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Rooh Afza

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					TABLE OF CONTENTS
SERIAL NO.
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16)

TOPICS
Executive summary. The organization and its mission. Current marketing situation. Market research. Environmental analysis. SWOT analysis. New product development steps. Objectives of SBU of Rooh Afza. Marketing strategy. Product. Pricing. Placing. Promotion. Action programs. Budgets. Controls.

EXECUTIVE SUMMARY
A one-year marketing plan (from June 1,2002 to May 31,2003) for ready to drink Rooh Afza has been mentioned in this report. The main objective of this marketing plan is to make the management realize the demand, strength, potential and impotence of Rooh Afza ready to drink packs in the market. For this purpose market research was done in Rawalpindi and Islamabad, over a sample of fifty people, using questionnaire method. Market research got favorable results so data was critically analyzed in order to make conclusions. After analyzing the microenvironment, macro environment, current marketing situation and SWOT analysis it has been concluded that it will be productive for the Hamdard Laboratories (WAQF) Pakistan to launch ready to drink Rooh Afza. Thus all steps of new product development were followed before commercialization. To implement this conclusion marketing strategy for ready to drink Rooh Afza has been mentioned in this report. The marketing strategy is specifying the target market, positioning, competition and product, pricing, placing, promotion strategies in order to use the resources in best possible way and achieve the objectives. After formulating the marketing strategy, action programs, budgets and then controls were decided and are mentioned in this report. Finally, it is to be mentioned that strengths of Hamdard Laboratories (WAQF) Pakistan and opportunities are encouraging the company to go for ready to drink Rooh Afza, that’s why the formulated one year marketing plan is very reliable. Details are present in the report, along with charts and other visuals.

THE ORGANIZATION
Hamdard 'the global house of herbal products' is a household name in Pakistan and is known worldwide having a very large product range. Hamdard is engaged in production of medicines under Greco-Arab System of Medicine. Herbal medicines are natural medicines, simple to use and have no adverse side effects. The great man HAKIM SAYEED established “Hamdard” in 1948.

MISSION STATEMENT
• To preserve and promote eastern system of medicine. • To establish the principles of pharmacy, its furtherance and standardization. • To teach and publicize the principles of health hygiene and medical sciences. • And through these serve the people selflessly. It is quite evident that the organization has actually implemented its mission statement in the business practices that it carries out. Also, the mission statement has been an important guideline for all the SBU’s.

SBU,s OF HAMDARD
Right now Hamdard has about 300 products. The products are produced in three different forms i.e. liquids, solids, and semi solids. The products range fulfills the health requirements from all age groups i.e. from infants to aged persons. Hamdard has a full range of medicines for the cure of various diseases. The different strategic business units of Hamdard are as follows: (1) Hamdard’s cosmetics. (2) Hamdard’s sharbat/drinks. (3) Hamdard’s herbal medicines.

THE BCG GROWTH SHARE MATRIX
The BCG growth share matrix is as follows:

High market growth rate

Low market growth rate

(stars) (?’s) Joshina and Amline hair oil other and other medicines medicines and cosmetics (dogs) (cash cows) Rooh Afzah Peelo and toothpaste different and other medicines cosmetics
High market share Low market share

The words other/different has been used in place of the names of other products because it’s impossible to explain the position of all 300 products. The revenues earned from cash cows and stars, like Rooh Afzah, Joshina and others are used for the betterment of dogs and ?’s like Peelo toothpaste, Amline hair oil and others.

CURRENT MARKETING SITUATION
REGARDING STRATEGIC BUSINESS UNIT OF ROOH AFZA The current marketing situation of one SBU of Hamdard i.e. Rooh Afza is described as follows:

THE TARGET MARKET
The target market of Rooh Afzah includes all the people who can afford it. Which includes children, youth and all aged people regardless of gender discrimination. The target market has been decided after market segmentation.

MARKET SEGMENTATION
The marketing plan recognizes the various segments of the market for Rooh Afza, instead of marketing a product in one way to everyone. The segmentation is based on various criteria such as those listed below. Demographics: This is the study of the distribution, density and vital statistics of a population, and includes such characteristics as
• • • • • • •

Sex = no gender discrimination, its for all. Age = all those who can drink it. Education = both educated an uneducated. Marital status = for the people of all marital statuses. Size of family unit = for all families. Total income of family unit= for all those who can afford it. Religion = for the people of all religion in targeted geographical areas.

Geographies: The geographic areas targeted by Rooh Afzah are Karachi, Lahore, Rawalpindi, Faisalabad, Haiderabad, Peshawar, Sakhar, Multan, Koita, Sargodha, Abottabad, Attock, D.G Khan and many other areas of the four provinces.

COMPETITION

The direct competitors of Rooh Afzah are as follows: (1) (2) (3) (4) (5) Jam-e-sherein. Taskeen-e-Rooh. Shezan squash. Tops squash. Mitchelles squash.

The nearest indirect competitors include: (1) Frost. (2) Nestle. (3) Tops. (4) Shezan. (5) Country. (6) Tang. (7) Coke drinks. (8) Other gas bottle drinks. (9) Other juices.

MARKET AND POSITIONING
The current market of sharbats is less saturated with only three brands of red sharbat. If we talk about ready to drink juices, the market is highly saturated with above ten competitors. The Rooh Afzah sharbat has been positioned in the market as Mashroob-e-Mashriq. Rooh Afzah is the market leader between its two direct competitors.

PERFORMANCE OF ROOH AFZAH SHARBAT IN THE MARKET
A pie chart, mentioned below, explains performance of Rooh Afza against its competitors in terms of market share. BRANDS Jam-e-Sherein Taskeen-e-Rooh MARKET SHARE 15% 2%

Rooh Afza Fruit Squashes The pie chart is shown below:

75% 8%

DISTRIBUTION CHANNEL
For Rooh Afzah sharbat company has adopted the customer marketing channel/indirect marketing channel. On demand in the market, sellers report to wholesellers, wholesellers report to the stockade dealers, dealers report to the zonal offices and zonal offices ask the company for the required amount of inventory of the product. MARKET>>>>>>>>>>SELLERS>>>>>>>>>>WHOLESELLERS>>>>>>>>>>STOCKADE DEALERS>>>>>>>>>>ZONAL OFFICES>>>>>>>>>>COMPANY.

MARKET RESEARCH
Before launching a new product, in the market, it is very important to know that whether people need that product or not. Further more, the company needs to estimate that whether people will welcome their product or not. Similar is the case with us. We also have tried to find out whether our product would be appreciated by people or not. The marketing research process comprised of four steps: 1) Defining the problem and research objectives. 2) Developing research plan. 3) Implementing the research plan. 4) Interpreting and reporting the findings

1)Defining the problem and Research objectives: Defining the problem and research objectives is often the hardest step in the research process. The manager may know that something is wrong, without knowing the specific causes. As we were to introduce an innovation in Rooh Afza. So our primary objective behind the market research was to describe things such as market potential and attitudes of customers towards the Rooh Afzah ready to drink packs.

2)Developing the research plan: -

The second step of marketing research process calls for determining the information needed, developing a plan for gathering its efficiently, and presenting the plan to marketing management. The plan outlines sources of existing data and spells out the specific research approaches, contact methods, sampling plans, instruments that researchers will use to gather new data.

.
Survey research is the approach best suited for gathering descriptive information. A company that wants to know about people’s knowledge, attitude, preferences or buying behavior can often find out by asking individuals directly. We made a number of surveys to offices, educational institutions and markets to know people’s response towards ready to drink Rooh Afzah. Approximately ( %) responses in Rawalpindi and ( %) responses in Islamabad were in our favor.

Research Approaches: -

Research Instruments: -

The instrument, which we used for our research, was questionnaire. We collected the primary data by distributing questionnaires. We distributed the questionnaires

among 100 people but because of very less cooperative public we could get back only 75 questionnaires so we decided to take the sample of 50 people. We have conducted our research in two cities, Islamabad and Rawalpindi. Majority of the people filled the questionnaire in favor of our product. The copy of the questionnaire is as:

“Bahria Institute of Management & Computer Sciences” Questionnaire: For research on “Rooh Afza”

We are business students of BAHRIA UNIVERSITY, doing a research on ROOHAFZA. You are requested to help us by filling this questionnaire. The questions are as follow: Name: . Occupation: . City of residence: . Education: . Rank/Position: .

Section no.1:
Q1, Please identify your age in the categories given below? A, (a) Below 15 years. (b) 15 to 24 years. (c) 25 to 34 years. (d) 35 to 44 years. (e) 45 to 54 years. (f) 55 and above. Q2, kindly indicate your monthly income (family income, if student) in the categories given below? A, (a) Under 2000 Rs. (b) 2000 to 4,999 Rs. (c) 5000 to 9,999 Rs. (d) 10,000 to 24,999 Rs. (e) 25,000 to 29,999 Rs.

(f) 30,000 to 49,999 Rs. (g) Above 50,000 Rs. Q3, How many people are there in your family? A, (a) Below 5. (b) 5 to 10. (c) 10 to 15. (d) Above 15. Q4, Which brand of drinks/juices do you consume more frequently? A, (a) Frost. (b) Nestle. (c) Tops. (d) Shezan. (e) Country. (f) Tang. (g) Rooh Afza. (h) Jam-e-sherien. (f) If any other, specify . Q5, Which factors affect your choice of drinks? A, Advertisements. (a) Brand(Image). (b) Other’s opinions. (c) Family preferences. (d) Price. (e) Taste. (f) Quality. (g) Packaging. (h) If any other, specify

.

Section no.2:

Q6, Which drink quenches the thirst in your view/drink you prefer to get rid of thirst? A, (a) Rooh Afza. (b) Jam-e-sherien. (c) Fruit juices. (d) If any other, specify .

Q1, Which brand name comes to your mind after listening these words, “ “? A, Q2, Do you drink Rooh Afza? A, (a) Yes. (b) No. Q3, How do you find Rooh Afza? A, (a) Good. (b) Better. (c) Best. (d) Just right. Q4, To which extend you are satisfied with Rooh Afza? A, (a) Very much satisfied. (b) Just satisfied. (c) Not much satisfied. (d) Dissatisfied. Q5, What type of alterations do you want in Rooh Afza? A, (a) Packaging change. (b) Flavor change. (c) Colour change. (d) No change. (e) If any other, specify . Q6, Do you think Roh Afza is good drink, towards health, as compared to other drinks? A, (a) Yes. (b) No. (c) No comments.

Section no.3:
Q1, What is the basic thing that you like about Rooh Afza? A, (a) Taste. (b) Colour. (c) Contents.

(d) After effects. (e) Everything. (f) Nothing. Q2, If Rooh Afzah comes in ready to drink convenience packs what would be your response? A, (a) Buy it. (b) Don’t buy it.

Q3, Which prices do you suggest for the Rooh Afza ready to drink packs? A, (a) For 250ml pack Rs. (b) For 500ml pack Rs. (c) For 1liter pack Rs. Q4, What sort of packaging do you suggest for Rooh Afza ready to drink packs? A, (a) Tetrapack. (b) Glass bottle. (c) Plastic pack. (d) If any other, specify . Q5, Any suggestions for Rooh Afza ready to drink packs? A,

Presenting the Research Plan: Before starting the research a proposal was presented to the teacher. According to research plan we had to distribute the questionnaires among 50 people. We concluded to conduct our research in two cities, Islamabad and Rawalpindi. The sampling was done as follows:

The end

3)Implementing the Research Plan: -

Practical aspect of research starts here We distributed the questionnaires among 50 people in all Rawalpindi and Islamabad.:

4)Interpreting and Reporting the Findings: The findings of research are as follows:

Sample Size

=

50

RESEARCH ANALYSIS
Q1: - About the age groups: Age groups 5-----10 11----20 21-----40 41-----50 51-----60 Response 0% 14% 60% 14% 12%

Q2: - About the incomes: Income 2000-----5000 5000-----10000 10000-----20000 20000-----30000 30000-----40000 40000-----50000 50000 + Did not mention Response 18% 16% 18% 16% 12% 0% 16% 4%

Q3: - About the family size: Family size Below 5 5-----10 10----15 Above 15 Response 30% 62% 4% 4%

Q4: - About the brands of ready drinks mostly consumed: -

Drinks Tops Frost Nestle Shezan Country Tang Pepsi and coke Other gas bottles Other juices

Response 4% 14% 20% 4% 2% 24% 20% 8% 4%

Q5: - Factors affecting the choice of Factors Quality Advertisements Brand image Family preferences Price Taste Packaging

drink Results 58% 12% 20% 12% 20% 66% 2%

Q6: - Which drink quenches thirst: Options Fruit juices Rooh Afza Jam-e-sherien Others

Response 37% 39% 15% 9%

Section 2
Q1: - Awareness of people about Rooh Afza

Option Rooh Afza

Result 100%

Q2: - People drink Rooh Afza: Options Yes No Q3: - How did people find it : Options Good Better Best Just right

Response 82% 18%

Results 41% 18% 14% 27%

Q4: - What extend people are satisfied with Rooh Afza: Options Results Very much satisfied 28% Just satisfied 58% Not much satisfied 6% Dissatisfied 4% Q5: - Alterations people want in Rooh Afza: Options Results Packaging Change 62% Flavor change 16% Color change 14% No change 8% Q6: - Response of people about Rooh Afza that whether its good for health or not: Options Response Yes 54% No 16%

No comments

30%

Section 3: Q1: - The basic thing that people like about Rooh afza: Options Results Taste 56% Color 14% Contents 10% After effects 16% Everything 4% Nothing 0%

Q2: - Whether people would buy ready to drink Rooh Afza or not: Options Result Buy it 78% Don’t buy it 22%

Q3: - What price do people suggest for 250ml of ready to drink Rooh Afza:Options Results 5Rs. 20% 8Rs. 64% 10Rs. 16%

Q4: - what packagings do people want for ready to drink Rooh Afza: Options Results Tetra pack 50% Glass bottle 20% Plastic pack 30% So our main finding was that people do want to buy this type of product development and this was clear from the response of people regarding the question that whether people would buy this new product. % Ages of favorable and unfavorable forms: Options Results

Favorable forms Unfavorable forms

74% 26%

So the analysis suggests that company should go for ready to drink Rooh Afza.

ENVIRONMENTAL ANALYSIS
The environmental factors affecting Rooh Afzah can be divided into two main categories: (1) Microenvironment. (2) Macroenvironment.

MICROENVIRONMENT
Microenvironment involves following factors: (1) The company: Activities of different departments in the company can affect the company. (2) Suppliers: The activities, efficiency of suppliers can affect the company. (3) Marketing intermediaries: The actions of marketing intermediaries can affect the company. (4) Customers: Ever changing customer preferences and interests have an impact on company’s plans. (5) Competitors: Competitor’s strategies can affect the company’s plans. The major competitors regarding Rooh Afza Sharbat are: The nearest direct competitors of Rooh Afza are following ones: (1) Fruit Squashes. (2) Jam-e-sherien. (3) Taskeen-e-rooh. The nearest indirect competitors of Rooh Afza are following ones: (1) Frost. (2) Nestle. (3) Tops. (4) Shezan.

(5) (6) (7)

Tang. Coke bottles. Soda bottles.

The major competitors regarding ready to drink Rooh Afza are: The nearest direct competitors of Rooh Afza ready to drink packs will be the following ones: (8) Frost. (9) Nestle. (10) Tops. (11) Shezan. (12) Tang. The nearest indirect competitors of Rooh Afza ready to drink packs will be the following ones: (4) Coke bottles. (5) Soda bottles. (6) Squashes. (7) Jam-e-sherien. (8) Taskeen-e-rooh. (9) Other soft drinks. (6) Publics: All types of financial, government, private, internal and other publics do affect the company.

MACROENVIRONMENT
The macroenvironment involves following factors: (1) Demographic environment: Demographic changes affect the company’s market segmentation policies. Increasing diversity sometimes creates problem for the company. (2) Economic environment: The economic environment affects the expenditures of both, producers and consumers. (3) Natural environment: The natural environment has a direct impact on the company because company requires herbs and fruits for manufacturing different products. (4) Technological environment:

With the passage of time, company needs to adopt new techno machines and equipments for providing better products. (5) Political environment: Political factors have no direct impact on the company. (6) Cultural environment: Cultural factors do affect the company’s sales over time.

SWOT ANALYSIS
The SWOT analysis has been processed as follows:

STRENGTHS
The strengths of Hamdard are as follows: (1) The great serving period of about 53 years. (2) The reputation earned by Hamdard over the time. (3) The loyalty that people have towards Hamdard and towards the Name of Hakeem Saeed. (4) The honest and determined suppliers, employees and distributors. (5) A large brand portfolio of about 300 products. (6) The cash cow and star products. (7) The determined marketing and sales staff. (8) A large bank balance available.

WEAKNESSES
The weaknesses of Hamdard are very less because of it’s being an excellent company but some weaknesses are as follows: (1) The weak products marked as “dogs”. (2) The death of Hakeem Saeed disturbed the whole company at a time but with the passage of time the company has readjusted itself. (3) Company’s inability to maintain sales varying with seasons e.g. low sale of Rooh Afzah in winter. (4) Handard’s inability to get rid of Rooh Afza shortages in summer.

OPPORTUNITIES

For the one SBU of Hamdard i.e. Rooh Afzah, following opportunities has been identified: (1) Research has revealed that there is a large demand for ready to drink Rooh Afza packs in Islamabad and Rawalpindi. (2) Ample resources are available for the production and management of Rooh Afza ready to drink packs. (3) Hamdard has the ability to use its present distribution channel for ready to drink Rooh Afza also. (4) The estimated sales are fulfilling the cost of ready to drink Rooh Afza packs.

THREATS
The main (1) (2) (3) (4) (5) threats for this SBU of Hamdard i.e. Rooh Afza are as follows: Seasonal variations in sales. Competitors. Variations in sales due to changes in climate i.e. sale decreases in rainy days. Ever changing external environment. Ever changing customer preferences like, now customers ask for convenience. (This was the one reason why Rooh Afzah sharbat has been introduced in plastic bottles).

ANALYSIS
The SWOT analysis indicates that company can make good use of its strengths to avail the opportunities and to get rid of threats through some better arrangements. The opportunities and strengths allow the company to manufacture Rooh Afza ready to drink packs.

NEW PRODUCT DEVELOPMENT
After the research and careful analysis all the steps necessary for new product development were executed carefully i.e.: (1) (2) (3) (4) (5) (6) (7) (8) Idea generation (from the research). Idea screening. Concept development. Concept testing. Marketing strategy development. Business analysis. Product development. Test marketing.

The results of all the steps went in favor of the company.

INTRODUCTION OF ROOH AFZA
Rooh Afza syrup/sharbat is one of the products of Hamdard. Rooh Afza is the one that enhances the spirit and uplifts the soul. It is legendary syrup of the East. Rooh Afza is a premier natural cold drink, proved beyond ambiguity that it is more than a cold drink. It is a blend of pure crystalline sugar, distilled extracts of citrus flowers, aqua’s of fruits, vegetables and cooling herbal ingredients processed to impart the stimulating taste and unparallel quality. Rooh Afza activates a sensation of satisfaction and tranquility that cannot be gainsaid. It makes a delicious milk shake and its other intake, whether added to water, dessert like custard, ice cream, Falooda, Feerni, always offers a pleasant experience. During rainy seasons, few drops of fresh lemon added to a glass of Rooh Afza not only satisfies the taste but also keeps you fresh despite the moist season. To those who love tangy taste they may add fresh lemon juice in every glass of Rooh Afza. Rooh Afza is a recognized drink of the east and has surpassed the total consumption of such other syrups in Pakistan and abroad. Rooh Afza enjoys the 90 years of its happy existence and will continue to lead as a natural cold drink in the next century too. Realizing this importance of Rooh Afza and demand for ready to drink Rooh Afza packs company decided to introduce it in ready to drink packs.

OBJECTIVES OF STRATEGIC BUSINESS UNIT OF ROOH AFZAH
The objectives of strategic business unit of Rooh Afzah are as follows: (1) (2) (3) To maintain maximum market share of Rooh Afza Sharbat. To earn equity for ready to drink Rooh Afza. To attain maximum estimated sales of ready to drink Rooh Afza.

The key factors that will take part in attainment of these goals are product, pricing, placing and promotion strategies. The sales revenues and retained earnings will be used to aid the strategies. The issues that can hinder the achievement of these objectives are micro and macro environmental factors. Especially the success of Rooh Afzah ready to drink packs is dependent upon customer’s preference and marketing efforts of the company. The other hindrances may be the threats and weaknesses of the company.

MARKETING STRATEGY FOR ROOH AFZA READY TO DRINK PACKS
Outlines the broad marketing logic by which the SBU of Rooh Afza hopes to achieve its marketing objectives and the specifics of target markets, positioning, and marketing expenditure levels. Moreover it outlines specific strategies for product, pricing, placing and promotion. TARGET MARKET OF ROOH AFZA READY TO DRINK PACKS The target market, of Rooh Afza ready to drink packs, includes all the consumers who can afford it. Which includes children, youth and all aged people regardless of gender discrimination. The target market has been decided after market segmentation. For the first year only two cities Islamabad and Rawalpindi will be targeted because of demand in these cities only.

MARKET SEGMENTATION
The marketing plan recognizes the various segments of the market for Rooh Afza ready to drink packs, instead of marketing a product in one way to everyone. The segmentation is based on various criteria such as those listed below. Demographics: This is the study of the distribution, density and vital statistics of a population, and includes such characteristics as
• • • • • • •

Sex = no gender discrimination, its for all. Age = all those who can drink it. Education = both educated an uneducated. Marital status = for the people of all marital statuses. Size of family unit = for all families. Total income of family unit= for all those who can afford it. Religion = for the people of all religion in targeted geographical areas.

Geographic:

The geographic areas that will be targeted include Islamabad and Rawalpindi.

COMPETITION
The nearest direct competitors of Rooh Afza ready to drink packs will be the following ones: (13) Frost. (14) Nestle. (15) Tops. (16) Shezan. (17) Tang. (18) Pepsi and coke. (19) Other gas drinks. The nearest indirect competitors of Rooh Afza ready to drink packs will be the following ones: (10) Jam-e-sherien. (11) Taskeen-e-rooh. (12) Other fruit Squashes.

THE MARKET
When we talk about ready to drink juices, the market is highly saturated with above ten competitors. The estimated market shares on the basis of market research are shown below: Drinks Tops Frost Nestle Shezan Country Tang Pepsi and coke Other gas bottles Other juices The pie chart will be as follows: Response 4% 14% 20% 4% 2% 24% 20% 8% 4%

COMPETITIVE POSITIONING COMMUNICAZTION

ADVANTAGE, AND ITS

As the ready to drink Rooh Afza is in convenience pack, customers can have it at any time they want. So it will be positioned in the market on the basis of its attributes. The phrases/words will be as follows: READY TO DRINK ROOH AFZA AS YOU WANT WHEN YOU WANT As the research has proved that Rooh Afzah is a real time thirst quencher therefore the positioning will be done on the basis of this competitive advantage also. The phrase for this will be as follows: QUENCHING THE THIRST The above positioning will be communicated to the customers through (1) Product packaging/display. (2) Advertisements. (3) Banners. (4) Billboards. (5) Ads in magazines, newspapers, radio and other media.

PRODUCT
The product is ready to drink Rooh Afza by Hamdard laboratories (WAQF) Pakistan. It’s a consumer drink. A refreshing and delicious drink good for sunstroke, quenching the thirst, palpitation, nausea and other summer complains. An ideal “PICK ME UP” summer drink.

PRODUCT MIX STRATEGY
Introducing ready to drink Rooh Afza is a Brand extension strategy. It will be introduced in 250ml packs and if you ask for growth strategy it is Product development.

INGREDIANTS
The contents of Rooh Afza are as follows: (1) Refined sugar. (2) Distilled aqua extracts of fruits. (3) Herbs. (4) Keora. (5) Citrus flowers. (6) Rose. (7) Red food Colour. (8) Preservatives.

PRODUCT LEVELS
(1) (2) CORE PRODUCT: A drink that quenches the thirst. ACTUAL PRODUCT: Ready to drink Rooh Afzah sharbat.

PRODUCT ATTRIBUTES
A refreshing and delicious drink good for sunstroke, quenching the thirst, palpitation, nausea and other summer complains. Because of it’s being in convenient tetra packs customers now can have Rooh Afza whenever they want and wherever they want.

PRODUCT BRANDING
Rooh Afza is a registered trademark of Hamdard laboratories (WAQF) Pakistan. Brand extension strategy has been practiced by choosing the existing brand name “Rooh Afza” for the ready to drink sharbat also.

PRODUCT PACKAGING
As people are becoming more and more health conscious day by day. So ready to drink Rooh Afza will be packed in 250ml tetra packs. Although tetra packs will be costly for the firm but customer satisfaction and quality product transfer is a duty of Hamdard laboratories (WAQF) Pakistan.

PRODUCT LABELLING
The labeling of ready to drink Rooh Afza will be highlighting the positioning i.e.

AS YOU WANT WHEN YOU WANT ROOH AFZA DRINK Moreover the label has been shown below:

PRICING FACTORS CONSIDERED
The price of ready to drink Rooh Afza has been decided while taking into consideration, the following factors: (1) Marketing objective i.e. market share leadership through price penetration (lower price for getting maximum market share). (2) Marketing mix strategies. (3) Costs. (4) Other organizational considerations. (5) The market and demand. (6) Consumer perception of price and value. (7) Competitor’s prices. (8) Other external environmental factors.

PRICING APPROACH
While pricing value based pricing approach was considered. In the questionnaires we have already asked the customers to give the suggestions about the price for ready to drink Rooh Afza 250ml packs. And people have coded their suggested prices.

DECIDED PRICE
After considering costs of ready to drink Rooh Afza packs, competitor prices, marketing objectives, consumer perception of price and value and other factors the price that was finally decided for ready to drink Rooh Afza is Rs. 8/-. The price of ready to drink Rooh Afza and the prices of competitors are shown below for the clear analysis.

PRICE TABLE Direct Indirect competitors
Frost Nestle Tops Shezan County Pepsi Team Marinda Coca Cola Sprite 7-up Team

Prices (Rs.)

competitors

10 15 10 10 10 10 10 10 10 10 10 10

PRICE ADJUSTMENTS
Following price adjustments are expected to be made: To hospitals and other welfare organizations we may give some allowances, otherwise no price adjustment will be practiced.

PLACING/DISTRIBUTION
For ready to drink Rooh Afza Company will go for vertical marketing system.

THE CHANNEL LEVELS
The distribution channel will comprise following levels: (1) Market/customers. (2) Local sellers. (3) Whole sellers. (4) Stockade dealers. (5) Zonal offices. (6) Company.

THE DISTRIBUTION STRATEGY
For distribution the company will go for pull strategy. The demand will be created in the market through effective advertising and promotion, customers will ask local sellers for the product, local sellers will demand the product from the wholesellers, wholesellers will demand the product from the stockade dealers, dealers will demand the product from the zonal offices and zonal offices from the company, finally.

THE CHANNEL DIAGRAM
The channel diagram is shown below: MARKET>>>>>>>>>>SELLERS>>>>>>>>>>WHOLESELLERS>>>>>>>>>>STOCKADE DEALERS>>>>>>>>>>ZONAL OFFICES>>>>>>>>>>COMPANY.

DISTRIBUTION AREAS
For the first year the ready to drink Rooh Afza will be distributed in two cites only i.e. RawalPindi and Islamabad.

LOGISTICS
To deliver the right quality, of Rooh Afza drink, to the customers at the right time, following arrangements will be made: (1) Special godams for stock. (2) Special trucks for transportation of drinks from company to the zonal offices.

(3) (4)

(5)

Vertical marketing system with pull strategy, in order to match the product with customer needs and demands. The extensive production of Rooh Afza will commence from the month of February and will continue till the month of September. From October to January, production will be done only on sudden demands if necessary so company will hold enough stock for these months i.e. October to January. FIFO (first in, first out) distribution will be practiced in godams, in order to ensure that customers get the product enough before the expiry date.

PROMOTION

Before discussing the promotion mix for ready to drink Rooh Afza, lets have an eye at the big idea, communication objectives, the promotional appeal and the communication media.

THE BIG IDEA
The big idea for ready to drink Rooh Afza is:

AS YOU WANT
WHEN YOU WANT -ROOH AFZA-

COMMUNICATION OBJECTIVES
The communication objectives are as follows: (1) Increasing customer awareness of the product. (2) Increasing customer knowledge about the product. (3) Increasing customer liking for the product.

PROMOTIONAL APPEAL
For ready to drink Rooh Afza company will go for rational appeal by highlighting two important product benefits, which are: (1) It quenches the thirst. (2) You can have it whenever you want because it’s ready to drink.

COMMUNIACTION MEDIA AND SOURCE
The company will use non-personal communication media and the source will be common people.

PROMOTION MIX
The promotion mix for the ready to drink Rooh Afza will consist of following main promotion sources: (1) Advertising. (2) Sales promotion. (3) Personal selling. (4) Public relations.

ADVERTISING

The company will go for both below the line and above the line advertising. The components of both will be as follows: ABOVE THE LINE: (1) Radio (FM 100 & 101). (Ads at afternoon). (2) Television (PTV1 and PTV world). (Ads between the dramas by sponsoring for dramas). (3) Newspapers (Jang, Nawa-e-Waqt, Dawn, News). (4) Magazines (Akhbar-e-jahan) BELOW THE LINE: (1) Billboards (one in Pepsi jungle kingdom (RWP), one in Ayub market, one on Muree road RawalPindi, one in F-10 markaz, one in saddar (RWP) and one in Karachi Company near VARAN BUS STOP). So there will be total of six billboards. (2) Banners will be made for Muree road, saddar, and Karachi Company. (3) Flyers will be made for saddar, Karachi Company and Muree road. (4) Pop advertising will be practiced more strictly during the first year. (5) Transit advertising will be practiced by colorful advertisement of Rooh Afza painted on the VARAN BUS NO. (4) which travels between RawalPindi and Islamabad.

SALES PROMOTION
Buy four get one free offer will be given to the customers for one month, after the six months of launching the ready to drink Rooh Afza.

PERSONAL SELLING
During the first four months after launch, personal selling will be practiced in different areas of both RawalPindi and Islamabad.

PUBLIC RELATIONS
For maintaining good public relations special allowances and discounts will be given to hospitals and other social and welfare organizations.

EVENT MARKETING
Company has planned to sponsor special programs on EIDs, INDEPENDENCE DAY and WORLD CUP FOOTBALL. (And concerts if necessary).

PROMOTION MIX BUDGET

For the first year, 45% of the net profit has been allocated for the promotion mix because in order to earn a position in the prospect’s mind company need to incur high promotion costs. This 45% will be reduced to 30% or less in the proceeding years. Of the total 45% decided for promotion mix, the share of each component of promotion mix is shown in the graph given below: (1) (2) (3) (4) (5) Advertising = 60%. Sales promotion = 10%. Personal selling = 10%. Public relations = 10%. Event marketing = 10%.

ACTION PROGRAM
One-year action program ranging June 1, 2002 to May 31, 2003 for the strategic business unit of Rooh Afza drink has been explained as follows: The objectives of strategic business unit of Rooh Afza drink are: (4) To earn equity for Rooh Afza ready to drink packs. (5) To attain maximum estimated sales of Rooh Afza ready to drink packs.

(6) To maintain maximum market share of Rooh Afza sharbat. These objectives will be divided into sub-objectives at for departments in order to ease their achievement. (1) Production department will control costs in accordance with estimated budgets in addition to the duty of producing required units of product. (2) Marketing department will look after the implementation and control of product, pricing, promotion and distribution strategies and budgets.

(3)

Administration will make record of all qualitative and quantitative records. Finance department will be concerned with optimal financing of the project.

(4)

(5)

R & D department will have an eye over the ever-changing marketing demands and needs. For controls also, research and development department will play its role. Zonal office will have a check over the stockade dealers to ensure proper logistics.

(6)

(7) (8) (9)

The company will accommodate the loss for the first two months. After every month performance will be reviewed. Necessary actions will be taken to reduce fluctuations between actual and estimated figures at each department level.

BUDGETS READY TO DRINK ROOH AFZA:

The est timated sales, expens and inco ses ome budge for read to drink Rooh Afza has et dy a been sh hown below in the form of graph for the p h, period of J June 1, 200 to May 02 13,2002 2.

70 60 50 40 30 20 10 0 -10 JU UN AUG OCT DEC D FEB B APR
SA ALES COSTS IN NCOME

BUDGET ANALYS T SIS: In the b beginning costs will be more tha sales be c an ecause prod duct will be at e introduc ction stage of its life cycle but with the p e e t passage of time sales will increa s ase and cost will decr ts rease thus increasing the net in g ncome as shown in the graph. Sa ales will incr rease from March to August and decrease from Sep d e ptember to February. In o . the grap the figu ph ures on Y-a axis are jus supposit st tory create for the purpose of ed f showing budget picture, they neither s g y stand for % %ages nor for actual numbers.

CONTROLS
The controls that will be used, to monitor progress and allow higher management to review implementation results, are as follows: (1) Checking the net income at different stages. (2) Comparison of fluctuations between actual and estimated costs and taking necessary actions to avoid variances. (3) Getting customer opinions through market research in order to check the effectiveness of marketing strategies and altering strategies in case of negative response. (4) Evaluating the role of each department in achieving the objectives of strategic business unit of Rooh Afza. (5) Holding the department managers, responsible for taking corrective actions in order to ensure, the achievement of marketing objectives.

BY: Farhan Yaqoub Kashif Ghafoor MBA-1(A) Eve. BAHRIA UNIVERSITY


				
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