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MARKETING PROJECT

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LETTER OF TRANSMITTAL

06 May 2011

Dear Madam Farhia,

Bravo has planned and already proposed you for the launch of a new product, that is,

Lazeez Desi Ghee. We are launching this Ghee under the renowned Brand of

Blue Band. All that we want is your approval for this.

We’ll be thankful to you.

Yours faithfully,

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Marketing Plan Lazeez Desi Ghee

Approved By

________________________________

(Mam Farhia)

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DEDICATION

We want to dedicate our project especially to our beloved Parents, to our class fellows, to the

students of RIU Islamabad Campus and to the faculty members of Management Department

of Riphah Institute Of Managements Islamabad Campus.

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ACKNOWLEDGEMENT:

First of all we wish to thank Allah who is the most beneficial and merciful. He gave us

the opportunity to express and make a project. We wish to thank all the friends which help us out and solve the problems which we faced during working on this report We wish to express our sincere appreciation to those who have contributed either directly or indirectly to this project.

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ABSTRACT/EXECUTIVE SUMMARY

Blue Band will be the leading brand when coming to dairy products in Pakistan, OR with a rapidly developing consumer brand and growing customer base. The signature line of innovative, premium, dairy products include margarine and now Lazeez Desi ghee with a rich traditional taste.

Lazeez Desi ghee will reinvent the desi ghee experience for individuals, families, and all the customers with discretionary income by selling high quality, innovative product at a reasonable price, designing tasteful, convenient locations, and providing industry-benchmark customer service.

In order to grow at a rate consistent with our objectives, Lazeez Desi ghee is offering an additional --- in equity. Existing members will be given the first option to subscribe to the additional equity to allow each of them to maintain their percentage of ownership. The portion not subscribed by existing members will be available for prospective new investors.

TABLE OF CONTENTS

EXTERNAL/MARKET ANALYSIS.................................................................................3

SITUATIONAL ANALYSIS........................................................................................3

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CURRENT TARGET MARKETS........................................................................................3Target market approach…………………………………………………………………………9 Demographic profile of the market:...........................................................................3Characteristics of targeted customers:.......................................................................3

MARKET SUMMARY........................................................................................................4TARGET MARKET:....................................................................................................4MARKET DEMOGRAPHICS..............................................................................................4DEMOGRAPHICS..............................................................................................................4

INTERNAL/COMPANY ANALYSIS.............................................................................6

Accountable to our stakeholders..................................................................................6SWOT ANALYSIS........................................................................................................6COMPETITION............................................................................................................8PRODUCT OFFERING................................................................................................9

1. PRICE:.................................................................................................................92. QUALITY:............................................................................................................93. PACKAGING:......................................................................................................94. PURE INGREDIENTS:......................................................................................95. Distribution:.........................................................................................................9

KEYS TO SUCCESS...................................................................................................10PRICE:.......................................................................................................................10QUALITY:.................................................................................................................10PACKAGING:...........................................................................................................10Great Taste:...............................................................................................................10Availability.................................................................................................................10Customers satisfaction...............................................................................................10

CRITICAL ISSUES.....................................................................................................10

MARKET STRATEGY..................................................................................................11

MISSION......................................................................................................................11MARKETING OBJECTIVES....................................................................................11FINANCIALS, BUDGETS, AND FORECASTS....................................................................11TARGET MARKET....................................................................................................14POSITIONING.............................................................................................................14

Product.......................................................................................................................14Satisfaction................................................................................................................14

STRATEGIES..............................................................................................................15

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3.7 MARKETING MIX....................................................................................................15Product.......................................................................................................................15Pricing........................................................................................................................15Place...........................................................................................................................16Distribution................................................................................................................16Promotion..................................................................................................................16

CONTROLLING.............................................................................................................16

IMPLEMENTATION.........................................................................................................17Suggestion.....................................................................................................................17

EXTERNAL/MARKET ANALYSIS

SITUATIONAL ANALYSIS

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CURRENT TARGET MARKETSWe are supposed to examine in detail the company’s current target markets. This section correctly takes a great deal of customer-focused research.

Target market approach Margarine is the only product that is being currently produced by BLUE BAND. The approach that is being used by the company to get to its target markets is by undifferentiated marketing. They are aiming to sell to a large broad market and have been really successful from the past several years.

Demographic profile of the marketDemographic profile of the market for Blue Band margarine suggests that it is not targeting consumers on basis of age differences. The product is for every age range, as the product is of daily usage. Similar is the case with the income and occupation i.e. the per unit price is not that high so that anyone could afford it.

Characteristics of targeted customers

1. Product usage Consider answers to these questions related to customers using the product such as:

who is using the product?

why do they use the product?

when do they use the product?

how is the product used?

Coming to Blue Band margarine the product is used by families and almost is used in every kitchen. The product is a dairy one and is mostly used in cooking and as an additive in many dishes.

2. Product positioning

Evaluation of how customers perceive the product in relation to competitor’s products or to other solutions they use to solve their problems is very important. Coming to Blue Band the perception of the consumers of margarine is very good. They are satifsfied using the product and Blue Band holds a major market share regarding competitors.

MARKET SUMMARY

Blue Band possess good information about the market and knows a great deal about the common attributes of our most prized and loyal customers. Blue Band will leverage this information to better understand who is served, their specific needs, and how the company can better communicate with them.

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TARGET MARKET

Blue Band tends to mainly cater the families that are food loving, looking for better taste and are health conscious. Blue band margarine is one of the famous product of unilever and it has targeted the people of different ages which include children, teenagers who daily use it in breakfast as it is healthy and rich in taste.

MARKET DEMOGRAPHICS

The profile for Blue Bands customer consists of the following geographic, demographic, and behavior factors:

GEOGRAPHICS

Our immediate geographic target is the city of Lahore with an approximate population of 8.5 million.

The total targeted population is estimated at 1.2 million.

DEMOGRAPHICS

Male and female.

Ages 15-50, this is the segment that makes up 53% of the Lahore market.

All the people who love Desi food...

An income over Rs.10,000

Tend to patronize higher quality food products.

Are not that much cognizant about their health.

BEHAVIOR FACTORS

Enjoy a high quality meal.

Health concerns in regard to foods are taken into account but taste is a priority.

There is value attributed to the Packaging of the product.

MARKET NEEDS

Blue Band is providing its customers with high-quality dairy products that are great in taste, offer greater satisfaction to health conscious people, and utilizes top-shelf ingredients. Blue Band seeks to fulfill the following benefits that are important to their customers.

Quality. People are provided with the best of quality regarding the food products.

Availability. Products are available at the nearest stores.

Competitive pricing. All products will be competitively priced relative to

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comparable Manufacturers of the similar products in the market.

MARKET TRENDS

The market trend for food products is headed toward a more sophisticated customer. The product selection today relative to yesterday is more sophisticated in a number of different ways.

Food quality. The preference for high-quality ingredients is increasing as customers are learning to appreciate the qualitative differences.

Presentation/appearance. As presentation of an product of the culinary experience becomes more pervasive, patrons are learning to appreciate this aspect of the industry.

Health consciousness. Generally people nowadays are more cognizant of their health. They recognize that healthy food is really important for leading a good life.

Selection. People are demanding for products with better quality and those which give increased value.

MARKET GROWTH

The growth in the market of desi ghee can be attributed to several different factors. The first factor is an appreciation for health conscious food. While not all desi ghee's are "good for you," particularly those that are coming through villages as they could be unhygienic, desi ghee can be very tasty yet health conscious at the same time. Desi ghee is seen as a healthy food.

Another variable that is contributing to market growth is an increase in the number of people looking forward for getting more taste regarding their cooking especially families. Over the last five years the number of people looking for quality desi ghee has significantly increased. This is intuitively explained by the fact that people are looking for the same old traditional taste along with that they are conscious about their health.

INTERNAL/COMPANY ANALYSIS

The company had a turnover of Rs. 18.2 bn  (Euro 329 mn) in 2004, and enjoys a leading position in most of its core Home and Personal Care and Foods categories, e.g. Personal Wash, Personal Care, Laundry, Beverages (Tea) and Ice Cream.

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The company operates through 4 regional offices, as well as 4 wholly owned and 6 third party manufacturing sites across Pakistan.

ACCOUNTABLE TO OUR STAKEHOLDERS

Since the time Unilever Pakistan began its operations in 1948, the Company has been closely connected to the Pakistani people and its brands have been an integral feature in their daily lives. In fact, the nature of our business enables our brands to be the pulse and heartbeat of the 155 million people in Pakistan.

This is a huge commitment, which makes us responsible and accountable to all our stakeholders and society as a whole and strengthens our resolve to:

Make a positive difference to the lives of low income consumers Create new opportunities for growth

Improve the overall quality of life in Pakistan, by promoting education, nutrition, health and hygiene. 

SWOT ANALYSIS

STRENGTH

Strong relationships with vendors that offer high-quality ingredients and fast/frequent delivery schedules.

Excellent staff who are highly trained.

High customer loyalty among repeat customers.

High-quality food offerings that exceed competitor’s offerings in quality, presentation, and price.

Strategic market segmentation and implementation strategies.

Increased capital from successful historical growths in sales.

WEAKNESS

A limited marketing budget to develop brand awareness.

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The struggle to continually appear to be cutting edge.

Heart patients are recommended not to use products with high cholesterol that may

would effect the targeted market.

OPPORTUNITIES

Growing market with a significant percentage of the target market still not aware that Blue Band's Desi ghee exists.

New channels of distribution.

Improper distribution by our competitor might be our opportunity in the same market

because their products they are offering are not available on every store.

Our brand name would help us out in capturing a good market share.

THREATS

Competition from other dairy product manufacturers that would respond to Blue Band's superior offerings.

Gourmet pasta restaurant chains found in other markets coming to Eugene.

A slump in the economy reducing customer's disposable income spent on consuming desi ghee.

Existing competition.

COMPETITION

There are two types of competitors for our product.

1. Direct competitors

2. Indirect competitors

DIRECT COMPETITORS

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Our Direct competitors for Desi Ghee are:

A. Nurpur

B. Milk pack

C. Haleeb

A. NURPUR

This is well known dairy products manufacturer. Its product line is vast and also

includes Desi ghee. Its products are of high quality but have high prices. We are

competing Nurpur for price and trying to get a competitive edge by offering lower

prices.

B. HALEEB

Haleeb is having its strength in their main stream line product that is Milk But Haleeb

is a close competitor because it provides high quality of ghee and already enjoys a

very good market share. We are competing Haleeb for price and distribution. As its

distribution is inconsistent and we could make a good use of it and it would help us in

capturing a market share.

C. MILK PACK

Milk pack is also a very well known name in the dairy products industry. Their main

stream line product is also milk and is having a tough competition with Haleeb.The

desi ghee offered by Milkpak is having a higher price and its quality is inconsistent.

We are competing Milkpak with lowered prices and high quality.

INDIRECT COMPETITORS

Our Indirect competitors are the people who are working in local bodies and getting

Desi ghee from villages and distributing them. A sound portion of the population still

believes that Desi ghee brought from villages is richer in taste, but the health

awareness is cutting short its demand increasingly.

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PRODUCT OFFERING

1. PRICE:

We are planning to offer a lowered price as compared to our competitors.

2. QUALITY:

High quality would be that standard defining element and proper control checks

would be followed to make sure the quality is high.

3. PACKAGING:

The products are offered with a air tight tin packaging so that the product remains

fresh for use for a long while.

4. PURE INGREDIENTS:

All the Ingredients used in the manufacturing of the product are pure, free of

preservants that effect the quality and taste of the product.

5. DISTRIBUTION:

Proper distribution channels would be used so that the availability of the product is

made sure and the product is available in the nearest stores.

KEYS TO SUCCESS

1. PRICE

We are planning to offer a lowered price as compared to our competitors as we are

to penetrate into the market.

2. QUALITY

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High quality would be that standard defining element and proper control checks

would be followed to make sure the quality is high.

3. PACKAGING

The products are offered with a new Convenient and attractive tin packaging.

4. GREAT TASTE

The product is richer in taste and gives out the feel of traditional home made Desi

ghee.

5. AVAILABILITY

Proper distribution channels would be used so that the availability of the product is

made sure and the product is available in all the nearest stores.

6. CUSTOMERS SATISFACTION

Our main aim is to provide our customers with high perceived value.

CRITICAL ISSUES

Blue Band is launching Desi Ghee for the very first time. Its critical issues are:

The company not just only wants to expand at a reasonable rate not for the sake of expansion in its self but because it is economically wise to.

Continue to build brand awareness which will drive customers to buy desi ghee as they are satisfied using margarine.

Might not be able to gather large market share and penetrate in the market.

MARKET STRATEGY

Blue Band's advertising budget is limited, so the advertising program is simple. Blue Band will do direct mail, banner ads, and TV commercials. Blue Band will leverage personal relationships to retain the previous loyal customers.

MISSION

Mission statement of our product is:

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TO FULFILL CONSUMER DESIRES

As we are known for our standards and quality, we hope to maintain our perception

in our customer’s mind through providing more satisfaction. Customer want low

price with good quality and we will fulfill their desires.

MARKETING OBJECTIVES

Maintain positive, steady, growth each month.

Generate at least Rs.400, 000 in sales per month.

Experience an increase in new customers who are turned into long-term customers and to maintain and increase our customer equity.

We want to realize a growth strategy of one more city launch per year.

FINANCIALS, BUDGETS, AND FORECASTS

This section will offer a financial overview of Lazeez Desi ghee as it relates to the marketing activities. Freshen will address sales forecasts, expenses forecasts, and how those link to the marketing strategy.

Sales Forecast The first few months will be used to get the product up and running. By

approximately 6 months things will get busier. Sales will gradually increase with profitability being reached by the beginning of year two.

Sales Monthly

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Sales Forecast

2008 2009

Sales Rs. Rs.

Individuals Rs.10,300,710 Rs.26,257,000

Families Rs.30,150,304 Rs.68,004,740

Total Sales Rs.40,451,114 $94,261,740

Direct Cost of Sales 2008 2009

Individuals Rs.6,666,900 Rs.10,181,370

Families Rs.1,663,789 Rs.37,010,213

Subtotal Direct Cost of Sales Rs.8,330,689 Rs.47,191,583

4.3 EXPENSE FORECAST

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Marketing expenses are to be budgeted so that they are ramped up for a few months .Desi ghee typically have increased business in the winter. This generally occurs because during the winter, when the weather is cold and it does gets dark early, people tend to eat out less and look for cooking dishes that are delicious. From months of winter, the marketing costs will increase again.

Marketing Expense Budget

2008 2009

Direct mail Rs.200,000 Rs.175,000

Banner ads Rs.400,704 Rs.270,455

TV advertisement Rs.700,022 Rs.600,473

Narrow cast Rs.400,000 Rs.300.000

Total Sales and Marketing Expenses Rs.1,700,726 Rs.1,345,928

Percent of Sales 4.28% 1.42%

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TARGET MARKET

Lazeez Desi Ghee tends to mainly cater the families, that are food loving and look for better taste and are health conscious Lahore has been targeted as the city for the first launch as the citizens are well known for their food loving nature. Desi ghee is a house hold food product and is a bit costly then normal ghee due to its richer taste and health that it sustains. We have targeted people having income more than Rs.10000; we would be using concentrated target marketing for the response and after wards would shift to un-differentiated target marketing .Pricing has been set keeping in mind the affordability of the consumers.

Our primary target markets include:

Families. Families are the most important segment as the product is highly useful for cooking purposes. People always stride for good taste along with quality.

Restaurants. Restaurants that are mainly serving Desi food would be definitely opting for a new desi ghee especially under the brand name like Blue Band.

POSITIONING

Lazeez Desi Ghee will position itself as a reasonably priced, richer in taste desi ghee. Lahore consumers who appreciate high-quality food will recognize the value and unique offerings of Lazeez in account to traditional taste. Customers will be both single as well as families, ages 15-50.

Lazeez Desi ghee positioning will leverage their competitive edge:

← Product. The product will have the freshest ingredients. The product will also be developed to enhance presentation, everything will be aesthetically pleasing.

← Satisfaction. Customer satisfaction will be the priority. The company will ensure that the customers are having the most pleasant dining experience using Lazeez.

By offering a superior product, coupled with superior satisfaction, Lazeez desi ghee will excel relative to the competition. Affordable is another important competitive edge that would earn Lazeez desi ghee a good market share. We are positioning “MORE FOR LESS” for our product because the main reason is that we are providing good quality at low price.

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STRATEGIES

The single objective is to position Lazeez Desi ghee as the premier Desi ghee in Lahore, OR area, commanding a majority of the market share within five years. The marketing strategy will seek to first create customer awareness regarding their satisfaction offered, develop that customer base, and work toward building customer loyalty and referrals.

The message that Lazeez will seek to communicate is that Lazeez desi ghee offers the freshest, most creative, health conscious, reasonably priced, Desi ghee in Lahore. This message will be communicated through a variety of methods. The first will be direct mail. The direct mail campaign will be a way to communicate directly with the consumer. Lazeez desi ghee will also use banner ads and TV commercials as they are the most effective way of advertising these days. Narrowcasting would also turn out effective.

3.7 MARKETING MIX

Lazeez desi ghee marketing mix is comprised of these following approaches to pricing, distribution, advertising and promotion, and customer satisfaction.

PRODUCT

Lazeez Desi ghee is a consumer product and its market consideration is regarded as

convenience. As it is a dairy product and widely used for cooking purposes and is

frequently purchased and it demands little planning for purchase.

PRICING:

We are using Market Penetration Pricing strategy because we want to attract a

large number of buyers and capture a large market share. The conditions for using

this strategy are:

1. Low prices produce more market growth.

2. Low price must help keep out the competition.

3. Production and distribution costs must fall as sales volume increases.

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PLACE

Lazeez Desi Ghee tends to mainly cater the families, that are food loving and look for better taste and are health conscious Lahore has been targeted as the city for the first launch as the citizens are well known for their food loving nature. and would be a ideal city for the launch.

DISTRIBUTION

We would use contractual vertical marketing system for the purpose of getting the product to the final consumers. We are planning for a sound distribution channel structure which includes distribution, retailers etc.

PROMOTION:

The most successful advertising will be banner ads. and TV commercial. It would help us create our product awareness. They would attract a large number of customers and help them remain updated about the offerings.

CONTROLLING:

We will use contractual vertical marketing system. We will partner with the other members of the supply chain to enhance the

performance of the customer value delivery network. (We will make such program that will work close with the suppliers which helps us to reduced our cost and improve quality and other operation).

We will maintain a quality control department. We aim to create teams for check and balance. We will check ongoing performances against the annual plan and take corrective

action when necessary. Check whether company’s basic strategies are well matched with the

opportunities. After all these stages we will measure the performance in the market place and

evaluates the causes of any differences between actual and expected performances.

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IMPLEMENTATION:

We will implement our project few days before of EID -UL-AZAH. Because on this occasion people will prefer to cook dishes in desi ghee and that would create an opportunity for increased sales.

SUGGESTION

Customer suggestions before the launch of Lazeez Desi Ghee:

Soft type of silk will be used in the scarves

REFERENCES

www.unileverpakistan.com.pk GARY ARMSTRONG, PHILIP KOTLER, Principles of Marketing,10th edition.

(Prentice Hall,2005) Www.google.com www.knowthis.com

LIST OF TABLESTable 1:

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Sales forecast…………………………………….. pg 18

Table 2:Marketing expense budge…………………………pg 19

LIST OF DIAGRAMS

ABOUT COMPANY

PRODUCT (COMPANY) USERS

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SATISFIED FROM PRODUCTS

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RESPONSE TOWARDS PRODUCT

NAME OF PRODUCT

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DESI-GHEE USERS

OTHERS COMPANY’S (DESI-GHEE)

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RESPONSE OF USING DESI-GHEE

PACKAGING