report

1. MADE BY; AMEEN
, SEHRISH, ASMA,
RINA, RUKHSANA
SUBMITTED TO:
SIR NASIR ALI
KHAN
INDUS
UNIVERSITY SITE
CAMPUS
COMPANY: AASRR
BRAND: CHOICE
12/26/2012
REPORT ON LAUNCHING A
PRODUCT BY B.B.A 4TH

2. 33
Table of Content of Project
Report
• INTRODUCTION
• Objectiveofstudy
• ExecutiveSummery
• Methodology
• Recommended MarketingStrategy –
Segmentation &TargetMarket
• Recommended MarketingMix
• Theindustrialscenario
• DirectCompetition
 OtherbrandofPakistan
• MarketingObjectives
• MarketingResearch
• Finding
• Marketingtestingplan
• FutureOutlook

3. 33
ACKNOWLEDGEMENT
It gives us immense pleasure to present this
project on lounging a new chocolate product
title “market research & lounging of
product”.
Wetaketheprivilegetoconvey our gratitude
to those who have co-operated, supported,
helped and suggested us to accomplish the
project work & I would like to extend my
sincere gratitude to our
Professor NASIR ALI KAHN for his
guidance

4. 33
Objective of study
• To get familiar with the Pakistani
marketing strategies
• To view the segments being targeted
by upcoming product in the market
• Up to what extent do the public
respond toward the new product?
• To prepare a marketing plan for
capturing our target market
• To be a relevant guide for any brand
launch in Pakistan.

5. 33
Introduction
Our Company AASRR is going to introduce a
new product with the reference of Quality,
royal brand with rich flavor and customized
product for Consumers
Pakistan is on its way to move and so are the
markets in Pakistan. Apart from economic
changes, Pakistan is also facing social
changes in life style, hobbies etc. New
fashion, food habits of Pakistanis are
changing rapidly. Chocolate, which were
believed to kid’s preference, are now being
consumed by teenagers, and adults.

6. 33
Despite Pakistan’s confectionery chocolate
industry has enjoyed an emerging and
growing trend in the recent past yet its size
and growth pattern has been far
inconsequential compared to other countries
of Asia-pacific region. The industry has
grown with an average annual rate of 6.5 to
7.5 % during 2002-2008. Domestic brands
dominate the market accounting for more
than 85% of total value sales of the industry.
The chocolate market in Pakistan increased
at a compound annual growth rate of 6.6%
between 2004 and 2009.

7. 33
Executive
Summary
Our product start up with customization
process
AASRR believe in Innovation
Innovation is what which doesn’t only attract our
regular customers but also helps us in capturing new
customers we focused on;
• Innovation in packaging and quality
• Innovation in chocolate flavors
Customization
Our expert presentation team will ensure that your
items are designed to your specifications, and will work
with your organization from start to finish to make
sure all your needs are met. From gift-boxes to
congratulatory platters, we are happy to provide you
with samples that can be customized, or to design

8. 33
something completely new and exclusively for you or
you can also use it as a Corporate Gifts that
Elevate your corporate gift-giving with sophisticated,
gourmet confections that bear your company's colors
or logo. Instead of handing out calendars or planners to
your peers and clients,
come to AASRR for
elegantly wrapped
chocolates that suit a
variety of occasions.
Weddings &
Special
Occasions
An elegantly
wrapped
giveaway is an
expression of
warmth and
appreciation.
AASRR chocolate box will leave an everlasting
impression of your special day and make your guests

9. 33
feel truly appreciated. Let our
designers make you a box
customized to your event's design
theme
Celebrate With Choice
Giving a gift is just as important
as getting one. We at AASRR
realize that, which is why for us,
putting together the right
present for the right person
goes beyond simply wrapping
boxes. The rustle of tissue
paper, festive strands of ribbon
and elegant packaging: those are
just as important as the quality of our confectionary.
Our gift boxes are works of art - our chocolate is
fantastic, and our presentation is even better for any
tradition even in Christmas and Eid ATTRACTIVE
PACKAGING
AASRR believe that most of the consumer not only
attract to buy their chocolate but the thing is that,
the consumer attract toward their packaging and the

10. 33
way chocolate are presented with unique wrapping and
box’s style
Boxed
Chocolate, which
includes
assortments of
different, individual bite-sized chocolates
packaged in a box or carton and often used as
gift
Chocolate courtliness, which includes chocolate-
covered bars designed to
be eaten in one go.
Includes bite size
courtliness sold in
multipacks.
Chocolate Molded
bars, including solid
chocolate bars,
blocks or tablets

11. 33
shaped by pouring melted chocolate into molds or
different customized shape.
Vision and Mission Statement of AASRR
First of all before discussing any topic we have to
understand the vision and mission statement of
AASRR product (choice) your life your choice,
which tells about the whole goals and objectives
of the company and it helps us to understand the
whole .Topic easily and effectively.
Vision Statement
AASRR set out a vision to achieve “a CHOICE” to
be Pakistan’s Premier Chocolate Company offering
nutritious and superior quality taste sweets to its
consumers. By 2016 we aim to achieve 30% of
market shares, and while it, we would be the best

12. 33
in terms of consumer value, customer service,
employee talent consistent and predictable
growth.
Mission Statement
To be a leading producer of chocolate become
dedication to nature, corporate and hygiene,
dynamic leadership and common to our partners
and stakeholders
We can easily understand the mission statement
by following points like;
“CHOICE” mean quality
This is our promise
Our reputation is build upon quality
Our commitment to continuous improvement
It will ensure that our promise is delivered

13. 33
Characteristic of this mission statement;
We can say that this mission statement is
realistic because if we see the quality and day to
day improvements easily show that AASRR have
real mission statement.
Setting company’s Objectives and Goals
AASRR successfully turned its mission statement
into its overall objectives and goals. AASRR says
CHOICE is the name of quality and the AASRR
(CHOICE) chocolate and also different packaging
products is the biggest example of it.
And it says our commitment to continuous
improvement and the demand and customer’s
satisfaction shows that its products successfully
fulfill the needs wants and demands by continuous
improvement in the features of products.
Why this Product?
Factors Driving Demand for our Product

14. 33
1: Changing age profile - A relatively larger share
of youth population which has ability to spend on
procedure.
2: Increase in Income- The middle, upper lower
and upper upper groups growing at the faster
rate than in developed communities resulting in
higher spending on food.
3: Social Changes- Increasing number of women.
4: Life style Factors- Increasing health
consciousness awareness for convenience
chocolates.
5: Availability of Organized Retail outlets- These
proved much needed forward linkages.
Customer Driven marketing Strategy of
AASRR’s CHOICE

15. 33
In customer Driven marketing strategy we
discuss the CHOICE CHOC-OLATE market
segmentation, target marketing and market
positioning strategies.
Target Market
Primary Market
• Kids - Fond of Chocolates
• Teens - More Experimental
• Youth – Experimental and more buying power
• Working people

16. 33
• Housewives
• Elderly People
Secondary Market
• Travel Industry
• Airlines,
• Movie Theaters, Malls, amusement Parks
• School, Colleges
• Hotels, restaurants etc
Market Segmentation;
Market segmentation is the process in which
marketers divide a market into subsets
(segments) behave in the same way or have
similar needs.

17. 33
It means all marketing process depends on
marketing segmentation and it is the foundation
of all the marketing processes.
CHOICE also divides the market into different
group of customers. We can understand it by
following discussion.
Identify Market Segment of CHOICE
Targeting a group of customers who share a
similar set of needs and wants which
Segmenting the consumer markets. There are
basically four types of segmentation which I
discuss the following.
• Geographic segmentation
• Behavioral segmentation
• Demographic segmentation

18. 33
• Psychographic segmentation
Geographical Segmentation;
Divide Faisalabad in different segments according
to areas, states, regions and markets. E.g. D-
ground, Madina town
It can also be understand from the following
points.
Age and life cycle;
under this type of segmentation the buyers who
mostly prefer the CHOICE CHOCOLATE comes
under the age group of 4 to 50 years.
Gender;
For purchasing CHOICE CHOCOLATE gender
does not matter. CHOICE CHOCOLATE is for all
type of persons whether male or female.
Income;

19. 33
The price of CHOICE CHOCOLATE is reasonable
and affordable, that a pack of chocolate is of Rs
12 so a person can easily buy it.
Generation;
CHOICE will not be much affected by the
generation differences. All type of people likes to
purchase the CHOICE CHOCOLATE when they
want to buy it.
Behavioral Segmentation of AASRR’s
CHOICE
we can understand it by the following points
Decision roles;
the decision role is played by the children and
youngsters. They play an important role in taking
the decision of when to buy the CHOICE.

20. 33
Occasion;
For purchasing the CHOICE no specific occasion
are required. People can easily purchase it on
regular bases also if they needed because of
verity range.
Benefits;
CHOICE is easily available anywhere when we
need it. AND also in its special AASRR’s stores
the supply chain of AASRR’s CHOICE is very good
also it a quality conscious. So there are two main
types of benefits given by AASRR’s CHOICE are
supply chain and quality.
Demographic Segmentation

21. 33
Divide people according to Age, Income, Social
Class, and town. Occupation and their life cycle
Psychographic Segmentation
To analyze the psyche of the people of Faisalabad
we divide them in social class, life style and
personality.
And now the target markets which is selected and
targeted by it is according to age, gender,
occupation and income of potential customers.
But the question is:
How can we choose the target markets from the
different segments?
The answer is that a acronym DAMP is used to
gauge the viability of target markets.
Dissemble; how a segment can be differentiated
from other segments.

22. 33
Accessible; how a segment can be accessed via
marketing communications produced by a firm.
Measurable; can a sufficient return on investment
be attained from a segment’s servicing.
Profitable; can a sufficient return on investment
be attained from a segments servicing.
Market positioning of AASRR’s CHOICE
Chocolate made its position not only in the minds
of consumers but also in the market.
It means what is the view of consumers or
concept about of your product like trough adds
children’s and youngsters view and action after
seeing the ad of your product.

23. 33
To make position in the minds of Customers
AASRR’s moving to used different promotional
techniques through.
By giving add through any superstar
Electronic media
TV
• GEO
• A.R.Y
• PTV
RADIO
• FM 101
• FM 103

24. 33
• FM 98
PRINT MEDIA
NEWS PAPER
• Jang
• Dawn
• Express
MAGAZINE
• Akhbar-e-jahan
• Sunday magazine
• Young world
BILLBOARD
• M-tax chock

25. 33
• D-ground
• General bus stand chock
• Shara-e-faisal
Social media
www.facebook.com/AASRR
www.wapdam.com/AASRR
Twitter and other social networks
MARKETING MIX
Product.

26. 33
CHOICE is made from real chocolate. Its ingredients
include cocoa, butter and there is a glass and half full
cream milk in every 200 grams in every milk chocolate.
CHOICE buys 65 million liter of fresh milk each year to
make CHOICE milk chocolate.
Strategy
The strategy of AASRR’S CHOICR is to continuous
improvement in the quality and features of product. It
is the mission statement of CHOICE to make quality
chocolate which have competitive advantage from the
competitor’s products and it enhances the goodwill of
the company.
• Price
It is an important element of the marketing mix. The
price for a chocolate can determine whether a
consumer will buy it or not it can be determined

27. 33
easily and sales volume tells about that price is
reasonable or not.
If competitors charge the low price than the
AASRR’s CHOICE chocolate, it is automatically
affect the company’s profit.
Strategy
AASRR’s CHOICE applies the reasonable and
affordable policy to charge the price from its
competitors. Because it is the vision of AASRR that
CHOICE is in every pocket. It charges the fewer price
from its competitors and provides better quality also.
We can say it is used penetration strategy because
have low prices as compare to its competitors and have
long life cycle of the product. AASRR wants to survive
in the market for long run. We will adopt the Marketing
following pricing strategies to set the price of our
product:
Cost-plus pricing
Method¬Skimming
Marketing Skimming

28. 33
Delight is using Price skimming strategy. It is a pricing
strategy in which a marketer sets a relatively high
price for product or service at first, and then lowers
the price overtime.
Cost-plus pricing Method:
A pricing method used by Delight because it is easy to
calculate & requires little information. This method
determines the cost of the product that used direct
cost, in-direct cost and fixed cost whether related to
the production OR sale of the product.
PRICE RELATED

29. 33
Suitable price starting from Rs/12(one pack
containing 2 chocolates) and ends up with the
customer’s choice. Depending on how many pieces
our customer wants to buy in one pack.
OUR PRICE
SCHEDULE
Product Quantity Price in Rs
Choice 2 pieces Rs.12
Choice 4 pieces Rs.26
Choice 8 pieces Rs.50
Choice
Multipack
From 16 to
consumers
dependable choice
Rs.100 & so on
dependent on
pieces
• Place

30. 33
AASRR’s CHOICE is produced at the chocolate factory
in Faisalabad in Pakistan. After the chocolate is
produced and goes through the process of all quality
checks. It is transported to the staff rooms and then
AASRR’s sells it product to shops.
Strategy
The placement strategy of AASRR’s CHOICE is to sell
the chocolate at every corner shop, super stores,
baker’s shop, it also included AASRR special chocolate
shops where customers can customize their order
according to their occasions. It is the mission
statement of AASRR to provide chocolate to all type
and class of customers. Included Distribution Channels:
Our distribution channels Marts and Departmental
stores, Super stores. Bakeries in Faisalabad are: edible
market stores. We mainly focus on the retailers &
Bakeries because they are the only source which
delivers our product to the final consumer.
• Promotions

31. 33
The purpose of promotion is to communicate directly
with potential and actual consumers. In order to
encourage them to purchase CHOICE chocolate the
AASRR used different promotional tactics.
Strategy
AASRR is used press and electronic media to motivate
the potential and inspires the actual customers to
purchase the product of AASRR
Promotion is an important element of marketing mix
because if it is not well planned then company is unable
to increase it sales.
The company gives discounts on different occasions.
To inspire the Consumers of chocolate to purchase the
AASRR’s CHOICE the company made such type of ads.
To encourage the youth class the company hires the
superstars for advertisement of the products which
inspires the all type of consumers who want to eat
sweet
Positioning strategy of AASRR’s CHOICE

32. 33
Positioning is all about that what is the customer
concept or image of your product in the minds of
the people who likely to purchase the product.
It also concerns about what is the position of
your product in the market.
We can say every aged person wants to buy
AASRR’s CHOICE chocolate and they also don’t
know why they are purchasing the AASRR’s
CHOICE even they don’t want to purchase.
Slogan of AASRR’s CHOICE
Slogans also play an important role to position a
positive concept in the minds of customers like:
AASRR’s CHOICE is a brand of chocolate bar and
different shape of chocolate made by the

33. 33
PRODUCT REVIEW
COMPANY NAME;
AASRR
PRODUCT NAME;
CHOICE
Slogan such as:
Your Life Your Choice.
Choose choice and live a healthy life
LOGO;

34. 33
SWOT Analysis of AASRR’s Chocolate
• Strengths
Customers of chocolates are not much price
sensitive. Consumers can easily place and choose
to order
• Weakness
AASRR’s aims to be available in every store but
though we are available in every store but not in
medical store and stores on petrol pumps because
of price ranges

35. 33
• Opportunities
Huge untapped urban population (middle class
population)
• Threats
Threat from free availability of imported brands
METHODOLOGY
As mentioned earlier, the objective of the study
is to formulate a Marketing Strategy for any new
entrant in the PAKISTANI Chocolate Industry.
While recommending the said strategy detailed
information from both primary and secondary
sources was collected and analyzed. This included:

36. 33
Primary Sources
Four level primary information collections were
undertaken. These were:
In order to get relevant information regarding
competition, executives of the following
chocolate players in the market were interviewed:
Mr.AMEEN , Branch Manager, AASRR’s Pak Ltd.,
Zam Zama Building, Connaught Place, Karachi
Information: AASRR’s profile, products, shops,
distribution, etc.
Information: Complete marketing strategy-since,
imported chocolates marketing is a new concept
To analyze buying behavior and in order to gain an
insight into the buyer need-satisfaction level, a
questionnaire was formulated and administered
among 80 people.
The profile of the respondents was as follows:
Consumers of chocolates – 12 years + in Karachi.

37. 33
This was since; chocolate consumption was
witnessed amongst all age groups.
A distributor was also interviewed so as to get
pertinent information regarding the most important
‘P’ of FMCG marketing – Place, and information
provided by Saif Dewan, he is a Brand, Sales and
Distribution management specialist, an impact
player in Business Development strategies, brings
with him fifteen years of blended experience of
(FMCG) Sales, Marketing and Distribution
Management. He has been associated with leading
organizations of Pakistan including Mitchell’s and
B.P sweets where he worked at strategic
management positions. Dewan is presently
associated with Muller & Phipps Pakistan (Pvt.)
Ltd., as Business Development Manager. He has
diverse experience in conducting strategic sales
management, team building and leadership
programs for organizations such as Mitchell’s, B.P
Industries, Muller & Phipps Pakistan, Meezan

38. 33
Bank, EFU General Insurance , Premier Agencies
and many renowned educational institutions
including University of Karachi and SZABIST etc.
He received his Hons. And Master’s Degree at
the University of Karachi, where he majored in
economics, with marketing and management
Secondary Sources
A number of secondary sources of information
were used. These were:
Information: Industry statistics, problems facing the
industry, future outlook, etc. Also measures being
adopted for cocoa production development
Confectionery and Chocolate Industry of Pakistan
Extensive use of secondary information in the form
of magazines/journals/newspapers clippings, such
as Business World, Business Today, Business
Pakistan, Brand Equity, Economic Times, etc.
The methodology adopted was as follows:

39. 33
Industry scenario Sketch (utilizing secondary
information)
Extensive interviews held with Primary/Secondary
Sources
(Companies/Chocolate manufacturers Association)
Interview with ex-distributor of Nestle Pakistan Ltd
Extensive retailer interviews with the retailers of
other chocolates brands
Formulation and administration of a questionnaire
Formulation of the Recommended Strategy on the
basis of the above mentioned Primary and
Secondary Information
THE
INDUSTRY
SCENARIO
With the entry of
multinationals and
home companies
sprucing up their
act, the confectionary market is booming.

40. 33
Mckinsey has estimated the confectionary
industry to touch a whopping Rs.8500 cr. by the
year 2009.
Till the eighties, the chocolate market was small
and the product category itself was fuzzy.
AASRR’s focus its efforts on making chocolates a
distinct category with an identity of its own. And
the marketer had sharply positioned its product
at children to do that. Hence, chocolates bore an
“only for kids” tag, and kept adults at bay.
Hence chocolate still ruled the roost with over 80
% market share. And though several brands – like
Cadbury and other brands in Pakistan which tried
to break into the market, none of them had
succeeded in shaking the leader’s grip
AASRRs want to become a brand virtually generic
to chocolates. Then chocolates were used to
reward and reinforce positive behavior and hence
were categorized as a luxury reserved for special
occasions. This was, a stark contrast to the west

41. 33
where chocolates were snacked on, eaten as mini
meals or just to suppress pangs of hunger.
Trends in the Industry
With socio-economic changes rapidly taking place,
the young and not so young population will lead a
new life style and chocolate eating is definitely
going to be widespread and acceptable.
In the industry, both population and family
incomes as well as urbanization are on the
increase.
There has been a significant growth in the middle
class, with 5.8 million people having upgraded to
the quoted middle class.
There is quantified data on FMCG usage having
increased
Thanks to the above reasons the growth in the
chocolate market is estimated to be at 28% in
2009. But marketers in the industry are looking
forward to a much higher growth rate.

42. 33
AASRR’S CHOICE MENU

43. 33
AASRR’s menu includes more than 28 types of
chocolate verity.
Comparison with BUTLERS in Pakistan
AASRR’s and BUTLERS
AASRR available in its
own special stores as
well as super markets
and other shops
Butlers has a available
to be sold in specific
store
It emphasis on
delivering quality brand
with luxurious packaging
It emphasis on
delivering good quality
A little price sensitive Not much price
sensitive
AASR
R
AASR
R

44. 33
Range of verity of
chocolate flavors and
chocolate packaging
while butlers has a
range of chocolate but
not of luxurious boxes
but of packaging
MARKETING OBJECTIVES
• Short Term Objectives
Taking into consideration the growth rate of the
market & competition with major brands, the
marketing objectives can be as under:
To introduce chocolates in various new flavors
To make a place in consumers mind
To provide quality chocolates at affordable price

45. 33
To achieve a market share of around 15% by the
end of two years of operation by the means of
7.5% by creating the new market.
7.5% by taking competitors share.
Long Term Objectives
Investing in strengthening the grass root level
operations like cocoa farming, milk collection and
storage.
A broad product portfolio, a large and efficient
R&D department, decentralized management, etc.
Nestle has about 2000 distributors in 1700 towns
and more than 500,000 retail outlets – to match
this.
MARKET RESEARCH

46. 33
In order to recommend and execute an effective
strategy for marketing of goods & services, a
systematic market research needs to be
undertaken. The buyer preference research
would play a vital role in the assessment of
consumer’s taste/purchase habits and a better
understanding of the consumers mind. In fact the
strategy formulation/recommendations in this
report of the marketing mix rely heavily on these
research findings.
A questionnaire was administered (as mentioned
in the Methodology) amongst people of different
age groups and professions. Results from this
research provided interesting cues, which were
extremely beneficial in the formulation of the
recommended marketing mix.
The main object of this research/questionnaire
was as follows:
To find out the current taste/chocolate eating
habits.
To find out the extent of brand loyalty

47. 33
To get feedback of consumers perception about
flavors and conventional outlets
To find out extent of price sensitivity
Retail outlet preference
Brand preference etc
OBSERVATIONS
Based on the basis of the questionnaire research,
some of the facts that came to the fore have
been listed below. These research findings played
a key role in the development of the
recommended marketing strategy.
AWARENESS – PURCHASE PREFERENCE
Top of Mind Awareness
Purchase Preference

48. 33
What influenced you to buy the selected brand?
PURCHASE BEHAVIOUR
Reasons for Purchase
Chocolates – A gift to a love one
IMPULSE DRIVEN
Most of my chocolate purchases are preplanned
I often pick up chocolates while I make other
purchases
REINFORCING IMPULSE PURCHASE
IMPORTANCE OF ATTRIBUTES – PERCEPTUAL
MAPS
Importance of various Attributes in AASRR’s
Chocolates definitely going to keep their

49. 33
consumers to go with customization and
personalization option.
Rank of Chocolates on various attributes for
CHOICE through Experimental marketing
Attribu
tes
Taste
(flavor)
Quality Packaging Price RANK
1 Choice Kit Kat Choice CDM 1
2 Kit Kat Choice CDM Choice 2
3 Cadbury Perk Kit Kat Perk 3

50. 33
4 Perk Cadbury mars Kit Kat 4
5 jubilee mars perk mars 5
FUTURE OUTLOOKs
The growth and expansion of the PAKISTANI
chocolate market in the past has been hampered,
due to stiff excise duties on chocolates (at 18
percent – while other agro based products are being
charged as low as 8% and a few, even 0% excise)
and non-availability of quality cocoa in the country.
Also, import of chocolates has been put in the OGL
category, with duties being reduced (in a phased
manner). The industry has made recommendations
to the Pakistan government to go back to the special

51. 33
item list category, in order to safeguard the domestic
industry.
However, continuous marketing focus by the players
in the market has resulted in the industry looking up
like never before. These companies/brands have
become much more market savvy. The Pakistan
chocolate market is transforming and new players
(Sara Lee is planning to set up base in Pakistan) are
entering the market. Hence, considering the low per
capita consumption of chocolates, the future of the
industry seems to upbeat with the reference of
AASRR & CO. Our going concern is quality dry fruit
chocolate but for the near future we were moving
and control our map toward new products in the line
for beverages some more new chocolate flavor with
fruits and coffee flavor with lots of more new
additions in our product line we keeps our promise
of delighting our customers forgo