Final Report Syed Hassan Nasim

EXECUTIVE SUMMARY

Aim of this project is to introduce a local brand of international quality, which would initiate the brands quality into Pakistan with its utmost quality. Our foremost aim was to thoroughly analyze the ambiance of the market through detailed surveys, both from the consumers and the retailers. We plan to sink into the consumer’s perception of how he/she views the goods he/she consumes. We will achieve this with the help of consumer surveys.

With the analysis of the market we will be able to judge the threats which we are going to face, as well as our weaknesses. The opportunities and strengths would also become clear to us, and thus we would be able to capitalize on them according to the present conditions of the targeted market.

Next step is to strategically come into the market with our competitors being present for quite a few years. The price we would allocate would be within the range of the current market prices. We plan to keep them lower than the really expensive ones and higher than the relatively cheaper ones. Apart from this, we would add more implications to the consumer’s perception of our product.

We plan to launch our product in summers, when the climate is hottest and the demand for ice-cream is at its peak. We would provide freezers to the retailers (all of which will be Class A Stores) 2-3 days before the launch. Our designated managers will ensure that free tasting samples are offered to the consumers on the first day of our launch at various designated places.

All forms of media would be used for promotional activities. Our aim is to advertise our product with the help of banners at different outlets, putting up an ad in the Sunday times (the day our brand would enter the market), placing television ads on World Call channels and on radio-FM89 and FM91.

SITUATION ANALYSIS

The target market taken into consideration for the launch of our new brand includes consumers falling between the age category of 6-40 years as the focus would be on takeaway packs not point of sale consumption ice cream which includes ice lollies, bars e.t.c. The target market focuses on the cream of our society that purchases ice cream from A class outlets. The questionnaire made is addressed to housewives as they are the ones who mostly purchase 1 litre packs of ice cream, keeping in mind the younger ones of the family as they mostly affect the buying behavior of housewives.

After conducting the situation analysis of the market segment that is being targeted, we conclude that different household members have different influences on the purchase pattern. As the survey results showed, many of the housewives buy ice cream on insistence of their kids, others may be influenced by the attractive packaging. In addition to this, the target market is influenced by the commercial and social sources of information, which include communication with the retailers, manufacturers, advertisers and sales people. Friends and family are the major source influencing the purchase behavior of ice cream as the results revealed.

The four bases for segmenting the consumer market are as follows:

1. Geographic: The main area of concern includes class A stores situated in the city of Lahore. The current population comprises approximately of 7.5 million people. The climate is mostly warm with long and hot summers and is ideal for a product like ice cream. The posh areas comprise of Cantonment, Gulberg, Model Town and Defence.

2. Demographic: The age bracket targeted is consumers falling

between the age category of 6-40 years. The main focus of social class is on the upper and upper-middle class. We plan to cater all kinds of people whether it be children, teenager or their parents.

3. Psychographic: This segment consists mainly of people who fall into two categories. Firstly, the ones who purchase expensive brands of ice cream just to represent their social status among their

particular class. Secondly, the ones who are regular consumers of expensive brands of ice cream.

4. Behavioral: This segment comprises of people whose primary focus

is on an international brand of high quality standards.

Factors affecting consumer purchasing:

Advertisements (Television, newspaper, magazines, billboards etc.)

Family Friends Public relation

To summarize the effects on consumer purchasing process, these are the four main factors that affect the buying behavior of the buyer. Firstly, one of the most common and effective way to influence the purchaser of a particular product is through advertisements. These may include advertising on television, radio, billboards, newspapers, magazines etc.... Each type is effective in its own way but since our main focus is segment ‘A’, hence we will concentrate more on television and magazines. Advertising on television is a good idea as the upper class spends a lot of time watching television as well as reading ‘INs’ and ‘OUTs’ in the leading magazines. Another, important factor is the influence of family and friends (peer pressure), as it plays a major role in the decision making process of the purchaser. Public relations also play a key role as it persuades the consumer to go for that particular product as the product might be presented in a way that makes the consumers believe that the product is an essential part of their life style.

A Review of Competition:

Price USP Strategy

The competitors being viewed initially are as follows:

WALL’S HICO ROYAL TREAT

This survey has been carried out in four outlets that are:

AL FATAH HKB THE SHOPPEE GOURMET

Brand Type Packaging Size Price

WallsStrawberry

/ VanillaPlastic Box 1 Liter Rs. 99

WallsChocolate

Chip / Vanilla

Plastic Box 1 Liter Rs. 99

Brand Flavours Packing Size Price

Walls VanillaCardboard

Box1 Liter Rs. 75

WallsChocolate Chocolate

Chip

Cardboard Box

1 Liter Rs. 95

Walls Tutti FruityCardboard

Box1 Liter Rs. 95

WallsPistachio Delight

Cardboard Box

1 Liter Rs. 95

Walls CassataCardboard

Box1 Liter Rs. 95

WallsKings Kulfa

Cardboard Box

1 Liter Rs. 95

Walls MangoCardboard

Box1 Liter Rs. 95

BrandType (Carte D’or)

Packaging Size Price

WallsButter Pecan Swirl

Transparent Pack

1 Liter Rs. 125

WallsBlack

Berry SwirlTransparent

Pack1 Liter Rs. 125

WallsVanilla

ChocolateTransparent

Pack1 Liter Rs. 125

WallsAlmond ‘n’

CrunchTransparent

Pack1 Liter Rs. 125

WallsStrawberry

TickleTransparent

Pack1 Liter Rs. 125

Slogan:

‘Thand Hai To Kya Hua’

Walls (liter packs) cater both the upper-middle and middle class. T.V is the most widely used promotion media used by the company followed by the print media, hoardings and billboards.

Competitive Edge:

Wall’s generates 80% of its sales through small products like ice lollies and bars and this makes them the leading brand in this product category.

HICO ICE CREAMBrand Type Packaging Size Price Company

Hico PralinePremium

Paper Pack

1 Liter Rs. 95

Pakistan Fruit Juice Company Pvt (Ltd)

ICE CREAM Division

Hico KulfaPremium

Paper Pack

1 Liter Rs. 95


ICE CREAM Division

HicoChocolate

Chip

Premium Paper Pack

1 Liter Rs. 95


ICE CREAM Division

Hico VanillaPaper Pack

1 Liter Rs. 85


ICE CREAM Division

Hico Mango Paper Pack

1 Liter Rs. 85 Pakistan Fruit Juice Company Pvt (Ltd)

ICE CREAM

Division

Hico ChocolatePaper Pack

1 Liter Rs. 85


ICE CREAM Division

Hico StrawberryPaper Pack

1 Liter Rs. 85


ICE CREAM Division

Hico Tutti FruityPaper Pack

1 Liter Rs. 85


ICE CREAM Division

HICO ICE CREAMBrand Type Packaging Size Price Company

HicoCookies

and Cream

Plastic Box 1 Liter Rs. 115


ICE CREAM Division

HicoReal

StrawberryPlastic Box 1 Liter Rs. 115


ICE CREAM Division

Hico Diet Lite Plastic Box 1 Liter Rs. 115 Pakistan

(Vanilla)

Fruit Juice Company Pvt (Ltd)

ICE CREAM Division

Hico PralinePremium

Plastic Box1 Liter Rs. 105


ICE CREAM Division

Hico KulfaPremium



ICE CREAM Division

HicoChocolate

FudgePremium



ICE CREAM Division

HicoPeanut Crunch

Premium Plastic Box

1 Liter Rs. 105


ICE CREAM Division

HicoChocolate

ChipPremium



ICE CREAM Division

Hico Vanilla Premium 1 Liter Rs. 105 Pakistan

Chocolate Chip

Plastic Box

Fruit Juice Company Pvt (Ltd)

ICE CREAM Division

Hico Vanilla Plastic Box 1 Liter Rs. 96


ICE CREAM Division

Hico Mango Plastic Box 1 Liter Rs. 96


ICE CREAM Division

Hico Chocolate Plastic Box 1 Liter Rs. 96


ICE CREAM Division

Hico Strawberry Plastic Box 1 Liter Rs. 96


ICE CREAM Division

Hico Coffee Plastic Box 1 Liter Rs. 96 Pakistan Fruit Juice Company Pvt (Ltd)

ICE

CREAM Division

Hico Tutti Fruity Plastic Box 1 LiterRs. 96


ICE CREAM Division

Slogan:

‘Nothing Better’

HICO (liter packs) cater both the upper-middle and middle class. They are the brand leaders in liter packs.

Firm belief in quality. Hico has such a firm believe in its quality that it does not advertise

on large scale. Print media is the only source of their promotion.

Competitive Edge:

HICO is the leading brand of Pakistan in Ice cream (1 Liter and above) and this is the edge it has over its competitors. The main belief of the company is to supply its consumers with top quality ice cream.

ROYAL TREATBrand Type Packaging Size Price

Royal TreatStrawberry with Real

FruitTub 1 Liter Rs. 400

Royal TreatVanilla with Chocolate

ChipTub 1 Liter Rs. 400

Royal TreatButter Scotch

Tub 1 Liter Rs. 400

Royal Treat Butter Pecan Tub 1 Liter Rs. 400Royal Treat Coffee Tub 1 Liter Rs. 400Royal Treat Black Berry Tub 1 Liter Rs. 400

Royal TreatCoconut Paradise

Tub 1 Liter Rs. 400

Royal TreatFruit Salad

(Sugar Free)Tub 1 Liter Rs. 450

As Royal treat is a relatively new comer as well as a foreign brand in the market from U.A.E, hence it only caters to the upper class.

It seems that they don’t have a particular marketing strategy yet as their production has not yet been started on large scale in Pakistan.

We have not seen any type of advertisement by this brand.

The only thing to be said about this brand is that this company supplies 1 liter packs but it is not available at class A outlets. These 1 liter packs are becoming rarely available because they are too expensive for the middle and upper middle class.

RECENT COMPETITION

Limitations:

Only competitors with 1 litre packing were to be taken into consideration

As we are to launch a premium high quality ice cream brand, hence all international high quality brands should be taken into consideration. Hence some of the competitors have been added to the previous list and the complete list is shown below:

Haagen Dazs (1/2 litre pack) Magnum (750 ml) Mars (1/2 litre pack) Twix (1/2 litre pack) Galzaxy (1/2 litre pack) Bounty (1/2 litre pack) Royal Treat (1 litre pack) Hico (1 litre pack) Walls (1 litre pack)

The details of the new brands are as follows:

Haagen Dazs (1/2 litre pack)

This pack is sold for Rs.350 and is available in numerous flavors. Some of them are listed below:

Chocolate Chocolate chip cookie dough Chocolate chocolate chip Cookies and cream Mint chip Mocha almond fudge

All of the above flavors have the same price.

Secondly, we have four competitors that lie in the same category.

Mars (1/2 litre pack) = Rs.299Twix (1/2 litre pack) = Rs.299Galaxy (1/2 litre pack) = Rs.299Bounty (1/2 litre pack) = Rs.299

Thirdly, walls has also launched a 750ml pack which is based on it’s ice cream stick called Magnum.

Magnum (750 ml) = Rs.175

Among the above mentioned brands Mars, Twix, Haagen Dazs, Bounty, Royal treat and galaxy are imported brands. These brands advertise very little but all of them are high quality brands.

THREATS

Brand Loyalty is the biggest threat we face as a new brand. e.g. (Haagen Dazs has been in the market since a very long time and thus its consumers have a strong brand loyalty towards it.) As the brands we are competing with have become a symbol of quality in the eyes of the consumer, hence registering our brand in the minds of the potential consumers (upper and upper-middle class) is quite a big problem.

Presently existing firms like Haagen Dazs and Royal Treat, Mars e.t.c. have high capital outlays, hence they do not change their prices even if they are suffering from losses.

Items used in manufacturing must not be unacceptable e.g. fats used to produce ice cream should be HALAL as we are only operating in Pakistan.(Like the accusations Walls had to face some time ago)

Another major threat to a new brand like ours would the launch of a major advertising and sales promotion campaign by a competitor at the launch of our product.

R&D can be a potential threat as a new discovery can attract the customers attention tremendously.

OPPORTUNITIES

As only limited flavors of our competitor’s ice creams are available, hence we have the opportunity of introducing new flavors like raspberry, grape, blueberry, peanut butter, lemon cheese cake e.t.c.

We have the opportunity of gaining an edge over all our competitors by emphasizing heavily on advertisement. As advertisements have not been given much importance by the existing brands like Haagen Dazs, Royal Treat e.t.c.

We are introducing new shapes in packaging of ice creams. This concept has not been taken into account by our competitors as they only have their products in simple tubs and cardboard packings.

All the other brands except Royal Treat do not have a 1 litre pack of their product. This can be quite an opportunity for us to capture the needs and wants of families.

OBJECTIVES

To become the market leader in providing top quality, consumer satisfying ice cream.

Try and gain maximum market share Be a sales oriented firm After satisfying consumer needs & making them brand loyal, aim

towards profit-orientation stage. Consistent Quality Gradually reduce our prices

STRATEGIES

PRODUCT:

Besides the mundane schedule of trying to compete through quality we decided that in order to captivate our target audience we needed an edge. Of coarse quality remains a major factor, however we decided to try and alter all available factors of the marketing mix in order to help us to conquer the market.Product variety is something that other brands such as haagen dazs and royal treat etc have, however what they lack is catering for local taste. Hence we decided to not only include unique flavors not yet offered by any other brand, But also to include local or ‘Desi’ flavors as well.Almost all our competitors come in similar plastic or cardboard tub packing. However to give our products a different and unique look we decided to bring in different more attractive heart , star, moon shaped packing as well.Our brand name, Ex is derived from the word ecstasy implying something amazing and may even be related to the slang word for the drug ecstasy implying that the ice cream is so good that its addictive. As far as product is concerned emphasis will also be laid on its features, primarily the fact that our ice cream is rich and creamy.

PROMOTION:

Our basic promotion strategy will revolve around hitting the consumers hard on a Sunday with sudden out burst on both electronic and print media, this will eventually ease out. Hence, basic stress will be on advertising followed by various sales promotion activities such as free samples in leading stores and discounts.PriceAs a special introductory offer price will be offered initially followed by the actual list price intended at Rs.465 which would be cheaper than most of our competitors and yet in the same bracket thereby not making the mistake of making our consumers believe that quality may be being compromised.

DISTRIBUTION:

This will be handled using a simple Producer Retailer Consumer chain as considering a product like ice cream the minimum possible intermediaries should be present. A fleet of refrigerated trucks will be used to supply our product to various leading retailers.

ACTION PROGRAM

Brand Name:“eX`”

USP:“Something to live for”

“Real Fruit Chunks”“Malai Mar k…”

“Fresh Coffee Beans”

Has its origin from Switzerland. The name suggests quality as it is translated in English in the brackets. Our official date for launching this product will be on Sunday may 1st, 2005. Our distribution goal is to target all the major outlets of Lahore which cater to people of category A. The freezers will be provided to the class A stores 2-3 days before the official launch and installment of the ice-creams. Promotional schemes will follow as attractive banners will be put up with free samples available on the first day. The people we aim to cater to, will be situated in the following areas and thus we will be supplying to A class stores near the consumers residency areas. The consumers we aim to attract our situated in the following areas :

1. Defence

2. Gulberg

3. Cantt

4. Model Town

The delivery of the freezers to the stores would be made on 26th -27th of April, 2006. The final checks of delivery would be made by the area sales manager we will allocate for each destination. His job will be to ensure the placements of these capital stocks as well as the final installments of the ice-creams on the 29th April, 2006. We will have one member of our own staff present on each retail store, ensuring that each person will be given a sample of the ice-cream and to represent a good image for the brand

TIME TABLE

WEEK 1 WEEK 2 WEEK 3 WEEK 4

SUN

1st May:

Official LaunchAd in “Sunday Times” worth

Rs20,000.20 sec Ads in

“World Call” for Rs 8667.

Timings 11:00-2:00PM – 4

Ads6:00-11:00PM – 9

Ads

8th May:

Ad in “Sunday Times” worth

Rs20,000.20 sec Ads in

“World Call” for Rs 7333.

Timings11:00-2:00PM – 4

Ads6:00-11:00PM – 7

Ads

15th may:

20 sec Ad in “World Call” for Rs 7333.

Timings11:00-2:00PM – 4

Ads6:00-11:00PM – 7

Ads

22nd May:

Ad in “Sunday Times” worth Rs20,000.

20 sec Ads in “World Call” for Rs 7333.

Timings11:00-2:00PM – 4 Ads6:00-11:00PM – 7 Ads

MON

2nd May:

Ads in “World Call” for Rs 4000.

Timings12:00-3:00PM – 2

Ads8:00-11:00PM – 4

Ads

9th May:


Timings12:00-3:00PM – 2

Ads8:00-11:00PM – 4

Ads

16th May:


Timings12:00-3:00PM – 2

Ads8:00-11:00PM – 4

Ads

23rd May:



TUES

3rd May:


Timings12:00-3:00PM – 2

Ads8:00-11:00PM – 4

Ads

10th May:


Timings12:00-3:00PM – 2

Ads8:00-11:00PM – 4

Ads

17th May:


Timings12:00-3:00PM – 2

Ads8:00-11:00PM – 4

Ads

24th May:

Ads in “World Call” for Rs

4000.Timings

12:00-3:00PM – 2 Ads8:00-11:00PM – 4 Ads

WED 4th May: 11th May: 18th May: 25th May:


Timings12:00-3:00PM – 2

Ads8:00-11:00PM – 4

Ads


Timings12:00-3:00PM – 2

Ads8:00-11:00PM – 4

Ads


Timings12:00-3:00PM – 2

Ads8:00-11:00PM – 4

Ads

Ads in “World Call” for Rs 4000.Timings

12:00-3:00PM – 2 Ads8:00-11:00PM – 4 Ads

THURS

5th May:


Timings12:00-3:00PM – 2

Ads8:00-11:00PM – 4

Ads

12th May:


Timings12:00-3:00PM – 2

Ads8:00-11:00PM – 4

Ads

19th May:


Timings12:00-3:00PM – 2

Ads8:00-11:00PM – 4

Ads

26th May:


12:00-3:00PM – 2 Ads8:00-11:00PM – 4 Ads

FRIDAY

6th May:


Timings12:00-3:00PM – 2

Ads8:00-11:00PM – 4

Ads

13th May:


Timings12:00-3:00PM – 2

Ads8:00-11:00PM – 4

Ads

20th May:


Timings12:00-3:00PM – 2

Ads8:00-11:00PM – 4

Ads

27th May:


12:00-3:00PM – 2 Ads8:00-11:00PM – 4 Ads

SAT

7th May:


Timings11:00-2:00PM – 4

Ads6:00-11:00PM – 7

Ads

14th May:


Timings11:00-2:00PM – 4

Ads6:00-11:00PM – 7

Ads

21st May:


Timings11:00-2:00PM – 4

Ads6:00-11:00PM – 7

Ads

28th May:



TABLE OF CONTENTS : PAGE NO.

Executive Summary………………………………………………………... 1

Situation Analysis………………………………………………………….. 2-21

Consumer & Retailer Surveys……………………………………………. 22-35

Threats & Opportunities………………………………………………….. 36

Objectives…………………………………………………………………… 37

Strategies……………………………………………………………………. 37

Action Programs……………………………………………………………. 38

Time Table………………………………………………………………….. 39-41

PROJECT

Marketing

(Launching a new Product)

Submitted to:Miss Shehla Arifeen

Submitted by:Syed Hassan NasimHassan Chaudhry

Ali QayyumUsman Aizaz

Ali Akber

Final Report Syed Hassan Nasim

Documents

Transcript of Final Report Syed Hassan Nasim