PRINCIPLE OF MARKETING

Topic of Project

Launch of new Product

Submitted to:
Sayed Faisal Abbas

Submitted BY:
Sawan Reg # 13443

PRINCIPLE OF MARKETING

Table of content

Acknowledgement Executive Summary About US Product concept Mission Statement S.W.O.T Analysis Market opportunity Analysis Strategic Application Market Segmentation Promotional MIX Pricing Positioning Distribution Estimate demand Sales Forecast Conclusion

3 4 5 6 7 8 9 10-13 14 15-16 17 118 19-20 21 22 23

PRINCIPLE OF MARKETING

Acknowledgements
3

PRINCIPLE OF MARKETING

I am very thankful to Sayed Faisal Abbas for providing me this wonderful chance to work on this dynamic and exciting project. I would also like to give my best regards. All of your input was very valuable to me in recognizing and realizing what essentials do we need to answer in order to better accommodate the market I was trying to target with my product/service concept.

PRINCIPLE OF MARKETING

Executive Summary
The Idea behind the compilation of this report is to focus on the introduction of a new brand of LASSI in particularly Karachi for the first time with the name of

Nagori LASSI since there is no other LASSI brand in the market. Nagori LASSI
tries to cater to all those people who are health conscious and wants to enjoy this traditional drink which gives the assurance of having highly nutritional ingredients.

Nagoris strategy involves providing for its customers with the best possible
experience of having a LASSI like never before, and to create fruitful relationships with them by delivering the products at the supreme quality as per our promise, this will be accomplished by providing our customers with the best and the most freshest possible Dairy products starting with the famous traditional drink LASSI as the experience of drinking this drink with be an unforgettable for them due to the great taste and quality which reflects this great traditional drink LASSI in its true meaning . As discussed earlier my target market will be the health conscious and opinion leading people of our society hence our competition will be with all those places where this drink is available like the milk shops specially the ones which are famous like the Rahat Milk Shop in DHA Phase II etc. Thus we dont have a direct competition yet as I am the first one to offer it in Tetra pack packing and with the exciting and good quality drink in terms of the highly nutritional ingredients which are added in our drink which differentiates it from others in the market.

PRINCIPLE OF MARKETING

About Us
Pakistani cuisine is as diverse as its people. Among the drinks or beverages consumed in Pakistan LASSI is quite popular. It is a traditional INDO/PAK dairy beverage, originally from Punjab, made by blending yoghurt with water, little milk, salt or fruits (depending on the type of Lassi) until the drink become frothy. It is consumed by one billion ASIANS throughout the world. Its also popular in British and Canada too. With its smooth, cool and refreshing taste, it is the perfect accompaniment to the hot and spicy flavors that epitomize Pakistani cuisine and it is also very refreshing if taking in breakfast of in evening as its a good source of refreshment. This drink is economical and plentiful in Pakistan where cows and buffalos provide an overflow of dairy-based recipes. Nagori is a well known name in dairy business. We have more than 50 Milk shops in Karachi and we are selling different dairy products and serving customers for 30 years. Now Nagori decided to enter in industry from small business. Nagori come up with a new product named Nagori lassi. Lassi aids digestion and is healthy addition to any balanced diet. Lassi is 100 percent natural and its free from artificial colorings, preservations and flavorings. Besides offering health benefits, lassi is also indulgent and can be enjoyed with or between meals.

Nagori LASSI focuses on these traditional values and provides the same great
taste with a high quality product which offers to its customers the chance to enjoy this healthy drink with a great variety of flavors in its original form and ingredients. It allows the people to be assured as per the ingredients of the product are highly nutritional as per health perspective and the environment where its made is hygienic which makes the customers who were willing but due to the unavailability of these two factors in this product couldnt enjoy this drink now they can .

PRINCIPLE OF MARKETING

So just try this drink once and then you will be forced to drink it again and again due to its quality and the same great traditional taste!!!!

PRINCIPLE OF MARKETING

Product Concept
In this report I am proposing the idea of launching a new brand by the name of

Nagori LASSI. Nagori LASSI will offer to its customers an authentic and
traditional drink that is LASSI which will depict our culture and history as its a famous drink, along with many new and exciting flavors that will give the experience of drinking it as a treat which every one would like to have it.

Brand Logo

PRINCIPLE OF MARKETING

Mission Statement
MISSION VISSION VALUES

Our Mission:

NAGORI mission is to become the market leader through best known brand
associated to quality and health. Our Vision:

NAGORI vision is to give its customers highly nutritional products and build a brand
which is known for its commitment and quality of its products. Our Values: PASSION for the industry. INTEGRITY in words and actions. COMMITMENT to our employees and their success. SERVICE-ORIENTED mindset. ACCOUNTABILITY to the financial and quality of our product.

PRINCIPLE OF MARKETING

NAGORI LASSI S.W.O.T Analysis

NAGORI LASSI Strengths:
The major strength of our brand is its uniqueness in the market as it is the only brand which is offering this traditional drink with the tetra packaging as well as with the exciting flavors. The drink is highly nutritional and hygienic. The way its been made which differentiates it from any other offering in the existing market.

NAGORI LASSI Weaknesses:

Our weakness may be our narrow approach pertaining to the market segment that we chose to exploit, as focusing to much on just a few segments of the market puts a strain on our brand to stand up to and exceed our customers expectations. Opportunities for NAGORI LASSI: One of the biggest opportunities for us is that NAGORI is a well known name in Dairy market of Karachi particular we can try to extend our brand to other major cities of Pakistan in order to fully reap the rewards of our unique offering. Threats to NAGORI LASSI: The only major threat to our brand could be the entrance of competing companies like Nestle, Engro foods and Haleeb that offer a number of dairy products and due to the market share they have , they could bring out the same product like ours and over take the edge of uniqueness which the NAGORI LASSI has at the moment.

10

PRINCIPLE OF MARKETING

NAGORI LASSI Market Opportunity Analysis

Based on the market analysis we are able to say conclusively that there is a big segment of people just waiting to be explored. As the level of education is increasing in our society is increasing level of concern of people about their health has also increased. People are now more diet conscious than before. These people chosen to participate in our survey are mostly the opinion leaders of the market, these are the young and the affluent classes that are our primary target and when we have successfully captured this segment there are prospects that we will be able to extend our brand.

Keeping the above consumer trend in view we can definitively say that our brand has a lot of potential for growth in the current market as we differentiate ourselves by offering nutritional products.

11

PRINCIPLE OF MARKETING

The LASSI Market

(Strategic Application)
In this section we would like to address a few technical aspects of our project concept as to how do we see our selves in todays competitive market place of hip and trendy restaurants?

NAGORI LASSI According to Ansoffs Grid:

The product/market grid of Ansoff is a model that has proven to be very useful in business unit strategy processes to determine business growth opportunities. The product/market grid has two dimensions: products and markets. Over these 2 dimensions, four growth strategies can be formed: Market penetration, Market development, Product development, and Diversification

12

PRINCIPLE OF MARKETING

Keeping in view of the above strategies as explained in the Ansoffs grid we will be using the diversification strategy for our brand. Why we are using the MARKET DEVELOPMENT strategy is because we are planning to enter into a relatively new market as for our company its a new market but the product which we are offering is not new because it is available at most of the milk shops.

13

PRINCIPLE OF MARKETING

NAGORI LASSI Competitive Strategies:

In this part we are going to be discussing the competitive aspects of our brand , we take a brief look at all the possible strategies that firms, organization and brands use in order to gain the edge over the market

14

PRINCIPLE OF MARKETING

As we all know a firm's relative position within its industry determines whether a firm's profitability is above or below the industry average. The fundamental basis of above average profitability in the long run is sustainable competitive advantage. There are two basic types of competitive advantage a firm can possess: low cost or differentiation. The two basic types of competitive advantage combined with the scope of activities for which a firm seeks to achieve them, lead to three generic strategies for achieving above average performance in an industry: cost leadership, differentiation, and focus. The focus strategy has two variants, cost focus and differentiation focus. 1. Cost Leadership. 2. Differentiation. 3. Focus. The focus strategy has two variants. (a) (b) Cost advantage in the target segment, Differentiation in its target segment.

Over here we are going to be following the broad differentiation strategy by providing to our customers High quality products within an industry segment i.e.
15

PRINCIPLE OF MARKETING

broad differentiation to gain the competitive advantage in the market, as we will be offering to our customers good quality product, and a uniqueness in our offering by creating several value added things such as offering it in a number of flavors and also giving it as a Low fat drink.

Guess who is drinking!!!

16

PRINCIPLE OF MARKETING

(Target Market and Segmentation)

Market Segmentation:
Following variables are going to be looked into to develop a marketing strategy Demographic: Age: Income: All ages PkR45,000/- and above

Family size: 2 and above Psychographic: Social class: Upper middle and middle class Lifestyles: Geographical: Location: Density: Behavioral: Occasion: Benefit: Frequent, regular Taste and quality Karachi Urban Health Conscious

Yes. We are here with a bang!!!

17

PRINCIPLE OF MARKETING

(Promotional Mix)
In designing the promotional mix for NAGORI LASSI we will be using several different mediums and ideas to create an image of great taste and quality of our product for our customers this will be accomplished in the following way Advertising: In order to advertise our product we will be using several 18 second spots each individually designed to grab the viewers attention and to deliver our message of being: LASSI!!! The old tradition in a new way NAGORI TV Commercial Cost: PkR150,000/Print Media: Along with TV commercials we will be placing teasers in some of the most read news papers of the city Print Add Cost: Jang The News Out Door Advertising: We will be placing billboards along key locations in Karachi such as Teen Talwar, Zamzama, Bahadurabad area, Out Door Advertising Cost: Cost of Billboard: PkR450 / Square feet. Dawn PkR645,000/- (Inside page) PkR710,000/- (Back page) PkR45,000/- (Inside page)

PKR22, 000/- Per Board

18

PRINCIPLE OF MARKETING

Strategy: All these activities will be properly sequenced and strategically delivered to our target market in order to create the greatest impact. First we will come up with TV ads and print teasers in order to create an inescapable hype then, in the second stage of the process which will be executed after 15 days of the first stage, we will place our bill boards along the key location in the city mentioned above. The whole process will be based around the time frame of ONE and a half months.

19

PRINCIPLE OF MARKETING

Taste and quality comes with a little PRICE as well!! (Pricing)

When it comes to pricing our product NAGORI LASSI will not try to lose its exclusivity in this part of the business as our brand is aimed at the rich and the famous there fore we will be striving to provide for them the best possible produce money can buy and for that we may charge our customer close to, or higher than, what our competition may be selling at. One more aspect of keeping the prices high is to make our guests aware that they are exclusive and they will get what they pay for even if it costs a little more then the next best option, here our product will speak for itself and will justify its moneys worth. Just for reference we are including a sample chart showing the price of our product with its picture:

20

PRINCIPLE OF MARKETING

Winning Hearts and Minds (Positioning)

In this section we will be discussing how will we be placing our brand in the market so as to create an unforgettable image of NAGORILASSI in the mind of our customers? The product NAGORI LASSI is positioned as a new LASSI that is nutritious, its hygienic, it helps the digestive system and its the smart way of life. As consumers are becoming more demanding the food companies have to work overtime to convince the buyers to depend on them for offering nutrition combined with pleasure. Therefore NAGORI Company will put forward the idea of taking fatty foods off the shelves and replacing them with the healthier foods. W will segment the NAGORI LASSI along four benefits; Nutrition, Taste, Health and Pleasure. What are the alternatives with the Cola majors like Pepsi & Coke? Would they be able to sustain a strategic attack on their consumption? Could they survive by asking consumers to go for cola drinks for pure pleasure? Or could they pass off as the tastier water available? They would find it very scary to go for a pleasure tag. Certainly they would never imagine killing their market by hawking Cola as a health drink. Therefore this way its positioning would be effective.

21

PRINCIPLE OF MARKETING

How can you find? LASSI? (Distribution)

NAGORI LASSI is a quality product produced by the state-of-the-art processing facilities of NAGORI located at the Highway area near Malir toll plaza. The product of NAGORI will be delivered to our customers directly by our distribution network of Regional Distribution Centers (RDOs), delivery trucks with chillers, and small, cost effective, fuel efficient, environmentally friendly delivery carts custom made to meet our specification. We Will Be Our Own Distributor: At NAGORI, we have partnered with the main MILK center for the procurement of our pre-packaged LASSI. Our Regional Distribution Offices (RDOs) are located in the same vicinity as the regional manufacturing facility of milk center. The RDOs receive the processed/fresh milk in the chiller trucks and milk is stored in chilled storage tanks that are built to maintain the freshness and quality of pure fresh milk. The chilled storage tanks are connected with packaging machinery, via automated computerized systems, that produces LASSI packs of different sizes as per our different offering. The machinery packs LASSI only when the computer initiates an order. The order is directly fed into the packaging machinery by the computer, which in turn produces the required size and number of packs at the exact time they are required for delivery. This process is designed to support our JIT (Just-In-Time) order processing, thus reducing inventory cost for storage of LASSI packs while maintaining the freshness and quality of our product. Upon receiving an order, which can be a regular pre-ordered package, an order placed in-person, over the phone or over our website, the RDOs computer system initiated a number of events to ensure JIT order processing. The procurement of fresh milk from milk center is also directly handled by the RDOs computer system, which sends an overnight order with complete details to

22

PRINCIPLE OF MARKETING

milk center computer system, which in turn generates timely orders. These orders are then processed and packed to our exact specifications. As soon as the order is complete, it is delivered to our RDO by milk center. As soon as the milk center delivers us packed breakfast items, they are processed for our delivery. The delivery to our customers starts with RDO processing the order. As soon as the order is ready to be delivered, it is loaded in our delivery carts. RDOs deliver within a radius of 10 KM and there are 9 RDOs around the City of Karachi. That gives us coverage of roughly 90Km radius, which is enough for us to ensure delivery of our LASSI packs within 30 minutes of processing. Therefore, NAGORI is using the DIRECT CHANNEL to deliver our own product directly to our customers to ensure quality. Direct Channel distribution also helps us to cut the cost of middle agencies that would markup the sale price. Our Distribution is EXCLUSIVELY our own to maintain the quality of our products. We know the kind of trust our customers require from us, and we cannot risk losing that trust because of 3rd party distribution errors.

23

PRINCIPLE OF MARKETING

Do people want to drink NAGORI LASSI? (Estimated Demand)

In order to take a good view of the current market and to see, what is the trend among the citizens of Karachi to drink LASSI we conducted a customer survey and that survey gave us very useful results.

70% 60% 50% 40% 30% 20% 10% 0% Daily

Frequency of DrinkingL assi

Weekly

Once in aMonth

Once in Three Months

We asked around 100 people about their frequency of drink Lassi, among mixed responses we were able to map out that almost 60 percent of our survey participants drink Lassi weekly. The same number of people about their opinion of a FLAVOURED Lassi in Karachi, and in this respect to this question more than 60 percent of our survey participants responded positively.

Based on the above analysis we are able to say conclusively that there is a big segment of people just waiting to be explored. These people chosen to participate in our survey are mostly the opinion leaders of the market, these are the young and the affluent classes that are our primary target and when we have successfully captured this segment there are prospects that we will be able to extend our brand.

24

PRINCIPLE OF MARKETING

25

PRINCIPLE OF MARKETING

Sales Forecast
The development and introduction of a new product is an inherently risky venture. In an effort to reduce the risks associated with new products, the forecasting of year-one sales has become an established practice within the marketing research industry. Forecasting sales of new products is fraught with risks, and estimates can often be off the mark. The risk of great error is particularly high for new products that represent something fundamentally new and different. The goal of this article is to take a bit of the mystery out of the methods used to derive 4-months sales forecasts for our product. This a forecast of 250ml of NAGORI lassi packs including all flavors in the future we are launching 1ltr pack also. The sales are progressively increasing per month according to the likeness of the consumers.

S alesin units
10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 April May June July Series1

26

PRINCIPLE OF MARKETING

Conclusion
In the end I would like to conclude my report by saying that introducing a brand such as NAGORI LASSI in Karachis market is not just a good idea but an innovative idea as well. LASSI with all the aspects of its brand personality and consumer offerings delivers a completely unique offering to the market and these aspects of our brand will help it grow and out do its competition. Keeping my customers needs in mind we will create a for wonderful drink for them and a experience that they will never forget and will crave more of it, keeping customer satisfaction at the behest of all other aspects I will try to cater to our customers individual needs which will help us in creating un dying customer loyalty, with my innovative and revolutionary new ideas we will gain an undeniable share of the market and hope to stay at this position for some time. Last but not the least I would again emphasize the fact that all primary information that will be found in this report has been collected first hand by our survey team, and all secondary analysis and forecasts are estimates based on this information. I hope that I did full justice to my work and put our idea across as best as possible, there may be flaws in this report that can be improved upon in the future as the marketing strategies and sales forecast are processes that should be kept as up to date as possible and should be revised periodically, as an estimate of now may not be valid for the next year due to the dynamic environment we exist in today.

27