Executive Summary “PRAN” is currently the most well known household name among the millions of people in Bangladesh and abroad also. Today, our consumers not only value “PRAN” for its authentic refreshing juice drinks products , but also for its mouth watering quality confectionery products with high visual appeal and exciting texture. We intend to expand our o ur presence to every corner c orner of the world and strive to make “PRAN” a truly international brand to be recognied globally. To make make this this happe happen n we are are intr introdu oduci cing ng a new new produ product ct named named !Coconut the Coconut Juicepak’ Juicepak’ in the Bangladesh market and for the first time ever we are exporting the new product into "rilanka # $ndia. The product will contain low carbonate # pure coconut flavor. We will target the middle aged, young generation # children%s. &nd beside this, we are targeting the "rilankan # $ndian market for the first time. The primary marketing objective is to achieve first ' year market share of ( percent unit sales of )*+,+++.
Current Market Situation PRAN is the pioneer in Bangladesh Bangladesh since -+ to be involved in contract contract farming and procures raw material directly from the farmers and processes through state of the art machinery at our several factories into hygienically packed food and drinks products. The brand /01&23 has established itself in every category of food and beverage industry and can boost a product range from 4uices, 5arbonated 6rinks, 5onfectionery, "nacks, and "pices to even 6airy products.
Today, Today, our consumers not only value “PRAN” for its authentic refreshing juice drinks 0roducts , but also for its mouth watering quality confectionery products with high visual appeal and exciting texture. We intend to expand our presence to every corner of the world and strive to make “PRAN” a truly international brand to be recognied globally.
Market Description 7ur products includes juice, beverage, drinks, confectionary, culinary, snacks, biscuits # bakery, dairy. This kind of products sold quickly at relatively in low price. Though the absolute profit made on these products is relatively small, they are sold generally in large quantities. The market of these products is quite priced sensitive. $n Bangladesh the market of these sorts of products are in the pre8maturity stage according to 095 :0roduct :0roduct life life cycle;, cycle;, because because now the growt growth h rate of the the market market is very slow and and the competition is very high.
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>or the above reason we cannot increase our product price but we have to increase our advertising and sales promotions, because there is a tough competition in the market. We have to find new ways to market our product and try to modify it.
Product review To satisfy the needs of our premium customer we maintain the high quality and for our best quality we get certificate from $nternational 7rganiation for "tandardiation :$"7;. We are $"7 -++?-@, $"7*++?--+ certified company. =ence our new product is coconut juice so we are looking to provide the best quality juices we will take some measures, like 0roducts are being produced with the help of superior quality high8tech machineries made in $taly. We import the best quality coconuts from 2orway, =awaiian $slands and also collect the best quality coconuts from Bangladesh. To maintain the quality and standard of our product, products are being tested in our own laboratory, components of which are Auropean and computeried. We strictly maintain the =aard &nalysis 5ritical 5ontrol 0oint :=&550; in every stages of manufacturing chain. 0roducts are produced health wise and totally untouched. The products are free from any chemical particles. The products are with pure quality # exclusively good for health. The products are marketed with high quality food grade package. This !coconut juice% will be added to our product category of juice in which we have established a brand image # also a perception of producing the best quality. We have introduced the deliciously natural and sweet taste fruit juice is derived from the local orchard during the harvest to ensure the freshness and quality of the juice. $t gives natural pulp squeeing fresh fruit, vitamins mineral and other ingredients make the juice refreshing, natural and nutritious. =ere is a picture of our previous products in this category, which will help us to create an extra intention into the new one because of their good quality and taste.
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>amily @+;
pak
:Tk 0remium );
pak
:Tk 0opular 0ak :Tk @;
We will start commercialiing our new product by C th 4uly, )++, into three different packages ' 0remium, 0opular # 4unior. We are expecting the growth of our new product according to the chart given bellow. The above graphical analysis is just an estimation based on the sales of our existing products in this category. We are expecting that in )++, the inflation rate decreased to normal scale and for this reason our product price falls but the total volume of consumption increased, as a result we are expecting @D growth in sales revenue. >ollowing is the graph showing the sales in st three years :&pp;. 14 12 10 8
Series 3 Series 2
6
Series 1
4 2 0 Category 1
Category 2
Category 3
Category 4
$f we can hold this market situation then we can expect a large number of profits in near future. We will introduce three different sie of product such as >amily pak, premium, popular. The following table shows the prices of our product? Product name
Price per pack (BDT)
3
>amily 0ak : 9itter; 0remium :@++ ml; 0opular :)@+ ml;
@+ ) @
Competitive review We have stated before that our product%s market is in maturity stage, for this reason we have to face tough competition. $n this market there are several companies which are providing goods of the same category. The main competitors are "hean, 6anish, &5EA etc. The market share structure is as follows8
Target Market: Health Conscious – 32%
Sick people – Tourist –
43% 3%
General people – 22% We separate our target market into four different segment based on their geographic, demographic, psychographic and behavioral characteristics.
Health conscious: Health conscious people basically the sports person are one of our largest target market. In this segment, we get a lot of potential customer. One third of our total population is young. This is a significant number that we have to concern about them and provide product, which is fit for them. About million people of this total number are health conscious. They spend about Tk. !! in a month in average.
Sick people: "ick people are one of our ma#or considerations. $ore than % million children suffer from diarrhoea that need li&uid food. 'ot only child but also the adult might suffer from those types of problems.
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Tourists: (very year a huge number of tourists visit )angladesh. We want to provide them with *+aul.
eneral Customers: )esides the above segments, the general customers will ac&uire a significant portion of our target market.
arket !eeds:
M
*+aul wants to satisfy its customers need. That-s why it is important to identify the market needs. Our first consideration is to provide the best product to its customers. That-s why we offer three different sies of bottle with different prices for its different segment of customers. 250 ml:
The lowest price for the rural mid social class and individuals.
500 ml:
Its target the sick people and tourist
1 litre:
/or a small family.
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Sales
Pran ACME Shezan anish
>rom the above pie chart we can see that /0ran3 company is leading the market with *(D share. By the following table we can analye our competitors more thoroughly. $f we analye the wholesale price and retail price of our competitor then we can see that there is a little difference between them and strong competition is in exist. 7nly with the product quality, marketing strategy and distribution network they are competing with each other.
Channels and logistics review We are new in this market but still we have already covered 6haka by our strong distribution network. We have divided 6haka into (+ operational ones and each one has its separate distributor. &t the super shops which are located in 6haka like &F71&, &9E&", 0G" etc, we are delivering our goods directly to them at a wholesale price. Beside this we are trying to cover all the districts and some of the major Thanas by appointing new distributors. >ollowing is the flowchart of our distribution 2etwork.
"actory
istri!utor
$holesaler
Su#er Sho# 6
'etailer
"inal Consu&er
"inal Consu&er
The most important channels being contacted are? :; Website base distribution # information :); "uperstores. :(; Eega shops like !2ondon%, !&gora%, !Eeena Baar%, !&lmas%etc. We expect that our product earn familiarity very soon, and day by day we increase our distribution channel.0artex, "hejan, &cme, &bdul Eonem 9imited and B6 food, who sell juice "ample of 5ompetitive 0roducts? Company’s name
Description
Wo!esa!e price (T")
Retai! Price (T")
Pran
$t is the market leader with *(D of *@: litre; market share. This company is in this )*:@++ml; market for several years. >or this ):)@+ ml; reason the brand name is well established and their distribution channel is relatively better than other allied industries.
@+ ) @
AC#$
$t is in the market not for that long ):)@+ml; but due to its marketing strategy and good backup it is in the ) nd position with )+D of the market share.
H
%e&an
$t is in the * th position having (D of (:)@+ml; market share though it is in the market for a good numbers of years it%s weak marketing strategy is responsible.
H
Danis
$t is having its D market share ):)++ml; because of its weak distribution
*
%
channel.
S"#T $nalysis "W7T is the combination of * key words, which constitutes the internal and external issues of a company. The * key words are, "I"trength WIWeakness 7I7pportunity TIThreat. %tren't "trength refers to the competitive advantages and the other distinctive competencies that a company can exert in the market place. Weaknesses Weakness is constraints that hinder movements in certain directions. pportunities & marketing opportunity is an area of buyer need in which a company can perform profitable. Treats? & threat is challenge posed by an unfavorable tend or development that would lead, in the absence of defensive marketing action, to deterioration in sales or profit.
Strengths o o o o
(ran) *&age *nno+ati+e Pro)uct Cost A)+antage Pricing
#pportunities o
o
o o
ro/ing nu&!er o. Custo&ers *ncreasing Custo&ers A/areness ,o/er echnology Cost Chaining "oo) Ha!its
"eaknesses o o
,ac- o. Pro)uct A/areness A+aila!ility o. Coconut uice
Threats o o o
*ncrease) Co&#etition o/n$ar) Pricing Pressure ,arge nu&!er o. *n)irect Co&#etitor
Strengths
Brand *ma'e The name 0ran itself the premier beverage brand image. $t has been able
to create enormous goodwill by its quality produc t all over Bangladesh. *nno+ati+e Product There are lots of soft drinks and juice product like mango juice,
oranges juice etc are available in Bangladesh. But no one is come out with 5oconut juice. "ince it is the first product in Bangladesh, it has much more probability to achieve success. Cost ad+anta'e &lready 0ran provides various types of beverageproduct offerings to its customer and thus satisfies the needs of various customer segments. Therefore, as the organiation has a lot of customers, its operational costs go down . 8
Pricin' We do not take high price as other juices are taken in Bangladesh. We think that
the #rice is uite reasona!le to !e succee)e)
"eaknesses ,ack o- Product A.areness Though the product is new, it may fail to create the proper
awareness towards the target customer. A+ai!a/i!ity o- Coconut Juice Bangladeshi climate is suitable for the coconut juice. "o people can collect juice easily. "o it is the weakness of our product to commercialie.
#pportunities
0ro.in' num/er o- customers "eeing the current situation of the beverage industry
and also the population boom, it can be depicted the Bangladesh needs more modernied and different types of product and this is therefore a big opportunity to enhance it%s sincere position in the consumers mind through increased number of quality product and different product. *ncreasin' customer’s a.areness $n the years the people are very muchaware about
their diet and drinks. They don%t like to take food and drinks from outside and open market. "o it will create the advantage to provide the quality drinks. ,o.er tecno!o'ica! cost The world%s technology is changing rapidly to a better future.
$f we can manage better technology in a lower cost then we can produce better quality goods in lower price than our competitor. Can'in' -ood a/it ? 6ue to many reasons the people of our county is changing their food habit. They are shifting towards diet product and if the shifting rate increases like now, than in near future will get profitable revenue more easily.
Threats
*ncreased competition We have stated earlier that this market is in maturity stage but
still many companies are interested to join the market. $f they do, then the competition level will increase much higher than now and we can face many difficulties to sustain in the market.
Do.n1.ard pricin' pressure 6ue to heavy competition, we will always face this
threat that the price of the product can be decreased by the other competitor and then to carry on in the market we also have to decrease our product price.
,ar'e num/er o- indirect Competitor $n the coconut juice, there are lots of
indirect competitor. 9ots of coconut sellers are available all around Bangladesh. $t is easy to collect coconut and its juice. "o these coconut sellers are the main threats of 0ran coconut juice.
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#%&ective and issue We have set aggressive but achievable objectives for the first and second years of market entry.
'irst year o%&ective 6uring the 0ran 5oconut 4uice is initial year on the market, we are aiming for the unit sales volume of @+++.
Second year o%&ective 7ur second year objective is to sell a combined total of H+++ units of our two models and to achieve break even early in this period.
(SS)ES 7ur new product of 0ran is /5oconut 4uicepak3 is completely unknown into the existing market. "o, our major issue is to establish a well8regarded product name linked to a meaningful positioning. We will have to invest heavily in marketing to create an excellent, distinctive product images projecting innovation, quality, and value. We also must measure awareness and response so that we can adjust our marketing efforts if necessary.
Marketing strategy &t the current situation we are the market leaders and this market growth rate almost stagnate. "o if we want to grow our own market share then our advertisement strategy should be informative and persuasive. We have targeted the children and the youth consumers because they used to spend their time mostly outside home because of several reasons. 9uckily we are lunching our product in a time where some religious festivals are coming. "o by keeping an eye on these aspects we are targeting the families as our customers by offering premium family packs.
Positioning statement: We have made a new positioning statement for our new product. The positioning statement is given bellow? “You need a pure one, when you are thirsty” The reason behind selecting this positioning statement is we are emphasiing our product quality # at the same time we are serving the customer need.
Pricing strategy: 5urrently in our country the government is run by an elected party and our country is now in a democratic environment. "o we can hope that the government situation will remain same and the inflation rate will be in control. >or this reason we will try our best to remain the same wholesale price in the next year and that is? Product name
Price per pack (BDT)
10
>amily 0ak : 9itter; 0remium :@++ ml; 0opular :)@+ ml;
@+ ) @
Distri%ution strategy: $n the beginning we want to going for huge sales for this we have to increase our distributor%s number in whole country. We have to identify the main distributors in the remote area of Bangladesh. We have to evaluate their capacity and then try to convince to sell our product in their distribution network more frequently. We have a plan an action program just for our distributor%s sales persons. $t will be discuss in de tail later in the action programs.
Marketing communication strategy: We have to communicate properly about our product%s quality with our consumers. 7ur main target will be those house8wives who are concerned about their family%s health, children, # young people also. >rom our market surveys we come to know that in urban area most of these kinds of people watch T< from - to ). Then we have to promote our product in T< in between this time. Then we know that many of them are related with workforce today. >or that reason they have to browse internet often, internet can be a vital media to access this kind of customer. &nd we will also continue the advertising in daily and weekly newspapers and in weekly and monthly magaines. But we know in our country +D of our people live in rural area and -+D of them are illiterate. To attract those people we have to promote our product in different media like 1adio. By this we can also access those people who are traveling different places in a day because today in our country the >E trend is very much popular.
Market *esearch We are in this market for (+ years and we have already observed many things about the market situation, distribution network, competitors% behavior and behavior of the customers towards our products. By analying this information we will develop our future market strategies and also try to develop good relation with the distribution channel and our customer. We also have to evaluate customer%s attitudes about our brand effectiveness. 7nly after this we can think for market broadening or diversification for the newly lunched product.
$ction Program The Pran Coconut Juicepak will be introduced in Earch. >ollowing are summaries of the action programs we will use during the first year to ach ieve our stated objective. 11
February: We will launch a Tk+++,+++ trade sales promotion campaign and exhibits at the major industry trade shows to educate dealer and generate channel support for the product launch in Earch. &lso, we will create bu by providing samples to selected product reviewer, opinion leaders, influential bloggers, and celebrities. March We will start an integrated printJradioJ$nternet campaign targeting professional and consumer. April: &s the multimedia advertising campaign continues, we will add consumer sales promotion such as a contest in which consumer post videos to our Web site. We will also distribute new point8of purchases displays to support our retailers. Then it will include gifts for distributors% sales person it will be pen and T8shirt with the 01&2%s logo on it May: We will hold a trade sales contest offering prie for the salesperson and retail organiation that sells the most Pran Coconut Joicepak during the four8 week period. July >rom st week of &ugust 1oja will start in )+H. $n this period of time our product sales in a good number but we want to increase that number. To achieve this goal we have to introduce a new promotional activity from 4uly and that will include a free item, it will be dice with 0ran%s logo on it. We will give one dice with our 0ran 5oconut 4uicepak. 5ustomers have to collect it from their retailer. =ere we also do other promotional activities which will be related and important to promote this campaign and this will cost @++++++tk. This campaign will last until /A$68K98>$T713. #cto%er : $n the year from this month many festivals will take place. 9ike /6K1F& 0K4&3 will take place in the st week of this month and there will other related pujas, in "eptember /A$68K98&L=&3 will take place and in 6ecember 5hristmas and 2ew Mear festive will take place
+udgets >ollowing is the estimated budget statement for year )+. 7ur projected revenue for )+ is ())++++++JI tk. with an average wholesale price @TN for )@+ml, )TN for @++ml and @+TN for liter. &nd our projected sales volume will be *(+++. Tk Total sales revenue :8; 5ost of goods sold? 6istribution cost Earketing cost >ixed 5ost
())+++,+++JI
&verage net profit or lose
C+++,+++JI
@+,++,+++JI C++,++,+++JI )*++,++,+++JI
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>rom the above graph we can analye our break8even more clearly. We can say from here that our break even quantity is *)+++. >or this reason if we produce *(+++ unit then we can have little amount of profit. &nd in the subsequent year )+) we can hope for a better profit amount.
Controls The entire process starting from production to commercialiation, rather to say up to retail marketing is under close and strict supervision. $n this aspect ero tolerance is our police. We shall try hard to attain our goal that means our prediction regarding production and sells should be up to the mark.
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