Principle of marketing A PROJECT REPORT ON

Liquid life Juice Company SUBMITED BY

NAILA IFTIKHAR SANA ZAHOOR

HUMAIRA NASEER ATIQA MEHMOOD

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Our mission“Our mission is to produce and sell

products that enhance quality of life and well-being”

Our vision“Our vision is to be a premier

manufacturer of raw sugar cane juice to the world’s leading food marketers”

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IndexS# Contents Pg#

1) About Entrepreneurs of Company 42) Report based on theory 5-113) Nature of business and statement of financing needs 124) Executive Summary 13

5) Result of survey 146) Target market 157) Competition overview 168) SWOT analysis 179) Product review 1810) Marketing Plan 19-20

11) Web marketing and manufacturing process 21-22

12) 5 years financial plan 23

13) Sales forecast 24

14) Revenue forecast 25

15) Expense forecast 26

16) Profit margin 27

17) Break even analysis 28

18)c

Conclusion 29 -30

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About Entrepreneurs of Company

Name and Address of entrepreneurs:

1. Naila iftikhar

2. Sana zahoor

3. Humaira naseer

4. Attiqa mehmood

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Report based on Maslow’s hierarchy of need’s theory:-

Maslow’s hierarchy of needs:-

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“Sugarcane juice in tetra pack”business idea is based on Maslow’s hierarchy of needs model.this report is based on “PHYSIOLOGICAL NEEDS” These include the most basic needs that are vital to survival, such as the need for water, air, food, and sleep. Maslow believed that these needs are the most basic and instinctive needs in the hierarchy because all needs become secondary until these physiological needs are met.Most of these lower level needs are probably fairly apparent. We need food and water to survive.

Product covering delight needs

Our product fulfills delight needs of our customers. By drinking liquid life’s sugar cane juice they experienced as they are drinking fresh cane juice. Now what is delight needs in marketing means? That is the needs when a person gets more than what he/she want and that make them happy is called delight needs.

QUALITY, SERVICE, PRICE MODEL (QSP)

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QUALITY (high)

VALUE= SERVICE (high)

C .SATISFACTIONS ( high)

PRICE(low)

Major societal forces:-

Company orientation:-

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We will follow “PRODUCT CONCEPT” and “MARKETING CONCEPT”

HOLISTIC MARKETING CONCEPT

We will follow holistic marketing concept every department will be kept in consideration.

Value chain

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Business will be followed on footsteps of researchers ideas,their experiences and on their theories. We strictly follow the value chain that was proposed by “MICHEL PORTER” as a tool for identifying ways to create more customer value and build long term relationships with

them and not considering customer as only

“AN EXPLOITABLE INCOME RESOURCE”

Rather than should be considered as

“A LONG TERM FIXED ASSET”

BASED ON CORE COMPETENCY:-

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PORTER’S GENERIC STRATEGY

We will provide best quality of product in affordable price.

CULTURAL ANALYSIS

Sugar cane is cash crop of Pakistan traditionally sugar cane juice is in demand but as it is being sold on road and street corners and also not

hygienic so we plan to provide this drink in proper tetra pack packaging and we provide HYGENIC and AFFORDABLE drink.

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ANSOFF’S PRODUCT MARKET EXPANSION GRID

We follow “MARKET PANETRATION” and “MARKET DEVELOPMENT STRATEGY”in near future.

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Nature of Business“Sugarcane juice in tetra pack”is a business idea

that deals product. Our product is sugarcane juice in tetra packs or pet bottles. Sugarcane juice is widely used in summer season because of its taste and low costs. Now in many countries it’s produced on chemical basis and there sales are quite high especially in Middle East countries.

This juice is widely used in hot weather conditions.

Statement of Financing NeedsThe total project investment is Rs. 50, 00,000.

Land on Rent

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We will take 400 yards land on rent for 3 years of agreement and agreement will be renewed. Land advanced is Rs 400000 and monthly

Rs 30000. Construction cost is Rs 500000approximately

Equipment.We would require a sugar cane juice extracting machine.

Executive Summary:“Sugarcane Juice is a Marketing idea that we are coming up with. Fresh sugarcane juice obtained from mature cane is sweet and tasty. It is not only a thirst quenching drink but also nutritious due to the presence of several minerals like phosphorus, calcium, magnesium, vitamins, amino acids etc., and has medicinal properties also particularly for the cure of jaundice. Cane juice mixed with the extracts of lemon, mint etc., adds to the taste, helps in better digestion and improved bowel movement .Our product is sugarcane juice in tetra pack packaging. Sugarcane juice is widely used in summer season because it is good in taste and low in cost. But problem with this is that it can’t be preserved for long time. In Pakistan no company has launched sugar cane juice till now in tetra pack. The methodology used in Pakistan is quite old and so many people don’t go for this sector because the risk of the low shelf life. So we have decided to launch a sugar cane juice & we would be using sodium

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benzoate as a preservative which would increase the shelf life of our product without harming its color and taste. Because sugar cane juice is naturally sweet, so it can be sold with a little additional processing too. Fresh sugar cane juice has no preservatives, however its tendency to turn black from oxidation soon after pressing is very high, so to secure from oxidation we should pack in tetra pack packaging. The sugar cane juice has several health benefits and medicinal properties most of which remains unknown to the masses. It has direct effect on digestive system and it contains nutrients which are healthful for life. It strengthens the stomach, kidneys, heart, eyes, and brain and sex organs. The juice sucked from the sugarcane can prove highly valuable in case of weak teeth due to lack of proper exercise resulting from excessive use of soft foods. It gives a form of exercise to the teeth and makes them strong. It also keeps the teeth clean and increases their life.”

Our immediate geographic market will be RAWALPINDI AND ISLAMABAD (with4.5 million inhabitants, 1,875,000 million in

Islamabad and three million in Rawalpindicity)

http://citypulse.com.pk/pakistangis/tag/rawal

We have conducted survey for this product within Rawalpindi and Islamabad

On the basis of this result we have targeted and segmented our market. we made sample survey with the help of researcher questioners from following web sites.http://ultralightstartups.com/wp-content/uploads/2012/04/How_to_Prepare_a_Market_Analysis.pdf

http://projectsinmba.blogspot.com.tr/2011/08/marketing-research-project-on-nestle.html

Result of survey:

Sample Survey formName________ Gender __ male __ Female

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Age __________ occupation________

City____________

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Launching product“SUGAR CANE JUICE IN TETRA PACK”

DO YOU LIKE SUGAR CANE JUICE? A) YES B) NO ________________________________RESULT: 85% YES AND 15% NO

DO YOU HEARD ANY BRAND SELLINGSUGAR CANE JUICE IN PAKISTAN? A) YES B) NORESULT:98%NO AND 2%YES

WHAT’S YOUR CHOICE IF IT IS AVAILABLE IN A) WITH BLACK SALT FLAVOURED B) WITH MINT AND LEMONRESULT: 60%(A) AND 40% (B)

SUGGEST PRICE PER TETRA PACK? A)RS 30/- B) RS 50/-RESULT:90% (A) AND 10% (B)

WOULD YOU BUY THIS PRODUCT A) YES B) NORESULT: 98% YES AND 2% NO

TARGET MARKETPrimary Market

Kids – Fond of Fruit Juice (fond of mango, strawberry, raw cane)

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Teens – More experimental

Youth – Experimental and more buying power

Working People

Housewives

Elderly people

Secondary Market Travel Industry

Airlines

Railways and Local Transport Systems

Recreational

Movie Theatres, Malls, Amusement Parks.

School, Colleges

Hotels, Restaurants, Bars etc.

Competition Overview:

Indirect Competitors

The indirect competitors of our Product are:

Nestle ( chounsa , guava, grapes nectar)

Coca cola (pulpy orange)

Shezan (Mango, Punch, Orange, Apple.)

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“But we are not competing our product with them because they are the competitors of the Juice market and they are only providing the different

flavor juices but not the sugarcane juice”

Indirect Competitive analysis:

As the Sugarcane juice is the symbol of the refreshment and nutrition and it is also a substitute for the other soft drinks. So we have compared

it with other soft drinks. So in the soft drink market we have the competitors like

Coca cola

Pepsi Other instant drinks

SWOT ANALYSIS

STRENGTHS: INCREASED HEALTH CONSCIOUSNESS

FIRST MOVERS’ ADVANTAGE PRODUCT INNOVATION:

NUTRITIOUS DRINK WITH SEVERAL HEALTH BENEFITS

WEAKNESSES:

LACK OF BRAND AWARENESS LIMITED SHELF LIFE

OPPORTUNITIES:

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LOCALLY AVAILABLE RAW MATERIAL CHANGING SOCIAL TRENDS

CAN BE MIXED WITH SEVERAL OTHER FLAVORS TOO

THREATS: POLITICAL SITUATION (GOVERNMENTAL UNCERTAINTY)

LACK OF RESOURCES (SHORTAGE OF ENERGY)

Product Review:Company Name:Liquid life Juice Company

OUR SLOGAN:

“DRINK FRESH STAY FRESH”

Product Name:Sugarcane juice in tetra pack packaging

Introduction:

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Our product is sugarcane juice in tetra pack packaging. Sugarcane juice is widely used in summer season because it is good in taste and low in cost. In Pakistan no company has launched sugar cane juice till now in tetra pack. So we have decided to launch a sugar cane juice.

Marketing Plan:1. Product strategy:

Core benefit

Core benefit means the services and benefits the customer is really buying. The customer fulfills its need of thrust and refreshment by buying our product

Basic product

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It’s mean what specifically the actual product is. Our actual product is juice

Augmented product

Products that include deign, features and packaging that go beyond consumer expectations and differentiate the product from competitors. The juice taste and flavour is according to the customer expectations because we provide 100% pure juice. They will have no compromise with quality Following things include in the sale of product,

Design

The design of sugarcane juice that it will be in attractive and stylish tetra pack in following size:

•250ml

Features

The features of the product are,

•Use full for healthy life •Good in taste •Help to digest food

Packaging

The product will be in tetra packaging which will be attractive and eye catching.

2. Pricing strategy:

The price of the product can also influence the buying behavior of the consumers because In Rawalpindi and Islamabad there is different level of classes based on the income difference so price is the one of the important factor, some of the consumer can afford the price and others

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Can’t, so must set the price of the product that is afforded by all the social classes of the region. So we use penetration pricing strategy.

Price Structure

(Consumer price)

250ml- Rs.30

3. Channel of Distribution:

Our product will be sold at all small and big stores in Rawalpindi/ Islamabad

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Web Marketing

Facebook1. Creating a community on Facebook2. Creating a Fan page on Facebook 3. This will enable the brand to keep its TA engaged and updated on the

introduction of new flavors and events

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Twitter1. Creating an active account on a micro-blogging site such as twitter,

where regular tweets on product and event updates will ensure interactivity

2. Followers will be encouraged to tweet their suggestions on new flavors.

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Manufacturing Process :

The process through which the sugar cane stalk would go through is as follows:

Peeling. Crushing. Filtration. Pasteurization. Packaging.

1-PEELING:

In this process the hard skin of the stalk that is not required for the juice is removed with the help of a machine.

2-CRUSHING :

In this step the stalk are cut in to small pieces and crushed to produce juice from them.

3 - FILTERAING:

After the juice is produced filtering of the juice is done to remove the un-needed particles that may have left behind in the juice from crushing.

4-PASTEUTIZATION :

In this step the juice is kept under a certain temperature to further remove the impurities from it. This step doesn’t harm the taste, colour and freshness of the juice.

5 - PACKAGING:

The final step is packaging of the juice in a tetra pack, which is again done with the help of a machine. The tetra pack has the name of the juice.

List of Raw Material:

Sugar cane

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Water

5 years Financial Plan:

Income Statement

Description 2016 2017 2018 2019 2020total Revenue

(20000*22)+(8000*38)+(10000*68)=1424000

(310000*22)+(150000*38)+(200000*68)=26120000

(460000*22)+(250000*38)+(310000*68)=4070000

(750000*22)+(500000*38)+(600000*68)=7630000

(850000*22)+(650000*38)+(750000*68)=94400000

Variable Cost ( Raw-materials, marketing, advertising, Promotion)

(20000*16)+(80000*30)+(10000*56)=112000

(310000*16)+(150000*30)+(200000*56)=20660000

(460000*16)+(250000*30)+(310000*56)=3222000

(750000*16)+(500000*30)+(600000*56)=60600000

(850000*16)+(650000*30)+(750000*56)=75100000

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Fixed Cost ( Land, Factory, Office, Storage)

2000000 2000000 200000 2000000 2000000

Total Cost 162000 2566000 3722000 65600000 80100000

Profit Margin

-196000 46000 348000 10700000 14300000

Sales Forecast:

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0

500000

1000000

1500000

2000000

2500000

total Sale

total Sale

Fig: Sales Forecast

The first three months of first year will be used to set up the processing and manufacturing plant for the production of cane juice. There will not be sales activity until the processing plant has established. From month four there will be a steady increase in sales

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2013 2014 2015 2016 20170

10000000

20000000

30000000

40000000

50000000

60000000

70000000

80000000

90000000

100000000

total revenue

total revenue

Fig: Revenue Forecast

Revenue Forecast:

As in the third month our product sales started and its will be increasing day by day our revenue also will be increased potentially. This growing revenue is shown in the above graph

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2016 2017 2018 2019 20200

10000000

20000000

30000000

40000000

50000000

60000000

70000000

80000000

90000000

Fixed Cost Variable Cost

Expense Forecast:

Marketing expenses are budgeted to analysis the year-wise expense. The projected expenses for five years are shown by the following graph.

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2016 2017 2018 2019 2020

-2000000

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

Profit Margin

Profit Margin

Profit Margin:

The progresses are measured by analyzing the yearly profit. These are shown by the following graph.

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Break even Analysis:

The Break-even Analysis indicates 25890000tk will be needed in yearly revenue to reach the breakeven point.

2016 2017 2018 2019 2020

-20000000

0

20000000

40000000

60000000

80000000

100000000

120000000

Fixed Cost

Profit

Total Expense

Total Revenue

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CONCLUSION

We promise the quality of its product, which we will also deliver through this product. We have first mover advantage because no other company is offering similar product in the market. We have to aware our customer about the product and have to tell them the benefit of using our hygienic product that comes in tetra pack. Though the initial cost would be high because we have to set machinery buy land and have to invest a lot in the advertising of product, but once you create the positive image in the mind of your customers they will automatically demand the product. May Allah help us.

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