Final Ganna Report Changed

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PRINCPLE OF MARKETING (9033)
Vision Group
Principles of Marketing
Submitted to:
Submitted by:
ACKNOWLEDGEMENT
We are very thankful to our course instructor Mr. ______________who was very co-operative and helpful throughout this course. He just did not make our concepts clear but gave us vivid direction and easy path to compile the overall course. We hope that he will continue to guide us in the similar way so as to enlighten us in the future as well. This report is the combination of lot of sincere hard work and dedication from our group members, their valuable ideas and suggestions. They were very co-operative and helpful throughout this research report. All the members have contributed equally well with lot of care and authority. We will highly appreciate suggestions for improvement in this report or any other queries regarding this report and tits contents from everyone Especially from our companions and well wishers as we strongly believe that nothing is perfect in this world and there is always a room for improvement.
GANNA The Sugarcane Juice Healthy Chaska
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EXECUTIVE SUMMARY
GANNA is a pure and clear healthy drink. The drink itself is not new in the market but somehow it does not attract its target audience the way it should. The basic reason for this is its making. So far it is not available in tin packs, it is available in the same traditional manner in which there is a Ganna-Waala who extract the juice of the sugarcane in the open environment that creates hygienic problems with lots of dust and bees coming onto it. And this is the main reason why people do not go for it. During our surveys and research we found out that there is a vast majority of people who like to drink sugarcane juice if it is available in a way that removes their concerns about its hygiene. This product is initially meant to give such people and then other potential target market will be persuaded through effective communication.
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GANNA is reintroducing the taste of refreshment to all those people who are aware of it and that will match our city-life peoples taste and for those who are not aware of this drink, it will be a new experience all in all for them. Plus convenience is of critical importance to people in the urban areas that they can buy and drink on the spot. We have kept in mind that there has been a decline in the sales of soft drinks and juices and the primary reason behind is that people are more health aware. This has made many consumers to reduce the use of fizzy drinks. GANNA is a joy to all such people as it is 100% natural in its form, focuses on health, freshness and convenience
Vision Statement
A vision statement is sometimes called a picture of your company in the future but its so much more than that. Your vision statement is your inspiration, the framework for all your strategic planning.
Our Vision Statement :

To be able to become the number one healthy drink in the market enjoyed by all kinds of people and give them a satisfaction that no other drink has given before. The key elements to our vision statements are as follows:
Market leadership: To become the national market leader in the healthy drinks market.
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Globalization: To make our product available in all urban cities as these people are more concerned about health and hygiene. Quality: To achieve the status of being the top most healthy drink in the market that concentrates on giving high quality at a reasonable price.
This will ensure:

Customer satisfaction and preference Profitable growth
Through continuous improvement of processes focused on:

Total quality Productivity Cost Effectiveness
We envision achieving this status within the next 2 years.
Mission Statement
A mission statement is a brief description of a companys fundamental purpose. A mission statement answers the question, Why do we exist?
Our Mission Statement :

To provide pure quality and clear drink to quench the thirst of people and energizing them with a new taste of refreshment.
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MARKETING RESEARCH
Marketing Research Steps
1. Defining the problem and research objectives. 2. Developing research plan. 3. Collect the information. 4. Analyze the information 5. Present the findings 6. Make the decision
Ganna Sugar Cane juice Research :

As we are to introduce an innovation in market our primary objective behind the market research was to describe things such as market potential and attitudes of customers towards the ready to drink packs. We made a surveys to offices, and visit in different retail store like Naheed store D-mart and also local stores and stalls to know peoples response towards ready to drink GANNA approximately (80%) Responses in Karachi were in favor. Hence we are in confidence now that big cities with an educational level and knowledge of health related issue and hot weather cities will welcome our drink The instrument, which we used for our research, was questionnaire. We collected the primary data by distributing questionnaires. We distributed the questionnaires among 100 people. We have conducted our research in Karachi Majority of the people filled the questionnaire in favor of our product. It basically asked the questions about their drinking habits and then it moved to asking the more specific questions related to the sugarcane juice and its acceptance by them , which also disclosed their likeness about the idea and the product.
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SITUATION ANALYSIS:
Enviremental Forces at Macro Level are Controllable:

Unlike the controllable marketing mix variable , the enviremental forces are not controllable by marketers. However, marketers can control how they deal with those uncontrollable forces by identifying and monitoring those forces that are relevent to their firms. They also must forcast changes in these forces if they are to develop effective marketing plans and strategies.
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LIST PESTEL :
1 2 3 4 5 6 Demographic forces. Economic forces. Natural forces. Technological forces. Political forces. Cultural forces.
Political & Legal Factors

Laws, government agencies, and pressure groups that influence and limit various organization and individuals in a given society. Pakistan's late military leader Zia-ul-Haq banned alcohol consumption by Muslims who constitute 97 per cent of the population more than 25 years ago The Government imposes a restriction on all such products that are alcoholic or contain injurious ingredients towards the health. Our drink contains none of these factors. Non-alcoholic beverages fall within the food category under the FDA. The government plays a role within the operation of manufacturing these products in terms of regulations. There are potential fines set by the government on companies if they do not meet a standard of laws. It can safely be said that Pakistan provides a strong and sophisticated framework of intellectual property laws to protect the valuable rights of owners in various fields associated with economic and cultural activities.
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The market for health Drinks in Pakistan increased between 20012006, growing at an average annual rate of 8.5%. The leading company in the market in 2006 was Nestle with its different fresh juices. However these juices are made with fruits and our drink contains other healthy ingredients. Impact: The market for health drinks in Pakistan is at a growth stage and at such a level if our drink is positioned properly it will prove to be a great success.
Economical Factors
Factors that affect the consumer buying powers. Employment
Double income households contributing to raising household incomes has influenced the beverage industry as both the members of the family are working and this increases the demand for hygiene products.
Money Supply
Inflation is rising but it will not have a significant effect on the buying power of people since GDP and disposable income is also on the rise. Impact: If the money supply increases in the economy this will lead a rise to buying power of people.
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Disposable Income
For a beverage industry, disposable income is an important indicator. Disposable income puts more money in the hands of the consumers. GANNA will keep on checking the net income at different stages. so as to reach the comparison of fluctuations between actual and estimated costs and taking necessary actions to avoid variance.
Cultural Factors
Institutions and other forces that affect societys basic, values, perceptions, preference, and behaviors.
Lifestyle
Due to increased diversity in workforce, as both the members of the family are working this has given rise to incomes who can now afford to purchase these necessity products with ease. The reasons for these increases lie with the consumer; disposable income, household revenue, and quality of life have greatly increased. Senior citizens now have much higher living standards than ever before.
Health Awareness/ Literacy Level

Additionally, consumers are increasingly better informed through media regarding the benefits of health drinks bringing in hygiene factor in consideration for better health of people which has increased the consumption and become a necessity and would continue to grow more in future with an increasing rate and demand.
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Social Status
Health drinks enjoy a very high status in the beverage industry and are consumed by all health conscious people.
Technological Factors
Forces that create new technologies, creating new product and market opportunities.
Technological Advancement
Newer technology has affected the industry through new products, processes, and materials. To utilize effective technology will help the company in gaining competitive advantage. Most organizations operators viewed computers as their number one tool of improving efficiency. Computers could be used to improve labor scheduling, accounting, payrolls, sales analysis, and inventory control.
Advance Machinery (Business Model)

To find out which technology is more effective to adopt and can provide more benefits for the industry, will help the companies in gaining competitive advantage by adopting new technology. The usage of technology is an essential part to reduce cost and make operations more efficient. Latest equipments like Deionization Plant, Filtration
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Plant, and Reverse Osmosis equipment will increase the efficiency and reduce costs.
Research & Development

The industry is emphasizing and investing more in research and development. Such outlays were crucial in that they enabled the companies to identify new opportunities and to increase its efficiency and more productivity.
Analysis of Firms Competitors

Competitive analysis, the process of identifying the performance and marketing strategy of competitive brands or products in the marketplace. In order to plan an effective marketing strategy, marketers need to know about the competitive environment and to find out all they can about competitors' products, prices, communication channels quality, and service so as to determine areas of competitive advantage and disadvantage.
Can competitors change with the change in frame of reference? 1. set of coordinate axes in terms of which position or movement may be
specified or with reference to which physical laws may be mathematically stated. Also called reference frame. 2. A set of ideas, as of philosophical or religious doctrine, in terms of which other ideas are interpreted or assigned meaning. 3. Yes competitor can change his overall strategy sometimes based on competitor's frame of reference.
Ongoing Process :
it is an ongoing process as the strategies for business and advertising & marketing keep evolving with the change in trends of people's preferences, lifestyles and innovation in the media choices to target the customers
Method for Identification of Competitors :
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Here are the 10 best ways to identify your competitive analysis:1. Using a variety of resources to find where your competitor is bidding on Pay Per Click. If you think your competition is bidding on certain search engines and not on all then they are getting a good ROI from that pay per click, may be because of low competition in that particular pay per click search engine. 2. Identify who is coming up in the natural search results, because for a site to come up under natural search results means they have a well optimized site. So you need to focus in the same area they are focusing on your website from the optimization point. 3. Identify whether your competition is utilizing partnerships, outsourcing, and relationship with other websites and is it beneficial for your business to have these kind of relationship with other websites.
4. Need to find your competition is a member of business and trade associations, and registries and join them if it benefits and if possible to get a referral link on their websites which helps in your link popularity and online visibility. 5. Identify how your competition is making money from the website and their revenue model. Also look for more potential area where your competition is not targeting tap those areas.
6. During the course of analysis Use Practical method by ordering online and make use of your competition services to find how good is their customer services, how is their online sales process and identify what they are doing right or wrong and take advantage of their mistakes. 7. If your competition is offering free mailing or newsletter subscription join them to identify their marketing strategies. 8. Using search engine analysis from where they are getting backlinks, any bookmarks in social media sites. After identify from where they are getting these links try to get link on those web pages. 9. Analyze your competitors PPC ads which will give you how to modify your PPC campaign ads. 10. Use different online tools like Alexa, Compete, Ranking tools to find what are their rankings and ratings are and do that on a regular basis to find who they are doing compared to your website.
Competition
The direct competitors of GANNA are as follows: GANNA The Sugarcane Juice Healthy Chaska
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Carbonated drinks Sunsip Limoo Pani Jam-e-sheereen. Taskeen-e-Rooh. Shezan squash. Tops squash. Mitchelles squash. Rooh Afzah Rani Juices Alwaha Juices
The nearest indirect competitors include: Frost. Nestle. Tops. Shezan Tang. Other juices
Saturation:
When we talk about ready to drink juices, the market is highly saturated with above-mentioned competitors. The estimated market shares on the basis of market researche are shown below:
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Drinks Tops Frost Nestle Shezan Minut-made Tang Pepsi& coke Other carbonated drinks Other Juices
Response 4% 14% 20% 4% 6% 24% 20% 8% 4%
Challenges and Opportunities

SWOT Analysis?
A tool that identifies the Strengths, Weaknesses, Opportunities and Threats of an organization. Specifically, SWOT is a basic, straightforward model that assesses what an organization can and cannot do as well as its potential opportunities and threats. The method of SWOT analysis is to take the information from an environmental analysis and separate it into internal (strengths and weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT analysis determines what may assist the firm in accomplishing its objectives, and what obstacles must be overcome or minimized to achieve desired results.
Need to Perform SWOT Analysis GANNA The Sugarcane Juice Healthy Chaska
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SWOT analysis may limit the strategies considered in the evaluation. "In addition, people who use SWOT might conclude that they have done an adequate job of planning and ignore such sensible things as defining the firm's objectives or calculating ROI for alternate strategies." Hill and Westbrook (1997)
[3] [1]
Findings from Menon et al. (1999)
[2]
and
have shown that SWOT may harm performance. As an
alternative to SWOT, J. Scott Armstrong describes a 5-step approach alternative that leads to better corporate performance These criticisms are addressed to an old version of SWOT analysis that precedes the SWOT analysis described above under the heading "Strategic and Creative Use of S.W.O.T. Analysis." This old version did not require that SWOT be derived from an agreed upon objective. Examples of SWOT analyses that do not state an objective are provided below under "Human Resources"
SWOT Analysis of Ganna

Strengths
The product image is loaded with over-romanticizing, and this is an image many people have taken deeply to heart. This extremely recognizable branding is one of GANNA greatest strengths. We are the pioneers in executing this idea of moving a very local product / juice from streets stands to the shelves of a big superstore. And now this healthy drink is introduced with a touch of new taste. GANNAs packaging system is one of their greatest strengths. It allows conducting business on a large-scale while at the same time maintaining a local approach. The packaging material is locally available in the market. Its packing is fancy consisting of a an image, which shoes lots of sugarcanes (that already tells about the product without reading the name) in the quantity of 250ml.
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GANNA enjoys the status of a healthy drink in the beverage industry providing taste and quality both at affordable rates. It is a drink that will be consumed by most of the people.
Weaknesses
GANNAs only and greatest weakness lies within the fact that it has to be consumed within a week. Once purchased, it has to be consumed or otherwise it will get spoilt unless refrigerated as preservatives can only save it for a week time.
Opportunities
GANNA has great opportunities lying ahead of it based upon the marketing strategies and the packing it uses. This is a new product in the market and customers always try new products if attractive towards them. Hence the opportunity for GANNA to get a good image in the minds of its consumers and it is only possible with more efforts towards its advertisement and presentation. GANNA is a healthy drink and will enjoy many benefits in the market due to this reason.
Threats
Consumer buying power also represents a key threat in the industry as they may easily switch to other drinks. As this healthy drink does not require a lot of capital to come into the market hence there is also a risk of competitors which will enter the same market with different names.
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Strategic Decisions:
Level of Product:
Customers will choose a product based on their perceived value of it. Satisfaction is the degree to which the actual use of a product matches the perceived value at the time of the purchase. A customer is satisfied only if the actual value is the same or exceeds the perceived value. Kotler defined five levels to a product: 1. Core Benefit the fundamental need or want that consumers satisfy by consuming the product or service. 2. Generic Product a version of the product containing only those attributes or characteristics absolutely necessary for it to function. 3. Expected Product the set of attributes or characteristics that buyers normally expect and agree to when they purchase a product. 4. Augmented Product inclusion of additional features, benefits, attributes or related services that serve to differentiate the product from its competitors. 5. Potential Product all the augmentations and transformations a product might undergo in the future. Kotler noted that much competition takes place at the Augmented Product level rather than at the Core Benefit level or, as Levitt put it: 'New competition is not between what companies produce in their factories, but between what they add to their factory output in the form of packaging, services, advertising, customer advice, financing, delivery arrangements, warehousing, and other things that people value.' Kotler's model provides a tool to assess how the organisation and their customers view their relationship and which aspects create value.
Product Mix:
All of the products or product lines offered by a firm. Some companies have a wide product mix geared toward a diverse consumer group. For
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example, Procter & Gamble has a product mix that includes detergents, toothpaste, Procter bar soap, deodorants, disposable diapers, coffee, household paper goods, and food products. Some companies have a narrow product mix geared toward a particular market segment, such as the Williams Sonoma catalog that sells gourmet cooking accessories. Offering a wide product mix provides an opportunity to increase the amount of goods sold to each customer but has costs associated with the variety of resources (distribution, storage, marketing, etc.) required to support it. Need: a lack of a basic requirement; Want: a specific requirement for products or services to match a need; Demand: a set of wants plus the desire and ability to pay for the exchange. Satisfied Customer: When you deliver whatever is required by you to the customer, then he is a satisfied customer Delighted Customer: When you give him something that he does not expect, gets him excited and he becomes a delighted customer.
Stages of a Product Life Cycle:

1.Introduction: A period of slow sales growth as the product is introduced in the market Example : New Toyota Car 2.Growth : A period of rapid market acceptance and substantial profit improvement Example :Nokia Xpress Music 3. Maturity : A slowdown in sales growth because the product has achieved acceptance by most potential buyers Profit stabilize or decline because of increased competition .Example : Mobilink 4.Decline : sales show a downward drift and profits erode. Example : Santro car
Brand:
A distinguishing symbol, mark, logo, name, word, sentence or a combination of these items that companies use to distinguish their product from others in the market. Yes, we can associate these symbols with anything we wish to. GANNA The Sugarcane Juice Healthy Chaska
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Brand Equity:
Brand equity is created through aggressive mass marketing campaigns. Good examples of companies with strong brand equity are corporations such as Nike and Coca-Cola, whose corporate logos are recognized worldwide.
Product Ganna
GANNA is a premier natural cold drink, proved beyond ambiguity that it is more than a cold drink. It is a blend of water, sugarcane extract, additives, preservatives and black pepper. It is pure and not many stages involve from extraction to the packing in the canes. It will be a joy for people of all age groups specifically in the summers and generally in all seasons. GANNA is the best remedy to beat the heat in summer; its a delicious healthy drink which contains ingredients that are also helpful for patients of jaundice. It is also recommended by doctors as the remedy of several diseases. the name of Ganna we choose because it is easy way to remember and every people knows about it and after being success it will be easily set in people mind and whenever they talk about this juice this product will come in their mind GANNA is a pure healthy drink made with natural ingredients and is prepared in 100 % extraction methods. No water is added to it. In this modern age everybody is concerned about his health and will never want to go for goods of inferior quality. Newer technology has affected the industry through new products, processes, and materials. An increased emphasis on healthy lifestyles and improved consumer awareness of the need for proper hydration led many consumers to shift traditional beverage preferences toward hygienic drinks. For
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much health conscious people who consume fresh juices in their daily life GANNA can be yet another good and preferable option. This drink will face a lot of competition with the fresh juices in the beverage industry and also with the fizzy drinks as they also quench thirst. Therefore we will center primarily on healthy drinking practices, attractiveness of packaging, and well-structured distribution, and our distribution will be such that it will be available at all store shelves so that the customers become consistent towards our product.
Target Marketing / Segmentation

TARGET MARKET:
A setoff buyers sharing common needs or characteristics that the company decides to serve.
FACTORS OF TARGET MARKET:

Get your message to the people who need and want what you have to offer! This guide takes you through a step-by-step process that helps you identify specific target markets within your industry and provides you with the know-how to create customer profiles to better channel your marketing efforts. 1. What You Should Know Before Getting Started 2. Identifying Your Market
What You Should Know Before Getting Started

In order to market your product or service, it is imperative that you tailor your marketing and sales efforts to specifically reach the segment of population that will most likely buy your product or service. It is critical that you first determine or clearly identify your primary market. Your energies and funds then can be spent more efficiently.
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If you don't know who your customers are, how will you be able to assess whether you are meeting their needs? Since success depends on your being able to meet customers' needs and desires, you must know who your customers are, what they want, where they live and what they can afford. We've all heard a business owner say, "My product is terrific! It appeals to everyone." Many of us have also seen small businesses that try to be all things to all people. This is a difficult, if not impossible, bridge to cross. Targeting your market is simply defining who your primary customer will be. The market should be measurable.
Types of Markets:
A market is simply any group of actual or potential buyers of a product. There are three major types of markets. 1. The consumer market. Individuals and households who buy goods for their own use or benefit are part of the consumer market. Drug and grocery items are the most common types of consumer products. 2. The industrial market. Individuals, groups or organizations that purchase your product or service for direct use in producing other products or for use in their day-to-day operations. 3. The reseller market. Middlemen or intermediaries, such as wholesalers and retailers, who buy finished goods and resell them for a profit.
Identifying Your Market

Here are three steps to follow when identifying your market:
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PRINCPLE OF MARKETING (9033) Customer Would Want To Buy Your
Identify Why A Product/Service
Segment Your Overall Market Research Your Market
NICHE MARKET:
A market-coverage strategy in which a firm goes after a large share of one or a few segments of niches. Through a niche marketing a firm can achieve a strong position because of its greater knowledge of consumer need in the niche market it servers and the special reputation it acquires.
MARKET SEGMENTATION:
Dividing a market into smaller group of buyers distinct needs, characteristics, or behavior that might require separate product or marketing mixes. The marketing plan recognizes the various segments of the market for GANNA instead of marketing a product in one way to everyone. The segmentation is based on various criteria such as those listed below.
List different ways of market segmentations:

1 Geographies segmentation. Dividing a market into different geographical units such as nations, states, regions, countries, cities, or neighborhoods. 2 Demographic segmentation.
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Dividing a market into group based on demographic variables such as age gender, family size , income , occupation , education, religion. 3 Psychographic segmentation. Dividing a market into different groups based on social class , lifestyle or personality 4 Behavioral segmentation. Dividing a market into groups based on consumer knowledge, attitude , use or response to a product.
Ganna Target Market

The target market of GANNA includes all the people who are health conscious. It includes children, youth and all aged people regardless of age or gender discrimination, it is a leading different walks of lifes. drink for all groups of people
Ganna Market Segmentation:

The marketing plan recognizes the various segments of the market for GANNA instead of marketing a product in one way to everyone. The segmentation is based on various criteria such as those listed below.
Demographics
This is the study of the distribution, density and vital statistics of a population, and includes such characteristics as: Sex = no gender discrimination, its for all. Age = it is a versatile drink that can be enjoyed by all age groups. GANNA The Sugarcane Juice Healthy Chaska
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Education = More towards educated people as they are more concerned about hygiene Marital status = for the people of all marital status Size of family unit = for all families. Total income of family unit= for all those who can afford it as the price is very realistic and can be afforded by the masses, so it is not a big issue Religion = for the people of all religion in targeted geographical areas, it has no such ingredients that are prohibited or addictive.
Geographies
The geographic areas targeted by GANNA mainly urbanized areas of big cities like Karachi, Lahore, Rawalpindi / Islamabad, Faisalabad, Hyderabad, Peshawar, Sukkur, Multan. At a later stage, it will be distributed in other urban areas of different other cities.
POSITIONING:
Positioning is a concept in marketing which was first popularized by Al Ries and Jack Trout in their bestseller book Positioning - a battle for your mind". They iterate that any brand is valued by the perception it carries in the prospect or customer's mind. Each brand has thus to be 'Positioned' in a particular class or segment. For example, Mercedes is positioned as a luxury brand, and Volvo is positioned for safety. The position of the brand has to be carefully maintained. generic When Marlboro Rolex reduced are its prices, sales dropped immediately because its customers began associating it with the segment. watches even more dramatically positioned as a luxury items, and have become a symbol for accomplishment in life. If Rolex reduces its prices, it will reduce brand cachet and sales.
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The objective of positioning is to generate and maintain a clear value proposition to customers, thus creating a distinctive place in the market for the organization. To be effective, the basic value proposition offered by an organization must be something that is relevant to the target market, it must be differentiated from the competition and it must be sustainable and communicated clearly to that market.
Positioning Dimension:
Product Attributes: What are the specific product attributes? Benefits: What are the benefits to the customers? Usage Occasions: When / how can the product be used? Users: Identify a class of users. Against a Competitor: Positioned directly against a competitor. Away from a Competitor: Positioned away from competitor. Product Classes: Compared to different classes of products.
COMPETITIVE ADVANTAGES:
The way the product is defined by consumer on important attributes. The place the product occupies in consumer minds relative to competing products. Yes it gain advantages because of creating differentiation between competitor and due to this reason consumer comes to your product and leave competitor
Ganna Positioning Strategy
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As the ready to drink GANNA is in convenience pack, and it is pure and clear drink customers can have it at any time they want. So it will be positioned in the market on the basis of its Attributes. and Quality The tag line for our drink will be as follows:
HEALTHY CHASKA
Competitive Strategies
Following on from his work analyzing the competitive forces in an industry, Michael Porter suggested four "generic" business strategies that could be adopted in order to gain competitive advantage. The four strategies relate to the extent to which the scope of a business' activities are narrow versus broad and the extent to which a business seeks to differentiate its products. The four strategies are summarized in the figure below:
The differentiation and cost leadership strategies seek competitive advantage in a broad range of market or industry segments. By contrast, the differentiation focus and cost focus strategies are adopted in a narrow market or industry. Strategy - Differentiation
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This strategy involves selecting one or more criteria used by buyers in a market - and then positioning the business uniquely to meet those criteria. This strategy is usually associated with charging a premium price for the product - often to reflect the higher production costs and extra value-added features provided for the consumer. Differentiation is about charging a premium price that more than covers the additional production costs, and about giving customers clear reasons to prefer the product over other, less differentiated products. Examples of Differentiation Strategy: Mercedes cars; Bang & Olufsen Strategy - Cost Leadership With this strategy, the objective is to become the lowest-cost producer in the industry. Many (perhaps all) market segments in the industry are supplied with the emphasis placed minimizing costs. If the achieved selling price can at least equal (or near) the average for the market, then the lowest-cost producer will (in theory) enjoy the best profits. This strategy is usually associated with large-scale businesses offering "standard" products with relatively little differentiation that are perfectly acceptable to the majority of customers. Occasionally, a lowcost leader will also discount its product to maximize sales, particularly if it has a significant cost advantage over the competition and, in doing so, it can further increase its market share. Examples of Cost Leadership: Nissan; Tesco; Dell Computers Strategy - Differentiation Focus In the differentiation focus strategy, a business aims to differentiate within just one or a small number of target market segments. The special customer needs of the segment mean that there are opportunities to provide products that are clearly different from competitors who may be targeting a broader group of customers. The important issue for any business adopting this strategy is to ensure that customers really do have different needs and wants - in other words that there is a valid basis for differentiation - and that existing competitor products are not meeting those needs and wants. Examples of Differentiation Focus: any successful niche retailers; (e.g. The Perfume Shop); or specialist holiday operator (e.g. Carrier) Strategy - Cost Focus Here a business seeks a lower-cost advantage in just on or a small number of market segments. The product will be basic - perhaps a GANNA The Sugarcane Juice Healthy Chaska
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similar product to the higher-priced and featured market leader, but acceptable to sufficient consumers. Such products are often called "me-too's". Examples of Cost Focus: Many smaller retailers featuring own-label or discounted label products.
Pricing
The amount of money charged for a product or service or the sum of the values that consumer exchange for the benefits of having or using the product or service .
Skim Pricing :
Setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay high price the company makes fewer but more profitable sales Example : Electronics goods usually set high prices when launch new technology products for getting benefit for short time until another competitor comes in market Sony is best example
Penetration Pricing :
Setting a low price for a new product in order to attract a large number of buyers and a large market share. Example English toothpaste
Psychological Pricing :
Prestige pricing in which high price is charged to create a signal that the product is exceptionally fine it is used for commonly brands of cars , clothing , perfume , jewelry prices are set a few dollars or a few cents below a round number example Lays chips are price at 69cents rather than 70cents to encourage customer to think of the as less expansion 60 some odd cents
Competitive Pricing:
Setting prices based on the prices that competitors charge for similar products Example Coke and Pepsi
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Bundle Pricing :
Several producer sold together at a single price to suggests a good value example travel agencies offer vacation packages that include travel , accommodation and entertainment at a single price to connote value and convenience for customers.
Product Line Pricing :
Setting the price steps between various products in a product line based on cost difference between the products , customer evaluation of different features and competitors prices. Example : Shampoo line of P&G and detergent line of Unilever
Loss Leader Pricing :

Supermarket and department stores often drop the price on wellknown brands to stimulate additional store traffic. This pays if the revenue on the additional sales compensates for the lower margins on the loss-leader items. Example : Makro , Imtiaz Store D-mart
Elasticity of Demand
The degree to which demand is sensitive to price is called price elasticity of demand in our market of juices is very sensitive to price if price falls or increase there can be a lot change in demand same is with our product ganna therefore we are following penetration strategy if prices falls of others competitors then our product demand will also decrease and if we increase prices directly demand of our product will also decrease so for that we have to keep eye on competitors and situation of market as well
Ganna Price Strategy:

Our strategy for new product Ganna juice will be penetration pricing we will start with low price in market because here market is very sensitive in price and new competitors can easily enter into the market already exist competitors are local Ganne wala and others like nestle
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there are big difference between the prices so its better strategy to launch with low price. we will start price of Ganna is Rs.22/tin-cane 250 ml.
Price Table
Direct Competitors Frost Nestle Alwaha Juice Shezan Rani Juice Minute Made Indirect competitors 12 17.5 for 250ml 35 12 35 35 25 30 25 Prices (Rs.)
Pepsi Coke Miranda
Placing
Distribution Channel :
Most producer do not sell their goods directly to the final users between them stands a set of intermediaries performing a variety of functions. These intermediaries constitute a marketing channel (also called a trade channel or distribution channel).
Direct & Indirect Distribution :

Direct distribution is selling with out intermediaries means without wholesaler and distributor and retailer and indirect is with one or more intermediaries levels. .
Option for Consumer to Purchase Goods

Consumer can get the product by direct going to shop , through calling phone and also can get through internet it sometime depend on nature
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of product because for some product consumer has to go to the shop or outlay and for some product can get easily by sitting at home
Technology Effect ion on Distribution channel:

Technology has effected a lot on distribution channel because through internet and phone consumer can get any information of product and can purchase easily and producer can make sales directly so between consumer and producer the channels are no more effected now just due to technology consumer and producer they do not need of channels they can deal easily where ever they exist.
Ganna Distribution Channel:

we will build more intensive distribution. So that our product is available at all places. Be it a super store, a shopping mall, the pump marts, The shops at the highway, in all commercial locations. The distribution of GANNA will be such that it can be reached easily by its consumers whenever and wherever required
Promotion
Promotion is all about companies communicating with customers it is not enough for a business to have good product sold at attractive prices. To generate sales and profits, the benefits of products have to be communicated to customers. In marketing this is commonly known as promotion.
Visible Marketing :
Promotion lets the community know about your services or programs promotion strategies such as positive public relations, eye-catching displays, well-designed publications (e.g. flyers and newsletters), GANNA The Sugarcane Juice Healthy Chaska
Fall 2008
interactive web sites, aggressive advocacy, advertising, direct marketing, book sales, friends groups, contests, good media relations, public presentations, blogs, wikis, pod casts, and other new technologies.
Elements
1.Advertising 2.Personal Sales 3.Sales Promotion 4.Publicity
1) Advertising Any paid form of non-personal communication of ideas or products in the "prime media": i.e. television, newspapers, magazines, billboard posters, radio, cinema etc. Advertising is intended to persuade and to inform. The two basic aspects of advertising are the message (what you want your communication to say) and the medium (how you get your message across)
(2) Personal Selling Oral communication with potential buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close the sale". (3) Sales Promotion Providing incentives to customers or to the distribution channel to stimulate demand for a product. (4) Publicity The communication of a product, brand or business by placing information about it in the media without paying for the time or media space directly. otherwise known as "public relations" or PR.
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Advantages and Disadvantages of Each Element of the Promotional Mix

Mix Element Advertising Advantages Good for building awareness Effective at reaching a wide audience Repetition of main brand and product positioning helps build customer trust Personal Selling Highly interactive - lots of Costly - employing a sales force communication between the buyer has many hidden costs in and seller addition to wages Excellent for communicating complex / detailed product information and features Relationships can be built up important if closing the sale make take a long time Sales Promotion Can stimulate quick increases in sales by targeting promotional incentives on particular products Good short term tactical tool Public Relations Often seen as more "credible" since the message seems to be coming from a third party (e.g. magazine, newspaper) Cheap way of reaching many customers - if the publicity is achieved through the right media If used over the long-term, customers may get used to the effect Too much promotion may damage the brand image Risk of losing control - cannot always control what other people write or say about your product Not suitable if there are thousands of important buyers Disadvantages Impersonal - cannot answer all a customer's questions Not good at getting customers to make a final purchasing decision
Sales promotion Technique:

There are many consumer sales promotional techniques available, summarized in the table below:
Fall 2008
Price promotions Price promotions are also commonly known as price discounting These offer either (1) a discount to the normal selling price of a product, or (2) more of the product at the normal price. Increased sales gained from price promotions are at the expense of a loss in profit so these promotions must be used with care. A producer must also guard against the possible negative effect of discounting on a brands reputation Coupons Coupons are another, very versatile, way of offering a discount. Consider the following examples of the use of coupons: - On a pack to encourage repeat purchase - In coupon books sent out in newspapers allowing customers to redeem the coupon at a retailer - A cut-out coupon as part of an advert - On the back of till receipts The key objective with a coupon promotion is to maximise the redemption rate this is the proportion of customers actually using the coupon. One problem with coupons is that they may simply encourage customers to buy what they would have bought anyway. Another problem occurs when retailers do not hold sufficient stocks of the promoted product causing customer disappointment. Use of coupon promotions is, therefore, often best for new products or perhaps to encourage sales of existing products that are slowing down. Gift with purchase The gift with purchase is a very common promotional technique. It is also known as a premium promotion in that the customer gets something in addition to the main purchase. This type of promotion is widely used for: - Subscription-based products (e.g. magazines) - Consumer luxuries (e.g. perfumes) GANNA The Sugarcane Juice Healthy Chaska
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Competitions and prizes Another popular promotion tool with many variants. Most competition and prize promotions are subject to legal restrictions. Money refunds Here, a customer receives a money refund after submitting a proof of purchase to the manufacturer. These schemes are often viewed with some suspicion by customers particularly if the method of obtaining a refund looks unusual or onerous. Frequent user / loyalty incentives Repeat purchases may be stimulated by frequent user incentives. Perhaps the best examples of this are the many frequent flyer or user schemes used by airlines, train companies, car hire companies etc. Point-of-sale displays Research into customer buying behavior in retail stores suggests that a significant proportion of purchases results from promotions that customers see in the store. Attractive, informative and well-positioned point-of-sale displays are, therefore, very important part of the sales promotional activity in retail outlets.
Ganna Promotion Plan :

Our promotional program will make use of the following tools:-
Television Commercial We plan to advertise our drink in a very realistic manner where we will show daily life realistic people having our drinks; we will start with informative tone about the juice and its health-related benefits to the masses in our country. Most Important events that will be used in our
Fall 2008
commercials will be of Ramadan, Eid, New years, and we will give special packages on our drink during them. Since TV is an expensive medium so it will be introduced at a later stage when product will start making some sort of progress in the market through other channels We will use mostly news channel , music channel and sports channel to target the health conscious people. Radio Spots We will also present our spots in different radio channels within rush driving hours so that people who do not have time to watch television and have to drive long hours for work will also be aware of our product, quality and availability.
Newspaper / Magazines Advertisements Our launch ads will appear in leading newspapers like Dawn, The news, Jang etc which are read by the people of Pakistan on a daily basis. So that if they have skipped the radio and T.V advertisement program they can get aware of our product through news papers. After the launch, we will restrict ourselves to the youth, fashion magazines and that will be on regular basis.
Internet Placing an ad on the internet is also a useful medium to be taken into consideration. It is effective as now people have interaction to the website on regular basis especially news related website. This medium is effective yet inexpensive to be used.
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Banners and Billboards Attractive banners and billboards of our drink conveying the message of healthy Chaska, which is also our tagline, will be placed near all busy traffic signals and shopping malls.
Marketing and Advertising Budget

AFFORDABLE METHOD
AFFORDABLE METHOD
means the promotion budget at the level they think the company can afford. Small business often use this method, reasoning that the company cannot spend more on advertising than it has. They start with total revenues, deduct operating expenses and capital outlays, and then devote some portion of the remaining funds to advertising. Unfortunately, this method of setting budgets completely ignores the effects of promotion on sales. It tends to place promotion last among spending priorities, even in situations in which advertising is critical to the firms success.
PERCENTAGE-OF-SALES METHODS
The percentage-of-sales method, means the promotion budget at a certain percentage of current or forecasted sales. The percentage of-sales method has advantages. It is simple to use and helps management think about the relationships between promotion spending, selling price, and profit per unit. The percentage-of-sales budget is based on availability of funds rather than on opportunities. It may prevent the increased spending sometimes needed to turn around falling sales. Because the budget varies with year to-year sales, long range planning is difficult.
OBJECTIVE-AND-TASK METHOD
The objective-and-task methods means the company sets its promotion budgets based on what it wants to accomplish with promotion.
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This budgeting method entails (1) defining specific promotion objectives (2) determining the tasks needed to achieve these objectives, and (3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget.
Ganna Budget Method :

As Ganna is going to launch in market its first time new in tin pack so New products typically need large advertising budgets to build awareness and to gain consumer trial it require more promotion so we will use Objective and Task method because as when we are investing money in this product so in starting we can use as much money as it require to send our message to the audience
Estimated Advertising Budget:

Summary of Advertising Campaign and its Costs
As we are just entering the markets we need to launch with a little aggressive marketing in order to make ourselves recognized and take a desired place in the minds of our consumers. We will run our advertisement campaign initially for a month and will then review our plans at the end of every 6 months.
Print Media
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This includes brochures, catalogues and advertising calendars etc. The total cost allocated to this budget is Rs 5 Million
Out Door
This includes hoardings and banners
Size
60x20 10x20 15x45
Cost
Estimated budget = Rs. 3 Million
Electronic Media
This includes running commercials on Radio for the 1-month.
Radio Spots
We will be running ads on radio between drive times from 7:30-9:30 in the morning and 5:00 pm to 7:00 pm in the evening on channels like Fm 106.2, 89, 100, 101, and 103. Our spots will also appear with every time check Total budget allocated to advertisement through Radio is Rs. 2.5 Million for 1-month.
Fall 2008

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Fall 2008

PRINCPLE OF MARKETING (9033)

GANNA The Sugarcane Juice Healthy Chaska

PRINCPLE OF MARKETING (9033)

GANNA The Sugarcane Juice Healthy Chaska

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Our Vision Statement :

GANNA The Sugarcane Juice Healthy Chaska

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This will ensure:

Customer satisfaction and preference Profitable growth

Through continuous improvement of processes focused on:

Total quality Productivity Cost Effectiveness

We envision achieving this status within the next 2 years.

Our Mission Statement :

GANNA The Sugarcane Juice Healthy Chaska

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Ganna Sugar Cane juice Research :

GANNA The Sugarcane Juice Healthy Chaska

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GANNA The Sugarcane Juice Healthy Chaska

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Enviremental Forces at Macro Level are Controllable:

GANNA The Sugarcane Juice Healthy Chaska

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Political & Legal Factors

GANNA The Sugarcane Juice Healthy Chaska

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GANNA The Sugarcane Juice Healthy Chaska

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Health Awareness/ Literacy Level

GANNA The Sugarcane Juice Healthy Chaska

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Advance Machinery (Business Model)

GANNA The Sugarcane Juice Healthy Chaska

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Research & Development

Analysis of Firms Competitors

Method for Identification of Competitors :

GANNA The Sugarcane Juice Healthy Chaska

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GANNA The Sugarcane Juice Healthy Chaska

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Response 4% 14% 20% 4% 6% 24% 20% 8% 4%

Challenges and Opportunities

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Findings from Menon et al. (1999)

have shown that SWOT may harm performance. As an

SWOT Analysis of Ganna

GANNA The Sugarcane Juice Healthy Chaska

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GANNA The Sugarcane Juice Healthy Chaska

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GANNA The Sugarcane Juice Healthy Chaska

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Stages of a Product Life Cycle:

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GANNA The Sugarcane Juice Healthy Chaska

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Target Marketing / Segmentation

FACTORS OF TARGET MARKET:

What You Should Know Before Getting Started