1.1 Company Profile
The Mian Beverage Company (Pvt) limited has been active in the market since July 28, 2006. The company aimed to achieve a reputation for quality beverages and their distribution in Pakistan.
The company started his business with some products like fruit juices and mineral water, which were available very well in the market of Multan and surroundings and had established the company as a quality-oriented organization. It currently has a product portfolio of 2 products. The company’s products are famous in the market for their high quality.
The company is now planning to further expand their products by adding itself into the energy drink market with the launch of an energy drink named Xtreme.
Our vision is to provide a greatest level of satisfaction through service to our customers along with very high standard of customer service. We have also a vision to offer our customers top quality control of products and services.
The mission of our company to offer good products which are free from artificial colours and provide best quality in a affordable price in order to get maximum market share and develop a trust of the product amount the customers.
1.1.3 Corporate Objective
“At the Beverage Company Pvt. Ltd we strive to operate our company on a sound financial basis of profitable growth increasing for our stake holders and creating career opportunities and financial rewards for our employees”
1.2 Organization Structure
We believe in brand management and therefore follow organization structure for all our brands.
The Brand Manager monitors trends and market activities to ensure that the right message delivered to their customers about their products. The Brand Manager is closely to different teams like Researchers, Marketing, and developers and create agencies to make sure that all of them followed their company’s brand values.
Marketing plays a very important role in every field of business life and Marketing Manager is a person who knows customers needs so his responsibilities can vary enormously but always has a central objectives. As Marketing Managers use a wide range of marketing techniques and think creatively, and introduce new ways of communications with customers.
The Financial aspects of the brand are handled and monitored by the Finance Manager.
The Product Manger is in charge of meeting the set benchmarks for production and mainly the Total Quality Management (TQM).
This project aims to approach in a theoretically and practically manner the main aspects of launching a new product. There will be analyzed one by one all the stages of the launching process of a new product, throughout the project there will be used theoretical concepts from the marketing literature and for illustrating the examples there will be used marketing research results conducted by specialized companies and personal secondary data processing. The issue of launching a new product is not very complex in the field of energy drinks products because the pace of innovation is developing not very rapidly and the competition between producers is very slow (as for as innovation is concern). For a new product to be successful, its necessity, quality and value must be recognized by the consumer, meaning to be tested, accepted and bought in a repeated way
The concept of “new product” has several meanings:
In terms of marketing, the new product is that product which is launched on the market at one moment and finds no equivalent in the existing supply;
From the consumer point of view, the new product is one that has the potential to satisfy a new need or an existing one.
From the company point of view, the new product is any product assimilated into production for the first time by the company.
There are some assumptions from which the producer is tempted to start in creating and launching a new product: a strong brand sells everything; a new product will be sold because of consumer curiosity, a high price is a guarantee of quality for the new product; a strong promotional campaign will convince a significant number of consumers to purchase the product; some consumers will be unsatisfied, so the company should not change the vision and strategy; the product can be improved over time following the users.
Energy Drinks and other new beverages are taking the business world by storm. Some say it’s the new gold rush! Lear how to profit from it. Everyone can start their own Energy Drink or New Age Beverage. The barrier of entry to get into the market is not very high. You don’t need to have millions of dollars to start your own energy drink. You do need some money but you need more vision and work.
Why passion and elbow greaseWell, just because you bottle your Energy Drink does not mean you’ll sell it. Distributors get hundreds of calls per month from new energy drinks, or “JAED” (Just Another Energy Drink). Do something different! Target new people; create a new package, not just another energy drink. Don’t just say “I have the best flavor” or “it tastes better than red bull”. Having a better tasting energy drink is not the basis for a new company. It is very easy to have a better tasting energy drink.
So what exactly are New Age BeveragesWell, this is a new category within the Beverage Industry that covers the new style of beverages. This new “category” is growing and changing. Before only Energy Drinks and really new innovative beverages where part of the category. Now the category has evolved and you can include enhanced water, tea’s, diet drinks, iced coffee and really, any new drink. Every beverage company wants’ to be associated with the “New Age” category because not just because it’s sexier but because the category is growing quicker and investors are looking at it up close.
What are the energy drinksEnergy drinks are non-alcoholic beverages which are intended to provide a quick burst of high energy to the consumer. Cola and coffee drink have long been promoted and known as energy drinks meant to give you a little pick me up, mostly in the form of caffeine and sugar. Jolt Cola in the 80,s was one of the early entries in the energy drink market, with double the caffeine of normal cola. It was marketed towards teen and college students as a way to get an energy edge and keep you awake and energized. Their slogan, in fact, was “twice the caffeine”. Jolt has in fact recently been reincarnated given the success of other energy drinks. What are the most popular energy drinksRed Bull, created by an Austrian company, really defined the category, and was launched in Europe in the late 1980s. Their slogan is “Red Bull gives you wings”, with images of winged bulls flying in their ads and logos.
Japan and Thailand have a longer history of energy drinks and the use of caffeine has been a key ingredient in those countries. Energy drinks acting as an alternative to coffee were first introduced in Europe. In Europe, energy drinks were pioneered by the S. Spitz Company and a product named Power Horse, The market received a significant boost when Red Bull entered the US market in 1997. After this successful market introduction, various beverage companies including Coca-Cola and Pepsi entered the market. Austria-based Red Bull remains the market leader though with an approximate market share of 65%. According to Beverage Marketing, the growth rate of this industry had been doubling every since the late 90s. The current U.S. domestic market may be approximately $4 billion, expected to grow to an estimated US $10 billion by 2010. Recent years have witnessed the emergence of several new energy drinks. They include KMX of Coca-Cola, 180 of Anheuser-Busch, Hansen’s Energy, and Adrenaline Rush of PepsiCo’s So Be. Pepsi had earlier introduced AMP under the Mountain Dew brand and also Extreme Energy by Arizona Beverage Company was launched. Growth of the current worldwide market for energy drinks is estimated at 17.8%. Major producers are focusing heavily on marketing, targeting the promotion of energizing conception, result-oriented marketing and product positioning and a greater push into developing markets.
Energy drinks are typically attractive to young people. Approximately 65% percent of its drinkers are between the ages of 16 and 35 years old, with males being approximately 65% of the market. A 2008 statewide Patient Poll conducted by the Pennsylvania Medical Society’s Institute for Good Medicine found that: 20% of respondents ages 21–30 had used energy drinks in high school or college to stay awake longer to study or write a paper; 70% of respondents knew someone who had used an energy drink to stay awake longer to study or work. Energy drinks are also popular as drink mixers.
The “Mian Beverage Company” is a Beverage firm going to launch a new product in Pakistan. It’s an energy drink product with the name “Extreme”. The firm is going to start its operation in a limited geographical level. The company growth policy is to fulfill the customer need with quality product to grow.
Our product is an energy drink. Now the question here is; what exactly is an energy drinkIs it something that keeps you awake for long hoursSomething that gives you extra energy to work for hoursOr is it a supplement that compensates for the lost salt and water in your bodyWe selected what we felt to be the best combination of ingredients to provide positive results without negative side effects We also wanted Xtreme products to be helpful to a wide range of people, not just athletes or students or some other specialized group. Xtreme offers better taste, better Flavours; it is an energy drink that can be used by anyone and everyone. Xtreme provides better quality and a better image, the competition for energy drinks is high no doubt, but our drink provides a light better tasting with a wide variety of Flavours, better packaged and better imaged energy supplement that can even be used as a substitute for water which can compensate for your body water and salts.
This business is work, but there is a lot of profit in it and even more fun. You have special events, parties, promotions, and you can spin and position your products the way you want, having fun in the process. Why are these drinks growing at 50% per year or moreWhy do we see so many waters, energy drinks, hydrating products, etc. on the market todayThe answer is easy. Consumers are demanding more and more drinks. They want drinks for every occasion or part of the day. They want organic drinks, sugary drinks, healthy drinks and every type of drink to fit their personality, and style.
Diversification strategies are used to expand firms operations by adding new market or product. It seeks to increase profitability through greater sales volume obtained from a new product.
The PEST & SWOT analysis, Product Life Cycle, and Product Opportunity Matrix are very important when you launch a new product so we will go through these analyses and for this purpose we have to study these analyses thoroughly. So for these purpose we use some books, journals and websites to examine these analysis.
In order to launch a new product we must have some information about its origin and history. The term “energy drinks” refers to beverages that contain caffeine in combination with other ingredients such as taurine, guarana, and B vitamins, and that claims to provide its consumers with extra energy (1). This term was created by companies in the beverage industry (1) and is not recognized by the United States Food and Drug Administration (FDA) or the United States Department of Agriculture (USDA.
2.1 Environmental Analysis
2.1.1 SWOT Analysis
SWOT Analysis is a very effective way of identifying one’s (internal analysis that is) Strengths and Weaknesses, and of examining the Opportunities and Threats (the external factors) that one face. Carrying out an analysis using the SWOT framework helps to focus the activities into areas where one is strong and where the greatest opportunities lie.
Mian Beverage has a strong financial background in beverage industry and has some abundant working capital. We have already a strong distribution channel so because of this existing delivery channels we would not face any difficulties to distribute our new product. Our taste is very different and good so it will provide a pleasant change to the customers and defiantly it will create better image of Mian Beverage Company in the market and most important we have a clear knowledge of our target market.
Mian Beverage could face a price pressure from its competitors because these companies like Red Bull, Blue Ox has large market share and they have already create their market.
We have a product that is according to market needs i.e. Low Price and Good Taste that hasn’t been well catered. Also this market has potential to grow further very well. In this situation Competitors might be slow to respond and we should grab this opportunity to increase our sales as much as possible and we should take advantage of people’ increased spending power. A great opportunity is waiting if Xtreme is to be able to provide a low cast good energy drink in the market
The biggest threat for Mian Beverage is a unstable political situation of the country and because of this business conditions of the country is not very favourable for business community. The energy shortfall of the country has reach 5500 M/W and because of this load shedding has increase more than 16 hours daily and under this situation, it is very difficult for company to survive because use of generators is not affordable with high petroleum prices. Other companies in the same business with innovative plans are currently a threat for the company.
2.1.2 PEST Analysis
The term PESTLE has been used regularly in the last 10+ years but its true history is difficult to establish.
For scanning the Business environment first it appears by Francis J Aguilar (1967) who discusses “ETPS’ a mnemonic for the four sectors of environment. Economic, Technical, Political and Social.
Shortly after its publication Arnold Brown for the institute of Life insurance in US reorganized it as STEP (Strategic Trend Evaluation Process) as way to organize the result of his environment scanning. Thereafter it again modified to become a so called STEPE.
In 1980,s several other authors including Fahey, Narayanan, Morrison, Renfro, Boucher, Mecca, and Porter included variations in a variety of orders like PEST, PESTLE, STEEPLE, etc
The term PESTLE is particularly popular on HR and introductory marketing course in the UK.
The acronym PEST (or sometimes rearranged as STEP) is used to describe a framework for the analysis of these macro environmental factors. A PEST analysis fit into an overall environmental scan as shown in the figure.
Source: Proven models
Political/government factors can be affected The Mian Beverage Company in many ways. Food and drink safety and security regulations will continue to be a hot issue as many producers strive to make sure that there will be only good and safe ingredients entering and leaving their processing units. In this industry, bad experience by customers turns into bad reputation. The Mian beverage company needs to be in compliance now more than ever with food and drink safety commissions so that they can ensure that there will be no bad experiences to give them poor publicity.
Government policies can also affect the Mian Beverages business. Sometimes Government policies favor the business but on the other hand can affect the business too. Trade restrictions and tariff can also affect Mian Beverages. If there is a increase in import duty and strengthen their policies regarding import/export then it will also affect Mian Beverages business because Mian Beverages import many products from different countries. Political Stability is also a important factor which may affect Mian Beverages business because if there is no political stability in country then there no continuity of policies and because of this investors feel hesitation to invest his money. Security situation in a country may affect the Mian Beverages business because investor feels insecure about his money and property. Tax policies are also play a vital role in affecting the business because increase in Sales Tax, Income Tax will defiantly decrease the purchasing power of the buyer.
Economical factors can also affect at Mian Beverages business so it is very important to analyze these factors in order to take precautionary measures. If the inflation rate goes up then the result of that purchasing power of the lay man is affected and result of that affect the Mian Beverages business. Exchange rates also affect Mian Beverages because there are many items which Mian Beverages have to import from other countries and if the exchange rate is high then it will defiantly cost Mian Beverages.
Unemployment is also important factor and if the unemployment ration is very high then people purchasing power is also low and it will affect Mian Beverages business. Recession is also a very important factor which can affect Mian Beverages business The increase in Sales Tax is also affect Mian Beverages business because after include Sales tax, the price of many items rise beyond the large number of population and they refused to buy these items which are within their budget before sales tax increase. because if the business conditions of the country are not very good and profit ratio goes down consistently then company have to downsize their employee and the result of that purchasing power of people affect which also affect Mian Beverages business.
Mian Beverages can be affected by social factors because taste, likes and social trends can affect the demand and supply line of the company. If people become more health conscious and they have more awareness then the past then it can also affect Mian Beverages business because many researches said that energy drinks are not very good for health then people may stop to buy the energy drinks.
Today technological factor plays a vital role if a company wants to increase their business and wants to retain their customers. For this purpose Mian Beverages used many IT means. Research and development is a factor which can affect Mian Beverages business. When Mian Beverages launch a new product then in order to analyze customers need and requirements Mian Beverages has R&D development programme for safeguard its loss in future. Technology reduces the labor cost of Mian Beverages which will result increase in profit. For example installation of automatic machines and CCTV cameras to avoid a extra resource in factory and more security guards. Rate of technological change may also affect Mian Beverages business in a way if Mian Beverage is not aware with the latest technology then it is very difficult for Mian Beverages to compete with their competitors and rate of technology change is high then it will impact positively because technology always work for reduce human effort . Technology gives a means and opportunities to cut costs and improve efficiency. All this will be done as per HALAL regulations but keeping abreast with optimum hygiene conditions. No alcohol will be used in our energy drinks. Hygienic conditions are the single most important aspect of our products and services. The focus needs to remain on the customers, atmosphere and the product quality; not so much on the computer systems and the technology trends.
2.2 Marketing Strategies
Marketing” comes from the Latin word merx or mercis meaning merchandise. Originally a market was a large open space where merchandise was displayed for sale, like pictures we’ve seen of large open marketplaces in Third World countries, or today’s farmer’s market. Originally, “marketing” involved selling products in a marketplace. And that is still the core meaning. But professional marketing has evolved to such a high degree of sophistication, like computer science and medicine, that it involves much more than just selling in a marketplace.
A strategy is a long-term plan to achieve certain objectives. A marketing strategy is therefore a marketing plan designed to achieve marketing objectives. For example, marketing objective may relate to becoming the market leader by delighting customers. The strategic plan therefore is the detailed planning involving marketing research, and then developing a marketing mix to delight customers. Every organization needs to have clear marketing objectives, and the major route to achieving organizational goals will depend on strategy. It is important, therefore, to be clear about the difference between strategy and tactics.
For this purpose we some matrix which are as under:
Product Opportunity Matrix
Product Life Cycle
2.2.1 Product Opportunity Matrix
The product/market opportunity matrix identifies four alternative marketing strategies that may be used to maintain and/or increase sales of business units and products: market penetration, market development, product development, and diversification.
Energy drink is a new concept introduced in our market and since our competition is domestic instead of international, our major competitors include Red Bull, Bomba, Bull Power and other energy drinks that have their lead in the market. Xtreme already has its juices and mineral water running successfully, and seeks to develop this new product targeting the existing market segments of the energy drinks at an introductory price, which is not only cheap but also affordable by all.
2.2.2 BCG Matrix
The BCG Matrix is a portfolio planning modal which was developed by Bruce Henderson of Boston Consulting group in early 1070,s. It is based on market growth and market share relative to the largest market competitors. It is a simple tool to access company’s position in respect of its product range and help the company to decide what should they keep, what should they leave and further help them to set their priorities that which product within the company’s product list to give more funded and attention
There are four main components of BCG Matrix which we going to explain further.
Source: BGN Entrepreneur
Question mark in which extreme falls is associated with less market share and high market growth. This suggests that they have potential but may require heavy investment. It is growing very quickly and because of this, consume large amount of cash as they have low market share so they cannot generate much cash. A question Mark (also known as Problem Child) has the potential to get market share and become a star and eventually a cash cow, when the market growth slows, if a question mark doesn’t succeed to become a star, then after might be a year of cash consumption it will degenerate into a dog when the market growth decline. It is very important to analyze the question carefully whether they have the worth to investment required to grow market share.
Xtreme is a business unit having a small market share in a high growth market. We would therefore require resources to grow market share. This is because our initial market share consists of our juices and mineral water.
2.2.3 Product Life Cycle
A new product progress through a sequence of stage s from introduction to growth maturity and decline. This sequence is known as Product life cycle and is associated with the changes in the market situation
Source: Quick MBA
Basically, Xtreme energy drink is in the introduction stage of the product life cycle. Its launch date is 12th of September’11.
2.3 TARGET MARKET
2.3.1Who is our consumers?
The first step in target marketing process is segmentation. We segmented the market aged between 17-35 years because in this segment, we came to know that consumers specially young adults aged 18-23 are increasingly facing too many options to choose from, like Red Bull, Caution, Blue OX, Gatorade etc.
We have selected a target segment rather than the entire market.
2.3.3 Market Segmentation
Market segmentation proves beneficial if it is done correctly. A straight forward approach to segmenting, targeting and reaching a market involves five steps:
Form prospective buyers into segments by characteristics.
Form products to be sold into groups.
Estimate the size of the markets.
Select target markets.
Take marketing actions to reach the target markets.
In segmenting Xtreme’s market, age, outlet type, density, income and life style are all useful characteristics for market segmentation. Age can be divided into various parts such as 16-24 (college students & athletes) and 25-35 (professional athletes). Density segmentation can follow urban and suburban localities. Lastly, lifestyle can by separated into health conscious consumers and those who are not.
Obviously, Multan market is quite large, so selecting target markets would be ideal. We feel that age, lifestyle and outlet type are three niche segments that Xtreme should focus on in Multan to gain sales. I think that focusing on caffeine drinkers (approximately ages 18+), in general, would be a wise decision because Xtreme can be a substitute drink for caffeine beverages like coffee. We also think that focusing more specifically on college students and athletes as well as professionals, aged 15-35, and would benefit from Xtreme tremendously because these two segments are the company’s main consumers. After all, some of the main benefits of Xtreme are to help improve physical endurance, concentration, reaction speed and increase mental alertness. Also, focusing on health conscious consumers would account for people who are concerned
2.4 GAP ANALYSIS
GAP analysis is a tool which companies are used to check their self that where they are and where they want to go in future.
The Mian Beverage Company Pvt Ltd carried out a survey and found that the people we should be targeting are from the middle class and the upper middle class, who have a household income of Rs.40000 and above. In Pakistan it has been noted that the majority of energy drink consumers which comprises mostly of men continuously change brand, so thus there is no brand loyalty for energy drinks in Pakistan. And as energy drinks are new to Pakistan, the market share for any specific brand is not determined as yet. On doing a survey we concluded by the results that the majority target market is willing to pay Rs.31 to Rs.60 for a good nourishing and good tasting energy drink.
In the market we have seen that there are two kinds of energy drinks targeting the market extremes. At one side there is Energile, Glucose D, Habib Insta energy etc and at the other side there is Red Bull, Horse Power, Bomba etc.
The market segment, which we are targeting, comprises mainly of people who have a busy life style and need to keep energized to get through the tough day. So therefore they need something, which provides them with energy throughout the day. There are some imported drinks in the market, but they are expensive as they are imported.
The energy drink industry is still in its birth stage in Pakistan and is highly disorganized and fragmented. There are no large-scale competitors present and only a few international players exist in the markets that sell their products via very upscale retail outlets catering to the very elite of our society. Technically, at the moment, there is no pioneer in the Pakistani markets. However, the product will face a high level of competition from these international players that are increasing their supply of the product in the market day by day.
Many new soft and energy drinks have been developed in recent years, worldwide, offering consumers a multitude of more interesting and unusual alternatives to standard soft drinks and alcoholic beverages. The Pakistani markets are experiencing a change in trend towards drinks that aid some type of lifestyle activity, the best example being energy drinks, such as Red Bull. Excluding Pakistan from the list, there are many countries in which energy drinks have become associated with young people who frequent the clubbing scene.Pre-mixed and flavored energy drinks tend to appeal to consumers aged between 17 and 34 years old. To meet the demands of these consumers, new energy drinks are coming up every day in the Pakistani markets. Furthermore, one of the recent launches of these kinds of drinks in Pakistan includes Iced tea by Nestle. Our most notable competitors in the market are:
Red Bull energy drink.
Sting energy drink.
Boster energy drink.
Powerful energy drink.
EMU energy drink.
Although the firm will be facing a tough competition with these international companies, but still it would do much better sales then these firms. That is because we will open up our very own retail outlets and the availability rate of our product is going to be much higher then the rate of these international energy drinks. Besides this, price
*These are the prices currently offered by our competitors in Pakistan.
*These are the prices we are offering with the various flavours of Xtreme,
Xtreme Live Wire (Lime)
Xtreme Punch (Fruit Punch)
Xtreme Hot Rod (Black Current)
Xtreme Blast (Orange)
Once the author is done with a great discussion about the literature related to the topic of this current research, the next job as per the structure defined at the beginning is to describe the research methodology. The importance of the research methodology chapter in any kind of research cannot be ignored as it is the actual chapter in which the actual research is going to be done to gain the information and data so that the research can be carried out successfully. All the sciences have their own procedures and rules on which they are based to prove their validity. The scientists of any science carryout experiences to evaluate the truth of knowledge got from their observations, experiences and area of study. Same as other scientists of other sciences business analysts also carry out their research and present their research and findings. This research could be useful because this research could be an attempt to move from a specific point to general to make boarder form with the strategic objectives of the companies. When these peoples work according to their set plans and objectives, then the procedure according to which they take on their activity is called methodology.
In research method, Simpson (1954) defined is Methodology is that organized packet of principles devised to elicit or obtain information about certain areas of study. He furthers says that with known methodology one can work in an organized way. In every field of study certain methodology is available which is a guideline for researches to work on specified directions to achieve their goals. Other authors explains the methodology chapter as a principle which help the author to evaluate the subject topic through collecting data and information related to the topic which is then analyzed for the results. (Ronald Leroy Burback. 2008) In every research, the author utilizes the data of two different kinds, therefore, primary data and secondary data. The research methodology has been defined as a chapter in which the overall layout of the research is defined and the author can then follow this structure to compete the research processes.
Market research provides businesses with information about their customers, their competitors, and their overall industry. It is commonly used to identify marketing problems and opportunities, as well as to develop and evaluate the effectiveness of marketing strategies. Small business owners, because of their usually limited financial resources, have a particular need for adequate, accurate, and current information to aid them in making decisions. Although market research can be costly and it is often even more expensive when we make decisions based on bad and inadequate information.
3.1 Overview of the Research Methods
The importance of the research methodology chapter in any kind of research cannot be ignored as it is the actual chapter in which the actual research is going to be done to gain the information and data so that the research can be carried out successfully. The research methodology has been defined as a chapter in which the overall layout of the research is defined and the author can then follow this structure to compete the research processes. In this research study the author is going to adopt the research of both kinds therefore, Primary and secondary. And the in order to collect primary data, the author is going to use the use primary technique that is known as questionnaire in which he is going to ask the respondents about different related questions so that the information related to the topic can be acquired.
Positivist is an important research approach within the information systems discipline. The basic principle of positivism is that all factual knowledge is based on the positive information gained from observable experiences and that any idea beyond this dominion of demonstrate able fact are metaphysical. Only analytic statements are allowed to be known as true through reason alone. Thus ‘Roses are flowers’ is analytic, whilst ‘Roses are fragrant’ is synthetic and requires evidence. The six tenets of Positivism are:
Naturism 2. Phenomenalism3. Nominalism
4. Atomism 5. Scientific laws 6. Facts and values
According to Bradman et al, (1998) the positivism philosophy uses more primary research methods in which questionnaires, interviews and surveys can be utilized as research techniques to make sure the data is collected in quantitative form.
Realism is a research method and its philosophy is measured as an approach in which considered only those things exist in the nature, which can be seen, felt and remaining things are excluded from the reality. So the author believes that this thinking move him toward an approach in which reality are reviewed and analyze through scientific methods.
Interpretive studies assume that people create and associate their own subjective and inter subjective meanings as they interact with the world around them. Interpretive researchers thus attempt to understand phenomena through accessing the meanings participants assign to them’
The interpretive research approach towards the relationship between theory and practice is that the researcher can never assume a value-neutral stance, and is always implicated in the phenomena being studied. There are certain situations and cases of studies where there are factors and realities are available however, there are no proper proof available thus requires more interpretation from the author so that hypothesis and theories can be tested through natural realities. In such cases, the authors prefer to use the interpretive philosophy because it is best suited. Using interpretive techniques or philosophy the phenomenon between the social factors and the realities is created which is then justified through the data which is collected with the use of qualitative methods.
One the author has examined all the research philosophies, the next step for the author is very critical in which the author has to choose the right philosophy for the research. The selection is made on the grounds of the objectives and aims of the research therefore he has decided to choose Positivism Approach for the current research.
3.2 Research Methods:
The information gathered from market research can be divided into two categories. The first type is primary information and in order to collect the primary data the author is normally use questionnaires technique in which he asked to the respondents about different related questions so that he gets information about his proposal. The some other methods to collect Primary data are direct mails, telemarketing and personal interviews.
The second type is secondary information. Secondary research occur when a project requires a summery or collection of existing data. These secondary sources could be include Previous research reports , newspapers, magazines, journals, and Government or NGO statistics.
This research will look for both Secondary and primary data. The source of primary data would remain the interviews and question papers. The primary data further divided in two types i.e. Qualitative and Quantitative.
Qualitative data is extremely varied in nature. It includes virtually any information that can be captured that is not numerical in nature This method is used to exploring issues , understanding phenomena through the analysis of understructure information like interviews , open end survey , emails , notes , feedback forms and this information can be used to make business decisions and form a policies.
Quantitative research is about asking people for their opinions in a structured way so that you can produce hard facts and statistics to guide you.
Our company will go for both researches primary as well as secondary. Furthermore, the study would be mostly inclined towards the qualitative research. However, the interviews would be mainly via telephone, Skype, Feedback form, questionnaires and email. Quite understandably, considering the limited population the sample would be selected based on convenience and snowball sampling (William, 2009).
3.2.3 Comparison of Qualitative and Quantitative research methods
“All research ultimately has
a qualitative grounding”
“There’s no such thing as qualitative data.
Everything is either 1 or 0”
The aim is a complete, detailed description.The aim is to classify features, count them, and construct statistical models in an attempt to explain what is observed.
Researcher may only know roughly in advance what he/she is looking for.Researcher knows clearly in advance what he/she is looking for.
Recommended during earlier phases of research projects.Recommended during latter phases of research projects.
The design emerges as the study unfolds.All aspects of the study are carefully designed before data is collected.
Researcher is the data gathering instrument.Researcher uses tools, such as questionnaires or equipment to collect numerical data.
Data is in the form of words, pictures or objects.Data is in the form of numbers and statistics.
Subjective – individuals? interpretation of events is important ,e.g., uses participant observation, in-depth interviews etc.Objective ? seeks precise measurement & analysis of target concepts, e.g., uses surveys, questionnaires etc.
Qualitative data is more ‘rich’, time consuming, and less able to be generalized.Quantitative data is more efficient, able to test hypotheses, but may miss contextual detail.
Researcher tends to become subjectively immersed in the subject matter.Researcher tends to remain objectively separated from the subject matter.
3.3 Exploratory Research
There are differences cases and different kinds of the researches. Each research has a different principals and requirements. Exploratory research is conducted to clarify ambiguous problems. Management may have discovered general problems, but research is needed to gain better understanding of the dimensions of the problems. Exploratory research is conducted into an issue or problem where there are few or no earlier studies to refer to. The main objectives of exploratory research are as follow.
To establish, a classification of marketing research projects into two main categories: exploratory research and conclusive research.
To describe the proper use of focus groups in exploratory research and to clarify their limitations.
To describe the case study method, its uses and its limitations.
Sometime the data is not available to the required amount even primary research does not provide a sufficient data.
3.4 Descriptive Research
Descriptive research is mostly based on the behavioural studies and attitudinal studies because the information and knowledge can be formatted in descriptive format. For the descriptive research methods, the author normally adopt primary research methods, therefore, surveys, interviews and different kinds of observations which help the author to collect behavioural information about the topic of the study from the respondents.
3.5 Casual Research
In order to find out the differences between the causes and effects, the authors are recommended to use causal research methods. (Kotler et al, 2006) This research is also known as experimental design through which the experiments done in different libraries are examined through different methods. There are different variables involved in the research which are examined and those variables can be independent or dependent and their natural relationship is also determined through causal research.
In the following table, the author has mentioned the differences between the two approaches;
Begins with theory and move to hypothesis followed by focus on research objectives.
Starts with close understanding of research
Uses quantitative approach to research
Associates with qualitative approach to generate theory
Promotes idea of experimentation to test hypothesis
Generates new theory for research emphasis
Source: Saunders M, P. Lewis et al (2007)
3.6 Data Collection:
It is the most important part of the research where author has be very careful in selecting the right method for his research. The cost, Duration and results can be changed due to the difference of data collection.
3.6.1 Primary Data Collection
The first part of the data collection is a primary method but it is very expensive and time consuming because in which data is directly collected from respondents. The advantage of this method is that it focus on the specific issue while in secondary data may contains details which is not necessary for your research.
3.6.2 Secondary Data Collection
As compare with Primary data , this is very easier and less costly. Through secondary data collection method information is collected indirectly and is available to the author through different means. The data which we get is more reliable because this information has already been used by some other. Researchers.
It is a method to get the primary data and used when author wants to get the response from many respondents and author used this method where the data can be compress into small format for easy analysis. There are two types of questions. One has open ended question and respondents has the option to add something as his/her views and the other type is close ended question which has some specific choices.
3.7 Justification of the Research Application
The questionnaires method has been used in order to get the information for this research and as per the requirement of the topic this is the best method which author can be used for his study. The reason, why author used this method is that the information got through this method is quality of information. The author is provide the questionnaires to those people who are between the age of 16 to 35 and respond from them is more reliable as all the respondents are the people related to this research.
3.8 Limitation of Research
In every research there are always some limitations which are difficult to remove from the research. If the author is well aware about these limitations then author can at least take precautionary steps in order to reduce their negative impact on the results of overall research. Sample size can play a vital role in a manner that if author is able to control the sample size without affecting over all research results.
Summary of the Response Details
This part of the project is based on to collect the data and then analyse it after convert it into tabular form and graphical representations. The data collection through questionnaires cannot be neglected because we collected this information through a most reliable source which is questionnaires and it is very important to conduct a survey. The sample size is 30 to whom Author given questionnaires and asked them to fill it and all of them filled their questionnaires and returned to the Author. It was also assured to them that their personal information will be kept confidential under data protection act.
4.1 Age Distribution.
16 – 25
26 – 35
4.2 Gender Distributions.
4.3 Change of Taste.
4.4 Brand Consciousnesses.
4.5 Boost of Energy.
4.6 Energy Drink is harmful for health.
4.7 Affordability of Price.
15 – 30
31 – 60
61 – 90
91 – 120
4.8. Reason to buy a new Energy Drink.
4.9 Use of Caffine is addictive.
4.10 Purchase of new energy drink
4.11 Interest to buy the Xtreme.
4.12. Alternative Energy drinks.
4.13 If this product were available today, when would you be most likely to buy it?
Within next month
Between 1 and 3 Months from now
Between 4 and 6 Months from now
Between 7 and a year from now
I am not interested
In project research when we completed the data collection then the next step towards the project completion is data analysis. The organizational strategy and mindset linked associated with its approach to gain the more profit and good reputation of the company. For the this purpose different organization use different kind of methods and techniques like Competitive price, availability, right product to the right place etc. in order to check the Author’s hypothesis weather the data collection and response from different kind of people is in favor of Author or not Author must analyze the data received.
5.1 Age + Gender Distribution
The above calculated results show that among the participants 60% are men and 40% are women who took part within this survey. Author received the response from the different age groups but the major response received from 16 to 35 and according to them male percentage is very high. The respondents have been divided according to their age groups. The collected results are quite understandable those tells that most of the participants belong to the age group of ‘20-30’, 10% belong to ‘Under 20’, 20% belong to ‘31-40’, 105 belong to ‘41-50’, 10% belong to ‘51-60’ and another 10% belong to ‘Over 60’. The results tell that most of the participants who participated in this survey are from the age group of ‘20-30’.
5.2 Change of Taste + Brand Consciousness
It is a general perception that company brand and name plays a vital role in order to sale any product but Author’s response which he got different people of different age group is quite opposite from above stated because 67% people told that they are not brand conscious and if they get taste and good price from some non famous company they do not hesitate to buy a new product and among them 77% people shows their intentions that they are ready to change their taste. 43% people are ready to purchase a new energy drink and 40% told probably and it is also a positive sign for the author.
5.3 Boost of Energy + Harmful for Health
Energy drinks are the most cheap and affordable way to boosts the energy and it is also proved through the response which Author received from data collection that 67% people endorse the statement that energy drink is most affordable way to increase the energy but on the other hand there is a continuous research ongoing that Energy drink is really harmful for health but there is still some diversion on that opinion that weather massive use of Energy drink is harmful or moderate use is also harmful. 43% people are agreeing with the above stated statement but on the other hand Author also got the response from 50% people they don’t know about this. This is a positive sign but there is a possible loss on profit if in upcoming days people get more aware and become health conscious.
5.4 Use of Caffine is addictive
The above results clearly shows that 70% respondent agree with the statement that high use of cafine is really addictive, 20% don’t know about it and only 10 % disagree with this statement. In every Energy drink caffine is used but its quantity is bit high rather than Tea and coffee and there is a discussion in the world that is caffine is addictive or not and 70% people think that yes. It is also very alarming for the author.
5.5 Affordability of Price + Reason to buy New Drink
The affordability of price and availability of the product is an important part of any business when there are already some product of the same kind exist and 47% people respond to the that both these things will encourage them to buy a new product and 77% people shows their price range below Rs:60 so it will defiantly help Author to decide their price of the product.
5.6 Interest to buy Xtreme + Competitors
As Author knows that already there are different brands in the same market so Author must know that who is the most competitive competitor of his product and response from the populations showed that Red bull (37%) and Sting (27%) are the major competitors. If a company wants to launch a new product then it must know whether people are interested to buy your product or not. Author received the response from 57% people that they are ready to purchase new product and 50% people showed their interest to buy within next month if there is the availability of the product.
In the previous chapter the results which Author got were analyzed and discussed comprehensively. In the current chapter the complete study process and findings and then we get the conclusion of this research. The main purpose of this research is to wrap those factors which have still not be discussed and mistreated.
Environmental analysis is very important before launching a new product in the market. In the process of analyze environmental factors SWOT and PEST Analysis plays an important role and this analysis can be applied successfully for the efficiency and productivity of the company.
Marketing Strategies are also have a vital role in order to place a new product in the market because today is age of marketing and every company use different marketing strategies but for this purpose every company must know that under which strategies where is its position. Product opportunity matrix, BCG matrix and Product life cycle are very important strategies which give you a clear picture that where is you now and how to step ahead towards success.
Target marketing is a also very important aspect of this research and this segment of research helps the Author about to apply right marketing tools to the write people and right place. As this is the Energy Drink so people age 16 to 25 are the best customers which company must approach so market segmentation is very important in order to launch a new product.