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Submitted to: Submitted by: Group 2
Dr. Kanwal Kapil Anand Kumar - 12P127
Anisha Bansal - 12P128
Ankush Singla - 12P129
Anubhav Gupta - 12P130
Bhoomi Ashwin - 12P131
(3047 Words) Aditya Chadha - 12P132
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Marketing Planning Page 2
Executive Summary
The objective of this report is to apply the concepts and methods of marketing
to a real world marketing opportunity. This exercise imparts a clear design and
practical knowledge on the implementation of marketing strategies and plans.
RoohAfza has beenselected as the product for the report because it is a
traditional drink that has stayed relevant and is one of those rare brands that has
a hold over consumers not because of marketing but because of its product.
Energy and health has been made the unique selling proposition for the brand.
For this purpose, market research was done over a sample of 259 people using
the questionnaire method. The market research data was critically analysed in
order to make conclusions.
In the trailing report the marketing strategy for RoohAfza has been mentioned
to put these conclusions into practice. The target market, positioning,
competition & product, pricing, placing, promotion strategy is specified to
accomplish the goals in the best possible manner.
The report covers SWOT analysis, PEST analysis and Porters Five Forcesmodel to evaluate the current position of the brand itself. All possible areas and
topics have been covered in the report that is necessary for repositioning
RoohAfza.
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Tables of Contents
Introduction.... 5
SWOT analysis....................... 6
PEST analysis..................... 8
Porters Five Forces Model Analysis.. 11
Hypothesis... 14
Methodology....... 15
Survey Results and Analysis....... 16
STP Strategy.................... 24
Future Scope............ 26
Conclusion............................ 27
References......... 28
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Section I
(725 Words)
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Introduction
In India, Bangladesh & Pakistan, Hamdard (Wakf) Laboratories is one of the
most renowned Unani and Ayurvedic pharmaceutical companies and the world's
largest producer of Unani medicines. It saw its inception in 1906 by Hakeem
Hafiz Abdul Majeed in Delhi, and transformed into a non-profitable trust
(Wakf) in 1948. Some of its most famous products include Safi, Sharbat
RoohAfza, Cinkara, Roghan Badam Shirin and Pachnol are among its most
popular products. Hamdard Foundation is a charitable educational trust in India
which it reinvests its proceeds into altruistic activities.
The scarlet-hued refresher, RoohAfza was founded by the company in 1907.
This traditional summer sharbat has survived the Indo-Pak Partition, the
licence raj, the economic reforms, fizzy drinks and tetra-pack juices. When the
motor car was on its way in and the horse buggy on its way out, Sharbat
RoohAfza was there, an advertisement in an ancient newspaper defines its long
survival race. More than 100 years older, it is still going strong.
The explicit Unani recipe of RoohAfza is a mix of several popularly-considered
cooling agents, like rose, and used as remedy for hot summer winds loo. It is
commercially sold as flavoured syrup for sharbats, cold milk, shakes and cold
desserts like the famous lassi and falooda. By its idiosyncratic taste, colour and
aroma, it not only began attracting the common populace, but also motivated the
poets and writers to make it a premise of their creative efforts.
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SWOT Analysis
Strengths:
It is a popular drink that acts as coolant and an instant source of energy It is made out of natural ingredients, a type of UNANI medicine which
has zero side effects
It is used as an additive and a taste maker It comes under the category of low price drinks It is recognized as a Ramadan Drink to break days fast
Strengths
-Acts as a coolant
-Made of natural ingredients
-Additive and Taste maker
- Low Price Drink
Weaknesses
-Not ready to drink
-Available in glass bottle & one size
-Seasonal sale variation
-Explore new flavours
-Tapping high congregation points
-Produce complimentary products
-Tapping nutrition trend
Opportunities
-Cola loving generation
-New entrants
-Presence of alternatives
Threats
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Weaknesses:
It is not a ready to drink beverage It experiences seasonal variation in sales It is available only in one standard size, leaving no choice for customers It is available only in glass bottles which should be handled with care It is not suitable for diabetic patients
Opportunities:
Tapping high congregation pointsMetro stations, hospitals, malls,highways, tourist spots
Explore new flavours Produce RoohAfza complimentary products In the current nutrition trend people are becoming more health conscious
which can be tapped
Threats:
As todays young generation is cola-fan and milk-diffident, it might loseits market share
Other companies shifting to health market, e.g. - tetra-pack juices. Squash, homemade syrups and Glucose are competitors
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PEST Analysis
Political:
Non alcoholic beverages fall within the food category under the FSSAI (Food
Safety and Standards Authority of India).
Behind the operation of manufacturing these products, the government has an
important role in terms of regulations. There are impending fines laid down by
the government on the companies not adhering to a standard of laws.
Following are the factors that could cause a deviation in RoohAfzas actual
results from the expected results:
Political
Changes in Law and Regulation
Political unrest and other regulations
Economic
Changes in non-alcoholic business environment
GDP growth - High disposable income
Social
Changing consumer habits and lifestyle
Changing buying behaviour
Technolo
gical
Improvement in processing and packaging techniques
New avenues - Social networking websites
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Reforms in law and regulations include changes in accounting standards,up to date taxation norms and environmental laws in domestic as well as
overseas jurisdictions.
Political changes include government reforms and civil turmoil.
Economic:
1. Frequent changes in non-alcoholic business environment which includecompetitive product, pricing pressures and their ability to achieve or
maintain allocation of sales in the local market as a consequence of
endeavour by competitors.2. The GDP is growing at 6-7% which has resulted in an increase in
disposable income. This shows that the buying power of people is
increasing which has two effects:
A positive effect on the sales of RoohAfza since more people willbe able to buy the product
A negative effect on the sales as people will look for comparativelyexpensive alternate options such as soft drinks and juices
Social:
1. Change in consumer habits as well as lifestylesTodays consumer isseeking healthier alternatives.
2. Consumer buying behaviour is changing.
Technological:
1. With the introduction of the tetra-pack, packaged juice market has comeinto existence which is giving a tough competition to RoohAfza.
2. Improved processing such as distilled extraction of fruits, vegetables anddrugs.
3. Improvement in packaging technology.4.New marketing avenues with the advent of social networking sites like
Facebook.
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Section II
(1214 Words)
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Porters Five Forces Model Analysis
1. Threat of new competition - Low Advertising and MarketingBeverage industry needs huge
amount of money to spend on advertisement and marketing. This
makes it exceptionally hard for a new competitor to enter the
market and expand.
Customer LoyaltyRoohAfza has a fair amount of share in theminds of consumers. Hence, it becomes nearly impossible for a
new player to establish its product.
2. Threat of substitute products - HighThis product line is enriched with many substitutes such as water, tea,
juices, coffee etc. accessible to the consumers. The majority of the
substitutes cannot counterpart the offers of the active players
Threat of new
competition -
Low
Threat of
substitute
products - High
Bargaining power
of consumers -Low
Bargaining power
of suppliers - Low
Intensity of
competitive
rivalry - High
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Assertiveness of substitute products in endorsementCompaniesin the beverage industry spend vast amount of money on
advertisement and marketing to distinguish their products from
others and also build brand equity, loyal customer base and
enhance visibility
Switching cost of the alternative product is very low so consumerscan easily move towards the substitute products
Perceived Price/Value in this industry is very low because mostproducts are somewhat same and are only eminent by promotional
activities.
3. Bargaining power of consumers - LowVending machine, convenience stores, food stores, restaurants, college
canteens and others are the key significant buyers for the beverage
industry.
Vending MachineIt provides commodities to the regulars in astraight line with a great deal no authority with the buyer
Food StoresThis buyer segment is combined with localsupermarkets and hypermarkets. It demands lower prices because it
gives paramount shelf space.
4. Bargaining power of suppliers - LowMajority of the raw materials enviable to manufacture beverages are basic
stuffs like sugar, flavour, colour and packaging. The suppliers have no
supremacy in bargaining over the pricing.
Large no. of important suppliersRaw material is easilyobtainable to every manufacturer and has low cost.
Switching Cost to the suppliers is very low; producers can easilyvary the suppliers.
Threat of forward integrationSince Hamdard is a wellestablished brand and has full-size manufacturing plants, bottling
system and a well-built distribution network; suppliers could not
afford losing such a well established network.
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5. Intensity of competitive rivalry - High Scope of CompetitionRoohAfza has dominated the market since
its evolution. But big players like Coke and Pepsi are also enteringthe health market which will give a good competition to RoohAfza
Degree of DifferentiationMarketing and Product differentiationhave become very significant. Where RoohAfza is selling mainly
due to its product quality, other brands are depending more on
marketing.
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Hypothesis
Hypothesis I:Level of health consciousness affects consumer decision making
process.
People are becoming health conscious which is being realised by otherplayers in the beverage and as a result they are tapping the potential
health market in the beverage market. Due to this, people are getting
more options such as tetra pack juices which can affect the sales of
RoohAfza
Hypothesis II: Customers with high level of product knowledge make
decisions based upon their predefined premises while customers with low level
of product knowledge make an overall assessment before making a decision.
While buying the product, if the person is a regular consumer and is wellaware of the product, the factors like taste and health are more important
to him as compared to the price.
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Methodology
Based on the above hypotheses, a 9-question survey was prepared which tested
each of the above hypotheses. The questionnaire was floated on e-mail and
social networking sites.
The simple random Sampling Method was considered for the study, which is
based on assumption that the respondents are randomly drawn from population.
The consumers would have consumed Roohafza and other beverages from most
brands available in India. The sample is random from these consumers.
Sample Size and Sample Description
The sample size of this study is the response to the questionnaire, and it consists
of:
259 responses from consumerscollected online
Collection of Data
The primary data is based on the objectives of the study. Survey method that is
questionnaire development and responses has been obtained by floating the
questionnaire to social networking websites and sending it to email ids of
known/potential customers.
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Survey Reports and Analysis
1. Consumption of RoohAfza by Age Group
As the major sample population were targeted by email and social networking
the pre dominant age group who took the survey consisted of people in theirearly twenties and secondly in their late twenties.
2. Awareness about the presence of RoohAfza
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This poll allowed us to test the awareness level of people with regards to the
presence of RoohAfza in the market and the results were in tune with
expectations and a large majority was highly aware as to the brand.
3. Beverage preferred as thirst quencher
Data obtained from this poll clearly showed a declining market share for
RoohAfza due to increased competition from juices. Even soft drinks are
catching up thus proving the need for RoohAfza to market itself more
aggressively as a healthier option.
4. How much does the below parameters influence the choice ofconsumption?
Status
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From this data it is amply proved that social status plays a negligible role when
taken into account as a factor for altering consumer behaviour.
Price
Again as the price of RoohAfza is moderate it is not the most important
constituent of the decision making process when consumer buying behaviour is
taken into account.
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Taste
The taste of RoohAfza is the defining characteristic of the brand and this can be
seen be seen from the results of thepoll where its taste is the most important
factor in the decision making process.
Health
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Due to seasonal nature of consumption of RoohAfza and also general
perception as a childrens drink the use is seen to be rare because our majority
sample size consists of people in their early twenties.
6. RoohAfza as an additive
This poll helped us to identify the preferences of consumers as to the mode of
consumption of RoohAfza thus displaying actual consumer behaviour and
choice.
7. Recall Value of Products
Again we see that RoohAfza enjoys a very strong connect with consumers and
it is comparable to other iconic products like Maggi, Parle-G, Bournvita and
Chyawanprash.
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8. Rating of packaging by consumers
From the data obtained we can conclude that the packaging of RoohAfza does
not affect the buying behaviour of consumers.
9. Frequency of Consumption of RoohAfza
The poll shows that a large proportion of the consumers like to consume
RoohAfza at home. This is quite evident as RoohAfza is not a ready-to-drink
beverage. An important thing to note is that there are a good proportion of
people to whom location does not matter showing the preference of the
consumer towards the product.
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Section III
(579 Words)
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STP Strategy1. Market Segmentation:
As far as market segmentation is concerned, RoohAfza is nottargeting a single segment. Rather, it is following a pattern of Full
Market Coverage. In this, a company tries to serve all customer
groups with all the products they might need.
2. Targeting RoohAfza focuses its market on joint families and middle class
people (upper and lower).
Since it is a healthy drink made out of natural ingredients, it can beconsumed by people of any age group.
RoohAfza comes in a standard packing of 700ml at a price ofRs105/-. Since it is an additive, so the overall consumption is far
greater in volume. Also, it is a long lasting product, so the price is
also justified and a middle class consumer will not find it difficult
to purchase.
3.
Positioning
RoohAfza came into existence around 40 years beforeindependence and is running successfully since then. It has
survived partition, licence raj, economic reforms, carbonated
drinks and tetra pack juices.
The positioning became strong because of the early moveradvantage RoohAfza has in the market
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.
Its image is stored in the minds of people to an extent that everyRED coloured sharbat is perceived as RoohAfza.Due to this, no
product is able to compete in this category. One of the examples is
Sharbat-E-Azam by Dabur.
It is one of its kind beverages in terms of its ingredients. It is madeup of natural ingredients and is a type of UNANI medicine. Hence,
people see it not only as a thirst quencher, but also as a healthy
drink having medicinal properties.
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Future Scope As per the survey, people prefer fruit juices as compared to RoohAfza to
quench their thirst. Even soft drinks are sharing an equal percentage as
the chosen product. This is a potential threat for RoohAfza as a product in
terms of market share. With the introduction of tetra packs, the market of
packaged juices has increased significantly which will be a good
competition in todays health conscious generation.To counter this, as a
future strategy, the company can come up with ready-to-drink
RoohAfza packing.
As per the survey, a large proportion of the consumers are aware of theproduct. Out of these, majority have considered health and taste as
important factors while making their choice of consuming a beverage.
Since Roohafza is having a good image in the market in both these
parameters, it is a good sign for the company. So, the company should
make taste and healthits agenda for marketing.
The survey also tested the recall power of consumers with respect tofamous brands like Maggi, Bournvita, Parle G and Chyawanprash. As per
the results, the recall value of Bournvita is quite high whereas all others
share more or less an equal percentage. This is a positive sign for the
company because RoohAfza so far is known for its product quality
rather than marketing strategy. So, if the product is able to maintain
an equal mind shareas of other products like Maggi (which rely heavily
on marketing), so an increase in the marketing strategy will increase the
market share of the product.
The company can give small recipe booklets attached with the bottle.With this, people will come to know about new uses of RoohAfza as an
additive. This will help in increasing the marketing as well as sales of the
product.
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ConclusionRoohAfza, the scarlet-hued refresher, has been going strong since 1902. The
product has survived the test of times on the power of its better product
proposition. We have chosen RoohAfza, the prime product of Hamdard, as our
project focus as we think that with marketing Roohafza can ride on the health
trend. RoohAfza has kept itself relevant on the basis of its thirst quenching
ability but with the proliferation of tetra-pack juices, colas, it might lose mind
share in the coming generations.
RoohAfza has to make it attractive to the health conscious people who do not
have time. In the survey, we have found that people give importance to health
and taste over price. Also, people prefer fruit juice over Roohafza. Thirdly, most
people prefer having RoohAfza at home but a substantial proportion does not
have any inhibitions in consuming RoohAfza outside also.
We propose RoohAfza to develop and promote a ready-to-drink option to theconsumers. With improvement in packaging technology, it is possible for it to
develop such a product. The places it can promote its product are the high
congregation points like stadiums, hospitals, etc. It should also market the
product for youth who are looking for healthier options.
With product innovation and increase impetus on marketing, RoohAfza can
become a market leader in health drinks.
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References
Marketing Management : Philip Kotler, 13thEdition www.hamdard.org Mint Lounge, 10thAugust 2012 www.wikipedia.com www.hamdardbd.com
http://www.hamdard.org/http://www.wikipedia.com/http://www.wikipedia.com/http://www.hamdard.org/