Marketing Assignment

Ganna-Rass
Anmol Gupta 57, MBA sec-2
S.NO. CONTENTS

I Introduction and Industry Overview

II
Product

III
Competitors

IV
USP

V
Manufacturing Process

VI
Target Market

VII
Pricing

VIII
Distribution

IX
Promotion

X
Conclusion

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INTRODUCTION & INDUSTRY OVERVIEW
There has been increasing demand for fruit based beverages as now days people are
becoming more health conscious and hence the demand is increasing .
Sugarcane juices can be one such drink which can be available for consumers in
tetra pack. Sugarcane is widely used in variety of products such as making jaggrey,
mint, ginger and khandsari. India is among top five producers of Sugarcane.
Sugarcane itself has lot of medicinal , preventive and curative properties.

In this era of modernization the cold drinks have become common in the market.
However we have forgotten refreshing juices we had traditionally. One of the
important refreshing drinks in India is sugarcane juice. Even in the area where
sugarcane is not grown it is available by local transportation of the sugarcane.
However with time, demand for sugarcane juice is reducing due to hygienic concerns.
So if we address the hygienic concern of the people the demand might increase.

Importance of healthy sugarcane juice is very much felt in comparison to adverse

effects cola type carbonated beverages. This naturally creates the potential for
production and marketing of sugarcane juice if it is produced hygienically and bottled
or canned.

Sugarcane juice is a refreshing natural energy drink. The Juice extracted from cane is
an opaque liquid and its colour varies from light grey to dark green, depending on the
rind colour of the cane variety crushed. Sugarcane juice is a high-energy drink that is
natural, sweet and is a healthy alternative to refined sugar added drinks.

Recently interest towards nutraceuticals with the help of latest analytical techniques
which lead to identification of health promoting substances and substances with
medicinal properties such as antioxidants, polyphenols, pigments and flavonoids.

Sugarcane is grown on around 2.8% of Gross Cropped Area of India. With huge
production of sugarcane ; largest number of cane farmers; largest consumer of sugar;
more than 500 sugar mills and one of the largest sugar exports, India is considered to
be a sugar giant.

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Market Scope:

Poised to grow at 25 per cent, the average juice consumption of the Indian consumer
is going to double in the next five years. The Indian market for fruit juices is replete
with small vendors and smaller unorganized stores.

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 PRODUCT

The product that I as a Marketing Head would be introducing or launching is Packed

Sugar Cane Drink. As already mentioned above India is abundant with sugar cane
production. So Collecting Raw material wont be such a problem.

This Healthy Drink will be a mix of Sugar cane juice , lemon and ginger. The product
will be enjoying a monopoly in the market as there is no existing sugarcane juice in
the form of disposable bottle in the market but if we see as overall market than there
is no monopoly for this juice because this juice is been sold on the roadsides by
crushing the sugar cans with machines in the glass.

It contains about 15 per cent natural sugar and is rich in organic salts and vitamins.
Fresh sugar cane juice has no preservatives, however its tendency to turn brown from
oxidation soon after pressing is very high, so to secure from oxidation we should pack
in air tight disposable tetra packaging.

Vision : Our plan is to achieve its mission; Gannaras will be a healthy fruit based
energy drink which we intends to manufacture and distribute using highly advanced,
socially and environmentally friendly techniques. The company will invest in
continuous innovation to improve both the product and processes.
“We realize the importance of management processes and systems and had to ensure
we adapt it the environment we operate in,”

Name of the Product: Gannarass

Tagline: “Drink Safe , Stay Healthy. “

Benefits Of Sugarcane Juice :

 Natural thirst quencher 

 Instant rejuvenation
 Innocuous to health
 Prevents cold n flu
 Helps in cure of jaundice
 Helps in cure of eye disorders
 Prevents cancer

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Attributes:

 Hygienically extracted.
 Rich in salts.
 Contains 15% natural sugar. 
 Low glycemic index.
 No artificial sweetener .
 Rich in carbohydrates, vitamins and roughage.
 Juice with medicinal properties.

Problem of the launch:

The preservation of raw sugarcane juice is very difficult because it turns brown soon
after extraction and gets spoiled due to fermentation within hours. So we have some
methods and techniques to increase its shelf life so it is available throughout the year.

It has been reported that  preservation of sugarcane juice by pasteurization of the juice
at 70 degree C for 10 min and adding citric acid ( 40mg/100ml), ascorbic
acid(40mg/100ml) and potassium metabisulphite (150 ppm).The sugarcane juice
beverage having citric acid and potassium metabisulphite showed minimum changes
in sensory qualities during storage.

Most of the methods involved blanching of stems, juice extraction, pasteurization

followed by addition of ascorbic and / or citric acid and preservatives such as
potassium meta bisulphite, sulphur dioxide, etc. The juice will be added with ginger
or lemon to improve the taste. The juice thus prepared would be packed in sterilized
tetra packs , could be used as an acceptable beverage with a shelf life of about 12
months under room temperature or at refrigerated condition.

A technology developed at TNAU for preserving the sugarcane juice in tetra packs
can preserve the juice for a period up to twelve months. The process involves peeling,
crushing, filtration, pasteurization and bottling. Sodium Benzoate @ 125 ppm is
added as preservative. The packed juice can be stored without any loss in the quality
and flavor for twelve months at room temperature. The cost involved for the
production of one tetra pack (200 ml) of juice is Rs.1.50. The investment for the
machine is Rs. 2 lakhs and cost of operation per bottle is Rs. 1.50 for 200 ml.

COMPETITORS

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Our competitors are the roadside sellers of sugar cane juice. But the substitute
products are another big competitive force affecting our sales in the market.

Substitute competitors include Manufacturers and producers of:

 Branded and unbranded fruit juices. Eg. Real juice and small juice shops.
 Fruit based milk drinks. Eg. Amul kool, Cavins.
 Natural mineral water.
 Fruit shakes. Eg. Hershey’s

These substitute products are totally different in nature from the sugar cane juice but
still it’s a substitute because these are also cold juices.

Here we may have a lot on our plate , as we have both organized and unorganized
juice business and the toughest of them all , the carbonated drinks. So we have a big
list of competitors. But we do not have any direct competition in the sugarcane juice
market , as there are no companies providing sugarcane juice in their product mix, so
we may have a chance to grab our market share.

USP

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As we know there is no competitor in market for sugar cane packed juices except the
roadside vendors . We would be providing a Healthy drink without any contamination
and gone under a proper process of sterilization according to the prescribed standards

We will be different from roadside sellers because our juice is a purified and quality
assured product. We offer juice in a sealed tetra packing where as roadside sellers are
delivering the product in the glasses. We have quality standards and can turn
customers from the road to our product through effective marketing strategies.

Due to lack of packing roadside sellers are not easily available everywhere. Whereas
our product will be available in every general store in almost all the target cites.

It will also acts as a nutrient drink which would be beneficial for an individuals
health.

A cold refreshing taste that we crave for in hot summer .

Sugarcane is available throughout the year, so we can provide the product all year and
the consumer can buy it at his or her own convenience from stores.

With the help of new technologies and adding preservatives we can increase its shelf
life up to 12 months.

So we stand out with 4 points:

 Healthy
 Hygienic in comparison with road side vendors.
 Shelf life , Availability throughout the year and convenience, as vendors are
not available everywhere and always .
 Refreshing Taste

MANUFACTURING PROCESS

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Fresh, juicy and fully mature sugarcane, which is free from insect and fungal
attack or any other blemish, is taken for extracting the juice. The juice so
obtained is clarified and filtered to get a clear solution.

Required quantities of permitted preservatives, additives and flavours are added. The
process should be carried out under hygienic conditions. The sugarcane juice
beverage is stored in 200 ml tetra packs. The tetra packs should confirm to ISI
standards.

Typical Process Flow:

Sugarcane
Sugarcane Tetrapacking
Tetrapacking Pasteurization
Pasteurization

Cleaning
Cleaning Homogenization
Homogenization Cooling
Cooling

Soaking
Soaking Filtering
Filtering Storage
Storage

Washing
Washing Crushing
Crushing

TARGET MARKET
Demographically Segmentation:

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Age: the target or potential market would be with People of all ages ranging between
3 and above.

Income : the target or potential market would be with individuals with all income
groups . Both Working and non working individuals, Students.

Organizations: Institutions , offices , Restaurants , Schools and hotels.

Gender: All the genders are targeted whether they are men , women or trans genders .

Location: So our product would be available in both urban and rural areas of India.

Marital Status: Both married and un-married individuals fall under the consumption
of the product.

Interests: People with interest of their health and who want a refreshing taste in
summer . As it is a healthy drink and has a sweet taste to it. Best Served cold.

Psychographic Segmentation:

Habits and Behaviour :

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According to psychographic segmentation we targeted people who are,
Health conscious customers, Customers who have preference towards Nature and
natural products , Quality conscious customers ,Customers who have diverse tastes
and Seek variety in taste and preferences.
As it is beneficial and healthy for our body , people with an active orientation with
their body , who visit the Gym and are health conscious .
Only individuals who are allergic and have some kind of health issue for which they
cannot consume sugarcane are not viable to use the commodity.

Personality: People with any personality are fit for using the product. Overachievers ,
extroverts , introverts, open minded etc.

PRICING

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 Pricing can be defined as the process of determining an appropriate price for the product, or it
is an act of setting price for the product. Pricing involves a number of decisions related to
setting price of product. Pricing policies are aimed at achieving various objectives. It is
planned to set the product’s price based on value and Cost.

We have various objectives to be pursued as we are a new product launching in the

market.

 Target Market share :

This objective comes under Sales related objectives,

A company aims its pricing policies at achieving or maintaining the target market
share. Pricing decisions are taken in such a manner that enables the company to
achieve targeted market share. Market share is a specific volume of sales determined
in light of total sales in an industry. So we would be trying to cover at least 15%-
25% in coming 3 years.

 To Keep Competitors Away:

This comes under competitors related objectives,

To prevent the entry of competitors can be one of the main objectives of pricing. The phase
‘prevention is better than cure’ is equally applicable here. If competitors are kept away, no
need to fight with them. To achieve the objective, a company keeps its price as low as
possible to minimize profit attractiveness of products.

 Other Objectives:

Over and above the objectives discussed so far, there are certain objectives that company
wants to achieve by pricing.

i. Market Penetration:

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This objective concerns with entering the deep into the market to attract maximum number of
customers. This objective calls for charging the lowest possible price to win price-sensitive
buyers.

ii. Promoting a New Product:

To promote a new product successfully, the company sets low price for its products in the
initial stage to encourage for trial and repeat buying. The sound pricing can help the company
introduce a new product successfully.

Since this will be a newly launched product and sales will need to be achieved,
market penetration strategy will be used to get people’s attention and get a higher
number of sales to ensure general profit. So the price will be a little lower than the
substitute products in the industry. But higher than the roadside vendors .

We have chosen our objective to maximize market share. We believe that a higher
sales volume will lead to lower unit costs and higher long-run profit. We have set the
lower price because we assume that the market is price sensitive. Our overall
objective is to capture the maximum market share by setting lower price.

In order to reinforce the brand position as a unique healthy product, we will set the
price higher than our competitors, which are the road side vendors. However, the
price will be realistic to ensure that the brand delivers value to customers.

Fundamental health drink business is lucrative, the cost of input and production is
very low and most of the expenses are incurred in marketing and distribution. The
company therefore expects a profit margin of between 30-40%.

The company will use special pricing tactics to stimulate purchase; these strategies
should include discounts for bulk purchases.

Personal Price Discrimination:

Personal price discrimination refers to the charging of different prices from different
customers for the same product. For example, a doctor charges different fees for the
same operation from rich and poor patients.

The company will use discrimination tactics whereby prices of the brand at school
and colleges will be lower compared to prices of the brand in hospitals, sports centers,
bars and restaurants. By doing this we will be motivating increased sales in schools
and hospitals and its awareness will also increase among the consumers.

The price of the product can also influence the buying behavior of the consumers
because in India there are 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

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others can’t, so we must set the price of the product that is afforded by all the social
classes of the region. So we use penetration pricing strategy. If we look at the middle
to lower class in India all of the people are highly price conscious.

Price Structure (Consumer price)(Urban):

No Sizes Price
.
1. 250ml Rs.25
2. 500 ml Rs.42
3. 1000ml Rs.70

So as we can se above the prices are set according to the value and benefits provided
by our product.

I feel it is fairly priced and in Urban areas people will willingly pay this much for
such a healthy product as they are more inclined toward health awareness.

As of in rural areas we will wait and see the response , because they will not pay
this much , instead they will buy it from the local vendors , so we will be taking
out smaller packs at lower prices , so they don’t feel a pinch while paying for the
drink.

Price Structure (Consumer price)(Rural):

No Sizes Price
.
1. 100ml Rs.8
2. 200mil Rs.15

Now the prices have been set accordingly with analyzing our Fixed and Variable cost
and analyzing competitors cost, price and offers.

As compared to the roadside vendors , our prices are higher but with increased quality
and hygiene . But fairly priced in the organized market to gain market share rapidly.

DISTRIBUTION CHANNELS

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The place of the distribution and availability of the product also influence the buying
behavior because if the product is in reach of the consumer he will prefer it and if it is
hard to find the product in the market he will never buy that product.

In the initial stage, we will distribute the products with our sole distribution
channel. When our market will spread out, we will distribute our products through
dealers. We will set our own outlets in few core market positions. When we will go
for mass marketing, we will supply our product nationwide through dealers. Our
dealers will take the products to every district of the country. “Gannaras” will be
available in all retail stores of the country.

So we have effective distribution strategies by making distributors in every city and

provided them with number of facilities like order bookers and sales persons and a
supervisor.

And we allow our distributors to supply product to both wholesalers and retailers.
Because of this our product will be available at more shops and our sales will
increase.

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 Manufacturer Disributor WholeSaler Retailer Consumer

Our channels have to reach out to the rural areas as well so there is a link between
production and consumption . So here Intermediaries are needed because
manufactures lack the necessary financial and human resources to carry out direct
distribution.

So we will be choosing a “ Three level Channel” as you can see in the diagram
above. With the help of Distribution planning we have come up with a feasible and
viable plan for distributing our products , via. Logistics, warehousing to the end users.
We will try to streamline our distribution channels so that we achieve efficiency
and effectiveness.

As it is an FMCG product we require this level channel so there is no overlapping and

the product reaches all the targeted areas , both rural and urban areas.

In this case there will be an Information flow, in the marketing Channel. As all
parties participate in the exchange of information. Information means shipping details,
schedules and rates, from the manufacturer side regarding the quantities and timings
etc.

The main distribution channel linked is to supermarkets; this is because most of

consumer shopping today takes place in supermarkets. The product will also be

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distributed through pharmacies, drugstores, selected bars and restaurants and in sports
venues.

Finally, the company intends to establish strategic distribution centers in different

location so as to ensure all areas are adequately supplied at any given time. These
distribution centers will stock adequate quantities of the brand to ensure retailers’
orders are quickly filled. The company will contract national distribution to help
distribute the brand in other States, regions and other parts of the country.

PROMOTION

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For our product, Gannaras we will be using Pioneering advertising , as its is
concerned with ‘primary’ demand and at a introductory stage of the product . It
provides information about the specific brand and not selling a product category.

Advertising is the most important tool in the integrated marketing communication

strategy. The company will develop creative ads which will be placed on radio, TV,
magazines and in mainstream newspapers .

The company will also use outdoor advertising tools such as billboards, posters and
branded vehicles. The company will invest in point of sale displays and in-store
advertising to attract consumers’ attention in shopping malls.

Viral marketing strategies and social media tools such as Facebook, Instagram,
YouTube , will also be used. This strategy is expected to be very effective especially
with the youth who are tech savvy and enjoy creative fun advertising messages. Social
media marketing will also engage the youth in the brand’s activities and create a
strong fan base for the brand. YouTube collaboration would be useful as they are
widely established and have huge amount of viewers, so our ads could se viewed
there.

The company will use celebrity endorsement strategy whereby it will recruit one of
the leading sportsmen of the Indian Cricket team to endorse the product. This is
expected to create a positive and direct connection of youthful consumers and the
product as a result of the celebrity endorsement.

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Personal Selling, Qualified sales persons will be recruited for a short period to make
direct presentations to doctors, hospitals, pharmacies, drug stores, schools and athletic
teams, to explain to them the health aspects of the new product. The company will
also distribute pamphlets and brochures in commercial centers that contain
information about the new product.

Services and assurance, As we are targeting to the top most customer satisfaction
and building long-term customer relationships, there is no alternative for us rather
than providing top quality service. Giving the customers timely and instant quality
service is our primary concern. We even planned to open few customer service
centers where will response to customers’ interactions. We will collect information,
suggestions, ideas and opinions of the customers through these centers and will
innovate and modify our product accordingly. We also will change any defected
product.

Promotional vans would be deployed on public places which would distribute sugar
cane juice for free giving out the message of being an instant energy drink. This
campaign of free sampling would last for one months at least in order to make
people aware of the benefits and the attributes. Also all the delivery vans distributor
have will be printed by the advertisement of juice.

Promotional Activities includes the display of juice in the retail shops by paying
retailers or giving discount on the juice. And deploying stalls outside or inside the
shop so to bring in the product to the customers who came to the retail shop for
purchasing and create awareness in them for the purchase of our Sugar cane juice.

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 CONCLUSION

Till now we have not seen any packed sugarcane juice being sold in India. We would
be one of the first to enter the organized market. The loose sugarcane juice is very
unhygienic because sugarcane being sweet attract a lot of flies. So, people wont mind
paying extra bucks for hygienic sugarcane juice.

Sugarcanes are very cheap...and if you buy in bulk it would get you even cheaper. In
this manner you would have a large target market and raw material procurement
would also be easy as it is abundantly available.

The manufacturing and production of the product would not be an extensive job, but
presenting it to the market and promoting is task for us . If not done properly we wont
be able to capture our full potential target market and we would loose on our profits.

Then distributing it efficiently and streamlining our distribution channel would help
us to reach all the areas in the market .

The Company’s actual performance will be evaluated against marketing planning

objectives and specific performance standards. After evaluation, the management will
use the information acquired to redesign marketing planning activities. 

Overall measures of the organization’s performance include, cost, revenues,

profitability, market share and company image. Other control required are informal
controls that will guide individual employees’ behavior, organization culture, and
departmental expectations.

We would like our customers to be repetitive, meaning they keep coming back . Not
like they just use it once and do not use it again. Its is obvious that if they don’t like it
they wont buy it again . Would like to make loyal customers by providing best
product at best price.

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