Stick

NURP
UR
STICK
OBUT
TER
TERM
PROJECT

You dont need time

anymore

Asadullah Zubair
1511291
Sara Amin
1511200
Ishraq Ahmed
1511293
Usman Waseem
1418244

NURPUR STICK OBUTTER

TABLE OF CONTENT
ACKNOWLEDGMENT................................................................................................... 4
EXECUTIVE SUMMARY................................................................................................. 5
INTRODUCTION........................................................................................................... 6
BUSINESS SCOPE........................................................................................................ 7
CURRENT MARKET SITUATION.................................................................................... 7
MARKETING PLAN....................................................................................................... 8
Market Description.................................................................................................. 8
Benefits & Product Feature...................................................................................... 8
Product Review........................................................................................................ 9
Competitive Review................................................................................................. 9
Distribution Review............................................................................................... 10
SWOT ANALYSIS........................................................................................................ 11
Strengths............................................................................................................... 11
Weakness.............................................................................................................. 12
Opportunity........................................................................................................... 12
Threats.................................................................................................................. 12
OBJECTIVES & ISSUES OF......................................................................................... 13
STICK O BUTTER...................................................................................................... 13
OBJECTIVES........................................................................................................... 13
ISSUES................................................................................................................... 14
MARKETING STRATEGY............................................................................................. 15
SEGMENTATION..................................................................................................... 15
Geographic Segmentation.................................................................................. 15
Demographic Segmentation...............................................................................16
Psychographic Segmentation............................................................................. 16
Behavior Segmentation...................................................................................... 16
TARGET MARKET.................................................................................................... 16
POSITIONING......................................................................................................... 17
MARKETING MIX ELEMENTS................................................................................... 19
Product............................................................................................................... 19
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Price................................................................................................................... 21
Promotion........................................................................................................... 21
Place.................................................................................................................. 22
MARKETING COMMUNICATION...............................................................................23
MARKET RESEARCH............................................................................................... 23
MARKETING ORGANIZATION.................................................................................. 25
BUDGET................................................................................................................. 27
Budgets are divided into different categories are as follows:...................................................27
CONTROLS............................................................................................................. 29
CONCLUSION............................................................................................................ 30
BIBLIOGRAPHY.......................................................................................................... 31
APPENDICES............................................................................................................. 32
Appendix 01.......................................................................................................... 32

NURPUR STICK OBUTTER

ACKNOWLEDGMENT
We are pleased to submit this report regarding the launch of our new product that
is the STICK O BUTTER. This report is the combined effort of our group
members who took keen interest in this task of making the report a success.
We are really grateful to our faculty Sir Mazhar Ali who helped us in building our
marketing concepts with great effort without which we would not be able to
accomplish this task.

NURPUR STICK OBUTTER

EXECUTIVE SUMMARY
Fauji Group Foods is among the major and fastest growing conglomerates in Pakistan that caters
to local needs with products in compliance to global standards. Many of its products include
Nurpur, Nurpur Lite, Nurpur cream, Nurpur Flavored Milk etc. To this portfolio, we are now
introducing a butter called Stick o Butter which will be an all purpose butter used mainly by
the housewives for cooking and greasing purposes and for working men and women who are in
a hurry and need a Stick breakfast. The product will be launched in all the major cities of
Pakistan. Stick o Butter will be of a small size with a stylish design and an effective roller
which will be easy to use. . The product is portable and can be used anywhere easily. Not only
this it is safe to use for children and the use of knife can be harmful for them. Also it will be
cheaper in price so it can be afforded by all. And also, housewives can easily use this roller for
greasing purposes such as for baking, making sauces etc without any difficulty of scoping out
the butter then melting it. Its major competitors will include Blue band, Olpers, Meadowlea and
Mumtaz. Taking all the opportunities into consideration we can diversify into new markets, as
we can launch cheese and jam tubes as new product which will ensure more benefits and more
choice to customers to choose from and allow us to maintain user loyalty as well. As our main
weakness is the early expiry date we can diversify our product category to jam and cheese which
can be kept for a longer period of time also this opportunity will provide something new to our
consumers. Our target market consists of those consumers who want to achieve success in their
lives and do not have time to do healthy breakfast. Other than the working men and women, we
will even target students of schools and universities as they leave in a hurry without doing their
breakfast. Housewives will also be targeted as butter is consumed on a daily basis and with
Stick o Butter they can cook easily without wasting time looking for a butter knife. Stick o
Butter will follow the cost plus pricing strategy. Due to the introductory period in the Stick o
Butters life cycle, it made a loss in the first year of operation due to higher cost of production
and advertising and promotion costs. Excessive advertising and promotion was needed for the
butter to become known among the customers. Later, in the second and the third year as the
consumers are aware of the product, Stick o Butter now starts to make profit due to increased
sales revenue. The idea of launching Stick o Butter will be a success as it is quite different from
its competitors. When a new product is launched with a lot of promotions, people are curious to
try the product. We have tried our best to keep the consumer preferences in mind and the type of
quality and taste they are wanting. Hence, if they find good natural taste in a small stick which is
affordable and easy to use then they would definitely buy the product. Therefore, Stick o Butter
is the best choice

NURPUR STICK OBUTTER

INTRODUCTION
Fauji Group Foods is among the major and fastest growing conglomerates in Pakistan that caters
to local needs with products in compliance to global standards. Whether it is their thick, creamy
all-purpose milk, scrumptious ice-cream high on nutrition content or refreshing range of fruity
beverages, the approach remains largely the same as to strive to keep product innovation at the
forefront of guiding philosophy and consumer satisfaction at the heart of the operational
strategy.
The product portfolio of Fauji Group is as follows:

Nurpur Butter
Nurpur Lite
Nurpur Flavored Milk
Whole Pasteurized Milk
UHT Milk

To this portfolio, we are now introducing a butter called Stick o Butter which will be an allpurpose butter used mainly by the housewives for cooking and greasing purposes and for
working men and women who are in a hurry and need a Stick breakfast( to butter bread) Why?
Container butter needs to be softened first in order to spread it on bread. But for the kids who do
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NURPUR STICK OBUTTER

not like the natural sour/salty flavor of Stick o Butter, we have also come up with different
variants for the children by putting a touch of essence of the flavors like strawberry, vanilla and
mango so that kids enjoy a healthy breakfast.

BUSINESS SCOPE
The product was launched in all major cities of Pakistan in its initial launch and later it is
launched at National level.
A product which is easy to use with a new design and shape is always welcomed by the targeted
customers. The targeted class of Stick o Butter is middle class to upper class. Working men
and women and kids are the main target market of this product. These targeted customers will be
the regular users of this product which will maintain a good loyalty level.

CURRENT MARKET
SITUATION
Stick o Butter will face fierce competition by both direct and formed competition. Direct
competitors are Olpers, Mumtaz and Meadowlea. The major indirect competition is given by
Blue band.

NURPUR STICK OBUTTER

MARKETING PLAN
Market Description
Pakistani market consists of customers who are very choosy on having breakfast due to urgency
as for children who wake up late and business class who are indulged in work having no time for
breakfast. For them this Stick o Butter plays a vital role as it provides with an easy to use roller
which not only saves time but is portable so that these customers can not miss out on the
healthiest time of the meal. As for the children different variants have been introduced in flavors
like strawberry, vanilla and mango.

Benefits & Product Feature

Breakfast is that time of the meal that provides people with an instant boost as it is not only
healthy but also sharpness the mind to work productively and effectively. For this purpose our
product entails various features and benefit which will allow the users to never miss out on the
most important meal which can result in a perfect day
Product features include:
1. Stylish design
2. Small size
3. An effective roller for easy use
Considering these features of the product entails plenty of benefits, like it saves time for
students or business people who are busy with their schedule. The product is portable and
can be used anywhere easily. Not only this it is safe to use for children and the use of knife
can be harmful for them. Also it will be cheaper in price so it can be afforded by all. And
also, housewives can easily use this roller for greasing purposes such as for baking, making
sauces etc without any difficulty of scoping out the butter then melting it.

NURPUR STICK OBUTTER

Product Review
Our product will have following features:
1. It will have a light body.
2. As our target market is common people going to offices, schools or universities, our
product will be affordable and easily available.
3. Portable; can be taken anywhere for example if a person is going to his/her office and is
in a hurry, he/she can carry the roller butter along with the bread.
4. Perfect for lathering up a piece of bread or toast without dirtying a knife.
5. Easy to dispose.
Usually people have this misconception that if butter and margarine are kept at normal
room temperature for a little while that is for at least half an hour, it loses its quality that
is they think butter or margarine is not worth using.
Stick o Butter can survive at room temperature for at least four to five hours, although it
will soften but it will not deteriorate.

NURPUR STICK OBUTTER

Competitive Review
Market Share

Blue Band
Entire Butter Market

Blue band:
Blue band has been launched under Unilever in Pakistan more than 20 years ago. It has
given tough competition to various butter/margarine brands and is popular among many
families.

Olpers:
Olpers is a local brand which gives a tough competition. There promotion strategies are
mostly concentrated on through grand advertisements for all their products and uses
heavy promotional marketing.

Mumtaz:
Its an international brand originated from Arabia. It does not promote its products in
Pakistan.

Adams:
Meadowlea targets the upper class with high prices. It is positioned as a family brand.
However, this product is not promoted in Pakistan, only BTL activities are done.
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Distribution Review
The distribution for Stick o Butter will be done by the same company as Nurpur, which is
owned by Fauji Group itself. The distribution is divided in 2 phases which will benefit and go
along with our promotions, advertisements and increasing awareness as well. Distribution will
start off from the major cities of Karachi and Lahore and then penetrate into the whole country
within the same month

SWOT ANALYSIS

Strengths

Saves time
Safe and easy to use for children
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Portable
Value for money
Affordable
Easily available
Competitive advantage
Stylish
Can be used in snack breaks

Weakness

High cost of promotion and advertisement

New, product risk involve
On a normal room temperature, Stick o Butter can survive for four to five hours.
Early expiry

Opportunity

Diversification in new market

Launch of new categories
Expansion, giving rise to export

Threats

Poor condition factors

Easily copied
Competitors (Olpers, Meadowlea, Mumtazetc)

SO (Strength and Opportunities)

Taking all the opportunities into consideration we can diversify into new markets, as we can
launch cheese and jam tubes as new product which will ensure more benefits and more choice to
customers to choose from and allow us to maintain user loyalty as well.

ST (strength and threat)

As it can be easily copied by other competitors so we can include other features such as change
of packaging, design and also our price will be lower to ensure higher market share. Another

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threat can be the poor conditions i.e. if the product does not gain awareness, for that careful
analysis will be done and feedback will be taken.

WO (weakness opportunities)
As our main weakness is the early expiry date we can diversify our product category to jam and
cheese which can be kept for a longer period of time also this opportunity will provide
something new to our consumers.

OBJECTIVES & ISSUES OF

STICK O BUTTER
OBJECTIVES
FIRST YEAR

Our main objective is to provide our customers with a portable roller which allows them
to have breakfast even in the busiest schedule of their lives.

As the product will be new, our objective would be to use advertisement and promotion
strategies to ensure that everyone is aware of what the product is and what it entails.

Many other promotional activities will be conducted that will result in higher sales. Also,
it will help us in covering our costs.

Our objectives after the launch include attracting customers, changing consumers
perception and making this product a brand.

SECOND YEAR
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During the 2nd year as the product might gain popularity and awareness, we will try to
maintain the cost of advertisement and promote and induce better changes in the product
by changing its design.

To maintain the consistency of the sales we will focus on attracting other users who are
currently unaware of Stick o Butter.

THIRD YEAR

As our product gains popularity, we will come up with more and new useful products for
our customers.

Our objective in this year is to achieve a higher level of sales which would not only
cover our cost but also result in more profits.

ISSUES

These objectives will be a lot difficult to achieve if the marketing department fails to
promote and advertise the product to the optimum level. If the first year objectives are
not met than it will be approximately impossible to get through with the second year
objectives.

Another issue is that it might create a hindrance in achieving our objectives due to the
threat of new entrants in the market. As there is no rocket science involved in the
production of Stick o Butter, this idea can be easily copied by other firms in the market
which will create competition in the market.

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MARKETING STRATEGY
SEGMENTATION
Segmentation Variables

Data

Geographic
World region
Country
Cities
Density

Asia
Pakistan
All major cities of Pakistan
Urban

Demographics
Age
Gender
Family size
Family Life Cycle
Income
Education

7 and above
Male, Female
1-2, 3-4,5+
Married, Unmarried
Rs 15000 above
Schools,
colleges,
universities

Psychographic
Social Class
Life style

Middle class, upper class

Achievers, survivors, strivers

Behavioural
Benefits
Occasion

Easy to use , user friendly ,

saves time , good quality
Regular occasion
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Geographic Segmentation
On the basis of geographic segmentation, our product will be segmented all over
Pakistan which mainly in the urban areas of many cities such as Karachi, Lahore,
Islamabad etc

Demographic Segmentation
On the basis of demographic, Stick o Butter will be segmented according to:
1.
2.
3.
4.

Age (7 and above)

Gender (male and female)
Income (15000+)
Education (school ,college and university)

Psychographic Segmentation
On the basis of psychographic segmentation Stick o Butter will segmented mainly in the
middle class and upper class. And not only that, it will target those students and
achievers (working class) who are very busy in their lives and work hard to maintain
consistency in their performance and increase the social status.

Behavior Segmentation
Benefit sought:
The following are the benefits of our product Stick O Butter
1.
2.
3.
4.
5.

Easy to use
Time saving that ensures good health
Safe to use for children
Good quality
Portable

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TARGET MARKET
Our target market consists of those consumers who want to achieve success in their lives and do
not have time to do healthy breakfast. They are so busy with their routine that they do not get
time to sit and eat their breakfast. With Stick o butter they do not have to miss out such an
important meal. Other than the working men and women, we will even target students of schools
and universities as they leave in a hurry without doing their breakfast. Housewives will also be
targeted as butter is consumed on a daily basis and with Stick o Butter they can cook easily
without wasting time looking for a butter knife.

POSITIONING
Positioning is done on three main bases:
1)
2)
3)
4)

Features
Benefits
Point of difference with competitor
Emotional

Features
Our feature of using a butter stick is the new one and we get an upper hand on our competitors
over this, although it will be tough to break their market. Our feature is basically providing them
time saving and that will help people as everyone has busy schedules nowadays. People who
tend to travel cannot carry crockery or a box of butter with them, and then comes our product to
help. Our feature becomes our benefit, Stick o Butter provides the rich taste, health and above
all, time saving. Via our campaigns and promotions, we create awareness and the idea is to stay
in the minds of our potential users now

Benefits to the Target consumers

Primarily our target consumers would be working men and women and school /college going
students. The product is positioned as delivering the benefit of healthy breakfast which will keep
everybody healthy and energetic.
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Point of Difference with the Competitors

The USP of Stick o Butter is that it has been designed in such a way that the butter is available
in a stick form and the consumers do not have to waste time looking for knives. Instead they can
directly spread the butter from the stick on the bread and enjoy.

Emotional
The USP of Nurpur is Nurpur se Zindagi Bharpur. The tag line has a very positive impact on
the Nurpurs Image because of the emotions involved in it. Emotional aspect comes as our
product is for achievers. Achievers seem to have less time for everything and negligence comes
over with moving pace and short time so we provide the nutrition, a product to help their meal
and overcoming negligence.
By this and of course our strong campaigns that Fauji Group is well known for, we will be able
to position ourselves in the minds of our potential consumers.

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MARKETING MIX ELEMENTS

Product
Nurpur is launching this product in order to get a competitive advantage. The product life cycle
of Stick o Butter is below:

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INTRODUCTION STAGE:
Introduction stage is the stage where the product is launched in the market .At this stage our
costs will be high as for Nurpur it is a completely new product. The Pricing strategy that will be
used is cost plus pricing. Promotions will be done in order to create awareness among the
consumers. It will be done through advertisements on television in between cooking shows,
Morning shows etc and in cooking magazines. It will be advertised through billboards as well

GROWTH STAGE:
Growth stage is the stage where the sales are increasing because of an increase in demand. In the
growth stage our sales will increase due to an increase in the demand for Stick OButter. Pricing
Strategy would remain the same. Promotions will be done in order to keep the consumers aware.
Informative Advertisements would be used so that the consumers know what product they are
buying and how hygienic it is. Persuasive advertisements would be used too in order to
persuade the consumers to buy the product.

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MATURITY STAGE:
At the maturity stage we will come to our peak and our product will become cash cow from star.
We will try to provide more features in our product like giving 25% extra, Buy 1 get 1 free,
Complimentary gifts on higher purchase. We will also introduce different sizes of Stick o
Butter. In order to maximize our market share we will do reminder advertisements which can be
once in a month or two months

Decline Stage:
In the Decline stage the product loses its credibility and importance due to various reasons like:
1. Not concentrating on modification
2. Too much competition
3. No extension strategies
4. Losses in between the maturity and the decline stage
In order to stay in the market Nurpur will make innovations like new flavors, different
packaging etc.

Price
Fauji Group uses Premium pricing strategy, reason being they produce premium quality product
and premium positioning of the product. The price also differentiates Fauji Group from its
competitors. They provide a level, premium products in a price lower than international ones and
slightly higher than local ones. They also require constant monitoring as the competitor may
change their price to get an edge.
Fauji Group uses 2 types of strategies; Cost plus pricing and Value based pricing.
For Stick o Butter, cost plus pricing is used, where the market markup is calculated with the
demand and if costs return with revenue, production is done at larger scale, this is to avoid major
losses or any loss at all.
For 50g stick: PKR 65/For 100g stick: PKR 110/2
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Promotion

At the launch of our product ,heavy promotions will be done through Print media which
includes Newspaper and magazines , Electronic media which includes radio and
television , Digital media which includes internet , social networking and social media
sites and lastly Outdoor media which includes banner ads , OOH (out of home) .

BTL activities will be done in retail stores where heavy sales are expected. Our trained
sales personnel deployed at retail stores will create awareness among people about the
strengths of our product. Display units and shop front activities will be carried out in
major parts of the city.

A unique promotional campaign will be launched in Ramadan. Through advertisements

we will convey the message of saving time in Ramadan especially during Iftaar and
Sehri timings. Time management in Ramadan is a problematic issue. Stick o butter will
be a perfect fit in these situations.

During the initial six months of our product launch, we will give our customers a 10%
discount coupons on their next purchase. At the same time, several extra coupons will be
given to them to give to friends and families as people enjoy discounts.

We will promote our product through cross promotion. As Nurpur milk is already doing
well in the market, we will cross promote it with Stick o butter. Initially, a free sample of
Stick o butter will be given to the customer on the purchase of each Nurpur milk. After
six months a discount of 20% will be given to the customer on buying Stick o butter if
the customer also purchases Nurpur milk.

Through sponsoring in the cooking shows we will promote our product.

When selling our product our sales persons will be instructed to offer customers some
extra flyers and brochures of Stick o butter to give to their friends and families so that
our product can also be promoted through word of mouth.

During our promotional activities we will set up an awareness campaign regarding the
dangerous effects of using margarine.(Pharmaceutical, 2011)

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Place
The distribution for Stick o Butter will be done by the same company as Nurpur, which is Fauji
Group itself. The distribution is divided in 2 phases which will benefit and go along with our
promotions, advertisements and increasing awareness as well. Distribution will start off from the
major cities of Karachi and Lahore and then penetrate into the whole country within the same
month.
Phase 1: The product will be distributed in the segment market. In this phase, the sales person
will keep the product on shelf, if not possible, give the credit for 3 days. For major stores and
centers, we provide them a claimable discount.
Phase 2: We start off with promotions and according to the responses of our target market we
will enhance by providing the product to niches and small stores too and increase or maintain
our credibility in the market.

MARKETING COMMUNICATION
Our communication strategy focuses on the goal providing healthy breakfast efficiently. For
this we will promote our campaigns in different areas and in morning shows so that people can
witness how effective Stick o butter is.
We will provide heavy promotion and ad campaign to make sure that people indulge in our
product and never forget to have breakfast and also in their casual or snack times.
We will use direct as well as indirect communication strategy, Direct by making sales at the
moment and getting feedback. Indirect in a way through advertisement campaign and billboards
using emotional appeals showing health issues due to skipping breakfast.
Advertising will be basically done on different channels such as Geo, Hum TV, and Nickelodeon
as nick targets young children mostly student age 9-13 and Geo and Hum TV will be used to
target the working class and students age 15-25 who watch dramas and cooking shows.

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MARKET RESEARCH
Marketing research is a very important aspect when launching a new product. There are various
risks associated when a company decides to diversify into a new market which it was not
catering before. Each step must be calculated and thought, thus the role of research and
development is necessary. The research kicked off secondary data that was available as Fauji
Group has had research done for previous products; they had the knowhow, but needed a step
above for Stick o Butter. They tried to uncover the level of complexity in such a decision and
the level of success. But that being not enough needed primary data collection.
First of all started off with the preference of the consumers, if they wanted butter or margarine.
For now, they market they cater to is more aware of the difference between the two, they didnt
need to highlight it but simply ask them. This was done via research teams who created surveys
nation-wide and decision was taken on the level of majority that people went with butter as they
think of it as more healthy and pure than processing of margarines.
As the heads of Fauji Group Foods thought of bringing innovation to their products or the new
product they were launching, research was to be conducted as well on that part. The core
research for this started off with observations. We started with the working class as we cater to
the upper class and with a survey conducted as well, most of the answers came in on how the
skipped breakfast in the morning due to lack of time as they are in a hurry. With the working
class, we conducted a research for students as well, ranging from age 10 and above that they
skipped breakfast as well due to lack of time and an interesting result came forward that mothers
often dont allow their children to use knives in any way. We picked up this point immediately
and conducted further research as well.
Our research also went on about the health concerns as people have a healthier approach to life
now, especially the market we are catering to so keeping the product healthy and making them
aware is also a task ahead for the production and campaign.
The basic findings coming from our research was that people look for a healthy start to a day in
less time as for because of their busy lives and daily schedules. Since breakfast is a need and
they need something to help them out, we now have to work towards to meet the need and serve
them as well as capture the market and excel further as a part of Fauji Group Foods.
The basic tools used were surveys and online communication, observation. The information
collected was passed on as for a response for Fauji Group to start making butter, but the
information collected for innovation and in general for negligence of breakfast over time leads
to creation of butter on stick, a rolling device that helps and works as a spread and is very easy
to use and much faster than to use a butter knife and defrosting the butter, etc.
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As the research processed and Stick o Butter came into existence, its sample was to be tested
severely over testing groups as feedback matters and amendments could be made before the
official launch and campaign designs be made accordingly. Samples were prepared and used on
tested groups of audience to get a feedback. We used it on working women, men and students,
age bracket from 10 to 15. We did not reveal the firm or entire product, it was just butter on
rolling stick and the response was mostly positive as they considered the best factor of time
saving, it saves time and gives a rich taste of butter and the packaging is able to store the butter
in its form, not melting it, so the product was good to go with a good feedback.

MARKETING ORGANIZATION
Marketing organization is a group of marketing persons brought together to make decisions on
marketing areas like product, price, place, and promotion. Marketing organization is the
foundation of effective sales planning for systematic execution of plans and policies. Marketing
organization provides a system of relationships among various marketing functions to be
performed by proper coordination among marketing persons.
Marketers must have knowledge of what type of marketing organization they have in place; and
what type of marketing organization the company actually needs.
Following are the types of the marketing organization:

Functional Type of Marketing Organization

Product Oriented Marketing Organization
Market/Territory Oriented Marketing Organization
Customer Oriented Marketing Organization

Functional type of marketing organization

In this the different marketing activities are grouped on the basis of functions to be performed
like - product planning, market research, advertising, sales, or promotion. Each main function is
further divided to sub-functions to be performed to achieve marketing objectives. Each sub
function is managed by separate manager under the control of marketing manager

Product oriented marketing organization

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Common where organization is producing or marketing wide variety of products. For each
product or group of products a separate product manager is assigned and made responsible for
marketing
decisions
for
that
particular
product
or
group
of
products.

Market oriented marketing organization

This type of organization is common in big organizations serving large number of customers
spreading over large territories. Depot manager, district manager, area manager, zonal manager,
divisional manager, etc., are assigned to manage each territory.

Customer oriented marketing organization

It is common in organizations engaged in providing specialized services to different class of
customer.

Stick o butter will be using Functional type of marketing organization where everybody will be
assigned to different duties.

BUDGET
Budgets are divided into different categories are as follows:

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Sales Budget:
This forecast is for Stick o Butter of 50 gm and the price is Rs. 55.

Cartons (50 units)

100,000
150,000
200,000

Year 1
Year 2
Year 3

Amount (Rs000.)
275,000
412,500
550,000

This forecast is for Stick o Butter of 100 gm and the price is Rs. 100.

Cartons ( 20 units)
70,000
100,000
220,000

Year 1
Year 2
Year 3

Amount (Rs000.)
700,000
1,000,000
2,200,000

Advertising and Promotion Budget:

Year 1
Year 2
Year 3

Above the line

TV
Print
Radio
Rs. 35M
Rs. 25M
Rs. 8M
Rs. 34M
Rs. 20M
Rs.7M
Rs. 30M
Rs. 20M
Rs. 7M

Below the line

Rs. 35M
Rs. 32M
Rs. 30M

STATEMENT OF COMPREHENSIVE INCOME

For The Three Years:
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STICK O BUTTER
Projected Income Statement
For the three year
Year 1
Rs(000)
Sales

Rs(000)

Year 2
Rs(000)

Rs(000)

Year 3
Rs(000)

975,000

Less: Cost
Gross Profit
Less: Operating
expenses
Advertising and
Promotion

Rs(000)
2,750,000

1,412,500
(900,000)
512,500

(1,000,000)
(25,000)

(1,200,000)
1,550,000

75,000

95,000

90,000

105,000

93,000

87,000

Total Expenses

(180,000)

(188,000)

(177,000)

Net Profit/(Loss)

(205,000)

324,500

1,373,000

CONTROLS
To maximize the return on Stick o Butter there are certain controls that we are planning to
implement for monitoring the progress of the butter. As a marketing plan moves along, the
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controls will be constantly analyzed to determine how the plan's actual performance compares to
the projections.
Due to the introductory period in the Stick o Butters life cycle, it made a loss in the first year of
operation due to higher cost of production and advertising and promotion costs. Excessive
advertising and promotion was needed for the butter to become known among the customers.
Later, in the second and the third year as the consumers are aware of the product, Stick o Butter
now starts to make profit due to increased sales revenue.
In three years time, we will be monitoring the customer feedback through polls and surveys. We
can reach our customers indirectly by hosting online polls on the internet to ask specific
questions related to Stick o Butter to see whether the customers are satisfied with the product or
not. Conversely, surveys can be done via individual interviews by phone or in person. The
feedback will then be examined to check if they are matching with the standards set, if not then
appropriate actions will be taken to correct the problems.

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CONCLUSION
The idea of launching Stick o Butter will be a success as it is quite different from its
competitors. When a new product is launched with a lot of promotions, people are curious to try
the product. We have tried our best to keep the consumer preferences in mind and the type of
quality and taste they are wanting. Hence, if they find good natural taste in a small stick which is
affordable and easy to use then they would definitely buy the product. Through our research
conducted, the results even proved that Stick o Butter will be a success as it was liked by
majority. One major Question which was raised was that:
WHY WOULD ANYBODY BUY YOUR STICK O BUTTER WHEN THEY ARE ALREADY
LOYAL TO OTHER BRANDS? For example if someone is using Blue band since 10 years
then why would they go for a newly launched butter?
The Answer to this question is that Brand Switching takes place in situations where the other
companies product is beneficial than the product you are currently consuming. And Stick o
Butter is providing everything one can think of in just a stick. And we have different flavors
available too which will interest our consumers.
Therefore, Stick O Butter is the best choice.

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BIBLIOGRAPHY
Pharmaceutical, S. (2010). Pass the Butter Please.
http://www.nurpurfoods.com/dairy-products/

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