Hamdard university Institute of management science

MARKETING PLAN OF

NEW PRODUCT

QARSHI JOHAR JOSHANDA CHOCOLATE,

QARSHI JOHAR JOSHANDA PURE HONEY&

QARSHI JOHAR JOSHANDA SUGAR FREE

COURSE

PRINCIPLES OF MARKETING

SUBMITTED TO

Miss Qnita Imtiaz

SUBMITTED BY
Hasham Ahmed khan
 CONTENTS

ACKNOWLEDGEMENT................................................................................................................................................... 3
AUTHORIZATION LETTER ............................................................................................... Error! Bookmark not defined.
LETTER FROM QARSHI INDUSTRIES .............................................................................................................................. 4
Chapter 1 MACRO-ENVIRONMENT............................................................................................................................... 5
CHAPTER 2: MICRO-ENVIRONMENT ............................................................................................................................. 8
CHAPTER 3: MARKETING OBJECTIVE .......................................................................................................................... 15
CHAPTER 4: PRODUCT ................................................................................................................................................ 22
CHAPTER 5: PRICE ....................................................................................................................................................... 24
CHAPTER 6: PLACE ...................................................................................................................................................... 26
CHAPTER 7: PROMOTION ........................................................................................................................................... 28
CHAPTER 8: PRODUCT LIFE CYCLE .............................................................................................................................. 30
CHAPTER 9: RECOMMENDATIONS ............................................................................................................................. 31

2
 ACKNOWLEDGEMENT

First of all, we thank Almighty Allah who gave us the ability to think, work and deliver what we
were assigned to do. Secondly, we must be grateful to our teacher Sir Munir who guided and
supported us and really cooperated with us throughout this term paper. We are really thankful
to Mr. Moin Alam (Manager Channels & Marketing of Qarshi Industries)who took out time from
his busy schedule to provide us with the information about QarshiJoharJoshanda and its
variants.

3
 LETTER FROM QARSHI INDUSTRIES

Dear Professor,
This is for your kind information that your following students has been visited our office for
QarshiJoharJoshandas product knowledge

Hasham

Regards,
Moin Alam
Manager Channels & Marketing
Qarshi Industries (Pvt) Ltd.

4
 Chapter 1 MACRO-ENVIRONMENT

The macro environment consists of broader forces that affect the actors in the microenvironment. These
factors are demographic, economic, natural, technological, political and cultural environment.

CULTURAL ENVIRONMENT

Culturally, Pakistan is a little different society so how does QarshiJoharJoshanda fit amongst target
market?
Using herbs as a medicine is not a new concept in subcontinent, its many centuries old concept. Our
elders used to make medicine for cough and flu by mixing various herbs, and the people who indulged
themselves in this profession were known as Hakeem. With passage of time, Qarshi Industries realized
that they could make such herbal products with laboratory tests by maintaining all the quality control
norms. So what they produced was not a totally new concept for Pakistani society, instead they just
modernized what their ancestors had been using for last many decades. It was easily accepted and
trusted by the target market, and what achieved the height of success despite being a new company in
Pakistan, as compares to some pre-partition herbal companies.

Did you face any problems for producing herbal products? Which is originally an Indian concept, not
ours?
Honestly speaking, we did not face any such problem. Yes this is originally an Indian concept, but our
elders have always used herbs as a medicine for various diseases so largely people accepted our
products. Before we launched JoharJoshanda, we came to know Hakeemsused to make such a product
for cough and flu by mixing various herbs. So what we did was not something new for many of us.
- Mr. Moin (Manager Channel and Marketing Qarshi Industries)

DEMOGRAPHIC ENVIRONMENT
The changing demographics in Pakistan are a big opportunity for Qarshi. Because of growing number of
children, they are able to extend their target markets by new flavors which mainly focus on children,
likes of Chocolate and Honey JoharJoshanda. Moreover with the increasing number of diabetic patients,
Qarshi has launched JoharJoshanda Sugar Free to target that segment as well.
The estimated population of Pakistan by Population Census Organization latest by
April 2013 is 183 Million.

Province Population
Sindh 40.6 Million (22.2%)
Punjab 98.2 Million (53.7%)
Balochistan 8.7 Million (4.8%)
Khyber Pakhtunkhwah 23.6 Million (12.9%)
5
Islamabad 1 Million (0.6%)
FATA 4.2 Million (2.3 %)
Azad Kashmir 4 Million (2.2%)
GilgitBaltistan 2.4 Million (1.3%)

Population of Big Cities

Lahore 12.5 Million
Karachi 21.2 Million
Total 33.7 Million (18.4% of total population of Pakistan)

Population Percentage
Population ages 0-14 (% of total) in Pakistan 36.4
Population ages 15-64 (% of total) in Pakistan 59.4
Population ages 65 and above (% of total) in Pakistan 4.2
Population; female (% of total) in Pakistan 49.1
Population growth (annual %) in Pakistan 1.8

ECONOMIC ENVIRONMENT
Effect of recent economic recession on sales of QarshiJoharJoshanda
The price of JoharJoshandais very low i.e. Rs.5 which everyone during recession could afford so they
were not badly affected by economic recession and mostly, this brand is used as a medicine so people
were bound to get medicine no matter what economic difficulties they were going through. In fact,
recession was an opportunity because the antibiotics and anti allergic medicines are quite expensive so
people can look for alternative medication in the form of herbal medicines.

THE REGULAR USER OF QARSHI JOHAR JOSHANDA

People from all social classes use this product, be it lower class or elite one. However, we have found
middle class use it the most.

NATURAL ENVIRONMENT
Qarshi Industries make sure that they do not produce a harmful effect on the natural environment.
Qarshi Industries is ISO-14001 certified. The raw materials and herbs are procured by the suppliers who
continuously plant trees and herbs in the northern areas of Pakistan.

POLITICAL ENVIRONMENT
Qarshi has faced political problems because there is a system of political funding parchi. The receipt
systemis much prevalent in the wholesale markets which creates a lot of problems. In fact, they have
received receipts on a number of occasions. The retailers fear that if they will not give money to these
political parties, their shops and warehouses will be burnt. One big wholesaler of Qarshi also received

6
receipts but he used to hide when those political workers came. On Sunday when the market was
closed, those political workers made a wall infront of his shop and they wrote on it that whoever tries to
break this wall will be punished and they will tear his hands apart. Well Qarshi Head office takes care of
these political issues and they try to do some negotiations.

7
 CHAPTER 2: MICRO-ENVIRONMENT

COMPANY
Qarshi Industries (Pvt.) Ltd. is one of the largest natural products companies in Pakistan. It is a modern
and progressive facility that manufactures and markets leading brands that have become household
names. As a leading manufacturer of Natural Products, Qarshi is engaged in promoting healthy living for
over seven decades. It has been offering blend age-old Oriental and Greek herbal preparations with the
latest advancements in science and technology to provide safe and effective products to its customers.

In 1968 the youngest son of Shifa-ul-Mulk, Mr.Iqbal Ahmed Qarshi after completing M.S.C in Chemical
Engineering, laid the foundations of QarshiDawakhana that has now evolved into Qarshi Industries, a
modern and successful company that outweighs by far, the expectations of its original founder.

Qarshi Industries is highly rated company in its category in Pakistan. It has consolidated its image as a
quality-conscious company and has, over the year, demonstrated its firm commitment to quality and
strict adherence to international standards. Qarshi takes pride in maintaining a high quality in its
products and superior skills and acquiring the latest in advanced technology.

VISION STATEMENT
Distinctive Leadership in Quality, Human Resource, Research & Development, Corporate Social
Responsibility

MISSION STATEMENT
To be Premier source of knowledge and Leadership for the Achievement of Economically,
Environmentally and Socially Sustainable Development

8
PRODUCT MIX OF QARSHI INDUSTRIES

QARSHI
INDUSTRIES

FOOD AND
HEALTH CARE
BEVERAGES

Refreshing Syrups Male Disorders Children

Natural Mineral Water
Anti Allergics Tooth Care

Jams, Marmalades,
Soft Drinks Murabbas & Honey CNS Disorder Renal Urinary

Blood Related Disorder Gastro Intestinal Disorder

Ketchup & Sauces
Johar Joshanda
Anti Pyretic Disorder Tonics

Instant Powder
Drinks Ear Disorder Liver Disorder

Research Products
Orthopedic Disorder

Heart Disorder Female Disorder

Respiratory Tract Disorder

Personal Care

9
 Food and
Beverages

Refreshing Natural Mineral Soft Drinks

Johar Joshanda
Syrups Water

Jam-e-Shirin Applesshhh Johar Joshanda

Other Syrups Springley

Sugar Free Jam-e-Shirin Johar Joshanda

Sharbat Sandal Lemonsshhh Sugar Free

Jam-e-Shirin
Johar Joshanda
Sharbat Illachi
Chocolat
Jam-e-Shirin Calcium Enriched

Jam-e-Shirin Lemon Flavored Johar Joshanda

Sharbat Bazoori
Pure Honey
Jam-e-Shirin Sugar Lite

Food and
Beverages

Jams, Marmalades, Instant

Murabbas & Honey Powder Drinks

Jams and
Murabbas Ketchup & Garden's Kino
Marmalades Honey
Sauces

Orange Apple Jam Murraba Harar (Beri) Jujuba Tomato Garden's Lemo
Marmalades
Honey Ketchup
Murraba Carrot
Fig Jam Ginger Marmalades Tomato Free Garden's Falsa
Pure Honey
Murraba Apple Ketchup
Mango Jam
Mixed Fruit Jam
Murraba Amla Chilli Garlic Garden's
Sauce Peach
Mulberry Jam

10
HEALTH CARE
Male QairootiKhas TilaMuqaviShahi Safoof-e-Mugha
disorders Zarjam Sozak Ginsovit
Vitavig Shahi (Capsules) ImsakiJawahar
Protone Asphaton
TilaMuskan No. 1
Children Tone Up Tonic Corezcol NauBahar (Natu
ArqShirin Hoopinil
Ghutti SadaBahar
Anti Aller-Z Allergex
Allergic

CNS Demaghi Hayateen MajoonAzaraki

Disorder ItreefalKashneezi KhameeraGaozabanAmbri MajoonNajah
ItreefalUstukhudus

Renal Zubex Thandak Urosinal

Urinary Prostnal Hab-e-Gurda MajoonPhilasph
Pathri Tore SharbatBazoori JawarishZaroon
Blood SharbatUnab (Adviati) Musaffeen (Tablets) Musaffeen (Syru
Related
Disorder

Gastro Zanjabeen AmratDhara Chuarqa

Intestinal Zancid Antifat Deedani
Disorder Akseer-e-Pachish SharbatAnjbar Piles-X Oil
Akseer-e-Pachish ArqBadian Pileen
Anti Typhex Plus B.M.81 Fever-X
Pyretic Bukhareen
Disorder

Tonics Ahmareen SharbatFaulad KushtaBaikhMa

Ambreena Tonic Fauladi Tonic JawarishShahi
JawaharMoharaKhas
Ear Goshina
Disorder

Liver ArqMako Akseer-e-Jigar (Syrup) MajoonDabeed

11
Disorder Akseer-e-Jigar (Tablets) KushtaFaulad MajoonKhabs-u

Orthopedic Taryaq-e-Nazla RoghanAujaa Suranjeen

Disorder (KhameeraKhashkhashKhas) HabAzaraqi MajoonSuranja
Research HeptaCare
Products
Heart ArqGaozaban Garlicare KhameeraAbres
Disorder Dawa-ul- KhameeraGaozabanSada KhameeraGaoza
MiskMutadilJawaharWali Shafai
Dawa-ul-MiskMutadilSada Kardil
KhameeraMarvareedKhas
Female Supari Pak Kushta Sadaf Mensofar
Disorder A-Lecor Lecodine Habis
Khatooni
Respiratory Taryaq-e-Nazla KushtaAqeeq KhameeraAbres
Tract Surficol (Tablets) SharbatBanafsha LalSharbat
Disorder Asthmina SharbatSadar LaooqSapistan
Surficol (Syrup) Sharbat Toot Siah (Black KhameeraBanaf
Mulberry)
Personal Arq-e-GulabKhalis
Care

SUPPLIERS
Qarshi has a numbers of suppliers who provide them with the best quality raw materials and herbs.
There are some particular suppliers of Sugar. Qarshi has strict policies regarding quality and if any
supplier gives them substandard raw material, Qarshi doesnt deal with them. The suppliers of Qarshi
play an important role in minimizing the cost of transportation. They deliver the raw materials to the
plant in Hattar.

MARKETING INTERMEDIARIES
Following are the intermediaries of Qarshi Industries.
Physical Distribution Firm
Marketing Service Agencies

PHYSICAL DISTRIBUTION FIRM

Premier Distributors are sole distributor of Qarshi Industries. They help Qarshi Industries in storage, as
well as transportation of the products to the consumer market. They have 2 storage warehouses one in
Lahore and one in Karachi. When the products are manufactured, they are sent to these warehouses.
Premier Distributors have deals with the several sub-distributors who then distribute the products to the
12
retailers. Previously Qarshi Industries had around 350 distributors but there was a lot of blame game
among the distributors and it was difficult to monitor all the distributors. Therefore now Premier
distributor is their sole distributor for the past 5 years.

MARKETING SERVICE AGENCIES

Qarshi Industries have two marketing service agencies namely Manhattan Leo Burnett and Adcom
Private Limited who help them in media planning, advertising, and market research. Adcom Private
Limited has made the advertisements of QarshiJoharJoshanda.

FINANCIAL INTERMEDIARIES
There are no financial intermediaries. Total finance is of the owners.Qarshi has a policy to minimize the
cost per employee.

WHOLESALER AND RETAILERS

QarshiJoharJoshanda is sold in almost every medical store. The wholesalers and retailers keep it because
it is in high demand.

COMPETITORS

INDUSTRY COMPETITION
According to AC Nielsen reports, following are the market shares.

BRAND PRICE Market Share

QarshiJoharJoshanda Rs. 5 80%
HamdardJoshina Rs. 5 10%
MarhabaJoshanda Rs. 5 6%
Hashmi Joshanda Rs. 5 4%

FORM COMPETITION

BRAND PRICE Quality (Rating on scale of 10)

Tandegyl 44 7
Zyrtec 46 9
Hydrillin 59 8
Pulmonal 65 6
Flueze 30 8
Amoxil 56 9
Augmentin 70 5
Sancos 55 6

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PUBLICS
Following publics have an impact on Qarshi Industries ability to achieve objectives.

MEDIA PUBLIC
Media publics including newspapers, magazines, and television channels have an impact on the
marketing of Qarshi. Their print ads are published in various magazines like AkhbareJahan and Sunday
magazine. Moreover, their TV commercials are also shown on various TV channels.

INTERNAL PUBLIC
Qarshi Industrieshas its own monthly publication by the name of QaumiSehat in which they
communicate with the external publics.

CUSTOMERS
Qarshi is currently targeting the consumer markets, reseller markets and international markets.

CONSUMER MARKETS
In consumer markets, they are targeting the masses with their low cost and high quality brand
JoharJoshanda. They have targeted the mass market including diabetic patients and children with
theirJoharJoshanda flavors Sugar Free, Chocolate, and Pure Honey.

RESELLER MARKETS
Qarshi provides a number of schemes for resellers for example if the resellers buy their products in large
quantity they get a scratch card through which they can get gifts. Moreover, they on the purchase of 30
boxes, they get 1 free box of JoharJoshanda. The distribution of Qarshi is really good and that is why the
resellers are quite happy to work with Qarshi Industries.

INTERNATIONAL MARKETS
Recently, Qarshi has gone into the international markets in USA, UK, Saudi Arabia and South Africa
where it has its own outlets. The most popular brands that are in high international demand are Jaam-e-
Shirin and JoharJoshanda.

14
 CHAPTER 3: MARKETING OBJECTIVE

THE NEED FOR LAUNCHING JOHAR JOSHANDA

For decades, people in villages, towns and districts used herbs for the remedy of cough, cold and flu.
Then Qarshi Industries decided to provide them with a readymade high quality herbal tea by the name
of JoharJoshanda which means Essence of boiled stuff. In this way, people could easily get a herbal tea
in their homes on while travelling. QarshiJoharJoshanda is an instant remedy for cough, cold and flu.
This was the unique selling proposition for QarshiJoharJoshanda and their quality have always been
really good. Over the past two decades, JoharJoshanda became a very strong brand and has really high
brand equity.

MARKETING STRATEGY
The marketing strategy of Qarshi was to become the market leader in herbal food and beverages
medicine industry and it wanted to have a large market share so it wanted to target the masses.
Qarshialso wanted to find the unmet segments and cater them with the products that they wanted. For
that reason, Qarshi did a market research and then came up with new brands.

THE NEED FOR LAUNCHING JOHAR JOSHANDA CHOCOLATE, HONEY AND SUGAR FREE
After a huge success of QarshiJoharJoshanda for the past two decades, Qarshi saw that now
JoharJoshanda is in the maturity stage and a lot of competitors have come up with the similar product.
This was the time that Qarshi Industries decided to target some other segments to differentiate and
increase their market share.

CONSUMER INSIGHTS
Qarshi did a detailed market research with collaboration of AC Nielsen. They went to different shopping
malls, schools, and other marketplaces and asked the people about their brands and the need of people.
Finally, the results showed that the children didnt like the taste of JoharJoshanda which was quite bitter
so in order to target the children of age 5-12, Qarshi had to come up with the flavor that all children like
which is Chocolate. In this way, Qarshi came up with JoharJoshanda Chocolate. Moreover; Qarshi
knew that in winter season, parents give a spoonful of honey to their children because of the nutrition of
honey to keep their body warm and strong so Qarshi came up with another flavor named
JoharJoshanda Pure Honey. Qarshi also noticed that there is a big population which suffers from
diabetes so this was the unmet need. Qarshi asked the people if they would like to drink JoharJoshanda
Sugar Free which has no sweetener. The response was really positive but not from all the diabetic
patients. In Pakistan, most of the diabetic patient cannot live without eating desserts and sweets etc.
However, there is a small segment which includes upper class, educated, well aware and health
conscious people. Qarshi then came up with JoharJoshanda Sugar Free.

15
SEGMENTATION
Qarshi Industries did the market segmentation on the basis of demographics, psychographics and
geographic and behavioral dimensions.
GEOGRAPHIC VARIABLES
JoharJoshanda is very popular in the northern areas of Pakistan particularly the truck drivers which they
have shown in their TV commercials. Well Qarshi has also tried to target the urban population. Their
promotion has been to target the masses.

DEMOGRAPHIC VARIABLES
There were many options for QarshiJoharJoshanda. Qarshi segmented the market on the basis of age,
gender and income.

PSYCHOGRAPHIC VARIABLES
In psychographics, Qarshi segmented the market on the basis of social class.

BEHAVIORAL VARIABLES
Qarshi segmented the market on the basis of benefits of JoharJoshanda.

TARGET MARKET
JOHAR JOSHANDA SUGAR FREE

Geographic
World Region or Country Pakistan
Density Urban

Demographic
Gender Male, female
Age 40 and above
Income Rs.30000 and above

Psychographics
Social class Upper middle, lower upper

Behavioral
Quality, herbal medicine so no side effects, no
Benefits sweetener so diabetic patients and use it.
User rate Light user, medium user

16
 JOHAR JOSHANDA CHOCOLATE

Geographic
World Region or Country Pakistan
Density Urban, suburban, rural

Demographic
Gender Male, female
Age 5 - 11
Income Rs.30000 and above

Psychographics
Social class Middle class, upper middle, lower upper

Behavioral
Quality, herbal medicine so no side effects, delicious
Benefits chocolate flavor for children, economy
User rate Light user, medium user

JOHAR JOSHANDA PURE HONEY

Geographic
World Region or Country Pakistan
Density Urban, suburban, rural

Demographic
Gender Male, female
Age 5 - 11
Income Rs.30000 and above

Psychographics
Social class Middle class, upper middle, lower upper

Behavioral
Quality, herbal medicine so no side effects, pure
Benefits honey flavor for children, economy
User rate Light user, medium user
17
PERCEPTUAL MAPPING
This is the perceptual mapping of QarshiJoharJoshanda along with the competitors.

High Quality

Zyrtec Amoxil
QarshiJoharJoshanda

Flueze Hydrillin

Tandegyl

HamdardJoshina
Pulmonal

High Price
MarhabaJoshanda
Low Price

Hashmi Joshanda Sancos

Augmentin

Low Quality

18
 BRAND PRICE Quality (Rating on scale of 10)
Tandegyl 44 7
Zyrtec 46 9
Hydrillin 59 8
Pulmonal 65 6
Flueze 30 8
Amoxil 56 9
Augmentin 70 5
Sancos 55 6

POSITIONING

JOHAR JOSHANDA SUGAR FREE

To the diabetic patients who need sugar free medicines, JoharJoshanda Sugar Free is an instant herbal
tea that is an effective remedy for flu, cough and physical fatigue with no side effects unlike the anti-
biotic medicines that provide temporary relief but cause severe side effects.

JOHAR JOSHANDA CHOCOLATE

To the children who hate medicines, JoharJoshanda Chocolate is an instant refreshing herbal drink that
will make them happy as well as provide an effective remedy for flu, cough and physical fatigue with no
side effects unlike the anti-biotic medicines that provide temporary relief but cause severe side effects.

JOHAR JOSHANDA PURE HONEY

To the children who are honey lovers, JoharJoshanda Pure Honey is an instant refreshing herbal drink
that will give them the sweetness and nutrition of pure honey as well as provide an effective remedy for
flu, cough and physical fatigue with no side effects unlike the anti-biotic medicines that provide
temporary relief but cause severe side effects.

PRODUCT IMAGE
QarshiJoharJoshanda is a highly rated brand in the minds of people of Pakistan for the past two decades
for its superior quality, economical price and effective remedy against flu, cough and physical fatigue.

ESTIMATING THE SIZE OF MARKET

Qarshi saw the demographics and on the basis of calculations, they estimated the size of market.
The estimated population of Pakistan by Population Census Organization latest by
April 2013 is 183 Million.

19
Province Population
Sindh 40.6 Million (22.2%)
Punjab 98.2 Million (53.7%)
Balochistan 8.7 Million (4.8%)
Khyber Pakhtunkhwah 23.6 Million (12.9%)
Islamabad 1 Million (0.6%)
FATA 4.2 Million (2.3 %)
Azad Kashmir 4 Million (2.2%)
GilgitBaltistan 2.4 Million (1.3%)

Population of Big Cities

Lahore 12.5 Million
Karachi 21.2 Million
Total 33.7 Million (18.4% of total population of Pakistan)

Population Percentage
Population ages 0-14 (% of total) in Pakistan 36.4
Population ages 15-64 (% of total) in Pakistan 59.4
Population ages 65 and above (% of total) in Pakistan 4.2
Population; female (% of total) in Pakistan 49.1
Population growth (annual %) in Pakistan 1.8

As it is clear from the above statistics that thepopulation of Karachi and Lahore is 18.4 % of the total
population of Pakistan so it is a big population to target. QarshiJoharJoshanda was most popular in the
rural and suburban areas particularly in northern and western areas of Pakistan. Now this was the time
to target the urban population. Since 65 Million (36%) of the population is of ages 0-14 so it is a huge
market.
Qarshi estimated that out of 65 million, 30 million will be of the ages 5-14
Then out of these, 5 million will belong to those families which do not prefer herbal medicines.
Then 4 million will belong to a segment which doesnt prefer QarshiJoharJoshanda for many reasons
such as packaging, quality, taste, inefficient awareness, competitors etc.
Then 1 million will belong to a segment which doesnt like chocolate or honey.
The remaining market was of the size 20 million. In this way Qarshi estimated the size of market. This
20 million was the segment for the Chocolate and Pure Honey.
Now for estimating the size of market for JoharJoshanda Sugar Free, Qarshi looked at the following
statistics:
There was a survey conducted by Pakistan Medical Association in November 2009and the results were
shocking.

20
Out of the three hundred adults subjected to the survey, 43% adults had any awareness of Diabetes.
Adults with no regular, scheduled exercise were 73.7% and 85.3% did not have healthy eating habits.
Awareness of risk factors was present in 14% while awareness of the complications associated with the
disease was22%. Adults which reported as never going for regular checkups to any clinic or hospital
were 77%.
The conclusion was that the majority of adults was unaware of Diabetes Mellitus itself and associated
risk factors. Raising public awareness of the disease through outreach programmes and mass media
should be planned and implemented.
Total Diabetic patients in Pakistan = 7 million so the percentage of diabetic patients (% of total
population of Pakistan) is 3.8%
Population of Karachi is 21.2 million
The approximate population of Clifton, defence, KDA Scheme and other areas of Karachi where
upper middle class lives who have awareness of diabetes will be2000000.
The approximate size of the market is 100000. This is a small market but an unmet market. No
other competitor has come up with a sugar free herbal tea.

MARKET SHARE
QarshiJoharJoshanda has 85% market share in Herbal Tea sales. They sell 150 million sachets of this
product annually.
Total Annual Industry sales of Herbal Tea = Rs. 880 million

Brands Annual Sales

QarshiJoharJoshanda Rs. 750 million
HamdarJoshina Rs. 61 million
MarhabaJoshanda Rs. 44 million
Others Rs. 25 million

The new brands have no competitors because they are targeting separate segments. In comparison of
the total sales following is the percentage of sales of the three brands.

MARKET POTENTIAL

Market Potential = No. of buyers x Average Consumption (Annual)

JoharJoshandaChocolate =20 million x 2 sachets = 40 million sachets

JoharJoshandaPure Honey = 4 million x2 sachets = 8 million sachets

JoharJoshanda Sugar Free = 100000 x 2 sachets = 200000 sachets

21
 CHAPTER 4:PRODUCT

LEVELS OF PRODUCT

Core Product: JoharJoshanda is an effective herbal medicine for cough, flu, throat pain etc.
Actual Product: It contains a lot of product benefits such as innovative packages that distinguish it from
other brands with a new and attractive look. It utilizes the pure herbal medicines for the healing of
different patients suffering from flu, cough, fever, throat pain. They are offering three new variants to
add more features in their product. They are following quality standards of ISO 9001. ISO 14001and etc.
Augmented Product: JoharJoshanda does provide product support by conducting seminar and different
activities at different shopping malls and schools to increase the awareness of the product and educate
the people thoroughly about the benefits of the product.

Benefits,
Features and
Quality
Standards of
Johar Joshanda

Johar Joshanda

Seminars, Activities to
increase product awareness
and give it a support

PRODUCT & SERVICE CLASSIFICATION

QarshiJoharJoshanda is a consumer product as well as a convenient product which can be available
frequently at every nearest super store, grocery or medical stores. It has a low price and distributed
widely all over the place. It does follow mass promotion and promotes frequently on the news and
entertainment channels during the news and program breaks respectively.

22
 QARSHI JOHAR JOSHANDA

Marketing Consideration Convenience

Customer buying behavior Little planning; frequent purchase and
Low customer involvement
Price Low price
Distribution widespread; convenient locations
Promotion Mass promotion

PRODUCT AND SERVICE ATTRIBUTES

PRODUCT QUALITY
Qarshi industries (pvt) limited never compromises on the quality of its products. That is the reason why
they have their own R&D Laboratories where proper practical experiments were carried out before
launching any joharjoshanda products. They keep their testing continue for 1 2 years before launching
it into the market.Qarshi is the only organization in SAARC, Middle East and Africa having 8 International
/ National Certifications and Accreditations ISO 9001. ISO 14001, HACCP, HALAL, ISO 17025 (Norway &
PNAC), Organic and PCP Certification. They have their own auditing department for the
overallmonitoring of the process and they have their own farms as a raw material for producing
joharjoshanda and its variants.

PRODUCT FEATURES
They have added with three new variants of joharjoshanda: chocolate, honey and sugar free, to add
more features in the product. Three different flavors target and benefit different segment of peoples.
Childrens usually go for the chocolate flavor, while the diet conscious people should choose sugar free
flavor to be more healthy and fit. Honey flavor has also targeted some of the areas especially it is
consumed more in the winter seasons as a best alternative of pure honey if it isnt available or
accessible.

PACKAGING
The main idea for changing to a new and innovative packaging is to cope with the changing pace of the
world and to bring a new variety, something new and latest. The other reason for switching into a new
pack is that there were some fake johanjoshandas were started to sell in the interior and lower regions
of Punjab and Sindh provinces.

23
 CHAPTER 5:PRICE

PRICING OBJECTIVE
The pricing objective is to get the maximum market share. Well its not the price that makes
QarshiJoharJoshanda market leader, but their quality. Their prices are almost same or little higher than
their competitors, but Qarshi spends a large amount of money on Quality Control department to sustain
the best of quality which makes them market leader. Its their procurement department that sends
suggestions to top management to set prices. However, government of Pakistan doesnt charge taxes on
herbal products, so this makes a good profit margin despite being a reasonable price of the product.
The current price of QarshiJoharJoshanda is Rs. 5

PRICING OF COMPETITORS
The prices of QarshiJoharJoshanda is same as of their competitors namely Marhaba, Hamdard and
Hashmi. Its the quality of Qarshi that makes them different from the competitors.

FACTORS THAT QARSHI KEEPS IN MIND WHEN SETTING THE PRICE

It is the responsibility of Qarshis procurement department to determine what prices should be set. They
keep various factors in mind, likes of prices of raw material, transportation cost, R&D, quality control,
factory expenses, profit margin etc. Recently prices of raw material were increased, so they suggested
the top management to enhance prices with a certain profit margin. They import herbs from China and
recently because of devaluation of our currency;they were bound to increase their price.

MINIMIZATION OF COST
Qarshi Industries has a culture of minimizing the cost. Each employee has to calculate his own CPP (Cost
Per Person) as to how much he is using resources. According to the formula of CPP

CPP is less than 3% Great performance

CPP is 3-10% Average performance
CPP is more than 10% Poor performance

EFFECT OF RECENT ECONOMIC RECESSION ON THE PRICE

Recession affected Qarshis other brands like Jaam e shirin for which they came up with small bottles of
500ml and 1ltr but it didnt affect JoharJoshandas sale because its price is very less Rs.5 which is easily
affordable.
Qarshis markup
The company didnt tell their own mark up but we assume that they sell Joshanda to their distributor for
Rs. 4.5 and the cost of 1 sachet is Rs. 3 so their mark up should be 11.11%
Distributors markup
Distributor keeps a markup of 5%
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Retailers markup?
Retailer also keeps a markup of 5%
Break Even Point
We assume that the fixed cost of QarshiJoharJoshanda is Rs. 1000000 annually.
Fixed cost = Rs. 5000000
Price per unit = Rs. 4.5
Variable cost per unit = Rs. 3

Break even sales units = Fixed Cost

Price per unit Variable cost per unit

Break even sales units = 5000000

4.5 3

Break even sales units = 3333333 units

Qarshi can make break even if they sell 3333333 sachets.

Break even point in sales = Rs.4.5 x 3333333
Break even point in sales = Rs. 14999998.5

Break even point in sales = Rs. 15000000 approx.

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 CHAPTER 6:PLACE

COMPANYS OBJECTIVE FOR PLACE

The companys objective for place is that their brand JoharJoshanda and its variants Chocolate, Pure
Honey and Sugar Free should be available at an arms length.

NUMBER OF CHANNELS
Qarshi Industries have 3 Channels namely distributors, wholesalers and retailers.

NUMBER OF OUTLETS
Qarshi has one international outlet each in UAE, UK, USA, Saudi Arabia and South Africa. Apart from that
Qarshi has seven health shops inLahore so that the customers can get free health tips from qualified
hakeems, free diet plans, and delivery of all products of Qarshi.

NUMBER OF DISTRIBUTORS
Their sole distributor is Premier Distributor which is a part of Premier Group.

PARTNERSHIP WITH DISTRIBUTOR

Qarshi has a good business partnership with their sole distributor Premier Distributors. Premier
distributor is a business partner of Qarshi and has links with small distributors nearly 350 in total all over
Pakistan. In this way Qarshi can reduce the cost of storage and warehousing.

PROBLEMS WITH DISTRIBUTORS

Few years back when there were several distributors ofQarshi, they was facing a severe problem with
JoharJoshanda. A fake JoharJoshanda was being launched in the interior Sindh and it was being mixed
with the cartons of QarshiJoharJoshanda. It was done to bring dis-reputation to Qarshi or devalue the
brand image of QarshiJoharJoshanda. Since Qarshi had several distributors, it was not clear as to who
was involved in this scam.Qarshi changed their packaging on regular basis so that it will differentiate
from the fake one. They also found some of the people who were involved and every distributor was
doing blaming others. Then the top management of Qarshi decided that they cancelled the deal with all
the distributors and then signed an agreement with only one distributor Premier Distributor so that now
if anything like this happens, Qarshi could easily blame Premier distributor. Well that scam has reduced
to much extent because Qarshi has changed the packaging.

CONTRIBUTION OF DISTRIBUTOR
Premier Distributor is one of the top distributors of Pakistan and they have a very wide network all over
Pakistan. They make a lot of contribution to add value to the sales of Qarshi products.They have
contacts with the sub distributors in order to make the distribution swift and efficient. They also have

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their own warehouses where they store the Qarshi products for backup. They have 1 warehouse in
Karachi and 1 in Lahore.

KEEPING A CHECK ON THE RETAILERS

Qarshihas contact numbers on which retailers can call if they have any issue. Qarshi has an audit
department which has the duty that each and every day they have to see whether their products are
available in every retail store, whether they have enough shelf space or not. Moreover, if there is an
issue with cartons or the sachets are wet or stained or torn then the retailers will tell that directly to the
concerned person of audit department. That person will inform the Karachi office as well as the head
office whatever he has monitored. Then the management will tackle with this situation.

DISTRIBUTORS HELP IN CONDUCTING MARKETING RESEARCH

The distributors help in conducting the market researchas they get feedback from the retailers because
retailers know which product is in demand so they can tell the distributors and in this way Qarshi gets
help from the distributor.

ACCESS TO THE PRODUCT

Their brand JoharJoshanda Sugar Free is accessible only in elite areas of Karachi like Clifton, Defence,
P.E.C.H.S. etc. where the people are very health conscious and have awareness about it.
JoharJoshanda Chocolate and JoharJoshanda Pure Honeyare accessible in areas near schools and in
majority of the general and medical stores on high demand of children.

CONFLICTS WITH CHANNEL

There are not many conflicts with the channel because there is only one distributor so the company and
distributor sit together to solve conflicts if they arise.

MARKUP TO THE DISTRIBUTOR AND RETAILERS

Qarshi gives 5% Markup to the Premier Distributor on JoharJoshanda and its variants. Then the
distributor gives 2-3% markup to the retailers and there are other seasonal deals so if the retailers buy a
big deal then they will get a bigger margin. There are deals of 15 cartons, 25 cartons and 50
cartons.Other additional deals give retailers 1 or 2 cartons free on the purchase of 20 cartons.
Moreover, if a retailer purchases Qarshi products worth Rs. 50000 then the retailer gets an instant gift.
He gets a scratch card so he scratches it and there can be a number of gifts in or may be the distributor
gives a big discount.For example, if a carton is worth Rs. 5700 then the distributor will sell it to the
retailer for Rs. 5000.

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 CHAPTER 7: PROMOTION

PROMOTION OBJECTIVE
The promotion objective of QarshiJoharJoshanda is following.

Informing Since the brands QarshiJoharJoshanda Chocolate, QarshiJoharJoshanda Sugar Free and
QarshiJoharJoshanda Pure Honey are new so Qarshihas run a promotion campaign that makes potential
customers aware of these brands.

SETTING THE PROMOTION BUDGET

Qarshi set their marketing budget according to percentage of sales method.

PROMOTION BUDGET
Their annual budget is Rs.350 million

PROMOTION MIX
Qarshi uses following elements of promotion mix.
Advertising
Public relations
Sales promotions

ADVERTISING
They made a TV commercial of QarshiJoharJoshanda Chocolate to target the children under 13.

The storyboard of TVC

The storyboard is that a child says that there are two kinds of kids. One who doesnt drinkJoharJoshanda
Chocolate and the other one who drinks JoharJoshanda Chocolate with milk every day and stay fit. The
tagline is Sehat Fit Maza Hit

DURING OR AFTER WHICH PROGRAMS WAS IT SHOWN?

It is shown during cartoons, children programs from 7 am to 8 am and on news channel from 1- 1: 30pm.

FEEDBACK OF TVC IN TERMS OF SALES

It enhances the sales in the age group of school going student and those groups who are
diabeticpatients.

TARGET MARKET IN TVC?

The target market is the age group (5-12) of school going student.

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DID THEY TARGET DOCTORS?
They didnt target any doctors yet they did a promotional campaign that they selected a few hospitals
and clinics where they gave JoharJoshanda sachets to all the patients so that the patients will try and
then if they like they will purchase it from the nearest retailers.

WAS THERE ANY WORD OF MOUTH INFLUENCE?

JoharJoshanda Sugar Free has had a word of mouth influence because the diabetic patients have tried it
and they tell other patients or their relatives to try it because it is really effective.

DID THEY ORGANIZE ANY EVENT FOR AWARENESS OR PROMOTION?

Yes they conducted research in different schoolswhere they showed different activities like puppet show
where the storyboard was that there is a singing competition and one cartoon character has throat
infection and so his friend gives him JoharJoshanda Chocolate and he drinks it and then he sings and
wins the singing competition. They went to several schools where they gave briefing to the studentsand
gave leaflets and goodies to them and after three days they took feedback. In that feedback they found
90% of the students liked chocolate flavor while only 10% students liked honey flavor. As far as
JoharJoshand Sugar Free is concerned, Qarshi conducted research in different shopping malls like
Forum, Hyderi, Tariq Road and Millennium Mall and they found that the response
toQarshiJoharJoshanda Sugar Freewas good in Clifton, Defence and other elite areas of Karachi.

PUSH AND PULL STRATEGY

First Qarshigo for push strategy by ensuring that their products should be available everywhere.Then
they go for pull strategies for which they use print media by giving ads in different magazines like
Akhbar-e-Jehan, Sunday magazine and QaumiSehat. In electronic media, they give ads on different
channels especially on Cartoon Network, and Nickelodeon, and other channels to create pull.

ATL OR BTL PROMOTIONS

They have two marketing service agencies namely Adcom and Manhattan Leo Burnett. Adcom takes
care of the ATL promotions whereas Manhattan Leo Burnett takes care of the BTL promotions.ATL
promotions include the TV and radio advertisements plus billboards. BTL promotions include the
activities in schools and shopping malls.

PUBLIC RELATIONS
Qarshi associates their promotion activities with Geo Tv in Ramadan Iftaar and Sehri transmission with
Aamir liaquat. They also use HORICA activities in which they organize programs in hotels, restaurants
and cafes of Clifton and Defence during the last 10 days of Ramadan to engage customers in different
activaties and they give gifts to the customers.

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 CHAPTER 8: PRODUCT LIFE CYCLE

PRODUCT LIFE CYCLE STAGE OF PRODUCT CATEGORY

Joshanda is in maturity stage because it has been serving for a long time and there are so many
compotators like hamdard, hashmi , marhaba although there is tough competition and the price of
competitors are same too but the market share of qarshi is 80%.

CURRENT PRODUCT LIFE CYCLE STAGE OF JOHAR JOSHANDA CHOCOLATE, JOHAR JOSHANDA SUGAR
FREE, AND JOHAR JOSHANDA PURE HONEY
All the three brands are in growth stage. Right now they don`t have any competitors because Qarshi has
targeted the unmet markets.Qarshi is increasing awareness and interest in the target markets. The
market is accepting these brands and the profits are increasing. Children are quite excited by
JoharJoshanda Chocolates ad so this is a star brand.They are doing intensive distribution. Right now
there are no competitors offering these brands or similar brands.

What are your future plans for revitalizing the brands?

They will improve the quality. Make these brands as good as qarshi regular.

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 CHAPTER 9: RECOMMENDATIONS

Following are the recommendations for QarshiJoharJoshandas brands.

Majority of the people are completely unaware of the JoharJoshanda Chocolate, Sugar Free and Pure
Honey.
JoharJoshanda Pure Honey even in its growth stage is declining so they need to revitalize it.
They have not done enough promotion of JoharJoshanda Sugar Free.
There is problem in the availability of these brands.
They have made only 1 TVC of JoharJoshanda Chocolate which is not shown regularly.
They should make separate advertisements of JoharJoshanda Pure Honey and Sugar Free.
The packaging is not attractive.
They should come up withreadymadeJoharJoshanda Chocolate like Pakola Milk and Milo
Since they are targeting the children with Chocolate and Pure Honey, they should create a small
animation which would have a storyboard creating awareness of JoharJoshanda.
They are relying too much on the distributors.
They can go for line extension by bringing more flavors like Mango, Coffee etc.
They dont have any outlet in Karachi.

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