SHAZ Energy Drink

INSITUTE OF BUSINESS & TECHNOLOGY

Submitted to :

Student Group:

Submitted By

Sohail Muhammad Iqbal Hamid Hasan Anzar Ishaqui Zubair Nasir

BM-25150 BM-25167 BM-25173 BM-25123

(MBA Summer 2009)

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SHAZ Energy Drink

Course

Date of Submission

Project

Product
ENERGY DRINK ENERGY DRINK
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SHAZ Energy Drink

In the name of ALLAH, The most Merciful and Beneficial. We indebted to ALMIGHTY ALLAH, Lord of our lives and of everything in the universe and His HOLY PROPHET MOHAMMAD, (Peace Be upon Him), whose blessings enable higher ideas of life. We deem it a great honor and privilege to record profound sense of gratitude to our teacher Miss Binish Nida for her constructive criticism and valuable suggestions throughout the Principle of Marketing course and in the preparation of this report. Her inspiring guidance and consistent encouragement given in learning, execution of the training will ever shine in our mind. We have tried our best to make this report effective and efficient. Some quality and informative books helped us very positively to make this Report understandable for readers. We are very thankful to all our classmates who really helped us and especially our teacher who maximized our skills in order to make this report effective and very systematic.

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SHAZ Energy Drink

1) 2) 3) 4) 5) 6) 7) 8) 9)

Introduction to S.H.A.Z . 5 Product Variety..... 6 Mission Statement..... 7 About S.H.A.Z...... 8 Marketing Objectives.. 9 Marketing Strategies..... 10 Marketing Tactics... 11 Marketing Mix 12 SWOT Analysis... 17 The BCG Growth Matrix... 21 Market Segmentation. 22 Target Market. 24 Brand Personality....... 25 Competitor Analysis...26 Market Share Chart.. 27 Environmental Analysis 28

10) 11) 12) 13) 14) 15) 16)

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SHAZ Energy Drink

SHAZ energy drink is a product of S.H.A.Z group. It is developed in Karachi, available in all over Pakistan. ARY cash n carry have the exclusive right to market this product in Pakistan. S.H.A.Z is an energy drink and it is much more than a soft drink. It is energizer developed particularly for periods of mental and physical stress and strain. S.H.A.Z can be consumed in any situation during sports, at work, while driving and in leisure activities. S.H.A.Z is made for moments of increased physical and mental stress and improves endurance, alternatives, concentration and reaction speed. The effectiveness of S.H.A.Z energy drink has been proven by a large number of scientific studies and is appreciated by many of the worlds top athletes and drivers, opinion leaders and hard working people with active life styles.

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PRODUCT VARIETY

Power Original (Citrus

drink)

Real Power Black Cherry (red drink)

Power Orange rush (orange drink)

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SHAZ Energy Drink

VISION STATEMENT

MISSION STATEMENT

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SHAZ is carbonated vitamin enriched refreshing energy formulated drink distinctive in taste a color aimed at the individual seeking a boost in mental and physical functionality. If you are young, old, stressed, parting hard, playing hard, studying, working or just need a boost then SHAZ is the right choice for you. SHAZ original will initially be available in Karachi with its unique formula to provide a boost to increase strength and energy. Other formulated drinks will be available in future, each containing their unique formula enhancing strength, energy, stamina, endurance, alertness of body and mind.

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To increase the market share by 10% To increase the awareness for the brand To increase the advertising budget by 20% Induce the prospect customers to use the brand by introducing different promotional tools To increase placement Aim for an average price of their product

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MARKETING STRATEGIES

To increase the sales with particularly emphasize on male buyers with also increasing a female base introducing sweeter drinks. Capture the market through penetration by increasing distribution outlets

Develop a new campaign that supports the positioning strategies by using billboards which are much cheaper.

To conduct a research in order to find out the changing preferences of the consumers.

To develop a point of purchase display Wider the span of availability

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SHAZ Energy Drink

Introducing customer.

new

flavors

to

attract

new

Introducing new sweeter taste formula for Females. Introduce scratch cards and give instant prizes to the customers to regain loyalty. Make the drink available happening events. at concerts or

Establish inner control to decrease cost.

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SHAZ Energy Drink

Price is the amount of money charged for a product or service or the sum of the value the consumers exchange for the benefits of having or using the product or service. Price is the only element in the marketing mix that produces revenue; all other elements represent cost. This shows the price is also one of the most flexible elements of the marketing mix. Unlike product features, price can easily be changed. The pricing strategy for SHAZ is based on maximum share growth because it is working in small and tough segment. SHAZ is to increase its customer share and challenge Red bull. For this SHAZ is trying to maximize unit sales. The price of SHAZ is set a fraction higher compared to competitors; the market of energy drink is not price sensitive. The consumer in the energy drink sector is not very price sensitive and keeping that aspect in mind, the company has placed the price of product same as its competitors or a fraction above its competitors. Keeping the price above or the same as the competitors was done because SHAZ wants to say something about the product. The Price of a SHAZ can is Rs.60. ARY is also providing substantial benefits to its retailers and other channels.

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SHAZ Energy Drink

Sales promotion consists of a diverse collection of incentives tools, mostly short term, designed to stimulate quicker or greater purchase of particular product or service by consumers or the trade. The promotion done by SHAZ is based on advertising and sampling. The objective of the promotion in the first phase of the campaigns was to create awareness of the drink category. Obviously, the message is carrying the brand name so it can be established as an energy drink. The product has a high image because of which a perception of its attitude and attraction has to be made. It is difficult to mass market this product that is why it is being sold to a focused market. Four old beetles with a SHAZ branded were running on the roads for promotional purposes. Sampling activities were also performed by these beetles. Two different posters with the same design and brand elements were made. These posters are very effective in creating an acceptance in the shops.

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SHAZ Energy Drink

For image building purpose, a contract with subways was signed and now the product is available there: 15 second TV commercial with male and female models (three different versions with same theme).

15 second TV commercial (battery charging). The frequency of the commercials was really high but non-prime time placement. ARYONE, the Music and City channel were running SHAZ commercial. July issue of Spider Magazine was also covered. Participation in exhibitions: My Karachi and Kitchen Care in Karachi Expo Centre.

These are all the promotional activities that were performed in the start but now, all the sampling test are done for consumer promotion

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SHAZ Energy Drink

Product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a need or a want. SHAZ is a consumer product that can be bought by the final consumer for personal consumption. Among the consumer product, it would be placed under shopping product as they are bought less frequently and among them, the consumer compares carefully on quality and price. When buying these kinds of products, the consumer spends a lot of time and efforts in gathering information and making comparisons. The SHAZ product focuses on being more than a soft drink; it is an energizer, drinkable in any situation and in short, vitalizes body and mind. The claims regarding the brand that were made by the company, the product has the potential to fulfill all those claims.

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It is a very crucial strategy of marketing but it does vary from the type of the product. Placement strategy means where the product would be available for the sale. To make a product available at different locations, we try to forge a distribution channel which is a set of inter dependent organization involved in the process of making a product or service available for use of consumption by the consumer or business usage. Presently launching, SHAZ have a very strong distribution network in Karachi, Lahore, Islamabad, Rawalpindi and Faisalabad. The Karachi distributor is running two vans of SHAZ, whereas in Lahore, it is being distributed with Del Montes products. In Islamabad, exclusive vans are running. Our product is available in almost 700 shops in Karachi. Place strategy might be different from a point of view of specialty product as that cannot be made available at every store but can only be made available at certain stores that are selected according to the target market and pricing strategy. Karachi wholesale market is also being tapped with multiple suppliers. The reason of having multiple suppliers is to avoid exclusivity market to stabilize the prices. In Lahore, the product is also available at ARY Cash & Carry. It is also available at all prime shops including Defense Club Lahore and in the Lahore wholesale market.

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1.

The SHAZ group has a substantial capacity of production and packaging. This helps ARY not to fall behind in times of high demand.

2. Unique product design 3. the target market encircles the age group from 15 to 30 years 4. High technology & skill workers
5.

The effectiveness of SHAZ energy drink has been proven by large number of scientific studies. This has created a trust among the people and is one of the strengths for SHAZ. is being distributed by ARY cash n carry. ARY cash n carry is an ARY SBU. ARY is power house group and has a strong base in Pakistan.

6. SHAZ

7. It is made for Halal ingredients

product contains more vitamins and calcium as compared to other ingredients.

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SHAZ Energy Drink

i. ii. iii.

The budget is not sufficient for marketing activities. The market was not properly targeted; they lack the understanding of the market. The positioning of the SHAZ is as a premium product but the consumer has low attachment as compared to Redbull. The management changes at cash and carry and because of these fluctuations in pricing are effecting the perception of the consumer.

iv.

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1) 2) 3)

High rate of market growth Lower import tariff rates Rising literacy and changing trends of Pakistan population Launching the product Nation wide & to create brand awareness

4)
5)

Supply SHAZ at major concerts, matches and events because the people at events require extra energy.

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i. ii. iii. iv. v.

Entrance of the new competitors Competitors strategies Changing fashion the target marketing Official changing the Government Polices The other is from low cost substitutes like caution and powder form energy drinks. These are cheaper and for a price sensitive consumer are better options. Well established brands like Red bull are and will be a threat for SHAZ.

vi.

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SHAZ Energy Drink

Relative Market Share

High

Low

Portfolio of the Company

High

High Low

Low

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SHAZ Energy Drink

Market consists of buyers and each buyer differs in many ways. They differ in their wants, needs, resource and buying attitude. Market segmentation is a tool that the company uses to divide large heterogeneous market into small homogeneous segments. The market segmentation for SHAZ is done on segment marketing. Through segment marketing the company has identified small group of people with similar needs and wants and through the marketing practices they are satisfying these needs and wants. The segmentation of the SHAZ is as follows:

GEOGRAPHIC
Country\Region Density
Pakistan \ Major Cities Urban

DEMOGRAPHIC
Age Gender Life Cycle Income Income Group Occupation
15-30 Mainly Males Young and single or married with no children Rs. 45,000 and above Upper Middle and High Class Good job or on business, is a student belonging to a wealthy family.

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PSYCHOGRAPHICS
Social Class Life Style
Upper and Upper Middle Class Young, Trendy, Gregarious, Hip Cosmopolitan,

BEHAVIORAL
Occasion Benefit Sought Loyalty Status Attitude Towards Product
Any Flavor and Brand Status Significantly High Enthusiastic, Positive

The energy drink industry is not uniform as buyers differ in their taste and buying behaviors. Thus segment marketing strategy is used to isolate the broad market segments that make up the market.

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SHAZ Energy Drink

Once the firm has identified its market segment than the main task before the company is to decide how many and which ones to target. Before targeting a segment, company must take into consideration the various aspects of the segment like size and growth, attractiveness in the segment and above all the resources of the company. ARY cash and carry is targeting the upper and upper middle class preferably the youngsters & young child. Thus this product is targeted towards this particular segment. ARY cash and carry targets the market through concentrated marketing, which is the market coverage strategy and in which the firm focuses on one segment. SHAZ focuses on high class lifestyle people who are much more conscious about their health matters and they certainly do not compromise on quality of a product, even if they have to buy it at a higher price.

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SHAZ Energy Drink

Product positioning if the way the product is defined by consumer on important attributes. It is basically a place the product occupies in consumers mind relative to competing products. You can position anything, a product, a politician or even a human being. It starts with the product but positioning is not what you do to the product but its what you do to the mind of the prospect. The positioning strategy for the SHAZ is to target health conscious and people looking for an energizing drink. SHAZ provides vitamins and calcium and at the same time refreshes the body and mind. SHAZ uses multiple vitamins A, B1, B6, B12 and E and calcium in their strategy for positioning their product.

The personality of the brand is its premium price for a high quality and healthy drink, which energizes the body and mind and caters to upper and upper middle class.

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The competition is this industry is very stiff but this category is new and is in its introductory stage, so there is no establish data available but the data from different source is as follows: Brand Name Red bull SHAZ (Approx. target) Bomba Dynamic Power Horse Spark Quantity Sold \ Month 60,000 units in Pakistan 20,000 units in Pakistan 7,000 units in Pakistan 5,000 units in Pakistan (major in Punjab) 5,000 units in Pakistan 2,000 units in Pakistan

As far as the market share goes SHAZ is at number 2 for the achieving target set is launching the SHAZ but the difference with Redbull is quite large. The reason for ARY to bring SHAZ was to challenge Redbull and first beating unsettle the other brands. The reason for Redbulls successful sales is its market presence for the last 5 years. It is being distributed by multi channel a very established local distributor with other imported brands, like Wheatabix, Lays, Fritolays, Juices and others. Due to Redbull Companys involvement, Redbull is providing cooler and dispensers at good outlets. It has an exclusive marketing contract with Shell Select International and is easily available. Its
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world ranking is number 1, it is well advertised world wide and due to cable it is also being advertised through other channels.

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70% 60% 50% 40% 30% 20% 10% 0% Percentage

Redbull Bomba Horse Power

SHAZ (Approx.) Dynamic Spark

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OVERALL ENVIRONMENT OF THE INDUSTRY

Import tariff rate was reduced from 45% to 30%, which has allowed increase in imports. The market consumptions for energy drinks: - at an approximate, the consumption for energy drinks in the market is 24750 liters per month. The market consumption for SHAZ: - at an approximate the consumption for SHAZ in the market is 5,000 liters per month. The energy drink industry also has low cost drinks like Caution and Sachets like Bull Powder, which are introducing cheaper and affordable drinks.

There is a great believe among the consumer due to changing culture that there is a need for energy drinks because of the fast pace of life.

The main ingredients use in SHAZ and Red bull are vitamins and calcium, which are beneficial for

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the body. The other competitors use these ingredients too but in a lesser quantity and rely more on Guarana, Magnesium and Caffeine.

The industry seeking new competitors coming in like Solstis, which is a product and Red bull competitor and the growth of the market is increasing at a much slower rate as compared to the competitors. The government has no policies on energy drinks as yet.

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SHAZ Energy Drink is one of the most exciting Products to introduce by the All over Pakistan. Our aim to phenomenal growth have helped it to overtake its leading competitor in sales volume for the future, they have done this through an extensive marketing and promotion campaign, building the Product awareness and loyalty along the way. However, the company must implement a large-scale advertising plan in conjunction with these promotions in order to continue growth and become the most successful Product in the Nation How to break away from top competition like Red Bull, Rock star, and Full Throttle, so then Needs to more implement an advertising strategy that will increase Product awareness, sales, and target market size in order to accelerate growth. This advertising plan will include television commercials, magazine advertisements, and athletic endorsements to reach these objectives. Should bring the popular energy drink to a more mainstream audience and reach the necessary goals. The project will be monitored with many of the traditional methods for tracking. Scanner data, ratings, and sales analysis should help to show whether the campaign was a success or not. Given the opportunity cost of staying idle and losing market share, SHAZ should seize the opportunity at hand and begin a mass advertising campaign. The future success of the company depends on their current marketing choices and decisions.
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