Pakistan is a very culturally and ethically diverse country. Pakistan has a very high population for its size. It is the 6 th largest country in the world in terms of population with a population of 181,086,078 in 2010. Pakistan’s population has grown at an immense rate, with just under 60 million in 1960 to over 180 million in 2010. That makes the rate of population increase of 24% per decade. TARGET COUNTRY
OUR TARGET CITY Lahore is the 27 th largest city in the world with a population of 5433495 in 2010. It has one of the highest urbanization rates in the world. Lahore controls 12.7% of the total population in Pakistan, and has a large industrial and consumer orientated market. When compared to competitive Cities its current rate of 9 million can compete Well with cities with even larger economies
THE PEOPLE Although Pakistan is considered a third world country the average persons wage has increased by 54% since 1990. Along with China and India it has one of the highest growth rates in wages so the average person can now buy better consumer orientated goods like our product The manufacturing sector where our product emerges has the highest growth of over 200% since 1951. It is a great opportunity for investors to invest in our product
TARGET AUDIENCE Our product is aiming most of its sales at the younger market. Our main age group is from 8-13 years. . The target audience will also reflect our marketing strategies. . After interviewing teenagers at HKB we conducted a survey that over 74% of the 230 people who took it, said that they want a new type of chocolate bar. . Our aim is to create awareness through different promotional techniques where the majority of this age group hang out: i.e: paintball arenas, malls, parks etc. Results of the Survey. 74% WANT A NEW BAR 20% SATISFIED 6% NOT SURE
OUR PRODUCT . A new type of chocolate that is new, fresh, and creates a whole new image for the chocolate bar . Great quality with competitive pricing. First chocolate bar in Pakistan to be somewhat projected to a certain age group. . A chocolate bar that has energy inducing molecules inside it that can give the energy you need to go all day and it won’t destroy your body afterwards. . First chocolate in Pakistan to be made of all organic materials. No fat educing chemicals are put into the chocolate . It will meet the needs of 74% of the population that want something new in the market that is healthy as well as people are becoming more aware of the way they take car of their bodies
USP The first type of chocolate bar in Pakistan which gives energy to the body. The chocolate contains special oxidant chemicals found mainly in pure cocoa that supply energy to the body and also help cardiovascular illness. It is the first type of locally made healthy chocolate bar so that puts it above the competition as all the others are imported and will be sold for a higher price, and will also contain lots of sugar and other chemicals that will increase fat, and clogging.
ESAGEES PRICES Diet Dark Cadbury Light Mars Snickers Brand 170 155 140 125 110 95 80 65 50 35 20 0 RS ESAJEES PRICES OF DIFFERENT DIET CHOCOLATES
MARKETTING OBJECTIVES Marketing objects for our product include: *Increasing Sales: Our firm needs to utilize the USP to increase sales. The growth in demand for a cheap chocolate that offers less fat and more energy can be used to gain a monopoly of sorts over the competing companies that import and raise prices. *Increasing Market Share: When sales increase so will the share of the market, and knowledge over the market share can be used to reduce or increase prices. *Increasing Product Awareness: Through proper means of advertising that appeal mostly to the target group like Radio and TV advertising knowledge of a high energy chocolate that your mom will let you eat would inevitably increase sales. *Gaining A Unique Selling Point: Our unique selling point is that we offer a mix of health and energy, both at a competitive price which no other local manufacturer offers. Utilizing the USP will send us away from competitors and we will increase profits.
CUSTOMER OR PRODUCT ORIENTATION? Product orientation won’t be used for the chocolate bar marketing as since there are so many competing franchises in Pakistan it is too risky to produce a product and convince people to buy it. Customer orientation would be the best for our chocolate as we did market research to see that there was a need in the market for a growing youth class, including others, that wanted a cheap and healthy chocolate that also offers a kick of adrenaline once in a while Examples of customer orientation that could be used to market this chocolate are: . Placing surveys in the sweets section of super markets where they try to find out if there is a need in the market. . Sending letters to take surveys regarding products and in turn giving them a free chocolate bar before it is available to the mass public
BUSINESS FUNCTIONS All these areas along with the marketing aspect, help to create a successful business. Business functions Accounting and Finance . Records money spent making the chocolates . Records how much profit or loss the company is making . Well tell if there is room to expand for the company Wont let the business go to far in expanding that it goes bankrupt Marketing . Tells if the people want a new type of chocolate . Gives the owner a strategy to market the new chocolate or if to re market the old one . All the pricing goes through marketing and it will be a key aspect in creating awareness through advertising People (HRM) . If the company is growing it will tell how many more employees are needed or how many need to be laid off . Motivates the workers. “A happy worker is a good worker.” . Trains new employees to become aware of how the company runs . Tries to get in people who have worked in other chocolate companies Production . Tells how many chocolates are being made in a given period . Maintains the factory . Maintains the stock and over sees it going to the retailers . Produces goods and remains or tries to remain at a constant rate of production
TYPES OF MARKET SEGMENTATION Since our product is a chocolate we cant use every single way to divide the market as some aren’t for consumer products. Here are the different types of market segmentation that can be used: *Geographical: People love to eat chocolate when they are cold and this can also be used as an energy gainer for people who work out during the summers. The price would be higher in these areas *Lifestyle: People who are concerned about there health but who cant go on a diet can eat this chocolate. The market can be divided into over weight people and gymnasts, both can benefit from it, *Age: This type of chocolate is attracted towards the more younger type of people from our main age group:8-13 years *Behavior: Peoples spending patterns can be altered as it is a cheaper and tastier alternative to the health bars that stores sell for double or triple the amount.
NICHE OR MASS MARKETING This chocolate isn’t focused on one group and will send all its marketing efforts towards that group. In Pakistan only 38% of the pop. The chocolate can be bought by any one at any age so the chocolate will be under mass marketing and although the costs for that will be more high, it will create a larger opportunity for it to settle in the market. Market segmentation will allow us to break it down into smaller groups so we can focus our advertising to that group but over all the product is focused on every one ADVANTAGES: CREATE LARGE OPPORTUNITY FOR GROWTH, AND GREATER CHANCE TO COME BACK AFTER A SETBACK DISADVANTAGES: LESS OPPORTUNITY TO GROW, CAN ONLY SELL A LIMITED AMOUNT AND IT DEPENDS ON THE TASTE OF THOSE PEOPLE 56% LARGE CORP. USE MASS MARKETTING 44% Large Corp. Use niche marketing
MARKET GROWTH Market growth can be both good and bad for this firm. Market growth will tell if the firm can survive in the market when it changes. These are some of the disadvantages of the market growth for the chocolate product. *The Nature of the Product: The chocolate bar might grow at a later time then when the market is increasing depending on the nature of the chocolate. When the market increases more competition can come reducing sales *Changes in Tastes and Fashions: People might grow old of the chocolate bar. Peoples tastes can change as newer products keep coming up because of the growth in the market which will impact sales by any where from 20% to 50%.s *Standard of Living: If the market is increasing it is probably happening because the standard of living is increasing. More people means that a small firm can’t up with the dramatic increase in demand. *Social and Demographic Changes: If people have more leisure time or in this case more people start to eat healthy food the market will increase but the opposite can also happen causing the firms profits to go down dramatically
BOSTON MATRIX This form of marketing will help us understand where we stand as a firm. What step we are on. Are we a dog or a star? This will also give us an idea of how much we need to approve. PRODUCT: BITE CHOCOLATE BAR. DOG: Where the product will be at the beginning. The company needs to bring out quick marketing strategies such as Guerilla marketing to revive the product or there is no use keeping the product in the market If how ever they can make the product rise there is lots of room for growth. During this time the chocolate has little customers and probably no one is aware of it PROBLEM CHILD: The chocolate keeps going into ups and downs. There is a lot of opportunity in the market for the firm to grow but they just can’t seem to take advantage of the product and its USP If it isn’t revived it could once again become a dog in the market and that would create a chance of a firm having to scrap it. RISING STAR: . The highest possible point for the firm. Every body wants Bite chocolate and we are making a large profit over every one. The firm has created a large market growth over the chocolate market or has created its own market which it runs The chocolate firm would want to think about what to do with the money Cash Cow: . Now sales have settled. . Money is still coming but at a smaller and constant amount. . Bite chocolate is now going to look for a new product to send through the Boston Matrix Promotion is still a very important part to keep the sales of the product constant
WHAT WILL MAKE IT A GOOD PRODUCT These three parts of a good product will give us an idea of how well the firm will survive in the market: *Function: Can the chocolate do what it is supposed to do which is provide energy while providing a healthy snack. If so it will succeed. *Aesthetics: Does the chocolate look nice and how will they react to it. The first thing the customer will look at is the design or wrapping of the chocolate and if it isn’t done well, it could mean many sales lost. *Economic Production: The chocolate company needs to market the product and offer competitive pricing but it still needs to see if it is making money on the product.
PRODUCT LIFE CYCLE The product life cycle of this chocolate will show how the product will survive and how long it will survive in the market. The firm can plan accordingly to what will come next. It is has just been introduced into the market 1 st year The product is growing steadily and the profits are coming in 2-3 years The product has evened out and now sales are less but constant 6-10 It becomes old and starts to decline. The firm needs to know what to do. Whether to scrap it or make a new one 11-any years PRODUCT LIFE CYCLE FOR BITE CHOCOLATE
PRICING DETAILS BASED ON THE FACTORS OF PRODUCTION. COST TO MAKE PRODUCT: 15RS PER BAR SOLD TO WHOLESALERS: 20 RUPEES PER BAR SOLD TO RETAILERS: 25 RUPEES PER BAR Although the cost of the chocolate is high for a locally made chocolate it it still better then the diet and energy chocolates available here which all start from 50RS. The price will benefit the customer, consumer and most of all us, THE PRODUCER.
DISTRIBUTION CHANELS Since this is a consumer product, the chocolate has to pass through many different channels so a direct consumer customer relationship isn’t available. Although having more links means adding a higher price it will still be significantly lower then the other competitors and each new link will also create more business for the company DISTRIUBTION CHANEL: PRODUCER WHOLESALER RETAILER CUSTOMER The producer will be the chocolate company its self. The company will make the chocolates at a price and then sell at a profit to the resellers which in Lahore in Makro and Metro. The wholesaler will sell the chocolate at a cheap price, but in a bulk amount so it can be sent to stores, retailers, offices, clubs etc which will increase awareness about the chocolate The retailer is the place most of the people will go. Places like this also have a lot of promotion campaigns that increase sales without the producer having to do anything The customer. Every body loves chocolate. The customers will tell the brand if their product is selling, why is it not selling, and what it needs to do to keep on selling. The customers will literally break the firm if they don’t like the product
ADVERTISING METHODS *Firstly since the firm is starting out the company doesn’t have enough money to handle Above-The-Line Pricing methods. Only one above the line method can be used and that is 1 TV commercial. Here are Below-The-Line Methods that can be used. *Buy 1 Get 1 Free: A cheap way by retailers or candy stores that can market the product by giving an extra chocolate so that people can keep coming or even better, they can give it to their friends who will in turn come and increase sales *Introductory Offers: Wholesaler like Macro can give large bulk offers where the introductory price is slashed at first so that more and more stores buy more stock. This creates awareness and creates a larger range of customers that increase sales. (*Sponsorship: The chocolate represents health and energy. Sponsoring fitness events and such will create awareness and will also make the product seem unique because here a fitness event, the last thing that any one would think to see is a person selling chocolates
GRAPH Growth % MENS STORE SALES INCREASE Introductory Offers Magazine Advertising 2004 2004 2010 2010 Years 100 90 80 70 60 50 40 30 20 10 0
CONCLUSION In conclusion we would say that this was our marketing presentation. We chose a topic that is very likely to be followed by future entrepeneurs.All of the marketing methods and definitions show if the product will be successful from the market. If we have learned anything during this, it is for a product to become a rising star it has to be NEW CHEAP AND ESPECIALLY DIFFERENT.