Background Information:
Our company and the product:
Our
goal is to bring high-quality food to the people in our community under the
brand name "Sukkur Beverages." We want to give our customers a drink
that doesn't have any preservatives and is made with organic ingredients.
"Pur-Josh" will be the name of the energy drink that we plan to sell
in stores. We will get raw materials from inside the country, which will cut
the cost of making things. A result of this will be that the product's price
will be in line with the company's position. Our product will come in two
sizes: a "355 ml can" and a "500 ml bottle." Those who work
for retailers and wholesalers in certain places should be able to buy it at
different prices. The merchants we work with will be able to get help. There
are 355 ml can-sized and 500 ml bottle-sized SBUs for 70 cents each. If a
wholesaler wants to buy a lot of the same thing, he or she will get a big
discount for big amounts and a small discount for small amounts, like 4% for
250-1000 units, 8% for 1001-8000 units, and 12% for more than 8000.
Purpose of the Report:
If we
want to build brand loyalty and meet our new company's first sales goal of 0.5
million, we need to build a sales area. In addition, we need to figure out how
many salespeople we need to reach our goal. As the last step, we'll make a
monthly route plan for our salesmen so that they can meet with as many
customers as possible in the time they have.
Our target Market and territories:
Our
product is aimed at people who are young and middle-aged, and they fall into
the middle- and high-income groups. As a result, we'll start selling our
product in Rohri and Sukkur and then move on to Khairpur, PanoAkil and Larkana
and Ghotki and Shikarpur. There are a lot of middle-class people who can afford
our product and a small number of rich people who are interested in health
care. Our product will be a big hit with them because it doesn't have any
preservatives and is made entirely of natural ingredients, unlike other energy
drinks like sting and red bull.
Examination of market
potential in each targeted area:
Sukkur and Rohri:
The
population of Sukkur city, as per 2021 data, is 545,349. (World Population
Review, 2021). Most of them are middle-class. Because people in the city are
getting more money, they're becoming more likely to buy things, so we're giving
them a preservative-free energy drink made with natural ingredients. People who
care about health will buy it because our product is unique in the market.
People in Rohri are thought to number 69,920 at this point in time.(city
population, 2021)Having similar trends.
Khairpur
Another
rising market is Khairpur. It has a population of 183,181 people (2017)(city
population, 2021).In terms of demographics, it's more likely to be used by
teenagers and middle-aged adults with a middle- or high-income status. These
things make this market more appealing to businesses that want to meet the
needs of their target customers by providing them with valuable products.
PanoAkil:
This
is another place where our next product will be sold. The market's dynamics are
well-established and can handle the increased demand for the product. The city
has 75,805 people living there.(city population, 2021). Even though there
are a lot of people who make very little money, the number of people who make
middle-class money is growing. On the other hand, the city has a well-developed
infrastructure, which makes it easy for us to get our goods to the people we
want to reach. Our goal is to get our goods to wholesalers and retailers
through a distributor because they make up a big part of the market.
Larkana:
Larkana
is another potentially lucrative market for beverages. The city's official
population is 490,508 residents.( city population, 2021). Because we
want to help the company grow, we want to set up a distribution network so that
we can keep up with the growing demand for products. People in the city can
afford our product, so we want to capitalize on that fact and make money off of
it. In part because of the city's well-developed infrastructure, our products
are easy for us to get to the people we want to serve. Products like these can
be easily found in Banguldero's main bazaar, where there is a lot of space for
them a shopping mall called Bakrani Main Bazaar is another possible location in
the city. Hedarchonkbadah is a small local market.
Ghotki and Shikarpur:
These
two areas are very far away, but they have similar market dynamics. There are
111,321 people living in Ghotki and 195,437 in Shikarpur .(city population,
2021)In these countries, there are more people in the lower middle class than
in the other places where they are being targeted by the government. It will
help us choose only the best bazaar shops and suppliers to sell our goods.
We'll also launch a full marketing campaign to get the most out of our sales.
People
who are health-conscious will be the focus of this product, and we know that any
business has some risks. We're expecting positive results from this product in
a few months because we're focusing on a specific group of people, and we know
that any business has some risk.
Indeed, this is a
caffeinated drink, as we have already talked about caffeinated drinks. This
time, though, it is very different from the other caffeinated drinks because it
is for people who are concerned about their health. Risk is a part of every
job, so we know that this one does as well. Investors always want certain
things from the company. Since we've been working with caffeinated drinks for a
few months, we've thought about how to make this product in that time.
GOAL
Goals are what you want to
achieve in your business. Our goal is to make this drink the most popular in
the class of caffeinated drinks, especially for people who are very clean. This
is a very important goal because it will determine your future. That's because
we're only looking at one part and this makes our goal more logical, so this is
what we're calling our goals here. The goal is to satisfy the desire of people
who want to be clean.
4p’s
We start with the new
item's 4Ps.
Product: We have a
caffeinated drink in two sizes 335ml and 500ml. Taurine Glucuronolactone B-vitamin are the ingredients
which are used in adequate quantity which enables our product to be in natural
form we have a lot of different ways to use our item. However, we use a
low-cost method because we use natural resources, which make our item cheap.
People in the middle and upper middle classes make up about 80% of people. We
have focused on market potential and things that show the financial state of
the market as our main place. So, we go with the least expensive method.
Price: We
pick a price penetration strategy because we want to reach the lower middle and
upper middle class and that’s why we have two SKUs including 335ml for Rs.80
and 500ml for Rs.150. Another reason our price is lower: We made our item with
natural ingredients that provides good quality. This goal helps hygienic people
to buy our product we already know how much brain research for hygienic people
costs and how beneficial it is.
Promotion: Today,
businesses can use computerized media to reach a large number of
people. This is why our main focus is on awareness because we need
to make our product known to our customers in the first month Moreover we have
sponsorships and events which are a souarces of entertainment and gives
familiarity to our customers. After that, we know that an ad is the best way to
reach more people so these are the strategies we use for promotion of our
product
Place: For this,
we need to pick a delivery channel. Here, we use intensive distribution because
we want to make our item available at as many places as possible and we use
distribution and retailers as our channel. We have areas like Sukkur, Rohri,
Khairpur, Pirgoth, PanoAkil, Larkana, and Ghotki.
Competitive analysis
(4ps)
Market
research is also a big factor in launching a new product because it gives you
information about your competitors and how big the market is. Here, we've
focused on competitors of our line, like Hansen Natural, Red Bull, the
Coca-Cola Company, and Living Essential (5 Hour Energy). We'll talk about each
of them now.
· The price
of a 235ml of Milo drink of Nestle is Rs.115, and it comes from the United
States. They use canning and bottling, distributors, retailers, and wholesales
to sell their drinks.
· The price
of a 250ml of the red bull drink of RAUCH is Rs.300 energy, which comes from
the US. The canning and bottling, distributors, retailers and whole sales of
coca cola come from there, too.
· The price
of a epic energy drink of Grenade ltd is Rs.170, and the company that makes it
is from the United States. Distributors and retailers sell it.
· The price
of a sting energy drink of PepsiCo is Rs40 and the company operates in
Pakistan. They sell in convenience stores, hypermarkets, and online.
· The price
of a monster drink of Hansen company ltd is Rs160 and the company operates in
US. They sell in convenience stores, hypermarkets, and online.
Demand: this is the
demand for our drinks in the said territories
Total sales in the whole
target market are 77000 units/drinks of beverages. Of this the majority is in
big city Sukkur+ Rohri= 19000 units/drinks and Larkana's sales are =18,500 and
for Khair Purr it is 14000 and for Shikarpur is 10000, Ghotki 9000 and last is
PanoAkil which has sales potential of 6500.
Sales Force Deployment Strategy:
To find the total
sales deployed we are using single factor model.
Allocation of Selling Effort
|
Customer Classification |
Apx No: of customers |
Sales Potential 1 cartoon= drinks number number |
Number of Visits |
|
Total no. of visits |
|
Platinum
(Marts, Superstores, and big stores) |
60-70
= 65 |
1200
cartons/ month |
10visits/month |
|
650 |
|
Diamond
(Major wholesalers |
150-160=155 |
1000Cartons/month |
7
visits/month |
|
1085 |
|
Gold
(retailers) |
170-180=175 |
800
Cartons/month |
6
visits/month |
|
1050 |
|
Silver
(cabins) |
<230 |
>600
cartons/month |
5
visits/month |
|
1150 |
3935
Selling effort
required.
· Every
person is required to visit 28 customers a day in 24 working days of a month
which makes selling effort by salesforce equals
to 28*24=672
· Using the
workload approach we find sales force required
· Workload
approach = total selling effort required/selling effort by each sales force.
=
3935/672
the salesperson is required.
Territories Along with
the monthly route plan daily plan
As the company has designed
the territories Sukkur, Rohri, Khairpur, PanoAkil, Larkana, Ghotki, and
Shikapur salespeople. Now, we will a set target and monthly route plan as it
can be achieved with high efficiency. As Sukkur is a division of Sindh and it is
a big territory with a market share of 37d it will be divided into trading
areas like TA1, TA2, etc. As well other territories we have designed will be
covered, salesperson
|
Sukkur Territory |
|
|
TA1 |
|
|
TA2 |
|
ü Sukkur Rohri
ü Khairpur
ü PanoAkil
ü Larkana
ü Ghotki
ü Shikarpur
Territories division
among territories
Sukkur beverages market share
From above data, we
can analyze that our main competitors are sting and red bull. It a
shocking that, red bull has a 95% share overall in the category of energy
drinks. And the rest is all.
Individually distributed market
potential/targets/demand
|
Territories |
Overall market
potential |
Targets |
Demand |
|
Sukkur Rohri |
22800units/drinks |
17000 |
16000 |
|
Khairpur |
15000 |
11000 |
10000 |
|
PanoAkil |
7600 |
5000 |
4500 |
|
Larkana |
20000 |
15000 |
14000 |
|
Ghotki |
10000 |
7000 |
6000 |
|
Shikarpur |
11000 |
7000 |
7500 |
|
Total |
86400 |
62000 |
58000 |
Customer data according to the territory
|
Territories |
Platinum |
Diamond |
Gold |
Silver |
|
Sukkur Rohri |
20 |
23 |
25 |
30 |
|
Khairpur |
10 |
14 |
17 |
20 |
|
PanoAkil |
5 |
8 |
10 |
13 |
|
Larkana |
15 |
19 |
20 |
22 |
|
Ghotki |
7 |
9 |
10 |
12 |
|
Shikarpur |
7 |
9 |
10 |
12 |
Planning sheet for the month
|
Date |
Day(Sunday is
holiday) |
Morning shift (9
am) |
Evening shift (5
pm) |
|
1 |
Monday |
TA1 |
TA2 |
|
2 |
Tuesday |
KHAIRPUR |
ROHRI |
|
3 |
Wednesday |
SHIKARPUR |
TA1 |
|
4 |
Thursday |
GHOTKI |
TA2 |
|
5 |
Friday |
PANO AQIL |
ROHRI |
|
6 |
Saturday |
LARKANA |
OFF |
|
7 |
Sunday |
|
|
|
8 |
Monday |
TA1 |
KHAIRUR |
|
9 |
Tuesday |
SHIKARPUR |
TA2 |
|
10 |
Wednesday |
GHOTKI |
PANO AQIL |
|
11 |
Thursday |
TA1 |
ROHRI |
|
12 |
Friday |
TA2 |
KHAIRPUR |
|
13 |
Saturday |
LARKANA |
OFF |
|
14 |
Sunday |
|
|
|
15 |
Monday |
TA1 |
KHAIRUR |
|
16 |
Tuesday |
SHIKARPUR |
TA2 |
|
17 |
Wednesday |
GHOTKI |
PANO AQIL |
|
18 |
Thursday |
TA1 |
ROHRI |
|
19 |
Friday |
GHOTKI |
ROHRI |
|
20 |
Saturday |
LARKANA |
OFF |
|
21 |
Sunday |
|
|
|
22 |
Monday |
SHIKARPUR |
TA1 |
|
23 |
Tuesday |
GHOTKI |
TA2 |
|
24 |
Wednesday |
PANO AQIL |
ROHRI |
|
25 |
Thursday |
SHIKARPUR |
TA1 |
|
26 |
Friday |
GHOTKI |
PANO AQIL |
|
27 |
Saturday |
LARKNA |
OFF |
|
28 |
Sunday |
|
|
|
29 |
Monday |
TA1 |
TA2 |
Note: Our
Company has 6saless persons and the planning sheet above discussed is for all
six. But territories division is defined below.
S1: As Sukkr is a big
territory. He will cover the territory of Sukkur + Rohri plus platinum and gold
customers’ because he is our experienced sells person.
S2: He is the
salesperson of Sukkur+ territory. He will cover diamond and silver
customers.
S3: He will cover khairpur
+ PanoAkil + Ghotki territory but platinum and gold customers of the sales
S4: This sells person will
cover hair Purr + PanoAkil + Ghotki but diamond and silver customers.
S5: He is living in
Larkana. So he will cover Larkana and Shikarpur territories but Platinum and
gold customers.
S6: He is from the
Shikarpur district. So he will cover Larkana and Shikarpur territories but
diamond and silver customers.
Compensation plan for the employees
|
Basic
Salary |
Market
Competitive (Rs. 25,000—30,000) |
|
Commission |
5%
commission will be given on selling beyond the sales target |
|
Annual
Bonus |
Equal
to 1.5 month’s basic salary at the end of the fiscal year |