Marketing Plan – Lite Juice Essay

PREFACE

It is a great pleasure for us to present this report as requirement for the completion of MARKETING course. The report is for the launch of a new product “ ”.  is a symbol of originality and freshness a juice which satisfies the need of today’s generation.  will be a name that will guarantee  quality and will  be source to  rejuvenate  everyone that adopts it.

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At present, there are numerous products to satisfy the needs of health conscious people around us but unfortunately no one really actually caters people suffering from diabetes. In real life, we usually have observed the reserve or cautious behavior of a diabetic person while something sweet is served. Either in house as a family member or as guest somewhere they are reluctant to join others when dessert comes. We after analyzing the feeling of isolation undergone by diabetic people came to the idea of introducing a sugar free mix juice. Which will not only be helpful in providing full nutritional values but will also eliminate the urge for sweet.

The need for Diabetic people was identified by our group and the deprived feelings of these people inspired us to produce a SUGAR FREE MIX JUICE “ ”,is not only for these people who are forced to look for alternatives but is also for those who are diet conscious.

Our  will not only eliminate the feeling of isolation among the diabetic but will also provide added healthiness and sparkle to their lives.

However how well the people will receive our product, still remains a question. Until we get a proper feed back from ultimate consumers it is inscrutability that we face at the moment.

The Group.

LETTER OF ACKNOWLEDGEMENT

We would like to take this opportunity to extend our thanks to; Dr..Mohammad Afzal Nobahar ,Secretary General Diabetic Association of Pakistan & Ex. Director General Health of Pakistan for providing us data regarding diabetic patients in Pakistan,

We also thank Al-Mustafa Diabetics Centre, Gulshan Iqbal and Mr.Raza, representative of Lilly Pharmaceutical Co. of Pakistan, for providing us opportunities to interview diabetics’ person, which proved to be the basis of our research.

In last we would like to thank to our teacher XXXX, we feel that without his guidance it was not possible for us to produce this report and launch .

The Group.

Table of Contents

PREFACE

LETTER OF ACKNOWLEDGEMENT

EXECUTIVE SUMMARY

CURRENT MARKET SITUATION

Target Markets & consumer need.

Market Positioning:

Product Review

Review of Competition

SWOT ANALYSIS

Strengths

Weaknesses

Opportunities

Threats

OBJECTIVES AND ISSUES

Objectives

Issues

MARKETING STRATEGIES

Targeting and Positioning Strategies

Marketing Mix

PRODUCT

PRICE

DISTRIBUTION

            PROMOTION

Advertising Budget

Other promotional Activities

Public Relations

Planning process

Short-term and long-term planning

Strategies

Pricing strategy

Cost based pricing strategy

Other Strategies

BREAKEVEN ANALYSIS

PRICING STRATEGY

BUDGETING FOR 2008

ACTION PLAN

Conclusion

Bibliography

EXECUTIVE SUMMARY

In our market segment, there is a wide range of different types of Table serving SYRUPS (Juices). These juices are served in almost every house on different occasion to the guests. The serving of the juices to guests is part of our culture and in addition to being economical too, as compared to fresh fruit juices and soft drinks.

Many companies have giant position with huge market shares and wide product mixes for example Hamdarad (Waqaf) Pakistan, Coke, Pepsi, Qershi, Shezan, Nestle, Quice and some other local juice companies.

There is a substantial demand for such types of juices and the demand is increasing day by day due to change in climate, which is getting hot for a longer duration of the year, Economical Factors, Health awareness and due to awareness of the people.

People especially in big cities adopt various ways to protect themselves from sunstroke and hot climate. This includes drinking of cold water, juices, squashes, ice creams or soft drinks and lassi etc.

 Management is profit oriented and believes on long term planning, in terms of new products, future’s market, growth, and we will try to stress wants of buyer.

After researching the market, regarding the predilection predisposition of the people towards table serving, we decided to launch a new range of SUGAR FREE MIX JUICES  .We will capture the market of those consumers who are overlooked by these giants or competitors who are the major market capturers.

Firstly, we will launch  in Karachi Market, because we are new in market and have limited resources to start with.

CURRENT MARKET SITUATION

Target Markets & consumer need:  Our targeted market initially is Karachi. In Karachi, Diabetic ailment is on the rise at present it is 10 to 12% of total Karachi population.     is of great attraction for the Diabetic and weight conscious people. They need something to refresh them with an added feature of being sugar free and healthy.

Market Positioning: The pure and natural ingredients present in our product will able us to gain position in our market as at present there are numerous Diet colas and sweet juices in the market but no Diet juices are available for Weight conscious and diabetic people.

Product Review: The need for Diabetic people was identified by our group and the deprived feelings of these people inspired us to produce a SUGAR FREE MIX JUICE “ ”,is not only for these people who are forced to look for alternatives but is also for those who are diet conscious.

Our  will not only eliminate the feeling of isolation among the diabetic but will also provide added healthiness and sparkle to their lives.

 is a product with reasonable price and quality of the product will be controlled, because such types of products are associated with low price but high involvement.

Review of Competition: In Juice industry we are confronted by giants like Nestle and Hamdard, and soft drink companies like Pepsi and Coke, because of their existing strength and brand loyalty in the market we will face difficulties in capturing mind and heart share of our target market. The soft drink companies already have their diet products in the market therefore we will face the following threats in our journey:

i)                    Brand competition.

ii)                  Substitute Products.

iii)                Price Competition.

SWOT ANALYSIS

a)          Strengths:

Ø   We have two market segments:

                                                              i.      For diabetic patients.

                                                            ii.      Weight conscious people.

Ø   We have good quality product with reasonable price.

Ø   Unbreakable packaging (tetra).

b)           Weaknesses:

Ø    is completely new product and our company is also new.

Ø   Most employees are new and less experienced.

Ø   Limited budget.

c)           Opportunities:

Ø   Raw material is easily available.

Ø   Through international media people are well aware about these types of products.

d)          Threats:

Ø   Giant competitors

Ø   Most of the customers avoid using new products.

OBJECTIVES AND ISSUES

Objectives:

 To be able to:

Ø  Next year, we will introduce  in other big cities.

Ø  To develop a substantial Market Share.

Ø  To have a stimulating Advertisement campaign.

Issues:

Ø  Unawareness of the need for such a product.

Ø  In Juice industry giants like Hamdard confront us, and soft drink companies like Pepsi and Coke, because of their existing strength in the market people have strong brand loyalty.

MARKETING STRATEGIES

Targeting and Positioning Strategies:
As we are targeting the market of people suffering from Diabetes and catering those who are Weight conscious, therefore we are aiming at Single segment concentration.

We are focusing on Weight conscious and diabetic people therefore; we have positioned our product as Sugar Free Mix Juice with natural ingredients.

Marketing Mix:

a)       PRODUCT

Ø  New Sugar Free Juice

Ø  Convenient packaging

Ø   250 ml tetra pack

Ø  Ingredients:

                               I.      Fresh fruit juices (sugar extracted)

                            II.      Aqua

                         III.      Vegetables (carrot, lemon, turnip etc.)

Ø  Different flavors

Ø  Nutritional Value: energy…20 kcal, protein…1.0g,fat…traces, carbohydrates…1.0g

b)      PRICE

Ø  When analyzing market situation we searched about the prices of our competitors and we found that the minimum price of any Juice is not less than Rs: 12/-. Drinks at the lower end of price range are usually artificial juices and are not associated with quality natural juices, therefore, we decided to fix the price of  at consumer attraction level of Rs: 15/- per pack.

c)       DISTRIBUTION

Ø  During a meeting with distributors we examined their distribution channels, we created our new distribution channel as under:

(Belonging to KARACHI REGION only for starters, will spread out gradually.)

Locations:

The product will be made available in all leading stores, Health care centers, and shell select, which will be approximately 20 in number.

d)      PROMOTION:

Ø  Advertisements on posters, and other activities.

Ø  We start with an advertisement on newspapers only stating our slogan “Lite is Life” for at least 3 days.

Ø  Advertising Budget

 is new for consumer market, therefore we need advertising  campaign  in order to built  brand  awareness and getting market share . We have allocated 2,04,000 to our promotional activities.

Different flavors make the consumer’s brand loyal and lure their heart. The above slogan gives the meaning that our  is not only Juice, it contains, some herbal Essence for health and freshness, which are helpful in controlling the sugar level.

Other promotional Activities:

Ø  By Hand bill:

We arrange to distribute handbills to people giving brief definition of our Products and its benefits and attributes and differentiate from existing  available in the market.

Public Relations:

For succession of every product, it is necessary to leave a good image in the mind of consumer. It provides a long term benefits if kept in constant Process. From this way, people are informed by all about the . Though features and column written by some authenticated writer, which is also related with same field, for this purpose, we will publish Interviews of few doctors’ field experts.

PLANNING PROCESS:

The marketing department’s manager is responsible fir preparing its own plans of action to carry out their tasks in the most efficient manner. These plans of action can also be termed as tactical plans as they are designed to help execute major strategic plans along with helping the organization to achieve its overall goals.

SHORT-TERM AND LONG-TERM PLANNING:

The manager undertakes both short-term planning as well as long-term planning. The company stresses on the departments to lay greater emphasis on short-term goals so that the company sees at least the short-term results of each department and, therefore, the progress of the departments.

While preparing its plans, the marketing department takes into consideration the resources, both capital and human, available to the department and the budget that is available to the department for each of the products. The manager also plans for the existing product line as well as the new products that are recently launched in the market. Lastly, the manager also plans for the targeted volume of each product.

After the plan has been devised taking into account all the above factors, the plan is sent to the Central Planning Department which is centralized and comes under the Finance Department. The Central Planning Department is a group of planning specialists who then prepares the overall future plan for the company and submits it to the Finance Department. A three year plan is prepared for every company of the Group which is then approved by the Board of Directors. This plan is reviewed and updated every six months, At the same time, monthly meetings are held in which all the heads of various departments and the Board of Directors get together to review budget vs variances, profit and loss accounts, cash flows, inventory level, etc. of each department and then the marketing department, for example, will have to come up with a new plan to overcame the shortcomings as pointed out by the Board of Directors.

I.       STRATEGIES:

Strategy formulation is an important part of planning which is also undertaken by the department. There are various strategies and methods used by the marketing department to undertake their plans.

PRICING STRATEGY:

One of the strategies that it uses is the Pricing Strategy. They use the SN which is the Specific Price Index to carry out the price movement plan of their various products in the market. In this strategy, they look at the current prices in the market and then plan accordingly and then project the new prices which will prove to be more profitable than the old prices.

COST BASED PRICING STRATEGY:

The other strategy used by the department is Cost Based Pricing Strategy. The department sets the products prices by looking at the components that make up their price, that is, its imagery, cost and profit. The department always tries to set the price which is lower than the competitors and brings in positive cash flow. So, it tries to produce the products at the lowest possible cost by investing more money into R&D so that it could increase its profit margin further.

OTHER STRATEGIES:

Other strategies used are market research which is conducted on a small basis but is very important for the Marketing Department. And as their focus is on housewives, the carry out home surveys and interviews with their customers which adds a personal touch and results in increased sales. Focus groups and questionnaires are also sometimes distributed to get responses from the customers. Sampling is another strategy used by the department in which they give sample products to various houses which they choose randomly and the results are then verified by the sales and marketing team carrying out the research.

BREAKEVEN ANALYSIS

Particulars
Amount (Rs)

Variable Cost (VC)

Break up of VC
Raw material
3.00
70%
Labor
0.50
11%
Packaging and Labeling
0.80
19%

Total Variable Cost
4.30

PRICING STRATEGY

S.No.
Price Strategy
Price (Rs)
Sales Tax
Total Price
1
Producer Selling Price
10.00
1.5
11.50
2
Distributor Selling Price
11.00
2.00
13.00
3
Retailer Selling Price
12.50
2.50
15.00

BUDGETING FOR 2008

Labour expense per year

Factory Workers
7.00

Salary per worker per month
2500.00

Months
12.00

Labour expense per year
210,000.00

Overheads
Monthly
Annual

Electricity
16,000.00
192,000.00

Phones
10,000.00
120,000.00

Water
1000.00
12,000.00

Production Manager
8,000.00
96,000.00

QC Manager
8,000.00
96,000.00

516,000.00

Admin Expense

Monthly
Annual

Stationery
15,00.00
15,000.00

Salary of Marketing Staff (4)
18,000.00
216,000.00

Salary of Admin /Finance Staff
15,000.00
180,000.00

34,500.00
411,000.00

Advertising Exp
Monthly
Annual

Consumer Promotion (Handbills)
2,000.00
24,000.00

Out Door Communication
15,000.00
180,000.00

17,000.00
2,04,000.00

Fixed Costs (FC)

Break up of FC
Labour expense per year

210,000.00
15.6%
Overheads

516,000.00
38.60%
Admin Expense

411,000.00
30.6%
Advertising Exp

2,04,000.00
15.2%

13,41,000.00
100%

Break even Analysis

Selling Price

10.00

Variale Costs

4.30

Fixed Cost per year

13,41,000.00

Break even point in units year

235,263

Revenue at break even

235,2630

Cost of production at break even

10,11,630.00

Gross Profit

13,40,999.00

No. of units to be sold
25,000.00
300,000.00

No. of units at Break Even
19,605.00
235,263.00

(Rs)
Monthly
Annual

Revenue
2,50,000.00
30,00,000.00

Cost of Goods Sold
1,07,500.00
12,90,000.00

Gross Profit
1,42,500.00
17,10,000.00

Fixed Costs

Labour expense per year
17,500.00
720,000.00

Overheads
71,500.00
858,000.00

Admin Expense
136,000.00
1,632,000.00

Advertising Exp
264,333.33
3,172,000.00

Total Fixed Costs
531,833.33
6,382,000.00

Distribution Analysis

Units to be sold in Year 1
300,000.00

Units to be sold in a month
25,000.00

Units to be sold in a day
833.00

No. of outlets for distribution
20.00

Sale per day per outlet
41.65

ACTION PLAN

Market Evidence Research
24th November – 26th November, 2008
Supplier Search
25th November – 28th November, 2008
Launch
7th December, 2008
Post Launch Marketing
7th December – 8th June, 2009
Sales Closing
8th June, 2009

We plan to launch Lite on 7th December, 2009. We plan to sell the product for 1st stage that would be of 6 months duration.

Conclusion:

This report on “Lite Juice” is produced as a requirement to the course XXXX, taught by XXXXX The focal point of this whole exercise is to develop an overview of the complicated yet exciting process of Marketing.

As a team we have decided to launch a mass marketing product that will be focusing on the people that are related to the middle class. The product “Lite” will be launched in December 2009. It is another product that has been set out in the market by the XXXXX Company Ltd. It has evaluated all aspects of marketing that have been applied to the report and to the launching of the product.

It provides an in-depth analysis of brand function but also presents an insight of consumer change year in and year out. It identifies and evaluates the modifications in the advertising trends and shows the various tools that have been used. Towards the end the report identifies the key variables and purposes that might have a profound effect based on this launch.

The need for Diabetic people was identified by our group and the deprived feelings of these people inspired us to produce a SUGAR FREE MIX JUICE not only for these people who are forced to look for alternatives but is also for those who are diet conscious. Lite will not only eliminate the feeling of isolation among the diabetic but will also provide added healthiness and sparkle to their lives. Lite is a product with reasonable price and quality of the product will be controlled

Our targeted market initially is Karachi. In Karachi, Diabetic ailment is on the rise at present it is 10 to 12% of total Karachi population is of great attraction for the Diabetic and weight conscious people. They need something to refresh them with an added feature of being sugar free and healthy.

Demographics:

Ø  For diabetic patients.

Ø  Weight conscious people.

Ø  Educated

Geographic:

Residing in Urban Area

The pure and natural ingredients present in our product will able us to gain position in our market as at present there are numerous Diet colas and sweet juices in the market but no Diet juices are available for Weight conscious and diabetic people.

In Juice industry we are confronted by giants like Nestle and Hamdard, and soft drink companies like Pepsi and Coke, because of their existing strength and brand loyalty in the market we will face difficulties in capturing mind and heart share of our target market.

SWOT ANALYSIS

STRENGTHS:

Ø      We have two market segments:

•         For diabetic patients.

•         Weight conscious people.

Ø       We have good quality product with  reasonable price

Ø        Unbreakable packaging (tetra)

WEAKNESSES:

Ø  Completely new product and our company is also new

Ø  Most employees are new and less experienced

Ø  Limited budget

Ø  Lack of awareness of Product

OPPORTUNITIES:

o       Raw material is easily available

o       Through international media people are well aware about these types of products

THREATS:

•         Giant competitors

•         Most of the customers avoid using new products.

•         Influx of smuggled products.

MARKETING MIX

Ø  New Sugar Free Juice

Ø  Convenient packaging 250 ml tetra pack

Ø  Ingredients:

                 Fresh fruit juices (sugar extracted)

                 Aqua

                 Vegetables (carrot, lemon, turnip etc)

Ø  Different flavors

Ø  Nutritional Value: energy…20 kcal, protein…1.0g,fat…traces, carbohydrates…1.0g

Ø  When analyzing market situation we searched about the prices of our competitors and we found that the minimum price of any Juice is not less than Rs: 12/-. Drinks at the lower end of price range are usually artificial juices and are not associated with quality natural juices therefore, we decided to fix the price of  at consumer attraction level of Rs: 15/- per pack

Promotion

Media Selection

Broadcast Media

Ø  Television

Ø  Radio

Print Media

Ø  Newspapers

Ø  Magazines

Ø  Trivision

Ø   Banners, Posters

Advertising budget

New for consumer market, therefore we need advertising campaign in order to built brand awareness and getting market share we have allocated 2,004,000 to our promotional activities.

References

F. Robert Dwyer and John F Tanner (2005)Business Marketing: Connecting Strategy, Relationships, and Learning (Mcgraw Hill/Irwin Series in Marketing)

Harvard Business School Press (2008), Breakeven Analysis and Operating Leverage: Understanding Cash Flow

William M. Luther, 2001, The Marketing Plan: How to Prepare and Implement it

 http://books.google.com.pk/books?hl=en&id=mX9sCsIqMf8C&dq=marketing+plan&printsec=frontcover&source=web&ots=ugSpYS8WeW&sig=Gckgx8GZha1BhmWtbJ9ACvUB6GM&sa=X&oi=book_result&resnum=2&ct=result

Sample Marketing Plan

http://www.morebusiness.com/templates_worksheets/bplans/printpre.brc

Marketing Plan

http://www.businessplans.org/Market.html

James Stephenson and Courtney Thurman (2007)Ultimate Small Business Marketing Guide

John Coe (2003)The Fundamentals of Business-to-Business Sales & Marketing

Robert W. Bly (1998), Business To Business Direct Marketing

Reed Holden and Mark Burton (2008), Pricing with Confidence: 10 Ways to Stop Leaving Money on the Table

Spencer A. Tucker (1980), Profit Planning Decisions With the Break-Even System

Thomas T. Nagle and John Hogan (2005), The Strategy and Tactics of Pricing: A Guide to Growing More Profitably