92979659 a Term Paper on Markting Plan on BASALT[1]

7/28/2019 92979659 a Term Paper on Markting Plan on BASALT[1]

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A Term Paper

On

Markting plan

Submitted To:

Mrs. Nazia Nabi

Lecturer,School of Business,UITS.

Submitted by:

Shakerul Tazu

Md Eamin Zabed

Farhana Yeasmin Lopa

Subrata Kumar Singha

Date of submission: 19/12/2010


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1.0 EXECUTIVE SUMMERY

BASALT is a fashion house producing fashion wears for Bangladeshi Market.The company has newly entered in the market to offer Bangladeshi fashionnew and innovative dresses and accessories for men and women. To meetthat mission the cost of the product may become very high comparison toother competitors but BASALT is offering the same price level with a very highquality warm weather effective product which is not being offered by the otherexisting companies in Bangladeshi Market. Our additional product fashionaccessories are also very innovative and affordable. The companys marketingobjective is to offer the consumers fashionable dresses compatible with theBangladeshi weather and achieve first years market share of 5 percent and

sales of 200,000 units. BASALT has several powerful strengths on which tobuild but our major weakness is lack of Brand awareness and image toconsumers. The major opportunity is growing demand for weather effectivefashionable wear for both men and women in the corporate and regular users.We also face the threat of ever greater competition and down ward pressureon pricing. Although strong competition with the established competitors, wecan offer the consumers more value and unique technological benefit that willhelp us to gain the market share and high brand image to the consumer forthe next generation fashion wears. We are offering high quality, specialbenefits and affordable price that will give us the most significant place in themarket. Almost all the strong points of the competitors can be meet up with

the strategies of our company.

BASALT will establish a well regarded brand name link to meaningfulpositioning. We will have to invest heavily in marketing to create a memorableand distinctive brand image projecting innovation, quality and value. We alsomust measure awareness and response so we can adjust our marketing effortsif necessary. Our consumer market is middle-middle to upper-upper incomeProfessional, Students, youths, and Trendy Users who are basically fashionlovers and comfort seekers.

Using product differentiation, we are positioning our product as the most

versatile, convenient, unique, comfortable, elegant, and elite and value addedstyle for personal, occasional and professional use. Consumers will rememberour brand whenever they think of comfortable but very elegantly fashionableoutfits specially made for him or her in purpose in the life.

Total first year revenue for the BASALT Fashion House is projected at200,000,000 BDT, with an average whole sale of 1000 BDT per unit variablecost per unit 300 BDT sales volume of 200,000 units. Break even calculations


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indicate that BASALT will become profitable after the sales volume exceeds42857 units.

We are planning tight control measures to closely monitor quality andcustomer service satisfaction. This will enable us to react very quickly in

correcting any problems that may occur. Other early warning signals that willbe monitored for signs of deviation from the plan include monthly sales andmonthly expenses.


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2.0 PURPOSE AND MISSION OF BASALTS MARKETINGPLAN

BASALT is a fashion house producing fashion wears for Bangladeshi Market.The company has newly entered in the market to offer Bangladeshi fashionnew and innovative dresses and accessories for men and women.

The house will conduct researches on market and consumer demand in

Bangladesh and will outsource the product manufactured from china. As wewant to provide the high quality products in a convenient cost for thecustomers, technological benefits of outsourcing from China will be suitable tomeet up the demand at a low cost with high technological and cost minimizingbenefit.

PURPOSE:

The companys marketing objective is to offer the consumers fashionable

dresses compatible with the Bangladeshi weather and achieve first yearsmarket share of 5 percent and sales of 200,000 units. Our financial objectivesare to achieve first years revenue of 200,000,000 BDT and to meet the breakeven in the first year. Next year, we want achieve 2% profit from the 300,000sales unit with 300,000,000 BDT and 600,000 BDT.

MISSION:

To offer Bangladeshi consumers fashionable and weather effective wears with

high quality and in affordable price and take the market leader position in nextfive years.

BASALT is committed to offer the high value to the consumer by serving themarket with wears that are suitable for weather of Bangladesh.

To meet that mission the cost of the product may become very highcomparison to other competitors but BASALT is offering the same price level


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with a very high quality warm weather effective product which is not beingoffered by the other existing companies in Bangladeshi Market. Our additionalproduct fashion accessories are also very innovative and affordable.


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3.0 SITUATIONAL ANALYSIS

3.1 Market Summary

BASALTs market consists of consumers who need convenient stores, regulartrend update, stylish but weather suitable and comfortable outfit in anyseason, pure fabrics and well quality swing, buttons and lining which makethem feel unique. BASALT targeted YOUTHS, PROFESSIONALS, STUDENTS andTRENDY USERS market for the first year.

Table 3.1 shows the targeted segments, their needs and its correspondingfeatures or benefits offered by BASALT:

Table 3.1

TargetedSegments

Customer NeedsCorrespondingFeatures/Benefits

YouthsFashionable Dressand Accessories onoccasional basis

Fashionable Party and festivedress

Sophisticated and elegant cutting

Soft fabrics and clean lining

Cool and comfortable shape forflexibility

Designed on occasional & regularuse

Professionals

Flexible &Comfortable FormalStylish Outfit

Formal but trendy outfits

Effective in warm weather

Straighten Fabric that need noiron

Sophisticated and elegant cutting

Semi formal shape for regularusage

StudentsComfortable RegularUsable CasualDresses

Effective in warm weather

Casual & Semi formal style forregular usage

Comfortable for regular use


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TrendyUsers

Latest Trendy StylishDresses with FashionAccessories

Trendy and Elegant Cutting

Stylish & Trendy formal and casual

Fashion Accessories

Unique color, metals, stones andlining

Fashion lovers exclusivecollections


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BASALTs consumers can choose all the products on occasional basis or for thespecific benefits. The features or benefits provided are less or more providedby the competitors but they will find it hard to compete with us because weare providing more value than competitors at the convenient prices. Our pricelevels are little bit high to ensure the consumers that the quality is high.

We call our products nest generation fashion wears because it is provided withweather suitability and highly comfortable. In Bangladesh, warm weather lastsfor almost 8 months. For this reason the clothes have to be cool in highhumidity and straighten fabricating which needs low rate of iron. The productsare designed to ensure saggy-proof which caused by contentious sweating.That decreases the jolliness and softness of the fabric. Even the shape andcuts of the dresses are very well though and systematically designed whichensures the minimum joints and lining edges.

Before the competitor hit this quality and product features (competitive

advantage), BASALT will be already catching their segmented markets in thefirst year. That will bring us the opportunity to take the market leadership inthe next generation fashion wear market.

3.2 SWOT Analysis

BASALT has several powerful strengths on which to build but our majorweakness is lack of Brand awareness and image to consumers. The majoropportunity is growing demand for weather effective fashionable wear for both

men and women in the corporate and regular users. We also face the threat ofever greater competition and down ward pressure on pricing.

STRENGTHS:

1. Innovative and Unique Technology:We use most innovative technology to fabricate and design the dressesas well as to manufacture those by out sourcing from china and USA.Using these technologies is very rare in Bangladesh used by othercompetitors in the exiting market.

2. Weather Effective and Fashionable Products:BASALT is the first company in BD who produces weather effectivecomfortable fashionable wears for the warm weather. This is thestrongest competitive advantage of our house.

3. Pricing:The technology and the product features we are using require very highpricing. Based on this factor the price would be very high but we are


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offering minimum price relative to the product features. Even the priceis little bit high comparison to other competitors in Bangladesh to createthe image of high quality and higher value.

WEAKNESS:

1. Lack of Brand Awareness and Image:BASALT has not yet established the brand and image in the marketwhere other competitors like Westeks and CatsEye is already verystrong brands in the Bangladeshi market.

2. Lack of indigenous fashion trend in the products:We used the stylish western and semi western (Bangladeshi Local andWestern Fashion Mixed Fusion) trends in our product design, whereBanglarMela, Aarong (except Aarongs Taga) or DesiDos (Alliance of10 Indigenous Fashion House) are proving pure indigenous Bengali

fashion outfits to the consumers. In the first year and second year wecannot hit this segment but it consists of a large number of consumers.

OPPORTUNITY:

1. Growing Demand:The major opportunity is growing demand for weather effectivefashionable wear for both men and women in the corporate and regularusers in Bangladesh. As the weather is getting extremely hot or cold in

the respective seasons, the consumers seeks for more comfortablefashion wears.

2. Better Development in Fashion Technology:Technologies in this field are being developed very faster to make thedresses more comfortable and weather effective as well as more lasting.That will result in reducing the costs and increasing more quality tooffer.

3. Diversified Trends Need of Consumers:Consumers are more aware and thoughtful now in Bangladesh that gives

us the opportunity to offer more high quality products in suitable pricelevel. Diversification in fashion trends and quality is more risk free fornow in Bangladesh.

THREATS:


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1. Increased Competition:More companies are entering in the Bangladeshi fashion wear market.They can easily adopt this features and technologies in their productionstrategy. But all the features of BASALT offered to the market is very

profitable that we need to communicate those very effective that othercannot even think to reach there.

2. Downward Pressure on Pricing:Increased competition and market share strategies are pushing fashionwears prices down. Still our objective of seeking a 2% profit on thesecond year is realistic, given the lower margins in the fashion wearmarket.

3.3 Competition Analysis

Increased entry of established and new fashion houses in the market haspressured industry participants to continually add features and cut prices.Competition from high quality and technology bases production for comfortand flexibility to use the products are also some key factors in this market. Ourkey competitors are:

Westeks

Westeks is providing high quality of fashion products with western andtrendy dresses using outsourced technologies for manufacturing. Theyhave a large variety and unique designs in the product and outlets aswell.

EcstasyEcstasy has variety and creativeness in color, design, shape and outletsthat consumers find it more affordable and valuable. Ecstasy haseffective distribution system and high brand image.

Trends

Uniqueness and product design rotation is their main feature in themarket. They are really successful to provide trends in the market.

CatsEyeHave very high brand image and the advantage of being pioneering inthe outsourced dresses but their product variation and uniqueness islow.


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AarongThey are very diversified in the dress design and very indigenous in thetrends to the consumers. Have strong brand image and diversifiedoutlets with variety of accessories and dresses. Taga is one of thepioneer Ladies Western Fashion Brand of Aarong which offers very high

fashionable Bangla-western fusion dresses for women in Bangladesh.

Despite strong competition with the established competitors, we can offer theconsumers more value and unique technological benefit that will help us togain the market share and high brand image to the consumer for the nextgeneration fashion wears. We are offering high quality, special benefits andaffordable price that will give us the most significant place in the market.Almost all the strong points of the competitors can be meet up with thestrategies of our company.

3.4 Product Offering:

BASALT product offers the following standard features:

Formals Dresses

Pants, Trousers, Shirts, Formal Polo Shirts, Blazer, Coats and Ties forMen

Shalware, Kamij, Shirts, Pants, Blazers and Blouses (Tops) for Women

Formal Cuts and Linings

Elegant color and texture

Stylish and highly fashionable

Low use of outer faced swings and threads

Strengthen Fabrics that need less iron and do not get saggy in rough use

Variation in edging and cut edges that differs from existing fashion

Light weight and comfortable for the shaping and swing

Casuals Dresses

T-shirts, Jeans, Polo shirts, Trousers and Windy for Men

Jeans, T-shirts, Polo shirts, Trousers, Capri and Tops for Women

Informal stylish Cuts and decorated Linings

Elegance in texture and fitting

Stylish and highly fashionable in occasional use Strengthen Fabrics that need less iron and do not get saggy in rough use

Variation in edging and cut edges that differs from existing fashion

Accessories


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Metal, wood ornament and leather money bags, hand parse, chain,bracelets, belts, Tie, Cap etc

Light weight and exclusive shapes

Stylish and highly fashionable in occasional use


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3.5 Distribution:

BASALT branded product will be distributed through a network of selectedstore and BASALT Branded outlets. Outlets and Selected stores are:

BASALT Branded Outlets:We will use our own establishments and rented outlet in the main cities ofBangladesh. Our own branded outlet will place all the products we offer in themarket.

Franchise Outlets:We franchise some of the company to use our logo and marketing strategy forselling our brand product in the selective distribution stores all over thecountry.


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4.0 Marketing Strategy

4.1 Objective:

We have set an aggressive but achievable objectives for the first and second

years of market entry.

First Year Objective:Our first year objective is to gain first years market share of 5 percentand sales of 200,000 units. Our target is to achieve first years revenueof 200,000,000 BDT and to meet the break even in the first year.

Second year Objective:We want achieve 2% profit from the 300,000 sales units with300,000,000 BDT and 600,000 BDT. That gain 10 percent market share.

An important objective will be to establish a well regarded brand name link tomeaningful positioning. We will have to invest heavily in marketing to create amemorable and distinctive brand image projecting innovation, quality andvalue. We also must measure awareness and response so we can adjust ourmarketing efforts if necessary.

The name BASALT is the name of the core group of the company that islaunching the new product in the market. We will have to determine whetherwe have to create a new brand name and image or on go with this existingname instead of using the mother brand name BASALT.

4.2 Target Market:

Our marketing strategy is based on a positioning of product differentiation.

Our consumer market is middle-middle to upper-upper incomeProfessional, Students, youths, and Trendy Users who are basicallyfashion lovers and comfort seekers.

We also targeted those who are very stylish and elegant in choice in the

dresses. They like to use unique dresses in benefit, quality, color, fabricand features.

Our targeted segments can be described by age, usage status andincome that are:

Segments Age Usage StatusYouths 16-35 Occasional / Celebration/Regular


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Professionals 25-50 Formal UserStudents 16-28 Celebration/Regular UserTrendy Users 20-45 Personal Fashion

4.3 Positioning:

Using product differentiation, we are positioning our product as the mostversatile, convenient, unique, comfortable, elegant, and elite and value addedstyle for personal, occasional and professional use. Consumers will rememberour brand whenever they think of comfortable but very elegantlyfashionable outfits specially made for him or her in purpose in the life.

4.4 Strategies:

Marketing strategies need to broken down into strategies in specificareas of 7Ps.

Product

Formals DressesPants, Trousers, Shirts, Formal Polo Shirts, Blazer, Coats and Ties forMenShalware, Kamij, Shirts, Pants, Blazers and Blouses (Tops) for WomenCasuals DressesT-shirts, Jeans, Polo shirts, Trousers and Windy for MenJeans, T-shirts, Polo shirts, Trousers, Capri and Tops for WomenAccessories

Metal, wood ornament and leather money bags, hand parse, chain,bracelets, belts, Tie, Cap

Pricing

The technology and the product features we are using require very highpricing. Based on this factor the price would be very high but we areoffering minimum price relative to the product features. Even the priceis little bit high comparison to other competitors in Bangladesh to createthe image of high quality and higher value. The price level of the

products will vary from 500-20,000 which is 2% extensive than othercompetitor but comparison to the quality it is affordable.

Distributions

BASALT branded product will be distributed through a network ofselected store and Branded outlets. Outlets and Selected stores are:


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Physical Environment

Our branded outlets will be decorated according to our brand and thewhole environment of the outlets will give the customers a very specialmoment to visit them. Physical environment will reflect our value and

quality to the consumers.


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4.5 Marketing Mix:

Spring:We will initiate 30% trade sales promotion in the spring season for theproducts of cold weather. Various outlet will be decorated under the hot

weather seasonal environment and sales force will effort to sale up to 30%sales allocated for the first year in second term. Accessories department donot have any variation on the seasonal basis.

Summer - Fall:BASALT will initiate 70% trade sales promotion in the summer to fall seasonfor the products of warm weather. Various outlet will be decorated under thehot weather seasonal environment and sales force will effort to sale up to 70%sales units allocated for the first year in this term.

4.6 Marketing Research

Using research, we will indentify specific features and benefits our targetmarket segments value. Feedback from market tests, surveys, and focusgroups will help us develop the BASALT Brand Products. We are alsomeasuring and analyzing customers attitudes towards competing brands andproducts. Brand awareness research will help us determine the effectivenessand efficiency of our messages and media. Finally we will use customersatisfaction studies to judge market reaction.


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5.0 Financial Analysis

5.1 Break Even AnalysisTotal first year revenue for the BASALT Fashion House is projected at200,000,000 BDT, with an average whole sale of 1000 BDT per unit variable

cost per unit 300 BDT sales volume of 200,000 units. Break even calculationsindicate that BASALT will become profitable after the sales volume exceeds42857 units.

Our braek even analysis assumes per unit whole sale revenue of $300 perunit, variable cost of $300 per unit and estimated first year fixed costs of30,000,000 BDT. Based on this assumption Break even calculation is:

30,000,000= 42857BDT

1000 -- 300

5.2 Marketing Budget

Marketing expense budget 2010-2011

Web site 11,00,000

Advertisement 44,80,000

Printed materials 80,000

Sales force 50,40,000

Total Sales and Marketing expenses BDT1,12,00,000


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6.0 Implementation & Controls

6.1 Implementation:

We are planning tight control measures to closely monitor quality and

customer service satisfaction. This will enable us to react very quickly in

correcting any problems that may occur. Other early warning signals that will

be monitored for signs of deviation from the plan include monthly sales and

monthly expenses.

6.2 Marketing Organization:

BASALTs chief marketing officer Shakerul Tazu will be responsible for the

marketing activities.

The graph below shows the marketing organization:

Shakerul Tazu

Chief Marketing Officer

Md Eamin Zabed

Sales Manager

Subrata Kumar

Singha

Advertising Manger

Farhana Yeasmin

Lopa

Promotion Manager


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References

1. Marketing Management, by Phillip Kotler & Kevin Lane Keller

2. Ms Nazia Nabi, Faculty, School of Business, How to write Marketing

Plan


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Appendix

Content 1.

Developing 20 MCQ for gathering information.

Documents

92979659 a Term Paper on Markting Plan on BASALT[1]