250ml Shandy Nr Brick Pack
-
Upload
mohammad-imran -
Category
Documents
-
view
114 -
download
1
Transcript of 250ml Shandy Nr Brick Pack
250 ml Brick pack CSD SHANDY Drinks
Table of Contents
1.0-Company Introduction:..........................................................................................................22.0-Competitors / Market Players....................................................................................................23.0-STP...................................................................................................................................3
3.1-Segmentation...................................................................................................................33.1.1-Geographic Segmentation..............................................................................................33.1.2-Demographic.............................................................................................................33.1.3-Psychographic............................................................................................................3
3.2-Targeting........................................................................................................................33.3-Strategic Positioning............................................................................................................3
4.0-Marketing Mix.....................................................................................................................44.1-Place (Distribution).............................................................................................................44.2-Promotions......................................................................................................................54.3-Pricing............................................................................................................................54.4-Product..........................................................................................................................6
5.0-Green Marketing..................................................................................................................76.0-Meta Market.......................................................................................................................77.0-Value Chain.........................................................................................................................8
7.1-Supply Side......................................................................................................................87.2-Demand Side...................................................................................................................9
8.0-Data base Variables................................................................................................................99.0-Competitive Advantages........................................................................................................1010.0- Balanced Scorecard............................................................................................................10Appendix:..............................................................................................................................12
Exhibit 1............................................................................................................................12Buyers Utility Map...........................................................................................................12
Exhibit 2............................................................................................................................13Income Statement ............................................................................................................13
Exhibit 3............................................................................................................................15Cash Flows ....................................................................................................................15
Exhibit 4............................................................................................................................16Balance sheet...................................................................................................................16
Exhibit 5............................................................................................................................17Break-Even....................................................................................................................17
Exhibit 6............................................................................................................................18Cost break up..................................................................................................................18
250 ml Brick pack CSD SHANDY Drinks
k llll
1.0-Company Introduction:
Shandy Cola was established in early 1980s with more than 30 products. In 1995 Shandy
Cola came with an innovative PET packing for their CSDs which revolutionized the
whole CSD industry. Now PET bottle is available in 300 ml at a low market price of
Rs10. They changed their packing from glass bottles to PET bottles because their assets
of empty glass bottles were stolen by other competitors. Then they came with a new idea
1
250 ml Brick pack CSD SHANDY Drinks
k llll
of PET bottles. This also added to the customer convenience due to the non returnable
bottles. Shandy Drinks were the trend setters in CSD industry. They have 6 different
flavors in the market. They are launching a new flavor that is Shandy DEW. Considering
these facts we chose Shandy Cola for our strategic marketing plan.
2.0-Competitors / Market Players:
The main market players in the CSD industry are
2
250 ml Brick pack CSD SHANDY Drinks
k llll
Pepsi Cola
Coca Cola
RC Cola
Amrat Cola
Mecca Cola
Pakola
3
250 ml Brick pack CSD SHANDY Drinks
k llll
Players Market Share (Lahore)
Pepsi Cola 44 %
Coca Cola 38 %
Shandy Cola 7 %
4
250 ml Brick pack CSD SHANDY Drinks
k llll
Others 11 %
3.0-STP:
3.1-Segmentation:
5
250 ml Brick pack CSD SHANDY Drinks
k llll
3.1.1-Geographic Segmentation:
In geographic segmentation our attention will be on the metropolitan city of Lahore, the
vicinity of Lahore and few other areas of Central Punjab.
3.1.2-Demographic:
Young and energetic people are our demographic segments.
3.1.3-Psychographic:
6
250 ml Brick pack CSD SHANDY Drinks
k llll
Strivers:
These are trendy people who favor stylish products.
3.2-Targeting:
Our potential target markets for Shandy Drinks are
Young, energetic, people who favors stylish products
The city of Lahore
7
250 ml Brick pack CSD SHANDY Drinks
k llll
3.3-Strategic Positioning:
Positioning is defined as the marketers’ effort to identify a unique selling proposition for
the product. With this the product occupies a clear, distinctive and attractive position
relative to competing products in the minds of target consumers. For positioning the firm
has to consider for each potential segment, how it would approach serving that group of
customers and how it would want to be perceived by those customers. It could be done by
a slogan that is based on patriotism which could stand out in the minds of customers. e.g.
8
250 ml Brick pack CSD SHANDY Drinks
k llll
Shandy cola slogan is “ ” meaning “It’s yours, drink it until
you are satisfied”
A positioning statement answers these questions:
Who are the customers?
What is the set of needs that the product fulfills?
Why is the product the best option to satisfy those needs?
9
250 ml Brick pack CSD SHANDY Drinks
k llll
For our product brick pack Shandy Cola we have answered the above questions as
follows:
Our customers are those consumers who have problem with returning of glass
bottle and depositing some amount for it.
10
250 ml Brick pack CSD SHANDY Drinks
k llll
Our Product fulfills the need of those consumers who want disposable packing for
health or hygiene purpose or who do not want to deposit money and return the
bottle to the store.
It is the best option as it is much more convenient to those people who do not
want to return the bottle right on spot and can easily consume it while driving
back home. Also it is much hygienic than the used washed glass bottle because it
11
250 ml Brick pack CSD SHANDY Drinks
k llll
is disposable and consumers do not have to worry about transferable diseases like
Hepatitis.
4.0-Marketing Mix:
4.1-Place (Distribution):
Company currently is covering the metropolitan city of Lahore because they have limited
production facility. Gradually they will increase to other cities of Punjab their production
12
250 ml Brick pack CSD SHANDY Drinks
k llll
facility in Lahore. They are outsourcing their distribution and they select their channels of
distribution like Punjab University, Kinnaird College will increase to GCU & UET.
They are customizing distribution with the name of channel
Ravians Shandy
Punjabian Shandy
KCite Shandy
13
250 ml Brick pack CSD SHANDY Drinks
k llll
UETian Shandy
4.2-Promotions:
The different promotion strategies that will be used by Shandy Drinks to position its
product in new packing as the highly convenient handling will be:
4.2.1-Promotion through Bill boards:
14
250 ml Brick pack CSD SHANDY Drinks
k llll
The company is also doing the promotion through billboards near the main markets and
main roads in Lahore only.
4.2.2-Promotion through Hammering:
Company is also doing their marketing via sponsorship, sponsoring in different T.V
channels and FM radio for Lahore & Punjab. Shandy Cola is doing sponsorship in time
check after each fifteen minutes in different TV channels and FM radio. They usually do
15
250 ml Brick pack CSD SHANDY Drinks
k llll
not commercialize through complete advertisement because capacity is limited & Shandy
drinks are only available in Lahore & some areas of Punjab.
4.2.3-Promotion through Sponsorship:
Our company will sponsor the local sports events like Polo and Kabbadi. This is because
the slogan of the company is based on patriotism. That’s why company will sponsor the
local events (the colors of Lahore).
16
250 ml Brick pack CSD SHANDY Drinks
k llll
4.2.4-Promotion Through Customize Distribution of Wedding Halls:
Company will market its product through customize distribution to local wedding halls of
A+ Places in Lahore.
4.3-Pricing:
4.3.1-Pricing Objective:
17
250 ml Brick pack CSD SHANDY Drinks
k llll
The pricing objective of the company is to increase market share in the metropolis of
Lahore. Their higher unit volume sales will lead to lower cost. The fixed cost remains the
same but Variable cost will go down. V.C per unit is approximately Rs. 5 / unit that will
go down to approximately Rs. 2 – 2.5 / unit (Exhibit 5).
4.3.2-Pricing Strategy:
18
250 ml Brick pack CSD SHANDY Drinks
k llll
Company sets low price (penetration pricing) as compared to other market leaders (Pepsi,
Coke) because customers do not perceive it as high priced product. Low price
discourages actual & potential competition. The selling price is Rs.10 / unit including
V.C, F.C and distribution cost.
4.4-Product: AUGMENTED
EXPECTED
19
250 ml Brick pack CSD SHANDY Drinks
k llll
Augmented:
It is the fourth level of customer value hierarchy, a set of attributes and conditions, above
buyers’ expectations when they purchase the product. In order to meet with the
20
Core
250 ml Brick pack CSD SHANDY Drinks
k llll
expectation of the customer, company monitors each of the production work carefully
and implements quality assurance method for production and packaging of the product.
21
250 ml Brick pack CSD SHANDY Drinks
k llll
4.4.1-PLC:
22
250 ml Brick pack CSD SHANDY Drinks
k llll
23
250 ml Brick pack CSD SHANDY Drinks
k llll
4.4.2-BCG Growth Matrix Share:
24
250 ml Brick pack CSD SHANDY Drinks
k llll
High Low
Growth High
Rate
* ?
Cash Cows Dog
25
250 ml Brick pack CSD SHANDY Drinks
k llll
Low
Relative Market Share (Cash Generation)
26
250 ml Brick pack CSD SHANDY Drinks
k llll
The Company is in Low MS & High Growth Rate quadrant. After the new packaging
introduction the company will move towards Star because they will able to increase
market share.
5.0-Green Marketing:
Green marketing is done to support your product and show your product as an
environment friendly product in the mind of the customers.
27
250 ml Brick pack CSD SHANDY Drinks
k llll
5.1-Lean Green:
Company is doing the green marketing and they are incorporating with Lean green
strategy. In lean green marketing companies do green marketing but they don’t publicize
it. Company’s interest is only in reducing costs, improving efficiencies and creating low
cost competitive advantage. Their point of differentiability and substantiality is low.
6.0-Meta Market:
28
250 ml Brick pack CSD SHANDY Drinks
k llll
In Meta market different industries are involved. In our product chemicals, plastic, paper,
cardboard/packaging are used as Meta market.
7.0-Value Chain
29
Information (Customers, Raw
Materials)Raw Material Processing Production
DistributionWhole sellerWare housePackagingRetailer Customers Information
250 ml Brick pack CSD SHANDY Drinks
k llll
30
250 ml Brick pack CSD SHANDY Drinks
k llll
7.1-Supply Side
7.1.1-Information:
The following key information is considered while manufacturing the CSD
31
250 ml Brick pack CSD SHANDY Drinks
k llll
Customer preferences
Availability and cost of raw materials
Current prices of CSD in markets
7.1.2-Raw Material:
The raw material used in the manufacturing are bought from local supplier.
7.1.3-Processing:
32
250 ml Brick pack CSD SHANDY Drinks
k llll
The company processes the raw material for the final production in desired proportion.
Approximately 50% value added in processing.
7.1.4-Production:
In the production of Shandy CSD, CO2 is inserted at a pressure of 1.0-1.2 psi with small
technology addition. Value added in terms of its addition of CO2 (taste).
33
250 ml Brick pack CSD SHANDY Drinks
k llll
7.1.5-Packaging:
After production, new packing has done their self in production house. Value added in
terms of its new packing.
7.2-Demand Side
7.2.1-Warehouses:
34
250 ml Brick pack CSD SHANDY Drinks
k llll
Company stores its products in their own warehouses at plant site to meet the demand in
time. Company is already behind the demand. Value added terms of its storage to meet
demands.
7.2.2-Distributors:
Company outsources its distributions to local distributors.
35
250 ml Brick pack CSD SHANDY Drinks
k llll
7.2.3-Retailers:
Distributors provide the final product to retailers with no defect. Value added is due to
reach without defects and company provides chillers to retailers for chilling the CSD.
7.2.4-Customer:
Retailer sells chilled products to customer. The value added is chill product with beautiful
and attractive packing.
36
250 ml Brick pack CSD SHANDY Drinks
k llll
7.2.5-Information:
The final key information given by customers is
Convenience in buying the product
Expected taste and variability in taste
Perceived price and satisfaction level.
37
250 ml Brick pack CSD SHANDY Drinks
k llll
8.0-Customer Variables:
Flavors
Design of packing
Customize Distribution
Taste
38
250 ml Brick pack CSD SHANDY Drinks
k llll
Carbonation (Pressure)
Temperature
SKB
9.0-Competitive Advantages:
Our company has the following competitive advantages:
39
250 ml Brick pack CSD SHANDY Drinks
k llll
Innovative packing
Multi flavors
Low price
Low Packing cost
10.0- Balanced Scorecard
40
250 ml Brick pack CSD SHANDY Drinks
k llll
FINANCIAL PERSPECTIVES(How do we look to shareholders)
Goals Measures
SurviveCash flows (To survive in the CSD industry with the help of using our cash flow)
SucceedTo succeed in the market by reviewing our quarterly sales growth and operating income.
41
250 ml Brick pack CSD SHANDY Drinks
k llll
ProsperOur target would be to increase our market share and ROE by generating more sales.
Profits
The company’s aim would be to increase profits and market share by generating more sales.
42
250 ml Brick pack CSD SHANDY Drinks
k llll
INTERNAL BUSINESS PERSPECTIVES(What must we excel at?)
Goals Measures
43
250 ml Brick pack CSD SHANDY Drinks
k llll
Technology Capability
Used innovative & cheaper technology for new packing introduction
Product Development
Introduced new package, to be number 1 in delivering value to the customers
Manufacturing excellence Measuring the unit cost and capacity
44
250 ml Brick pack CSD SHANDY Drinks
k llll
INNOVATION & LEARNING PERSPECTIVES(Can we continue to improve & create value)
Goals MeasuresTechnology Leadership leader in the CSD brick pack technology
Product FocusPercentage of products which are generating higher sales or 90%
Time to Market looking at our competitors if they are affecting our growth
45
250 ml Brick pack CSD SHANDY Drinks
k llll
CUSTOMER PERSPECTIVES(How do customers see us?)
Goals Measures
46
250 ml Brick pack CSD SHANDY Drinks
k llll
New ProductThe CSD product packing is an innovative and new in the market
Responsive SupplyWe would be delivering the products on time as per specification
PriceHow customers compare the price with value the customer perceives out of it.
47
250 ml Brick pack CSD SHANDY Drinks
k llll
Appendix:
Exhibit 1
10.0-Buyers Utility Map
48
250 ml Brick pack CSD SHANDY Drinks
k llll
Purchase Delivery Use Supplements Maintain Disposal
Customer
Productivity
Simplicity
49
250 ml Brick pack CSD SHANDY Drinks
k llll
Convenience
Risk
Fun & Image
Environmental
50
250 ml Brick pack CSD SHANDY Drinks
k llll
Friendly
51
250 ml Brick pack CSD SHANDY Drinks
k llll
52
250 ml Brick pack CSD SHANDY Drinks
k llll
Exhibit 2
Income Statement (Shandy Drinks)
2009 2010 2011 2012 2013Unit Price 10 10 12 12 14Sale unit 4,200,000 4,368,000 4,542,720 4,724,429 4,913,406
53
250 ml Brick pack CSD SHANDY Drinks
k llll
Sales 42,000,000 43,680,000 54,512,640 56,693,146 68,787,683Cost Per Unit Price 7.5 7.95 8.43 8.93 9.47Cost of goods sold 31,500,000 34,725,600 38,281,501 42,201,527 46,522,964
Gross profit 10,500,000 8,954,400 16,231,139 14,491,618 22,264,720
Fixed Cost 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000Depreciation 70,000 70,000 70,000 70,000 70,000
1,070,000 1,070,000 1,070,000 1,070,000 1,070,000
54
250 ml Brick pack CSD SHANDY Drinks
k llll
Operating profit 9,430,000 7,884,400 15,161,139 13,421,618 21,194,720
Profit before tax 9,430,000 7,884,400 15,161,139 13,421,618 21,194,720
Tax 34% 3,206,200 2,680,696 5,154,787 4,563,350 7,206,205
Net profit 6,223,800 5,203,704 10,006,351 8,858,268 13,988,515
55
250 ml Brick pack CSD SHANDY Drinks
k llll
56
250 ml Brick pack CSD SHANDY Drinks
k llll
Exhibit 2 (Continued……….)
57
250 ml Brick pack CSD SHANDY Drinks
k llll
Income Statement (Shandy Drinks)
2014 2015 2016 2017 2018Unit Price 14 14 16 16 16
Sale unit 5,109,942 5,314,340 5,526,913 5,747,990 5,977,910Sales 71,539,191 74,400,758 88,430,616 91,967,840 95,646,554Cost Per Unit Price 10.04 10.04 10.04 10.64 10.64Cost of goods sold 51,286,915 53,355,972 55,490,211 61,172,409 63,604,958
58
250 ml Brick pack CSD SHANDY Drinks
k llll
Gross profit 20,252,276 21,044,786 32,940,404 30,795,431 32,041,596
Fixed Cost 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000Depreciation 70,000 70,000 70,000 70,000 70,000
1,070,000 1,070,000 1,070,000 1,070,000 1,070,000
Operating profit 19,182,276 19,974,786 31,870,404 29,725,431 30,971,596
59
250 ml Brick pack CSD SHANDY Drinks
k llll
Profit before tax 19,182,276 19,974,786 31,870,404 29,725,431 30,971,596
Tax 34% 6,521,974 6,791,427 10,835,937 10,106,647 10,530,342
Net profit 12,660,302 13,183,359 21,034,467 19,618,785 20,441,253
60
250 ml Brick pack CSD SHANDY Drinks
k llll
61
250 ml Brick pack CSD SHANDY Drinks
k llll
Exhibit 3
Cash Flows (Shandy Drinks)
2009 2010 2011 2012 2013
EBIT 9,430,000 7,884,400 15,161,139 13,421,618 21,194,720Depreciation 70,000 70,000 70,000 70,000 70,000
Tax 3,206,200 2,680,696 5,154,787 4,563,350 7,206,205
62
250 ml Brick pack CSD SHANDY Drinks
k llll
OCF 6,293,800 5,273,704 10,076,351 8,928,268 14,058,515
2014 2015 2016 2017 2018
EBIT 19,182,276 19,974,786 31,870,404 29,725,431 30,971,596Depreciation 70,000 70,000 70,000 70,000 70,000
Tax 6,521,974 6,791,427 10,835,937 10,106,647 10,530,342
OCF 12,730,302 13,253,359 21,104,467 19,688,785 20,511,253
63
250 ml Brick pack CSD SHANDY Drinks
k llll
Pay Back Period 5.11 Years
64
250 ml Brick pack CSD SHANDY Drinks
k llll
65
250 ml Brick pack CSD SHANDY Drinks
k llll
Exhibit 4
Shandy DrinksBalance sheet
66
250 ml Brick pack CSD SHANDY Drinks
k llll
For the year ended on 31 December 2009
Rs. Rs.
Cash & Bank 473,000 Inventory 1,000,000 Total Current Assets 1,473,000 Fixed Assets:
67
250 ml Brick pack CSD SHANDY Drinks
k llll
Machinery 700,000 Less: Depreciation 70,000 630,000 Furniture and Fixtures 70,000 Less: Depreciation 10,500 59,500 Vehicles 700,000 Less: Depreciation 70,000 630,000 Office Equipment 112,500 Less: Depreciation 22,500 90,000 1,409,500
68
250 ml Brick pack CSD SHANDY Drinks
k llll
Working Capital Rs 451,300 Total Assets Rs3,333,800 Liabilities and Owner's Equity Debt 30% 1,000,140 Equity 70% 2,333,660 Total Liabilities 3,333,800
69
250 ml Brick pack CSD SHANDY Drinks
k llll
70
250 ml Brick pack CSD SHANDY Drinks
k llll
Exhibit 5
Break-Even (Shandy Drinks)
The break-even analysis indicates the amount of units Shandy Drinks have to sell in order
to recover the variable cost as well as fixed cost.
71
250 ml Brick pack CSD SHANDY Drinks
k llll
Break-Even = Fixed Cost/price-variable cost
= 1,000,000/(10-7.5)
= 1,000,000/2.5
= 400,000 units
72
250 ml Brick pack CSD SHANDY Drinks
k llll
Exhibit 6
Cost break up (Shandy Drinks)
300ml Plastic bottle 250ml brick Pack
Type of Packing for CSD 3.45 2.25
73
250 ml Brick pack CSD SHANDY Drinks
k llll
Packing 2.00 2.00
Cap 0.65 0.00
CSD 3.77 3.14
Total (Rs. / Unit) 9.87 7.50
74
250 ml Brick pack CSD SHANDY Drinks
k llll
75