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report on launching of new product

  2. 2. 33 Table of Content of Project Report • INTRODUCTION • Objectiveofstudy • ExecutiveSummery • Methodology • Recommended MarketingStrategy – Segmentation &TargetMarket • Recommended MarketingMix • Theindustrialscenario • DirectCompetition  OtherbrandofPakistan • MarketingObjectives • MarketingResearch • Finding • Marketingtestingplan • FutureOutlook
  3. 3. 33 ACKNOWLEDGEMENT It gives us immense pleasure to present this project on lounging a new chocolate product title “market research & lounging of product”. Wetaketheprivilegetoconvey our gratitude to those who have co-operated, supported, helped and suggested us to accomplish the project work & I would like to extend my sincere gratitude to our Professor NASIR ALI KAHN for his guidance
  4. 4. 33 Objective of study • To get familiar with the Pakistani marketing strategies • To view the segments being targeted by upcoming product in the market • Up to what extent do the public respond toward the new product? • To prepare a marketing plan for capturing our target market • To be a relevant guide for any brand launch in Pakistan.
  5. 5. 33 Introduction Our Company AASRR is going to introduce a new product with the reference of Quality, royal brand with rich flavor and customized product for Consumers Pakistan is on its way to move and so are the markets in Pakistan. Apart from economic changes, Pakistan is also facing social changes in life style, hobbies etc. New fashion, food habits of Pakistanis are changing rapidly. Chocolate, which were believed to kid’s preference, are now being consumed by teenagers, and adults.
  6. 6. 33 Despite Pakistan’s confectionery chocolate industry has enjoyed an emerging and growing trend in the recent past yet its size and growth pattern has been far inconsequential compared to other countries of Asia-pacific region. The industry has grown with an average annual rate of 6.5 to 7.5 % during 2002-2008. Domestic brands dominate the market accounting for more than 85% of total value sales of the industry. The chocolate market in Pakistan increased at a compound annual growth rate of 6.6% between 2004 and 2009.
  7. 7. 33 Executive Summary Our product start up with customization process AASRR believe in Innovation Innovation is what which doesn’t only attract our regular customers but also helps us in capturing new customers we focused on; • Innovation in packaging and quality • Innovation in chocolate flavors Customization Our expert presentation team will ensure that your items are designed to your specifications, and will work with your organization from start to finish to make sure all your needs are met. From gift-boxes to congratulatory platters, we are happy to provide you with samples that can be customized, or to design
  8. 8. 33 something completely new and exclusively for you or you can also use it as a Corporate Gifts that Elevate your corporate gift-giving with sophisticated, gourmet confections that bear your company's colors or logo. Instead of handing out calendars or planners to your peers and clients, come to AASRR for elegantly wrapped chocolates that suit a variety of occasions. Weddings & Special Occasions An elegantly wrapped giveaway is an expression of warmth and appreciation. AASRR chocolate box will leave an everlasting impression of your special day and make your guests
  9. 9. 33 feel truly appreciated. Let our designers make you a box customized to your event's design theme Celebrate With Choice Giving a gift is just as important as getting one. We at AASRR realize that, which is why for us, putting together the right present for the right person goes beyond simply wrapping boxes. The rustle of tissue paper, festive strands of ribbon and elegant packaging: those are just as important as the quality of our confectionary. Our gift boxes are works of art - our chocolate is fantastic, and our presentation is even better for any tradition even in Christmas and Eid ATTRACTIVE PACKAGING AASRR believe that most of the consumer not only attract to buy their chocolate but the thing is that, the consumer attract toward their packaging and the
  10. 10. 33 way chocolate are presented with unique wrapping and box’s style Boxed Chocolate, which includes assortments of different, individual bite-sized chocolates packaged in a box or carton and often used as gift Chocolate courtliness, which includes chocolate- covered bars designed to be eaten in one go. Includes bite size courtliness sold in multipacks. Chocolate Molded bars, including solid chocolate bars, blocks or tablets
  11. 11. 33 shaped by pouring melted chocolate into molds or different customized shape. Vision and Mission Statement of AASRR First of all before discussing any topic we have to understand the vision and mission statement of AASRR product (choice) your life your choice, which tells about the whole goals and objectives of the company and it helps us to understand the whole .Topic easily and effectively. Vision Statement AASRR set out a vision to achieve “a CHOICE” to be Pakistan’s Premier Chocolate Company offering nutritious and superior quality taste sweets to its consumers. By 2016 we aim to achieve 30% of market shares, and while it, we would be the best
  12. 12. 33 in terms of consumer value, customer service, employee talent consistent and predictable growth. Mission Statement To be a leading producer of chocolate become dedication to nature, corporate and hygiene, dynamic leadership and common to our partners and stakeholders We can easily understand the mission statement by following points like; “CHOICE” mean quality This is our promise Our reputation is build upon quality Our commitment to continuous improvement It will ensure that our promise is delivered
  13. 13. 33 Characteristic of this mission statement; We can say that this mission statement is realistic because if we see the quality and day to day improvements easily show that AASRR have real mission statement. Setting company’s Objectives and Goals AASRR successfully turned its mission statement into its overall objectives and goals. AASRR says CHOICE is the name of quality and the AASRR (CHOICE) chocolate and also different packaging products is the biggest example of it. And it says our commitment to continuous improvement and the demand and customer’s satisfaction shows that its products successfully fulfill the needs wants and demands by continuous improvement in the features of products. Why this Product? Factors Driving Demand for our Product
  14. 14. 33 1: Changing age profile - A relatively larger share of youth population which has ability to spend on procedure. 2: Increase in Income- The middle, upper lower and upper upper groups growing at the faster rate than in developed communities resulting in higher spending on food. 3: Social Changes- Increasing number of women. 4: Life style Factors- Increasing health consciousness awareness for convenience chocolates. 5: Availability of Organized Retail outlets- These proved much needed forward linkages. Customer Driven marketing Strategy of AASRR’s CHOICE
  15. 15. 33 In customer Driven marketing strategy we discuss the CHOICE CHOC-OLATE market segmentation, target marketing and market positioning strategies. Target Market Primary Market • Kids - Fond of Chocolates • Teens - More Experimental • Youth – Experimental and more buying power • Working people
  16. 16. 33 • Housewives • Elderly People Secondary Market • Travel Industry • Airlines, • Movie Theaters, Malls, amusement Parks • School, Colleges • Hotels, restaurants etc Market Segmentation; Market segmentation is the process in which marketers divide a market into subsets (segments) behave in the same way or have similar needs.
  17. 17. 33 It means all marketing process depends on marketing segmentation and it is the foundation of all the marketing processes. CHOICE also divides the market into different group of customers. We can understand it by following discussion. Identify Market Segment of CHOICE Targeting a group of customers who share a similar set of needs and wants which Segmenting the consumer markets. There are basically four types of segmentation which I discuss the following. • Geographic segmentation • Behavioral segmentation • Demographic segmentation
  18. 18. 33 • Psychographic segmentation Geographical Segmentation; Divide Faisalabad in different segments according to areas, states, regions and markets. E.g. D- ground, Madina town It can also be understand from the following points. Age and life cycle; under this type of segmentation the buyers who mostly prefer the CHOICE CHOCOLATE comes under the age group of 4 to 50 years. Gender; For purchasing CHOICE CHOCOLATE gender does not matter. CHOICE CHOCOLATE is for all type of persons whether male or female. Income;
  19. 19. 33 The price of CHOICE CHOCOLATE is reasonable and affordable, that a pack of chocolate is of Rs 12 so a person can easily buy it. Generation; CHOICE will not be much affected by the generation differences. All type of people likes to purchase the CHOICE CHOCOLATE when they want to buy it. Behavioral Segmentation of AASRR’s CHOICE we can understand it by the following points Decision roles; the decision role is played by the children and youngsters. They play an important role in taking the decision of when to buy the CHOICE.
  20. 20. 33 Occasion; For purchasing the CHOICE no specific occasion are required. People can easily purchase it on regular bases also if they needed because of verity range. Benefits; CHOICE is easily available anywhere when we need it. AND also in its special AASRR’s stores the supply chain of AASRR’s CHOICE is very good also it a quality conscious. So there are two main types of benefits given by AASRR’s CHOICE are supply chain and quality. Demographic Segmentation
  21. 21. 33 Divide people according to Age, Income, Social Class, and town. Occupation and their life cycle Psychographic Segmentation To analyze the psyche of the people of Faisalabad we divide them in social class, life style and personality. And now the target markets which is selected and targeted by it is according to age, gender, occupation and income of potential customers. But the question is: How can we choose the target markets from the different segments? The answer is that a acronym DAMP is used to gauge the viability of target markets. Dissemble; how a segment can be differentiated from other segments.
  22. 22. 33 Accessible; how a segment can be accessed via marketing communications produced by a firm. Measurable; can a sufficient return on investment be attained from a segment’s servicing. Profitable; can a sufficient return on investment be attained from a segments servicing. Market positioning of AASRR’s CHOICE Chocolate made its position not only in the minds of consumers but also in the market. It means what is the view of consumers or concept about of your product like trough adds children’s and youngsters view and action after seeing the ad of your product.
  23. 23. 33 To make position in the minds of Customers AASRR’s moving to used different promotional techniques through. By giving add through any superstar Electronic media TV • GEO • A.R.Y • PTV RADIO • FM 101 • FM 103
  24. 24. 33 • FM 98 PRINT MEDIA NEWS PAPER • Jang • Dawn • Express MAGAZINE • Akhbar-e-jahan • Sunday magazine • Young world BILLBOARD • M-tax chock
  25. 25. 33 • D-ground • General bus stand chock • Shara-e-faisal Social media Twitter and other social networks MARKETING MIX Product.
  26. 26. 33 CHOICE is made from real chocolate. Its ingredients include cocoa, butter and there is a glass and half full cream milk in every 200 grams in every milk chocolate. CHOICE buys 65 million liter of fresh milk each year to make CHOICE milk chocolate. Strategy The strategy of AASRR’S CHOICR is to continuous improvement in the quality and features of product. It is the mission statement of CHOICE to make quality chocolate which have competitive advantage from the competitor’s products and it enhances the goodwill of the company. • Price It is an important element of the marketing mix. The price for a chocolate can determine whether a consumer will buy it or not it can be determined
  27. 27. 33 easily and sales volume tells about that price is reasonable or not. If competitors charge the low price than the AASRR’s CHOICE chocolate, it is automatically affect the company’s profit. Strategy AASRR’s CHOICE applies the reasonable and affordable policy to charge the price from its competitors. Because it is the vision of AASRR that CHOICE is in every pocket. It charges the fewer price from its competitors and provides better quality also. We can say it is used penetration strategy because have low prices as compare to its competitors and have long life cycle of the product. AASRR wants to survive in the market for long run. We will adopt the Marketing following pricing strategies to set the price of our product: Cost-plus pricing Method¬Skimming Marketing Skimming
  28. 28. 33 Delight is using Price skimming strategy. It is a pricing strategy in which a marketer sets a relatively high price for product or service at first, and then lowers the price overtime. Cost-plus pricing Method: A pricing method used by Delight because it is easy to calculate & requires little information. This method determines the cost of the product that used direct cost, in-direct cost and fixed cost whether related to the production OR sale of the product. PRICE RELATED
  29. 29. 33 Suitable price starting from Rs/12(one pack containing 2 chocolates) and ends up with the customer’s choice. Depending on how many pieces our customer wants to buy in one pack. OUR PRICE SCHEDULE Product Quantity Price in Rs Choice 2 pieces Rs.12 Choice 4 pieces Rs.26 Choice 8 pieces Rs.50 Choice Multipack From 16 to consumers dependable choice Rs.100 & so on dependent on pieces • Place
  30. 30. 33 AASRR’s CHOICE is produced at the chocolate factory in Faisalabad in Pakistan. After the chocolate is produced and goes through the process of all quality checks. It is transported to the staff rooms and then AASRR’s sells it product to shops. Strategy The placement strategy of AASRR’s CHOICE is to sell the chocolate at every corner shop, super stores, baker’s shop, it also included AASRR special chocolate shops where customers can customize their order according to their occasions. It is the mission statement of AASRR to provide chocolate to all type and class of customers. Included Distribution Channels: Our distribution channels Marts and Departmental stores, Super stores. Bakeries in Faisalabad are: edible market stores. We mainly focus on the retailers & Bakeries because they are the only source which delivers our product to the final consumer. • Promotions
  31. 31. 33 The purpose of promotion is to communicate directly with potential and actual consumers. In order to encourage them to purchase CHOICE chocolate the AASRR used different promotional tactics. Strategy AASRR is used press and electronic media to motivate the potential and inspires the actual customers to purchase the product of AASRR Promotion is an important element of marketing mix because if it is not well planned then company is unable to increase it sales. The company gives discounts on different occasions. To inspire the Consumers of chocolate to purchase the AASRR’s CHOICE the company made such type of ads. To encourage the youth class the company hires the superstars for advertisement of the products which inspires the all type of consumers who want to eat sweet Positioning strategy of AASRR’s CHOICE
  32. 32. 33 Positioning is all about that what is the customer concept or image of your product in the minds of the people who likely to purchase the product. It also concerns about what is the position of your product in the market. We can say every aged person wants to buy AASRR’s CHOICE chocolate and they also don’t know why they are purchasing the AASRR’s CHOICE even they don’t want to purchase. Slogan of AASRR’s CHOICE Slogans also play an important role to position a positive concept in the minds of customers like: AASRR’s CHOICE is a brand of chocolate bar and different shape of chocolate made by the
  33. 33. 33 PRODUCT REVIEW COMPANY NAME; AASRR PRODUCT NAME; CHOICE Slogan such as: Your Life Your Choice. Choose choice and live a healthy life LOGO;
  34. 34. 33 SWOT Analysis of AASRR’s Chocolate • Strengths Customers of chocolates are not much price sensitive. Consumers can easily place and choose to order • Weakness AASRR’s aims to be available in every store but though we are available in every store but not in medical store and stores on petrol pumps because of price ranges
  35. 35. 33 • Opportunities Huge untapped urban population (middle class population) • Threats Threat from free availability of imported brands METHODOLOGY As mentioned earlier, the objective of the study is to formulate a Marketing Strategy for any new entrant in the PAKISTANI Chocolate Industry. While recommending the said strategy detailed information from both primary and secondary sources was collected and analyzed. This included:
  36. 36. 33 Primary Sources Four level primary information collections were undertaken. These were: In order to get relevant information regarding competition, executives of the following chocolate players in the market were interviewed: Mr.AMEEN , Branch Manager, AASRR’s Pak Ltd., Zam Zama Building, Connaught Place, Karachi Information: AASRR’s profile, products, shops, distribution, etc. Information: Complete marketing strategy-since, imported chocolates marketing is a new concept To analyze buying behavior and in order to gain an insight into the buyer need-satisfaction level, a questionnaire was formulated and administered among 80 people. The profile of the respondents was as follows: Consumers of chocolates – 12 years + in Karachi.
  37. 37. 33 This was since; chocolate consumption was witnessed amongst all age groups. A distributor was also interviewed so as to get pertinent information regarding the most important ‘P’ of FMCG marketing – Place, and information provided by Saif Dewan, he is a Brand, Sales and Distribution management specialist, an impact player in Business Development strategies, brings with him fifteen years of blended experience of (FMCG) Sales, Marketing and Distribution Management. He has been associated with leading organizations of Pakistan including Mitchell’s and B.P sweets where he worked at strategic management positions. Dewan is presently associated with Muller & Phipps Pakistan (Pvt.) Ltd., as Business Development Manager. He has diverse experience in conducting strategic sales management, team building and leadership programs for organizations such as Mitchell’s, B.P Industries, Muller & Phipps Pakistan, Meezan
  38. 38. 33 Bank, EFU General Insurance , Premier Agencies and many renowned educational institutions including University of Karachi and SZABIST etc. He received his Hons. And Master’s Degree at the University of Karachi, where he majored in economics, with marketing and management Secondary Sources A number of secondary sources of information were used. These were: Information: Industry statistics, problems facing the industry, future outlook, etc. Also measures being adopted for cocoa production development Confectionery and Chocolate Industry of Pakistan Extensive use of secondary information in the form of magazines/journals/newspapers clippings, such as Business World, Business Today, Business Pakistan, Brand Equity, Economic Times, etc. The methodology adopted was as follows:
  39. 39. 33 Industry scenario Sketch (utilizing secondary information) Extensive interviews held with Primary/Secondary Sources (Companies/Chocolate manufacturers Association) Interview with ex-distributor of Nestle Pakistan Ltd Extensive retailer interviews with the retailers of other chocolates brands Formulation and administration of a questionnaire Formulation of the Recommended Strategy on the basis of the above mentioned Primary and Secondary Information THE INDUSTRY SCENARIO With the entry of multinationals and home companies sprucing up their act, the confectionary market is booming.
  40. 40. 33 Mckinsey has estimated the confectionary industry to touch a whopping Rs.8500 cr. by the year 2009. Till the eighties, the chocolate market was small and the product category itself was fuzzy. AASRR’s focus its efforts on making chocolates a distinct category with an identity of its own. And the marketer had sharply positioned its product at children to do that. Hence, chocolates bore an “only for kids” tag, and kept adults at bay. Hence chocolate still ruled the roost with over 80 % market share. And though several brands – like Cadbury and other brands in Pakistan which tried to break into the market, none of them had succeeded in shaking the leader’s grip AASRRs want to become a brand virtually generic to chocolates. Then chocolates were used to reward and reinforce positive behavior and hence were categorized as a luxury reserved for special occasions. This was, a stark contrast to the west
  41. 41. 33 where chocolates were snacked on, eaten as mini meals or just to suppress pangs of hunger. Trends in the Industry With socio-economic changes rapidly taking place, the young and not so young population will lead a new life style and chocolate eating is definitely going to be widespread and acceptable. In the industry, both population and family incomes as well as urbanization are on the increase. There has been a significant growth in the middle class, with 5.8 million people having upgraded to the quoted middle class. There is quantified data on FMCG usage having increased Thanks to the above reasons the growth in the chocolate market is estimated to be at 28% in 2009. But marketers in the industry are looking forward to a much higher growth rate.
  42. 42. 33 AASRR’S CHOICE MENU
  43. 43. 33 AASRR’s menu includes more than 28 types of chocolate verity. Comparison with BUTLERS in Pakistan AASRR’s and BUTLERS AASRR available in its own special stores as well as super markets and other shops Butlers has a available to be sold in specific store It emphasis on delivering quality brand with luxurious packaging It emphasis on delivering good quality A little price sensitive Not much price sensitive AASR R AASR R
  44. 44. 33 Range of verity of chocolate flavors and chocolate packaging while butlers has a range of chocolate but not of luxurious boxes but of packaging MARKETING OBJECTIVES • Short Term Objectives Taking into consideration the growth rate of the market & competition with major brands, the marketing objectives can be as under: To introduce chocolates in various new flavors To make a place in consumers mind To provide quality chocolates at affordable price
  45. 45. 33 To achieve a market share of around 15% by the end of two years of operation by the means of 7.5% by creating the new market. 7.5% by taking competitors share. Long Term Objectives Investing in strengthening the grass root level operations like cocoa farming, milk collection and storage. A broad product portfolio, a large and efficient R&D department, decentralized management, etc. Nestle has about 2000 distributors in 1700 towns and more than 500,000 retail outlets – to match this. MARKET RESEARCH
  46. 46. 33 In order to recommend and execute an effective strategy for marketing of goods & services, a systematic market research needs to be undertaken. The buyer preference research would play a vital role in the assessment of consumer’s taste/purchase habits and a better understanding of the consumers mind. In fact the strategy formulation/recommendations in this report of the marketing mix rely heavily on these research findings. A questionnaire was administered (as mentioned in the Methodology) amongst people of different age groups and professions. Results from this research provided interesting cues, which were extremely beneficial in the formulation of the recommended marketing mix. The main object of this research/questionnaire was as follows: To find out the current taste/chocolate eating habits. To find out the extent of brand loyalty
  47. 47. 33 To get feedback of consumers perception about flavors and conventional outlets To find out extent of price sensitivity Retail outlet preference Brand preference etc OBSERVATIONS Based on the basis of the questionnaire research, some of the facts that came to the fore have been listed below. These research findings played a key role in the development of the recommended marketing strategy. AWARENESS – PURCHASE PREFERENCE Top of Mind Awareness Purchase Preference
  48. 48. 33 What influenced you to buy the selected brand? PURCHASE BEHAVIOUR Reasons for Purchase Chocolates – A gift to a love one IMPULSE DRIVEN Most of my chocolate purchases are preplanned I often pick up chocolates while I make other purchases REINFORCING IMPULSE PURCHASE IMPORTANCE OF ATTRIBUTES – PERCEPTUAL MAPS Importance of various Attributes in AASRR’s Chocolates definitely going to keep their
  49. 49. 33 consumers to go with customization and personalization option. Rank of Chocolates on various attributes for CHOICE through Experimental marketing Attribu tes Taste (flavor) Quality Packaging Price RANK 1 Choice Kit Kat Choice CDM 1 2 Kit Kat Choice CDM Choice 2 3 Cadbury Perk Kit Kat Perk 3
  50. 50. 33 4 Perk Cadbury mars Kit Kat 4 5 jubilee mars perk mars 5 FUTURE OUTLOOKs The growth and expansion of the PAKISTANI chocolate market in the past has been hampered, due to stiff excise duties on chocolates (at 18 percent – while other agro based products are being charged as low as 8% and a few, even 0% excise) and non-availability of quality cocoa in the country. Also, import of chocolates has been put in the OGL category, with duties being reduced (in a phased manner). The industry has made recommendations to the Pakistan government to go back to the special
  51. 51. 33 item list category, in order to safeguard the domestic industry. However, continuous marketing focus by the players in the market has resulted in the industry looking up like never before. These companies/brands have become much more market savvy. The Pakistan chocolate market is transforming and new players (Sara Lee is planning to set up base in Pakistan) are entering the market. Hence, considering the low per capita consumption of chocolates, the future of the industry seems to upbeat with the reference of AASRR & CO. Our going concern is quality dry fruit chocolate but for the near future we were moving and control our map toward new products in the line for beverages some more new chocolate flavor with fruits and coffee flavor with lots of more new additions in our product line we keeps our promise of delighting our customers forgo