rus sip
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GROUP MEMBERS
Sheikh Faisal Ghias ( Leader )
Muhammad Bilal Zafar
Muhammad Shoaib Qureshi
Raja Kashif Muzaffar
Muhammad Waqas-ur-Rehman
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Table of Contents
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Executive Summary
This report explains the marketing plan for launching a sugarcane Juice namedRUS SIP. This product has been made by the United Private Limited .In the very
beginning of the report we have explained the mission and vision of the Sugarcane juice
and then we have further carried out our activities to achieve our goals and objectives. It
will be introduced in the market with the help of various promotional displays,
advertisement and distribution of free samples to the general public. This report
examines that this product is initially launching in Whole Pakistan domestic market. The
study included both primary and secondary research. The primary study focused on a
survey of the competitors and the likings and disliking of people. Through this strategy
company can penetrate more into the market and can attract the bulk of customers. For
this purpose we have conducted SWOT analysis of the company to see the
companys strengths, weaknesses, opportunities and threats. Then we have explained the
purposes, benefits and objectives of our product.
Then we have made marketing strategies for our product. We have divided market into
different segments and decided to target the male, female, youngster mature and old age
person. We have also paid special attention to the packaging, color and price of the
product. We have decided to place the product in all the markets of Punjab especially in
the canteens of colleges and universities and retail outlets. We will promote our product
through electronic media, print media, cable, and outdoor sources. We shall also conduct a
market survey in future to know the opinion of public about our product and developed
our product accordingly to our customers changing needs and demands.
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Introduction
Sugarcane Juice is a Marketing idea that deals is product. Our product is sugarcane juice in
tetra pack packaging. Sugarcane juice is widely used in summer season because it is good
in taste and low in cost. But problem with this is that it cant preserve for long time. In
Pakistan no company has launched sugar cane juice till now in tetra pack. The
methodology used in Pakistan is quite old and so many people dont go for this sector
because the risk of the low shelf life. So we have decided to launch a sugar cane juice
because sugar cane juice is naturally sweet, so it can be sold with a little additional
processing we can make flavors also as a ginger, lime juice, mint leaves.
Fresh sugar cane juice has no preservatives, however its tendency to turn black fromoxidation soon after pressing is very high, so to secure from oxidation we should pack in
tetra pack packaging. The sugar cane juice has several health benefits and medicinal
properties most of which remains unknown to the masses. It has direct effect on digestive
system and it contains nutrients which are healthful for life. It strengthens the stomach,
kidneys, heart, eyes, and brain and sex organs. The juice sucked from the sugarcane can
prove highly valuable in case of weak teeth due to lack of proper exercise resulting from
excessive use of soft foods. It gives a form of exercise to the teeth and makes them strong.
It also keeps the teeth clean and increases their life.
Vision~ 5 ~
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To evolve as one of the best Producer of quality sugarcane Juice which is organically,
grown extract juice scientifically and serve a totally natural and hygienic DESI
refreshment in our country because it is in our culture to use sugarcane and continue to
retain the position, by improving the quality and bringing the innovation in our product, tomeet the customer changing needs. So we can increase our profit.
Mission Statement
To refresh the people of all ages with our product
We want to be at the top in the field of juices and breweries.
Tag Line:
Fresh Juice for Healthy Life
Goals and Objective
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Our objective is divided into different parts.
Continuous growth in sales
Increase the seasonal sales volume Improve the companys image
Delivering the good quality and taste to the consumers at a fair price
Issue:
Our main issue is about the perception of people about the sugarcane juice building
brand is very difficult due to perception because they will think that it
is easily available in fresh form then why we buy it in tetra pack. We must invest heavily on promotion of juice and also marketing plan will change
time to time because we are new in the market so we have to create awareness in
customer about our product and to attract them.
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PEST ANALYSIS
Political or Legal Forces
Taxation Law
If government imposes heavy taxes on the industry then it badly effects the industry
growth. The taxes impose is from government side and it varies from industry to industry.
Labor Laws
Labor is being privileged here having all the laws. Rus-sip company also follow these law
like government announce minimum salaries of a employ Rs 8000.
Forei gn trade Regulations
Foreign trade regulation does not effect the over all policy and the working of our
company because we are operate nationally not internationally.
Attitudes towards foreign companies
We have no any agreement with any foreign company but if any company will offer the
business to us related / unrelated we would think about it according to terms and
conditions.
Economic Analysis
Inflation Rate:
Now in Pakistan inflation rate is almost 22.3% so if increase in inflation rate then increase
in prices of JUICES but if in Pakistan economy.
Economic growth rate
Economy growth rate is 3.7%
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Social Factor
Health consciousness
Today people are more health conscious so Rus-Sip juices by identifying this need of the people they are also producing health conscious juices with more vitamins.
Demographic trend
In Pakistan the population growth rate is 1.551% in 2012 and total population is
190,291,129 (July 2012).
Age structure
0-14 years: 34.7% (male 33,941,828/female 32,130,001)
15-24 years: 21.7% (male 21,283,907/female 19,951,750)
25-54 years: 34.5% (male 34,171,096/female 31,564,622)
55-64 years: 4.8% (male 4,539,939/female 4,633,292)
65 years and over: 4.2% (male 3,808,536/female 4,266,158)
Lifestyle changes
They consider quality life changes and take advantages of accordingly so that customer
can convinced as well as it plays a vital role to attain & retain the customer. Consumer
adopts the trend of changing environment because of modern facility as well asglobalization they are aware about each and every thing happening all around them.
Technological Analysis
Product innovation
Product innovation is becoming more necessary for the organization because of
globalization people are becoming aware about the changes being taken place around themso in order tactical the situation nestle juices is focusing on product innovation by
introducing new flavor of juices with the passage of time NESTLE JUICES use new tetra
packing like easy open cork of pack.
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Total spending on R&D
Spending on R&D is long term investment for any organization. Our company has R&D
department and head of R&D department is Sheikh Faisal Ghias.
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SITUATION ANALYSIS
Target Market Summary
Although our juice is for all ages and for all kinds of people, but the youth is our main
target. As this segment is maximum in number in population in Pakistan and it is more
fun loving and excitement seeking so it is our best target market.
4.1 Market Demographics
4.2 Market Needs
In summer people of all ages take soft drinks and juices to quench their thirst .So
Sugarcane juice in tetra pack is highly demanded by customers because it reduces the
thirst and it is useful for healthy life because it is hygienic and pure. So when it is highly
available at affordable price at everywhere customers will use Sugarcane juice than soft
drinks because it has no side effects and it is safe.
4.3 Market Trends
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Demographicsegmentation
Age Gender Income
Company targetedcustomers abovethan 3 years &onward
Both male andfemale
All social classes
Geographicsegmentation
City City City
Lahore Islamabad Multan
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In target market there is trend of soft drinks and juices. People use juices to have a fit
life and also to serve their guests as well. Because juices are hygienic and nutritious
and have a good taste then soft drinks. In summer its usage is more so the availability
should be increased to meet the demand of customers.
4.4 Market Growth
Juices market expands very fast .A new research proves that in future (2012) every person
use 85.5 liters juices per years.
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SWOT ANALYSIS Strength:
First mover Advantage:
We have introduced sugarcane juice in tetra pack for the first time. So it is helpful for us to
have more customer at the than other new competitors because the time the take to enter
the market the customer will become loyal to our product.
Quality Conscious
Rus-sip produces good quality products. It can not compromise on quality.
Less no of taste:
We have introduced the first time that there is not any sugarcane juice in tetra pack
available in market.
Weaknesses:
Storage ability
Rus-sip juices not store able for long time.
Loyality:
Consumers are brand loyal toward competitors product so we have to convincethem.Beacuse there are already competitors who are dealing in juices and beverages,
so it is difficult to shift them from other juices.
Opportunities:
New flavor:
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We can introduce flavored sugarcane juices. E.g., mint and ginger flavor etc.
Export:
We can export our product to foreign country in order to earn more profit.
Global hub
Since manufacturing of some products is cheaper in Pakistan than in other South East
Asian countries
Support foreign investors
Government support foreign investors to invest in Pakistan.
Threats:
Government Regulation
They face problem if government employ taxes on them which force them to raise the
price of their product.
Increase in competition
There is large competition in juices market
Entry barrier
There are no many entry barriers so a large numbers of local juices enter in juices market
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COMPETITION OVERVIEW
Direct Competitors
The direct competitors of our Product are:
Shezan ( Mango, Punch, Orange, Apple.)
Nestle ( chounsa , guava, grapes nectar)
Coca cola (pulpy orange)
But we are not competing our product with them because they are the competitors of the
Juice market and they are only providing the different flavor juices but not the sugarcane
juice.
Indirect competitors
As the Sugarcane juice is the symbol of the refreshment and nutrition and it is also a
substitute for the other soft drinks. So we have compared it with other soft drinks.
So in the soft drink market we have the competitors like
Coca cola
PEPSI
And other Instant drinks
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DISTRIBUTION CHANNEL OVERVIEW The effectiveness of distribution coverage and practice is of paramount importance in
achieving the desired fruit juice sales. Understanding of the distribution channels is crucial
in order for the manufacturer to plan and implement an effective distribution strategy. Our
study shows that the distribution of fruit products and juices is done through multiple
channels involving producers, importers, wholesalers, retailers and users. While it is the
common practice for the individual customers to buy the products from the retail outlets;
institutional/ organizational buyers such as tourist hotels and agencies would normally
place orders directly with the producers/importers and wholesalers.
Two types of selling methods are proposed for this project i.e.
1. Direct Selling
2. Indirect Selling
Direct Selling In direct selling the Company will supply their product in the shops by
using their own transport. In this type of selling the Company has more profit margins.
Indirect Selling In indirect selling the Company has their whole-sellers and agencies to
cover the areas that they wish to target. As it is literally impossible to supply the products
to the consumer themselves due to the sheer volume of the demand, hence the company
understands that marketing through suppliers is crucial for the availability of product.
Through this decentralized channel the company is ensuring a smooth and efficient flow of
the process which increases the performance of the company.
Based on discussion with industry experts, it appears advisable to operate with a mixed
distribution setup. For the purpose of the project under consideration, it is proposed that
company owned distribution team would cover the home city and the factory surroundingareas to capture the niche market which will provide business a room for survival whereas
distant distribution operations will be outsourced to the distribution agents playing around
the distribution margins and other promotional schemes. Designated wholesalers and
secondary wholesalers may also play a key role in capturing far off markets for the product.
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MARKETING STRATEGIES
1. Positioning strategy:
Brand strategy is at the heart of marketing strategy. It is the act of designing the company
offer and image so that it occupies a distinct and valued place in the target customer mind.
Sugarcane juice is very beneficial for health and provides refreshment. As we are
launching sugar cane juice in tetra pack, so we want to create positive and long lasting
image in the minds of customers that we are providing hygienic juice because we are also
introducing new flavors like mint and ginger etc.
Point of parity
Different flavor
Tetra packing
Point of difference
100% pure juice
2. Product strategy:
Core benefit
Core benefit means the services and benefits the customer is really buying. Our customer
fulfills its need of thrust and refreshment by buying our Rus-sip juice.
Basic product
Its mean what specifically the actual product is. Our actual product is juice
Augmented product
Products that include deign, features and packging that go beyond consumer expectations
and differentiate the product from competitors. Our juice taste and flavor is according tothe customer expectations because we provide 100% pure juice. We have no compromise
with quality
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Following things include in the sale of product,
Design:
The design of sugarcane juice that it will be in attractive and stylish tetra pack in following
size,
250ml
500ml
1000ml
Features:
The features of our product are ,
Use full for healthy life
Good in taste
Help to digest food
Packaging:
Our product will be in tetra packging which will be attractive and eye catching.
3. Pricing strategy:
The price of the product can also influence the buying behavior of the consumers because
in Pakistan there are different level of classes based on the income difference so price is
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the one of the important factor, some of the consumer can afford the price and others cant,
so we must set the price of the product that is afforded by all the social classes of the
region. So we use penetration pricing strategy.
Price Structure
(Consumer price)
250ml 18 Rs.
500 ml 30Rs.
1000ml 60Rs.
4. Channel of Distribution:
The place of the distribution and availability of the product also influence the buying
behavior because if the product is in reach of the consumer he will prefer it and if it is hard
to find the product in the market he will never buy that product. So we provided our
product to all the all the distributors and they will provided it to famous retailers of
Islamabad, Lahore and Multan.Because of this our product will be available at more shops
and our sales will increase.
5. Promotion strategy:
The promotion of the product i.e. the advertisement, sales promotion and other promotional tools can change the buying behavior because some of the individuals highly
influenced by the advertisement of the product. we have decided to use integrated
marketing communication in which there will be blend of different marketing promotional
tools that will convey clear and consistent message of our product to the customers. These
Promotional tools are given below,
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Manufacture
Distributor
Retailer
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Newspapers
Newspaper has the widest readership and circulation among our targeted market; thesewould carry most of the advertisements for the publication media. Also, the print ads will
be published in other much read newspapers like be designed, i.e. half page and quarter
page.
Television
Tele commercials will be aired on sports channels and news channels as the viewer ship of
these channels is highly common among the targeted market.
Billboards
Billboards will be placed at busy thoroughfares in big cities. Billboards will be our most
permanent and long lasting form of advertisement.
Promotional Vans
Promotional vans would be deployed on public places which would distribute sugar cane
juice for free giving out the message of being an instant energy drink. This campaign of
free sampling would last for three months at least in order to make people aware of the
benefits and the attributes.
6. Marketing Research(R & D)
After analyzing the demand and need we developed a product sugarcane juice in tetra
pack. In marketing research we analyze about the demand and trends of market as well as
about customers. The product concept defines the purpose of the product, its suitabilityand business advantages for the envisaged market.
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6. Marketing Budget
We are going to prepare marketing plan of Sugarcane juice in tetra pack because we aregoing to established new business in Pakistan, we made a budgeting plan for our business.
We have a budget of 3.00 cror rupee to establish our plan. Now we allocate different
amount in different parts.
Method of allocation
Creating an annual budget involves 1.5 cror on building and plant and other budget we
will use in following manner,
Allocation
of budget
on other
uses
New
Product
Research.
Marketing
Research
Advertisement
Expense
Sale
Expense
Direct
Marketing
Public
relation
1.5 cror 40 lac 20 lac 50 lac 20 lac 10 lac 10 lac
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