Instant Drinks Industry of Pakistan

Instant Drinks Industry of Pakistan

Sajed Imtiaz

All rights reserved. Copyright

Title: Instant Drinks Industry of Pakistan

Author: Sajed Imtiaz

Edition: 2013

Price:

Publisher:

Dedication

This study is dedicated to ICMAP, PSQRA, SMEDA, JS Bank, BOI and Rawalpindi Chamber of Commerce and Industry.

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Contents

Executive Summary

Tang Orange & Pinapple

Kwik Kool

National Fruitily Lemon

Sun Sip Limopani

Fresh Orange & Mango

Piyo Orange & Mango

Fruity Mango & Peach

Refresh Orange

Findings

Catch-23 Situation

Business Opportunities

Brand Media Clout

Discussion Questions

Advertising Agencies

Author

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Executive Summary

Instant drinks are in Pakistan since last decade of last century. These are widely used in households and offices. People especially parents and physicians prefer instant drinks without artificial preservatives over carbonated drinks.

Instant drinks industry provides jobs to people and taxes to Federal Board of Revenue. Sales of these brands in summer is around six hundred million rupees.

This study is beneficial for manufacturers, consumers, government and marketing agents. With integrated marketing and product development, instant drinks can be used in all seasons. Formation of much-needed Instant Drinks Manufacturers Association of Pakistan would help in research and sustainable market expansion.

This study must be published in booklet form by SMEDA, Board of Investment or Rawalpindi Chamber of Commerce and Industry. Hopefully conscientious consumers would enjoy this study.

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Tang Orange & Tang Pineapple & Tang Lemon

These are being manufactured and marketed by Kraft Foods Pakistan. Factory is situated at Lasbella in Baluchistan whereas corporate office is at Karachi. These are available in sachets of 60 gram and 20 gram besides glass bottle. Price of 20 gram orange and pineapple flavor Tang sachet is Rs.7 inclusive of taxes throughout the country. Youth and women like Tang flavors for their taste, vitamin-C, vitamin-A and advertising. People living in cantonments like Tang Lemon Pepper.

It is available in all shopping chains like Metro Mall in major cities of Pakistan. In major cities, mothers give Tang sachets to school going children whereas offices serve Tang pineapple to visitors and customers.

Packing is elegant but without Pakistan Standard Mark. TV Commercials are adoption from international markets. Tang is the trademark of Kraft Foods Holdings of USA. It must carry Halal sign by Islamic Food Association of America. Cost of production is higher because factory is situated in Baluchistan. Retilers prefer to display Tang sachets over others.

Survey suggests that Tang is alpha-leader in instant drinks industry of Pakistan.

Contact: [email protected]

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mailto:[email protected]

Kwik Kool

It was manufactured and marketed by Warrick Pharmaceuticals. Factory and corporate offices were situated in Islamabad. It was available in sachet. Youth and women liked Kwik Kool for its taste, vitamin-C and new name. It was available in major cities of Pakistan.

In 2002, Thoughts Advertising launched this brand. Packing was elegant but it is no more in market.

Sun Sip Limopani

It is being manufactured and marketed by King’s Food (Pvt.) Ltd. Factory and corporate are situated at Karachi. It is available in sachet of 25 gram. Price of Limopani sachet is Rs.7 inclusive of taxes throughout the country. Youth and women like Limopani for its taste, vitamin-C and advertising.

It is available in all shopping chains like Metro Mall in major cities of Pakistan. Packing is elegant but without Pakistan Standard Mark. TV Commercials are locally developed. Limopani is the trademark of King’s Food (Pvt.) Ltd.

Survey suggests that Sun Sip Limopani is super-leader in instant drinks industry of Pakistan.


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Fresh Mango & Fresh Orange

These are being manufactured and marketed by Taste Makers. Factory and corporate offices are situated in Lahore. These are available in sachet of 20 gram. Price of 20 gram Fresh Mango and Fresh Orange sachet is Rs.8 inclusive of taxes throughout the country. Youth and women like Fresh flavors for their taste, vitamin-C and packing design. These are available in major cities of Pakistan including Peshawar.

These brands carry Pakistan Standard Mark and Halal mark. These were launched in 2013 by Darbawala Industries of Lahore.

Survey suggests that Fresh is quality brand in instant drinks industry of Pakistan. It has positioned itself with Tang and is focusing urban customers.

Refresh Orange

It is being manufactured and marketed by Six-B Food Industries. Factory and corporate offices are situated in Lahore. It is available in sachet of 16 gram. Price of 16 gram Refresh Orange sachet is Rs.5 inclusive of taxes throughout the country. Youth and women like Refresh for its taste, vitamin-C and packing design.

It is available in major cities of Pakistan including Peshawar. The sachet carries Halal mark. It was launched in 2013.

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Survey suggests that Refresh is quality brand in instant drinks industry of Pakistan. It has positioned itself with Piyo Oranage and is focusing urban customers.


National Fruitily

It is being manufactured and marketed by National Foods Ltd. Factory and corporate are situated at Karachi. It is available in sachet of 15 gram. Price of Frutily sachet is Rs.7 inclusive of taxes throughout the country. Women and children like Fruitily for its taste, vitamin-C, calcium, magnesium, potassium and advertising.

It is available in all shopping chains like CSD Shopping Mall in major cities of Pakistan. Packing is elegant but without Pakistan Standard Mark. TV Commercials are locally developed. It has positioned itself with Tang.

Survey suggests that National Frutily is also super-leader in instant drinks industry of Pakistan.


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Piyo Orange & Piyo Mango

These are being manufactured and marketed by Salman Food Products. Factory and corporate offices are situated in Multan. These are available in sachet of 20 gram. Price of 20 gram Piyo Orange and Piyo Mango sachet is Rs.5 inclusive of taxes throughout the country. Children and women like Piyo flavors for their taste, vitamin-C, vitamin-B, calcium and low price. These are available in major cities of Pakistan like Lahore and Peshawar.

Brands carry Halal mark but do not carry Pakistan Standard Mark. These were launched in 2013. Distributors and retailers also prefer them for low price and rich ingredients.

Our survey suggests that Piyo Orange and Piyo Mango are super leaders in instant drinks industry of Pakistan. With planned effort these can capture 50% urban market share.


Fruity Mango & Fruity Peach

These are being manufactured and marketed by Six-B Industries. Factory and corporate offices are situated in Lahore. These are available in sachet of 9 gram. Price of 9 gram Fruity Mango and Fruity Peach sachet is Rs.9 inclusive of taxes throughout the country. Women like Fruity flavors for their taste, vitamins and packing design. These are

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available in major cities of Pakistan including Lahore and Peshawar.

These brands also do not carry Pakistan Standard Mark and Halal mark. These were launched in 2013.

Our survey suggests that Fruity Peach is an emerging brand in instant drinks industry of Pakistan.

Findings

Instant drink brands are getting popularity every passing year. There is need of Instant Drinks Manufacturers Association of Pakistan. Instant drinks can be exported to neighboring countries like Afghanistan and China.

Tang’s brand awareness level is 100% in the country because it is oldest and uses integrated marketing plan.

Only Fresh instant drinks carry Pakistan Standard Mark. It must either low price or give discount to retailers to remain competitive in coming years.

Piyo Orange and Piyo Mango are lowest cost but rich in ingredients. With integrated marketing, these can be leading brands of industry and country.

Instant Drinks industry is very small in size with 7 key players. There is no instant drink manufacturer in Khyber Pakhtunkhwa, FATA and Azad Kashmir.

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Pakistan Standards and Quality Regulatory Authority (PSQRA) must ensure Pakistan Standard Mark on every sachet of instant drink brands.

All instant drinks use same packing materials and technology. Kwik Kool is no more in market.

For consumerism it is very difficult to distinguish among orange flavors of different brands. Instant drinks manufacturers must enrich their orange flavors.

Catch-23 Situation

Physicians and consumerism demand quality health drinks for young generation. Half liter instant drink orange flavor per day is not harmful for health of youth. Instant drinks will grab market of carbonated water like Coca-Cola and Pepsi in Pakistan if they use integrated marketing. Marketing is all about better living standard for society and globe.

Rural population still prefers Lassi, Satto and Sugarcane. New and existing instant drink manufacturers can introduce these flavors.

Integrated Marketing Approach

Instant drink brands must hire professional services of advertising agencies for at least 5 to 10 years. They must stick

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with their strategic marketing plans. Advertising agencies can produce branded TV program, quiz program, prize scheme or recommend brand ambassador to create cutting edge for the instant drink brands.

Business Opportunities

Total sale of instant drink brands is around Rs.600 million in summer months. Total sales can be increased to Rs.3 billion with integrated marketing approach in one year.

SMEDA, SME Bank and JS Bank must offer loans to businessmen to establish factories in Khyber Pakhtunkhwa and Azad Kashmir. Cost of production is lower in industrial estates in FATA and Khyber Pakhtunkhwa.

Three or four new factories would offer over 250 jobs and Rs.80 million sales tax to people and government respectively besides serving consumers.

Furthermore, FPCCI and Rawalpindi Chamber of Commerce and Industry must help forming Instant Drinks Manufacturers Association of Pakistan (IDMAP). Instant drinks can capture market of carbonated drinks like Coca-Cola and Pepsi. They would be able to export their products.

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Brand Media Clout

TV Radio

Paper

Vehicle

Outdoor

Online

Clout

TangOrange

Yes

Yes Yes Yes Yes Yes 100%

FreshMangoPiyo OrangeFruity PeachSun Sip Limopani

Yes


National Fruity

Yes


Brand Geographic Clout

Tang Fresh Mango

Piyo Orange

Sun Sip Limopani

Fruity Peach

National Fruitly

Azad Kashmir

Yes Yes Yes Yes Yes Yes

Faisalabad Yes Yes Yes Yes YesFATA Yes Yes Yes Yes YesHyderabad Yes Yes Yes YesIslamabad Yes Yes YesKarachi Yes Yes YesLahore Yes Yes Yes Yes Yes Multan Yes Yes Yes Yes YesPeshawar Yes Yes Yes Yes Yes Yes

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Quetta Yes Yes YesBrand Consumer Clout

Urban Women

Urban Men

Urban Youth

Rural Women

Rural Youth

Tang Pineapple

100% 100% 100% 50% 50%

Fresh Mango

50% 50%

Piyo Orange

100% 100%

Fruity Peach

50% 50%

Sun Sip Limopani

100% 100% 100% 70% 70%

National Frutily

100% 90% 90% 70% 50%

Brand Seasonal Sales

Retail Price Sales (Rs.)

Tang Pineapple Rs.7

National Frutily Rs.7

Fresh Mango Rs.8

Piyo Orange Rs.5

Fruity Peach Rs.9

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Sun Sip Limopani Rs.7Discussion Questions

Q-1: What marketing strategy must be adopted by Fresh Mango instant drink to retain 50% rural market share in 2014?

Q-2: What marketing strategy must be adopted by Piyo Orange instant drink to capture 50% urban market share in 2014?

Q-3: Will Instant Drinks Manufacturers Association of Pakistan (IDMAP) help expanding the industry and exports?

Q-4: Is there need of new instant drinks manufacturing concerns in Pakistan?

Q-5: Is FATA a suitable place for new instant drink manufacturing concerns?

Q-6: Why is PSQRA ineffective in implementing Pakistan Standard mark on packaging?

Q-7: Can advertising firms help attaining sales and marketing objectives for Fresh Orange?

Q-8: Should Sajed Imtiaz be made honorary member of IDMAP?

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Public Opinion

It is an authentic piece of work in business and provides insight in dynamics of instant drinks industry of Pakistan. Brand geographic clout is useful for every brand managers. I personally like Catch-23 concept. (Umer Hayat Faisal – MBA)

It is an original work in business economics. No doubt, Instant Drinks Manufacturers Association of Pakistan would help expand the industry and market. Sajed Imtiaz must be rewarded for pinpointing business opportunities for people of Pakistan. Any one can cinch these opportunities. (Hameed Qaiser – Editor Monthly Tadeeb)

It is a well composed work providing authentic information about instant drinks’ prices and their promotional approaches. The actual role of advertising agencies is well defined. This thought-provoking case study must be taught in business schools of Pakistan. (Sobish Imtiaz – IT Professional)

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Advertising Agencies

Top management and brand managers of instant drinks can contact the following professional advertising agencies of Pakistan.

Adetude Adgroup Argus Channel 7 Evernew Concepts Fasttrack Ideas Workshop Interflow Lowe and Rauf Manhatten Leo Burnett Maxim MCOM Message Orient Advertising Red Communication Arts Synergy Thoughts VAMS Vibrant

About the Author

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Sajed Imtiaz did graduation in Psychology and Economics in 1991. Besides serving in leading ad agencies in Islamabad and Peshawar, he has served in College of Army Education in Jhika Gali, Murree. Sajed Imtiaz has completed several reports. His work “Cyber Crimes – 25 Factual Cases” is truly worth reading. Currently he is editor-in-chief of Daily 10 Minutes, 1st e-paper with balance sheet. He lives in Islamabad.


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