Sri Lanka Institute of Information Technology

Marketing Plan

PARGS Fresh Juice

W.L.S.L.Kumarathilake DIS-09M5-2012

J.M.P.M.Jayasundhara DIS-09M5-2040

R.P.Shanmuganathan DIS-09M5-2044

R.P.A.Sulochana DIS-09M5-2047

G.L.Nilangaratne DIS-09M5-2057

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 Content

1. Executive Summary

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 2. Introduction
3. Objectives
4. Situational Analysis
5. Consumer Information
6. Marketing Strategies
6.1 Market Segmentation
6.2 Product
6.3 Price
6.4 Distribution
6.5 Promotion

Executive summery

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The people in Sri Lanka are tropical and have accorded a favorable reception to thirst quencher
such as fruit drink and other soft drinks. We the PARGS fruit drink marketers ready to serve
fresh fruit drink beverage prepared from clarified fresh fruits such as Orange, Lemon, Mango,
Pineapple, and Wood apple, Grape, Papaya and Mixed Fruit. We are ready to serve a nutritious
and a refreshing drink. The nutritive value of real fruit juice is far greater than that of synthetic
products, which are being bottled and sold in large quantities throughout the younger generation.
If a real fruit juice could be substituted for these synthetic preparations, our product will have a
quicker growth in the market.

Obviously we drink water when we are in thirst. People have a narrowest thinking that having
juice for thirst is luxurious. But now the changes arises slowly mainly in the urban and the semi
urban areas, where the population is getting more health conscious. People are realizing the
important nutrient values of fruit and making them as a part of their daily diet.

There are two main brands in segmenting the drinks one is, carbonated drinks and the other is
non carbonated drinks. Already the company that we have working under the advice of has
launched so many carbonated soft drinks such as cream soda, club soda, ginger beer and apple
soda. Now we are going to launch a non carbonated fresh fruit drinks with the same brand name
in the existing market. In the recent times we have seen the entries of some international brands
like Berry (Australia), Tropicana (India) with the intension to strengthen their holdings in our
country and grow with the world market

Introduction

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History of Ceylon Cold Stores

Ceylon Cold Stores had its modest beginning in 1866 as the Ceylon Ice Company, which
imported and used the country's first ice making machine.

Aerated water was included in the Company's production by a German Engineer, Arthur Von
Possner, who was the firm's Manager at the time. It was his brainwave, too, to stamp the
distinctive "Elephant" trademark on the bottles.

The production had two varieties of carbonated drinks, Soda and Lemonade, both of which
compared favorably in international fairs in Melbourne and Calcutta where they won awards.

Having consolidated that position, the firm moved on in 1925, to build cold storage for frozen
products of all kinds. Shortly after in 1932, Ceylon Creameries Limited was acquired to produce
and distribute reconstituted fresh milk and ice cream. Carbon dioxide and dry ice were added to
the list of products with a carbonic acid gas plant being installed in 1935. With the purchase of
bread making machine and a modern oven, bread was baked and sold by the Company. In 1941,
New Colombo Ice Company changed its name to Ceylon Cold Stores Limited. Ceylon Cold
Stores came under the umbrella of John Keels Holdings Limited with the acquisition of the
Whittalls Group in 1991

In 1998 the addition of a modern bottling plant enhanced the production capacity considerably at
the Kaduwela factory. In 2007 John Keels reinvested close to one billion rupees in state of the art
factory line to improve its services to the market demands.

Products of Elephant House

Soft Drinks

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Ginger beer

Lemonade

Apple Soda

Necto

Soda

Orange Barly

Cream Soda

Orange Crush

Ice Cream

Vanilla

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Strawberry
Chocolate
Fruit And Nut
Ripple
Karutha Kolumban,
Jugger-nut
Cookie Cream,Toffee Caramel
Coffee Grand
Manga Batta

Jumbo Jolly

Wonder Cone

Wonder Bar

Objective of the Elephant House

Deliver pleasure and nutrition throughout
peoples lives, through excisting and superior
products, whenever and whenever they choose to eat and drink.

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Situation Analysis
In order to profitably satisfy customer needs, the firm first must understand its external
and internal situation, including the customer, the market environment, and the firm’s own
capabilities. Furthermore, it needs to forecast trends in the dynamic environment in which it
operates.

SWOT analysis is a simple framework for generating strategic alternatives from a

situation analysis. It is applicable to either the corporate level or business unit level and

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frequently appears in marketing plans. SWOT stands for Strengths, Weaknesses, Opportunities,
and Threats.

Situation Analysis

Internal Analysis External Analysis

Strengths Weaknesses Opportunities Threats

This internal and external situation analysis can produce a large amount of information,
much of which may not be highly relevant. The SWOT analysis can serve as an interpretative
filter to reduce the information to a manageable quantity of key issues.

Considering about our marketing project on the “PARGS” the fruit drink, we also
categorized the related information under SWOT analysis, in situation analysis.

 Under the relevant strengths the Brand name “Elephant house” is outstanding.
Because we could face our competitors successfully and effectively. Elephant
house is a company which has been serving the Sri Lankans, since 1866. So the
entrance to the market is bit easy due to the goodwill of the company.

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  Another one important thing that we should mention. There’s less initial capital
investment on our entrance. Because we start our journey under a well-known
financially profitable company. Dealing with the capital, it is enough to invest
only in the production. Other necessary facilities will be provided by the Ceylon
Cold Stores (CCS).

 The flavor that we are going to contain is the flavor that is common for all
elephant house drinks. So, there is another advantage. The targeted marketing
group always quenches their thirst from the same flavor. That means the youth
really like this original flavor in order to fulfill their requirements.

So, as well as our strengths we should mention the weaknesses in this product re launching
process. Sometimes the workers involving in our productions may not have a proper knowledge
on what we prefer to obtain from them and the production capabilities. Therefore we should
overcome that problem with the Elephant House’s assistance. This is a major opportunity to train
our own employees under the CCS supervision.

Concerning about the external factors we could categorize our strengths and opportunities
in a beneficial manner under PESTEL factor.

 There are benefits regarding the economy as well. We could provide our soft
drinks in a low price and under low taxations due to the low unit cost.

 The product ingredients are very user friendly and they don’t provide any harmful
effect on any soft drink item. Changes in social trends can impact on the demand
for a firm's products and the availability and willingness of individuals to work.  It
is essential to mention that, our production has a vast classification. So it could be

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 used in different occasions as well. That means we could find a market inside the
social culture other than considering only the youth.

 To obtain lot of benefits there need to have a proper environment. Environmental

factors include the weather and climate change. Changes in temperature can
impact on many industries including farming, tourism and insurance. With major
climate changes occurring due to global warming and with greater environmental
awareness this external factor is becoming a significant issue to consider. In our
case the transportation will be much easier, due to the location of production
houses and the farming lands. So the transportation is much easier due to low
distance between the market and the production houses.

 When considering about the legal environment we got lot of benefits regarding its
certifications.

 The Halaal certification which has now been registered with the
Intellectual Property Division had awarded by the Elephant house
company.

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 Ceylon Cold Stores Ltd (Elephant House ), which received its
initial ISO Certification in 2000, in keeping with international
standards updated its certification level to the latest version which
is the ISO 9001 : 2000 certification.

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  The unit cost is low as mentioned above, so the pricing will be attractive for the
consumers. We could provide the products below the rates of the competitors, and
we hope to give our products to the customers in an attractive psychological price
that is more profitable.

 We could easily use the techniques the CCS company prevalently using, and it
will reduce our wastages and as well as spoiling. So, hope to use the machinery in
a convenient way with their technology to provide a better service to the
consumers.

 This product launching will be done under the “Elephant House” brand name. So,
there’s no risk in the demand of customers. Our targeted group is the “Youth”.
This series of soft drink products will serve in every aspect of their requirements.

 Nutritious fruit drink for children.

 To get chilled out, have “PARGS”….( For youngsters)

Consumer Information

Elephant House is the main soft drink distribute company in SriLanka.

In the soft drink industry there is a high demand for Elephant house because of their quality and
the company is existing from 1860’s. One of the main target market of this company is the youth
generation and the children. There is a high demand from the customers because of their brand
name.

Children are the one of main target market of the elephant house
company. The elephant house company is expanding the company customers by the advertising
and the quality of the product which they are produe. Mainly in any product the target market is
important. Before we produce the product we should clearly identify the target market. We have
identified the children as the target market and it is easy for us to relaunch our product and
because of the brand name it is easy to us to catch the market quickly.

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 The second target market of our product will be youth. Our product
will be in the high quality and we are using mainly natural ingredients for our product. These
days especially youth people does not like to drink natural things. They are always addict to the
other product which are does not good for our health. We are producing our product which is
made from the delicious and the nourishes fruits.

Since we are using the fresh fruits for our product it is more
delicious and also it is healthier with comparing with the other products in the market. Because
if the fruits our product is contains high protean and high calcium. Because of that our product
will be healthier for the children and also the old people to develop their helth.

They are maintaining a good brand name over

the years in our country. Because of this brand name the consumers
always search their products in the brand name. Because of the brand
name consumers always come to the shops and search for the the
products under the “Elephant house name”. Weather there are more
competitors in the market it is easy to re launch a new product under the
“Elephant house” brand name because the company is already exists in
the market.

There are some consumers that they are always

considering about this brand name. we can easily catch that kind of
people because we are producing our product in the existing market
with good brand name. It is good advantage to us to develop our product
through this company because they are already having a number of
consumers all around the world and we can easily introduce to the existing market of the
elephant house. It is much easy to introduce our product through a new brand name rather than
creating new market for our product.

The consumer demand will be exactly higher for our product because
of the brand name and the quality of our product. Especially when we are intruding a product the
target market and the brand name is more important. The whole process of our product will be
decided with the target market.

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Marketing Strategy

The marketing strategy will emphasize the strengths of both the company and the products.
Product will position themselves as an aggressive, innovative company that supplies the market
with new, high-quality products. The product will position themselves in trade shows, within
industry publications, and the Internet, to reinforce this marketing strategy. The brochures,
letterhead, and business correspondence will further reinforce these concepts.

Marketers also recognize that it costs six times more to attract a customer than to retain one. To
that end, marketing Vending will operate under the principle that the best marketing is an
exceedingly satisfied customer.

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Marketing Objectives

 Maintain positive steady growth each month.

 Increase market penetration every quarter.
 Generate increased brand awareness quantified by reactions/ feedback of customer sat the
trade shows.

Financial Objectives

 Decrease customer acquisition costs by 1% a quarter.

 Continue to decrease variable costs through efficiencies gained from experience.
 Increase profit margins by .5% per quarter.

Target Markets

Chef Vending will market its machines to three distinct market segments:

1. End Users- Operators that have their own vending routes who wish to expand their
product selections. Included in this category are large institutional food service companies
that engage in vending operations as part of their overall food service business. 
2. Distributors- Companies that supply operators with machines and supplies for their
operations. 
3. Branded Sandwich Manufacturers and Branded Juice Companies- By working closely
with these companies, Marketer will customize the machines to meet the company's
specifications and to allow them to "brand" our machines with their products. They will either
supply the machines or sell them to their customers who will buy product supply for the
machines from these companies.

Marketers has two markets for the equipment business:

1. Restaurants and Hotels - End users who benefit from the equipment purchased. 
2. Equipment Supply Companies- These are large supply houses that offer a variety of
equipment to the food and beverage industry.

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The following Market Analysis table and chart are broken down by general market segments,
versus the specifics listed above.

Market segmentation

There has been general acceptance of the product forms in the fruit beverage market. The
consumer is basically concerned if it is a fruit juice or synthetically constituted product. Product
segmentation, therefore clearly delimited.

Under the fruit drinks the first segmentation is between the real fruit drinks and synthetic drinks.

 The real fruit drinks are based on natural fruit pulp or drinks
 The synthetic drinks are synthetic products with fruits or other flavor

Broad taste preferences could be another way to define the market. The market at the present
also segmented on the basis of fruit pulp content. For the purpose of segmentation, on the basis
of fruit pulp content market can be segmented as,

 Fruit juices with pulp content more than 80%.Brands falling in this category are Minute
Maid, Gargills etc……
 Fruit nectar with pulp content between 40% to 0%. Kist mango nectar falls under this
category.
 Fruit drinks with pulp content less than 40%. Smack and MD are the popular brands in
this category.

Segmentation could also be on the benefits that we provide to the customer.

 One benefit could be the nutrition content it gives to consumer.

 Next benefit could be the health conscious segment.
 And the final benefit could be is thirst quenching, so the other segment could be those
buying the drink or satisfying the thirst.

Marketers very often choose one or more of such segmentations to differentiate their product and
target market and accordingly plan their distribution and promotion patterns.

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The product

‘PARGS’ fruit juice is made of fresh fruits. They are rich in many vitamins, flavonoids and
minerals and also they contain a high amount of vitamin c, as much as potassium. It is important
to note that these fruits contain remarkable amount of vitamin A, C and E. vitamin c is a water-
soluble antidioxidant that has been proven to protect our body from free radicals, dramatically
proving the health of individuals who consumed it regularly against all kind of disease, from
cardiovascular problems to cancer and obesity. Vitamin E has been proven to have similar
effects, but is fat-soluble and thus is complementary to vitamin c in its functions. These fruits
contain both these vitamins in high amount, which help to protect our body against free radicals
from all fronts. We have chosen the fruits which are with most of vitamin E and fiber.

This product is actually a mix of 50% pure fruit juice, distilled water, and sugar. It has the strong,
accurate fruit flavor that we can surely hope, any of the juices can substitute our natural fruit
drink. In each bottle a possible motivation is there for placing a high visibility vitamins and
minerals across the front of the package.

This product offers an option to retail options catering to customers looking for healthy, thirst
quenching single serve options. The well designed packaging ensures that it stands out whether it
is displayed in normal shelves or chilled.

Storage is convenient, as it requires on no refrigeration. The product has a shelf life of one year
from the date of manufacture when stored at a normal temperature away from direct sunlight and
heat. The product should be kept refrigerated up on opening. ‘PARGS’ are best served chilled.

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Distribution
The distribution or reach factor is marketing mix elements that need to be monitored over a
period of time. Unlike product improvement or positioning strategies that are extremely sensitive
to customer preferences and changes, distribution level might move down on the company over a
period of time. As consumer behavior changes, competition picks up and the product moves
through its life cycle, new channels may have to be considered, evaluated and chosen.

The company elephant house pvt ltd has its PARGS fresh juice manufacturing and production.
The fruits will be brought from the own cultivations. There are specific sources like lands,
gardens. And also collected from each and every part of our country.

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The company will be moving in the first phases. In the first year we will have an aim of entering
only few major cities of Srilanka and establishing our brand with the natural fruit flavors. Initial
launch will be in the following cities.

Colombo

Kandy

Badulla

Matara

Galle

The transportation to the cities will be basically through the company vehicles. We have a hope
to select more company representatives for each region. And also we will have distributers every
in each city.

PARGS will be marketed in

Super Markets

Food cities

Cool spots

University canteens

Hotels and restaurants

Promotion
The promotions will be on two categories. One will be the sales promotion and advertising. We
will be advertising the product by

Print media

Print media will be used in the form of news papers of various languages.

Audio Visuals

Television as a media will be used to inform the qualities and benefits.

Radio

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Radio will be our key element in our media mix as its cos effective and will cover our catering
cities

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