Laal Salaam - RoohAfza

8/13/2019 Laal Salaam - RoohAfza

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Lal Salaam - RoohAfza

Submitted to: Submitted by: Group 2

Dr. Kanwal Kapil Anand Kumar - 12P127

Anisha Bansal - 12P128

Ankush Singla - 12P129

Anubhav Gupta - 12P130

Bhoomi Ashwin - 12P131

(3047 Words) Aditya Chadha - 12P132


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Marketing Planning Page 2

Executive Summary

The objective of this report is to apply the concepts and methods of marketing

to a real world marketing opportunity. This exercise imparts a clear design and

practical knowledge on the implementation of marketing strategies and plans.

RoohAfza has beenselected as the product for the report because it is a

traditional drink that has stayed relevant and is one of those rare brands that has

a hold over consumers not because of marketing but because of its product.

Energy and health has been made the unique selling proposition for the brand.

For this purpose, market research was done over a sample of 259 people using

the questionnaire method. The market research data was critically analysed in

order to make conclusions.

In the trailing report the marketing strategy for RoohAfza has been mentioned

to put these conclusions into practice. The target market, positioning,

competition & product, pricing, placing, promotion strategy is specified to

accomplish the goals in the best possible manner.

The report covers SWOT analysis, PEST analysis and Porters Five Forcesmodel to evaluate the current position of the brand itself. All possible areas and

topics have been covered in the report that is necessary for repositioning

RoohAfza.


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Tables of Contents

Introduction.... 5

SWOT analysis....................... 6

PEST analysis..................... 8

Porters Five Forces Model Analysis.. 11

Hypothesis... 14

Methodology....... 15

Survey Results and Analysis....... 16

STP Strategy.................... 24

Future Scope............ 26

Conclusion............................ 27

References......... 28


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Section I

(725 Words)


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Introduction

In India, Bangladesh & Pakistan, Hamdard (Wakf) Laboratories is one of the

most renowned Unani and Ayurvedic pharmaceutical companies and the world's

largest producer of Unani medicines. It saw its inception in 1906 by Hakeem

Hafiz Abdul Majeed in Delhi, and transformed into a non-profitable trust

(Wakf) in 1948. Some of its most famous products include Safi, Sharbat

RoohAfza, Cinkara, Roghan Badam Shirin and Pachnol are among its most

popular products. Hamdard Foundation is a charitable educational trust in India

which it reinvests its proceeds into altruistic activities.

The scarlet-hued refresher, RoohAfza was founded by the company in 1907.

This traditional summer sharbat has survived the Indo-Pak Partition, the

licence raj, the economic reforms, fizzy drinks and tetra-pack juices. When the

motor car was on its way in and the horse buggy on its way out, Sharbat

RoohAfza was there, an advertisement in an ancient newspaper defines its long

survival race. More than 100 years older, it is still going strong.

The explicit Unani recipe of RoohAfza is a mix of several popularly-considered

cooling agents, like rose, and used as remedy for hot summer winds loo. It is

commercially sold as flavoured syrup for sharbats, cold milk, shakes and cold

desserts like the famous lassi and falooda. By its idiosyncratic taste, colour and

aroma, it not only began attracting the common populace, but also motivated the

poets and writers to make it a premise of their creative efforts.


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SWOT Analysis

Strengths:

It is a popular drink that acts as coolant and an instant source of energy It is made out of natural ingredients, a type of UNANI medicine which

has zero side effects

It is used as an additive and a taste maker It comes under the category of low price drinks It is recognized as a Ramadan Drink to break days fast

Strengths

-Acts as a coolant

-Made of natural ingredients

-Additive and Taste maker

- Low Price Drink

Weaknesses

-Not ready to drink

-Available in glass bottle & one size

-Seasonal sale variation

-Explore new flavours

-Tapping high congregation points

-Produce complimentary products

-Tapping nutrition trend

Opportunities

-Cola loving generation

-New entrants

-Presence of alternatives

Threats


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Weaknesses:

It is not a ready to drink beverage It experiences seasonal variation in sales It is available only in one standard size, leaving no choice for customers It is available only in glass bottles which should be handled with care It is not suitable for diabetic patients

Opportunities:

Tapping high congregation pointsMetro stations, hospitals, malls,highways, tourist spots

Explore new flavours Produce RoohAfza complimentary products In the current nutrition trend people are becoming more health conscious

which can be tapped

Threats:

As todays young generation is cola-fan and milk-diffident, it might loseits market share

Other companies shifting to health market, e.g. - tetra-pack juices. Squash, homemade syrups and Glucose are competitors


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PEST Analysis

Political:

Non alcoholic beverages fall within the food category under the FSSAI (Food

Safety and Standards Authority of India).

Behind the operation of manufacturing these products, the government has an

important role in terms of regulations. There are impending fines laid down by

the government on the companies not adhering to a standard of laws.

Following are the factors that could cause a deviation in RoohAfzas actual

results from the expected results:

Political

Changes in Law and Regulation

Political unrest and other regulations

Economic

Changes in non-alcoholic business environment

GDP growth - High disposable income

Social

Changing consumer habits and lifestyle

Changing buying behaviour

Technolo

gical

Improvement in processing and packaging techniques

New avenues - Social networking websites


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Reforms in law and regulations include changes in accounting standards,up to date taxation norms and environmental laws in domestic as well as

overseas jurisdictions.

Political changes include government reforms and civil turmoil.

Economic:

1. Frequent changes in non-alcoholic business environment which includecompetitive product, pricing pressures and their ability to achieve or

maintain allocation of sales in the local market as a consequence of

endeavour by competitors.2. The GDP is growing at 6-7% which has resulted in an increase in

disposable income. This shows that the buying power of people is

increasing which has two effects:

A positive effect on the sales of RoohAfza since more people willbe able to buy the product

A negative effect on the sales as people will look for comparativelyexpensive alternate options such as soft drinks and juices

Social:

1. Change in consumer habits as well as lifestylesTodays consumer isseeking healthier alternatives.

2. Consumer buying behaviour is changing.

Technological:

1. With the introduction of the tetra-pack, packaged juice market has comeinto existence which is giving a tough competition to RoohAfza.

2. Improved processing such as distilled extraction of fruits, vegetables anddrugs.

3. Improvement in packaging technology.4.New marketing avenues with the advent of social networking sites like

Facebook.


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Section II

(1214 Words)


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Porters Five Forces Model Analysis

1. Threat of new competition - Low Advertising and MarketingBeverage industry needs huge

amount of money to spend on advertisement and marketing. This

makes it exceptionally hard for a new competitor to enter the

market and expand.

Customer LoyaltyRoohAfza has a fair amount of share in theminds of consumers. Hence, it becomes nearly impossible for a

new player to establish its product.

2. Threat of substitute products - HighThis product line is enriched with many substitutes such as water, tea,

juices, coffee etc. accessible to the consumers. The majority of the

substitutes cannot counterpart the offers of the active players

Threat of new

competition -

Low

Threat of

substitute

products - High

Bargaining power

of consumers -Low

Bargaining power

of suppliers - Low

Intensity of

competitive

rivalry - High


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Assertiveness of substitute products in endorsementCompaniesin the beverage industry spend vast amount of money on

advertisement and marketing to distinguish their products from

others and also build brand equity, loyal customer base and

enhance visibility

Switching cost of the alternative product is very low so consumerscan easily move towards the substitute products

Perceived Price/Value in this industry is very low because mostproducts are somewhat same and are only eminent by promotional

activities.

3. Bargaining power of consumers - LowVending machine, convenience stores, food stores, restaurants, college

canteens and others are the key significant buyers for the beverage

industry.

Vending MachineIt provides commodities to the regulars in astraight line with a great deal no authority with the buyer

Food StoresThis buyer segment is combined with localsupermarkets and hypermarkets. It demands lower prices because it

gives paramount shelf space.

4. Bargaining power of suppliers - LowMajority of the raw materials enviable to manufacture beverages are basic

stuffs like sugar, flavour, colour and packaging. The suppliers have no

supremacy in bargaining over the pricing.

Large no. of important suppliersRaw material is easilyobtainable to every manufacturer and has low cost.

Switching Cost to the suppliers is very low; producers can easilyvary the suppliers.

Threat of forward integrationSince Hamdard is a wellestablished brand and has full-size manufacturing plants, bottling

system and a well-built distribution network; suppliers could not

afford losing such a well established network.


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5. Intensity of competitive rivalry - High Scope of CompetitionRoohAfza has dominated the market since

its evolution. But big players like Coke and Pepsi are also enteringthe health market which will give a good competition to RoohAfza

Degree of DifferentiationMarketing and Product differentiationhave become very significant. Where RoohAfza is selling mainly

due to its product quality, other brands are depending more on

marketing.


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Hypothesis

Hypothesis I:Level of health consciousness affects consumer decision making

process.

People are becoming health conscious which is being realised by otherplayers in the beverage and as a result they are tapping the potential

health market in the beverage market. Due to this, people are getting

more options such as tetra pack juices which can affect the sales of

RoohAfza

Hypothesis II: Customers with high level of product knowledge make

decisions based upon their predefined premises while customers with low level

of product knowledge make an overall assessment before making a decision.

While buying the product, if the person is a regular consumer and is wellaware of the product, the factors like taste and health are more important

to him as compared to the price.


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Methodology

Based on the above hypotheses, a 9-question survey was prepared which tested

each of the above hypotheses. The questionnaire was floated on e-mail and

social networking sites.

The simple random Sampling Method was considered for the study, which is

based on assumption that the respondents are randomly drawn from population.

The consumers would have consumed Roohafza and other beverages from most

brands available in India. The sample is random from these consumers.

Sample Size and Sample Description

The sample size of this study is the response to the questionnaire, and it consists

of:

259 responses from consumerscollected online

Collection of Data

The primary data is based on the objectives of the study. Survey method that is

questionnaire development and responses has been obtained by floating the

questionnaire to social networking websites and sending it to email ids of

known/potential customers.


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Survey Reports and Analysis

1. Consumption of RoohAfza by Age Group

As the major sample population were targeted by email and social networking

the pre dominant age group who took the survey consisted of people in theirearly twenties and secondly in their late twenties.

2. Awareness about the presence of RoohAfza


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This poll allowed us to test the awareness level of people with regards to the

presence of RoohAfza in the market and the results were in tune with

expectations and a large majority was highly aware as to the brand.

3. Beverage preferred as thirst quencher

Data obtained from this poll clearly showed a declining market share for

RoohAfza due to increased competition from juices. Even soft drinks are

catching up thus proving the need for RoohAfza to market itself more

aggressively as a healthier option.

4. How much does the below parameters influence the choice ofconsumption?

Status


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From this data it is amply proved that social status plays a negligible role when

taken into account as a factor for altering consumer behaviour.

Price

Again as the price of RoohAfza is moderate it is not the most important

constituent of the decision making process when consumer buying behaviour is

taken into account.


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Taste

The taste of RoohAfza is the defining characteristic of the brand and this can be

seen be seen from the results of thepoll where its taste is the most important

factor in the decision making process.

Health


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Due to seasonal nature of consumption of RoohAfza and also general

perception as a childrens drink the use is seen to be rare because our majority

sample size consists of people in their early twenties.

6. RoohAfza as an additive

This poll helped us to identify the preferences of consumers as to the mode of

consumption of RoohAfza thus displaying actual consumer behaviour and

choice.

7. Recall Value of Products

Again we see that RoohAfza enjoys a very strong connect with consumers and

it is comparable to other iconic products like Maggi, Parle-G, Bournvita and

Chyawanprash.


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8. Rating of packaging by consumers

From the data obtained we can conclude that the packaging of RoohAfza does

not affect the buying behaviour of consumers.

9. Frequency of Consumption of RoohAfza

The poll shows that a large proportion of the consumers like to consume

RoohAfza at home. This is quite evident as RoohAfza is not a ready-to-drink

beverage. An important thing to note is that there are a good proportion of

people to whom location does not matter showing the preference of the

consumer towards the product.


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Section III

(579 Words)


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STP Strategy1. Market Segmentation:

As far as market segmentation is concerned, RoohAfza is nottargeting a single segment. Rather, it is following a pattern of Full

Market Coverage. In this, a company tries to serve all customer

groups with all the products they might need.

2. Targeting RoohAfza focuses its market on joint families and middle class

people (upper and lower).

Since it is a healthy drink made out of natural ingredients, it can beconsumed by people of any age group.

RoohAfza comes in a standard packing of 700ml at a price ofRs105/-. Since it is an additive, so the overall consumption is far

greater in volume. Also, it is a long lasting product, so the price is

also justified and a middle class consumer will not find it difficult

to purchase.

3.

Positioning

RoohAfza came into existence around 40 years beforeindependence and is running successfully since then. It has

survived partition, licence raj, economic reforms, carbonated

drinks and tetra pack juices.

The positioning became strong because of the early moveradvantage RoohAfza has in the market


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.

Its image is stored in the minds of people to an extent that everyRED coloured sharbat is perceived as RoohAfza.Due to this, no

product is able to compete in this category. One of the examples is

Sharbat-E-Azam by Dabur.

It is one of its kind beverages in terms of its ingredients. It is madeup of natural ingredients and is a type of UNANI medicine. Hence,

people see it not only as a thirst quencher, but also as a healthy

drink having medicinal properties.


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Future Scope As per the survey, people prefer fruit juices as compared to RoohAfza to

quench their thirst. Even soft drinks are sharing an equal percentage as

the chosen product. This is a potential threat for RoohAfza as a product in

terms of market share. With the introduction of tetra packs, the market of

packaged juices has increased significantly which will be a good

competition in todays health conscious generation.To counter this, as a

future strategy, the company can come up with ready-to-drink

RoohAfza packing.

As per the survey, a large proportion of the consumers are aware of theproduct. Out of these, majority have considered health and taste as

important factors while making their choice of consuming a beverage.

Since Roohafza is having a good image in the market in both these

parameters, it is a good sign for the company. So, the company should

make taste and healthits agenda for marketing.

The survey also tested the recall power of consumers with respect tofamous brands like Maggi, Bournvita, Parle G and Chyawanprash. As per

the results, the recall value of Bournvita is quite high whereas all others

share more or less an equal percentage. This is a positive sign for the

company because RoohAfza so far is known for its product quality

rather than marketing strategy. So, if the product is able to maintain

an equal mind shareas of other products like Maggi (which rely heavily

on marketing), so an increase in the marketing strategy will increase the

market share of the product.

The company can give small recipe booklets attached with the bottle.With this, people will come to know about new uses of RoohAfza as an

additive. This will help in increasing the marketing as well as sales of the

product.


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ConclusionRoohAfza, the scarlet-hued refresher, has been going strong since 1902. The

product has survived the test of times on the power of its better product

proposition. We have chosen RoohAfza, the prime product of Hamdard, as our

project focus as we think that with marketing Roohafza can ride on the health

trend. RoohAfza has kept itself relevant on the basis of its thirst quenching

ability but with the proliferation of tetra-pack juices, colas, it might lose mind

share in the coming generations.

RoohAfza has to make it attractive to the health conscious people who do not

have time. In the survey, we have found that people give importance to health

and taste over price. Also, people prefer fruit juice over Roohafza. Thirdly, most

people prefer having RoohAfza at home but a substantial proportion does not

have any inhibitions in consuming RoohAfza outside also.

We propose RoohAfza to develop and promote a ready-to-drink option to theconsumers. With improvement in packaging technology, it is possible for it to

develop such a product. The places it can promote its product are the high

congregation points like stadiums, hospitals, etc. It should also market the

product for youth who are looking for healthier options.

With product innovation and increase impetus on marketing, RoohAfza can

become a market leader in health drinks.


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References

Marketing Management : Philip Kotler, 13thEdition www.hamdard.org Mint Lounge, 10thAugust 2012 www.wikipedia.com www.hamdardbd.com
http://www.hamdard.org/http://www.wikipedia.com/http://www.wikipedia.com/http://www.hamdard.org/

Documents

Laal Salaam - RoohAfza