Marketing plan

introduction

By khushee bhayani

Name of the Product: Jaul

Type of Product: Green Coconut Water

Ingredients: Pure natural green coconut water, Sugar, mineral salts, vitamins C.

Container: Stylish glass bottle

Container size: 250 ml, 500 ml, 1 Litre

Product Price: 250 ml for Rs. 12, 500 ml for Rs. 18, 1 litre for Rs. 38

Products idea: Jaul

Direct competitors:

1.  Coconut water2. Coconut powder

Indirect competitors:1. Diet pepsi 2. Diet coke3. Tang 4. Rasna5. Tropicana 6. Dabur- Real7. Branded mineral water8. Amul- butter milk

(chaas)

Competitors

The green coconut water will be very much refreshing and provide great support to the sick and health conscious people. 

Ingredients: pure natural green coconut water, sugar, vitamin C, mineral salts.

Hot climate areas: Mumbai and Delhi.

Differentiation

Customer

Competitors

Company

Context

Situation analysis

Population size: Mumbai, Delhi, Kerala and Goa

Market trend:1. Health conscious people basically the sports person

are one of our largest target market.

2. Our total population is young. This is a significant number that we have to concern about them and provide product, which is fit for them.

They prefer to drink :1. Juices like Tropicana, Real fruit juice, etc. 2. Mineral water like Bisleri, Aqua, etc.

Customers

Direct competitors:1. Coconut water 2. Coconut powder

Competitors

These companies can try to entrance our market by launching new product lines to compete us.

Yet, we have distinct competitive advantage i.e our product is still brand new.

The other companies will take sometimes to enter into the market.

Till then we can have a monopoly market condition.

The other advantage that we have is lower price.

Will sell products in reasonably lower price then other competitors do.

Contd.

To compete with the major competitors we can adopt the following measures:

1. Providing the best service to create high customer satisfaction

2. Reasonable and acceptable pricing

3. Promising and providing top quality product

4. Launching highly effective mass promotional activities

5. Continuous innovation and modification of the products

6. Creating and maintaining long term customer relationship

7. Creating “Brand Loyalty” among the target consumers

Strategies against competitors:

Strengths:1. Available input materials2. Low production cost3. Technological and marketing knowledge4. Strong distribution channel5. Easy manufacturing process6. Reasonable price

Weaknesses:1. It is easy to copy the idea by others2. Taste differ from the natural green coconut water3. Green coconut water cannot be preserved for longer

period

Company

Porters five force model

Context

It describes the ease of entry for competitors to the market and start competing, and barriers to entry which may exist in the industry.

The company named Parle Agro, which sells fruit drinks like Frooti, Appy, LMN and Saint Juice, said it is extending its Bailley packaged drinking water through the new product.

The firm said the move is in line with its vision to be present across all beverage categories.

Still Real and Tropicana dominate the market with strong brand name.

Threat of New entrants

It describes the ease with which a product or a service can be substituted or replaced, especially made cheaper.

Bottled water, soft drinks, coffee, tea, non carbonated drinks.

Other substitutes are Frooti, Slice, Maaza, LMN.

Threat of substitutes

Major industry players: (Tropicana, real fruit juice)

Juice industry dominated by big players like Tropicana and real.

Tropicana and Real juices are the main leaders of Rs150crore juice industry where Dabur’s Real owns 57% of the organized market

Rivalry

It describes the position of the seller and determine whether few or many suppliers exist.

Sugar, packaging materials and equipment.

Many sources for sugar in the open market.

There are large number of potential suppliers in the market, therefore, the prices become competitive.

Bargaining Power of suppliers

It describes the position of the buyer sand determines how much customers can impose pressure on margins and volumes.

Fast food joints, vending machines, supermarkets and mass merchandising channels.

Fast food joints are important avenue to build brand recognition and loyalty.

Bargaining power of Buyers

Market Segmentation and Targeting

Market research and Analysis Our company wants to develop and introduce a

new Product.

So, we have gathered information through in-depth interviews.

We made a survey of the market to have a clear idea about our market, our customer demand, needs and wants.

This information helps us to know about the current market and prospects of our new product.

Market Needs Jaul” wants to satisfy its customers need. Our first

consideration is to provide the best product to its customers. That’s why we offer three different sizes of bottle with different prices for its different segment of customers.

250 ml: The lowest price for the rural mid social class and individuals.

500 ml: Its target the sick people and tourist

1 litre: For a small family.

Market Segments We have observed and analyzed the market and based

on the nature of the market we segmented the market in the following sectors:

1. Geographic Segmentation: Basically those places where we get coconut water. Example: Kerala and Goa. Even those places where the climate is hot like Mumbai and Delhi.

2. Demographics: Individuals Family Sportsman Business buyer

Contd. Psychographics: Higher class Higher mid class Middle class

Behavioral: Sick people Health conscious Sportsmen

Target market 

Analyzing all the segments, we decided our target market according to our product category.

The target customers of “Jaul” are sick people, health conscious people, sportsmen and tourists.

The company decided to charge Rs. 12 for 250 ml bottles, Rs. 18 for 500 ml bottles and Rs. 38 for 1 Litre bottles.

Contd. Therefore charging the mentioned prices

are justified. The following graph gives a clear idea of our target market:

1. Health Conscious - 32%2. Sick people - 43%3. Tourist - 3%4. General people - 22%

Health conscious: Health conscious people basically the sports person are one of our largest target market. One third of our total population is young. About 5 million people of this total number are health conscious. They spend about Rs. 500 in a month in average.

Sick people: Sick people are one of our major considerations. More than 1 million children suffer from diarrhea that need liquid food. Not only child but also the adult might suffer from those types of problems.

Tourists: Every year a huge number of tourists visit India. We want to provide them with “Jaul”.

General Customers: Besides the above segments, the general customers will acquire a significant portion of our target market.

Our objective is fully professionalized and we have the target to provide service in a familiar atmosphere and with greater warmth

Objectives

Market Mix

Name of the Product: Jaul

Type of Product: Green Coconut Water

Ingredients: Pure natural green coconut water, Sugar, mineral salts, vitamins C.

Container: Stylish glass bottle

Container size: 250 ml, 500 ml, 1 Litre

Product Price: 250 ml for Rs. 12, 500 ml for Rs. 18, 1 litre for Rs. 38

Products : Jaul

We have decided to set a reasonable price for our product when we will develop it. We considered many factors in setting the pricing policy. We will describe a six-step procedure:

1. Setting the pricing objectives

2. Determining Demand

3. Estimating costs

4. Types of cost and level of production

5. Analyzing competitor’s costs, prices and offer

6. Selecting a pricing method

Pricing Strategies

Our company has decided where it wants to position its market offering. 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.

Setting the pricing objectives:

 Determining Demand:1. Each price will lead to different level of demand and therefore

have a different impact on company’s marketing objectives.

Estimating costs:1. We have estimated the cost and want to charge a price that

covers the cost of production, distribution and selling the product, including a fair return for its effort and risk.

  Types of cost and level of production:1. There are two types of cost: a) fixed and b) variable. In our

new product development project fixed cost is Rs.2,00,00,000. Fixed cost includes- machinery, monthly bills, and salaries of employees and so on, regardless of output.

2. There are some variable costs like-cost of bottle, packaging and so on. These costs tend to be constant per unit production. We have estimated that per unit variable cost is Rs. 6.3 for 250 ml, Rs. 12.6 for 500 ml and Rs. 24.4 for 1 litre.

 Analyzing competitor’s costs, prices and offer:

1. We have analyzed our competitors’ price and found that coconut water charges Rs.10 and coconut powder packets charges Rs. 25.

  Selecting a pricing method:1. We have chosen the target costing method to

set price for our product; pricing that starts with an ideal selling price based on customer considerations, then target cost will ensure that the price is met.

To acquire a strong position in the market, we need to give special emphasis on effective promotional activities. In order to get the maximum market share we will have to use all four tools of marketing promotion. Specially, advertising through mass media will support us a lot.

Promotional Strategies:

 Advertising:1. We initially will give more emphasis on paper ads and TV

commercials. Because, advertising through these media is the most effective way to reach the customers and position our product in their mind. We are anticipating that this will have a massive impact on the teenagers and other enthusiasts. Few neon signs and bill boards of “Jaul” also can be set up in some core points of the city. We hope to reach 75% of our customers through effective advertising.

Personal Selling:1. Though personal selling skill is not that much effective for

convenient products like “Jaul”, we will inspire and train the sales persons of the retail stores to convince people to buy our product when they will come to buy any drinks item. The sales persons will inform the consumers about the cool refreshing taste of “Jaul” and about the nutritious aspects. We hope that will play a significant role to increase our sales.

Promotional Tools:1. We have also planned to apply some promotional tools. Initially

for sometimes we will distribute our product at 50% discount just make our new product familiar with the customers. This will be the market-testing period for our product. Later, we may apply the strategy of giving gifts, lucky coupons, tour tickets depending on the market and competitive situations.

Public Relations:1. We have future plans to hold seminars, commit social

development, supporting social activities, to arrange cultural functions and mobile game shows for publicity purpose.

Distribution Channel1. 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. “Jaul” will be available in all retail stores of the country.

Locations1. We will set our manufacturing and other working areas in

convenient locations. We will prefer the locations to set up our manufacturing firms, warehouses and inventories in different core business points of the country where it will be easier to both collect the raw materials and transport the final goods to the market.

Human Resource1. The board of directors will be responsible for the recruiting

activities. Recruiting will be done through written tests followed by interviews.

Technological Aspects1. To create and innovate new quality products we need to use

advanced technology. We need high tech machineries imported from the foreign countries. Not to mention, skilled people to operate them. We have already studied all the technical aspects and prepared a list of instruments and their costs. The machinery will be collected when required.

Manufacturing and Operations

Thank you