EXECUTIVE SUMMARY

AMJ Group ofCompanion Limited Companies is launching a new tea brand named Majesty.
An analysis of the industry indicates the clutter and domination of the tea industry in
Pakistan by a few brands. Important point to be noted here is that in Pakistan tea is taken
not as a beverage, but as food. Therefore, making the people realize the difference in
quality Majesty is sure to raise the expectations of tea tastes and aroma. The targets of this
brand are status oriented, outgoing and working individuals who like to prefer stylish and
quality products and extremely high on taste and are ambitious in their own fields. The
marketing strategy to reach this target revolves around heavy promotion to break the
barriers of established brands and to flow the product through a controlled network. The
product stand out for the ’ aroma and raw pieces’ of tea that will are reserved for special
people to make their moments special. Making the premium brand available at an
economical price range and in convenient tin and soft packs, would act as a source of
protection at the time of launch .The distribution plan is to make the brand available in the
A and B+ stores of the big cities like Karachi, Lahore and Islamabad. The goods would be
pushed with the help of an evaluation and incentive based system of distributors. The
foremost element of the plan is the promotion because tea is a product that has earned
great levels of loyalty and to break the barriers of established brands the promotion is to be
carried out in two phase. The first phase is concerned with the initiating trials to get the
target customer an idea of the quality offered by Majesty. The second phase is Brand
building efforts, which is most possibly going to start within three months of launch. These
activities would include those tactics that would create loyalty towards Majesty
Our Vision
Reverting back to the
origin and heritage.
Our MissionMission
Our purpose is to provide a refreshing cup
of tea to our customers. We are dedicated
to giving you the knowledge necessary to
fully appreciate the wonderful aromas of
our tea leaves. We offer our premium teas
directly from the tea grower, you are
assured the highest quality and freshest tea
leaves in the market.
C Corporate
Objectives
ORPORATEOBJECTIVES
The objectives of A.M.J. Group of CompaniesCompanion Ltd are:
 To launch Majesty in Pakistan.
 To provide customers with high quality tea.

 To build brand image, develop immediate shelf-off take and strong
brand loyalty with the brand.

 To be the leadinger in premium tea sector of Pakistan by
providing original Ceylon tea.
 To maintain customer satisfaction by never compromising on
quality and flavor.
 To provide customers with high quality tea.
 To work as a team to achieve corporate goals.
 To increase the sales of standard tea in place of loose tea in the
rural areas by launching sachet packs and soft jars.
 The hot drinks market is expected to further develop between 2005
and 2010 as the population of Pakistan increases. We aim tTo
achieve the third largest markets share by continued media
campaigns and generating awareness about the benefits of tea
to the health of consumers.
 To have a long term profitable business by creating long term
relationship with our shareholders and employees.Stakeholders.
To build brand image, develop immediate shelf-off take and strong
brand loyalty with the brand.
 Tea Trends in
PakistanTEA TRENDS IN PAKISTAN
An Over view
In Pakistan, a morning and evening cup of tea is an essential part of everyday
culture. This tradition has existed for many years. Every guest in a home in
Pakistan is most likely to ask for a cup of tea. This trend has always created a
strong demand for tea in Pakistan and made it the world's third largest
importer of tea. In terms of tea consumption, it is the seventh largest country.
Even in summer when the weather is extremely hot, tea is drunk minimum
twice a day. During the review period, the hot drinks market grew in both
volume and value terms. Tea dominated the market in both the retail and
foodservice channels. Tea is a part of daily life.
Health awareness increases demand for green tea and fruit/herbal
tea
Increasing health awareness has led to higher demand for green tea and
fruit/herbal tea. Green tea is mostly consumed in urban areas and in some
rural areas. It has been proved that green tea helps weight loss. Fruit/herbal tea
alsoGreen tea experienced significant overall growth between 20005 and
200805 because it has a remedial effect.

Demand for dust tea and strong tea increasing

There has been an increase in demand for dust tea and strong tea in rural
areas. Consumers in the suburbs in rural areas like dust tea whereas
consumers in towns in rural areas and urban areas prefer strong tea. This
increasing demand has urged manufacturers to focus on dust tea and strong
tea.

Sales of other hot drinks remain small but growing

Other hot drinks isdrinks are the smallest sector within the hot drinks market.
These drinks are only consumed in urban areas where the media has more of
an influence and inhabitants have more disposable income.
Steady growth expected over the forecast period
The hot drinks market is expected to further develop between 20059 and
20105 as the population of Pakistan increases. It will also be boosted by
continued media campaigns coupled with a growing western influence.
Facts Aabout Ttea:
 Pakistan is a ‘tea’ drinking nation.
 The total tea category counts to approximately 135,000 tons that is
growing at a rate of 3% each year.
 Per capita consumption is approximately 1 kg per year.
Market Bifurcation:

The main type of tea present in the market is as follows:

 DANEDAR: Refined Tea Leaves, Granulated

  DUST: Tea from which leaf has been extracted – Refined & Simple.
 MIXTURE: combination of Danedar and Dust.
 LEAF: Raw pieces of Tea leaves
.

Grounds for Choosing Tea

Arom
a Color
Price
Streng
DETAILS: th Taste
Ethnic
 Tea Bags
Convenience

Out-of-Home
 Urban
Upper Class
Industry Analysis
ANALYSIS
INDUSTRY
Pakistan is not a tea producing country but is an important consuming
country, being the third largest importer of tea in the world and therefore of
considerable interest to the main tea exporting countries. Consumption in
20063 was 109 000 tones. In addition to the substantial legal imports, large
volumes are smuggled into Pakistan., largely via Afghanistan. Tea imports in the
country rose 11 percent during the 2003-04 fiscal year to 116.94 million kg,
amounting to $187.63 million, compared to 105.35 million kg worth $163.14
million during the 2002-03 fiscal year.
Government control does seem likely to continue to decline, giving greater
opportunity for the private sector to react to market demands and compete
for the consumer’s expenditure. This will mean greater opportunity to
actively market tea using all the available marketing tools, including
promotion, product diversification, market segmentation, and searching for
other forms and uses for tea.
 SWOT ANALYSIS

As their populations continue to increase, consumption will grow, though at

lower rates than previously. If incomes grow, per capita consumption will also
be stimulated, but competition from other beverages will continue to place
restrictions on this growth in tea consumption. Tea is facing small but
increasing competition from other, more expensive, beverages.
Import duties and other taxes have been declining and can be expected to
encourage increased imports from countries formerly facing higher rates,
such as India. In July 2004 Pakistan reduced the import duty on tea from 20
percent to 10 percent and. Tthe sales tax on tea was reduced to 15% and
income tax to 2 %.
SWOT Analysis
Strengths: Weaknesses:

 100% Pure Ceylon Tea  Low Awareness

 Imported Brand.  High Price

 Premium Quality  Strong brand loyalty towards

original brand
 Various Packing size’s
Volatile Tea prices

Opportunities: Threats:

 Low import duties and taxes  Smuggling from other

countries and black markets
 Growing population
 Unstable Economic Scenario
 Ever-growing Tea Market
 Unstable Political
 No other Ceylon Tea in the Conditions
market  Niche Market (In terms of
revenue generation)
Market Penetration

Brand Acceptance

Low government intervention

Strengths: Weaknesses:

 100% Pure Ceylon Tea  Low Awareness

 Imported Brand.  High Price

 Premium Quality
  Various Packing size’s  Volatile Tea Prices

Opportunities: Threats:
 Low import duties and taxes  Smuggling from other countries
and black markets
 Growing population
 Unstable Economic Scenario
 Ever-growing Tea Market
 Unstable Political Conditions
 No other Ceylon Tea in the
market

 Brand acceptance
COMPETITOR
Competitor
Analysis ANALYSIS:
LYL 7.37% BBS 11.79%

TD 11%
Loose Tea TFM 3%
45%

PD 3.68% A1 3.68%
Mezban
1.47%
Mushroom
8%
KEY:
LYL Lipton Yellow Label
BBS Brook Bond Supreme
TD Tapal Danedar
TFM Tapal Family Mixture
 Market Share

Unilever
Other Brands 37%
38%
Unilever
Tapal
Other Brands

Tapal
25%
PD Pearl Dust

MARKET SHARE
The market share of Unilever in Pakistan is around 37% and the major competitor
Tapal has the market share of 25%, other 38% market share is held by other
brands. In Karachi Tapal is a leader with a market share of 60% and
Unilever with 17% only, Unilever teas has strong holding in the province of
Punjab compare to the Tapal who has major holding in Sindh.
 Customer
Analysis
CUSTOMER ANALYSIS
DEMOGRAPHICS OF PAKISTAN:

Population: 152.53 million

Rate of population growth: 1.9%
Life expectancy: 64.10 years (males), 63.80 years (females)
Literacy: 53.0%** (rural 41.6% & urban 69.7%
Urban Population 44 M
Rural Population 96.5 M
Population Growth rate: 2.28% per annum
Population density: 172 persons per square km
Age composition: Less than 15 yrs: 41%
Earning Members (All Pakistan) 1.78 M
Average household size:
6.67 Persons
Rural
6.55 Persons
Urban
6.79 Persons

Literacy:
47.1%

Estimated Number of Households

 All Pakistan 19.01 M
Rural 13.45 M
Urban 6.25 M
Average City wise Population
Karachi 10 M
Lahore 5.47 M
Islamabad 0.57 M
Rawalpindi 1.52 M
 Year 1998

 Indicators Pakistan NWFP* FATA# Punjab Sind Baluchistan  Islamabad

Area (Sq. K.Ms) 796096 74521 27220 205345 140914 347190 906
Population (in thousand) 132352 17744 3176 73621 30440 6566 805
Male (percentage) 52.03 51.22 52.01 51.74 52.88 53.4 53.93
Female (percentage) 47.97 48.78 47.99 48.26 47.12 46.6 46.07
Urban Proportion 32.50 16.87 2.70 31.27 48.75 23.90 65.70
Population Density 166.3 238.10 116.7 358.52 216.02 18.9 880.8
(Person per Sq. K.M.)
Sex Ratio
108.50 105.02 108.40 107.23 112.24 114.60 117.00
(Male Per 100 Female)
Average Annual Growth
2.69 2.82 2.19 2.64 2.80 2.47 5.19
Rate(1981-1998)
Population Under 15 (%) 43.40 47.20 25.90 42.52 42.76 46.67 37.90
Population 15 - 64 Years
53.09 49.79 24.30 53.46 54.47 50.81 59.40
(%)
Population 65 & Above 3.50 3.01 1.80 4.02 2.77 2.52 2.70
(%)
Age Dependency ratio 88.34 100.83 114.00 87.07 83.58 96.79 68.40
Literacy Ratio (10+) 43.92 35.41 17.42 46.56 47.29 24.83 72.40
Male   54.81 51.39 29.51 57.20 54.50 34.03 80.64
Female 32.02 18.82 3.00 35.10 34.78 14.09 62.39
Enrollment Ratio (5-24) 35.98 31.46 - 39.38 32.78 23.53 57.50
Male    41.19 40.99 - 43.83 37.35 29.49 57.70
Female 30.35 21.30 - 34.63 27.70 60.40 57.30
Economically Active
22.24 19.41 - 22.55 22.75 24.05 23.00
Population (%)
Labor Force Participation
31.98 29.09 - 31.98 32.73 36.45 30.68
Rate (10+)
Un-employment Rate 19.68 26.83 - 19.10 14.43 33.48 15.70
Disabled Population (%) 2.54 2.12 - 2.48 3.05 2.23 1.05
SOCIAL CLASS CLASSIFICATION:

The socio-economic class of Urban Pakistan has been divided into in to 7

classes:
 
SEC Proportion in Urban Pakistan (%)
A1 2.8
A2 3.8
B 10.0
C 18.5
D 21.6
E1 19.4
 E2 23.9

Urban Sind appears to be relatively better-off province in comparison to the

other three. Amongst the metros Karachi /Islamabad / Lahore appears to be
housing a greater percentage of upper socio-economic status households.
The variable which decides the SEC classification are;
• Occupation of the Chief earner
• Education of the Chief earner 

These two variables best explain and predict the consumption, income and
durable ownership of any household.
A1 Class:

Most educatedHighly educated and affluent group,group in urban Pakistan.

Chiefchief earner in this class areearners in this class are professionals,
businessmen and technocrats. The class is the heaviest consumer of packaged
goods and media. with Greater per capita income and smaller average
household size. Average monthly stated income is above Rs. 500,000.
A2 Class:

A majority of the chief earners are employed. Called the eEducated and employed
class of urban Pakistan. Very particular and brand conscious, Penetration of all
entertainment and necessary durable is high. Bank account ownership of the
chief earners and housewives is relatively. Housewives in this class are
reasonably well-educated. All types of Media consumption are high. Income
ranges from Rs. 100,000 to Rs. 500,000.

B Class:
Is This classa class, which exhibits the characteristics of an upper-middle class.
Majority of chief earners have college education i.aree. Ggraduates andwho are
arbusine businessmen or and executives. On an average, there are two earning
members in aone house.hold in each SEC. Iincome ranges is from Rs. 50,000 to
Rs. 100,000.
Target Market
and
Market Segmentation
MARKET SEGMENTATION AND
TARGET
Target Market:
Our target market is males and females age 25 yrs and above of upper & upper
middle class who are non users or brand switchers. In addition to them we
also plan to target Clubs, Hotels, Airlines and Consulates. We believe that our
main market is the customers who are frequent users of tea, hence focusing the
customers who are non users would automatically attract the regular users.
Customer Profile:
These are status oriented, outgoing and working individuals who like to prefer
stylish and quality products and extremely high on taste and are ambitious..
They are professionals or executives who make the decision themselves. They
use tea in morning, day and evening3-5 times a day. The usage rate is very high.
Convenience:
There is a growing segment of consumer that is searching for convenient
products (tea bags for working) that suit their busy life styles. Their fast paced
working and family life implies that consumption moments will involve less
planned, less formal but more frequent and occur in more different locations.
Our customers choose among tea brands based upon quality, convenience,
and to a lesser extent, price. Although consumers may differentiate brands
based on freshness and aroma, to our knowledge few significant competitors
are focusing on these two aspects. The key benefit of freshness and the
perishable nature of tea are being largely overlooked.
Our marketing strategies are designed to appeal to a customer base that falls
within one of the most economically favorable demographic groups in
Pakistan.. We believe our customers tend to be over 25 years and above in age,
well-educated with an average household income of over Rs.40, 000 per
month. Our customers are located in the selected metropolitan areas of
Pakistan.
Segmentation

We have divided the market into the following segments:

The Busy bees:

They are the highly busy professionals and students who want convenient in
the products. For them tea bags are the best.

The Stylo:
They are the people with more resources, emphasize on quality and stylish
looking products. They are adventuresome and like to try new products. Age
normally ranges b/w 20 to 30 years. We are taking convenient packs out hard
boxes and tins for them.

The Trial Chunk:

These are the middle income group who are aspiring to be like the upper
class. They try the small versions of premium brands. For them we have come
up with 200 gm soft pack.

The Established:
These are educated, sophisticated, well off people of age 35 and above and
prefer established and quality brands. They are very conscious about their
tea, oil, and tooth paste and cigarette brands etc. Brand loyalty is the highest
among them. For them tin packs with appealing packing is appropriate in all
variety.
 Marketing
Strategy
MARKETING STRATEGY
MARKETING STRATEGY:

Our marketing strategy will accomplish two things: first to make the
customers aware of Majesty’s presence in the market and second to educate
people as to what Majesty has that others don’t. The marketing budget will
not exceed 215% of our gross annual sales.
Appeal to the customers will be done through:

 Heavy advertisements in the initial phase.

 Banners and flyers in the selected retail outlets


 Hoardings and bill boards

 Ads in local newspapers and magazines

 Review by a journalist in The Dawn Magazine of Sunday.

 Tea dispensers in offices, airport, shopping malls and hospitals.

Growth Strategy:

Because Majesty is a new entry, we will have to promote it as a premium

brand with strong heritage and aroma. Our sales forecast depends on
establishing a loyal customer base whothat drink tea regularly and prefer
quality. We will expand our presence in specialty stores, super markets and
super stores. We will expand the availability of our brand through a
controlled network of distribution to such stores.

We will deliver pre-packaged tea to local distributors who specialize in items

with limited shelf life and visit stores on a daily or frequent basis to deliver
products and restock shelves. We will supply our distributor partners with a
branded free-standing rack for placement at the stores. We are targeting
placement of the rack in or near the bakery section (in Makro) or food section
in other stores to avoid competing for shelf space in the crowded tea aisle and
to reinforce our freshness positioning.
Tea Tasting PLATES:

Every week we will offer our tea as a ‘tasting’ at different locations. These
locations will be A and B class. Four to five small cups labeled with Majesty
with appropriate cup cakes accompaniments. These plates will allow
customers to try our tea without committing to a full jar. These tasting will be
priced at Rs. 15.

Special Events:
In addition to our weekly tasting, Majesty will offer customers sponsoring
events like MovieCricket Matches, bridal show, and book fairs and painting
exhibition.
Marketing Mix
Product Promotion
Price Packaging
MARKETING MIX
 I. Product
II.
Brand name:

The brand name for the tea has been suggested as ‘MAJESTY “’
, which emphasizes on the premium image of the brand.

Tagline:
Our tag line goes as below. It will appear in our print ads, TVCs, Billboards and
Radio.
‘Special Moments, Special
TeaA Brand for the Stars’
UNIQUE Selling proposition:
The USP of Majesty is its ‘aroma and raw pieces’ of tea that will are reserved
for special people to make them feel the achievement of their ambitions and
goals, hence finding themselves amongst the starstheir moments special.

.Positioning STATEMENT::
Majesty will be positioned as a premium tea brand that is for a distinguished
few and refreshes mind and soul.
III. Packaging:
Packing material for tea consists of Master /Outer Carton,
MetallizedMetalized Liner (foil used inside the pack), Aactual package to cover
the tea (inner pack) and Bundlingbundling sheets used in the outer cartons.

Packaging:
The packaging of majesty tea has been very carefully designed keeping in
mind the esthetic value, principles of packaging and preservation of aroma
and taste of the tea.

We have followed a focus strategy in branding and packaging of our product.

The distinct dark green color with majesty written in golden stands out
among competitive brands. Green and golden colors look very elegant and
blend together beautifully withstanding the contrast. Majesty comes in
different sizes and pickings,SKUs, tin packs, both soft & hard in convenience
packs and tea bags. Intense care was taken to make sure consistency must
remain in the packaging, keeping in mind the visibility and recall factors.

The tin convenient packs are launched specifically to give our product a
premium brand image, ensuring the consumers of the tea, traditional rich
taste and aroma which are the hallmark of sub-continental tea drinking
heritage. An aluminum foil covers the inside of the packs to further preserve the
freshness and aroma of the tea. On the cover, it would be attractively decorated in
green and golden which would be made easy to carry, giving customers an added
relief for transportation

Tin packs are round-shaped with tightening lid, which can be opened and closed
quite easily. An aluminum foil covers the inside of the tin packs to further preserve
the freshness and aroma of the tea.
Tin packs come in 1 kg and 500 gm packs.

The normal hard card board and soft aluminum foil packs come in different sizes
ranging from 1kg family pack (which only comes in soft pack) to 500 gm pack,
and 200gm pack to 125 gm pack.
100 and 50 tea bags packs will be launched simultaneously. The packing will be
normal boxed shape like all competitive brands, but with distinct color and
brand name of majesty.

We are also planning to launch special edition tin packs of 100 tea bags to grace the special
occasions such as Eid. Besides we will give these packs as our promotional gift to different
organizations.
SKUs:

Packaging Size’se
1 Kkilo
Convenient TIN
 500 gmsGrams

PPacks 200 Ggrams

125 Grams
Soft Packs 1 kilo

500 gms
200 gms

125 gms
 100 Ppieces

Tea Bags
50 Ppieces
IV. Price

V.
VI. PRICE
Pricing Strategy

Considering the fact that the tea is a product whose industry is in the maturity
stage the launch of Majesty would have to be done such that the targets
realize the premium quality of the product. The Target that we have deduced
for ourselves would be met with a market penetration strategy.
What we plan to do is the pricing of different SKU’s with different
margins since the packaging of tin packs are costing high and they are
targeted to the A class in the socio- economic class we will follow the
rapid price skimming strategy.By segmenting the mass we hope that
the price can be controlled. Since the price competition is severe here in
this industry this segmentation would offer a degree of protection.

Rapid Price Skimming Strategy

The high price of the tin packs, would create an exclusive image of the
brand that is offering premium quality tea and a packaging that retains
the freshness and aroma of the tea. With the high level of promotion we
would take a frim step in the tea industry which is already so
cluttered.The promotional plan is discussed further in the report.
Market Penetration Strategy
The tea bags and the softthe convenient packs that are already stuck in the
price wars would have to be introduced with a price that at least encourages
trial of our product. This trial would also be supported by our promotions.
The pricing would be done on the basis of market competitive prices, which
atleast leads to the position which would let the brand stand amongst all.

Once the product is accepted by the target customer, price revision

should be brought into focus. of the soft pack SKU’s and the box of Tea
bags with 100 and 50 pieces would be priced competitive prices as
compared to the market prices.

List price:
The price of various SKUs is given below. The pricing strategy followed is
Product form pricing in which different SKUs will be priced differently but
not proportionately to their costs.

Packaging Size Sales Price

(Rupees)
TIN Packs 1 kilo 270
 500gms 125
200gms 65
Soft Packs 1 kilo 240
500 gms 125

200 gms 150

125 gms 64
 Tea Bags 100 pieces 150

50 pieces 85

Packaging Size Price

 360
1 kilo
Convenient 500 gms 185

Packs 200 gms 75

125 gms 50
200
100 pieces
Tea Bags 120
50 pieces
Pricing Policy

Since we have segmented our product SKUs fror different Social economic class
we have decided with our financial department that we will follow a different
pricing policy for Convenient packs and the tin packages and that fro the teabags
and the soft packs. Although, the raw material and the per kg cost would remain
the same it is the margin that would differ and the cost of packaging and the
kind of promotion that would be conducted too.
 Cost-Plus Pricing

This is the approach in which we would add a certain mark-up. The mark-
up that we have decided after the per packet cost calculation and after
doing an analysis of some of the companiescompany’s profit margin is 38-
410 %. The cost that we are going to take in this formula would be the per
unit cost of production (taking in to consideration of the fixed cost and the
variable cost for each product). We would market our convenient packs on
this basis.

 Market- Based Pricing

After having determined the “market”, the price of the brand is to give a
better feel of the premium quality tea that we are offering. We are making
a conscious decision of charging higher than the market average for the
Tea Bags, Tin packs to demonstrate quality and come as a branded label
that is not yet introduced here in, Pakistan.
Discount

The retailers will be given a 42 % discount on the purchase of more than at

least 100 kg and 4 % for the purchase of more than 200 kgs 45% of the tea that
is supplied by them to the final customers. Incentives regarding this will be
given to the intermediaries to push the product, which would include the
target based sales discount and bonuses
VII. III. PLACE:
Distribution Network:
The distribution will be done in the urban cities of Pakistan i.e. Karachi,
Lahore, Islamabad and Rawalpindi etc. The companies mobile vans will go to
the A and B+ retail outlets on twicehrice a week basis. These retailersfirms
places their order or demand to the head office on weekly basis, and then head
office put forward this demand order to the regional warehouse which
distributes products to the requesting retailersed firm. The inventory level and
sales requirement will show the amount of tea packets required. The
distribution process is as follows.

DISTRIBUTION
PLANNING (HEAD
OFFICE)
DISTRIBUTORS
S
RETAILERS WHOLE

SEALERS
CUSTORMERS
Motivating the channel members:
We will give 4% margin to the distributors. Other incentives include trade
offers. Over the long term we will offer credit terms that are competitive or
better, both in length and method of payments, such as open accountcredit
account for 660 days or longer. (4/30, n/60)

Evaluating distributors:
The distributor should delivers agreed targets and has excellent market
coverage. The sales will be evaluated over time by measuring ratios of our
sales with competitor sales, matching sales against past performance and
monitoring inventory turnover ratios.

Logistics:
Lead Time:
The Lead time will be three weeks to reach from the Sri Llanka. It will include
the entire process from ordering till the delivery of goods.

Shipments of the Imported Tea to the Head Office:

The consignment of tea coming from Sri Lanka will come in cargo ships. The
suppliers of the tea deliver the tea directly to the head office. Karachi Tea
Factory will be located near the sSea Pport so the distance from the port to the
factory is reduced. There will be an outside clearance department that will
deal with the customs clearance issues.

The containers and trucks will be used for transportation from the factory to
distributors, wholesalers and retailers.
Packing Material purchased from Suppliers.

The local suppliers of packing material directly deliver the goods to the both
factoriesfactory.

Dispatching of finished goods to the regional Depots

Following types of vehicles are used for the dispatch of finished goods to the
regional warehouses:

 20 feet containers which can carry up to 1250cartons per trip

 40 feet containers capable of carrying 2300 cartons per trip
Warehousing:
Total warehouse capacity of is 1530 tons in Karachi near Korangi that
provides storage conditions and systems to protect against moisture, climatic
conditions, physical damage, pests or contamination from internal and
external sources.
VIII.
Promotion
IX. PROMOTION:
PROMOTION STRATEGY:
We plan to have two phases for the launch of the brand. The first phase is the
launching and establishment of brand name. The second phase includes brand
building efforts.
 Phase iI:

Phase one will include the maximum visibility with the help of media
campaign and BTL activities. The launch of phase I will be of 3 months in
which 60% of the total budget will be spent. The post launch phase will
continue for 9 months in which the remaining 40% of the budget will be spent.
VEHICLESMediums:
The vehicles mediums used will be
 Print
 Electronic
  BTL
 Public Relations

Print:
We plan to print the ads in the following news papers and magazines.
Newspapers:

 27 x 4Quarter page ads in The Dawn on page 23 on Monday,

Wednesday, and Friday. Cost is Rs. 257040 1,500,000. (250,000 x 2 x 3)
 27 x 4 Quarter page ads in Tthe Dawn on page 12 on Sunday. Cost is Rs.
317520.750,000 (250,000 x 3)
 Quarter page ads in The News on page 1 on Tuesday and Thursday. Cost is
Rs. 750,000 (125,000 x 2 x 3)
 27 x 4 Quarter page ads in Business Recorder on Page 12 on Monday,
Wednesday and Friday. Cost is Rs. 132300. 1,500,000. (250,000 x 2 x 3)
  27 x 4 in Jang on Monday, Wednesday and Friday on the back. Cost is Rs.
267300.

Magazines:
Specific Targeted Monthlies and Quarterlies will be chosen for the
Launch and Post Launch. The will also include a free tea bag to induce trial in
the post launch phase. These ads will be full page colored ones.

 Aurora will cost around Rs. 680,000. (20,000 x 3)

 Herald will cost Rs. 75,000 (25,000 x 3)36000.
  Newsline will cost Rs. 54,000 (18,000 x 3)33000.
 SHE will cost Rs. 45,000 (15,000 x 3)

 SHE will cost Rs. 27000.

 Synergyzer will cost Rs. 70,000
Outdoor:
Hoardings and Pena flex boards of size 60’ x 20’ will be placed in the
following area.60’ x 20’ in
 DHA Korangi Road
 North Nazimabad 5 Star Cchowrangi near the signal.
 KDA scheme 33
 Karsaz Road
 I.I. Chudrigar Road.
 Bahadurabad Chowrangi
 
Three months cost will be Rs.1, 875,000 ((1,500,000/12) x 3 x 5)

90’ by 30’ billboards will be placed at

  FTC Flyover
 Clifton Bridge
 Shahra-e-Faisal
For three months, these would cost 1,500,000 ((2,000,000/12) x 3 x 3)
Electronic:

Television:

4530 sec TVC TVC will be run on the following channels during the times
submitted in the front.:
 Channel Time Cost
AAJ TV 19:15-19:30 Rs 50,000
ARY one 8 pm to 10pm20:15- Rs 3,1540,000 (35,000 x 2 x
world 20:30 45)
Hum TV 18:00-18:15 Rs 30,000
ARY digital 19:45-20:00 Rs 60,000
MasalaCable 10 pm to 12 mid Rs 1,275,000 (425,000 x
TV night20:30-20:45 3)70,000
Zauq Weekly show Rs. 2,000,000
Sponsored for a
 Month

Radio:
Early Mmorning Ddrive Ttime Sshows. 2530 sec Radio Spots for an early
morning breakfast Tea on FM 10189 and 91. Costing Rs 180,000 (2,000 x 2 x
45)
Public relations:
The public relationship activities will include
 Advertorials and press releases regarding the benefits of tea drinking,
publicity of the upcoming Majesty through press relations and news
 releases in which the consumers will be educated about the types of tea,
the characteristics of leaf tea and the tea process in Sri-Lanka.
 We also plan to sponsor the any upcoming cricket series in Pakistanblock
buster movie ‘Om Shanti Om’ in Cineplex and Capri Cinema, with tea
break during intermission that will have hi-tea where Majesty will be served
 in the mugs printed with the brand name.. Placing the Tea stall at the
stadiums.

Below the line activities

Retail Outlets:
 Shops will have service racks, mobiles, buntings and foot step that will
lead to Majesty’s umbrella stand where the push girl will present the
customers with 100 gm soft pack for trial.
 Give away will include tea cup, tray with Majesty’s name printed on it,
tea cozy and spoons.

Lucky draws will be held in which the winners will win exclusive tea set.
POS/ POP Materials:
 Banners of Majesty will be placed in shops.
 Majesty’s tags on hotel occupancy doorknobs.
 Majesty’s branded ‘Tea Break’ mini shops will be placed in Clubs,
Consulates, Karachi Gym Khana, Airport and shopping malls like Forum,
Gulf, ZamZama, Dolmen Centre and Al Madina Centre Hyderi for inducing
trials and maximizing visibility.
 Majesty’s tents will also be placed at Stadium for the up coming cricket
matches.
 Tea dispensers for free trials will be placed in offices, book fairs of
Oxford, Liberty books and book fair held at Frere Hall, Art counsel
and Hospitals like AKU, OMI, Mid South City and Ziauddin Oncology
centre.
  Free samples of 100 gm will be distributed at I.I. Chundrigar
road, Tariq road and Millennium Mall.

Tea launch:
We plan to have a Tea Festival in which we will launch Majesty. The experts
will tell about the quality and characteristics of tea, the strong heritage of Sri-
Lanka, tea drinking methods and brochures will be given telling people how
to prepare tea. There will also be Tea tasters available through which people
can taste our product prepared on spot.
different flavors of Tea that are Oregon, Darjeeling, Cardimom and Green Tea.

Total below the line activities would be summed up with a cost of Rs. 1,000,000

Phase II:
The second phase includes brand building efforts through the following
mechanisms.

Brand Building efforts:

Vehicles to be used will be:
  PRINT
 ELECTRONIC
 BTL

Print
Newspapers:
DAWN / Business Recorder and Jang - Quarter Page follow up Ads. Rs
2,250,000

Television
 20 15 Sec’s brand based adoption TVC TVCs on the above various
mentioned channels. Costing Rs. 2,000,000.

Radio
15 sec Radio Spots for an early morning breakfast Tea & Evening Tea,
for Rs. 500,000
TEA TROLLEY:
Exclusively Branded Tea Trolleys for Majesty specially made to
serve in Business meetings, Hotel Suites, Clubs, Consulates and
Hi Tea will also be available.
Media Wweightage:

Electronic : 405%
 TV 9390%

Radio 710%

Print : 3430%
 Newspapers 9660%

Magazines 40%

Othersut door : 2130%

BTL 1522%

POS / Outdoor 785%

Events & Sponsorships 10%

Ad Concept:
We will use emotional and slice of life appeal in which different special
moments will be shown. The ad will be a 3045 minute seconds long TVC.TVC.
The ad concept is given as below:

SHOT 1:
Family Re-union: Student before exam:
The guy comes home from abroad; he is greeted by the family members. His sister
and brothers all encircle him. He appears to be tired then his youngest sister brings
in Majesty. The guy will be shown to be indulged in the aroma and takes a sip and
feels fresh.
The statement appears is ‘Bondage of love’A boy of aged 20-22, would be shown
at the late hours of night and feeling very drowsy but eager to study for exams. His
Mom comes in with a cup of MAJESTY and presents to the boy with
encouragement for more hard work. Next scene the same boy would be flying in
the air with the degree/certificate in hand. Tag line appears “Taste the Success”

SHOT 2:
Campus:Executive before Presentation:
A group of friends will be shown. Some will be chatting, some studying, some will
be teasing each other. The cup of Majesty will be placed near them and they will
be shown having a sip in between the conversation and passing on the cup of tea to
a student who is sitting a little far from them. One of the students from the group
invites him to join and gives him Majesty cup
The statement appears will be ‘Pass on the sweetness’An executive on the chair
feeling so tired and lazy and still finalizing the presentation would appear next. A
colleague comes in with the cup of MAJESTY. Giving the freshest looks, he
completes the presentation and goes in the board room. All top level management
applauds him and he feels proud. Tag Line appears “Pass on the sweetness”
Shot 3:
The Family:
Executive Board:
A young professional female will be shown giving presentation to a foreign
delegation. The delegation seems to appear tired. She hints the secretary who
brings in tea. The delegation has the tea and fresh looks appear on their faces. In
the end the deal is shown to be closed over the cup of Majesty.
The statement appears will be ‘Taste the Success’
Last scene, Wife comes in late from work. A child and husband notice it, goes into
the kitchen, prepares a cup of MAJESTY and presents to the lady. The wife
happily goes to the kitchen and made food for the family. On the dining table,
every one praises her and enjoys the meal. Tag line appears “Indulge the aroma
in life”

SHOT 4:
A couple:
The rain is going on. The husband is sitting idly in front of TV switching
channels. He has expressions of boredom on his face. His wife notices this and
goes to the kitchen where she is shown to prepare Majesty. The aroma of tea
will activate the guy and he is shown to be breathing the aroma. The wife
brings in the tea and they both will be shown to enjoy their cups of tea.
The statement will appear as ‘Indulge in the aroma of Life’
The last tagline will appear as ‘Special moments, special teaA Brand for the
Stars’. In the background the jingle will be running through outthroughout the
ad

The making of this ad would cost Rs. 2,000,000.

 Bud
BU get
ing DGETIN G
Budgeting will be done on the basis of the sales department feedback and
market feedback that will be in the form of the gap analysis. Gap is
calculated by the difference in what Majesty is selling and the amount the
competitor is selling. This will be done so that if there are certain trendis
certain trend we would identify it and expand our mark into other cities of
Pakistan too. Plans will be developed before the beginning of the year so
that each aspect of the production i.e. the financial, marketing and
operations needs may be planned.
 Performa Income Statement
  Rupees
  ‘000 ‘000
Sales 151,460
   
Cost of Goods Sold  
Raw material 44,621  
Packaging 4,661  
Other Manufacturing Overhead 1,550  
Direct Labor 7,430  
Machine and Maintenance 4,380  
  62,642
Gross Profit 88,818
   
Admin &Selling Expenses  
Advertising exp 22,719  
Other Admin & Selling Expense 2,500  
Operating Expenses 7,350  
Depreciation Expense 4,900  
  37,469
EBIT 51,349
Interest Expenses 28,100
Profit before taxes 23,249
Taxes 3,487
Net Income   19,762
  Pro Forma Balance Sheet  (Rupees)
Current assets       900,000
Fixed Assets       4,500,000
Total Assets       5,400,000
       
Current Liabilities       3,00,000
Long-Term Debt       2,700,000
Total Debt       3,000,000
Total Equity       2,400,000
Sales Forecasts:
Annual Sales estimate will be revised every month according to demand every
month. The sales estimates are made on the basis of:
 Consumer demands
 Wholesaler’s orders
  Promotional Schemes

We have done a sales forecast of the different SKU’s andon the basis is that of
the research that on average the tea industry has growth rate of 15% . %. We
have estimated a growth of at least 4% in the start and then the percentage
rise would be in an arithmetic progression series.
We wish MAJESTY a long and prosperous
LIFE
 140000000

120000000
“Find 100000000

80000000
a Star 60000000

40000000

20000000

0
in you, with MAJESTY”