forms for consumers,

granulated and packet. The granulated form of SPLENDA No CalorieSweetener measures and pours just like sugar. SPLENDA Packets provide aconvenient way to add sweetness without guilt!

Sucralose (or SPLENDA Brand Sweetener), the high intensity sweetener usedin the SPLENDA Products is not natural. It is a no calorie sweetener that is
http://en.wikipedia.org/wiki/File:SplendaFront.JPG


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made from a process that starts with sugar. Although sucralose has a structurelike sugar and a sugar-like taste, it is not natural. The advertising and packagingfor SPLENDA Products do not represent the product as natural. Sucralose,the no-calorie sweetening ingredient in SPLENDA No Calorie Sweetener, isabout 600 times sweeter than sugar. Like other tabletop sweeteners, the

granulated and packet products contain small amounts of carbohydrate (lessthan 1 gram per serving) for consistent sweetening and to provide volume. Thesebulking ingredients are dextrose (packets) and maltodextrin (packets andgranulated). However, the bulking agents provide so few calories per serving thatthe FDA allows the SPLENDA No Calorie Sweetener Products to be called no-calorie sweeteners, because they provide less than five calories per serving.


Splenda powder 84g 560Tabs 300 575

Sachet 100 55o

50 330

200 1075

MARKET SHARE


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6%

17%

58%

19%

stevia

sucral

cander

splend

SWOT of COMPETITORS

COMPANIES MARKET SHARE

Stevia Stevia after FDI approval came inmarket but due to lack of promotionalstrategies, High prices, Lack of

Awareness and Poor distribution

channels it is not able to capture a lotof market share. It carries only 6% oftotal share.

Sucral Sucral is the brand launched as asugar substitute in Pakistan by Father& Sons Company. Sucral has entered asaturated market where it issurrounded by many competitors, bothlocal and international. It carries 17% oftotal share.

Canderal Canderal is the most selling brand in

sweetener industry. It is comparativelycheaper with much stronger marketingstrategies. Canderal carries 58% oftotal share.

Splenda Splenda is the major competitor ofStevia. Similar to stevia it is offeringhigher prices with quite similar benefitsbut due to good distribution strategies itis available in market. Splenda carries19% of total share.


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STERNGTH The major strength ofcompetitors of Stevia is theredate of presence in the market.FDI has given all companieslicense to operate and sell there

product in market since longtime and stevia was banned byFDI for long time.

Second major strength ofcompetitors is there productavailability in the market. Most ofthe products are not particularlytargeted to any shop and areavailable to all rush stores.

Products of other companies areproperly marketed andawareness is created by lookingat the attitude and buyingpatterns of people.

Price of competitors product isvery reasonable which they areable to do by reducing thequality as they are artificial

sweeteners which leads toincrease in sales and ultimatelyincrease in market share.

WEAKNESS

Products are not Natural.

products have Side effects

Harmful for users.

Researches done on the harmfuleffects of products by scientists.


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Research by scientists about theside effects of sweeteners.

o M arket trends

Trends are now changing. People are getting more conscious about their healthand more then 90% of population is suffering from diabetes thats why more andmore people are looking towards the substitute of sugar that could provide them

with good health and save them from further increase in diabetes disease.Market trends toward sweetener industry over the year are increasing.

0

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15

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1999 2002 2005 2009


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2. Current Situation - Consumer Analysis

o N ature of the buying decision

The consumer passes through five stages

Problem Recognition

The buying process starts when the buyer recognizes a problem or need ofsubstitute of sugar. When a person is suffering from diabetes or is gettingmore conscious about his/her health then he / she would face such problems.Marketer needs to recognize the circumstances that trigger buyer towardsthat thing. Marketing strategies then can be formed to motivate buyers to giveserious consideration towards the product. Marketing of stevia should be suchstrong that buyer whenever would face such problem he/she find only steviain mind.

Information Search

Buyer before purchasing the product gets information about the productavailable. Buyer some times simply becomes more receptive to informationabout a product and at next level buyer would go towards phoning a friend,material search , going online, and visiting stores. Marketers of stevia needsto focus on all the sources that influence buyers decisions. It could bePersonal, Commercial, Public, Experiential. Now in the technological


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advancement internet is the major source of information so stevia should beproperly advertised on internet with proper target market.

Evaluation of Alternatives

At this step consumer make decision that is mostly found as conscious andrational. First consumer try to fulfill its basic needs second consumer wouldsee the added benefits with the product solution, Third consumer would seethe bundle of attributes with varying abilities. Marketing strategies of stevia

should be focused towards the core competency as well as there should becomplete consideration towards the added benefits with product. Added

benefits may include discounts, buy one get 10% discounts on second

purchase, buy stevia and get discount on any other diabetic medicine etcultimate goal is to stop consumer to use other sweeteners in the market thathas side effects too.

Purchase decision

A t this stage consumer have already set a preferred brand and ultimatelydeal with other factors at this stage including Brand, dealer, quantity, timingand payment method. At this stage stevia needs to make its distribution

channel more reliable and authentic to make product available in market forconsumer.

Post purchase Behavior

Marketers need to get a complete follow-up to get more accurate resultsecond time. At the beginning when stevia is not much popular among peopleand sdont know what consumers feel about the product after using stevianeeds to get back to back feed back from consumer. Recent study suggestthat stevia need to focus on price issue and after taste because eitherconsumer dont buy product due to higher prices or dont purchase it after

using one time.

o P articipants


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Stevia is suitable for all people which includes Children , young, middle ageand older people. Stevia is natural product thats why it has no side effectsand it would provide no harm to anyone who use this product.

o

Buyer Motivation and E xpectations

Buyers are motivated towards product with conscious and unconsciousfactors. Unconsciously buyer react to the shape, size, brand name, materialand color of the product. Marketing strategies are formulated by following the

conscious and unconscious factors that motivate buyer. Stevia is available in

form of powder, tablets, liquid in the market.When the basic needs of buyers would be fulfilled then he/she would movetoward the safety need that is the next step defined in Maslows hierarchy of

need. Being on second step it is impossible for buyer to compromise onsafety issues and it is a positive indication for marketer to promote and salethe product.The trend is changing buyers are getting more conscious about their healthand the patients are trying to get a product that could provide themsatisfaction of betterment of their health. Stevia is expensive because it hasno side effects and it is 100% natural product. By looking at this people

would associate more expectations from stevia as compared to othersweeteners available in the market. People when would pay more price theywould ask or expect more advantages or benefits from the product becausethey are paying more for it other wise they would prefer other sweeteners inthe market if stevia would give lesser or even equal advantage as othersweeteners in the market are giving.

o loyalty segments

Marketing strategy of stevia is formulated on the basis of their Hard-core loyal,

split loyal, shifting loyal and switchers by studying all company is able to analyzeits strength, competitors and mistakes did in past. The most important asset ofcompany is its loyal customers and for them company is starting loyalty programsand training their own sales force to guide buyers about their health issues forlife.


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CURRENT SITUATION (INTERNAL)

o Company R esources

Financial

According to Global Industry Analysis, Artificial Sweeteners, July 2007 report, outof the total sweeteners market of around USD 47.5 bn in 2007-08, Steviamarkets accounted for USD 5.5 bn and a likely USD 8.2 bn by 2015. Beveragesare expected to spur Stevia growth while other products like yoghurt,confectionery and gums are all set to make an impact.Stevia product development and launches have seen several partnerships suchas Pepsico-Merisant and Coke-Cargill alliances. Pepsico-Merisant and Coke-Cargill were the first to get the FDA approval.

Pepsico was the first to launch the stevia products internationally and in the US.It launched Sobe Life water both internationally and in the US. It also launchedTropicana 50, a reduced calorie orange juice in the US. Coca Cola companylaunched Sprite green and Odwalla drinks.

All the products of stevia are available in market with the partnership of othercompanies. As manufacturers worldwide start incorporating this new ingredientinto their products, the need to assure users of the quality and consistency andpurity will be critical. The quality standard is expected to help in this venture.

Peoplecompanies who are marketing Stevia extracts :

PureCircle announced contract extensions with Cargill and major new contractswith PepsiCo and Whole Earth Sweetener Company for the supply of high-purityReb A in beverages, foods and tabletop sweeteners worldwide. PureCircle has alicense agreement giving it the right to sell high-purity Reb A under the PureViabrand in categories and customers to be determined PureVia is being sold in USmarkets.


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Pyure Brands LLC, Naples, Fla., is producing 97 percent reb-A under its own

Pyure brand for tabletop use, but wants to specialize as a private-label supplierfor grocery stores, as well as being in talks with some commercial customers.

Wisdom Natural Brands has been producing a stevia tabletop sweetener underthe SweetLeaf brand. SweetLeaf Sweetener obtained self affirmed GRAS statusin Mar 08 as determined by two independent groups of former FDA professionalscientists.

GLG Life Tech, also made a GRAS self-affirmation the day after the FDA nonobjection. Its 97 percent reb-A is called Rebpure. GLG is a supplier to Cargill.

Time

The Japanese were the first to use Stevia as a table-top sweetener. In the90s Japanese food products sweetened with Stevia accounted for about 41percent of sweetened foods made in the country. The Stevia boom whichspread to USA caught the attention of the U.S. Food and Drug Administration,which in 1987, issued a ban on its use because it had not been approved as afood additive. In 1995, the FDA issued a statement allowing Stevia to be usedas a dietary supplement. Stevia got banned for almost 8 years over the yearssweeteners came in market and made there position now its a time for steviato work and prove itself. Stevia came in market with distinctive capabilities

which other sweeteners are not providing and that give competitive edge tostevia. Awareness towards healthy life, Harmful effects of sweeteners anddifferent prescriptions on usage of sweeteners is increasing.

skills

GLG Life Tech Corporation is a global leader in the supply of high purity stevia,an all natural, zero-calorie sweetener used in food and beverages. TheCompanys operations cover each step in the stevia supply chain including non-GMO stevia seed breeding, natural propagation, stevia leaf growth and harvest,proprietary extraction and refining, marketing and distribution of finished

product. GLG advanced technology and extraction technique make it one of theworlds leading producers of high purity stevia extracts, including rebiana madewith 97% Rebaudioside. In addition, the Companys global sales and marketingarm, GLG-Weider Sweet Naturals, works with companies around the world to


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bring stevia extract supply solutions for food, beverage, pharmaceutical andnutraceutical applications.

With evolving technologies and improved Steviol glycosides productionprocesses, there have been increasingly higher requirements on product quality.Sales force need to be properly trained to make marketing plan stronger.

o O bjectives

VISION

A Leader in providing natural products necessary to attain highest level ofHEALTH throughout life.

MISSIONThe mission is to serve the nation by providing natural, harmless and healthyproducts.

Marketing objectives

Marketing objectives are

To create awareness Increase sales

Create loyalty

Maintain long term relationships

Create brand equity

Increase customer retention

Bridge between manufacturer and customer


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3. SITUATION ANALYSIS (SWOT)

Internal Factors Strengths Weaknesses

Management Experienced, broad baseof interests andknowledge

Large size may lead toconflicting interests.Marketing employeesand sales force is notaware of marketing theproduct globally.

Product Line Differentiated, Variationin products

So much product linesbut still not able to knockout other sweeteners.

Marketing Marketing by promotingusp i-e100% natural withno side effects.

Segmentation,promotion, distribution,pricing, aftertaste,technologicaladvancement and CRMare not properly

integrated

Personnel Very experienced, highknowledge

Not aware of marketingthe product globally.

Finance Higher price, large capitalbase.

High production costleads to higher pricesand less sales revenue.

Research &

Development

Stevia is currently being

combined in blends, withresearch anddevelopment exploringdifferent flavor systems.Branding has also provento be very effective in

Researches are done but

still no change came inproduct taste,technology, marketanalysis and knowledgegaps.


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promoting newsweeteners

External Factors Opportunities Threats

Consumer/Social Increase in awarenesstowards healthconsciousness and 90%population is sufferingwith diabetes

Less awareness aboutthe side effects ofsweeteners available inmarket.

Competitive It is 100% natural with noside effects and suitablefor all.

Less awareness andhigher price would affectthe sales and growth.There is a chance ofanother competitor inmarket with natural

ingredients.Technological Maintenance of proper

website which subscribesand provides informationregarding long productionline.

Optimal utilization oftechnology is stillrequired becausecompetitors could getcompetitive advantage byusing more advancetechnology.

Economic Consumer income is highfor the Stevia class.

By looking at the currenteconomic downfallpeople have got more

sensitive about pricesand want bundle ofbenefits within the pricethey are paying forproduct.


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Sustainable Competitive A dvantage

Sweeteners market, and in particular Stevia market, has seen intenseactivities through 2009.

The stevia landscape is fast changing as new product launches face pressureon the regulatory and consumer fronts. As a low calorie, natural, non-carcinogenic intense sweetener, Stevia has great potential to capture marketsfrom competing alternative sweeteners and to replace some markets forstarch syrups when blended with sugar or other bulking agents.

Stevia has been used with success to treat many ailments including diabetes,high blood pressure, gingivitis, digestion ailments, and addictions, topically foracne and other skin ailments and also as a wonderful weight loss aid. Steviaprovides several advantages over sugar and artificial sweeteners when usedin food production, lower costs for transportation, storage/warehousing and

handling charges. In 2006, the World Health Organization evaluated Steviaand found no evidence of carcinogenicty in Stevioside and Rebaudioside A. Italso reported that Stevioside led to beneficial effects in patients withhypertension or with type-2 diabetes. The report concluded that further studywas needed to determine proper dosage.

4. MARKETING RESEARCH
http://en.wikipedia.org/wiki/Sustainable_competitive_advantagehttp://en.wikipedia.org/wiki/Sustainable_competitive_advantage


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o Information Requirements

Information was required to implement marketing plan strongly in Pakistan by

doing complete research on the behavior, nature of buying decision, economiccondition, consumer concerns, sourcing preferences, market drivers, technology,segments interested in buying, distribution channels and market trends. All theinformation played a major role in analyzing the importance of each step and itsproper way of implementation.

o Research Methodology

For research we collected primary data and secondary data. In primary datacollection we used a technique of Observational research. We observed

consumers as they shop and consumed sweeteners in the whole time we wereactive in research. This type of research helped us to analyze consumerbehavior, nature of buying decision, consumer preferences, and attitudes. Insecondary data collection we used internet and books, and other readingmaterial on sweetener industry.

o Research Results

Most respondents had mixed feelings on key issues outlined in informationrequirement; however, there was an overall positive feeling about market growth.

In the sweetener industry, creating awareness is key to consumer acceptance,which is why it comes as no surprise to see respondents indicate that they dontknow about a brand named as stivia in market. Many respondents also believethat this concern can emerge as a number one limiting factor for Stevias marketgrowth in the future.Respondents also identified regulations as a key concern, indicating that theregulatory stance on Stevia sweeteners is a knowledge gap. Supply reliability

was the 3rd most popular concern, and is a reflection of demand for stevia

sweeteners overtaking current supply.Research findings highlight, the future of this industry is dependent on greateraccess to information on cultivation, production, flavor-enhancements,regulations, supply chain, marketing and socio-economic issues. Constantlymonitoring trends in the industry will provide critical information needed forbusiness and public policy decision-making.


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30%

20%

40%

10%

Supply reliabili

Regulations

Promotion

price

Research also indicate that currently to execute the marketing plan moreefficiently company needs to get more market information time to time more theninformation of technology, economics and Agronomy to get aware about the

changes, strength ad opportunities of competitors and regulation amendments.

46%

26%

17%

11%

Market

Technolog

Economic

Agronomy

MARKETING STRATEGIES

PRODUCT

Stevia Biovista Pvt. Ltd. has carved out a niche by providing Stevia - Zero Calorieall natural sweeteners through its innovative range of products, powered with acustomer centric vision and an eye for quality. Today, company offers diverserange of Zero Calorie Natural Sweetener products based on Stevia NaturalHerb for consumer as well as for food and beverages industry. The company iscommitted to providing products and services at par with international standards.
http://en.wikipedia.org/wiki/Product_managementhttp://en.wikipedia.org/wiki/Product_management


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Stevia helps control blood sugar, high blood pressure, digestive ailments and is ahealthy weight loss aid. Stevialife consumer products are available in powder,tablets and liquid form. Stevialife is 300 times sweeter then sugar at the sametime it is a Zero Calorie Diet.For food industry Uses for Stevialife Concentrate Products and Extracts

Steviosides and Rebaodioside white concentrate powder of differentpercentages.Stevia Extracts are used in Soft drinks, cordials, fruit juices , Ice creams, yogurts,sherbets , Pastries, pies, baking , Jams, sauces, pickles, Jellies, desserts,Chewing gum ,Candies, confectioneries , Sea-foods, vegetables, Weight-watcherdiets, Diabetic diets, Flavor, color and odor enhancers , A source of antioxidants ,

Alcoholic beverage enhancer (aging agent and catalyst).Stevia (Stevia rebaudiana) is a wonderful dietary supplement used for over 1500years as a sweetener and for medicinal purposes. Since the 1970's, stevia hasbeen used in Japan as the main alternative to sugar, used instead of the bannedaspartame in diet soda, gum and other food and beverages. Stevia is also being

used as a sweetener in other countries after extensive studies proved its safety.Stevia has been used with success to treat many ailments including diabetes,high blood pressure, gingivitis, digestion ailments, and addictions, topically foracne and other skin ailments and also as a wonderful weight loss aid. Safe fordiabetics as it does not raise blood sugar!

PRODUCT LINE

Liquid Stevia


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SweetLeaf Liquid stevia with all natural flavors is convenient and easy to use. Atonly pennies per drop, you can easily dress up water, coffee, tea, yogurt,cocktails, whip cream, smoothies, ice cubes, and nearly anything else you can

dream up. A great replacement for sodas and soft drinks for your kids (andadults)!

FLAVORS IN LIQUID

Apricot Nectar Chocolate Raspberry

Cinnamon - New! Chocolate - New! English Toffee Grape - New!

Lemon Peppermint - New! Root Beer - New! Valencia Orange Vanilla Creme

Stevia Tabs
https://www.healthyshopping.com/stores/cart.asp?itemnumber=STV-CLR-Ahttps://www.healthyshopping.com/stores/cart.asp?itemnumber=STV-CLR-CRhttps://www.healthyshopping.com/stores/cart.asp?itemnumber=STV-CLR-CNhttps://www.healthyshopping.com/stores/cart.asp?itemnumber=STV-CLR-DChttps://www.healthyshopping.com/stores/cart.asp?itemnumber=STV-CLR-Thttps://www.healthyshopping.com/stores/cart.asp?itemnumber=STV-CLR-Ghttps://www.healthyshopping.com/stores/cart.asp?itemnumber=STV-CLR-Lhttps://www.healthyshopping.com/stores/cart.asp?itemnumber=STV-CLR-PMhttps://www.healthyshopping.com/stores/cart.asp?itemnumber=STV-CLR-RBhttps://www.healthyshopping.com/stores/cart.asp?itemnumber=STV-CLR-VOhttps://www.healthyshopping.com/stores/cart.asp?itemnumber=STV-CLR-VChttps://www.healthyshopping.com/stores/cart.asp?itemnumber=STV-CLR-Ahttps://www.healthyshopping.com/stores/cart.asp?itemnumber=STV-CLR-CRhttps://www.healthyshopping.com/stores/cart.asp?itemnumber=STV-CLR-CNhttps://www.healthyshopping.com/stores/cart.asp?itemnumber=STV-CLR-DChttps://www.healthyshopping.com/stores/cart.asp?itemnumber=STV-CLR-Thttps://www.healthyshopping.com/stores/cart.asp?itemnumber=STV-CLR-Ghttps://www.healthyshopping.com/stores/cart.asp?itemnumber=STV-CLR-Lhttps://www.healthyshopping.com/stores/cart.asp?itemnumber=STV-CLR-PMhttps://www.healthyshopping.com/stores/cart.asp?itemnumber=STV-CLR-RBhttps://www.healthyshopping.com/stores/cart.asp?itemnumber=STV-CLR-VOhttps://www.healthyshopping.com/stores/cart.asp?itemnumber=STV-CLR-VC


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SteviaTabsTM Stevia extract will dissolve in hot or cold liquids, adding quality

nutrition with an intensely sweet flavor without sugar or artificial sweeteners. It'scalorie-free and safe for diabetics and hypoglycemics.

One SweetLeafTM SteviaTabTM Stevia extract tablet is as sweet as a teaspoon ofsugar.

Stevia Sachet
https://www.healthyshopping.com/stores/cart.asp?itemnumber=SL_Special_1http://www.healthyshopping.com/stores/cart.asp?itemnumber=SL_Special_1https://www.healthyshopping.com/stores/cart.asp?itemnumber=SL_Special_1


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Stevia sachet has zero calories, carbs, zero glycemic index, zero chemicals.Available in convenient packets or powder form.

SteviaClear ( Liquid Stevia )

All natural, no calories, no carbs, no bitter aftertaste, and endless uses.

SteviaClear brings pure Stevia extract to liquid form. With 1440 servings per

bottle, youre definitely getting your moneys worth. Just two drops of SteviaClearare as sweet as 1 teaspoon of sugar - yet has no calories, carbohydrates norbitter aftertaste.

Drop this pure Stevia extract into your hot or iced coffee or tea. Youll love gettingsweet without paying for it in calories or chemicals. Safe for diabetics, too.

Convenient and economical to use

Zero calories, zero carbs

Absolutely no chemicals, alcohol, or glycerin

Pure Stevia extract in water

Safe for diabetics Can be used in cooking, baking, hot or cold beverages, and many more

uses


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PRODUCT STENGTH AND WEAKNESS

STRENGTH WEAKNESS

Stevia is 100% natural product Ingredients used to produce steviaare very rare thats why products of

stevia are expensive. It has NO side effects Its aftertaste is not according to the

taste buds of Asians.

It is suitable for all participantswhich include children, middle age,older male and female.

Its not available in particular productusage form.

PRODUCT LIFECYCLE MANAGEMENT

Products of stevia are in initial stage phase, even products are not marketedrightly thats why people dont know about this brand too. Whole marketingplan needs to be created and executed in proper manner to get maximumsales and revenue.

Stevia lie on introduction stage


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BRAND NAME, BRAND IMAGE AND BRAND EQUITY

BRAND

A brand is a name, term, sign, symbol or design or a combination of them,intended to identify the goods or services of one seller or group of seller and todifferentiate them from those of competitors.

The brand that we have chosen for our project is Stevia.

BRAND ELEMENTS
http://www.healthyshopping.com/stores/cart.asp?itemnumber=SL_Special_1


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BRAND NAME

Brand name is the central element of a brand and there are almost 6 ways toname your brand, the type stevia is chosen to name the brand is suggestive

words that suggest any activity, benefit or function of product. SteviaRebaudianaorsweet leaforstevia, normally used as fresh Stevia leaves,dried leaves, extract and liquid concentrates.

The name of our brand is Stevia which is a suggestive name and has relevancewith the product ingredients; we have chosen this name because it is:

Easy to pronounceEasy to remember

Easy to recallShows the herb used in production

Can be used in many countries

UNIFORM RESOURCE LOCATOR

In order to compete in market Stevia also have to operate on the internet and forthat purpose stevia have a detailed website which is

www.stevia.comThis website gives you detailed information about the brand, you can come to

know about different product line which includes stevia tabs, stevia sachet andStevia liquid available with many new and unique recipes to ad delight to yourcooking.
http://www.stevia.com/http://www.stevia.com/


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LOGOS AND SYMBOLS

Logo is most commonly known as the brand mark, if you go for a logotype then itis a word mark. Logo is used to give the audience a visual cue and is used toattract the customer so that it is easy for him to recall and recognize the brand.

The advantage of this word mark or logo is that it shows the herb used inproduction of product which make it authentic and it is easy to recognize andrecall.

CHARACTER

A character is a brand symbol which can be any real life character a realpersonality or an animated character.In case of stevia we have chosen doctor as a person who convinces people thatthis product is 100% natural and it has no side effects. As stevia was banned formore then 5 years this might give perception that stevia is not suitable for theirhealth to avoid this comment we have chosen doctor to come in promotion ofstevia and explain that stevia is 100% natural and have no side effect.

SLOGANS

A slogan is a short descriptive or persuasive phrase which gives your brandmeaningfulness. The meaning that you want to give to your brand is given byslogan.The slogan of stevia is All naturalThis slogan tells us how stevia is different from other sweeteners in market.Stevia is 100% natural and has no side effects where as other sweeteners inmarket have side effects and include artificial flavors.


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JINGLEWe have not made a jingle of our product and according to our budget we havemade a n ad which tells that it is 100% natural and has no side effects. Allparticipants can use it without any risk.

PACKAGING

Packaging is the container or the wrapper of the product which are used for yourproduct.

Packaging of stevia had been done on international standards and we have used

special foil seal to protect the quality, medication and taste of product. Stevia isavailable in bottles, small box with tabs and card box which contain sachet.


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BCG MATRIX

Sweetener industry is growing with coming time people are getting moreconscious about their health and are more aware about the products that helpthem to reduce deceases. Here at question mark stage the industry growth rateis high and the market share of company is low. In this situation company needsto adapt some strategies to take it at star stage.

Stevia lie at Question

mark stage.


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STRATEGIES

When the product is at the introduction stage and still not able to get competitivemarket share then company should go for market development, marketpenetration, and product development.

MARKET DEVELOPMENT

Market development involves introducing present products or services into newgeographic areas. Stevia should go for market development because

Its basic industry is becoming rapidly global in scope.

New and untapped or unsaturated markets exist.

New channels of distribution are available that are reliable, inexpensiveand of good quality.

PRODUCT DEVELOPMENT

Product development is a strategy that seeks increased sales by improving ormodifying present products and services. Stevia should go for productdevelopment because

Organization competes in an industry that is characterized by rapidtechnological developments.

Major competitors product is of better aftertaste.

Organization competes in a high growth industry.

Organization has especially strong research and development capabilities.

The research suggests that stevia has some aftertaste problems that need to besorted out immediately. Research shows that taste development gap should becovered to get increase in sales.

23%

12%

3%

26%

36% Average

Moderately low ga

low gap

high gap

Moderately high ga


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MARKET PENETRATION

A market penetration strategy seeks to increase market share for presentproducts or services in present market through greater marketing efforts. This

strategy is mostly used alone or with combination of other strategies. Marketingstrategy includes

Increase in number of salesperson

Increasing advertising expenditure

Offering extensive sales promotion items

Increasing publicity efforts.

Stevia should go for market penetration because

Current market is still not saturated with other products.

Usage rate or awareness of present customers could be increasesignificantly

Total market share of industry is increasing with time

CONCENTRIC DIVERSIFICATION

Adding new, but related products or services is widely called as concentricdiversification. Stevia can produce icing sugar for baking (cakes and donutsetc) or can make special sugar powder to add in sweet dishes as done bycompetitor.Stevia should go for concentric diversification because

New but related products could be offered at highly competitive prices.

Adding new but related products would significantly enhance the salesof current products.

The organization has new management team.


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PRICE

Stevia products are produced from herb which is rare and expensive. It is verydifficult to reduce the price of the product with the existing resources. As most ofthe organic products are found as expensive and artificial products are found ascheaper but stevia has competitive advantage of over other artificial sweetenersis because it is 100% natural and has no side effects. People who are consciousabout their health or are already suffering from any disease would not go to takeany risk and would not compromise in price. As in economic recession peopleare very sensitive about price but people are more aware of the organic ornatural effects of products.Economics and pricing will be key determinant in thegrowth of Stevia.It is critical for suppliers to rationalize Stevia prices to enter the mainstream

ingredient business. Economies of scale and distribution will also throw up newchallenges impacting the pricing. Rebaudioside A content in Stevia leaves isrelated to plant variety, region, method of cultivation, preservation andpreparation processes. Existing Stevia leaves can produce differentRebaudioside A contents, but the use of sophisticated process and equipmentand higher raw materials and per-unit energy cost are expected to push pricesup.

QUANTITIES AND PRICE RANGES:

QUANTITY PRICE (Rs)

Box containing sachet(50) 315

Box containing tabs 145

Bottles 350

Pricing O bjectives

First of all we decide where we want to position our market offering. Steviaposition marketing objective through pricing on the basis of product quality
http://en.wikipedia.org/wiki/Pricing_objectiveshttp://en.wikipedia.org/wiki/Pricing_objectives


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leadership. Product is categorized by high level of perceived quality and taste.The price set is not very high that it reaches out of affordability of consumer.

Pricing M ethod

Pricing method followed by stevia product is Markup pricing, done by identifyinginput cost and finally analyzing the realistic profit should be attained from thatinput. Being 100% natural and with no side effects this product is expensive ascompared to other major competitors but it satisfy the consumer need of safetyfor which the consumer move towards sweetener industry.

PRICING STRATEGIES

Stevia products are available with different pricing strategies in market to caterthe needs of maximum people and attract more customers towards the product.Price strategies would be dependent upon the marketing strategies. Marketingwould modify the degree of prices in particular segment and need for pricechange in any situation.

Currently the price strategies include

Location pricing

Same stevia product is priced differently at different locations even though thecost of offering at each location is the same. Stevia in 7th avenue is available for315 rs where as same stevia products in I- sectors of Islamabad are available for305 rs.


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Channel pricing

Stevia carries different prices depending on whether it is purchased from ahigh market store of Islamabad, a normal chemist shop in Rawalpindi,

doctors clinic, hospitals, or for awareness seminars.

Product form pricing

Different versions of the product are priced differently but not proportionalityof their respective costs.

Price discrimination

Price discrimination on stevia products is offered to customers on the basis oftheir loyalty towards the product and the quantity demanded of the product

Customer segment pricing

Different prices are charged to different customers. Elder people get discountwhen they get prescription from the doctor or when any educationaldepartment ask for the product to create awareness.

Backward integration

Backward integration is a strategy of seeking ownership or increased control

of firms suppliers.

Stevia should go for this strategy because

Current suppliers are not reliable and are expensive

Current suppliers cannot meet the current needs

Numbers of suppliers are small and competitors are large

Industry is growing rapidly

Cost leadership is very important to come and survive in competition

Discounts and A llowances

Stevia currently need to rely on discounts and allowances to survive and getposition in market other wise it will stay to be an unknown brand for all.Discounts would make stevia a popular brand with more benefits and value.Currently company can give
http://en.wikipedia.org/wiki/Discounts_and_allowanceshttp://en.wikipedia.org/wiki/Discounts_and_allowances


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Cash Discounts

Cash discount is given to people who buy product more frequently.

Quantity Discounts

Quantity discounts are given to those who buy in bulk for self usage or forfurther recommendations. E.g Doctors can place Stevia in clinics, Gyminstructors can place it in Gyms and Bakery owners can use it in bakeryitems for diabetic patients.

Psychological discounting

It includes selling the price at a price line form. Selling stevia at price of299 or 199 this would not make huge decrease in price but would increase

sales in return.

Discounts for Social Responsibility

Special discounts are given for people who want to create health

consciousness among people or want to create awareness aboutsweeteners in market.

PROMOTION

Promotion is done to disseminate information about a product, productline, brand, or company. It is one of the four key aspects of the marketingmix.

o Promotional Goals

The goals to promote a product are

sales increases

new product acceptance

creation ofbrand equity
http://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Product_linehttp://en.wikipedia.org/wiki/Product_linehttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Brand_equityhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Product_linehttp://en.wikipedia.org/wiki/Product_linehttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Brand_equity


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positioning

competitive retaliations.

o Promotional Mix

ADVERTISING, MEDIA, AND VEHICLES

MEDIA VEHICLES ADVERTISMENT

TV Cooking programs, T-V commercial,
http://en.wikipedia.org/wiki/Positioning_(marketing)http://en.wikipedia.org/wiki/Promotional_mixhttp://en.wikipedia.org/wiki/Positioning_(marketing)http://en.wikipedia.org/wiki/Promotional_mix


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health awarenessprograms, Sponsor timechecks.

Seminars

RADIO Add health awarenessprograms with ads.

Voice commercials andawareness programs by

experts.NEWSPAPERS Articles on Reviews, Ads

on main or second page.Print ads, Newspapersupplements, Catalogs

WEBSITES & EMAILS Banners, popups , emailto targeted audience

Broachers, fliers ,Banners on streets

TELEVISION ADS

TV CHANNEL TIMING FREQUENCY

GEO(Time Check) 7-12 pm 6 Times a Day

ARY DIGITAL(CommercialAds) Prime Time 3 Times a Day

PTV(CommercialAds) Different Slots 3 Times a Day

MASALA TV Cooking shows 2 Times a Day


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GEO SUPER Different Slots 4 Times a Day

PRINT ADS

Magazine Frequency

Daily dawn Twice every week

Roznama jung 10 times a month

Sunday Plus(The Nation)

On Sundays

Raabta Once a Month


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SEMINARS/ EDUCATIONAL INSTITUTIONS

To create awareness about stevia product line we will arrange seminarsheaded by doctors and research scientists to tell about the benefits of theproduct in hospitals or educational institutions.

NEWSPAPERS

Articles written by research scientists and doctors would be publishedevery Sunday to create more awareness and promote the product.

SOCIAL RESPONSIBILITY

Banners on roads with health care lines would show that company issocially responsible and positive image would be created.


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TV ADS AND PROGRAMS

Ads would be properly shown with proper timing and channel. Specialshelves would be placed in stores with brand ambassadors. Fliers andbroachers would be properly arranged to guide people. Cooking programs

are arranged which show the usage of stevia products. In Masala Tvproper sponsor programs are shown.

JOINT VENTURE/ PARTNERING

Joint venture is a popular strategy that occurs when two or morecompanies form a temporary partnership for the purpose of capitalizing onsome opportunity. Stevia can be jointly promoted with any differentindustry e.g tea or milk industry. Stevia need to be promoted with localcompany which has already made its place and position in market. Bystrategic alliance with stevia other company would get an opportunity to

show themselves socially responsible.Stevia should go for joint venture because

Stevia needs to be promoted locally

Stevia needs to compete in highly growing industry

Stevia wants to create good positioning


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Price should be justified with benefits

Helps in market development

CUSTOMER RELATIONSHIP MANAGEMENT

Stevia is highly interested in knowing and giving value to customersbecause stevia cares about its customers Stevia is going to preservedatabase of its customers gathered from observations, reasons ofpurchase, interests, habits of customers. Database would containcomplete information about the frequency of purchase and purpose.Every customer would be considered as an individual and would getindividual benefits. Customer service department would be open 24

hours for all who want to get any information about product and itsavailability. Customers can do shopping online from internet and canbook their orders. By online purchase we can collect data ofcustomers, monthly newsletters and emails can allow us to make long-term relations from customers.

MOBILE DOCTOR

Today because of technological advancement we have a concept ofmobile doctor who give guidance when you are facing any medicalproblem. Stevia has a contact with all mobile doctors who can guide

you about all issues related to diabetes,in the treatment of cough, jointpains, blood pressure, diabetic, weight management and skinrejuvenation.

FULL DOCUMENTARY

Complete documentary should be formed showing the process fromproduction to the distribution of stevia and its benefits to consumer. Indocumentary awareness should be created about sweetener industry.


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SPONSORSHIP

Company should arrange sponsorship events e.g. sponsor gameshows or sport events e-g hockey, cricket or golf and allow loyalcustomers and sports heroes in that event, cooking programs or healthwalks etc.

INTERNET

Company give complete information about its product on websitewww.stevia.com, stevia promotions are also placed on hospitalwebsites, health related clubs, Fitness gym sites, and groups on


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facebook. Contacts are made through email based on monthly, weeklyor daily subscriptions.

RESTURANTS AND AIRLINES

Stevia should marketed and placed in restaurants for the use bycustomers and airlines should also serve stevia sweetener to travelers.

INSERTS(Leaflets in magazines and newspaper)

Broachers would be inserted in newspaper of Sunday that will includewhole information about stevia product and contact details.

DIRECT MARKETINGSales force would be assigned with the work measured on the basis ofreward on performance. Sales force would visit offices with steviaproduct and would arrange small informational lecture for officeworkers. At the end of lecture option would be given to listeners topurchase the product on discounts at spot and memberships for steviahealth care club.


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MASCOTAdvertisement of stevia is done with a Mascot. Mascots are powerpuffgirls (STEVIA GIRLS) who represent strength, love, peace, help,

happiness and Heaven.

PERSONAL SELLING

Stevia products are different from other sweeteners in the market but lessor even no one know about the difference and there is less awarenessabout it. People either chose product on the basis of price or by looking atunconscious cues i-e colors, size and packaging. The main feature needsto be positioned is that it is 100% natural and has no side effects and thisis stevias competitive advantage. Stevia is now managing trained brandambassadors who will stay in front of the shelves where stevia is placedso when people come and get confuse about the difference in product

price then theycan tell them about its advantage over other products inshelve.

During the whole process the brand ambassadors will tactically identify theneeds and problems, deal with objections, forestall the objection andfollow-up. Catalogs would be present with brand ambassadors to give and
http://en.wikipedia.org/w/index.php?title=Personal_Selling&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Personal_Selling&action=edit&redlink=1


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guide customers about prices, product line, advantages, history and usageof stevia products. Broachers could guide customers and help brandambassadors to provide complete information to customers in short time.

SALES PROMOTION

Scheme Memberships Benefit

Loyal RewardProgram

On-shelfcouponing

On-linecouponing

Memberships forconsumers including(children, Middle age,older male and female)

Deals in luxuriousrestaurants, 5% paymentof medical fees, freeentry in health seminars.

Dealer loader

Trade contest Point-of-

purchasedisplays

Trainingprograms

Dealers/ retailers Extra sales promotion

tools given to retailer forstevia with time to timegifts in bulk quantityincluding Diaries, Fridgesor Computers. 10%decrease in price ifpurchased in bulk andresult into increase insales.

Certifications

Research and

experience

Doctors and surgeons Certificates travel toenhance experience and

online recommendationsof doctors who be closelyassociated with the salesof stevia products.

PUBLIC RELATIONS

Stevia is a product for health conscious people because people who areeither suffering from diabetes or are conscious about the health would be
http://en.wikipedia.org/wiki/Sales_promotionhttp://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/Sales_promotionhttp://en.wikipedia.org/wiki/Public_relations


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inelastic about the price of product and would see the benefits associatedwith the product other then price.

DISTRIBUTION

Channels of distribution provide the link between production or supply andconsumption. They are used to make products or services accessible andavailable to consumers or buyers. As a product or services passes through itschannel of distribution it gains added value because it becomes available to theconsumers when and where it is wanted.

o Geographical coverage

Stevia need heavy advertisement to get famous and to create awareness aboutnatural ingredients with no side effects. To create a balance between heavyadvertisement distributions should be at same level. Stevia should be available inareas where it is advertised. If we take example of Islamabad and rawalpindistevia should be available in every sector of Islamabad to provide a value to

customers and heavy placement would increase chance of sales.

o Distribution channels

The distribution channel adapted by stevia is short channel. The supplier ormanufacturer supplies the customer in a consumer goods market through aretailer, who acts as a reseller or intermediary.


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Whilst the supplier is not in a direct contact with the customer, this channel typeminimises the loss of contact ; while at the same time it maximises the suppliersinfluence and control over the retail intermediary or agent.

For instance, The supplier and retailer will agree to co-operate in funding,designing and spacifying:

Promotional activity, whether it can be external advertising or in-storesales promotion.

Store layout and product display

Training of shop sales staff

o Physical Distribution

GLG Life Tech Corporation is a global leader in the supply of high purity stevia,an all natural, zero-calorie sweetener used in food and beverages. TheCompanys operations cover each step in the stevia supply chain including non-GMO stevia seed breeding, natural propagation, stevia leaf growth and harvest,proprietary extraction and refining, marketing and distribution of finished product.GLG advanced technology and extraction technique make it one of the worlds

Manufacturer/supplier

Retailer

Customer


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leading producers of high purity stevia extracts, including rebiana made with 97%Rebaudioside A. GLG Life Tech Corporation manage the distribution of productin Pakistan and make strategies according to the demand.

Stevia products are available in below mentioned places in bulk quantity.

Medical stores

Hospitals

Clinics

Retail stores

Restaurants

Gyms

Women health clubs

INITIAL INVESTMENT:The initial investment is estimated to be 150 lakh rupees.

RESEARCH EXPENSES:The estimated budget for conducting the research is rupees 20, 00,000/-

EXPENSES ON ADVERTISING:

1. On television:


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Advertising on television (PTV-1) for 4 minute slot costs rupees 142500.00/-per minute, from 7:00 PM to 7:30 PM. The estimated expense for advertisingon this medium is rupees 25, 00000/-

2. On radio:

Advertising on radio costs on the basis of per second. An advertisement of1minute on prime time costs rupees 10,000. If the ad is being given on radiofrom 15-18 times then it will cost 1.5 lakh rupees.

3. In newspapers:

Giving the advertisement in a news paper (classified which includes Janggroup, Dawn, and The news) will approximately cost 35 rupees per wordthus making a total of500,000.

4. In magazines:

The cost of advertising in a magazine will cost 850-1000 rupees per worddepending upon the location of the page. So, if the ad is being given in aweekly magazine then it will approximately cost 10, 00000/- rupees.

5. Bill boards:

The cost of advertising the product on bill boards costs a per day tax of 1 lakhand 50 thousand rupees to the government. And if the billboard is used for 15

days then it will cost 22 lakh and 50 thousand rupees.

ADMINISTRATIVE COST:It includes the salaries of the managers and executives. The estimated expenseis of rupees 50, 00000/-


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CONTINGENCY PLANS

A Contingency plan is a plan devised for a specific situation when things could gowrong. Contingency plans are devised by businesses who want to be preparedfor anything that could happen. They are sometimes known as "Back-up plans","Worst-case scenario plans", "Scrap Stituation" or "Plan B"We have recommended different strategies for Marketing mix which include

product, price, place and promotion. Contingency plans would get active whenother strategies get failed or everything is not going as planned.

MOVE AHEAD OF COMPETITOR
http://en.wikipedia.org/wiki/Businesseshttp://en.wikipedia.org/wiki/Businesses


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Competitive advantage of stevia is that it is 100% natural and this gives stevia achance to charge maximum price which is comparatively higher then competitorsprice. Company should try to maintain its competitive advantage and try to addadditional value based things in it. Currently we can see that stevia can faceaftertaste issues and to over come this issues Flavor companies are launching

tool boxes and solutions for eliminating the aftertaste associated with Stevia-derived sweeteners. Comax flavours, Symrise, Firmenich & Sensient Flavours forexample, have all been busy developing new masking agents for Stevia, witheach of them working on customization for a variety of applications.Givaudan has been directing its taste research, sensory science and receptor-guided ingredient discovery to address the bitterness associated with Reb A.Screening of a diverse chemical library has led to a portfolio of more than 20 newflavour ingredients effective against Reb A bitterness. Stevia should try tomaintain this competitive advantage and when it see that another competitor canovercome this competitive advantage then company would go for additionalflavors to keep itself different.

INTEGRATING SOCIAL NEEDS WITH BUSINESS GOALS

When company face a situation when its Plan A is not working properly and needto take help of Plan B then company would try to use such points which itobserve when Plan A was implemented and need of plan B arose. All theinformation and sources would be gathered and new strategy would be madeaccordingly.

REDUCTION IN PRICE WITH RESPECT TO PACKAGINGStevia would be available in new packs with reduce quantity and price would bemeasured according to the quantity. 50 tabs each box would be charge lesserthen box of 100 tabs. This would allow company to provide convenience tocustomer to purchase in lesser and economical price.

SPECIAL WEIGHTLOSS AND HEALTH CARE CLINICS

Special weight loss and health care clinics would be arranged to createawareness and loyalty programs to retain and acquire new customers.

MANAGE CERTIFICATION

Authentic certificate should be arranged in short time immediately to get moresatisfaction for customers.


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CONCLUSIONThe future of this industry is dependent on greater access to information oncultivation, production, flavor-enhancements, regulations, supply chain,marketing and socio-economic issues. Constantly monitoring trends in theindustry will provide critical information needed for business and public policydecision-making.There are several limitations to the growth of Stevia markets.The key ones relate to economics as Stevia products are currently moreexpensive than other high-intensity sweetener products. The other issue relatesto after tastes as Stevia products are reported to have a distinct after taste.Companies involved in formulation development are focusing on this as also

product consistency issues.The major challenges for the Stevia market iscompetition with ordinary sugar, higher price of Stevia added products than theordinary products and lack of raw materials. As Stevia value chain fromcultivation to processing to refining is poised to grow in near future, it isimperative to look at sustainable models of Stevia production an activity whichcan have profound implications for revitalising rural economies world wide.Higher marketing efforts would create awareness about sweetener industry and


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stevia in minds of consumers. With time stevia first would become Trade mark,then it would become Trust mark and finally it would be converted into Lovemark.

REFERENCES

www.stevia.com

Wikipedia Stevia world forum

Sales force management

Marketing practices

Global stevia industry perception report 2009- Dr RajaGopal

A Position Paper by KnowGenix in line with Stevia World Europe 2009

Stevia as an Alternative Sweetener - Promise and Challenges waswritten by Dr. R. Rajagopal,

Documents

26248716 Project on Stivia in Pakistan