Professional Documents
Culture Documents
Contents
Topics Introduction Explanation of Innovation Need gap analysis Fulfilling the Need Product Qualities (Differentiation) Market Situation Expected Market Size and Potential Mission Statement Vision Goal Market Trend Competitor analysis Indirect competitor Substitute Competitors Placement Strategy: Brand Name Logo Trademark FAB analysis: Quality function deployment quality statement: Market Segmentation: Artesian advertising strategy Understanding the Psycho-Dynamics of the market: Advertising objective Campaign theme Reach Frequency Media Vehicl Proper Budget Allocation Advertising Slogan USP Push strategy Promotional Materials Price Marketing Skimming: Key People with Specific Skills Physical evidence Land and Building Market entry strategy: Quantitative SWOT matrix analysis: Matching the SWOT matrix: Financial Analysis Ratios for march: Conclusion Pg. # 1 2 2 3 3 4 5 5 5 5 6 6 6 7 7 7 8 9 10 11 15 16 17 17 18 18 19 19 21 21 21 21 22 22 24 24 25 25 27 28 30 34 34
Introduction
Artesian Bread is a name that has come to signify quality and freshness in bread products. The enterprise, Artesian Bread will operate six plants throughout Pakistan. Initially we are going to launch it in Lahore having Factory in Muridkey. The Bread distribution network comprises rent 15 vehicles that deliver Artesian to more than 200 retail outlets daily, making it one of the largest distribution networks for any product in the country customers are located in major metropolitan areas, secondary metropolitan areas and rural areas. The fleet will run approximately 500KM each day to deliver fresh bread. Peshawar. Multan Karachi Islamabad Faisalabad will be our future destinations to launch our product there. Artesian Bread's management team recognized early on that to be a contender in the baking industry the company would need to comply with international processing standards. Company is about to developed a relationship with Campden & Chorlywood Food research Association, Gloucestershire, UK. The associations will work with Artesian Bread to bring it in line with globally accepted production, technology, machinery and formulation standards the hard work and with this much dedication the company will struggle to receive its ISO 9001: certificate. For purpose of standardization, the company will bring itself in line with international standards of production, technology, machinery and formulation. All the Artesian Bread plants boast of the latest machinery used in the bread-making process. They will be managed by senior food technologists with decades of experience, while those manning the machinery will be provided on the job training in congenial working conditions.
3 Taking a responsible place in society, the company is committed to the uplift and development of the society as a whole, and participates in sports and social welfare activities. We hope to continue to develop and maintain this relation in the future.
Explanation of Innovation
Our product is unique in sense that it provides with unique flavored in bread first time in Pakistan. Currently Artesian have three flavors of breads Chocolate, Vanilla Strawberry.
It is also at the same time a product for the health conscious people as well. The bread industry in Pakistan has seen many changes in the last twenty-five years. It has emerged as a small-scale bakery processing industry to numerous industrial bread making units all over Pakistan. The bread industry in Pakistan is flourishing very quickly and bread products are gaining much popularity. Bread has been accepted as a popular substitute of Rice, Naan, Paratha. .
Need GAP analysis Consumers are increasingly concerned about their health and are well aware of the relationship between nutritious food and optimal health. Various concerns have caused consumers to monitor their dietary habits closely. The growing media coverage on health, the rising incidence of health conditions (obesity, diabetes and cardiac problems), concerns over physical appearance, changing
4 lifestyle and also soaring costs of healthcare have all contributed to the demand for healthier bakery products. In addition, the aging baby boomer population has had a specific effect in increasing the demand for healthy foods. Some popular trends in the market are the introduction of low/light, functional, natural and organic products, as described below.
5 our bread is with reduced fat and carbohydrates. With the growing incidence of obesity and popularity of diets low calorie foods have gained immense popularity which is our core capability. Functional Bread In recent years, enhancement of the nutritional profile in bread products is a key trend that has gained a great deal of momentum. We will also trying to enhance the nutritional value of traditional bread products through the addition of functional ingredients, such as omega-3, multigrain, multivitamins etc. Natural and Organic BreadIncreasing health awareness and concern over the consumption of artificial ingredients have fuelled the demand for natural products. Bread products that contain all natural ingredients are likely to thrive in this competitive market. Organic bread is yet another category gaining impetus in recent times, and the products are clearly labeled to draw attention to their organic nature. We will also have a look over it. PleasureIn addition to healthier products, consumers also are purchasing products that satisfy their taste buds. The taste enjoyment factor is vital in the marketplace and we will be focusing on this more deeply. With lifestyles becoming increasingly stressful, consumers may indulge in food for comfort eating purposes. Indulgence/luxury products are becoming more pronounced as a key trend in the bread industry. Consumers increasingly seek for premium, gourmet and exotic products to satisfy their desire to indulge
6 Only 5 % population of Pakistan is using the packed bread so rest of the market is still to be captured. Here people are wiling to pay extra amount for the differentiated product. Our main focus wood be
Mission Statement
"This is a family company selling traditionally baked bread with a freshness and quality you really can taste".
Vision
Our vision is to become Pakistan's favorite bread this is underpinned by our dedication to continued improvement across all areas of the business. We are committed to developing the bread market and working with our customers, that is why we invest a lot of time and money to understand our consumer's needs.
Goal
Our goal is to ensure that important values such as quality, freshness, and service are delivered to our consumers in the 21st Century. For us this isn't just a business. It's a way of life. The task ahead is to concentrate on making the cake bigger rather than fighting for a bigger piece of the existing cake.
Market Trend
Market is currently not using up to dated technology and generally companies are interested making the beads that remain at low cost. There is great deal of competition in the market in a congested area of the market. There is a huge market available where one can hit the target market.
7 Currently, 5% of the total population of Pakistan consumes packaged bread. The major factors for such a low percentage of people consuming bread are mostly economical and cultural. Pakistani diet consists of many substitutes for bread, which are cheaper and preferred over bread by a majority of the population. The political scenario as well as the legal scenario is not posing any threat to the bread industry growth apart from the price restrictions, which actually fixed by negotiations between the government of Sindh and the committee of breadmaking.
Competitor analysis
Competitor analysis in marketing and strategic management is an assessment of the strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context through which to identify opportunities and threats. Competitor profiling combines all of the relevant sources of competitor analysis into one framework in the support of efficient and effective strategy formulation, implementation, monitoring and adjustment.
Indirect competitor
Indirect competitors of Flavored Bread are: Different cakes Biscuits Cookies Pastries, etc
Substitute Competitors
A substitute competitor is any competitor that fills the same buyer need you fill but fills it in a different way. The substitute competitor of Flavored Bread is: Dawn Bread
8 Gourmet Bread Cakes and bakes Different bakery breads Vita Bread Bunny
Placement Strategy
Brand Name Trademark Logo
Brand Name
Flavored Bread a name that has come to signify quality and freshness in bread products. The purpose of the research is to analyze the current state on the baked goods market. The main tendencies and forecast the possible market growth. Prior to the establishment of flavored Bread, will become largest producer of bread products is the public sector. However, this sector could not cope with the demands of the consumer and this when, perceiving a change in the eating habits of Pakistanis, Flavored Bread will envisioned. Flavored Bread built-up a reputation for freshness, quality and taste. Creating awareness plus a demand for bread products, and started its production in Lahore.
Logo
Trademark
We have registered our brand in ACCP office with registration number 89554. Now we have legalized it. We have registered our company by the name of ARTESIAN & Co. We will give step by step guide to SMEs in Pakistan about protecting Trademark in Pakistan as well as abroad (especially for exporters), its initial protection tenure renewal able till existence of the SME, cost of registration and offices where applications can be submitted. We will also highlights that mostly applications are rejected on the basis of it being a generic name (like using trademark Bread to sell Bread), or a descriptive term (like the mark SWEET for marketing chocolates), or a deceptive trademarks (e.g. marketing margarine under trademark featuring COW), or a shape of product, which should be avoided. We also provides check list for SMEs to consider, prior to selecting a Trademark. Information regarding popular types of trademarks i.e., service marks (like Business Plus), collective marks certification marks well known marks.
Distribution:
10 Artesian distribute on network will be indirect and comprise of over two hundred company owned vehicles in a distribution system spread all over Pakistan. On a daily basis, we will distribute our goods to over a 200 retail outlets. We will distribute in almost all the major metropolitan areas, secondary metropolitan areas as well as the rural parts of the country, later.
Channels of Distribution:
Channels of distribution will be intensive because Artesian will operate six plants throughout Pakistan. The Bakery's distribution network will rent more than 50 vehicles which will deliver baked products to more than 200 retail outlets, and will making it one of the largest distribution networks for any product in the country customers are located in major metropolitan areas, secondary metropolitan areas and rural areas. We will develop a manufacturing process utilizing state of the art bakery machinery combining it with locally developed equipment. This unique combination resulted in products which are closer to the actual taste and form that we make at home.
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Benefits: Benefits of Flavored Bread will be what the customer gains by using the product. Selling on benefits thus sells to what they really want, not what they say they want or what you want to sell. With benefits, consumer will get them excited and emotionally engaged. Attributes: Attributes are intangibles that are associated with the product, not the person (and hence are not yet benefits) Falvored bread have many attributes whilst others have far fewer. Our product specifications will be according to the customer needs. Flavored bread will be useful for stepping-stone between the physical product and the benefits that the person actually receives and can be used in a sales pitch as such.
12 Bread may be made entirely of whole-wheat flour or in combination with white flour. A mixture of white and whole wheat flours makes a lighter loaf than whole wheat alone, but the nutritive value increases as the increased amount of whole wheat flour is used. Liquid: Water, potato water, milk or other liquids may be used in making bread. The bread will be whiter in color and have greater food value if milk is used. Both milk and potato water prevent bread from becoming stale so rapidly as bread in which water is the only liquid. Yeast: Because yeast is very small plants, it must be kept fresh and active. Yeast may be bought in dry granulated form or compressed cakes or grown at home in the form of "starter" or "liquid yeast". Fat: The fat in dough makes the bread tenderer and increases its keeping qualities. Any high quality cooking fat is satisfactory. Sugar: Yeast plants grow quickly in the presence of a small amount of sugar as it is food for their growth. A golden-brown color will be given to the crust by the use of sugar. Salt: Gluten is made stronger by the salt. Flavor is also improved.
Quantity: 2 3/4 c. liquid 1/2 to 1 ounce (1 to 2 packages or cakes) yeast 3 tbsp. sugar 4 tsp. salt 2 tbsp. fat
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About 9 cups sifted hard-wheat flour. (More all-purpose or soft wheat flour will be needed.)
Market Segmentation:
Market Segmentation is an effort to increase a companys precision marketing. A market consists of a large identifiable group within a market with similar wants, purchasing power, geographical location, buying attitude, or buying habits. We have done the segmentation on the basis of the following variables:
Demographic Segmentation
Age, Income, Social Class & Occupation
Demographics Gender: flavored bread can be use by males and females as well Income: Flavored is basically for middle upper class people and it will be easily affordable for all type of these people. Age: Flavored bread will be useful at every stage of life. Young generations and older ones can also use this delicious bread Geographic Area: Flavored bread is located in Lahore and it is easily available in all super stores and general stores. Psychographic: flavored bread is according to the customer needs and demands. It consists of natural flavors like chocolate, vanilla and strawberry.
Behavioral segmentation
Occasions, Benefits, Usage Rate & Attitude
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Usage rate Flavored bread is particularly use by young generations who are very fond of flavors like generation X they love chocolates and different flavors products. Usage rate will be high because of these young generations. Benefits: it consist of Vitamin D and A so it is quite notorious and have energy as well Targeting After segmenting the market we are targeting the following segments:
Income Groups We will be targeting all income groups who should afford easily. Flavored bread, being an established brand with mass appeal and cost effective pricing, it will not discriminate between income groups. Youth A huge potential market for this bread it lies with youth whom we will be specifically targeting road shows to be held as part of the Add Color campaign. Travelers It is also available in mini-size factor, so it will be highly convenient to carry along during large journeys or trips. This is why it will be targeted at travelers as well.
15 Positioning is what the customer believes about your products value, features, and benefits; it is a comparison to the other available alternatives offered by the competition. These beliefs tend to based on customer experiences and evidence, rather than awareness created by advertising or promotion. Marketers manage product positioning by focusing their marketing activities on a positioning strategy. Pricing, promotion, channels of distribution, and advertising all are geared to maximize the chosen positioning strategy. Basic strategies for product positioning that we have used: 1. By attribute or benefit The flavors that make you feel different. It tastes great and that it is rich.
2. By use or application The different tastes from the ordinary bread. Use it with butter or eat the simple loaf.
3. By user Every one who wants to have a different taste may have it. 4. By product or service class Artesian bread will competes as an alternative to the ordinary breads. It is positioned as a lower cost and healthier alternative to the ordinary bread, while it provides better taste and healthy ingredients. 5. By price or quality Artesian wants you to believe that their flavor bread is of the highest quality.
16 Positioning is what the customer believes and not what the provider wants them to believe. Positioning can change due the counter measures taken at the competition. Managing your product positioning requires that you know your customer and that you understand your competition; generally, this is the job of market research not just what the entrepreneur thinks is true.
Advertising strategy
There are two major parts to an advertising strategy.
1) Assessment.
What's going on in the market, whats the history, the current situation? What are the major trends in the market? What's the future looking like? (With the product. With consumer attitudes.)
2) Action
What should your customer do about the most significant opportunities or problems presented by the situation? What should to do with the brand? With direct marketing. With the way the company is positioned.
A SWOT analysis helps in figure out the "What's going on" part. And figure it out quickly. Artesian Advertising Strategies are: A) Position the product: "Because we are worth it."
17 B) Investing in creating a stronger brand personality: It will base on an upscale, character that people will aspire to associate with. C) Using the Internet / Web site: Currently Artesian dont have any Web site but it will have an internet asses and web site in future to target and sell younger buyers, new buyers, before they have established a product.
You can also see that the ad strategy deals with the big strategic issues:
Branding, Positioning, Media.
Artesian is a new in the world of breads because it is just not that ordinary bread which has that old milky or simple bread taste. It is different from the traditional breads because it has a flavor. We have just launched Artesian in Lahore and we want it to be in every house, every restaurant, where there is its need. And it does so with simple action statements describing what you intend to accomplish.
18 But besides Consumer Involvement Theory (CIT), there are likely other issues, perhaps more important issues, such as why people buy the other brand bread: People may think that the ordinary bread is of higher quality or more good in taste or more healthier products. Or perhaps it's not so much what people think about competitors, but what they think about our customer: "I don't know if it will be available in the market easily." Psycho-Dynamics is everything. Its all that stuff rattling around between the ears of likely customers. The thoughts, feelings and ever-changing prejudices that influence purchase decisions. That's the Psycho-Dynamics of the market. And it is always changing. Knowing exactly what you want the advertising to accomplish.
To promote the brand. Major uses include television, radio, and newspaper advertising and banners ads on different squares (chowks) in the city. This type of communication is conventional in nature and is considered impersonal to customers.
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Advertising objective
Artesian has clear and specific aim of an advertising or commercial, such as To earn profits To compare, To gain attention, To inform, To persuade, or To remind our customers about our product.
Campaign theme
The Currently campaign themes of Artesian is developed with the intention of being used for a substantial period of nine months but it might be short lived or extended due to factors such as being ineffective or market conditions.
Reach
60% of the television viewers, 70% of radio users, 60 % of radio users and 90% of news paper readers should be exposed to the ads or commercials which are on media and media schedule within a period of four months in the big cities of Pakistan such as; Karachi, Lahore, Islamabad, Faisalabad, Peshawar.
With the time and market conditions these ratios can be reviewed according to the needs.
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Frequency
The frequency in the beginning will be high. It will keep high for some months for the period after the soft launch and later it can be decrease. There will be changes in the frequency with the time and market conditions.
Media Vehicle
The print and electronic medium employed in an advertising campaign used by Artesian is as follow.
ELECTRONIC MEDIA
TV PTV GEO TV AJ A-TV ARY RADIO FM 100 FM 106.2 89 FM FM 101 FM 99 NEWS PAPER THE NEWS DAWN JANG KHABRAIN DAILY TIMES NAWA-E-
PRINT MEDIA
MAGZINES YOUNG WORLD SUNDAY MAGZINE AKHBAR-EJAHAN US MAG BILLBORD ALLAH HO CHOWK KALMA CHOWK MUSLIM TOWN MUR MAZANG CHOWK MALL ROAD MM ALAM
All these things give Artesian advertiser are provided with an idea of the market conditions. Thus, how best to advertise within these conditions. Once this analysis of the market situation is complete, an advertiser has to decide how the money dedicated to advertising is to be allocated.
MAGZINES COST PER AD YOUNG 35000 NEWS PAPER ESTIMATED WORLD COST PER AD SUNDAY 55000 50000 THE NEWS DAWNMAGZINE 65000 JANG 50000 35000 US Total Budget Budget 170000 120000 Total
BILLBORD ALLAH HO CHOWK KALMA CHOWK MALL ROAD MM ALAM ROAD DEFENCE Total Budget
COST PER AD AND SIZE 40000 100000 100000 70000 60000 370000 22
Slogan
Artesian Discover a Healthier Slice Of Life!
USP
Artesian The bread which build strong bodies and which has the flavor of your choice.
Push strategy
A push strategy is used by Artesian because it is a new product which is unknown to the consumer. As there is no consumer demand in the product
23 launch, the product and the information are "pushed" to the consumer by distribution and promotion.
Promotional Materials
Some of the promotional materials are as follow:
Price
24 Price is not just the number or tag on the product. But it is the most important thing.
Marketing Skimming:
Artesian is using Price skimming strategy. It is a pricing strategy in which a marketer sets a relatively high price for a product or service at first, and then lowers the price over time. It is a sequential version of price discrimination and yield management. It allows the firm to recover its sunk costs quickly before competition steps in and lowers the market price.
Psychological Pricing:
Artesian is selling at PRS.50. so they are not using the Psychological pricing currently. Retail prices are often expressed as odd prices: a little less than a round number, e.g. PRS19.99 instead of $20. Psychological pricing is a theory in marketing that these prices have a psychological impact that drives demand greater than would be expected if consumers were perfectly rational. Psychological pricing is one cause of price points.
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Customer sensitivity:
Customers are very sensitive and they want fresh bread in the breakfast and if they dont get it then they might dislike the product because of the availability.
26 We have worker who have decades of experience in bread industry. We have contracts with them to work with us and on our formula.
Physical evidence
The site for the factory is in Muridkey where we can visit to see the desired place. Exact address is 10 km Sheikhupura road GT road Muridkey.
27 We will first launch our product to the discounted shops so that we can check our products demand in market. This step tells us about the weekly sales of our bread.
Sponsoring Concerts:
We will arrange concerts for the enjoyment of people and also aware them about our product. We will bring the stars of people close to them. Again the purpose is same, to create awareness about our product.
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6. publicity:
Publicity is the important factor to create awareness about any product. We will also do publicity of our product. We will use newspaper, T.V channels, and also direct selling. We will also use radio for publicity. This steps will helps us to improve our sales. On T.V channels we will choose that channels which are famous in ladies like, GEO TV etc. and in newspaper we will choose ladies magazine for publicity.
External opportunities:
1. Creating a healthy product that provides options in flavors and relating to diet value will plot new regulars
29 2. Healthy component will allow us to break into the diet consumer 3. Being a new company will provide us the chance to set up thrill
Internal strengths:
1. Our ability to produce options keeps more consumer interest and needs met. 2. Our new production technology will enable us to mass produce products more efficiently and quickly than other old companies. 3. Our new taste will attract many such type of consumers who are taste changer.
Internal weakness:
1. The more flavors we create, the more production costs will increase. 2. New technology and production methods will require greater preparation and back-up wants. 3. At starting we will not have as such trained staff that has such a market experience.
Opportunities
1. Creating a healthy product that provides options in flavors and relating to diet value will plot new regulars 2. Our new taste will attract many such type of consumers who are taste changer
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strengths
1. Our ability to produce options keeps more consumer interest and needs met 2. Our new production technology will enable us to mass produce products more efficiently and quickly than other old companies.
Weakness
1. The more flavors we create, the more production costs will increase. 2. New technology and production methods will require greater preparation and back-up wants
opportunities
1. Creating a healthy product that provides options in flavors and relating to diet value will plot new regulars 2. Our new taste will attract many such type of consumers who are taste changer 3.
Weakness
1. The more flavors we create, the more production costs will increase
2. The more flavors we create, the more production costs will increase
weakness
1. The more flavors we create, the more production costs will increase. 2. At starting we will not have as such trained staff that has such a market experience
Threats
1. There are Large companies who have brand loyal customers providing the market with not exactly similar but milky and other breads. 2. there is open market everywhere means any new company or existing ones can start the same production who may have more experience or
Financial analysis
Projected startup cost-onetime expense Asset land Price Detail
20,000,000 Land located near Mureedkay, total area 6 acres. at front there is G.T road. At right and left side there is garments and other factories. 125,000,00 We will construct a building which contains 4 storeroom . and 2 big storeroom for plant and machinery.
building
Plant &
75,00,000 Plan and machinery for production of bread and packing and Ingredients Quantity(kg) Price (Rs) machinery printing. flour .50 14 furniture 10,000 Furniture require for office. sugar .10 2.5 Eggs(piece) salt Flavor(chocolate) packing Total Profit margin (50%) Total price/ pack 4 .10 16 1 3 1.75 38.25 19.375 58
32 Revenue & cash flow projected with estimated sales forecasted. Price/packet of bread
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INCOME STATEMENT
June
July
August
Sales Revenue(lacks)
PKR 20.00
PKR 22.50
PKR 30.00
PKR 15.60
PKR 17.55
PKR 2.34
Gross Profits
PKR 4.40
PKR 4.95
PKR 27.66
Marketing Expense
PKR 11.76
PKR 11.76
PKR 11.76
PKR 0.15
PKR 0.17
PKR 0.22
Depreciation Expense
PKR 0.25
PKR 0.25
PKR 0.26
PKR 12.16
PKR 12.18
PKR 12.24
-PKR 7.76
-PKR 7.23
PKR 15.42
less tax
PKR 0.09
PKR 0.07
PKR 0.15
-PKR 7.85
-PKR 7.30
PKR 15.27
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BALANCE SHEET Current Assets: Cash Total Current Assets Land & Buildings Machinery and Equipment Furniture & Fixtures inventory PKR Total Gross Fixed Assets Less: Accumulated Depreciation Total Assets 40,010,000.00 PKR 25,000.00 PKR 40,285,000.00 PKR 40,005,700.00 PKR 25,000.00 PKR 40,300,700.00 PKR 40,001,400.00 PKR 26,000.00 PKR 40,305,400.00 June PKR 300,000.00 PKR 300,000.00 PKR 32,500,000.00 PKR 7,500,000.00 PKR 10,000.00 July PKR 320,000.00 PKR 320,000.00 PKR 32,500,000.00 PKR 7,496,000.00 PKR 9,700.00 August PKR 330,000.00 PKR 330,000.00 PKR 32,500,000.00 PKR 7,492,000.00 PKR 9,400.00
Current Liabilities: Taxes Payable Other Current Liabilities Total Current Liabilities Total Liabilities capital net loss/profit Total Liabs. & Stockhldrs' Equity
June PKR 8,500.00 PKR 0.00 PKR 8,500.00 PKR 8,500.00 PKR 41,061,500.00 -PKR 785,000.00 PKR 40,285,000.00
July PKR 7,300.00 PKR 0.00 PKR 7,300.00 PKR 7,300.00 PKR 41,023,400.00 -PKR 730,000.00 PKR 4,030,700.00
August PKR 14,200.00 PKR 0.00 PKR 14,200.00 PKR 14,200.00 PKR 38,764,200.00 PKR 1,527,000.00 PKR 40,305,400.00
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Current ratio:
Total Current Assets Current Ratio = ____________________ Total Current Liabilities
Conclusion We are quiet confident to have a successful launching of the bread in the market.