Final Marketing Report- Edited[1]

anTABLE OF CONTENTSanTABLE OF CONTENTS

S.No Topics Pages

1 CURRENT MARKETING SITUATION

Market Description

Product Review

strengths and weaknesses

Review of competition

Review of distribution

2 THREATS AND OPPORTUNITIES

3 OBJECTIVES AND ISSUES

4 MARKETING STRATEGY & ACTION

PROGRAMS

Introduction

The Brand

Product Launch

Promotion

5 BUDGETS

6 CONTROLS

7 APPENDIX

Product Launch – RotiWala

RotiWala introduces flavored bread/stuffed bread for the first time in

Pakistan. Bread is a major item on a typical Pakistani breakfast menu. However, the

concept of flavored/stuffed bread for breakfast is yet to be introduced. Through

interviews before the research, we sensed a substantial hesitance in trying the new

product however we feel the product has the potential to be well received being a

completely new idea. This hesitation would be a serious consideration in the promotional

campaign. To further understand breakfast behavior and gain insights on bread

consumption, we conducted a survey.

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The Research

Our research was designed to aid us decide product specifications, decide which market

we want to enter, get insights into consumer buying and consumption habits of bread, to

decide the brand positioning and to choose the direction for our promotional campaign.

However, we believe that more insights would be found once the product undergoes test

marketing and even a better understanding would be gained after the product is launched.

Mode of Research Potential customers: We conducted a survey and interviews to attain insights from

potential customers.

Competitor & Retail: We made visits to superstores, milk shops and bakeries to

understand the purchasing cycle for bread and find out the market share for

various bread brands and also to forecast sales and decide our distribution and

merchandizing strategy.

Research Objectives

To find out the percentage of people of the target market who consume bread and

at what instances.

To find out insights into breakfast and bread consumption behavior.

To find out the frequency at which consumers buy bread and from where.

To decide RotiWala’s competitive space.

To estimate the acceptability level of the idea of flavored bread in the breakfast

market.

To get suggestions from the potential customers about flavored/stuffed bread.

Estimating the needed investment for developing consumer awareness and trial.

Sample size

A total of 109 people were surveyed based on random sampling. A Google form survey

was designed that we embedded on relevant face book fan pages such as Olpers’ fan

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page, Tapal green tea’s fan page and more. Also, we surveyed our friends using face

book as our major tool amongst other social media.

Research Findings

Demographics:

62% of people surveyed were males and 38% were females

Participants

Sixty-two (57%) people surveyed were in between 20-28 years.

Twenty five (23%) people were above 28years.

Nineteen (17%) people were between the ages of 15-20.

Two people (2%) surveyed were from 13-15 years.

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Breakfast Behavior

Q. We asked people to choose their typical breakfast menu from a list of items

given.

The table shows that at breakfast, tea is consumed (61%), bread (59%), egg (56%) and

milk (37%).Which are the most high consumption breakfast items. Jam/Honey was

recorded to have (21%) consumption.

Q. We asked the surveyed people to list down the reasons that caused them to miss

breakfast.

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70% people claimed “lack of time” as the major reason while.

33% admitted that they cannot have heavy breakfast.

Q. We asked people to select from the options to describe breakfast at their homes.

62% mentioned that everyone at their home eats at different timings.

35% said that their mothers cooked the breakfast.

23% people said that every one eats together.

20% said that not everyone at their home has breakfast.

15% mentioned that they prepared breakfast for themselves.

Q. We asked people to rate the importance of the following factors in breakfast:

1=highest importance, 5=lowest importance

Taste

Ease to prepare:

Convenience

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Health:

Satisfy hunger

Energy Boost

Easy to digest

Fun to eat

Family Bond

Affordability

We observed that while taste, ease of preparation, convenience to eat, health,

hunger satisfaction and energy boost were considered most important.

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Easily digestible and fun to eat were comparatively less important factors while;

Family bond and affordability were given even lower importance.

Consumption frequency of bread

The table shows the consumption frequency of bread

Level of frequency Percentage

Once Every day 30%

Once in 2 days 13%

Once in a week 15%

Once in a month 4%

Rarely 13%

Bread insights:

Q. We asked people to mention how they consumed bread.

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45% of the people surveyed said that they had bread with sweet spreads like

(jams/honey), while 41% had it with savory spreads (mayonnaise, cream cheese). 26%

people said that they dip their bread in milk/tea/coffee where as 28% eat plain bread.

Q. Do you Toast your bread?

We found that 49% people toasted their bread while 27% people did not.

Q. We asked people when they had bread other than at breakfast.

35% answered at tea time, while 30% consumed bread at night and 16% at lunch.

Openness to try flavored bread:

52% said they would try flavored bread while 33% answered “maybe”.16% were hesitant

in trying the new kind of bread.

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Openness to using flavored bread in recipes:

40% said they “might” use flavored bread in their recipies.28% said a definite “yes”

while 7% replied in a clear “no” to using flavored bread in their recipes.

Wanted Flavors:

Chocolate (59%), honey (43%), cheese (68%) and Nuts (32%) were the most favorite of

the listed flavors.

Bread Brands Consumed:

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80% people wrote that they consumed Dawn Bread while 41% had Bake parlor.15% said

they had bakery bread. This shows the distinct market leadership of Dawn bread.

Place of purchasing bread:

We found through the survey that bread is mostly purchased from general stores (66%),

35% from bakeries and 27% from super markets.

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Research Analysis

Since taste, ease of preparation, convenience to eat, health, hunger satisfaction and

energy boost are most important considerations for breakfast; we would be positioning

RotiWala to embody these values.

Bread is an essential part of a typical breakfast meal; as shown through the statistics, 59%

of the population has bread in the morning. 62% mentioned that everyone at their home

eats at different timings, whereas 70% people claimed “lack of time” as the major reason

of skipping breakfast. RotiWala provides bread that is nutritious, convenient (don’t need

to apply anything but can if want).

And something that makes life more pleasant and lets you connects with your family. It is

for all members of the family however the bulls eye target audience would be kids (8-18

yrs) and the primary target audience would be youngsters 20-28 years and

parents(mothers and fathers).

40% said they “might” use flavored bread in their recipies.28% said a definite “yes”

while 7% said a clear “no” to using flavored bread in their recipes.

52% said they would try the bread while 33% answered maybe.16% were hesitant in

trying the new kind of bread. Thus generating trial and awareness would be the major

concern for the bread.

We learnt that 49% people toast their bread while 27% do not. Also the shape of the

conventional bread (slices) is easy to fold, apply spreads on and dip in milk/coffee/tea.

We would like to keep the design of this flavored bread like regular bread (slices) so that:

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The target market directly compares flavored bread with plain bread. (As we are

targeting the breakfast market).

Users can use the bread like regular bread if they want. We would not to inhibit

any consumption habits but conduct a research again after the product has been in

the market for some time to truly understand consumption behavior of flavored

bread. And then if necessary re consider the design of the product.

Product Review

Brand Name: RotiWala

Product Category: Flavored/ stuffed bread

Product Variants: Starting with three different flavors (coco, walnut and honey)

Product Specialty: Nutritious, energy booster, healthy ingredients.

Product Form: Soft stuffed bread in slices like regular bread e.g. dawn bread.

Product packaging: Plastic wrapper like regular bread but with zip locks to portray

premium quality.

The promotional content on the packaging would be:

Brain games for children and adults alike

Nutrition values

Colorful packaging with RotiWala’s logo and name of the variant.

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SWOT Analysis of ROTIWALA

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Strengths Weakness

First Flavored bread produced locally Rotiwala will have to build

meaningful and Is positioned as premium quality

breadcreative concept that will have to be

readilyat an affordable price accepted by the consumers but yet the

Available in 3 different flavors catering to

Fears are still strong as 7% people said they would not try flavored bread and

28% people said “maybe” they would try flavored bread.

Different tastes and preferences. Our Brand is a new brand and brand

loyaltyis developed over years

Opportunities Threats

Soft and plain bread has become an essential

Dawn's monopoly in market

part of our daily routine There are high chances of failure Bread is consumed in breakfast, lunch

and Pakistan's economic instability is a

major threat.Dinner

Consumer tastes and preferences change with

time and they need a variety of flavors There is a lack of awareness and

availabilityof such bread

A Review of Competition

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The review of our competitors is a very comprehensive exercise that requires mapping of

all the present and potential (new entrants) competitors in the market. It is important to

have a clear understanding of the alternatives from which the potential customers can

choose. Therefore Rotiwala will also assess the competitive environment in which they

will operate and the competitive advantages/benefits they will have in their flavored

bread eaters’ target segment.

It involves reviewing competitors’ Marketing Mix Strategies in detail. Questions that will

be thoroughly analyzed are:

1. What are the competitors’ product offerings; product features, benefits,

competitive advantages and USP?

2. What are the promotional strategies competitors are undergoing, which marketing

tool are they employing?

3. What are the places the competitors are targeting, what is the supply chain of the

competitor?

4. What is the price that competitors are charging from the customers?

Competitor Analysis includes both direct and in indirect competition:

Direct competition:

Direct competitors are all those firms who are likely to gain or lose a substantial share of

customers from each other over time because they serve the same customers and offer the

same benefits. For RotiWala, the direct competitors are all those breads that cater to the

breakfast meal. Since there is no brand offering flavored bread, the direct competition

would be all plain bread brands. DAWN is the biggest player and then comes Bake Parlor

and then bakery prepared breads, as per our research.

These plain breads may venture into flavored breads and may start giving the same value

to the consumer.

Indirect competition:

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Incorporates all other eatables that would be consumed during breakfast or tea time hours

for example:

cup-cakes buns biscuits muffins donuts

However the above mentioned are not consumed as much as plain bread at breakfast, we see a better profit potential by stepping into the breakfast market. Thus the above mentioned cakes are indirect competition for tea time rather than breakfast.

How ROTIWALA is different?

Rotiwala’s- POSITIONING- USP

Flavored bread in three delicious flavors cocoa, honey and walnut(Differentiation)

Good enough to be eaten alone or with spreads and satisfying products like rich

chocolate ice cream or mint with chocolate chips.(Convenience and luxury)

The convenience and ease gives more time to bond with family.

Nutritious, energy boosting and tasty bread to have your mouth watering like a

waterfall craving for more and more.(Nutrition and taste)

Distribution mechanism of ROTIWALA

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ManufacturerManufacturer

THE WAREHOUSE

THE WAREHOUSE

THE DISTRIBUTOR

THE DISTRIBUTOR

RETAILER RETAILER


Objectives & Issues

LONG TERM OBJECTIVES OF ROTIWALA

To gain a market share of 20%-25% in the time period of 3 years

To create high levels of awareness among the target market.

To create brand equity and loyalty

Regional expansion (increase distribution to other cities)

To find marketing partners such as Oreo cookies, etc to bring in different flavors.

SHORT TERM OBJECTIVES

To generate high sales through various promotional tools

To create preference among the buyers.

ISSUES

If DAWN or other big indirect competitors were to introduce their version of

flavoured bread then attaining 25% of market share objective of in 3 years could

take longer than expected.

Creating and maintaining brand equity could also pose few issues but those too

would be covered over strenuous promotion under the marketing strategy;

positioning the brand in the consumer’s mind in a unique and creative way.

How will we counteract to price and promotional wars by big giants as we will be

a new and not so well established firm/company.

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Promotional Strategy

RotiWala would be introduced in the market as an innovative, high quality and rich

brand. All communications made by the brand would position it in line with the

positioning in the brand key.

RotiWala would have engaging BTL activities mainly for the core target audience (kids

8-18yrs). However the ad campaign would be made to appeal to all members of the

family.

Values communicated would be nutrition and health, goodness of life, family bond,

convenience, energy and happiness and of course the differentiated luxurious taste.

Following are the objectives of the communication campaign:

Increasing awareness of the brand and establish its unique positioning.

Focus on value delivered and USP.

Generating trial and acceptance of the idea.

Constant hype around the brand and constant engagement of the target audience.

The Integrated marketing communication (IMC) Plan

The Product Launch

Objectives: To increase “awareness” and “top of mind”. To increase acceptability of flavored bread. Creating constant hype around the brand. To generate trial of RotiWala’s bread and develop the taste for flavored bread for

breakfast.

Media Mix: Publicity / Public Relations Billboards TV Radio Internet Magazines Merchandising

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Pre Hype

Since the concept of flavored bread for breakfast is new, the cognitive stage is crucial. We want to create hype around the brand to generate interest and awareness that goes viral through publicity, internet and word of mouth.

The Big Idea: Who is RotiWala??Promotional Mix:Billboards, internet marketing, publicity on TV and radio

Pre-hype-Phase 1:

Billboards: We would advertise statements on billboards to trigger the viral publicity and word of mouth such as:

“Rotiwala has broken the rules”“Rotiwala is coming to your town”

Viral PublicityPeople talking on TV, radio, internet (blogs) about the new enigma,“Roti Wala”.

Online: Make Website for RotiWala Make RotiWala’s face book fan page Blogging Run interactive Banners

The online medium would play an important role in the spreading of the viral idea. We would make interactive banners that would ask people to guess who RotiWala is. These banners would lead the audience to the website and the facebook page .This is to generate leads and data bases of the target audience. When later the idea is exposed, we would start engaging these audiences online.

Pre-hype, Phase 2:

Phase 2 would be a step ahead of phase1.The viral WOM and publicity will further is triggered by controlled rumors that would be leaked through various opinion leaders on TV, radio and bloggers. These rumors would be similar to e.g student biryani’s story. “The poor man who wowed people with his amaizing biryani and went big”.

This stage would be supported by internet marketing and create more traffic on the facebook page and RotiWala’s fanpage for people who seek to solve the RotiWala mistery.

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Later in Phase 2, the countdown will begin...

Phase3, Launch:In phase three, the Ad will be launched on TV as well as uploaded on the website and the fan page. The website would become operational and the following BTL would be supported on the online medium.People would be exposed to the RotiWala’s innovative idea, teaser billboards would be replaced by RotiWala’s ads. Also,the engagement on the website would begin..

BTL Launch:Activation by RotiWala would take place that would be covered on TV as well as on the website and official fanpage of RotiWala.

BIG IDEA: RotiWala would be hosting breakfast at different schools, colleges and universities.

BTL Activations at (Launch)

Nashta at colleges and universities:RotiWala would go to certain schools, colleges and universities. Set up for 2 days and provide free breakfast. (RotiWala bread variants with tea coffee milk etc.)A list of places Rotiwala will be going to would be published on the official page and website of RotiWala.

The videos of each visit would be uploaded on the website as well as followed on TV, news channels.

“This would allow the TA to experience RotiWala and generate trial. Awareness would be created for audiences at home too”.

Alliances:Create alliances with offices and companies that offer breakfast and other meals to serve “RotiWala” at breakfast. Also, teach them how to use bread in recipes such as deserts etc.

“This would make people with the buying power get used to the flavor while they would be bombarded with messages about the nutrition factor of the tasty bread on TV ads”

Media MIX:

Publicity and PR Celebrities talking about RotiWala’s new idea, its taste and nutrition. As RotiWala goes to schools, the event would be covered on TV, radio and online

and further cause spillover publicity.

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Online There would be a website and facebook fan page for Rotiwala. The website would have descriptions of the bread flavors, nutrition content and

how they are made.(usual website content).Also:

Tabs showing how to use the bread in different fun ways.

Online voting for new flavors: When RotiWala would want to introduce a new flavor after some time of the launch, options would be made available on the website and people would be able to vote for what they want.

There would be activities to engage the younger audiences and encourage families to buy more RotiWala.

Activities, Games and Competitions on websites:

Art work competitions to design packaging: Designs would be submitted on the website and fan page. The winning designs would be selected through votes of the fans. Every week or every month the winner’s design would be used for the packagingThis would increase fans on the fan page and increase traffic on the website . This would also induce purchase.

Brain games: There would be brain games on the back of the packaging such as puzzles etc. These games would be solved on the website to participate in the weekly contests. The winners would be announced on facebook or could be printed on the packaging. The winners would win prizes every week.

This would increase fans on the fan page and increase traffic on the website . This would also induce purchase.

Picture competition: Where parents can send pictures of their children eating the flavored bread in different fun ways. The winners’ picture would be printed on the packaging and be announced on the website.

All these activities and the website would be promoted on TV; on cartoon channels such as Cartoon Network and Nickelodeon.

TV The official Advertisement for RotiWala would run on various channels to be exposed to all target audiences.Publicity would be through TV at Pre-hype as well after launch.Radio Ads would be run on radio and radio would be used in the viral publicity.Magazines RotiWala Ads would be placed in Magazines.Merchandizing In store advertising to promote RotiWala at point of sale

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Creative Brief of Rotiwala

What is the problem we are trying to solve? (The main objective to be achieved)

How to introduce a brand by Rotiwala into the market while delivering an impactful and entertaining message that will attract individuals towards it and bring a change in consumer’s consumption pattern from switching from a normal white bread to a flavoured bread and creating acceptability and increase awareness.

Who are we trying to motivate? (Who will be our target audience?)

Bulls-eye will be children lying in the age bracket of 9-16 years old.

What will drive our consumers to our product?

The idea of introducing flavored/stuffed bread in 3 different fun loving flavors which has never been introduced by a local Pakistani brand/company will drive the consumers to our product.

How will we do it?

We will do it by considering and highlight number of different factors: Break fast baney fun or Masti bhara nashta Instant energy Good taste and smell Easy to eat and full of nutritions Can be eaten in a number of ways Convenience A good substitute to bread and jam

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Budgeting

An Estimate of daily Bread Sales in Karachi / units

BAKERY MILK SHOP RETAIL OUTLETSmall Medium Large Small Medium Large Small Medium Large18-23 35-45 70-80 18-25 50-60 80-90 15-25 60-80 140-160

Estimate of number of selling points in different parts of Karachi

Clifton 300DHA 400Sadar 250Garden 400Nazimabad 650PECHS 350Bahadurabad 300Malir 300Cant 200SITE 150Korangi 400Liyari 250Liaqut a bad 400Gulshan - E - Iqbal 600Gulistan - E - Johar 650Karima Bad 400New Karachi/North 690Port Qasim 210Hubco 150Hawksbay 100Shahfaisal Colony 400Gulshan - E- Noor 150Landhi 400Baloch colony 200II Chundrigar Road 200Others 1500TOTAL 10000

Sales Projections and Marketing Budget derivationSales Projections and Marketing Budget derivation

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Type of OutletSmall Medium Large

Average unit

sales/day

Bakery 18 35 70 41Milk shops 18 50 85 51Retail Outlets 16 74 150 80 Average sales of bread units in Karachi /day 57 Average sales of bread units / month 1,720No. of selling points in KARACHI 10,000Average selling price per unit/Rs. 40Total sales revenue/month 688,000,000Year revenue 8,256,000,000Units sold per month 17,200,000Sales Revenue per day 22,933,333Units sold per day 573,333 ROTI WALA'S Target Market share,

Revenues and Marketing Expenditure Market Share 8 percentRevenues per year at 8 % target market share 660,480,000Marketing expenditure - Allocated % 10 percentTotal Marketing Budget 66,048,000

Research Objective

To calculate an estimate of yearly sales of breads in Karachi; the calculated figure allows us to have an estimate of yearly revenues of our brand and also the available budget for yearly Marketing expenditure.

Sample: Sample taken for sales forecast include 3 categories of selling points: Bakeries Milk shops Retail grocery outlets

These 3 categories were further categorized as Small, Medium and Large based on their size and inventory turnover. To reduce sampling error, we took three regions for survey which include:

Defence/Clifton Gulshan and Gulistan-e-Johar Garden

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Methodology

We used percentage of sales method to derive Marketing budget for the year. 10% of total sales is allocated for Marketing expenditure. However, for calculating the total sales of our brand, we first found out the total units of bread sold each day in Karachi.

Annual Sales revenues of breads sold calculation

Taking the average of sales units of Small, Medium and Large size selling points of each category.

Once the average of sales units of each category comprising of small, medium and large size selling points was calculated, we calculated an average of all categories to find an average sales units per day of breads.

The calculated sales units per day of breads were than multiplied by 30 to find monthly sales unit and further by 12 to find yearly sales units.

The annual sales unit calculated was than multiplied by an average price. This price was calculated by taking average of different prices of breads depending on their size and flavor (Mini, Medium, Large, Branded, Unbranded, Milk, Normal, Bran). Hence annual sales revenues were calculated.

Annual Sales revenues of Rotiwala calculation

To calculate Annual Sales revenues of Rotiwala, we assumed our yearly market share to be 8%. The 8% of total market gave the figure of total of Rotiwala. On this figure, we applied percentage of sales method and allocated 10% for Marketing Expenditure.

Results & Conclusion

Annual Sales of Rotiwala are estimated to be Rs.660,480,000.Marketing expenditure for the year is Rs.66,048,000. This is the total budget that has to be used for Rotiwala’s IMC campaign through the year.

Controls

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We will place effective controls to monitor progress and take corrective action for the

following key areas

Price

We’d have to monitor and correct our pricing strategy after approximate three months of

the evaluation and trial period so as to better understand our consumers and whether or

not they’re willing to pay the price they said they would in the research stage. We’d have

to effectively note down all the possible areas where price cuts could be made, the

manufacturing process, the distribution channel, or perhaps the ingredients in the

products that make up the flavored bread. All of which must be presented in a form to

top level management so that effective measures can be made to bring down overall costs

for the consumers.

Place

Researching and collecting data from certain areas where our product is being made

available to convert to information that can be made useful to top level management on

making decisions that could determine the action to be taken in respect to the situation at

hand. We’d have to take into consideration a number of elements that could determine

why our product isn’t doing very well in a certain area. It could be poor distribution or

poor promotion for the area in question and therefore measures must be taken to ensure

that all these problems are taken care of and solved quickly so as to improve customer

satisfaction in all key areas.

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Final Marketing Report- Edited[1]

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