Pink & Blue Energy Drink

P&B Beverage company

ACKNOWLEDEMENT

We offer our humblest thanks to ALMIGHTY ALLAH who is beneficial, merciful and

whose blessing enabled us to complete this project.

We can’t find the words to express gratitude for our parents whose prayers has always

been the key to our success, which made us worthy of achievements and all the blessings

that God showered upon us. The affection of our mother and encouragement of our father

led us to reach this position that we have.

We are thankful to a number of people who have assisted and aided us in going beyond

the theoretical concepts provided in the books, and to make a practical report keeping in

view the rational situation that persists in the market. We appreciate the efforts of Mr.

Arif Vaseer for giving us the opportunity to get involved in this project, which has been

completed after extensive hard work and effort. We are also very grateful to Mr.Saqib

Shahzad for his help and high support.

We are also thankful to all our friends who supported us throughout our project and give

us good advice whenever we needed. Their company was like a gift of God for us.

Sincere thanks to all


EXECUTIVE SUMMARY

This marketing plan deals with the launching of a new energy drink named “Pink &

Blue” in Rawalpindi and Islamabad by “P&B BEVERAGE COMPANY”. Our products

will be positioned very carefully. They will be of extremely high quality to ensure

customer satisfaction, supported by impeccable service to our customers.

The report contains and explains the major variable components, which are required in

the process of a product launch. It provides in-depth analysis of the energy drink, which

is going to be presented in the market, stating the differential advantage the product has

over other competing brands in the market.

Currently in Pakistan there is low trend of using energy drink and only males are

targeted in the market; however the trend is continuously rising especially in the urban

areas. This gives us a hope and helps us to be optimistic. We can suppose that if our

product is properly advertised and awareness is created among the people, our firm will

have a bright future. We will have to adopt a marketing strategy which will not only

make our product known to the customers but also make them realize the importance and

benefits of using energy drinks.

Our target customers would be the generation of 20 to 40 years of age, males and females

will targeted separately. The customers of big cities would be targeted belonging to the

upper and middle class.

The marketing mix has highlighted all the key factors which are to be kept under

consideration, and every aspect has been dealt with utmost details, keeping in view the

internal and the external factors, especially the terms and conditions of the market.


Initial plans are to produce two main products primarily focusing men and women. These

products will be sold in different sized cans ranging from the 250 ml to the 500 ml cans.

The Pink coloured can is specially targeting women and Blue is for men.

Our marketing strategy will be based mainly on ensuring customers know what need the

product is able to fulfill, and making the right product and information available to the

right target customer. We will ensure that our product price is taken into consideration

people's budgets, and that these people appreciate the product and know that it exists,

including where to find it. However these prices will also take into consideration the cost

of production and distribution so as to ensure that we remain viable and operational. The

marketing effort will convey the sense of quality and satisfaction in every picture, every

promotion, and every publication.

We intend to provide the customer with more than just a traditional energy drink. Our

customers are assured of products that have been produced using the highest quality

standards.


COMPANY PROFILE

The P&B Beverages is a new firm going to start its operation in Islamabad. It will start

with an energy drink product with the name “Pink and Blue”. Pink as the color represents

is specifically targeting women and Blue is specifically targeting men. The firm is going

to start its operations in a limited geographical level.

To continue to thrive as a business over the next ten years and beyond, we must look

ahead, understand the trends and forces that will shape our business in the future and

move swiftly to prepare for what's to come. We must get ready for tomorrow today.

Vision:

To provide maximum level of service to our customers;

To create high standards in customer care;

To offer maximum quality control of products and services;

Mission:

“Our mission is to serve people by providing quality energy drink”

Slogan:

“FEEL THE POWER”

Corporate Objective:

“We strive to operate our company on a sound financial basis of profitable growth increasing value for our stake holders and creating career opportunities

and financial rewards for our employees”


GAP ANALYSIS

In Pakistan it has been noted that the majority of energy drink consumers continuously

change brand, so thus there is no brand loyalty for energy drinks in Pakistan. And as

energy drinks are new to Pakistan, the market share for any specific brand is not

determined as yet. But still Redbull is on the top in market.

The market segment, which we are targeting for Pink and Blue Energy Drink, comprises

men and women who have a busy life style and need to keep energized to get through the

tough day. So therefore they need something, which provides them with energy through

out the day. There are some imported drinks in the market, but they are expensive as they

are imported. Mainly the existing brands in the market are targeting Men. We have

identified a new segment which is targeting Women which is Pink in color as the color

represents feminine so this product is mainly targeting women. The can color is also in

Pink Color to distinguish it from other. The recipe and ingredients for the female energy

drink will be much lighter than those for men.

ENVIRONMENTAL ANALYSIS


Because of the growing craze over energy drinks, the number of energy drink brands has

been increasing steadily as everyone wants to take advantage of the expanding market.

The demand for energy drinks could be a direct result of people’s lives becoming busier.

As people fill their lives to capacity and then add even more responsibilities, the daily

schedules can become quite overwhelming, leaving little time for rest, relaxation, or

sleep.

All of this activity causes stress and fatigue, but there is no time to stop for a moment and

recharge the batteries. As a result, people often turn to refreshment to keep them going

throughout the day and give them the energy they need to complete everything they need

to do. Energy drinks are one of the more popular “stimulants” because they are quick and

easy, and most have few recognizable negative side effects.

In Pakistan with the increasing trends of using energy drinks number of brands available

are increasing. There are distributors who import these ready to drink around the world.

Main market to import energy drinks is UAE, from there importers import in bulk and

then distribute in their target areas. OZO Switzerland is a beverage company with the

most extensive distribution system in the world. To distribute their product in Pakistan

they have granted the rights to Ghani Group of Industries. Who recently have soft

launched the product in Lahore market as OZO energy drink can be found in cafeterias at

colleges and universities. This is the only brand that distributors import it directly from

the manufacturer and they make its packaging accordingly then.

The majority of the sales are coming from urban areas where people have greater

purchasing power and awareness of such drinks. Sales of energy drinks are limited in

rural areas although they are growing. Around 66% of the Pakistani population resides in

rural areas, but most do not buy energy drinks as they are too expensive.

Energy drinks are soft drinks advertised as being specifically designed to provide

energy. The number of energy drink brands is actually much greater than people realize.


Red Bull has been the dominant brand for many years, probably because it was one of

the first energy drinks developed. Word of mouth has been a big part of Red Bull’s

advertising.

Red Bull was the first successful energy drink in the market. But afterward companies

realize that it is a very big market of those people who like energy drinks. So other

companies also jumped in to share their part. Recently we have seen many companies in

Pakistan, like Pepsi and Shezan, who have jumped in energy drinks business. One thing

is common in all energy drinks that they are costly then other drinks; juices, malt,

carbohydrate drinks etc. They have a special market which is increasing day by day.

After lots of energy drinks in market, all are trying to compete with each other in any way

possible. They are trying to give a better taste because taste is the most prominent change

in these energy drinks. Taste is not acceptable in mass market, however many are trying

now to increase their market share by giving a different taste. Second thing is their price,

they are trying to reduce the price to gather a larger share like a big company Pepsi have

introduced their energy drink ‘Sting’ in just Rs. 60/- as compare to Red Bull the most

famous energy drink costs above Rs. 140/- Thirdly they are working on distribution,

trying to make their drinks available in all parts of the city, in every shop. Few energy

drinks have different strategy to remain with their specific market.

COMPETITOR ANALYSIS


The energy drink industry is still in its birth stage in Pakistan and is highly disorganized

and fragmented. There are no large scale competitors present and only a few international

players exist in the markets that sell their products via very upscale retail outlets catering

to the very elite of our society. However, the product will face a high level of competition

from these international players that are increasing their supply of the product in the

market day by day.

Many new soft and energy drinks have been developed in recent years, worldwide,

offering consumers a multitude of more interesting and unusual alternatives to standard

soft drinks.

Pre-mixed and flavored energy drinks tend to appeal to consumers aged between 17 and

40- years old. To meet the demands of these consumers, new energy drinks are coming

up every day in the Pakistani markets. Furthermore, one of the recent launches of these

kinds of drinks in Pakistan includes Iced tea by Nestle.

Our most notable competitors in the market are:

Red Bull

Red bull is the pioneer and most famous energy drink in the market. It was the first one to

introduce energy drinks in Pakistani market. Red Bull kept its price high and remains

with their specific market they target. Their price is Rs. 140/- which makes it the most

expensive energy drink in the market.

It is mostly available in posh areas of the city in start. Afterward there is a big change that

they seek through another interesting market and start to supply their bottles to Pan wala

shops which was not bad at all. People over there start trying it and I think that idea

didn’t catch by mass market because it’s hard to see Red Bull at Pan wali dukan

anymore. They have shifted to Pepsi’s ‘Sting’. The pan walas now keep sting as an

energy drink rather than red bull. People usually are not accommodating when it comes


to energy drinks’ sharp taste. Many people regard the taste as the cough syrup. Though

who are fan of Red Bull taunt to all other available energy drinks in market that they have

sweeter taste.

Booster

Booster is a German energy drink brand. It attracts one from the start as one looks to its

packing. Like all other energy drinks available in long think tin packs, this is available in

small, fat plastic bottle. Its packing is different from all energy drinks in the market so it

appeals you at the first place.

Second important thing is its price; this is an imported drink which is based in Germany

so people would likely to trust the quality of drink. It is of Rs. 75/- but if one buy it from

whole sale market then one might also get it at the price of Rs. 65/-

Third interesting thing about Booster is its awesome taste. This was the first energy drink

which makes a good impression of whole industry in the minds of consumers. Its unique

bottle design call customers to try it for once and then become a regular customer of it for

as long as Pepsico’s Sting jumped in.

Ozo

Ozo has a little different taste. Most important thing about this energy drink is that is

available in few stores only, they have low distribution cycle which makes it hard to find.

It is also in different bottle rather than typical energy drinks thin and long tins. This is

available in green glass small size bottle with a plastic cap.

Taste of this drink is acceptable. Many times there are comments by the customers that

they want to actually try this new drink but are not able to find it in the market. This is

the cheapest energy drink in the market till now which costs Rs. 55/- in retail market. If

they work on the availability of this drink then it might gain an edge over other drinks in

terms of low pricing.


Power Full

Power Full is also a new energy drink in market. Red Bull would be the oldest one but

new energy drinks are taking their share and at one side they are reducing the share of

Red Bull but at the other side they are creating a larger market for energy drink users.

Its bottle didn’t attract a lot of target market but its red color on tin indicates me that it

would be something like Red Bull. And its taste is similar to that of BOOSTER. However

it is less sweet than Booster and people might like to have this instead of Booster. But its

price is Rs. 100/- and for me sweet is good. People usually prefer booster over power full

because of its attractive packaging.

Speed

After seeing lot of potential in energy drinks market, Shezan also introduced its energy

drink with the name of Speed. Their packing is cool. Plus their price was like of Red

Bull, it is available for Rs. 140/- whereas new energy drinks have tried to beat the prices.

Speed has kept its price above which might attract people about its quality and

uniqueness.

Sting

Pepsi introduced their energy drink in Pakistan with the name of Sting. They must have

come in the market after lot of research. They checked the loop holes in energy drinks

market and try to fix it from the product. Earlier energy drinks was considered as a sour

drink which people take to energize them and to wake up late at night. Sting has added

better taste in it. They have made it full of flavor with ingredients of energy drinks as

well.

They have introduced two flavors in energy drinks which is a positive factor to compete

all energy drinks available in market. For competing Red Bull they have introduced their

red berry flavor in red can. Taste is regarded as nice.


Most important about Sting to catch the mass market is its rates. They are one of the

cheapest energy drinks in the market. Sting can is of Rs. 60/- If a less price energy drink

came in market, people would think about its quality and might not go for it. But when a

big company like Pepsi co came up with energy drink, whether its price low, people

won’t question about its quality.

Although there are many similarities between all the different energy drink brands, there

are obviously some differences. The primary difference that distinguishes many energy

drinks is the ingredient list. All energy drinks must contain something that results in an

increase of energy, but there are various ways to achieve this effect. All of the energy

drink brands experiment with their own unique mixture of ingredients, adding higher

concentrations of some and lower concentrations of others.

SOCIO POLITICAL FACTORS

Political/government factors affect The P&B Beverage Company in many ways. Food

and drink safety and security regulations will continue to be a hot issue as many

producers strive to make sure that there will be only good and safe ingredients entering

and leaving their processing units. In this industry, bad experience by customers turns

into bad reputation. The beverage company needs to be in compliance now more than

ever with food and drink safety commissions so that they can ensure that there will be no

bad experiences to give them poor publicity. Socially and culturally, The Beverage

Company definitely has to be emphasizing to their need to be culturally sensitive. As

minority groups are increasing every year, businesses have to be sensitive and

knowledgeable about all different cultures in order to satisfy the diverse group of

consumers.

CUSTOMER ANALYSIS


Who are our consumers?

The first step in target marketing process is segmentation. We segmented the market aged

between 20-40 years because in this segment, we came to know that consumers specially

young adults aged 20-30 are increasingly facing too many options to choose from.

Target market

Initially the business will be operational in Rawalpindi and Islamabad, so we can sell

directly to the retailers without involving any third party. Afterwards when the business

will expand its activities in other cities independent distributers will be hired. We will

also make sure that our product is available in the top universities of the twin cities.

Market Segmentation

Market segmentation proves beneficial if it is done correctly. A straight forward approach

to segmenting, targeting and reaching a market involves five steps:

Form prospective buyers into segments by characteristics.

Form products to be sold into groups.

Estimate the size of the markets.

Select target markets.

Take marketing actions to reach the target markets.

In segmenting Pink & Blue’s market, age, density, income and life style are all useful

characteristics for market segmentation. Age can be divided into various parts such as 20-

24 (students & athletes) and 25-40 (professional athletes and business officials). Density

segmentation can follow urban and suburban localities. Income can be divided simply by

under Rs.40, 000, Rs.40, 001-60,000, Rs.60, 001-Rs.80,000 and Rs.80,001 and above.

Lastly, lifestyle can by separated into health conscious consumers and those who are not.


Obviously, Islamabad market is quite large, so selecting target markets would be ideal.

Focusing on caffeine drinkers (approximately ages 18+), in general, would be a wise

decision because Pink & Blue can be a substitute drink for caffeine beverages like coffee.

We also think that focusing more specifically on university students and athletes as well

as professionals, aged 20-35, would benefit from Pink & Blue tremendously because

these two segments are the company’s main consumers. After all, some of the main

benefits of Pink & Blue are to help improve physical endurance, concentration, reaction

speed and increase mental alertness. Also, focusing on health conscious consumers would

account for people who are concerned

BUYER ANALYSIS

Brand Loyalty:

The Pakistani customers do not have awareness of energy drink category as such. Thus

Pink and Blue has to create awareness among the target audience of the category,

widening the target base, while creating a differentiating factor for itself, from soft drinks

that will stimulate mind and body simultaneously.

Consumer Insights:

The target customers believe that energy drink is associated with sports /

adventure only. It is something not to be consumed for any social hang out of

friends and family.

Energy drinks is for the male segment only. It is socially unacceptable for the

females to consume energy drinks.

The energy drinks are only for teens and young adults. It is taken as totally

unacceptable for the adults aged 30 and above.


A large chunk of the market sees energy drinks as something addictive, drug

infused beverage with negative health implication.

Teens consume it to boost their brain powers before their exams, and to delay

their sleep.

There are certain cultural barriers which term energy drinks to provide fake

energy, and believe these companies are playing psychological games with the

minds of consumers.

Energy Drink contains vitamins which are to be taken by people with vitamin

deficiency, not by normal people. As doctor’s advice, Vitamins should only be

taken to substitute a vitamin deficiency in the body, or during times when you are

undergoing lots of physical training where the body consumes more vitamins, fats

and carbohydrates.

Demographics:

Age: 20-40

Gender: Males and Females

Education: High School Graduates/ Intermediates at least.

Geographic Location: Islamabad and Rawalpindi (Upper & Middle class

areas)

Occupation: Students, Working people, Athletes and People into sports.

Lifestyle Profile


Lifestyles in the case of Pink & Blue Energy Drink are determined by our consumer’s

personal characteristics; for example, their likes, dislikes and personality. Secondly, his

or her personal context, for example university, group or number of friends and lastly

their needs and emotions. These three sets of factors together influenced the pattern of

our consumer’s activities and how they spend time and money. As Pink & Blue is an

energy drink and the idea of an energy drink is new to the Pakistani market, we can say

people who like to try new things, are social and have the desire to do better and more

will buy Pink & Blue.

Attitudes

Attitudes can be used to predict behavior. When we knew that people of ages twenty to

forty have a tough routine and they strive to do better whether it’s in sports, university

work or even business matters, we predicted that they would likely have an energy drink

that would keep them energized and refreshed for better results in whatever they do.

Motivation

Motivation has two components: drive/arousal and goal object. Therefore, the

identification of people’s need to stay fresh and going was kept in mind. We will

motivate these people by showing and telling them how their goals can be achieved if

they keep themselves refreshed.

Benefit Sought

Markets can also be segmented based on consumer’s preferences for a specific product

attribute or characteristic. Various energy drinks help prevent stress, inattentiveness,

physical and mental weakness. The energy drink, that we have named Pink & Blue, is not

only good for preventing stress, inattentiveness and physical and mental weakness, its

also good for caffeine drinkers (TEA & COFFEE) as it also has a fair bit of amount of

caffeine in it.

Decision Making Involved:


The consumer’s decision making has many stages and various factors affecting it, they

are as follows:

1. Problem Recognition

In our case, a student or a working professional may recognize that he/she is running out

of physical and mental energy due to workload, resulting in stress or getting physically

weak while playing a particular type of sport. In that case, they will look for things that

will give them and energy and power to overcome weakness.

2. Information Search

Here the consumer will look for products that will satisfy his need. He will complete his

search and will find energy drinks as the best alternative. A lot of options will come as

there are so many brands in the market present widely.

3. Evaluation Of Alternatives

Pink & Blue with its excellent quality, a fair price and an edge over other energy drinks

targeting separately women and men, will be a sure choice over average quality,

expensive energy drink. Decision criteria of our consumer would be on the basis of price,

style and quality of the energy drink.

4. Purchase


After choosing the best alternative, our consumer will be ready for the purchase. He will

buy the product and will consume it.

5. Post-Purchase Behavior

Once a consumer buys Pink & Blue, he or she may engage in post-purchase behavior, via

further purchases and/or re-evaluation. Many times, one purchase leads to others.

Although, dissatisfaction is often due to a doubt whether a correct decision has been

made or not. In order to satisfy our consumers, we will make sure that we provide them

the best quality and ads aimed at purchasers.

Routine Consumer Decision Making

This will occur in the case of buying Pink & Blue, as this decision involves a consumer

buying out of habit i.e. professional athletes, therefore, they will skip steps in the process.

He or she will spend little time shopping and often re-buys the same brand. In this

category are items/products with which a person has much experience. Pink & Blue will

be bought regularly as it has no perceived risk and is relatively low in price as compared

to our competitors. Once the consumer will realize that Pink & Blue is consumed, a

repurchase is made.

MARKETING OBJECTIVES

The main marketing objectives for the first five years would be:


Building an image in the market for Pink & Blue so that consumers see it as a

superior product. Creating a sense of brand loyalty among consumers for Pink &

Blue

Focus on giving the consumers what they want when they want it. Making them

believe that Pink & Blue IS WHAT THEY WANT.

Our main plan would be to minimize operating costs as much as possible. So the

main aim is minimize costs and maximize profits.

To generate awareness about the uniqueness of the brand to the targeted segment

To differentiate it from its competitors

To induce trial and repurchases

To maintain brand loyalty after the period of trial and further enhance brand

image

To reach the target market through effective utilization of communication

channels

To establish a memorable and pleasing image in the target audiences mind

To establish Pink & Blue as the only identified brand linked to purity and

innovation

SWOT ANALYSIS


Strengths:

Strong financial background.

Separate Drink is also available for the females which are lighter in taste then

those for males.

No visible change in sales even after price increase.

Knowledge of target markets.

Weaknesses:

Lack of a reputation in comparison to our competitors.

Large market share of other energy drinks like Red Bull.

Limited market.

Large market share of other energy drinks.

Opportunities:

Expansion in new markets

A good opportunity facing us because energy drinks market can be expanded very

well.

There is a demand in the current market to adopt different flavours and versions

of the product. Pink and Blue should widen its product line to retain the current

market as well as capture more market.

The product can be made available in the universities where the prime target

market spends lots of the time. It will also help the brand to build a reputation of a

fashion social symbol.

Threats:

Unstable political situation of our country.

There is a misconception among the consumers that energy drinks contains

contents to provide fake energy which are harmful for the health.

Emergence of substitutes.

Price war.


PORTER FIVE FORCES

Applying Porter’s five forces to the Pakistani energy drink market allows us to garner a

retrospective view of the potential attractiveness in terms of profitability of the industry.

Threat of new Entrants (Low)

Although energy drinks are similar in their nature, they differ greatly in their ingredients

and its concentration level. Energy drink market is growing like a weed. Companies are

striving to put out the best energy drink designed for the potential customer that they

have in mind. They are concerned with packing whatever ingredients they can to improve

the stamina and physical performance of human beings. Therefore, the primary difference

that distinguishes many energy drinks is the ingredient list.

Customers do not face any significant costs in switching suppliers, as they are free to

choose any brands they wish. No factor restricts them to use any particular brand. It is

easy, cheap and convenient to buy any other brand they wish. Wholesalers do not find it

difficult to import energy drinks in Pakistan because they do not need a lot of capital to

do so. The new comers face difficulty in accessing distribution channels in Pakistan. This

is because of the agreements made between the distributors and companies under which

distributors are allowed to circulate only company related brands. New comers face

excessive cost to turn these distributors in their favour. Mostly, other brands of energy

drinks do not have a franchise based system but only they are imported by whole sellers

who make them available in markets and create a competition in the industry.

Distributors on the other hand, have to make sure that product is available throughout the

country and therefore face high costs.

Most of the foreign energy drink brands sold in Pakistan have manufacturing plants in

their home country; they come to Pakistan via importing of whole sellers, while in

Pakistan they mostly focus on distribution channels and marketing. Therefore, this also

shows how different companies will compete more on distribution channels than the

product itself.


Experience does helps in continuously lower costs. This is because of strong distribution

partnership made between the company and distributor. Main cost faced in Pakistan by

these foreign companies consists of distribution cost. Good relationship created through

long term business dealings with distributors ensures distributors confidence and lower

bargaining power over the company itself.

There are some basic requirements that need to be fulfilled before entering this industry.

In Pakistan people have misconception about the product ingredients and its side effects.

Therefore some restrictions are placed by government before initiating any of such

projects. Government needs to be assured of product quality and standard. Therefore

before starting a business, company needs to get permission for business.

New comer expects strong retaliation on entering the market. This retaliation comes

naturally as Red Bull is strong brand, almost acting like a monopoly. Therefore, as a

monopolist it is expected for them to maintain its position and derail anyone who comes

as an obstacle.

Bargaining Power of Suppliers (Neutral)

The inputs are standard rather than unique or differentiated. Energy Drinks operating in

Pakistan are just a franchise which imports basic products from the suppliers and sold it

in Pakistan through distribution partners. Therefore the product that these distributors get

is standardized.

Suppliers of the ingredients of Energy Drinks are needed by other industries as well and

they has the option of switching its suppliers because the inputs are standard therefore

manufacturers has a power over their suppliers. But on the other hand, the suppliers have

number of other industries to supply to therefore they also have a power in the industries,

therefore this force is getting a neutral rating.


Bargaining Power of Buyers (High)

The bargaining power of buyer is high in this industry. Although there aren’t a large

number of customers and customers don’t incur any costs in switching brands, the

industry seems pretty attractive in terms of buyer power. First of all, the customer doesn’t

require any important information regarding the product. It’s an energy drink with its

apparent functionality and there’s no need to convey additional information concerning

the usage. As there are many new brands coming in the market customers can easily

switch to another brand in no time.

Threat of Substitutes (High)

Most energy drinks are carbonated drinks that contain large amounts of caffeine and

sugar with additional ingredients. Energy drinks are used to satisfy the need for quick

mental alertness. Several substitutes were in the market for energy drinks even before

energy drinks were introduced. For example, coffee can be substitute because of the

general perception of consumer that its consumption promotes mental alertness.

Presences of many substitutes in the market that are easily available pose a certain threat

to energy drinks. These substitutes are easily available in shops.

Rivalry among Existing Firms (Medium)

The energy drink industry in Pakistan has a high concentration ratio, meaning that fewer

firms hold the larger part of the market. Especially since this market is smaller in

Pakistan then in other countries and also has a slower growth rate. This can be due to the

higher prices of the product. This means that energy drink industry is less competitive

and this fact makes the industry favourable. Customers here can freely switch their brand

preference without incurring any costs, which is an unfavourable factor for the industry.


MARKETING MIX

Product:

The product will be the best quality product in the market made from the finest

ingredients through the best processes. Pink & Blue Energy Drink is the beginning for a

venture into the future. Pink and Blue energy drink water contains Carbonated water,

high fructose syrup and/or sugar, Citric Acid, orange and apple juice from concentrate,

natural flavors, Sodium Benzoate, Sodium Polyphosphates, Caffeine, Erythrism Acid,

Maurine, Calcium Imodium Etta (to product flavor), Potassium Benzoate, Brominates

Vegetable oil, Calcium Disodium EDTA, Modified Food Starch.

Pink & Blue:

Our product is an energy drink. Now the question here is; what exactly is an energy

drink? Is it something that keeps you awake for long hours? Something that gives you

extra energy to work for hours? Or is it a supplement that compensates for the lost salt

and water in your body?

Energy drink is a beverage, which adds energized ingredients and vitamins for body

stimulant. Despite the pleasant taste, the significant feature of energy drink is its ability to

enhance power, strength, and speed. It helps to extend the duration during which the body

is able to efficiently engage in specific mental or physical activity.

It’s hard to choose one particular energy drink over another since today's breed of energy

drinks includes primarily the same thing.

Pink & Blue offers better taste, it is an energy drink that can be used by anyone and

everyone. Pink & Blue provides better quality and a better image, the competition for

energy drinks is high no doubt, but our drink provides a light better tasting with targeting

specifically women with a new product, better packaged and better imaged energy


supplement that can even be used as a substitute for water which can compensate for your

body water and salts.

Price:

Pricing wise, we offer a high quality and fashionable product at a lower price. It allows us

to position ourselves as one of the best quality/price balanced brands. Initially we will

launch product with an introductory price so more and more people can be attracted and

can buy and test the product.

Purchase price of 1 can is Rs.50

Promotion:

The promotion effort will be targeted toward not only informing the target audience but

also creating an image of the product.

Communication Channels

T.V campaigns (through Cable)

Bill boards

Local Newspapers

Posters

Placement:

The distribution strategy of Pink & Blue basically relates to the fact that how it should

reach its target market. The company intends to use a mix of exclusive distribution in

certain areas and intensive distribution in high turnover areas as well as channels.


VALUE CHAIN ANALYSIS

Support Activities:

Firm infrastructure: Refers to the number of employees and their management

techniques according to which the consumer perspectives relating to a product are

identified. New methodologies of communicating with the consumers are adopted,

change oriented behavior is used throughout the organization. Firm infrastructure of P&E

is very strong. The whole distribution and management is to be handled by Pakistani staff

who are much aware of the psyche of people and the areas where the product is being

launched.

Human Resource Management: HR activities will be decided by Top Management

within the country. Staff will be hired within the country who are better and have well

know how of the operations.

Technology Development: P&B will invests heavily in R&D and always try to come

up with something unique which serves their name best in order to let them stay the

market leader of energy drinks market.

Inbound Logistics

Operations Outbound Logistics

Marketing and Sales

Service

Procurement

Technology Development

Human Resource Management

Firm Infrastructure

SupportActivities


Procurement: P&B will have more than one supplier and the inputs or raw materials

are not unique but rather standard so, it tries to buy those raw materials which are

superior in quality, which will allow the final product to be better than the previous one

in order to satisfy consumers and meet their demands. P&B cannot compromise on the

quality of the product hence raw materials which are acquired from different resources

are of a premium quality.

Primary Activities:

Inbound Logistics: This involves bringing and procuring raw materials for the

business. Raw materials are handled effectively there in order to produce the best product

so that the final product has improved quality every time. Best raw material is selected

and is used for the preparation of final product.

Operations: Innovating new and unique products is one of the competency of P&B.

Operations are carried out such that new product can be developed by investing more and

more in research and development. Consumers’ attention span towards any product is

decreasing with time so consumers also expect companies to bring something new every

time. Operations carried out are according to customer’s specifications and requirements

which are unique in processes and produce innovative outputs.


Outbound Logistics: First of all the final product will be stored in depot, from where

the product will be sent out for sale in market to the retailers.

Marketing and Sales: This is one of the important factors which will help in the

success of Pink and Blue. To keep the company abreast with competition and to provide

support to its channel partners and to increase the sales, P&B will put lot of effort in its

marketing activities. This includes maintaining excellent relations with its channel

partners, making huge investments in Advertising for the launch of a product.

Service: In this industry after sale service is not required.

SUPPLY CHAIN MODEL


COMPANY

Raw Material/ Suppliers

WAREHOUSE

DISTRIBUTOR

WHOLESALER RETAILER

RETAILER CUSTOMER

CUSTOMER

SALESMEN

FINISHED GOOD


In the supply chain the primary activity of the company is to receive material to

be used for making the product. P&B will take the best quality of the raw material from

the supplier to ensure that the product is of high quality. After receiving the product the

company uses it machines and other resources to make and transform the raw material

into finished goods. After that when finished goods are produced they are taken to the

warehouse, from where they are available for distribution. Everything at the Distributor

point owned and managed by the distributor, even the salespersons are on the Distributors

payroll. Wholesalers get their stock directly from the Company and thus get special rates

and extra discounts from the Company. Retailers are the most important chain in the

distribution channel as they are the only point of contact with the customers. Retailers get

their stock from all the other channel members in the distribution channel. This is how

the supply chain of P&B will function.


BLUE OCEAN STRATEGY

P & B Beverage Company’s Blue Ocean Strategy is that it’s going to operate in

uncontested market place through pink energy drink where market is irrelevant and we

can create and capture a new demand targeting girls/women by introducing a new energy

drink only for girls. We will be able to establish an additional category of untouched

competition. It is Pink Energy Drink, as the pink color represents feminine it is

particularly for girls/women.

Strategy Canvas for Pink Energy Drink:

P&B Beverage Company will be focusing on the following parameters for its new

product Pink Energy Drink, which lies under blue ocean strategy:-

1- Huge expenditures are on promotional activities .This includes the following:

Promoting them Pink in color as the color represents feminine so this product is

mainly targeting women.

Promoting Pink Energy Drink as a strength giving drink for girls and specially for

working women. It is lighter in taste and less caffeine component is added.

2- Investments are moderate because already company is manufacturing Blue energy

drink for men. P&B Beverage Company will only need to invest in material for making

Pink Energy Drink.

3- Pink Energy Drink will be promoted on the basis of its Quality and new target market.

4- There is a strong distribution network because our market is not big we are just

targeting in Rawalpindi/Islamabad markets initially.

5- Can packaging; a very large amount of investment goes in providing delicate and very

stylish kind of can packaging. Because we are focusing on girls/women and girls/women

like very stylish, glittering things. Hence stylish and delicate packaging becomes

inevitable.

So the canvass can be drawn as follows:


Properties Degree of Investment or EmphasisPromotion HighManufacturing ModerateQuality HighDistribution ModeratePackaging High

Strategy Canvas For Existing Industry:

Pink & Blue Beverage Company will be focusing on the following parameters for its

existing industry that is Blue Energy Drink:-

1- Moderate expenditures are on promotional activities.

2- Investments are huge because machinery cost and capital expenditure are high.

3- Blue Energy Drink will be promoted on the basis of Quality.

4- There is a strong distribution network because our market is not big we are just

targeting in Rawalpindi/Islamabad markets initially.

5- Can packaging; a moderate amount of investment or emphasis should be given to

Blue Energy Drink because as far as men are concerned they prefer good quality, they

don’t like flashy things. So in this case the investment will decrease a bit.


So the canvass can be drawn as follows:

Properties Degree of Investment or EmphasisPromotion ModerateManufacturing HighQuality HighDistribution ModeratePackaging Moderate

Combined Strategy Canvas of Pink & Blue Energy Drink:


Four Action Frameworks

Eliminate

Pink Energy Drink has nothing that should be eliminated.

Reduce

Strong taste which we use in Blue Energy Drink. Pink Energy Drink should be

light because our target customers are women.

Caffeine quantity will be reduced.

Raise

Quality of energy drink should be raised because customers whether its men or

women will prefer good quality product.

Design and style should be enhanced.

Create

Brand awareness using female influential celebrities.

Style of the can which symbolizes femininity.

Awareness regarding Energy Drinks.


MARKETING STRATEGIES

Product Opportunity Matrix

Existing ProductsExisting Products New ProductsNew Products

Existing Markets

(Market Penetration)(Market Penetration) (Product(Product Development)Development)

New MarketsNew Markets

(Market Development)(Market Development) (Diversification)(Diversification)

Blue Energy Drink is a product that is not totally new to the market. There already exists

a market for energy drinks. Also, since the energy drinks market is very well defined and

has limited scope in terms of broadening, we are looking at the “Current Market” instead

of a new one. Thus, adopting a Market Penetration Strategy for Blue Energy Drink seems

to be most appropriate, within which, our aim will be to maximize market share. This can

be done by aggressively marketing and advertising the product to make the target

segment aware of the value propositions on offer.

Pink Energy Drink is a new concept in the market targeting a new market segment as

well. So diversification strategy seems appropriate. Our product is targeting specifically

women which is a segment not yet targeted by competitors and there are also

modifications in the product that is according to the taste of women i.e. Caffeine is less

used in the Pink Energy Drink.


Product Life Cycle

IntroductioIntroductio

nn

GrowthGrowth MaturityMaturity DeclineDecline

Out of the four life cycle stages, Energy Drinks are in the growth stage. Since energy

drinks have been around for many years. New products and new emerging brands have

expanded consumer choice in the energy drink market, which has pushed them in the

growth stage. Whereas Pink and Blue Energy Drink is in its Introduction Stage as it is

going to launch in the market.


BCG Matrix

Relative Market ShareRelative Market Share

HIGHHIGH LOWLOW

Market Market

GrowthGrowth

RateRate

HIGH Star Question Mark

LOWLOW Cash CowCash Cow DogDog

The relative position of Pink and Blue Energy Drink in the market dominated by Red

Bull is quite low and the potential for market growth is very high. Thus Pink and Blue

falls in the “question marks” quadrant, where it has high potential to increase market

share and move to the “stars” quadrant, and eventually to “cash cows” where the market

growth will slow down. Also it is to be noted that if Pink and Blue does not succeed in

becoming a market leader, then there is a possibility that after years of cash consumption

it will degenerate into “dogs” when the market growth will decline.


TOWS MATRIX

Strengths Weaknesses

1. Strong Financial Background

1. Price pressure from competitors.

2. Separate Drink for Females

2. Lack of a reputation in comparison to our competitors

3. No visible change in sales even after price increase

3. Large market share of other energy drinks like Red Bull.

4. Knowledge of target

markets.4. Limited market

Opportunities S-O Strategies W-O Strategies1. Expansion in new markets 1. Expand in other

markets to generate higher revenue (s1,o1 &o2)

1. Take advantage of exploring new markets to increase production and reduce price (w1, o1,o2)

2. Energy Drink market can be expanded very well

2.

Target male and females from universities (s2,o4)

3. Extension of product line to increase market share

4. Target Universities directly

Threats S-T Strategies W-T Strategies1. Unstable political situation

of our country1. Bring a new

product that has no caffeine (s1,t2)

1. Conduct an official lab testing of Pink and Blue in order to remove the misconceptions of people. (T2,W2)

2. Misconception about energy drinks

3. Emergence of Substitutes


4. Price War

SALES FORCAST

Month Sales

March 20000

April 20000

May 23000June 25000July 28000

August 22500

September 23100

October 19000

November 18000

December 15000

Pink & Blue Energy Drink

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Transcript of Pink & Blue Energy Drink