American International University-Bangladesh

Report On Developing a marketing plan to introduce a new product or service for an existing company.

Submitted to: Naqueeb Naus ed !ourse "nstructor

Submitted by: #embers S areef Ra$een "slam +nika ! owd ury "kteder + med /iton #d. #a abubur Ra man 1asan #d. Ras edul "D No %&'%&()('* %&'%&,-,'* %&'%&(.)'* %&'%)%0.'* %&'%)%-%'* Signature

2rinciple of #arketing Section: 3D4 55+ 2rogramme Submitted on: December %*6 *%%)

Contents 2age No +cknowledgement 7xecutive Summary "ntroduction 1aque 8roup 2roduct 9 Services 5iscuits 9 :ood ;nits Dry 5attery <!arbide= ;nit Soap ;nit Ot ers ;nit #a?or !ustomer 9 !onsumer #arketing 7nvironment #icro 7nvironment #acro 7nvironment S@OA +nalysis 5!8 8rowt S are #atrix /aunc ing + New 2roduct #arket 7xpansion 8rid Bustification :or /aunc ing A e 2roduct #arketing #ix <>pCs= 2roduct 2rice 2lace 2romotion 5randing :uture Recommendation !onclusion 5ibliograp y

-.-.* *.% *.*.* *.. *.> ..% >.% >.>.* 0.% &.% ).% ,.% (.% -%.% -%.-%.* -%.. -%.> --.% -*.% -..% ->.%

Ao #r. Naqueeb Naus ed 2

:aculty #ember Sc ool Of 5usiness +merican "nternational ;niversity'5anglades <+";5= Dear Sir, @e ere by submit our report on t e topic of DDDeveloping a marketing plan to introduce a new product or service for an existing company4 A is report as been prepared according to your aut ori$ation and as t e requirement of finis ing t e course Principle of Marketing we would like to give special t anks to you for give us t is opportunity to complete t e report in a nice topic. Ao6 submit t e report6 we ave tried our best to gat er aut entic information and provide exact explanation of all t e points of t e specified task. Sincerely6

ACKNOWLEGEMENT

+t first we would like to t anks t e +lmig ty +lla in EEEEEEEE.

completing t is report in a due time. "slam +nika %&'%&,-,'*

anks our sincere gratitudeEEEEEEEE. to our S areef Ra$een @e also like to t%&'%&()('* supervised teac er Mr. Naqueeb Naushed, :aculty #ember #d. #a abubur Ra man %&'%)%0.'* EEEEEEEE. Sc ool of 5usiness6 A erican !nternational "ni#ersit$% 1asan #d. &angladesh Ras edul %&'%)%-%'* 'A!"&(, w o aut ori$ed to prepare t is report and EEEEEEEE. w o elp us in every possible ways. ! owd ury "kteder + med %&'%&(.)'* EEEEEEEE. @e also acknowledge our sincere gratitude to #r. Fi adul "slam6 Student of +merican "nternational ;niversity'5anglades 6 for is excellent support. :inally we would like to t anks all t e student of our section <D= for co'operation for computing our study.

)*ecuti#e Su

ar$

@e ave c osen !ompany /td as it is an existing company for developing a market plan to introduce a new product. @e ave focused on t eir food industry. @e ave known t eir existing products and t eir pricing strategy6 t eir position and reputation in t e consumer market6 t eir micro and macro environment. A en we ave introduced a new product for t is company6 a new 5"S!;A7 3Delig t ! oco #ix4. @e developed a marketing mix of >2Cs and finally launc ed t e new product.

+., !N-./D"C-!/N

:amily originally migrated from +rabia about t ree

undred years ago and

uncertainly settled in nort ern "ndia and started t eir business in "ndia aving its 1ead office in !alcutta. Bust after partition of "ndian Sub'!ontinent in -(>) t e 1ead Office of t e :amily ad been s ifted to D aka in t e year -(>,. A e 8RO;2 was t e Distributors of #GS. 1untley 9 2almers6 t e famous biscuit company of Reading in 7ngland6 ;nion !arbide of +merica for t eir 7veryday brand battery and many ot er agencies. +part from t at t e group ad invested a considerable amount of money in building properties and estates in !alcutta and +ssam. +fter t e partition of "ndia in -(>) t e 8roup ad started "mport and 7xport business wit in t e country of t e t en 7ast 2akistan and @est 2akistan. +fter t e deat of t e founder of t e 8roup /ate #. Safiulla is sons took over t e business and were still in t e colleges and sc ools prosecute t eir studies and were also involved in t e family business. 7ver since t e 8roup are engaged in building t e new factories and expansion of t e business. A e family as real estate properties in many countries and t e son of #r. Aami$ul as invested eavily in real estate6 erbal oil and textile manufacturing units and trading firms. #r. +dam A. w o is as also ?oined t e family business. A e 2resent ! airman of t e group is #r. Aami$ul w o is a 5arrister at law and is an "nternationally Hnown 2ersonality. +.0 1aque 2roup3 "t is t e 2arent !ompany of all t e !ompanies. "t is a Arading !ompany6 w ic does 5usiness of "mports and 7xports6 Distribution6 "ndenting 5usiness etc and it6 is also t e sole +gent of all t e "ndustries of 8roup. "t as .> Sales offices in twenty'five district towns in 5anglades 6 and as -%0 motor ve icles for t e purpose of distribution of 2roducts. A e yearly turnover of t e 8roup of "ndustries is *% #illion ;SD. A e 8roup is very muc interested in furt er growt and would consider Boint ventures wit :oreign !ompanies w o are interested in pro?ects including Snacks6 Detergent 2owder etc. A e 8roup is widely diversified and as many landed properties in many countries. A e 8roup also as a !inema 1ouse

and ! ain of Stores in !ountries outside of 5anglades . A e 8roup is also considering of going public by incorporating new 2ublic !ompanies so t at investments are possible for setting up "ndustries needing colossal finances. A e 8roup intends to set 'up factories in S++R! !ountries especially in 2akistan and "ndia. A e 8roup as started exporting its products to countries6 /ike ;.+.7.6 5 utan6 Saudia +rabia6 "ndia6 ;.S.+.6 !anada6 Nepal6 ;.H.6 Singapore etc. 1aque 8roup of "ndustries "nternational !ertified 5y6

0., Product 4 Ser#ices3 2.1 Biscuits & Food Units A e !ompany as 5iscuit ;nit6 w ic as two lines6 !onfectionary unit to ard'boiled candidates and

manufacture all kinds of !onfectionary including

toffee6 @afer unit w erein @orld !lass wafers are manufactured. ! ocolate unit 7

w erein t ere are t ree lines for making different kinds of ! ocolates. !anning and 8rocery ;nits w erein 2ineapple6 :is 6 #eat and fruit6 Iegetables6 Buices are tin caned and in t e grocery unit6 Bam6 Belly #armalade6 Squas es6 Aomato Hetc up are manufactured. One more biscuits line t at is t e t ird line6 as been "nstalled and t e same as been supplied by world renowned !ompany namely6 #GS. 1++S 1ecrona6 Iienna <+ustria=. @e are s owing some picture of biscuits in below.

2roduct: #r. !ookie 5utter !oconut 5iscuit <5ig=

2roduct: #r. !ookie 5utter !oconut 5iscuit <Small=

2roduct: New #arie 5iscuit

2roduct: /emon 2uff !ream Sandwic 5iscuit <5ig=

2roduct: Dutc #ilk !ream 5iscuit

2roduct: ! ocolate :inger !ream Sandwic 5ourbon 5iscuit

2.2 Dry Battery (Carbide) Unit: "t is a #odern and ig capacity complete factory to manufacture Dry !ell battery of ;#'- and ;#'* si$es w erein -0%6%%% pieces of batteries are manufactured daily.

J2roduct: >%( 5attery </= 2roduct: ),& 5attery <R=

2roduct: "mperial ;#'. 5attery </= 2roduct: "mperial ;#'- 5attery <R=

2.3 SOAP U !": + :ully +utomatic State of t e art complete Soap :actory w erein bot laundry and toilet soaps are manufactured. A is !ompany is also producing :+ Soap ;nder license from #GS. 17NH7/ Hga+ of 8ermany and Dettol Soap of #GS. Reckitt 9 !olman. 8

2roduct: Ocean Spray Aoilet Soap <Divinely :res =

2roduct: "nternational Aoilet Soap <1erbal 9 5eauty=

2roduct: 5all /aundry Soap

2roduct: 1aqe "nternational Aoilet Soap <2oly 2ack=

2.# Ot$ers Unit: A ere are also few ot ers unit in "ndustries6 suc as @afer ;nit6 Belly ;nit6 2ickle ;nit etc. now we are s owing some product of t ose particular unit.

2roduct: Royal 7nglis 5utter !andy Bar

2roduct:+pple Belly

2roduct: #ango 2ickle

2roduct: 2ineapple Bam

2roduct: ! erry @afer

2roduct: +lmond 9 1oney @afer

5., Ma6or Custo er 4 Consu er3 1aEEEEEEEEEEEEEEEEEEEEE..

7., Marketing )n#iron ent3 A ere are basically two types of environmentK t ey are #icro 9 #acro 7nvironment. Now we are discussing about t e #icro 9 #acro environment of 1aque 8roup of "ndustries.

4.1 Micro Environment: +ny marketing success for 5iscuit company will be required to build a strong relations ip wit t is companies department itCs suppliers6 marketing intermediaries6 customers competitors and its various public6 w ic are t e actors6 close to t e biscuit company t at affect itCs ability to serve itCs customers. +nd t is entire actorCs are under micro environment of t is biscuit company. Su%%&ier's: Ao produce biscuits and ot er product 1aque company needs its raw materialCs and its resources w ic is delivered by t e suppliers. Suppliers elp create and deliver customer value. :or t is biscuit market supplier problems can seriously affect marketing. 5ecause t is market is very competitive market and t is food item is a quick item. So marketing manager must watc about supply availability and monitor t e price trends of key inputs. Rising supply is armful for t e companyCs sales volume. +nd 1aqueCs marketers treat t eir suppliers and partners in creating and delivering customer value. (ar)etin* !nter+ediaries: #arketing "ntermediaries include t e companyCs resellers6 p ysical distributor6 t eir marketing service agencies and financial intermediaries. +ll "ntermediaries of 1aque company elp t e company to promote6 sell and distribute itCs biscuit item to t e final buyers. 1aque resellers distribute t e goods to customers t at elp t e company find customers. 2 ysical distribution firms like transportation firms6 ware ouses elp t is company to s ow t eir destination by stocking and moving goods. A e company takes elp to determine t e best way t o store and s ip goods. #arketing services agencies are t e researc firms advertising agencies and media firms t at elp 1aque company target and promote its product to t e rig t place. :inancial intermediaries like banksK insurance companies elp to finance transaction.

Custo+ers: !ompanyCs main customers are middle class people. +ll t e biscuit items price is between ten'*0. So t e price is suitable for t e middle class people. !onsumer market consists of "ndividuals and ouse old t at people directly buy t e biscuits for t eir personal consumption. 5usiness markets buy goods for t ere sells and reseller market buy goods and services to resell at a profit. 5ut companies ave not any w olesaler. "nternational market exports t is food items to t e foreign countries. Co+%etitors: !ompany provides greater customer value and satisfaction as its competitors do. A e company sells at a suitable price for t e consumer and use t en t eir competitors. A ey also gain strategic advantage by positioning t eir offerings strong by against t eir competitors offering t e minds of consumers. A e company considers its own si$e and industry compared wit t eir competitors. Pub&ics: A e 1aque !ompanyCs public w o are including in micro environment as on actual interest in impact on t e organi$ationCs ability to ac ieve companies ob?ect t inks. A ere are different types of public. :inancial public w o influence t e companyCs news and features. A e local public of t e company are neig bor ood residents and community organi$ation. 4.2 Macro Environment: A e companyCs macro environment means t ose external factors t at s ape opportunities and can be creating t reat to t e company. Now we try to explain ow 1aque group control t e factors of macro environment. Demograp y environment:

11

Demograp y means t e study of

uman population in terms of si$e6

density6 location6 age6 gender6 occupation6 and ot er statistics. "n aque group6 t ey divided t eir product occupationally. Suc as to attract different occupational customer t ey make t eir product in different si$e and different price so t at every body can effort t is. A ey also consider location to run t eir business. :or t is6 t ey divided t e country into *0 regions wit .> sales offices. @ ic biscuit6 wafer6 ?elly6 c ocolate6 ?am etc. elp t em to spread t eir network bot rut and urban area. #ost of t eir products are So we can also say t at t e main consumers of t eir product are basically c ildren. 7conomic environment: 1aque group knows t at most of t e people in 5anglades are lower and middle class and t eir income is limited. So t e company as given t eir price in suc a way t at every body can afford t is. A ey also consider t at t e entire product t ey produce is basically convenience product w ic t e maximum sales. Natural environment: Natural resources are very important factors of a company. "tCs t e inputs of a company and determines t e production. 1aque group is basically a food company and t e inputs of t eir products are limited. So t ey maximi$e t e resources by using new tec nology. Aec nological environment: Aec nologies are very important in a business. "ts elp business to create new product and elp to increase t e production. 1aque group as given strong concentrate in tec nology. A ey greater capacity. ave been continuously improved in bot batteries and biscuit factors by modifying t e plant and mac inery to attain people are frequently purc ase so if t ey keep lower price of t eir product t ey can reac

12

2olitical environment: 1aque group always maintain t e laws and legislation w ic imposed by law. "n 5anglades t ere are lots of industries law like employment of labor act6 t e factories act6 t e industrial relation ordinance act and etc w ic always maintained. !ultural environment: !ultural environment means t e institution and ot er forces t at affect societyCs basic vales6 preferences and be aviors. + company t at business wit in a culture s ould give t e importance of t ese. 1aque group always give importance peoples belief and value. :or t is consideration aque group allows feedback from t eir customers. company

5.0 SWOT analyze of Haque

rou!:

S@OA analy$e means find out a companyCs strengt 6 weakness6 opportunity and t reat. "n our report6 we are trying to discover t e S@OA of !ompany. "t is basically a food company but as ot er business too. one of t e strengt of t is company is it produce different type of product like biscuit6 candy6 soap etc so t at if t ere fall of sales of one product company can invest money on t at product by t e profit of ot ers. "n product6 t ey always come up wit different test <like in biscuit t ey ave lemon6 butter6 sandwic 6 etc test= in order to give customer t e c oice to find out t eir favorite one. "t also elp t e company to increases t eir customer as well as retain t e present people. Strengt is t ey ave different packet of t eir product like small6 medium6 9 big so t at t ey can target eac and every customer of an economy. :or t e distribution purpose6 t e company does not depend on any w olesalers t ey ave t eir own distribution agent. "t as .> sales offices in *0 district town in 5anglades and as -%0 motors ve icles for t e purpose of distribution product. So it is muc easier for t em to distribute t eir product on time. 5ecause of directly related to t e

13

consumer6 t ey ave easily identified t e actual market condition and also know about t eir product by w ic t ey can make or modify t eir future business strategies. A ese entire t ings make a strengt company. Despite of very big company6 group as some weakness. A ey ave different product and eac product also divided into different type based on t e flavors or test but most of t e people donCt know about t eir product because of t ere poor marketing strategies. A ey produce convenience product and t ese type of product always need strong advertisement so t at people t ing to buy but t e company arenCt aware of advertisement for w ic t e demand of t eir product decrease day by day. +not er problem is placement problem. Now dayCs super stores are very popular and people are like to s opping in t ere but t e products of group are rarely found in t ose stores so t ey miss biggest portion of customer. Now lots of foreign company come in t e market and t ey always increase t e quality w ic is very important but compare to t ose company t e quality of products are very low w ic also consider as a weakness all t ese weakness can be create a bad impact t e sales of products. A e 8roup is very muc interested in furt er growt and would consider Boint ventures wit :oreign !ompanies w o are interested in pro?ects including Snacks6 Detergent 2owder etc. A e 8roup also as a !inema 1ouse and ! ain of Stores in !ountries outside of 5anglades . A e 8roup is also considering of going public by incorporating new 2ublic !ompanies so t at investments are possible for setting up "ndustries needing uge finances. A e 8roup intends to set 'up factories in S++R! !ountries especially in 2akistan and "ndia. A e 8roup as started exporting its products to countries6 /ike ;.+.7.6 5 utan6 Saudi +rabia6 "ndia6 ;.S.+.6 !anada6 Nepal6 ;.H.6 Singapore etc. A is !ompany is also producing :+ Soap ;nder license from #GS. 17NH7/ Hga+ of 8ermany and Dettol Soap of #GS. Reckitt 9 !olman w ic opportunity to boost t e business. also a great

14

A e t reat of group is t at6 now a dayCs lots of foreign and new company come into t e convenience product market wit lots of new idea and incentive. So if t e future strategies of group products arenCt equally attractive energetic it can be faced great problem. and

8., &C2 2ro9th Share Matri*3

+fter survey we found t at t ere are lots of biscuit products in biscuit unit of aque 8roup of "ndustries6 but we select a small portion of biscuit and try to find out t eir position in 5!8 8rowt S are #atrix. @e found t at Dutc #ilk !ream

15

5iscuit6 New !ream !rackers 5iscuit are in question mark position6 #r. !ookie <5ig'Small=6 #ilk ! ocolate Digestive 5iscuit are in !as !ow 2osition 9 Digestive 5iscuit 9 5ourbon 5iscuit are in dog position. :., ;aunching a Ne9 Product3

@e all are tried our best to introduced a new product in an existing market. @e are introducing a biscuit named Delig t ! ocomix as same kind of flavor of 3Oreo4 biscuit of Nabisco !orporation in a c eap rate. <., Product Market )*pansion 2rid3

Our Delig

t ! oco #ix 5iscuit are including in product development6 because we

develop a product in a existing market. A at means itCs a new product in a existing market.

16

=., >ustification for ;aunching the Product3 3Delig t ! ocomix 5iscuits4 are sandwic cookies6 squee$ing a delicious w ite sugar paste in between two t in biscuits of black c alk. "t is very similar to 3Nabisco !orporationCs 3Oreo4 cookies. "ts key ingredients include flour6 sugar6 cocoa and pure c ocolate liquor. 3Oreo4 of Nabisco !orporation is a very popular biscuit of t e world. "t is not locally manufactured in 5anglades . "t is imported from Singapore to 5anglades . So it is very costly and only a few people can afford. #oreover6 it is also found only in a few superstores of D aka. 3Delig t 5iscuits4 is very c eap in price <Ak.-% per pack of 0) gram=. "ts target market is undifferentiated. So6 t e taste of 3oreo4 and undifferentiated marketing strategy will opefully work for its launc ing and most importantly 9 t e unique selling proportion <;S2= of t e product is giving t e same flavor as Oreo of Nabisco !orporation w ic is a very popular 9 tasty foreign biscuit wit in a c eap rate maintaining t e quality. +,., Marketing Mi* -actics -hat !s -o &e Applied '7ps(3 #arketing mix strategy t at is to be applied for 3Delig t ! ocomix 5iscuits4 is following L 1,.1 P-!C.: +s t e biscuit market in 5anglades is very competitive and M 8roup /td.M is an establis ed biscuit manufacturing company in t e market6 it will be using product development in a c eaper offering price in order to get a good market s are.

17

#oreover6 t e product is for mass market. So6 profit margin per pack will be very less. A e profit will be generated from large volume of sales. 2rice for 3Delig t ! ocomix 5iscuit4 will be Ak. -% per 0)g pack. "t is muc c eaper t an Oreo. So6 all kind of customer will be able to afford it. +lso6 wit t is price it can compete wit ot er 5anglades i biscuit brands.

1,.2

P-ODUC": i. /ariety 0 As t is is a new kind of biscuit6 8roup /td. "s offering it only in c ocolet flavor at t e moment6 but if t e product turns out to be a successor6 8roup /td. @ill offer it in ot er flavors. ii. 1ua&ity 0 +s it as been offering very low price it is trying maintain very standardi$ed quality compared to t e price. +lso it is trying to maintain t e quality of 3Oreo4. iii. Desi*n 2 3Delig t 5iscuits4 is a delicious w ite sugar paste in between two t in biscuits of round black c alk6 same as 3Oreo4 in si$e6 s ape and design. i3. Brand na+e L A e name of t is product is 3Delig t ! ocomix 5iscuit4 of 8roup /td. A oug t e company is not launc ing a very expensive product6 it as planned to create different images of its different products in t e consumers mind. 3. Pac)a*in* 2 A e original Oreo biscuit uses paper boxes wit plastic wrapping w ic is quite expensive for 5anglades i market. 3Delig t c ocomix 5iscuits4 will use look'alike package6 but w ic will use c eap materials. So6 t e overall cost per product will be less.

18

3i. utrition 0

1,.3

P&ace: i. 4ocation 0 A e factory of 8roup /td. is located in Ae?gaon. A is is a perfect place for biscuit manufacturing company. 8etting raw materials6 c eap labour and ot er supply is very to get from t is place. t is will reduce manufacturing cost. ii. Co3era*e 0 A e location will be elpful to reac t e distributors and relailers countrywide easily. iii. C$anne& 0 +s 8roup /td. is targeting t e mass market it will use t e administrated vertical marketing system. "t will expand its business after 19

seeing t e market response and it wants to dominate t e marketing system so administrative vertical marketing system will be perfect for it. i3. 4o*istics 0 +ll t e mac ineries required for production are already set up in t e factory. +nd t e compliance factors for t e labourers and t e employees are aut ori$ed. 1,.# Pro+otion: i. Ad3ertisin* 2 3Delig t ! ocomix 5iscuit4 will eavily emp asi$e on advertising bot on electrical and print media. .&ectrica& +edia 2 +dvertisement will be aired bot on television and radio. Ao reac t e distant population w ic is uge in number6 advertisement will be aired on 5AI and 5anglades Radio. :or t e urban areas advertisement will be aired on private AI and radio c annels. Print +edia 2 !olourful +dvertisement on print media suc as in newspapers and maga$ines can be effective. 5ut it will be less emp asi$ed. ii. Posterin* 2 !olourful 2ostering in general stores and super stores can be effective to a certain extent. iii. Co+ission 5or S$o%)ee%ers and Store o6ners 2 S opkeepers and Store owners will be rewarded wit comission depending on t e quantity t ey buy. i3. Bund&e %ricin* 2 "nitially 3Delig t ! ocomix 5iscuits4 will be bundled wit a leading tea brand for t e first mont . A is will increase its popularity and let t e people know about t e brand.

++., &randing3 EEEEEEEEE..

Delig t ! oco #ix is t e brand name of our product6 itCs under into #ultibrands. @e launc a product w ic is existing product for t e company but new brand name.

+0., ?uture .eco

endation3

"f t e MDelig t ! ocomix 5iscuitsM create positive response in t e market6 t e production capacity will be increased. 7xtended product line by offering different types of biscuits wit different flavors. "ncreasing effectiveness and efficiency in nationwide distribution. #aintain premium quality of products

+5., Conclusion3

21

"n t e end6 it is expected t at 8roup /td. will be successful wit t e launc of Delig t ! ocomix 5iscuits. 1opefully it will be able to reac its target by serving quality biscuits nationwide and expand in future.

+7., &iblograph$3 -. www.group.com *. 2rinciple of #arketing6 2 ilip Hotler 9 8ary +rmstrong6 --t 7dition. .. Some Reports >. "nternet

22