marketing plan sm jaleel

SID Number: 1319302/1

1.0 INTRODUCTION

S.M Jaleel is part of the Beverage Manufacturing Industry in Trinidad and Tobago for over

eighty nine (89) years. It was established in 1924 and is deemed to be the oldest and largest

manufacturer of nonalcoholic drinks in the English-speaking Caribbean. The main headquarter

for this enterprise is currently located in Otaheite Industrial Estate, South Oropouche, Fyzabad in

Trinidad. Their operations extend beyond local markets, to include regional in the Caribbean and

international such as United States of America, Canada, Latin America and Europe. A variety of

products from water to carbonated drinks to fruit juices exists. Water is one of their top sellers.

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2.0 ANALYSIS OF COMPANY SITUATION

SM Jaleel’s Vision Statement

“To strive towards being leaders in the non-alcoholic market, making our people the cornerstone

of our success, as we work together in a globally-focused, dynamic environment based on trust

and sound values, providing all-encompassing beverage solutions that meet the ever changing,

evolving needs of our customers.” (SMJ, 2010.)

This statement is deemed suitable for the company since it clearly states their drive to be the

foremost producer of non-alcoholic beverages. Furthermore, it explains their work ethic which is

based on sound morals and trust that will promote an environment suitable for success and can

meet the constant changing needs of clients.

Financial Summary

There were no financial figures available.

Sales are high and continuously increasing. The cost of sales is high because of high running cots

of transportation, manufacturing, exporting and overall factory operations. Profit margins are

continuously rising in spite of competitors existing in local and foreign markets.

SM Jaleel’s Present Marketing Mix

1. Product Water products range from brands such Viva, Oasis, Island Mist, Cool Runnings and Mr. Pelier.

Soft drinks such as Chubby Fruit Juices e such as Fruta and Kool Kidz Energy drink produced is Turbo. Packaging - plastic bottles

2. Price Cost-plus price strategy used.3. Place Indirect channels of distribution :

Distributors, wholesalers and retailers purchase to resell the products.

Deliver the products to target markets via supermarkets, pharmacies, vendors, school cafeterias and restaurants.

4. Promotion Target markets are differentiated and more than one target markets are selected.

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Television and radio adverts range from targeting kids in relation to chubby to targeting adults such as fruta.

Billboards and newspaper adverts are used as well.

Use of social media such as Facebook exists.

Transport trucks with logos and pictures products.

Competitions. Free gifts with purchase are also used. Family days such as Caribbean Cool Fun

day Sponsorships of national events. The “S.M

Jaleel Foundation” is charitable venture that allocates a portion of the company’s profit to pre-approved causes.

5. People This does not apply since consumers do not purchase directly from the company, only through intermediaries.

6. Process Not applicable since consumers do not purchase directly from them.

7. Physical Evidence Not applicable since this is a manufacturing company and mainly sells to businesses and does not have a sales building.

Table 2.1 - The Present Marketing Mix for SM Jaleel.

Source: SM Jaleel, 2010.

The table above shows the present status of the company. Products range from soft drinks to

juices. Water products include 5 major brands. Viva is flavoured water offered by SM Jaleel.

Pricing is reasonable and well within the going rate of non-alcoholic beverages. Intermediaries

are used since many wholesalers, distributors and retailers purchase from SM Jaleel and resell

products through different avenues. Different promotions are used to attract target markets

existing within the general public.

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3.0 ANALYSIS OF MARKET SITUATION

Analysis of Current Market Situation using PESTLE

Political Factors Trinidad and Tobago's trade agreements :- Bilateral Investment Treaties Economic Partnership Agreement

(EPA) CARICOM Trade Benefits Bilateral Trade Agreements

Source: Ministry of Trade, Industry and InvestmentEconomic Factors Inflation rate at 5.9%

Food price inflation rate at 10.6% 7.5% prime Lending rates Labor force comprising of 616,500 people Estimated annual growth rate of GDP at

0.7%Source: Ministry of Finance and the Economy, 2012.

Socio-economic Factors 75% of people employed in the food and beverage sector are full time employees.

Unemployment rate 4.9% Rise in obesity rates

Source: Ministry of Finance and the Economy, 2012.

Technological Factors Highly innovative bottling equipment Fully automated production lines Electronic media such as television, radio

and internet accessed through digital devices

Source: Student research, 2013.Legal Factors Bottles’ labels on packaging enforced.

Must include: Be in country’s language. Country’s origin. Expiration date Ingredient list Net contents Preservatives Colourings Additives Flavorings Name and address or the

manufacturer or distributor. Beverage Container Bill law enforced:

Recycling of waste plastic bottlesSource: Trinidad Express Newspaper, 2013

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Environmental Factors Increase of recycling of plastic bottles.Source: Student research, 2013.

Table 3.2 - Analysis of External Market Situation using PESTLE model

Table 3.2 shows the factors that exist within Trinidad and Tobago that externally affects the

Beverage manufacturing industry. Political factors such as being a member of CARICOM allows

member states to conduct business within each other’s’ countries with benefits such as right of

establishment without restrictions. Economic factors such as high inflation rates affect the prices

of supplies needed and finished products. Socio-economic factors such as rise in obesity rates

affect sales of the beverage industry. There are high technological avenues being used to help

manufacture effectively and sell products to wide target markets. Legal factors include strict

reinforcement of packaging and labeling on pre-packaged products. Also, the Government is

implementing a bill for recycling and waste infrastructure to ensure people dispose properly of

plastic bottles. Environment factor such as increase of recycling plastic bottles is evident.

Analysis of Current Market Situation using SPICC

Suppliers

Raw materials for drinks are bought from local, regional and international suppliers. For example

oranges and grapefruits for the fresh fruit drinks are bought from local farmers and other estates

throughout the Caribbean.

Publics

Media publics promote the issue of unhealthy drinks such as soft drinks which indirectly affects

SM Jaleel. The general public’s attitude to SM Jaleel products is positive since people enjoy their

products.

Intermediaries

This exists since wholesalers, distributors and retailers purchase from SM Jaleel and resell the

products in different locations.

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Customers

Customers are more business companies. Hence this is described as “B2B” which is Business to

Business model. Target markets are segmented for each product and there are more than one

target markets aimed at.

Competitors

Direct competitors of water products; exist locally for example: Blue Waters, Coca Cola, Solo,

and Blue Mountain. Indirect competitors in the beverage industry include Carib and Angostura.

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4.0 COMPETITOR ANALYSIS AND SWOT

Competitor Analysis

Two main competitors of SM Jaleel that sell water products that exist locally are

1. Blue Waters

2. Solo

Blue Waters Present Marketing Mix

Blue Waters mainly produces water products and also distributes the monster brand of energy

drinks. Indirect channels are used for the distribution which includes retailers, wholesalers,

distributors and vending machines who purchase their products to sell.

SWOT for Blue Waters

Strengths Quality Testing is done by

CARIRI(Caribbean Industrial Research Institute) on a weekly basis

High brand recognition Brand is established Aggressively marketed both locally and

regionally

Weaknesses Variety of products manufactured is not

great Negative comments about the use of plastic

bottles by the media.

Opportunities Flavored water can be introduced to the

product line participation in more sporting events Can be aligned with public institutions

where the workforce is highly populated through the use of vending machines

Threats intense competition from other

manufacturers there is a rise in the importation of bottled

water

Table 4.3 - The SWOT analysis for Blue Waters.

Solo Present Marketing Mix

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Solo products include apple J and pear drinks, natural juices, RC cola and upper 10, bentley,

mango, aqua pur, fruit flavors, drink mixers and diet flavors. Their products are distributed

locally and internationally.

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SWOT FOR Solo

Strengths

High brand recognition Winning gold medals for taste quality Wide variety of products

Weaknesses

Water product(Aqua Pur) not marketed at full scale

Seldom introduction of new innovative products

Opportunities

Can have vending machines in all schools Increased international marketing for the

water product

Threats

Competitive market Bad publicity of plastic bottles

Table 4.4 - The SWOT analysis for Solo.

Analysis of Beverage Industry using Porters 5 forces

Threat of New Entrants Low Requires high investment costs for

equipment, resources and skilled workforce.

Bargaining Power of Suppliers Low There are many suppliers of raw materials

for beverage industries locally, regionally and internationally.

Bargaining Power of Customers High Many suppliers with similar products,

hence customers have many choices.Availability of Substitutes High

Many competitors exist locally, regionally and internationally. Local competitors include Coca Cola(Dasani) and Solo (Aqua Pur)

Rivalry within Industry High Many competitors vie for sales for their

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products.Table 4.5 - Analysis of the Beverage Industry in Trinidad and Tobago

Source: Student research, 2013.

Table 4.5 shows all the factors that culminate to form an attractive but hard hitting industry to be

in. Threat of new entrance is low because of the high running costs that exist. Suppliers; power

is low because many exist that companies such as SM Jaleel can purchase from. Customers have

the ability to choose from many choices on the market hence their power is high. Many products

similar to SM Jaleel products exist on the market. There is high competition among

manufacturers of products.

SM Jaleel’s SWOT Analysis – Short term

Strengths1. Brand equity is high since products are

well known locally and abroad.2. Product brands are easy to recognize since

they are promoted extensively.3. Existing is customer loyalty toward

products. For example kids enjoy the taste of Chubby.

4. Beverages are halal and this appeal to Muslim community.

5. Currently, recycling initiatives are present. Plastic bottles, metal cans and pallets are sold to recycling companies. Moreover, ten percent of rejected bottles are reused. Furthermore, wasted water in special pipelines is reused for cooling equipment.

6. SM Jaleel is a member of International

Weaknesses1. There is negative publicity since soft drinks

are not beneficial to health.2. There are also negative views on usage of

plastic bottles and metal cans. Environmental concerns are developing rapidly.

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Bottled Water Association. This way they are monitored externally by an independent third party and ensure maintenance of quality standards.

Opportunities1. Training sessions and seminars can be

implemented for sales departments and those who come into contact with customers.

2. There can be improvements to products with respect to fruit juices and soft drinks and the amount of sugar added.

Threats1. There is intense competition in the

beverage industry that exists locally, regionally and internationally.

2. There is a rising concern for health.3. Currency fluctuations can affect SM Jaleel

since they purchase raw materials regionally and internationally.

4. Diseases can spread through orchards and this can affect acquiring resources for fruit juices.

Table 4.6 – SWOT Analysis for SM Jaleel over 1 year.


SM Jaleel’s SWOT Analysis – Long term

Strengths1. There is increased awareness of brand due

to constant marketing.2. SM Jaleel is in the local, regional and

international markets.3. There is more training sessions for

employees to know how to deal with customers.

Weaknesses1. Undesirable views about using plastic

bottles and metal cans.

Opportunities1. Brand image can be improved to promote

more sales.2. Promotions are updated to keep customers’

interest.3. Less use of resin in plastic bottles to help

promote more “environmental friendly” image.

Threats1. There is intense competition in the

beverage industry existing locally, regionally and internationally.

2. Health issues are prominent with respect to increase diabetes due to sugar content in soft drinks and fruit juices,

Table 4.7 – SWOT Analysis for SM Jaleel for 3 years

Source: Student researcher, 2013.

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5.0 NEW PRODUCT

Overview of New Product

A new product will be introduced to their Oasis water product line. The new product is a mint

flavored water in an environment friendly packaging. The name of this is MINTON. It can be

introduced in a small size for kids and a bigger bottle can be used for teen and adult

consumption.

Marketing Objectives

1. Short Term: To increase sales by 10% of existing water products’ sales in introducing the

new product Minton at end of 2014.

2. Long Term: To increase sales by 30% of existing water products using promotional

activities at the end of 2016.

Marketing Strategies

Ansoff's Matrix will be used since this is a growth tool that will help enhance the company's

profits.

Existing Products New Products

Existing Markets

New Markets

Figure 5.1: Ansoff's Matrix

Source: Adapted from Kotler, 2008.

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Market

PenetrationProduct

Development

MarketDevelopment Diversification


Marketing Strategies that will be used by SM Jaleel are :-

1. Short Term: Product Development

Introducing a new product to the line will benefit the company in reaching the existing clients

and increase profits quickly

2. Long Term: Marketing Penetration

Promotional activities will be used to market existing products to existing clients which will

generate profits.

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6.0 FUTURE MARKETING STRATEGIES

Short Term: Product Development Strategy

Product

New product that will be introduced is mint flavoured water called "MINTON". The ingredient,

mint extract can be sourced locally and regionally. The packaging for this product will be

available in to two (2) sizes, 12 fluid ounces will be for the kids and 24 fluid ounces, for the

adults. The bottle will be produced with 35% less plastic and 15% plant based. The two sizes of

bottles will have the same design. The mouth of the bottle will have a flip type cover rather than

conventional screw type caps so the flip type will make it easier to open. The packaging will

have conical rings shaped into it that spans from the top and finishes at the bottom. When the

product is consumed the customer can easily compact the bottle with minimal force into a flat

disc shaped object. This is possible due to the conical rings within the packaging however when

the bottle is filled with the contents the packaging holds its structural integrity and this is

important when being transported or stored.

Price

Price skimming strategy will be used. The price will range from $5 - $5.50 for the 24fl. oz. and

$3- $3.50 for the 12fl. oz. This price will accommodate for new packaging of the product.

Place

Indirect distribution will continue to be used since intermediaries are already used. This also

keeps costs down and investment return will be faster since products can be sold in bulk and

money gained can be used to re-invest. A wider target market is reached since middle men have

more strategic location set up for customers to easily get the product.

Promotion

Mass Media will be used to attract general public. Television advertisements can be aired twice

per day for two times per week on popular local channels such as TV6 and CNC3, during the day

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will be focused on kids while at night can be targeted to adults. Radio advertisements can be

aired two or three times per week at peak times such as evenings between the hours for 4pm and

7pm. Newspaper advertisements will be used in promoting new product and can be published

three times a week in popular newspaper such as Trinidad Express or Trinidad Guardian. Internet

marketing will be used on social networking sites such as Facebook and Twitter and on

company's home page. Billboards will be used throughout the year for different occasions. For

example: during Christmas advertisements with a theme such as Santa Claus drinking the

product.

Sales Promotion will also be used in form of a competition to win elite prizes. To enter this

competition, customers will have to buy the product to get the proof of purchase. Also, free gifts, such as

cooler bags, back packs, t-shirts and novelty items with purchase of two(2) cases and over of the product.

Public Relations will be used in the form of sponsoring community sporting events such as cricket training programs and football matches. A Press release of new product can be sent to media about overview of the product and how environmentally friendly it is.

Process

This is not applicable since consumers do not purchase directly from SM Jaleel.

People

This does not apply since consumers purchase from retailers, wholesalers and distributors.

Physical Evidence

This does not apply since it is a manufacturing company.

Long Term: Marketing Penetration Strategy

Product

Existing products of water will remain the same. However packaging will be improved with 35%

less plastic and an increase percentage to 25% plant based to have the packaging even more

environmentally friendly.

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Price

Current price will be maintained at the range $3-$3.50 for the 12fl. oz and $5for the 24fl oz.

Place

Indirect distribution channels will be continued to be used. This ensures that product turnover is

fast and generates faster profits.

Promotion

Mass Media will be used. Television advertisements will be aired on popular stations such as

CNC3 and Gayelle. Radio advertisement for existing products can be aired during the hours of

4pm to 7pm three days per week. Online marketing can also be used via channels such as social

networking sites which include Facebook and Twitter. Sales Promotion will be used in the form

of selling bonded packs of Oasis and Viva which will increase revenues. Public Relations

strategies can be used such as family days like "Oasis Fun Day." This will include activities for

the entire family such as water slides and bouncy castle for the kids.

Process

This is not applicable because consumers do not directly buy from SM Jaleel.

People

This is not applicable because consumers buy from retailers, wholesalers and distributors.

Physical Evidence

This is not applicable since SM Jaleel being a manufacturing company.

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7.0 FINANCIAL FORECAST .

Budget:

Activities 2014 $(000) 2015 $(000) 2016 $(000)

Television

advertisements

960 720 480

Radio Advertisements 300 300 200

Newspaper

advertisements

480 350 250

Billboard

Advertisements

320 240 160

Competitions 100 100 100

Sponsorship of sporting

events

100 100 100

Family Day 200 200 200

Banded packs 85 85 85

Free gifts 50

Total 2595 2095 1575

Table 7.8 - Budget for 3 year plan.Source: Student Research, 2013.

Footnotes:

Year 2014 will be high in cost to due investment costs for launching new product

MINTON as well as increases in promotional strategies.

Year 2015 will still be high in cost because of continuous promotional strategies.

Year 2016 will be a bit lower because the brand is established and not much use of

promotional advertisements.

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Matrix

2014 ($000) 2015 ($000) 2016 ($000)Sales 60000 65000 78000Cost of Sales 32000 35000 36500Profit 28000 30000 41500Table 7.9: 3x3 Matrix for over 3 year plan.Source: Student Research, 2013

Footnotes:

Cost of sales is readjusted to include running costs and other expenditure.

Profits lowest in 2014 because of high investment costs and extensive promotional advertising.

Profit highest in 2016 because SM Jaleel products are more established and known.

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Time Schedule of Activities

2014

2015

2016

ActivitiesQ1 Q2

Q3

Q4

Q1 Q2

Q3

Q4

Q1 Q2

Q3

Q4

Television advertisements

Radio advertisementsNewspaper advertisements

Billboard advertisements

CompetitionsSponsorship of sporting events

Family Day

Banded Packs

Free gifts

Key

Twice per week

Three times per week

Everyday

One day

Once per monthTable 7.10: Time schedule of activities


Monitor and Control

SM Jaleel can compare yearly financial statements to projected budget.

SM Jaleel can monitor customer markets’ reaction to products.

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SM Jaleel can measure market share on an annual basis.

8.0 CONCLUSION

This report proposes two key Marketing strategies that can be applied to SM Jaleel’s operations.

Introducing a new product to their Oasis line will increase sales and profits. Using more

promotions will also help increase reaching more consumers. SM Jaleel is guaranteed to see

growth in profits using this marketing plan.

Word Count: 2989

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Reference List

Kotler, P., Armstrong, G., 2006. Principles of Marketing. 11th ed. New Jersey: Pearson Prentice

Hall.

Ministry of Finance and the Economy, 2012. Budget Statement 2013. [pdf] Available

at<http://www.finance.gov.tt/content/Budget-Statement-2013.pdf>[Accessed 29 April 2013].

SM Jaleel, 2010. Our Company. [online] Available at < http://www.smjaleel.net/>[Accessed 29

April 2013].

Trinidad Express Newspaper, 2013. New Bill coming to improve T&T's recycling and waste management. [online] Available at <http://www.trinidadexpress.com/news/New_Bill_coming_to_improve_T_T_s_recycling_and_waste_management-192170631.html> [Accessed 29 April 2013].

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Bibliography List

Kotler, P., Armstrong, G., 2006. Principles of Marketing. 11th ed. New Jersey: Pearson Prentice

Hall.

Ministry of Finance and the Economy, 2012. Budget Statement 2013. [pdf] Available

at<http://www.finance.gov.tt/content/Budget-Statement-2013.pdf>[Accessed 29 April 2013].

SM Jaleel, 2010. Our Company. [online] Available at < http://www.smjaleel.net/>[Accessed 29

April 2013].

Trinidad Express Newspaper, 2013. New Bill coming to improve T&T's recycling and waste management. [online] Available at <http://www.trinidadexpress.com/news/New_Bill_coming_to_improve_T_T_s_recycling_and_waste_management-192170631.html> [Accessed 29 April 2013].

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marketing plan sm jaleel

Documents

manufacturing company

local markets

pictures products

product water products

variety of products

promotion target markets

soft drinks

englishspeaking caribbean