Rooh Afza The Exordium “In the Name of Allah the Compassionate the Merciful” Praise to Allah, Lord of the creation, The Compassionate, The Merciful, The King of the judgment day! You alone. We pray, and to you alone. We pray for help, guide us to straight path, the path of those whom you have favored, not neither of those who have incurred your wrath, nor of those who gone astray. 1
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Transcript
Rooh Afza
The Exordium
“In the Name of Allah the Compassionate the Merciful”
Praise to Allah,
Lord of the creation,
The Compassionate,
The Merciful,
The King of the judgment day! You alone.
We pray, and to you alone.
We pray for help, guide us to straight path, the path
of those whom you have favored, not neither of
those who have incurred your wrath, nor of those
who gone astray.
Al-Quran.
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Rooh Afza
Acknowledgement
One of the most pleasant parts of writing a report or any presentation is the
opportunity to thank those who have contributed to your efforts. Unfortunately, the list of
expressions of thanks – no matter how extensive – is always incomplete and inadequate.
This acknowledgment is no exceptions.
First of all we are thankful to Almighty Allah who gave us the courage to
complete this task and to our resource person Mr. Mobin-ul-Haque who stood behind us
whenever we need his guidance and support. His unflagging patience and outstanding
capacity work made this report possible.
We also admire the efforts of our other teachers and advisors and all other people
who help us in this report. And yes there are many others whom we are not able to
mention the names but we really appreciate the cooperation and help provided by them.
We will remember you all.
Thanks.
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Rooh Afza
Introduction:
Rooh Afza was introduced in 1907, and was included in the first list
of drugs of Hamdard in 1908. The qualities attributed to it at that time were mainly
medicinal.
Hakeem Abdul Majeed, the founder of Hamdard India's leading organization devoted to
the 'Unani' System of Medicine was led to this formula by his intuitive faculty. No other
formula could surpass it in quality, range and efficacy in those days. The almost 90 year
old history of Rooh Afza is also a pointer to the fact that no better formula has yet been
evolved.
The matchless qualities and merits of Rooh Afza soon brought it to the notice of the
people. By its distinctive taste, fragrance and colour it began not only to attract the
common people, but also inspired the writers and poets to make it a theme of their
creative efforts.
The Name 'Rooh Afza:
It has not been found out yet how the founder of Hamdard
came upon the name 'Rooh Afza'. Some think that this name is the product of his mind.
Others express the view that it came from some book of ancient myths and legends. Of
such books, one is very famous; the 'Masnavi Gulzar-e-Nasim' which was first published
around 1254 Hijri. In this book, the name of a character is 'Rooh Afza' who, according to
the writer, was the daughter of Muzaffar Shah, the King of Firdaus (Heaven).
'Rooh Afza' was also the name of a weekly, which used to be published from Jaunpur in
1882.
Rooh Afza (The First Processor):
Hakeem Ustad Hasan Khan, the first processor of
Rooh Afza, was a resident of Saharanpur in the state of Uttar Pradesh, but he had come to
stay in Delhi for a very long time. He now lives in Karachi and is, at the age of over a
hundred years, the custodian of the history of Rooh Afza. Going over the pages of his
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Rooh Afza
diaries, he recalls the past. The early stages of the preparation of Rooh Afza are still vivid
before him.
Identifying need:
Rooh Afza satisfies thrust need of the consumers. As there are number
of homogeneous and brand products to satisfy thrust need of the consumer so Rooh Afza
faces a lot of competition.
What makes Rooh Afza so good?
In 1907, there were syrups of individual fruits or
purely herbal syrups or syrups made with juices of sweet-smelling flowers such as Rose
and 'Keora'. The founder of Hamdard managed to integrate all these three categories in
the formula of Rooh Afza in a very striking manner. He chose from among the drugs
wholly medicinal properties and from among the fruits his discerning eyes fell on orange,
pineapple, carrot and watermelon, which contained higher medicinal qualities. He
displayed a novelty by including in his formula some vegetables such as palak, podina
and hara ghia. Besides Rose and Keora, the traditional flowers of the time, the use of
flowers of juicy fruits like lemon and orange, roots like 'khas' with subtle aroma, sweet-
smelling woods like sandal can be described as providential selectivity.
Rooh Afza in a nutshell:
When we keep in mind the many qualities of Rooh Afza's
ingredients, described above; it is easy to understand why it has been found to be an
exceptionally appropriate summer drink. One that can be depended on to keep body water
in balance. But apart from this, Rooh Afza has many more beneficial and nutritional
qualities, the important ones of which are:
Rooh Afza as nutrient:
In the form of invert sugar, glucose and fructose.
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Rooh Afza
Rooh Afza for retention of body water:
Has the ability to maintain and finally adjust
the body's water balance due to the presence of electrolytes in balanced quantity.
Rooh Afza's medicinal properties:
Which stimulate and correct the function of the heart,
liver and kidney and check vomiting, diarrhoea, indigestion and stomachache.
Rooh Afza's soothing and refreshing properties
Which acts on the central nervous system and the rest of the body.
When to use Rooh Afza
To protect and treat To maintain
Dehydration (water loss) Nutritional status of the body
Heat Exhaustion Proper functioning of the heart
Heat stroke .
To treat To keep
Fever due to Fresh
heat exposure Active
Vomiting Energetic
Diarrhoea .
Stomach ache
Besides the cooling, refreshing and rejuvenating properties, Rooh Afza is noteworthy for
its all natural list of ingredients.
Ingredients of Rooh Afza:
It contains individual pure syrups of fruits (orange,
pineapple, carrot and watermelon) flowers (rose, keora, orange flowers and lime
flowers) And some medicinal herbs like khurfa seeds, kasni, munaqqa, chharrhila,
nilofar, gaozaban, hara dhania etc. and even some vegetable extracts ( palak, pudina,
hara ghia ) roots ( khus ) plus sandalwood
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Rooh Afza
Rooh Afza is an exceptionally appropriate summer drink. Besides cooling, refreshing,
with a Great Taste, it is also therapeutic and nutritional, maintains and adjusts the body’s
water and electrolyte balance, stimulates the function of liver and kidney, checks
vomiting, diarrhea, and indigestion.
Besides a glass in the sweltering summer also helps keep one active and energetic.
Rooh Afza over other drinks:
It is indeed sad to note that the product has shown a
decline in its sales figures over the years. The reasons could be manifold. Unfortunately,
Rooh Afza is not favored by many due to:
Colour: not everyone likes a red coluored drink. I have no hassles, however.
Sweetness: Some dislike Rooh Afza because of its sweetness. As it is mostly made of
rose petals and fruit juices one cannot expect it to have a tangy flavor, but a few drops of
lime juice in the glass of Rooh Afza leads to the perfect balance. Also the amount to
syrup used can well be adjusted to modulate the level of sweetness.
Not modern: The above non-issues apart, the drink is considered ‘not modern’ and
possesses a ‘fuddy duddy’ household image that no ‘trendy’ youngster would touch with
a barge pole.
It is indeed a pity that Rooh Afza seems to have lost out to brands like Tang/ Rasna
(yuck!) for in-home consumption and to those Pepsis/Cokes (tsk tsk!) and Frooti
(eeyaarghh!!!) for outdoor consumption.
These have stolen a march over Rooh Afza over planks of coolness and youth. (The
world gets more pretentious every year)
Indoor consumption only: I guess what also works against Rooh Afza is that it cannot be
consumed outdoors. It hasn’t any ready to drink aspect and thus bottled, canned, tetra
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Rooh Afza
packed aerated drinks score.
One just can’t have a glass of Rooh Afza on an impulse, in the sweltering heat whilst
outdoors, a time when you require it the most.
When you can’t beat them joins them:
Aggressive marketing strategy was chalked out
for Rooh Afza last year. The TV ad-campaign had a group of young boys and girls
partying on a beach, an attempt to reposition Rooh Afza as ‘a modern cool drink with
natural properties’ for the youth.
This shift is indeed quite radical, but they couldn’t avoid it for long as almost all cold
drinks are targeting youth with new mantras of being cool – ‘Yehi hai right choice’,
‘Thanda matlab’, ‘Do the Dew’. (Let me laugh, but more laughable is the fact that people
actually even follow the ads’ instructions)
Rooh Afza has always been one of its kinds:
There has been me-too competition for Rooh
Afza as there are many products like it in the market as they are having good name in the
market as well but they are very much same like Rooh Afza in taste colour sizes and
packaging.
All time’s favorite product:
Why we call it healthy is because Rooh Afza has been
scientifically documented. Rooh Afza also is good in cold milk, soda, as ice cream
topping, as an additive in puddings, soufflés, and some select cocktails too. A 800ml
bottle of the syrup is available for Rs. 80/-
It is the preferred drink for health conscious folks like me who believe in natural
goodness. I do not want to drink colas or those synthetic powders/squashes with alleged
fruit content etc.
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Rooh Afza
PEST Analysis
Political Environment:
Investor does not show interest to invest here because the
political environment is not stable and there is no democracy. They see the history of
democracy and they conclude that, in 59 years history of Pakistan independence only 22
years were democratic government and remaining were under army. Stability of the
government reflects the overseas investment but in past Pakistan government was not
stable but first time national assembly has got stability for five years so it is good sign for
investing activity. Government has given return and shows the politeness in its rules and
Mission Statement
To preserve & promote eastern system of Medicine,
To establish the principles of pharmacy, its furtherance &
standardization,
To teach & publicize the principles of health, hygiene &
medical sciences,
And through these, to serve the people selflessly.
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Rooh Afza
regulation of import & export and has given free hand to industrialist to invest here.
Government of Pakistan is also giving the legal safety to investor and encouraging policy
for investor.
So in the end we can conclude that these political & legal factors reflect very bad effect
on investors and discourage them to invest here. Some policies are good but can’t success
whenever we don’t have political stability in Pakistan reflect from the past.
Economic Environment:
Economic environment is a most critical environment for any
industry. In this regard we consider the government rules and regulation because
economic policies encourage and help to take a decision for an industrialist that he should
invest or he shouldn’t invest in this country. So if we analyze Pakistan’s economy in the
our economy is growing and if we see the GDP of Pakistan, it is growing from last five
years but negative point is this that inflation is also growing rapidly which is not a good
sign for our economy. For investment purpose Pakistan’s economy is not impressive
because inflation rate is very high so we can say economic environment is very risky in
Pakistan.
Social Environment:
After considering the government rules and regulations an investor
analyzes the social environment of a country because it gives a good idea about their
product sale in a particular country. Pakistan has very different sort of culture, there are
many languages are being speak here and basically it is an Islamic country and 97% are
Muslims. Up to 40% people adopt new fashion and changes in industry. If we see
Pakistani culture in the light of red syrup industry then we will see now 60% people are
health conscious and they want pure and hygienic natural things.
Technological Environment:
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Rooh Afza
Today’s era technology can play a back born role for any
industry and if any one do not implement those changes that are occurring in the industry
then we can simply say that it would not survive and will get end very soon. Pakistan
social trend has changed and people also want fully quality product. If we take our
beverage industry there are so many technologies involve in it and consumers here want
hygienic products which are fully processed and it can not be possible without
technology.
Our government is encouraging technology competition in local market. E-Commerce is
growing up and people buy their favorite product online and Government establish a
Hardware Development Fund (HDF) to finance IT hardware related R&D and
manufacturing activities.
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Porter’s five Forces of “RED SYRUP” industry
in Pakistan
New Market Entrants:
Growth market. Few competitors Huge capital requires. High marketing, distribution cost Switching cost is high. Easy access to in put. No limitations by government.
Rooh Afza
Porter analysis of “RED SYRUP” industry in Pakistan
New Market Entrants:
Growth market:
Growth in this industry is not in rapid speed and if there is some
growth in Pakistan it’s due to its tradition, living style of people and hot environment.
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Competitive Rivalry:
Among few firms Produce nearly same products
with little difference of taste. Slow industry growth.
Supplier Power:
Large no. of supplier in market.
Inputs have no substitutes.
No Threat of forward integration.
Switching cost is high.
Supplier power is low in red syrup industry. Substitutes:
Large no. of substitutes Low Switching cost of buyer
towards substitutes.
Buyer Power:
No of substitutes are available in market.
Large no of buyer
Very low Switching cost.
High buyer power.
Buyer have No capability of back wards integration.
Rooh Afza
So there are opportunities available for the newcomer who wants to start this
business.
Major competitors:
Disadvantage for a newcomer is that there are some major
competitors in the market who have huge share in market of Pakistan like hamdard
and Qurshi. So it will be a very hard job to compete them and get a market share. No
doubt it will be a strategic war of market share for them.
Capital requirements:
Setting up business nation wide will require huge amount of
capital because its plant & factory, offices at different location, your staff, distribution
channel, and advertisement will charge a huge amount of capital. its will be difficult
to start business with less amount of capital if we will do that then we will not be able
to have market share in industry.
Marketing, distribution cost:
In start to make a brand name in market of red drink
industry it will consume a huge amount of advertisement and to sell your product at
different locations in Pakistan it will also consume a huge amount of distribution cost.
Experience and learning:
New comer should have knowledge about this industry ups
and down of that industry then he will be able to do business success fully.
Switching cost:
Switching cost of changing the business is very high because your
plants and other thing assets will not be easily sold when you will want and at the
time of shutting down you will have to face a lot of loss.
Access to in put:
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Rooh Afza
New comer will not face problems regarding inputs because there
are number of suppliers of herbal raw material are available in market.
Government policies:
There are no limitations by the government for a person who
want to setup business of red drink in Pakistan just he has to get a license or register
his firm it will be in his favour if he want to do business at national and international
level.
Supplier Power
Number of suppliers:
A lot of suppliers are available in market so there is no any
problem to get the inputs and no need to import the inputs from any other market.
Substitutes of in puts:
Because in red syrup uses herbal products so there are no any
substitutes are available in market of natural herbal products.
Threat of forward integration:
Supply have less power of bargaining because they
have no capability for forward integration, means they are not able to produce it self
red syrup and not able to sell it in market of Pakistan in large quantity.
Switching cost of supplier:
Because in market very little amount of buyer are present
so they can never bargain them and can never easily switch to the other buyer.
Overall Supplier power:
Suppliers have low bargaining power.
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Rooh Afza
Buyer Power
Substitutes in market:
A lot of substitutes are available in the market so numbers of
choices are available in the market, buyer can switch easily to any other substitutes.
Number of buyer:
Huge amount of buyer are available in the market.
Switching cost of buyer:
Switching cost of buyer is very low red syrup to any other
substitutes.
Back wards integration:
Buyer have no capability to backward integration means a
lot of buyer are available in the market of red syrup industry in Pakistan but they have
no capability to produce it self red syrup easily.
Overall Buyer power:
Huge amount of buyer are available in the market, and no of
substitutes are also available and switching cost of buyer are very low so overall
buyer are powerful.
Competitive Rivalry:
Major market share:
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Rooh Afza
3-4 firms have captured a huge amount of share in red syrup
market like Hamdard, Qarshi, Norus, and Marhaba.
According to sale of 2006:
Rooh Afza 47%
Jame-e-Shirin 42%
Marhaba 4%
Nurus 6%
Others 3%
So in this chart we can see that Rooh Afza and Jam-e-shirin has the main share of Red
Syrup industry and these are the main competitors but Norus has also good share but not
a big competitor of Rooh Afza.
Same products:
Competitors in the red syrup industry produce nearly same product with
the little difference of taste.
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Rooh Afza
Slow industry growth:
Industry growth rate is 3-4% annually its show that it’s a very
slow growth rate.
Substitutes:
No. of substitutes:
A huge amount of substitutes of red syrup are available in the market
due to which customers have a no of option during purchasing and so customer is in
power.
Switching cost of buyer:
Due to the availability of no of substitutes in market switching
cost of buyer are very low.
Rooh Afza Strategies
Existing Strategies:
Hamdard industry has developed the following strategies to promote
its products and increasing the profitability. By using these strategies hamdard is now
able to compete with its competitors.
Selected Product:
Rooh Afza 800 ml
Rooh Afza 1.5 litter
Rooh Afza 3 litter
Competitors’ Products
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Rooh Afza
Jam-e-shirin
Marhaba
Norus
Squashes
Shezan and Nestle juices
Strategic Group Map
A strategic group map displays different competitive positions that rival firms
occupy.
RIVAL FIRMS
A Strategic Group
Consists of those rival firms with similar competitive approaches
and positions in an industry. Rooh Afza and Jam-e-Shirin comes in same strategic group
with more than competitive characteristics in common like sell in same price/quality
range, cover same geographic areas, have comparable product line breadth, emphasize
same types of distribution channels, offer buyers similar services, use identical
technological approaches.
The closer strategic groups are on map, the stronger the competitive rivalry among
member firms tends to be.
STRATEGIC GROUP MAP:
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Rooh Afza
VARIABLES
Segment
Product
Map explanation:
In above map there are two variables Segment and Product.
Low income:
We can see in the map that low income level people use open beverages
more and after that none branded packed beverage, but the percentage of branded packed
beverage is very low (Rooh Afza and Jam-e-Shirin).
Middle income:
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Rooh Afza
In the above map the middle income level people use branded packed
beverage (Rooh Afza Jam-e- and). The percentage of imported juices and nestle juices is
very low.
High income:
High income level people uses imported juices more. And the percentage
of branded packed red syrups is very low.
STRATEGIC GROUP MAP
VARIABLES
Sales
Product
Map explanation:
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Rooh Afza
In the above map there are two variables sales and product.
We can conclude from above map that the sales of open beverages and none branded
packed beverages are very low. Secondly the sales of branded packed red beverages are
medium. And thirdly the sales of other imported juices in the market are very high as
compare to last two categories of product/beverages.
Segments of Rooh Afza
In this portion of project we will discuss that how many segments Hamdard is serving
for its product Rooh Afza and what strategy they are using for these segments.
Market segmentation:
The commonly used basis for segmenting the consumer market may
be grouped in following categories, which are selected by the Hamdard for its product
Rooh Afza as well:
Geographic Segmentation:
Hamdard Rooh Afza consumption is related with the
geographic as well as economic conditions of a place. Red syrup is demanded in every
area of Punjab, Sindh, Balochistan & NWFP. The cultural distribution can be stated as
renew and regional distribution will be divided into Urban, Sub Urban, Ex Urban, and
Rural. The climate of Pakistan is steamy, we have long distance of summer that starts
from March and ends in October. So, the demand for Rooh Afza is high in summer.
Demographic Segmentation:
Age: People from all age groups
Sex: Both Male & Female
Occupation: People from all walks of life
Income: Rs. 10,000/- and above
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Rooh Afza
Religion: every religion
Psychographics Segmentation:
The social class, which is included in the target group of
Rooh Afza (Red syrup), is consumer from lower upper class and middle class. They will
buy this product because of their social set up and price of the product. The consumer has
large range of personalities from dynamic to interesting. From self confident to extra
vested, from risk-taking to social able. The personality of a person makes a lot of
difference in buying power.
The lifestyle of consumer varies from flashy, broadminded modern to dull traditional and
backward. It is a very important factor which very much influences the buying pattern of
the consumer. People will be mostly influenced by high quality, healthful richness and
branding of product.
Behavioral Segmentation:
The customer expects high quality in a new product to shift
from existing one. Red Syrup (Rooh Afza etc) is pure and 100% natural drink, which
creates loyalty and consumers normally don’t shift from this product. Rooh Afza is
available in different sizes plastic bottles and suitable for consumers that they can use it
any time at home with out any expiry date. It is very regularly consumed product so its
usage rate is very high in summer and especially in the month of holly RAMZAN.
Benefit Segmentation:
The people group (old age) more receptive for healthy lifestyle
and wanting mild fragrance of drink are more attracted and benefited by Rooh Afza.
Because in old age people don’t like Pepsi, coca cola etc due to injurious impact on their
health and some times doctors strongly recommend to old age people that they should use
natural and pure drinks like Rooh Afza because it has no side effects on health.
Target Market:
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Rooh Afza
A target market is defined as a group of customers (people or
organization) at whom seller specifically intends to aim its marketing efforts. For this
purpose company must analyze three components:
Consumer
Buying Power
Social and psychological factors influencing buying patterns
With the increase in literacy rate, awareness about health and physical fitness is cutting
across our society. This means Red Syrup industry has market in each age group of
society. Due to increased industrialization the income and the life standards are
improving. But the new generation is becoming modern and their life style is totally
change and they like Pepsi and coca cola rather than Red syrups.
The main uses of Red syrup (Rooh Afza) are:
Health and fitness
Refreshment and entertainment
On the basis of above information Hamdard Industry adopted differentiated
Marketing Strategy for different drinks like Sundel Syrup, Ilachi Syrup, Almond Syrup
etc and about 200 medicated products. Natural resources are not limited and Hamdard
industry can introduce different flavors for different segments of the market and different
marketing programs for each segment.
Segmentation Strategy:
Hamdard industry is targeting all above-mentioned Segments
and they have developed multiple strategies for a single product Rooh Afza because each
& every target segment is getting benefit from this single product (Rooh afza) like:
Females are more conscious about their health & fitness and also for their kids
and whole family.
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Rooh Afza
Teachers also convince students for selecting delicious, energy & natural drink
full of fun like Rooh Afza
Doctors prescribing natural herbal drinks to Women, Children and Old age
people. Mostly children are getting benefits from Rooh Afza because sometimes
children don’t drink milk and mothers prepare Rooh Afza by mixing milk in it
and children drink more than average. It’s a strategy of Hamdard Rooh Afza for
targeting children segment. And more over Hamdard industry prepared Rooh
Afza in a way that each and every segment is getting benefit from it.
PRODUCT
Product line:
Rooh Afza is available in single flavor but the Hamdard industry has broad
range of Product line. All the products are made from 100 % natural ingredients with no
artificial flavors. Products of Hamdard are safe and have no side effects on health.