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Management Summary: 1. Product Category Demand Analysis
Management Summary: 1. Product Category Demand Analysis
Management Summary: 1. Product Category Demand Analysis
a) Market potential:
The world obesity rate nearly tripled between 1975 and 2016. But now-a-days more and more
people are concerned about their health and want to have a healthy life skipping all the unhealthy
activities from their lives. That is why wellness industry has become one of the largest and
fastest growing industries these days. People used to have unhealthy activities which lead them
to have unhealthy life. Compared to our old generation, new generation have become more prone
to watching television, spending hours using electronic devices, giving less importance to
exercise, and always having unhealthy food. Most people have become obese not by having
larger amount of food but by having poor quality of food. They go for fast food and processed
food instead of fresh and healthy food. But now people are more aware that healthy diet can lead
them to a healthy life and make them active to get success in every field of life.
The abovementioned reasons have been a contributing factor in establishing the wellness sector
which, at present, has an estimate worth of over 4.2 trillion (in 2017). Since 2010, its annual
growth rate has been more than 10% thus making it “one of the largest and fastest growing
industries” today. Keeping this market and its success globally in mind we intend to introduce
the wellness sector in Pakistan specifically Federal and Rawalpindi region. The population count
of this area is above 7.7 million (as per the stats of 2015), and if we manage to induct a mere 1%
of this population into wellness sector our business will be a rapid success.
a) Sales potential:
Keeping the global market and its success globally in mind we intend to introduce the wellness
sectors in Pakistan specifically Federal and Rawalpindi region initially. The population count of
this area is above 7.7 million (as per the stats of 2015), and if we manage to induct a mere 1% of
this population into wellness sector (in the first year) our business will be a rapid success. The
overall population of Pakistan is around 200.8 million (in 2018) and we intend to target 1
percentage of the complete population in first 5 years of our business.
2. Economic Analysis:
Our product line makes use of indigenously grown food which will support the local produces
which in turn will help the economic growth of our country. Furthermore, we can assure that
success of this product in local region will be a launch pad for us in international market thus
opening an enormous customer base for us.
3. Competition analysis:
GNC is an old, known and international company which makes it the market leader providing
customers with vitamins, supplements, herbs, etc. On the other hand Jacked Nutrition is also
right up there with them in the competition. GNC deals with only the vitamins and supplements
while the Jacked Nutrition only focuses on the protein supplements but we are giving a wide
range of healthy food for our customers. Our food will consist of both proteins and vitamins
supplements such as homemade fruit muffins, organic chicken sandwich etc. our target audience
is not only the bodybuilders but all the health conscious people. As GNC and Jacked Nutrition
import their products, we will be making homemade products for our customers and everything
will be made up from organic ingredients. The prices of our products will be less than the others
as they are importing their products from other companies. Because of the low prices the
customers will be attracted towards our products and hence our company will have greater
chances for the business in the market.
5. Technological Analysis:
Technology that can influence the way you make, disseminate/distribute, market the product and
services. Those factors are innovation is technology that may effect the operation of an industry
and its market favourably or unfavourably.
Technological advancement can optimise an organisation, internal efficiency and helps it prevent
product and services from the coming technology obsolete. The role of technology increases year
and year in an organisation for the betterment of a product or an organisation to keep it updated
according to the requirement of market.
Technological analysis include ability of technics, cost for our raw material, what product an
organisation would need in business.
Technological factors incorporate technological aspects like R&D movement, automation,
innovation motivations and the rate of technological change. These can decide boundaries to
section, minimum efficient production level and impact the redistributing choices. Besides,
technological shifts would influence costs, quality, and lead to advancement.
Technological factors are one of many external factors that can affect businesses, and are an
integral part of PESTLE analysis. They can be defined as factors which relate to the presence
and development of technology, on either a local or global scale. There are many different
examples of technological factors which affect business, visible in companies from Apple to
Starbucks
External Analysis
Product:
We have switched normal food into technologically advanced food that contain healthy items,
that contain proteins
For example, as it is difficult to eat 3 eggs to take protein for the exercise, we are making a
product in which there would be protein equal to eggs, we are using olive oil, healthy items for
making our products. The material that is used in our product is easily available in large quantity
in market and the quality of raw material would be maintained to make our customers satisfied.
As we are starting from Rawalpindi, Islamabad so to make our self easy we would place the
plant in Rawalpindi to make our delivery fast, to make it better as we would be required to place
machinery to make our product because we are taking raw materials and changing it in fine
product so we would also need machinery which would be imported and maintained to make our
product’s taste good and make our product healthier.
The food preservation would be checked and the packaging would’ve like that, that it can also be
placed in general stores and can sustain for long period in a same quality like it was made some
days before, its quality would remain same and can be placed In a store for more than 1-2
months.
6. Cultural Analysis:
Cultural analysis includes the social attitudes, behaviour and trends that impact on your
organisation and target market. Cultural analysis includes the cultural aspects and health
consciousness population growth rate, age distribution, career attitudes and emphasis on safety.
High trends in social factors affect the demand for a company's products and how that company
operates. For example, the ageing population may imply a smaller and less-willing workforce
(thus increasing the cost of labour). Furthermore, companies may change various management
strategies to adapt to social trends caused from this (such as recruiting older workers).
Cultural Analysis is looking at all social and cultural aspects of life. This may seem simple but
these aspects are involved in all the ways that we interact with each other. They are also involved
in the efficiency in businesses and organisations. So, how people work and interact with each
other, how they create a community and inclusive environments etc., that is all based on their
background and common practices. The study is important when it comes to things such as
communications and social frictions but also important for the functionality of different
organisations.
External Analysis
Product:
The environmental factors that effect to our organization is that our Plant would be placed in
Rawalpindi and in Islamabad and Rawalpindi, it rains a lot so there would be difficulty in
delivering the product to our customers, or supplying it to the general stores of Rawalpindi and
Islamabad and when we move out from Rawalpindi in Karachi there would be so hot in summers
so our product quality gets unhealthier in temperature more than 40-45. We have found the
location and the location in the place where we would not face any waste disposal situation and
everything would be according to the law of Pakistan. In next few years we would try to produce
our own electricity so that we wouldn’t find anything difficult in the production.
Fair Price:
The Organic food that we provide to our customers is priced fairly, as we want to be able to
target athletes not only from the upper upper and lower upper class but also athletes belonging
from the upper middle and middle class, so that everyone can buy our food and follow a healthy
lifestyle inexpensively.
Good Service:
Not only is the pricing fair, but we are also providing the best customer support team for our
customers to enable trust and loyalty. If there is a problem, it will be addressed and fixed in a
timely manner.
24/7 our people will be available to help the customers with their queries, no matter what they
are, all the team needs is an indication, and they are at your service and ready to assist
Good Product:
Our goal is to provide clean and healthy food to the athletes so they never themselves have to
cook or worry about those extra calories ever again. Our food is enriched with healthy fats,
minerals, vitamins, carbohydrates and lean proteins, cooked with organic oils: Vegetable oil,
Canola Oil, Coconut and Olive oil, so that our customers never have to settle for the average, but
can strive towards their goal body and excellence without ever having to look back
Take our egg and broccoli wrap for instance, now, who doesn’t love a healthy and satisfying egg
sandwich for lunch? Our not so expensive, and ready to eat salad sandwich is made with
packaged shredded broccoli, 2 hard cooked eggs in coconut oil, a low carb whole wheat tortilla
with red pepper, all organic ingredients to please your taste buds and keep you fit and smart.
Feeling Valued:
Customers feeling satisfied and valued will be our main concern. Our customers will be our top
priority and we will do everything possible from listening to their complaints and suggestions to
replying to their emails and tweets, we will try to do the best we can so that our consumer never
feels devalued.
Also, the food we provided, itself will make the customer feel cherished, esteemed and
appreciated.
c) Relevant Demographics:
We are targeting people from ages 16 onwards.
All Genders
People from any kind of religion present in Pakistan.
For example, for the Hindu minority in Pakistan, we are providing all vegan salads, pizzas,
sandwiches and much more.
2. Supplier Analysis:
Our key philosophy revolves around fresh food. We have our own farms, from which we
produce vegetables, fruits, meat, whole wheat which are looked after exceptionally at every
stage, whether it is in the growing stage, import/export stage, packing phase, or other.
To provide the finest and the freshest is the sole propose of our company.
3. Marketing Intermediaries:
Our marketing channels for distribution are:
Wholesalers
Retailers
Agents
We send our freshly produced food products directly from the Company to our wholesalers, who
keep them saved in our Warehouses until our agents arrive, who we have partnership with to
forward the Food to high end Retail Shops.
Marketing Strategy
1. Consumer Market:
a) End-User Demographics:
An end user is a person that actually uses a product. For example, a woman will buy perfume for
herself, the end user. Men purchase razors and blades so they can shave in the morning. It is
important for small company marketers to properly identify the end users of their products, so
they can create products and services that they need.
End users are also people or even animals that consume products. For example, a woman will
often buy groceries for her family, who eat the food during the week. In addition, a pet owner
will buy dog food for her dog, the end user. Consequently, the end user is not always the person
buying the product or service. Before a company targets its customers, it must properly identify
key end users or customers. One way to accomplish this is through marketing research surveys.
Product:
End user in our product are those people who are doing exercise regularly, who are going gym
regularly and wants to build their muscles good enough. Our product is for teenagers,
youngsters, people from age of 30-40. Because when a person do exercises they need extra
protein to fulfil their requirement we are providing them organic protein, we are keeping them
away from artificial protein, protein shakes, injections etc. Because it effects their body in bad
way.
Our end user consumers are the people of middle class who can afford extra protein with gym,
because when we would make it, it’s price would go high and lower class cannot afford it.
b) Psychographics:
Psychographics is a qualitative methodology used to describe consumers on psychological
attributes. Psychographics have been applied to the study of personality, values, opinions,
attitudes, interests, and lifestyles. While psychographics are often equated with lifestyle research,
it has been argued that psychographics should apply to the study of cognitive attributes such as
attitudes, interests, opinions, and beliefs while lifestyle should apply to the study of overt
behaviour (e.g., activities).
Psychographic Information:
Concerned with health and appearance
Wants a healthy lifestyle, but doesn’t have much time
Enjoys going online in the evenings, big fan of Pinterest
Tends to favour quality over economy
Finds fulfilment in her career and family
Values time with a small group of friends
Product:
Our product is like that, that it targets youngsters and youngsters are eagerly waiting for protein
products that are organic not artificial, we are taking them away from artificial things, there are
many people who don’t take protein shakes, protein bottles because they are artificial, so when
we would launch our product it would take whole market in hand and people are health
conscious also, artificial protein has bad effects that can destroy their body
We would deliver our product to the consumer’s home to make them feel good and to save their
time as if someone wants to do exercise he can order 1 hour before it and in 30minutes he would
get it at home or at gym without going anywhere or without waiting for it he would get it in hand
as he would tell us. People wants to build their muscles as early as they can do an organic protein
would fulfil their needs.
Product:
We are making the decision to open a company which would provide organic protein to
teenagers, youngsters, athletes. The information that was needed for making this company was
that from where we would find labour work force, raw materials, machinery and equipment. We
have found everything now moving for starting our company and promoting it to gather more
and more people because it is totally new product.
The evidence that we have collected is valuable or not it is a major question, the requirement
would be met, our product would met the level/need of people living in these two cities because
people prefer organic things more than artificial.
The requirement of people/ customers we have identified so far would be fulfilled by our
organization and the decision we made to start this company was very good and would become
benefitable and would provide service/ product to teenagers.
B) Market Mix
5. Pricing objectives
We plan to follow the survival and maximization of profits as short-term objectives as
discussed above.
For a new marker/brand like ourselves we need to first survive in order to make a name
for ourselves. Secondly, maximize our profits to cover up all the costs used in the
production, by setting the most favorable price.
Psychological Pricing
This kind of pricing strategy considers the psychology of prices, i.e. the price says
something about the product. Our company will be following the no compromise on
quality rule so the customers will get the idea after using our products that our prices are
right and they complete with the value it offers.
Although, above we did mention that our prices will considerately be low. It is low in
comparison to all the food or ingredients bought separately. Our prices will also display
the value and quality overall.
Promotion Pricing
A backup pricing strategy is the promotional strategy which is for short term. Buy
decreasing the prices by a huge margin in the form of discounts and special-event pricing
we can attract more customers.
Incase people don’t trust our brand with its respected prices than this will be the strategy
that we’ll be following.
Business to Business:
Our product/products will be placed and provided to the Gyms, Yoga centers and other respected
organizations such as Institutes, Offices etc.
Now a days for giving employees a state of relief or giving them highly suitable environment to
work on, companies or organizations provide the facility of gyms and cardio workout sessions.
Most of the working class uses their intra gyms which do not affect the timings of the work.
Products will be provided to the companies and the consumer or customers will get it from their
cafeterias, stock availability shelves.
Most of the universities have gyms and student or the faculty members requires their diet to be
followed on time and on proper schedules, therefore in the universities stock displays will be
made, stock availability will be ensured and it will be under the policy of university how they
will price that, we will provide our products to the universities where they can provide it to the
consumers.
The consumer there can easily get it from the specific area or the cafeterias where our products
will be available.
Business to Costumer:
Customers will be in contact with the product supplying, customers will be given a source to
order the required food product at a specific time or on a specific day.
For this purpose, telephonic orders and order by application will be available. Ordering through
application will give extra features of setting up a proper schedule for a month or for the week.
What product is required and how much quantity of it is required on the dates or on their
schedule.
Direct distribution:
Orders will be directly delivered to the doorsteps of the customers without any involvements of
any medium stock availability stores or shelves.
This method will be fast and accurate and it will be mostly considered by housewives who
workout in the house. Some athletes work in their indoor gyms and other people who require
protein or carbs due to medical bases.
Indirect distribution:
Including the intermediaries which will help the products to be get delivered or to be utilized
such as, using wholesalers, retailers, outsourcers and getting the products booked online by some
partners which will help the business grow and will provide more effective and efficient
delivery.
b) Physical distribution decision:
Physical distribution includes all the activities associated with the supply of finished product at
every step, from the production line to the consumers. Important physical distribution functions
include customer service, order processing, inventory control, transportation and logistics, and
packaging and materials.
Physical distribution allows us to handle our products when it is manufactured and before it is
delivered to the consumers, the in between duration is the most important one. If our products are
of glass or some fragile material. Inventory management must be done to the finest, if the
products get damaged the whole idea will collapse.
Similarly, we are dealing in fragile food products, handled with extreme care, transporting from
the manufacturing area to the consumers will be a great big task, as it is the food category it
requires perfect temperature and designated packaging for the movement of the products. Special
delivery trucks will be hired which will have cooling systems and proper package handling
sections.
After picking up the products from the manufacturing cell, they are to be stored in a warehouse
where all the parameters of storage will be considered which are required for such type of
category.
After the process of managing the inventory there comes the distribution of the products to the
specific customers or the organizations. Customers who are far away from the warehouse they
will get the products delivered as fine as the customers who are near will get. Proper distributing
network will be maintained.
After this there are certain issues that are to be considered for better response and repetitive
orders i.e. Customer relationships, when we are providing the desired quantity and desired
products there is a chance of an error or something etc. Customers are always right, if the
customer wants to complain or he wants some extra features to be added in the delivery service
or he wants his order to be replaced or any issue that he is facing he wants it to be resolved on
urgent basis, our customer support service surely handle that to maintain more strong customer
relationships.
Our ordering process will be simple and very effective. Picking the order up via telephonic lines
and other E-order schemes and the order will be delivered to the details of the address. Time
limit will be there for making this experience even better, minimum pre order must be given with
a margin of an hour.
Media relations will be maintained and every thing will be cooperated with the media that they
want us as a company.
Employee relationship is the most important factor that we will observe on if the employees are
not working in friendly environment they will be not satisfied and will do less efficient work.
Counselling is very basic too, employees who are not motivated or they are having a hard time
with the work they are facing they will be counselled to work better and live better.
Surveys will be conducted on the basis of what the company is giving and are you satisfied or
not. It will be done for the beneficiary of the stakeholders.
d) Sales promotion activities:
Sales promotion is the process of persuading a potential customer to buy the product. Sales
promotion is designed to be used as a short-term tactic to boost sales – it is rarely suitable as a
method of building long-term customer loyalty. Some sales promotions are aimed at consumers
Free Gifts: people are attracted and they buy things for the free gifts, like if the customers
buy one-week plan, we will gift them 2 days free supplements.
Free Samples: providing samples for the usage at promotional events gather customer at a
very high rate.
Discounted Prices. In the off seasons or the peak seasons promotional prices can be given
like 25 percent off on all the shakes and similarly gym members can get special discounts
or prices etc.
Joint Promotions: Getting attached with other brands or organizations for example we
will provide discounts on the vouchers you will buy for the movie tickets and in this case
people many people will buy. And some gym promote their selves as well so we will be
their partners.
Vouchers and Coupons: people will be granted with vouchers for discounts and similarly
coupons will be given for online discounts.
Social Media Contests and Giveaways: filling up the surveys and regular use of the apps
will grant them giveaways in a sense that they promote their products on social media
with certain filters or check ins.
Buy-One-Get-One-Free: this is the most attractive thing to gather customers buy one get
one free gives a huge customer shopping turnover,
Customer Loyalty Programs: customers who are being loyal to the payments and the
products will be awarded with customer loyalty giveaways and special discounts or
leverages.
Concluding Remarks
The project was really good but it was difficult to make people understand that healthy eating
leads to a healthy life. As there are very few competitors in respect to this particular field, so it
was difficult for us to search for the products. We have learnt to make marketing strategies by
surveying the customers, the competitors, the market size, etc. Sustainability of the product is
more difficult and important than the idea itself.