Marketing Plan To Introduce ZamZam

Refreshment Beverages in Pakistan

Developed By

Name of Student: Mohammad Asif KhanStudent ID: MB-2-05-51271Program: MBA Course Name: Marketing ManagementCourse ID: 70394

Company Profile

oZamZam Refreshment (Emirates), head quartered in Al-Ain United Arab Emirates (UAE) was established in 2002.

oIt 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 an neighboring countries.

Company ProfileoMeanwhile, ZamZam-Jordan got is activities expanded to include other products mentioned under group 32 like, juice and other soft drinks.

o 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.

oIn addition to that, we are now in the advanced stages to manufacture our products in these countries in the near future.

Situational Analysis

oZamZam Refreshment is struggling to enter into a market where many other strong brands are already serving to the customers in the same products category.

oWe affirm that our product quality and taste is strong enough to compete the existing cola products which are globally known.

Target Markets Our product is equally acceptable for all the age groups but specially focuses to the young generations. We can differentiate our target markets as follows:

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

oFamilies (To enrich their lives with entertainment)

oBusiness 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:

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

 

Market Demographics: Rural Areas:

oDeveloped rural areas (Large villages having separate living areas with different standards of living).

oLess developed areas (Small villages having community base living standards.

 

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

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

Market Demographics:Behavioral Factors:

oThe majority of population belongs to the same religion and having strong religious trend among the middle income and lower middle income groups.

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

oHectic 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.  

Market Needs: ZamZam Refreshment is committed to serve the target market through proving value to the money to the customers in the shape of following: oQuality Beverages.oExtra ordinary Customer Services.oEnriching their lives with joy and happiness.  

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

Market Trends:

o Urban areas more civilized and developed as compare to rural areas and literacy rate is high as compare to the rural areas. People of the urban areas have 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: oIt 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 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:

oSuccessfully operating in the existing market through its unique taste of cola and exceptional customer service.

oOur state of the art logistics system enables us to minimize the overall cost.

oWe are financially strong enough to cope up with the market response or we can bear the early jerks of the market.

 

 Strengths:

oSuccessfully operating in the existing market through its unique taste of cola and exceptional customer service.

oOur state of the art logistics system enables us to minimize the overall cost.

oWe are financially strong enough to cope up with the market response or we can bear the early jerks of the market.

Weaknesses:

oPresently we have not investing on manufacturing process.

 

 Opportunities:

oLarge population of the country belongs to same religion.oLong summer seasons in the urban areas.oQuality food & beverages are sought in the market.oCan expand ourselves horizontally in same market.

Threats:

oExpecting strong resistance from the existing cola producers in the market.oThe uneven growth of economy and shaky political situation.oGlobal political scenarios.

 Competition ZamZam Refreshment is struggling to enter into the highly competitive food & beverages market, 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:

oCoca Cola oPepsi Cola

 Competition 

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:

oGourmet Cola  

o Nestleo Shezano Frootoo Apple Sidra 

 

o Red Bull Energy Drinks

o 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: The core Product:

oZamZam Cola  

Distribution The other products:oZamZam OrangeoZamZam LemonoZamZam Diet ColaoZamZam WateroPower Plus Energy DrinksoPower Plus Energy Drinks Sugar Free 

MARKET STRATEGYoAs per demographics the seventy percent of the population lives in the rural areas and the remaining thirty percent belongs to the urban areas. oInitially 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. 

Mission

 

Marketing Objectives oContinuously maintaining upward trend of sale of the ZamZam Refreshment products.

oAchieve steady growth to fully penetrate in to the market.

oDecrease customer acquisition cost each quarter.

oExpansion of distribution network all over the market.

Financial Objectives: oMaximize the ZamZam Refreshment profit margin through efficiency and achieving economies of scale.

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

Target Markets oZamZam Refreshment has segmented its target market into three broader categories, large urban areas, small urban areas and rural areas. oMarket niche has been created through segmenting market demographically.oZamZam Refreshment will target the young generation in its initial aggressive marketing campaign. Besides the aforementioned market niche we will also target the families to enrich their life with the new taste of cola products. oZamZam Refreshment will commence the lucrative promotional activities to attract the business customers.

Positioning

oZamZam Refreshment position itself as one of the finest producer of soft beverages products.

oWe differentiate our self through unique taste of our cola product and raise slogan “cola for everyone”.

oWe would like to make ZamZam Cola the first choice of the customers in soft beverages and drinks.

Strategies oThe first and the foremost aim of ZamZam Refreshment is to create awareness of the product and the value offered by us among the customers. oOur market strategy will focus to communicate the unique taste of cola which they never taste before or they are unable to find it in any other cola product. This message will communicate through variety of communication media. We have decided to communicate it through: oDeveloping Website and other digital channelsoElectronic MediaoPrint MediaoBill Boards / HoardingsoEvent Organizing

o Type: Soft Drink Carbonated beverage

o Ingredients: Carbonated water, sugar,( caramel) color, Acidulant, (Phosphoric Acid) Caffeine, Emulsifier (Arabic Gum), Natural Cola Flavor .

o Size: 250 ml Regular300 ml Pet Bottle350 ml Cane500 ml Pet Bottle1.5 liters Pet Bottle

Marketing MixProducts:

Type: Soft Drink Carbonated beverage, Orange

Ingredients: Carbonated water, sugar, Acidulant, (Citric 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 Bottle

350 ml Cane500 ml Pet Bottle1.5 liters Pet Bottle

Marketing MixProducts:

o Type: Soft Drink, Low Calorie Carbonated beverage, Lemon

o Ingredients: Carbonated water, sugar, Natural Citrus Flavour, Acidulant (Citric Acid), (Malic Acid), Acidity Regulator (Sodium Citrate), Preservative (Sodium Benzonate), Natural Lemon-Lime Flavor.

o Size: 250 ml Regular300 ml Pet Bottle350 ml Cane500 ml Pet Bottle1.5 liters Pet Bottle

Marketing MixProducts:

o Type: Soft Drink Carbonated beverage, Diet Cola

o Ingredients: Carbonated water, sugar caramel, Acidulates (Citric Acid, Phosphoric Acid), Sweetener (Aspartame 350 mg/lt.), Acidity Regulator (Sodium Citrate, Preservative (Sodium Benzonate), Caffeine, Natural Cola Flavor.

o Size: 300 ml Pet Bottle350 ml Cane500 ml Pet Bottle

Marketing Mix:Products:

o Type: Power Plus, Energy Drinks, Sugar Free

o Ingredients: Carbonated water, Acidity Regulator, Acidity Regulator (sodium Citrate), Preservative sodium Benzonate), Citric Acid, Taurine(Max-0.4%), lucurono-lactone(0.24%), Sweetener (Aspartame, Acesulfame K), Caffeine (.03%), Inostiol, Vitamins (Niacin, Pantothenic Acid, B6, B12), Flavour, Colors(Caramel, Riboflavin).

o Size: 300 ml Pet Bottle350 ml Cane

Marketing MixProducts:

o Type: Power Plus, Energy Drinkso Ingredients: Carbonated water,

Sugar (Sucrose), Glucose, Acidity, Regulator (Sodium Citrate), Preservative (Sodium Benzonate), Citric Acid, Taurine (Max 0.4%), Glucuronolactone (0.24%), Caffeine (0.03%), Inositol, Vitamins (Niacin, Pantothenic Acid, B6, B12), Flavour, Colour (Caramel, Riboflavin).

o Size: 300 ml Pet Bottle350 ml Cane

Marketing MixProducts:

o Type: Power Plus, Citromin Co Ingredients: Carbonated

water, sugar (Sucrose),Glucose, Citric Acid, Taurine, Glucuronolactone, Caffeine, Inositol. Vitamins (Niacin, Pantothenic Acid, B6, B12), Flavour, Preservative (Sodium Benzonate), Antioxidant (Ascorbic Acid).

o Size: 300 ml Pet Bottle350 ml Cane

Marketing MixProducts:

o Type: Power Plus, Gensengo Ingredients:o Size: 300 ml Pet Bottle

350 ml Cane

Marketing MixProducts:

o Type: Power Plus, Vitamin Co Ingredients:o Size: 300 ml Pet Bottle

350 ml Cane

Marketing MixProducts:

o Type: Pure Natural Mineral Watero Ingredients: 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

o Size: 300 ml Pet Bottle1.5 liters Pet Bottle

Marketing MixProducts:

Marketing Mix

Price:

oNot les then the market price level of the same drinks.

Place:

oLarge Urban areasoSmall Urban areasoRural Areas

Marketing MixPromotion:oLucrative discounts will be offer to the distributors, wholesalers and retailers.oThis promotional activity will be accompanied with the other promotional tools like offering company owned refrigerators; wholesalers and retailers sign boards, etc.oSales promotion events organizing.oSponsoring 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.

Marketing Research 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

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 for the three year period:

First Part of the Budgets: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 of

event organizing.

Marketing Staff Remuneration

06.0 Marketing Staff

Salaries and Wages Allowances for extra

activities Other administrative

expenses

Total 36.0

First Part of the Budgets:Year 1 Year 2 Year 3  

Particulars 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 0.5Expenses 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

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

Phase I:oThe company will capture the fifty percent large urban areas within the six months of its formal launching of products.Phase II:oWe will achieve hundred percent penetrations in to the urban areas’ markets within the one year.Phase III:oWe 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 sub markets or the locations. 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: oUpper Class Localities (Higher Income Groups)oUpper Middle Class Localities (Higher Middle Income Groups)oMiddle Class Localities (Higher Lower / Middle Income Groups)oUpper Lower Class Localities (Upper Lower / Lower Middle Income Groups) oLower 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.oMarketing & AdvertisementoSelling ActivitiesoLogistics & Distribution

 

Marketing & Advertisement Marketing department has been responsible to carry out all the marketing related activities of the ZamZam Refreshment beverages products. oFirst and foremost, they will be 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.oThen 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.  

Marketing & AdvertisementoThey 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. oMarketing 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 ActivitiesThe sales department is part and partial of the Marketing department, initially they are responsible to report to the marketing head about their selling activities. oThey 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 disturbance. oTo 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.

Selling ActivitiesoThey 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. oThe 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 logistics & distribution departments that all the sales order will be delivered on time at minimum cost. They will be 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 PlanningDifficulties & Risks:oAs 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.oThe product will be unable to achieve the desired objectives in term of finance and the number of sales.oA change in political and economic condition of the country can affect the predicted sales of the products.oFinancial risk can be minimized through creating or developing a joint venture or including local investors in the project.

Contingency Planning

Worst Case Risks Scenarios Include:

oProduct will be unable to get the desired response from the market.

oA negative marketing from the rivals can harm the product image.