Repositioning-Rooh Afza
SYNOPSIS The objective of this report is to provide with experience in applying the concepts and methods of marketing to a real world marketing opportunity. This exercise imparts a clear design and practical knowledge on the implementation of marketing strategies and plans. ‘Rooh Afza’ has been selected as the product for the report and has been repositioned. Not only the target market, but also the value proposition, packaging and pricing has been changed. ‘Energy and health’ has been made the unique selling proposition for the brand. Rooh Afza is traditionally known for breaking the fast during Ramadan, the holy month of fasting for Muslims. But it has the potential to be consumed throughout the year, in summer season especially as it has the mix of natural contents like roses, herbs, flowers, aqua of fruits and vegetables etc, which reduces the thirst and provides maximum utility in terms of freshness, energy, relaxation on one part and taste on the other. The marketing strategy specifies the target market, positioning, competition and product, pricing, place, promotion strategies. The report covers SWOT analysis, PEST analysis, value chain analysis of the activities, and the BCG matrix to evaluate the current position of the brand itself. All possible areas and topics have been covered in the report indeed, that are necessary for repositioning ‘Rooh Afza’.
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C O M PA N Y P R O F I L E This company is both in India and Pakistan because at the time of partition some brothers migrated to Pakistan and setup shop there. I believe this company is from Hyderabad originally anyway it doesn’t matter; we have many Hamdard medical halls in Hyderabad, managed by the Hamdard family. Hamdard, 'the global house of herbal products' is a household name in Pakistan and is known worldwide having a very large product range. Hamdard is engaged in production of medicines under Greco-Arab System of Medicine. Herbal medicines are natural medicines, simple to use and have no adverse side effects. The great man HAKIM SAYEED established “Hamdard” in 1948.
STRATEGIC BUSINESS UNITS
Right now Hamdard has approximately 300 products. The products are produced in three different forms i.e. liquids, solids, and semi solids. The products range fulfills the health requirements from all age groups i.e. from infants to aged persons. Hamdard has a full range of medicines for the cure of various diseases. The different strategic business units of Hamdard are as follows:
Hamdard’s cosmetics.
Hamdard’s sharbat/drinks.
Hamdard’s herbal medicines.
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PRODUCT PROFILE Rooh Afza is a popular concentrated sharbat invented by Hakeem Abdul Majeed and manufactured by the companies he founded, Hamdard (Wakf) Laboratories, India and Hamdard (Wakf) Laboratories, Pakistan, since 1907. The inventor never explained his choice of the name Rooh Afza, English speakers often refer to it as 'rose syrup'. It is a natural cold drink and a blend of pure crystalline sugar, distilled extracts of citrus flowers, aquas of fruits, vegetables and cooling herbal ingredients processed to impart its taste. Hakeem Abdul Majeed claimed that Rooh Afza was concocted using Unani medical principles. However, it is said that Rooh Afza means "that which nurtures your soul" because "rooh" means soul and "afza" means which nurtures. “If you look at its color, it enchants your heart. If you taste it, you find its flavor enlivening. In fragrance it excels other flowers. In efficacy it is quite an elixir. Its refreshing and invigorating effect is beyond reckoning. A sharbat like Rooh Afza has never been produced, nor ever shall be."
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P R O B L E M I D E N T I F I C AT I O N Defining the problem and objectives is often the hardest step in the research process. The manager may know that something is wrong, without knowing the specific causes. As we are repositioning Rooh Afza, so our primary objective was enhancing the usage by identifying a new segment with new packaging.
RESEARCH ANALYSIS
We searched questionnaire online on the basis of which we have done research and need analysis and identified the problems. And this research further helps us in making our decision more justified.
SECTION 1 Q1: - About the age groups: Age groups 5----10 11----20 21----40 41----50 51----60
Response 0% 14% 60% 14% 12%
Q2: - About the incomes:
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Income 2000-----5000 5000-----10000 10000-----20000 20000-----30000 30000-----40000 40000-----50000 50000 + Did not mention
Response 18% 16% 18% 16% 12% 0% 16% 4%
Q3: - About the family size: Family size Below 5 5-----10 10----15 Above 15
Response 30% 62% 4% 4%
Q4: - Factors affecting the choice of drink: Factors Quality Advertisements Brand image Family preferences Price Taste Packaging
Results 58% 12% 20% 12% 20% 66% 2%
Q5: - About the brands of ready drinks mostly consumed: Drinks Tops Frost Nestle Shezan Country Tang Pepsi and coke Other gas bottles Other juices Marketing Management
Response 4% 14% 20% 4% 2% 24% 20% 8% 4% 5
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Q6: - Which drink quenches thirst: Options Fruit juices Rooh Afza Jam-e-Shireen Others
Response 37% 39% 15% 9%
SECTION 2
Q1: - Awareness of people about Rooh Afza: Option Rooh Afza
Result 100%
Q2: - People drink Rooh Afza: Options Yes No
Response 82% 18%
Q3: - How did people find it: Options Good Marketing Management
Results 41% 6
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Better Best Just right
18% 14% 27%
Q4: - What extend people are satisfied with Rooh Afza: Options Very much satisfied Just satisfied Not much satisfied Dissatisfied
Results 28% 58% 6% 4%
Q5: - Alterations people want in Rooh Afza: Options Packaging Change Flavor change Color change No change
Results 62% 16% 14% 8%
Q6: - Response of people about Rooh Afza that whether it’s good for health or not: Options Yes No No comments
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Response 54% 16% 30%
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SECTION 3
Q1: - The basic thing that people like about Rooh Afza: Options Taste Color Contents After effects Everything Nothing
Results 56% 14% 10% 16% 4% 0
Q2: - Whether people would buy sachet of Rooh Afza or not: Options Buy it Don’t buy it
Marketing Management
Result 78% 22%
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N E E D A N A LY S I S CONSIDERING ALL THESE NEEDS WE ARE REPOSITIONING IT
It’s purely thirst quenching drink.
As it comes under the category of energy drink and has no side effects apart from other energy drinks like red bull contains caffeine. The Drink has lots of benefits but due to some drawbacks Rooh Afza has become a restricted selling product.
As we are repositioning it 100% of the people are aware of Rooh Afza we just need to promote it as the natural energizer.
66% of the people think taste does matter.
The alteration they want in Rooh Afza is the major draw back i.e., its packaging. 65% of the people want the packaging to be changed and then the color.
It increases the level of glucose in the body which makes consumer energetic so its one of the healthiest energy drinks.
It comes under the category of low priced drinks.
It recognized as Ramadan drink perception of the people plus it gives instant energy.
OBJECTIVE FOR REPOSITIONING
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Rooh Afza is said to be very tasty and sweet. It is often mixed with milk, sugar, and ice. Sometimes people make it with ice cream. Rooh Afza is traditionally made in preparation for breaking the fast during Ramadan, the holy month of fasting for Muslims. Now we are repositioning it as an energizer ROOH AFZA, the purpose for repositioning it is to increase the usage of the product. Now it will be used as energy drink through out the year and make it appealing for every class as an energy drink.
WHY THE NAME ROOH AFZA?
It has not been found out yet how the founder of Hamdard came upon the name 'Rooh Afza'. Some think that this name is the product of his mind. Others express the view that it came from some book of ancient myths and legends. Of such books, one is very famous; the 'Masnavi Gulzar-e-Nasim' which was first published around 1254 Hijri. In this book, the name of a character is 'Rooh Afza' who, according to the writer, was the daughter of Muzaffar Shah, the King of Firdaus (Heaven).
THE CONCEPT
The product concept defines the purpose of the product, its suitability and business advantages for the envisaged market. If a product is derived from a poorly defined concept, no amount of advertising can sell it.
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COMPETITORS
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Rooh Afza
Direct competitors
Indirect competitors
Jam-e-Shireen.
Red bull
Taskeen-e-Rooh.
Gastrode
Shezan squash.
Energile
Tops squash.
Glucose D
Mitchelles squash.
Frost. Nestle. Tops. Shezan. Tang. Coke drinks. Limopani Other gas bottle drinks. Other juices.
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PRODUCT STYLE AND DESIGN Good design contributes to product usefulness. Another way to add customer value is through distinctive product style and design. A sensational style may grab attention and produce pleasing aesthetics. The reason for changing the style and design of Rooh Afza is to attract the higher class as they are magnetized towards attractive and eye catchy packaging. Rooh Afza is bringing in the pet bottle which is east to carry. The pet bottle would be of 300 ml. Apart from the pet bottles, the family packs remain in two different sizes, i.e. 800 ml and 1500 ml. Sachets are also being introduced for the first time which is really easy to use, especially for sportsmen, athletes and people on the field.
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S E G M E N TAT I O N Rooh Afza is now identified as an energy drink, which gives energy instantly that also naturally. As it has all the natural ingredients it is best for people who are engaged in sports activities like professional athletes, students at school/college/university level, then people exposed to the heat of the sun, working out-doors which de-hydrates them and only water can not do the work. An excellent product for health conscious people who prefer having things made out of natural ingredients. Mostly used by citizens living in urban areas.
TARGET MARKET
Primary Target Market:
School/college/university students engaged in sports activities.
Professional Athletes
Club-level Athletes
Field Workers
Secondary Target Market:
All people who are health conscious
Anyone who enjoys sweet drinks
Occasional drinkers (like in Ramadan)
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DEMOGRAPHICS
Age:
13 – 35 (people engaged in sports activities / professional athletes)
20 – 40 (field workers)
8 and above (no field required)
Gender:
Males and Females
Income:
15,000 Rupees and above per Household (A Income Class of Pakistan)
Occupation:
Professional Athletes, Sportsmen, Professionals, Students, Housewives
Family Size:
In Pakistan, the average family size is of about 6-7 people per household
Race:
Any
Religion:
Any
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GEOGRAPHIC S
Location:
Karāchi
Lahore
Faisalabad
Rāwalpindi
Multān
Hyderābād
Gujrānwāla
Peshāwar
Quetta
Islāmābād
Sargodha
Siālkot
Bahāwalpur
Density: Urban & Suburban Climate: Since it is an energy drink it is not restricted to a certain climate.
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PSYCHOGRAPHICS
Life Style: Health conscious people who exercise and avoid energy drinks which have artificial flavorings and ingredients such as high content of caffeine, which is harmful for the body. These kinds of drinks are especially avoided by professional athletes. Social Class: It’s an economical drink which can be afforded by anyone especially the sachet.
BEHAVIORAL
Occasions: The drink is very popular in Ramadan, again the main reason being that it gives instant energy when the fast is broken. But now it will be used all round the year.
BENEFITS
Appended Bellow are some benefits of Rooh Afza: Rooh Afza as a nutrient: Rooh Afza as a nutrient is in the form of invert sugar, glucose and fructose says it all. All these three ingredients give energy naturally without actually harming your body. Rooh Afza for essential electrolytes: It has necessary contents of sodium, potassium, magnesium, calcium, chloride and phosphate, which help keeping the body hydrated.
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Rooh Afza for retention of body water It also has the ability to maintain and finally adjust the body's water balance due to the presence of electrolytes in balanced quantity. Rooh Afza's medicinal properties It has medicinal properties which stimulate and correct the function of the heart, liver and kidney and check vomiting, diarrhea, indigestion and stomach ache. Rooh Afza's soothing and refreshing properties It acts on the central nervous system and the rest of the body to keep them active and in perfect balance.
USAGE STATUS: The usage of Rooh Afza in the market is approximately 82%
LOYALTY STATUS:
People are very loyal towards the name “ROOH AZFA ”, as it has been there since ages and has a very reputable name. The mere mention of Rooh Afza’a name gives out every thing. People know if it’s Rooh Afza then it excels in quality.
AT TITUDE TOWARDS THE PRODUCT:
The attitude towards Rooh Afza is immensely positive. Approximately 82% of the population drinks Rooh Afza. People who like Rooh Afza are crazy about it but people who don’t like it run away from it, but the dislike towards it is very low.
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M A R K E T I N G S T R AT E G Y PRODUCT
You may feel thirsty or just want to have something the then answer to your thirst is the drink Rooh Afza. A refreshing and delicious drink good for sunstroke, quenching the thirst, palpitation, nausea and other summer complains. We have repositioned it after identifying a new segment we are increasing its usage for that we are coming up with small 300 ml bottles easy to carry especially for our new targeted market and sachets for convenience plus 500 ml bottle.
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Keora.
Citrus flowers.
Rose.
Red food Colour.
Preservatives.
PRODUCT LEVELS
Core Product:
A drink that quenches the thirst.
Actual Product
Rooh Afzah sharbat. PRODUCT ATTRIBUTES A refreshing and delicious drink good for sunstroke, quenching the thirst, palpitation, nausea and other summer complains. Because of it’s being in convenient will be available in sachets and small bottles easy tu use for our new segment customers now can have Rooh Afza whenever they want and wherever they want.
PRODUCT BRANDING Rooh Afza is a registered trademark of Hamdard Laboratories (WAQF) Pakistan. Brand repositioning strategy has been practiced by choosing the existing brand name “Rooh Afza” but due to some drawbacks and in order to enhance its usage we are repositioning it. PRODUCT PACKAGING As people are becoming more and more health conscious day by day, Rooh Afza will be packed in 350ml. and satchel easy to carry costly for the firm but customer satisfaction and quality product transfer is a duty of Hamdard laboratories (WAQF) Pakistan.
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PRODUCT LABELLING The labeling of the bottles and satchel Rooh Afza will be highlighting the positioning i.e. “Energizer of the Soul”
PRICE
The following factors were considered in the pricing of Rooh Afza:
Marketing objective i.e. market share leadership through price penetration (lower price for getting maximum market share).
Marketing mix strategies.
Costs.
Other organizational considerations.
The market and demand.
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Consumer perception of price and value.
Competitor’s prices.
Other external environmental factors.
After considering the costs, competitor prices, marketing objectives, consumer perception of price and other factors, the price that have been decided are appended below: Price Rs. 40
Size Pet Bottle 300 ml. Family Pack 500 ml. Sachet 10 ml
Rs. 170 Rs. 5
The prices have been kept low as compared to that of Rooh Afza’s competitors in order to attract a large market and keeping in view the needs of outdoor workers. At this low price with such high utility, no one would forego to buy and enjoy Rooh Afza.
PLACE
Rooh Afza bottles and sachets would be placed at all retail outlets in super markets throughout the country. Keeping in view the target market, it will be made sure that it is available in all the nearby general stores of playgrounds and parks. The distribution will take place from the warehouses from where the distribution vans will transport Rooh Afza cartons to the markets, and deliver the orders according to the demand of the retailer right there.
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Regional Sales Managers would be assigned this task to keep a check on the distribution and supply management to make sure about the availability of Rooh Afza in their designated regions
DISTRIBUTION CHANNELS THE CHANNEL LEVELS
Customers Retailer Wholesaler Stockade dealers Zonal offices Company THE DISTRIBUTION STRATEGY After repositioning the product the strategy we are going to implement is Pull strategy. Through pull strategy demand will be created in the market through effectual promotions and advertisement. DISTRIBUTION AREAS Initially All urban cities of Pakistan Distribution Channel First priority would be to deliver good quality product at the right time.
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Trucks for transportation of drinks from company to the zonal offices.
Vertical marketing system with pull strategy, in order to match the product with customer needs and demands.
The extensive production of Rooh Afza will commence from the month of February and will continue till the month of September. From October to January, production will be done only on sudden demands if necessary so company will hold enough stock for these months i.e. October to January.
PROMOTION PROMOTIONAL OBJECTIVES
Escalating customer awareness of the product.
Escalating customer knowledge about the product.
Escalating customer liking for the product.
PROMOTIONAL APPEAL In promotional appeal we will highlight 3 main product benefits especially for the new segmented market:
It quenches the thirst.
It gives energy, vigor to the body and mind.
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You can have it whenever you want because it’s ready to drink.
PROMOTIONAL STRATEGIES The promotional strategy for Rooh Afza would consist of the following sources:
Advertising.
Sales promotion.
Event Marketing
ADVERTISING
For the first six months, the advertising would be focused mainly on below the line activities because promoting it as an energy drink is the main objective along with spreading awareness about its benefits and how it is useful as a healthy drink. Above the line activities would not be much aggressive as Rooh Afza is a well known product and there is much awareness of the product in the market. Advertising will cover 60% of the budget out of the total Promotion budget. ABOVE THE LINE ACTIVITIES
Newspapers
Jung and DAWN newspaper have the widest readership and circulation among our targeted market; these would carry most of the advertisements for the publication media. Also, the print ads will be published in other much read newspapers like be designed, i.e. half page and quarter page.
Magazines
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Magazines like Herald, Akhbar-e-Jaha and Sunday magazine will have insertions of our full page Ads in order to create understanding and awareness for the product for the new target market.
Television
Tele commercials will be aired on sports channels and news channels as the viewer ship of these channels is highly common among the targeted market. Channels like ESPN, Geo Super, Ten Sports, then , Geo News, Dawn News, ARY World
Billboards
Billboards will be placed at busy thoroughfares in big cities. Billboards will be our most permanent and long lasting form of advertisement. The size of billboard advertisement would be 25 x 10 feet. There are 6 bill boards in the city on different locations which are; North Nazimabad Korangi crossing Defence Gulistan-e-Jauhar Gulshan-e-Iqbal BELOW THE LINE ACTIVITIES
Promotional Vans
Promotional vans would be deployed on public places which would distribute Rooh Afza for free giving out the message of being an instant energy drink. This campaign of free sampling would last for three months at least in order to make people aware of the benefits and the attributes. These vans would be placed at places like Saddar in Karachi, Bara in Rawalpindi, Anarkali in Lahore, etc. Marketing Management
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Contests
Different contests among school/university going students will be carried out in order to spread awareness of Rooh Afza as “THE ENERGY DRINK”.
SALES PROMOTION
To increase the sales with the new target market, offers would be made to the customers. An example of this offer could be “You have a chance to win a 1000 CC Car by purchasing a certain Rooh Afza bottle, a look inside the lid would decide if you’re the winner or not.” .
EVENT MARKETING To capture the new target market .i.e. mainly the sportsmen and field workers. Rooh Afza will sponsor all the sports events for six months.
Sponsoring local street matches As it is a tradition in Pakistan that boys come out in streets and then they have different matches of Cricket, Volley ball, Foot Ball etc, we would sponsor all these matches which would spread awareness of Rooh Afza.
Sponsoring sports events in schools/colleges/universities Students are attracted by all these events and by sponsoring such an event will bring much more publicity.
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This will help in building the demand for Rooh Afza not only for the sportsmen but also people at large because our have the tendency to follow sportsmen and when they will see them drinking Rooh Afza, would also start drink it occasionally, if not regularly
Sponsoring Concerts Every time someone sponsors a certain concert with the best artists it certainly becomes the most talked about event in town. And Rooh Afza has a well reputed name so gathering the best artists will not be a problem, and sponsoring it will certainly put the product in the audiences mind.
S W O T A N A LY S I S STRENGTHS
A popular summer drink that quenches thirst, maintains the water-electrolyte balance, and acts as an instant source of energy for the body.
It is a type of UNANI medicine which has zero side effects.
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It acts as a coolant and enhances resistance towards diseases.
It is recommended by some doctors for weak and old people.
WEAKNESSES
Company’s inability to maintain sales varying with seasons e.g. low sale of Rooh Afza in winters.
Threats
Seasonal variations in sales
Competitors
Ever changing customer preferences like, now customers ask for convenience
Ever changing external environment.
OPPORTUNITIES
As Rooh Afza is inexpensive compared to other beverages, it can generate huge demand and the revenue accordingly.
Population is increasing by a considerable rate per year, giving us another opportunity to increase our market share.
Rooh Afza has a supreme brand image in people’s mind, it can go for line extension and enter the category of pure juices and milk for instance.
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THREATS
The biggest threat for Rooh Afza has always been the competitors in the industry.
Prices and the inflation rate is increasing day by day , this reduces the purchasing power of the customer and the lower income groups could find it difficult to afford Rooh Afza which would directly leave a negative impact on the revenue.
CONCLUSION Hamdard has the most prestigious name for the health care products. With the benefit of the name Hamdard has been immensely successful with its drink “ROOH AFZA. The technology Hamdard has, the domestic market situation and their international experience will surely enable them to maintain their motto. The target market of this product will be mainly the sportsmen, professional athletes, field workers, health conscious and time oriented people. By repositioning Rooh Afza, it will boost its profit and will get more level of customer satisfaction. Hamdard uses refined sugar, distilled aqua extracts of fruits and herbs that give it an exotic flavor. Hamdard always try to provide its consumers
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with the premium quality in hygienic conditions. For Hamdard quality comes first so it has equipped its labs with the latest and best quality machines. Hamdard has set its price within the range of possible prices determine by market demand and cost, competitors cost, prices in which there is hardly any change. For promotion there will be six billboards put up in different areas of the city, ads in newspapers and TV channels. There will also be activities like sponsoring matches and concerts. The opinion of people towards taste and freshness of Rooh afza is excellent. The overall experience of people is good but this should be looked into as more customers are satisfied and the more Hamdard’s goodwill would be enhanced
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