You are on page 1of 15

Company profile

The company was set up by a group of students who were trying to find a solution to keep coffee warm during the winters. Testing various materials to insulate and keep coffee warm for longer they came up with an ultimate solution. Rather than just insulating and preventing heat loss from occurring the breakthrough was to provide heat to the drink. However the problem was to find a way of providing heat to the contents of a container without fire. Thus began a serious of research into coming up with a heating agent that could heat the contents when desired and last for a considerable time within a compact structure of a thermo flask. After months of endless dedication and trails with various insulators and possible heating options they came up with the ideal solution. Apart from the regular insulation provided by glass, heat would be generated by a reaction between calcium oxide and water. The exothermic reaction when these two reacted would heat the contents of the container by the process of convection. Also to ensure that the reaction would be initiated upon the will of the user there is a partition between the two. Upon the pressing of a simple button the partition would be removed allowing the reaction to occur. The next step was to generate investment for the product. For this purpose we chose to introduce the idea to the government for their support. The idea was very well liked by the prime minister who approved to provide loan based on the youth facilitator scheme. According to the scheme we received a loan of 15 lakh rupees. Also we arranged for investment by personal means from angels who provided the necessary amount of finance needed. This give us a total investment of Rs. 25 Lakhs. The company is located within outskirts of Multan where it has set up its manufacturing unit. The company aims to provide a reliable safe to use product to meet the needs of the customers. Also to be the choice due to its high quality product and supporting services. We believe that the customer is always right and we fill focus upon building long profitable relationship with the customer by delighting them with our product. In order to satisfy the customers we believe in having employees that are highly professional. We believe in sustaining employees by providing them safe work environment and looking at them as our partners in supplying product to our users. It is only through motivated employees and satisfied employees that we can reach our ultimate goal.

Market analysis.

After conducting marketing analysis and evaluating various international markets, we have decided to not only supply the domestic market with the product but export it to countries like Canada and England. We have decided to target the middle and upper class in Pakistan. Also we target the northern areas according to the geographic segmentation due to the cold climate in areas such as Gilgit, Murree and the other areas where natural gas cannot be used to heat materials and lighting a fire requires conventional methods. It provides freedom of the headache of lighting fire and keeps the beverages warm in even coldest climates. In international markets we are focusing on targeting travelers and students specifically who can carry this convenient thermo flask with them wherever they go as it is both lightweight and extremely efficient. We are providing it to distributors in Canada and England while we will promote the product at various coffee shops around these countries such as Tim Hortons and Starbucks to make the customers aware of our product that could provide great convenience to them. Due to the climate of these countries and also their buying power is higher compared to the domestic market there is no distinction on the basis of the social status. The product will be supplied to distributors who will ensure it is available at major supermarkets and retail stores including Wal-Mart so that it is available widely throughout at convenient stores throughout these countries.

Segmentation, Targeting and Positioning Segmentation

Market segmentation is an integral part of our product's marketing strategy. In it we broken down a larger target market into smaller, more homogeneous groups of customers that we can more efficiently market to. We segment our market on two bases: Geographic Demographic

Geographic Segmentation Geographic segmentation means segmenting the market by country, by region within the country, by state, by neighborhood, or rural/suburban/urban. For our product we are considering

the cold areas where the demand of our product is high. Like the northern areas in Pakistan and European countries. As local market segments wont be so profitable so we just decided to export our product to give expansion to our business and earn profit. Demographic Segmentation Other strategy that we are using to segment our market is demographic segmentation. We are segmenting our market on the bases of class and occupation. As we considering the regions where temperature is too low and in those areas particular segment will be targeted on the bases of income and occupation so we can call it as geo demographic segmentation.

To build a solid foundation for our business, we must first identify our typical customer and tailor our marketing pitch accordingly. With the current state of the economy, having a welldefined target market is more important than ever. We cant afford to target everyone. So we decided to target only the most lucrative segments. Geographically we are targeting the local market of Multan. But its not so much profitable so we are targeting northern areas of Pakistan as well. Islamabad will also be our target market. Overseas we are going to target the markets of England and Canada because these two countries are lucrative and have the potential customers of our product. Moreover these countries are also easy for us to target. Demographically we are going to target the blue collars and middle class on the bases of their income because our product is affordable for middle class and very useful for both middle class and upper class. We identified a potential opportunity to increase presence in the blue-collar segment. On the bases of occupation our thermo flask is useful engineers who use visit the sites on regular bases and want to drink tea and coffee there. Most importantly our target market will be the tourists who use to visit far off places. Climbers who use to love climbing on the mountains will also be our target market.

Positioning is used as a communication tool to reach target customers in a crowded marketplace. It begins with a product; the concept really is about positioning that product in the mind of the customers. It can be done through a positioning statement. We have a positioning statement that is:

Get your beverages hot instantly (in about 1 minute) by only pushing a button. Other way of positioning is to focus on marketing mix that is 4 ps. Our product has unique features that our competitors are not offering. Its price is also reasonable. Our key focus is promotion and packaging which will be discussed later. All these things will help to position our product in the minds of our customers.

The product we are offering is a self-heating thermos. This is easy to carry product. Its main purpose is to heat the contents (beverage) instantly upon the will of user. Our product name is CHEMFLASK. As the name shows the thermos we are offering contains a reactive chemical ie Calcium Oxide which upon reaction with water emits heat energy. The content to be heated can be any liquid like: Tea, Coffee, Soup, and Water. The chemical and water are to be re-filled after using the heating mechanism for 25 times.

Functioning Mechanism Along with using the regular insulation provided by glass. Chemflask is designed so that a chemical Calcium oxide and water are infused in two different chambers separated by a thin partition. With the press button given at bottom user can remove the partition between two chambers. This triggers an exothermic reaction which produces heat energy and heat the contents of the container by the process of convection. The basic undertaking mechanism is: Calcium oxide reacts readily with water to produce calcium hydroxide: CaO + H2O Ca (OH) 2 the reaction is exothermic and it can get very hot even with minimal quantity of water. (Molar weight of CAO and H2O is 56.0774 g/mol and 18.01528 g/mol respectively) Thus, by simply pressing a button user can heat any beverage anywhere without using any sort of electricity or fire. Design Chemflask bottle keeps the beverages smoking hot. Rugged and well-made, its eco-friendly stainless steel design stands up to the fervor of recess.

As shown, the outer layer is made up of unbreakable stainless steel. After this a thick double insulation layer of glass, vacuum and other insulating material is there to prevent heat loss. Inside this insulation layer there is the large chamber of beverage. Below this chamber are 2 small chambers that contain calcium oxide and water. Between them is the Activator button which upon pressing triggers the reaction between CAO and H2O. At the top is a lid with an opening to drink the beverage.

Characteristics & Process Its basic characteristics are:

Unbreakable stainless steel interior and exterior Leak-proof drink lock sealing lid Holds 12 oz. or 1 cup of your favorite beverage Chemflask double-wall vacuum insulation helps retain temperature Keeps beverages hot on just a single push Hygienic push button lid with an opening to drink 2.62 W x 2.62 D x 7.38 H (inches) Hand washing recommended Heat the beverage to a temperature of 60 C (140 F)

The process is as follows: 1) At the bottom there are two chambers, the lower chamber contains H2O, while CAO is present in the upper chamber. 2) The button acts as a point of activation. After pressing this button the exothermic reaction starts instantly. 3) This reaction as a result of convection emits heat energy. 4) This energy heats the beverage within the flask instantly 5) The beverage is heated to 60 C (140 F)

Chemical Re-fill The Chemical and water used in this reaction are to be re-filled after using the activation process for 25 times.

In the bottom lid, there are two insertions. Through chemical insertion CAO is inserted, while H2O is inserted through water insertion. Proper care is needed while inserting CAO and H2O.

In local market (Pakistan) our product will be available in about Rs. 2499/. The price of chemical re-filling will be Rs. 200/In England the price will be 15/-, while the chemical re-fill cost will be 1.25 In Canada the offered price will be $ 26. While the chemical re-filling price will be $ 2

Initially our product will be available at all utensils stores, super markets. Moreover, we will also take online orders through our website. Later, we plan to make our product available on giant stores and cash & carry stores like Hyperstar, Walmart etc. The chemical re-filling facility will also be provided on some of these stores. We can also send our representative at customers home to re-fill the chemicals on just a single phone call.

We will promote our product through TVC, Internet ads, Website, billboards, point of sale promotion, pamphlets and free public trials in markets. Consumer Guide: We will also provide consumer guide and the way to use the product. Our representatives will guide the consumers to practically use and get benefit from the product.

Launch ceremony

Upon the inauguration ceremony of our company located in Industrial estate the chief guest was Tauqeer Shah, secretary of the chief minister. He conducted the ceremony and we are extremely grateful to him for taking out time from his busy schedule. The company started its operations on 4 June 2013 and is manufacturing its products. Also our product Chemflask will be available in

the markets at 1 December 2013 so that all the consumers can enjoy their hot beverages these winters. We wish to make this product available at your home at Christmas and New Year to make your celebrations even more special.

Competitors Analysis

As this is the world on innovations and fierce competition we are also going to face a strong competition in Pakistan as well as in foreign countries where are going to export our product CHEMFLASK. Our competitors have established as compared to us because we are new in the market but we have innovative idea. As our product has unique feature of instantly heating the food which could be soup, tea, coffee, or any other drink by having the chemical that starts heating just by pushing a single button. There are many competitors in the market now we will discuss about them. Our major competitors are Thermos Industry and Kettle Industry. The list of our competitors all around the world are given below: Thermos Funtainer Food Jar: This stainless-steel jar can be used to safely store hot foods (but not cold ones) for up to six hours. It has a wide mouth, so it's great for one-dish meals like stews, pastas, and soups. The picture is given below

The Sigg Thermo Bottle Fashion Line Sigg maintained both hot and cold temperatures for longer than four hours (meaning food is safe for up to six hours). With a 25-ounce capacity, this thermal bottle is too large for a young child but would work well for a sporty teen who wants to stay hydrated with a cold drink all day. It's also a good option for a young adult who wants to carry coffee, tea, cocoa, or soup.

Industrial Thermos Bottle: Thermos bottle capacity holds 25% more than similar size quart bottles. It has TherMax double wall vacuum insulation for maximum temperature retention, hot or cold. The tempered steel body is dent resistant and rugged for ultimate durability. The nearly unbreakable cup fits most automotive cup holders. And the rubberized handle with oversize metal links provides strength to withstand the most extreme conditions. Blue with black and stainless steel trim.

Thermo pot stainless steel soup Flask: This stainless steel vacuum food flask has a cork top and comes with a stainless steel spoon which magnetizes onto the side. It will keep your food hot for up to 5 hours. They say "hot food warms the soul" and this is the perfect way to take your hot porridge, soup or casserole with you.


Brief Case thermos bottle: Swedish designed insulated vacuum bottle is double walled with an interior and exterior made of stainless steel. The exterior is also powder coated for improved grip and durability. Comes with a push-button quick stopper which lets you pour the contents without unscrewing the stopper, as well as an extra screw-on stopper for winter use with extra-long heat retention. The top lid doubles as a mug. Excellent insulating properties, compact and lightweight without sacrificing durability.

Although there are many competitors exist in the market but in Pakistani especially Multan market there are a very few brands exist in this category. The products which even exist dont provide value up to the mark. Our product has many unique features which can compete in the market. The top feature is that our Price is reasonable which is 2499, affordable along with upper class the middle class also. The other main feature of our product is that it instantly heat the content by pressing only one button. Our product contains calcium oxide and water making the chemical that heats the product. It is so simple to heat the beverage that everyone wants it because now days everyone wants easiness. Once the chemical is finished it is refillable and the chemical is easily available on a few stores and through customer demand on just a phone call or online. The cost of refilling is also not high; it is only Rs.200 which can be easily purchased by even middle class. Our product is designed by keeping the middle and upper class and their requirements in the mind. It is easy to carry and provide facility on the office, school, and any workplace or during travelling. Our Competitors usually have insulated or electric products that require electricity but our Chemflask doesnt require any electricity. Your beverage is just a button away from heating. Further comparing with competitors products they need the beverage to be freeze or hot before pouring in to the flask to keep them hot or cold but in our product it is not the requirement, you can put cold beverage and then make the beverage hot. It has selfheating solution so in Pakistan there is no need to worry about electricity.


In the end we can conclude that although we have to face fierce competition and have to work to change the mind set of consumers by making a better image in the minds of consumers but our product has some strengths that can compete in the market in Pakistan as well as Foreign countries especially where the temperature remains cold. Along with unique and innovative features we can also compete on the basis of price as it is reasonable. So we are hopeful that we would be able to make a compatible place in the market after launching the Product CHEMFLASK

Strengths Product is quite unique We do not have any competitors in the domestic product as it is an entrepreneurial idea Portability provides greater ease to customers Our product enables a customer to drink hot beverage, wherever he is The retail price is quite reasonable Our patent is protected The can is inflammable It is quite time saving in todays busy world It is built keeping in mind user friendliness It is developed keeping in the mind the environmental responsibilities of a business The can body is constructed from aluminum, which can be recycled many times over without losing any of its strength or quality (aluminum can being worlds most recycled packaging container)


Natural by products are used i.e. water and calcium carbonate The water used is ISO certified distilled water Our brand is suitable for diverse group of people, ranging from mountain rescue teams, police forces, emergency response teams, schools etc

Weaknesses People do not have much brand awareness yet Consumer ignorance is coming as big constraint In terms of export, our allocated budget for promotion is less as compared to other well known brands In extremely cold weather, beverage does not get hot enough to fulfill the customers expectations

Opportunities There is an increasingly ageing society in the international markets Older people prefer to drink hot beverages Encouraging young customers to drink hot beverage would lead to high market share in the future Greater advertising efforts focused on the working class can attract their attention and result in greater generation of revenue Threats In case large companies enter this industry in our domestic market, they would bring huge impact on our business Continuous expansion by renowned and established competing brands in the foreign markets Vending machines for hot beverages can be a big threat It is difficult to create market acceptance for such an innovative brand in our traditional society


PESTEL Analysis
Political Factor: Political factor refer to majorly the state and its rules. For the flask basic consideration include the import, export charges. Instability in government policies badly affects the exports, as policies of exchange change with government. Countries being targeted have varied policies for export as India and European counties have flexible import policies. The target market view about the companys is a major challenge that needs to be set, hence we need to develop such a marketing plan that develops acceptance among the target market. Terrorism and safety are major issues that demand for attention. For flask we need to consider the risk of

Environmental Factor: This factor relates to the environmental issues surrounding the business. Cultural differences within and outside organization need to be tackled with strategic planning. Acceptance by the target market needs to be assured by effective management and promotion. Use of flask and its usage need to be rightly communicated so that target market feel no problem using it and it becomes an essential part of their everyday life. Value chain management including the Customer relationship management chain and distributor relationship management should be adequately performed. To attain the trust of consumer and keep the rights of customer safe, proper information should be communicated to them. The target audience have varied rutin and to make sure that they make use of the product rightly promotion from personal selling to Ebusiness will be done.

Social Factor: To safeguard the social factor, procedure to make the flask is carefully performed as with time consumer is now more vigilant and have greater access to information. Viewing the linguistic differences of each target market language for packaging and promotional communication is rightly selected. Lifestyle trend is deeply studied and after research the flask is designed to make


the living easy for our respected clients. Demographics are also focused and the regions with greater demand of flask are targeted. Brand and technology image is created with promotion. Consumer buying patterns are studied and price plus distribution channel are set.

Technological Factor: Use of Internet to help advertise and promote our product is considered. It is a new way to communicate with consumers that is cheap and efficient method. More hi-tech technology enables us to produce flasks in high volume, lowering cost of production and at the same time improving the quality. Software such as ERP is installed which enable us to integrate our functions. To compete in the evolving technological era we prefer to stay up dated in term of machinery and software.

Economical Factor Economic factors include the factors relating to economy of country. Inflation would increase the cost of production and there is a fear of increasing market price of product. Because of inflation the disposable income of each consumer decrease, in 2013 the rate is recorded to be 9.08%. Infrastructure that exists including the communication and transportation facilities is also studied and decisions are taken considering them. The GDP i.e. 3.59 and GNP are also affecting in economical factor.

Legal Factor: Tariff, custom rules on shipment and documentation is a big hurdle for export and import. Government quotas set are major restrictions which need to be considered and planning for production and delivery is done accordingly. Security of order sent and delivered need to be ensured. Setting the plant and firm following all the legal procedures are considered. Use of right pattern to HR, marketing, Finance, Operation is done.