pink & blue energy drink
TRANSCRIPT
P&B Beverage company
ACKNOWLEDEMENT
We offer our humblest thanks to ALMIGHTY ALLAH who is beneficial, merciful and
whose blessing enabled us to complete this project.
We can’t find the words to express gratitude for our parents whose prayers has always
been the key to our success, which made us worthy of achievements and all the blessings
that God showered upon us. The affection of our mother and encouragement of our father
led us to reach this position that we have.
We are thankful to a number of people who have assisted and aided us in going beyond
the theoretical concepts provided in the books, and to make a practical report keeping in
view the rational situation that persists in the market. We appreciate the efforts of Mr.
Arif Vaseer for giving us the opportunity to get involved in this project, which has been
completed after extensive hard work and effort. We are also very grateful to Mr.Saqib
Shahzad for his help and high support.
We are also thankful to all our friends who supported us throughout our project and give
us good advice whenever we needed. Their company was like a gift of God for us.
Sincere thanks to all
P&B Beverage company
EXECUTIVE SUMMARY
This marketing plan deals with the launching of a new energy drink named “Pink &
Blue” in Rawalpindi and Islamabad by “P&B BEVERAGE COMPANY”. Our products
will be positioned very carefully. They will be of extremely high quality to ensure
customer satisfaction, supported by impeccable service to our customers.
The report contains and explains the major variable components, which are required in
the process of a product launch. It provides in-depth analysis of the energy drink, which
is going to be presented in the market, stating the differential advantage the product has
over other competing brands in the market.
Currently in Pakistan there is low trend of using energy drink and only males are
targeted in the market; however the trend is continuously rising especially in the urban
areas. This gives us a hope and helps us to be optimistic. We can suppose that if our
product is properly advertised and awareness is created among the people, our firm will
have a bright future. We will have to adopt a marketing strategy which will not only
make our product known to the customers but also make them realize the importance and
benefits of using energy drinks.
Our target customers would be the generation of 20 to 40 years of age, males and females
will targeted separately. The customers of big cities would be targeted belonging to the
upper and middle class.
The marketing mix has highlighted all the key factors which are to be kept under
consideration, and every aspect has been dealt with utmost details, keeping in view the
internal and the external factors, especially the terms and conditions of the market.
P&B Beverage company
Initial plans are to produce two main products primarily focusing men and women. These
products will be sold in different sized cans ranging from the 250 ml to the 500 ml cans.
The Pink coloured can is specially targeting women and Blue is for men.
Our marketing strategy will be based mainly on ensuring customers know what need the
product is able to fulfill, and making the right product and information available to the
right target customer. We will ensure that our product price is taken into consideration
people's budgets, and that these people appreciate the product and know that it exists,
including where to find it. However these prices will also take into consideration the cost
of production and distribution so as to ensure that we remain viable and operational. The
marketing effort will convey the sense of quality and satisfaction in every picture, every
promotion, and every publication.
We intend to provide the customer with more than just a traditional energy drink. Our
customers are assured of products that have been produced using the highest quality
standards.
P&B Beverage company
COMPANY PROFILE
The P&B Beverages is a new firm going to start its operation in Islamabad. It will start
with an energy drink product with the name “Pink and Blue”. Pink as the color represents
is specifically targeting women and Blue is specifically targeting men. The firm is going
to start its operations in a limited geographical level.
To continue to thrive as a business over the next ten years and beyond, we must look
ahead, understand the trends and forces that will shape our business in the future and
move swiftly to prepare for what's to come. We must get ready for tomorrow today.
Vision:
To provide maximum level of service to our customers;
To create high standards in customer care;
To offer maximum quality control of products and services;
Mission:
“Our mission is to serve people by providing quality energy drink”
Slogan:
“FEEL THE POWER”
Corporate Objective:
“We strive to operate our company on a sound financial basis of profitable growth increasing value for our stake holders and creating career opportunities
and financial rewards for our employees”
P&B Beverage company
GAP ANALYSIS
In Pakistan it has been noted that the majority of energy drink consumers continuously
change brand, so thus there is no brand loyalty for energy drinks in Pakistan. And as
energy drinks are new to Pakistan, the market share for any specific brand is not
determined as yet. But still Redbull is on the top in market.
The market segment, which we are targeting for Pink and Blue Energy Drink, comprises
men and women who have a busy life style and need to keep energized to get through the
tough day. So therefore they need something, which provides them with energy through
out the day. There are some imported drinks in the market, but they are expensive as they
are imported. Mainly the existing brands in the market are targeting Men. We have
identified a new segment which is targeting Women which is Pink in color as the color
represents feminine so this product is mainly targeting women. The can color is also in
Pink Color to distinguish it from other. The recipe and ingredients for the female energy
drink will be much lighter than those for men.
ENVIRONMENTAL ANALYSIS
P&B Beverage company
Because of the growing craze over energy drinks, the number of energy drink brands has
been increasing steadily as everyone wants to take advantage of the expanding market.
The demand for energy drinks could be a direct result of people’s lives becoming busier.
As people fill their lives to capacity and then add even more responsibilities, the daily
schedules can become quite overwhelming, leaving little time for rest, relaxation, or
sleep.
All of this activity causes stress and fatigue, but there is no time to stop for a moment and
recharge the batteries. As a result, people often turn to refreshment to keep them going
throughout the day and give them the energy they need to complete everything they need
to do. Energy drinks are one of the more popular “stimulants” because they are quick and
easy, and most have few recognizable negative side effects.
In Pakistan with the increasing trends of using energy drinks number of brands available
are increasing. There are distributors who import these ready to drink around the world.
Main market to import energy drinks is UAE, from there importers import in bulk and
then distribute in their target areas. OZO Switzerland is a beverage company with the
most extensive distribution system in the world. To distribute their product in Pakistan
they have granted the rights to Ghani Group of Industries. Who recently have soft
launched the product in Lahore market as OZO energy drink can be found in cafeterias at
colleges and universities. This is the only brand that distributors import it directly from
the manufacturer and they make its packaging accordingly then.
The majority of the sales are coming from urban areas where people have greater
purchasing power and awareness of such drinks. Sales of energy drinks are limited in
rural areas although they are growing. Around 66% of the Pakistani population resides in
rural areas, but most do not buy energy drinks as they are too expensive.
Energy drinks are soft drinks advertised as being specifically designed to provide
energy. The number of energy drink brands is actually much greater than people realize.
P&B Beverage company
Red Bull has been the dominant brand for many years, probably because it was one of
the first energy drinks developed. Word of mouth has been a big part of Red Bull’s
advertising.
Red Bull was the first successful energy drink in the market. But afterward companies
realize that it is a very big market of those people who like energy drinks. So other
companies also jumped in to share their part. Recently we have seen many companies in
Pakistan, like Pepsi and Shezan, who have jumped in energy drinks business. One thing
is common in all energy drinks that they are costly then other drinks; juices, malt,
carbohydrate drinks etc. They have a special market which is increasing day by day.
After lots of energy drinks in market, all are trying to compete with each other in any way
possible. They are trying to give a better taste because taste is the most prominent change
in these energy drinks. Taste is not acceptable in mass market, however many are trying
now to increase their market share by giving a different taste. Second thing is their price,
they are trying to reduce the price to gather a larger share like a big company Pepsi have
introduced their energy drink ‘Sting’ in just Rs. 60/- as compare to Red Bull the most
famous energy drink costs above Rs. 140/- Thirdly they are working on distribution,
trying to make their drinks available in all parts of the city, in every shop. Few energy
drinks have different strategy to remain with their specific market.
COMPETITOR ANALYSIS
P&B Beverage company
The energy drink industry is still in its birth stage in Pakistan and is highly disorganized
and fragmented. There are no large scale competitors present and only a few international
players exist in the markets that sell their products via very upscale retail outlets catering
to the very elite of our society. However, the product will face a high level of competition
from these international players that are increasing their supply of the product in the
market day by day.
Many new soft and energy drinks have been developed in recent years, worldwide,
offering consumers a multitude of more interesting and unusual alternatives to standard
soft drinks.
Pre-mixed and flavored energy drinks tend to appeal to consumers aged between 17 and
40- years old. To meet the demands of these consumers, new energy drinks are coming
up every day in the Pakistani markets. Furthermore, one of the recent launches of these
kinds of drinks in Pakistan includes Iced tea by Nestle.
Our most notable competitors in the market are:
Red Bull
Red bull is the pioneer and most famous energy drink in the market. It was the first one to
introduce energy drinks in Pakistani market. Red Bull kept its price high and remains
with their specific market they target. Their price is Rs. 140/- which makes it the most
expensive energy drink in the market.
It is mostly available in posh areas of the city in start. Afterward there is a big change that
they seek through another interesting market and start to supply their bottles to Pan wala
shops which was not bad at all. People over there start trying it and I think that idea
didn’t catch by mass market because it’s hard to see Red Bull at Pan wali dukan
anymore. They have shifted to Pepsi’s ‘Sting’. The pan walas now keep sting as an
energy drink rather than red bull. People usually are not accommodating when it comes
P&B Beverage company
to energy drinks’ sharp taste. Many people regard the taste as the cough syrup. Though
who are fan of Red Bull taunt to all other available energy drinks in market that they have
sweeter taste.
Booster
Booster is a German energy drink brand. It attracts one from the start as one looks to its
packing. Like all other energy drinks available in long think tin packs, this is available in
small, fat plastic bottle. Its packing is different from all energy drinks in the market so it
appeals you at the first place.
Second important thing is its price; this is an imported drink which is based in Germany
so people would likely to trust the quality of drink. It is of Rs. 75/- but if one buy it from
whole sale market then one might also get it at the price of Rs. 65/-
Third interesting thing about Booster is its awesome taste. This was the first energy drink
which makes a good impression of whole industry in the minds of consumers. Its unique
bottle design call customers to try it for once and then become a regular customer of it for
as long as Pepsico’s Sting jumped in.
Ozo
Ozo has a little different taste. Most important thing about this energy drink is that is
available in few stores only, they have low distribution cycle which makes it hard to find.
It is also in different bottle rather than typical energy drinks thin and long tins. This is
available in green glass small size bottle with a plastic cap.
Taste of this drink is acceptable. Many times there are comments by the customers that
they want to actually try this new drink but are not able to find it in the market. This is
the cheapest energy drink in the market till now which costs Rs. 55/- in retail market. If
they work on the availability of this drink then it might gain an edge over other drinks in
terms of low pricing.
P&B Beverage company
Power Full
Power Full is also a new energy drink in market. Red Bull would be the oldest one but
new energy drinks are taking their share and at one side they are reducing the share of
Red Bull but at the other side they are creating a larger market for energy drink users.
Its bottle didn’t attract a lot of target market but its red color on tin indicates me that it
would be something like Red Bull. And its taste is similar to that of BOOSTER. However
it is less sweet than Booster and people might like to have this instead of Booster. But its
price is Rs. 100/- and for me sweet is good. People usually prefer booster over power full
because of its attractive packaging.
Speed
After seeing lot of potential in energy drinks market, Shezan also introduced its energy
drink with the name of Speed. Their packing is cool. Plus their price was like of Red
Bull, it is available for Rs. 140/- whereas new energy drinks have tried to beat the prices.
Speed has kept its price above which might attract people about its quality and
uniqueness.
Sting
Pepsi introduced their energy drink in Pakistan with the name of Sting. They must have
come in the market after lot of research. They checked the loop holes in energy drinks
market and try to fix it from the product. Earlier energy drinks was considered as a sour
drink which people take to energize them and to wake up late at night. Sting has added
better taste in it. They have made it full of flavor with ingredients of energy drinks as
well.
They have introduced two flavors in energy drinks which is a positive factor to compete
all energy drinks available in market. For competing Red Bull they have introduced their
red berry flavor in red can. Taste is regarded as nice.
P&B Beverage company
Most important about Sting to catch the mass market is its rates. They are one of the
cheapest energy drinks in the market. Sting can is of Rs. 60/- If a less price energy drink
came in market, people would think about its quality and might not go for it. But when a
big company like Pepsi co came up with energy drink, whether its price low, people
won’t question about its quality.
Although there are many similarities between all the different energy drink brands, there
are obviously some differences. The primary difference that distinguishes many energy
drinks is the ingredient list. All energy drinks must contain something that results in an
increase of energy, but there are various ways to achieve this effect. All of the energy
drink brands experiment with their own unique mixture of ingredients, adding higher
concentrations of some and lower concentrations of others.
SOCIO POLITICAL FACTORS
Political/government factors affect The P&B Beverage Company in many ways. Food
and drink safety and security regulations will continue to be a hot issue as many
producers strive to make sure that there will be only good and safe ingredients entering
and leaving their processing units. In this industry, bad experience by customers turns
into bad reputation. The beverage company needs to be in compliance now more than
ever with food and drink safety commissions so that they can ensure that there will be no
bad experiences to give them poor publicity. Socially and culturally, The Beverage
Company definitely has to be emphasizing to their need to be culturally sensitive. As
minority groups are increasing every year, businesses have to be sensitive and
knowledgeable about all different cultures in order to satisfy the diverse group of
consumers.
CUSTOMER ANALYSIS
P&B Beverage company
Who are our consumers?
The first step in target marketing process is segmentation. We segmented the market aged
between 20-40 years because in this segment, we came to know that consumers specially
young adults aged 20-30 are increasingly facing too many options to choose from.
Target market
Initially the business will be operational in Rawalpindi and Islamabad, so we can sell
directly to the retailers without involving any third party. Afterwards when the business
will expand its activities in other cities independent distributers will be hired. We will
also make sure that our product is available in the top universities of the twin cities.
Market Segmentation
Market segmentation proves beneficial if it is done correctly. A straight forward approach
to segmenting, targeting and reaching a market involves five steps:
Form prospective buyers into segments by characteristics.
Form products to be sold into groups.
Estimate the size of the markets.
Select target markets.
Take marketing actions to reach the target markets.
In segmenting Pink & Blue’s market, age, density, income and life style are all useful
characteristics for market segmentation. Age can be divided into various parts such as 20-
24 (students & athletes) and 25-40 (professional athletes and business officials). Density
segmentation can follow urban and suburban localities. Income can be divided simply by
under Rs.40, 000, Rs.40, 001-60,000, Rs.60, 001-Rs.80,000 and Rs.80,001 and above.
Lastly, lifestyle can by separated into health conscious consumers and those who are not.
P&B Beverage company
Obviously, Islamabad market is quite large, so selecting target markets would be ideal.
Focusing on caffeine drinkers (approximately ages 18+), in general, would be a wise
decision because Pink & Blue can be a substitute drink for caffeine beverages like coffee.
We also think that focusing more specifically on university students and athletes as well
as professionals, aged 20-35, would benefit from Pink & Blue tremendously because
these two segments are the company’s main consumers. After all, some of the main
benefits of Pink & Blue are to help improve physical endurance, concentration, reaction
speed and increase mental alertness. Also, focusing on health conscious consumers would
account for people who are concerned
BUYER ANALYSIS
Brand Loyalty:
The Pakistani customers do not have awareness of energy drink category as such. Thus
Pink and Blue has to create awareness among the target audience of the category,
widening the target base, while creating a differentiating factor for itself, from soft drinks
that will stimulate mind and body simultaneously.
Consumer Insights:
The target customers believe that energy drink is associated with sports /
adventure only. It is something not to be consumed for any social hang out of
friends and family.
Energy drinks is for the male segment only. It is socially unacceptable for the
females to consume energy drinks.
The energy drinks are only for teens and young adults. It is taken as totally
unacceptable for the adults aged 30 and above.
P&B Beverage company
A large chunk of the market sees energy drinks as something addictive, drug
infused beverage with negative health implication.
Teens consume it to boost their brain powers before their exams, and to delay
their sleep.
There are certain cultural barriers which term energy drinks to provide fake
energy, and believe these companies are playing psychological games with the
minds of consumers.
Energy Drink contains vitamins which are to be taken by people with vitamin
deficiency, not by normal people. As doctor’s advice, Vitamins should only be
taken to substitute a vitamin deficiency in the body, or during times when you are
undergoing lots of physical training where the body consumes more vitamins, fats
and carbohydrates.
Demographics:
Age: 20-40
Gender: Males and Females
Education: High School Graduates/ Intermediates at least.
Geographic Location: Islamabad and Rawalpindi (Upper & Middle class
areas)
Occupation: Students, Working people, Athletes and People into sports.
Lifestyle Profile
P&B Beverage company
Lifestyles in the case of Pink & Blue Energy Drink are determined by our consumer’s
personal characteristics; for example, their likes, dislikes and personality. Secondly, his
or her personal context, for example university, group or number of friends and lastly
their needs and emotions. These three sets of factors together influenced the pattern of
our consumer’s activities and how they spend time and money. As Pink & Blue is an
energy drink and the idea of an energy drink is new to the Pakistani market, we can say
people who like to try new things, are social and have the desire to do better and more
will buy Pink & Blue.
Attitudes
Attitudes can be used to predict behavior. When we knew that people of ages twenty to
forty have a tough routine and they strive to do better whether it’s in sports, university
work or even business matters, we predicted that they would likely have an energy drink
that would keep them energized and refreshed for better results in whatever they do.
Motivation
Motivation has two components: drive/arousal and goal object. Therefore, the
identification of people’s need to stay fresh and going was kept in mind. We will
motivate these people by showing and telling them how their goals can be achieved if
they keep themselves refreshed.
Benefit Sought
Markets can also be segmented based on consumer’s preferences for a specific product
attribute or characteristic. Various energy drinks help prevent stress, inattentiveness,
physical and mental weakness. The energy drink, that we have named Pink & Blue, is not
only good for preventing stress, inattentiveness and physical and mental weakness, its
also good for caffeine drinkers (TEA & COFFEE) as it also has a fair bit of amount of
caffeine in it.
Decision Making Involved:
P&B Beverage company
The consumer’s decision making has many stages and various factors affecting it, they
are as follows:
1. Problem Recognition
In our case, a student or a working professional may recognize that he/she is running out
of physical and mental energy due to workload, resulting in stress or getting physically
weak while playing a particular type of sport. In that case, they will look for things that
will give them and energy and power to overcome weakness.
2. Information Search
Here the consumer will look for products that will satisfy his need. He will complete his
search and will find energy drinks as the best alternative. A lot of options will come as
there are so many brands in the market present widely.
3. Evaluation Of Alternatives
Pink & Blue with its excellent quality, a fair price and an edge over other energy drinks
targeting separately women and men, will be a sure choice over average quality,
expensive energy drink. Decision criteria of our consumer would be on the basis of price,
style and quality of the energy drink.
4. Purchase
P&B Beverage company
After choosing the best alternative, our consumer will be ready for the purchase. He will
buy the product and will consume it.
5. Post-Purchase Behavior
Once a consumer buys Pink & Blue, he or she may engage in post-purchase behavior, via
further purchases and/or re-evaluation. Many times, one purchase leads to others.
Although, dissatisfaction is often due to a doubt whether a correct decision has been
made or not. In order to satisfy our consumers, we will make sure that we provide them
the best quality and ads aimed at purchasers.
Routine Consumer Decision Making
This will occur in the case of buying Pink & Blue, as this decision involves a consumer
buying out of habit i.e. professional athletes, therefore, they will skip steps in the process.
He or she will spend little time shopping and often re-buys the same brand. In this
category are items/products with which a person has much experience. Pink & Blue will
be bought regularly as it has no perceived risk and is relatively low in price as compared
to our competitors. Once the consumer will realize that Pink & Blue is consumed, a
repurchase is made.
MARKETING OBJECTIVES
The main marketing objectives for the first five years would be:
P&B Beverage company
Building an image in the market for Pink & Blue so that consumers see it as a
superior product. Creating a sense of brand loyalty among consumers for Pink &
Blue
Focus on giving the consumers what they want when they want it. Making them
believe that Pink & Blue IS WHAT THEY WANT.
Our main plan would be to minimize operating costs as much as possible. So the
main aim is minimize costs and maximize profits.
To generate awareness about the uniqueness of the brand to the targeted segment
To differentiate it from its competitors
To induce trial and repurchases
To maintain brand loyalty after the period of trial and further enhance brand
image
To reach the target market through effective utilization of communication
channels
To establish a memorable and pleasing image in the target audiences mind
To establish Pink & Blue as the only identified brand linked to purity and
innovation
SWOT ANALYSIS
P&B Beverage company
Strengths:
Strong financial background.
Separate Drink is also available for the females which are lighter in taste then
those for males.
No visible change in sales even after price increase.
Knowledge of target markets.
Weaknesses:
Lack of a reputation in comparison to our competitors.
Large market share of other energy drinks like Red Bull.
Limited market.
Large market share of other energy drinks.
Opportunities:
Expansion in new markets
A good opportunity facing us because energy drinks market can be expanded very
well.
There is a demand in the current market to adopt different flavours and versions
of the product. Pink and Blue should widen its product line to retain the current
market as well as capture more market.
The product can be made available in the universities where the prime target
market spends lots of the time. It will also help the brand to build a reputation of a
fashion social symbol.
Threats:
Unstable political situation of our country.
There is a misconception among the consumers that energy drinks contains
contents to provide fake energy which are harmful for the health.
Emergence of substitutes.
Price war.
P&B Beverage company
PORTER FIVE FORCES
Applying Porter’s five forces to the Pakistani energy drink market allows us to garner a
retrospective view of the potential attractiveness in terms of profitability of the industry.
Threat of new Entrants (Low)
Although energy drinks are similar in their nature, they differ greatly in their ingredients
and its concentration level. Energy drink market is growing like a weed. Companies are
striving to put out the best energy drink designed for the potential customer that they
have in mind. They are concerned with packing whatever ingredients they can to improve
the stamina and physical performance of human beings. Therefore, the primary difference
that distinguishes many energy drinks is the ingredient list.
Customers do not face any significant costs in switching suppliers, as they are free to
choose any brands they wish. No factor restricts them to use any particular brand. It is
easy, cheap and convenient to buy any other brand they wish. Wholesalers do not find it
difficult to import energy drinks in Pakistan because they do not need a lot of capital to
do so. The new comers face difficulty in accessing distribution channels in Pakistan. This
is because of the agreements made between the distributors and companies under which
distributors are allowed to circulate only company related brands. New comers face
excessive cost to turn these distributors in their favour. Mostly, other brands of energy
drinks do not have a franchise based system but only they are imported by whole sellers
who make them available in markets and create a competition in the industry.
Distributors on the other hand, have to make sure that product is available throughout the
country and therefore face high costs.
Most of the foreign energy drink brands sold in Pakistan have manufacturing plants in
their home country; they come to Pakistan via importing of whole sellers, while in
Pakistan they mostly focus on distribution channels and marketing. Therefore, this also
shows how different companies will compete more on distribution channels than the
product itself.
P&B Beverage company
Experience does helps in continuously lower costs. This is because of strong distribution
partnership made between the company and distributor. Main cost faced in Pakistan by
these foreign companies consists of distribution cost. Good relationship created through
long term business dealings with distributors ensures distributors confidence and lower
bargaining power over the company itself.
There are some basic requirements that need to be fulfilled before entering this industry.
In Pakistan people have misconception about the product ingredients and its side effects.
Therefore some restrictions are placed by government before initiating any of such
projects. Government needs to be assured of product quality and standard. Therefore
before starting a business, company needs to get permission for business.
New comer expects strong retaliation on entering the market. This retaliation comes
naturally as Red Bull is strong brand, almost acting like a monopoly. Therefore, as a
monopolist it is expected for them to maintain its position and derail anyone who comes
as an obstacle.
Bargaining Power of Suppliers (Neutral)
The inputs are standard rather than unique or differentiated. Energy Drinks operating in
Pakistan are just a franchise which imports basic products from the suppliers and sold it
in Pakistan through distribution partners. Therefore the product that these distributors get
is standardized.
Suppliers of the ingredients of Energy Drinks are needed by other industries as well and
they has the option of switching its suppliers because the inputs are standard therefore
manufacturers has a power over their suppliers. But on the other hand, the suppliers have
number of other industries to supply to therefore they also have a power in the industries,
therefore this force is getting a neutral rating.
P&B Beverage company
Bargaining Power of Buyers (High)
The bargaining power of buyer is high in this industry. Although there aren’t a large
number of customers and customers don’t incur any costs in switching brands, the
industry seems pretty attractive in terms of buyer power. First of all, the customer doesn’t
require any important information regarding the product. It’s an energy drink with its
apparent functionality and there’s no need to convey additional information concerning
the usage. As there are many new brands coming in the market customers can easily
switch to another brand in no time.
Threat of Substitutes (High)
Most energy drinks are carbonated drinks that contain large amounts of caffeine and
sugar with additional ingredients. Energy drinks are used to satisfy the need for quick
mental alertness. Several substitutes were in the market for energy drinks even before
energy drinks were introduced. For example, coffee can be substitute because of the
general perception of consumer that its consumption promotes mental alertness.
Presences of many substitutes in the market that are easily available pose a certain threat
to energy drinks. These substitutes are easily available in shops.
Rivalry among Existing Firms (Medium)
The energy drink industry in Pakistan has a high concentration ratio, meaning that fewer
firms hold the larger part of the market. Especially since this market is smaller in
Pakistan then in other countries and also has a slower growth rate. This can be due to the
higher prices of the product. This means that energy drink industry is less competitive
and this fact makes the industry favourable. Customers here can freely switch their brand
preference without incurring any costs, which is an unfavourable factor for the industry.
P&B Beverage company
MARKETING MIX
Product:
The product will be the best quality product in the market made from the finest
ingredients through the best processes. Pink & Blue Energy Drink is the beginning for a
venture into the future. Pink and Blue energy drink water contains Carbonated water,
high fructose syrup and/or sugar, Citric Acid, orange and apple juice from concentrate,
natural flavors, Sodium Benzoate, Sodium Polyphosphates, Caffeine, Erythrism Acid,
Maurine, Calcium Imodium Etta (to product flavor), Potassium Benzoate, Brominates
Vegetable oil, Calcium Disodium EDTA, Modified Food Starch.
Pink & Blue:
Our product is an energy drink. Now the question here is; what exactly is an energy
drink? Is it something that keeps you awake for long hours? Something that gives you
extra energy to work for hours? Or is it a supplement that compensates for the lost salt
and water in your body?
Energy drink is a beverage, which adds energized ingredients and vitamins for body
stimulant. Despite the pleasant taste, the significant feature of energy drink is its ability to
enhance power, strength, and speed. It helps to extend the duration during which the body
is able to efficiently engage in specific mental or physical activity.
It’s hard to choose one particular energy drink over another since today's breed of energy
drinks includes primarily the same thing.
Pink & Blue offers better taste, it is an energy drink that can be used by anyone and
everyone. Pink & Blue provides better quality and a better image, the competition for
energy drinks is high no doubt, but our drink provides a light better tasting with targeting
specifically women with a new product, better packaged and better imaged energy
P&B Beverage company
supplement that can even be used as a substitute for water which can compensate for your
body water and salts.
Price:
Pricing wise, we offer a high quality and fashionable product at a lower price. It allows us
to position ourselves as one of the best quality/price balanced brands. Initially we will
launch product with an introductory price so more and more people can be attracted and
can buy and test the product.
Purchase price of 1 can is Rs.50
Promotion:
The promotion effort will be targeted toward not only informing the target audience but
also creating an image of the product.
Communication Channels
T.V campaigns (through Cable)
Bill boards
Local Newspapers
Posters
Placement:
The distribution strategy of Pink & Blue basically relates to the fact that how it should
reach its target market. The company intends to use a mix of exclusive distribution in
certain areas and intensive distribution in high turnover areas as well as channels.
P&B Beverage company
VALUE CHAIN ANALYSIS
Support Activities:
Firm infrastructure: Refers to the number of employees and their management
techniques according to which the consumer perspectives relating to a product are
identified. New methodologies of communicating with the consumers are adopted,
change oriented behavior is used throughout the organization. Firm infrastructure of P&E
is very strong. The whole distribution and management is to be handled by Pakistani staff
who are much aware of the psyche of people and the areas where the product is being
launched.
Human Resource Management: HR activities will be decided by Top Management
within the country. Staff will be hired within the country who are better and have well
know how of the operations.
Technology Development: P&B will invests heavily in R&D and always try to come
up with something unique which serves their name best in order to let them stay the
market leader of energy drinks market.
Inbound Logistics
Operations Outbound Logistics
Marketing and Sales
Service
Procurement
Technology Development
Human Resource Management
Firm Infrastructure
SupportActivities
P&B Beverage company
Procurement: P&B will have more than one supplier and the inputs or raw materials
are not unique but rather standard so, it tries to buy those raw materials which are
superior in quality, which will allow the final product to be better than the previous one
in order to satisfy consumers and meet their demands. P&B cannot compromise on the
quality of the product hence raw materials which are acquired from different resources
are of a premium quality.
Primary Activities:
Inbound Logistics: This involves bringing and procuring raw materials for the
business. Raw materials are handled effectively there in order to produce the best product
so that the final product has improved quality every time. Best raw material is selected
and is used for the preparation of final product.
Operations: Innovating new and unique products is one of the competency of P&B.
Operations are carried out such that new product can be developed by investing more and
more in research and development. Consumers’ attention span towards any product is
decreasing with time so consumers also expect companies to bring something new every
time. Operations carried out are according to customer’s specifications and requirements
which are unique in processes and produce innovative outputs.
P&B Beverage company
Outbound Logistics: First of all the final product will be stored in depot, from where
the product will be sent out for sale in market to the retailers.
Marketing and Sales: This is one of the important factors which will help in the
success of Pink and Blue. To keep the company abreast with competition and to provide
support to its channel partners and to increase the sales, P&B will put lot of effort in its
marketing activities. This includes maintaining excellent relations with its channel
partners, making huge investments in Advertising for the launch of a product.
Service: In this industry after sale service is not required.
SUPPLY CHAIN MODEL
P&B Beverage company
COMPANY
Raw Material/ Suppliers
WAREHOUSE
DISTRIBUTOR
WHOLESALER RETAILER
RETAILER CUSTOMER
CUSTOMER
SALESMEN
FINISHED GOOD
P&B Beverage company
In the supply chain the primary activity of the company is to receive material to
be used for making the product. P&B will take the best quality of the raw material from
the supplier to ensure that the product is of high quality. After receiving the product the
company uses it machines and other resources to make and transform the raw material
into finished goods. After that when finished goods are produced they are taken to the
warehouse, from where they are available for distribution. Everything at the Distributor
point owned and managed by the distributor, even the salespersons are on the Distributors
payroll. Wholesalers get their stock directly from the Company and thus get special rates
and extra discounts from the Company. Retailers are the most important chain in the
distribution channel as they are the only point of contact with the customers. Retailers get
their stock from all the other channel members in the distribution channel. This is how
the supply chain of P&B will function.
P&B Beverage company
BLUE OCEAN STRATEGY
P & B Beverage Company’s Blue Ocean Strategy is that it’s going to operate in
uncontested market place through pink energy drink where market is irrelevant and we
can create and capture a new demand targeting girls/women by introducing a new energy
drink only for girls. We will be able to establish an additional category of untouched
competition. It is Pink Energy Drink, as the pink color represents feminine it is
particularly for girls/women.
Strategy Canvas for Pink Energy Drink:
P&B Beverage Company will be focusing on the following parameters for its new
product Pink Energy Drink, which lies under blue ocean strategy:-
1- Huge expenditures are on promotional activities .This includes the following:
Promoting them Pink in color as the color represents feminine so this product is
mainly targeting women.
Promoting Pink Energy Drink as a strength giving drink for girls and specially for
working women. It is lighter in taste and less caffeine component is added.
2- Investments are moderate because already company is manufacturing Blue energy
drink for men. P&B Beverage Company will only need to invest in material for making
Pink Energy Drink.
3- Pink Energy Drink will be promoted on the basis of its Quality and new target market.
4- There is a strong distribution network because our market is not big we are just
targeting in Rawalpindi/Islamabad markets initially.
5- Can packaging; a very large amount of investment goes in providing delicate and very
stylish kind of can packaging. Because we are focusing on girls/women and girls/women
like very stylish, glittering things. Hence stylish and delicate packaging becomes
inevitable.
So the canvass can be drawn as follows:
P&B Beverage company
Properties Degree of Investment or EmphasisPromotion HighManufacturing ModerateQuality HighDistribution ModeratePackaging High
Strategy Canvas For Existing Industry:
Pink & Blue Beverage Company will be focusing on the following parameters for its
existing industry that is Blue Energy Drink:-
1- Moderate expenditures are on promotional activities.
2- Investments are huge because machinery cost and capital expenditure are high.
3- Blue Energy Drink will be promoted on the basis of Quality.
4- There is a strong distribution network because our market is not big we are just
targeting in Rawalpindi/Islamabad markets initially.
5- Can packaging; a moderate amount of investment or emphasis should be given to
Blue Energy Drink because as far as men are concerned they prefer good quality, they
don’t like flashy things. So in this case the investment will decrease a bit.
P&B Beverage company
So the canvass can be drawn as follows:
Properties Degree of Investment or EmphasisPromotion ModerateManufacturing HighQuality HighDistribution ModeratePackaging Moderate
Combined Strategy Canvas of Pink & Blue Energy Drink:
P&B Beverage company
Four Action Frameworks
Eliminate
Pink Energy Drink has nothing that should be eliminated.
Reduce
Strong taste which we use in Blue Energy Drink. Pink Energy Drink should be
light because our target customers are women.
Caffeine quantity will be reduced.
Raise
Quality of energy drink should be raised because customers whether its men or
women will prefer good quality product.
Design and style should be enhanced.
Create
Brand awareness using female influential celebrities.
Style of the can which symbolizes femininity.
Awareness regarding Energy Drinks.
P&B Beverage company
MARKETING STRATEGIES
Product Opportunity Matrix
Existing ProductsExisting Products New ProductsNew Products
Existing Markets
(Market Penetration)(Market Penetration) (Product(Product Development)Development)
New MarketsNew Markets
(Market Development)(Market Development) (Diversification)(Diversification)
Blue Energy Drink is a product that is not totally new to the market. There already exists
a market for energy drinks. Also, since the energy drinks market is very well defined and
has limited scope in terms of broadening, we are looking at the “Current Market” instead
of a new one. Thus, adopting a Market Penetration Strategy for Blue Energy Drink seems
to be most appropriate, within which, our aim will be to maximize market share. This can
be done by aggressively marketing and advertising the product to make the target
segment aware of the value propositions on offer.
Pink Energy Drink is a new concept in the market targeting a new market segment as
well. So diversification strategy seems appropriate. Our product is targeting specifically
women which is a segment not yet targeted by competitors and there are also
modifications in the product that is according to the taste of women i.e. Caffeine is less
used in the Pink Energy Drink.
P&B Beverage company
Product Life Cycle
IntroductioIntroductio
nn
GrowthGrowth MaturityMaturity DeclineDecline
Out of the four life cycle stages, Energy Drinks are in the growth stage. Since energy
drinks have been around for many years. New products and new emerging brands have
expanded consumer choice in the energy drink market, which has pushed them in the
growth stage. Whereas Pink and Blue Energy Drink is in its Introduction Stage as it is
going to launch in the market.
P&B Beverage company
BCG Matrix
Relative Market ShareRelative Market Share
HIGHHIGH LOWLOW
Market Market
GrowthGrowth
RateRate
HIGH Star Question Mark
LOWLOW Cash CowCash Cow DogDog
The relative position of Pink and Blue Energy Drink in the market dominated by Red
Bull is quite low and the potential for market growth is very high. Thus Pink and Blue
falls in the “question marks” quadrant, where it has high potential to increase market
share and move to the “stars” quadrant, and eventually to “cash cows” where the market
growth will slow down. Also it is to be noted that if Pink and Blue does not succeed in
becoming a market leader, then there is a possibility that after years of cash consumption
it will degenerate into “dogs” when the market growth will decline.
P&B Beverage company
TOWS MATRIX
Strengths Weaknesses
1. Strong Financial Background
1. Price pressure from competitors.
2. Separate Drink for Females
2. Lack of a reputation in comparison to our competitors
3. No visible change in sales even after price increase
3. Large market share of other energy drinks like Red Bull.
4. Knowledge of target
markets.4. Limited market
Opportunities S-O Strategies W-O Strategies1. Expansion in new markets 1. Expand in other
markets to generate higher revenue (s1,o1 &o2)
1. Take advantage of exploring new markets to increase production and reduce price (w1, o1,o2)
2. Energy Drink market can be expanded very well
2.
Target male and females from universities (s2,o4)
3. Extension of product line to increase market share
4. Target Universities directly
Threats S-T Strategies W-T Strategies1. Unstable political situation
of our country1. Bring a new
product that has no caffeine (s1,t2)
1. Conduct an official lab testing of Pink and Blue in order to remove the misconceptions of people. (T2,W2)
2. Misconception about energy drinks
3. Emergence of Substitutes
P&B Beverage company
4. Price War
SALES FORCAST
Month Sales
March 20000
April 20000
May 23000June 25000July 28000
August 22500
September 23100
October 19000
November 18000
December 15000