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Marketing Management
Final Project
(Launching a new Product)
Section: B
Presented By:
Sarmad Ameer 104205080
Kamal Ibrahim 104205081
Asad Mushtaq 104205074
Zain bin Umar 104205139
Presented to:
Sir Mobin ul Haque
Date 21/01/13
University of Management & Technology
EXECUTIVE SUMMARY
ENERG Juice Bar is an innovation in Beverages field. This business is all about
different drinks including mix fruit and fresh fruit juices. Juices are already available in
the market in different outlets like Iceland, Heart & Healthy but the difference is that we
are bringing a new idea of energy juices in fresh form in the market.
We have introduced a wide range of fresh and pure juices with different energy boosters
and vitamins. Our main focus is on the improvement of our customer’s health and to
maintain their fitness level. According to the situation of Pakistan, we have come up
with a new idea that people want the healthy juices. That would maintain their energy
level. So in order to fulfill the requirements of all these factors, we have launched energy
booster drinks.
As the climate of Pakistan is mostly hot, so our business has opened a new door for the
customers to quench their thirst. As the drinking juices is not a part of our culture. We
drink water after every meal or in routine. The purpose of this business is that those
people should get benefit by these juices, which would increase their energy level in
their life. If the real fruits juices could be substitute for these synthetic preparations, it
would be a boon to the customers as well as the fruit grower.
We have targeted the customers of every age group but main target is on youngsters,
sports players, professionals and patients because our motto is to target health conscious
people in order to fulfill their energy requirement.
As a result, we can say that this entire overall business plan helped us to groom our
enterpreneual skills. It helped us to analyze different strategies and enabled us to make
all business strategies in future.
Business Description
Form of Business:
The form of business is partnership. There are four partners in our business.
Procedure for Registration:
The procedure of registration of a partnership is comparatively simple. Form-I (Annex-
A) in Punjab while Form-A in Baluchistan, NWFP and Sindh provinces under
Partnership Act 1932, has to be submitted to the Registrar of Firms (see flow chart). All
the partners must sign the application. Form-I / A must be attested and supported by the
following documents:
1. Attested photocopy of partnership deed.
2. Partnership Registration Procedure
3. Original copy of Challan No. 32
4. Attested copies of identity cards of partners
5. Attested Copies of identity cards of witnesses.
Owners / Principals:
Sarmad Ameer
Kamal Ibrahim
Zain bin Umar
Asad Mushtaq
Name of Business:
Business Description:
Our business includes different energy juices which are available in the market but our
business is different from others because we are going to introduce juices bar. This drink
bar includes energy juices with different vitamins and energy boosters. This is first time
in the market that all the energy juices would be available in our outlet.
Product Description:
Our product line includes different fruits with combination and without combination. We
are adding energy boosters and vitamins in fruits to provide healthy juices. These energy
juices will not only provide energy but will also help in controlling different diseases.
Our product line includes different energy juices in three categories
• Mix fruit juices with best vitamins and energy boosters
• Fresh fruit juices with energy boosters
• Juices for diabetic patients
Product Line
Mix fruit juices with best vitamins and energy boosters
Product Name Fruits Energy
Boosters+Vitamines
Carrot with Orange Pulp
+
Vitamin B-Complex
(citrus)
Oranges, Tangerines and
Grapefruit with Pulps
+ +
Muscle Milk
(orange cream)
Apricot with Peach Pulp
+
Fast Twitch
(sour berry)
Mango with Apricot Pulps
+
Muscle Milk Light
(vanilla cream)
Peach, Apple and
Pomegranate + +
Vitamin B-12
(cherry)
Apple with Peach
+
Vitamin B-Complex
(citrus)
Strawberry with Pineapple
+
Muscle Milk Light
(strawberry)
Grapes with Apple
+
Liquid Calcium
Magnesium (orange)
Carrot with Apple
+
Fast Twitch
(sour berry)
Product Line
Fresh fruit juices with energy boosters
Product Name Fruits Energy Boosters +
Vitamins
• Apple Muscle Milk Light
(strawberry)
• Strawberry Muscle Milk Light
(vanilla cream)
• Pineapple
Liquid Multi Colloidal
Minerals
(tasteless and colorless)
• Apricot Liquid Calcium
Magnesium (orange)
• Peach Mineral Wealth (cherry)
• Mango Muscle Milk
(orange cream)
• Grapes Vitamin B-12
(cherry)
• Orange Muscle Milk Light
(chocolate)
• Pomegranate Liquid Multi Colloidal
(tasteless and colorless)
Product Line
Juices for diabetic patients
Product Name Fruits Energy Boosters + Vitamins
Grapes with Apple
+
Fast Twitch
(sour berry)
Apple with Apricot
+
Fast Twitch
(sour berry)
Grape fruit
Fast Twitch
(sour berry)
Peach
Fast Twitch
(sour berry)
Gap Identification
Need:
As juices are already available in the market everywhere. But people want something
different that can provide them energy and make them healthy. Now customer wants
different juices that are fresh as well as energetic. People are getting more sense of their
health so for this purpose they go to different Gyms and Sports Clubs for their fitness. So
there by customers wants something energetic.
Gap:
Now the question is how to find this gap in the market. According to the customer needs
juices are available in the market but they are not providing the required energy for these
activities like Gym and sports. So customer wants to have more energetic juices. As
energy juices are available in the form of tin packs but not in the fresh forms. So
customers’ wants energy juices in fresh forms with different energy boosters and
vitamins.
What we are doing to fill this gap?
What we are doing, we are going to differentiate our juices from our competitors. We are
going to fill that gap by introducing juices with different energy boosters and vitamins.
These juices will not only provide calories but will help in maintaining health and
controlling different diseases. We will also give choice of customization. Customers can
select juices of their own choice. These energy juices will be in fresh form as compared
to our competitors like Red Bull, Energetic. So all this can help us in filling the market
gap.
Marketing Plan
Marketing plan includes the marketing research and analysis and the market strategy.
This would eventually tell us how our product is different from the others. As there are
already competitors in the market, the juices we are introducing would be different from
them through the freshness of the juices and vegetables’ and with boosters we are
including in it. Marketing plan includes different sectors that are as follows:
Industry Analysis
• PEST
• SWOT
PEST ANALYSIS
POLITICAL SITUATION ECONOMIC SITUATION
Political condition of Pakistan is not
satisfactory. Due to political instability,
inflation rate may increase further and due to
this reason, the prices of fruits will go up and it
would increase cost of production. Government
has reduced subsidies and increased taxes, so
every business is being affected by this
decision.
Economic condition of Pakistan is not good
recently. It may affect foreign investment,
which will affect economy and it may increase
inflation rates. It would increase cost of
production. Then there will be low marginal
profits for businesses. If the economy is
unstable, it would eventually collapse the
businesses.
SOCIAL SITUATION TECHNOLOGICAL SITUATION
Change in lifestyle of people can affect our
business. Because trend is changing now. Now
the customers are getting more social to create
relationship like friends, families, professional
linkages etc. Keeping in mind of these changes,
we are customizing the products for our
customers according to their needs.
Technological advancement has changed entire
business environment. Different machines are
being introduced for different purposes like
grinding machines for making juices. New
technology would facilitate in making best
quality juices So technology will help us in
improving our process of production and
improving quality.
SWOT ANAYSIS
Market size and trends
Market size:
If we look towards the business point of view, Lahore is capturing its market towards the
food items. As people getting more and more conscious towards their health and they
want good and healthy food and juices. So for this purpose, we came up with this idea
that people who have more work load, young generation and sports players, they want
more energetic juices.
At initial start-up, our market size is limited because we are just introducing one outlet in
Shapes Gym. So thereby we have to control on quality, freshness, combination of juices,
STRENGTHS WEAKNESS
Fresh juices Availability of raw material in all seasons
Different energy boosters Expiry of fruits
Vitamins like B-12, B-complex Technical skills for process
Mix fruit juices Limited outlets
Juices for diabetic patients Low profit margins at initial stage
Competitive Advantage Analyzing consumer services
OPPURTUNITY THREATS
Expand outlets in different other areas Competitors like Red Bull, Iceland in market
Juices for different parties and events Flexibility of prices in different seasons
Opportunity to offer new juices & flavors Environmental changes can affect production
Can capture the market for home delivery Changing Trends in the market
energy boosters and vitamins in juices. If we want to grow our market size, then we will
have to attract more and more customers through opening different outlets in sports
clubs, gym centers and different medical centre. Our target is to first get stable in the
Lahore market and then to expand further outlets in different other places of Punjab.
Trends:
As nowadays, the trend is changing in different fields like in cold juices. People want
juices but in different form. Youngsters are more passionate towards maintaining their
fitness and they want to have energy for more creativity. Professionals want active
mindset and active physical appearance for working effectively. While players are also
focusing on fitness. So keeping in mind of these changes, our juices will not only boost
the energy of the people but will help them in maintaining health and fitness.
Major Market Trends:
This is modern time and trend is changing day by day. If we talk about the major market
trends, people want some change because of the European advancement. These major
market trends include different variables.
o Fashion
o Customer’s likes & dislikes
Now we would talk about each factor separately.
Fashion:
First of all, fashion is mega trend. It’s changing day by day. Everyday there is some
innovation. So we need to observe this factor. Like take the example of “Village” etc.
Our customer wants different tastes because trend is changing to better products. Now
customer wants different choices in selecting any product. So keeping in mind of that
point of view about customers, we are going to introduce our juices with different taste.
Now customer can have choice in selecting our drink. Customer also wants comfortable
environment, so we are also giving them the facility of outlet. It would not only provide
them fresh environment but also fresh product on time.
Customer Likes & Dislikes:
Now, it’s also important what customer feels about our product and what he likes.
Customer likes and dislikes matters a lot for us and for that purpose we are introducing
different energy boosters and vitamins in juices. In past there was no concept of different
energy boosters juices in fresh form. But now customers can customize juices according
to their own choice.
Growth Potential
After start-up activates and implementing business plan, growth is very important factor.
Growth is achieved by introducing
• More target segments
• Improving product line
• Retaining customers
• Attracting new customers
• Expanding outlets in different areas
• Increasing profit margins
Our business depends upon new innovation with the passage of time. If we would
continue improving and developing different product line, then our business can be
stable and we will lead towards growth. Like take the example of telecom sector U-fone,
every day there is new add on different packages. Due to product development strategy it
is growing day by day.
Barriers to Growth
There can be certain barriers that can create problem in success of our business. These
factors would not only decrease profit margins but would also affect growth. These
barriers are as follows:
• Competitors
• Limited Outlets
• Economic instability
• Increase in expenditure
• Change in trends
Competitor’s Analysis
There is huge competition in the market regarding juices. Competition is of two types
Product Description:
Our product line includes three main categories of juices
 Mix Fruit juices
 Fresh Fruit Juices
 Juices for patients
Product Differentiation:
Our product differentiates from our competitors in two ways
• Addition of energy boosters in juices
• Addition of vitamins in juices
Direct Competitors Indirect Competitors Substitutes
Ice Land Red Bull Coffee tea & company
Heart & Healthy Energetic Masoom’s cafe
Mailee Fresher Lazzur Cafe
Ice Berg Minute Aid Gloria Jeans
Fresh Iceland Nestle Moods cafe
• Sugar free Juices for heart & diabetic patients
Customer Profile:
Our main customers are of four types
• Youngsters
• Professionals
• Sports Players
• Patients
While if we look at our competitors, they have targeted overall customers. They didn’t
focus on these parts separately.
Pricing:
Our product price varies from Rs. 110 to Rs.300. The customers have an option of
customization. They can either drink juices with energy boosters or with vitamins
separately or they can have combination of both energy boosters and vitamins in juices.
If we compare our prices with our competitors like Heart & Healthy in Shapes Gym, the
prices vary from Rs.130 to Rs. 250. So it means that there is great difference of prices if
we look at quality and quantity. Because they are not adding energy boosters and
vitamins in their juices. So same prices as of our competitors, we are adding different
boosters and vitamins. As a result, we are having competitive edge over competitors.
Marketing/Advertisement:
Our marketing plan is also different from our existing competitors. Because we are
focusing on
 Above the Line
• Below The Line
We are using below the line advertisement strategy. According to our budget, we are
using brochures to advertise our products. We are starting new business and right now
we don’t have that much budget, so we are using this below the line strategy. We are
also marketing through billboards in Liberty Market. These marketing strategies would
help customer for more awareness. As we are targeting Shapes in Lahore only, so that’s
why we are marketing via broachers, billboards instead of TV and radio ads. As more
and more customers are conscious about the different brand products, so thereby we
have to be very specific upon our products and marketing strategies. Thereby, we have to
be more affective towards our advertisement so that we can convince our target
customers towards our product. In this strategy, we are focusing on
• Broachers
• Internet
Market segmentation
A market segment is a sub-set of a market made up of people or organizations with one
or more characteristics that cause them to demand similar product and/or services based
on qualities of the products. As we are new in the market so we are dealing with the
energetic juices. Our market segmentation in our initial stage is those people who require
more energy and are more health conscious. Market segmentation is dividing the whole
market into different segments according to the customer needs and wants. It’s basically
includes group of customers who have similar needs and wants. There are three major
segments that are given below:
 Geographic Segmentation
 Demographic Segmentation
 Behavioral Segmentation
Geographic Segmentation
It’s basically dividing the market according to geographic area nation, state, region,
countries, cities. Our target area is the capital of Punjab that is Lahore. So considering
our expenses we are just opening one outlet right now.
• Shapes gym in Gulberg III
Demographic Segmentation
It includes age, income, gender, education, occupation and social class etc.
Age:
We have divided into four major segments regarding age.
• Youngsters
• Sports players
• Professional
• Patients
Youngsters:
As the youngsters are more passionate towards their work and their activities so they
need more energy. And the energy boosters will help the youngsters to make them active
and the weakness they will feel can be gain through the energy booster juices and in
these juices not only the boosters will help them, the vitamins that are added that would
also generate there energy level like the carrot and the apple juice. Any other benefit of
having it as youngsters are nowadays not taking the proper diet so these juices will fulfill
their energy level and maintain their health.
Sports players:
As the players want the fitness in their respective game, so their energy level is as well
more as compare to the ordinary people. There by we are introducing these energy juices
in order to fulfill and maintain that energy level which fulfill them. As in different fields
of games the basic thing the players of any game is to maintain their energy. So our
juices are providing with them with energy juices which includes boosters and the
vitamins which is beneficial for the players.
Age 18-25
Products Both simple and mix fruit juices
Energy Booster (Heavy) Muscle milk (1120g)
Professionals:
As professional people want to maintain their active and their mind set too, so our
product would help them in making it through the energy juices. As they want their
physical and mental to be active and the stress they have for their work load that should
compensate them through the energetic juices. Our product would effectively satisfy in
helping them, to be active towards their work
Patients:
The patients have to be concern towards their health too. as nowadays the ratio of the
diabetes are increasing like more people have diabetes , blood pressure and many more,
Age 18-40
Products Both simple and mix fruit juices
Energy Booster (Light) Muscle milk (750g)
Age 25 & onwards
Products Both simple and mix fruit juices
Energy Booster Fast Twitch (920g)
so we have come up with juices that are planned for the diabetic patients. This would
maintain their health and fitness level. In our initial stage our marketing segmentation is
done towards these people. As our concern is more towards these people and our product
line is towards these people.
Gender:
Both males and females are targeted.
Income:
As our target is middle class and the upper middle class so there salary range should be
at least
• Minimum 20,000 and above
Occupation:
• Students
• Professional
Social class:
• Middle class
• Upper middle class
Behavioral Segmentation
Age 18 & onwards
Products Special limited juices
Energy Booster Fast Twitch (920g)
In behavior segmentation customers are divided according to their information about the
product, attitude and response towards the product. There are different segments in
behavioral segmentation which we have taken in consideration:
• Behavioral occasions
• Benefits
• Usage rate
• Loyal customers
• Readiness stage
Behavioral occasions:
This product is not only for any specific occasion. It can be used at any time whenever
customer wants.
Benefits:
Major benefit of our product is fresh drinks that provide energy.
Usage rate:
Usage rate for this drink is medium.
Loyalty status:
We want to increase loyalty of customers with our service.
Readiness stage:
Our customer is unaware of the product so we have made marketing plan to aware more
and more customer about our product.
Target market selection and distribution
“Energ juice bar” aims is to expand his market by promoting different juices with
boosters and vitamins in mix fruit juices and simple juices. Our survey has indicated that
there are no other outlets which are providing these kinds of juices. Our products are
targeting fitness and healthy life. We are using boosters and vitamins for those people
who are health conscious.
Product Specialization:
Here we are using “Product Specialization” pattern of target market selection. In this
pattern, we are focusing on product specialization. There is no such product available in
the market. So this is our differentiation from others. We are selling these different kinds
of juices to several market segments. We want to create strong reputation in this specific
product in the market. For that purpose we need to up-to-date them with new energy
boosters, technology and strategy to improve our product. So that we can provide our
customers with high standards of quality of our products and services. We are targeting
the middle class people and the upper class people because they are the ones who
nowadays more conscious towards their health and fitness level.
Consumer demographics
In consumer demographic, we would focus on age, income, marital status, and many
others factors for our targeted people. Because we are targeting the youngsters, sports
players, professionals and the patients.
Age range:
• Youngsters 18 to 22 years
• Sports players 18 to 40 years
• Professional 25 to 40 years
• Patients 20 + years
Income range:
Considering the income level those people can easily buy our products whose salary is
above Rs.20, 000. For them it is easy to have our products as it would not cost them too
much. They would prefer to buy our products and as compared to other competitors.
Gender:
It is both for the male and the female. As we are opening our outlet in shapes, there are
both genders in shapes. Both male and female can enjoy energy drinks.
Marital status:
• Single
• Married
• Youngsters
• Sports players
Occupation:
• Students
• Professionals
• Sport players
Location boundaries:
Right now we are just opening one outlet in Lahore shapes gym. As in the success of our
business we would open more branches like in M.M Alam road and in D.H.A. but right
now our main focus is to open our outlet in Shapes gym only because the health
conscious and fitness people join the gym to maintain their fitness.
Average purchase:
Through our research we have seen that in shapes gym, like “heart & healthy”, the
people do have the intake of the juices at least one time daily. As customers feel thirst
and eventually will go for the fresh juices or the plan water. So, considering this factor,
we have come up that if they want the fresh juices then why not with some energy
boosters and vitamins, which would fulfill their thirst and would also, nourish their
energy as well.
Frequency purchase:
As we are opening our outlet in shapes, the frequency of having the juices is more
according to our research. The people mostly drink juices at least one time in a day. So
in this frequency purchase, our outlet would provide them with more energy just in one
time.
Consumer psychographics
Lifestyle:
The life style of the people is getting more and more changed. As everyone is looking
forward for their fitness and to have a good healthy life. Looking forward with the trend
going on, we have come up with the Energ juice bar, where the customers will find
energy and healthy juices. As fresh juices are available in different ways in different
places but we have come across to make it more different and fulfill the energy level that
is being required by the customers. Like take the example of youngsters, they want to be
more advance and energetic in this modern era. So keeping in mind of this factor, we are
introducing according to customer needs.
Business demographics
Number of Businesses:
Right now we are opening only one outlet in our initial stage considering our
expenditures. Because firstly we have to capture the market through customer
satisfaction.
Location of Business:
Location right now is the shape gym opposite to the health & heart. They are providing
with the fresh juices only and we are adding up with the energy boosters and the
vitamins.
Size of Business:
The size of the business is small at initial stage. A small business that is privately owned
and operated, with a small number of employees and relatively low volume of sales.
Purchasing Decision:
As this business includes 4 partners. So every individual would participate in purchasing
decision. Manager is being authorized to look the operation level and as well the
distribution of the fruits, vegetables and especially upon the energy boosters and the
vitamins.
Business psychographics
As this business is new in the market with innovative juices and the energy with fresh
flavors of the fruits and vegetables. Because nowadays, the fitness level and healthy life
is becoming more essential part of modern life. So this business is having more
importance regarding this new creative generation.
Product Description
Value Proposition:
Value proposition is; before there was no outlet for energy boosters drinks. So we are coming with this
new idea to provide people with enjoyable environment. There are the additional things that we
are adding in our juices to make it more valuable in the market. We are making
commitment of pure fresh, quality, and energy drinks to our customers as compared to
our competitors.
USP:
USP is unique selling preposition that we are launching a product which no one else is
giving in the market in fresh form. These are some unique proposition of our products.
• Fresh Juices
• Energy Boosters
• Vitamins for healthy life
• Relaxed entertaining environment
Pricing Strategy
There are different pricing methods but we are targeting on
 Cost plus mark-up strategy
 Psychological Pricing Strategy
We are following our cost structure to settle the prices of our Juices according to cost
plus mark-up strategy. The reason is that we are adding value in our Juices in the form of
Energy Boosters and Vitamins. This added value makes the prices of our juices higher
than our competitors. So we will fix our prices according to costs.
Sales & Distribution Strategy
Distribution Strategy:
The distribution strategy of our business is B2C, Business to Consumers. We will
directly serve Fresh Juices to our customers.
Distribution (Direct Vs Indirect):
We are selecting this strategy for distribution of our products.
“Direct Distribution”
We are selling the products of sugarcane directly to the customers. It’s our retail centre
where customers can enjoy our drinks in this outlet.
Retailing:
Retailing means selling goods and services directly to consumer. We are selling our
drinks directly to consumer in our outlet. There is no concept of wholesalers or
distributor in our business. Because we are providing fresh drinks in that specific area at
the spot. So we have removed intermediaries and we are just getting sugarcane from our
suppliers directly and directly selling sugarcane drinks to the consumer in our outlet.
Channels of Distribution:
Channel of distribution means that which ways we are using for selling our product.
There are three ways of channels of distribution.
 Exclusive
 Selective
 Intensive
From these three ways, we are using one channel of distribution that is
“Selective Channel of Distribution”
Selective channel means that we have introduced only one outlet in selected area. Our
product would be available only in those selective areas. After targeting Shapes, we will
introduce these products in other areas through selective channel of distribution.
Promotion/Advertising Strategy
Advertising Strategy:
There are two strategies for advertisement.
• Above The Line
• Below The Line
We are using below the line advertisement strategy. There are two main things in it
• Broachers
• Internet
According to our budget, we are using brochures to advertise our products. It is for sure
that we are going to operate our juice bar in the health centers. So our target market will
be the members of that particular health center. What actually we would be requiring to
do is that we will print our three folding brochures with the details of the products we are
offering. They will be then placed on the counter of our juice bar, reception and inside
the sectors of the health club. For our printing of brochures, we will be making deal with
the Patanga Press at Shadman Market. The press will provide us with 1000 three folding
brochures at a cost of 2500 PKR.
Other promotion strategy is that we will be advertising our brand through Facebook.com.
Facebook offers two options for advertising. One is CPC (Cost per click) and the other
one is CPM (Cost per thousand impressions).
Suppliers
Name of Supplier: GNC, Al-Hafeez Towers, M.M.Alam Road (Lahore)
Terms and Conditions:
• We will decide the prices of all the fruits with the supplier.
• We will make a contract with GNC about the prices of the vitamins and energy
boosters.
• Timely delivery of the raw material i-e fruits and in best condition.
• In any case of unavailability, the supplier will be supposed to inform us before a
day.
Trade Discount
• If we purchase any fruit in bulk quantity, how much discount the supplier would
offer us.
• How much discount in price they will offer us if it is the season of any particular
fruit.
Exclusive Product Rights
• Our Company’s Logo “ ENERG JUICE BAR”
• Our Suppliers for Fruits, Vitamins and Energy Boosters.
Backup Supplier
Our backup supplier is Health from Nature at M.M Alam Road Lahore.
Location
As we are considering the Lahore market so thereby we are just focusing more
towards those people who are more conscious about their health. We are opening
first outlet in Shapes Gymnasium. Because there people come for their fitness level
and our energy juice would help them to boost their energy.
As our main focus is Lahore and the people of Lahore are conscious of their health
and they want to have good and energetic juices and food. So thereby the most
appropriate place we have found in Lahore is the Shapes Gymnasium.
Logistics
Logistics is a channel of the supply chain which adds the value of time and place utility.
As we are dealing with the food item so thereby our main focus is towards the material
handling.
Material Handling:
• We will handle our fruits very hygienically
• Use of plastic gloves while making all the fresh juices
• We would add energy boosters or vitamins by measuring spoons properly
• Keep clean our juicers, grinding machines properly after the making of every
juice.
• We will serve our fresh juices in clean disposable glasses to our customers.
MANAGEMENT
1. Legal Structure:
Our business fall under the Provincial Government so we will follow their rules and
regulations. The legal registration of our business will be done by the Provincial
Government to make our business authentic and legal.
2. Human Resource Management
Human resource management (HRM) is the strategic and consistent approach to the
management of an organization's most valued assets - the people working there who
individually and collectively contribute to the achievement of the objectives of the
business.
In simple words, HRM means employing people, developing their capacities, utilizing,
maintaining and compensating their services in tune with the job and organizational
requirement.
Organizational Structure:
Our business structure is flat because we are in partnership. There are no such hierarchy
levels and we all will be carrying out our activities ourselves. But later on when we will
expand our business, our staff will increase like we will hire a branch manager, an
accountant and some workers.
Staffing Plan:
1. Partners:
• Sarmad Ameer
• Kamal Ibrahim
• Zain bin Umar
• Asad Mushtaq
Salary package: As we are working ourselves so initially we have decided to give every
partner the basic salary of 3,000 PKR. And after that the profit earned will be shared in a
way that 60% will be shared among the members and remaining 40% will be the
retained earnings. This 40% will be re-invested in our business. The table below shows
the estimated profit for each partner.
Month Profit Margin 60% Retained Share Of Each Partner
November 21,150 12,690 8,460 2,538
December 16,650 12,488 4,163 2,498
January 14,400 10,800 3,600 2,160
February 9,900 7,425 2,475 1,485
March 43,650 32,738 10,913 6,548
April 56,850 42,638 14,213 8,528
May 68,100 51,075 17,025 10,215
June 79,350 59,513 19,838 11,903
July 79,350 59,513 19,838 11,903
August 68,100 51,075 17,025 10,215
September 45,600 34,200 11,400 6,840
October 34,350 25,763 8,588 5,153
Job Description:
• Asad Mushtaq is for Juice Making.
• Kamal Ibrahim and Zain bin Umar are for purchasing of the Fruits, Energy
Boosters and Vitamins.
• Sarmad Ameer will work as an accountant and he will deal with all the Cash
transactions.
Job Specification:
At the time of hiring new staff after the expansion of our business, these will be the
qualifications required for our new staff and workers:
• Accountant will have to be a BBA graduate and he should have at least 1-2 years
of experience. He should have complete and strong grip on accounting concepts
so that he should manage his tasks effectively.
• The Purchaser should have good communication and bargaining skills. He
should know how to bring the supplier in his trust and favor. Also he should have
the understanding and ability to get the best raw material. His qualification
should be at least intermediate.
• The Juice Maker should be intermediate and have good skills in making juices
and also have good communication skills with the customers.
CRITICAL RISKS
Potential Problems:
• The first problem is that we don’t find a reliable supplier
• Availability of the fruits all the time
• Due to energy crisis in Pakistan, we will have to bare the cost of UPS.
• Unstable Economic conditions which causes the overall revenues of our business
• Weak brand recognition because the customers would not be aware of our juices
and our brand.
Obstacles and risks:
• Employee turnover
• Since our business is new, we will have less experience of success rates and
revenue generation.
• Competition is also increasing with the starting of new business so we have the
risk of having any competitor.
• At start, our product penetration would be low.
Contingency plans:
• We have a backup supplier which is Health from nature
• We will purchase off seasonal or unavailable fruits from Makro
• UPS is our solution for handling energy crisis
• Advertising will be our backup to create our product recognition
• Contract with the workers will save us from employee turnover
• Strong marketing and advertising strategy
Exit Strategy:
In case of financial loss or any other loss, we have an Exit Strategy to escape or avoid
these conditions. The exit strategy which we are choosing for our business is an
Acquisition. Because we can negotiate price with the acquirer and they convince us with
a higher worth. If we get multiple acquirers, involve in a bidding war, we will prefer that
acquirer who will give us the highest bid. If we would give the preference/value to an
acquirer, they may pay far more than which we are expecting than anyone else.
Milestone Schedule:
Manpower loading:
• Asad Mushtaq is for Juice Making
• Kamal Ibrahim and Zain bin Umar are for purchasing of the Fruits, Energy
Boosters and Vitamins
• Sarmad Ameer will work as an accountant and he will deal with all the Cash
transactions.
CONCLUSION
Bringing change is always inspiring and a unique kind of fun. We also have the same
feelings by launching our innovative idea of opening ENERG Juice Bar for the first
time in Pakistan. All the activities carried out are full of learning and a new experience.
Our aim is to energize people’s lives with our juices and refresh them with different
refreshing tastes. This project will help us in improving our entrepreneurial skills. We
will be able to start and manage our businesses in future. The team work also made us
understand that strength is always a key factor in starting a new venture and preceding it
successfully.

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MM Final Project

  • 1. Marketing Management Final Project (Launching a new Product) Section: B Presented By: Sarmad Ameer 104205080 Kamal Ibrahim 104205081 Asad Mushtaq 104205074 Zain bin Umar 104205139 Presented to: Sir Mobin ul Haque Date 21/01/13 University of Management & Technology
  • 2. EXECUTIVE SUMMARY ENERG Juice Bar is an innovation in Beverages field. This business is all about different drinks including mix fruit and fresh fruit juices. Juices are already available in the market in different outlets like Iceland, Heart & Healthy but the difference is that we are bringing a new idea of energy juices in fresh form in the market. We have introduced a wide range of fresh and pure juices with different energy boosters and vitamins. Our main focus is on the improvement of our customer’s health and to maintain their fitness level. According to the situation of Pakistan, we have come up with a new idea that people want the healthy juices. That would maintain their energy level. So in order to fulfill the requirements of all these factors, we have launched energy booster drinks. As the climate of Pakistan is mostly hot, so our business has opened a new door for the customers to quench their thirst. As the drinking juices is not a part of our culture. We drink water after every meal or in routine. The purpose of this business is that those people should get benefit by these juices, which would increase their energy level in their life. If the real fruits juices could be substitute for these synthetic preparations, it would be a boon to the customers as well as the fruit grower. We have targeted the customers of every age group but main target is on youngsters, sports players, professionals and patients because our motto is to target health conscious people in order to fulfill their energy requirement. As a result, we can say that this entire overall business plan helped us to groom our enterpreneual skills. It helped us to analyze different strategies and enabled us to make all business strategies in future.
  • 3. Business Description Form of Business: The form of business is partnership. There are four partners in our business. Procedure for Registration: The procedure of registration of a partnership is comparatively simple. Form-I (Annex- A) in Punjab while Form-A in Baluchistan, NWFP and Sindh provinces under Partnership Act 1932, has to be submitted to the Registrar of Firms (see flow chart). All the partners must sign the application. Form-I / A must be attested and supported by the following documents: 1. Attested photocopy of partnership deed. 2. Partnership Registration Procedure 3. Original copy of Challan No. 32 4. Attested copies of identity cards of partners 5. Attested Copies of identity cards of witnesses. Owners / Principals: Sarmad Ameer Kamal Ibrahim Zain bin Umar Asad Mushtaq Name of Business:
  • 4. Business Description: Our business includes different energy juices which are available in the market but our business is different from others because we are going to introduce juices bar. This drink bar includes energy juices with different vitamins and energy boosters. This is first time in the market that all the energy juices would be available in our outlet. Product Description: Our product line includes different fruits with combination and without combination. We are adding energy boosters and vitamins in fruits to provide healthy juices. These energy juices will not only provide energy but will also help in controlling different diseases. Our product line includes different energy juices in three categories • Mix fruit juices with best vitamins and energy boosters • Fresh fruit juices with energy boosters • Juices for diabetic patients
  • 5. Product Line Mix fruit juices with best vitamins and energy boosters Product Name Fruits Energy Boosters+Vitamines Carrot with Orange Pulp + Vitamin B-Complex (citrus) Oranges, Tangerines and Grapefruit with Pulps + + Muscle Milk (orange cream) Apricot with Peach Pulp + Fast Twitch (sour berry) Mango with Apricot Pulps + Muscle Milk Light (vanilla cream) Peach, Apple and Pomegranate + + Vitamin B-12 (cherry) Apple with Peach + Vitamin B-Complex (citrus) Strawberry with Pineapple + Muscle Milk Light (strawberry) Grapes with Apple + Liquid Calcium Magnesium (orange)
  • 6. Carrot with Apple + Fast Twitch (sour berry) Product Line Fresh fruit juices with energy boosters Product Name Fruits Energy Boosters + Vitamins • Apple Muscle Milk Light (strawberry) • Strawberry Muscle Milk Light (vanilla cream) • Pineapple Liquid Multi Colloidal Minerals (tasteless and colorless) • Apricot Liquid Calcium Magnesium (orange) • Peach Mineral Wealth (cherry) • Mango Muscle Milk (orange cream) • Grapes Vitamin B-12 (cherry)
  • 7. • Orange Muscle Milk Light (chocolate) • Pomegranate Liquid Multi Colloidal (tasteless and colorless) Product Line Juices for diabetic patients Product Name Fruits Energy Boosters + Vitamins Grapes with Apple + Fast Twitch (sour berry) Apple with Apricot + Fast Twitch (sour berry) Grape fruit Fast Twitch (sour berry) Peach Fast Twitch (sour berry) Gap Identification Need: As juices are already available in the market everywhere. But people want something different that can provide them energy and make them healthy. Now customer wants different juices that are fresh as well as energetic. People are getting more sense of their
  • 8. health so for this purpose they go to different Gyms and Sports Clubs for their fitness. So there by customers wants something energetic. Gap: Now the question is how to find this gap in the market. According to the customer needs juices are available in the market but they are not providing the required energy for these activities like Gym and sports. So customer wants to have more energetic juices. As energy juices are available in the form of tin packs but not in the fresh forms. So customers’ wants energy juices in fresh forms with different energy boosters and vitamins. What we are doing to fill this gap? What we are doing, we are going to differentiate our juices from our competitors. We are going to fill that gap by introducing juices with different energy boosters and vitamins. These juices will not only provide calories but will help in maintaining health and controlling different diseases. We will also give choice of customization. Customers can select juices of their own choice. These energy juices will be in fresh form as compared to our competitors like Red Bull, Energetic. So all this can help us in filling the market gap. Marketing Plan Marketing plan includes the marketing research and analysis and the market strategy. This would eventually tell us how our product is different from the others. As there are already competitors in the market, the juices we are introducing would be different from them through the freshness of the juices and vegetables’ and with boosters we are including in it. Marketing plan includes different sectors that are as follows:
  • 9. Industry Analysis • PEST • SWOT PEST ANALYSIS POLITICAL SITUATION ECONOMIC SITUATION Political condition of Pakistan is not satisfactory. Due to political instability, inflation rate may increase further and due to this reason, the prices of fruits will go up and it would increase cost of production. Government has reduced subsidies and increased taxes, so every business is being affected by this decision. Economic condition of Pakistan is not good recently. It may affect foreign investment, which will affect economy and it may increase inflation rates. It would increase cost of production. Then there will be low marginal profits for businesses. If the economy is unstable, it would eventually collapse the businesses. SOCIAL SITUATION TECHNOLOGICAL SITUATION Change in lifestyle of people can affect our business. Because trend is changing now. Now the customers are getting more social to create relationship like friends, families, professional linkages etc. Keeping in mind of these changes, we are customizing the products for our customers according to their needs. Technological advancement has changed entire business environment. Different machines are being introduced for different purposes like grinding machines for making juices. New technology would facilitate in making best quality juices So technology will help us in improving our process of production and improving quality.
  • 10. SWOT ANAYSIS Market size and trends Market size: If we look towards the business point of view, Lahore is capturing its market towards the food items. As people getting more and more conscious towards their health and they want good and healthy food and juices. So for this purpose, we came up with this idea that people who have more work load, young generation and sports players, they want more energetic juices. At initial start-up, our market size is limited because we are just introducing one outlet in Shapes Gym. So thereby we have to control on quality, freshness, combination of juices, STRENGTHS WEAKNESS Fresh juices Availability of raw material in all seasons Different energy boosters Expiry of fruits Vitamins like B-12, B-complex Technical skills for process Mix fruit juices Limited outlets Juices for diabetic patients Low profit margins at initial stage Competitive Advantage Analyzing consumer services OPPURTUNITY THREATS Expand outlets in different other areas Competitors like Red Bull, Iceland in market Juices for different parties and events Flexibility of prices in different seasons Opportunity to offer new juices & flavors Environmental changes can affect production Can capture the market for home delivery Changing Trends in the market
  • 11. energy boosters and vitamins in juices. If we want to grow our market size, then we will have to attract more and more customers through opening different outlets in sports clubs, gym centers and different medical centre. Our target is to first get stable in the Lahore market and then to expand further outlets in different other places of Punjab. Trends: As nowadays, the trend is changing in different fields like in cold juices. People want juices but in different form. Youngsters are more passionate towards maintaining their fitness and they want to have energy for more creativity. Professionals want active mindset and active physical appearance for working effectively. While players are also focusing on fitness. So keeping in mind of these changes, our juices will not only boost the energy of the people but will help them in maintaining health and fitness. Major Market Trends: This is modern time and trend is changing day by day. If we talk about the major market trends, people want some change because of the European advancement. These major market trends include different variables. o Fashion o Customer’s likes & dislikes Now we would talk about each factor separately. Fashion: First of all, fashion is mega trend. It’s changing day by day. Everyday there is some innovation. So we need to observe this factor. Like take the example of “Village” etc. Our customer wants different tastes because trend is changing to better products. Now customer wants different choices in selecting any product. So keeping in mind of that point of view about customers, we are going to introduce our juices with different taste. Now customer can have choice in selecting our drink. Customer also wants comfortable environment, so we are also giving them the facility of outlet. It would not only provide them fresh environment but also fresh product on time.
  • 12. Customer Likes & Dislikes: Now, it’s also important what customer feels about our product and what he likes. Customer likes and dislikes matters a lot for us and for that purpose we are introducing different energy boosters and vitamins in juices. In past there was no concept of different energy boosters juices in fresh form. But now customers can customize juices according to their own choice. Growth Potential After start-up activates and implementing business plan, growth is very important factor. Growth is achieved by introducing • More target segments • Improving product line • Retaining customers • Attracting new customers • Expanding outlets in different areas • Increasing profit margins Our business depends upon new innovation with the passage of time. If we would continue improving and developing different product line, then our business can be stable and we will lead towards growth. Like take the example of telecom sector U-fone, every day there is new add on different packages. Due to product development strategy it is growing day by day. Barriers to Growth There can be certain barriers that can create problem in success of our business. These factors would not only decrease profit margins but would also affect growth. These barriers are as follows:
  • 13. • Competitors • Limited Outlets • Economic instability • Increase in expenditure • Change in trends Competitor’s Analysis There is huge competition in the market regarding juices. Competition is of two types Product Description: Our product line includes three main categories of juices  Mix Fruit juices  Fresh Fruit Juices  Juices for patients Product Differentiation: Our product differentiates from our competitors in two ways • Addition of energy boosters in juices • Addition of vitamins in juices Direct Competitors Indirect Competitors Substitutes Ice Land Red Bull Coffee tea & company Heart & Healthy Energetic Masoom’s cafe Mailee Fresher Lazzur Cafe Ice Berg Minute Aid Gloria Jeans Fresh Iceland Nestle Moods cafe
  • 14. • Sugar free Juices for heart & diabetic patients Customer Profile: Our main customers are of four types • Youngsters • Professionals • Sports Players • Patients While if we look at our competitors, they have targeted overall customers. They didn’t focus on these parts separately. Pricing: Our product price varies from Rs. 110 to Rs.300. The customers have an option of customization. They can either drink juices with energy boosters or with vitamins separately or they can have combination of both energy boosters and vitamins in juices. If we compare our prices with our competitors like Heart & Healthy in Shapes Gym, the prices vary from Rs.130 to Rs. 250. So it means that there is great difference of prices if we look at quality and quantity. Because they are not adding energy boosters and vitamins in their juices. So same prices as of our competitors, we are adding different boosters and vitamins. As a result, we are having competitive edge over competitors. Marketing/Advertisement: Our marketing plan is also different from our existing competitors. Because we are focusing on  Above the Line • Below The Line We are using below the line advertisement strategy. According to our budget, we are using brochures to advertise our products. We are starting new business and right now we don’t have that much budget, so we are using this below the line strategy. We are also marketing through billboards in Liberty Market. These marketing strategies would
  • 15. help customer for more awareness. As we are targeting Shapes in Lahore only, so that’s why we are marketing via broachers, billboards instead of TV and radio ads. As more and more customers are conscious about the different brand products, so thereby we have to be very specific upon our products and marketing strategies. Thereby, we have to be more affective towards our advertisement so that we can convince our target customers towards our product. In this strategy, we are focusing on • Broachers • Internet Market segmentation A market segment is a sub-set of a market made up of people or organizations with one or more characteristics that cause them to demand similar product and/or services based on qualities of the products. As we are new in the market so we are dealing with the energetic juices. Our market segmentation in our initial stage is those people who require more energy and are more health conscious. Market segmentation is dividing the whole market into different segments according to the customer needs and wants. It’s basically includes group of customers who have similar needs and wants. There are three major segments that are given below:  Geographic Segmentation  Demographic Segmentation  Behavioral Segmentation Geographic Segmentation It’s basically dividing the market according to geographic area nation, state, region, countries, cities. Our target area is the capital of Punjab that is Lahore. So considering our expenses we are just opening one outlet right now. • Shapes gym in Gulberg III Demographic Segmentation It includes age, income, gender, education, occupation and social class etc.
  • 16. Age: We have divided into four major segments regarding age. • Youngsters • Sports players • Professional • Patients Youngsters: As the youngsters are more passionate towards their work and their activities so they need more energy. And the energy boosters will help the youngsters to make them active and the weakness they will feel can be gain through the energy booster juices and in these juices not only the boosters will help them, the vitamins that are added that would also generate there energy level like the carrot and the apple juice. Any other benefit of having it as youngsters are nowadays not taking the proper diet so these juices will fulfill their energy level and maintain their health. Sports players: As the players want the fitness in their respective game, so their energy level is as well more as compare to the ordinary people. There by we are introducing these energy juices in order to fulfill and maintain that energy level which fulfill them. As in different fields of games the basic thing the players of any game is to maintain their energy. So our juices are providing with them with energy juices which includes boosters and the vitamins which is beneficial for the players. Age 18-25 Products Both simple and mix fruit juices Energy Booster (Heavy) Muscle milk (1120g)
  • 17. Professionals: As professional people want to maintain their active and their mind set too, so our product would help them in making it through the energy juices. As they want their physical and mental to be active and the stress they have for their work load that should compensate them through the energetic juices. Our product would effectively satisfy in helping them, to be active towards their work Patients: The patients have to be concern towards their health too. as nowadays the ratio of the diabetes are increasing like more people have diabetes , blood pressure and many more, Age 18-40 Products Both simple and mix fruit juices Energy Booster (Light) Muscle milk (750g) Age 25 & onwards Products Both simple and mix fruit juices Energy Booster Fast Twitch (920g)
  • 18. so we have come up with juices that are planned for the diabetic patients. This would maintain their health and fitness level. In our initial stage our marketing segmentation is done towards these people. As our concern is more towards these people and our product line is towards these people. Gender: Both males and females are targeted. Income: As our target is middle class and the upper middle class so there salary range should be at least • Minimum 20,000 and above Occupation: • Students • Professional Social class: • Middle class • Upper middle class Behavioral Segmentation Age 18 & onwards Products Special limited juices Energy Booster Fast Twitch (920g)
  • 19. In behavior segmentation customers are divided according to their information about the product, attitude and response towards the product. There are different segments in behavioral segmentation which we have taken in consideration: • Behavioral occasions • Benefits • Usage rate • Loyal customers • Readiness stage Behavioral occasions: This product is not only for any specific occasion. It can be used at any time whenever customer wants. Benefits: Major benefit of our product is fresh drinks that provide energy. Usage rate: Usage rate for this drink is medium. Loyalty status: We want to increase loyalty of customers with our service. Readiness stage: Our customer is unaware of the product so we have made marketing plan to aware more and more customer about our product. Target market selection and distribution “Energ juice bar” aims is to expand his market by promoting different juices with boosters and vitamins in mix fruit juices and simple juices. Our survey has indicated that
  • 20. there are no other outlets which are providing these kinds of juices. Our products are targeting fitness and healthy life. We are using boosters and vitamins for those people who are health conscious. Product Specialization: Here we are using “Product Specialization” pattern of target market selection. In this pattern, we are focusing on product specialization. There is no such product available in the market. So this is our differentiation from others. We are selling these different kinds of juices to several market segments. We want to create strong reputation in this specific product in the market. For that purpose we need to up-to-date them with new energy boosters, technology and strategy to improve our product. So that we can provide our customers with high standards of quality of our products and services. We are targeting the middle class people and the upper class people because they are the ones who nowadays more conscious towards their health and fitness level. Consumer demographics In consumer demographic, we would focus on age, income, marital status, and many others factors for our targeted people. Because we are targeting the youngsters, sports players, professionals and the patients. Age range: • Youngsters 18 to 22 years • Sports players 18 to 40 years • Professional 25 to 40 years • Patients 20 + years Income range:
  • 21. Considering the income level those people can easily buy our products whose salary is above Rs.20, 000. For them it is easy to have our products as it would not cost them too much. They would prefer to buy our products and as compared to other competitors. Gender: It is both for the male and the female. As we are opening our outlet in shapes, there are both genders in shapes. Both male and female can enjoy energy drinks. Marital status: • Single • Married • Youngsters • Sports players Occupation: • Students • Professionals • Sport players Location boundaries: Right now we are just opening one outlet in Lahore shapes gym. As in the success of our business we would open more branches like in M.M Alam road and in D.H.A. but right now our main focus is to open our outlet in Shapes gym only because the health conscious and fitness people join the gym to maintain their fitness. Average purchase:
  • 22. Through our research we have seen that in shapes gym, like “heart & healthy”, the people do have the intake of the juices at least one time daily. As customers feel thirst and eventually will go for the fresh juices or the plan water. So, considering this factor, we have come up that if they want the fresh juices then why not with some energy boosters and vitamins, which would fulfill their thirst and would also, nourish their energy as well. Frequency purchase: As we are opening our outlet in shapes, the frequency of having the juices is more according to our research. The people mostly drink juices at least one time in a day. So in this frequency purchase, our outlet would provide them with more energy just in one time. Consumer psychographics Lifestyle: The life style of the people is getting more and more changed. As everyone is looking forward for their fitness and to have a good healthy life. Looking forward with the trend going on, we have come up with the Energ juice bar, where the customers will find energy and healthy juices. As fresh juices are available in different ways in different places but we have come across to make it more different and fulfill the energy level that is being required by the customers. Like take the example of youngsters, they want to be more advance and energetic in this modern era. So keeping in mind of this factor, we are introducing according to customer needs. Business demographics Number of Businesses: Right now we are opening only one outlet in our initial stage considering our expenditures. Because firstly we have to capture the market through customer satisfaction. Location of Business:
  • 23. Location right now is the shape gym opposite to the health & heart. They are providing with the fresh juices only and we are adding up with the energy boosters and the vitamins. Size of Business: The size of the business is small at initial stage. A small business that is privately owned and operated, with a small number of employees and relatively low volume of sales. Purchasing Decision: As this business includes 4 partners. So every individual would participate in purchasing decision. Manager is being authorized to look the operation level and as well the distribution of the fruits, vegetables and especially upon the energy boosters and the vitamins. Business psychographics As this business is new in the market with innovative juices and the energy with fresh flavors of the fruits and vegetables. Because nowadays, the fitness level and healthy life is becoming more essential part of modern life. So this business is having more importance regarding this new creative generation. Product Description Value Proposition: Value proposition is; before there was no outlet for energy boosters drinks. So we are coming with this new idea to provide people with enjoyable environment. There are the additional things that we are adding in our juices to make it more valuable in the market. We are making commitment of pure fresh, quality, and energy drinks to our customers as compared to our competitors. USP: USP is unique selling preposition that we are launching a product which no one else is giving in the market in fresh form. These are some unique proposition of our products.
  • 24. • Fresh Juices • Energy Boosters • Vitamins for healthy life • Relaxed entertaining environment Pricing Strategy There are different pricing methods but we are targeting on  Cost plus mark-up strategy  Psychological Pricing Strategy We are following our cost structure to settle the prices of our Juices according to cost plus mark-up strategy. The reason is that we are adding value in our Juices in the form of Energy Boosters and Vitamins. This added value makes the prices of our juices higher than our competitors. So we will fix our prices according to costs. Sales & Distribution Strategy Distribution Strategy: The distribution strategy of our business is B2C, Business to Consumers. We will directly serve Fresh Juices to our customers. Distribution (Direct Vs Indirect): We are selecting this strategy for distribution of our products. “Direct Distribution” We are selling the products of sugarcane directly to the customers. It’s our retail centre where customers can enjoy our drinks in this outlet. Retailing:
  • 25. Retailing means selling goods and services directly to consumer. We are selling our drinks directly to consumer in our outlet. There is no concept of wholesalers or distributor in our business. Because we are providing fresh drinks in that specific area at the spot. So we have removed intermediaries and we are just getting sugarcane from our suppliers directly and directly selling sugarcane drinks to the consumer in our outlet. Channels of Distribution: Channel of distribution means that which ways we are using for selling our product. There are three ways of channels of distribution.  Exclusive  Selective  Intensive From these three ways, we are using one channel of distribution that is “Selective Channel of Distribution” Selective channel means that we have introduced only one outlet in selected area. Our product would be available only in those selective areas. After targeting Shapes, we will introduce these products in other areas through selective channel of distribution. Promotion/Advertising Strategy Advertising Strategy: There are two strategies for advertisement. • Above The Line • Below The Line We are using below the line advertisement strategy. There are two main things in it • Broachers
  • 26. • Internet According to our budget, we are using brochures to advertise our products. It is for sure that we are going to operate our juice bar in the health centers. So our target market will be the members of that particular health center. What actually we would be requiring to do is that we will print our three folding brochures with the details of the products we are offering. They will be then placed on the counter of our juice bar, reception and inside the sectors of the health club. For our printing of brochures, we will be making deal with the Patanga Press at Shadman Market. The press will provide us with 1000 three folding brochures at a cost of 2500 PKR. Other promotion strategy is that we will be advertising our brand through Facebook.com. Facebook offers two options for advertising. One is CPC (Cost per click) and the other one is CPM (Cost per thousand impressions). Suppliers Name of Supplier: GNC, Al-Hafeez Towers, M.M.Alam Road (Lahore) Terms and Conditions: • We will decide the prices of all the fruits with the supplier. • We will make a contract with GNC about the prices of the vitamins and energy boosters. • Timely delivery of the raw material i-e fruits and in best condition. • In any case of unavailability, the supplier will be supposed to inform us before a day. Trade Discount • If we purchase any fruit in bulk quantity, how much discount the supplier would offer us. • How much discount in price they will offer us if it is the season of any particular fruit.
  • 27. Exclusive Product Rights • Our Company’s Logo “ ENERG JUICE BAR” • Our Suppliers for Fruits, Vitamins and Energy Boosters. Backup Supplier Our backup supplier is Health from Nature at M.M Alam Road Lahore. Location As we are considering the Lahore market so thereby we are just focusing more towards those people who are more conscious about their health. We are opening first outlet in Shapes Gymnasium. Because there people come for their fitness level and our energy juice would help them to boost their energy. As our main focus is Lahore and the people of Lahore are conscious of their health and they want to have good and energetic juices and food. So thereby the most appropriate place we have found in Lahore is the Shapes Gymnasium. Logistics Logistics is a channel of the supply chain which adds the value of time and place utility. As we are dealing with the food item so thereby our main focus is towards the material handling. Material Handling: • We will handle our fruits very hygienically • Use of plastic gloves while making all the fresh juices • We would add energy boosters or vitamins by measuring spoons properly • Keep clean our juicers, grinding machines properly after the making of every juice.
  • 28. • We will serve our fresh juices in clean disposable glasses to our customers. MANAGEMENT 1. Legal Structure: Our business fall under the Provincial Government so we will follow their rules and regulations. The legal registration of our business will be done by the Provincial Government to make our business authentic and legal. 2. Human Resource Management Human resource management (HRM) is the strategic and consistent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. In simple words, HRM means employing people, developing their capacities, utilizing, maintaining and compensating their services in tune with the job and organizational requirement. Organizational Structure: Our business structure is flat because we are in partnership. There are no such hierarchy levels and we all will be carrying out our activities ourselves. But later on when we will expand our business, our staff will increase like we will hire a branch manager, an accountant and some workers. Staffing Plan: 1. Partners: • Sarmad Ameer • Kamal Ibrahim
  • 29. • Zain bin Umar • Asad Mushtaq Salary package: As we are working ourselves so initially we have decided to give every partner the basic salary of 3,000 PKR. And after that the profit earned will be shared in a way that 60% will be shared among the members and remaining 40% will be the retained earnings. This 40% will be re-invested in our business. The table below shows the estimated profit for each partner. Month Profit Margin 60% Retained Share Of Each Partner November 21,150 12,690 8,460 2,538 December 16,650 12,488 4,163 2,498 January 14,400 10,800 3,600 2,160 February 9,900 7,425 2,475 1,485 March 43,650 32,738 10,913 6,548 April 56,850 42,638 14,213 8,528 May 68,100 51,075 17,025 10,215 June 79,350 59,513 19,838 11,903 July 79,350 59,513 19,838 11,903 August 68,100 51,075 17,025 10,215 September 45,600 34,200 11,400 6,840 October 34,350 25,763 8,588 5,153 Job Description: • Asad Mushtaq is for Juice Making. • Kamal Ibrahim and Zain bin Umar are for purchasing of the Fruits, Energy Boosters and Vitamins. • Sarmad Ameer will work as an accountant and he will deal with all the Cash transactions. Job Specification: At the time of hiring new staff after the expansion of our business, these will be the qualifications required for our new staff and workers: • Accountant will have to be a BBA graduate and he should have at least 1-2 years of experience. He should have complete and strong grip on accounting concepts so that he should manage his tasks effectively.
  • 30. • The Purchaser should have good communication and bargaining skills. He should know how to bring the supplier in his trust and favor. Also he should have the understanding and ability to get the best raw material. His qualification should be at least intermediate. • The Juice Maker should be intermediate and have good skills in making juices and also have good communication skills with the customers. CRITICAL RISKS Potential Problems: • The first problem is that we don’t find a reliable supplier • Availability of the fruits all the time • Due to energy crisis in Pakistan, we will have to bare the cost of UPS. • Unstable Economic conditions which causes the overall revenues of our business • Weak brand recognition because the customers would not be aware of our juices and our brand. Obstacles and risks: • Employee turnover • Since our business is new, we will have less experience of success rates and revenue generation. • Competition is also increasing with the starting of new business so we have the risk of having any competitor. • At start, our product penetration would be low.
  • 31. Contingency plans: • We have a backup supplier which is Health from nature • We will purchase off seasonal or unavailable fruits from Makro • UPS is our solution for handling energy crisis • Advertising will be our backup to create our product recognition • Contract with the workers will save us from employee turnover • Strong marketing and advertising strategy Exit Strategy: In case of financial loss or any other loss, we have an Exit Strategy to escape or avoid these conditions. The exit strategy which we are choosing for our business is an Acquisition. Because we can negotiate price with the acquirer and they convince us with a higher worth. If we get multiple acquirers, involve in a bidding war, we will prefer that acquirer who will give us the highest bid. If we would give the preference/value to an acquirer, they may pay far more than which we are expecting than anyone else. Milestone Schedule: Manpower loading: • Asad Mushtaq is for Juice Making
  • 32. • Kamal Ibrahim and Zain bin Umar are for purchasing of the Fruits, Energy Boosters and Vitamins • Sarmad Ameer will work as an accountant and he will deal with all the Cash transactions. CONCLUSION Bringing change is always inspiring and a unique kind of fun. We also have the same feelings by launching our innovative idea of opening ENERG Juice Bar for the first time in Pakistan. All the activities carried out are full of learning and a new experience. Our aim is to energize people’s lives with our juices and refresh them with different refreshing tastes. This project will help us in improving our entrepreneurial skills. We will be able to start and manage our businesses in future. The team work also made us understand that strength is always a key factor in starting a new venture and preceding it successfully.