" Marketing Plan of Mixed Fruit Juice: Blended " -A New Product Added to the line of PRAN Juice .

“Marketing Plan of Mixed Fruit Juice: Blended” - A New Product Added to the line of PRAN Juice

University of Dhaka Faculty of Business Studies Department of Banking and Insurance (EMBA Program) Report on

“Marketing Plan of Mixed Fruit Juice: Blended” A New Product Added to the line of PRAN Juice Submitted to: Hasina Shaikh Associate Professor, Department of Banking and Insurance University of Dhaka Course Instructor-Fundamentals of Marketing (Section B) Submitted by-

Name Arup Kumar Saha

ID 51429038

Batch 29th

Signature

Date of Submission-Thursday, April 07, 2016 Semester-Spring 2016

1


Term Paper On

“Marketing Plan of Mixed Fruit Juice: Blended” A New Product Added to the line of PRAN Juice

2


LETTER OF TRANSMITTAL

6th April, 2016 Associate Professor, Hasina Shaikh Department of Business Studies University of Dhaka Subject: Submission of Term Paper. Dear Madam, I am pleased to submit the Dissertation report on “Marketing Plan of Mixed Fruit Juice: Blended” A New Product Added to the line of PRAN Juice For partial fulfillment of Fundamentals of Marketing course. I employed all possible efforts to represent it as a phenomenal presentation. Therefore, I took this report with a good grace and would be available at time for interpretation of ins and outs of the report. Thanking you, sincerely yours

Arup Kumar Saha ID: 51429038 Department of Banking and Insurance MBA (Evening) Program University of Dhaka

3


Executive Summary “PRAN” is currently the most well known household name among the millions of people in Bangladesh and abroad also. Today, the 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. PRAN intend to expand our presence to every corner of the world and strive to make “PRAN” a truly international brand to be recognized globally. This report explains the marketing plan for launching a new mixed fruit juice named “Blended”. This product will be launched under PRAN foods ltd. It will be introduced in the market with the help of various promotional displays, advertisement and distribution of free samples to the general public and financial institution. This report examines that this product is initially launching in Whole Bangladesh domestic market. The study has done only based on secondary research. Through this strategy company can penetrate more into the market and can attract the bulk of customers. For this purpose I have analyzed the market and find out current marketing opportunities. I also tried to find out the market segmentation, target market and market positioning strategy. Then I conducted SWOT analysis of the company to see the company’s and product strengths, weaknesses, opportunities and threats. Then I have explained Marketing mix strategy for the new product. I have divided market into different segments and decided to target the male, female, youngster mature and old age person. I have also paid special attention to the packaging, and price of the product. I have decided to place the product in all the local markets of the country especially in the canteens of colleges and universities and retail outlets. I also mentioned to promote the new product through electronic media, print media, cable, and outdoor sources. Continuous development in future helps to know the opinion of public about our product and developed our product accordingly to the customers changing needs and demands.

4


Table of Contents Part 1: Introduction part ---------------------------------------------------------------------------------- 6 1.1

Introduction of the report------------------------------------------------------------------------------------ 6

1.2

Objectives of the Report: ------------------------------------------------------------------------------------- 6

1.3

Limitations of the Report ------------------------------------------------------------------------------------- 7

Part 2: Descriptive Part ----------------------------------------------------------------------------------- 7 2.1 Analyzing the Market----------------------------------------------------------------------------------------------- 7 2.1.1 Current Market Situation ------------------------------------------------------------------------------------ 7 2.1.2 Market Description: ------------------------------------------------------------------------------------------- 8 2.1.3 Marketing opportunities: ------------------------------------------------------------------------------------ 8 2.1.4 Competitive review ------------------------------------------------------------------------------------------- 8 2.2 Analyzing STP --------------------------------------------------------------------------------------------------------- 9 2.2.1 Market Segmentation Process: ---------------------------------------------------------------------------- 9 2.2.2 Target market: ------------------------------------------------------------------------------------------------ 11 2.2.3 Market Positioning: ------------------------------------------------------------------------------------------ 11 2.3 SWOT analysis------------------------------------------------------------------------------------------------------- 12 2.4 Analyzing the marketing mix ------------------------------------------------------------------------------------ 14 2.4.1 Product strategy: --------------------------------------------------------------------------------------------- 14 2.4.2 Pricing Strategies: -------------------------------------------------------------------------------------------- 15 2.4.3 Place/ Distribution Strategies:----------------------------------------------------------------------------- 16 2.4.4 Promotional Strategy ---------------------------------------------------------------------------------------- 17 2.5 Marketing Research: ---------------------------------------------------------------------------------------------- 18

Part 3: Conclusion Part ----------------------------------------------------------------------------------19 3.1 Conclusion ----------------------------------------------------------------------------------------------------------- 19 3.2 Reference ------------------------------------------------------------------------------------------------------------ 19

5


Part 1: Introduction part 1.1 Introduction of the report Every product in modern marketing era needs a proper marketing and promotion plan. Though PRAN already have a variety line of products like Juice, Drink, Mineral water, Bakery, Carbonated beverage, Snacks, Culinary, Confectionary, Biscuit, Dairy, Health food drink, Breakfast and refreshment, Rehydration, Frozen food, Kernel sunflower oil. But it wants to extend its product line. So the new product will be added to the line of PRAN juice is the mixed fruit juices named as “Blended” do needs a proper marketing and promotion plan. Because, these two plans are the best way to get best selling and consumer preferences in comparison with other products in the market. A good marketing and promotion plan always forecasts the future activities with proper judgmental knowledge. Better prediction ability of the marketer heavily influences the success of the product and way to survive in the modern competitive market.

1.2 Objectives of the Report: As a business expectative of future, we should have to gather experience beside our books. We should not concern our lesson only in classroom but to implement it in practical life. That will help us in our future life. A clear objective helps in preparation of well decorated report in which others take the right type of decision. So, identifying objectives is very much important. Our purpose of preparing the report is:  To identify a new product  To depict a marketing plan for the new product  To describe the promotion plan for the new product

6


1.3 Limitations of the Report As a student of faculty of Business Studies, this is mandatory for making a report on different courses. Although I have completed the report still have some obstacles in preparing this report:  Lack of practical experience  Lack of sufficient books & journal  Shortage of time  Individual submission and presentation is really tough to maintain to make a marketing report.

Part 2: Descriptive Part 2.1 Analyzing the Market 2.1.1 Current Market Situation PRAN is the pioneer in Bangladesh since 1980 to be involved in 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 “PRAN” has established itself in every category of food and beverage industry and can boost a product range from Juices, Carbonated Drinks, Confectionery, Snacks, and Spices to even Dairy products. 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 presence to every corner of the world and strive to make “PRAN” a truly international brand to be recognized globally.

7


2.1.2 Market Description: PRAN 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.

In Bangladesh the market of these sorts of products are in the pre-maturity stage according to

PLC (Product life cycle), because now the growth rate of the market is very slow and the

competition is very high. Very similar situation is in India & Srilanka. Our main targeted customer will be the premium customers, who need quality goods in relatively low price. Here we will target mainly the young people & the children. For 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. 2.1.3 Marketing opportunities: Analyzing the current market situation we found that there are many strong competitors exist in market. But our product is totally new & different from existing products. Our product is qualitative & good for refreshment. That’s why we think that this juice will be demandable in market. There is a huge potential market for juice in Bangladesh because; mixed fruit juice is a new product in the market. People have a positive attitude to fruit juice rather than any other soft drinks. Because it’s nutritional value is higher than other drinks.

2.1.4 Competitive review We have stated before that our product’s market is in maturity stage, for this reason we have to face tough competition. In this market there are several companies which are providing goods of the same category. The main competitors are Shezan,Danish,ACME etc. The market share structure is as follows From the above pie chart we can see that “Pran” company is leading the market with 43% share. By the following table we can analyze our competitors more thoroughly

8


Company’s name

Description

PRAN

It is the market leader with 43% of market share.

ACME

It is in the market not for that long but due to its marketing strategy and good backup it is in the 2nd position with 20% of the market share.

SHEZAN

Its have13% of market share though it is in the market for a good numbers of years its weak marketing strategy is responsible.

Danish

It is having its almost 11% market share because of its weak distribution channel.

If we analyze 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. Only with the product quality, marketing strategy and distribution network they are competing with each other.

2.2 Analyzing STP 2.2.1 Market Segmentation Process: Market segmentation is the process of dividing a market into different customer segments. Targeting, also known as target marketing, and then entails deciding which potential customer segment the company will focus on. Market segmentation, however, always precedes targeting, which helps a company be more selective about who they are marketing their products to. Market segmentation and targeting are equally important for ensuring the overall success of a company. These segmentations is related to the any new product segmentation strategy.

9


The 4 bases used in marketing segmentation are: Geographic segmentation: Geographic segmentation involves a business dividing its market on the basis of geography. There are several ways that a market can be geographically segmented. One can divide the market by geographical areas, such as by city, country, state or international region. It can also be divided into size/destiny and climate. So for the new juice, first we will be launch in seven divisional areas then gradually depend on the product success PRAN will be export this new mixed juice.

Demographic segmentation: Demographic segmentation occurs according to age, race, religion, gender, family size, occupation, generation, nationality, income, and education. Demographics can be segmented into several markets to help an organization target its consumers more accurately. With this type of segmentation, an organization can categorize the needs of consumers. The primary segmented for this part will be by age, gender, family size, occupation, generation, income etc for PRAN.

Psychographic segmentation: Psychographic segmentation is dividing the market based upon consumer personality traits, values, attitudes, interests and lifestyles. This segmentation allows development and marketing of the products because there will be a more precise match between the product and each segment's needs and wants.

Behavioral segmentation Behavioral segmentation divides customers into groups based on the way they respond to, use or know of a product. Behavioral segments can group consumers in terms of occasions, benefits, user status, usage rate, and loyalty status. Ocaasions such as Iftar has been highlighted with its beneficial impact. User rate, usage rate and loyalty status is not related as anyone have got access to this drink.

10


2.2.2 Target market: A marketer can rarely satisfy everyone. Not everyone likes the same thing. Therefore marketers start by dividing up the market into segments. They identify and profile distinct group of buyers who might prefer or require varying product and service mixes by examining demographic

psychographic,

geographic,

technological and behavioral

differences among buyer. Then the marketer designed which segments present the greatest opportunities, which are its Target markets. We have segmented our total local market into 4 parts according to the consumers’ affordability, and our main target is to enter into this segmented market and satisfy all the consumers. Our target market is total local market like Geographic

Demographic

Psychographic

Behavioral

All divisional Age 10-50

Social Class :

14-30+ Benefits Occasion,

area

Gender – Male, Female

All-

Education-

Lower

Middle,

Upper,

Male, Female

Married, Unmarrie

Mid

School, College, universities

School, College, universities

Occupation

For Middle class to Upper Class

Income

Rs. 10, 000 +

Nationality

Pakistani

2.2.3 Market Positioning: In marketing, positioning has come to mean the process by which marketers try to create awareness and positioning in the minds of their target market for its product, brand, or organization. It is the relative competitive comparison of their product occupying in a given market as perceived by the target market. Our juice helps to maintain good health which create a value in consumer mind about this product motivate them to buy frequently. Frequent ads on TV, internet and radio channels will help to reach our message to our targeted consumers. Then we will have print and billboard ads in respect of our product and market.

11


We positioned our product as:  High quality product  Reasonable price  Reliable

2.3 SWOT analysis SWOT is the combination of 4 key words, which constitutes the internal and external issues of a company. The 4 key words are, S=Strength; W=Weakness; O=Opportunity; T=Threat. Strength: Strength 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. Opportunities: A marketing opportunity is an area of buyer need in which a company can perform profitable. Threats: A 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 •Brand Image: The name Pran itself the premier beverage brand image. It has been able to create enormous goodwill by its quality product all over Bangladesh. •Innovative 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 Coconut juice. Since it is the first product in Bangladesh, it has much more probability to achieve success. •Cost advantage: Already Pran provides various types of beverage product offerings to its customer and thus satisfies the needs of various customersegments. Therefore, as the organization has a lot of customers, its operational costs go down. •Pricing: We do not take high price as other juices are taken in Bangladesh. We think that the price is quite reasonable to be succeeded.

Weaknesses •Lack of Product Awareness: Though the product is new, it may fail to create the proper awareness towards the target customer.

12


Opportunities •Growing number of customers: Seeing the current situation of the beverage industry and also the population boom, it can be depicted the Bangladesh needs more modernized 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. •Increasing customer’s awareness: In the years the people are very much aware about their diet and drinks. They don’t like to take food and drinks from outside and open market. So it will create the advantage to provide the quality drinks. •Lower technological cost: The world’s technology is changing rapidly to a better future. If we can manage better technology in a lower cost then we can produce better quality goods in lower price than our competitor. •Changing food habit: Due 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 •Increased competition: We have stated earlier that this market is in maturity stage but still many companies are interested to join the market. If they do, then the competition level will increase much higher than now and we can face many difficulties to sustain in the market. •Down-ward pricing pressure: Due 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. •Large number of indirect Competitor: In the coconut juice, there are lots of indirect competitor. Lots of coconut sellers are available all around Bangladesh. It is easy to collect coconut and its juice. So these coconut sellers are the main threats of Pran coconut juice.

13


2.4 Analyzing the marketing mix 2.4.1 Product strategy: To satisfy the needs of our premium customer we maintain the high quality and for our best quality we get certificate from International Organization for Standardization (ISO). We are ISO 9001:1985, ISO 14001:1990 certified company. Hence our new product is coconut juice so we are looking to provide the best quality juices we will take some measures, like  Products are being produced with the help of superior quality high-tech machineries made in Italy.  We import the best quality fruits from region and also collect from Bangladesh.  To maintain the quality and standard of our product, products are being tested in our own laboratory, components of which are European and computerized.  We strictly maintain the Hazard Analysis Critical Control Point (HACCP) in every stages of manufacturing chain.  Products are produced health wise and totally untouched.  The products are free from any harmful chemical particles.  The products are with pure quality & exclusively good for health.  The products are marketed with high quality food grade package.

The following table shows the prices of our product: Pack Size

Offering Style

Family Pack (1 Litter)

Pet Bottle

Premium (500 ml)

Pet Bottle

Popular (250 ml)

Glass Bottle/Tin can/ Aseptic pack

14


2.4.2 Pricing Strategies: Pricing strategies are most important stage in marketing mix. As we are going to launch a new product in the market, we do not have any idea whether the price would be accepted or not by the customers. If we select extensively high price, customers will not buy and volume of sales will be very low. On the other hand setting lower price will not cover our costs. So we have to consider the following things in selecting price.

Acceptance of product: As our product faces competition against both fruit and beverage drinks, price of our product should be accepted by customers. Our product fulfills both nutrition needs and beverage needs. For this extra utility we will go for penetration pricing with our competitors.

Maintaining market share: If the product is accepted by customers in near future, more competitors will enter in the market. So our price should be such that can protect our market share in the competition period. Moreover we will need to lower the price to hold the market share at the time of competition. Earning profit: As a business our main objectives is to earn profit. So we should not set any price that will not cover the cost of the product. After covering the cost we set a profit margin for our pricing. Product name

Price per pack (BDT)

Family Pak (1 Litter)

52

Premium (500 ml)

28

Popular (250 ml)

15

15


2.4.3 Place/ Distribution Strategies: In generally there are different types of marketing distribution system. Consumers are able to buy the products from different market place. All these distribution strategies are consists of producer, wholesaler, retailer, and finally to the consumer. There are mainly four types of marketing distribution channel: 1. Conventional Marketing channel 2. Vertical marketing channel 3. Horizontal Marketing channel 4. Hybrid Marketing channel

We select the conventional marketing channel to distribute our product. Our juice will be distributed by the specified distributor which will be selected by the company. The selected distributor will supply the juice product to the wholesaler and also to the retailer and the consumer will collect the product from the retailers. There are three types of distribution strategies: 1. Selective distribution 2. Intensive distribution 3. Exclusive distribution

We choose the intensive distribution for our product. We will supply our product all over the country on the basis of our product demand so that the consumer can get the product easily.

16


Manufacturer

Wholesaler

Jobber

Retailers

Consumers

2.4.4 Promotional Strategy  We make promotional activities for our product in different school, college, various quiz competitions, debates, and so on.  Advertisements will be given in television, radio, internet, magazine, newspapers, and billboards. Advertising themes will be changed with time and promotional activity will be carried out to generate the consumer.  In different occasion we will open special sales center where attractive point of purchase display would be arranged to create positive image in consumer’s mind.  We will provide different incentive to our distributor.  We will sponsor various cultural programs, national occasions, Religion festival, other important day(s). Such as Phahela Baishak (Happy Bangla New Year); Eid – Ul- Fitar, Eid –UL –Azha,Friendship day, world Health day, World Child Day etc

17


 We will sponsor some health related campaigns.

2.5 Marketing Research: During the initial phase of the marketing plan development, several focus groups were held to gain insight into prospective customers. These focus groups provided helpful insight into the decision making processes.

An additional source of dynamic market research is a feedback mechanism based on a suggestion card system. The suggestion card has several statements that customers are asked to rate in terms of a given scale.

There are also several open ended questions that allow the customer to freely offer constructive criticism or praise. The mixed fruit juice “Blended” will work hard to implement reasonable suggestions in order to improve their service offerings, as well as show its commitment to the customer that their suggestions are valued.

18


Part 3: Conclusion Part 3.1 Conclusion A marketing plan is a plan which outlines a company's overall marketing efforts and marketing plan may be a part of an overall business plan. Building a new brand or product needs huge promotional activities. To introduce a completely new product or brand it needs effective and future oriented sequential steps. In case of this plan all the necessary steps has been outlined in a systematic manner. The things shown are designed in such a way that is able to grab the attention of the present customers of other products.

3.2 Reference Bibliography: 1. Entrepreneurship Development Nazrulislam, Muhammad Z Mamun 2. Kotler. P, Keller.K. L, Marketing management, 11th Edition 3. Gitman. J. Lawerance, Managerial Finance, 10th, Edition 4. Kotler.P& Armstrong, Principle of Marketing, 11th Edition 5. Essential of Business Enviourment, k Aswathappa, 7th edition

Website 1. www.pranfoods.net 2. www.assignmentpoint.com 3. www.scribd.com

19

" Marketing Plan of Mixed Fruit Juice: Blended " -A New Product Added to the line of PRAN Juice .

Recommend Documents