shaz final report

8/4/2019 SHAZ Final Report

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SHAZ – Energy Drink

INSITUTE OF BUSINESS & TECHNOLOGY

Submitted to :

Student Group:

Submitted By

• Sohail Muhammad Iqbal BM-25150

• Hamid Hasan BM-25167

• Anzar Ishaqui BM-25173

• Zubair Nasir BM-25123

(MBA – Summer 2009)

Miss. BINISH NIDA 1 GET IN THE LEAD




Course

Date of Submission

Project

Product

– ENERGY DRINK


– ENERGY DRINK

GET IN THE LEAD




In the name of ALLAH, The most Merciful and Beneficial.

We indebted to ALMIGHTY ALLAH, Lord of our lives and of

everything in the universe and His HOLY PROPHETMOHAMMAD, (Peace Be upon Him), whose blessings enable

higher ideas of life.

We deem it a great honor and privilege to record profound sense of

gratitude to our teacher Miss Binish Nida for her constructive

criticism and valuable suggestions throughout the Principle of

Marketing course and in the preparation of this report. Her inspiring

guidance and consistent encouragement given in learning, execution

of the training will ever shine in our mind.

We have tried our best to make this report effective and efficient.

Some quality and informative books helped us very positively to make

this Report understandable for readers. We are very thankful to allour classmates who really helped us and especially our teacher who

maximized our skills in order to make this report effective and very

systematic.





1) Introduction to S.H.A.Z …………………….…… 52) Product Variety……………………..……………... 6

3) Mission Statement……………...………………….. 7

4) About S.H.A.Z...…………….…………………….. 8

5) Marketing Objectives…………………………….. 9

6) Marketing Strategies…………………..………... 10

7) Marketing Tactics………………………………... 11

8) Marketing Mix…………………………………… 12

9) SWOT Analysis…………………………………... 17

10) The BCG Growth Matrix………………………... 21

11) Market Segmentation……………………………. 22

12) Target Market………………………….………… 24

13) Brand Personality……………………………....... 25

14) Competitor Analysis……………………………...26

15) Market Share Chart………………………….…. 27

16) Environmental Analysis………………………… 28





SHAZ energy drink is a product of S.H.A.Z group. It isdeveloped in Karachi, available in all over Pakistan. ARY cash n carry have the exclusive right to marketthis product in Pakistan. S.H.A.Z is an energy drink and it is much more than a soft drink. It is energizerdeveloped particularly for periods of mental andphysical stress and strain.

S.H.A.Z can be consumed in any situation duringsports, at work, while driving and in leisure activities.S.H.A.Z is made for moments of increased physical

and mental stress and improves endurance,alternatives, concentration and reaction speed.

The effectiveness of S.H.A.Z energy drink has beenproven by a large number of scientific studies and isappreciated by many of the world’s top athletes anddrivers, opinion leaders and hard working people with

active life styles.





PRODUCT VARIETY

• Power Original (Citrus drink)

• Real Power Black Cherry (reddrink)

• Power Orange rush (orange drink)





VISION STATEMENT

MISSION STATEMENT





SHAZ is carbonated vitamin enriched refreshingenergy formulated drink distinctive in taste acolor aimed at the individual seeking a boost inmental and physical functionality.

If you are young, old, stressed, parting hard,playing hard, studying, working or just need a

boost then SHAZ is the right choice for you.

SHAZ original will initially be available inKarachi with its unique formula to provide a boost to increase strength and energy. Otherformulated drinks will be available in future,each containing their unique formula enhancingstrength, energy, stamina, endurance, alertnessof body and mind.





•

To increase the market share by 10%

• To increase the awareness for the brand

• To increase the advertising budget by 20%

• Induce the prospect customers to usethe brand by introducing differentpromotional tools

• To increase placement

•

Aim for an average price of theirproduct





MARKETING STRATEGIES

• To increase the sales with particularly emphasize on male buyers with also increasinga female base introducing sweeter drinks.

• Capture the market through penetration by increasing distribution outlets

• Develop a new campaign that supports the

positioning strategies by using billboards which are much cheaper.

• To conduct a research in order to find out thechanging preferences of the consumers.

• To develop a point of purchase display

• Wider the span of availability





• Introducing new flavors to attract new

customer.• Introducing new sweeter taste formula for

Females.

• Introduce scratch cards and give instantprizes to the customers to regain loyalty.

• Make the drink available at concerts or

happening events.

• Establish inner control to decrease cost.





Price is the amount of money charged for a product orservice or the sum of the value the consumers exchange forthe benefits of having or using the product or service. Price is

the only element in the marketing mix that producesrevenue; all other elements represent cost. This shows theprice is also one of the most flexible elements of themarketing mix. Unlike product features, price can easily bechanged.

The pricing strategy for SHAZ is based on maximum sharegrowth because it is working in small and tough segment.SHAZ is to increase its customer share and challenge Red

bull. For this SHAZ is trying to maximize unit sales. Theprice of SHAZ is set a fraction higher compared tocompetitors; the market of energy drink is not pricesensitive.

The consumer in the energy drink sector is not very pricesensitive and keeping that aspect in mind, the company hasplaced the price of product same as its competitors or a

fraction above its competitors. Keeping the price above orthe same as the competitors was done because SHAZ wantsto say something about the product. The Price of a SHAZ canis Rs.60. ARY is also providing substantial benefits to itsretailers and other channels.





Sales promotion consists of a diverse collection of incentives tools, mostly short term, designed tostimulate quicker or greater purchase of particularproduct or service by consumers or the trade.

The promotion done by SHAZ is based on advertisingand sampling. The objective of the promotion in thefirst phase of the campaigns was to createawareness of the drink category. Obviously, themessage is carrying the brand name so it can beestablished as an energy drink. The product has ahigh image because of which a perception of itsattitude and attraction has to be made. It is difficultto mass market this product that is why it is being

sold to a focused market.

Four old beetles with a SHAZ branded were runningon the roads for promotional purposes. Samplingactivities were also performed by these beetles. Twodifferent posters with the same design and brandelements were made. These posters are very effective in creating an acceptance in the shops.





For image building purpose, a contract with subways wassigned and now the product is available there:

• 15 second TV commercial with male and femalemodels (three different versions with sametheme).

• 15 second TV commercial (battery charging).

• The frequency of the commercials was really high

but non-prime time placement.

• ARYONE, the Music and City channel wererunning SHAZ commercial.

• July issue of Spider Magazine was also covered.

• Participation in exhibitions: My Karachi andKitchen Care in Karachi Expo Centre.

These are all the promotional activities that were performedin the start but now, all the sampling test are done forconsumer promotion





Product is anything that can be offered to a marketfor attention, acquisition, use or consumption thatmight satisfy a need or a want. SHAZ is a consumer

product that can be bought by the final consumerfor personal consumption.

Among the consumer product, it would be placedunder shopping product as they are bought lessfrequently and among them, the consumercompares carefully on quality and price. When

buying these kinds of products, the consumer

spends a lot of time and efforts in gatheringinformation and making comparisons.

The SHAZ product focuses on being more than a softdrink; it is an energizer, drinkable in any situationand in short, vitalizes body and mind. The claimsregarding the brand that were made by the

company, the product has the potential to fulfill allthose claims.





It is a very crucial strategy of marketing but it does vary fromthe type of the product. Placement strategy means where theproduct would be available for the sale. To make a productavailable at different locations, we try to forge a distributionchannel which is a set of inter dependent organizationinvolved in the process of making a product or serviceavailable for use of consumption by the consumer or business usage.

Presently launching, SHAZ have a very strong distributionnetwork in Karachi, Lahore, Islamabad, Rawalpindi andFaisalabad. The Karachi distributor is running two vans of SHAZ, whereas in Lahore, it is being distributed with Del’Monte’s products. In Islamabad, exclusive vans are running.

Our product is available in almost 700 shops in Karachi.Place strategy might be different from a point of view of specialty product as that cannot be made available at every store but can only be made available at certain stores that areselected according to the target market and pricing strategy.

Karachi wholesale market is also being tapped with multiple

suppliers. The reason of having multiple suppliers is to avoid

exclusivity market to stabilize the prices. In Lahore, the product isalso available at ARY Cash & Carry. It is also available at all

prime shops including Defense Club Lahore and in the Lahore

wholesale market.





1. The SHAZ group has a substantial capacity of production and packaging. This helps ARY not to

fall behind in times of high demand.

2. Unique product design

3. the target market encircles the age group from 15to 30 years

4. High technology & skill workers

5. The effectiveness of SHAZ energy drink has beenproven by large number of scientific studies. Thishas created a trust among the people and is one of the strengths for SHAZ.

6. SHAZ is being distributed by ARY cash n carry. ARY cash n carry is an ARY SBU. ARY is powerhouse group and has a strong base in Pakistan.

7. It is made for Halal ingredients

8. SHAZ product contains more vitamins and calciumas compared to other ingredients.





i. The budget is not sufficient for marketingactivities.

ii. The market was not properly targeted; they lack the understanding of the market.

iii. The positioning of the SHAZ is as a premiumproduct but the consumer has low attachmentas compared to Redbull.

iv. The management changes at cash and carry and because of these fluctuations in pricing areeffecting the perception of the consumer.





1) High rate of market growth

2) Lower import tariff rates

3) Rising literacy and changing trends of Pakistan

population

4) Launching the product Nation wide & to

create brand awareness

5) Supply SHAZ at major concerts, matches and

events because the people at events require

extra energy.





i. Entrance of the new competitors

ii. Competitors strategies

iii. Changing fashion the target marketing

iv. Official changing the Government Polices

v. The other is from low cost substitutes like

caution and powder form energy drinks. Theseare cheaper and for a price sensitive consumer

are better options.

vi. Well established brands like Red bull are and

will be a threat for SHAZ.





Relative Market Share

High

High

Low Low

Portfolio of the Company

High

High

Low Low


Star

• ARY Digital

• ARY Refinery

Question Mark

• ARY Cash &Carry

• ARY InterExchange

Cash Cow

• ARY Jewellery

• ARY Bulletin• ARY

Manufacturing

Dog

• ARY Real Estate

Star

• ARY Digital

• ARY Refinery

Question Mark

• ARY Cash &Carry

• ARY InterExchange

Cash Cow

• ARY Jewellery

• ARY Bulletin• ARY

Manufacturing

Dog

• ARY Real Estate

Line Extension

• ARY Jewellery (Diamonds andPearls)

Brand Extension

• ARY Cash &Carry

• ARY Inter

ExchangeMulti Brand

• ARY India

New Brand

• ARY Manufacturing




Market consists of buyers and each buyer differs in many ways. They differ in their wants, needs, resource and buyingattitude. Market segmentation is a tool that the company uses to divide large heterogeneous market into smallhomogeneous segments.

The market segmentation for SHAZ is done on segmentmarketing. Through segment marketing the company hasidentified small group of people with similar needs and

wants and through the marketing practices they aresatisfying these needs and wants.

The segmentation of the SHAZ is as follows:

GEOGRAPHICCountry\Region Pakistan \ Major Cities

Density Urban

DEMOGRAPHIC

Age 15-30

Gender Mainly Males

Life Cycle Young and single or married with no children

Income Rs. 45,000 and aboveIncome Group Upper Middle and High Class

Occupation Good job or on business, is a student belongingto a wealthy family.





PSYCHOGRAPHICSSocial Class Upper and Upper Middle Class

Life Style Young, Trendy, Cosmopolitan,Gregarious, Hip

BEHAVIORALOccasion Any

Benefit Sought Flavor and Brand Status

Loyalty Status Significantly High

Attitude Towards Product Enthusiastic, Positive

The energy drink industry is not uniform as buyersdiffer in their taste and buying behaviors. Thussegment marketing strategy is used to isolate the

broad market segments that make up the market.





Once the firm has identified its marketsegment than the main task before thecompany is to decide how many and whichones to target. Before targeting a segment,company must take into consideration the

various aspects of the segment like size andgrowth, attractiveness in the segment andabove all the resources of the company.

ARY cash and carry is targeting the upperand upper middle class preferably the

youngster’s & young child. Thus this productis targeted towards this particular segment.

ARY cash and carry targets the market

through concentrated marketing, which isthe market coverage strategy and in whichthe firm focuses on one segment. SHAZfocuses on high class lifestyle people whoare much more conscious about their healthmatters and they certainly do notcompromise on quality of a product, even if they have to buy it at a higher price.





Product positioning if the way the product isdefined by consumer on important attributes. It is

basically a place the product occupies inconsumers mind relative to competing products.

You can position anything, a product, a politicianor even a human being. It starts with the product

but positioning is not what you do to the product but it’s what you do to the mind of the prospect.

The positioning strategy for the SHAZ is to targethealth conscious and people looking for anenergizing drink. SHAZ provides vitamins andcalcium and at the same time refreshes the body and mind. SHAZ uses multiple vitamins A, B1, B6,

B12 and E and calcium in their strategy forpositioning their product.

The personality of the brand is its premium price for ahigh quality and healthy drink, which energizes the body

and mind and caters to upper and upper middle class.





world ranking is number 1, it is well advertised world wide and due to cable it is also beingadvertised through other channels.





0%

10%

20%

30%

40%

50%

60%

70%

Percentage


Redbull SHAZ (Approx.)Bomba Dynamic

Horse Power Spark




OVERALL ENVIRONMENT OF

THE INDUSTRY

• The demand and consumption in the energy drinks market has increased during the last 5

years.

• Import tariff rate was reduced from 45% to 30%, which has allowed increase in imports.

• The market consumptions for energy drinks: - atan approximate, the consumption for energy drinks in the market is 24750 liters per month.

• The market consumption for SHAZ: - at anapproximate the consumption for SHAZ in themarket is 5,000 liters per month.

• The energy drink industry also has low cost drinkslike Caution and Sachets like Bull Powder, whichare introducing cheaper and affordable drinks.

• There is a great believe among the consumer dueto changing culture that there is a need for energy drinks because of the fast pace of life.

• The main ingredients use in SHAZ and Red bullare vitamins and calcium, which are beneficial for





the body. The other competitors use theseingredients too but in a lesser quantity and rely more on Guarana, Magnesium and Caffeine.

• The industry seeking new competitors coming inlike Solstis, which is a product and Red bullcompetitor and the growth of the market isincreasing at a much slower rate as compared tothe competitors.

• The government has no policies on energy drinks

as yet.





SHAZ Energy Drink is one of the most excitingProducts to introduce by the All over Pakistan. Our aimto phenomenal growth have helped it to overtake itsleading competitor in sales volume for the future, they have done this through an extensive marketing andpromotion campaign, building the Product awarenessand loyalty along the way. However, the company mustimplement a large-scale advertising plan in conjunction

with these promotions in order to continue growth and become the most successful Product in the Nation

How to break away from top competition like Red Bull,Rock star, and Full Throttle, so then Needs to moreimplement an advertising strategy that will increaseProduct awareness, sales, and target market size inorder to accelerate growth. This advertising plan willinclude television commercials, magazineadvertisements, and athletic endorsements to reachthese objectives. Should bring the popular energy drink to a more mainstream audience and reach the necessary goals. The project will be monitored with many of thetraditional methods for tracking. Scanner data, ratings,and sales analysis should help to show whether the

campaign was a success or not. Given the opportunity cost of staying idle and losing market share, SHAZshould seize the opportunity at hand and begin a massadvertising campaign. The future success of thecompany depends on their current marketing choicesand decisions.

shaz final report

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