MARKETING REPORT

1
IN THE NAME OF ALLAH THE ALMIGHTY AND THE
MOST BENEFICIENT FOR US

A REPORT ON PRODUCT DEVELOPMENT

Submitted To:
Ma’am Sarah Tariq

Submitted By:
AURORA GROUP

Submission Date:
22nd December, 2008

Preface

2
 This report is about the launching good quality products in the market fare in COMSATS
for the year 2008-2009. This report is finalized after market survey and meetings with the
different people who are already producing these kinds of products. We have searched a lot for
our product from the market. The product of our group AURORA is Russian salad, Cold cake
with coffee, Floating &decorated candles. We have analyzed many competitors which are
producing some eatable and decorated products. As we are launching for young individuals,
therefore there are many stalls in our surroundings which are producing some same kind of
products therefore we have decided that we should give something new to get some edge in the
current market.
The main purpose of working on the project is to prepare a report of innovative products.
For this purpose different methods are being observed. The Market Segmentation, New product
development strategy, Strategic management process, marketing mix, Business Analysis and
marketing plans are observed to launch the product in market. Our research is limited in our
premise COMSATS due to non-availability of resources and time.
The project report was supervised by Miss Sarah Tariq in December, 2008 and this report
is prepared by the group consisting of eleventh (11) members and submitted for kind perusal.

3
 Contents:
1 Executive Summary 04
2 Introduction 05
2.1) Brief Introduction of the Company 05
2.2) Company Name 05
2.3) Company Logo 05
2.4) Company Hierarchy 06
2.5) Vision Statement 07
2.6) Mission Statement 07
2.7) Goals 07
3 SWOT Analysis 08
4 Market Plan 10
4.1) Market Research 10
4.2) Market Segmentation 10
4.3) Target Marketing 10
4.4) Market Positioning 10
5 New Product Development 11
6 Product/ Service 14
6.1) Branding Strategy 14
7 Pricing 14

8 Place 15
9 Promotion 15
10 Review 16
10.1) Learning Experience 16
11 Appendix 16
11.1) Questionnaire 16
11.2) Income Statement 17
11.3) Promotion Material 17
11.4) Any other Supporting Material --

4
 EXECUTIVE SUMMARY

The final project is about the research and experience for launching a product in the
market and then makes a report based on the whole experience. We, the Aurora group,
has implemented our ideas in the market i.e., COMSATS.
Before the implementation, we have taken the research of the market through
questionnaires. We have collected the views and perception of student of the COMSATS
about our products. For developing the concept of our products in the mind of customers
we have carried a promotional campaign through charts, banners, and pamphlets. We
launched our products in a marketing fare held on 4th December, 2008.
In our project, we offer different decoration pieces such as floating candles and edibles such
as Russian salad, cold cake with coffee. According to our marketing strategy, we took different
price levels to sell our products. During the whole marketing fare we experienced how to deal
with customers and how to manage efficiently.

Strategy:
Our strategy to produce our products at a price in which we earn profit using cost base
approach and break-even approach.

Implementation:
We implement four P’s to sell our products and our strategy.

Response:
The response is positive as we set our strategy through proper methods and
implementation.

5
 INTRODUCTION

Brief Introduction of the Company

AURORA group has comprised of 11 members, namely:

1. Najma Kanwal ( Group Leader)

2. Samia Tariq
3. Anam Akmal
4. Uzma Pervaiz
5. Nabeel Hassan
6. Syed Jarar Ali Shah
7. M. Zaheer Hayat
8. Tariq Bin Waheed Butt
9. Qasim Ali
10. Umair Ahmad
11. M. Ismail Khan

Company Name

After the mutual consent of the group members we have selected our company
name i.e., AURORA

Company Logo

6
Company Hierarchy

 Product

 Tariq Bin Waheed Butt

 Samia Tariq
 Anum Akmal

 Price

 Qasim Ali
 Uzma Pervaiz

 Place

 Jarar Ali Shah

 Najma Kanwal
 M. Zaheer Hayyat

 Promotion

 Nabeel Hassan
 M. Ismail Khan
 M. Umair Ahmed

7
Vision
“To enlighten houses and make people fans of foods”

Mission
“To provide people the best in meal for the whole day.”

Goal
“To earn profit by making our at top sales position.”

8
 SWOT ANALYSIS
After the SWOT analysis of the company we have concluded that:

Strengths

The strengths of the company are the following:

 Quality
We have introduced the better quality of products in the market.

 Taste
We have provided delicious food products like Russian Salad and Cold
Cake.

 Reasonable prices
We offered reasonable prices of the products which can be afford by
anyone.

 Style
The designs of the product like candles were very stylish and attractive.

 Variety of Products
We have offered a variety of products like:

1. Cold cake with Coffee

2. Russian salad
3. Floating candles
4. Mehndi
 Innovative Ideas
We have come up with the innovative ideas.

Weaknesses

We have the following weaknesses:

 Limited resources
As we have limited resources to launch a new product.

 Limited budget

9
 Our major weakness is the limited budget.

Opportunities
We have the following opportunities

 Quality standards
We have the opportunity to produce good quality products.

 Position of stall
We had the stall at front of the entrance

Threats
We have the following threats

 Strong competition
The same product which we produce also competitor had.

 No sponsor
We have no sponsor so we have to bear all the cost.

Strengths –S Weakness - W

Opportunities – O Threats - T

10
 MARKET PLAN
Market Research
Before launching the product in the market we have done a market research. We have
distributed the questioners among the students of the COMSATS and collected their perception
about the product.

Market Segmentation

Marketing segmentation means to divide the market into segments according to

the needs of the customer and the nature of the product. Our company has applied the
following segmentation:

 Demographic segmentation

We have divided the market according to the age, income, gender and
lifestyle of the customers. Consumer needs and wants changes with the age.
The students usually attracted towards the good quality products with low
prices. We have offered the same such as Floating candles, Russian salad and
Cold cake with reasonable prices.

 Geographic segmentation

Geographic segmentation means to divide the market into different

geographical units such as nations, states, countries and cities etc. Our
company has decided to operate in the area of COMSATS.

Target Market

A target market consists of a set of buyers who share common needs or

characteristics that the company decides to serve. Our company has selected our target
market i.e., COMSATS. The students and the faculty members are the prospective buyers
of our products. We have applied the concentrated (niche) marketing because of limited
resources.

Market positioning

11
 To build a profitable relationship with the customers our company (AURORA)
has produced better quality products. As there were many competitors producing the
same product that we were producing, so we have to differentiate our product to attract
more customer.
NEW PRODUCT DEVELOPMENT STRATEGY

New product development is the development of the original products, product

improvements, product modifications and new brands through the firms own research-
and-development efforts. We, the AURORA group, are aimed at the development of new
product.

New-Product Development Process

For the development of new product we have to understand our customers,

markets and competitors. It can be done through strong new-product planning and
process.
It involves eight steps as follows:
 Idea generation
 Idea screening
 Concept development and testing
 Marketing strategy development
 Business analysis
 Product development
 Test marketing
 Commercialization
We have implemented all these steps on our new product. With reference to each group
member responsible for the concerned department following are the details of each step.

Idea Generation

AURORA has generated four different ideas through internal idea sources. The
ideas were to introduce the following products followed by each idea generator.

◊ Russian salad (Tariq Bin Waheed Butt)

◊ Cold cake with coffee (Anam Akmal)
◊ Floating candles (Samia Tariq)
◊ Decorated lamps (Najma Kanwal)

Idea Screening

By Mutual consent of the group,

after making some rough estimates of market size, product price, development time,
manufacturing costs and rate of return we have selected three ideas i.e.,
◊ Russian salad

12
 ◊ Cold cake with coffee
◊ Floating candles

Concept Development and Testing

To get a positive response from the customers we have to develop the product
concept i.e., a detailed version of the new-product idea in meaningful consumer terms.
We have done it through questioners from our targeted customers which were the
university students. We also tested our product by having samples and consumed
ourselves. Through questioners we obtained details about the purchasing power, interest
of the consumers, their willingness to pay and idea about the pricing of our products. One
copy of our questioner is attached with the report for reference.

Response:
◊ Russian salad 55%
◊ Cold cake 45%
◊ Floating candles 68%
◊ Decorated lamps 32%
By Nabeel Hassan, M.Zaheer Hayat

Marketing Strategy Development

The target market of AURORA group is the COMSATS Institute of Information

Technology. We advertised our products through different ways:
 Banners
 Charts
 Pamphlets
 Individual marketing
By Umair, Ismail, and Anam
 Budgeting:
We collected Rs.1000 from each group member to meet the
manufacturing cost, promotion campaign, stall expense etc.

 Pricing:

Cold cake with coffee:

Small Rs.30
Median Rs.45
Large Rs.60
Russian Salad:
Small Rs.30
Medium Rs.50
Large Rs.70
Floating Candles:

13
 Price will be charged according to the quality and size of candles
ranging from Rs.50 to Rs.150.
By Qasim Ali
 Profit Goal:
We have set our profit ratio 20% of the actual cost.

Business Analysis

The detail of the expenses is given below with respect to product and concerned
department.

Product Floating Russian salad Cold cake Total

candles with coffee
Manufacturing 2500 2000 2000 6500
cost
Promotion 400 300 300 1000
expense
Freight expense 100 150 150 400
Rent expense 350 350 350 1050
Other expense 300 100 100 500
Total 3650 2900 2900 9450

The remaining Rs1550 are kept as reserves for contingent expense.

By Uzma Pervaiz

Product Development

The products were manufactured by the following persons;

Floating Candles Samia Tariq

Russian Salad Tariq Bin Waheed Butt
Cold cake and Coffee Anam Akmal

14
 PRODUCT/ SERVICE

Product is the key element in the overall market offering. Our company has
designed the product after having a research about the customers’ needs and interest
towards the product. We have offered the following products:

 Eatables
Russian salad
Cold cake with coffee

 Accessories
Floating candles
Candles
Mehndi

Branding Strategy

Brands are the powerful assets that must be carefully developed and managed. It
represents the consumers’ perceptions and feelings about the product and its
performance. Our company has applied the following branding strategies for building and
managing brands:
 Brand Equity
The real value of a strong brand is its power to capture consumer
preference and loyalty. AURORA has given the real value to its brand by
providing better quality of the products to the customers.

PRICING
Cold cake with coffee:
Small Rs.30
Median Rs.45
Large Rs.60
Russian Salad:
Small Rs.30
Medium Rs.50
Large Rs.70
Floating Candles:
Price will be charged according to the quality and size of candles
ranging from Rs.50 to Rs.150.

15
 PLACE

AURORA has introduced its products in the Marketing Fair held on the 4th
December, 2008 in COMSATS, Institute of Information Technology. We offered our
products to our targeted customers who were the students and the faculty members. The
plus point for our company was that the place we get for our stall was right in front of the
entrance gate. So the customer first interacts with us and then others.

PROMOTION

Promotion means to advertise the product to generate goodwill in the market.

One of the hardest marketing decisions facing a company is how much to spend on
promotion. Our company has set a separate budget for advertising. We have planned to
advertise our products in such a manner to attract more customers. We have made the
charts, banners and pamphlets with attractive phrases on them. We have also
implemented the individual marketing strategy in order to get the ideas of the customers
about our products.

For the promotion, we advertised our products through different ways:

 Banners
 Charts
 Pamphlets
 Individual marketing

16
 REVIEW

All the above mentioned activities we have done through hardworking and
disciplinary management. First of all we have generated the idea of developing a product
and then after analyzing the market we introduced the product in the market. We have
managed all the activities with the mutual participation of the group members in a
disciplinary manner. Our company also faces some problems and hurdles but through the
coordination of the members we solved those problems. Overall it was a good experience
through which we learnt about the marketing strategies and their application in the
market.

Learning Experiences

During the whole period (from idea generation to selling the products) we have
learnt many things e.g.

 Patience, how to keep ourselves calm

 Convincing power, to sell the products in the market the seller should have a
strong convincing power. We have learnt through our experience of Marketing
Fair that to convince the customers is one of the most difficult tasks.
 Changing strategies, we have also learnt how and when to change our marketing
strategies. At the beginning of the day we were following the fixed prices of the
products but in the mid time we offered discount to sell our products. At the end
of the when the stock was almost finished our products have been sold at
comparatively high prices.
 Communication skills, it is one of the important factors to capture the market. If
we have the good communication skills we can capture the market easily.
 Profit earning, to earn profit in the market is the most difficult task.

APPENDIX

Questionnaire

The questionnaire is attached with the report

17
Details Amount Amount Amount
Rs. Rs. Rs.
Sales:
Floating candles 3200
Cold cake with coffee 3080
Russian salad 2450
Total sales 8730
Less: Expenses
Floating candles.
Manufacturing expense 2500
Promotion expense 400
Freight expense 100
Rent expense 350
Other expense 300
Total 3650
Cold cake with coffee.
Manufacturing expense 2000
Promotion expense 300
Freight expense 150
Rent expense 350
Other expense 100
Total 2900
Russian salad.
Manufacturing expense 2000
Promotion expense 300
Freight expense 150
Rent expense 350
Other expense 100
Total 2900
Total expenses 9450
Net loss 720
Income Statement

Promotion Material

 Charts
 Banners
 Posters
 Pamphlets
 Individual marketing

18