Marketing plan ON
‘Carrot chips’ (A product of Bombay Sweets Bangladesh Ltd)
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A Report ON
‘Apple chips’
Prepared by Dipock Mondal +8801916286988
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Table of Contents Serial No.
Subject
Page
Executive Summary
I
Acknowledgement
II
Introduction
1
Current Situation (Macro & Micro Environment) Market Summary
1
Target Market, Target Market Segment Market Needs
2 2-3 3
SWOT Analysis
4
Competition
5
Marketing Strategy
5
Positioning
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Marketing Mix Strategy: PRODUCT Marketing Mix Strategy: PRICE
6 6
Marketing Mix Strategy: PLACE
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Marketing Mix Strategy: PROMOTION Marketing Research:
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Financial Projections
8
Expenses Forecast:
8
Sales Forecast:
9
8
Break-even Analysis:
10
Implementation Control
10
Conclusion
11 11
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Executive Summary .Nestlé Bangladesh Limited started its first commercial production in Bangladesh in 1994. In1998. Nestlé S.A. took over the remaining 40% share from our local partner when Nestlé Bangladesh became a fully owned subsidiary of Nestlé S.A. Nestlé Bangladesh's vision is to be recognized as the most successful food food and and drin drink k comp compan any y in Bang Bangla lade desh sh,, gene genera rati ting ng sust sustai aina nabl ble, e, profitable growth and continuously improving results to the benefit of shareholders and employees. Our factory is situated at Sripur, 55 km north north of Dhaka; Dhaka; the factor factory y produc produces es instan instantt noodle noodles, s, cereal cereals s and repacks milks, soups, beverages and infant nutrition products. Today Nest Nestlé lé Bang Bangla lade desh sh Ltd. Ltd. is a stro strong ngly ly posi positi tion oned ed orga organi niza zati tion on.. The The com company pany will ill cont contin inue ue to grow row thro hrough ugh our our polic olicy y of cons consta tant nt innovation innovation and renovation renovation,, concentrati concentrating ng on our core competenci competencies es and our commitment to high quality, with the aim of providing the best quality food to the people of Bangladesh. The company wants to launch a new type of chips in the market. It is totally different from the traditional chips. It is a high quality chips which will be harmless. In that product, there will have some special ingr ingred edien ients ts whic which h will will prov provid ide e nutr nutrit itio ion n and and whic which h will will be work work as digester. So definitely, that product will be an exclusive product in the market. The target market of that product will be those who think that chips are harmful for health; those who have digesting problems; and the current users of the chips. Our chips will provide some exceptional tastes which will provide great pleasure. The chips will be sugarless so it will not be harmful for teeth. The There re will will no chem chemic ical al colo colorr in this this chip chip.. This This is main mainly ly a natu natural ral product which has no bad side effect. After analyzing the market demand I have seen that there is a demand in the market for this kind of product. And after SWOT analysis I have seen seen that that the the comp compan any y has has a grea greatt oppo opport rtun unit ity y to ente enterr in this this business. Otherwise, there are a few risk involved this business. The product will be a very new product and there is chance of rejection by the market. The competition will also high. And if we succeed any large compan company y can easily easily enter enter this this market market.. Consid Consideri ering ng all the possib possible le threats I can suggest the company that it will be profitable to enter this business because there are some positive sides of the product and the company is also strong. After estimating the cost and sales I can say that it will be profitable. So the higher authority should consider this marketing plan.
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ACKNOWLEDGEMENT
Thank you my course instructor Jannatul Mawa Nupur give me topic “Marketing plan of one products” and start us to research this topic and assure me that he will help me interested. Then we start this research and observe many unknown and sensitive subject. We are very glad that in spite of many limitations we have completed the Assignment successfully. At the time of preparing this Assignment, we received cordial and sincere assistance from many concerns First of all we want to thank the immeasurable grace and profound kindness of Almighty Allah, the supreme authority of the universe. Then we would like to thank to assign this type of work. At last but not least we would like to thank, thank, Name Name Head Head Departm Department ent of Busine Business ss Admini Administr stratio ation; n; Northe Northern rn Univer Universit sity y of Bangladesh, who inspire doing such kinds of work. And lots of cordiality to all our group members for their kind consideration.
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INTRODUCTION 1.1. Origin of the report This report originates to fulfill the requirement of studying Marketing Mana Manage geme ment nt,, whic which h is the the cour course se of BBA BBA Prog Progra ram m of Nort Northe hern rn University Bangladesh. Bangladesh. The topic topic of the report is “Marketing “Marketing Plan.” 1.2. Scope of the report The company is very organized and resourceful organization. Its annual reports, publication, documents and websites are very much rich for data collection. 1.3. Purpose The purpose of the report is to develop our skills in marketing activities and to elaborate our knowledge. 1.4. Limitations To To prep prepar are e this this repo report rt we have have face faced d a lot lot of prob proble lems ms such such as unavailability of lab, electricity problem, unavailability of related books, lack of time, unavailability of information in net etc.
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Current Market Analysis Economy: Bangladesh is a developing country. though the e conomic condition of this country is not so good, The economy is turning from agricultural sector to and industry sectors. So the future of any industry like chips in this country is very bright.
Government: The govt. is also attentive about the industry sector and sencourages and helps to establish new businesses.
Legal: The govt. regulations or the legal condition of Bangladesh is also not a big obstacle at starting new business or to launch new product. But in terms of introducing new consumer product, a company must must obtain obtain the approv approval al of BSTI BSTI (Bang (Banglad ladesh esh Stand Standard ard & Testin Testing g Instit Institute ute). ). So to launch launch a new chips chips the company company must must obtain obtain BSTI approval. The techno technolog logical ical enviro environme nment nt of Bangla Banglades desh h is not Technology: The developed. So, new and advanced technology and machinery have to be imported from the abroad to produce qualified chips.
Socio-cultural: From the socio-cultural point of view, there is no barrier for chips. The chips have a good acceptance in Bangladesh. But many peop people le are awar aware e abou aboutt its its bad bad effe effect ct.. They They know know that that chip chips s are are harmful for health and there is a strong idea about this in mind of the people.
Customers: Bangladesh is an over populated country. It has a large amount of population. And many of them are fond of chips. So there is vast market for the chips industry. But some people are disinterested about the chips. So the people have also some negative ideas about the product.
Competitors: The chips industry in Bangladesh is not small. There are a lot of chips producers. Some of them are national and some of them them are local suppliers. Some companies also export their chips. In our country many foreign brands are also available. They are comparatively costly also. So the consumers’ taste and demand are changing from low quality chips to high quality chips. Now the chips industry of Bangladesh is very competitive.
Suppliers: Bangladesh has a lot of resources. Even then many items of the chips especially chemical ingredients have to be imported from abroad. So the supply of raw materials from local and foreign sources is very important in producing the chips and its good management can be a competitive advantage.
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Marketing Intermediaries Intermediaries : As the various branded chips are available all over over the countr country, y, many many interm intermedi ediari aries es are now involved involved in this this business. So using the present intermediaries any company can reach their chips easily to its target market.
MARKET SUMMARY According to my market survey, the market has a demand of this kind of product. At present, a lot of chips are available in the market. And ther there e are are some some kind kinds s of Vita Vitami minn-C C tabl tablet et and and a very very few few brea breath th refreshing tablets are available in the market. But there is an idea in the the mark market et that that chip chips s are are very very harm harmfu full for for the the teet teeth. h. So a lot lot of conscious conscious people do not take chocolate chocolate or chips and many parents parents do no feel comfort to give this to their children. So people have a latent demand of harmless chips. I have have coll collec ecte ted d good good info inform rmat atio ion n abou aboutt the the mark market et and and I have have personally gathered a great idea about the common attributes of our pote potent ntia iall cust custom omer ers. s. Nest Nestlé lé Bang Bangla lade desh sh Ltd. Ltd. will will leve levera rage ge this this inform informati ation on to better better unders understan tand d who will will be served served,, their their specif specific ic needs, and how the company can better communicate with them.
Target Market
The children of the country The current users of the chips.
Target Market Segments Bombay Bombay Sweets Sweets Bangl Banglade adesh sh Ltd. Ltd. has segmen segmented ted its market market on the basis of following categories: .
Geographic:
For the urban and sub urban and rural areas citizen of all over the country. Especially for the convenient transportation areas.
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Demographic:
Children generally under teen-age. Young generation generally under age range 13-25. Educated people and conscious parents.
Psychographic:
The lower middle class, middle class, and upper middle class. The conscious people.
Behavioral Factor
Those who have negative idea about the traditional chips. Those who seek good quality. The non-users and regular users of the chips. Those who are aware about the bad effect of the traditional chips.
SWOT ANALYSIS The The over overal alll eval evalua uati tion on of a comp compan any’ y’s s stre streng ngth ths, s, weak weakne ness sses es,, opportunities and threats is called SWOT analysis. SWOT analysis helps explore the areas of possible changes in marketing activities. A brief discussio discussion n of Bombay Bombay sweets sweets Banglades Bangladesh h Ltd internal internal and external environment is as follows: Internal environment analysis: The The stre streng ngth ths s and and weak weakne ness sses es of Bomb Bombay ay Swee Sweets ts Bang Banglad lades esh h Ltd Ltd “Carrot chips” are summarized below: Strengths:
Expert and experienced management High quality product offerings that will exceed the competitors’ price, quality and services. Maintain strong delivery schedule. Strong financial support. Company has strong manpower. Bombay sweets Bangladesh Ltd has a great company reputation Customer loyalty of the company Availability of capital Use of modern technology
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Financial stability Product has the brand personality.
Weaknesses:
“Carrot sweets” is a new product of the company. Nestlé Bangladesh Ltd has many kind of product. But for this new type of product, distribution and promotion will have to be taken. As it is a new new flav flavor or prod produc uct, t, it will will be diff diffic icul ultt to mana manage ge customers for the company. Lack of proper knowledge about the market and the demand.
External environment analysis: The major opportunities and threats of “ Carrot chips” are given below: Opportunities:
There is a demand for this kind of product. Company has good image in the market. There are no existing chips like CARROT Chips Good and initiative employees. Mature retail market in Bangladesh. Developed communication channel. Company has a lot of vehicles to deliver the product.
Threats:
The present chips manufacturers are also strong competitors. As it is a new product, there is a chance of rejection by the market. It may fail to fulfill the expectations of the customers. Foreign chips company. High cost of the raw materials. Political environment of the country.
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Competition: The main competing brands are as follows: o
In terms of chips, major competitors are Pran, Meridian chips and Indian lay’s chips, Ruchi chips etc.
MARKETING STRATEGY Bombay sweets Bangladesh Ltd will decide to market carrot chips all over the country especially in the urban and sub urban areas. Customers will be communicated through advertisements such as TV ads, newspaper ads, internet and other media such as radio.
Mission: •To provide highest-quality chips.
Objectives: Marketing objectives: To maintain positive, steady growth each month. To increase new customers who don’t buy chips. To attract current customers of the present chips. Gene Genera rate te bran rand equ equity ity in the the marke arkett so that hat in futu uture no company can take the market by producing same product. Create loyal customers. • • • •
•
.
Financial Objectives: •
•
Gain Gain new new sets sets of cust custom omer ers s with within in 4 mont months hs that that wort worth h for for Tk. Tk. 50,00,000 In the year-end TK. 1,00,00,000
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Positioning: Bombay Bangladesh Ltd will position “Carrot chips” as: Harmless chips, affordable price, convenience to distribute the products, higher quality .
Marketing Mix Strategy: PRODUCT Nutrition Facts
Calorie Breakdown
Amount Per 1 cup Calories 128.82 Calories from Fat 54.58 % Daily Value * Total Fat 6.06g
9%
Saturated Fat 0.442g
2%
Polyunsaturated Polyunsatu rated Fat 1.79g Monounsaturated Monounsatu rated Fat 3.5g Cholesterol 0mg
0%
Sodium 27.36mg
1%
Potassium 127.09mg
4%
Total Carbohydrate 20.64g
7%
Dietary Fiber 2.74g Protein 0.291g
Fat Carbs
Protein Alcohol
Fat Breakdown
11% 1%
Alcohol 0g Vitamin A
0%
Vitamin C
1%
Calcium
0%
Iron
2%
Vitamin D
0%
Vitamin E
5%
Thiamin
0%
Riboflavin
1%
Niacin
1%
Folate
0%
Vitamin B-6
3%
Vitamin B-12
0%
Phosphorus
1%
Magnesium
1%
Zinc
0%
Copper
3%
Saturated Mono.
*Percent Daily Values are based on a 2,000 calorie diet. Your daily values may be higher or lower depending on your calorie needs.
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Poly.
Genera rall lly y diff differ eren entt size size of chip chips s pack packet et will will be prod produc uced ed for for Size: Gene cust custom omer er.. Thes hese are are small, all, mediu edium m and big size size with ith vari vario ous designing. PRICE Here, we can set Tk.12 for small and TK.16 for medium and TK 20 large packet. Pricing policy for its product due to the following reasons:
Distinctive Packaging
Brand Name
Cost of raw materials
Disc Discou ount nts, s, allo allowa wanc nces es and and paym paymen entt peri period od will will be reas reason onab able le for for customers.
PLACE By using using the present distributi distribution on channel channel Bombay Bombay Sweets Sweets Banglades Bangladesh h Ltd can easily easily market market this product. product. The company has many consumer consumer products. The company can use its present marketing channel to make the products available all over the country. Bomb Bombay ay Swee Sweets ts Bang Bangla lade desh sh Ltd Ltd can can also also use use its its curr curren entt deli delive very ry vehicles to deliver the product to the wholesalers. The company can use its local offices to deliver to the retailers. So at introduction stage, company’s current marketing channel is enough to deliver the products to wholesalers and retailers.
Marketing Mix Strategy: PROMOTION It play plays s an impo import rtan antt role role in the the exch exchan ange ge proc proces ess s by info inform rmin ing g customers of an organization’s product or service and convincing them of its ability to satisfy their needs or wants.
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We will use the following promotional mix: ●Advertising ●Personal selling ●Direct marketing ●Sales promotion Nestlé Bangladesh Ltd will take a large promotional program for this pro product duct.. The comp compan any y will ill keep eep a hand hand some some amoun mountt for for the the prom promot otio iona nall acti activi viti ties es of the the prod produc uct. t. As it is a new new bran brand d more more promotion is needed to build up the brand awareness. Nestlé Bangladesh Ltd. Ltd . will use ads through TV, Radio, and Newspaper, Intern Internet, et, Inform Informatio ation, n, Home Hom e Delive Delivery, ry, Bill Bill Board, Boa rd,, Ticket Ticket Advert Advertise ises, s, Home Board Bo ard, Concert Programs, Power point presentation. Banner, Festoon, Placard, Joining Fair to aware people about these chips. The company will take the strategy to create awareness about the bad effects of the traditional chips. Then the the comp compan any y will will pres presen entt its its chip chips s to the the mark market et as harml armles ess s to children and students as well as young and old people.
Advertisement: In the newspaper advertising, the company will know or inform the people about the bad effect of the traditional chips and inform about the good sides of the Apple chips. In their TV commercial they will also try to build awareness in the minds of the customers and try to acquire a stro strong ng posi positi tion on in the the mind minds s of the the cust custom omers ers.. In the the elec electr tron onic ic media’s advertising the company can present famous and renowned doctors to inform people about the difference between traditional chips and our Apple chips.
Public Relation: T The he comp compan any y will will take take a mass mass publ public ic rela relati tion on prog progra ram. m. Nest Nestlé lé Bangladesh Ltd will have to take this kind of promotional activities such as stall booking in many trade fair, child fair etc. to create a positive image about the brand. The company needs no special personal selling program for this product. In introduction stage sales promotion will not also be considered.
Retailers and Wholesalers: Nestlé Nestlé Banglades Bangladesh h Ltd will give many facilities facilities to the retailers and the wholesalers. To take the competitive advantage the company will give
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more facilities than its competitors. The intermediaries are given many gift gifts s item items s such as wall all cloc clock, k, T-sh T-shir irtts etc. etc. and sale sales s help elping ing equipments such as keeping pots, bill board etc.
Others: They will develop some cartoons which will be used on the T-shirts, bill board boards, s, neon neon boar boards ds,, and and in some some ads ads to attr attrac actt the the chil childr dren en and and youn young g peop people. le. The The comp compan any y also also uses uses this this bran brand’ d’s s logo logo,, pict pictur ure, e, symbol etc. on many toys, dolls and on many other things to know and attract the target market.
Marketing Research: During During the initia initiall phase phase of the market marketing ing plan plan develo developme pment, nt, severa severall focus groups were held to gain insight into prospective customers. These focus groups provided helpful insight into the decision making processes. An addi additi tion onal al sour source ce of dyna dynami mic c mark market et rese resear arch ch is a feed feedba back ck mechanism based on a suggestion system. In the suggestion system customers customers are asked asked to rate in terms of a given scale. scale. There are also also several open ended questions that allow the customer to freely offer constructive criticism or praise. Nestlé Bangladesh Ltd will work hard to implement reasonable suggestions in order to improve their products offerings, as well as show its commitment to the customer that their suggestions are valued. The The last last sour source ce of marke markett resea researc rch h is comp compet etit itiv ive e anal analys ysis is.. Nest Nestlé lé Ban Banglad glades esh h Ltd Ltd will ill send end peop eople to loca locall com competi petittors ors to gain ain inform informati ation on about about their their produc productt offeri offerings ngs and also also its compet competito itors’ rs’ product offerings.
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FINANCIAL PROJECTIONS This section will offer a financial overview of “ Apple chips.” as it relates to the marketing activities. activities. I have addressed addressed all expenses expenses forecasts forecasts with fixed costs and variable costs and with first six months estimated costs, sales forecasts with the first six months estimated sales, breakeven analysis, and the possible profit after six months in this section.
Expenses Forecast: Estimated total Cost for the first Six Months: Fixed cost Raw materials Rent Employee (Operation & Sales) Salary Packaging Promotional Expenses Distribution Commission Operational Expenses Administrative Expenses Insurance Interest
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Tk.13,00,000 Tk. 12,00,000 Tk. 1,60,000 Tk. 15,00,000 Tk. 2,00,000 Tk. 7,00,000 Tk. 1,50,000 Tk. 10,00,000 Tk. 1,70,000 Tk. 2,50,000 Tk. 15,000 Tk. 50,000
Miscellaneous Expenses Total
Tk. 1,00,000 Tk. 67,95,000
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Sales Forecast There will not be enough sales in first month. In the second month the sales will be increasing at a satisfactory rate. From the third month the increasing rate of sales will be very high. That means from month three there will be a steady increase in production and sales. Our sales forecast is 1000000 packet chips for the first six months. On an average per piece of chips will be sold for Tk.10.
Estimated Sales for the first Six Months:
Estimated Sales (TK.) 1200000
1080000
1000000
900000 720000
800000
540000 360000
600000 400000 200000 0
180000 1
2
3
4
5
Consecutive Month
Break-even Analysis BEV= Fixed cost / (Price- Variable cost) 1000000 10-5 =200000 units
So, breakeven point can be achieved within 6 months.
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Implementation And Control market marketing ing plan plan includ includes es differ different ent kinds kinds of budget budget and manage manageria riall assignment for every action program. It describes how to implement marketing plan. For control purposes, the plan also allows for quarterly comparison of actual versus projected sales and expenses. If we can not not do this this comp compar aris ison on amon among g the the plan plan then then we neve neverr go to the the competition. For our better performance we need comparison between actual and projected sales and expenses . If there find out any gap in plan and output, we have to take corrective actions. Not only that, if there is any problem arise in production, marketing process, or any other areas, we have to take necessary steps to overcome that. Finally, the management will monitor the total environment, progress, and gap and will take the corrective actions if necessary. The company always has to maintain the TQM (Total Quality Management).
CONCLUSION We have learn many things after preparing our report. In the above we discuss the strengths of our company that will help in future because without strengths a company cannot exit.Our company solves its weakness wea kness and overcomes its threats. Our company adds exclusive taste in chips and our product has some exclusive
characteristics that will help us to acquire position in the minds of the customers. Our chips contain such advantage or features that will achieve its customer satisfaction.
Recommendations:
At first we want to say that The Organic 7 Company Ltd should have a specific marketing depart departmen mentt which which will will work work under under the superv supervisi ision on of the execut executive ive direct directors ors.. This This depa depart rtme ment nt cons consis isti ting ng of mark market etin ing g spec special ialis istt whos whosee main main job job are plan planni ning ng and and implementing of marketing activities such as advertising, promotional campaigns, public relations, providing market information to sales department.
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The major activities of the department can be listed as follows: •
Carry out market reach, customer satisfaction survey.
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Collect and review information on market, top competitor.
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Encourage the customer to the brand.
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The authority should be conscious about their marketing strategy.
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Should be more advertisement in the content of whole Bangladesh focused on billboard, print media and web ad. Etc.
•
Need regular communication among clients and sales persons.
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The company should have to ensure good use of fund.
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The company should offer more facilities to the customers as per customaries requirement.
Reference: •
Kotler and Keller. Marketing management.12 th edition.
•
Philip Kotler marketing management.11th edition.S
Websites:
www.Google.com Others:
Customer’s opinion
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