project report - tarang (partial)

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Buyer Analysis Tea is the most popular drink in Pakistan and holds significance in local culture. It is one of the most consumed beverages in Pakistan. Pakistan is among the largest importers of tea in the world. Tea is usually consumed at breakfast, during lunch breaks at the workplace, and in the evening at home. Although green tea is becoming increasingly popular, tea with milk is still the most popular form of consumption of tea in Pakistan. People use different type of milks in their tea. Unbranded milk from milk shops, Tetra Pak all purpose milk are the major milks used in making tea. In Pakistan social classes A+ and A, milk powder was used in the milk. This enabled convenience in usage and there is no storage hassles. Similarly, workplace where tea consumption is high used powder milk where convenient of usage is required. Milk powder used was Millac (an all purpose milk powder) and Nido (a milk powder designed for children). At that time, this was a huge market Niche which was being catered by products not made for this Niche. Nestle came up with the milk powder brand ‘Everyday’ to cater the Niche and currently considered the leader in this category. However, ‘Everyday’ is mostly targeting the original market with SEC class A+, A and B. Engro entered into this market and targeted lower middle class and lower class through its milk whitener Tarang to replace all purpose milk used specially in rural areas of Pakistan. Now Engro has launched Tarang milk powder tea whitener to cater need of middle and upper lower class and workplace tea industry. Demographics Tarang powder tea whitener is not bounded to any particular age, gender, or lifecycle stage. It is intended for all middle and upper lower class. As women of house are usually involved in purchase decisions for groceries so women can be the main target of this product. It is targeting the different SEC class as oppose to Tarang liquid tea whitener. Tarang strategy is to penetrate the masses

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Page 1: Project Report - Tarang (Partial)

Buyer AnalysisTea is the most popular drink in Pakistan and holds significance in local culture. It is one of the most consumed beverages in Pakistan. Pakistan is among the largest importers of tea in the world. Tea is usually consumed at breakfast, during lunch breaks at the workplace, and in the evening at home. Although green tea is becoming increasingly popular, tea with milk is still the most popular form of consumption of tea in Pakistan. People use different type of milks in their tea. Unbranded milk from milk shops, Tetra Pak all purpose milk are the major milks used in making tea.

In Pakistan social classes A+ and A, milk powder was used in the milk. This enabled convenience in usage and there is no storage hassles. Similarly, workplace where tea consumption is high used powder milk where convenient of usage is required. Milk powder used was Millac (an all purpose milk powder) and Nido (a milk powder designed for children). At that time, this was a huge market Niche which was being catered by products not made for this Niche.

Nestle came up with the milk powder brand ‘Everyday’ to cater the Niche and currently considered the leader in this category. However, ‘Everyday’ is mostly targeting the original market with SEC class A+, A and B.

Engro entered into this market and targeted lower middle class and lower class through its milk whitener Tarang to replace all purpose milk used specially in rural areas of Pakistan. Now Engro has launched Tarang milk powder tea whitener to cater need of middle and upper lower class and workplace tea industry.

DemographicsTarang powder tea whitener is not bounded to any particular age, gender, or lifecycle stage. It is intended for all middle and upper lower class. As women of house are usually involved in purchase decisions for groceries so women can be the main target of this product. It is targeting the different SEC class as oppose to Tarang liquid tea whitener. Tarang strategy is to penetrate the masses through low cost and differentiation via taste. Like its liquid counterpart, Tarang powder is targeting health conscious people who are concerned about the hygiene of unbranded milk. Convenience is the factor targeted by Tarang milk powder.

PsychographicsTea whitener is still in the introductory stage in Pakistan. Although Nestle came up with ‘Everyday’ more than ten years ago but due to its high end perception masses in middle and lower classes were still not aware of its exact usage.

As the tea whitener milk powder industry is in the awareness stage, the main motivator for consumers will be their perception about the product class as a whole and the brand as well as the rational appeal describing the exact usage of the brand.

Page 2: Project Report - Tarang (Partial)

When Tarang liquid tea whitener was launched initially, strong emotional appeal was used and rational appeal was very low. As a result, many people were not aware of the actual product and perception was in the minds that the advertisement is for a tea rather than a tea whitener.

The psychographics factors should work on creating a proper perception of product. Recent Tarang milk powder ads are moving in this direction. The industry is currently in cognition stage. The main aim of this product category is to convert people using ordinary unbranded milk into using Tarang milk powder tea whitener.

Target MarketThere are two main target segments for Tarang milk tea whitener. Home users who might use powder milk whitener for tea made at home. Second segment can be workplace administrations that provide tea for the employees working in the industry. Business to business marketing strategies can be applied in this segment.

In their ads, Tarang powder has targeted the Home users segments. They have shown that ordinary milk is unhygienic and full of impurities. Using Tarang powder will be hygienic, convenient and less expensive than the ordinary milk.

For industrial segment, Tarang has created and distribute pamphlets with all the features of Tarang milk tea whitener. The main appeal for this target segment is low cost as this industry already uses other milk powders as tea whitener.

Page 3: Project Report - Tarang (Partial)

Advertising ObjectivesThe overall objective of our advertising is to create awareness for the Tarang powder tea whitener. As this is the new product category for many targeted segments. This introduction involves telling the consumers how Tarang powder is beneficial to the ordinary milk they are using. In industrial segments, the objective of advertising is to change the brand through low cost.

In home segments, where Tarang powder is targeting middle and upper lower classes, the objective of the advertising campaign is to create awareness among the consumers that Tarang powder is easy to store and easy to use. It is less expensive than unbranded milk and other tea whiteners. It creates tasty creamy tea which indicates an emotional appeal. It is hygienic as unbranded milk may contain impurities. In this segment the objective is to create an initial trial from the consumers. The objective is to increase the segment size as well as Tarang powder market share by 30%.

In the industry segment, our objective is to educate the consumers that Tarang powder is less costly than other tea whiteners and tea created by Tarang is tasty and creamy. Again emotional appeal is also added for industrial consumers. Here objective is to get increase market share in this segment by 10%.

Page 4: Project Report - Tarang (Partial)

Story Board

Scene 1Peon enters an office room with a cup of tea. Our main character is sitting in the room doing routine office work. He is a middle aged person belonging to middle class. A peon enters the room with a cup of tea. Peon puts the tea on the table.

Person: “Aray Abdul kya haal hain tumharay”

Peon: “Theek hain shahab”

Person drinks the tea and get impressed by the tea and say: “Chayee to tum bahut achi banatay ho”

Peon: “Shukriya shahab”. And goes back.

Scene 2Main character enters his house. Side bag is hanging at his left should. He has a motorcycle helmet and keys in his hands. He is talking on the phone. Kitchen is visible in the background. He comes in, puts his Helmet on the fridge then sits on the chair and puts bag on the second chair on the left. All along he is talking on the phone.

“Begum to hain hi nahi, woh apni ammi kay yahan gayee hoyee hain kafi dinoon say. Aur kafi mushkil say guzar rahi hai. Saray kaam bhi khud karnay partay hain. Haan abhi chayee bhi khud bana ker piyun ga. OK”

Switches off the phone

Scene 3Main character is making a cup of tea in a kitchen. Cooking stoke is visible and two Pateeli are there: one for tea and one for ordinary milk. Cup is also visible with spoon. Tea is already in the cup. He picks the Pateeli with the milk and pours milk in Cup while spilling some milk. He stirs the tea and drinks it. On drinking he makes bad face as if he don’t like the milk and puts the cup back on counter.

Scene 4Main character is sitting with a friend as in meeting environment and drinking tea. Both drinks and get impressed by office tea.

Main character says “Aik yeh chayee hai. Ghar mai to mujhse chayee banti hi nahi”

Friend says “Yaar tum cheeni patti sahi nahi daltay hogay”

Page 5: Project Report - Tarang (Partial)

Scene 5Main character is again making a tea at home. He properly puts patti then he goes to the fridge and picks out ordinary milk. He smells that there is some problem with milk and found that milk is sour due to load shedding. He says “Oho doodh bhi kharab ho gya”

Scene 6Main character is again in office and standing with friend. Suddenly, friend asks about his tea problem.

Friend: “Aray, kal chayee kaisi bani thi”

Main character: “Aray office jaisi chayee to bani nahi aur kal to doodh hi kharaab ho gya tha”

On listening to that peon who is coming in from outside with a shopping bag in his hand comes in and puts out Tarang pack from the shopping bag. He says

“Sir, aap tarang powder istamal nahi kartay hongay. Is say banay mazaydar chayee. Na rakhnay ka masla na kharab honay ka dar. Aur is say banay poray assi (80) cup.”

Scene 7Full screen scene of Tarang milk pack is shown. Main character puts spoon and brings out Tarang powder from the pack and puts the milk in tea. It mixes the tea and creamy color of tea is visible. He drinks the tea and get impressed by his own tea and says: “ab bani tarang say asaan aur mazeedar chayee.”

Scene 7Main character is sitting on the chair and drinking tea and speaking with his wife on the phone.

Main character: “Begum aaj to tum say achi chayee banai hai.”

Wife response: “theek hai kal say aap hi banayiee ga”

Page 6: Project Report - Tarang (Partial)

SWOT AnalysisIn order to create an effective strategy for getting competitive advantage, the management must perform the competitive analysis. This involves both assessing the internal environment and the external environment effecting the organization ability to compete effectively. SWOT analysis is one of the tools to analyze these environments.

Strengths Strong professional management of Engro Foods Limited. Engro Foods has successfully launched

top brands like Olper’s, Owsum, Omore. They have the expertise in launching similar dairy products.

Engro has invested heavily in milk processing and milk collection infrastructure. They have the strong suppliers support.

Engro has inherited management practices and principles from Exxon Chemicals USA, after the management buyout.

Weaknesses

Opportunities

Threats