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Marketing Management Project SFA Juice

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Submitted to:
Sir Farooq Jamal

Submitted by:
Muhammad Usman Ghulam Awais Ateeq-ur-rehman Zeeshan Iqbal Abu Zar Khan 10-NTU-5060 10-NTU-5022 10-NTU-5017 10-NTU-5067 10-NTU-5007

National Textile University Faisal Abad

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Acknowledgements

First of all we would like to thank Allah by His grace we were able to complete this project. We would also like to thank our instructor MR. FAROOQ JAMAL who guided us throughout the project and without whom help it was difficult for us to carry along with the project. We are grateful to our institution to make us do such an exigent task which has a practical significance and all the people who facilitated our work and helped us in accomplishing this task. It is always impossible to personally thank everyone who has facilitated successful completion of a project. To those of you who we did not specifically name, we also give our thanks for moving us towards our goal. And last but not the least we would like to thank each other for working with this much understanding and collaboration. Thank you all!

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Market Analysis:
The fruit juice industry coupled with beverage industry is considered to be one of the largest industrial sectors in Pakistan. It is expected to growing at a robust rate of 2025%. Modernization of this industry, in consonance with the change in urban life style, Massive shift of rural population to the urban areas, growth in population, etc., predict a growing potential for instant solutions in fruit juice segment of the beverage industry. Traditionally in Pakistan and generally all over the world people prefer to use natural drinks rather then carbonated soft drinks and this perception is gaining more currency day by day which also adds to the advantage of the fruit juice industry.

According to our information about the market, there is substantial gap is exist between the supply and overall demand of tetra packed and fresh fruit juices. As the size of the market is increasing by the rate of 27 %, while production capacity of existing fruit juice manufacturers is increasing by the rate 20 %. Tetra packs are available at an average price of Rs. 20 per 250ml, however it cannot be considered as pure, fresh juice for it has been pasteurized and treated for long life. Additionally, tetra pack juice has additives and preservatives, which reduces its nutritional value. Health conscious people and mothers for their children because of pure content and better nutritional value prefer fruit juices.
http://www.scribd.com/doc/8440586/Marketing-Report-on-Fruit-Juices-Murree-Brewery

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Company profile

Mission Statement
To provide Prime Pure Fruit & Vegetable Products round the year for our valued customer

Vision Statement
To be more than successful, more than committed to be the best in the industry in creating innovative products. SFA is one of the leading fruit & vegetable processing unit in South West region of Punjab Pakistan. It is a multidimensional company with diversified scope of producing a long list of fruit and vegetable products that include Aseptic and Chemically preserved fruit pulp/ purees & concentrates of various Fruits like Mango, Guava, Peach, tomato etc., in Aseptic bag and OTS Cans. In addition SFA has introduced high quality Fruit Juice Drinks & Nectars, filled hot in PET, for local and export markets with the brand name of . SFA Fruit Juice Drinks & Nectars gathered highest marks in sensory evaluation conducted by different organizations. Our mission is production and distribution of high quality products according to international standards that fit the customer demands in Pakistan and rest of the world. Our vision is, more than successful, more than committed to be the best in the industry in creating innovative products.

The company follows the philosophy of "delighting the customers". The company treats them as partners and keep channel of communication open with them. The company believes in creating and sustaining an environment, which encourages learning and empowerment and these in turn help strengthen the quality culture across the business. Enhancing our reputation for quality in all our operations. Promoting mutual trust with customers, suppliers, employees and shareholders. Providing a healthy and safe environment to our community.

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Sfas Product line:

Fruit Pulp / Puree:

Aseptic Mango Pulp (Available in 200 kg Aseptic Bag in Steel Drum, 10 kg, 5 kg & 1 kg Aseptic Bags) Canned Mango Pulp - Natural & Sweetened (Available in 850g & 3.1 kg OTS Cans) Chemically Preserved Mango Pulp (Available in 200 kg P.E Bag in Steel Drum) Aseptic Guava Pulp (Coming Soon) Canned Guava Pulp - Natural & Sweetened (Coming Soon)

Fruit Drink & Nectars:

Mango Juice Drink Mango Nectar Guava Juice Drink Guava Nectar Orange Juice (from concentrate) Peach Juice Mixed Fruit Juice

Fresh Fruits:

Citrus (Kinnow) Sorting, Grading, Waxing & Packing Facility

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Competitor Research:

NESTLE:

Pakistans large cold beverage market (approximately 2 million tons) offers a huge opportunity for Nestl. Though the market is dominated by colas, strong growth has been witnessed within the juices, nectars and still drinks (JNSD) category, which can be divided into two segments. The still drinks/belly washers segment is large but fragmented. Over the years it has commoditized resulting in low brand equity, high dependence on trade push, huge trade margins and low profitability. On the other hand the juices and nectars segment is fast growing and offers immense potential to increase share of throat. It is brand driven and offers premium pricing and high profitability. In the year 2000, Nestl faced a fundamental business issue: most of its beverage portfolio comprised of still drinks/belly washers. This had resulted in eroding profitability and increased trade dependence. NESTL 100% Pure Orange Juice was performing well but had limited marketing support. At that point a strategic decision was taken to increase focus on the premium juices and nectars and slowly phase out belly washers from the portfolio. In line with this increased focus, the taste of NESTL Orange Juice was tuned to the local palette through use of local fruit (Kino- hybrid of Orange) resulting in greater consumer acceptance.

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Encouraged by the strong consumer response to NESTL Orange Juice the category of Nestl Juices was expanded with the introduction of Mango and Mango-Orange in 2000, followed by Apple Nectar in 2002, Pineapple Nectar in 2003, Red Grapes Nectar in 2005, Chaunsa Nectar in 2007 and finally Guava Nectar in 2008. Its manufacturing facilities are located in Sheikhupura, Kabirwala, Islamabad and Karachi, Pakistan.

In the last few years NESTL Juices have experienced strong growth, and the business has now reached over 2.0 billion rupees in sales. Moreover, NESTL is the market leader with over 60% share of the juices and nectars segment despite the entry of various local and foreign competitors.

Nestle, the world's largest food company Nestl is a well known name Consumers trust its quality Its a multi-national company Financially strong

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SHEZAN:

The company was incorporated in 1964 as a Private Limited Company, with the main objective to set up an industrial undertaking for manufacturing of juices, squashes, sherbets, jams, pickles and preserves from fruits and vegetables. Shezan International Limited was conceived as a joint venture by the Shahnawaz Group of Pakistan and Alliance Industrial Development Corporation of U.S.A. The agricultural background of the Pakistani sponsors induced them to establish this agro-based industry. Taking advantage of abundance of fruits available in Pakistan and the advanced technology provided by the American partners, Shezan became a pioneer in the field of converting fruits into pulps, concentrates and juices. Today Shezan is the largest food processing unit having developed and installed the capacity to meet the country's local as well as export needs. In 1971, Shahnawaz group purchased all the shares of Alliance Industrial Development Corporation. The company has since shown sustained growth in both domestic and export fields. In 1980-1981 a separate unit was installed in Karachi which now caters for Karachi, Sind and export demand. A new bottle filling plant was set in 1983 in the Lahore unit, increasing the capacity five fold. An independent Tetra Brik plant was commissioned in 1987 making the unit leading manufacturers with the comprehensive range of production in the fruit processing field in Pakistan. In the
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Juice year 1990 it was decided to install a juice factory at the Hattar industrial estate in North West Frontier Province of Pakistan. In order to take advantage of the government incentive new wholly owned subsidiary of Shezan International Limited was incorporated as Hattar Fruit Products Limited which was later merged into the parent company. Complete bottling plant locally manufactured along with four lines of Tetra Pak were installed, three are filling 250 ml juices and one line is for 1000 ml packs. They introduce their juices in the flavor of Mango, Apple, and Mix fruit, Twist, which capture the market maximum due to their low prices.

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FRESHER:

The parent company of Fresher is Al-Hilal industries. Al-Hilal was established in1960 and they launched their first production in 1962 that was Sultan Banaspati cooking oil and after about 40 years they have now shifted in production of juices. The main policy of Al-Hilal industries is PULL policy rather than PUSH policy that is they want to place their product on shelves first, theywant maximum placement and then advertise their product. They have placement is Lahore, Karachi, Islamabad, Faisalabad and Multan. They want focus branding as their main focus is on group A people. Al-Hilal doesn't compromise on quality as per its name Hilal means pure and in near future they are planning to launch water called Blue, rapsel oil and carbonated fruit drinks called kooler. Introduction: Fresher is a new product launched by Al -Hilal industries. Other industries like AL-HILAL FOUNDRY & WORKSHOP (PVT) LTD. AL-HILAL VEGETABLE GHEE MILLS (PVT) LTD

Fresher is available in Mango, Guava, Orange, Falsa, Peach & strawberry flavors. Kooler & Boomer (Soft drinks) are also our products.

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Reasons for Failure of SFA Juice:

After conducting the whole research, we have able to point out the areas of weakness in the marketing efforts of SFA. Because of these gaps SFA has not shown those results which were expected at the time. Its launch the whole advertising campaign carried out in the beginning period only in the first 4 months. After that the sale is drastically fell down, which forces the company to cut down its expenditures on advertising and promotion. On the basis of our inquiry we are able to point out the key failure elements which are listed below:

The foremost important attribute where SFA behind in the taste. The taste is not good due to excess quantity of citrus and acetic acid in the juice.
Secondly, SFA has failed to target all the age groups. The juice has stimulated the demand the age group 7-14 youth and elderly people are not forgotten. Youth and elderly people are not targeted. Young people from 20-34 have the highest purchasing power.

SFA has failed to persuade the health conscious people. Who mostly belongs to their target market, due to which they switch to another brand.

Another area of weakness is pricing strategy used for SFA. Its price is higher then other brands in the market. One time SFA is following Market Penetration and at the same time the prices is kept higher then other brands, which does not allow SFA to penetrate in the market.

Regarding packaging, the wrappers and design used by SFA is not so much attractive, due to which SFA is unable to attract customers.

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The labeling does not include much information about the juice.

Another major reason of failure of SFA is that, since its launch, the company has not been able to increase the depth of the product i.e. flavor, sizes and verities.

SFA did not conduct any free sampling at the time of its launch.

There is no incentives and discount to its retailers and end users.

SFA has never tried to adopt the strategy of seasonal price cut, which may increase the sale of the product.

The other major reason of failure is that SFA is not providing deep freezers to big retailers outlets and departmental stores.

Not been able to target remote areas, small towns.

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MARKET SEGMENTATION AND TARGET MARKET:

We are dealing in a homogenous market where there is large number of substitutes and SFA has close competition with many other Fruit Juices but Nestle is the biggest competitor who has more than 60% of market share. The most potential target market for SFA are the Persons of age between 12 to 20 who are growing and their parents want them to be physically and mentally healthy. Our main focus is on socio-economic class A and B both as they have the pocket as well as the education, to buy the juice. Being educated the parents will want their children to drink SFA as the as they will be aware of the proteins and the vitamins present in the SFA and also by having the money to pay for it they will be encouraged even more to buy it. We are catering to both the male and the female gender of the population and the juice is mainly being distributed in the large cities of the country as the brand is being launched again so it will take time to reach the rural areas and small villages. Not only that as mentioned earlier because the socio economic class A and B are being targeted the urban areas are the places where there will be abundance of the targeted economic class who will be able to afford the juice. If we take the usage rate into account this target market again has the most potential for juice as they offer juice with all types of packing which includes packages from 250ml to 1000ml that allows the user to buy the pack which he requires. In short it is using product oriented as well as customer oriented approaches so that it can effectively as well as efficiently cater with its target market and serve them in better way. This will provide SFA with a great opportunity to flourish and expand because adopting these two kinds of approaches is rare and when taken prove to be quite effective. By being product oriented it will give the impression of being a product with a high value, as that is the impression the consumers will get, where as if it is customer oriented it will be flexible enough to adapt itself in order to meet the needs of the
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Juice consumers whenever required. By doing this SFA will prove itself as having high value and low price. These are tactics of segmentation and targeting of SFA.

PRODUCT LIFE CYCLE :

Type: Brand Re-launch Objective: Establish market position and Extend target market. Product strategy: Identified weakness (Packaging, taste) Advertising objectives: Provide information on product benefits and features Market Objective: The following are the market objectives of SFA juice.

Increase consumer awareness of SFA juice to 25% over the planning period. To achieve sales of 20 million RS by December 2011. To attain 15% market share and come close to the competing brands. To reposition the product in the consumers mind as a pure fresh juice.

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Marketing mix:
Product:

High quality and convenience product. Packaging. Packaging or bottle is reusable. Safer packaging in 1 Lt. bottle

Price:

Price is less than competitor. Using market penetration.

Promotion:

To enhance awareness. To use both print and BTL media.

Place:

Metropolitan cities of Pakistan, Lahore, Karachi, Islamabad, Faisalabad, etc. We give incentives to retailers

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PRODUCT STRATEGIES:
The product strategy we are following is Product line strategy. In this further we are using product improvement strategy. We are improving product through:

Taste: Added enriched vitamins and Zinc with iron for supplementing healthy

growth, enriched with zinc, vitamins, and essential fatty acids and, above all, iron, with content 25 times higher than conventional juice. This is a decisive advantage when you know that 70% of children have an iron deficiency. With half a litter of SFA every day, children will get 65% of the iron and 80% of the calcium they need.

Everyone has their own ideas about replacing essential body fluids, vitamins and minerals - whether it's after exercise or just a tiring day at the office. Fruit juice is still one of the best ways to refresh the body's essential nutrients and it's a natural source of energy. Common People especially young generation is inclined to have ready to consume drinks; in addition hotels, hospitals are also expanding day by day where juices could be marketed successfully. Give values to the customers to delighting them. Do whatever it takes not to satisfy the customers but retain the customers. In order to accomplish this objective, the company has established sales, marketing and support teams. Bottles Flip top packs:

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DISTRIBUTION

The distribution network includes the distributor then the wholesaler and in the end the retailer. Again benefits are provided on the achievement of the sales targets and timely delivery of products. In some cases products are provided to big retailers by the distributor itself but mostly it is being purchased by the retailer from the wholesaler.

The Channel of Distribution:

Market Local seller Whole seller Fair Price Shops

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Distribution Strategy:

Through the heavy advertisement the distribution can be affected because the distribution mainly depends upon the demand. In the SFA they are using the above channel for distribution the product.

Some of people who wants to purchases very heavy amount of the SFA juice, they come to the company directly and buy which is required. The whole seller is purchasing them for the resale able purpose but less than the first once. Distributing in major cities such as: Lahore Karachi Islamabad Faisalabad Multan, etc.

Distribution Areas:

PRICING STRATEGY :
Pricing Objectives: 1. Gain market position (Acceptance by the consumers) 2. Influence competition

We are using price penetration because if we analyze the fresh juice competitors like Nestle and Fresher their prices are higher. We are maintaining the same price by offering more added features, which give us a competitive edge. Added features include more added values as well as flip top cap.

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Price Schedule
SFA Juice 1000 ml 500 ml 250 ml Price Rs. 110/Rs. 45/Rs. 30/-

Promotion, Advertising, Sales Promotion Strategies Promotional mix Strategies:

Promotional mix strategy revolves around the following areas:

Advertising Sales promotion Personal selling Direct marketing Public relation

Push V/s Pull Strategies:

Both strategies will be followed.

Buyer behavior and readiness

As this is a re launch campaign so there is a need to make a come back policy to strengthen the brand and this can only be done through promotion mix to make an image in the minds of the people.

Selective Media V/s Mass Media:

We will use mass media due to our large target audience.

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Advertising strategy:
During winter season, as the juice production declines because of low supply of raw material, the supply decreases, which increase the demand for, packaged juice, it is recommended that the management should emphasize on Pull strategy as SFA now may be used as an alternative product. Advertisements, billboards, print media, and BTL media will be used.

Sales promotion strategy:

During Summer season, push strategy is recommended by giving incentives to the consumers because the juice supply is good and the competition is intense. Advertising tools:

Billboards. Newspaper advertising BTL media Flag banners at shopping mall

Personal selling tools: Emotions: Sales force will exploit the emotions of parents and persuade them to select SFA as pure and fresh juice for their kids.

Direct marketing tools:

It is strongly recommended that SFA Pvt. Industries must have effective web presence in this interactive world .To promote the entire site, an online marketing program must be launched. A comprehensive, highly targeted group of destination web sites must be chosen for the program. The web site should be registered with yahoo search portal. And a number of tactical elements will help drive online awareness and inquiries into the program including:

Online newsletters Search engine registration Web site links Content marketing and licensing Opt-in email Specialized promotions and partnerships
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Public Relations tools:

A public relations campaign must be undertaken. This robust program includes: Media tours

Monthly press releases Media briefs By-lined articles and supplements Speaker placements

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SWOT Analysis:
Strength:

International packaging Affordable and reasonable price Have its own packaging plant Pure and Natural Products

Weaknesses:

Heavy capital will be required for promotion Consumers are brand loyal toward competitors product. Weak Distribution Less Public Awareness

Opportunities:

Increase usage May added new verities(Flavors) Increasing advertisement, may increasing Sale

Threats:

High Taxes High packaging cost Seasonal Sale

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