An Assignment On

“Introducing a new product in the market”

Submitted By:

Hafiz Malik Ananta (0923BBA00970)

Summer Semester, 2010

Course Code: MKT302

Course Title: Marketing Management

Under the Supervision

Of

Md. Mahabub Alom

Senior Lecturer

Department of Business Administration

………………………………………………………..

DBA, Manarat International University, Dhaka

July, 2010

ACKNOWLEDGEMENT

First of all, I would like to express my deep gratitude to the almighty Allah for fruitfully

preparing this report.

I am thankful to honorable Teacher Md. Mahabub Alom who gave me the opportunity to conduct my assignment on how we introduce a new product in the market.

I would like to convey my appreciation and thanks for those who have guided me generously

with the right knowledge for this assignment.

Hafiz Malik Ananta (0923BBA00970)

2

Marketing Plan Contents

Particular Page No-

Executive Summary ……………………………………………………………………………………….04

Current Market Situation ……………………………………………………………………………….04

Opportunity and Issue analysis……………………………………………….......................05

Objectives……………………………………………………………………………………………………. 06

Marketing Strategy………………………………………………………………………………………..06

Action Program……………………………………………………………………………………………..07

Financial Projection……………………………………………………………………………………….07

Implementation Control………………………………………………………………………………….08

3

EXECUTIVE SUMMARY

Bangla Tobacco Company (BTC) a start up company is getting to introduce a new cigarette ‘Winston Cigarette’. Actually BTC is launching the global tobacco R.J. Reynolds brand as a franchisee. BTC’s new product is entering a market place crowed with offerings from British American Tobacco Bangladesh Company and Akij Group ( brands like Benson & Hedges, Marlboro, Gold Leaf ). The following is excerpted from the marketing plan that Hafiz Malik Ananta, BTC’s chief marketing officer, has prepared for the coming year.

CURRENT MARKET SITUATION

The taka 70 billion tobacco market is dominated by British American Tobacco Company owning over the half of taka 70 billion market shares and also selling about 200 million Benson & Hedges sticks a month. Market leader British American Tobacco Company offers a range of branded cigarette like Benson & Hedges, Gold Leaf, Star and also other ten branded cigarette. Akij Group, an aggressive number two in the market with its branded cigarette like Marlboro, Castle, Navy, Sheikh. The company’s Dhaka Tobacco is now the second largest tobacco manufacturer in the country with sales of over Taka 18 billion. Also cigarette made by some other tobacco company. Despite intense competition BTC can rely on numerous strengths. First it has a superior brand name ‘Winston’ one of the most popular cigarette brand all over the world. Second it has a superb quality and magnificent taste. Third it is priced lower than competing cigarettes. However its weakness includes new product hard to capture market share and there are macro environmental factors that effect BTC’s new product.

4

OPPORTUNITY AND ISSUE ANALYSIS

BTC is launching the global tobacco R.J. Reynolds brand as a franchisee. The US-based R. J. Reynolds Tobacco Company has audited and validated the factory where the premium brand would be produced using imported roasted tobacco.

BTC uses ingredients in its tobacco products in order to achieving the desired taste characteristics by using the minimum amount of additives still the manufacturers produced a smoking cigarette that doesn’t contain any additives. The name of it is Winston. The experts departed from the fact that some adult tobacco consumers prefer tobacco products with no ingredients added to the blends.

Winston cigarette superior tobacco quality, which is represented by Burley tobacco. Winston cigarettes brand possesses high content of nicotine, low content of sugar and is characterized by slow smoldering that turns smoking into a delightful and enjoyable process. It is notable for its exceptionally smooth strong taste.

BTC’s new product is cheaper than competitor’s brands like Benson & Hedges, Marlboro. But increased competition will complicate to achieve desired market share.

Among the issue BTC must address are:

Should it develop various categories of ‘Winston Cigarette’ brand like Winston Classic, Winston Menthol, Winston White, Winston Slim and Winston Filter?

OBJECTIVES

5

1. Achieve per month total sales of 2000000 units based on an average price of Taka 100 per unit (packs).

2. Generate 30 percent brand awareness within the consumer target market.

3. Try to achieve at least 15% share in the market.

4. Arrange for distribution all over the country in the first year.

MARKETING STRATEGY

The target market is middle and upper income people.

Highlights of BTC's Marketing Strategy:

1. Positioning: Winston cigarette is for adult smoker.

2. Product: Introducing a new branded cigarette in Bangladesh market.

3. Pricing: The price of our product is Taka 100 per packs (20 cigarettes).

4. Promotion: Our Company launches many promotional activities like advertisement, live concert, sponsorship etc.

5. Distribution: Should be distributed all over the country.

6. Marketing Research: Measuring brand awareness before and after marketing campaigns and customer satisfaction and identifying opportunities for future product development efforts.

ACTION PROGRAMS

6

BTC will carry out its marketing strategy and achieve its objectives through a variety of scheduled programs. In August Winston cigarette will be launched in market. In September it will kick off its advertising with an integrated print/radio campaign supported by point of sale signage.

FINANCIAL PROJECTION

V.C= 60 taka

F.C= 60000000 taka

Expected Unit Sales= 2000000 (packs per month)

Unit Price= V.C+F.C/Sales unit

= 60+60000000/2000000

= 90 taka

10% Mark Up= Unit Price/1-Expected Unit Sales

= 90/1-.10

= 100 taka

Break Even = F.C/Price-V.C

= 60000000/100-60

= 1500000

Price Unit demandneeded to Break event

Expected unit demand at given price

Total Revenue

Total Cost Profit

85 5500000 5000000 425000000 360000000 65,000,000 taka

90 2500000 4800000 432000000 348000000 84,000,000 taka

95 1950000 3000000 285000000 240000000 45,000,000 taka

100 1500000 2700000 270000000 222000000 48,000,000 taka

105 1000000 700000 73500000 102000000 -285,00,000

7

IMPLEPENTATION CONTROL

This marketing plan includes a detailed budget, schedule and managerial assignment for every action program. For control purposes the plan also allows for month by month comparison of actual verses projected sales and expenses.

8