East West UniversityMarketing Management

Assignment TopicMarketing plan of Pran

Course InstructorProf. Dr. Serajul Hoque

Prepared By Nur-A-JahidSection No - 3ID: 2013-1-95-017

14th February, 2014

Prof. Dr. Serajul Hoque Faculty, MBA ProgramEast West UniversityDhaka, Bangladesh

Subject: Marketing Plan

Dear Sir,

I wholeheartedly thank you for giving such a wonderful opportunity to make a Marketing plan for MBA506 (Marketing Management) course. It has been a wonderful opportunity to learn and it has given us many insights into the Marketing scenario of Bangladesh. In business; marketing is a tough job. Along with investment, there is also the need of proper planning, market information, strong management, training and follow up programs. I believe marketing key person who have go into a business taking all aspects of the business into considerations are likely to do better than others. I went through a very tough time to which business I select for a Marketing Plan. And finally I have designed a business plan of Pran foods

I tried really hard to make a comprehensive analysis. I have conducted some research that was possible under the scope of the knowledge that I have gathered collectively so far. I hope that I have managed to live up to your expectations and come up with a feasible business marketing plan.

Sincerely,

ID : 2013-1-90-003

Table Of Content

SlTopicPage

1Introduction

2Executive Summary

3Situation analysis Customer Competitors Company Context

4market opportunity and issue

5Objective

6Marketing Strategy

7Target marketing

8Positioning

9 Market mix

10Review and control

11Marketing organization

12Contingency plan

13

14

15

15

INTRODUCTION PRAN in Bangladesh are blessed with a climate ideally suited to agriculture, specially fruits and vegetables-rich in taste and flavor: sweet, mellow and juicy. PRAN Groupis the Bangladeshi food-products corporation based in Dhaka, Bangladesh. founded in 1981. It it the largest food and nutrition company of Bangladesh, It is the largest exporter of processed agro products with the compliance of HALAL & HACCP to more than 82 countries.The Company's principal activity is the manufacture and sale of Juice, Snacks, Soft Drink, cakes and dairy products.PRANis an established brand of Bangladesh with an extensive sales force all over the country.PRANhave a well-developed infrastructure for production, sales and distribution.PRANhas proven itself as Local product but of international standard.As a part of Marketing Management Course I have to do a Marketing Plan and select PRAN as my desire brand. This is an overwhelming opportunity for me to learn how to write a successful Marketing Plan.

This is the first and largestISO 9001certified food processing industry in Bangladesh.

Origin

This Marketing Plan is a requirement for the course on MBA506 (Marketing Management), assigned to me by Prof. Dr. Serajul Hoque , the course instructor. It is necessary to know how to make a Marketing Plan, because when we start any business first we have to make proper Marketing Plan. And my course instructor Prof. Dr. Serajul Hoque sir always believed that having a practical knowledge of issues pertaining to being an Marketing person is more valuable than being involved in only text books and so on. He also believes in making discoveries, and emphasizes on learning ourselves. Hence, I tried my best to show-off the knowledge and information which I gained from primary data source, the real-life, and practical lessons given to me during the classes.My Marketing Plan is on Pran Food Industries Limited

Objective To come up with the detailed analysis of the aspects relevant to. how to conduct a Marketing Plan and its implementation. To learn about the ways in which forecast and anticipations are made and used in practical situations relating to marketing. To analyze the issues that would be relevant to the contingencies of the business and to be able to accumulate the things that we have learnt till now To gather knowledge on the writing and developing of a proper marketing plan would be essential if we will be a part of any businesss marketing management in the future. To enable myself to be more effective marketing person.

Scope:The market of soft drinks and beverage is very competitive. It may say that as a strong market. This project paper is prepared as a marketing plan of a product of AMCL which brand name is PRAN.

MethodologyIn carrying out the activities we have followed certain strategies. We collect some information from the internet and we also conduct a survey among the students. Finally, we analyze this information to complete the Marketing Plan.We have put down the methodology of carrying out these activities in according to the sections mentioned next.

Data SourcesBoth primary and secondary data have been used to come up with the Marketing plan report. Our source of data is internet, other company profile, published magazine by other company etc. we also collect information from our experience.Some of the sources of the primary data are:

Websites and internet pages. Personal Interviews Consultation of the secondary data sources Surveys In depth interviews, mainly of the potential customers. Guidelines provided by our faculty during lectures. Books and journals on Executive Education Centers. Periodicals regarding the demographic characteristics of Bangladesh and deciding on which market the service should be introduced. Tricks of the trade we picked up from other courses.

The Limitations The study suffered a number of limitations. At times I was thinking that I might not be able to submit the Marketing Plan on time. But thanks to Almighty that it was not happen. The limitations are: Lack of time for preparing the report. Unavailability of information Unconfirmed accuracy of certain information acquired In cooperation of respondent Lack of the part of experience of the researchers. Lack of information from the primary source. The comparisons may not be effective enough.

Executive Summary

PRAN group of companies is one of the leading business institutes of Bangladesh .I have prepared report based on Practices of SHRM of Pran Food & Beverage . To prepare this report I have followed informal questionnaire. In the report I discuss about Company overview, literature review, Business strategy of the PRAN Food and Beverage, relationship between business strategy and HR practices of the organization, influence of business strategy various HR practices .PRAN encourage their employee to take part in opportunities and programs that will add to their aptitude to bring value and ensure further augmentation and achievement for themselves and the Company. Every year they are challenging their previous success. They are pleased with that what they have achieved previously but not delighted with that. (Pran Food, n.d.) and Beverage every endeavor is to outweigh their past performance. They are growing and growing in the global market. At last I shortly discuss practices of Strategic Human Resources Management in Bangladeshi local company PRAN Food and Beverage.

PRANis currently the most well known household name among the millions of people in Bangladesh and abroad also.Today, our consumers not only valuePRANfor 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 makePRANa truly international brand to be recognized globally. To make this happen we are introducing a new product named Coconut Juicepakin 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 & childrens. 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.

Company Overview

Background PRANstarted its operation in 1981 as a processors fruit and vegetable in Bangladesh. Over the years, the company has not only grown in stature but also contributed significantly to the overall socio-economic development of the country.

PRANis currently one of the most admired food & beverages brand among the millions of people of Bangladesh and other 82 countries of the world wherePRANProducts are regularly being exported.

All thePRANproducts are produced as per international standards maintaining highest level of quality at every stages of its production process.

PRANis currently producing more than 200 food products under 10 different categories i.e. Juices, Drinks, Mineral Water, Bakery, Carbonated beverages, Snacks, Culinary, Confectionery, Biscuits & Dairy. The company has adopted ISO 9001 as a guiding principle of its management system. The company is complaint to HACCP & certified with HALAL which ensures only the best quality products are reaches to the consumers table across the Globe.

PRAN are very keen to adopt a new technology as it is discovered because of being in such a competitive market.PRANsR & D are always working hard for a better technology of production. All departments administrative works are done through connected computers using the best software and hardware.Being a major exporterPRANhas to communicate a lot with outside suppliers, retailers or consumers. Therefore this section is very important for AMCL.PRANhas taken this communication issue very seriously. They often have to do meetings by doing teleconferences, internet shopping, video conference etc.AMCL provides with good quality products conforming to local tastes, health and hygienic standards which are of affordable price and within the reach of target consumers. This is the first and largestISO 9001certified food processing industry in Bangladesh.

Selected awards, certifications and rankingsPRAN has received IMS certificate as the first food processing company in Bangladesh. IMS is known as combination of Environmental Management System ISO14001:2004 and British Standard Occupational Health Safety Assessment Series (BS OSHAS) 18001:2007

:

Companys Logo PRAN Group

TypePrivate

IndustryFood processing

Founded17 March 1981

Founder(s)Maj Gen (Retd.) Amjad Khan Chowdhury

HeadquartersPRAN-RFL Center, 105, Progoti Sarani, Middle Badda,Dhaka1212,Bangladesh

Area servedSouth Asia,Africa,North America,Europe,Middle East

Key peopleMaj Gen (Retd.) Amjad Khan Chowdhury (CEO)

ProductsJuice,drink,beverage,confectionery,culinary,snacks,biscuits,bakery,dairy

Revenue 123.3 billion (2012)[1]

Employees30,000

Websitehttp://www.pranfoods.net

Corporate Office:Head Office:PROPERTY HIEGHTS, 12 R.K. Mission Road, Motijheel, Dhaka-1203, Bangladesh.Factory:Ghorasal, Palash, Narshingdi, Bangladesh.

Mission & Vision:

POVERTY & HUNGER ARE CURSESMission :To generate employment and earn dignity & self respect for our compatriots through profitable enterprise. Our Vision: Improving Livelihood

Market and Products

Market Situation Analysis: Water is everywhere But just a little that is cleanWater, The fountain of all life. Even a toddler will tell you it is a prime need of the body. Sixty per cent of our body weight is made up of it. Water can also be the cause of much misery. Specially in Bangladesh, where contaminated water continues to bring down millions with diseases such as diarrhea, dysentery, typhoid, jaundice and gastro-enteritis.Getting pure drinking water from municipal taps in cities and towns is now a luxury. At home most people are forced to either bottled water or install purifiers. While traveling or eating out in restaurants, buying bottled water has become a necessity. This need has seen an explosion of companies marketing safe drinking water in bottles across the country.Till about ten years ago branded bottled drinking water were seen to be an item of middle class and elite consumption, mostly produced by multinational companies through their Bangladeshi arms. The total size of the branded bottled drinking water market in Bangladesh is about one thousand corer, consumed by some 50 million households (Source: Bangladesh Retail Audit).

Major industry players in BangladeshCurrently there are so many juice companies in our country. Among them pran is the leader of juice sector in Bangladesh. Except pran, Lemu, Mojo, RC cola, Pepsi, URO Cola, Virgin, Fruti, Coca cola, 7up, Tiger. Shezan Juice, Rasna.Here we are showing current situation of regular branded bottled drinking water which are very much popular in Bangladesh.Currently MUM is being considered as market leader in this business and others are as followers.

FrutikaMojo,RasnaShezan JuiceUROMerindaMangoli

Starship

Fruti

Market share of different brands in Bangladesh is given below, here we have given the collective data based on the regular bottled water marketed companies in Bangladesh, we are concluding by market leader, challenger & followers.

Name of brandMarket share in %

Pran Fruto36%

Frutica18%

Starship18%

Mangoli9%

Sejan9%

Rasna4%

Others6%

Source: Bangladesh Retail Audit-2009

Market summary

Customer pranS TOTAL CUSTOMER REACH 300 million (approx) all over the world specially South Asia,Africa,North America,Europe,Middle East as per their website.

PRAN, the largest exporter of processed food from Bangladesh, had a vision of creating a huge demand globally of those agro based products produced by native farmers. The key was to process the agro products and increase shelf-life thereby. Starting successful journey to export market in 1996, PRAN currently exports to over 82 countries.

Product Review:The Company's principal activity is the manufacture and sale of Juice, Snacks, Soft Drink,, Carbonated Soft Drink , Confectionary ,Culinary ,Biscuits cakes and dairy products. Among many of their productsPRANsmain product is their fruit juice and fruit drinks, which is very popular among the existing market. The product line is: 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.Fruit juice in glass bottle (returnable):It is hygienically produced by state-of-the-art machinery. Available inmango flavor, made from fresh local ripe mangoes.

Fruit juice in glass bottle (non-returnable):This category of juice is found in non-returnable glass bottle in flavors ofmango, guava and orange.

Fruit juice in aseptic pack:Available flavors in this category are:mango, lemon, orange, pineapple, guava and mango-pine., fruits cocktail and litchi.The name of the available packs are : PRAN Joy PRAN Mango Juice Pack PRAN Premium Mango Juice PRAN Juice (Premium) PRAN Apple Nectar PRAN Junior Juice PRAN Frooto

Fruit juice in can:The fruit juices in cans are hygienically produced by state-of-the-art machine from flavors ofmango, orange and guava.

PRAN Juice Tin Can

Fruit Cocktail

250ml

Mango

250ml

Tamarind

250ml

Orange

250ml

Banana

250ml

Guava

250ml

Pineapple

250ml

PET bottleAvailable flavors in this category are:Kagozee , Guava, Mango, Orange, Apple

PRAN Juice

Guava Juice

250ml

Mango Juice

250ml

Orange Juice

250ml

Apple Juice

250ml

Review of distribution:Pran primarily use existing distributors for distributing their productPran Juicethen; they make some new channels and assign some distributors to promote their product to all over the country. So pran deal with this chain:Manufacturer > Wholesaler> Retailer> CustomerFigure: Distribution ChannelCompany using mobile shop in the shopping malls, offices and crowded areas so that people can purchase the product easily when they like to consume. We will make our consumer byValue Delivery Network.SWOT Analysis:Strengths:Government support:Being the biggest local force in the industry AMCL always had government by its side. Government has been supportingPRANin many ways like subsidies, export subsidies, tariffs on foreign competitors etc.First movers advantage: PRANentered the market when the product was still very new to the consumers and there was little or no presence of any other local companies with such investment. ThereforePRANhad the first movers advantage which they are still enjoying till now.Internal strength:AMCL has a very powerful management team to guide a strong gigantic workforce. Despite its huge sizePRANhas been able to maintain labor productivity and increasing sales. Its labor productivity is twice as much as any other local company in the market (Not foreign companies).Market share: PRANAMCL has a great competitive advantage over the other competitors. As mentioned earlier it is the largest fruit and vegetable processing industry in Bangladesh and holds the biggest share in markets in Bangladesh among the local companies.PRANhas the largest sales in fruit drinks after Coca-Cola and PepsiCo.Weaknesses:External threats:Too much competition from international organizations, for example Coca-Cola, PepsiCo, RC-Cola, Virgin Cola, Rasna (India), Shezan (Pakistan) etc.Internal weaknesses:Large size of the business and workforce makes it difficult to manage perfectly. As a result it often causes internal conflict.Opportunities Existing competitor of the current market is not that much strong which the pran company has. Pran can be export to other countries. Existing distribution channel is being used. High growth rate in this industry.Threats Competitor can produce the same product. Downward pressure on pricing. Political instability, economy etc. New innovation from other competitors could be a threat.Marketing StrategyMarketing strategy

Our target strategy will be mainly based on Marketing strategy and Sales forecast strategy. We are implementing the product development technique, existing market, new product.

The definition of marketing strategy says,

Find the demand of market

Develop your product

Earn profit by customer satisfaction.

We have done our survey, we have talked with the distributors, wholesalers, retailers, our potential customers, and we know what demand we have in the market, now its time for the implementation.

A five liter can is being sold 55-60tk depending on the brand, where as we are launching our own brand on only 55tk as the labor is still cheap in Bangladesh.

We will do some serious type of promotional activities, we have to make such a impression that people has to come to us, from branding to launching, from distributor to retailer to customers, we have to be very much conscious to capture their mind and heart. No matter what strategy do we need to follow, we will do, our main target will be maximizing the profit for our organization, if our organization gets benefit, and we get benefit too.

We will call the press, TV, radio media on the product launching ceremony, we will give each of the staff a 5liter of Bottled drinking water as a gift, we will try to bring health minister for the launching ceremony, so that people may understand that even the government is also concern for the common peoples health.

Mission: our main mission to be the market leader of bottled drinking water industry in near future.

Every company wants to be a giant in market, so do we, currently we are in a position of zero but we have a unique and standard product which will be our key of success. Innovative techniques will be added to capture the market share, thats why we have hired some of the most experienced sales and marketing team for our company.

Branding:

Branding is a very important part of any product, a product always known by its brand name, image and quality. We have chosen this word BLUE because its the image of clean and beautiful water. There are typically four levels of meaning conveyed by a brand name. The following is an analysis of what BLUE brand names convey

Brand

Level BLUE Mineral water

Attribute Premium quality, high prestige

Benefit Pure water, Good health

Value Healthy life

Personality Dependable, healthy

Market segmentation:

The preparatory point for discussing market segmentation is mass-marketing.The market for any product is normally made up of severalsegments. A market after all is the aggregate of consumers of a given product. And, consumer (the end user), who makes a market, are of varying characteristicsand buying behaviour. There are different factors contributing for varying mind set ofconsumers. It is thus natural that many differing segments occur within a market.In order to capture this heterogeneous market for any product, marketers usuallydivide or disintegrate the market into a number of sub-markets/segments and theprocess is known as market segmentation.

Attributes of effective market segmentation:Identifiable, measurable, substantial, accessible, differentiable, profitable, durable, compatible, actionable.Now we will describe PRAN juice market segmentation under the umbrella of age, gender, occupation, income, location, social class, lifestyle, personality and behavioural variables:AMCL (PRAN) company offers best quality juice with different packages to customers at a very competitive price. Depending on the market researchers information and considering the growing depend of different juices PRAN is in the top position.AgePRANsprimary target was only the young generation where theage may vary from 16-27. But it is not limited within this age. It has also spread out among the children noticeably as well as the peopleabove 27 yearsGenderBoth young boys and girls are the target market for the PRANjuice. Itis not specially made for any particular genderOccupationOccupation is not clearly defined for the target market of Pran juice; however where the age varies within the young generation as well aschildren so it can easily be understood that most of them will bewhether student or doing any job or businessIncomePRANjuicepreserve500ml, and 900ml Orange, Mango, Cocktail Special juices which will be totally sugar free but sweet. They keep their price relatively low than other soft drinks and fruit juice. The whole production process is in strict conformity with international standards, and constant research and development all products. Pran Juice provided superior valuetotheir customer who they promised throwing advertising.LocationAlmost all the places of urban and rural area are under the PRANsdistribution. Especially in each and every part of the Dhaka andChittagong city PRAN is available. The company has emphasized onDhakawhere more than half of total sales (52%) comes from onlyDhaka.

Social Class

PRAN is targeted for the upper part of the lower class, middle class,upper middle class, and lower part of the upper class of the society.

Lifestyle

The targeted market of PRAN is basically young generation who like gossiping, chatting, hanging with friends, making fun, watchingmovies, listening music etc. PRAN has also focused on their customers lifestyle in product, advertising and packaging.

Personality

The customers of the PRAN are mostly action oriented peoplewhich include especially the experiences. It also focuses thepersonality of the status oriented people including achievers andstrivers.

Brand position of PRANPRANis currently one of the most admired food & beverages brand among the millions of people of Bangladesh and other 82 countries of the world wherePRANProducts are regularly being exported.

All thePRANproducts are produced as per international standards maintaining highest level of quality at every stages of its production process.

PRANis currently producing more than 200 food products under 10 different categories i.e. Juices, Drinks, Mineral Water, Bakery, Carbonated beverages, Snacks, Culinary, Confectionery, Biscuits & Dairy. The company has adopted ISO 9001 as a guiding principle of its management system. The company is complaint to HACCP & certified with HALAL which ensures only the best quality products are reaches to the consumers table across the Globe.

Target Market of PRAN juice6.1 AgeAge is the major determinants in targeting the consumers. PRANreflects the Bangladeshi culture and it represents youth. From oursurvey, we have found that PRAN is most preferred in the age groupbetween 20-25years (85% of 100). Moreover, the least PRANpreference comes from two age groups: 25-35 years and 35-45 years, about 1%.

6.2 SexBeverage is used for thirst-quenching purpose and this product is gender neutral, meaning there is no such kind of obligation to consume the product for male or female. However, from our survey outcome, weve found that 71% of the consumers are male and 29% are femalefrom 100. All the respondents are from urban location.

6.3 Occupation & IncomeConsumers purchasing pattern, lifestyle and status largely depend on their occupation and average monthly income of the family.The social class of the target respondents was determined by theirincome or taking from family. PRAN is a low involvement product and itis good enough to consume by upper and middle class. From thesurvey respondents, students are the most who purchase PRAN andtheir income level is less than 5000 taka. Business people, privateservice personnel and other earning people consume less amount ofPRAN although their income is comparatively high than the students

Target market:

Our target market would be whole Bangladesh including all the division of it, main focus would be on the major cities first, as we are very much new in this market, later on, we will move to different segments..

We are going to introduce the following product lines:

a) 20 liter plastic containerb) 10 liter plastic containerc) 5 liter plastic containerd) 2 liter plastic containere) 1 liter plastic containerf) 500mili liter plastic container and g) 250mili liter mini pack

Our packaging will be done in a way so that we may target any kind of consumer & business market at a same time. Our target market is segmented in few sections:

21

Business market: 20lts plastic container10 liter plastic container5liter plastic container

Consumer market: 5liter plastic container2liter plastic container1 liter plastic container500mili plastic container and 250mili mini pack

We have described who is our business and consumer market earlier, we are packing this big container as the business market dont buy their raw material every day, specially which products are long lasted, so when they will buy, they will buy in bulk, it would save their time and money if they buy it from us.

According to necessity of bottled water like monthly, weekly or daily basis customer may buy our water from our retailers. Business market usually means the offices, hotels, restaurants, community centers and other commercial and social programs where large amount of water is needed in daily basis. And for consumer market is actually for all sorts of people.

PositioningPran always try to position their product through image differentiation, because related marketing, and product differentiation. Pran will use logo and short advertisement 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. Pran will use USP (Unique Selling Proposition) for their 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 Affordable and Profitable

Marketing Mix:Our marketing mixes for the productPranare.ProductVariety

Target CustomersIntendedPositioningQualityDesignFeaturesBrand NamePackagingServices

PriceList priceDiscountAllowancePayment periodCredit terms

PromotionAdvertisingSales proportionPublic relationPersonal selling

PlaceChannelsCoverageAssortmentsLocationsInventoryTransportation

Marketing Mix

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 juice. They will be able to differentiate our product in quality which is unique in the soft drinks market. They will not be able to feel the same way for the other soft drinks in the market.

Price

Based on market share, competition, product identity and customers perceptions, we will set our pricing strategy.As the market is getting competitive day by day so the profit margin should be very low according to market behavior. We can take advantage of economic of scale to fix our pricing strategy. If we can reduce our cost than our profit margin could be better than others.From the market research, we received the following-Product250ml500ml1 litter

Pran juice22tk40tk70tk

Mojo22tk40tk70tk

Frutica22tk40tk70tk

Other soft drinks like cola15tk30tk60tk

Place

As we have better economic scale and as a result we are having higher profit margin than our competitors, so we can spend some resource from our extra profit margin to target a new market outside dhaka. Our new target market will be outside Dhaka city, where people will get our product in a new reduced price.We are also using mobile shop in the shopping malls, offices and crowded areas so that people can purchase the product easily when they like to consume. We will make our consumer byValue Delivery Network.

Promotion

The most successful advertising will be throughBTV, NTV, Channel I, ATNBangla and RTVwhich are the most popular television channels in the country. We will also use some bill-boards and leaflets and we will hold a sport event to promote the product. We will also use our experience so that we can create attention to the customers.

Market Positioning:

This would be our first Bottled drinking water launched in Bangladeshi market, there are few large companies who are currently capturing the market of bottled water, a few of them are in top position as market leader and most of them are following the market follower policy.

The big companies are dominating cause of their huge investment and promotional activities, their product quality might not be that much of enriched like ours but currently they are in existing market with a major market share. Where we are coming as a new comer and we will follow the market follower strategy for few years but we are not here to be a market follower, our main target would be to be the market leader someday. Company like us cannot challenge them with a unique product right now; we are only going to serve a portion of the total market which is known as niche market but we are going to act as market follower in this case.

Right now, our position is in zero. We have to take it higher than others, if we can cross the barrier of 10% of the total market, we will create a threat to the existing big companies and they will definitely change their marketing policies and strategies.

We must understand that, we cannot dominant the market right now as the major market share are on regular bottled water; we will create threat also opportunity for them. Only a single advantage what we got is maybe for two to three years we might dominant the niche market for our good will and brand position and for high demand of Bottled drinking water but, after that other companies will introduce same product maybe with our compete price or less as their business is already established. So we cant just loose our growing market share, in any mean we have to control the market share and grow it as much as possible.

Strategies

Every company takes necessary steps to sell their product in the market, even though our product is highly enriched but without any sales promotion activities or strategy, we cant get a good response from our target audience.

People buy those whom they remember every time when they imagine that particular product; we have to take strategies so that our brand name always stays in their mind whenever they remember bottled drinking water. Whenever they goes to shopping center or local stores, they must remember our brand, that will be our first strategy, and obviously if our product dont show high quality then these promotional activities wont have any effect. So our prior strategy will be sell high quality product in a competitive price to the customers.

We will apply marketing strategy and sales strategy/ promotional activities, we have done our survey, we have talked with the distributors, wholesalers, retailers, and we know what demand do we have in the market, now its time for the implementation.

Now the sales promotion activities would be as followWe are taking some strategies for both our target customers and the distribution channels.

For consumer:

Website:

We will launch a full dynamic website where we will give a full information about our company, about our companys mission, vision and objectives, messages from board of directors, list of the board of directors, background of board of directors, our product range, our product specification, our standard quality rating certified by different organizations, ISO certificates, our production equipments, our distribution channels, our sales promotional activities, our new product launching section, feedback section, contact section and a full bulletin board and a discuss forum where both employees and customer can interact same time so that we may get live feedback or suggestion from our customers. Even we will have a live chat option, we will give add to some paid popular website like yahoo, msn, Google, Amazon, CNN, bbc.co.uk, gumtree.com, also on some of the most famous websites like cell bazaar, clickbd, bdtradeinfo.com etc, the daily newspapers websites like prothom alo, janakantha, observer, the daily news, BDnews24.com.bd etc.

Newspaper:

One of the oldest and most effective media is newspaper, will call a newspaper media conference where we will give a detailed idea of our company and our product and for what reason we want to launch this Bottled drinking water in Bangladesh, we will invite all those medias who has a min of 5% of the total market newspaper readers. If its possible we would take the media to our factory for having an inspection, photo session will be allowed but not every part of the factory, and we wont revile our secrets to them as our business policy wont permit us.

Radio:

After 2006, radio industry has shown a huge improvement and currently its one of the most famous media all around the country, a huge number of old, young generation are fan of it, we will advertise our product in radio too, maybe as sponsor of a radio program, or any message full commercial related to health awareness.

Television:

A large number of invest would go on this sector, a full 30 second length of TV commercial will be made by some celebrities and it will be shown of all the television channels, also we will be sponsor partner of two soap opera and four general program, mostly on interval and in news our commercial advertize will be shown.

Discount/ scratch card:

Time to time for our promotional activities, we will provided 5-10% discount or for cash back, we will give scratch card with the bottled water container from different retailers and shops.

Quiz contest:

We will do a monthly quiz contest on news paper, a gift voucher of 500tk, 1000tk and 2000tk will be given to the winner.

Student sponsorship scholarship:

We will provide ten students of junior school, ten students of High school, five students of college and two students of university a fulltime sponsorship and scholarship depending on their merits and financial status. Afterward maybe they will be given preference to be a proud member of our company.

Social work:

Beautification of road or cleaning up the road or areas, tree plantation, or making awareness of Bottled drinking water, smoking, drugs or anti corruption campaign will be sponsor by us.

Wall poster:

we wont stick any poster on the wall, we dont want to destroy the beautiful walls of the high rising building, we will use posters with thread, all the papers will be made by recycle paper, front page will show our product and advertize and back page will be shown re-cycle symbol and signs for green and healthy environment.

Billboard:

We will print PVC billboard in the important and VIP roads, Dhaka Chittagong, Chittagong Commila, Commila-Shylhet, Dhaka Mymensing, Dhaka- Rajhshahi highways, we will try to put the billboards on eye level, not too far, not too near, as appropriate as it should be.

Banner:

Small 4X2 feet banner will be hang on VIP roads all around major cities and Metropolitan areas, and in villages.

Game sponsorship:

Bangladesh is a game loving country. We will arrange different type of games as cricket, football and some local games in school, college and in university.

Magazines:

We will publish a full four colored commercial advertize on the magazine back cover or in inner page with full details of our product and its usefulness.

Articles:

We will publish the usefulness of Bottled drinking water and our product in details in newspaper, magazine, cooking books and in e-blogs, we will maximize our profit also make people aware about the regular bottled water and our Bottled drinking water.

Mobile SMSs:

As this is a very expensive media, we will do this kind of advertizing later on when our company will be properly established, maybe after when we will reach breakeven point, we will consider this strategy.

Email:

we will send email to different internet community like face book, hi5 etc, also we will try to send email to executives of different companies making aware about our product & usefulness, we will take professional help of different consulting firms to collect the mail ids. Also we will communicate with our wholesaler, distributor, agent, retailer through mail; all the promotional activities or new offering will be announced through mail.

Local announcement:

one of the oldest and most effective way, where there is no TV or radio or medias, especially in villages, we will announced Micking, it is effective as we have seen different product launching.

Public TV ads in road:

There are few Road TVs situated in Dhaka and a few major cities, we will show our 30second long commercial add on there, it will be expensive but it got a huge impact, all level of people actually do look at the TV when they are in the road, especially when there is a traffic jam, they do look at the TV.

TV actors:

We will use some popular TV/Movie actor or singers to do our champagne, like say a 10seconds jingle for the usefulness of Cholesterol free product and it will be sponsored by our brand. Mainly in TV, magazine, newspaper, or in radio media it will be published or shown or heard.

Free samples:

We will provide free samples of 250ml pack to different schools, college & universities, shopping centers especially where the females are gathered. Like girls school, Ladies club, school gates, girls colleges. Also we will provide free samples in departmental stores like buy a specific amount of product & get theTarget marketOur main target market people are the young ages people who like to drink juice 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.

Target market: We are targeting our market by segmenting it in consumer market & business market.

Consumer market:

We are segmenting the consumer market by family size and social classes exist in Bangladesh.

Family sizeSocial class/Income Level

According to income level; consumers like monthly, weekly or daily basis may buy our drinking water from our retailers.

A mini pack of 250ml has been introduced for a daily basis use; our research says 20% of our population bye at least one 250ml of bottled drinking water in a day.

The average customers will buy 5 liter 250ml bottled drinking water according to their requirement. It will depend on their income and their daily requirement. The average selling patterns shows that mainly 5 liters to 1 liter containers are mainly sold all over Bangladesh, our main target would be those customers. The future forecast says a lot of things but we must learn what our actual customer would like to see from us after using our product.

Most of the family in our country is joint-family structured based, a large number of this is shifting to the single family size, for this our target would be the customers of individual and single family and joint family, our packing size would be according to their demand of consumption.

For distribution channels:

High paid commission:

every other bottled water company is paying commission to the retailers or distributors, we will also offer them commission, if the competitor market is giving 5%, we will offer 7% but the scale shouldnt exceed a scale, because we dont want to create chaos among the competitors, it might go against us.

Sales target gift:

We will give sales target to the distributors or the wholesalers, if they can matches our expectations we will great them with corporate gifts, also a very high percentage of commission as gift. We will provide rewards to the distributor like vacation voucher, expensive cell phones, watches, suits, corporate gift items, or vacation trip inside or outside Bangladesh.

Reward as best retailer:

We will choose ten best retailers among the cities. We will call a ceremonial meeting and will provide gifts like diary, notebook, banner, TV, ac, fridge or cell phones etc.

Awareness by:

Doctor:

we will do our main marketing through the doctors, we wont directly ask them to our marketing, we will call conference and it will be covered by different medias, the issue will be hygienic and health and safety, it will be sponsored by our brand and whole auditorium will be covered by our logo, motto, features and product pictures and healthy awareness features. Doctor can suggest the patients to use Bottled drinking water, cause actually this is good for health, we have seen that most of the babies and young generation are getting bulky and fatty for taking regular bottled water and fats, if we can reduce this amount, it will be beneficial for the society too. We have some motivation budget for the Doctors & the related area.

NGO:

we will take help of NGOs for marketing our product, NGOOs do go those places where we might not think to go, they go to the rural and urban areas, their medical facilities might teach the people of the awareness of the Bottled drinking water and also they may help us to distribute this bottled water.

Health ministry:

we will arrange seminar or conference with Health ministry, where they will discuss the usefulness of Bottled drinking water and also this program will be covered by press and media and we will cover the whole auditorium with our product pictures, motto, logo and product specification, we will take aggressive marketing policy in this cases.

Community clubs:

We will decorate some part of different community clubs with our 2X5 feet banners in a manner so that it may catch the eyes of the people who visits there, especially it will be displayed in lobby or4 in main entrance.

We will print leaflets and give it to the wholesaler, distributor, retailers, and consumers through post mail, by hand, with newspapers or with magazines.

Market Research

Before establishment of this bottled water company, we went to actual market where we have done some research by the following procedure to get some feedback of the buyer & seller through our questionnaires. Our research & development team prepared some questionnaires which is applicable for any kind of consumer from a housewife to officer, businessman to rickshaw puller, in simple word, everyone surrounded.i. How much bottled water do you bye monthly:1. 5liter2. 8liter3. 10liter4. Others. Please Mention _______ii. What brand of bottled water do you use:1. MUM2. Yes3. Pran4. Acme5. Fresh6. Others. Please Mention _______iii. Why are you using this bottled water:1. For price2. For packaging3. For quality4. Availability5. Brand imageiv. Do you think you are satisfied with your existing brand of bottled water:1. Yes2. No3. maybev. Have you heard the name of BLUE drinking water:1. Yes 2. Novi. From where did you learnt/heard about it:1. Newspaper2. Television3. Internet4. Person to person marketing5. Leaflet6. Wall poster7. Educational institutions

vii. Do you think BLUE bottled water is good for health:1. Yes2. Noviii. Do you think bottled drinking water is 1. extremely important2. very important somewhat important3. not very important4. not at all important for our health

ix. Are you willing to pay if the price for Bottled drinking water is higher than regular bottled water:1. Yes2. maybex. What kind of packaging would you like to buy:1. liter2. 2 liters3. 4 liters4. 5 liters5. 10 liters6. Minipack

xi. Do doctors recommend you regular bottled water or Bottled drinking water:1. Regular bottled water2. Bottled drinking water

xii. What is the most important consideration of yours when you buy your bottled water:

1. ..2. ..

Forecast and Financial analysis:

Financials

Financial objective:

Our total budget of this project is 160,000,000.00 taka including land, factory building, equipments, advertising expense, operating expense; it would also cover the salary of the factory worker to the office manager for onward three months. For our marketing expense we have 30,000,000.00 taka which is sufficient enough. We have a time limit of three years to get in the breakeven point, our expected break even time period would be three years, and it would actually depend on the sales how much we may gain or lose.The breakdown of the marketing cost is listed below

PromotionPeriodCost% of total Budget

NewspaperYearly12000006.49

WebsiteOnce5000002.70

TVYearly400000021.62

RadioYearly2500001.35

Screech cardYearly10000005.41

Quiz contest6 times in a year15000008.11

wall posterYearly10000005.41

BillboardYearly5000002.70

BannerYearly3000001.62

Game Sponsor3 times in a year7500004.05

Free SampleYearly750000040.54

Packaging and Pricing

PackagingPrice (In taka) Per bottle

20 ltr200

10 ltr110

5 ltr60

2 ltr25

1 ltr18

500 ml10

250 ml8

In the case of pricing three types of pricing is available: Low pricing Market price Premium pricingAdvantages of Market Pricing The consumer, so greater chance of accepting the price, accepts the price. Quality of the product initially would be accepted.

Disadvantages: No reason for the consumer to shift the product when the price is same. Product cannot be positioned as a premium product---------------------------------------------------------------------------------------------------It just a hypothetical forecasting and financial analysis2011,December2012,june2012,December2013,JuneAverage

Revenue621,802,000855,403,000682,766,000647,088,000701,764,750

Profit after tax20,673,0002926600021,579,00020,622,00023,035,000

profit margin0.0332469180.034213110.0316052640.031868930.03282439

Our target for December,2013 is to increase revenue. As we have reduced our price and will start our promotional activates from the last quarter of 2013, so at that time revenue will go down because of low margin and promotional cost.

July:In June we will arrange meeting with our suppliers, dealers. And talk about our new target to increase revenue, product development ect. At the end of july we will officially declare the new reduced price of pran juice.

August:We will have a meeting with our new dealer for out new target location, and will go for a short term contact within the august. Based on the performance of the new dealer we will appoint them for a long term contact. we will also set some offer to improve the distribution channel:Sales target gift:

We will give sales target to the distributors or the wholesalers, if they can matches our expectations we will great them with corporate gifts, also a very high percentage of commission as gift. We will provide rewards to the distributor like vacation voucher, expensive cell phones, watches, suits, corporate gift items, or vacation trip inside or outside Bangladesh.

Reward as best retailer:

We will choose ten best retailers among the cities. We will call a ceremonial meeting and will provide gifts like diary, notebook, banner, TV, ac, fridge or cell phones etc. September:We will go for a promotional camping from this month. We will estimate a budget of 10,000,000tk for next 4 month promotion. October-December: On those periods we will just observe the performance and give feed back to improve the performance of our distribution channel.

Sales Forecast:I am going to invest 10,000,000tk on promotional activities to increase the revenue. This cost could be break down into three parts among the three different volume of pran juice item.Cost allocation: 250ml 500ml1littleTotal

22tk40tk70

Fixed cost allocation16.7%30.3%53%

Total allocation 167000030300005300000

Break even253030325250002523809

Break even revenue55,666,666101,000,000176,666,630333,333,296

Break even for 250 ml pran drinks:

Profit/loss: historical data shows that profit is constant over last few periods. Our plane is to increase this profit by expanding the market. Because of the promotional cost we could incur loss or less profit in the last six months of 2013.But we can expect 20% more revenue each year for next 4 years from these promotional activities. average profit is 46,070,000tk per year. So in 2014,31st December we are expecting 20% more profit which is 55284,000.According to plane we are also expecting to have a higher profit margin because of producing in a large scale.

Review and Control:The success of our marketing plane depends on how accurately all our strategies work and how well we can motivate our distribution channel and customers. To implement our plane successfully we have to watch over our performance constantly.Contingency PlanPRAN anticipate pressure on price due to competitive activities and strong power. Its impact will be felt on profitabilitys and break-even volume. Even with a sufficient cushion at present, PRAN envisages tight cost controls consisting of lean organization, long term cost contract with orchard owners and efficient use of resource. It is also keeping sufficient Capital cushion use of resources. It is also keeping sufficient capital caution to manage the enhance working capital requirement due to delays in payment , and the need to keep a sufficient inventory. We all know that, todays fast moving world respect the new, innovative ideas. To keep the same pace with this situation our company had decided to launch a Juice and it has a bright future in its market. As the product is innovative, the consumers are goingproduct will be a strong product mix for our company.And once ourJuicewill reach to the hand of our targeted customers, we will be able to capture the most market shares.

References: http://www.pranfoods.net/http://en.wikipedia.org/wiki/PRAN-RFL_Grouphttp://www.gafspfund.org/content/pran-group-bangladeshhttp://www.amclpran.com/