Escolar Documentos
Profissional Documentos
Cultura Documentos
Term Project
Submitted by:
M. Zubair (7971)
Nida Zafar (7980)
M. Umer (8028)
M. Arsalan (7989)
Mehla (8117)
Ahsan Bham (8106)
Dear Reader:
This report contains complete information about the product and the
detailed analysis of the company’s position in the market and the products it
the companies. You may contact us for further queries or comment us on our
work.
Sincerely,
M. Zubair (7971)
Nida Zafar (7980)
M. Umer (8028)
M. Arsalan (7989)
Mehla (8117)
Ahsan Bham (8106)
ii
Letter Of Transmittal
Wednesday, December 16, 2009
We are submitting here our term report on the launching of a new product
named BRIO Energy Chocolate Bar. Initial pages of this report also contain
the brief information about company’s background and the product it is
offering.
If there are any questions or queries you have about the material presented in
this report, we will be extremely glad to appear before you.
Sincerely,
M. Zubair (7971)
Nida Zafar (7980)
M. Umer (8028)
M. Arsalan (7989)
Mehla (8117)
Ahsan Bham (8106)
iii
Acknowledgement
Dear Reader:
With the blessings of ALLAH the almighty, the report enclosed has reached
its stage of final completion. This report is a result of exhaustive and much
without her efforts and co-operation the report would not have been possible.
We also thank for her confidence and trust she had in us, importance of which
We hope readers of this report can complement the depth of the study and
Thanking You
Sincerely,
M. Zubair (7971)
Nida Zafar (7980)
M. Umer (8028)
M. Arsalan (7989)
Mehla (8117)
Ahsan Bham (8106)
iv
Table of Contents
1. Introduction..................................................................................................................1
1.2. Logo.......................................................................................................................3
2. Mission Statement........................................................................................................4
2.1. Vision....................................................................................................................4
3. SWOT Analysis...........................................................................................................6
3.1. Strengths................................................................................................................6
3.2. Weaknesses............................................................................................................7
3.3. Opportunities.........................................................................................................8
3.4. Threats...................................................................................................................8
5. Competitors Analysis.................................................................................................11
6. Target Market.............................................................................................................15
6.1. Age:.....................................................................................................................15
6.2. Use:......................................................................................................................15
v
7. Marketing Mix...........................................................................................................16
7.1. Product:................................................................................................................16
7.3. Price:....................................................................................................................17
7.4. Promotion:...........................................................................................................18
8. Promotional Budget...................................................................................................21
9. Financial Projections..................................................................................................25
10. Conclusion...............................................................................................................27
Table of Figure
vi
Figure 7: Magazines and Newspapers through which promotion will be done.................24
Executive Summary
Our product is classified as “new-to-the-world” product as its competitors may include both
the company’s manufacturing chocolate bars and also that manufacturing energy-providing
edibles but our product is only one of its kinds to be both a confectionary item and an energy-
booster.
Our target market consists of youth and professional adults because our product is what helps
them to take back their energy-zapped afternoons after their school or college and offices.
Initially, we have allocated a large promotional budget understanding the need to make the
target consumers aware of the brand and product itself. Keeping in mind that our target
market belongs to Pakistan, we have designed our advertising campaign to convey our
We do not expect to make huge profits in the first year but we are sure that if we successfully
convey our concept and make our product stable in the market, enormous profits follow in the
long-run.
vii
Page |1
1. Introduction
“BRIO” is a new confectionery product from its company that is ideally located in SITE
confectionery products and establish a strong brand name in the chocolate industry in
Pakistan.
We have the most sophisticated process technology to produce one of the best quality
chocolate in the market today. We realize the importance of efficiency and creativity to
achieve growth in a competitive environment and keeping this in mind we have introduced
“BRIO” – an energy chocolate bar that is a major source of revitalizing energy among our
target consumers. The slogan is ‘GET MORE GO’ due to its high energy content. With BRIO
you can give your energy a crunchy edge and enjoy every bite full of quality chocolate.
Although the market for such products is small, but by developing a clear concept of an
interesting product like BRIO it is predicted that there is a fair chance for profits to be earned.
Such products are usually not successful in our market because firstly, the needs of the
customers are not identified or catered in most efficient way. The consumers need to be made
aware of the benefits and use of energy revitalizing products such as “Brio” properly so that
the concept is not misstated. Secondly, they are usually not directed to the right target market
We have decided to allocate a total budget of Rs. 15M, which is our own personal
investments and borrowing a loan of Rs. 7.75M. Also, our company is a private limited
Capital investment of Land & Building, worth Rs. 12.5M, for setting up the plant was already
bought by one of the entrepreneurs so no rent has to be paid. Machinery costs Rs. 6M,
promotions were allocated a budget of Rs. 2M ATL and BTL activities. Research and
development expense was Rs. 0.5M. A stand-by generator costing Rs. 1.5M has also been
installed keeping in view the current electricity crisis. Rest is miscellaneous including labor,
management, transport and distribution. Along with adequate amount left aside for working
capital and future investments. Further details have been discussed in the concluding part of
the report alongside the demand and sales forecast for the next three years with a profitability
analysis.
The company also aims to establish a diversified portfolio of products in future if ‘BRIO’
We are a newly established company launching our product that is a chocolate bar named as
“BRIO”. The Italian word Brio means “Energy”. We have selected our brand name “Brio” as
our product is not only an ordinary chocolate bar but an “energy-booster chocolate bar”. Our
new energy-booster chocolate bar satisfies two needs states, that is, Hunger and Energy. This
quality is what makes our product different from all other available alternatives.
1.2. Logo
Page |4
2. Mission Statement
Our mission statement is dedicated to provide the best chocolate (energy) bar to its
consumers that would keep them filled with energy throughout the day, giving them a unique
experience of our quality service provided to them by anticipating and meeting their needs.
2.1. Vision
Within a year BRIO wants to attain a significant market share and profits by providing its
customers one of the best energy chocolate bars in Pakistan through its marketing efforts and
We plan to follow a group of policies that are designed to maintain a good reputation/brand
image in the market and to ensure that the company operates in a way that meets or exceeds
the requirements of our customers, all marketing operations and has an overall beneficial
Our mission statement emphasizes that with the launch of BRIO we should fulfill few
equity in future.
Our company policy is inclined to achieve all these objectives and work in accordance with
3. SWOT Analysis
3.1. Strengths
Ingredients of BRIO such as milk chocolate, vitaminB1, peanuts and almonds deliciously
blend in together are to give a mouthwatering affect on the consumers in addition to the fact
that it’s a healthy snack which gives an energy boost. Hence the products itself is distinct and
BRIO’s another strength is its organized distribution network. We primarily distribute our
product through wholesalers and retailers. We also distribute our product to canteens and
cafeterias of almost all schools, colleges and universities that fall in our geographic location.
Our qualified sales person makes it possible for BRIO to be available at the right place and in
the right time. Our distribution network makes sure that there is no reported product shortage
Our company has been successful in recruiting qualified and experienced personnel who
eventually serves as a great strength. The staff being able to coordinate well with each other,
meeting deadlines and accomplish tasks efficiently and effectively adds up o the company’s
overall success.
Page |7
Although BRIO is a newly established company but it does have enough capital investment
and cash flow for the budgets that will enable us to achieve success in every possible way.
3.2. Weaknesses
Our target market is SEC A and SEC B which will not allow us to cater to SEC C which has
Our company uses a penetration pricing strategy that is, setting lower prices to increase
demand for the product. As we have priced a standard bar of BRIO of Rs.45 and a small-size
bar for Rs. 25 and strong energy providing ingredients are costly thus it may not enable us to
Our company caters t the limited market of Pakistan. Products such as chocolates and energy
boosters are seen to be more successful in the international markets. Pakistan being a
developing country still comparatively has a smaller market. Also people, from our target
segment, hesitate in accepting and consuming any such product especially if it is local. They
3.3. Opportunities
Our biggest opportunity is that none of the competitors has yet positioned a product similar to
BRIO that is an energy-boosting chocolate, so far. It is going to be a new concept with a “Get
Though our target market is youth and professional adults, we assume and foresee many
middle aged working people eventually buying BRIO as their complementing mean for
energy too because people who work are usually out of time to have their proper meals and
3.4. Threats
With present well established competitors such as Cadbury and Candyland in the
confectionery industry it is not that easy to not only penetrate the market but also to attract
the consumers and hold the consumer attention in the longer run. Tactful promoting idea will
have to be applied all along our marketing campaign which could be costly.
Any sort of law and order situation in the country and political instability like the recent
threats and associated strikes related to them especially in Karachi as our Manufacturing
factory is situated here, could halt the production and the functioning of the business.
Page |9
3.4.3. Substitutes:
Emergence of substitutes could turn the tables around for us. In this rapid pace of
development any other competitor in the Industry such as Candyland could immediately
come up with an identical product such as BRIO. Also, present substitutes that are the
energy-boosting products (such as: various energy drinks) available have already gained
consumers trust, the possibility of substitution is relatively higher in the long run.
P a g e | 10
Present New
Products Products
New Market
Markets Development Diversification
Marketing strategy we are going to use in relation to the Ansoff’s grid is the diversification
strategy.
The market is new for the company and no such product exists in the market of Pakistan. So
for innovation of a new product in the new market the whole process is to be followed from
the idea generation and screening, testing and commercialization. Depending on exhaustive
promotional strategies with a greater focus on attracting consumer, company will need to
create achievable objectives which will strengthen consumer base and eventually a stable
5. Competitors Analysis
The market for confectionery in Pakistan increased in 2000-2005, at an average annual rate of
8.5%. The leading company in the market in 2005 was Kidco manufacturers. The second-
largest player was Candyland with Cadbury Schweppes in the third place.
annual rate of 7.3%. The leading company in the market, in 2007, was Candyland which is
still continuing to progress at a rapid rate. The second-largest player was Kidco
Currently in the unique market where BRIO is being placed, there is no direct competition
present in the local industry. However, imported products exist in the market fortunately such
stocks are kept on demand basis and selective premium stores charging a premium price.
Preliminarily our analysis considers Candyland’s ‘Sonnet’ chocolate bar as our main
competitor. Company aims to capture its market completely because as sonnet was launched,
the bar did not properly cater to the consumers needs by explaining the uses and benefits of
an energy chocolate bar clearly nor were they able to capture a large market.
Rooh afza
P a g e | 12
Energile
Market Share
Others
Candyland 18%
28%
Rooh Afza
22%
Cadbury
32%
From the figure illustrated above we can infer that the highest market share is of Cadbury
mainly, due to their diversified portfolio. Candyland has the second largest market share,
although it also has a wide variety of confectionery items but they are not so compatible with
Cadbury when it comes to quality and popularity. Rooh Afza on the other hand has the third
largest market share and this was mainly achieved from the popular dairy milk chocolate that
was sold out to even the lower class and lower-middle class consumer segment at a
comparatively lower price prevailing in the industry, making it more attractive product.
Otherwise it is a foreign merger and is not exactly a very direct competition for BRIO. Rest
of the confectionery market comprises of competitors that are international and other local
Pakistani firms that are still striving hard to achieve a major competitive share in the market.
P a g e | 13
The Competitive advantage of BRIO is its Unique Selling Preposition (USP) as an “energy
booster chocolate bar.” Additionally, our product can have a highlighting attribute of serving
as a snack bar. Pakistan's market has so far not come across many unique confectionary
items. Our main direct competitor is Candyland's Sonnet Bar which failed to convince the
consumers and could not achieve success due to lack of persuasive skills of the marketing
team. The TVC of Sonnet chocolate bar even though showed a cricket match scenario in
which a player after having Sonnet chocolate bar becomes totally energetic but the message
was vague because the product itself was not positioned as an energy provider.
We have positioned BRIO as the ultimate energy providing Chocolate Bar. Our marketing
campaign is entirely based on this theme from Radio, TVC, Print ad etc. Our below the line
marketing also completely promotes BRIO as a chocolate energy bar. Our marketing
campaign is based on the concept of 'Super Heroes'. We have portrayed in the promotions
that a normal individual after eating the BRIO Bar turns into a Super Hero, irrespective of the
gender, color etc. As our target market is mainly kids and teenagers hence the idea is likely to
As discussed earlier, our major competitors are only the international products which are not
commonly available in the local market. Therefore, our target market has been observed to
consume international chocolate bars more than the local ones. In that case selected
population, Snickers is considered to be taken by many young individuals for instant energy;
however, Snickers is not positioned as an energy bar. Making our product as a high quality
energy snack we intend to capture greater market share where we might be able to attract
greater volume of consumer who will prefer buying our product. Thus we are to market
BRIO to meet the local as well as international competition, thus a considerable amount was
P a g e | 14
set aside for Marketing budgets initially. In addition we have portrayed and promoted Brio
keeping in mind both direct and indirect competitors. Thus our TVC and print ad even though
shows a chocolate bar but give an effect of heroic energy seen by the indirect competitors
such as Red Bull earlier before. Therefore our competitive advantage lies of our unique skill
of covering all the aspects of competition but urging the consumer to buy the product.
Energy Provider
BRIO
RED BULL
Dairy Milk
ENERGILE
SONNET
ROHAFZA
Drink Chocolate
Jubilee
NOW
Non-Energy Provider
P a g e | 15
6. Target Market
6.1. Age:
6.2. Use:
BRIO is used as a snack. It is not in any case a meal replacement. To meet consumer needs
and help millions of Pakistanis take back their energy-zapped afternoons, BRIO is
proclaiming the post-lunch, pre-dinner hour between 2:00pm and 3:00pm which is the ‘Re-
Power Hour’.
Our target consumers use it to boost their energy level and also to dilute the hunger between
City Places
Defence Housing Authority, Clifton, Gulshan-e-
Karachi Iqbal (All private institution, i.e. School, Colleges,
Universities)
Defence Housing Authority, Model Town,
Lahore Gulberg, (All private institution, i.e. School,
Colleges, Universities)
Islamabad Defence Housing Authority, Sector F-6, 7 ,8 ,10,
11, Korangi Town, Wapda Town (All private
P a g e | 16
7. Marketing Mix
7.1. Product:
Our product is a chocolate bar that not only provides taste but also boosts up energy level.
New BRIO Energy-booster Bar satisfies Two Need States, Hunger and Energy.
Milk Chocolate (20% - sugar, cocoa butter, full milk powder, cocoa, emulsifier: lecithin),
peanuts, sugar, salt, guarana, dextrose, glucose syrup, invert sugar syrup, caramel (4.3 % -
Ingredients used in the product are all imported and have several benefits. The first benefit
ingredient is “Peanuts”. Peanuts are high in fiber and provide energy according to a scientific
research. It is packed full of roasted peanuts caramel and milk chocolate. Secondly, B-
vitamins added to the great tasting nougat provides consumers lasting energy and hunger
satisfaction. Thirdly, herbal plant powder known as “Guarana” is included in the ingredient
which has no side effects and is an energy booster. The plant origins from Portuguese, made
popular by Brazilians.
R Karachi
P a g e | 17
R Lahore
R Islamabad
Because these cities happen to have large portion of SEC A and SEC B as compared to the
other cities and also the population is more educated and aware to adopt or accept such
product easily.
a) Manufacturer-Wholesaler-Retailer-Consumer:
We manufacture the product and sell it in bulks to the wholesalers that in turn re-sell it to the
retailers. Retailers then sell the product in desired quantities (bundle or individual pieces) to
the final buyers.
b) Manufacturer-Retailer-Consumer
We also sell the manufactured product directly to the retailers who re-sell it to the final
buyers.
c) Manufacturer-Consumer
The ways in which we directly distribute the product to the final buyers are through
campaigns and stalls at universities, colleges shopping malls like Liberty Mall and Park
Towers along with stadiums and parks.
7.3. Price:
d) Direct competitors:
Half-Size Full-Size
(Rs.) (Rs.)
Candyland’s Sonnet Bar 5 10
Candyland’s Now 15
Mitchells Jubilee 5 10
Cadbury Chocolate Bar 25
e) Indirect Competitors:
Standard
(Rs.)
Red bull (Can) 100
P a g e | 18
(Rs.)
Raw Material 28
Labor 4
Profit Margin 5.2
Retail Price + Sales Tax (21%) (37.2 + 7.8) =
45
g) Half Size Bar:
(Price Rs. 25)
(Rs.)
Raw Material 16
Labor 2
Profit Margin 2.7
Retail Price + Sales Tax (21%) (20.7 + 2.6) =
25
7.4. Promotion:
Our first short term promotional objective is to create Brand Awareness among our target
market for that will make it easier for them to accept and actually buy our product and gain
market share. If people are aware of your brand, it makes you stable in the market too.
Secondly, attracting a large consumer base is another short term goal to achieve. The more
the consumer knows about your product the more is the urge to try and then eventually buy.
As the demand will increase, the market share or market for the product will increase.
Lastly, to attain the Consumer’s Attention. In the cluster of products available, promotions
are essential to attract consumer’s attention and differentiate your product from other
available substitutes.
P a g e | 20
The main long-term objective of any promotional activity is to Increase Sales of the product.
In the same way, our promotional activities are guided to increase sales of our product.
Promotions are designed in ways to encourage sales that ultimately add up to Profit
After successfully attracting it is of utmost importance to hold the consumer’s attention. Our
promotional activities make sure that our target consumer remembers our product and can
As consumers remember and recall your product, your Brand Equity builds up. We object to
attain Brand Equity to enhance our customer loyalty which in future will help us to charge a
higher-price for our product and not just gain but also retain our market share in case of fierce
competition.
As stated above, Increase in Market Share will help us to stand severe market competition &
We have had our campaigns going on in different famous market places where we perceived
to have found and directly interacted with our target consumers, that is, kids and teenagers
from SEC A and SEC B. We had or stalls set up at The Forum and Park Towers where we
made our target consumer taste the product and give their feedback both on the quality and
the concept.
P a g e | 21
Secondly, the campaigns that we carried out in various schools and colleges included
activities among kids and teenagers requiring energy (such as races etc.) and then rewarding
Both of the activities based on our overall marketing theme and our product’s concept.
These activities include an introductory promo creating an appeal among the viewers and
listeners. These types of activities will lure the consumer in bonding with the product.
We used TVCs, print media (Newspaper, Posters etc.) and radio advertisements. These
medium of communication with the customer will guarantee a higher demand of the product
and will also create awareness among them as well. It will also be helpful to anticipate what
is being expected and what necessary steps are needed to be taken for a more favorable
outcome.
Celebrities’ representation is also being planned to give the product a better image. National
8. Promotional Budget
Other Print
20% 17%
Radio
5%
Televsion
58%
GEO
Geo Super 12%
19%
HBO
17%
Aag
21% Wikkid
5%
We have selected the channels such as MTV, THE MUSIK, Aag, HBO, Geo Super, etc.
because these channels are famous among our Youth (teenagers) which is also our target
market. WIKKID, Aag, and The MUSIK serves our large age-bracket, that is, teenagers from
12 yrs – almost 23 yrs. Our target audience from 24 yrs – 35 yrs watches and like our rest of
the selected channels, that is, Geo, Geo Super, and HBO.
P a g e | 24
Fm91 Fm96
35% 14%
Fm 89
51%
We have selected radio stations such as FM91, FM89 and FM96 which are youth based
stations. These channels represent the generation X, which mostly consists our target market.
RJ’s also have a great fan following; therefore, listeners are also influenced with them.
Others
7%
Gulshan-e-Iqbal
15% Shara-e-Faisal
36%
36%
Clifton
42%
42%
YOUNG NATION
3%
DAWN
97%
The YOUNG NATION is a magazine for teenagers it’s a weekly magazine our advertisement
is more likely to reach our target audience via this magazine. We are also advertising in
DAWN as it has a higher circulation rate as compared to other English language newspapers.
P a g e | 26
9. Financial Projections
Based on the market research carried out by the company, suitable estimation of demand and
necessary financial projections has been done. Necessary data is provided in the annexure to
support this information. Financial evaluation, based on projected sales volume and necessary
cost taken into account, shows that the project is a profitable venture.
Working Capital of Rs. 2.75M has been employed with a cash balance of Rs. 0.28M and a
12% growth rate of increase in yearly projected revenues. The company comes in a tax
bracket of 35%. The analysis is based on a 3-years venture, the scenario represents that the
project will be liquidated after its tenure and all assets will be disposed.
After 3-years, if the project seems feasible to continue, owners of the company will have to
The demand of the product won’t be completely reflected in the company’s sales forecast in
the initial years. As there will be an initiation in the production process, some discrepancies
are expected therefore demand might not be efficiently met due to several reasons which will
also be tried to overcome. As the production level will rise in the coming years of operations,
In the initial year of business the annual sales revenue forecast is expected to be .64M units,
with a Price per unit of Rs. 30, it aggregates a Net Revenue of Rs. 19.2M. With an expected
sales growth of 16% annually the sales volume in units will be raised up to a million units in
P a g e | 27
the end of third-year. These estimates are taken based on the research that has been carried
out by the sales team. Keeping in mind the potential consumer base for the product and the
Cash Flows statement based on the company’s sales forecast has been provided in the
annexure with a detailed chronological pattern. Profit earned through the annual sales
recorded, will be allocated to pay off debt and allocate the increase in the working capital
10. Conclusion
For generating this report, our team efficiently utilized as a guideline, the much informative
concept and skills of the Marketing Management course in order to achieve the goal of the
task assigned to us. This incorporated coming together as a group and firstly deciding on
what type of business venture should be undertaken, and then deciding on the type of
ownership for it. A thorough market need analysis was then done so as to study the different
customer behaviors and their preferences regarding the proposed service which would be
offered to a certain market segment. Competitors too, were scrutinized carefully and a
location to launch the product at was selected, based on both qualitative and quantitative
determinants. Then, responsibilities within the organizational hierarchy were decided upon
and it was seen to that the required inventory and financial resources are properly listed so as
to prevent any miscommunication with the respective suppliers. Also, an efficient pricing
strategy assisted in calculating and organizing the financial requirements of the business.
We believe that within a short time span, ‘BRIO chocolate energy bar’, although initially a
small-sized enterprise is sure to reap in delightful profits. Once the product attains its desired
position in the market, we plan to expand our portfolio both geographically as well as into
new categories of product such as energy drinks, energy biscuits as well as energy products
for old age. And by the time competitors do think of applying this idea, we believe that we
would have captured a loyal target market, by providing highest of quality and results, finally
actually launching the idea into the market and opening up ways for its bright future.
P a g e | 29
Annexure