Mini Project in Marketing Essay

EXECUTIVE SUMMARY: This includes the company profile and its products. This also consists the target market and the segment. The company has identified the need of the soft drinks especially for the children. So the company wants to introduce the new product into the market for children but the company does not wants to confine to the children so the drink will also be used by the all age groups. The product is manufactured under Prathik & Pavan Pvt Ltd shortly known as p&p ltd. which is under the group of â€Å"SUPREME BREWERIES†. The product names include the REFRESCO, Snapple, LITE and SMOOTHY. These products include aerated and non aerated drinks both for the children and also for the all groups. For these products the target market include the mainly children and also the all age groups. The income levels of the target market may not affect the buying and demand. Vision: Growth for leadership which states growth with quality and customer attention and profit. Vision statement shows the following Customer attention Profit motive with morals Leadership in the market Mission: provide opportunities for growth and enrichment to our stake holders. We strive for integrity and honesty. Achieving best distribution by which product can reach to the consumers as early as possible. Goals: The primary objective of the company is to serve the needs and wants of the consumers. To improve and enhance the satisfaction levels of the consumers. To supply and provide the company’s product in every corner of the target market. Objectives: The primary objective of the company is to have a leadership position in the market. To make the product as generic so that the consumers will demand the product for every visit to the retailer by next 3 years. To achieve the 500000 units to sell per annum by next 4 years. Increasing the business to all over the markets in south India by next ten years. CORE PRODUCT: The core product in our product is the drink which we are offering. ACTUAL PRODUCT: The actual product is in the soft drink is the bottle size and the shape of the bottle. Actual product constitutes the no caffeine which causes the health related problems. Actual product will consist of the various variants and flavors’ which include aerated and non aerated drinks. AGUMENTED PRODUCT: The augmented product is the packaging and the distribution net work. And consumer can consume half the drink and he can store the remaining drink and can consume at later stages with taste remain same as at the time of sealed pack. Augmented product of the soft drink also consists of the other offers which include the tours and trips. This also includes the lunch and dinner with the brand ambassadors of the company. TARGET MARKET: The target market for soft drink is the children and the age group existing above 8 years also but the main target remains children. The children who having the age above 8 years they can consume. We are focusing only on Hyderabad market and the product can affordable by the middle class and lower middle class. Position statement: The company wants to serve the consumers with best quality drinks which will not have any impacts on the consumers. â€Å"Serve the quality, be the best.† This statement ensures the customers that the company serves the best quality of the products. This photo shows that the product ensures the coolness. MARKET ANALYSIS: As the company mainly targets the Hyderabad market. And targeting the mass market here the company targets all the segment children’s and their parents. Our main target is children’s but we are also targeting their parents because they are the initiators in the case of children’s the parents are the decision makers so we are targeting them. The children’s constitute our overall market. As there is no soft drink specially catering to the children this helps the company to sustain in the market with the substantial market share in the local players. This USP helps to attract the consumers towards the soft drink. Factors affecting the Consumer behavior in buying: There are various factors that involve in the buying of the soft drinks which include Cultural factors: With the increase of the literacy and awareness in the present days there are no cultural factors. However there are some situations where there are behavior pattern changes due to some cultural factors like festivals Social factors: These factors involve consumer’s family, small groups and status. The number of children decides the buying of the product. For example if the children are more than the elders in the family then the decision lies in concerns with the children. The buying of the soft drink cans depends on the status and there lifestyle. DEMOGRAPHIC: The soft drink is mainly targeting towards the children’s Age: Children (Above the 8 years) Young Adults (18-24 years) Age group of 25 and above GENDER: Both male and female GEOGRAPHIC: Hyderabad market PSYCHOGRAPHIC: The life style of the parents and their purchasing behavior. The life style of the parents plays a major role since the purchasing decision ultimately lies with them. BEHAVIORAL SEGMANTATION: In behavioral segmentation the company mainly focused on the parents who are all the health conscious of their children. The company focuses on the children who are attractive towards the soft drinks and the consumers. MARKET SIZE: Currently the population of the Hyderabad is 6,809,970. Since the soft drink is the product for all the consumers irrespective of income, age and sex. The market size is huge with respective of population. Here in the case of soft drink we can’t say exact potential customers because this is a generic product and it can be affordable by everyone irrespective of income levels and age and sex. Unmet needs by the competitors: No company had the drink that caters specially to the children and also the mass consumers as well. The company wants to the address this issue which can satisfy the children in a healthy way. The company’s product is also targeted to the mass consumers. The product which mainly concentrates on the children soft drink will consumers to think about the product. This makes product as brand and and places the product position in a satisfactory rank. PESTL ANALYSIS: P-POLITICAL ANALYSIS: In Hyderabad the political effect will be on the business. The allocation of the funds from the government and the taxation on the business will affect the business. The change in the political party will have the change in the policies, and the regulations. The change in policies like restrictions in the product ingredients. The political issues will affect the distribution of the product, manufacturing the product and other issues related to the local and regional parties. E- ECONOMIC ANALYSIS: The GDP of the country plays a major role on particular business with in the country. The recession will affect the business like people lost their jobs and the purchasing comes down. S-SOCIO CULTURAL ANALAYSIS: Now-a-days the lifestyle and attitudes are changing. The people are becoming more health conscious about their children’s health. Because the other soft drink payers are making the product with the ingredients that will affect the children’s health. T-TECHNICAL ANALYSIS: Now a day the people are more aware about the technology. The company is having high end machinery to produce the products. And the company having the technology which is recycles the used bottles. And the company uses the technology in the promotions. L-LEGAL ANALYSIS: The company has to follow the guidelines of the government. The plant has to set up in outside the city the plant has to be not creating any problem to that area. While determining the working hours and wages the company has to follow the government rules. IDENTIFYING THE WANTS AND NEEDS YOUR PRODUCT SERVES: The company is launching a soft drink especially for children’s and also serves the need of the other age groups irrespective of the income and sex. The company is offering this product at a affordable price and it also offering three different flavors. And the product is available to everyone within the city. The company is tie up with the restaurants and bakeries and malls to sell the product. The company is maintaining the quality in the product and along with that price. The soft drink it quenches the thrust of the children it doesn’t crest any other side effects like obesity etc. our product contains less amount of caffeine when compare to other soft drink manufacturers. The caffeine is not harmful for adults but it creates the side effects for childrens. COMPETETOR ASSESSMENT: The company is competing in the food and beverages industry. Soft drinks come under oligopoly market where the market has only limited companies. The industry in India is being estimated to grow at 15% – 17% this year, according to experts. â€Å"Food and beverages segment has not suffered despite the slowdown in the economy. Initially the growth rate is very low in food and beverages because the awareness about the soft drinks is less and the distribution net work is not well. And the prices are high at initially and later the prices are decreased. Growth rate: The soft drink industry is expected to post a 14% growth in value terms in ’03, partly because of increased consumption due to price cuts by soft drink companies at an average of 15% across all brands. The price decrease is mainly because of the competition and also to increase the competition. The price cuts are aimed at increasing the consumer base for soft drinks. Market share of different players in soft drink segment: PORTERS FIVE FORCE MODEL: Threats of new entry Substitutes Revelry between the firms Bargaining power of suppliers Bargaining power of customers 5 FORCE MODEL of the company includes Treats of new entry: The treat on new entrants is low in the market since the initial investment or capital that is required for the entrants is high. The profits and profit margins in the soft drinks market is high. The business is very profitable. Hence the big players or other companies may enter into the market. Substitutes: Present market has very high treat of the substitutes as a business. This is because of the people perception that the drinks may cause the health issues. With the introduction of this new product may address this types of the issues and can sustain in the market. Bargaining power of suppliers: Since the firm is entering into the market with new brand and product there will be a less power with the company to talk with the suppliers for the credit and supplies. Hence the bargaining power of the supplier will be very high where the firm has less power with it. Bargaining power of buyers: Initially when the company launches its product into the market there will be less with the company. The customers who include individual customers, wholesalers, retailers etc will expect the discounts and can bargain for the low price. Treat of rivalry: Presently market consists of very high rivalry even though there are limited players. There is a every chance of attacks from very large and even local players. DIRECT AND INDIRECT COMPETITORS: The competitors of the company are divided into direct, indirect and also the substitutes which can eat the company’s profit one or other way. The direct competitors of the company’s products. Below are the aerated drinks COKE PEPSI THUMBS UP The direct competitors of the non-aerated competitors are MAAZA FROOTI SLICE The indirect competitors of the company are SODA HUBS JUICES OTHER DRINKS The substitutes of the company’s product are COCONUT WATER BUTTER MILK Competitive advantages: Even the company enters into the market where there are big players it has its own competitive advantages. The company having its presence in only HYDERABAD it can look and concentrate on its local markets. The company can have a direct relation with the retailers and wholesalers. Company can directly interact with the local consumers .It is easy to the company to address the issues regarding the product and its distribution. Since the consumers are confined to the local area of HYDERABAD it is easy for the company to forecast the demand and can supply accordingly. When it comes to distribution it will be easy for the company to have easy access since it is local which is known. Competitive disadvantages: The company could struggle in raising the capital for investment and maintaining reserves. The consumer’s acceptance may not be satisfactory since there are big players in the market. The capital that is available with the company is less and the no experience can be some restrictions to the company to operate and do business. There can be threat of attacks from the other competitors which can be direct and indirect. MARKETING STRATEGY The company marketing objective is to be the leader in terms of sales and in terms of revenue and market share. Attracting the customer by maintaining the quality and the price. The company uses the marketing strategy to differentiate the product from its competitors. That will help to the company to gain competitive advantage. Market strategy involves the following: Market scope: As the company focuses the many segments like aerated and nonaerated drinks therefore it is the multimarket segment. Geographic market strategy: Initially the firm focuses mainly in the HYDERABAD market which is considered as the local markets. Marketing entry strategy: The segment is in the stage of maturity. Therefore entry into the market is considered as the INITIATOR since there is no soft drink which is focused specially on the children and can be catered to the all age groups. To survive in the market the company needs to follow certain marketing strategies. PROMOTION: The promotion for the product will be happen with the set of advertisings which include the cartoons to attract the children and an the film stars to grab the attention of the adults and also the set of add which consists of previous generation actors who can take attention of the elders. The soft drink is mainly targeting the children’s so the company creating a add campaign which includes mainly canton. This attracts the children towards the product. As the product is also for the adults and the elders, the advertising will concern with the film stars and other set of attractive ads. The ads will be aired in the all local channels who has a substantial TRP ratings. There will also be set of ads which will be played in the local radio channels and FM stations. There will also be a certain campaigns and designs which will be selective towards the magazines and news papers which can attract the consumers. There will also be hoardings and wall hangings representing the company’s product. There will also be pamphlet campaigns. Company also can go for road shows and shows in malls and multi-plexes which brings the more awareness of the product to the customers. Trade schemes which are benefits to traders and consumers schemes like discounts, offers etc, which benefits to individual consumers. Company can also use these as the promotion schemes which encourage the customers to buy. ELOBRATION OF 4P’S: The 4P’s are 1) Product 2) Price 3) Place 4) Promotion PRODUCT: The product is soft drink. It quenches the thrust of the children’s and it doesn’t creating any side effect to the children’s. And it gives the energy to the children’s. The product is also to the all age groups but the main focus is on the children. The product name is refrsco and the product is manufactured P&P PVT LTD and marketed by the SUPREME BEVERAGES. CORE PRODUCT: soft drink. ACTUAL PRODUCT: bottle size and shape and design. AGUMENTED PRODUCT: monetary and non monetary benefits that a consumer along with the product. PRICE: The price of the product will be determine by based on the fixed cost and the variable cost like manufacturing cost and the transportation cost all costs will be consider while determining the price. The pricing will be done based on the competitor’s price. The prices will vary based on the quantity of the drink. PLACE: The company having a good distribution network and the product will be available in all the places of Hyderabad. The company having both indirect distribution and incentive distribution net work. In direct distribution the company doesn’t sell the product to customer. And in incentive distribution the company having its own outlets which are small in size and those are placed in near to the parks and play grounds and schools. The company tries pushing the product to the distributor or supplier by giving the trade schemes. And the company tries pulling the product by the customers by providing the consumer schemes. The company having collaboration with restaurants and cinema halls and retail stores and shopping malls to make availability of the product. And the company also putting the vending machines in railway stations and in fuel filling stations. PROMOTION: The company following the different type of promotional activities. Making the ads with cartoons and in a different way to understand the children’s easily. The company mainly promoting the product through the television and through printed media likes pamphlets and news paper and hoardings and lollipops etc. The company creating the awareness programs about the product. And company having a tie up with A.P.S.R.T.C to promote the product. Now – a days all the city busses having TV’s in the busses so the promotion through these buses will create unique difference from the competitors. In Hyderabad Most of the people will travel in city busses this will help the company to gain the market share. The company promoting the products through websites also and through tele calling and through the trade fairs and through direct marketing. For the suppliers the company promoting the product by giving the discounts and creating other offers like foreign trip like etc. For the consumer the company promoting the product by giving discount on the product or giving some percentage of soft drink extra with the same price. And another offer like meeting our brand ambassador and giving movie tickets etc. Budget and forecast Sales forecast: Initially there is a need to adopt the push strategy where the product is pushed by the traders to the consumers to buy. This can be done only when there is only the awareness about the product. Initially when the product is launched into the market the sales that is estimated is nearly 60000 to 75000 units as per the local sales of other businesses. The company expects to be the growth of the nearly 12% to 18% for the first 3 months of its presence with the intense and dedicated advertising and promotion. Therefore the sales would be 75000 to 90000 units. After the great campaigns and attractive products of the company the sales may increase up to the 30% which is nearly 100000 to 120000 units. The company forecast its sales as nearly 1200000 units per annum where the company also expects to grow with the rate of 17-20% which can bring the sales up to 135000 units per annum on an average. Profit and margin estimation: The firm expects the limited or low profit margin initially since there will be trade and consumer schemes which will reduce the company’s profit. The company expects to get the substantial profits from 6 th or 7th months of the first year when the product is being launched. The company estimates to have a profit margin of 20-25% of profit margin on each unit irrespective of bottle size which is low when compared to other players in the market. The above profit margin will be confined to the first 4 or 5 months of launch of product. When the company grows for the 5 months the profit margins will also increases with the increase in the demand. Then the company expects to have a profit margin of the 35-40% on each bottle. Strategies for following: Advertising: Advertising includes campaigns and television ads and radio promotions. These are the major expense in advertising the company’s products and create the awareness. This would incur the cost of nearly 50 to 55 lakhs per annum. And another 5lakhs per annum will be required for the company for other programs which include shows in malls, road shows and other promotions. The hoardings and lollipops will incur the 10-12 lakhs p.a Therefore the company would like to invest nearly 25lakhs for advertising. Direct marketing: Direct marketing involves communication about the product to the customers directly through emails, mobiles online display ads, catalogue distribution, promotional letters, and outdoor advertising. The above activities will also incur certain amount of the investment which will be nearly 2 lakhs. Internet marketing: Internet marketing is the powerful tool to promote the brand in the market with less cost and investment. This involves the creation of the website and links which can provide the information about the product and the company. This would involve 5 lakhs per annum. Consumer promotion: The consumer is attracted to the product only when there are offers on the product when it is launched. This involves giving the free samples, discount offers and other benefits. This also involves the cost of nearly 8 lakhs where the company may not get it immediately. Trade promotions: The trade promotion involves giving benefits to the traders who promote and sell the company’s products. Giving benefits to the traders helps the company more .The company expects to incur 12 lacks. Public relation: This includes maintaining relation with the customers as well as with the society. This involves the healthy practices in the business. IMPLEMENTATION AND CONTROL PLAN The company is following the line structure sales force structure because in this the employee doesn’t get orders from other departments they get the orders from their sub ordinates only. This is helpful to the company in terms of reducing the attrition rate. With this structure the employees will satisfy The company is in Hyderabad it has four zone each zone requires four sales executive and one sales manager. The sales executives will go to the market and interact with the shops persons and with the distributors. And the sales manager monitors the sales and maintains the relationship with the distributors and retailers. Based on this the company requires 4 persons for zone sales manager and 16 persons for sales executives and one senior manager for all these zones he will be the head. The executive will report to the zonal manager and the zonal manager will report to the senior sales manager. The company requires the six persons for customer service and for indirect marketing. The HR department is in the company which helps the sales teams by giving training how to interact with the customer how to solve the objections raised by the customer. The HR department always gives the training to sales people and upgrade s them to the current scenario. And the indirect marketing team will support the sales team by giving the leads.