Assignment on 4Ps By:

S11076414 Sharma Shamini

S11076246 Sharma Shivneel
This assignment is a copyright of the above students. If referred
to, the authors should be duly acknowledged but if copied then later
assignments would be plagiarising the above students’ work.

Melonade is a nutritional and healthy fruit drink with many advantages and qualities. This is
the first time a beverage has been made and introduced in Fiji which is made out of
watermelon. This marketing strategy includes a more detailed description of the product
information.

PRODUCT DETAILS
Product Name: The name of the product is “Melonade” because it links to the name of the
fruit which was used that is, Red flesh watermelon. Melonade is extracted from the word
melon and the significant catch in the name is that the consumers can easily identify that the
juice is made from watermelon and they would want to have a taste of it as watermelon is a
very tasteful fruit for consumption and people would buy to quench their thirst.
Product Description: it is a processed fruit juice packed in hermetically sealed packets. The
reason for processing the product is to increase its shelf life. The processing of this product
includes pasteurisation. Pasteurisation is “heating of the juice to a temperature between 60-
90 degree Celsius” (What is pasteurisation). This process increases the products shelf life to
be at least 1 year from manufacture.
Product Ingredients: ingredients used in the product are as follows: watermelon, honey,
Carbonated water. This ingredient will be combined, processed and then packed for
distribution and sale.
Positioning: it is a nutritional and we hope to offer the customers a healthier beverage when
compared to other drinks. The targeted audience for the product is the younger generation
however the product is for the general public and any one can consume it.
Uniqueness and Benefits: Watermelon juice is unique because it is being introduced in the
market for the first time and customers will be eager to try it as such a product being
introduced will be striking and also it is a Fiji made product. Comparing with other
competitors, like Coco Cola, than our product does not use preservative and is made from
natural fruit juice. Its benefits are that it is sugar free as it contains honey which will avoid
the health risk of obesity. Moreover, the fruit watermelon is rich in vitamin A, vitamin C,
potassium and lycopene. Adding on, it will be easily reachable to the customers since it will
be sold in few major supermarkets in the central division.
Packaging & Shelf life\expiry: The shelf life of the expiry date of this product is that it can be
kept in the shop for 1 year from the date of the manufacture of the juice. It will be packet and
sealed in hermetically sealed packets “this ensures that no moisture or air enters the packet,
which enhances longevity and viability” (Seed Products) to preserve the flavour and lengthen
the shelf life as the juice will be pasteurized.
Labels: For the label see Appendix 1.
Product Pricing:
Price determination calculation (Melonade juice)
Cost budget per Quantity per Cost per unit
half year half (packets)
year(packets)
VARIABLE COSTS
Direct material
Watermelon $30,000 50,000 $0.6
Honey $10,000 50,000 $0.2
Water $400 50,000 $0.008
Juice Packets $10,000 50,000 $0.2
Direct labor
1 worker $6,000 50,000 $0.12
1 worker $6,000 50,000 $0.12
1 worker $6,000 50,000 $0.12
1 worker $6,000 50,000 $0.12
1 worker $6,000 50,000 $0.12
Farm worker $5,000 50,000 $0.1
Other Variable Cost
Manure & seedlings $1000.00 50,000 $0.02
Electricity $1,900 50,000 $0.038
Other cost $1,000 50,000 $0.02
Total Variable Cost $89,300 50,000 $1.786

FIXED COST
Rent $6,000
Depreciation-factory machine $5,000
Transportation $1,500
Machine cost $4,000
Advertising $2,000
Total Fixed Cost $18,500 50,000 $0.37
Total Cost $107,800
Total Unit Cost $2.156
Add: 25% $0.539
mark-up
SELLING $2.70
PRICE

Since the company is at the initial stage and is still establishing, we feel that it will be
economical to produce for half a year to get customer feedback and then expand on the
production and sell country wide in Fiji and reduce additional costs. Therefore, the company
will not employ any additional administrative staff as the partners will perform this task
themselves and also the cost of watermelon bought is sold as the company has its own farm
of watermelons. The major competitors are Just Juice and Golden Circle. The cost of Just
Juice 250ml packet is $2.59, Just Juice 1 litre packet cost is $5.49. However, our company
will offer 500ml of Melonade packet juice for $2.70 which is far much cheaper because it is a
local product and also very nutritional. Some other competitors are also present in the market
such as Coco Cola products and Pepsi products but the competition level is bit low as they
offer soft drinks whereas Melonade is a pure fruit juice.
PLACE/ DISTRIBUTION DETAILS
The juice “Melonade” will be sold in some of the major supermarkets, they act as both
retailers and distributors of the product to convenient stores, such as MH supermarket
(Valelevu and MHCC, Nausori), Shop n Save, New World supermarkets (in Valelevu, Suva
town and Nakasi), Hansons, Cost U Less. The reason for this is because the supermarkets are
easily reachable to the customers and are highly populated supermarkets. It is also well
recognised and people mostly do shopping from such supermarkets. The reason for choosing
Cost U Less is because the product sold in this supermarket is of high quality and thus selling
“Melonade” will create a good image of the product in the minds of the customer.
The product will be sold using retailers, distributors and the company will also sell directly to
the customers. Retailers are well established with bigger networks and can assist us in selling
the product to large number of customers (have more reach ability to the people) and they can
also sell this products to other convenient stores therefore acting as distributors.
The retailers and distributors that will be selling our product are the supermarkets mentioned
above (MH supermarket, Shop n Save, Newworld, Hansons and Cost U Less).

PROMOTION
The public will be made aware of the product through the use of the media such as
Television, newspapers and radio. For the advertisements in the television the advertisement
will be mostly shown in Fiji one and FBC as they are the two channels that are mostly viewed
by the public.
The television advertisement will be mostly shown during the cartoon intervals and news
intervals. Additionally, the Fiji Times and Fiji Sun are the two newspaper that will advertise
our product and mostly through the advertisements of the retailers. See Appendix 2 for
advertisement.
Furthermore, the sales promotion techniques that will be used in promoting the product is
selling the products in packs of 2 packets and carrying a promotion that upon the purchase of
these packs customers will go in the draw to win tremendous prizes. The prizes include 2
phones, 5 MP3 players and 1 video games and packs of juice. The prizes will attract the
consumers especially the younger generation.
Also, another sales promotion technique used will be offering customers 2 packets at a lower
price such as 2*500ml packets at $4.50, when compared to our competitor Just Juice which
sells 1 litre juice at a price of $5.49.
In addition, another technique used will be Personal Selling, whereby, our company will
employ a sales force of people and they will offer free tasting. The customers will be given
the chance to have a free testing of the product in the retail supermarket so that they get to
know the taste and inform their friends and family about the product. This will also enable
the company to build better relationship with the customers.
Bibliography
Seed Products. (n.d.). Retrieved April 21, 2012, from Starke Ayres:
http://www.starkeayres.co.za/retail_seedproduct.asp

What is pasteurisation. (n.d.). Retrieved April 21, 2012, from Rabenhorst:

http://www.rabenhorst.de/english/interesting-facts-faqs/faqs/pasteurisation/
APPENDIX 1
APPENDIX 2