Guidelines on Product Marketing
Road Side Stands
Roadside stands in the peak season of the fruit will be helpful for the juice producer to
develop the brand awareness in a short time period which would be coinciding with
harvest schedules and weather circumstances and seasonality. Advantages of a roadside
stand include the following:
You can manage time more efficiently between factories and stand operations.
Transportation costs are reduced.
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You can expand production to meet consumer demand.
You can expand production as you improve your regional-sales ability.
You can improve facilities as volume and returns increase.
Restaurants and Hotels
Selling directly to restaurants eliminates one or two middlemen which help in increasing
profit margins. By assuming traditional wholesaler functions, the juice producer can keep
the profit that normally goes to the wholesaler. Often chef and restaurant owners are
willing to make the extra effort to get high quality and specialty items, but they demand
the same consistent quality and service from the producer that they can get from a
wholesaler/importer—broad product line, partial cases of product, clean produce,
frequent delivery schedules, convenient ordering, etc.
Urban, suburban, and tourist destination areas usually have the number and type of
restaurants that could make selling directly to restaurants economically feasible. A
restaurant’s needs depend on its style of cuisine, chef’s preferences, number of
customers, and menu prices. Generally, restaurants that feature regional specialties,
vegetarian dishes, or unique cuisine are the best candidates for direct sales. For example,
restaurants in the Northern areas and metro cities could be the potential customers.
Frequently cited advantages for direct-to-restaurant/Hotels sale include:
A higher wholesale selling price
A potentially higher net profit
A possible outlet for specialty or unusual products
More precise production planning
Effective counter competitive strategy aimed at wholesaler and established brands
like Shezan, Maza who have a year-round products line and regular sale staff
1.12.3 Product Marketing Plan and Budget Expenditures
Marketing and promotion of a new fruit juice brand will be critical. Before going into the
details of marketing and promotion it would be recommended to also take into account
the following points:
Fruit juices in smart neat packaging with clearly written specifications (i.e. 100%
pure etc.) attracts consumer in first light. Therefore, if the juice is visibly placed
on a separate stand in a neat and clean shop, it is likely to attract the consumer and
there will be no requirement of pre-sale buy-in.
Well balanced price and quality combination will be helpful to attract the
consumer.
Juice stands are good promotional mediums when placed in the restaurant of good
reputation in terms of cleanliness and sophistication i.e. KFC, McDonalds, and
Pizza Hut (there could be other comparable hotels and restaurants). Although, this
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December, 2016
type of promotional format would be unconventional, yet it would be a unique
point for marketing if somehow made possible.
Besides aforementioned options, the value and penetration of conventional mediums
cannot be denied. We propose the following promotional formats for a new business
entrepreneur:
Promotional Format/Activity
Frequency of
advertisement and
other details
Approximate
Cost
1. Promotional gift schemes and special discount for distributors and retailers
(e.g. 1 additional pack in each tray of juice)
Twice in a year and for
one month period each Rs. 400,000/-
2. Advertisement in the Local Television and Radio channel (i.e. FM radio
channels or the national radio)1
5 to 10 spot ads (1
minute each) in
summer season
Rs. 1,000,000/-
3. Co-branding with a local chain of restaurants / fast food / fueling station.
* *
4. Inviting school children for a study visit to your factory and provide them free
gift packs.
Once in a year and
target 5 to 10 schools Rs. 50,000/-
* For these types of advertisement and promotional activities, substantive logistic support and other resources like 100% pure juices in
big packaging sizes or bulk production may be needed which perhaps would be difficult in the beginning; therefore it is suggested to
avoid them during the initial operations and consider them after 3 to 4 years of business establishment.
1 Average rate would be approximately US$ 71 for a 30 second commercial (on the national radio channel of Pakistan).
2. SECTOR & INDUSTRYANALYSIS
2.1 SECTOR CHARACTERISTICS AND OVERVIEW
Agriculture sector highly depends on the weather circumstances. God has gifted Pakistan
with several varieties of fruits and vegetables. Modern processing and packaging
techniques make seasonal fruits and vegetables available all year round to almost all parts
of the globe. Tropical fruit like mangoes can be enjoyed in temperate countries.
Global fruit production in 2013 was estimated at 676.9 million tonnes as against an
estimated 656.9 million tonnes in 2012
The global export of fruits which stood at USD 68.17 billion in 2009, increased to USD
97.02 billion in 2013. Globally, the fruit imports also registered an increase to USD
105.26 billion in 2013, from USD 76.49 billion in 2009.
