MARKETING PROJECT

MAGIC TISSUE
BY Students of M.com 1/D SAEEDA REHMAN AMARA SALEEM MAHAM SHAHID SADIA LATIF To SIR AWAIS 0192 0083 0052 0042

University of Central Punjab Faisalabad

TABLE OF CONTENTS 1. Mission Statement 1 2. Executive Summary. 2 3. Organizational Anaylsis.. 3 i. SWOT Anaysis.. 3 ii. External.. 4 4. Marketing Mix.. 5 i. Segmentation 5 ii. Targeting. 6 iii. Positioning.... 7 iv. Product 7 v. Price.. 8 vi. Place.. 9 vii. Promotion.. 9 5. Budgets............ 10 6. Projections 11

MISSION STATEMENT

To be the most favorable sanitary products company of Pakistan

EXECUTIVE SUMMARY
Magic Tissue is a high quality tissue that is shaped just like a tablet. The ordinary water tissue contains preservatives and anti-bacteria which may cause a child or a person with sensitive skin to have allergic reactions or other side effects such as rashes and skin diseases. These preservatives and anti-bacteria also produce uncomfortable scents. Furthermore, when stored for a length of period the ordinary water tissue is much easier to spread out bacteria and other fungus. However, Magic Tissue, a full-size tissue hydraulically compress is made with 100% natural pulp, it is softer, durable and degradable. As Magic Tissue is in dried form, it cannot be contaminated by any germs and bacteria. It is 100% healthy. All you have to do is pour the water to dried form then it grows to its full size. Depending on the water you pour, it can be used as hot or cold tissue.

ORGANIZATIONAL ANAYLSIS

Our company wants to develop and introduce a new Product. So, we have gathered information through in-depth interviews. We made a survey of the market to have a clear idea about our market, our customer demand, needs and wants. This information helps us to know about the current market and prospects of our new product. We want to market tissue. We have prepared this feasibility plan on that basis. We have assigned a name for the product as Magic Tissue. Since the raw materials are very much available in our country, we have decided to give the product an original image. Market Description We have a spread nationwide market of different convenient product. People are nowadays very much concerned about the market and product conditions. So we have a growing prospect of customers of Magic Tissue. Among the population we worked out few segments of customers who will prefer our product most.

SWOT ANALYSIS

The product existence in the future is depending on its strengths, weakness, opportunities and threats analysis: Strengths 1. 2. 3. 4. 5. 6. Available input materials Low production cost Technological and marketing knowledge Strong distribution channel Easy manufacturing process Reasonable price

Weaknesses 1. It is easy to copy the idea by others 2. Less Market demand

Opportunities 1. 2. 3. 4. Monopoly market New market New product Might have a chance to get subsidies by Govt. to export

Threats 1. 2. 3. 4. High competition in future by copying the idea Entrance of new product Alternatives are avoidable in some segment Uncertainty of launching a new product.

EXTERNAL ENVOIRNMRNT ANALYSIS

External environment analysis is also known as PEST analysis. Which is Political, Economic, Social and Technological factors. Political Factors 1. Political unsuitability of country. Economic Factors 1. Inflation rate is increasing. 2. Overall economy situation is not stable. Social Factors 1. Media views and perceptions. 2. Changes in life style patterns. 3. Health consciousness. Technological factors 1. Technology is innovating day by day.

MARKETING MIX

We had developed the marketing mix of product according to STP and 4Ps Segmentation Targeting Positioning Product Price Place Promotions

MARKET SEGMENTATION

We have observed and analyzed the market and based on the nature of the market we segmented the market in the following sectors: Geographic Segmentation Karachi Islamabad Lahore Faisalabad Gujranwala

Demographics Individuals Ladies & babies Family Sportsman Business buyer

Psychographics Higher class Higher mid class Middle class

Behavioral Sick people Health conscious Sophisticated who take the new product from the market

TARGET MARKET

Analyzing all the segments, we decided our target market according to our product category. We use the Differentiated marketing strategy to target some of the segments The target customers of Magic tissue are sick people, health conscious people, sportsmen and students. Target Market: Health Conscious - 22% Sick people - 23% Ladies - 13% General people - 42%

We separate our target market into four different segment based on their geographic, demographic, psychographic and behavioral characteristics. Health conscious Health conscious people basically the sports person are one of our largest target market. In this segment, we get a lot of potential customer. One third of our total population is young. This is a significant number that we have to concern about them and provide product, which is fit for them. About 5 million people of this total number are health conscious. They spend about Rs.500 in a month in average. Sick people Sick people are one of our major considerations.

Ladies

Ladies are also one of our major consideration.

General Customers Besides the above segments, the general customers will acquire a significant portion of our target market. POSITIONING

High quality Low Price

PRODUCT

Magic tissue is a product that serve different segment of customer. The product is unique in the current market. The tissue will be very much refreshing and provide great support to the sick and health conscious people. Our target market is very large with different segments. Our expected sales are very high. The development cost is million approx.
LEVELS OF PRODUCT

Core Product Our core product is tissue whose, function is cleanness. Actual Product Our actual product is quality level, design and features of our product that are giving benefits to our core product. Product Profile
Name of the Product Type of Product Material Style Type Technics Age Group Shape Use Magic tissue Hygienic tissue Polyester / Cotton Twill Face Towel Nonwoven All of people Mini Home, Hotel, Sports, Kitchen, Beach, Airplane, And Colleges Compressed, Disposable SAMS White Environment Friendly advanced technology imported from USA and U.K. .Convenient, Durable and cleans smartly

Feature Brand Name Color Environmental Standard Machinery used Brand Slogan

PRICING STRATEGIES

The price of Magic Tissue is only PKR 30. We have decided to set a reasonable price for our product when we will develop it. We considered many factors in setting the pricing policy. We apply the strategy of market penetration pricing; that by setting low price we want to enter in the market quickly and deeply. Determining Demand Each price will lead to different level of demand and therefore have a different impact on companys marketing objectives. Estimating Costs We have estimated the cost and want to charge a price that covers the cost of production, distribution and selling the product, including a fair return for its effort and risk. Raw material 8rs tax 4.2 rs production expe 12 wholeseller 0.75 rs retailer 1rs other expence 2.05 profit 2 rs

Pricing Method We have chosen the cost based pricing for our product; adding a standard markup to the cost of the product. PLACEMENT

In the initial stage, we will distribute the products with our sole distribution channel. When our market will spread out, we will distribute our products through dealers. We will target some renowned super stores and hyper markets. When we will go for segmented marketing, we will supply our product nationwide through dealers. Our dealers will take the products to every district of the country. Magic Tissue will be available in all retail stores of the country. We r using Indirect method of placement PROMOTIONS

To acquire a strong position in the market, we need to give special emphasis on effective promotional activities. In order to get the maximum market share we will

have to use all four tools of marketing promotion. Specially, advertising through mass media will support us a lot. Advertising We initially will give more emphasis on paper ads and TV commercials. Because, advertising through these media is the most effective way to reach the customers and position our product in their mind. We are anticipating that this will have a massive impact on the teenagers and other enthusiasts. Few neon signs and bill boards of Magic tissue also can be set up in some core points of the city. We hope to reach 75% of our customers through effective advertising. Personal Selling Though personal selling skill is not that much effective for convenient products like Magic tissue, we will inspire and train the sales persons of the retail stores to convince people to buy our product when they will come to buy any cleaning item. The sales persons will inform the consumers about the features of Magic tissue and about the hygienic aspects. We hope that will play a significant role to increase our sales. Promotional Tools We have also planned to apply some promotional tools. Initially for sometimes we will distribute our product at 50% discount just make our new product familiar with the customers. This will be the market-testing period for our product. Later, we may apply the strategy of giving gifts, lucky coupons, tour tickets depending on the market and competitive situations. Public Relations We have future plans to hold seminars, commit social development, supporting social activities, to arrange cultural functions and mobile game shows for publicity purpose.

BUDGETING

The budgeting method which is being selected is based on the Objective Task technique. It deals with the objectives for each activity and determines the cost

10

accomplishing each objective. That is budgeting depends upon activities which will be performed in advertisement campaign and other promotional tools

FINANCIAL STATEMENTS

SAMS GROUP OF INDUSTRIES INCOME STATEMENTS FOR THE PERIOD 3 YEARS

YEAR 1 Revenues Cost of sales Operating expenses Depreciation expenses EBIDTA Depreciation Operating profit Interest expense Earning before Tax Income Tax Net Income PKR 152000 106400 45600 22800 PKR 637467 - 456656 PKR 475477 - 54447 67777 - 356567 PKR 647637

YEAR 2 76484847 565475 546546 476576 643467 466645 657574 667557 56767 65677 65643

YEAR 3 5746577 6575757 6475455 546653 63673 67346 645557 656675 464646 576767 64537

11

HOW TO USE THE PRODUCT

12