ENVOIRMENTAL SCANNIG

1. POLITICAL FACTORS:

In Pakistan our political condition is not so good. There is instability of

government rules in some areas of Pakistan due to bad law and order; many
companies are leaving the Pakistan and transferring their investment to other
countries due to unpredictable atmosphere i.e. tullow oil. Government is trying its
best to overcome these problems but it will take time. So recent political
conditions of Pakistan is not suitable for our project

2. LEGAL FACTORS:

Fuze Company deals with energy drinks, i.e. juices and tea. These products are
purely halal. All material used in the production of these products are according
to the rules and regulations of ISLAM. There are not any such laws which
prohibit our project. So this will be beneficial to invest in Pakistan.

3. ECONOMICAL FACTORS:

GDP of Pakistan decreased in the current situation, GDP growth for fiscal year
2008-09 recorded as 2 percent against the budgetary target 5.5 percent. It
showed 2.5 percent negatively. Inflation rate is so high and the unemployment
rate is also so high. So due to instable political conditions, economy of Pakistan is
also affected. Due to these factors COCA COLA has earned low profit as
compared to previous years. Net foreign investment in Pakistan fell 42.7 percent
to $2.21 billion in the first 10 months of the 2008/09 fiscal year compared with
$3.86 billion in the same period last year. So it is not a good decision to invest
more in Pakistan.

4. CULTURAL FACTORS:

Pakistani culture is affected by globalization and the media. Now Pakistani

culture is going to change as western. A major part of our population is habitual of
traditional tea (black & green). They prefer most to this tea than cold tea which
we are offering. The culture is going to change but it will take time to change the
preference of tea. So Pakistani culture doesn’t suits to our white tea, because it is
available in the form of energy drink.
5. COMPETITIVE ANALYSIS:

In Pakistan, there is no direct competitor of our white tea because no company

offered such type of tea. TAPAL offered cold tea recently but it faces lot of
problems which become the cause of there product failure. Unilever also have
lipton cold tea in its product line but they don’t launched it in Pakistan now. So
lipton can also be a competitor in future.

CONCLUSION:

According to the above analysis the legal and competitive factors in Pakistan are
suitable for the fuze beverage, but the current political and culture conditions of
Pakistan are not suitable for the fuze beverage so we decide that we can not
launch our product in this situation because of this lot of risk factor involve that
become the cause of product failure due to which our company suffer heavy loss.
Although in Pakistan the arm forces doing operation in NWFP against terrorism
that’s why no one country is willing to make investment in Pakistan

Another drawback is that people of this country mostly prefer to take traditional
tea mean black & green tea, so this situation takes time to switch them from
traditional tea to cold tea (white tea). Tapal also launched cold tea but it faces
failure due to low demand of cold tea. Unilever has also lipton cold tea in their
product line but they don’t launched it due to negative feasibility report.

PREDICTION:

In Pakistan the political conditions is unpredictable due to mismanagement of

government. In many areas of Pakistan some military operation affected the
political and economical condition of Pakistan. Due to these factors the political
and economical condition of Pakistan is not predictable. If we control these
factors which affects the political conditions and economy of Pakistan then
Pakistan will be preferable to invest.

In USA, people are health conscious. They prefer most to quality and brands, and
always give importance to readymade goods because of their easy use. But in
Pakistan people adopt traditional ways for acquiring food. They don’t give
importance to packed food or branded food. But preferences are changing day by
day and people are becoming aware to the branded products and their quality. But
it will take some time to get maximum attraction of the population.
MODES OF ENTRY:

We select IMPORTS as a mode to enter in to any country. Importing is basically

the easy approach to going internationally & globally, which involve only selling
of products

WHY WE SELECT THIS MODE:

1. COST EFFECTIVE:

We select it because it is a simple mode to enter in to any country and it is the

initial stage of introducing the white tea in Pakistan due to this we save our cost.
Our company is operating in different countries of the world but all the countries
still doing importing of fuze drinks from home company because it the strategy of
home company to avoid from heavy loss that’s why company can’t adopt any
other mode.

2. LESS EXPENSIVE:

If company adopt any other mode like franchising, licensing etc than lot of risk
factors involved like transfer of technical know how and expensive. The
operations of our company are on limited scale on this basis we adopt import
mode and it is beneficial for our product because it is less expensive.

3. SPEEDY ENTRY:

Imports are easy and fast mode to enter in any market, because in imports we just
get the products from the production department which is located at any other
country, and distribute our product for sale purpose. By imports we can easily
distribute our products effectively and efficiently to the whole market.

4. LESS RISKY:

Imports are less risky because we involve minimum operations for the business.
We don’t transfer our production department to the host country. So in case of loss
or failure of product, we can easily windup our business. So the risk factor is very
low in imports.

LOCATIONS:

We will launch this product in the main cities of Pakistan

o Islamabad
o Lahore
o Karachi
SEGMENTATION:

1. INCOME LEVEL:

We will choose this segment for our product because of its price that is 1.5$. So
the income level which we will target
i. upper class
ii. upper middle class
iii. middle class
2. AGE:

White tea is a health conscious product that is used for the good health. So it can
be used by any gender and any age group. So we will target the segment for this
product which include
a. children
b. youngsters
c. elders

3. PSYCHOGRAPHIC:

In psychographic, we check the values, attitude and life style of the people. So
we will choose this segment because the psychographic factors of these countries
are favorable for white tea. The lifestyle and attitude of these citizens shows that
they prefer most to those products which are ready to consume. White tea will be
available as a drink. So it will be attracted by this segment.

MARKETING PROMOTION:

For the market promotion of white tea, we will adopt market pull strategy.
Because coca cola is a world famous company which deals with beverages
products, as a subsidiary company of coca cola, it will adopt the marketing
process of coca cola. So we advertise white tea as the product of coca cola.
So we will use the marketing channels as
i. T.V
ii. News papers
iii. Internet
iv. Flyers
v. billbords
DISTRIBUTION CHANNEL:

White tea is the product of Fuze Company which is the subsidiary company of
coca cola. As the parent company coca cola supports fuze for its marketing and all
others business operations, so in Pakistan we will use the distribution channel of
coca cola. Coca cola has its distribution centers and vehicles for the distribution of
its products in the different cities. Coca cola has divided the whole area of
Pakistani market into different regions and it has a specific distribution center in
that region

EXPANSION PLAN:

After the successful launch of white tea in Pakistan, if we found the desire
demand of white tea in Pakistan, we will be willing to establish our production
department in Pakistan to meet the rapid demand in Pakistan.

Coca cola is already successful in Pakistan and they have their best channel of
distribution and production departments. So we will transfer our technology and
production equipment in Pakistan for cheap production of white tea and other
products that we can launch in future.

As the future demand will increase and many competitors will come into the
market. Fuze will start it whole production here due to cheap labor and feasible
factors such as govt. policies. As the fuze will move to other neighboring
countries in future so it will also exports its product to that countries. So the
production department in Pakistan can be used to meet the demand of neighboring
countries at initial stage.