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Supply Chain Management Project (MBA)

VEGIFRO (PVT) LTD.

Project Team Members

1) Abeer Amin 7227

2) Aqsa Akhlaq 7146

3) Samar

Facilitator: Mr. Waqar Ahmed

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Executive Summary

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About the Product (XYZ)

• Product DescriptionVegifro (pvt) Ltd is involved in the production, marketing and the launch of its sole

product. “Vegifro” that is being launched in the market has several key competitors, such as Shezan, Nestle, Frooto, etc.

"Our Apple & Beetroot is made with whole pressed apples and whole pressed beetroot. The delicious blend of sweet apple juice with the rich flavor of beetroot makes this the perfect drink to start your day.

We carefully choose our Beetroot to avoid the harsh, earthy notes often attributed to it - you'll find ours is at once sweet and fruity and when blended with apple juice it is wonderfully refreshing."

• CURRENT DRINK MARKET IN PAKISTAN:

 At the moment in Pakistan there are two major segments in the Drink market i.e. the Natural Drink segments in which there are drink giants like Frooto, Nestle, etc whereas the other segment is of the artificial Drink segment. The natural drink segment of the market constitutes 75% of the total drink market in Pakistan whereas the rest of the 25% is taken by the artificial segment.

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Key Assumptions

List of Competitors in the Pakistani Market

There is some competitor’s market share:•Nestle has leading market share in the industry with 37%•Shezan has 22% market share in the industry•Olfute has 14% market share.•Slice 17%•Local and others 10%

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MARKET SEGMENTATION OF VEGIFRO

GEOGRAPHIC:

•Country: Pakistan.•City: Karachi•After Six months will be launched in Other Major Cities.

 

DEMOGRAPHICS:

•Gender: Male, Female•Age: 10 and above.•Family life cycle: Child, teenage, married, married with kids and aged ones.•Income: Rs. 10000 and above.•Occupation: All

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Management Strategy

Vision Statement

We aim and target to be the unique initiators of an exclusive idea of energy drink. We aim to capture a huge market share in the coming years. Our expected profits are from the very first year of our operations.

Mission Statement•To create a highly innovative, completely healthy and energetic drink. •To positively enhance the quality of life of the people of Pakistan by all that we do through our people, our brands and product.•Our commitment is to maintain the highest standard of our customer's trust.

Competitive Strategy

• Our focus is going to be Karachi initially and after getting success in Karachi, we will go outside Karachi.

• The first issue will require a huge marketing campaign on our side, that is, through billboards, television advertisements, occupying the best shelf space in shops, co branding with different famous biscuits and snacks brand (like Peek Freens, LU, Kurleez, Slanty, Cheers etc.), free samples especially to the high income areas for effective word of mouth., participating in related exhibitions like “Apna Karachi Festival” etc, stalls in different departmental stores and shopping malls.

•  Through co branding, our products will be offered as free samples along with purchase of different famous biscuits and snacks which will build a good image of our product in the minds of our consumers as well as increase the other firms’ profits.

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Marketing Research (Forecasting)

• Product Forecast (Long Term) 2014 – 2018 (Yearly)

• Product Forecast (Short Term) Jan 2014 – Jun 2014 (Monthly)

Year 2014 2015 2016 2017 2018

Forecasted Demand

60,000 100,000 200,000 300,000 400,000

Month Jan Feb Mar Apr Jun Jul

Forecasted Demand

10,000 10,000 10,000 10,000 10,000 10,000

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Marketing Research (Cont.)

• Geographic location of potential customers & Suppliers (Using Google Map)

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Manufacturing Strategy

• Internal SCM Process Flow and process rates

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Distribution Strategy

• Macro Process Flow (Supplier & customers)

• Distribution Channels & Push & Pull Boundaries

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Distribution Strategy (Cont.)

• Facility Location Decision (Using Solver)– Manufacturing Facilities

– Distribution Centres

• Facility Capacity Decision (Using Solver)

• Distribution cost (Using Solver)

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Distribution Strategy (Cont.)

• Strategic Alliances (If any) with justifications

• Service Level Agreements for performance measurement

• Order fulfilment

• Order visibility

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Distribution Strategy (Cont.)

• Google map with complete positioning of customers, suppliers & facilities

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Supplier Relationship Management

• List of Vendors

• Supplier selection criteria

• Make or buy decision

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Supply Chain Integration & Performance Measurement

• Information Flow (Down to upstream)– Customer to Retailer

– Retailer to Distributor

– Distributor to manufacturer

– Manufacturer to Supplier

• Performance measurement across supply chain stages

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Salient features regarding the designed supply chain

• SWOT Analysis

• Technological Requirement

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Backup Slide

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Thank you for your attention

Question Answer time