Stamford University Bangaldesh

Assignment
Course Title: Marketing Management

Course Code: MKT 322

Submitted to

Monalisa Salam

Lecture

Dept of Business Administration

Submitted by

Md. Rakibul Hasan

ID: BBA 05717528

Batch No: 057(E)

Date of Submission: 20/02/17

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 Marketing Plan

For

“Coconut Juice”
(A product of PRAN Food Ltd)

2
 Table of Contents

Serial No Items
1 Executive Summary
2 Current Market Situation
3 Market Description
4 Product Review
5 Competitive Review
6 SWOT Analysis
7 Channel And Logistics Review
8 Objects and Issues
9 Issue
10 Markets Need
11 Market Strategy
12 Positioning
13 Product Strategy
14 Pricing
15 Distribution Strategy
16 Market Communication Strategy
17 Marketing Research
18 Action Programs
19 Budgets
20 Controls
Reference

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 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 presence to every corner
of the world and strive to make “PRAN” a truly international brand to be recognized globally.
To make this happen we are introducing a new product named ‘Coconut Juicepak’ in the
Bangladesh market and for the first time ever we are exporting the new product into Srilanka &
India.
The product will contain low carbonate & pure coconut flavor. We will target the middle aged,
young generation & children’s. And beside this, we are targeting the Srilankan & Indian market
for the first time. The primary marketing objective is to achieve first – year market share of 3
percent unit sales of 240,000.

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.

Market Description
Our 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.

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 Product Review

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, ISO14001:1990 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 coconuts from Norway, Hawaiian Islands 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 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 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.
It gives natural pulp squeezing fresh fruit, vitamins; mineral and other ingredients make the juice
refreshing, natural and nutritious. Here 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.

Family pak (Tk Premium pak (Tk Popular Pak (Tk

50) 28) 15)

We will start commercializing our new product by 7th July, 2017, into three different packages –
Premium, Popular & Junior. We are expecting the growth of our new product according to the
chart given bellow.

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The above graphical analysis is just an estimation based on the sales of our existing products in
this category.
We are expecting that in 2017, 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
15% growth in sales revenue

If we can hold this market situation then we can expect a large number of profits in near future.
We will introduce three different size of product such as Family pak, premium, popular.

The following table shows the prices of our product:

Product name Price per pack (BDT)

Family Pak (1 Litter) 50

Premium (500 ml) 28
Popular (250 ml) 15

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-

Target Market

Health Conscious – 32%

Sick people – 43%
Tourist – 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 markets. 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 5 million people of this total number are health
conscious. They spend about Tk. 500 in a month in average.

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Sick people: Sick people are one of our major considerations. More than 1 million children
suffer from diarrhea that need liquid food. Not only child but also the adult might suffer from
those types of problems.

Tourists: Every year a huge number of tourists visit Bangladesh. We want to provide them
with “Jaul”.
General Customers: Besides the above segments, the general customers will acquire a
significant portion of our target market.

Channel And Logistics Review

We are new in this market but still we have already covered Dhaka by our strong distribution
network. We have divided Dhaka into 30 operational zones and each zone has its separate
distributor. At the super shops which are located in Dhaka like AGORA, ALMAS, PQS 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. Following is the
flowchart of our distribution Network:

Factory Distributor

Wholesaler Super Shop

Retailer Final
Consumer

Final
Consumer

The most important channels being contacted are:

Website base distribution & information

Superstores.
Mega shops like ‘Nondon’, ‘Agora’, ‘Meena Bazar’, ‘Almas’etc.

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We expect that our product earn familiarity very soon, and day by day we increase our
distribution channel.Partex, Shejan, Acme, Abdul Monem Limited and BD food, who sell juice

Sample of Competitive Products:

Company’s Description Wholesale Retail Price

name price (TK)
(TK)
Pran It is the market leader with 43% of 45(1 litre) 50
market share. This company is in this 24(500ml) 28
market for several years. For this 12(250 ml) 15
reason the brand name is well
established and their distribution
channel is relatively better than other
allied industries.

ACME It is in the market not for that long 12(250ml) 16

but due to its marketing strategy and
good backup it is in the 2ndposition
with 20% of the market share.

Shezan It is in the 4th position having 13% of 13(250ml) 16

market share though it is in the
market for a good numbers of years
it’s weak marketing strategy is
responsible.

Danish It is having its 11% market share 12(200ml) 14

because of its weak distribution
channel.

Strengths, Weakness, Opportunities and Threat 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.

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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 Weaknesses

Brand Image Lack of Product Awareness

Innovative Product Availability of Coconut juice
Cost Advantage
Pricing

Opportunities Threats

Growing number of Customers Increased Competition

Increasing Customer’s Awareness Down-Ward Pricing Pressure
Lower Technology Cost Large number of Indirect
Chaining Food Habits Competitor

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 beverageproduct offerings to its
customer and thus satisfies the needs of various customer segments. 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.
 Availability of Coconut Juice: Bangladeshi climate is suitable for the coconut juice. So
people can collect juice easily. So it is the weakness of our product to commercialize.

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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 muchaware 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.

Objectives & Issues

We have set aggressive but achievable objectives for the first and second years of market entry.

First year objective

During the Pran Coconut Juice is initial year on the market, we are aiming for the unit sales
volume of 5000.

Second year objective

Our second year objective is to sell a combined total of 6000 units of our two models and to
achieve break even early in this period.

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 Issues

Our new product of Pran is “Coconut Juicepak” is completely unknown into the existing market.
So, our major issue is to establish a well-regarded 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.

Market Needs

“Pran” 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 sizes 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 liter: For a small family.

Sales

Pran
ACME
Shezan
Danish

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.
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.

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 Marketing Strategy

At the current situation we are the market leaders and this market growth rate almost stagnate. So
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. Luckily we are lunching our product in a time
where some religious festivals are coming. So by keeping an eye on these aspects we are
targeting the families as our customers by offering premium family packs.

Positioning

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 emphasizing our product quality
& at the same time we are serving the customer need.

Product Strategy
PRAN Coconut Juice will be sold with all the features described in the Product Review action.
As awareness takes hold and retail availability increases more varieties will be made available.
All aspects of the marketing mix will be consistent with the brand.

Pricing
Currently in our country the government is run by an elected party and our country is now in a
democratic environment. So we can hope that the government situation will remain same and the
inflation rate will be in control. For 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)

Family Pak (1 Litter) 50
Premium (500 ml) 28
Popular (250 ml) 15

Distribution Strategy
In 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

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their distribution network more frequently. We have a plan an action program just for our
distributor’s sales persons. It will be discuss in detail later in the action programs.

Marketing Communication Strategy

We have to communicate properly about our product’s quality with our consumers. Our main
target will be those house-wives who are concerned about their family’s health, children, &
young people also.
From our market surveys we come to know that in urban area most of these kinds of people
watch TV from 9 to 12. Then we have to promote our product in TV in between this time. Then
we know that many of them are related with workforce today. For that reason they have to
browse internet often, internet can be a vital media to access this kind of customer. And we will
also continue the advertising in daily and weekly newspapers and in weekly and monthly
magazines.
But we know in our country 80% of our people live in rural area and 90% of them are illiterate.
To attract those people we have to promote our product in different media like Radio. By this we
can also access those people who are traveling different places in a day because today in our
country the FM trend is very much popular.

Marketing Research
We are in this market for 30 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 analyzing 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. Only after this we
can think for market broadening or diversification for the newly lunched product.

Action Programs
The Pran Coconut Juicepak will be introduced in March. Following are summaries of the
action programs we will use during the first year to achieve our stated objective.

February: We will launch a Tk1000,000 trade sales promotion campaign and exhibits at the
major industry trade shows to educate dealer and generate channel support for the product launch
in March. Also, we will create buzz by providing samples to selected product reviewer, opinion
leaders, influential bloggers, and celebrities.

March: We will start an integrated print/radio/Internet campaign targeting professional and

consumer.

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April: As 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
point-of purchases displays to support our retailers.
Then it will include gifts for distributors’ sales person; it will be pen and T-shirt with the
PRAN’s logo on it.

May: We will hold a trade sales contest offering prize for the salesperson and retail organization
that sells the most Pran Coconut Joicepak during the four- week period.
July: From 1st week of August Roja will start in 2016. In 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 July and that will include a free item, it will be dice with Pran’s
logo on it. We will give one dice with our Pran Coconut Juicepak. Customers have to collect it
from their retailer.
Here we also do other promotional activities which will be related and important to promote this
campaign and this will cost 15000000tk. This campaign will last until “EID-UL-FITOR”.

October: In the year from this month many festivals will take place. Like “DURGA PUJA” will
take place in the 1st week of this month and there will other related pujas, in September “EID-
UL-AZHA” will take place and in December Christmas and New Year festive will take place

Budgets
Following is the estimated budget statement for year 2011. Our projected revenue for 2011 is
322000000/= tk. with an average wholesale price 15TK for 250ml, 28TK for 500ml and 50TK
for 1liter. And our projected sales volume will be 43000.

Statements Tk

Total sales revenue 322000,000/=

(-) Cost of goods sold:
Distribution cost 50,00,000/=
Marketing cost 700,00,000/=
Fixed Cost 2400,00,000/=

Average net profit or lose 7000,000/=

From the above graph we can analyze our break-even more clearly. We can say from here that
our break even quantity is 42000. For this reason if we produce 43000 unit then we can have
little amount of profit. And in the subsequent year 2012 we can hope for a better profit amount.

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 Contros

The entire process starting from production to commercialization, rather to say up to retail
marketing is under close and strict supervision. In this aspect zero 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.

References
Kotler and Keller. Marketing management.16th edition.
Philip Kotler marketing management.14th edition.
www.Google.com
https://en.wikipedia.org/wiki/PRAN
http://www.pranfoods.net/home.php
www.Slideshare.net
http://www.grdsreports.com/food-and-beverages/fruit-and-vegetable-juice/fruit-and-
vegetable-juice-market-in-pakistan-to-2018-market-size-trends-and-forecasts-p-
95314.html

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