-:SUBJECT:-

PRODUCT:

SUBMITTED TO: PROF. HASHIM SULTAN

PRESENTED BY:
Group Members
Insaa Waheed L1R06MBBF2035.
Hafsa Fatima L1R06MBBF2010.
Waqas Faiz L1R06MBBF2001.
Arslan Mehmood L1R06MBBF2036

Page 1 of 47
 .FINAL PROJECT REPORT
ROSE PETAL
Group Leader
Insaa Waheed
Student of MBA (Banking & Finance), PCBA

Principal Investigators
Arslan Mehmood
Hafsa Fatima
Students of MBA (Banking & Finance), PCBA

Research Assistants
Insaa Waheed
Waqas Faiz
Students of MBA (Banking & Finance), PCBA

Authors
Insaa Waheed
Waqas Faiz
Arslan Mehmood
Hasfa Fatima
Students of MBA (Banking & Finance), PCBA

Preparation of this report is the result of detailed research and cooperation

of Regional Sales Manager (CPD) Mr. Omar Rafique & Area Sales Manager
(CPD) Mr. Muhammad Muddasar Anjum.

Punjab College of Business Administration

University of Central Punjab
31-Main Gulberg, Lahore, Pakistan
. Phone: +92-42-5755314-7
Fax: +92-42-5710881
www.ucp.edu.pk

Final Report • December 2006

Page 2 of 47
 DEDICATED TO OUR
PARENTS

Who have always been the source of

inspiration for us and gave us the courage to do
this impossible and difficult task. They are also
trying to do everything for us until success
kisses our feet. We love them because they are
the one who care for us a lot.

INSAA WAHEED
WAQAS FAIZ
ARSLAN MEHMOOD
HAFSA FATIMA

Page 3 of 47
 TABLE OF CONTENTS
Dedication --------------------------------------------------------------- 3
Acknowledgement ------------------------------------------------- 7
Executive Summary ------------------------------------------------- 8

Ch1 1 HISTORY & OVERVIEW

Packages Ltd --------------------------------------------------- 10

History and introduction --------------------------------- 10
Main manufacturing divisions -------------------------- 13
Mission statement of Packages Ltd----------------------- 15
CPD Vision ----------------------------------------------------- 15
Want for a hygienic product-------------------------------- 16
Launching of Rose Petal Tissues -------------------------- 16
Mission statement of Rose Petal Tissues ---------------- 16

2 MARKETING ENVIRONMENT

The Company’s Microenvironment -------------------- 17

The Company’s Macroenvironment -------------------- 22

3 SEGMENTING AND TARGETING

Market Segmentation ---------------------------------- 24

Target Market ------------------------------------------- 26

Page 4 of 47
4 CONSUMER EVALUATION 27

Buyer’s black box ---------------------------------- 27

Characteristics affecting buying behavior--------------- 27
Buying decision Behavior ---------------------------------- 31
The Buyer Decision Process ------------------------------- 32
The Buyer’s response ---------------------------------------- 33

5
DEVELOPING MARKETING MIX 34

PRODUCT STRATEGIES

Levels of Product ------------------------------------------- 35

Product classification ----------------------------------------- 36
Individual product decision --------------------------------- 38
Product mix decision ------------------------------------------ 43
Product line decision ------------------------------------------ 44
Brand equity ---------------------------------------------------- 44
Building strong brands ---------------------------------------- 44

6 PRICING STRATEGIES 48

Factors considered while setting Rose Petal’s Price 48

Internal Factors --------------------------------- 48
External Factors --------------------------------- 49
General pricing approaches ---------------------- 50

7 DISTRIBUTION STRATEGIES 51

Distribution channel ----------------------------------------- 51

Channels for Consumer Product ------------------------ 52
Level of Distribution Intensity ------------------------ 52
Vertical marketing Network ------------------------------- 53
Retailing --------------------------------------------------- 53
Major logistics functions ------------------------------------ 54

Page 5 of 47
 8 PROMOTION STRATEGIES 55

Developing Rose Petal Promotional Strategy ------ 55

Promotion mix strategy --------------------------------- 56
Major marketing decision ---------------------------------- 57

9 PRODUCT EVALUATION

Marketing Management Orientation --------------------- 58

Marketing philosophy ---------------------------------------- 59

10 PRODUCT ANALYSIS

Corporate portfolio analysis of Rose Petal -------------- 60

Product life cycle strategy for Rose Petal ---------------- 61

11 RECOMMENDATIONS AND SUGGESTIONS

Regarding Product -------------------------------------------- 62

Regarding Placement----------------------------------------- 63
Regarding Promotion----------------------------------------- 63

Page 6 of 47
 ACKNOWLEDGEMENT

In this project we have made an effort to discuss the marketing plan

for a popular brand in tissues, ROSE PETAL, of Packages Ltd. This
project report is the result of our untiring efforts in the whole
semester to explain maximum aspects of marketing regarding Rose
Petal tissues.

Packages is the leading and only packaging company in

Pakistan providing premium packaging solutions for exceptional
value to customers.

We are very thankful to the REGIONAL SALES MANAGER

CPD, Mr. Omar Rafique and the AREA SALES MANAGER
CPD, Mr. Muhammad Muddasar Anjum, who helped us in
preparing this project by giving the maximum possible information
about Rose Petal and Packages Ltd.

Special thanks to our teacher Prof. Hashim Sultan, who gave

us the maximum knowledge and understanding of our subject and
enabled us to prepare a marketing project report.

THANKS
Students of MBA-BF

Page 7 of 47
 EXECUTIVE SUMMARY

Packages Ltd was established in 1956 as a joint venture between the

Ali Group of Pakistan and Akerlund and Rausing of Sweden,
Packages Limited provides premium packaging solutions for
exceptional value to individuals and businesses. They are the only
packaging facility in Pakistan offering a complete range of packaging
solutions including offset printed cartons, shipping containers and
flexible packaging materials to individuals and businesses world-
wide. They have three manufacturing divisions i.e Paper and board
division, Packaging division and consumer Products division

Consumer Buying Behavior for Rose Petal is Variety Seeking

because there is Low involvement of consumer and also the price of
tissues is low.

Rose Petal has direct as well as indirect competitors. In direct

competitors it has no primary competitor because of its monopoly in
the tissue market and its secondary competitors are Moveeta, Fay,
Flying and Jasmine. The companies producing towels, napkins and
handkerchiefs are the indirect competitors of Rose Petal tissues.

Target market of Rose Petal is the middle class then they stretch
towards others. It caters all the economy by providing different
variants in its fleet of tissues at different prices.

Page 8 of 47
 Packages Ltd was the first company in Pakistan who took
the initiative step in tissue market. The core Product is the catering of
unhygienic issues by providing a disposable product. Packages Ltd
introduced a new product Rose Petal tissues in its Consumer
Products Division (CPD) which was manufactured solely for the
benefits of consumer. Rose Petal is following both the line filling and
line stretching product line decisions. Under Rose Petal, Packages Ltd
is doing line extension and brand extension. Packages Ltd is also
doing multi-branding by offering Tulip tissues in its CPD.

Rose Petal tissues is a special designed product by Packages Ltd

which is very useful in daily life. The prices of Rose Petal have been
set after a through study of market. Packages Ltd had the option that
they could reduce the price of 1st version of Rose Petal tissues, but
once you lower the prices then it is almost impossible to raise them
again. For this purpose Packages Ltd provided various ranges under
Rose Petal brand name with different lower and higher prices, each
targeting a different class and market.

Packages Ltd has intense distribution setup. They have

approximately more than 300 distributors who distributes their
tissues all over Pakistan. They are using the Wholesalers channel.

Promotional campaigns of Rose Petal tissues are very strong

since its launch in 1982. Advertisement on Television, Billboards, on
stops and buses are very impressive and attractive. Rose Petal
promotional campaign and conducting of various health seminars is
designed according to the Target customers. For Rose Petal tissues,
Packages Ltd is following PULL Strategy.

Page 9 of 47
 PACKAGES LIMITED
HISTORY, INTRODUCTION AND OVERVIEW

Rapid growth of industrial economy bases on different factors and

packaging is one of them. Packages Limited was born out of a dream
to set up in Pakistan, industries of excellence based on local raw
material and talent. Packages Limited is a leading packaging
manufacturing company of Pakistan. It is the sole largest industry in
Pakistan serving about the 35% needs of the country. Syed Baber Ali
Shah, who was the first managing director of Packages Limited, went
to Sweden in 1954 to negotiate the contract with Akerland & Rausing
of Sweden. Akerland & Rausing had been the leading paper
converters in Europe. In Pakistan, there was no previous experience of
a packaging industry. Therefore, Pakistanis needed technical
collaboration with their Swedish partners. In the beginning, the first
problem was the selection of site. Finally, Lahore was selected due to
the following reasons:
• Easy availability of workers.
• Easy availability of raw material.
• Easy transportation all over the country.
So, Ali family provided the capital, land, labor, management and local
experts while their partners provided technology, machinery, experts
and also training to Pakistanis. Syed Baber Ali was the first Managing
Director.

Page 10 of 47
 Mr. Syed Mratib Ali Shah laid the foundation stone on The 26th
of March 1956. The construction was started from the Solid Board
Department and by the end of October, 1956 the main shed of the
factory was completed. At the same time the Swedish engineers with
the help of Pakistani staff installed machinery. Packages Limited
started operating in May 1957 with a paid up capital of Rs. 4.94
million as a joint venture between the Ali group and Akerlund &
Rausing of Sweden. In the beginning 22 Swedish experts came to
Pakistan to run the factory and to train the Pakistani staff. In 1958
production of packaging cartons for different industries was started.
Usually, the packaging cartons are for Soaps, Confectionery, Biscuits,
Cigarettes, Tea, Pharmaceutical products and many other products.
Over the years, the Company continued to enhance its facilities
to meet the growing demand of packaging products. Additional
capital was raised from sponsors, International Finance Corporation
and from the public in making the total paid up capital to Rs. 31
million in 1965.

Since 1982, Packages Limited has a joint venture in Tetra Pak

Pakistan Limited with Tetra Pak International to manufacture paper
for liquid food packaging and to sell Tetra Pak packaging equipment.

Page 11 of 47
 The main industries covered by Packages Limited are:
o Soap Industry
o Shoe Industry
o Tissue Industry
o Tea Industry
o Tobacco Industry
o Food Industry
o Sweets & Confectioneries
Since 1957, Packages has been producing inks for its own
consumption. In 1993, the Company agreed to form a joint venture
with equity participation from Coates Lorilleux, world’s second
largest printing ink manufacturer to produce inks for Packages
Limited and the general market.
Also in 1993, a joint venture agreement was signed with
“Mitsubishi Corporation of Japan” for the manufacture of
polypropylene films at the industrial estate in Hattar, NWFP. The
name of this project was Tri-Pack Films Limited,
In 1995, an agreement was signed with UHDE of Germany to
setup a plant for the manufacture of Hydrogen Peroxide (H2O2), an
environmentally friendly bleaching chemical, with an annual capacity
of 12500 tones, near Lahore, Punjab.
In 1996, a joint venture agreement was signed with Print care
(Ceylon) Limited for the production of flexible packaging in
Sri Lanka.

Page 12 of 47
 Another important service department of the Packages Limited is
its “Power Plant”. In 1967 they set up 6 MW power plants, but to
ensure a continuous and dependable supply of power for its
production lines.

Page 13 of 47
 In the field of consumer products, Packages Limited has shown
tremendous potential and commendable talent. One of the consumer
products of the company are “Rose Petal” Tissues. The production of
Rose Petal was the first introduction of tissue paper industry in
Pakistan through which Packages has introduced so many brands of
tissues.

Page 14 of 47
Page 15 of 47
 MANUFACTURING DIVISIONS OF
PACKAGES
Packages Limited provides premium packaging solutions for
exceptional value to individuals and businesses. They are the only
packaging facility in Pakistan offering a complete range of packaging
solutions including offset printed cartons, shipping containers and
flexible packaging materials to individuals and businesses world-
wide.

The three manufacturing divisions of Packages Ltd are as

follows:

Page 16 of 47
-:MANUFACTURING DIVISIONS:-

The Paper and Board Division manufactures

paper and board from a mixture of wood,
pulp and other raw materials, and treats
effluent.

The Packaging Division takes materials

from the Paper and Board division and
converts customer ideas into finished products.
Under Packaging division they are engaged in
carton business unit where they produce
cartons for various businesses, they are also
engaged in corruwal business unit and they
have one flexible business unit where they do
flexible packaging using polythin material.

The Consumer Products Division, which

manufactures off-the-shelf branded consumer
products.

The product mix width of Packages Ltd is

five as it deals in 5 main business units.

Page 17 of 47
 PRODUCT STRATEGY
LEVELS OF PRODUCT

Core Product

TO
SOLVE

Augmented Product Actual Product

CORE The core benefit of Rose Petal tissues is that it is

PRODUCT solving hygienic and cleanliness issues and is
not polluting the environment because of its
disposable nature.

ACTUAL The actual product is the Rose Petal tissues. The

PRODUCT ingredients of Rose Petal tissues are wood, pulp,
wheat straw and perfumes. It is a fine quality
tissue made up of the combination of various
colors. They are in multi colors and are of
different sizes such as small pocket tissues, large
& medium toilet rolls, family and party tissues.

Page 18 of 47
AUGMENTED Rose Petal has monopoly in the tissue market as
PRODUCT it is capturing 80-85% of the market share of
tissues. It is considered to be a fast moving
product and has a huge range of tissues. It is
currently not offering any augmented features in
its product, but its authority is planning to cater
these issues in future.

PRODUCT CLASSIFICATION

CONSUMER Rose petal tissue is a consumer product and is

PRODUCT based on the quality oriented strategy where the
company is heading towards improvement and
awareness of the importance of using tissue
papers. It is promoting its product with the help
of wide range of distributors and many
advertisement campaigns.
Under consumer product it lies in the
category of convenience product.

CONVENIENCE Rose Petal is a convenience good because of the

PRODUCT following marketing considerations:

Page 19 of 47
CONSUMER Rose Petal is a fast moving good and a
BUYING
disposable product. People buy it frequently
BEHAVIOUR
with low involvement in the buying process
because the consumer buying behavior for these
tissues is variety seeking.

The target market of the Rose Petal tissues is

PRICE middle class and then they stretch up and down.
Their price range if from Rs.5- Rs.500 so that it
could be feasible for both consumers and
business customers in their buying.

PLACEMENT Company is using selling concept by distributing

(DISTRIBUTION) its product in the market through its
approximately 300 distributors.

Rose Petal is promoting its product in a very

PROMOTION effective manner. Any campaign it launches
through any medium is very strong and
effective. Nowadays it has chosen a new
medium i.e. cable TV as it is cheaper and more
effective.

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 INDIVIDUAL PRODUCT
DECISION

The following model represents the individual

product decision:

Product
Product Support
Branding Packaging Labeling
attribute Services

Page 21 of 47
 PRODUCT ATTRIBUTES
The attributes of Rose Petal tissues are

PRODUCT The aim of Packages Ltd is to follow the product

QUALITY concept which shows that the company is very
much particular and do not compromise on the
quality of its tissues. It has a separate quality
control department which tests the tissues in
terms of their quality on the spot before
dispatchment. So any loop holes in tissue
quality is checked at the same time.
In terms of quality control the Company is
relying on the following approach:

TQM Rose Petal has been following the TQM

APPROACH approach since their preliminary years to
capture the market in terms of their quality.
Now they are certified by ISO 9000 for
producing quality tissues. As Rose Petal is well
known in the market as a tissue brand so now
its authority is relying on R on Q (Return on
Quality) approach as it is viewing quality as an
investment and holding quality efforts
accountable for bottom line results.

Rose Petal relies on the two dimensions of

quality.

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 QUALITY Ability of the product to perform its functions is
LEVELS performance quality. Rose Petal focuses on
quality levels as it supports its tissue position in
the market e.g. Rose Petal facial tissues are soft
and gentle as their function is to be used for
facial concerns and party tissues are not that
smooth as their function is to be used in parties
for cleaning purposes.

Rose Petal relies on quality consistency as

QUALITY
this product is free from defects and is
CONSISTENCY
consistent in delivering a targeted level of
performance.

PRODUCT RANGE Following is the Rose Petal product range and

& FEATURES their features:

a) Rose Petal Multicolor facial tissues.

ROSE PETAL b) Rose Petal Perfumed facial tissues.
FACIAL TISSUES c) Rose Petal Luxury facial tissues.
d) Rose Petal Supreme facial tissues.
e) Rose Petal Pop up facial tissues.
f) Rose Petal Oro facial tissues.
g) Rose Petal Rumaal pocket pack.
h) Rose Petal Wet tissues.

They are soft and gentle and are fragrant.

FEATURES

ROSE PETAL a) Rose Petal Toilet rolls small.

TISSUE ROLLS b) Rose Petal Twin toilet rolls.
c) Rose Petal Toilet rolls bigger.
d) Rose Petal Paper towel.

They are used in kitchens and toilets for

FEATURES
cleansing purposes.

Page 23 of 47
 ROSE PETAL a) Party pack 500s.
PARTY b) Jumbo paper towel.
PRODUCTS c) Table napkins.

Party pack tissues are available in large quantity

FEATURES as they are used in parties.

ROSE PETAL a) N Fold Tissue Dispenser.

OTHER b) Rose Petal Dental Serviette.
PRODUCTS c) Rose Petal Coffee Napkin.
d) Rose Petal Coaster.
e) Rose Petal Dental Napkin.
FEATURES
Rose Petal provides different features in
products other than tissues as its coffee napkins
are useful while drinking coffee and its coaters
are useful to put under the tea cup on table and
its dental napkin and serviette are useful in
hospitals.

STYLE AND As far as product design & style is concerned

DESIGN there are 3 to 4 different styles and designs of
Rose Petal tissues. They change their product
design according to the occasions e.g. in basant
they launched their party size tissues with
colorful kites embossed on them.

BRANDING Recognition of product.

These days almost every product is known by
its Brand Name. Brand name helps consumer
identify the product. Brand name also tells the
buyer something about product quality. In Rose
Petal the word ROSE reflects the elegant
features of the product.
Color
Rose Petal is available in all colors of the season.

Page 24 of 47
PACKAGING Packaging is one of the important processes it
covers all the activities of designing and styling
the product.. In this process Managers have to
decide that how the product will be transferred
to the consumers. Rose Petal relies on the
following for its packaging:

PRIMARY PACK Tissues are placed in primary packs i.e. the

tissue boxes from which the consumer directly
pulls and consume the tissue. The logo and label
of the company and Rose Petal is embossed on
the tissue box.

CONTAINER Tissue boxes are packed in containers like

PACK cartons for their mobility. The logo and label of
Rose Petal is also printed on the cartons.

Page 25 of 47
 The logo of Rose Petal and of its company
LABELING
Packages Ltd is embossed on tissue box. They
change the color of their Rose Petal logo
according to the occasions like on Independence
Day they changed the color of Rose Petal logo
into green and white. According to the policies
for companies every product’s ingredients are
to be printed at the back of the product but Rose
Petal has not followed this policy because the
Company’s authority feels that if they mention
the tissue ingredients on the back of their tissue
pack it will create a negative perception in the
minds of the consumer about their product.

PRODUCT Currently they are not providing any product

support services for their consumer but they are
SUPPORT
planning to provide these services in future.
SERVICES

PRODUCT MIX DECISION

MIX WIDTH Mix width means Number of products
available under one Product Line. Packages
Ltd deals in five main business units under its
manufacturing divisions. i.e. Paper and board
unit, corruwal unit, carton business unit,
flexible business unit and consumer product
unit.

MIX DEPTH Mix depth means different versions of each

product. Total versions of each product in the
product line of Rose Petal are 36.

Page 26 of 47
 PRODUCT LINE DECISION
Rose Petal follows line extension with both product line decisions
i.e. Line Filling & line Stretching.

LINE They follow line stretching by offering various

STRETCHING ranges of tissues at different prices under the
brand name of Rose Petal.

LINE FILLING They follow line filling by providing different

versions under the same type of tissues at the
same price.

BRAND EQUITY
The positive differential effect of brand name Rose Petal on
consumers is its superb quality. As people think about Rose Petal,
quality tissues come in their mind this is the reason why
consumer are willing to pay more for Rose Petal tissues. So
quality is the measure of brand equity of Rose Petal tissues.

BUILDING STRONG
BRANDS
Model
Brand
Brand Brand Brand
name
Positioning Sponsorship Development
selection

Page 27 of 47
Following are the marketing strategies
through which we can build strong brands.

BRAND Rose Petal has designed its positioning

POSITIONING statement in emotional aspect.
Its positioning statement is:

“ROSE PETAL NA HOTA TO KIA HOTA”

This is an emotional positioning statement as

it cares for the emotions of people in their
busy life by catering their hygienic and
cleanliness problems. This statement tells the
consumer that if in the hour of need whether
you were to clean anything or you had
influenza you needed a product which could
be disposed off after its one use unlike the
handkerchief which you had to use the same
again and again. So this statement tells that if
Rose Petal was not there what you would
have done.

Page 28 of 47
BRAND NAME They have chosen the brand name ROSE
SELECTION PETAL so they can tell about the function of
their product. They were matching and
comparing the elegance of their product with
that of Rose as it is a very delicate and
fragrant flower. The concept behind this
brand name was that tissue box is like a rose
and tissues are like the petals of that rose.
They wanted to give you the feel that
holding a tissue in your hand is like you are
holding a delicate Rose Petal.
BRAND
Packages Ltd has the following sponsorship
SPONSORSHIP
option:

MANUFACTURER
The tissues manufactured in Packages Ltd
BRAND come under manufacturers brand.
Packages Ltd manufactures tissues, paper
cups and plates etc under their own
manufacturing brand Rose Petal. Rose Petal
manufactures tissues, coasters, paper cups
etc on orders for different companies,
hospitals, airlines etc with the Packages
embossed on the back of the tissue.
They also manufacture tissues on private
orders given by people on their various
occasions e.g. on weddings or birthday
parties etc.

Page 29 of 47
 BRAND DEVELOPMENT
Rose Petal has three choices when it comes to brand development

LINE Rose Petal is extending its product line by

EXTENSION adding new tissue range under the same
brand name (Rose Petal) and same nature of
product i.e. tissues like Perfumed, Luxury,
Supreme, Popup, Oro, Rumaal etc.

BRAND The authority of Rose Petal tissues is also

EXTENSION doing brand extension as with the same
brand name (Rose Petal) it is manufacturing
paper cups, paper plates, napkins, fold
dispenser, dental serviette, coffee napkins
and coasters in different sizes.

MULTI BRAND Packages Ltd also comes under multibrands

as it is offering additional brand in their
tissue category i.e. Tulip tissues which is not
their main tissue brand but acts as a fighting
and supporting brand for Rose Petal tissues.
Tulip tissues are also available in different
ranges.

Page 30 of 47
 PRICING STRATEGY
In the current era companies are playing with the price. Price is the
only factor in marketing mix which can generate revenue while the
other three factors represent cost. So this is very necessary to make
effective pricing strategies to compete in the market in long run.

Rose Petal is a special designed product under the head of

consumer products division of Packages Ltd. The prices of Rose Petal
have been set after a through study of the market. Packages Ltd had
the option that it could reduce the price of its regular pack so that
everyone could purchase it but the company knows that once the
prices are lowered then it is almost impossible to raise them again. For
this purpose Packages Ltd provided various ranges of tissues under
Rose Petal with different prices i.e. from Rs.5 to Rs.500 and every
range has its own target market. Rose Petal’s mix depth is 36. They are
relying on line stretching and line filling of their products in the
perspective of prices.

FACTORS CONSIDERED WHILE SETTING

ROSE PETAL’S PRICE

INTERNAL FACTORS
MARKETING According to the brand manager of Rose Petal
OBJECTIVES the market share of Rose petal has reached its
current maximum profit position. They are the
pioneers and the market leader in the tissue
market providing quality product. They can set

Page 31 of 47
 prices to keep the loyalty and support of
consumer and to avoid government
interventions. They can change their profit
percentage to kill the indirect competition with
mega companies.

MARKETING MIX Price is one of the only marketing mix tools

STRATEGY that the company uses to achieve its marketing
objectives. Price decisions must be co-
coordinated with the other 3 Ps. In TARGET
COSTING first they start with the idea of
setting the price then they get the actual cost
and after that they ensure what price should be
settled.

TYPES OF COST TOTAL COST= FIXED + VARIABLE

COST COST

EXTERNAL FACTORS

THE MARKET Packages Ltd is enjoying monopoly for last 24

TYPES years so this is another reason for charging
higher prices as compared to secondary
competitors.

GENERAL
If the government increases the general sales
SALES
tax from 15 – 20 % then it highly affects the
TAX
prices of Rose Petal tissues.

Page 32 of 47
 GENERAL PRICING
APPROACHES
The company can set a price anywhere between a low to produce a
profit and one that is too high to produce a demand. Product cost sets
a floor to the price; consumer perceptions of the product’s value set
the ceiling.
In general pricing approaches the company is following
the cost based pricing approach.

COST BASED PRICING

APPROACH
The company is following the cost based approach and one of the
price settlement model for their a Pop Up tissue is as follows: ]

VARIABLE COST =
FIXED COST=
UNIT COST=
EXPECTED UNIT SALES=
UNITS COST=
SALES TAX= 15 % of cost

UNIT COST = (VARIABLE + FIXED)/UNIT SALES

UNIT COST =
MARKUP PRICE= UNIT COST___________ =

Page 33 of 47
 (1-DESIRED RETURN ON SALES)

SELLING PRICE = UNIT COST + MARKUP PRICE + SALES TAX

SELLING PRICE =

DISTRIBUTION STRATEGY
The network made by the company, suppliers, distributors and
ultimate consumers makes the distribution setup. The distribution of
products of a company is important for its sale. In case of Rose Petal,
the distribution is very important because of its aggressive demand in
the market. This is the reason why Rose Petal is available in huge stores
as well as small retail stores.

DISTRIBUTION Rose petal has a set of interdependent

CHANNEL organizations involved in the process of making
tissues available for use of the consumer. Rose
petal has made the distribution channel so that the
product can reach to almost all of the outlets. So as
we have mention about the type of customer with
whom the company is dealing so they are using
both the following channels.

 Business marketing channel

 Consumer marketing channel

BUSINESS For the business Clients, Rose Petal is using direct

MARKETING marketing channel where the company is directly
CHANNEL dealing with the client. Due to this they take direct
order from them and design tissues according to
the will of the client

CONSUMER For the consumer marketing, the company is

MARKETING using indirect marketing channel where it has

Page 34 of 47
CHANNEL added intermediary parties like wholesaler,

retailer so that the product can reach all parts of

the market efficiently.

CHANNELS FOR CONSUMER PRODUCTS

WHOLESALER Rose petal has a huge wholesale set up. They have
CHANNEL approximately more than 300 wholesalers and is
from big city to a small town in Pakistan. Rose
Petal gives immense importance to this so that’s
why their distribution channel is spread like roots
of a tree.

RETAILERS Mostly retailers buy the product from wholesalers

CHANNEL and some retailers like (C.S.D, HKB) directly buy
from company and then the consumer buys from
them.

TERRITORY Rose petal has territory officers which controls the

OFFICERS distribution set ups effectively. Every region has
its own territory officer.

LEVELS OF DISTRIBUTION INTENSITY

INTENSIVE Intensive distribution means distributing a

product to as many retail outlets as possible. Rose
Petal distribution is very intensive. As it is
consumer convenience product so customers’
convenience come first and the company’s aim is

Page 35 of 47
 to provide the good at the door step of the
consumers.

VERTICAL MARKETING NETWORKS

Vertical Marketing Network consists of suppliers, wholesalers and

retailers acting as a unified network. Either one channel member
owns the others, has contracts with them, or has so much power
that they all cooperate. The vertical marketing network can be
dominated by the suppliers, wholesalers or retailers.
Rose petal has its wholesaler or retailers who are
providing its product to its target market.

TYPES OF VERTICAL MARKETING

SYSTEM

ADMINISTERED The rose petal is coordinating with its

wholesalers for the distribution of the
product.

RETAILING
Retailing involves all the activities in selling goods to the ultimate
consumers. Major retailers of Rose Petal are convenience stores
and super stores.

CONVENIENCE STORES

Convenience stores are relatively small stores located near

residential area. They are opened for long hours, seven days a
week.

Page 36 of 47
 SUPER STORES
Super stores are very large stores traditionally aimed at meeting
consumer’s total needs for routine purchased food and non-food
items and our product is a non-food item.

MAJOR LOGISTICS FUNCTIONS

Folowing are the logistic functions which the company follows for its
distribution :

• WARE HOUSING
• INYENTORY MANAGEMENT
• TRANSPORTATION

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 PROMOTION

ROSE PETAL PROMOTION STRATEGY

Promotion is an ongoing process that requires much planning. A

strategy is simply a careful plan. The effectiveness of strategy
depends on more than how much money has been put into it.
Effectiveness results from the thoroughness of planning and the
consistency with which activities has been carried out.

IDENTIFYING The Rose Petal marketer had identified their

THE TARGET target market as they incorporated. The target
AUDIENCE market is middle class and then they stretch up
and down so they design promotional
campaigns keeping in view the target market

BUYERS Buyer readiness stage of rose petal is

READINESS conviction as now consumer believes that rose
STAGE petal is the best brand in the market.

Rose petal is using functional promotion

CHOOSING campaign as they are relying on functional
A MESSAGE positioning statement

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 They are using all the non personal
CHOOSING communication mediums to reach the
consumer and tell them that Rose Petal is the
AMONG
need of today and the life without Rose Petal
MAJOR
can’t be imagined so the campaign of Rose
MEDIA Petal is following these medias:
TYPES

 Television.
 Magazine
 Newspapers.
 Radio

SELECTING A Rose petal is using the celebrity system of

MESSAGE advertisement as they are focusing on
SOURCE Pakistani market so they are using Pakistani
celebrities as opinion leaders in the
commercials of their product.

PROMOTION MIX STRATEGY

PULL For Rose Petal Packages LTD is following

STATEGY PULL Strategy. Packages LTD run heavy
promotional campaigns and health seminars
for Rose Petal to create awareness of the
tissue usage among people. Once people get
well aware of the importance of the product
usage, they will demand the product from
the retailers.

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 MAJOR MARKETING DECISION
Advertising decision is based on following decision.

OBJECTIVE Rose Petal is focusing on reminder

SETTING advertising.

Rose petal is using most logical

BUDGET budget setting method as it first
DECISION set its goals to be accomplished
and then estimate it’s cost of
performing these tasks.

Rose Petal is executing its

MESSAGE message through slice of life as
EXECUTION it shows bride using Rose Petal
in the TV ad.

Rose Petal is using radio, TV

MEDIA
Radio, magazine and newspaper.
DECISION
For this purpose concept of Pulsing was
DECIDING ON used. Pulsing means scheduling ads
MEDIA TIMINGS unevenly over a given time period. The idea
behind pulsing was to advertise heavily for
a short period of time to build awareness
about the package.

Rose Petal evaluate its advertising

EVALUATE
campaign by comparing its past
ADVERTISEMENT
sale with past advertising expenditure

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 MARKETING MANAGEMENT
ORIENTATION
Marketing management wants to design strategy that will build profitable
with target consumer but the philosophy should guide the company how to
produce the goods in which quantity and how to create interest of consumer
in the product and giving value preposition to the consumer.
There are five alternatives concepts under which organizations can design
their marketing strategy.

 The Production Concept.

 The Product Concept.
 The Selling Concept.
 The Marketing Concept.
 The Societal Marketing Concept.

However Rose Petal is following the three concepts.

PRODUCT Rose Petal is based on quality oriented strategy

CONCEPT where the company is heading towards
improvement and awareness of the importance of
using tissue papers perusing the product concept.

SELLING With the help of wide range of distributors and

CONCEPT many advertisement campaigns, the management of
Rose Petal focuses on selling concept

Packages Ltd is also following the Societal Marketing

SOCIETAL
concept as the authority of Rose Petal tissues has
MARKETING installed an environmental plant worth 10 millions
CONCEPT for air purification and has run effective earth quake
relief campaigns at the disaster of 8th October, 2005.
The product (Rose Petal tissues) itself is designed for
the human long term welfare i.e. good health.

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 MARKETING PHILOSOPHY

Packages Ltd is pursuing on customer driven marketing strategy for its

consumer product (Rose Petal tissues). They design their product and its
strategies according to the needs and wants of their customers e.g. Rose
petal tissues has launched another tissue (table napkins) in the market
which was demanded by various food chains like PC, Avari, Pizza Hut,
McDonalds etc.

CONSUMER WANT

A lot of cleanliness and unhygienic issues were prevailing in the

country where people were suffering from various viral diseases and due
to its infection in the air the rate of sick people were alarming. Due to
these problems the consumer wanted a product which could solve these
problems and functions like the handkerchief and which could also be
disposed off after its one use. Rose Petal tissues fulfill this want

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 CORPORATE PORTFOLIO
ANALYSIS OF ROSE PETAL
TISSUES
POSTION OF PACKAGES LTD FOR ROSE PETAL
IN BCG MATRIX:
Packages Ltd lies among stars in the BCG matrix:

STARS
Packages Ltd lies among stars as it holds dominant share of the tissue
market and the growth rate of the company is also very high in the
perspective of Rose Petal tissues.

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 PRODUCT LIFE CYCLE
STRATEGY OF ROSE PETAL
TISSUES
The product (ROSE PETAL) lies in the maturity stage of product life
cycle strategy:

GROWTH
The reason why Rose Petal comes under growth stage is that
the product has achieved acceptance by most potential buyers and is
enjoying monopoly in the tissue market for the last 2 decades and is
still growing with an alarming rate introducing new variants in its
fleet.

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 RECOMMENDATIONS AND
SUGGESTIONS

After the thorough analysis of the Company Packages Ltd regarding

Rose Petal, we recommend them the following:

PRODUCT
AUGMENTED Rose petal is not offering any augmented
FEATURES features like they are not giving any additional
services to their customers for example Raabta
facility. We recommend them to print either their
e.mail or mailing address or web site or any
U.A.N number at the back of the tissue box in
future for any complaints and suggestions of
people
QUALITY
People are quite satisfied with the quality and
branding of Rose Petal tissues. Rose Petal
captures 80% of the market share. For acquiring
the other 20% share, we recommend them to
carry on TQM (Total Quality Management)
approach. Through this approach the Company
keeps on improving the product constantly and
will also be able to attract its potential customers.
PACKAGING Attractive packaging gives an edge to the
Company over the competitors. So we
recommend them to enhance their packaging
which looks innovative and creative. Packaging
is the only tool which captures the attention of
the buyer and leads the product to success.

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 PLACEMENT
APPLYING According to the marketing research conducted
PROPER by us, only 56% of the people are satisfied with
MARKETING the availability of Rose Petal tissues at their
LOGISTICS nearest shop but rest are not especially in rural
and remote areas. So Packages Limited should
apply proper marketing logistics especially in the
rural and remote areas: which means to plan,
implement and control the physical distribution
of Rose Petal tissues from point of origin to point
of consumption (right product to right customer
in right time at the right place).

SHELF To gain maximum attention of customers, the

ATTENTION product should be placed on the front shelf of the
(Availability) nearest shopping outlets. Packages Limited
should follow this technique. Flying and other
competitors of Rose Petal tissues occupied 20%
share in the market just because of their
availability and shelf attention.

PROMOTION
Packages Limited has been selling Rose Petal
BRAND tissues for the last 24 years and brand recalling is
RECALLING the only way to retain actual customers as there
is a threat that many new competitors can come
in the tissue paper market such as China paper
industry after WTO.

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 Through this marketing research, it is clear that
Rose Petal lacks in the outdoor advertisement
OUTDOOR that’s why we recommend them to focus on
ADVERTISEMENT promotion campaigns through billboards,
signboards and posters.

Rose Petal is now promoting its product on cable

TV because it is cheaper as compared to other
mediums and at the same time it is capturing
CABLE
small areas for its promotion. We recommend the
TV PROMOTION
company to carry on with this medium and to
broadcast Rose Petal on popular channels to
capture maximum market as it is an effective
way for promotion.

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THANKS.

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