Term paper

On
Marketing Plan of

Chips

January 12, 2016

Department of Marketing
Comilla University
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Prepared for

Md. Abdullah al Jamil

Assistant professor
Department of Marketing
Comilla University

Prepared by
Group Name: Radiant
Sl.no

Name

Id

01

Rubina Akhter

1007017

02

Md.Akramul Kabir

1007020

03

Saima Ahmed

1007032

04

Mst.Rokshana Akhter 1007039

05

Marzan Akhter

1007052

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Letter of Transmittal
January 12, 2016
Md. Abdullah al Jamil
Assistant professor
Department of Marketing
Comilla University
Subject: Submission of term paper

Dear Sir,
We are submitting an assignment titled for New product Marketing plan as a part
of the requirement of the course. Your guideline has been followed in every aspect
of preparing this assignment. We have really enjoyed working on this project and
we hope that our work would meet the level of your expectation. Any query on this
assignment is appreciated.

Thank You.
Sincerely,
-------------------------------------RADIANT GROUP

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ACKNOWLEDGEMENT

Thank you our course instructor Abdullah Al Jamil give us topic Marketing plan
of one products and start us to research this topic and assure us that he will help us.
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 Term Paper
successfully. At the time of preparing this Term Paper, 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
and lots of cordiality to all our group members for their kind consideration

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Table of contents

Serial

Topic

Page number

Executive summary

06

Situation Analysis

07-09

Market opportunity and issues

10-12

Objectives

Marketing Strategy

12-13

Target Markets

14-15

Positioning

15-16

Marketing mix

16-19

Marketing Research

19

Financial Projections

19-21

10

Reviews and Control

21-23

11

Marketing Organization

23

12

Contingency Planning

24

Conclusion

24

12

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Executive Summary
Friendz Limited started its first commercial production in Bangladesh. Friendz Limited vision
is to be recognized as the most successful food and drink company in Bangladesh, generating
sustainable, profitable growth and continuously improving results to the benefit of shareholders
and employees. The company will continue to grow through our policy of constant innovation
and renovation, concentrating on our core competencies 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
named PK chips. It is a high quality carrots chips which can be harmless. In that product, there
have some special ingredients which provide nutrition. 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. There will no chemical color in this
chip. This is mainly a natural product which has no bad side effect. After analyzing the market
demand we have seen that there is a demanding the market for this kind of product. And after
SWOT analysis we have seen that the company has a great opportunity to enter in 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 company can easily enter this market. Considering all the possible. After
estimating the cost and sales we can say that it will be profitable. Plan analysis the current
situation, followed by different opportunities and threats, then marketing and financial
objectives, after that marketing strategy, subsequently action programs, afterwards it also
discusses the budget, and finally the conclusion. The cost of the product (each) would be
varying on packets, and the price would be 10 taka. Targeted markets are separated into two
segments such as children, youngest. PK Chips is providing chips with very testy and healthy
including carrot nutrition.

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1. Situation Analysis
There are many companies in chips market. Our various products in this market are Ring chips,
Potato chips, milk products, chocolate and confectionery, ice-cream, mineral water, soft drinks
etc.. In the chips market we have 15 percent share. Now we want to expand our market share
through satisfying our customer by their desired another product Carrot Chips. Therefore we are
going to launch a carrot chips named PK CHIPS.
1.1 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.
1.2 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 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. The major competitors of chips, brands name
are

Pran

Meridian chips

Indian lays chips

Bombay chips

Ruchi chips etc.

1.3 Company:
Friendz Ltd is food & Beverages Company in terms of sales as well as product range and
geographical presence. Friendz Ltd covers nearly every field of nutrition: milk products, chocolate
and confectionery, ice-cream, mineral water, soft drinks etc. Friendz Ltd, started its commercial
production in 2005 and currently employs 300 people directly in the company and another 500
people indirectly in the industry. Today Friendz Limited is good positioned to grow through
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its policy of constant innovation and renovation, concentrating on its core competencies and
commitment to high quality, with the aim of providing the best quality food to the people of
Bangladesh. The company now wants to launch new chips in the market. This chips is totally
different from other traditional chips. Its quality will be very high and which will be harmless. In
that product, there will have some special ingredients which will provide nutrition and which will
be work as digester.
1.4 Context:
Friendz limited entered into the market 2005 in Bangladesh. There has a demand of chips product.
At present, a lot of chips are available in the market and there is an idea in the market that chips
are very harmful for the teeth. So a lot of conscious people do not take chocolate or chips and
many parents do not feel comfort to give this to their children. So people have a latent demand of
harmless chips.
Friendz Limited wants to launch chips with high quality and which will be harmless. 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 sources is very important in
producing the chips and the suppliers of raw materials are available in Bangladesh & suppliers
who offer them at the best prices, the providers of utilities-power, gas & water etc. and the
customers who buy their products & services by redeeming their claim intimae by making prompt
payment and by distributing proper product on due dates.
1.5 The Market:
Our main vision is to making satisfy the customer and run profitably. Based on our R&D
department we have identified that our new product is in good demand. Most health conscious
people are liking to consume this product as this is ease to consume and time and cost effective.
1:6 Market Needs
Our Research and development department found that people preferring the new taste because they
has need of nutrition because it is good for health, and as they can consume the product easily
majority of people would like to have this product. And in south Asia region and Bangladeshi are

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mostly affected by various types of diseases so in that case we provide our product as a solution
of nutrition. Therefore customers can easily consume based on their desired need.
1.7 Economy:
Bangladesh is a developing country. Though the economic 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.

1.8 Government:
The govt. is also attentive about the industry sector and encourages and helps to establish new
Businesses.

1.9 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 obtain the approval of BSTI (Bangladesh Standard & Testing Institute). So to launch a new
chips the company must obtain BSTI approval.

1.10 Technology:
The technological environment of Bangladesh is not developed. So, new and advanced technology
and machinery have to be imported from the abroad to produce qualified chips.

1.11 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 people are aware about its bad effect. They know that chips
are harmful for health and there is a strong idea about this in mind of the people.

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2. Market Opportunity and Issues

2.1 SWOT Analysis

Strengths
1. Expert and experienced management.
2. High quality product offering.
3. Less price than competitors.
4. Best quality and services.
5. Maintain strong delivery schedule.
6. Company has strong manpower.
7. Customer loyalty of the company.
8. Use of modern technology & Public Relations.
9. Financial stability.
10. Product has the brand personality.
11. Vast Market.
12. Unique product features like flavor, packaging, tests, hygienic etc.

Weaknesses:
1. PK Carrot Chips is kind of a new product line of the company.
2. As it is a new flavor product, it will be difficult to manage customers for the company.
3. Lack of proper knowledge about the market and the demand because its never
surveyed before.

Opportunities:
1. There is a demand for this kind of product.
2. Good and initiative employees.
3. Mature retail market in Bangladesh.
4. Developed communication channel.
5. Company has a lot of proper channels to deliver the product.

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Threats:
1. The present chips manufacturers are also strong competitors.
2. As it is a new product, there is a chance of rejection by the market.
3. It may fail to fulfill the expectations of the customers.
4. High cost of the raw materials.
5. Political environment of the country.
6. Lack of brand awareness.
7. Compressed product life cycle.
8. Foreign chips company.

2.2 Competitors Strength:

1. Established brands- the competitors have established brand like Lays, Kurkure ,Pran, Ruchi

,Mr Twist etc..

2. Product supply- the competitors product supply is very larger than our product.
3. Price- the products are similar price like us.

2.3 Competitors Weakness:

1. Tasty and healthy alternative to Biscuit, Chanachur etc..

2. we provide our product as a solution of nutrition .
3. General consciousness among the consumers of bad effect of chips .

2.4 Points of Difference:

The point of difference that makes this carrot chips than the others are-

New idea- PK Carrot Chips concept is first in Bangladesh in the Snacks industry.
Different experience & knowledge- The customers will have the distinctive feelings &
experiences that they will not get although other chips exists in market.

Strong distribution channel- As this product has strong channel distribution channel, the
consumer get it at every retail shop.
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2.5 Competitive Advantage:

Our competitive advantage is really a superior one;

1. 100% vegetable chips.
2. High contents of vitamin A ,C, D & Calcium ,minerals.
3. Good level of carbohydrate
4. Less fat & calories than other.
5. Good contents of protein & amino acids.
6. Tasty & healthy.

3. Objectives
3.1 Marketing objectives

To maintain positive , steady growth each month.

To increase new customer who dont buy chips.

To attract current customers of the present chips.

Generate brand equity in the market so that in future no company can take the market by
producing same product.

Create loyal customers.

3.2 Financial objectives:

Our sales objective is 1000000 packet chips for the first six months.

4. Marketing strategy
The greatest objective is to establish our existing brand in the industry. The marketing strategy
will seek to first create customer awareness regarding the product and establishing connections
with targeted markets and work toward building customer loyalty and referrals.
The major marketing strategies arePage | 12

Increase awareness and image.

Cross selling.

Quality and test leadership.

Mass distribution.

We decides to market Carrot Chips all over the country especially in the urban and sub urban areas.
Customers will be communicated through advertisements such as leaflets, quality posters, Kiosks,
newspaper ads, internet and other media ads & later on radio & TV ads.

4.1 Mission: To provide customer highest quality canned chips and attract current customers of
the present chips. Generate brand equity in the market so that in future no company can take
the market by producing same product.

4.2 Marketing Objectives: Running these product there are a lot of possibility in marketing and
financial gain. It will help the company to increase total sales volume. So our main objective
is to satisfy our customer and do maximization of profit. At the same time it will enable the
company to capture greater market share.

4.3 Financial objectives: The product will have three types of packets. The sizes of the packets
are small, medium and large.
Four main factors will help us decide what to charge for our product or service:
1) Our fixed and variable costs;
2) The profit we want to make;
3) Our market research data on competitors prices;
4) To reach the breakeven point within 15 months.

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5 .Target Markets:
Our main target market people are the young ages people who like to eat chips very much. Mostly
the school going students and the children. Beside that we also focus the young generation people.
Although our main target market is young people but we also prefer the people of adult and old
ages people. Also our focus goes to all types of peoples of the country and the current user of the
chips.

5.1 Target Market Segments:

We have targeted the entire chips market based on the geographic segmentation, demographic,
psychographic, and behavioral factors. We segmented our market on the basis of following
categories:
Geographic:
1. At the beginning our entire market will introduce our product in six Metropolitan cities.
2. Especially for the convenient transportation areas.
3. Our total targeted are population is 2 million

Demographic:
1. Our target customer age range will be 4 years to 30 years.
2. Family size
3. Generation

Psychographic:
1. Social Class (Middle class, upper class, and middle upper class).
2. The Conscious people.
3. The lower middle class, middle class, and upper middle class.

Behavioral:
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1. Occasion (Birthday occasion)

2. Benefits (Quality product)
3. Readiness Stage (Unaware, aware, intending to buy)
4. Attitude toward product ( Positive)
5. Those who have negative idea about the traditional chips.
6. Those who seek good quality.
7. The non-users and regular users of the chips
8. Those who are aware about the bad effect of the traditional chips.

6. Positioning
Market positioning requires the determination of a frame of reference- by identifying the target
market and the nature of the competition and the ideal points-of-parity and points-of- difference
brand association. We will always try to position our product through

Image differentiation

By related marketing and

Superior Communicable

Product differentiation.

We will use logo and short advertisements so that people can consistently see the advertisement
so the product will occupy a clear, distinctive, and desirable place in the mind of the consumer
relative to competitors product. Friendz Ltd. will use USP (Unique Selling Proposition) for
product. To do brand differences that make a better differentiation or that has the
potential to create company costs as well as customer benefits. A difference is worth
establishing to the extent that it satisfies the following criteria.
Important
Distinctive
Superior
Communicable
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 Affordable and Profitable

To capture the customer user easily Friendz Ltd. will also develop some positioning strategy to
position PK Carrot chips. There are some requirements how Friendz Ltd. capture the customer
value. These are given below:
i) By proper offerings.
ii) To show the interest of the product.
iii) By preemptive and then other competitors can`t copy this product and its services.
iv) By creating product superior valve.
v) By advertising
vi) To know about the customary satisfaction.
vii) To ensure the better quality.
viii) Ensuring that its 100% Harmless chips
ix) By offering chips with affordable price

7. Marketing Mix
Our marketing mix for the new product PK Chips is as follows:
7.1 Product:
For launching a product in the market, there is some procedure that should be followed by every
marketer to move in the long run. Our product will enable our customers to have a different
experience to try our chips. They will be able to differentiate our product in quality which is unique
in the chips market. They will not be able to feel the same way for the other chips in the market.
Generally different size of chips packet will be produced for customer. These are small, medium
and big size.

7.2 Price:
Price is the amount of money customer wish to pay to obtain the product. Necessary
strategies pertain to the locations of customer price flexibility related item within a product line
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and terms of ale. Here, they can set maximum Tk.10 for small and TK.15 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
Discounts, allowances and payment period will be reasonable for customers.

7.3 Place:
By using the present distribution channel Friendz Ltd can easily market this new product PK
Chips. The company has many consumer products. The company can use its present marketing
channel to make the products available all over the country. We also can make some new
channels and assign some distributors to promote this new product. Friendz Ltd. can also use its
current delivery vehicles to deliver the new product PK Chips product to the wholesalers. The
company can use its local offices to deliver to the retailers. So at introduction stage, companys
current marketing channel is enough to deliver the products to wholesalers and retailers. We can
use mobile shop in the shopping malls, offices and crowded areas so that people can purchase the
product easily when they like to consume.

7.4 Promotion:
It plays an important role in the exchange process by informing customers of an
Organizations product or service and convincing them of its ability to satisfy their needs or wants.
We will use the following promotional mix:
o Advertising
o Personal selling
o Direct marketing
o Sales promotion

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Friendz Ltd will take a large promotional program for this product. The company will keep a
handsome amount for the promotional activities of the product. As it is a new Product more
promotion is needed to build up the product awareness.Friendz Ltd. will use ads through TV,
Radio, and Newspaper, Internet, Information, Home Delivery, Bill Board, Ticket Advertises,
Concert Programs, Power point Information, Banner, Festoon, Placard, Joining Fair to aware
people about this chip. The company will take the strategy to create awareness about the bad effects
of the traditional chips. Then the company will present its chips to the market as harmless to
children and students as well as young, old and all age people.

7.4.1 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 strong
position in the minds of the customers. In the electronic medias advertising the company can
present famous and renowned doctors to inform people about the difference
between traditional chips and Carrot chips.

7.4.2Public Relation:

The company will take a mass public relation program. Nestl 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.

7.4.3 Retailers and Wholesalers:

Nestl Bangladesh Ltd will give many facilities to the retailers and the wholesalers. To take the
competitive advantage the company will give more facilities than its competitors. The
intermediaries are given many gifts items such as wall clock, T-shirts etc. and sales helping
equipments such as keeping pots, bill board etc.

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7.4.4 Others:
They will develop some cartoons which will be used on the T-shirts, bill boards, neon boards, and
in some ads to attract the children and young people. The company also uses this brands logo,
picture, symbol etc. on many toys, dolls and on many other things to know and attract the target
market.

8. 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 system. In the suggestion system 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. Friendz 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 last source of market research is competitive analysis. Friendz
Ltd will send people to local competitors to gain information about their product offerings and also
its competitors product offerings.

9. Financial Projections
This section will offer a financial overview of pk

chips. as it relates to the marketing activities. We

have addressed all expenses forecasts with fixed costs and variable costs and with first six months
estimated costs, sales forecasts with the first six months estimated sales, break-even analysis, and the
possible profit after six months in this section.

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Expenses Forecast:

Estimated total Cost for the first Six Months:

Fixed cost

Tk.13,00,000

Raw materials

Tk. 12,00,000

Rent

Tk. 1,60,000

Employee (Operation & Sales) Salary

Tk. 15,00,000

Packaging

Tk. 2,00,000

Promotional Expenses

Tk. 7,00,000

Distribution

Tk. 1,50,000

Commission

Tk. 10,00,000

Operational Expenses

Tk. 1,70,000

Administrative Expenses

Tk. 2,50,000

Insurance

Tk. 15,000

Interest

Tk. 50,000

Miscellaneous Expenses

Tk. 1,00,000

Total

Tk. 67,95,000

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.

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Estimated Sales for the first Six Months:

Estimated Sales (TK.)

1200000
1000000

Sales

800000
600000
400000
200000

180000

540000

360000

720000

900000

1080000

0
1

Consecutive Month

Break-even Analysis
BEV= Fixed cost / (Price- Variable cost)
100000
10-5
=200000 units
So, breakeven point can be achieved within 6 months.

10. Reviews and Control:

Marketing plan includes different kinds of budget and managerial assignment for every action
program. We describes how to implement marketing plan. For control purposes, the plan also
allows for quarterly comparison of actual versus projected sales and expenses. If they cannot do
this comparison among the plan then they never go to the competition. For their better performance
they 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
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the corrective actions if necessary. The company always has to maintain the TQM (Total Quality
Management).

10.1 Action Programs

The new brands of PK Chips will be introduced in July. We make an action program for the next
six months. And we believe that, if our six month action programs will run well, then we will
achieve our goals easily. And we will continue our business according our cycle.
July:
As we know there is no alternative without advertising to reach the product to the customers mind.
Therefore at the eve of month we will advertise to the newspapers about our new product. Our
product is low involvement and buyers show habitual buying behavior therefore we will advertise
on different TV channels so that we can develop unique position to the customers. Then we will
collect their information of different dealers. At the last of Month we will start production new
sweet favorite Carrot Chips named PK Chips
August:
At the beginning of the month will arrange a meeting for the suppliers, dealers and some specific
customers. For advertising campaign we will go to different schools, Shopping malls, and parks to
provide them free chips pack and we will provide them a leaflet through which they can write their
opinion and they will get a coupon so that on their first time purchase they will get Tk. 2 discount
and they will leave the leaflet to the retailer and we will collect it.
September:
Getting experience from the meet will apply some initiatives and at this month we will advertise
of our new product in the Television, Radio, Bill Board, Banners, and in the Poster. Then we will
launch our product in to the market. In the primary stage we will produce small, and medium.
October:
After doing our successful operations of three month, at the fourth month we give extra benefits
to the dealers and sellers to improve our sales. We will give small toys for the kinds, and to add

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experience we the product will have a tin number by doing sms (short text message) the consumer
can meet the sport celebrity. This experience will attract our potential customers.
November:
Observing the situations, at this stage we will produce large packet for the couple. And this month
our product will be available in almost every shop within the country.
December:
Observing and analyzing we take necessary actions to develop product sales and increase our
profit. We can easily understand the marketing position of our product. If we learn that our
condition is suitable then we will make divisional dealers to distribute to the whole country. Side
by side we take control over it in necessary. In this way we will continue our production and give
a particular image to the mind of every customer.

11. Marketing Organization

Company Organogram:

CEO

DIRECTOR

Chief marketing

Chief HR

GM Product &
Service

GM HR Operation

GM Sales &
Distribution

GM HR Training

Chief Finance

GM Finance &
Accounts

GM Corporate

Chief IT

GM IT &
Planning

GM IT &
Operation
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12. Contingency Planning

Difficulties and risks:
Problems generating visibility.
An already established competitor that chooses to compete on quality and
flexibility.
Worst case risks may include:
Determining that the business cannot support itself on an ongoing basis.
Having to liquidate equipment to cover liabilities.

Conclusion
We all know that, todays fast moving world respect the new, innovative ideas. To keep the same
pace with this situation Friendz Ltd. Company had decided to launch a chips and it has a bright
future in its market. As the product is innovative, the consumers are going to appreciate it. And
according to the R&D (Research and Development) department this product will be a strong
product mix for our company. And once our Friendz Ltd. will reach to the hand of our targeted
customers we will be able to capture the most market share Friendz Ltd. Company solves its
weakness and overcomes its threats. Also Friendz Ltd. Ltd 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. This Carrot Chips contain such advantage or features that will achieve its
customer satisfaction.

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