Professional Documents
Culture Documents
Background
The parent company of Fresher is Al-Hilal industries. Al-Hilal was established in
1960 and they launched their first production in 1962 that was Sultan
Banaspati cooking oil and after about 40 years they have now shifted in
production of juices. The main policy of Al-Hilal industries is PULL policy rather
than PUSH policy that is they want to place their product on shelves first, they
want maximum placement and then advertise their product. They have
placement is Lahore, Karachi, Islamabad, Faisalabad and Multan. They want
focus branding as their main focus is on group A people. Al-Hilal doesn't
compromise on quality as per its name Hilal means pure and in near future
they are planning to launch water called Blue, rapsel oil and carbonated fruit
drinks called kooler. Introduction: Fresher is a new product launched by Al-
Hilal industries. Other industries like AL-HILAL FOUNDRY & WORKSHOP (PVT)
LTD. AL-HILAL VEGETABLE GHEE MILLS (PVT) LTD.
Situational analysis:
The situational analysis covers the following key areas:
Current Products
Current Target Market
Current Distributor Network
Current Competitors
Financial Analysis
External Forces
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Current Products
Product attributes
Packing:
The juice packed in the quantities 500ml. Packaging is done on imported
machinery as it considered being highly sophisticated and hygienic.
Storage:
Products will be stored in cool dry store before distribution because it is a pulp
of juices and affected from sunlight and moisture.
Product Shelf life:
Fresher Juice in 500ml serving packs have better shelf life and have shelf life of
less than 6 months.
Packaging Material Used
• Health and safety are directly linked with the packing material used and
people are much concerned about it. That is the primary reason why packaging
has been used by Al-Hilal.
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Features
Product Strategy
Nature of the product:
Everyone has their own ideas about replacing essential
body fluids, vitamins and minerals - whether it's after
exercise or just a tiring day at the office. Fruit juice is still
one of the best ways to refresh the body's essential
nutrients and it's a natural source of energy. Common
People especially young generation is inclined to have ready to
consume drinks; in addition hotels, hospitals are also expanding
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day by day where juices could be marketed successfully.
Give values to the customers to delighting them.
Do whatever it takes not to satisfy the customers but retain the
customers.
In order to accomplish this objective, the company has established
sales, marketing and support teams.
Fresher juices
Flavors available:
Orange
Strawberry
Guava
Falsa
Peach
Mango
Pricing Objectives:
The objectives of Fresher Juices for pricing are as follows:
Pricing Strategy:
Al-hilal when introduced fresher juice in the market set the
Price at Rs. 40/- while the competitive price was Rs. 35/-. This above
average price was due the better quality product and a new Juice
Brand by a well knows Juice Company and Industry giant like:
To achieve a target return.
To maximize profit.
Stabilize prices to meet competition.
Market share Leadership to increase the market share.
Product Quality Leadership to give the quality to the customers.
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Factors Affecting the Price of Fresher juice:
The following are the some factors that are affecting the price of Fresher Juice:
They are using the expensive technology.
The transportation , roads are not in a good condition
The unstable politicians, which have positive and negative effect on the
price.
The labor cost is low in Pakistan as compare to the others.
The advertisement is increasing the cost price of it but this is necessary.
Due to increase in taxes the price of them is also increased.
They are using good quality packing which increase their cost.
Distribution
The distribution network includes the distributor then the wholesaler and in
the end the retailer. Again benefits are provided on the achievement of the
sales targets and timely delivery of products. In some cases products are
provided to big retailers by the distributor itself but mostly it is being
purchased by the retailer from the wholesaler.
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The Channel of Distribution:
Market
Local seller
Whole seller
Fair Price Shops
Distribution Strategy:
Through the heavy advertisement the distribution can be affected because the
distribution mainly depends upon the demand. In the Fresher they are using
the above channel for distribution the product.
Some of people who wants to purchases very heavy amount of
the Fresher juice, they come to the company directly and buy which
is required.
The whole seller are purchasing them for the resale able purpose
but less than the first once.
Distribution Areas:
Distributing in major cities such as:
Lahore
Karachi
Islamabad
Storage:
Company has the stores to store the juice packets before the juice goes
for distribution.
Demand situation:
Company always has the backup store juice to fulfill this demand.
Handling order:
To deliver the right quality and quantity of the Fresher juice, they are
working on the daily bases. They have transport to achieve all the things
according to their product. For distribution they are always have the
future planning.
Promotion
Al-Hilal is using following mediums for promotion of Fresher juice:
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Advertisement boards
Television
Radio
Newspapers
Broachers
Internet
Doing these things according to the plans, for example
Now wants to advertise the product more through media by using the
famous people
Large discount for the people who purchase the Fresher juice directly
from the company and in large amount
Giving free samples to the people who visit the company.
Stale operations are functioning in which they are giving the free testing
samples
Target:
The target fragments for Fresher the people using juices instead of the
soft drink like Coke and Pepsi.
External forces
Trends, events, conditions that are external (usually uncontrolled by the
company) that may impact the company’s products or the market:
Areas of consideration:
Environmental
social and cultural
demographic
economic
technological
political
legal, regulatory, ethical
Environment:
The interest is in environmental trends and events that have the potential
to affect strategy. This analysis should identify such trends and events and
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the estimate their likelihood and impact. There is no control on
environment so it effect the products of specially juices.
Socio cultural:
Company’s concern with current or emerging trends in lifestyle, fashions,
and other components of culture and there implications these represent
the opportunities and threats according to the market an products.
Demographic:
Demographic trends affect the market size of the industry (growth rate,
income, population shifts) these trends represent an opportunity or a
threat so it is also affected.
Economic :
Economic trends have an impact on business activity (Interest rates,
inflation, unemployment levels, energy availability, disposable income, etc)
that also impact the company’s products and the market.
Technological:
The existing technologies maturing and technological developments and
trends are affecting the industry product.
Political:
Government bureaucrats able to carry out decisions, On the basis resource
allocations made, the bureaucracy facilitate or retard the development of
the organization that are affecting the industry product and market.
legal, regulatory, ethical:
Changes in regulation are possible, their impact be on industry, tax or other
incentives are being developed that might affect strategy development.
Marketing analysis:
The company’s strategic planning is exactly in accordance with the mission and
goal of the company. The process of developing and maintaining a strategic fit
between the organization’s goals and capabilities and its changing marketing
opportunities. It involves:
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company mission, setting supporting objectives, designing a sound business
portfolio, and coordinating functional strategies. The company’s marketing
strategic objectives are as follows:
• Maintain positive, steady growth each quarter.
• Experience a growth in new customers who are turned into long-term
customers.
Customer driven marketing strategy:
Customer driven marketing strategy refers the strategy focusing the customer
values and customer satisfaction. Company’s main purpose is to deliver the
maximum benefit to its customers in minimum cost. In this regard company
carries out following steps for its product and for its customers.
• Market Segmentation
• Market Targeting
• Market Positioning
Market stability:
Marketing strategy is to promote the end result. Most of the time, customers
want to know what the end result of buying product of service is going to be
like. So gives the best quality to customers remain the market stable.
Competitive analysis:
In this analysis the company see that how can they take edge over their
competitors. As far as the competitors of Al-hilal are concerned there are
many competitors of Al-hilal in Regular fruit juices. Company is getting edge
over its competitors by following these tact and steps;
• Fresher juices are offered at normal prices and give best quality as compared
to our competitor.
• The Fresher has edge over its competitors with best quality; penetrate the
market and achieving targets to attract the customers.
• The retailer earns more profit from company by selling more product analyze
• Fresher juice comprises of 32% original pulp of fruits while Nestle juices are
called nectar juice (that which is manufactured with artificial flavors)
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1).Vivo Juice
2).Pulpy Orange
3).Slice Mango
6).Shezan Juice
7).Rani Juice
Vivo Juice:
Vivo juices are considered as the main competitors of fresher. Vivo juice
jumped in the market and introduce same flavor as fresher does. They
introduce flavors (i).Mango (ii).Guava (iii). Strawberry (iv).Orange. But not
introduce Peach & Falsa yet.
The price of vivo juices is same as the prices of fresher just because of capture
the market. So their prices are also 40/- Rs.
Ingredients:
Purified water
Mango pulp
Sucrose
Acidulent and Vitamin C
Free From preservatives
Artificial flavors’ & colours
Pulpy Orange:
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Pulpy Orange launched by Coca Cola Company last year that has become most
popular drinks in Pakistan. Because of coca cola quality and brand. They have
introduced only one Flavor in their fresh drinks which is Orange and used
orange pulpy in it.
Ingredients:
Filtered water
Concentrated apple juice
Ascorbic Acid (Vitamin C)
Slice Mango:
Pepsi launched their juice line. Named as “Slice”. They only introduce Slice
juice in the Mango flavor. Their price is also low then other juice
manufacturing concerns as slice price is 20/-Rs. With small paking of250 ml.
Ingredients:
Filtered water
Concentrated apple juice
Nestle Juice:
Nestle encourages the consumer response to Nestle Orange Juice that was
launched in 1996, the flavors of nestle juices was expand with the introduction
of Mango flavor, Orange flavor. Consumer response to these new flavors has
been unbeat and is expected to gain further.
Red Grape, Pineapple, Chaunsa, Guava, Simple Mango, Mix Fruit Juice
Siprus Juice:
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Siprus was introduce their fresh juice last year. The company name
which was introduce Siprus Juice is “Pure Foods Company (Pvt.) Ltd. They
introduce their only one flavor which is mango.
Ingredients:
Mango Pulp
Purified Water
Sugar
Stabilizer Citric Acid
Ascorbic Acid
Artificial Flavor
Shezaan Juice:
Flavors
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Rani Juice:
Rani juices are introduced to compete the market. They launch
their products in the flavor of Mango, Orange etc.
Big Apple
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Competitors Analysis
Facility
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Nestle 70 %
Shezaan 80%
Fresher 50%
Pulpy 50%
Rani 35%
Salice 45%
Siprus 20%
Vivo 20%
Fresher Juice
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SWOT ANALYSIS
Strengths
Capacity Of plant.
Main weakness of the company is capacity of plant. Company does not
fulfill the requirement of product in the market as compared with their
competitor “Shezaan” mostly in summer season.
Distribution is weak:
Companies distribution is weak because of fresher is available only in big
cities and not properly available in big cities. In big cities fresher is available
only big store or Marts etc.
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As Shezan juices have great perception value in minds of customers so
while competing in the market so people has no awareness about fresher
because newly launched .this is also company’s weakness.
Sugar Free:
As compared with other companies most of companies gives sugar free
juices but fresher does not provide sugar free because of their pure quality. If
they try to create sugar free their quality become low.
Opportunities
Juices market expands very fast .A new research proves that in future (2012)
every person use 85.5 liters juices per years.
Threats
High Taxes
Al-hilal Company’s major threat is that it is facing the high tax rates ranges
from 17% to 18%.
Competitors prices
The competitors prices against fresher juices is comparatively low due to this it
is a competitor’s price threat facing by these juices.
Maximum sale of product is in the season otherwise low sale.
Increase in competitors
There are a large number of competitors which are increasing competition in
the market.
High packaging cost.
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Due to sophicated packing of al-hilal juices it is bearing a high cost.
Distributi on Strategies:
· This product is distributed through authorized distributors, who are
selected on a tough criteria, i-e qualification, previous experience of the
same field, distributor’s storage place which should be neat, clean and up
to the mark, his motor vehicle etc.
· Proper planning by following demand and supply rule carries out
distribution. Also the distribution strategy of the competitors is
considered.
· Inventory level of juices in the god owns of the distributors is always
kept more than demand so as to fulfill the demand of potential
customers.
· Fresher juices are distributed to all the “A” class superstores of high
traffic markets of posh areas.
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For example in case of Lahore the areas of high availability
are Model Town, Liberty, and Anarkali.
Geographic’s:
The fresher juice geographic target area is currently Lahore. We are supplying
our product to all area of the Lahore. We have further divided the areas of
Lahore into 4 zones.
A zone includes Gulberg, M.M Alam road, Defence
B zone includes upper Mall, Wahdat road, model town
C zone includes lower mall, Allama Iqbal Town, Sabzazar Scheme
D zone includes Multan road, Sakeem mor, Allama Iqbal town
Demographics:
There is an almost equal ratio between male and female and also kids.
We are focusing:
Kids
Youngsters
Mature
Old age persons
Channel management:
Fresher has lot of control over the channel
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In case of fresher to Authorized distributor to retail
shops (defined territory of distributor)
Fresher assigns a particular territory.
Distributor under an agreement.
Positioning Strategies:
We want to put an image of our product in the consumers mind
as compare to competitor’s product. We want to target the high school,
college and graduate students and government sectors that have to work
hard and need to “Fresher juice” them in an instant.
Targeting:
We will target the following segment:
Mostly youth generation
Communication Strategies:
Promotion:
Actually the promotion is a first step
when we are launching a new product,
but we make its strategies in last. We
want to make a good image in the mind
of customers, so that they will buy only
our products.
Distributors Review
To assure the availability of its product “Fresher juice” juice has
established effective network of registered dealers. The main target of these
juices is Lahore and all over Pakistan.
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The end consumer would then purchase “Fresher juice” from the retailer. The
distributors are the most reliable distributors in the region. They enjoy a
flawless reputation combined with business relations with numerous
retailers even in the rural areas of Lahore and near sides. This has ensured
that “Fresher juice” will be made available all over Lahore.
Marketing Organization:
Fresher juice’s chief marketing officer holds overall responsibility for all
of the company’s marketing activities. There are other subordinates with him
to help the sales campaigns, trade and consumer sales promotions, and public
relations
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Point of diff erence of fresher juice:
Consumer is considered as the king of market. Their need varies
from time to time due to change in technology, fashion, tastes, behavior
and lifestyle. Customers demand 100 % calorie free juices now from
which they can derive potential health benefits.
Income:
o People having income25000 to 50,000 and above are included in
the target market.
Age:
o Youth an old age people are taken as the most important targets
in case of pure juices.
Gender:
o Females in emphasis, while males also are considered as a part of
target market.
Family size:
o All family sizes either small or large, either single or married all are
included in its target segment.
Life-cycle stage:
o That life cycle stage is given more importance which includes
more young people either males or females.
Geographic Location:
o A class superstores and grocery stores in the high traffic markets
in posh areas of all the cities of distribution throughout the
Pakistan.
Life Style:
o Fresher juices are highly meant for sophisticated, diet and
health conscious, smart and self-conscious people who give a
great importance to hygienic food.
Use occasion:
o The fresher juices are a part of breakfast. But they may also be
used throughout the day. As these juices are a sort of
energizers, so they are also used after exercise.
Prior experience:
o It is an important variable as far as any eatable product is
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concerned. Because if any customer who has already tested
theses juices and has gained its nutritional benefits and had
enjoyed its good taste odor then he/she will surely be
attracted towards its reuse.
Purchase behavior:
o In the case of fresher juices the size of purchase is not very
small because they are the part of breakfast which is taken
daily and are used after exercise so are the part of routine and
the brand loyal customers will purchase it on consistent basis.
ACTIVITIES TO BE IMPLEMENTED:
· Sales representatives target all the untapped markets and niches, by
using current products.
· Revenue objectivity should be given high attention , and it should
increase by 45% every year
· Product line should be extended by adding new flavors of juices.
· Related and unrelated diversification in the form of eatables, made
up of fruit extracts and food pulp.
· Role of R&D should be increased to help
a) Target markets most effectively
b) To get knowledge about consumer’s preferences.
· More budget and resources should be allocated to advertisement and
sales promotion.
Organizational Design:
Organizational design should consist of multifunctional teams,
including at least 1 member of each department to solve the problem or to
achieve the targets.
Incentives:
Various rewards may help achieve successful implementation. For
Example in case of fresher juices, bonuses or commission should be given to
members of sales force/personal selling teams who sales more units of juice
packets.
Communication
Rapid and accurate movement of information should be confirmed .To
do so efficient and effective feedback systems should be introduced.
For example in case of fresher juice the smooth flow of information
should be confirmed from a single member of sales force / distributors up to
the brand manager and vice versa.
Product Quality:
Al-hilal juices are offer in market with high quality in both pure and fresh
verities. Fresher offer in pure juices,
Prices Competition:
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In cutthroat competition al-hilal offer best suitable prices, which it’s all type of
customers can purchase. Fresher juices available with high quality and
reasonable prices.
Financial position:
Al hilal has very strong position in all financial matters due to which it is adopt
diversification strategies and try to bring innovation in all products to attract
the new customers and retain the existing customers.
Management:
Al hilal Company has very educated and experienced management people who
cooperative and discuss each and every thing with each other so the cross
sectional discussion is very common in al-hilal Company.
Growth:
Fresher juice is presently on the growth in the business life cycle. Now it
should focus on the more customer centered approach and should introduce
more innovative and up to-date products so that it could retain more and
more customers.
Fresher’s retail division is on star and it needs more investment to maintain
the present position in the market.
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Conclusion
According to our observation after visiting the company and taking information
They have to make new strategy for the competitors like Nestle and
shezan.
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They have large capital , so they have to spend more money in the
advertising field
Recommendations
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