Thandaaaaa®

UNITED COLORS OF CHILLER

TOWN

Marketing Plan
For

THANDAAAAAAAAAA®

Salman Jaka
Nojeba Haider
Zeeshan Bakar
Sumayra Ashfaq Khan
MBA III (Executive)

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ACKNOWLEDGEMENT

Firstly, we would like to thank Almighty God for giving us the strength and
courage to accomplish the entire task. And the will power and patience in
making this product launch and report possible

Developing this marketing plan was a tedious job for all the group
member and we could not have accomplish this without the help and
support of our friends, family, and other colleagues. We would also like to
thank our marketing teacher Ms. Salma Mirza who guided us in making
this report. We are grateful for her support.

We hope that this report meet the expectations that we were ask to
adhere to.

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EXECUTIVE SUMMARY

UNITED COLORS OF CHILLER TOWN is a company that Focuses on making and

selling frozen desert items. The first of it’s kind being THANDAAAAAAAAAA®
which is a gola ganda. Our target market comprises of the students of IBA who
are mostly “Expereincers” and are fond of fun activities especially those involving
food. We have also analyzed the situational factors relevant to our product and
conducted consumer research to analyze the preferences and awareness of our
target audience about gola ganda.

We have segmented our market using different segmenting variables like

lifestyle, benefits sought, user status etc. We have hired a supplier from
Dhoraji(a place famous for gola ganda). The pricing strategy that we are using is
markup pricing (66% markup on sales). Our consumers will perceive
THANDAAAAAAAAAA® as a value product because they will not only get high
quality and taste as a nominal price but the also a chance to enjoy and have fun
with friends.

The product will be launched at IBA City campus for only two days on 22nd and
23rd of October 2003. The sales target is 200 units in two days and we have to
sell only 32 units to break even because the cost that we are incurring is fixed
cost.

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TABLE OF CONTENT

UNITED COLORS OF CHILLER TOWN....................1

THANDAAAAAAAAAA®...................................................................................................1

ACKNOWLEDGEMENT...............................................2
EXECUTIVE SUMMARY..............................................3
INTRODUCTION............................................................6
MISSION STATEMENT.................................................. 7
GOALS................................................... ...........................7
MARKETING OBJECTIVE...........................................8
SITUATIONAL FACTORS.............................................9
LAUNCH DATE.................................... ...........................9
SALES TARGET.................................... ..........................9
MARKET STRUCTURE...............................................10
SEGMENTING VARIABLES.......................................11
PATTERN FOR SEGMENTATION.............................13
TARGET SEGMENT....................................... ..............13
COMPETITIVE ANALYSIS.........................................14
PORTER’S COMPETITIVE FORCES.......................15
PRODUCT POSITIONING..................................... ......16
STAGES IN PRODUCT DEVELOPMENT.................17
PRODUCT LIFE CYCLE.............................................19
CONSUMER ANALYSIS..............................................20

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FINAL DECISION.........................................................24
PRODUCT......................................................................25
PROMOTION.......................................................... .......27
PLACEMENT.......................................................... .......30
PRICING........................................................... ..............33
PRICING OBJECTIVES......................................................................................................33
DETERMINE DEMAND.....................................................................................................33
ESTIMATING COST:...........................................................................................................34
ANALYZES COMPETITORS COSTS, PRICE, AND OFFERS:.......................................35

FINANCIAL ANALYSIS...............................................36
PERFORMA INCOME STATEMENT...................................................................................................36
SALES ..............................................................................................................................36
COST OF GOOD SOLD................................................................................................................36
OTHER EXPENSES......................................................................................................................36
BREAK-EVEN ANALYSIS.............................................................................................................37
PROJECTED PROFIT AND LOSS STATEMENT AT DIFFERENT SALES UNIT.............................................39

SALES IN UNITS 100 200 300 400...................39

SELLING PRICE PER UNIT 15 15 15 15......................................................................39
TOTAL SALES IN DOLLAR 1500 3000 4500 6000....................................................................39
LESS: VARIABLE COST (800) (1600) (2400) (3200)............................................39

CONTRIBUTION MARGIN 700 1400 2100 2800. .39

NET PROFIT ON SALES 482 1182 1882 2582. .39
ACTION PROGRAM....................................................40

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INTRODUCTION

THANDAAAAAAAAAA® is the brand name that we have chosen for our product since
“thand” not only is synonymous to “chill” but this is a very frequently used word due to
its colloquial meanings by the young generation that’s our main target. The product
comprises of ice, colored flavored juices. Toppings (condensed milk, coconut, pineapple)
will also be used to add value and attraction to the product.

The launch of THANDAAAAAAAAAA® Gola Ganda is planned to be a two day event at the
IBA premises that will be start on Wednesday, Oct.22nd, 2003. The launch dates have
been strategically chosen, 7 days before Ramadan. We believe that our target market-
IBA students especially would want to hang out the café in the afternoon and enjoy with
their friends as much as they can before Ramadan because the café closes then.

Through market research, it has been identified that there is a demand for a fun food like
THANDAAAAAAAAAA® at IBA where presently no frozen dessert item is available. Based
on this, we aim to make THANDAAAAAAAAAA® talk of the town at IBA with heavy
promotional campaign that will start at least 8 days before the launch.

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MISSION STATEMENT

“We will endeavor to provide full customer satisfaction by

offering them a high quality frozen dessert (GOLA GANDA) that
they will enjoy. We want their experience to be a memorable
one.”

GOALS

LONG TERM GOALS:

Although there are number of vendors selling Gola Ganda, but it is being
sold without any proper marketing or promotional strategies. SnoBiz is the
only franchise operating in Karachi with proper backing. Therefore we see
a lot of potential in the market- base on this we plan to launch
THANDAAAAAAAAAA® all over Karachi. We intend to do that in mobile
vehicles that will travel all over Karachi (like Mela restaurant). The vehicle
will be very trendy and colorful hence attracting customer. The product
sold will be of high quality.

SHORT TERM GOAL:

A successful launch at IBA is our immediate goal, after which we intend to
convenience the cafeteria owner to start selling THANDAAAAAAAAAA®
officially at the Café. Since the café owner will get the idea from the
product and us at a cheaper rate as well we’ll be partner in profit.

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MARKETING OBJECTIVE

The core objective is to deliver a good quality frozen dessert to our target market at
nominal price.

FINANCIAL OBJECTIVE
From financial point of view our main concern is the fixed cost that we will incur due to
promotional activities (flyers as teasers etc, posters, shop decorations etc) and logistic.
The variable cost because is dependent on the amount of units sold which is equivalent to
60% of sales revenue.

Our prime concern is to sell off around 50 cups of Gola’s because it will enable us to
recover the fixed cost incurred by us. Any units sold in addition to this will lead to the
profits. We are expecting to sell more than hundred per day.

CONTRACT DETAIL
We have hired a professional gola gonda maker who has a shop at Dhoraji- an area that
is very famous for gola ganda all over Karachi because of it’s quality and taste.

The contract that has been finalized is that they will get the money based on the number
of units sold in two days on a markup that will be charged by him from. There is no
commitment that we will have to pay for certain units whether it’s sold or not. We just
have to pay fare of the logistic that will be used by him.

REASON FOR HIRING

We hired the person from Dhoraji to make the gola ganda because they are very reliable
in terms of quality and commitment, so there is less chance that any of our customers
gets sick by eating our product. Health consciousness is on the rise therefore we want
our product to be of superior quality, besides, we believe it is unethical to sell anything
that can harm the customer’s health in any way.

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SITUATIONAL FACTORS
Following are the situational factors that have been considered for our product launch:

CLIMATE
Now a day the climate is very hot and people want to consume food that will help them
to chill in this scorching heat hence, giving them a soothing feeling. So we think it’s the
right time for us to launch our product because the climatic conditions are absolutely in
favor of launching a product like gola ganda that is an ideal frozen dessert.

SEASONAL
The seasonal factor that is of concern for us is the arrival of the month of Ramadan.
Ramadan is expected to start from 28th of October and will probably end by 27th of
November so we have to launch our product before that time in order to attain all the
targets that we have set for us. Besides, as mentioned before, we believe that people
tend to get inclined to hang around with their pals in the afternoon more before Ramadan
since they know that once the season starts they won’t be able to enjoy their afternoons
since most people would be fasting.

LAUNCH DATE

Considering the above-mentioned situational factor we have decided to launch our

product on 22nd of October- that is, around five or six days ahead of Ramadan season.
The product will be made available for two days only.

SALES TARGET

Considering the above-mentioned situational factors, we have set a target of selling

around 200 units in 2 days. We can end up with good profits if we meet our sales target
because we need to sell just 50 units to break even.

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MARKET STRUCTURE
Institute of Business Administration right now is running following programs,

• Executive program
• CCS Program.
• Morning Program.
• Evening Program

These programs are conducted at two different campuses. The BBA (Morning) and MBA
(Morning) programs at the main campus located at Karachi University. The rest of the
programs are conducted at the City Campus located on Garden road.

TOTAL MARKET SIZE

The total number of students studying in six different programs at two different
campuses are 1600 hundred approximately.

MARKET SPLIT
The graph below shows the market split that we are targeting:

600
600 550

500 450

400
300
200
100
0
Executive CCS Morning
program Program

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SEGMENTING VARIABLES
We have considered following variables to segment the market,

Occupation
The market that we have selected comprises of students belonging from educated
noble families.

Economic
All the students of the IBA are more or less from the same economic background
because most of them belong from the upper middle class.

Life style
Market that we analyzing comprised of Experiencers. People who are young,
energetic and like to spend money on food, entertainment and other such activities.

Benefits sought
Benefit sought by majority of the consumers is quality because they all are literate
and health conscious people. Because of this expectation of our consumers, we decided
to hire supplier from Dhoraji since they carry high credibility.

Buyer Readiness:
Almost all of consumers are aware of what gola ganda and have been told via
flyers, WOM about it being launched at IBA shortly so they are aware and to an extent
ready to try it out.

User Status
All of our consumers i.e. our target market – are our potential customers since
most of them have already tried goal ganda several times, but still we have a few who
have either heard of gola ganda but not tried it or even those who have heard the word
“gola ganda” for the first time at IBA under our brand name THANDAAAAAAAAAA®”.

Campus
The consumers are split in two campuses of IBA- main campus located at KU and
the other one is City Campus situated at Garden Road. On the day of our launch there is
a seminar at the city campus in which attendance is compulsory for all MBA students

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therefore we are expecting all MBA students from morning campus at our venue. This
way we can cater to all students of IBA no matter what campus, they belong to.

Attitude
Considering the climatic condition, we expect to have favorable response from
customers towards THANDAAAAAAAAAA®. Besides, gola ganda is a fun food and Ibians
are very fond of fun & novelty. THANDAAAAAAAAAA® is definitely a unique & exciting
product.

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PATTERN FOR SEGMENTATION

After analyzing the above-mentioned variables, the market exhibits the homogenous
preference because the consumers have conformity in more or less every aspect that we
have identified and analyzed. This is based on a survey that was conducted by us
throughout the campus by questionnaires (sample attached in appendix) and one-to one
chats with the students.

TARGET SEGMENT
As mentioned earlier that the market has homogenous preference but facing time and
resource constraints we have to segment the market. The variable that we used to
segment the market is the IBA campus.

The campus that we have decided to target is city campus because of the following
factors,

MEASURABLE
It is quiet easy for us to conduct the research and estimate potential customers, their
wants and their expectations from THANDAAAAAAAAAA®.

SUSTAINABLE
There are more students at City Campus as compare to University campus, so there is
chance for us to meet our sales target or exceed it and end up making high profits.
Besides, as mentioned before, we are expecting most of the students of the morning
campus to be present at our venue due to a compulsory seminar.

ACCESSIBLE
The students at city campus are in our reach and we can easily carry out all the
arrangements required to sell product that might be difficult for us to do at main campus
since, we have more familiarity at the city campus.

ACTIONABLE
We can carry out all the promotional activities that we have planned to do at this
campus. We need the support of our classmates and other colleagues to carry out the

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promotional activities that we have planned. We can get that support easily at this
campus.

COMPETITIVE ANALYSIS
Companies usually face two types of competition,
• Direct Competition
• Indirect Competition.
Our product doesn’t have any direct competitor at campus because no body else is
launching a frozen dessert that offers the same value or features that we offer. However,
we do have indirect competitors.

INDIRECT COMPETITORS
We have following indirect competitors,
• Soft drink sold at the canteen.
• Launch of Food item (sweet n sour chicken/rice, chola chaat) by our classmates
on nearly the same dates.
• Launch of Food Item

A group of students from our class is launching a Chinese food from 20 th until 25th
October at IBA canteen.

TYPE OF COMPETITION
We are facing Budget Competition from our competitors because we will have to fight
for the same customer money. The students who are our target market have limited
amount of pocket money therefore, they will have to choose on which product to spend
since they are being bombarded by a variety of products in the entire month of October
due to the marketing project (product launch). Whichever product they feel is the best
and offers them most value for their money will obviously win.

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PORTER’S COMPETITIVE FORCES

Following competitive forces are applicable to our project,

BARGAINING POWER OF SUPPLIER:

The first force that we encounter was the supplier power because we had to bring some
one from Dhoraji because of quality. They wanted us to pay them for 200 units of Gola’
each day either it’s sold or not but we managed to convince them by stating that it’s an
institute where large number of students are studying and they will not have to make
efforts to make sales.

BARGAINING POWER OF CUSTOMER:

The bargaining power of customers is high because of the indirect competitors available.
We expecting fierce competition by Soft drink and it’s available at Rs.10 so after
conducting research we have decided to sell our product at Rs.15 because most of our
customers are ready to pay this amount (as surveyed).

THREATS OF NEW ENTRANTS:

It’s quiet possible that any other group might plan it’s launch at the same date so in
order to create a sort of barrier for new entrants we have designed a very effective and
aggressive promotional campaign through which we will create hype for our product in
the target market and this will arouse interest and excitement (flyers sample attached in
appendix)

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PRODUCT POSITIONING

We are using the benefit positioning strategy to gain distinctive position in the minds of
the consumer and to pull customers towards our product because we will aggressively
promote the product by using different appeals.

REASON FOR BENEFIT POSITIONING:

We are using benefit Positioning strategy because the purpose of the launch is not just to
supply gola ganda but also to take time out of their hectic schedule and have fun and
enjoyment with their classmates and institute colleagues.
• We using this Promotion Strategy because the Products that have short PLC needs
to promote it’s self as a fun activity to allure large chunk of the target segment to
meet targets.

• Because students at IBA have hectic study schedule and sometimes when they
get tired of their tedious lives, they look for any fun activity at the campus where
they can enjoy with their classmates. It’s very profitable for us to promote this
aspect of our product because it will enable us to entice large number of
customers and we can easily meet our set targets and will end up earning
substantial profit.

• The price that we charging for our product is very affordable to customers as
compare to the benefits delivered to them. They will get more ingredients in
products that they wouldn’t get at that price in the market and more over the fun
and enjoyment.

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STAGES IN PRODUCT DEVELOPMENT

Usually companies follow seven stages while developing new product but all those seven
steps are no applicable to our product because the product that we opted for already
exist in the market and we just have to check whether it will be feasible and profitable to
launch this product at IBA.

We follow the following product development stages,

• IDEA GENERATION:
When the project was assigned, we thought of three different ideas including this
one. To generate the ideas we conducted group brainstorming and interact with
other people to figure out the products that have been launched so far at the
campus.

• IDEA SCREENING:
Our aim was to launch such a product that has never been launched before at IBA
and doesn’t require lots of capital investment. Among three ideas Gola Ganda was
the only that has never been launched at IBA and it required the less capital
investment than other ideas we had.

• CONCEPT TESTING:
To check whether the idea we have opted is attractive to others as well, we share
that idea with our classmates and other friends at IBA and they all found it very
attractive. The reason for finding it attractive is Gola Ganda is not readily available
outside like ice cream so many who like to have Gola Ganda can’t eat it facing this
constraint.

• BUSINESS ANALYSIS:
In business analysis, we figure out how much it will cost to us, the amount that
we need to spend on our promotional activity the price at which we can sell it at
the campus and the profit that we end up with. After analyzing all aspects we find
out it’s profitable to go for this project.

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• COMMERCIALIZATION:
We have designed an effective promotional strategy to launch our product as a fun
product. The product will be launched 22nd of October. We will create a curiosity
by first informing Class representative of different classes to choose a color for
their class on 22nd October and then flyers were placed and distributed
everywhere at IBA.

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PRODUCT LIFE CYCLE

Our product is being launched at IBA for just two days so it has very short Life cycle. It is
expected that the consumers will accept it with zeal because of the limited time
availability and the lack of availability outside.

INTRODUCTION:
The product has only one flavor. The objective in this phase is to create awareness of the
product and trial but it’s not feasible for us to generate trial because we can’t go for
sampling, so our main concern is to create awareness. The introduction phase of our
product will start as we start the promotional campaign of the product and here we will
incur the cost to carry out the promotional activity.

GROWTH:
Our product will enter it’s growth stage as it will be made available to the customers
because our customer are young and gets attracted to such products very easily. Here
target customers would be early majority. We expect high sales, which will lead to high
profits.

MATURITY:
Our product will enter it’s maturity next day of it’s launch and most of the sales in this
phase will be due to repeat purchases made by only satisfied customers and those who
don’t get hold of it outside. The customers would be late majority and laggards. Laggards
would be the people who are health conscious and might not try product first day but
they will hear good things about the product from their friends they might try it out.

DECLINE:
Our product will be divested next day of our campaign but if we get the expected
response we have plan to continue it for one more day.

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CONSUMER ANALYSIS

To analyze the target market we conducted a research.

RESEARCH OBJECTIVE
Finding out the perception of the consumers about the Gola Ganda.

INFORMATION NEEDS
o To check awareness of the consumers.
o People who have tried it before.
o Topping they would prefer to have.
o Price willing to pay.

DATA COLLECTION METHOD:

We used the survey method to gather desired information from the target audience and
the data collection instrument that we using is questionnaire.

SAMPLING CONSIDERATIONS

Population:
All the students at city campus including male and female belonging from different
programs conducted at this campus.

Sampling Size:
We are going to target 50 students to carry out this study.

Sampling Method:
The sampling method that we have used is non-probability method means we will get out
questionnaire filled on the convenience basis from the prescribed number of respondent.

FINDINGS

• Awareness:
Out of the total sample size all of them have heard of the Gola Ganda.

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• Trial
Out of the total target respondent only 60 had tried it before where, as 40 have
never try it before, as shown below:

First time
60% user
50%
Eatens
40%
before
30%
20%
10%
0% S1
First time user
Eatens before

First time user Eatens before

Series1 60% 40%

• Taste
Those who have tried the product before following like the taste because of the
color and condensed milk, as shown below:

100.00%

80.00% 83.33%

60.00%

40.00%

20.00% 16.67%

0.00% S1
Like taste Don't like taste

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• Trial Location:
Market size assumed to be 90 equivalents to 100%.

50% 50%

40%

30% 30%

20% 20%

10%

0% S1
Moblie Dhorajee Snow bizz
vendor

• Toppings Preferred:
All the audience opted to have a topping on the Gola Ganda but the Kind of Topping
they marked varies,

80%

60%
80%
40%

20%
8% 12%
S1
0%
Fruit w ith Coconut Jelly and fruits chocolate syrup
w ith fruits

Out of 90
72 opt for fruit and coconut topping=72\90=80%
8 opt for jelly and fruits=8\90

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Chocolate syrup with fruit=10\90

• Pricing:

100.00% 100% 100%

98.00%
96.00%
94.00%
92.00%
90.27%
90.00%
88.00%
86.00%
84.00%
S1
Rs15 For
Rs.15 For
Fruit and Rs.20 For
coconut
Coconut jelly and
and
fruit
chocolate
syrup

Out of 72 for Fruit and coconut topping 65 opt for Rs.15=90.27%

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FINAL DECISION

• Market Potential:
Out of 100, 40 has never tried so it will be an opportunity for them to try and those
who have tried it before 50 of them like the product so the market potential is 90%.

120%

100% 100%
90%
80%

60%
50%
40% 40%
20%
10%
0%
Total First time RePurchaser Don't Like Market
respondent user Potential

• Topping Selection:
Out of the 100 respondents 80 opt for fruits and coconut so we decided to use
that toping on our Gola Ganda.

• Pricing:
72 Respondents opt for fruit and coconut and 65 are willing to pay Rs.15 and
7 respondents marked forRs.20. So based on the finding we decided to
charge Rs.15 for the Gola and those who willing to pay premium price for
product will also purchase the product.

• Demand for product:

Out 90 who like Gola ganda 72 respondents opt for Fruit and coconut topping
and and 65 are willing to pay Rs.15 and 7 respondents are willing to pay Rs.

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20. So based on this finding the estimated demand of our product is 80% of
total market potential.

PRODUCT

GENERAL ELECTRIC MATRIX

ATTRACTIVENESS:
We decided to launch this product because there is a huge market for it seasonal
conditions are absolutely in favor no direct competitor and we incurring less cost to
launch the product.

STRENGTHS:
There is great awareness of the product in the market and many people who have not
get chance to try the Gola before. We are offering best quality Gola to the consumers and
can capture the huge share of the market.

LEVEL OF PRODUCT:
The core product that we are offering to the consumer is the thanda and tasty Gola
Ganda. The actual product includes the value that is being offered to our consumers in
the form of topping because the Gola with the topping offered by us is available in the
market at higher price.

QUALITY:
We have promised to deliver good value product as well as fun to our consumers. To
deliver good value product we have hired a supplier from place renowned for Gola Ganda,
which is Dhora jee, and for fun we have planned to hold color day at the campus.

FEATURES:

Our product has the following features,

 Quality ice being used.
 Condensed Milk

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 Pine apple and coconut topping.
 Different colors that are used in the Gola Ganda.

BRAND NAME:
Rather using the generic name, we have used a brand name for the Gola Ganda by
keeping in view the positioning and feature of the product. The Brand name is,

“THANDAAAAAAAAAA®”

REASON?
We selected this brand name due to following reasons.

 THANDAAAAAAAAAA® gives impression of something relaxing and fun.

 This brand name will be easier to remember because the students are using the word
“thand marr yaarr” frequently which means “have fun or relax”
 This word is highlighting the main ingredient of our product, which is ice.

BRANDING STRATEGY:
The brand name that we using is not being used by any one selling outside as far our
information is concerned, so it is an original name that is owned by UNITED COLOR OF
CHILLER TOWN which is our company.
We are using the new brand name strategy because this brand name has been kept,
keeping in mind our positioning (beat the heat) and target market (young IBAIAN).

PACKAGING:
Our product has only primary package, which is the plastic cup that contains 250 ml of
ice and the plastic spoon as well.

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PROMOTION
We have tried to use humor in all our promotional methods-since our product itself is
very colorful and in a way funny due to it’s novelty. Therefore, even the brand name that
we have chosen THANDAAAAAAAAAA® sounds humorous because of the “desi” touch
although our company name is very sophisticated “UNITED COLORS OF CHILLER TOWN”
(inspired by Benetton).

PROMOTIONAL OBJECTIVE:
The objective of our promotion is,
 Create awareness about THANDAAAAAAAAAA®.
 Create curiosity among consumers.
 Arouse interest in the Product.
 Visibility and promotion of Point Of sales.

PROMOTIONAL TOOL
To achieve above-mentioned objective we are using the most effective promotional tool,
which is advertising.

ADVERTISING OBJECTIVE:
The objective is to inform consumers about the features of the product, the emotional
value that we are selling in order to create primary demand of our product.

COMMUNICATION METHOD:
We here are using non-personal communication method in order to promote our product.
We have created such atmosphere that will create curiosity and interest among
consumers about the product through catchy promotional themes and other activity that
we have planned.

MEDIA:
The media we have selected to communicate to our consumers is print media because no
other media is feasible or can be used.

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STRATEGY:
In order to achieve our goals, we are using the following to create hype and market our
product:
 Teasers:
To create curiosity of the product among consumers, we designed teasers with
three different themes but all focusing on “THANDAAAAAAAAAA®” which is the
brand name. This will create a lot of excitement and hype about the product with
everyone thinking-“what is thanda?” .The teasers will launched two days ahead of
the actual promo flyer. They will say stuff like:

• “LICENSED TO CHILL!!”

• “REDEFINING cooooooooooool..!”

• “Pyaar ka naya funda…!!”

flyers are attached in appendix.

THEMATIC:
On Monday two days a head of the launch of product we publicized the thematic
promo/ad of our product that contains the information about launch like date,
place and product features.

COLOR DAY:
We have also communicated with the Class Representatives of different classes in
order to hold color day on 22nd of October, which is the launch day of our product.
The class representatives have been told to select a color for their class and
inform us. The purpose here is to make it a fun activity for our consumers and
that how their interest can be aroused in the product.

REACH:
To ensure that all of our target consumers must see out teasers and thematic ads
once we placed our ads on all notice boards, on cafeteria and the railings in the
corridors.

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ADVERTISING POSITIONING STATEMENT:

“Beat The Heat”

POINT OF SALES PROMOTION:

To promote our point of sale we have decided to use posters and will decorate the
cafeteria with buntings, ribbons and balloons to create the atmosphere of fun and
enjoyment. We also plan to hold bells in our hands and ring them to attract people
to the café on the day of the launch when THANDAAAAAAAAAA® is actually being
sold. This will also act as a reminder to most people that it’s time to “beat the
heat”-as our APS says.

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PLACEMENT

Once a product or service has been made and priced it has to be made available to
customers, in such a way that customers have easy access to the product. It includes
company or firm activities, which make the product or service available to its target
customers. For this a proper location has to be selected as well as a proper channel.
The decision of a proper location for our product is very critical, since it has to be in an
area in IBA which is noticable and easily accesible.

LOCATION:
We have decided that the location for our product launch will be the IBA cafeteria on the
executive side. We have taken permission from the cafeteria owner, to allow us to use a
separate portion of the canteen, as we will need place for placement of the ice crushing
machine, as well as promotion for THANDAAAAAAAAAA®.

We have selected the cafeteria because:

• Most people who come to the cafeteria come for the purpose of eating, and since
gola ganda is food item, we will directly hit the target market.

• The cafeteria is also more of a social gathering area after college hours, so it will
capture the attention of the majority of students who normally hang around with their
friends at the café.

• Since our target market is not only the executive side but also the CCS side, this is
the ideal location, because the CCS canteen closes after regular college hours and
even the BCS and MIS students use the executive cafeteria.

• The cafeteria allows us the required space we need for making, promoting, and
selling the product.

COVERAGE:
Gola Ganda is a product, which is not just limited to the younger generation. It’s coolness
especially in the hot scorching weather of Karachi appeals to people of all ages and

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classes. Our main target market wills be the students of IBA, but also teachers and
faculty members, as well as our college chowkidars and peons. since the product is
priced quite low, it will be affordable for everyone.

We will not only target the executive students but also students of BCS and MIS. We
have therefore decided that the cafeteria is the best location as all students mostly come
there after class hours, since the CCS canteen closes at that time.

CHANNEL:
A channel is a set of interdependent organization or people involved in the process of
making a product available for use or consumption by the consumer or business user. In
most cases a channel is when the manufacturer supplies to the wholesaler, who buys
from the manufacturer in bulk primarily for the purpose of resale or further production.
The wholesaler then sells to the retailer, who basically supplies and makes the product
available to the final end user for ultimate consumption.
In our case of Gola Gandas, we will be buying directly from the manufacturer that is the
Dhoraji Gola Ganda person, and supplying to the IBA students, who are the end
consumers. Therefore we will be playing the role of a middleman, who brings the
manufacturer and consumers together. So we are basically playing the role of a retailer.

MANUFACTUR MIDDLEMAN FINAL

ER (RETAILER) CONSUM
ER

TRANSPORTATION:
For the purpose of making a product or service available to its consumers, the product
has to be transported from the area of production to the area of distribution.
In our case of Gola Gandas, the manufacturer has agreed to come to IBA himself, and
will bring along the machinery and required raw materials such as ice, and food colours.
The cost of transportation has already been included in the per unit cost we will be
paying to the Gola Ganda person.We will therefore have to undertake no responsibility for
transportation.

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INVENTORY:
Since Gola Ganda is a product made of ice, and will melt if made before, it will be made
at that time in IBA only. It will not be made before, and kept in the form of inventory, as
it is something, which appeals only to the taste buds if it’s made fresh. The Gola Ganda
person will be providing us with the ice, toppings, as well as food colours, and nothing
will be stored overnight in the cafeteria.

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PRICING

Pricing is one of the major tools that can be used to overcome competition in the market.
It has an impact on the variable contribution margin of a product and, thus, is a major
influence on profitability. Price is one of the tools that will help us to meet our objectives
as they have a sufficient margin to incur expenses on marketing and promotional
activities.

We made a contract with our supplier, that he is going to manufactures and supplies us
the product on per unit basis at the cost of Rs. 8 per unit, thus we use Markup Pricing
Method to set our selling price i.e. Rs. 15, by which we earn 46.67 % markup on sales.

We are also using Value Pricing Strategy as giving our customer same high-quality
product which is available in the market at Rs. 20, i.e. charging low price on high-quality
offering. Before reaching to this price we consider following factors, which will help us to
provide competitive advantage:

PRICING OBJECTIVES
As our product life cycle is only two days, so our main objective is achieve maximum
current profit, cash flow or rate of return on Investment (ROI). After analyzing
our target market, we position our product as fun, and relaxation tool for our product
consumers, thus we are expecting a very high demand of our product.

Competitive advantage is another objective that we considered before setting this

price because as our product is for short period of time (i.e. two days), we need to setup
the price that not only help us to gain maximum short-term profit but also capture large
market in a very short time.

DETERMINE DEMAND
The general relationship between price and demand are inversely related, but there are
many price sensitivities, which make buyer less sensitive to the product price, thus
changing relationship between price and demand positively/directly related. Gola Ganda
gives their customer two types price sensitivity:

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UNIQUE-VALUE EFFECT:
As Gola Ganda will be launch for the very first time in IBA, thus our target market the
product is unique and distinctive so they are fewer prices sensitive. It also provides our
target market one of the unique ways to get relaxes, cool and entertains themselves
after the hectic schedule of their studies.

PRICE-QUALITY EFFECT:
As mention earlier that we are offering high-quality product on less price, this not only
give us an advantage on our competitors but also make our target customer less price
sensitive to our offers.

ESTIMATING COST:
Demand sets ceiling on a price of a product and costs set the floor. Price is set in a way
that covers cost of producing, distributing, and selling the product, including a fair return
for its effort and risk. Cost on product is divided into main forms:

VARIABLE COST:
These costs tend to be constant per unit produced. As mention earlier we received the
final product on per unit basis (i.e. Rs.8) from our supplier, which include Rs. 3 per unit
profit earn by our supplier. Other variable cost includes:
• Ice cost Rs 1 per unit.
• Disposable spoon and glass costs Rs. 1.25 per unit
• Comelle cost Rs. 1.5 per unit
• Other flavors cost Rs. 1.25 per unit.

Fixed Cost: are the costs that do not vary with the production or sales revenue. Our
fixed cost is sub-divided into three parts: Promotion cost, supplies cost and value-added
material cost.

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ANALYZES COMPETITORS COSTS, PRICE, AND OFFERS:

We can categorize our competitors in to two distinct classes.

DIRECT COMPETITORS:
Includes Gola Ganda available at Dhuraji. Our brand has two competitive advantages
over this competitor. First, Gola with added pineapple and coconut topping is Rs.20 and
we are offering the same product in less pricing (i.e. Rs.15); second we are
providing/supplies the product to our target market in comparison with our competitor,
also we are focusing very niche market, which is the part of the market of competitor so
it is easy to capture the market.

INDIRECT COMPETITORS:
Includes sweet n sour chicken/rice, chola chaat launch from 20th of Oct 2003. As this
brand also doing the promotion of their product to the same target market, and prices is
nearly equal what we charge for our product, this may affect our market share.

Another indirect competitors is Cold Drink available in the IBA city campus, provide three
different flavor each cost Rs.9 per bottle. But positioning the product, as symbol of fun
and coolness is an offer, which makes our product as premium and provides opportunity
to charge more than the competitor.

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FINANCIAL ANALYSIS

Performa Income Statement

Sales
Estimated Unit Sold 200
Selling price per unit Rs. 15
Estimated Total Sales in dollars Rs. 3000

Cost of Good Sold

Estimated Unit Sold 200
Cost price per unit
Ice 1.00
Spoon and Glass 1.25
Comelle 1.50
Other Flavors 1.25

*Profit 3.00

Rs. 8
Estimated Total CoGS in dollars (1600)

Total Gross Margin Rs. 1400

Other Expenses
Value-Added Material
Pineapple Rs. 66

Supplies
Stamp 20
Coupon Book 32

Advertising and Promotion Cost

Flyers 55
Charts 45
Total other expenses (218)

Net Profit Rs. 1182

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Break-Even Analysis

Break-even units = ___ Total Fixed Cost___________

Selling price – Variable Cost per unit

Break-even units = ___218___ = 218

15 - 8 7

Break-even units = 32 units

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Break-Even Analysis

3000
2500
2000
Net Proft

1500
1000
500
0
-500 0 100 200 300 400
32
Sales Units

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Projected Profit and Loss Statement At Different Sales Unit

Sales in units 100 200 300 400

Selling price per unit 15 15 15 15
Total Sales in dollar 1500 3000 4500 6000

Less: Variable Cost (800) (1600) (2400) (3200)

Contribution Margin 700 1400 2100 2800

Less: Total Fixed Cost (218) (218) (218) (218)

Net Profit on Sales 482 1182 1882 2582

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ACTION PROGRAM

The group members have been assigned responsibilities for the launch of Thanda
Gola GANDA on the 22nd and 23rd October 2003 from 12:50p.m-2: 30p.m. The
teams are as follows:
• Logistics: Supplier himself is responsible for the logistic and will bring the
equipment and the ingredients along him.

• Selling: Zeeshan and Salman will be responsible for selling and cash handling.

• Promotion: Sumayra Ashfaq and Nojeba will handle the advertising and
publicity programs for the launch of Thanda Gola Ganda from the 17 th October
2003.

The promotional campaign shall include the following:

DATE CAMPAIGN
th
17 Teasers with three different themes.
18th The distribution and pasting of three
different teasers.
20th Full Thematic ad highlighting the fun and
chill the students will get.
21st Classes Representatives will be contacted
to confirm the color for their class on
launch day.
nd
22 Launch of the product.

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