ChiggY WiggY Juice

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 COURSE
PRINCIPLES OF MARKETING

SECTION
A

SUBMITTED BY
Taha Sohail Razzak 10788
Muhammad Faizan Najeeb 10783
Waseem Baig 9905
Nida Datoo 10336
Syed Saad Ali 10159
Taimur Ali Khan

SUBMITTED TO
MR. FAISAL KAZI

DATE OF SUBMISSION
15th May, 2010.
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CONTENTS
..............................................................................................................ACKNOWLEDGEMENT
........................................................................................................................................................6
............................................................................................................EXECUTIVE SUMMARY
........................................................................................................................................................7
...............................................................................................................................INTRODUCTION
........................................................................................................................................................8
...........................................................................MISSION STATEMENT OF THE COMPANY:
........................................................................................................................................................8
.....................................................................................................PURPOSE OF THE PRODUCT
........................................................................................................................................................9
........................................................................CUSTOMER RELATIONSHIP MANAGEMENT
........................................................................................................................................................9
..........................................................................................................................................................
.............................................................................................HOW TO ATTRACT CUSTOMERS
......................................................................................................................................................10
..................................................................................HOW TO RETAIN LOYAL CUSTOMERS
......................................................................................................................................................11
...............................................................................................BCG GROWTH-SHARE MATRIX
......................................................................................................................................................12
...........................................................................................THE PRODUCT EXPANSION GRID
......................................................................................................................................................13
........................................................................................................................SWOT ANALYSIS
......................................................................................................................................................14
 STRENGTH....................................................................................................................15
 WEAKNESSES...............................................................................................................15
 OPPURTUNITIES..........................................................................................................15
 THREATS.......................................................................................................................15
.....................................................................................................................MARKETING PLAN
......................................................................................................................................................16
.................................................................................DEVELOP MARKETING INFORMATION
......................................................................................................................................................18
...........................................................................................................MARKETING RESEARCH
......................................................................................................................................................18
..........................................................................................CONSUMER BUYING BEHAVIOUR
......................................................................................................................................................19

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 .......................................................................................................MARKET SEGMENTATION
................................................................................................................................................19-20
 MARKET TARGETING…………………………………………...……………20
 MATKETING MIX………………………………………………...……22

 PACKAGING……………………………………………………….….22

 BRAND DEVELOPMENT…………………………………………….23

 ADVERTISING AND MARKETING…………………………………24

 NEW PRODUCT DEVELOPMENT……………………………….…25

 PRODUCT LIFECYCLE…………………………………….26-27

 PRICE STRATEGY……………………………………..……..28

 MARKETING CHANNEL……………………………………29

 CONCLUSION……………………………………………..…..30

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 ACKNOWLEDGEMENT

Firstly, our greatest thanks to Almighty Allah the most Superior and Magnificent, who gave us
the strength to carry out this research activity. Secondly, we would like to thank our Faculty Sir
Faisal Kazi without whom it would have been impossible. His deep marketing knowledge
reflected in his lectures helped us to come with this report. Lastly we would like to thank our co-
workers and family.

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 EXECUTIVE SUMMARY

The following report gives an overview of newly juice introduced in the market, Chiggy Wiggy.
Moreover, our report will briefly outline:

 Our marketing strategy.

 Our target market.
 How to market and convince potential customers to purchase our product
 Product price.
 What sort of consumer product it is?

This report will also focus on the following:

 The BCG matrix.

 The SWOT Analysis.
 Factors influencing buyer behavior.
 Market segmentation and targeting.

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 INTRODUCTION
The need for the product:

In today’s world people are too much health conscious. The main ingredient that we use in our
juice named ‘Chiggy Wiggy’ is honey instead of sugar. Honey has many medical benefits over
sugar, and they are as follows;

 Increases anti oxidant level.

 It has healing powers. It can help healing stomach aches and dehydration for example.
 Provides several vitamin and minerals.

The usual milk drinks for example ‘Milo, Owsum, and Nesquick’ use sugar and sugar is not only
unhealthy but also an expensive raw material to be used in drinks. We on the other hand can
keep our cost of production low by using honey instead of sugar; honey can be used in small
quantity than sugar and will give our product more and more sweetness.

The main target market for us is the users who are health conscious, and like stated above in
today’s world every other person is health conscious. So I think the market needs this segment
and targeting such a segment has a scope in the market.

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 MISSION STATEMENT OF THE COMPANY:

STAY HEALTHY PAKISTAN.

PURPOSE OF THE PRODUCT

The product targets the consumers who want to stay healthy even if they turn 80. It targets the
group of people who don’t have a high salary yet don’t want to compromise on their health. So
the main purpose of the product is to keep the world healthy so that people can enjoy their life.

PHILOSIPHIES
There are five alternative concepts under which organizations design and carry out their
marketing strategies:

Production concept
Product concept
Selling concept
Marketing concept
Societal marketing concept

The concept we will use for CHIGGY WIGGY JUICE is marketing concept. As per the
marketing concept the main tool that we are targeting is the consumer want. The consumer
wants to stay healthy and what else can be the better way of giving them health than

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 CHIGGY WIGGY. We will use integrated marketing and make our product successful by
giving maximum satisfaction to our consumers.

CUSTOMER RELATIONSHIP MANAGEMENT

Customer relationship management (CRM) is methods that companies use to interact with
customers. It is the combination of policies, processes, and strategies implemented by an
organization to unify its customer interactions and provide a means to track customer
information. It involves the use of technology in attracting new and profitable customers,
while forming tighter bonds with existing on.

CHIGGY WIGGY can use ‘honey’ as a CRM for them. The product is made using honey
which has many medical advantages over sugar. Consumers will get to know that we are so
much careful about their health that we are using honey instead of sugar and this will help us
differentiate our product to that of Milo and other milk drinks, this will create better CRM.

CREATING VALUE OF YOUR PRODUCT

In order to create value of our product in consumer mind we need to make our product;

1. Distinctive (from the competition)

2. Motivating (to customers and other stakeholders)

3. Credible (rooted in the truth)

4. Enduring (with a good "fit" to market trends)

5. Strategic (in line with your business objectives)

HOW TO ATTRACT CUSTOMERS

The success of our business relies greatly on our ability to attract a steady stream of customers. If
CHIGGY WIGGY wants to attract new customers, they have to identify a specific demographic
group that will have the interest to buy their products or services. Moreover, for our product we
can attract customers through an ample of ways:
 Launch a Web site. Web sites provide your company with worldwide exposure
and give your customers convenient access to your services and products.
 Monitor the quality of your services and products constantly. Satisfied customers
who spread the word about your business are the best source of new customers.
Pay attention to pricing, customer service, product availability and prompt
delivery.

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  Explore various types of traditional advertising methods such as classified ads,
yellow page ads, television and radio spots, and display ads in magazines and on
other Web sites. Go with what meets your budget and best reaches your target
group.
 Maintain a visible presence within your industry. Participate in trade shows,
attend community events and offer to speak on your area of expertise at seminars

HOW TO RETAIN LOYAL CUSTOMERS

Many businesses only see loyal customers as profit which is a downfall. These businesses lose
out in the end because they will eventually ditch them from poor services to outdated deals. The
worst kind of thing a business can do is to neglect their loyal base while giving the best deals to
only their new customers. Some methods to keep loyalty intact:

 Give your Loyal Customers a Better Deal

 Reward your Loyal Customers

 Build an Online Community for your Loyal Customers

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CHIGGY WIGGY’S BCG GROWTH MATRIX
It is a simple method to know about a company’s particular product in terms of its relative
market share and growth rate.

BCG GROWTH-SHARE MATRIX

 Cash Cow – Keeping “Chiggy Wiggy” in mind CHOCOLATE flavor among all juice
flavors can be a the cash cow because majority of the populations choice of flavor goes
for chocolate including the kids market so it may have a large market share in a mature,
slow growing industry. It requires little investment and generates cash that can be used to
invest in other business units.

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  Star – Next the BANSTRAW flavor (that is the combination of banana and strawberry)
among the “Chiggy wiggy juices” may be a star as the research said majority of the
youngster’s favorite fruit is banana and strawberry so it might be having a large market
share in a fast growing industry. Secondly Banana is the most healthy fruit recommended
by doctors and this flavor can be preferred by adults of all ages since honey is used
instead of sugar. These may generate cash, but because the market is growing rapidly
they require investment to maintain their lead. If successful, a star will become a cash
cow when its industry matures.

 Question Mark(or Problem Child )- BLUEBERRY flavor might be a question mark as

most of the people are not in the favor of this flavor so it might have a small market share
in a high growth market.

 Dog – Finally GAUVA flavor will be a dog as only a small majority would prefer this
flavor because people generally don’t go for this flavor, so it is a possibility it will have a
small market share in a mature industry.

In the beginning we expect our product to be at dog’s position and then gradually we expect it to
occupy star position.

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 THE PRODUCT EXPANSION GRID

Chiggy Wiggy when classified into product-expansion grid will fall into the category of
“Product Development” as our market already exists and the product introduced is modified i.e.
the juice is consumed by almost everyone and is a convenience product and there exist many
competitors, so the market for Chiggy Wiggy is the same as the market for nestle, we target
everyone. But our Chiggy Wiggy is modified since we introduced a completely new flavor
which is never been introduced by any other company that is ‘Banstraw’ (a combination of
banana and strawberry) and that we use honey in place of sugar. Chiggy Wiggy thus will be a
part of product development growth strategy.

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STRENGTH

A firm's strengths are its resources and capabilities that can be used as a basis for developing an
advantage. For our juice “CHIGGY-WIGGY” strengths might include:

 Unique product; have never been introduced before

 strong brand name

 Exclusive access to high grade natural resources
 Favorable access to distribution networks
 Brand comes from a reputable company

 Loyal following of ‘Original’

 Patents

WEAKNESSES

A weakness may be viewed as the absence of certain strengths. Weaknesses for our product can
be as follows:

 It is a new product; people hold no awareness about it.

 Lack of patent protection
 Poor reputation among customers
 High cost structure
 Low Top-of-Mind recall: Communication not engaging

OPPURTUNITIES

The external environmental analysis may reveal certain new opportunities for profit and growth.
The opportunities for our product are that:

 An unfulfilled customer need

 Arrival of new product
 Loosening of regulations
 First one to adept the market through this product

THREATS

Changes in the external environmental also may present threats to the firm. Some examples of
our product of such threats include:

 Shifts in consumer tastes away from the firm's products

 Emergence of substitute products

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  New regulations
 Being a new product will people accept it.

MARKETING PLAN
Section: Purpose:
EXECUTIVE SUMMARY The following report intends to give an overview of the
introduction of a new product in the market.Moreover,
our report will briefly outline:
 who our target customers are,
 what our marketing strategy will be,
 how to market and convince potential customers
to purchase our product
 where will we market and distribute our
product- availability aspect

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  What price will be charged- affordability aspect?

 The Growth-Share Matrix, outlining our products

potential in the market.
 The SWOT Analysis.
 Buyer-behavior pattern and factors influencing this
behavior.
 Current market situation, taking not only the
competitive aspect into account but also the
economic situation and the political scenario when
planning to introduce the product.
 Segmenting the market, targeting the selected
segments, positioning the product appropriately and
differentiating it from other products.
 Different pricing and promotional strategies that will
be adopted along the way.

THREATS & OPPORTUNITIES

ANALYSIS
Threats: Opportunities:
 Acceptance by people being a new product An unfulfilled customer need, hence tapping
 Emergence of substitute products & filling a gap in the market
 Shift in consumer tastes, away from the firm’s  Arrival of a new product, hence no initial
products direct competition
 First ones to grab the market through this
product
OBJECTIVES & ISSUES Objectives: a quality product that provides
convenience, taste & nutrition- all in one package.

Issues: little awareness regarding the product which

could possible affect the consumer buying behavior.

MARKETING STRATEGY STATEMENT Provides a detailed specification for the product which is
developed from an initial overview, which is very basic
and general. The statement is divided into 3 parts:
1st:
 Describing the target market,
 Planned product positioning- how to position
your product in the minds of customer so they
do not go for competition’s products
 Profit goals for the first few years & market
share
2nd:
 Outlining the product’s planned pricing strategy
(price-skimming/ penetration pricing),
 Distribution channel,
 Marketing budget for the first year
3rd:
 Outlining sales and profit goals in the long term.

BUDGETS Detailed quantitative figures and financial statements

such as :

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  Profit & Loss Statement,
 Advertising Budgets,
 Sales,
 Net price & Cost of Production,
 Revenue, etc.

CONTROLS Weekly, monthly or quarterly meetings or follow-up

progress reports to monitor the progress and assess
whether the intended plan is being implanted to yield the
desired results.

DEVELOP MARKETING INFORMATION

Firstly, our company set on a careful and thorough research to obtain the initial basic information
about our product, through using marketing means, from internal data and marketing research.
For this the company is likely to form a separate department consisting of several teams to carry
out the research activities.

MARKETING RESEARCH
The information about competitors, market place happenings and sales is likely to be getting by
the method of marketing research..

TYPES OF RESEARCH
 DESCRIPTIVE RESEARCH
Our Juice research focuses on maximizing quality as compared to any other factor, in order to
create great customer value. The main work of this situation and market potential which likely to
help in creating customer satisfaction and also bring an increment in the company’s sales and
revenue margin.

 CASUAL RESEARCH
Here our research development team is supposed to test hypothesis about cause and affect
relationship. That is to experiment our product in the open market to the targeted sector in the
specific areas to know the where the company stands and also the near future of the product.

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 CONSUMER BUYING BEHAVIOUR

Complex buying Variety seeking

behavior buying behavior

Dissonance Habitual buying

reducing buying behavior
behavior

. Consumers are most likely to adopt “habitual buying” behavior for our product as Juice
purchase in general is more of a habitual buying behavior rather then complex or any other
buying decision. Consumers usually have low involvement in the purchase of such product and
are likely to believe that such products have few brand differences.

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 MARKET SEGMENTATION
GEOGRAPHIC
 REGION OR COUNTRY
It is a new product so it is just available in major cities of Pakistan, but it is planned to export to
different countries

DEMOGRAPHIC
 AGE
People of any age can use this product.

 GENDER
Both male and female.

 FAMILY SIZE
5+

 FAMILY LIFE CYCLE

Single, married, younger, and older.

 OCCUPATION
People of any occupation can have this eatable product.

 GENERATION
Since it is a new product it hasn’t been used since generation

PSYCHOGRAPHIC
 SOCIAL CLASS
Middle and higher class

 LIFE STYLE
Achievers, Strivers

 PERSONALITY
People having any personality

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BEHAVIORAL
 OCCASIONS
Regular occasions

 BENEFITS
Taste, Quality and Convenience

 USER STATUS
First-time user

 LOYALTY STATUS
None, since a new product but after using it people will be absolute loyal.

 READINESS STAGE
Unaware as it is a new product.

 ATTITUDE TOWARD PRODUCT

As a new product in the market unable to calculate the attitude

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 MARKET TARGETING
We can attract our customers or go forward with our product in the following ways:

 Undifferentiated marketing (Mass marketing)

 Differentiated marketing (Segmented marketing)

 Concentrated marketing (Niche marketing)

 Micromarketing (individual marketing)

“CHIGGY-WIGGY” would be under UNDIFFERTIATED MARKETING because the

product is created focusing on what is common in the needs of consumers rather than on
what is different. The product is designed that will appeal to the largest number of buyers.

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 MARKETING MIX OF GHIGGY WIGGY
It would be a part of convenience product.

CONVENIENCE PRODUCT
Customer buying behavior
Product
 Frequent purchase
 little planning
 little comparison and shopping effort
 low customer involvement
 Brand Name- Chiggy Wiggy juice
 Two flavors offered
 Convenient

Price  Low price- penetration pricing

Promotion  Would be done by the producer only.

PACKAGING
Packaging is essential for the protection of our product. Our packaging would be unique in such
a way that it retains freshness as well as looks attractive.

Packaging was designed keeping in mind our social economic and environmental
responsibilities.

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 BRAND DEVELOPMENT STRATEGIES

Brand
Line extension
extension

Multi brands New brands

Chiggy Wiggy will be a part of new brand strategy as neither brand name nor this sort of product
category is available.

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 ADVERTISING & MARKETING
We promote the benefits of our products using many different channels of brand
communication.we believe advertising can be a powerful force for perception change.
Advertising helps inform people about the benefits of our products and innovations.

Our sponsorship program will include,

College sports, counter-strike sessions etc

OUR MARKETING PRINCIPLES:

Our Food and Beverage Marketing Principles contain principles for marketing foods and
beverages directed at our target market. They require that our marketing practices:

 Do not convey misleading messages

 Do not undermine parental influence

 Do not encourage pester power

 Do not encourage unhealthy dietary habits.

 Do not promote a healthy body images or “unhealthy slimness”.

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 STAGES IN NEW-PRODUCT DEVELOPMENT

‘Why introduce a new product?’ The simple answer is either to diversify, to gain a greater
market share, to fill a market gap or to cater to the changes that are taking place in the marketing
environment.

The idea for chiggy wiggy was generated because of the fact that none of these sort of a
combination of energy shakes and juice were available in the market .And secondly every single
juice was or shake was sweetened using sugar.

The entire idea behind this concept was to provide nutrition, taste and convenience in the form of
a quality product; hence the idea of energy“on-the-go” was conceived, with adding flavor to life.
After the concept was developed, it was tested amongst a few employees; receiving a positive
response gave us the incentive to move further with the development of our product. After which
we developed a marketing strategy that outlined a detailed specifications regarding the product.

A business analysis was then prepared and presented for approval by management, which would
further support the development of our product. After this stage is completed the product is
developed and tested in more realistic market settings, which marks the test marketing stage.
Once this stage is completed that is when commercialization of the product or its introduction in
the actual market takes place.

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 PRODUCT LIFE-CYCLE STRATEGIES

The product life-cycle (PLC) concept tells us the course of the a products sales and profits over
its lifetime. It involves 5 stages:

1. Product development.Begins when a company develops a new product idea.During this

period sales are zero.
2. Introduction stage is a period of slow sales growth as the product is introduced in the
market. Profits are nonexistent at this level.
3. Growth is the period of rapid market acceptance and increasing profits.
4. Maturity is the stage of slowdown in sales growth as the product has achieved acceptance
by most potential buyers. Profits level off or decline.
5. Decline is the final stage when sales fall off and profits drop.

Applying the PLC concept we can say that the returns will be positive during the concept
development stage as there is no similar type of product available in the market.

Moreover, the introduction phase will also yield low sales and profit levels as the product has
just been introduced in the market and it will take time and awareness for sales to pick-up, which
happens in the Growth stage.

High sales and profits are expected in the growth stage as the product would become well known
and will capture a great market share.

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Maturity is the peak stage, here the product has either reached its level of acceptance or there is a
lot of competition in the market due to new firms coming in this field. Chiggy Wiggy’s maturity
stage is considered or expected to be a short one because surely new firms will try to capture the
market.

We keep in mind decline of our product, even if it is as innovative as Chiggy Wiggy .There can
be numerous factors that may contribute to its decline.

PRICING STRATEGY
MARKET PENETRATION PRICE

We will set lower price for our new product for several reasons mention below:

 Firstly juice is a convenience product, people frequently purchase juices.

 Our product will bring an innovative concept to the market, very different from the
conventional concept of juice that is why we want as many people to try our product
as much possible. So that we can capture a large initial market share.

VALUE BASED PRICING

We will set prices based on buyers’ perception rather than our cost. Under this concept we
cannot design a product and marketing program and then set the price. Price is considered along
with the other marketing mix variables before the marketing program is set.

Thus it must convince buyers that the products value at that price justifies its purchase.

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 CONSUMER MARKETING CHANNEL

Marketing channel for the product will be channel 4 which is agent broker channel.. Since
our product will be widely available and very easily accessible to customers we prefer
distributing it through wholesaler to retailer. So that large retail stores will be able to buy
bulk amount of our product from wholesaler at a discounted price and wholesaler can store
such huge amounts of Chiggy wiggy juice s to reduce the company’s cost of storage.

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 CONCLUSION
Our attempt was to bring before you the concept of a totally new product that does not exist
in the market .The whole concept of Chiggy Wiggy was to provide a quality product along
with convenience and taste as an added bonus.

Our purpose was to bring forward a healthy product for which People don’t have to
compromise on taste.

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