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The Exordium
Praise to Allah,
The Compassionate,
The Merciful,
Al-Quran.
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Rooh Afza
Acknowledgement
One of the most pleasant parts of writing a report or any presentation is the
opportunity to thank those who have contributed to your efforts. Unfortunately, the list of
expressions of thanks – no matter how extensive – is always incomplete and inadequate.
This acknowledgment is no exceptions.
First of all we are thankful to Almighty Allah who gave us the courage to
complete this task and to our resource person Mr. Mobin-ul-Haque who stood behind us
whenever we need his guidance and support. His unflagging patience and outstanding
capacity work made this report possible.
We also admire the efforts of our other teachers and advisors and all other people
who help us in this report. And yes there are many others whom we are not able to
mention the names but we really appreciate the cooperation and help provided by them.
We will remember you all.
Thanks.
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Rooh Afza
Introduction:
Rooh Afza was introduced in 1907, and was included in the first list
of drugs of Hamdard in 1908. The qualities attributed to it at that time were mainly
medicinal.
Hakeem Abdul Majeed, the founder of Hamdard India's leading organization devoted to
the 'Unani' System of Medicine was led to this formula by his intuitive faculty. No other
formula could surpass it in quality, range and efficacy in those days. The almost 90 year
old history of Rooh Afza is also a pointer to the fact that no better formula has yet been
evolved.
The matchless qualities and merits of Rooh Afza soon brought it to the notice of the
people. By its distinctive taste, fragrance and colour it began not only to attract the
common people, but also inspired the writers and poets to make it a theme of their
creative efforts.
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Rooh Afza
diaries, he recalls the past. The early stages of the preparation of Rooh Afza are still vivid
before him.
Identifying need:
Rooh Afza satisfies thrust need of the consumers. As there are number
of homogeneous and brand products to satisfy thrust need of the consumer so Rooh Afza
faces a lot of competition.
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Rooh Afza
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Rooh Afza
Colour: not everyone likes a red coluored drink. I have no hassles, however.
Sweetness: Some dislike Rooh Afza because of its sweetness. As it is mostly made of
rose petals and fruit juices one cannot expect it to have a tangy flavor, but a few drops of
lime juice in the glass of Rooh Afza leads to the perfect balance. Also the amount to
syrup used can well be adjusted to modulate the level of sweetness.
Not modern: The above non-issues apart, the drink is considered ‘not modern’ and
possesses a ‘fuddy duddy’ household image that no ‘trendy’ youngster would touch with
a barge pole.
It is indeed a pity that Rooh Afza seems to have lost out to brands like Tang/ Rasna
(yuck!) for in-home consumption and to those Pepsis/Cokes (tsk tsk!) and Frooti
(eeyaarghh!!!) for outdoor consumption.
These have stolen a march over Rooh Afza over planks of coolness and youth. (The
world gets more pretentious every year)
Indoor consumption only: I guess what also works against Rooh Afza is that it cannot be
consumed outdoors. It hasn’t any ready to drink aspect and thus bottled, canned, tetra
packed aerated drinks score.
One just can’t have a glass of Rooh Afza on an impulse, in the sweltering heat whilst
outdoors, a time when you require it the most.
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Rooh Afza
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Rooh Afza
Mission Statement
To preserve & promote eastern system of Medicine,
To establish the principles of pharmacy, its furtherance &
standardization,
To teach & publicize the principles of health, hygiene &
medical sciences,
And through these, to serve the people selflessly.
PEST Analysis
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Rooh Afza
Political Environment:
Investor does not show interest to invest here because the
political environment is not stable and there is no democracy. They see the history of
democracy and they conclude that, in 59 years history of Pakistan independence only 22
years were democratic government and remaining were under army. Stability of the
government reflects the overseas investment but in past Pakistan government was not
stable but first time national assembly has got stability for five years so it is good sign for
investing activity. Government has given return and shows the politeness in its rules and
regulation of import & export and has given free hand to industrialist to invest here.
Government of Pakistan is also giving the legal safety to investor and encouraging policy
for investor.
So in the end we can conclude that these political & legal factors reflect very bad effect
on investors and discourage them to invest here. Some policies are good but can’t success
whenever we don’t have political stability in Pakistan reflect from the past.
Economic Environment:
Economic environment is a most critical environment for any
industry. In this regard we consider the government rules and regulation because
economic policies encourage and help to take a decision for an industrialist that he should
invest or he shouldn’t invest in this country. So if we analyze Pakistan’s economy in the
our economy is growing and if we see the GDP of Pakistan, it is growing from last five
years but negative point is this that inflation is also growing rapidly which is not a good
sign for our economy. For investment purpose Pakistan’s economy is not impressive
because inflation rate is very high so we can say economic environment is very risky in
Pakistan.
Social Environment:
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Rooh Afza
Technological Environment:
Today’s era technology can play a back born role for any
industry and if any one do not implement those changes that are occurring in the industry
then we can simply say that it would not survive and will get end very soon. Pakistan
social trend has changed and people also want fully quality product. If we take our
beverage industry there are so many technologies involve in it and consumers here want
hygienic products which are fully processed and it can not be possible without
technology.
Our government is encouraging technology competition in local market. E-Commerce is
growing up and people buy their favorite product online and Government establish a
Hardware Development Fund (HDF) to finance IT hardware related R&D and
manufacturing activities.
Growth market.
Few competitors
Huge capital requires.
High marketing, distribution cost
Switching cost is high.
Easy access to in put.
No limitations by government.
Buyer Power:
Supplier Power:
No of
Large no. of substitutes are
supplier in Competitive Rivalry: available in
market. market.
Inputs have no Among few firms Large no of
substitutes. Produce nearly same products buyer
No Threat of with little difference of taste. Very low
forward Slow industry growth. Switching cost.
integration. High buyer
Switching cost power.
is high. Buyer have No
Supplier power capability of
is low in red Substitutes: back wards
syrup industry. integration.
Large no. of substitutes
Low Switching cost of buyer
towards substitutes.
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Rooh Afza
Growth market:
Growth in this industry is not in rapid speed and if there is some
growth in Pakistan it’s due to its tradition, living style of people and hot environment.
So there are opportunities available for the newcomer who wants to start this
business.
Major competitors:
Disadvantage for a newcomer is that there are some major
competitors in the market who have huge share in market of Pakistan like hamdard
and Qurshi. So it will be a very hard job to compete them and get a market share. No
doubt it will be a strategic war of market share for them.
Capital requirements:
Setting up business nation wide will require huge amount of
capital because its plant & factory, offices at different location, your staff, distribution
channel, and advertisement will charge a huge amount of capital. its will be difficult
to start business with less amount of capital if we will do that then we will not be able
to have market share in industry.
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Rooh Afza
Switching cost:
Switching cost of changing the business is very high because your
plants and other thing assets will not be easily sold when you will want and at the
time of shutting down you will have to face a lot of loss.
Access to in put:
New comer will not face problems regarding inputs because there
are number of suppliers of herbal raw material are available in market.
Government policies:
There are no limitations by the government for a person who
want to setup business of red drink in Pakistan just he has to get a license or register
his firm it will be in his favour if he want to do business at national and international
level.
Supplier Power
Number of suppliers:
A lot of suppliers are available in market so there is no any
problem to get the inputs and no need to import the inputs from any other market.
Substitutes of in puts:
Because in red syrup uses herbal products so there are no any
substitutes are available in market of natural herbal products.
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Rooh Afza
Buyer Power
Substitutes in market:
A lot of substitutes are available in the market so numbers of
choices are available in the market, buyer can switch easily to any other substitutes.
Number of buyer:
Huge amount of buyer are available in the market.
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Rooh Afza
Competitive Rivalry:
Rooh Afza
42% 45%
Jam-e-Shirin
Norus
Marhaba
others
So in this chart we can see that Rooh Afza and Jam-e-shirin has the main share of Red
Syrup industry and these are the main competitors but Norus has also good share but not
a big competitor of Rooh Afza.
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Rooh Afza
Same products:
Competitors in the red syrup industry produce nearly same product with
the little difference of taste.
Slow industry growth:
Industry growth rate is 3-4% annually its show that it’s a very
slow growth rate.
Substitutes:
No. of substitutes:
A huge amount of substitutes of red syrup are available in the market
due to which customers have a no of option during purchasing and so customer is in
power.
Existing Strategies:
Hamdard industry has developed the following strategies to promote
its products and increasing the profitability. By using these strategies hamdard is now
able to compete with its competitors.
Selected Product:
Rooh Afza 800 ml
Rooh Afza 1.5 litter
Rooh Afza 3 litter
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Rooh Afza
Competitors’ Products
Jam-e-shirin
Marhaba
Norus
Squashes
Shezan and Nestle juices
A strategic group map displays different competitive positions that rival firms
occupy.
RIVAL FIRMS
A Strategic Group
Consists of those rival firms with similar competitive approaches
and positions in an industry. Rooh Afza and Jam-e-Shirin comes in same strategic group
with more than competitive characteristics in common like sell in same price/quality
range, cover same geographic areas, have comparable product line breadth, emphasize
same types of distribution channels, offer buyers similar services, use identical
technological approaches.
The closer strategic groups are on map, the stronger the competitive rivalry among
member firms tends to be.
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Rooh Afza
VARIABLES
Segment
Product
Map explanation:
In above map there are two variables Segment and Product.
Low income:
We can see in the map that low income level people use open beverages
more and after that none branded packed beverage, but the percentage of branded packed
beverage is very low (Rooh Afza and Jam-e-Shirin).
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Rooh Afza
Middle income:
In the above map the middle income level people use branded packed
beverage (Rooh Afza Jam-e- and). The percentage of imported juices and nestle juices is
very low.
High income:
High income level people uses imported juices more. And the percentage
of branded packed red syrups is very low.
VARIABLES
Sales
Product
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Rooh Afza
Map explanation:
In the above map there are two variables sales and product.
We can conclude from above map that the sales of open beverages and none branded
packed beverages are very low. Secondly the sales of branded packed red beverages are
medium. And thirdly the sales of other imported juices in the market are very high as
compare to last two categories of product/beverages.
In this portion of project we will discuss that how many segments Hamdard is serving
for its product Rooh Afza and what strategy they are using for these segments.
Market segmentation:
The commonly used basis for segmenting the consumer market may
be grouped in following categories, which are selected by the Hamdard for its product
Rooh Afza as well:
Geographic Segmentation:
Hamdard Rooh Afza consumption is related with the
geographic as well as economic conditions of a place. Red syrup is demanded in every
area of Punjab, Sindh, Balochistan & NWFP. The cultural distribution can be stated as
renew and regional distribution will be divided into Urban, Sub Urban, Ex Urban, and
Rural. The climate of Pakistan is steamy, we have long distance of summer that starts
from March and ends in October. So, the demand for Rooh Afza is high in summer.
Demographic Segmentation:
Age: People from all age groups
Sex: Both Male & Female
Occupation: People from all walks of life
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Rooh Afza
Psychographics Segmentation:
The social class, which is included in the target group of
Rooh Afza (Red syrup), is consumer from lower upper class and middle class. They will
buy this product because of their social set up and price of the product. The consumer has
large range of personalities from dynamic to interesting. From self confident to extra
vested, from risk-taking to social able. The personality of a person makes a lot of
difference in buying power.
The lifestyle of consumer varies from flashy, broadminded modern to dull traditional and
backward. It is a very important factor which very much influences the buying pattern of
the consumer. People will be mostly influenced by high quality, healthful richness and
branding of product.
Behavioral Segmentation:
The customer expects high quality in a new product to shift
from existing one. Red Syrup (Rooh Afza etc) is pure and 100% natural drink, which
creates loyalty and consumers normally don’t shift from this product. Rooh Afza is
available in different sizes plastic bottles and suitable for consumers that they can use it
any time at home with out any expiry date. It is very regularly consumed product so its
usage rate is very high in summer and especially in the month of holly RAMZAN.
Benefit Segmentation:
The people group (old age) more receptive for healthy lifestyle
and wanting mild fragrance of drink are more attracted and benefited by Rooh Afza.
Because in old age people don’t like Pepsi, coca cola etc due to injurious impact on their
health and some times doctors strongly recommend to old age people that they should use
natural and pure drinks like Rooh Afza because it has no side effects on health.
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Rooh Afza
Target Market:
A target market is defined as a group of customers (people or
organization) at whom seller specifically intends to aim its marketing efforts. For this
purpose company must analyze three components:
Consumer
Buying Power
Social and psychological factors influencing buying patterns
With the increase in literacy rate, awareness about health and physical fitness is cutting
across our society. This means Red Syrup industry has market in each age group of
society. Due to increased industrialization the income and the life standards are
improving. But the new generation is becoming modern and their life style is totally
change and they like Pepsi and coca cola rather than Red syrups.
Segmentation Strategy:
Hamdard industry is targeting all above-mentioned Segments
and they have developed multiple strategies for a single product Rooh Afza because each
& every target segment is getting benefit from this single product (Rooh afza) like:
Females are more conscious about their health & fitness and also for their kids
and whole family.
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Rooh Afza
Teachers also convince students for selecting delicious, energy & natural drink
full of fun like Rooh Afza
Doctors prescribing natural herbal drinks to Women, Children and Old age
people. Mostly children are getting benefits from Rooh Afza because sometimes
children don’t drink milk and mothers prepare Rooh Afza by mixing milk in it
and children drink more than average. It’s a strategy of Hamdard Rooh Afza for
targeting children segment. And more over Hamdard industry prepared Rooh
Afza in a way that each and every segment is getting benefit from it.
PRODUCT
Product line:
Rooh Afza is available in single flavor but the Hamdard industry has broad
range of Product line. All the products are made from 100 % natural ingredients with no
artificial flavors. Products of Hamdard are safe and have no side effects on health.
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Rooh Afza
PRODUCT STRATEGY
BRAND NAME:
Brand name is “Rooh Afza”.
QUALITY:
Demanding businesses require quality, efficient and cost effective to
protect and taking excellent environment. So hamdard Industry is responsible to maintain
a standard by ISO 9001 (UK). Rooh Afza is made by natural things.
FEATURES:
There are some important features in our product Rooh Afza, which
compete in the market place against existing company.
Rooh Afza has capacity to store it for a longer period of time, which creates a
differentiated strategy against other drinks in market.
Rooh Afza is 100% pure drink without any chemicals or artificial flavors.
You can add water to prepare Rooh Afza or milk to enjoy the different flavor
especially for children.
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Rooh Afza
SIZE:
Rooh Afza is an excellent source of refreshment; it is available in following attractive
sizes and packing:
Benefits:
Benefits of the product are:
Pricing Strategy
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Rooh Afza
Price is the value of a product expressed in the terms of money and any other monetary
medium of exchange. The price of a product is major determinant of the market demand
for the item. Price effects the firm’s competitive position and its share of the market. As a
result, price has a considerable manner on the company’s revenue and net profit. Price of
Rooh Afza is determined through these evaluations.
Product Demand:
To estimate the market likely of Rooh Afza, Hamdard industry exercise
two methods:
Direct Derivation Method
Survey of Buyers Intention
This survey revealed that the people of Pakistan are quite dynamic in their tastes, quality,
preferences and also health conscious. They always welcome new changes open heartily
and if that change is good in quality and other features, they do adopt it. But the Rooh
Afza creates loyalty, and customers usually don’t switch from it and prices are stable in
both season summer & winter.
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Rooh Afza
PROMOTION STRATEGY
Promotion activities mean to communicate with the potential customers. Promotional mix
is an important program of the Hamdard Industry, which is combination of Personal
selling, advertisement, Sales promotion, publicity and public relations. Advertising
message should be based on positioning statement. The message should be attractive,
appealing and persuasive. So, advertising agency must compare all factors for successful
promotional plan for Rooh Afza. Keeping in mind the promotional budget, advertisement
is recommended as:
Hamdard industry advertises its product Rooh Afza in all newspapers and
monthly family magazine to aware the product to people.
Adds in Television, Radio and through Billboards
Advertising:
Hamdard industry advertises its product Rooh Afza through Television Ad,
Banners, Posters, Billboard, Newspaper Ad, and Hamdard Products Magazine.
Public relations:
Hamdard Industry has a lot of retailers, wholesalers and distributors in
the different cities that have strong communication and relation with public. They
provide some useful information about Hamdard product with sympathetic attitude and
emotional feelings such as “This product is 100% pure and is prepared with herbal
natural ingredients for your needs and it is only Pakistani product to compete other
countries’ product”.
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Rooh Afza
Sales Force:
Hamdard Industry is expanding the advertisement range from different style
or types in the different category of shops day by day. So customers thinking will be
bound to purchase Rooh Afza because of high-class advertisement and coverage.
Sales promotion:
Hamdard industry also promotes its product Rooh Afza by sales
promotion, like Hamdard industry gives more Incentives/Profit Margin to retailers. By
adopting all these strategies Hamdard industry promote its product Rooh Afza in a well
manner.
Positioning:
Natural & Pure Syrup <<<>>> As Pure As Nature
It is very important that how can marketers position their products, their distribution
channels, their technologies, even their company’s corporate identity? Positioning is the
process of achieving a desired place in the mind of target market.
Rooh Afza positioning approach is by product attributes, benefits, usage occasions, away
from competitors, and product classes:
Product Attributes:
The characteristics of Rooh Afza are as follow:
Hallal
100 % Pure
Herbal Natural Ingredients used to prepare it
No side effects on health
Product Benefits:
Benefits of Rooh Afza are different for different class of users like:
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Rooh Afza
Its fun preparing drink, refreshing, and with everlasting natural taste.
Be bright and strong with healthy and tasty Rooh Afza.
Usage Occasions:
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Rooh Afza
Distribution Strategy
Channels:
Hamdard Industry is improving day by day quickly the range of channels
in the different area in the advance level through a large number of distributors, and
retailers.
Producer----------distributors-----------Retailer-----------Consumer
Hamdard Industry uses this channel for distribution of Rooh Afza. Since the timely
distribution is the basic requirement to promote sales and have confidence of retailers,
one department concentrates on following:
Coverage:
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Rooh Afza
Locations:
Hamdard industry’s main focus areas and locations are:
Delivery Medium:
Different types of transports are available for services of the
distributors. Because Hamdard industry wants to provide product to customers fresh and
full of taste.
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Rooh Afza
Production Strategy
Production Season:
Hamdard Industry production consist of 10 months only, starting
from February till the end of November. Hamdard industry doesn’t produce Rooh Afza in
the months of January and December. January and December both are the off period
that’s why they don’t produce in these months and fulfill the demand in these two months
from the stored material.
Production Capacity:
The beverage production plant of Hamdard has capacity to produce
about 25 thousand tons material daily and they produce on daily basis.
For the drinks industry, the World Trade Organization (WTO) has always been
something of a mixed blessing. To be sure, its goal of cutting restrictive import
quotas, reducing tariffs and harmonizing consumer health rules have generally been
welcomed, but the slightly shabby truth is that the drinks industry has always been
protected to some degree. In Europe especially, with its complex appellation systems
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Rooh Afza
and regulations on oenological practices, support for simple free trade in drinks is far
from universal.
Competitors Strategies
Our main competitor is Jam-e-shirin, its one of the main strategies are heavy
advertisement and to create a good positioning in the mind of the consumer. They are
very keen in promoting their brand image and selling their products. Now they are
targeting the markets out of Pakistan to capture them as much as they can. This surely
will increase the horizon of Qurshi. Product line of the Qurshi on the other hand has been
promoted with the slogan of being pure and hygienic. The brands out side of Pakistan are
also trying to enter this business.
Our Response:
We are direct competitor of Jam-e-shirin as it comes as substitute and
we have been fighting with jam-e-shirin form the last number of years through
advertisement. In the beginning Rooh Afza just targeted the Asia markets but now its
getting into markets of Red Syrup drinks which needs preparation there too. They are
continuously making research to develop more n more products to maximize its product
line to compete its competitor which come with direct competition with Hamdard. As this
drink is a change in our old drink they might have to make a slight change in it. They will
also introduce new flavors in it with the passage of time to compete others substitute with
different and newer taste.
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Rooh Afza
New entrant
One new company is trying to enter the Pakistani Red Syrup market which is Sharbat-e-
Azam from Darbur an Indian company.
RoohAfza sales will not suffer any dent because of Sharbat-e-Azam. Of course, like
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Rooh Afza
Marhaba disappeared from the shelves (not to consumers’ residences, but back to the
company warehouse) its ads also vanished before you could actually get hold of your
Senses to register disgust.
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Rooh Afza
5 RA
4 JS
NR
OT
1 2 3 4 5 Price
MH 2
Availability
Explanation:
Rooh Afza ranked highest in the price and availability perception map
which means that it is easily available in the markets from where the consumers can buy,
whereas Jam-e-Shirin is ranked lower than comes Norus which is not satisfactory in price
but availability is satisfactory whereas Marhaba and other red syrups under unsatisfactory
umbrella.
Variables:
Quality: means whether the product is hygienic for health and can it be consumed safely.
Brand Name: perception of people about the brand they are using is with their life style.
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Rooh Afza
5 RA
4 JS
1 2 3 4 5
Quality
NR
MH 2
OT 1
Brand Name
Explanation:
Rooh Afza is highest in the quality and brand name perception map which
means that the consumers are highly satisfied with the quality of Rooh Afza and that it
has good brand image in the minds of the consumers.Whereas Jam-e-Shirin comes after
it. Norus, Marhaba and other red syrups comes under unsatisfactory umbrella.
Variables:
Packaging: deals with the covering of the product.
Taste: deals with the ingredients of the product.
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Rooh Afza
5 RA
4 JS
OT NR
1 2 4 5
3 Packaging
MH 2
Taste
Explanation:
Rooh Afza is highest in the packaging and taste perception map which
means that the consumers are satisfied with the taste and packaging Rooh afza. Whereas
Jam-e-Shirin comes next to it. Norus is better than Marhaba and local red syrups got
unsatisfactory in packaging but are good in taste.
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Rooh Afza
Thanks!!
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