Acknowledgement

In the name of “Allah”, the most beneficent and merciful who gave us strength and
knowledge to complete the project. This report is a part of our course “Principles of
Marketing”. This has proved to be a great experience. I Maaz Khalid as a group leader
appreciate all my group members who supported each other and the way they
coordinated with me.
We would like to express our gratitude to our marketing teacher Miss. Marium Fatima;
she really guided us a lot and helped us in fulfilling our report. We think that without her
support and help we would not have been able to complete it. We would also like to
thank our colleagues who participated in a focus group session. They gave us many
helpful comments which helped us a lot in preparing our report.

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Executive Summary

Introduction to our new product

Vision and Values form our company
• Our vision
• Our values
Research and Development
• Research for new product
- Need for marketing research
- Marketing research process
• Product development process
- New product
- New product strategy
- Stages in development process
- Idea generation
- Screening ideas
- Business analysis
- Market test
- Commercialization
Marketing strategies
• Analyzing consumer demands
- Determining demand pattern
- Establishing possible basses of segmentation
- Geographic
- Demographic
- Psychographic
- Behavioral
- Identifying potential markets

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Positioning of product
Product life cycle
• Introduction stage
• Growth stage
• Maturity stage
• Decline stage
Marketing mix
• Product
• Price
• Place
• Promotion
Estimated budget for “live it up”
Competitors analysis
Conclusion

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 Introduction to Our New Product

“Drink More & Stay Healthy”

“Live it up!” is a sugared, fruit-flavored, uncarbonated soft drink for consumers

watching their calorie count. The Punch flavored “Live it up!” is a combination of
different fruit extracts formulated by research work of the R&D (research and
development) department of our company “Metropoleton bevreges and food industries
ltd.” This year. It was intended as a breakfast drink, but the survey conducted by our
team reports that there are many consumers who could be delighted by “Live it up!” any
time of the day.
“Live it up!” can be the local leader in the field of uncarbonated soft drink, By
providing a nutritious, real fruit-mix flavored drink at an affordable price.

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Vision and Values Form Our Company

Our Vision...

Helping People Around the World Eat and Live Better

Our vision captures the essence of who we are. Everything we do flows from our vision.
We just don't happen to be a business that sells food – it's what we're all about. Our
vision is about meeting consumers' needs and making food an easier, healthier, more
enjoyable part of life.
Our vision tells the world – our employees, customers, consumers and the communities
where we make and sell our products – what we care about. It captures the importance
of health and wellness, but it also embodies all the ways we can eat and live better, such
as the enjoyment of a dessert, the convenience of a microwave meal, the safety and
value of our products and the services and solutions we provide.
Our Values...
 Innovation – Satisfying real-life needs with unique ideas
 Quality – Fulfilling a promise to deliver the best
 Safety – Ensuring high standards in everything we make
 Respect – Caring for people, communities and the environment
 Integrity – Doing the right thing
 Openness – Listening to the ideas of others and encouraging an open
dialogue

These six values are what we stand for, the standard of conduct we hold ourselves to
and our commitment to the people who work with us, invest in us, and purchase our
products. They plainly communicate what the world can expect of our products and
what we must expect of ourselves.

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Research and Development

Research Process for New Product:

Research for new product is conducted in two steps:

1. Need for marketing research.

2. Marketing research process.

Need for marketing research contains two steps:

• Competitive pressure:

To be successful in long run survival, our company must develop and market
new products more quickly than ever before. This require research to monitor
customers need and to know what the competitors are doing.

• Look before you leap:

Marketing strategies for “Live it up!” could be expensive and cause severe
damage to our company if they fail, therefore before undertaking a marketing
program we have analyzed the market, the competitors such as “Frost” and
“Frooto”.

Marketing research process contains three steps:

• An informal investigation:

We collected the readily available information from inside and outside the
company – middlemen, competitors, advertising agencies and consumer.
This was a critical step in our research it determined that we needed further
research.

• Plan and conducted a formal investigation:

 We utilized “secondary data”, available due to previous research.

 We obtained “primary data”.

• Survey:

We conducted survey by interviewing people, our interviews were mostly in

person, however we also used telephone and mail. By surveying we were able to
interact directly with people we were interested in.

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Product Development Process

New product:

The new product that we are going to offer the market is mix fruit punch which is a
uncarbonated soft drink. The Punch flavored “Live it up!” is a combination of different
fruit extracts formulated by research work of the R&D (research and development)
department of our company.

New product strategy:

A new product strategy is a statement identifying the role a new product is expected to
play in achieving corporate and marketing goals. By introducing “Live it up!” as our
new product we aim to establish a position for our company in a new market.

Stages in the development process:

“Live it up!” our new product is developed through a series of six stages shown in flow
chart below,

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• Idea generation:
Our idea starts with idea generation. The idea for this sort of juice was prompted
by the minds of our creative team.

• Screening ideas:
“Live it up!” was evaluated to determine whether if it needs further studies.

• Business analysis:
During this stage our management;
a) Identified product features.
b) Estimated market demand, competition, and profitability for “Live it
up!”.
c) Established a program to develop the product.
d) Assigned responsibility for further study of the product feasibility.

• Prototype development:
We observe that the results of the analysis were favorable so, we created sample
of the product.
We created small sachets of ready to drink juice for trial and then we evaluated
technically to determine whether it is practical to produce the product.

• Market tests:
We than carried out external or market tests involving actual consumers. We
distributed samples of “Live it up!” to a certain amount of people of different
geographic and demographic regions to drink and give their reviews.

• Commercialization:
In this stage, full-scale production and marketing programs are going to be
planed and implemented.

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Marketing Strategies:

Analyzing consumer demand

The initial phase in planning a target market strategy consist of three steps.

• Determining demand pattern.

• Establishing possible bases of segmentation.
• Identifying potential market segment.

Determining demand pattern

Demand pattern shows how similar or different consumer desires are for a product.
Our product according to records produced by our research and development department
can be placed in clustered demand.

Clustered demand:
In clustered demand consumer needs and desires can be grouped into two or more
identifiable cluster (segments) each with own set of purchase criteria

Establishing possible base segmentation

There is no single way to segment a market. So, we tried different segmentation

variables, alone and in combination, to find the best way to view the market structure.
Table A page no. 10 out lines the major variables that might be used in segmenting
consumer markets.

Segmentation Variables:

1. Geographic.
We divided the market into different geographical segment units such as, states,
regions, counties, cities, or neighborhoods.

2. Demographic.
We divided the market into groups based on demographic variables such as age,
gender, family size, family lifecycle, income, occupation, education, religion,
race, generation, and nationality.

3. Psychographic.
We divided a market into different groups based on social class, lifestyle, or
personality characteristics.

4. Behavioral.
We divided a market into group based on consumer knowledge, attitude, use, or
response to our product.

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Identifying the potential market segments

After establishing possible bases of segmentation we have developed consumer profiles

which identify potential market segments by aggregating consumers with similar
characteristics and need and separate them from those with different characteristics and
needs.

Table A

Segmentation Variables Data

Geographic
World region Asia
Country Pakistan
Cities All major cities of Pakistan
Density Urban
Climate Hot and Dry
Demographic
Age All ages
Gender Male, Female
Family size 1-2, 3-4, 5+
Family life cycle Young, Single; Young, Married, no children; Young,
Married with children; Older, Married with children; Older,
Married with no children under 18; Older, Single; Other
Income Rs.30,000+
Occupation From middle class to upper class
Education Schools, Colleges, Universities
Religion Major religion of Islam, Christianity and Hinduism and
small percentage of others
Race Asian
Nationality Pakistani
Psychographic
Social class Working class, Middle class, Upper class.
Lifestyle Actualizes, Fulfilled, Believers, Achievers, Strivers,
Experience’s makers and Strugglers
Behavioral
Occasions Parties, Birthdays, Sports and Regular Occasions
Benefits Quality, Taste, Economy, Health
User status First time user

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Attitude towards product Positive

Positioning of Product

Of utmost importance to a firm in its product-planning efforts is how the new item in its
product mix are perceived (positioned) in the market place. So, we especially worked to
ensure that our product is perceived as we want it to be, by target market
As we are offering a new product, so, we clearly communicated its attributes:

• What is it?
Our product is a fruit-flavored, uncarbonated soft drink.

• What does it do?

It is a healthy low calorie drink for consumers watching their calorie count.

• How is it better than the competitors’ product?

It is better then competitors’ product because it provides a nutritious, real fruit-
mix flavored drink at an affordable price.

• Who should buy it?

Demographically it is for consumer of all ages targeting middle class and upper
class

Our goal was to know that how consumers perceived the product attributes we
intended. Through Product Positioning, we can map our product in terms of
consumer perceptions and desires, competition, other company product, and
environmental changes.

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Product Life Cycle

Life cycle of any product can be factorized into four stages

1. Introduction stage.
2. Growth stage.
3. Maturity stage.
4. Decline stage.

Introduction stage:

The introduction stage of the product in the product life cycle is the stage when the new
product is newly launched and made available for purchase. Introduction takes time, and
sales growth is apt to be slow.
In this stage, as compared to other stages, profits are low because of the low sales and
high distribution and promotion expenses. Much money is needed to attract distributors
and build their inventories. Promotion spending is relatively high to inform consumers of
the new product and get them to try it.

Growth stage:

If the new product satisfies the market, it will enter a growth stage in which sales will
start climbing quickly. The early adopters will continue to buy, and later buyers will start
following there lead, especially if they hear favorable words of mouth.
Profit increase during the growth stage, as promotion costs are spread over a large
volume and as a unit manufacturing costs fall.

Maturity stage:

At some point, a product’s sales growth will slow down, and the product will enter
maturity stage. This maturity stage normally lasts longer than the previous stages, and it
posses strong challenges to marketing management. Therefore then we will need to
modify the market product, and marketing mix.
In modifying the market, our company will try to increase the consumption of the current
product. Then we will looks for new users and market segments.
Our company then can also try modifying the marketing mix by changing one or more
marketing mix elements. We can cut price to attract new users and competitors’
customers. We can launch a better advertising campaign or use aggressive sale
promotions. Our company can also move into large market channels, using mass
merchandisers. Finally, our company can offer new or improved product.

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Decline stage:

The sales of most product eventually dip, however decline can be slow. sales may
plunged to zero, or they may drop to low point where they continue for many years. This
is decline stage.
Sales decline for many reasons, including technological advancements, shifts in
consumers taste, and increased competition.
Our company will never enter the decline stage if we continuously remain informed
about every market situation.

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Marketing Mix

Product

“Live it up!” the new product we are going to offer has all the major features which are
demanded by consumer who value both health and taste;
“Live it up!” is a combination of different fruit extracts and is a high quality juice
prepared in highly mechanized factory.
“Live it up!” is packed in orange capped containers having attractive labels with
impressive designs.

Price

Our pricing strategies will be so as to increase sales volume of our product to stop other
firms from entering the market and also to recover the cost incurred in producing the
product.
We targeted the market that comprises of consumers falling into medium, upper medium,
and higher class, therefore we have to price our product so that it is affordable by all
consumers of our targeted market.

Place

“Live it up!” is going to be available in every shop in areas occupied by middle class and
upper class, initially it is going to be launched in few major cities of Pakistan and then
gradually it is going to be sell in many other cities.

Promotion

Advertising strategies made for “Live it up!” are designed according to the demands of
current era, advertisement is going to be attractive as well as informative to provide
information about our product, its quality, features, and benefits to our desired segments.
Advertisement is going to be done of all types like it will be done through television
media as well as through print media.
We will also undertake door to door campaigns and different kind of promotion activities
in schools, colleges, and universities.
Setup stalls in shopping malls and in different well known food and beverages
exhibitions.

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Estimated budget for “live it up”

Estimated per unit cost:

Cost incurred for production – Rs.6.75/=

Cost incurred for packaging – Rs.3.75/=
Cost incurred for labeling – Rs.2.25/=
Total cost – Rs.12.78/=

Selling Price – Rs.15

Profit – Rs.2.22

Advertising expense – Rs.10,000/=

Hypothetically if we assume that we sell 10,000 units,

Total expense for 10,000 units will be,

12.78*10,000 = 127800
add
Advertising expense Rs.10,000/=
Total cost will be Rs.137800/=

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Competitors Analysis

In order to penetrate the target market, we need to develop a high market-share for “Live
it up!”. With many different established beverage products in the market we are going to
face cutthroat competition in the near future.
Major and prominent threats will be posed by:

• Nestle Juices
• Frost
• Frooto

In order to gain a competitive edge over our competitors we intend to keep the quality
high and along with this we will keep prices low in comparison to our competitors.

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Conclusion

“Live it up!” is a new beverage to be launched in Pakistan with its refreshing taste. “live
it up!” is for all ages. Keeping in mind the value for customers Metropolitan foods
provides high quality food products to its customers without compromising on quality
and keeping them easily available. We will introduce promotional offers from time to
time sponsoring events; like galas, concerts and lucky draws with live it up logos.
Cutting it short our new product is a drink for health conscious people who believe in
quality of life.

Live Life Up with “Live it up!”

“Drink More & Stay Healthy”

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Questionnaire

Q1. What do you prefer, carbonated or uncarbonated drink?

Carbonated 40%
Uncarbonated 60%

Q2. What flavor do you prefer for juices?

Orange 35%
Mango 15%
Mix fruit 60%

Q3. What is your daily intake of juices?

Onece 40%
Twice 25%
Thrice 20%
More then thrice 15%

Q4. Do you like more refreshing drinks?

Yes 75%
No 25%

Q5. Are you conscious about the amount of calories?

Very conscious 50%

Quite conscious 35%
Not at all 15%

Q6. How much amount of money will you spend when buying a soft deink?

Above 10 40%
Above 25 30%
Above 50 30%

Q7. Does “Live it up!” really quenches your thirst?

Yes 80%
No 20%

Q8. Is the price of “Live it up!” is cometable with the price of other competitors?

Yes 85%

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No 15%

Reference List

Research and Development

Hair, B. 2003, Marketing research, TATA McGRAW HILL

Marketing strategies
Kotler, 1999, Marketing Management, kogan page.

Positioning of product
Kotler, 1999, Marketing Management, kogan page.

Product life cycle

Kotler, 1999, Marketing Management, kogan page.

Marketing mix
Baker, 1999, The Marketing Book, fourth edition, Butterworth Heinemann

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