1. MARKETING MANAGEMENT
PROGRAM: BBA
FINAL PROJECT
Submitted to:
Sir Mobin-ul-Haq
Submitted by:
Kamal Ibrahim 14022034020
REMARKS
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2. EXECUTIVE SUMMARY
ARABIAN’S is a local baking company. ARBIAN’S in the market from APRIL 2000.The company
will launch its new product “ARABIAN TASTE” biscuits in OCTOBER 2007.
The ARABIAN’S has a good range of resources in start including finance, Manpower and strong
market of advertisement. ARABIAN’S will not only manufacture biscuits but also having the plan to
produce cakes and other products in future. ARABIAN’S will come in market as market challenger
and will open new ways to have natural and pure taste.
ARABIAN’S new product ARABIAN TASTE will face threats because there is a strong competition
in the market. There is intense competition among the competitors product in the market. ARABIAN
TASTE will launch with pull strategy and our objective is to gain 20% market share within one year.
ARABIAN TASTE’S challenging team make efforts to be the strong brand in the market
. ARABIAN TASTE provides good quality on comparatively low price. This factor will make
ARABIAN TASTE distinguishing from competitors and it will make the strong brand of the market.
ARABIAN TASTE’S consumers and their good relationship and heavy advertising campaign, give
loyal consumer for the promotion and success. Advertising campaign effectively worked that it has
captured the target market. Positioning of brand is very much strong that it will work. Marketing
strategy of ARABIAN TASTE is according to the objective of the company and also helpful to
achieve its objectives. The company can boost up the sale by good advertisement media and also by
providing good quality to maintain its brand uniformity among the user.
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3. Company history:
MR. USMAN SAJJAD baking specialist, experienced a new taste of baked biscuits for the family
get together. His experience was really appreciated by the family members. He was interested in
baking the biscuits with date’s chips for new taste as it was not available in the market. As he
produced the date’s biscuits he realized that he has good skills in developing the biscuits with
original taste. When he launched the date’s biscuits at low level, people emphasis him to produce on
large scale. First he produced the date’s biscuits at his own home than with the passage of time
having good business he launched his own company, named ARABIAN’S.
Company introduction
ARABIAN’S was launched in APRIL 2000; the ARABIAN’S is basically
PRIVATE LIMITED COMPANY. We have sufficient network system of production, delivering, and
to monitor the staff. The company is engaged in producing the best quality baking products. The
basic aim of producing the baked products is to serve the best quality with the maximum purity
having the nutritional factor kept in view.
Organizational structure:
The basic structure of organization is, at the top level there is chairman then managing director, then
general manager, finance manager and marketing manager further brand manager for different
brands and sales managers. Above them they deal with account officer, sale officer and sale
supervisors.
Type of Industry
The industry is basically a baked product-oriented industry. The company has strong investment
power. The initial investment was Rs.1 million. At that time the plant had the capacity to produce
5000,000 packs per year and was planted in industrial development zone which was not so far from
city which helped the manager to communicate with the supervisors easily. It was expected that the
demand for ARABIAN TASTE would come more from city side as compare to rural areas.
In 2003, ARABIN TASTE nation wide BISCUIT sales were 2 million PACKS and by the year 2005,
WE were grown to 3 million PACKS. In 2006, ARABIAN TASTE had plans of extending their
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4. product line and will introduce CAKE with the brand name “ARAIAN SHORTY”. We will further
extend the product line by introducing other baked products like bread, pizza, and bakarhani, with
different recipe. Now these days they have ARABIAN TASTE BISCUITS with high calcium and
full of nutrition’s and presently gaining the market share because of the increase in awareness among
customers regarding health issues.
Product History
Arabian taste was launched in year 2000 and started business at low level from one city Lahore. Due
to its good response from the customers, Company launched country wide in 2003. The ARABIAN
TASTE serves the healthy food with the originality and having maximum purity in it.
Company’s Profile
COMPANY NAME:
ARABIAN’S
Brand Name: “ARABIAN TASTE”
MARKETING PLAN
In marketing plan we are going to cover all aspects of S.O.S.T.A.C.
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5. S SUITATIONAL ANALYSIS
O OBJECTIVES
S STRATEGIES
T TACTICS
A ACTION
C CONTROLLING
SITUATIONAL ANALYSIS
MARKET RESEARCH
Arabian’s has launched new brand in Pakistan which is Arabian taste Biscuits. In Pakistan,
the people are already using to have different biscuits. So, there is new taste to in market with
maximum purity, as the ARABIAN’S has launched the desirable product of the customer the
market has given a favorable response.
SITUATION ANALYSIS
In order to identify and satisfy customer’s needs, every company has to take into consideration its
internal and external situation. In that way, by scanning the company’s environment and by
collecting all the necessary information, a SWOT analysis can be developed. SWOT analysis is
critical for a company, as on one hand it enables it to identify its weaknesses and threats and
therefore to reduce them and on the other hand, to take advantage of its strengths and opportunities.
Strengths and weaknesses are controllable factors that are related to the company, whereas
opportunities and threats are uncontrollable factors such as economic, social etc. that give
information about the industry.
Source: (Westwood, 2002)
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6. In this regard we conduct situation analysis which is mainly revolves around two points which are:
• Internal analysis
• External analysis
INTERNAL ANALYSIS
Vision:
1- Capture the whole market in the baking world.
2- Our vision is to be the leader of best health-caring food products.
3-Tto be a one of the competent leading house of FMCG product
Mission statement:
Since 2000 ARABIAN’S in market with the mission to compete the whole market in producing the
quality product in competitive price with the help of cooperative and experienced staff as to target
the high returns. Our aim is to give the taste with the maximum purity, taste to give the people real
healthy lives.
PROFITABILITY
Arabian’s which is going to start its business in Pakistan. It is newly established company which had
launched biscuits in Pakistan. The brand is profitable because the cost per pack is Rs.1.75 on ticky
packs, Rs.4.5 for half pack while Rs.14.50 for family pack which manufactured in local industry and
its sale price starts on quality basis is Rs.3.00 for ticky pack, Rs.9.00 for half pack and Rs.18.00 for
family pack size in Pakistan.
CUSTOMER LOYALTY
The product biscuit has already developed its worth in the market and also make them customers
loyal. But some companies have attained the more customers’ loyalty such as PEAK FREENS, LU
and BISCONI.
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7. Market is always full of competitors same is the case with ARABIAN’S. But ARABIAN’S product
ARABIAN TASTE has made its position in the market. ARABIAN TASTE has got the customer
loyalty due to its nutritional and maximum purity.
PRODUCT LIFE CYCLE
In order to have a view about Arabian Taste performance in the market lets have a pictorial view that
where the ARABIAN TASTE stands through the product life cycle.
ARABIAN TASTE LIFE CYCLE
`
This graphical view is drafted with the help of complete survey of market.
ARABIAN TASTE diagram shows time on X- axis and sales volume on Y-axis. ARABIAN
TASTE is on the introductory stage which is shown by arrows in the diagram. ARABIAN TASTE
is clearly shown on the graph where it is standing right now it is just in the end stages of introduction
and touches the starting area of growth. ARABIAN TASTE has the bright future as it has got the
market share and made its awareness in very less time.
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Current situation
8. As the product life cycle shows that ARABIAN TASTE is on the introductory stages, so the sales
volume is low and the cost is high. ARABIAN TASTE is showing good results so the profits are not
in negative position but low its awareness is creating by free trial. Distribution cost is high and many
expenses like advertisement to make the product awareness.
EXTERNAL ANALYSIS
MICRO ENVIRONMENT
THE COMPANY-ARABIAN’S:
The company ARABIAN’S is a new company which is going to enterprise the business of FMCG
products type like baked products. ARABIAN’S is engaged in the manufacturing of baked products
but also with the aim to provide the Arabian taste with the maximum purified form and healthy
nutritional food.
COMPETITORS:
There are number of competitors in the baking products as the baking products are very much old
and are used for the many years. ARABIAN’S have also competitors but our product ARABIAN
TASTE has to face the following
SOOPER:
Today the brand of LU, SOOPER is very much popular in the biscuits. SOOPER is actually
capturing the market through the good and mostly fresh quality. SOOPER has basically positioned
itself as healthy food through presenting egg and milk cookies.
• CHOCOLATE CHIP:
CHOCLATE CHIP by BISCONI has also the biggest market share; they are using chocolate chips in
the cookies. it is the new trend in chocolate biscuits. They positioned the CHOCOLATE CHIP as
that its different from others.
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9. • Others
There are a number of biscuits in the market they have made their positions in the market very well.
Others include mainly by LU, and peak freans, KOLSON. LU has many brands like prince, Tuc etc.
PEAK FREANS have butter puff, glory; peanut pick etc and Mayfair have JAM HEARTS etc.
• COMPETITIVE RIVALRY:
The competitive rivalry among FMCG producers has become intense. The competitors constantly
offer new product.
• BUYING POWER:
We have targeted the consumers whose buying power is average. Because we have to increase the
market shares as much as we can. This is the result of the increasing number of independent firms
and the pressure of consumer groups and the regulator.
• POWER OF SUPPLIERS:
FMCG manufacturers competed for market share with significant presence. It was difficult to
introduce the new product in the market. But the ARABIAN TASTE has positioned itself in
consumers mind by its purity and different taste.
• THREAT OF SUBSTITUTES:
The consumer will return to competitors, if ARABIAN TASTE looses its quality.
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10. Since the low price of the biscuits with the same features can be one of the main reasons. For
example, more and more comfortablilty and affordability
• THREAT OF ENTRANT:
In Pakistan the market is open for competition. Cakes & Bakes and Gourmet bakers are local treats
as they are launching baked products, while LU, peakfreans, and KOLSON are countrywide treats
for biscuits in Pakistan.
MACRO ENVIROMENT
ECONOMIC FACTORS
Market requires buying power as well as people. The economic environment consists
of factors that effect consumer purchasing power and spending patterns.
DEMOGRAPHIC FACTORS
The demographic factor does not affect the company’s environment. As age, gender,
occupation etc has nothing to do with it.
TECHNOLOGICAL FACTORS
Technological factors affect the environment of the company positively
because company has introduced modern machines that automatically pack it with imported sealing
and sent it to market. It has also the capacity of producing more than 150,000 packs of biscuits per
day.
POLITICAL FACTORS
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11. Every Govt. tries to provide the public facilities as the best they can do. Our
company is getting benefit from this act as it is showing more practice of consumerism than its
competitors.
In case of consumers protection legislation it will have none negative effect as our company is
environmental friendly organization & care about the health of its customers & communities.
COMPETITIVE FACTORS
Competitive factors also affect the company’s environment because its main
competitor LU is stable in the market but according to our survey Arabian Taste has snatched about
10% market share of LU.
S.W.O.T. ANALYSIS
Situation analysis is also called S.W.O.T Analysis.
S Strengths
W weaknesses
O opportunities
T threats
The SWOT Analysis is an extremely useful tool for understanding and decision making for all
situations in an organization. It provides a good framework for reviewing strategy, position and
direction of a company.
STRENGTHS:-
Strengths are company’s positive points, which help the company to attain the strong position
in the market, which provide the company opportunities to become a better company than its
competitors.
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12. ARABIAN TASTE has following strengths, which show its success.
PRICE
Our product is a priced low then our competitor; price factor is a major issue that gives us the benefit
to build up our self. It also gives an edge with price conscious consumers.
QUALITY
The quality of our product is also strength of the company. Our quality helps us to distinguish us
from our competitors. Dates that is using total different taste, this feature of quality will also help us
to retain customer and to increase sale.
PRODUCT LIFE CYCLE
The life cycle of Arabian Taste is seems to be reaching the introductory stage quickly. We have
contingency plans to keep growing by making new products, targeting additional segments and
adjusting prices.
Technology
Latest technology is used in our industry to be the best in the quality management. As
the ARABIAN’S engineers know that without latest technology we can’t get maximum profit.
Manufacturing plant
We are using our own manufacturing plant to minimize the cost and for the success of the
product as to get high returns.
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13. WEAKNESSES:-
Every company have some weaknesses because no one is perfect in this world, as far as ARABIAN
TASTE is concerned, it also has some weaknesses. By ARABIAN’S has learned from the success
and mistakes of our competitors. We have following weaknesses:
• LACK OF AWARENESS.
In beginning Arabian’s is not yet established a product or image in the market place, whereas
Chocolate Chip or other brands have strong brand recognition. This is an area we will address with
promotion and will tell the consumer about our product. We will motivate people through our
advertisement campaign.
Less experienced staff
Lack of experienced & quality staff management ARABIAN’S is facing many
problems and there is always experienced staff required for the quality management
Lack of capital
As far as planning is concerned ARABIAN’S have plans .Low funds always give
problem in production and fulfilling those plans.
OPPURTUNITIES:-
The ARABIAN’S must use best strengths to take advantages of attractive opportunities in the
environment and from market.
INCREASED DEMAND
ARABIAN’S has the opportunity to penetrate in the market as there is increased in demand of
biscuits. Consumers are increasing day by day and as it is on growing stage it is very beneficial for
the company to target audience by their strategies.
Buying behavior
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14. Pakistan, where consumer is conscious about the health so we can give them quality
products and for price conscious people, price is low
International business
Business can be established to other countries especially in Middle East.
Marketing relationship
Get strong marketing relationship to the clients as well as clients.
Distribution channel
Establish strong and effective distribution channel.
THREATS:-
Political Instability
The political instability can pose a danger in the growth & productivity of the company
Economy
The economic crises in a country may also affect the performance of the company in terms of
sales & profits
New Entrants
Entry of new entrants in the market can be threatening for our newly launched product
DOWNWARD PRESSURE ON PRICING
Increasing competition and market-share strategies are pushing biscuits prices down. Still, our
objective of seeking a 15% market share at the end of 2009
Existing Companies
Existing companies are our competitors in the market. There are so many competitors in the
market.
Loyal Customers
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15. Customer loyalty to other product is very much important. Loyal customers advertise the product
for free of cost as to increase the sale loyal customers are important
OBJECTIVES
To maintain positive and strong growth in every market segment perusing its target market.
To give awareness to 30% target market till the end of 2009.
To make profit 1/3rd
against sales up till 2010.
To take the market share up to 10 to 15% till 2009.
To capture the market share by diversification in its product.
To focusing on customer relationship.
STRATEGIES
These are means through which company’s objectives will be achieved
SEGMENTATION STRATEGY
Market segmentation is the process that marketers use to divide up the market into smaller segments
that can be efficiently addressed.
Markets consist of buyers, and buyers differ in one or more ways. They may differ in their wants,
resources, locations, buying attitudes, and buying practices. Through market segmentation,
companies divide large, heterogeneous markets into smaller segments that can be reached more
efficiently and effectively. In this section, we discuss four important segmentation topics.
Geographic segmentation
Demographic segmentation
Psychographics segmentation
Behavioural segmentation
Geographic segmentation
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16. Geographic segmentation calls for dividing the market into different geographical units such as
nations, regions, states, counties, cities, or even neighborhoods.
Arabian Taste will first launch in Lahore and some other cities. Only the rural areas and small cities
are not our focus.
WORLD REGION:
In all over the world there are many big markets like U.S.A, UK, Africa and Asia but our main
focus at this time only in Asia.
COUNTRY:
There are many countries in Asia like India, Sri Lanka, China etc, but Pakistan is the main
country from where we launch our product.
CITY:
Lahore, Qasur, Gujranwala, Faisalabad, Islamabad, Karachi, Hyderabad, Mirpur khaas,
Sialkot, Peshawar and Multan are the major cities in which we have launched Arabian Taste.
DENSITY:
Normally Urban areas are important for us according to marketing point of view.
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17. DEMOGRAPHIC SEGMENTATION
Demographic segmentation can be defined as dividing the market into groups based on demographic
variables such as age, sex, family size, family life cycle, income, occupation, education,
religion, race, and nationality. Demographic factors are the most popular bases for segmenting
customer groups.
AGE:
Consumer needs and wants change with age. Arabian Taste can use from the age of 8 to old age
people.
FAMILY SIZE
If we divide the family size into three categories that is
Small
Large
Average
In small family size we consider, there are more than two persons exist. In average family size there
are 4 to 6 persons are living but not more than 7 persons.
7 persons living together, is called large family, and Arabian Taste offering family packs also.
OCCUPATION
Our product can be used by businessmen, professionals, government employees,
private employee or any other person as ARABIAN TASTE targets every age
Income
Income segmentation means that dividing a market into different income groups. Arabian Taste can
be used by the income level of Rs.15000 and above
PSYCOGRAPHIC SEGMENTATIONPSYCOGRAPHIC SEGMENTATION
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18. Psychographics segmentation is dividing a market into different groups based on social class,
lifestyle, or personality characteristics.
SOCIAL CLASS
Arabian Taste can use by different social classes for example upper, middle, lower and working
class, but only lower classes are not our target market because they are visibly poverty stricken
and usually out of work.
BEHAVIORAL SEGMENTATION
Behavioral segmentation means that dividing buyers into groups based on their knowledge, attitudes,
uses, or responses to a product. We believe that behavior variables are the best starting point for
building market segments.
OCCASIONAL:
Occasional segmentation is divine of market into groups according to occasions when
buyers get the idea to buy, actually make their purchase, or uses the purchased item.
Arabian Taste can use on regular bases.
BENEFITS:
Benefit segmentation is all about the market into groups for benefits that consumers
seek from the product. Arabian Taste provides health benefits and status benefits
USER STATUS:
Our product can use by potential consumers, which means that those who have a buying power and
they are interested to buy our product. There are two types of consumer, First time user and Regular
user.
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19. READINESS STAGE:
All persons who are aware, informed, interested and intended to buy. These are all our targeting
customers.
ATTITUDE:
Positive, indifferent
TARGET MARKETING STRATEGY
TARGET MARKET:
A group of people for whom the marketer designs the marketing mix is called the target
market.
There are three main factors which cerebrals keeps in mind while selecting the target the
market:
1) Segment size & growth
2) Segment structural attractiveness
3) Company objectives &resources
So-on these bases we target the urban areas of Pakistan.
Our target market is very vast and has a much variation in it. The aim of our company is to
target the all ages of people, semi government and private organizational employees and
professionals are also our targeted market. Also we are focusing on the cafeterias of all the
public and private sector’s, colleges, universities like PCBA Lahore.
In fact the company wants to reform the culture of biscuits prevailing in the market.
Market Positioning
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20. • Product Classifications
Specialty of Product
Consumer products with unique characteristics or brand identification for which a significant
group of buyers is willing to make a special purchase effort
ARABIAN TASTE of ARABIAN’S is classified as purely specialty product as it is the
product with unique characteristics and brand identification for which every group of buyers is
willing to make a special purchase effort. It is also because it involves huge money and intensive
decision making by the customer.
• Product Attributes
Product Quality
The ability of a product to perform its functions; it includes the product’s overall durability,
reliability, precision, and other valued attributes.
Product Features
Features are a competitive tool for differentiating the company’s product from competitors’
products.
The biggest competitive tool for ARABIAN TASTE, which is also the competitive advantage
to the company, for differentiating the product from competitors’ products is the Dates. Dates taste
biscuits are not yet launched by any company in Pakistan So, it’s a great opportunity for ARABIAN
TASTE.
• Benefits offered
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21. Health and Purity
• Usage occasions
– Day to day use, Events, parties
• Users
– Capturing the families, teen-agers, youngsters, and married people.
• Activities
– Arabian taste as the first with dates and purity
• Personalities
– Healthy biscuits with maximum purity.
Over all positioning strategy:
The same for less strategy is to be used by Arabian Taste, as its quality is high and price is
low as compare to competitor
PERCEPTUAL MAP OF ARABIAN TASTE
Perceptual map shows that Arabian taste giving good quality as compare with others. There are
some brands in the market which are giving poor quality in low price, while ARABIAN TASTE
giving good quality along with healthy nutritional aspects
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22. We are surviving because we have launched our product that already exists in market.
ARABIAN TASTE UNDER THE BCG GROWTH SHARE MATRIX
A portfolio-planning method that evaluates a company’s strategic business unit in terms of their
market growth rate & relative market share is known as BCG MATRIX. SBU’s are classified as
star, cash cows, question marks, or dog.
Question mark:-
According to the SWOT analysis ARABIAN TASTE lays under Question mark because it is newly
launched in different cities so it has a less market share and producing less cash.
Push & Pull Strategy
THRI
VING
DIE
SLO
WLY
SURV
IVING
!
DIE
QUIC
KLY
Effective
Ineffective
Efficient Inefficient
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23. Pull Strategy:
We will use the pull strategy, as we are entering into an existing market with some strong
brand names. Having view, we have decided to get directly to the user through our
advertisement channels & convince them to prefer ARABIAN TASTE.
ARABIAN TASTE is the market challenger that exists in the market with natural and different tasteARABIAN TASTE is the market challenger that exists in the market with natural and different taste
with comparatively low price as well as normal market share.with comparatively low price as well as normal market share.
Flanking attackFlanking attack
•• Rather than attacking head on, as a challenger we are going to attackRather than attacking head on, as a challenger we are going to attack
on the competitor’s weak points.on the competitor’s weak points.
•• We are using this strategy because we have sufficient resources asWe are using this strategy because we have sufficient resources as
compare to competitors.compare to competitors.
PULL StrategyPULL Strategy
Demand Interme-
Diaries
Demand
Biscuit
consumer
Marketing
activities
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Choosing an attack against the
competitors
24. COMPETITORS
Types of competitor
There are two types of competitor
Following are the competitors.
PRIMARY COMPETITOR
• Chocolate Chip
SECONDARY COMPETITORS
• Others
Strength And Weaknesses Of Competitors
STRENGTHS
Top of mind
Trust winning
Huge Market Share
WEAKNESSES
Chances of overcharge by retailers
Hired distribution setup
COMPETITIVE ADVANTAGES
• Competitive price.
• Natural taste.
• Biscuit tray.
• Printed price.
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25. • Water proof wrappers.
• Expiry date.
TACTICSTACTICS
Marketing Mix
1-PRODUCT:
From long procedure of product development we have done analysis process to develop a product,
which is not yet launched, and consumer demand some new taste, as there is no taste in market like
ARABIAN TASTE.
It best fits with 4P’s of marketing mix, which are necessary for any product to become successful.
PRODUCT = CUSTOMER’S SATISFACTION
CORE PRODUCT
Arabian taste
The key benefit of our product is to fulfill the demand of something new in market with pure taste of
DATES and give satisfaction, this attribute make it unique and remarkable.
Satisfaction
Its is also its core benefit that it isn’t only fulfill the desire but also give satisfaction to thirst as
DATES fulfill the desire of water also with good health. The differential advantage with competitors
is thirst quench through biscuits. This benefit also makes our product unique and attractive.
ACTUAL PRODUCT
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26. The actual product of ARABIAN’S is ARABIAN TASTE, which is DATES FLAVOURED
BISCUITS with the specific INGREDIENTS.
AUGMENTED PRODUCT
MEDICAL BENEFITS OF ARABIAN TASTE
It is proved medically by research that it is good for health, it has the ability to fulfill the desire of
water and it has so many benefits, in-short good for health. The variety of vitamins, calories and
other elements are the specific concern while manufacturing.
BENEFITS OF PRODUCT:
1. Good for health.
2. It will enhance the functioning of stomach.
3. You don’t get fat.
4. Thirst fulfillment
5. Feel patience
2-PRICE:
“Price is the value which is charge for a product, service, favor, vote etc.” Price is the sum of all the
values that consumer exchange for the benefits of having or using the product. It’s only the source of
revenue from the marketing mix all others (product, place, promotion) are cost.
Strategy:
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27. Arabian’s use penetration pricing strategy because the product is new in the market and usually this
is the most appropriate approach to get the people aware of new product.
As we have many competitors that’s why it is very good strategy to capture the market and to
become the market leader our company set the price.
Pricing Objective:
The objective, which kept in mind before selecting the price, is to capture the maximum market share
and to become the market leader.
How we set price?
There are many factors, which we kept in mind before setting the price. Those are given below:
a) Costs:
o Production cost
o Distribution cost
o Advertisement cost
o Promotion cost
o Administrative cost
b) Cost & price of competitors
c) Estimated demand.
Price selecting method:
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28. We use cost based pricing, in this method we calculate all the costs and then add our profit margin in
the cost. The expected profit margin of Arabian’s is 8.75%, which is good for the newly developed
product.
PRICES
Price of ticki pack =Rs.03.00
Price of half pack =Rs.09.00
Price of family pack =Rs.18.00
DESCRIBING COST OF HALF PACK
MANUFACTURING COST RS. 4
PACKING RS 0.80 PAISA
LABELING RS 0.25 PAISA
BISCUIT TRAY RS 1
TAX RS 1.05
ADVERTISING RS 0.20
TOTAL COST RS 7.30
The most important feature of the product pricing is that as the customer is buying more quantity of
the product he is being benefited more from the gradually decreasing prices.
The more complex matters involving the sales tax and cost of production matters and profit
involvement in the distribution channel and organizational profit taking matter are clearly explained
in the financial sector of this report.
3-PLACE:
DISTRIBUTION CHANNEL
We are using the 3 level of channel distribution involving Whole seller, Distributor and the Retailer.
INTENSIVE DISTRIBUTION
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29. We are following the intensive distribution approach in our delivery of products to the consumers
because market research describes the more market share distribution channel.
POTENTIAL CUSTOMERS
We are adopting intensive distribution system due to a fact that we have a large number of potential
customers.
COVAREGE
We have covered almost all cities of Pakistan, which are developed and suitable for our product. Our
future plans about coverage of our product are the Middle East. Actually the target of Arabian’s is
the whole world (especially the Islamic countries).
ASSORTMENTS
We focus on the urban regions with different strategies, which attract consumer. It is easy to cover
the urban areas but it is difficult to cover all the rural areas, so our main focus is urban areas.
INVENTORY
We have a raw material of two months to avoid any kind of conflicts or difficulties, which
may happen in future. We have production of two months in advance to meet the
requirements of the urgent need. We follow economic order quantity technique.
TRANSPORTATION
We have our own transportation service to cover the all the segment of the Arabian’s. Because the
success of company is also depend on the easy access and cover all the segments. Quick service is
the key point.
4-Promotion
For promotion Arabian Taste is going to launch huge promotional campaigns to get the product
introduced in the market. Now they have started massive promotional campaigns like advertisement,
billboards, and free samples and now they are starting other promotional campaign named.
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30. Promotion strategies:
Usage of print media i.e. printing of posters as well as displaying it and distributing it at
proper places
Advertisement in print media i.e. newspapers
Usage of electronic media i.e. showing the ads on television, about the convenience and
availability
Insertion of leaflets in Sunday newspapers, through hawkers for the distribution to all the
newspaper purchasers.
Usage of e-commerce i.e. launching of website and advertising on web.
.
Product Analysis:
Biscuits
Brand Name:
“ARABIAN TASTE”
Logo: “TASTE IN TIME”
Various offerings:
ARABIAN SHORTY
ARABIAN SALTY
Ingredients:
Flour, hydrogenated vegetable oil, dates chips (sugar, full cream milk powder, butter and Soya
lecithin)
Taste:
Taste of Dates with baked cookies
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31. Quality Statement:
The quality statement of Arabian Taste is “To achieve the customer satisfaction, we are
dedicated to supply the prestigious products of ARABIAN’S highest quality through our dedicated
team work defined by the regulatory parameters.”
Pricing Analysis:
Pricing Method:
Arabian taste is focusing on the Penetration pricing that means Pricing method of new product
introduction to market that consists of pricing low and promoting heavily in order to gain a large
market share.
As we are launching our product from a low price and visibility of product everywhere so that we are
focusing on the “penetration pricing”
Place Analysis:
Placement:
Coverage and Reach:
As the map shows that map is divided into two parts
• Star area
• Square area
STAR AREA: The area, which is shown by star, has covered by ARABIAN’S with our fast
and consistent network of distribution system.
SQUARE AREA: The area shown by square will be cover by ARABIAN’S is in the future
planning’s.
Sales territory analysis:
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32. TEST MARKETING:
After completing our product manufacturing, we give the samples to different people and then we
made analysis of their responses.
When people satisfied from our product then we made packaging shape and give it brand
name.
The brand name is “ARABIAN TASTE”.
We used two techniques:
o SIMULATED TEST MARKETING
o STANDARD TEST MARKETING
We selected these two methods because these methods give the most accurate results about our
product’s feasibility and demand in the market.
The other main reason behind that we are going to launch a new product, so the company always
wants success of the product
The wise decision for the success of the product to get the response of the consumer before
launching
Both the test process and results derived are as below:
SIMULATED TEST MARKETING:
We call 30 to 40 experienced shopkeepers & questioning them about brand familiarity. We created
an artificial environment on selected stores, put our ARABIAN TASTE and also the product of our
competitors and call a panel of customers and shopkeepers there to sell and buy products. First we
make a blind test and get the opinion of consumers and then, we gave them a limited budget in which
they can easily purchase our product and also competitor’s product. Then after this process we call
the selected panel to call the results. We became satisfied when they told us that our sales volume is
satisfactory and up to the mark. Then we meet the customers who were not buying our product and
gave them free samples for consumption and specify them the unique qualities of our products.
In short, ARABIAN TASTE got good results in analysis and according to the results ARABIAN
TASTE is able enough that it could be launched, without the threat of failure in the market.
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33. At the same time the process of standard test marketing was continue, so have a look on the results
derived from that and then we will decide that we are either going to introduce our product at
national level or not.
STANDARD TEST MARKETING:
We selected Lahore, Gujranwala, Islamabad and Karachi for standard test marketing and run a heavy
marketing campaign in these cities. Actually the main purpose behind the selection of these cities
was communication facilities and comparatively average competitor interaction in our work.
We continued our campaign for three months because three months are enough to observe the buying
behavior of the consumer and in this short time period there was no risk that the competitor will
create any trouble for us by developing the product having same features like us.
As we get the results of three months campaign we became happy because the results were not only
positive in nature but also they were favorable more than our expectations.
RESULT:
As results were favorable so company decided that ARABIAN TASTE is demanded for the final
introduction at national level. So we decided to move forward towards our next and the last step in
the process of new product development that is commercialization.
ACTION PLAN
The Arabian’s was introduced in APRIL 2000. Following is the summary of the action Plans we will
do during the first year to achieve our stated objectives.
Arabian’s top management managed the project and will lead the company in the market. Our head
of Departments operate their departments and control the performance of the department. Heads are
responsible for the performance of their departments.
Meeting of the heads held after every accounting period to analyze the actual performance of the
overall company and individual departments. In meeting, efficiency and effectiveness of the
department will be determined. According to the performance of the company step will be taken in
favor of the company and will convey the message to the other staff of the company through memo.
Our finance department controls and monitors the budget of the company. It determines and
estimates the budget for each department according to the needs of the department.
Media plan monitored by marketing manager and him run a campaign of the company for promotion.
Our media campaign will be run on stated media partners. We will run T.V ads 16 days of the month.
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34. Utilities department will be accommodate our staff if they are needed any person or in case of
emergency they will use our installed utilities.
CONTROLLING
We are planning tight to control measures to monitor high quality and provide full customer
satisfaction.
ALLOCATE PERSONNEL:
For the better control the Arabian’s will allocate personnel in the company in following order:
In our company we have different departments. As the above shown in figure, we have design our
market department and their sub departments they are working separately. Market research
department conducted research and survey different modes of the search to analyze and compare our
performance and bring information what customer demands. This department controls and develop
the strategy of the company that when and which strategy should be implemented for both short term
and long term. After planning, our marketing staff will handle the media campaign and control all
matters of campaign. With coordination of our media partners this department will make position in
the audience mind and build the image of ARABIAN TASTE. Sales market staff will assess the sales
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Chief
executive
officer
Advertising sales
promotion staff
Sales manager
for market
segment
Market planning
staff
Market search
staff
Marketing
department
Finance
department
Purchase
department
35. of the company and promote the sales. Sales staff also makes sales promotional strategies to get
maximum sales.
BUDGET MONITORING:
We put an effective control to monitor our company annual budget, which is Rs.100 million. The
finance department provides finance to each department for the promotion, visibility, goodwill,
marketing of ARABIAN TASTE and finance managers will monitor budget directly.
MARKTING PLAN CONTROL
The company has planned to run the campaign on 5 TV channels as they are stated above GEO
ENTERTAINMENT, PTV, INDUS VISION, AAJ, and HUM. Our Advertising sales promotional
staff controls our media plans. We run 3 different times our advertisement on TV. As company has
the objective for the brand awareness according to this objective company has fixed Rs. 30 millions
for media plans for the first year.
TV CHANNELS: GEO ENTERTAINMENT, PTV, INDUS VISION, AAJ, HUM
NEWSPAPER: DAWN, NAWA-I-WAQT, JUNG, AND DIN
BILBOARDS: JAIL ROAD 60(20), MALL ROAD 60(20)
FAISAL TOWN, MODEL TOWN, CHOBURGI
RADIO: FM 106.2, FM 103, and FM 100
UPDATING PLAN:
We will update our plans to meet our objectives to gain the market share up to 20% and to attract the
customers from our competitors. If our any campaign does not give the desired result then our
marketing staff has another plan. Staff will change the timing of ads and may change the channels to
increase awareness. Our market planning department will manage the plans when and which plan
should be executed. It will determine according to the market demand and situation.
MEASURING OBJECTIVES
At the end of first year, Arabian’s will measure its objectives. It will check and answer that where the
company is now. Is company has achieved 20% market shares? Our target is to sale ARABIAN
TASTE 30% of competitor’s sale in one year. When we sell almost 25% in one year then our market
share will be achieve. Our marketing plan having worth that will produce the desired results.
Although company brand awareness that will help in coming years to compete the market.
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