• Submitted to:– Sir Farooq Jam

GRADUATE SCHOOL OF MANAGEMENT

New Product Development

Marketing Management

INTERNATIONAL ISLAMIC UNIVERSITY ISLAMABAD

Khalil Hussain

ZUKAIF

Zubair

Abdulla

h

M. Ali Khera

Usman Yasir

Farooq

Imran Khalid

Group Members:

Registered Office and factory:Ternoal Islamabad

Phone: 0333-98353030333-68363400322-9780672

Fax: 051-5827385Web site: www.zukaiftea.com.pk/

(web under construction)

ZUKAIF Herbal Tea Company Ltd

How we become smart????• NEED RECOGNIZATION• People are now a days very much conscious about there

fitness. They have no time so they can't do heavy exercises in GYM.

• So Much Effort Requires To Reduce Weight.• Other Sources Are Money And Time Consuming.

IDEA GENERATION IDEA GENERATION

• Herbal tea can be made with fresh or dried flowers, leaves, seeds or roots, generally by pouring boiling water over the plant parts and letting them steep for a few minutes. Seeds and roots can also be boiled on a stove. The tisane is then strained, sweetened if so desired, and served.

• Lemon grass has an intriguing, lemony perfume without the bite that lemons can add to a dish.

• The taste is refreshing and light with a hint of ginger.

Herbal Diet Tea

“To be the no. 1 in the industry of Diet Tea by fulfilling the promises towards our customers and to maximize our profits at ultimate level by producing large number of units”

“Our mission is to satisfy our customers by fulfilling there expected need of losing weight, maintain body physic and change in the taste of Tea.”

Vision

Mission

Lemon Grass Lemon grass and other herbals was primarily grown in India,

Indonesia, and South East Asia. We are growing lemon gross near areas of Peshawar.

Other Herbals:• Other herbals which are used in small quantities and normal

price will be imported from Thailand.• Platy codon• Herba houttuyniae• Peppermint

PRODUCTION

Raw Material

Lemon Grass

Platy Codon

Herba Houttuyniae

Peppermint

20% of the total market

50% of the total market

30% of the total market

SegmentationSegmentation

Lower SegmentLower Segment

Middle SegmentMiddle Segment

Upper SegmentUpper Segment

RAWALPINDI

Region:IslamabadRawalpindi

Density:Urban

Climate:Moderate

Geographic Segmentation

TARGETINGTARGETING

For Every CustomerFor Every Customer

For Overweight People

For Fitness Conscious

People Who Want Change In Taste

For Diabetic Patient

Look smart in a very short time without any side affect.

“Welcome in the new world of Tea”

POSITIONING

o Producto Priceo Placemento Promotiono Peopleo Packagingo Process

Marketing Mix StrategiesMarketing Mix Strategies

Brand name: HERBAL DIET TEA Quality: Design: Packaging: (Detailed discussion in packaging)

Product:

Features: No side effect Natural flavor Lemony perfume Refreshing and delicious taste

Sizes 1 KG 500 gram 250 gram Sachet

YearYear Kg SalesKg Sales

20092009 33333333

20102010 2500025000

20112011 3250032500

20122012 4347543475

20132013 6142561425

Product Life Cycle

Particular1 Kg 500

gram250

gramSachet

(20)Listed Price 220 130 70 150

Trade Price 198 117 63 138

Distributor Price 158 94 50 113

Transportation Cost 151 90 48 108

Packaging 136 82 41 100

CGM 90 65 30 75

Allowances are provided on bulk purchasePayment period is 15-20 days by the distributor i.e. 3/10 net 20Seasonal price: no variation

Pricing

ZUKAIF HERBAL TEA COMPANY LTD.

FIVE YEARS STRATEGIC PLAN 2008-09 2009-10 2010-11 2011-12 2012-13

Quantity to be sold 3,333 25,000 32,500 43,875 61,425

Price per Kg. 220 250 275 300 330

Cost per Kg. 70 100 130 155 180

Sales Income 733,333 6,250,000 8,937,500 13,162,500 20,270,250

Cost of sales 233,333 2,500,000 4,225,000 6,800,625 11,056,500

Gross Margin 500,000 3,750,000 4,712,500 6,361,875 9,213,750

Fixed Costs Including Depreciation 190,000 250,000 330,000 380,000 450,000

Operating Profit 310,000 3,500,000 4,382,500 5,981,875 8,763,750

Finance Cost-@22% 216,449 250,000 330,000 425,000 600,000

Pre Tax Profit 93,551 3,250,000 4,052,500 5,556,875 8,163,750

Tax@ 35% 32,743 1,137,500 1,418,375 1,944,906 2,857,313

Net Profit after Tax 60,808 2,112,500 2,634,125 3,611,969 5,306,438

ZUKAIF HERBAL TEA COMPANY LTD.Initial Balance sheetASSETS   Liabilities and Owner's Equity

    Rs. Rs. Rs. Cash & Bank 473,000  Debt 40% 983,860 Inventory   1,000,000  Equity 60% 1,475,790 Total Current Assets   1,473,000 Fixed Assets:     Machinery 700,000  Less: Depreciation 70,000 630,000 Furniture and Fixtures 70,000  Less: Depreciation 10,500 59,500 Vehicles   700,000  Less: Depreciation 70,000 630,000 Office Equipment 112,500  Less: Depreciation 22,500 90,000                 Total Fixed Assets   1,409,500 Working Capital   422850 Total     2,459,650    2,459,650

PromotionPromotion

Push strategy: 65%

Pull strategy: 35%

• Distributor motivation(≈20%)• Retailer motivation (≈10%)• Sales representative

Sales promotionSales promotion

Promotion

• Adds on local cable TV because it is launched only in Islamabad and Rawalpindi now

• Bill boards• Posters and Leaf lets• Local news papers• Magazines• FM Radio• Gym clubs/ health centers

AdvertisementAdvertisement

• Seminars, factory tours, street activities and funfairs

• Different incentives to boost up the sales

• Some extent

Public relationPublic relation

Sale ForceSale Force

Direct MarketingDirect Marketing

– Fasten Diet Tea (UK based)

– Tea Companies• Brooke Bond supreme• Lipton (31% market share)• Tapal

– Weight reducers belts • E.g. Sona belt and many other brands

– Weight reducing medicines

Direct competition:

Indirect Competition

Competitors:Competitors:

– Institutional• Marriot, Sarina, PC, Café & Hostels etc

– General• Factory to Distributor (2 distributors; 1 for each city)• Distributor to retailer• Retailer to consumer

– Direct selling: selling at door step

Channel of Distribution

PLACEMENT

• Market Coverage:• Rawalpindi Zone

– 8000 shops

• Islamabad Zone– 5000 shops

• Inventory• FIFO method

• Transportation• 2 Shahzore trucks

PLACEMENTPLACEMENT

Strength: – Factory 50– Sales force 10

EmployeesEmployees

PEOPLEPEOPLE

– Standard Quality

– Beautiful, Attractive, Colorful

Quality:Quality:

Design:Design:

PackagingPackaging

– Address, about ingredients, health care, expiry date, toll free number

– Green, yellow, andred colors are used

Information:Information:

Attractiveness:Attractiveness:

PackagingPackaging

Plucking Tea

Tea wither

ing Fan

Tea Rollin

g

Tea Drying

Coloring

Coming soon………

Up ComingUp Coming

Herbal Iced TeaHerbal Iced Tea