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Freezy Cola Project
Freezy Cola Project
1.Brief Introduction:
Our group of five friends was sitting in a Restaurant on the Murree Hill. Two of
us were drinking cola while other two were enjoying ice-cream. The fifth one combined
both ice-cream & cola and started having the fun. He enjoyed it a lot & asked others to
taste that mixture. We also found it pleasing & shared it with our neighbors who also
were pleased to have it. In no time at all, almost all the people in the dining hall of the
Hotel were enjoying that unique beverage.
From there we started researching for its market. We found people willing to
enjoy that taste. We found that such a Beverage exists in America under a brand name
“FIZZ Cola”. Finally, we decided to launch it in Pakistan with our own new brand.
2.OUR Innovation:
We are going to introduce cola with ice-cream for the first time in Pakistan. Its features
will be:
• There will be a cola bottle having a small ice-cream cup above it. When
you will suck it through the straw, the cola will 1st go to the ice-cream cup
and get mixed with it, later you will have the tastes of cola & the ice-
cream at the same moment. This will give a customer double enjoyment at
the same time in an economical price.
• We are planning to introduce different flavors of ice-cream with cola.
• Storage: We have purchased Special chillers from America having
two cabins, an upper & a lower. Our product will be placed in it in such a
way that ice-cream cup will be in the upper portion while cola bottle will
be in the lower portion. Upper portion temperature will be almost minus
1.5-2 degree Celsius to keep ice-cream in its shape, while that of lower
portion will be about 04-07 degree Celsius to keep it at its best.
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It is clearly creating a differentiation. No doubt, there are very famous
brands giving Colas & Ice-creams but still there is no concept of their combination, as in
the form of “Freezy Cola” that we are introducing.
Product is differentiated as high living standard and self-expressive. Firm’s
image, logo and symbol are also a differentiation feature of the product.
Company is having its own parlors as well as product is placed at renowned
stores
justify that our product will sell in the market because it will be the best product to
overcome the annoyed minds as well as to give people a different taste to enjoy. We have
decided to launch this product after having a research to assess the expectations of the
market. In this process, questionnaire surveys, face-to face interviews and market
situation of the competitors were analyzed.
CURRENT MARKETIING SITUATIONS:-
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Most of the share of the beverage industry is occupied by Coke and Pepsi along
with Shandy cola, Gourmet cola etc. On the other hand, in ice-cream industry, most of
the market share is in the hands of Walls and Omore’. The launch of our product will
have a direct impact on both of these industries.
There is expected an immense response from the market as we are entering both
the markets of ice-cream and beverages at the same time. We are hopeful to get a
significant market share as the market size of our product is too large. Almost everyone
wants to have a new taste of some new cool product.
4.CORPORATE INTENT:
Mission statement
“We will satisfy our customers by providing them with great Taste, self expressive, high
quality Ice-Cola, with diverse choice of ice-cream Flavors, in a friendly and courteous
manner”
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• Chilled Flavors with new taste & combinations
• New Packing styles
• Easy Availability
Freezy Cola will hopefully meet all these market trends because it will be
containing very less amount of calories (in long run, sugar free ice-cream & diet cola will
be introduced); it is obviously giving a new& chilled taste in beverage industry; packing
style will be 100% new in Pakistan industry, i.e. a small ice-cream cup above a 500 ml
cola bottle; and as we will be providing it to almost all legal stores of Lahore in the long
run so there will not arise any question regarding its availability.
Competitive Analysis
There is no direct competitor of our product as we are going to introduce it for the
first time in Pakistan.
Indirect Competitors: From Cola Industry (Pepsi, Coke, Gourmet etc)
From Ice-cream industry (Walls, Omore’, Hico etc)
Others (Ice-tea, Ice-Coffee, CTC & other private
Restaurants providing such a type of beverage on order)
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Others (Different flavored Milk Shakes)
Geographic Factors:
In geographic segmentation, market can be divided into following categories:
World region Asia
Country Pakistan
Cities All major cities of Pakistan (Currently Lahore)
Psychographic
Changes in life style of consumer affect the company's product. As youth is the
target segment of Ice-Cream cola who are young, actives and fresh so their life style is
more trendy and fashionable, and their behavior changes from time to time. Our slogan
"Taste it today, you may be gone tomorrow" will appeal the Pakistani youth a lot, and the
company sales will hopefully increased considerably.
Preferences for Specific End Benefits:
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A recent survey shows about 90% of the Pakistan population when asked which
soft drinks do they prefer replied some thing new & too cool. In Pakistan, people prefer
our product for the following specific end benefits.
Occasion Eid, marriages, parties, others
User status regular users, potential users
Media graphics:
o All famous T.V channels (specially Geo, PTV)
o Radio Channels (Fm 103, Fm 91, Fm 106.2)
o Best selling Newspapers (The News, Jang)
o Bill boards & Hoardings
Brand Name:
Brand name can be expressed as a specific product has specific name having
specific quality. The brand name of our product is going to be
“FREEZY COLA”
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Logo:
Trademark:
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FAB Analysis:
Need of Pakistan Meeting the need, make us cool Make fresh, remove
environment from inner side laziness
Quality Statement:
It is a cola as well as dairy based premium product:
We will assure that we provide quality service and make sure that our inventory
is durable, healthy, fresh and long lasting.
7.PLACEMENT STRATEGY
The product has been placed at different channel to reach the
targeted customers
Freezy Cola has placed a freezer at many general stores and super
stores
The freezer has an appealing and attracting BLUE color, which will
attract adults and kids alike
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The inventory of the product will be stored in the freezers of those
general and super stores
Freezy Cola vans will be used to deliver the ice-cream to their
respective channels
Mobile kiosk –Freezy ice-cream cola cycles moving on city
streets, through house streets and outside educational institutions
Explanation:
We will place our product in a wide range using different channels in the
different area at advance level through a large number of retailers.
We will use this channel for distribution of “Freezy Cola”. Since the timely retailing is
the basic requirement to promote sales and have confidence of retailers, one department
will concentrate on following:
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8.PROMOTION STRATEGIES
(1) Product Positioning Strategies:
• The product will be positioned as high quality dairy & cola based premium
product
• Product will be reasonably priced & consumer will feel that their money is valued
• Offering few extra flavors will be a competitive advantage
• Working for social welfare
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• To inform, to persuade & to remind customers about your product
• Create Repeat Exposure and Continued Sales
• Widespread Name Recognition
• A single advertising campaign can create awareness, enhance brand image & to
increase sales
• Mobile kiosk – The Freezy ice-cream cola cycles as well as vans will be moving
on city streets, through house streets and outside educational institutions
(3) Slogan:
After too much brand storming by the members of this launching program, we chose the
following slogan for our product:
“TASTE IT TODAY, Before you are gone”
(4) USP:
Our product (innovation) is our USP. There is no such product in Pakistan as we
are going to introduce. So at every point, where it will be sold, is its USP. Another USP
will be that, it will be available at High-Class Food Restaurants like Pizza Hut,
McDonalds & KFC etc.
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Pull strategy will be used, which is the promotion to the end user. It’s the
incentives which are given to the customers mainly be done by means of heavy
advertising. We will do sales promotion in other ways as well.
9.PRICE
Market Penetration.
We will use Market penetration as our pricing strategy at the beginning. And will
easily Charge a high price later because we will have a substantial competitive
advantage.
Psychological Pricing:
This approach is used when the marketer wants the consumer to respond on an
emotional, rather than rational basis. For example 'price point perspective' 99 cents not
one dollar.
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As we, are charging a high price & high price is a good indicator of high value so
the pricing of our product will have a psychological impact on the public.
For our pricing to be effective, we will also focus on the price-ending numbers,
we will price customers Rs.59/- per bottle. Also we will introduce a scheme providing 6
bottles for the price of 5.
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10. PEOPLE
There is no concept of service without the service provider. Every individual has
unique skills and qualities. Our objective here will be to discover those abilities in our
employees because this will in turn benefit the person as well as the organization. It is not
the land or infrastructures that make the organization, but people.
We will first hire the people who have different qualities as our setup is large so
we need to have different people with different skills in their hands.
The task of the Manager’s job will be to handle and have grip on the staffs who is
working under them and they have to make sure everything is going perfectly. At least
six managers will be there regarding different areas like HR Manager, Sales Manager,
Area/ Field Manager, Finance Manager, Marketing Manager & Production Manager.
It has been mentioned earlier that we hire well qualified people as our employees
so that they already know how that:
Followings are the details of some of the managerial as well as non-managerial staff with
particular skills that will be hired in the beginning:
(Finance Dept: 12) (Marketing Dept: 15) (Trainers: 15-20) (HR dept: 12)
(Operation & Monitoring Dept:50-60) etc.
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11. Processes:
We will provide our product to each licensed store in the cities that will make the
product easily accessible by the customers. Moreover, our vehicles will provide
customers more ease to get our product at their door.
We are launching our product at different places at a same time; our head office is
in DEFENSE Y-Block , from where we will be operating.
Land & Building: 10 Kanals including Sales office, Plant etc.
02 Floor Building
Outlets: Not Applicable
Location & Site Details 382-Main Ferozpur Road, Opp Pel Factory, (3 Acre)
Lahore, Pakistan
Office Location: Y-Block, Defence Shopping Plaza (Gole Plaza), 5 Marla,
(Rs. 3,000,000/-)
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13. Market Entry Strategy
Soft launch
We started our soft launch plan from mid march to mid May. Soft launch plan
basically identified about the success of our Freezy cola. In soft launch plan we
distributed it to our employees and with in the selective areas of Lahore and got their
feedback. We also distributed our product with in the universities, colleges and schools
of Lahore like Punjab university, Lahore university of management and science
(LUMS),COMSATS and university of management and technology(UMT), Colleges like
Forman Christian (FC)college, & Schools like Lahore Grammar School and students of
Beacon house school system and got the feedback from students that either our product
successfully found its identity in market and either its meet the present trends of the
market.
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standards of purification and quality control in line with Good Manufacturing Practice
(GMP) regulations.
Then inauguration ceremony will take place at 7:45 to 8:15pm by our brand
ambassador. Dinner will start at 9:00pm and after the dinner Freezy cola will be served,
at the end of the ceremony managerial and non managerial staff and the entire participant
pray for the success of the product.
In the process, we will officially launch our official website as well that will be
www.Freezycola.com .
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14. Other Strategic Approaches:
Our target audience is youth that’s why we will concentrate more on school,
colleges and universities we will launch different campaigns there & give special
discounts to students of all ages. This will help us in promoting our sales and also to
make maximum people aware of our product “Freezy Cola”.
External Threats
• High interest rates
• Accident and terrorist attacks
• Increase in Inflation
• Political pressure for financing to the politician
• Private Restaurants Competition
External Opportunities
• Hot weather of Pakistan
• People are willing to pay more for their psychological satisfaction
• Customer loyalty.
• Expansion in other cities.
• Because of rising education rate, people are becoming more innovators
Internal Strengths
• A unique product in Pakistan
• High Production capacity
• Strong research & develop system
• Superior operating structure
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Internal Weakness
• Cola being asked to be prohibited by the doctors (specially to Childs)
• High dependence on revenue
• Difficulties in operations due to the quite new business.
We have a total budget of Rs, 100,000,000 that is $ 1,250,000 at the beginning of our
project. Sources of this amount of money are:
• Total Saving & collection by Our Group: Rs.30, 000,000 ($ 375,000)
• Bank Loan (by pledging our lands): Rs.70, 000,000 ($ 875,000)
Revenues & Cash flow projected with estimated sales forecast (in
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that are $7,375. On monthly basis we will earn an amount of app Rs.17, 700,000 i.e.
$221,250. Perhaps we will be able to cover whole of our expenditures within 2 years.
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Financial Ration- which ever are applicable:
• GROSS PROFIT MARGIN RATIO
This financial ratio tends to remain stable over time for our company. Significant
fluctuations can be a sign of fraud or financial irregularities. So this ratio will also be
vital for us, to be applicable.
Gross profit margin Ratio= Gross Revenue/ Net Sales
Where, Gross Rev= sales-(Raw material total expenses)
Gross Rev= 17,700,000 – 1,000,000
Gross Rev= Rs.16,700,000 = $208,750
So,
Gross profit margin Ratio= (16,700,000/17,700,000)*100=94.35%
Current Ratio
The current ratio is one of the most important ratios. It will serve us as a test of
our company's financial strength and relative efficiency i.e., does Inchworm have
too much cash on hand or not enough?
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Conclusion & Wrap up
Our innovation “Freezy Cola” is a totally new innovation & is going to be introduced
first time in the market of Pakistan. The Freezy Cola is serving in Ice-Cream as well as in
the cola industry of Pakistan. So, we will be facing competition from both Cola & the
Ice-cream industry.
We are hopeful that the budget that we have in our hands will be pretty sufficient
to be used in a full effective manner and will be able to recover all of our costs within 2
years. We will be controlling our expenses in an affective manner and for this purpose
different strategies have been set that are discussed above. We will be giving pretty
much conscious about our customers in the market & will be serving them in the best
possible way. So, we are hopeful and pretty much confident that we will succeed in
operating this business in Lahore & expanding it to other cities later on.
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