sprizo pvt. limited

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SPRIZO Pvt. Ltd 2013

MARKETING PLAN FOR SPRIZO Pvt. Ltd Page 1

MARKETING REPORT ON:

SPRIZO

BY:

SHAFI ULLAHREG. NO: 20544

MUHAMMAD AMJADREG. NO: 20563

USHER FAREEDREG NO: 20988

MUHAMMAD SHAHZEBREG. NO: 16899

ZOHAIBREG. NO:

DATE:15-05-2013

Submitted as mandatory requirement for the course Principles of Marketing in the Program, Mastersof Business Administration


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TABLE OF CONTENT

Acknowledgement ..3

Executive Summary ..................................................................... 4-5

Company Description/Product logo ................................................. 6

Mission/Vision ................................................................................. 7

Organization Structure (Emphasizing the Marketing Function) ..... 8

Product Mix (with PLC Analysis) .................................................... 9

Market analysis ............................................................................... 10Promotion Strategy (& Positioning) ............................................... 10

New product development activities .............................................. 12

SWOT Analysis ........................................................................ 13-14

Market segmentatin /Four Ps of Marketing ............................. 15-18

Break even analysis ..19 -20

Conclusion & Recommendations ................................................... 21


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ACKNOWLEDGEMENT

First we thanks to Allah Almighty who has blessed us with great courage to make this report.

Secondly, we thank to our respected lecturer SI R ATIF SHAHAB BUTT who provide us this

interesting opportunity to do this report. Moreover he had been a remarkable mentor both in

terms of sharing his ideas relating to Marketing but also in widening our horizons strategically.

The report based on launching a new product (NARYAL PANI)and to explain our strategies for

launching and how to grab the customers. It s a combination of hard work and devotion which

enabled us to complete this report on time. We students of MBA were assigned a competitive

task to present this report with respect to analyze the market structure for our product and how to

stay in the market with our brands and successfully operate in the competitive business world.

Thus, we were advised to present the complete effort in a report form.


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EXECUTIVE SUMMARY:

The main idea behind the introduction of SPRIZO was provision of variety in NARYAL PANI/Coconut

water with different flavors. The SPRIZO will start its operation in Karachi from July 2013.

SPRIZO is considers as the first one to introduce coconut water in the Karachi local market.

The core competitive advantage of our product is the uniqueness in the product offer. .

The report explains the marketing plan for launching Coconut water named NARYAL PANI .

This product has been made by the SPRIZO Pvt. Limited , approved from the ministry ofhealth.

The reason for introducing NARYAL PANI is to refresh people who are tired. They need

something refreshing to calm their nerves & start with a new energy. NaryalPani comprised of

pure coconut water which has so many benefits. It can minimize the aging of skin cells, boost the

body's energy levels, and greatly benefit people who are struggling with weight issues & a

wonderful natural treatment for maintaining good cardiovascular health.

In the Beginning, we have explained the Vision & Mission of theSPRIZO Pvt. Limited. The

report examine that this product is initially launching in Karachi. We have contracted Market

segmentation, SWOT Analysis of the company to see company s Strength, Weakness,

Opportunities & Threats. Then we have explained the purpose, benefits & objectives of the product.

Then we have made a marketing mix strategy for our product. We have divided market into

different segment & decided to target customers at all ages. We will promote our product by

having stalls outside shopping malls, inside the college and universities, at the bus stops etc. We

shall also conduct market survey in near future to know the opinion of the public about our

product. NARYAL PANI brings you a range of juices that will scintillate your taste-buds.

Having Coconut water every day is a great way of strengthening the body resistance against


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infections and Diseases & maintaining a healthy life style.

The competitors of NARYAL PANI are Shezan& Nestle, which are leading the market right

now and other companies also have a great image in market

Then we have the SWOT analysis of our product. Our strengths are pure product with a

reasonable price. Weakness includes the small distribution network due to no market share & no

experience with customer. Opportunities include the increase in distribution network through

which we can increase the distribution of our product. Threats include political & economicinstability.

According to our pricing plan we have decided to offer the product to customers at Rs 30/-.The

price is very much competitive and offer is feasible enough to catch a large percentage of marketshares.


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COMPANY DESCRIPTION:

A newly found company, outsourcing all of the distribution and packaging sector to third party because oftheir small operation and to avoid extra cost burden.

The factory facility has been founded on 25 canal area of land in Korangi Industrial area Sector

15. We have ensured the installation of modern sophisticated & efficient equipment conforming

to the latest standard of Good - Manufacturing Practices.

The idea to launch coconut water in the market with different flavors is the positive

response towards this product from the general survey and detailed study of the beverage

market. At the start the company is outsourcing its transportation and packaging to third

party to focus completely on the quality of product and avoids extreme costs. And after

one year of operation we are expecting to be able to own our own packaging sector for the product .

SLOGON:

Pyasbujaogharmibagao

PRODUCT LOGO:


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PRODUCT MISSION:

To provide the purest drink to refresh you throughout your day, throughout your life

VISION:

To fulfill the basic need of customers by providing them multiple choices within a given affordable price

range and maintaining sustainable profitable growth

OBJECTIVES: To increase profit To satisfy Customer To increase the Length of product line

CORPORATE STRUCTURE

Head Office

The registered and corporate office of SPRIZO Pvt. Limited is in Karachi.

13-B, Industrial Area,Korangi, Sector 15,

Karachi.

PHONE: 1234567-69

Fax: 1357643-44

Factory

The factory of SPRIZO Pvt. Limited is located at Korangi Industrial Area Sector-15.


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ORGANISATION STRUCTURE:

The five founders working as a single unit handling different business departments individually.

Where departments assigned as follows

ADMINISTRATION:

SHAFI ULLAH

FINANCE:

MUHAMMAD AMJAD

MARKETING:

MUHAMMAD SHAHJEB & MUHAMMAD FAREED USHER

RESEARCH AND DEVELOPMENT:

ZOHAIB


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PRODUCT MIX:

The core product is providing coconut water in different flavors. This currently is coffee flavor,coconut splashes.

The extension of product line depends on the sales and the expected turnover.

PLC (product life cycle) ANALYSIS:

As SPRIZO has just entered the market, it is at the introduction stag e, where the profits are negative

and cost is high. Since marketing and promotion through social media is at the peak. Expected time to

reach the growth level is minimum 1and a half year. Due to over competitive strategies and marketing

strength designed according to the outcomes of our report and close observation of competitors products

and campaign we consider our company to cope of with these companies and grab the market of

beverages of Karachi. The current response from the peoples through our research avails that we will get

a quick and positive response from the market and could reach to our breakeven with in 1 and a half year.


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MARKET ANALYSIS:

ROLE OF MARKETING DEPARTMENT

As marketing is a game to meet the needs and wants of the customers to satisfy them, customer

satisfaction is the responsibility of marketing department. The department also helps in setting

prices with respect to competitors and to satisfy customer as well. It functions to promote the

product. So in this way it creates an environment where transactions can take place.

MARKETING DEVISION IN SPRIZO Pvt. Ltd.

In SPRIZO Pvt. Limited, there are three departments in the marketing division.

Research and development department Distribution department Sales department

As the function of marketing department is to satisfy the customer and to fulfill organization s

objectives, these cannot be performed by a single department. These can only be achieved when

there will be coordination among all departments of the organization. In the case of SPRIZO Pvt.

Ltd., marketing division with its three departments coordinates with all other divisions and departments.

Marketing division doesn't take decision itself. Rather it puts a lot of efforts to get the consensus

of all other divisions. Marketing people are directly related to the supply of the goods to the

retailers, so they have better estimation of the demand of their products. Marketing division gets

the feedback from the sales person. Then after getting estimation, marketing division communicates to

production division. The production division makes an analysis that how much capacity is

available and how much demand is there. If there is some need of financial resources and


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workers, the production manager communicates these needs to human resources division and

finance division. So these divisions take actions to fulfill the need of production division.

In this way the marketing division integrates the activities of different department to maintain the overall

operations of the company.

Before developing or launching any product, we have to go for complete study of market and

identify the needs and want of customers and develop product accordingly. Such sort of activities

is performed by marketing division with its three departments. The division has an efficient

research and development department which helps to identify the unmet needs of customers throughscientific research or surveys.

In general, the marketing division concentrates on following two aspects before developing new product.

Taste of potential market. Consumption pattern of target market

The marketing executives believe that product success depends upon whether it satisfies the basic needs

and requirements of customers or not. Secondly, they also believe that these must be sufficient demand

(consumption) for the new product.

If marketing research analysis provides reasonable results on above two aspects then marketing division

will proceed following new product development activities.


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SWOT ANALYSIS OF SPRIZO Pvt. Ltd:

STRENGTHS:

SPRIZO major strength lies in the innovation it brings in its products. Coconut water withdifferent flavors is unique in the beverage industry of Pakistan.

Completely focused on single product line to bring more innovation and introduce new and better

products to our customers.

democratic style has been adopted by management to empower employees and to give them

enough space to come out with their different ideas to take the company to the new heights.

It is available in reasonable prices.

WEAKNESSES:

Product is completely new for the customer, so targeting a customer is a great challenge

for our company.

Operation is limited just to Karachi city, due to which we would not avail the opportunity

of huge sales, which we could from other cities of Pakistan.

No market share with no customers experience.

Inexperienced employees usually fresh graduates for R&D and inventory evaluation.

Low sales revenue as initial cost is very high and profits are negative.


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OPPORTUNITIES:

Increase in Distribution network

Market is very big & attractive

Increase in Demand of High quality of product

THREATS:

there are several major competitors in the beverage industry positioned in the mind of

the consumer with the great brand image

Pakistan politics structure is very instable and is depressing economic activities and volatile

business environment in the state. Such instable environment may influence the performance of

all industries operating in state and SPRIZO may also be influenced from such trends ofinstability.

COMPETITIORS:

Nestle

Shezan


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MARKET SEGMENTATION:

SPRIZO has segmented its product on demographics basis, especially on:

Age 14-60

Gender Male & Female

Family life cycle Married, Unmarried

Religion Islam, Christianity & Hinduism

GEOGRAPHICS:

A Zone (N.Nazimabad, Nazimabad, Gulshan)

B Zone (Defence, PECHS, Saddar,)

C Zone (North Karachi, Gulzar-e-Hijri, Lyari)

DEMOGRAPHICS:

Age 14-60

Gender Male & Female

Family life cycle Married, Unmarried

Religion Islam, Christianity & Hinduism

PSYCHOGRAPHICS:

Social class: Middle class, upper class

Lifestyle: Actualizes, fulfilled, Believers, Achievers


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FOUR Ps OF MARKETING:

PRODUCT:

Our product would be available in following flavors

Coconut water with coffee.

Coconut water with splash.

Coconut water

PRICIING:

To compete in marketing and earn sound revenue we are using differentiate pricing strategy

Product A price (coconut water) 25

Product AA Price (coconut water with splash) 30

ProductA+ (coconut water with coffe) 35

According to our above pricing plan we have decided to offer the product NARIYAL PANI to

customers at Rs. 25, while for ICED COFFEE WITH COCONUT WATER is Rs. 35, and for

COCONUT WATER WITH SPLASH is Rs.30. The price is very much competitive and off er is

feasible enough to catch a large percentage of market shares.

PRICING STRATEGY:

The core strategy SPRIZO will follow for promotion will be price promotion strategy by

keeping the profits low

Segmented pricing is used as another tool to generate maximum possible profits at the

introduction stage.


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.

PROMOTION:

Core Sources of Promotions:

Electronic Media

Print Media

Cable Network

Billboards

Social media.

And Sunday campaign on sports ground of Karachi.

(We are providing our maximum potential to Sunday campaign to the maximum number

of sports ground in Karachi. Because that s the area where we have a target market and

they are at the stage where we could avail the opportunity to provide our product and make

a good positioning of our product in the customer mind. And the outcome of sales we are

expecting on the ground of facts and figures would be much, much higher.)

PLACEMENT:

Currently the main target of NARIYAL PANI & its FLAVOURED PRODUCTS is KARACHI. To

assure the availability of these products, SPRIZO Pvt. Ltd. Co. has established the effectivedealer network .


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PLACE:MARKETING CHANNELS/DISTRIBUTION MIX:

Our major distribution channel include

Chase up at Gulshan,

Chase up at Nazimabad

Chase up at Defense

Naheed super store at Shaheed -e-millat

Furthermore our company one go downs at Tariq road to meet the inv entory requirements as soonas possible.


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BREAK EVEN ANALYSIS:

filtration plant 2= (10,000,000*2) = 20,000,000

stirelization plant 2 = 8,000,000*2= 16,000,000

packaging and labeling plant 2= 16,000,000

Factory size 3500 feet height 16 yearly rent= 6,000,000

Sum of Salaries of employess = 7,200,000

Other supplies = 5,000,000

Total fixed cost 70,200,000

Electronic media cost 7,150,000

Print media cost 99,000

Billboards costs 930,000

Total cost 78,379,000

Average Variable cost per unit 11

BREAK EVEN SALES POINT:

Revenue = 25+30+35/3=30*Q

Cost=78,379,000+11*Q

Revenue = fixed cost + variable cost

30Q=78,379,000+11Q

Q= 4,125,210 units must be sold each year to reach to break even point.

CONCLUSION:


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The good thing about SPRIZO is that, we are familiar with our actual target market. Sales promotion activities will be effectively carried out. Important thing about SPRIZO is that we will place our products at customer s doorstep.

RECOMMENDATION:

We aim at improving our sales by upgrading our workforce through training sessions and

investing more on R&D department. After crossing the breakeven phase we will generate

considerable profits and hence will overcome the weakness of low sales. We also plan to carryout

backward integration in future.

sprizo pvt. limited

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