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Advertising and Brand Management

SPRING TERM PROJECT 2010

BRAND LAUNCH

PRESENTED TO MR. Asim Ahad


Acknowledgement:

First of all, I would like to thank ALLAH AL-MIGHTY, who is the sole benefactor of all
the worlds. I would like to add a few heartfelt words for my teacher Mr ASIM AHAD
who guides me with his unending support right from the beginning till the completion of
the projects. I thank him with all my heart and soul for his guidance, helpful instructions
and faith in us which encouraged and helped me a lot in understanding the core concepts
of BRAND and ADVERTISING

Executive Summery:

The purpose of this project is to launch a new brand in the packed and purified milk
industry in Pakistan. I am launching packaged milk brand name Pak milk. In this project
All the key steps which are necessary for launching a brand are given such as Brand
positioning, advertising strategy, media strategy, business strategy, Market share of
competitor and SWOT analysis etc are given.
Introduction:

Pakistan with current estimates is the 4th largest milk producing country in the world
with 33 Billion liters of milk produced annually. The potential is huge but the sector
operates mostly in the informal economy and needs a consistent effort to formalize and
be able to contribute better to the national economy. Out of the total milk produced, 97%
is in the informal sector (i.e. loose milk consumed in the villages and or sold in the cities
through “Gawallas” in unhygienic conditions and without any quality standards).

PackagedMilk Losemilk

3%

97%

There are 8 Million farming households in Pakistan with a total herd size of 50 million
animals. 97% of these farmers are not linked to formal markets and hence are not
progressing in economic terms. Moreover, the overall animal herd of Pakistan is thinly
spread across thousands of square kilometers with an average of 2 to 5 animals per
household. Dairy farming practices are very old and traditional and need overhauling. To
formalize and improve the industry, a private sector led Pakistan Dairy Development
Company has emerged with guarantee backup by government of Pakistan
World milk production:

Two thirds of total world milk is produced by Brazil, India, Pakistan, Poland, Russian
Federation, USA, and 15 EU member states. Figure shows Pakistan’s share in the total
production of the world according to which, Pakistan in the fourth largest milk producer
in the world.
According to FAO estimates, it is projected to reach 475 million metric tonnes in year
2030.

Projected growth in milk production in developing countries by 2030


Market size:

Packaged milk consumption is 33 Billion liters in Pakistan and that is only 3 % of all
milk produced in Pakistan. The packaged milk industry is growing at approximately 20%
per annum. Various suggested legislations to restrict loose milk can enhance market
growth tremendously.

AGRICULTURE IN ECONOMY AND CURRENT MILK QUANTITIES


AVAILABLE IN PAKISTAN:
Objective:
To tap the milk consumption segment at lower ends of the market by offering quality
product at economy prices through UHT Milk pouch

Market review:
Situation Analysis:
Industry Structure:

Pak Milk is in the 1st stage of the product development life cycle (Introduction); growth
would be slow as it is an innovative product. Thus with heavy promotion the product will
move its way towards growth.
The consumers of product at this stage of the product life cycle would be the innovators
and soon the early majority

Pak Milk
Maturity Decline
Introduction Growth

Target Market:

The biggest market for Pak Milk is urban areas of all cities Pak Milk is a mass-market
product that is targeted towards kids for drinking and use for tea by household male or
females of all ages.

Brand Loyalty:

Pak Milk has to Create Brand Loyalty and Awareness. This will be done through
promotional activities such as College Activation, Restaurant Activation, Posters, and
other forms of Branding.
Business Strategy:

Pak mil business strategy is as fallows


First developing demand for all income level of consumer through low cost strategy
product

Than Dry And cold warehouse for the purpose of improvement in the quality of products
Also take help from third part service provider such as dealer and retailrs for distrubtion
purpose

Marketing mix:

Product:
Pak Milk is available in four sizes i.e. 200 ml, 250 ml, 500 ml, and 1 liter. It is easily
recognizable due to its blue color and Pak Milk Logo

Price:
The prices of the four different size packs are as follows:
200 ml- Rs 12
250 ml- Rs 15
500 ml -Rs.28
1 Litre- Rs.56

Place
The biggest market for Pak Milk is Lahore, Karachi. Rawalpindi, Islamabad,
Gujranwala, Faisalabad, NWFP, Sialkot, Multan, and Rahimyarkhan and all small cities
of Pakistan There will be create a wide distribution network as compared to Nestle,
Haleeb and Olpers.
Promotion
Pak Milk has to do a lot of effort for advertising to gain customers. By following
methods advertisement will being done
• Advertising
• Sales Promotion
• Public Relations

Advertising:
Ads are cost effective way to disseminate message, build brand preference or to educate
people. Most companies use an outside agency to help create advertising campaigns and
select and purchase media.

Advertising Strategy

Informative Advertising
In the introduction stage Pak Milk will give detailed informative advertising about
products. At this stage the advertising duration in television will be of 45 seconds.

Persuasive advertising:
After getting awareness in the market, i will emphasize on persuasive and comparative
advertising to present additional and competitive features of Pak Milk At this stage the
media channels will remain same, but tenure in television will be shorter than before.

Reminder Advertising
At the maturity stage of Pak Milk, than focus is only on reminder advertising to its
customers that Pak Milk exists in the market. At this stage the Pak Milk will reduce the
frequency of its ads in television and in radio and will shortlist the billboards and
advertise only at rush and potential area

Selected Advertising Media


1) Media Types
Major media types:
• TV
• News papers
• Outdoor Advertising (Hoardings, Billboards)
• Magazines
• FM Radio
• Neon signs at school, colleges & offices cafeteria
• Flag banners at shopping mall
• Page 37 of m

2) Media Vehicles TV
Specific media vehicle involve:
• GEO TV
• PTV
• ARY DIGITAL
• OTHER LOCAL CHANNELS
News Paper
The placement of out product would be on of DAWN.
Outdoor Advertising

• Distribution of posters & broachers

Competitive Situation:
A) Brand Competition:
i) Nestle

ii) Olper’s

iii) Good Milk


iv) Haleeb

b) Generic Competition:

c) Market Competition:

Brand positioning:

Gain outlet Leadership in shelf Displays of Key outlets and develop new potential market
for Pak Milk.
Positioning can be based on a variety of attributes but for packed milk the following
bases apply which are
Usages
Features

SWOT Analysis of Pak Milk

Strengths:

Doubled processed UHT treated package milk.


Pak Milk charges 1 Rs less then any other existing diary brand in the market.
Pak Milk gives more margin to retailers than others packaged Milk Company
Guaranteed clean/bacteria free.
Homogenized
Easy open pack
Weaknesses:

Initially acceptability issue


No market share
Lack of awareness among the majority of population about the benefits of packed milk.

Opportunities:

(UHT) market is growing at a steady rate of 20% a year


Milk is an essential commodity which every body uses
Due to the ever-increasing importance of a health living, more & more people are buying
packaged food items.
Government is also backing the tetra pack eatables industry, which is a good sign for
dairy industry to flourish

Threats:

Huge Competition
Time Problem
Chance of new entrants in the Industry
Poor response from the market
The major entry barriers include high capital requirements, economies of scale; patents
and licensing requirements; scarce locations; raw materials and distributors.