Organic Products Report

Assignment Report
On
Developing a new product Idea and Marketing Plan

Prepared for: Abureza Mohammad Muzareba

Course Instructor Marketing Management
Department of Business Administration

STAMFORD UNIVERSITY BABGLADESH

Prepared by: Md. Rubayet Hossain

ID: MBA 046-13257 Batch no: 46 Major: Accounting Department Of Business Administration

Date of Submission: 22 July 2011 Stamford University Bangladesh

Organic Products Report

Letter of Transmittal
22, July, 2011

To
Abureza Mohammad Muzareba Lecturer, Discipline of Marketing Department of Business Administration Stamford University Bangladesh Subject: Submission of Assignment Report. Dear Sir, It is pleasure to present the report on Developing a New Product Idea and Marketing Plan, This was assigned to me a partial requirement for the completion of the course Marketing Management. I have tried to combine the both primary and secondary data with my own investigation in order to come up with a complete report. In spite several constraints, I give my all effort to make this reports meaningful one. I have prepared my report on the basis of new product development strategy, Marketing strategy, promotion strategy, pricing strategy, SWAT analysis. It is great pleasure for me to present you this report under the head of a New Product Idea and Marketing Plan. This report has given me the opportunity to acquaint my selves with the idea of generating a new product. I believe that the experience I have acquired from this study will be valuable asset in my lives. I will be very glad if the report can serve its actual purpose and I am ready to explain anything to you if necessary. If you have any further enquiry concerning any additional information we would be very pleased to clarify that. I shall be highly encouraged if you are kind enough to receive this report. And Thanks you again for valuable direction and cooperation. Sincerely yours -------------------------Md. Rubayet Hossain ID: MBA 046-13257 (46th) Department of Business Administration Major: Accounting
1

Organic Products Report

Stamford University Bangladesh

Organic Products Report

CHAPTER 1: INTRODUCTION............................................5
1.1 1.2 1.3 1.4 1.5 2.1 2.2 2.3 2.4 ORIGIN OF THE STUDY:...........................................................................5 OBJECTIVES OF THE STUDY:...................................................................5 METHODOLOGY OF THE STUDY:.............................................................5 SCOPE OF THE STUDY:............................................................................6 LIMITATIONS OF THE STUDY:................................................................................6 COMPANY BACKGROUND:..................................................................................7 VISION OF NUTRITION FOR LIFE:............................................................................7 MISSION OF NUTRITION FOR LIFE:........................................................................7 GOAL OF NUTRITION FOR LIFE:...........................................................................7

CHAPTER: 2 COMPANY PROFILE......................................7

CHAPTER: 3 PRODUCTS PROFILE.....................................8

3.1 PRODUCT DESCRIPTION:....................................................................................8 3.2 MARKET SEGMENTATION:...................................................................................8 3.2.1 Geographic Segmentation:..............................................................8 3.2.2 Demographic Segmentation:...........................................................9 3.2.3 Physiographic Segmentation:..........................................................9 3.2.4 Behavioral Segmentation:................................................................9 3.3 MARKET TARGETING:.......................................................................................9 3.3.1 Evaluating Market Segments:..........................................................9 3.3.2 Selecting Target Market Segments:...............................................10 3.4 DIFFERENTIATION AND POSITIONING:....................................................................10 3.5 MARKET MIX:.............................................................................................11 3.5.1 Product:..........................................................................................11 3.5.2 Price:..............................................................................................11 3.5.3 Place:.............................................................................................11 3.5.4 Promotion:.....................................................................................11 3.6 COMPETITIVE STRATEGY:.................................................................................11 3.7 BUSINESS ANALYSIS AND TEST MARKETING:...........................................................12 3.8 THE PROCESS:.............................................................................................12

CHAPTER: 4 PRODUCTION PROMOTIONS........................13

4.1 PROMOTIONAL STRATEGY:................................................................................13 4.1.1 Caravan Campaigning:...................................................................13 4.1.2 Advertising in different media:.......................................................14 4.2 ADVERTISING:.............................................................................................14 4.2.1 Advertising Objective:....................................................................15 4.2.2 Budget Setting:..............................................................................15

CHAPTER 5: CONCLUSION AND REFERENCE:...................16

5.1 CONCLUSION:..............................................................................................16 6.6 REFERENCE................................................................................................ 17 6.6 REFERENCE:...............................................................................................17 .................................................................................................................. 17

Organic Products Report

Chapter: 1 Introduction
Chapter 1: Introduction 1.1 ORIGIN OF THE STUDY: One of the unavoidable aspects of modern business studies is exposure to the practical experience. And the purpose of business studies is to make the students wind up their imagination and to be innovative in this field. As a part of my course Marketing Management, I was assigned to submit a report on the topic Development organic product and marketing plan in Bangladesh. It endowed us with opportunities to experience a new challenge. Through this report experienced the activities of an Entrepreneur. I was assigned to generate or increase organic product demand in Bangladesh. For this, I have chosen to produce organic product and marketing my selves in my country, hypothetically. This report has been prepared as the course requirement of the MBA program. I, hope that this report will provide a clear insight on the activities on developing a organic product and marketing plan for organic product, generating new idea, the performance, prospect and future opportunities of this area. 1.2 OBJECTIVES OF THE STUDY: The main objective of the report is concentrated on generating for organic products. This report also focuses on nutrition and consumer safety. Overall, this study is to be conducted to fulfill the following objectivesi. To generate new idea ii. To develop the organic Product iii. To develop the organic Product demand iv. To encourage for bye organic product v. To evaluate this new sector of investment vi. To make new opportunities for marketers and entrepreneur

1.3 METHODOLOGY OF THE STUDY: The information of this study has been collected from other international organic firm and organic product market. This Secondary Data has been collected from the company brochures, web sites and paper documents. Primary data has been collected from different shop owners by investigating directly.

Organic Products Report

1.4 SCOPE OF THE STUDY: I feel fortunate to have the opportunity on work on this report. Though I have created my own organic firm and set a marketing plan, I have inspired by other existing organic firm also I am inspired by the current nutrition condition. I have worked on different International organic firm and that helped me a lot to follow the concept of our country and relevant information about producing organic product in Bangladesh, I am unable to gather more information. Because of relevant data and information, the scope of study this specific area was very limited. 1.5 LIMITATIONS OF THE STUDY: Difficulty in gathering relevant data from the local market Non-availability of some preceding and latest data. It was not possible to consider all variables sufficiently Lack of local information sources Limited experience and expertise

Organic Products Report

Chapter: 2 Company Profile

Chapter: 2 Company Profile 2.1 COMPANY BACKGROUND: Nutrition for Life commenced its journey on 22th July 2011, as the first organic firm with national collaboration. The firm we establish with a vision of a new Bangladesh. As there was no organic firm in Bangladesh right now, but the nutrition condition is too much shocking. The pioneers of this company found this specific sector very much innovative for our nutrition and consumer Safety. 2.2 VISION OF NUTRITION FOR LIFE: Organic food is best food for our nutrition. Organic food just does not make for fulfill our food demand it is more than our food demand. It is our safety it is for our life longevity, our health safety. It also helps the child to grow perfectly, Nutrition for Life has vision to change the Bangladesh nutrition condition, to make a difference in the lives of Bangladeshis. Nutrition for Life Firm is at their first step of the journey. This are produce Organic Bananas. This is a regular demand of our life; all type people are loving this fruits. This is our national need fruits is our regular life; 2.3 MISSION OF NUTRITION FOR LIFE: To make the new generation of our country informed about our safety condition. To give the people a wonderful place to be their elves. To deliver our massage about health safety. To enhance their knowledge about organic product. To make the consumer safety.

2.4 GOAL OF NUTRITION FOR LIFE: Development of this new sector Development of new opportunity Achieving the highest level in the market. Developing consumer nutrition oriented products and market

Organic Products Report

Chapter: 3 Products Profile

Chapter: 3 Products Profile 3.1 PRODUCT DESCRIPTION: The Current informed Bangladesh often faces a big nutrition problem. In this current satiation fresh organic product are dream for the people. Day by day our health safety is falling and continuously its gone read zone. This is very risky for our future. Day by day our disease is increase people are more victim and continually they are admitted in the Hospital. With this view, my company has developed organic product. It starts with bananas. Which is totally organic there are produced using methods that do not involve modern synthetic inputs such as synthetic pesticides and chemical fertilizers, do not contain genetically modified organisms, and are not processed using irradiation, industrial solvents, or chemical food additives. 3.2 MARKET SEGMENTATION: In our project, first we have segmented the market using appropriate variables. The variables used for this project are: Geographic segmentation i. On the basis of districts ii. on the basis of cities iii. on the basis of zonal division i. ii. iii. iv. i. Age Education Generation Income level Social class

Demographic segmentation

Physiographic segmentation

Behavioral segmentation

i. User stage

3.2.1 Geographic Segmentation: It is dividing a market into different geographic units such as nations, states, regions, countries, cities or neighborhoods. As we are the first organic foods producing firm in our country we have targeted the main cities and metropolis for our product. 1

Organic Products Report

3.2.2 Demographic Segmentation: When any marketer divides a market into groups on variables like age, gender, family size, family cycle, income level, occupation, education, religion, race, generation and nationality. We have used some of these variables to segment out market. i. Age- As we are producing organic bananas for all age people and our bananas are not only general bananas; also its take care our health condition. So we have targeted all age people who are able to eat. ii. Education- As we are producing products for all, which tells about our nutrition, we are focusing on Consumer health life and safety. iii. Generation- The generations we are concerned about are the health condition. 3.2.3 Physiographic Segmentation: We have segmented the market with the help of some physiographic variables like; Social Class: our main focus is on the Middle class Upper middle class Lower upper class Upper class 3.2.4 Behavioral Segmentation: Users status: As our product is completely new in the market so the user of our product will be First Time users.

3.3 MARKET TARGETING: 3.3.1 Evaluating Market Segments: Market segmentation reveals the firms market segment opportunities. All firms . must evaluate the various segments and decides how many and which segment it can serve best. In evaluating market segments any organization or firm must took all these 3 factors: Segment size and growth Segment structural attractiveness Object and resources We have examined all these factors collected information about the expected probability for various segments.

Organic Products Report

3.3.2 Selecting Target Market Segments: Target Market consists at a set of buyers who share common needs or characteristics that a company decides to serve. Market targeting can be carried out several levels, likeDifferentiated (segmented) Marketing

Undifferentiated (mass) Marketing

Concentrated (Niche) Marketing

We have selected concentrated marketing which a firm goes after a large share of one or a few segments or niches. As our company is completely new and have noel limited resources we have targeted this, because we think through concentrated marketing, we can market more effectively by fine-tuning our products, price and programs to the needs of carefully defined segments. We have targeted our product toward only consumers that we can serve best and most profitably.

3.4 DIFFERENTIATION AND POSITIONING: After deciding which segments of the market it would target, company must decide on a value positioning on how the new product will create differentiated value for targeted segments and what positions it wants to occupy in those segments. Products positioningIt is the way the product is defined by consumers on important attributesthe place the product occupies in consumers minds relative to competing products. For our product we have emphasized both on the product differentiation and product Positioning. We made our product in such a way that it can crate differentiated value for customers and can acquire and retain a position in consumers mind relative to competing products. For this we have followed some strategy. We have also followed the three steps of differentiation and positioning task: 1. Identifying a set of possible customer value differences that provide competitive advantages upon which to build a position 2. Choosing the right competitive advantage 3. Selecting an overall positing strategy In our categorized product Organic Bananas ensured the nutrition quality, Where Organic Bananas offers little high price. But the main concern about the health condition and our nutrition. 1

Organic Products Report

3.5 MARKET MIX: 3.5.1 Product: The product, the" Organic bananas, is such a product that should add value to a buyers life. It should also add health safety, and meet the wants and needs of targeted consumers. The product should be unique and different from all same products that are already available on the market. The strategy is to differentiate the products are producing and packaging and transportation, 3.5.2 Price: For Organic Bananas, we would price the Bananas at TK-6 per peaces. 3.5.3 Place: The most important part of marketing is how our product will get from the seller to the buyer. Many products go through a channel of distribution, which involves manufacturers, wholesalers, retailers, and consumers. The distribution strategy proposed for the " Organic Bananas, is through the large departmental stores like Agora and Nandan and swapno. 3.5.4 Promotion: Product promotion is communication spread through advertising, publicity, and sales promotion. Organic bananas, would advertise their products by using commercial, magazine ads, amusement parks, residential and commercial areas like Dahnmondi, Motilhil, Farmgate, Banani, Gulshan etc, in billboards, and the sides of buses. Advertising would also be done to promote new products, remind consumers of existing products, and also promote the image of the company at hand.

3.6 COMPETITIVE STRATEGY: An advantage over competitors gained by offering consumers greater value either through lower prices or by providing more benefits that justify higher prices. A company can differentiate and position itself as providing superior value and it gains competitive advantage. An alert company can find ways to differentiate itself at every customer contact point. A company can differentiate itself and its market offer along the lines of product, services, channels, people or image. We have selected product differentiation strategy. Our product is differentiated by Nutrition Health condition Consumer safety

Organic Products Report

The organic bananas are producing is different from the other Bananas. It will provide superior value to the customers. This Bananas are totally organic there are produced using methods that do not involve modern synthetic inputs such as synthetic pesticides and chemical fertilizers, do not contain genetically modified organisms, and are not processed using irradiation, industrial solvents, or chemical food additives. This is total e valuable for consumer there are much more benefit: The difference will deliver a high valued benefit to target customer. Competitors dont offer the difference. The difference is communicable and visible to the buyer.. Buyers can afford to pay for the difference. Company can introduce the difference profitability.

3.7 BUSINESS ANALYSIS AND TEST MARKETING: Business Analysis means a review of sales, costs and profit projections for a new product to find out whether the product satisfies the companys objectives. There are three stages in business analysis; 1. Product Development 2. Test Marketing 3. Commercialization

Test Marketing

As we have developed our product we should go for a test marketing to find out whether the product is fulfilling our objectives. There are three types of test marketing process, like Standard Test marketing Controlled Test Marketing Simulated Test Marketing We should go for a Simulated Test Marketing. Because, for a new product is the best way to judge the customers choice. 3.8 THE PROCESS: In a store we placed different types of bananas of different firm also we are placing there the production procedure. And some of our employees were there to observe. We picked randomly some consumers, children, parents and teenagers to do the examination. There were 100 peoples in the room. Around 40% of the people were amused of our organic product. Around 60% people loved the idea and teenagers thought it was great. But they have concern about the price. Because they are lower income level people and they are concern about there expense more then there health safety. So this shows that our product will be appreciated by the customers. And day by day its demand must be increase.

Organic Products Report

Chapter: 4 Production Promotions

Chapter: 4 Production Promotions 4.1 PROMOTIONAL STRATEGY: As we are starting a new production firm we have to go through heavy promotional activities. We have decided and made a plan strategically. We have segmented our whole promotional activities into two parts: 1. Caravan campaigning 2. Advertising in different media 4.1.1 Caravan Campaigning: Caravan is a way to deliver the message to people by moving one place to another. This type of promotion or activities involves showing documentary, acting, singing, displaying posters and films etc. For our promotional activities we decided to go for caravan campaigning in the main 5 districts. We would do the campaign in the cities and would try to deliver the idea of our product. Chart of our Promotional Zone:

Rajshahi

Chittagong

Khulna

Dhaka

Sylhet

Barisal

Organic Products Report

Campaigning Process: Campaigning in Schools: It will include short film show or documentary show among the children. Some game shoes among the children. Hand over some of our bananas to them. Campaigning in Shopping Malls: Shopping Malls like Basundhara City or Jamuna Future Park will be our target places also. Nutrition benefits of our organic bananas are show there. Campaigning in Hospial: Hospital like Lab-Aid, Square, Uinited, and Appolo, are such places where people are victim our nutrition problem. As we are producing organic Bananas; Hospital would be a great place. This will provide information as well as our products. 4.1.2 Advertising in different media: Advertising means to inform the consumers about any new product. It helps the product to be familiar to the consumer group. For a new company aggressive marketing is important for market penetration. As a new manufacturing company we are going to advertise our product in the Print and Electronic media. There will be TV commercials Bill-Board advertising Adds in news papers

4.2 ADVERTISING: Any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor are called Advertising. For making a way for a new productAdvertising is must. And advertise plays a vital role in the promotion. Marketing management must take four important decisions when developing an advertising program: 1. 2. 3. 4. Setting advertising objective Setting the advertising budget Developing advertising strategy Evaluating advertising campaigns

Organic Products Report

Here we are going to discuss about our Advertising Object and Advertising Budget. 4.2.1 Advertising Objective: Objective Setting is a specific communication task to be accomplished with a specific target audience during a specific period of time. As we are launching a new product and our company is new in business our Advertising Objective is Informative Objective, because Used heavily because we are introducing a new category Informing the market about this new product Explaining how the safe for our life Explaining whom the products for 4.2.2 Budget Setting: After determining the advertising objectives, the next thing is to set the advertising budget for each product. For a new product typically need large advertising budgets to build awareness and gain consumer trial. We are assuming our promotional budget will be around 25lakh. And at the primary level profit will be less. This financing will be done from Bank Loans.

Organic Products Report

Chapter: 5
Conclusion and Reference
Chapter 5: Conclusion and Reference: 5.1 CONCLUSION:

6.2. Conclusion:
The main objectives of this report were finding out organic product and develop the product in proper way for the consumer. All International Production & Marketing strategy and process of new product development could not analyze for limitation. In this condition my research is conclude flowing decision. By placing the product next to an existing firmer product, consumers may not see the benefits of switching, and could continue to prefer using the existing product rather than even considering trying the new one. But by placing the new product next to a competitors product, it may lead to the consumer questioning which product is better, hopefully causing the consumer to try the new product, over its competing product. We hope the grand success of Organic bananas, by formulating the above strategies in a coordinating way.

Organic Products Report

6.6 REFERENCE
6.6 REFERENCE: Website(www.wikipedia.org/organic-food ) Website(www.wikipedia.org/organic-farming ) Website(www.wikipedia.org/organic-products ) Newspaper, Report and journal Books(Marketing Management Philip Kotler & Marketing Research S.

Donalds and Hawkins)