IQRA UNIVERSITY

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FRE SH AND HE ALT H Y

FR UI T JUI CES

B I N G O J U I C E F - 8 M A R K A ZI S L A M A B A D

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M A R K E T I N G P L A N

BY:

HASSAN SARDAR 10646MUHAMMAD BIN TARIQ 10605SYED ATIF UBAID 10665TAIMOOR RATHOR 01813

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TABLE OF CONTENT

Executive Summary 5

Current Market Situation 6

Market Description 6

Product Review 7

Ingredients 8

Production 8

Packaging 9

SKUs 9

Product Range 10

Package Branding 11

Competitive Review 12

Market Share 14

Distribution Review 15

SWOT 15

Objectives and Issues 17

Marketing Strategy 17

Positioning 17

Product Strategy 18

Pricing Strategy 18

Distribution Strategy 18

Promotion 19

Estimate Sale 23

Market Research 23

Questionnaire 24

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EXECUTIVE SUMMARY

The ANDREWS COMPANY LTD wants to be a Global soft drink named “BINGO”

with characteristics associated to digestion. Currently, in Pakistan there are some

sort tasty drinks but no doubt they are harmful for health to some extent, but if we

look into juices like “ENO” and tablets like “HAJMULA” which are only

restricted for digestion and can not be used otherwise.

Here it comes the need of our product that is basically considering on tasty drink

as well as helpful for digestion. BINGO as the fresh natural, Hygienic juice with

original fruit taste which is readily available, and is for everyone.

BINGO is striving to make its place in the market Through Its heavy

Advertisement and Direct Selling at popular shopping malls and other crowded

places.

BINGO would be promoted as a product with youthful and fun-loving image. The

company will start with an extensive distribution network including wholesaling

and personal selling. Islamabad, Hyderabad, Lahore, Faisalabad, Quetta and

Karachi are the major target markets for its sales. BINGO advertisement target

people of all age highlighting the instincts who are facing digestion problem.

BINGO pricing strategy is “competition based pricing”.

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CURRENT MARKET SITUATION

ANDREWS COMPANY LTD, a small budget startup aimed at producing high quality natural products, is about to enter the Beverages Market which is highly competitive and is dominated by strong Brands of established companies like Nestle, Unilever and other foreign and local companies. Now, however, sales in the beverages markets are dominated by the bigger companies but certain environmental factors have given small companies a chance to launch carefully positioned brands enabling them to get a reasonable market share and an opportunity for growth.

The emergence of these local brands is an indicator of the change in the consumer preferences towards local brands with good quality. A great number of local beverages brands in the market further reinforce this fact

The estimated size of the beverages market is approx. Rs.15.7 billion plus, with an average growth rate of 20-25% for the next couple of years.

To gain market share in this environment, BINGO must carefully target specific market segments with its unique value propositions and price.

MARKET DESCRIPTION

BINGO market consists of consumers who prefer Freshness, Good Taste, Healthy drink and easy availability at an affordable price. BINGO also targets customers who are facing digestion problem. Specific segments being targeted during the Initial Launch

Table A (next page) shows how BINGO addresses the needs of the targeted consumers.

BINGO multi dimensional set of benefits and a range of different flavors make it a complete and balanced fruit juices, which meets the basic needs of all the consumer segments.

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Target Segment Customer Need Corresponding Benefit

Children Nutrients

Healthy diet

Portability

Increases appetite

All features of the product

Sports Individual Energy

Calories

All features of the product

People facing digestive problems Relieves indigestion

Low price

Aseptically packaged

Affordable price

Table A: Need – Benefits of BINGO

PRODUCT REVIEW

Our fruit juice, the BINGO, has the following characteristics:

Full of nutrients

Energy drink

Digestive juice

Hygienically Packaged

Delicious Flavors

o Apple

o Orange

o Banana

o Strawberry

o Lemon

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INGREDIENTS

BINGO Ingredients:Ingredients: Fruit juice (89%), Low temperature pasteurized.

Nutrition FactsServing Size 2000 cal dietSodium Bicarbonate 2.32g,

Sodium Carbonate 0.5 g,

Citric Acid Anhydrous 2.18g

Energy 157cal

Fat 0.0gm

Protein 1.15gm

Carbonates 32.5gm

Sodium 1.5gm

Sugar 31gm

Vitamin C 5.7gm

PRODUCTION

The BINGO production process includes the following steps:

1. Fresh fruit directly from the farms.

2. Juice production in a sterile environment

3. Aseptic Filling

For round the year availability of the fruits, arrangements will be made for the storage of off season fruits.

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PACKAGING

The packaging process includes Aseptic container production & packaging. The packages and SKUs were carefully selected and designed for product differentiation (Shelf Space) and longer shelf life in mind. The average shelf will be 3 months.

SKUS

BINGO has the following Stock Keeping Units (SKU):

250 ml Translucent Pet bottle:

Chosen because of portability and differentiation from the other competing products

500 ml Translucent Pet bottle:

Chosen to cater the small segment of intermediate consumers

1 Liter Tetra Brick Aseptic ( TetraPak ):

Chosen to cater the household usage segment

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PRODUCT RANGE

BINGO will initially be available in three Flavors.

Apple

Orange

Strawberry

These flavors will be available in all three SKUs.

PACKAGE BRANDING

Brand name:

BINGO Brand name was chosen for a juice because of its unique and effective way of digestion.

Label design:

The label was designed to look pretty and standout among different products while keeping in line with over all positioning of the product.

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COMPETITIVE REVIEW

Our product is basically target towards the Beverages Market, more specifically the Cold beverages market. Bingo’s competitors can be divided in to two categories:

Branded Beverages like NESTLE

Digestive medicines like ENO, HAJMOLA

Branded Beverages:The major shareholders are the branded beverage producers and our product will be directly competing with these brands:

Key advantages:The branded producers have several key advantages over our product:

Large advertising budgets

Established and well known Brand Names

Large production capacity

Established distribution networks with lucrative trade offers

Strong financial back allowing them to sustain longer with very thin sales margins

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Strategies:

Intensive distribution

Heavy advertisement

Heavy consumer promotion programs

Digestive Medicines:The digestive medicines market is basically a drink or pills which can only be

used after meal to get relief for indigestion.

Advantages (ENO):

Old brand (built brand loyalty)

Can sell at a lower cost with narrow margins

Very low manufacturing overhead and expenses

Less need for advertisement or promotion

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Market Share:Competitors

Branded Beverages

Nestle 43%

Shezan 28%

Others 29%

Digestive Medicines

ENO 31%Hajmula 24%Mylenta 29%Others 16%

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DISTRIBUTION REVIEW

BINGO JUIICE will initially be distributed through indirect channels (Producer to Retailer) to select A and B class stores and non-store retailers in the Islamabad & Rawalpindi markets. Among them the selection will be based on Geographic concentration and Income group.

The targets will be the stores within the vicinity of high concentration of Upper class, Upper Middle and some Middle Class areas.

The areas initially targeted will be major cities like Islamabad, Rawalpindi, Lahore and Karachi.

Although distribution will initially be restricted to these cities for the first phase of the test launch, we plan to switch to much longer channel with more coverage after a successful launch. We will emphasize trade sales promotion in the first year and free sampling consumer promotion to entice trial and to build brand awareness.

STRENGTH, WEAKNESS, OPPORTUNITIES, AND THREAT ANALYSIS

Strengths:

Innovative product:o A similar product is currently not available in Pakistan.

Affordable price:o Pricing is competitive and affordable.

Affordable with a bundle of values:o Full of nutrients

o Energy drink

o Digestive juice

o Hygienically Packaged

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Weakness:

lack of Brand awareness:Being a new product and an unknown brand, this is a major weakness and strategies will be used to overcome this and build brand awareness.

Low budgets:Being a small group with limited budget, very less budget will able for promotion and advertising.

Limited production capacity: Initial production capacity will be limited.

Opportunities:o Increase in consumer demand

o Expanding market for local Brands

Threats:o Competition from large producers

o A similar launch by a large competitor

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OBJECTIVES AND ISSUES

Major launch objectives will be building brand awareness and product trial

Due to low budget, below the line activities will be used to promote the product

Push strategy through distribution channels, because of low budget for advertising.

Successive strategy, after the successful launch should be focusing on our ability to establish a well-regarded brand name linked to a meaningful positioning. We will have to invest heavily in marketing to create a memorable and distinctive brand image projecting innovation, quality, and value. We also must measure awareness and response so we can adjust our marketing efforts if necessary.

All these will be judged after 1 year from the launch to analyze whether the launch was successful or not.

MARKETING STRATEGY

BINGO marketing strategy is based on a positioning of product differentiation. Our primary consumer target is middle- to upper-income households and individuals who are facing digestion problem.

Our secondary consumer target is schools and colleges which has the major segment of teens and preteens. We will have to create awareness of our product and brand through target consumer promotions. This segment can be described demographically by age (7-19) and education status.

We will also be targeting people having digestive problem by launching awareness programs to make them aware of the new way of coping up with their digestive problem.

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POSITIONING

Using product differentiation, we are positioning the BINGO as the fresh natural, Hygienic juice with original fruit taste which is readily available, and is for everyone.

PRODUCT STRATEGY

The product characteristics and branding has been discussed in detail previously. The product will be available in three different flavors and SKUs.

PRICING STRATEGY

The BINGO SKUs will be available at the following prices:

1) 250ml Rs. 18/-

2) 500ml Rs. 35/-

3) 1 Liter. Rs. 60/-

The prices have set low to increase trial and brand penetration.

The price Break is as follows:

SKU Production Cost

Packaging Cost

Distribution Cost

Trade Price

RetailerMargin

Retail Price RP + 15% GST

SalesMargin

250ml Rs. 8/- Rs. 2/- Rs. 1/- Rs. 14/- Rs. 1.3/- Rs. 15.3 Rs. 18/- Rs. 3/-

500ml 15/- 3/- 1 /- 26.75 Rs. 3/- 29.75 35/- 7.75/-

1 Liter. 30/- 2/- 2/- 47/- Rs 4/- 51/- 60/- 13/-

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DISTRIBUTION STRATEGY

Our channel strategy is to use selective distribution to BINGO sold through well-known stores. The channels will be as follows:

TRADE OFFERS

Trade offers will be given to the retailers to aid in shelf placement and an increase chance for Impulse buying and brand exposure to the consumers.

Since our Brand is new brand we will have to give schemes to the retailers in order to attract them and take our product.

Sample schemes:

o 12 + 1

o 24 + 2

o 36 + 3

Manufacture Consumer Retailer

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PROMOTION

PRINT MEDIA ADVERTISEMENT The advertisement decided for the newspapers is shown on next page.

Media category:Media category decided for the advertisement is local leading English newspapers as our target market is some upper and upper middle class, so keeping those people in view the readership of such newspapers is absolutely accurate.

Newspaper:The readership for local newspaper is “The News”, a largely distributed paper.

AD-1: Teaser ad for creating “before Launching” demand.

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ELECTRONIC MEDIA ADVERTISING

Media

This advertisement is to be launched at Geo TV, ARY Asia, ARY digital and AAJ channels. Because the teenagers has at maximum viewer ship at these channels.

LOW SCALE PROMOTION:

Retailers: For impulse buying of our product different banners and

posters are provided to retailers for product promotion and also some trade offers are used so that preference should be given to the product and appropriate shelf placement is provided by the retailer.

Shop posters

Banners

Billboards

Schools: Awareness campaigns

Free sampling

ESTIMATE SALES

First three months: 60 thousand unitsEnd of year: 5 lac units – 8 lac units

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MARKET RESEARCH

A survey was conducted for fruit juices and digestive drinks existing in the market and the preferences given by the user to such products. The market research helped out in identification of the gap required to be filled. As the consumer today is health and hygiene conscious so this leads to further reinforcement of the basic idea of this research. Sample survey is provided:

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QUESTIONNAIRE

MILK SHAKE DRINKS AVAILABLE IN MARKET

Please tick the appropriate box.

1- Gender: Male Female

2- Marital Status:

Married Unmarried

3- Age Group:

Below 20 21-30 31-40 Above 40

4- Occupation:

Student Professional Not Working House

Wife

5- Monthly Income / Pocket Money (Thousands per month)

Below 10 10-20 Above 20

6- Rate the following from 1-4 (in order of preference)

Appearance ------------Taste ------------Hygiene ------------Fruit Freshness ------------

7- How would you grade the existing product available in the market?

Good Satisfactory Not Good

6- Your preference about the existing product?

Home made As available in market

7- What do you suggest for BINGO?________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________