Semester Project

MARKETING PLAN FOR ZAMZAM RFRESHMENT BEVERAGES

Developed By:Student Name: Muhammad Asif KhanStudent ID: MB-2-05-51271Semester: Fall-2015

Submitted To:Course Instructor: Faiz Ullah JawadCourse Name: Marketing ManagementCourse ID: 70394

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Marketing Plan for ZamZam Refreshment

This Market Plan has been developed to introduce the ZamZam Refreshment beverages in Pakistan and drive a market strategy that enable the company to successfully launch its core product ZamZam Cola along with other beverages products. The focus is to bring the ZamZam as one of the leading beverage among others.

This market plan has been developed to successfully introduce the ZamZam Refreshment products in Pakistan market. This plan not only focuses to launch the ZamZam Refreshment products but also emphasize to bring it among the leading manufacturer and distributor of beverages in sub continent. It provides the strategies that can help the ZamZam Refreshment not only to penetrate in to the market but also cope up with the already existing rivals in the same product line.

Company Profile of ZamZam Refreshment:

ZamZam Refreshment (Emirates), head quartered in Al-Ain United Arab Emirates (UAE) was established in 2002. It was founded as a specialized company in manufacturing soft drinks (cola, lemon, orange and diet cola) in cooperation with ZamZam-Jordan which worked on getting the necessary permission in 1988 to bottle and manufacture mineral waters for distribution of all of Jordan and neighboring countries.

Meanwhile, ZamZam-Jordan got its activities expanded to include other products mentioned under group 32 like, juice and other soft drinks. The company started its products distribution of soft drinks to all of UAE and other countries starting with UAE, KSA, Iraq, Syria, Oman, India, as well as African countries like Mali, Senegal, South Africa and Zambia and many other countries. In addition to that, we are now in the advanced stages to manufacture our products in these countries in the near future.

Our company uses the best materials, the thing that made our products one of the first best new trademarks with a production of high- quality soft drinks sold in Arab and Islamic countries.

Our company is still in its development stages working continuously on the improvement of its products. Our company is working on manufacturing other well-known flavors in the world addition to manufacturing some invented.

EXECUTIVE SUMMARY

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ZamZam refreshment beverages is aiming to expand itself globally and wants to a global foot print through its unique taste of cola beverages and a wide range of product line.

ZamZam Refreshment from its beginning has been committed to provide value of the money to their customers. This market plan emphasizes to introduce ZamZam Refreshment in a new geographical market and it is the part of its global expansion plan to increase its current market share.

Preliminary we will decide to enter into the South Asian region and decided to opt to enter in to the Pakistan’s market for its existing products. The Purpose is to provide delighted / undisputed beverages to the community, which acceptable for all without any ambiguity, at affordable price. We are confident enough that our management team is capable enough to successfully launch the product and will continue to maintain the same culture and values that will help us to maximize the benefits of all stakeholders.

SITUATIONAL ANALYSIS

ZamZam Refreshment is struggling to enter into a market where many other strong brands are already serving to the customers in the same products category. We affirm that our product quality and taste is strong enough to compete with the existing coal products, which are globally known.

Our key to success lies in the sincerity and consistency to fully understand the market needs and provide them more what they deserve and expected. Another important factor is that our product is undisputed and equally acceptable for all the customers from any religion, cast, culture or region.

Market Summary:

ZamZam Refreshment has collected enough information about the market and gathered information about the customers taste, preferences regarding the beverages and what they missing in other existing brands. This information will help us to better understand the market needs and will help us to serve them with differentiation. Market can be considered as the potential market with an ability to purchase the product. Different cultures are prevailing within the same market and urban areas population is the mix blend of these cultures. Interestingly the one common characteristics existing in all the prevailing culture and classes that they are fond of good and quality foods and drinks products and they spent enough for that.

Target Markets:

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Our product is acceptable for the age groups but mostly focuses to the young generations. We can differentiate our target markets as follows:

Young Generations including students, sports lovers, etc. (Provide an opportunity to fulfill their hectic personal life with thrill and adventurism)

Families (To enrich their lives with entertainment)

Business Entities (Hotels, Restaurants, Clubs, Resorts, etc.) (Provide an opportunity to increase their customers’ satisfaction through an exceptional line of soft beverages.)

Market Demographics :

The profile of the ZamZam Refreshment potential customers consist on the following basis:

Geographic:ZamZam Refreshment has segregated the market geographically into two broader categories:

o Urban Areas: Large urban areas with heavy density of population Small urban areas with low population

o Rural Areas: Developed rural areas (Large villages having separate

living areas with different standards of living) Less developed areas (Small villages having community

base living standards0 Demographics:

o There is almost an equal ratio of male and female in the country’s population.

o Age Clusters: Age between 13 to 60 years Age between 13 to 20 years (Juvenile & quite young) Age between 21 to 34 years (Young and Mature) Age between 35 to 50 years (Middle Aged) Age between 51 to 60 years (Old generation)

Behavioral Factors:o The majority of population belongs to the same religion and

having strong religious trend among the middle income and lower middle income groups.

o Most population having trend on spending money on quality and tasty food and beverage products.

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o Hectic schedule of urban area’s life compel them to look for a catalyst to boost their morals.

Market Needs:

ZamZam Refreshment is providing a wide range of soft drink beverages to the customers. Market is full of opportunities and there is a strong probability that, ZamZam Refreshment will penetrate in to the market with its unique taste of cola and wide range of product line. Market has a trend to spend on food & beverages and they continuously seek for the best quality products to satisfy their needs. The past success of the some foreign owned restaurant chains endorsed this confidence of the ZamZam Refreshment.

ZamZam Refreshment is committed to serve the target market through proving value to the money to the customers in the shape of following:

Quality Beverages. Extra ordinary Customer Services. Enriching their lives with joy and happiness.

Market Trends:

The economy of the target market has been recognized as one of the developing but emerging economy. Consumer Price Index (CPI) and inflation are not highly favorable for the new businesses but the growing rate of GDP (Gross Domestic Products) indicates that market has potential. Foreign Direct Investment is welcome by the government and provides different type of incentives.

Urban areas more civilized and developed as compare to rural areas and literacy rate is also high as compare to the rural areas. People of the urban areas has busiest schedule as compare to the rural areas population. They spend most of their time for the earning livelihood for their families and for the love ones. They always look for the opportunities to spend their leisure time with their families to fascinate their live along with their hectic schedule. They spend money for that, this trend is rising day by day and some of the urban areas of the market have been recognized as mega metropolitan cities.

Market Growth:

It has been predicted that the overall industry growth will hardly be more than 4.5% at the end of the current fiscal year. But it has been significant that the food & beverages industry growth will achieve up to 8% growth in the current fiscal year. This growth trend is remarkable as compare to other

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large manufacturing scale industries. It is strongly believe that this trend will be rise in the years to come.

Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis:

The following SWOT analysis is based on ZamZam Refreshment strengths, weaknesses in accordance with the target market and it describes the opportunities and threats existing in the same market.

Strengths:o Successfully operating in the existing market through its unique

taste of cola and exceptional customer service.o Our state of the art logistics system enables us to minimize the

overall cost.o We are financially strong enough to cope up with the market

response or we can bear the early jerks of the market.

Weaknesses:o Presently we have not investing on manufacturing process.

Opportunities:o Large population of the country belongs to same religion.o Long summer seasons in the urban areas.o Quality food & beverages are sought in the market.o Can expand ourselves horizontally in same market.

Threats:o Expecting strong resistance from the existing cola producers in the

market.o The uneven growth of economy and shaky political situation.o Global political scenarios.

Competition:

ZamZam Refreshment is struggling to enter into the highly competitive food & beverages market but attractive, where there are many foreign renowned food & beverage brands are serving to the population. ZamZam Refreshment categorizes them as follows:

Traditional Cola Producers:We categorize the following Cola producers in to the high competitive zone, due to their global presence and one of them has been regarded as the pioneer in cola producing:

o Coca Cola o Pepsi Cola

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Muslim Cola Producers:There are many other manufacturers are existing in different Muslim countries and producing soft drinks in the name of Muslim drinks or coal. These producers can be the future competitors in existing market. Presently the only one local producer is manufacturing the Muslim cola in the market:

o Gourmet Cola

Other Producers of Soft Beverages, Juices and Drinks: Beside the traditional soft drinks there is a strong market of other drinks and beverages is existing. Some of the recognized brands are as under:

o Nestleo Shezano Frootoo Apple Sidrao Red Bull Energy Drinkso Rooh Afzao Jam-Shireeno Nurus

Distribution:

Product Offering:ZamZam Refreshment is in a process to introduce limited number of products from its wide range of product line. That can be extended according to the market needs and response. The products can be categorized as under:

o The core Product: ZamZam Cola

o The other products: ZamZam Orange ZamZam Lemon ZamZam Diet Cola ZamZam Water Power Plus Energy Drinks Power Plus Energy Drinks Sugar Free

ZamZam Refreshment is confident enough that their past experience and the already established logistics system will help them to effectively manage

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its distribution network in the newly targeted market. We will channelize our distribution network through following strategy:

ZamZam Refreshment’s own operated distribution networks to distribute its products to the retail & whole sell market.

Hiring of financially sound distributors to distribute its products to the retail markets, on need basis.

In first strategy, we will distribute the products from our ware houses to our distribution centers, which will be located in the prominent localities of the three large cities. The number of distribution centers will depend upon the demand of product and in accordance with our expansion plan.

In second strategy, to meet or exceed the demand of the market and to achieve the cost efficiency, where possible the distributors will be hired to distribute the products.

MARKET STRATEGY

As per demographics the seventy percent of the population lives in the rural areas and the remaining thirty percent belongs to the urban areas. Initially ZamZam Refreshment has been decided to concentrate on large urban areas based on large cities with heavy population. With the passage of time we will enable to capture the whole market and simultaneously we will enable to increase our market share in the same product line.

ZamZam Refreshment initially not investing to develop a manufacturing facility through large capital investment. We will operate the market through distributing the parent organization (ZamZam Refreshment, UAE) products. To achieve our desired objective we will establish the warehouses in three large urban cities of Pakistan. Our company has state of the art logistics system which allows us to distribute our products economically in the market. We have experienced staff which has ability to perform without geographical distinction. They will help us to run our operations smoothly and allow us to penetrate in to the market efficiently.

ZamZam Refreshment planned to develop manufacturing and bottling facility after three successful years of introducing its products. Meanwhile ZamZam Refreshment (Pakistan) will enable to capture the whole market including urban and rural areas.

Mission:

Not Available.

Marketing Objectives:

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Continuously maintaining upward trend of sale of the ZamZam Refreshment products.

Achieve steady growth to fully penetrate in to the market. Decrease customer acquisition cost each quarter. Expansion of distribution network all over the market.

Financial Objectives:

Maximize the ZamZam Refreshment profit margin through efficiency and achieving economies of scale.

A double to triple digit growth rate for first three years of launching.

Target Markets:

ZamZam Refreshment has segmented its target market into three broader categories, large urban areas, small urban areas and rural areas. Market niche has been created through segmenting market demographically.

ZamZam Refreshment will target the young generation in its initial aggressive marketing campaign. Besides this market niche we will target the families to enrich their life with the new taste of cola products.

ZamZam Refreshment will commence the lucrative promotional activities to attract the business customers.

Positioning:

ZamZam Refreshment position itself as one of the finest producer of soft beverages products. We differentiate our self through unique taste of our cola product and raise slogan “cola for everyone”. We will want to make ZamZam Cola the first choice of the customers in soft beverages and drinks.

Strategies:

The first and the foremost aim of ZamZam Refreshment are to create awareness of the product and the value offered by us among the customers. Our market strategy will focus to communicate the unique taste of cola which they never taste before or they are unable to find in any other cola product. This message will communicate through variety of communication media. We will communicate it through:

Developing Website and other digital channels Electronic Media Print Media Bill Boards / Hoardings

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Event Organizing

The last method of communication will be used frequently only for initial three years of launching of products.

Another tactic we will going to apply that the product will be offer at introductory price only for initial three months, which will be low as compare to the other cola producers or competitors products.

Marketing Mix:

Products:

Type: Soft Drink Carbonated beverageIngredients: Carbonated water, sugar,( caramel) colour, Acidulant, (Phosphoric Acid) Caffeine, Emulsifier (Arabic Gum), Natural Cola Flavor Size: 250 ml Regular

300 ml Pet Bottle350 ml Cane500 ml Pet Bottle1.5 liters Pet Bottle

Type: Soft Drink Carbonated beverage, OrangeIngredients: Carbonated water, sugar, Acidulant, (Citirc Acid)

Emulsifier (Arabic and ester Gum), Natural Orange Flavor, Preservative (Sodium Benzoate), Color (Sunset Yellow), Antioxidant (Ascorbic Acid), Vitamin (C). Size: 250 ml Regular

300 ml Pet Bottle350 ml Cane500 ml Pet Bottle1.5 liters Pet Bottle

Type: Soft Drink, Low Calorie Carbonated beverage, LemonIngredients: Carbonated water, sugar,Natural Citrus Flavour, Acidulants

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(Citric Acid), (Malic Acid), Acidity Regualtor (Sodium Citrate), Preservative (Sodium Benzonate), Natural Lemon-Lime Flavor.Size: 250 ml Regular

300 ml Pet Bottle350 ml Cane500 ml Pet Bottle1.5 liters Pet Bottle

Type: Soft Drink Carbonated beverage, Diet ColaIngredients: Carbonated water, sugar caramel, Acidulates (Citirc Acid, Phosphoric Acid), Sweetener (Aspartame 350 mg/lt.), Acidity Regulator (Sodium Citrate, Preservative (Sodium Benzonate), Caffeine, Natural Cola Flavor.Size: 300 ml Pet Bottle

350 ml Cane500 ml Pet Bottle

Type: Power Plus, Energy Drinks, Sugar FreeIngredients: Carbonated water, Acidity Regulator, Acidity Regulator (sodium Citrate), Preservative (sodium Benzonate), Citric Acid, Taurine (Max 0.4%), Glucuronolactone (0.24%), Sweetner (Aspartame, Acesulfame K), Caffeine (.03%), Inostiol, Vitamins (Niacin, Pantothenic Acid, B6, B12), Flavour, Colours (Caramel, Riboflavin).Size: 300 ml Pet Bottle

350 ml Cane

Type: Power Plus, Energy DrinksIngredients: Carbonated water, Sugar (Sucrose), Glucose, Acidity, Regulator (Sodium Citrate), Preservative (Sodium Benzonate), Citirc Acid, Taurine (Max 0.4%), Glucuronolactone (0.24%),

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Caffeine (0.03%), Inositol, Viatamins (Niacin, Pantothenic Acid, B6, B12), Flavour, Colour (Caramel, Riboflavin).Size: 300 ml Pet Bottle

350 ml Cane

Type: Power Plus, Citromin CIngredients: Carbonated water, sugar (Sucrose),Glucose, Citric Aci, Taurine, Glucuronolactone, Caffeine, Inositol. Vitamins (Niacin, Pantothenic Acid, B6, B12), Flavour, Preservative (Sodium Benzonate), Antoxidant (Ascorbic Acid).Size: 300 ml Pet Bottle

350 ml Cane

Type: Power Plus, GensengIngredients:Size: 300 ml Pet Bottle

350 ml Cane

Type: Power Plus, Vitamin CIngredients:Size: 300 ml Pet Bottle

350 ml Cane

Type: Pure Natural Mineral WaterIngredients: Pure Natural Mineral Water From Springs LIE in the heart of the scenic Hatta Peak District Filtering Through Acnient Limestone. This Water Emerges With a Natural Balance of Minerals, Calcium, Magnesium, Creating Great Taste, that is Spring Water

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Size: 300 ml Pet Bottle1.5 liters Pet Bottle

Price: Not les then the market price level of the same drinks.

Place: Large Urban areas Small Urban areas Rural Areas

We will strive to mange that our product will be at the outlets with minimum time and at minimum cost.

Ultimately our sales operations will be operated economically to achieve our ultimate objectives to increase profit in social and ethical manner.

Promotion: Lucrative discount offers to the distributors, wholesalers and

retailers. This promotional activity will be accompanied with the other

promotional tools like offering company owned refrigerators; wholesalers and retailers sign boards, etc.

Sales promotion events organizing. Sponsoring the mega events, specifically the sports events

Marketing Research:

Our market research will be based on two phases:

Pre Launching: At this phase we will carry out a comprehensive research to analyze the market demand and identify the reasons of the failures of the past attempt made by the other manufacturers in same products. This research will help us to clearly identify the market depth for the product and its probability of success and failure.

Post Launching: We will be continuously in a search of that, how we can improve our existing products quality that can satisfy the customer’s need and to extend our product line in accordance with the new demands of the market, this will help us to understand the market dynamics and will able us to serve the market in more effective and efficient manner.

FINANCIALS

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Marketing Budgets:

Marketing budgets is divided in to two parts, the first part of the marketing budgets deals with the pre launching activities and the second part of the budget deals with the post launching activities:

First Part of the Budgets:Amount in million rupees and estimated upon current market situation:

Particulars Allocated Amount Description

Marketing Research 02.0 Marketing

Consultant Fee & research cost.

Adds Preparation & Bringing it on air

20.0

Fee of Add Agency for Ad preparation.

Commercial making expenses.

Other expenses related to print & electronic Ads.

Promotional Activities 10.0 Expenses related

to preparation of event organizing.

Marketing Staff Remuneration

06.0 Marketing Staff

Salaries and Wages

Allowances for extra activities

Other administrative expenses

Total 38.0

Second Part of the Budget:

Amount in million rupees

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Year 1 Year 2 Year 3Particulars

Q1 Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1 Q2 Q3

Q4

Description

Marketing & Advertisement

10 10

5 5 5 3 3 3 5 2 2 2

Expenses related to the aggressive media campaign.

Selling Expenses

2.5 1 1 1 1 1 0.5

0.5

0.5 0.5 0.5

0.5

Expenses related to materialized the sales through providing different kind of incentives and promotional stuffs like company sign boards, company owned refrigerators, etc.

Promotional Activities

5 5 5 2 5 5 2 2 5 3 1 5Expenses related to effective promotional activities and event organizing.

Logistics & Distribution

10 5 5 5 10

5 3 2 10 5 3 2To carefully coordinate with the logistics to make sure the availability of beverages on time.

Total 27.5

21

16

13

21

14

8.5

7.5

20.5

10.5

6.5

9.5

Year wise Total 77.5 51.0 47.0

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CONTROLS

Implementation:

The overall marketing operations & activities have been divided in to three broader phases:

Phase I:The company will capture the fifty percent large urban areas within the six months of its formal launching of products.

Phase II:We will achieve hundred percent penetrations in to the urban areas’ markets within the one year.

Phase III:We will fully penetrate in to the market through covering all prominent rural and urban areas within the three years.

Sales Targets:

The sales targets will be developed according to the potential of the market. To achieve this we have segmented the market on the sales potential and they will be categories on the following basis and the respective targets will be allocated to the sales team on the basis of their respective locality:

Upper Class Localities (Higher Income Groups) Upper Middle Class Localities (Higher Middle Income

Groups) Middle Class Localities (Higher Lower / Middle Income

Groups) Upper Lower Class Localities (Upper Lower / Lower Middle

Income Groups) Lower Class Localities (Middle Lower / Lower Income

Groups)

Marketing Organization:

We have been organizing our marketing activities in to three broader categories, with an aim to create distinction from our existing competitors and restrict other producers of the beverages to enter into the same market. We have divided our marketing activities in to following three broader categories.

Marketing & Advertisement:

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Marketing department has been responsible to carry out all the marketing related activities of the ZamZam Refreshment beverages products. First and foremost, they will responsible to carry out a comprehensive research related to the target market to, provide the desired & required information to the board of directors to review and analyze the suitability of the investment.

Then they responsible to implement this marketing plan in a manner that all the predefined objectives of the plan will be achieved in an effective manner. They are responsible to develop ads for the products and get necessary approval from the top management before brining it o the media. After necessary approval they are responsible to communicate it through various means of communications to the target audience in order to achieve desired level of sales of beverages and to create a profitable relationship with its customer through effective customer services.

Marketing department is responsible to create synergy among the Marketing, Selling and Logistics & Distribution departments to ensure that the uninterrupted supply of the beverages will be available to the customers. They also responsible to seek continuous feedback from the individual and as well as the business customers to gauge the potential market growth and rectify the discrepancies if any.

Selling Activities:

The sales department is part and partial of the Marketing department, initially they are responsible to report to the marketing head about their selling activities. They are responsible to ensure that the orders from the retailers and whole sellers are received frequently and the supply of the goods will be reached to the them on time, without any hurdle or distrubance. To achieve this objective they have to fully coordinate with the logistics department and make sure that the desired information must reach to the logistics department on time. They responsible to achieve their predefined sales targets set by the top management with the help of the marketing department, in accordance with sales opportunities lies in the respective localities of the target market.

The marketing department is responsible to make sure that the market potential will be utilized fully and every individual of the sales team will be highly motivated to achieve their individual goals as well as the department’s goals and collectively the organizational goals.

Logistics & Distribution:

It is the prime responsibility of the logistics & distribution departments that all the sales order will be delivered on time at minimum cost. They

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continuously in a quest to capture the full market share through their effective and economical fleet operations of the logistics.

Initially they are directly responsible to the marketing department regarding their operational activities and have to work closely with the sales team. It is to be ensure by the logistics & distribution department that with the passage of time the cost of delivery of the beverages should be minimized but it must be ensure that they have to maintain same level of quality of services that company has promised to its customers.

Contingency Planning:

Difficulties & Risks: As prior mentioned that the already existing manufacturer and

distributors of the renowned cola brands has strong influence on market the huge resistance is expected from them.

The product will be unable to achieve the objectives in term of finance and the number of sales.

A change in political and economic condition of the country can affect the sales of the products.

Financial risk can be minimized through creating or developing a joint venture or including local investors in the project.

Worst Case Risks Include: Product will be unable to get the desired response from the

market. A negative marketing from the rivals can harm the product image.

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