TASK 2: Product Introduction

Sooriya Products Rice Murukku

Until foreign forces invaded our fair isle, we were a nation second to none because we were
self sufficient in our staple food, rice. Rice was not only our staple food but was also the base
for many a short-eats and sweetmeats.
With the commencement of the foreign market forces, the degradation and regression of our
nation started with the introduction of imported rice in place of our own, wheat flour, and milkpowder of multi-nationals that made us mal-nourished and lethargic.
For example, many countries in the world, when they change their consumption from grain
into wheat flour in creating variety of foods, have eventually received the gift of malnourishment. This culture of using wheat flour for the consumption is implemented in the
countries where they grow wheat. But in other countries where there are another local grains
are used, a Wheat based Culture is a disaster. Likewise in Sri Lanka where surplus rice
production is in form, and where the main source of nourishment had been the Rice Based
Culture this WBC (i.e. wheat based culture) has knell the toll for the rise based products.
There are only a few nations that have an ample, staple food of their own. Even India
with its highly developed agric-industry, does not possess to have self-sufficiency in its staple
food. But we can proudly say we have a national, staple food and that is rice. At least twice a
day we consume rice. Rice is our main source of nourishment. Rice is our life. It is very high in
nutrition. It is healthy and builds up strength and vitality. It is environmentally friendly and
humane.
It is a national blessing that from recent times there is a trend to look up to our locally
manufactured products with respect and regard, in spite of people going for wheat flour
products as a fashion. Many a locals have now thoroughly understood the value and the
nourishment of the local rice products
Therefore, considering the present situation, there is a new trend being designed for fast foods
made out of rice flour in Sri Lanka. This is due to the growing demand for fast foods which are
very healthy since a person has got health conscious. Driven by this demand for Healthy Fast
Foods , many a companies have emerged to supply the growing need of the people with many
a Rice based products.
According to above situation, Sooriya Products have launched Rice Murukku which will
substitute wheat based unhealthy murukku which is now in the market. Sooriya Products is
made from 100% local rice flour. Therefore it was named Rice Murukku.This Sooriya Rice
Murukku is proven very healthy and it is even good for children and elderly. Ingredients used
for this product is 100% local and Sooriya company have uplifted the lives of many a local
farmers by purchasing their rice products directly without using a Middle Man.

Sooriya Product (Pvt) Ltd

Sooriya Product will produce manufacture, package and distributor of local food products.
Sooriya Product will be an Indigenous appreciates and environment-friendly company
dedicated on sustainable development and corporate social responsibility, as a service to
society and preservation of nature. Sooriya Product is going to make the best quality Rice
products from using the best local ingredients. Rice Products will go to make, with using
advanced technology and many different flavors for utmost customer satisfaction.
Sooriya Product headquarter will be situated in Katunayake.
Mission
To be a leading producer of fast food based on dedication to nature, corporate and process
Hygiene, dynamic leadership and commitment to our partners and stakeholders.
Vision
To be Sri Lankan Premier fast food Company, offering nutritious & superior quality tasting
foods to its consumers. By 2018 we aim to achieve 30% of Market Share, and while doing it
we would be the best in terms of consumer value, customer service, employee talent, and
consistent and predictable growth.

The strength of Sooriya products Rice Murukku

Present rice production in Sri Lanka is around 4.8 million M/T and this industry sustains about

880,000 farmer families.

Year round price-stability for local rice will be an incentive and assurance for our rice farmers

ameliorating their living standards.

Getting the general public use to eating rice-Murukku in place of more familiar wheat flour

Murukku will substantially reduce the import of wheat flour thereby saving foreign exchange.
One of the main reasons for diabetes, a major health hazard we Sri Lankans are facing today is

due mainly to the consumption of wheat flour.

It will be a revolutionary project to free us from the present servile economy.
At the same time it will be the beginning of a new food culture. (SS)

2.1 Do a micro and macro environment analysis for your product.

Macro Environment
Micro Environment
Economic Factors
Market
Social and Cultural Forces
Suppliers
Technology
Marketing Intermediaries
Demographic Factors
Competition
Political and Legal Forces
Table 2: Micro and Macro environment (by author)

Micro Environmental Analysis

Micro environment covers the internal factors which influence the operations of organizations.
"Sooriya products is influenced by its internal factors .The internal factors areSuppliers

Publics

Competitors

Intermediaries

Customers

Suppliers
"Sooriya products has own suppliers and its practices very close relationship with suppliers.
"Sooriya products divides its suppliers into two divisions who are called direct suppliers and
indirect suppliers. The indirect suppliers deliver the ingredients to the direct suppliers and the
direct suppliers produce the food for "Sooriya products. "Sooriya products understands the
importance of its suppliers and always co-operates with professional manners.
(aboutmcdonalds.com)
Competitors
As the local market is highly competitive, "Sooriya products has some strong competitors, for
example, wheat flour products, Harischandra foods and Raigam foods, etc. all competitors
have good brand image, remarkable market share, long business history and so on. In this
competitive situation, "Sooriya products needs to consider its competitors' power to ensure its
dominating position.

Customers
"Sooriya products is serving thousands of customers daily. All people are targeted as
customers by "Sooriya products. It serves foods for almost every kind of people. "Sooriya
products takes the customers as their first priority and tries to ensure maximum satisfaction.
The Public
The public includes the external groups who are interested and related with the company.
"Sooriya products works with considering the power and importance of different groups, for
instance, local government, financial community, Media, consumer group, farmers and so.
Intermediaries
As the business operation of fast food chain is different from other hospitality organizations
like a hotel or airlines or tour operators, the intermediaries are not required in this case. To
promote the business, promotional activities are normally done by the company and every
restaurant works at its distribution center.
Macro environmental analysis
Factors that affect the internal environment, Macro analysis is also known as PESTEL
analysis, which stands forPolitical factors

Technological factors

Economical factors

Social factors

Environmental factors

Legal Factors

Political factors
Political Consists of laws, government agencies and pressure groups that influence or limit
various organizations and individuals in a given society. (Kotler, 2012) The business operation
of an organization is always influenced by the policies of state and its government. Sooriya
Products Business is also under the control of a governments rules and regulations. The main
issue of controlling food business is health, and other issues are license, employee laws, and
tax issues, etc. Sooriya Products follows the local governments policies as well as foreign

investment policies on its franchise business strategy. Political instability of local state is also
affected Sooriya Products business.

Economical factors
Economical factors always come as a vital issue for business organizations. The local
economical condition is also responsible for affecting Sooriya Products operation. If the
local economy is critical, people are usually discouraged to spend more money for their fast
food. As a result, the company is affected.
Social Factors
The lifestyle of people is being changed and the demand of this change affects Sooriya
Products . The people of this modern urban society expect the highest level of service and all
the latest facilities from a hospitality organization. In addition, this changing demand is
different in society to society and country to country. For example, Muslim people avoid pork.
To fulfill the customers expectation, Sooriya Products needs to research the market and also
needs to provide an effective food menu.
Technological factors
New technologies create new products and new processes. Technology can reduce costs,
improve quality and lead to innovation. These developments can benefit consumers as well as
the organizations providing the products. (Oxford University Press, 2007) The impact of
technological innovation is also considerable to meet the customers expectation. As all
existing food chains for instance, Sooriya Products has to ensure the all technological access
to influence the customers. Modern and speedy distribution channels, easy and quick payment
facility.
Environmental Factors
There are minimum harmful elements effects from Sooriya Products .for example, food
packaging based on polystyrene.

Legal Factors
It is mandatory to follow some rules and procedures to run its operations. For example,
registrations, taxes, stuff laws, safety rules, etc. If every company maintains the legal process,
not only the company itself, but also every part of our society will be benefited. "Sooriya
products as a small food company, has to be responsible regarding legal issues.

2.2 Identify the segmentation criteria that can be used for your product
Market segmentation is mass selling, in which the vendor engages in the mass production, bulk
distribution, and mass promotion of one product for all buyers. It is thought that mass
marketing creates the largest potential market, which leads to lower prices, which in turn can
contribute to lower prices or higher gross profits. Simply, many critics point to the increasing
splintering of the marketplace, which creates this procedure difficult. Some claim that mass
marketing is dying. Most societies are turning to micro marketing at one of 4 points:
(1) Segment Marketing:
A market segment consists of a group of customers who partake in a standardized set of needs
and desires. The marketer does not produce the sections; his task is to identify the segments
and decide which one to target. The segment market offers key benefits over mass marketing.
The company can deliver better design, price, and deliver the product or service to satisfy the
target market.
(2) Niche Marketing:
A niche is a more narrowly defined customer group seeking a distinctive mix of benefits. An
attractive niche is characterized as follows:
a) The customer in the niche has a distinct set of needs.
b) They will pay a premium to a firm that best satisfies their needs.
c) The niche is not likely to attract other competitors.
d) The niche gains certain economies through specialization.
e) The niche has size, profit and growth potential.
(3) Local Marketing:

Target marketing is leading to a marketing program tailored to the needs and wants of local
customer groups. Local marketing reflects a growing trend called grass root marketing.
Marketing activities concentrate on getting as close and personally relevant to individual
customers as possible
A large part of local/grass root marketing is experiential marketing, which promotes a product
or service not just by communicating its features and benefits, but by also connecting it with
unique and interesting experiences. The idea is not to sell something, but to demonstrate how a
brand can enrich a customers life.

(4) Individual Marketing:

The ultimate level of segmentation leads to one-to-one marketing. Today, customers are taking
more individual initiative in determining what and how to buy they log on to the internet, look
up information, dialogue with suppliers/users/product critics, and sometimes design the
product they want.
Marketing segmentations
The marketing concept calls for understanding clients and meeting their needs better than the
competitor. But different clients have different needs, and it rarely is possible to fulfil all
customers by treating them alike.

Figure 1: Market_ Segmentation_ Diagram

Segmentation in the food market

Consumers differ widely in their particular needs, motivations or preferences and buying
capacity.
One supplier cannot provide one product suitable for the entire market. Alternatively, one
supplier cannot provide a wide enough range of products to suit each individual consumers
needs within the market. However, the consumer market can be segmented into groups who
share similar characteristics or purchasing needs. This allows suppliers to create different
products which would suit different consumer needs according to their: age, income, taste,
lifestyle, health or beliefs.
Currently three growth trends include health, convenience and indulgence.
Consumers will often buy products which meet all three needs during a shopping occasion
Other growth trends include consumer ethics.

Fair Trade

Animal Welfare

Sustainability

Provenance

Quality schemes

Indulgence for people

to treat themselves

Figure 2: Segmentation in the food market

Market Segmentation
Market segmentation is the process in marketing of dividing a market into distinct subsets
(segments) that behave in the same way or have similar needs

Variables Used for Segmentation

1) Geographic variables

2) Demographic variables

3) Psychographic variables

4) Behavioural variables
Below are the Market Segmentation Variables according to the New Sooriya Product can be
use.

Geographic variables
Geographic segmentation calls for dividing the market into different geographical units such as
nations, states, regions, counties, cities, or neighborhoods.

By leveraging the benefits of liberalization and integration of the markets of the world,

Will seek to serve both domestic and international customers.

Metropolitan Cities, major cities/towns of the Province.

Density of Area: Urban, Semi-urban, and Rural.

Climate: warm

Demographic
In demographic segmentation, the market is divided into groups on the basis of age and the
other variables in bellow points. One reason this is the most popular consumer segmentation
method is that consumer wants, preferences, and usage rates are often associated with
demographic variables. Another reason is that demographic variables are easier to measure.

Age all age group

Gender Both Male and Female

Family size - doesnt matter

Education - doesnt matter

Income middle & hi end consumer

Occupation doesnt matter

nationality/race doesnt matter

language - doesnt matter

Psychographic
Psychographic segmentation groups customers according to their lifestyle. Activities, interests,
and opinions (AIO) surveys are one tool for measuring lifestyle. Some psychographic variables
include.

Personality

No

Lifestyle

Yes

Value

Yes

Attitude

Yes

Behavioural segmentation
In behavioural segmentation, buyers are divided into groups on the basis of their knowledge of,
attitude toward, use of, or response to a product. Many marketers believe that behavioural
variables occasions, benefits, user status, usage rate, loyalty status, buyer-readiness stage, and
attitudeare the best starting points for constructing market segments. Behavioural
segmentation is based on actual customer behaviour toward products. Some Behavioural
variables include

benefit sought

product usage rate

brand loyalty

profitability

income status

Niche market
Some product lines are not sold in large quantities, but are considered financially viable as they
fill a special gap or niche in the market.
A niche market is not created, but identified by segmenting the market into groups of
consumers with a specialised need or want which can be identified by monitoring consumer
purchasing or demand.
Sometimes the opportunity arises for a retailer to increase margins by developing a new range.
A recent trend where consumers are developing a greater interest in the way products and
packaging are made, has led to many manufacturers responding by producing organic or farm
assured ranges of food products.
Example is Sooriya Products target groups are nationalist group and health conscious people.

2.3 Explain about your target market using different targeting strategies.
Once the firm has identified its market-segment opportunities it has to decide how many and
which one to target. Marketers are increasingly combining several variables in an effort to
identify smaller, better-defined target groups.
Effective segmentation criteria: Not all segmentation schemes are useful. Market segments
must rate favourably on 5 key criteria:
(1) Measurable: the size, purchasing power, and characteristics of the segments can be
measured.
(2) Substantial: the segments are large and profitable enough to serve.
(3) Accessible: the segments can be effectively reached and served.
(4) Differentiable: the segments are conceptually distinguishable and respond differently to
different situations.
(5) Actionable: effective programs can be formulated for attracting and serving the segments.
Justify why you have selected that strategy:
In evaluating different market segments, the firm must look at two factors:
(1) The segments overall attractiveness. (2) The companys objectives and resources.
First, the firm must ask whether a potential segment has the characteristics that make it
generally attractive, such as size, growth, profitability, scale economies, and low risk.
Second, the firm must consider whether investing in the segment makes sense given the firms
objectives and resources.

Single-Segment Concentration
Many companies concentrate on a single segment. Through concentrated marketing, the firm
gains a thorough understanding of the segments needs and achieves a strong market presence.
Furthermore, the firm enjoys operating economies by specializing its production, distribution,
and promotion; if it attains segment leadership, it can earn a high return on its investment.
However, concentrated marketing involves higher than normal risks if the segment turns sour
because of changes in buying patterns or new competition. For these reasons, many companies
prefer to operate in more than one segment.

Selective Specialization
Here the companies selects a number of segments, each objectively attractive and appropriate.
There may be little or no synergy among the segments, but each segment promises to be a
money maker. This multi-segment coverage strategy has the advantage of diversifying the
firms risk.
Product Specialization
Another approach is to specialize in making a certain product for several segments. Through a
product specialization strategy, the firm builds a strong reputation in the specific product area.
The downside risk is that the product may be supplanted by an entirely new technology.
Market Specialization
With market specialization, the firm concentrates on serving many needs of a particular
customer group. For example, you might be supplying all types of sporting goods to sporting
goods stores (e.g. soccer, tennis, snowboards, etc.). The firm gains a strong reputation in
serving this customer group and becomes a channel for further products that the customer
group could use. However, the downside risk is that the customer group may have its budgets
cut.
Full Market Coverage
Here a firm attempts to serve all customer groups with all of the products they might need.
Only very large firms can undertake a full market coverage strategy. Examples include IBM
(computer market), General Motors (vehicle market), and Coca-Cola (drink market). Large
firms can cover a whole market in two broad ways: through undifferentiated marketing or
differentiated marketing.

According to the abode strategy Sooriya product mostly related with Product
Specialization
Sooriya product is to specialize in making a certain product for several segments. For
example, a Sooriya product distributor might sell Rice Murukku to a retail store chain, to a
number of Hotels, Bits shops, and even direct to the end consumer (through an online store).

Reasons for Sooriya product

Food is an essential aspect for maintaining life. Rice in particular provides many nutrients
essential for life. In Sri Lanka 99% use this for day to day life.
The purpose for developing new Rice Murukku products could be due to:

A gap in the market, e.g. which will substitute wheat based unhealthy murukku which is now in

the market
New consumer pressures, e.g. economic crisis
Drop in customer loyalty or loss of market share
New ideas or technology
An emerging consumer demand, e.g. indigenous products, health or indulgence.

2.4 Demonstrate the buyer behaviour for your new product and how buyer behaviour can
affect your activities.
A consumers buying behaviour is also influenced by social factors that include small groups,
families, social roles and status. (Kotler, 2012)
Groups can influence a purchase by means of opinion giving by word of mouth or online social
networks. Family Buying Behaviour refers to how the target market decides to make a
purchase, choose among items and identifying what influences their purchases
There are four characteristics affecting consumer buying behaviour:
1. Cultural Factors
Culture is the most basic cause of a persons wants and behaviour. (Kotler, 2012) Sooriya
product has identified which Factors are in demand to the present generations choice. Foods
are everywhere; People who are and will be interested in local and good healthy products are
inevitably many in number
2. Social Factors
Members strongly affect the consumer behaviour. Recent times there is a trend to look up to
our locally manufactured products with respect and regard, increasing number of Patriotism
people
3. Personal Factors
Philip Kotler identifies personal characteristics such as age and life-cycle stage, economic
situation, and personality and self-concept that influence a buyers decision. In Recent times
Increasing health consciousness and need for convenience healthy food.
4. Psychological Factors

The psychological factor affecting buying behaviour is furthermore subdivided into four major
psychological factors:
* Motivation a motive or drive is a need that is sufficiently pressing to direct the person to
seek satisfaction. (Kotler, 2012)
* Perception the process by which people select, organize and interpret information to form a
meaningful picture in the world. (Kotler, 2012)
Marketers need to exert an extra effort to attract customers by delivering advertising messages,
affect how they already believe, and make the customers remember them on top of other
competing brands.
* Learning Individual experience tend to affect how a person act through learning.
The diagram below shows the buyer behaviour applied in different buying situations of
customers

Figure 3: Maslows Hierarchy

2.5 Identify how you can position your product.

The marketing mix helps to define the marketing elements for successfully positioning market
offer.
One of the best known models is the 4Ps of Marketing, which helps to define marketing
options in terms of product, place, price and promotion. Use the model when you are planning
a new venture, or evaluating an existing offer, to optimize the impact with your target market

Figure 4 the marketing mix

Positioning involves identifying a set of differentiating competitive advantages and choosing
the right competitive advantages among these. The company must build its own position in the
market that will last longer by creating differentiation among other competitors. It has to make
an impact that can make it stand out in the market.

Sooriya Products offers local food manufacturer that separates it from other potential
competitors.

Good healthy Rice products and impact to its target market A gap in the market, e.g. wheat
flour food products

New ideas

An emerging consumer demand, e.g. indigenous products, health or indulgence

The 4Ps are:
o Product (or Service).
o Place.
o Price.
o Promotion.
Product: - Rice Murukku is a Fast food its made by 100% Local Rice flour which will be
produced and marketed by the Sooriya Products Ltd. Brand Name is Rice Murukku.
However, customers requirements change over time. In order to meet these changes, Different
taste (hot, sweet, chicken.) Different shapes and Different size.
Product Life Cycle
Our product lies in an Introduction Period of PLC
o Low sales
o Higher costs per customer
o Negative profits
o Innovator customers
o Few competitors
o Objective: To create awareness of the product
o

Offer a basic product

Price at cost-plus

Selective distribution

Awareness dealers and early adopters

Induce trial via heavy sales promotion

Figure 5: Product Life Cycle

Place: - Place, as an element of the marketing mix, is not just about the physical location or
distribution points for products. It encompasses the management of a range of processes
involved in bringing products to the end consumer.
o

Sooriya Products they used outsourcing rice flour for their products .Then they
manufacture and packaging of Rice Murukku, under Sooriya Products brand.

o Use red and white rice flour for the product.

o Rice flour would be purchased from local farmers
o

Mode of Transport: Road Transport

Price: - The customers perception of value is an important determinant of the price charged.
Customers draw their own mental picture of what a product is worth. A product is more than a
physical item; it also has psychological connotations for the customer. The danger of using,
low price as a marketing tool is that the customer may feel that quality is being compromised.
It is important when deciding on the price to be fully aware of the brand and its integrity.

o As a newcomer Rice Murukku pricing strategy is to introduce our products in the

market at lower prices so as to create huge demand in the market and then compete
with other competitors.
o As we come up in the demand, we will increase our prices and will provide more
efficient and affordable Rice Products.

Penetration Pricing
o Our product will be lying on penetration strategy with high quality & low price
o For introducing new product
o Price low to capture market share
o

Expect to make profit in volume

Figure 6: Pricing strategy

Promotion :- The promotions aspect of the marketing mix covers all types of marketing
communications One of the methods employed is advertising, Advertising is conducted on TV,
radio, in cinema, online, using poster sites and in the press for example in newspapers and
magazines. Other promotional methods include sales promotions, point of sale display,
merchandising, direct mail, loyalty schemes, door drops, etc.

The skill in marketing communications is to develop a campaign which uses several of

these methods in a way that provides the most effective results. For example, TV
advertising makes people aware of a food item and press advertising provides more detail.
This may be supported by in-store promotions to get people to try the product and a
collectable promotional device to encourage them to keep on buying the item.

Sooriya Products mainly focus is on nationalist group and health conscious people,
We can Increase nationalist advertising by using TV and Radio Commercial.

At Sooriya Products the prime focus is on targeting children. In happy meals too which
are targeted at children small toys are given along with the product.

As we are in the Introduction phase, our objective is to create brand awareness through
Informative Advertising.

Use of Print Media, Radio Advertisement, Hoardings in Public Spots, Sample Distribution,
Organizing Events, TV Commercial etc.

Tie Up with major Cinema halls to promote our products during Intervals.

In-film advertising, in its most effective form, is about a brand being a part of the cinema's
content

Web Marketing:

Social Networking: In order to reach out to the TA and ensure that they feel more
connected with the brand it is necessary to start making conversation.
By using face book and twitter we can create a community and Fan page

Figure 7: Promotion through PLC