SABZI SAB LY JAO

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 Subject: Marketing

Group Members:

Ayesha Khalid Roll no L1s17bbam0018 (sr no 22)

Majid Ibrahim Roll no L1s17bbam0007 (sr no 18)
Fozia parvez Roll no L1s17bbam0032 (sr no 31)
Iqra Imtiaz Roll no L1s17bbam0013 (sr no 21)

Project: New product development (Keela&Karela)

Submitted To: Prof. Basharat Ullah Malik

Date of Submission:26-01-2019

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 Table of content

CHAPTER PAGE
Company overview…………………………………4
Business Environment……………………….……5,6,7
Swot Analysis………………………………………8,9
Differentiation & Positioning……………………... 10,11
Market Analysis………………………….…11,12,13,14
Budget structure………………………………14,15,16

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 Company overview:
We are giving online services to our customers in Lahore regarding vegetables and fruits. we
assured that the particular vegetable and fruits reaches to their destination. Basically we are
going to introduce an online service application which provide a facility to deliver vegetables
and fruits at their particular spot moreover we provide assurance to our vegetables and fruits
quality that satisfied the standards of customers in Lahore.
As we are introducing starting a new business with a very different idea so we will start it from
Lahore which is a very big market as the population of Lahore is 2 crores and so.
However, we did a great job in this area we apply some marketing strategies for getting audience
towards us. We discussed it below.

 Company summary:
Our company is based on giving online services to our target customers to deliver vegetables
and fruits in Lahore. our IT expert gave us very advance and fascinating APP which can run
on both android and IOS and he also managed to give us web store of which licensing is done
by us. Our main purpose is to facilitate our customers home to home and door step to step.
We will provide fresh and healthy vegetables and fruits to our customers with a quality
packing. We will also give them option to return our vegetable and fruits in case if they feel
not satisfied by our product at the moment. Its seem that you have a clear overview of our
project that we are providing a service to our customers.

 Mission Statement:
Our stance is clear that we are assuring quality of fresh vegetables and fruits to our customers
at their door steps whenever they want. Our online service will save our customers time and
effect.

 Vision:
Our vision is to alsp start providing grocery items to our customers and start out business in
other big cities of Pakistan.

• Markets and Products:

Our market is Lahore and our service is to deliver fruits and vegetables.

 Management team:
In our company we are team of 4 students which are coming with this idea of providing
online service of fruits and vegetables.
 Legal structure and ownership

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 Ownership of our company is owned by Ayesha Khalid and other 3 members are supporting
partners while our business is based on partner every person is involved and doing his work
Product and service description

Business Environment

Environment is an important part of business If you want to establish a business in that particular
area prior you have to learn every aspect of that region than you can think properly, is it good to
do business or not? Environment affects business because it has a force which could damage our
business therefore you have to studied it initially before moving to business.
There are some situations which influence the environment and create a situation which is not
good for businesses like,

Globalization
1. Growth of poverty
2. Collapse of emerging markets
3. Competition
4. Innovation

1. Technology:
As you know we are providing online service to our customer and for that we came up with the
APP which can run on both android and IOS and to facilitate our customer we tried to make it as
much as easy as it can be. We are also facilitating our customer with website from which they
can place orders whenever they want. Our IT expert will always doing check and balance of our
online service. By introducing online service of selling vegetables and fruits we will make
people life easy as it is just one click away from getting vegetables and fruits which is going to
result in saving their time and efforts from their busy lives.
2. Globalization:
Globalization is an opportunity people are freely to invest where they want it most of business
are spreading through it due to labor cost and other different reasons. As we are starting our
business in Lahore not spreading it to Pakistan or other in other countries so this factor does not
affect us.

3. Collapse of emerging market:

In unfortunate situation some time business cannot establish in a market due to some reason it
could be due to government policies like government introduce new laws in a country which

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possibly damage the structure of business. As we are going to start a business regarding to
provide online service to people about vegetables and fruits we have already done our market
survey about market policies about services and also done online licensing.

4. Competition
Our main competitors are vendors who are selling fruits and vegetables on roads in some areas of
Lahore who are covering mostly old Lahore. After our existence our new competitors will also
come and that will be a competition.
5. Innovation:
Our business is different and new as no one is doing this business in Punjab. Innovations
differentiate a business from other similar businesses.as online servicing is going viral now a
days we tried to give innovative idea which inspire a people to buy things from this channel
instead of go to vendors to purchase a fruit & vegetables this idea will be a different for public
even we are giving a power to people if they think that fruit and vegetables quality is not good so
they can send it back, this facility encourage them toward our service and this will also save their
time.

Micro Environment
In micro environment we have to keep in view three things regarding our consumer which may
have larger effect on the product.

Following factors influence the micro environment of a business:

1. Consumer
2. Supplier
3. Competitor

Consumer:
In micro environment we have to keep in view three things regarding our consumer which may
have larger effect on the product.

1. Need of consumer
2. Purchasing power
3. Behavior of consumer

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We will sell online vegetables & fruits so we will have directly interaction with customers which
will help to keep the relationship strong. As today people lives are too busy so we are providing
people with facility to deliver vegetables and fruits at their door step which is definitely going to
help them in saving their time and effect. We are proving this service online so customer can
easily access us and have power of making his own choice. Behaviors is going to be consider as
if customer doesn’t want to leave their home and they are busy somewhere in office so they are
going to consider of service in their mind
Suppliers:
Suppliers are the main source through which the product is being supplied and sold in the
market. That’s why they have the bigger effect. If the relation with the supplier is good then the
natural product supply is on time and vice versa.
In our case we are going to make good relationship with suppliers and try to get vegetables and
fruits as its best price and our main suppliers are going to be a green market (sabzimandi and
phaalmandi).
Competitors:
Competitors are always important for every product they can directly effect on the product. If
there are larger number of competitors in the market, then it would be very difficult for us to
compete them in the market. They can adopt different strategies like low cost etc. to compete
with our product.
As we have vendors as our competitors right now which are also not coming in our targeting
segment which is a good point for us. After coming in market as a company we will might face
completion with other people who will also come as the same idea.
MACROENVIORNMENT

Business which we are going to starting in a particular region of Lahore (new Lahore) we aspect
every area before starting a business like particular environment and consumer behavior this
inspection will help us to settle and understand the consumer.

Environment also has a power of influence like culture, social, personal and psychological these
thing influence a person to buy a product or to neglect that services.

Cultural influence:

As our culture we were little afraid that people are more conscious to buy
vegetables therefore most of customers are preferring to buy a good by themselves so at the
starting of that business we were thinking that this act will work or not.

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Here the example of uber help us that in our country people were not much confident initially to
travel with uber driver therefore uber announce multiple services to engage audience towards
them so this strategy helps them to grow and they also change the culture of particular region
now people are willing to travel with uber.
Culture could be shift as it shifted for uber and it could be shift for our service respectively
therefore we promote our service and make a need recognition for a customer whom are too busy
and they have no time to purchase a vegetable this need will solve by introduced online
technology which help customer to buy a perishable good instantly with assurance of quality.

This technology will help our target market to buy product from this particular app and we give
guarantee to our audience that our product will be tested and with a time efficient to deliver
vegetables.

Social

Due to particular environment people are not interested to purchase vegetables from
this site therefore some groups or even friends never encourage to use this site because of
environment is like that if you want to capture this market encourage a consumer by commercial
sources or personal sources would be affect therefore you have to satisfied more customers to
grab a audience near this feature which is unrelated to our audience but things could be possible
by working effectively in that area.

Personal:
Here we have to assess the environment of life style economic condition and
occupation of people. If the society is more educated in the area so their preferences could be
different, if the society is less educated similarly their preference would be different.
So we are providing a source for those people whom are living in good areas as we considered
the areas which have a recognition of town. Mostly people use this technology are well educated
person so our main target are those people, conversely people are not come under this category
they are not our target therefore we firstly distinct them into demographic categories.

This will also create impact on consumer, consumer will never buy a product if he is not
motivated even his attitude is not encouraging him to purchase a product these are some sort of
limitation which a consumer has to face when he is going to purchase a product.

Market offering

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 If we offer a service in a best way from competitors this will engage our
customer to use this service even this will extend our costumer.

So creating a need recognition is very difficult work because here is a thing stimuli occur it could
be externally or internally as well. In an externally simplify he will encourage from
advertisement to buy or use that service. This all stuff happens on the basis of conversion if you
bring into a need of customer is very hard work but it is possible.

By using information sources.

You can use multiple source to engage a people towards your service like a commercial digital
and personal source. This sources will help you to bring audience toward your source.

Decision process:

We are skipping option of alternative product so we move to decision process

this process is regarding to use a behaviour after getting a reviews from customer as I said that
personal source have a much power as comparable to other source because people think that it
has credibility to use that particular service after that they will go to purchase.

Post Purchase Behaviour:

We create structure of feedback which help us to improvise in application

and to bring more efficiency in our business. We try to give best services to our customer and get
a feedback from customer so this system introduced for reducing a dissonance of customers. We
tried to give a facility in satisfactory way which help to customer evaluate performance if they
get more than they expected so this situation would be in a category of delight from customer
point of view.
SWOT analysis of the vegetable delivery application:

SWOT analysis elaborate you in which area you have a power, by assessing a SWOT you get
answer, where you have a strength weakness opportunities and threat in your area.

STRENGHTS:
In strengths you can determine a strong area and positive attribute of firm.

 Motivated

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 Accessibility in most area of Lahore
 Less Competitors
 New idea
 No physical existence which reduce cost

WEAKNESSES
Weakness is also determining by SWOT analysis. It is also part of organisation and this are
situated inside the organisation, firm want to cope up it as soon as possible to capture more
audience efficiently.

 No Experience
 Problem in online application( uneducated people)
 People may be confuse about quality.

OPPORTUNITIES
There are some opportunities which prosperous your business and this opportunity could be in a
situation of market development or it could be something else but important thing is that it helps
your business.

 Expand in different cities

 Large customers base
 Will start other related Services
 Acquire more employees

THREATS
Threats are included in external these factors are beyond from your control this are mostly due to
change in economic matters or it could be intervention of forces like a Government.

 Increase in cost
 Driver union risk
 Competitors risk
 Government Regulation

You have to take earlier step than your competitors otherwise you can face a trouble, in every
sector of business, organisation have a competitive advantage to take a step for increasing a
growth.

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Our business is based on providing a services to people regarding vegetables and fruits we are
establishing application which would help audience to purchase a perishable good from online
stuff and what they had purchased from application, it will move to cart and most important
thing regarding about our business that we are accepting different methods of paying like debt
credit and cash, its depend upon customer where he is comfortable.
Differentiation Service
Our competition is with vendors and stores whom are selling vegetables and fruits from a
particular store so we bring differentiation in our business by introducing application which
gives audience power to purchase what they want to purchase, it can be possible by a single
touch and the food will deliver at their spot.
Delivery Services:
This service is bringing a new structure in market .Our main focus ew
Lahore in which the following areas are includes

 DHA all Phases

 Cantt
 Gulberg
 Johar town
 Model town
 Wapda town
 Lake city
 Bahria town
 Sukhchain
 Punjab socity
 Askari all phases

is on Top areas which have the recognition of town so at the start time we will prefer this
area because in this area the people are too much busy in daily life they have not time for
purchasing vegetables and fruits so for tackling this situation and creating a thing which
is innovate for people so they introduce a service for target market whom have no time so
this application would work on that area probably it will affect competitors as well
especially in that area introducing this feature will reduce a time for wastage of people.
Preemptive:
If we are in a circle of competition so we have to take earlier step than
competitors, as we started a business most probably we have to face a competition so we have to
be prepared to take a certain action which make us distinguish from rest of competitors as we are
new with this idea as right now we don’t need to do this.

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Affordable service:
This service takes reasonable charges instead of giving your time and waste
your energy to buy a good this option is convenient and in a reasonable fee you can deliver
goods to more people. As there is no delivery charges and our rates are much similar to our
competitor vendors and stores man.
Positioning a structure:
Positioning is the act of designing the company offering and image so as to occupy a meaningful
and eliminated competitive position in the target consumer mind.

 Our position is based on time efficiency and we are giving assurance of good quality.
 Promoting a technology which giving a different stance from competitors.
 Providing the customer the option to return the vegetables and fruits they are not satisfied
with at the moment.
 Providing them free delivery.

Prospect want to buy a food he wants good quality and in a less time he wants vegetables and
fruits in home for cooking instead of wandering in shops he prefers this option so our target
customers are those who are mostly busy.
Niche marketing:

This is a target market or concentration market so we want to capture initially

those customers so our position is based according to that people therefore we urge on time
efficient facility and we also focus what you want to buy a vegetable you can quick click on
particular vegetables that vegetable will reach to that spot.
Market analysis
Marketing can be defined in the terms of 4p’s as given below:
“Putting the right product in the right place, at the right price, and at the right time”

Product Features:
Firstly let’s define what a product is:
“A product can be a tangible good or an intangible service that is seem to
meet a specific customer need or demand”
Our product:
We are providing our customer with online service to sell vegetables and fruits.

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Value preposition:
Firstly let’s define what it is?
“A value proposition is a promise of value to be delivered. This will be the primary
reason that a prospect will be buying from you”
Our value preposition:
As I described above that our product will be vegetables and fruits. But the question
is that how it will offer a unique value to our customer. Our product no doubt is not so innovative
but there is an innovation which is selling those vegetables and fruits through our online store or
web shop.
Who will buy?
This unique selling will be highly valued by our those customers who are living in the areas
where they have to travel to store to buy vegetables and fruits for their daily usage and also
where REHRIWALA is not allowed to sell the vegetable and fruits. Basically we are targeting
the educated segment who can use APP and they live in the following ideas:

 DHA all Phases

 Cantt
 Gulberg
 Johar town
 Model town
 Wapda town
 Lake city
 Bahria town
 Sukhchain
 Punjab socity
 Askari all phases

Distribution of the product:

Distribution of the product can also be called placement of the product.
Our product placement:
Before explaining the placement of our product let’s have a look on our targeted areas for our
online store:

 DHA all Phases

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  Cantt
 Gulberg
 Johar town
 Model town
 Wapda town
 Lake city
 Bahria town
 Sukhchain
 Punjab socity
 Askari all phases

Reason behind choosing these areas:

As described above our uniqueness is selling fruits and
vegetables through our online web stores and also through our app which anyone can download
from their play-store. So the reason behind choosing these areas is basically of their educated
population who can easily assess our website or can effectively use our app services.
Not only this but another important
reason is that in this business our direct competitor is REHRIWALA who sells fruits and
vegetables at the door steps of people. But in these areas we have noticed carefully that no
REHRIWALA wondering around the houses to sell vegetables because REHRIWALA is not
allowed in these areas.
Placement of our product:
As we have just started this new adventure and we have a limited
budget so we will cover these areas with the placement of fruits and vegetables in our rented two
places.
First place:
Our first store will be at the point which will cover DHA, Cantt and Gulberg
Second place:
Our second store will cover aeras of johar town, model town, faisal town, wapda town, pcsir
society, lake view and bahria town near areas.
Distribution process
Now the question is that how the distribution our product will be done.

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 We will hire four boys who
will deliver to selected areas two boys at each store. We will provide them with four bikes. And
to know about orders they will use our app and website on their phones as soon as they will get
the order in their specific areas they will pick up the ordered amount of fruits and vegetables
from the stores and will deliver it to the valuable customer with counted time which will be
visible on his portal (a function of our app where the counted distance and time will be visible to
the delivery man). There is also going to be an IT manager who is going to instruct the delivery
boys about the app and website.
Pricing:
Our prices for vegetables and fruits will be charged according to the government settled
standards but we will charge 10 rupees extra per fruit and vegetables. If this is the way of pricing
our product the question will be raised than how we are going to earn the profit.
When we will buy the fruits and vegetables from the main market say Sabzimandi
than if we will buy for our two stores we will going to have an advantage of buying at less rate.
We will also going to charge the delivery charges for our products delivery.
Promotion / advertising:
Now we have defined our target customers, areas and prices it’s means that now we can easily
think about designing a promotion or advertisement for our target customers.
As we have just started the business we will use the less expensive or
free market promotions. In other words you can say that we are going to adopt the promotion
methods which cost us time not money. The sources we are going to choose for this purpose are
given below.

Social Media

The most effective way to promote anything is through social media because
everyone now days using social media apps all the time so for this reason we are going to made
our social media pages on social media platforms like Insta-gram and especially on Face-book.
We will create ads for Face-book and Insta-gram so when people will be using these apps they
will be able to see our ads.

Brochure

As all partners of this project is educated enough to know how to use world to create different
types of Brochure. So we will create brochure related to this new adventure and will give
responsibility to our delivery boy to through these brochure to the houses near to those houses
where he is going to deliver the products.

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Question no 7

Explanation of our budget for this project

Answer

Our total capital for this budget is given 500,000/=

The things which we required for this project is given below:

 2 freezers
 2 small rooms
 4 motor-bikes
 4 delivery boys

Budget

4 bikes 80,000 (20,000*4)

2 rooms rent 20,000

10,000

2 freezers 110,000 (55,000*2)

4 delivery boys salaries with commission 40,000 (10,000*4)

Utility bills 8000 (4000*2)

IT Expert salary 25000

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 Transformation 1liter= 92 Rs 1 Liter =60 km

1 bike=150rs petrol per day

4bikes=150*4=600 per day

600*30= 18000 rs per month

Android app 25000rs

IOS app 30000rs

website 40000rs

Promotion 25000rs

Miscellaneous 19000

Total = 450,000

1 day buying of vegetables and fruits= 50,000

1 day selling of vegetable and fruits=80,000

Profit=30,000

Marginal profit:

Now according to our research the market we have targeted is 9 million and at least from them
we will get order from 200 people.

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Now let’s assume that we are getting orders from 200 people and they will place order of average 200rs
per day
Earning 200*200 =40,000
Per month Earning 40,000*30 =1.2 million
Profit
Sales - All costs (fixed+ variable)
Assuming the above calculation
200*200=40,000
40000*13=520000 breakeven of our budget

This is for the first month when we have to add cost of freezers and bikes but in the next if we
exclude this cost our profit will be more than the above given

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