UHU Butter stick

Stick

NURP UR STICK O’BUT TER TERM PROJECT

“You don’t need time anymore”

Asadullah Zubair 1511291 Sara Amin 1511200 Ishraq Ahmed 1511293 Usman Waseem 1418244

NURPUR STICK O’BUTTER

TABLE OF CONTENT ACKNOWLEDGMENT................................................................................................... 4 EXECUTIVE SUMMARY................................................................................................. 5 INTRODUCTION........................................................................................................... 6 BUSINESS SCOPE........................................................................................................ 7 CURRENT MARKET SITUATION.................................................................................... 7 MARKETING PLAN....................................................................................................... 8 Market Description.................................................................................................. 8 Benefits & Product Feature...................................................................................... 8 Product Review........................................................................................................ 9 Competitive Review................................................................................................. 9 Distribution Review............................................................................................... 10 SWOT ANALYSIS........................................................................................................ 11 Strengths............................................................................................................... 11 Weakness.............................................................................................................. 12 Opportunity........................................................................................................... 12 Threats.................................................................................................................. 12 OBJECTIVES & ISSUES OF......................................................................................... 13 STICK O’ BUTTER...................................................................................................... 13 OBJECTIVES........................................................................................................... 13 ISSUES................................................................................................................... 14 MARKETING STRATEGY............................................................................................. 15 SEGMENTATION..................................................................................................... 15 Geographic Segmentation.................................................................................. 15 Demographic Segmentation...............................................................................16 Psychographic Segmentation............................................................................. 16 Behavior Segmentation...................................................................................... 16 TARGET MARKET.................................................................................................... 16 POSITIONING......................................................................................................... 17 MARKETING MIX ELEMENTS................................................................................... 19 Product............................................................................................................... 19 2

NURPUR STICK O’BUTTER Price................................................................................................................... 21 Promotion........................................................................................................... 21 Place.................................................................................................................. 22 MARKETING COMMUNICATION...............................................................................23 MARKET RESEARCH............................................................................................... 23 MARKETING ORGANIZATION.................................................................................. 25 BUDGET................................................................................................................. 27 Budgets are divided into different categories are as follows:...................................................27 CONTROLS............................................................................................................. 29 CONCLUSION............................................................................................................ 30 BIBLIOGRAPHY.......................................................................................................... 31 APPENDICES............................................................................................................. 32 Appendix 01.......................................................................................................... 32

3

NURPUR STICK O’BUTTER

ACKNOWLEDGMENT We are pleased to submit this report regarding the launch of our new product that is the “STICK O’ BUTTER”. This report is the combined effort of our group members who took keen interest in this task of making the report a success. We are really grateful to our faculty Sir Mazhar Ali who helped us in building our marketing concepts with great effort without which we would not be able to accomplish this task.

4

NURPUR STICK O’BUTTER

EXECUTIVE SUMMARY Fauji Group Foods is among the major and fastest growing conglomerates in Pakistan that caters to local needs with products in compliance to global standards. Many of its products include Nurpur, Nurpur Lite, Nurpur cream, Nurpur Flavored Milk etc. To this portfolio, we are now introducing a butter called “Stick o’ Butter” which will be an all purpose butter used mainly by the housewives for cooking and greasing purposes and for working men and women who are in a hurry and need a Stick breakfast. The product will be launched in all the major cities of Pakistan. Stick o’ Butter will be of a small size with a stylish design and an effective roller which will be easy to use. . The product is portable and can be used anywhere easily. Not only this it is safe to use for children and the use of knife can be harmful for them. Also it will be cheaper in price so it can be afforded by all. And also, housewives can easily use this roller for greasing purposes such as for baking, making sauces etc without any difficulty of scoping out the butter then melting it. Its major competitors will include Blue band, Olpers, Meadowlea and Mumtaz. Taking all the opportunities into consideration we can diversify into new markets, as we can launch cheese and jam tubes as new product which will ensure more benefits and more choice to customers to choose from and allow us to maintain user loyalty as well. As our main weakness is the early expiry date we can diversify our product category to jam and cheese which can be kept for a longer period of time also this opportunity will provide something new to our consumers. Our target market consists of those consumers who want to achieve success in their lives and do not have time to do healthy breakfast. Other than the working men and women, we will even target students of schools and universities as they leave in a hurry without doing their breakfast. Housewives will also be targeted as butter is consumed on a daily basis and with Stick o’ Butter they can cook easily without wasting time looking for a butter knife. Stick o’ Butter will follow the cost plus pricing strategy. Due to the introductory period in the Stick o’ Butter’s life cycle, it made a loss in the first year of operation due to higher cost of production and advertising and promotion costs. Excessive advertising and promotion was needed for the butter to become known among the customers. Later, in the second and the third year as the consumers are aware of the product, Stick o’ Butter now starts to make profit due to increased sales revenue. The idea of launching Stick o’ Butter will be a success as it is quite different from its competitors. When a new product is launched with a lot of promotions, people are curious to try the product. We have tried our best to keep the consumer preferences in mind and the type of quality and taste they are wanting. Hence, if they find good natural taste in a small stick which is affordable and easy to use then they would definitely buy the product. Therefore, Stick o’ Butter is the best choice

5

NURPUR STICK O’BUTTER

INTRODUCTION Fauji Group Foods is among the major and fastest growing conglomerates in Pakistan that caters to local needs with products in compliance to global standards. Whether it is their thick, creamy all-purpose milk, scrumptious ice-cream high on nutrition content or refreshing range of fruity beverages, the approach remains largely the same as to strive to keep product innovation at the forefront of guiding philosophy and consumer satisfaction at the heart of the operational strategy. The product portfolio of Fauji Group is as follows:     

Nurpur Butter Nurpur Lite Nurpur Flavored Milk Whole Pasteurized Milk UHT Milk

To this portfolio, we are now introducing a butter called “Stick o’ Butter” which will be an allpurpose butter used mainly by the housewives for cooking and greasing purposes and for working men and women who are in a hurry and need a Stick breakfast( to butter bread) Why? Container butter needs to be softened first in order to spread it on bread. But for the kids who do 6

NURPUR STICK O’BUTTER not like the natural sour/salty flavor of “Stick o’ Butter”, we have also come up with different variants for the children by putting a touch of essence of the flavors like strawberry, vanilla and mango so that kids enjoy a healthy breakfast.

BUSINESS SCOPE The product was launched in all major cities of Pakistan in its initial launch and later it is launched at National level. A product which is easy to use with a new design and shape is always welcomed by the targeted customers. The targeted class of “Stick o’ Butter” is middle class to upper class. Working men and women and kids are the main target market of this product. These targeted customers will be the regular users of this product which will maintain a good loyalty level.

CURRENT MARKET SITUATION Stick o’ Butter will face fierce competition by both direct and formed competition. Direct competitors are Olpers, Mumtaz and Meadowlea. The major indirect competition is given by Blue band.

7

NURPUR STICK O’BUTTER

MARKETING PLAN Market Description Pakistani market consists of customers who are very choosy on having breakfast due to urgency as for children who wake up late and business class who are indulged in work having no time for breakfast. For them this Stick o’ Butter plays a vital role as it provides with an easy to use roller which not only saves time but is portable so that these customers can not miss out on the healthiest time of the meal. As for the children different variants have been introduced in flavors like strawberry, vanilla and mango.

Benefits & Product Feature Breakfast is that time of the meal that provides people with an instant boost as it is not only healthy but also sharpness the mind to work productively and effectively. For this purpose our product entails various features and benefit which will allow the users to never miss out on the most important meal which can result in a perfect day Product features include: 1. Stylish design 2. Small size 3. An effective roller for easy use Considering these features of the product entails plenty of benefits, like it saves time for students or business people who are busy with their schedule. The product is portable and can be used anywhere easily. Not only this it is safe to use for children and the use of knife can be harmful for them. Also it will be cheaper in price so it can be afforded by all. And also, housewives can easily use this roller for greasing purposes such as for baking, making sauces etc without any difficulty of scoping out the butter then melting it.

8

NURPUR STICK O’BUTTER

Product Review Our product will have following features: 1. It will have a light body. 2. As our target market is common people going to offices, schools or universities, our product will be affordable and easily available. 3. Portable; can be taken anywhere for example if a person is going to his/her office and is in a hurry, he/she can carry the roller butter along with the bread. 4. Perfect for lathering up a piece of bread or toast without dirtying a knife. 5. Easy to dispose. Usually people have this misconception that if butter and margarine are kept at normal room temperature for a little while that is for at least half an hour, it loses its quality that is they think butter or margarine is not worth using. Stick o’ Butter can survive at room temperature for at least four to five hours, although it will soften but it will not deteriorate.

9

NURPUR STICK O’BUTTER

Competitive Review Market Share

Blue Band Entire Butter Market

 Blue band: Blue band has been launched under Unilever in Pakistan more than 20 years ago. It has given tough competition to various butter/margarine brands and is popular among many families.

 Olpers: Olpers is a local brand which gives a tough competition. There promotion strategies are mostly concentrated on through grand advertisements for all their products and uses heavy promotional marketing.

Mumtaz: It’s an international brand originated from Arabia. It does not promote its products in Pakistan.

 Adam’s: Meadowlea targets the upper class with high prices. It is positioned as a family brand. However, this product is not promoted in Pakistan, only BTL activities are done. 1 0

NURPUR STICK O’BUTTER

Distribution Review The distribution for Stick o’ Butter will be done by the same company as Nurpur, which is owned by Fauji Group itself. The distribution is divided in 2 phases which will benefit and go along with our promotions, advertisements and increasing awareness as well. Distribution will start off from the major cities of Karachi and Lahore and then penetrate into the whole country within the same month

SWOT ANALYSIS

Strengths  

Saves time Safe and easy to use for children 1 1

NURPUR STICK O’BUTTER       

Portable Value for money Affordable Easily available Competitive advantage Stylish Can be used in snack breaks

Weakness    

High cost of promotion and advertisement New, product risk involve On a normal room temperature, Stick o’ Butter can survive for four to five hours. Early expiry

Opportunity   

Diversification in new market Launch of new categories Expansion, giving rise to export

Threats   

Poor condition factors Easily copied Competitors (Olpers, Meadowlea, Mumtazetc)

SO (Strength and Opportunities) Taking all the opportunities into consideration we can diversify into new markets, as we can launch cheese and jam tubes as new product which will ensure more benefits and more choice to customers to choose from and allow us to maintain user loyalty as well.

ST (strength and threat) As it can be easily copied by other competitors so we can include other features such as change of packaging, design and also our price will be lower to ensure higher market share. Another

1 2

NURPUR STICK O’BUTTER threat can be the poor conditions i.e. if the product does not gain awareness, for that careful analysis will be done and feedback will be taken.

WO (weakness opportunities) As our main weakness is the early expiry date we can diversify our product category to jam and cheese which can be kept for a longer period of time also this opportunity will provide something new to our consumers.

OBJECTIVES & ISSUES OF STICK O’ BUTTER OBJECTIVES FIRST YEAR 

Our main objective is to provide our customers with a portable roller which allows them to have breakfast even in the busiest schedule of their lives.



As the product will be new, our objective would be to use advertisement and promotion strategies to ensure that everyone is aware of what the product is and what it entails.



Many other promotional activities will be conducted that will result in higher sales. Also, it will help us in covering our costs.



Our objectives after the launch include attracting customers, changing consumers’ perception and making this product a brand.

SECOND YEAR 1 3

NURPUR STICK O’BUTTER 

During the 2nd year as the product might gain popularity and awareness, we will try to maintain the cost of advertisement and promote and induce better changes in the product by changing its design.



To maintain the consistency of the sales we will focus on attracting other users who are currently unaware of Stick o’ Butter.

THIRD YEAR 

As our product gains popularity, we will come up with more and new useful products for our customers.



Our objective in this year is to achieve a higher level of sales which would not only cover our cost but also result in more profits.

ISSUES 

These objectives will be a lot difficult to achieve if the marketing department fails to promote and advertise the product to the optimum level. If the first year objectives are not met than it will be approximately impossible to get through with the second year objectives.



Another issue is that it might create a hindrance in achieving our objectives due to the threat of new entrants in the market. As there is no rocket science involved in the production of Stick o’ Butter, this idea can be easily copied by other firms in the market which will create competition in the market.

1 4

NURPUR STICK O’BUTTER

MARKETING STRATEGY SEGMENTATION Segmentation Variables

Data

Geographic World region Country Cities Density

Asia Pakistan All major cities of Pakistan Urban

Demographics Age Gender Family size Family Life Cycle Income Education

7 and above Male, Female 1-2, 3-4,5+ Married, Unmarried Rs 15000 above Schools, colleges, universities

Psychographic Social Class Life style

Middle class, upper class Achievers, survivors, strivers

Behavioural Benefits Occasion

Easy to use , user friendly , saves time , good quality Regular occasion 1 5

NURPUR STICK O’BUTTER

Geographic Segmentation On the basis of geographic segmentation, our product will be segmented all over Pakistan which mainly in the urban areas of many cities such as Karachi, Lahore, Islamabad etc

Demographic Segmentation On the basis of demographic, Stick o’ Butter will be segmented according to: 1. 2. 3. 4.

Age (7 and above) Gender (male and female) Income (15000+) Education (school ,college and university)

Psychographic Segmentation On the basis of psychographic segmentation Stick o’ Butter will segmented mainly in the middle class and upper class. And not only that, it will target those students and achievers (working class) who are very busy in their lives and work hard to maintain consistency in their performance and increase the social status.

Behavior Segmentation Benefit sought: The following are the benefits of our product “Stick O Butter “ 1. 2. 3. 4. 5.

Easy to use Time saving that ensures good health Safe to use for children Good quality Portable

1 6

NURPUR STICK O’BUTTER

TARGET MARKET Our target market consists of those consumers who want to achieve success in their lives and do not have time to do healthy breakfast. They are so busy with their routine that they do not get time to sit and eat their breakfast. With Stick o’ butter they do not have to miss out such an important meal. Other than the working men and women, we will even target students of schools and universities as they leave in a hurry without doing their breakfast. Housewives will also be targeted as butter is consumed on a daily basis and with Stick o’ Butter they can cook easily without wasting time looking for a butter knife.

POSITIONING Positioning is done on three main bases: 1) 2) 3) 4)

Features Benefits Point of difference with competitor Emotional

Features Our feature of using a butter stick is the new one and we get an upper hand on our competitors over this, although it will be tough to break their market. Our feature is basically providing them time saving and that will help people as everyone has busy schedules nowadays. People who tend to travel cannot carry crockery or a box of butter with them, and then comes our product to help. Our feature becomes our benefit, Stick o’ Butter provides the rich taste, health and above all, time saving. Via our campaigns and promotions, we create awareness and the idea is to stay in the minds of our potential users now

Benefits to the Target consumers Primarily our target consumers would be working men and women and school /college going students. The product is positioned as delivering the benefit of healthy breakfast which will keep everybody healthy and energetic. 1 7

NURPUR STICK O’BUTTER

Point of Difference with the Competitors The USP of Stick o’ Butter is that it has been designed in such a way that the butter is available in a stick form and the consumers do not have to waste time looking for knives. Instead they can directly spread the butter from the stick on the bread and enjoy.

Emotional The USP of Nurpur is “Nurpur se Zindagi Bharpur”. The tag line has a very positive impact on the Nurpur’s Image because of the emotions involved in it. Emotional aspect comes as our product is for achievers. Achievers seem to have less time for everything and negligence comes over with moving pace and short time so we provide the nutrition, a product to help their meal and overcoming negligence. By this and of course our strong campaigns that Fauji Group is well known for, we will be able to position ourselves in the minds of our potential consumers.

1 8

NURPUR STICK O’BUTTER

MARKETING MIX ELEMENTS

Product Nurpur is launching this product in order to get a competitive advantage. The product life cycle of Stick o’ Butter is below:

1 9

NURPUR STICK O’BUTTER

:

INTRODUCTION STAGE: Introduction stage is the stage where the product is launched in the market .At this stage our costs will be high as for Nurpur it is a completely new product. The Pricing strategy that will be used is cost plus pricing. Promotions will be done in order to create awareness among the consumers. It will be done through advertisements on television in between cooking shows, Morning shows etc and in cooking magazines. It will be advertised through billboards as well

GROWTH STAGE: Growth stage is the stage where the sales are increasing because of an increase in demand. In the growth stage our sales will increase due to an increase in the demand for Stick O’Butter. Pricing Strategy would remain the same. Promotions will be done in order to keep the consumers aware. Informative Advertisements would be used so that the consumers know what product they are buying and how hygienic it is. Persuasive advertisements would be used too in order to persuade the consumers to buy the product.

2 0

NURPUR STICK O’BUTTER

MATURITY STAGE: At the maturity stage we will come to our peak and our product will become cash cow from star. We will try to provide more features in our product like giving 25% extra, Buy 1 get 1 free, Complimentary gifts on higher purchase. We will also introduce different sizes of Stick o’ Butter. In order to maximize our market share we will do reminder advertisements which can be once in a month or two months

Decline Stage: In the Decline stage the product loses its credibility and importance due to various reasons like: 1. Not concentrating on modification 2. Too much competition 3. No extension strategies 4. Losses in between the maturity and the decline stage In order to stay in the market Nurpur will make innovations like new flavors, different packaging etc.

Price Fauji Group uses Premium pricing strategy, reason being they produce premium quality product and premium positioning of the product. The price also differentiates Fauji Group from its competitors. They provide a level, premium products in a price lower than international ones and slightly higher than local ones. They also require constant monitoring as the competitor may change their price to get an edge. Fauji Group uses 2 types of strategies; Cost plus pricing and Value based pricing. For Stick o’ Butter, cost plus pricing is used, where the market markup is calculated with the demand and if costs return with revenue, production is done at larger scale, this is to avoid major losses or any loss at all. For 50g stick: PKR 65/For 100g stick: PKR 110/2 1

NURPUR STICK O’BUTTER

Promotion 

At the launch of our product ,heavy promotions will be done through Print media which includes Newspaper and magazines , Electronic media which includes radio and television , Digital media which includes internet , social networking and social media sites and lastly Outdoor media which includes banner ads , OOH (out of home) .



BTL activities will be done in retail stores where heavy sales are expected. Our trained sales personnel deployed at retail stores will create awareness among people about the strengths of our product. Display units and shop front activities will be carried out in major parts of the city.



A unique promotional campaign will be launched in Ramadan. Through advertisements we will convey the message of saving time in Ramadan especially during Iftaar and Sehri timings. Time management in Ramadan is a problematic issue. Stick o’ butter will be a perfect fit in these situations.



During the initial six months of our product launch, we will give our customers a 10% discount coupons on their next purchase. At the same time, several extra coupons will be given to them to give to friends and families as people enjoy discounts.



We will promote our product through cross promotion. As Nurpur milk is already doing well in the market, we will cross promote it with Stick o’ butter. Initially, a free sample of Stick o’ butter will be given to the customer on the purchase of each Nurpur milk. After six months a discount of 20% will be given to the customer on buying Stick o’ butter if the customer also purchases Nurpur milk.



Through sponsoring in the cooking shows we will promote our product.



When selling our product our sales persons will be instructed to offer customers some extra flyers and brochures of Stick o’ butter to give to their friends and families so that our product can also be promoted through word of mouth.



During our promotional activities we will set up an awareness campaign regarding the dangerous effects of using margarine.(Pharmaceutical, 2011)

2 2

NURPUR STICK O’BUTTER

Place The distribution for Stick o’ Butter will be done by the same company as Nurpur, which is Fauji Group itself. The distribution is divided in 2 phases which will benefit and go along with our promotions, advertisements and increasing awareness as well. Distribution will start off from the major cities of Karachi and Lahore and then penetrate into the whole country within the same month. Phase 1: The product will be distributed in the segment market. In this phase, the sales person will keep the product on shelf, if not possible, give the credit for 3 days. For major stores and centers, we provide them a claimable discount. Phase 2: We start off with promotions and according to the responses of our target market we will enhance by providing the product to niches and small stores too and increase or maintain our credibility in the market.

MARKETING COMMUNICATION Our communication strategy focuses on the goal “providing healthy breakfast efficiently”. For this we will promote our campaigns in different areas and in morning shows so that people can witness how effective Stick o’ butter is. We will provide heavy promotion and ad campaign to make sure that people indulge in our product and never forget to have breakfast and also in their casual or snack times. We will use direct as well as indirect communication strategy, Direct by making sales at the moment and getting feedback. Indirect in a way through advertisement campaign and billboards using emotional appeals showing health issues due to skipping breakfast. Advertising will be basically done on different channels such as Geo, Hum TV, and Nickelodeon as nick targets young children mostly student age 9-13 and Geo and Hum TV will be used to target the working class and student’s age 15-25 who watch dramas and cooking shows.

2 3

NURPUR STICK O’BUTTER

MARKET RESEARCH Marketing research is a very important aspect when launching a new product. There are various risks associated when a company decides to diversify into a new market which it was not catering before. Each step must be calculated and thought, thus the role of research and development is necessary. The research kicked off secondary data that was available as Fauji Group has had research done for previous products; they had the knowhow, but needed a step above for Stick o’ Butter. They tried to uncover the level of complexity in such a decision and the level of success. But that being not enough needed primary data collection. First of all started off with the preference of the consumers, if they wanted butter or margarine. For now, they market they cater to is more aware of the difference between the two, they didn’t need to highlight it but simply ask them. This was done via research teams who created surveys nation-wide and decision was taken on the level of majority that people went with butter as they think of it as more healthy and pure than processing of margarines. As the heads of Fauji Group Foods thought of bringing innovation to their products or the new product they were launching, research was to be conducted as well on that part. The core research for this started off with observations. We started with the working class as we cater to the upper class and with a survey conducted as well, most of the answers came in on how the skipped breakfast in the morning due to lack of time as they are in a hurry. With the working class, we conducted a research for students as well, ranging from age 10 and above that they skipped breakfast as well due to lack of time and an interesting result came forward that mothers often don’t allow their children to use knives in any way. We picked up this point immediately and conducted further research as well. Our research also went on about the health concerns as people have a healthier approach to life now, especially the market we are catering to so keeping the product healthy and making them aware is also a task ahead for the production and campaign. The basic findings coming from our research was that people look for a healthy start to a day in less time as for because of their busy lives and daily schedules. Since breakfast is a need and they need something to help them out, we now have to work towards to meet the need and serve them as well as capture the market and excel further as a part of Fauji Group Foods. The basic tools used were surveys and online communication, observation. The information collected was passed on as for a response for Fauji Group to start making butter, but the information collected for innovation and in general for negligence of breakfast over time leads to creation of butter on stick, a rolling device that helps and works as a spread and is very easy to use and much faster than to use a butter knife and defrosting the butter, etc. 2 4

NURPUR STICK O’BUTTER As the research processed and Stick o’ Butter came into existence, its sample was to be tested severely over testing groups as feedback matters and amendments could be made before the official launch and campaign designs be made accordingly. Samples were prepared and used on tested groups of audience to get a feedback. We used it on working women, men and students, age bracket from 10 to 15. We did not reveal the firm or entire product, it was just butter on rolling stick and the response was mostly positive as they considered the best factor of time saving, it saves time and gives a rich taste of butter and the packaging is able to store the butter in its form, not melting it, so the product was good to go with a good feedback.

MARKETING ORGANIZATION Marketing organization is a group of marketing persons brought together to make decisions on marketing areas like product, price, place, and promotion. Marketing organization is the foundation of effective sales planning for systematic execution of plans and policies. Marketing organization provides a system of relationships among various marketing functions to be performed by proper coordination among marketing persons. Marketers must have knowledge of what type of marketing organization they have in place; and what type of marketing organization the company actually needs. Following are the types of the marketing organization:    

Functional Type of Marketing Organization Product Oriented Marketing Organization Market/Territory Oriented Marketing Organization Customer Oriented Marketing Organization

Functional type of marketing organization In this the different marketing activities are grouped on the basis of functions to be performed like - product planning, market research, advertising, sales, or promotion. Each main function is further divided to sub-functions to be performed to achieve marketing objectives. Each sub function is managed by separate manager under the control of marketing manager

Product oriented marketing organization 2 5

NURPUR STICK O’BUTTER Common where organization is producing or marketing wide variety of products. For each product or group of products a separate product manager is assigned and made responsible for marketing decisions for that particular product or group of products.

Market oriented marketing organization This type of organization is common in big organizations serving large number of customers spreading over large territories. Depot manager, district manager, area manager, zonal manager, divisional manager, etc., are assigned to manage each territory.

Customer oriented marketing organization It is common in organizations engaged in providing specialized services to different class of customer.

Stick o’ butter will be using Functional type of marketing organization where everybody will be assigned to different duties.

BUDGET Budgets are divided into different categories are as follows:

2 6

NURPUR STICK O’BUTTER Sales Budget: This forecast is for Stick o’ Butter of 50 gm and the price is Rs. 55.

Cartons (50 units) 100,000 150,000 200,000

Year 1 Year 2 Year 3

Amount (Rs000.) 275,000 412,500 550,000

This forecast is for Stick o’ Butter of 100 gm and the price is Rs. 100.

Cartons ( 20 units) 70,000 100,000 220,000

Year 1 Year 2 Year 3

Amount (Rs000.) 700,000 1,000,000 2,200,000

Advertising and Promotion Budget:

Year 1 Year 2 Year 3

Above the line TV Print Radio Rs. 35M Rs. 25M Rs. 8M Rs. 34M Rs. 20M Rs.7M Rs. 30M Rs. 20M Rs. 7M

Below the line Rs. 35M Rs. 32M Rs. 30M

STATEMENT OF COMPREHENSIVE INCOME For The Three Years: 2 7

NURPUR STICK O’BUTTER

STICK O’ BUTTER Projected Income Statement For the three year Year 1 Rs(000) Sales

Rs(000)

Year 2 Rs(000)

Rs(000)

Year 3 Rs(000)

975,000

Less: Cost Gross Profit Less: Operating expenses Advertising and Promotion

Rs(000) 2,750,000

1,412,500 (900,000) 512,500

(1,000,000) (25,000)

(1,200,000) 1,550,000

75,000

95,000

90,000

105,000

93,000

87,000

Total Expenses

(180,000)

(188,000)

(177,000)

Net Profit/(Loss)

(205,000)

324,500

1,373,000

CONTROLS To maximize the return on Stick o’ Butter there are certain controls that we are planning to implement for monitoring the progress of the butter. As a marketing plan moves along, the 2 8

NURPUR STICK O’BUTTER controls will be constantly analyzed to determine how the plan's actual performance compares to the projections. Due to the introductory period in the Stick o’ Butter’s life cycle, it made a loss in the first year of operation due to higher cost of production and advertising and promotion costs. Excessive advertising and promotion was needed for the butter to become known among the customers. Later, in the second and the third year as the consumers are aware of the product, Stick o’ Butter now starts to make profit due to increased sales revenue. In three years time, we will be monitoring the customer feedback through polls and surveys. We can reach our customers indirectly by hosting online polls on the internet to ask specific questions related to Stick o’ Butter to see whether the customers are satisfied with the product or not. Conversely, surveys can be done via individual interviews by phone or in person. The feedback will then be examined to check if they are matching with the standards set, if not then appropriate actions will be taken to correct the problems.

2 9

NURPUR STICK O’BUTTER

CONCLUSION The idea of launching Stick o’ Butter will be a success as it is quite different from its competitors. When a new product is launched with a lot of promotions, people are curious to try the product. We have tried our best to keep the consumer preferences in mind and the type of quality and taste they are wanting. Hence, if they find good natural taste in a small stick which is affordable and easy to use then they would definitely buy the product. Through our research conducted, the results even proved that Stick o’ Butter will be a success as it was liked by majority. One major Question which was raised was that: WHY WOULD ANYBODY BUY YOUR STICK O’ BUTTER WHEN THEY ARE ALREADY LOYAL TO OTHER BRANDS? For example if someone is using Blue band since 10 years then why would they go for a newly launched butter? The Answer to this question is that Brand Switching takes place in situations where the other companies product is beneficial than the product you are currently consuming. And Stick o’ Butter is providing everything one can think of in just a stick. And we have different flavors available too which will interest our consumers. Therefore, Stick O Butter is the best choice.

3 0

NURPUR STICK O’BUTTER

BIBLIOGRAPHY Pharmaceutical, S. (2010). Pass the Butter Please. http://www.nurpurfoods.com/dairy-products/

3 1