Term Paper
On
“Marketing Plan of sugarcane Juice”
Course Title: Strategic Marketing
Course Code: MKT-410
Program: BBA
Submitted to:
Mr. Ashraf Harun
Lecturer, Department of Marketing
Bangladesh University of Business & Technology (BUBT).
Submitted By:
Group Name: Shadow Boyz
Name
ID
Intake
Md.Rasedul Islam
09102101247
21st
Md.Asaduzzaman
09102101266
21st
H.M Tariqul Islam
08093101110
19th
Md.Rakib-ul Hasan
chowdhury
08093101059
19th
A.A.M.Niaz Murshed
08091107113
17th
Bangladesh University of Business & Technology (BUBT).
Commerce College Road, Mirpur-02, Dhaka-1216.
Date of submission: 27.12.2012
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Letter of Transmittal
Date:27.12.2012
Mr. Ashraf Harun
Lecturer, Department of Marketing
Bangladesh University of Business & Technology (BUBT)
Subject: Submission of a Term paper on ‘’New product marketing plan”
Dear Sir,
Here is my Report on ‘’ ’New product marketing plan” that you have assigned me to
submit as a partial requirement for the course “Strategic Marketing MKT-(410)”. While
preparing this Report I have gone through internet, different books and class lecturer
sheets are the sources of relevant information of the assigned topic.
Though I have put my best yet it is very likely that the Report may have some mistakes &
that are unintentional. I hope that the Report will meet your expectation.
I shall be glad to answer any kind of question about any matter relating to this Report and
I shall be pleased to provide further clarification if necessary.
Yours Faithfully
.................................s
Md.Asaduzzaman
On behalf of the Group: Shadow Boyz
ID: 09102101266
Intake: 21st
Bangladesh University of Business & Technology (BUBT)
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Acknowledgment
All praises are due to Almighty Allah for giving me the strength and the composure the
task within the scheduled time to complete our “Term paper” with good and sound
health.
At this point we would like to acknowledge some of the people who have made a major
contribution to prepare the report. It will be great achievement for us that our honorable
teacher Ashraf Harun, Lecturer-Department of Marketing, School of Business
Administration, Bangladesh University of Business & Technology (BUBT) has given
necessary suggestions for preparing this Report.
Group: Shadow Boyz
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TABLE OF CONTENTS
S.N.
Subject
Page no.
05
01
Executive Summary
07
02
Situation analysis
03
Market Opportunity and Issues
04
Objectives
08
08
09
05
Marketing Strategy
06
Target Markets
07
Market Positioning
08
Marketing Mix
09
Break-even Analysis
22
10
SWOT Analysis
19
09
10
12
23
11
Review and Control
12
Conclusion
24
5
Executive Summary
This report explains the marketing plan for launching a Sugarcane Juice named “Husna
Sugar Juice”. This product has been made by the Husna Private Limited. It will be
introduced in the market with the help of various promotional displays, advertisement
and distribution of free samples to the general public and financial institution. This report
examines that this product is initially launching in Whole Bangladesh domestic market.
The study included both primary and secondary research. The primary study focused on a
survey of the competitors and the likings and disliking of people. Through this strategy
company can penetrate more into the market and can attract the bulk of customers. For
this purpose we have conducted SWOT analysis of the company to see the company’s
strengths, weaknesses, opportunities and threats. Then we have explained the purposes,
benefits and objectives of our product.
Then we have made marketing strategies for our product. We have divided market into
different segments and decided to target the male, female, youngster mature and old
age person. We have also paid special attention to the packaging, and price of
the product. We have decided to place the product in all the markets of Dhaka especially
in the canteens of colleges and universities and retail outlets. We will promote our
product through electronic media, print media, cable, and outdoor sources. We shall also
conduct a market survey in future to know the opinion of public about our product and
developed our product accordingly to our customers changing needs and demands.
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Situation analysis
2.1 Customers:
In summer people of all ages take soft drinks and juices to quench their thirst. So
Sugarcane juice in tetra pack is highly demanded by customers because it reduces the
thirst and it is useful for healthy life because it is hygienic and pure. So when it is highly
available at affordable price at everywhere customers will use Sugarcane juice than soft
drinks because it has no side effects and it is safe.
2.2 Competitors:
Direct Competitors
The direct competitors of our Product are:
•Pran
• Shezan
•Danish
But we are not competing our product with them because they are the competitors of the
Juice market and they are only providing the different flavor juices but not the
sugarcane juice.
Indirect competitors
As the Sugarcane juice is the symbol of the refreshment and nutrition and it is also a
substitute for the other soft drinks. So we have compared it with other soft drinks.
So in the soft drink market we have the competitors like
•Coca cola
•PEPSI
•And other Instant drinks
2.3 Company:
We are going to prepare marketing plan of Sugarcane juice in tetra pack because we are
going to established new business in Bangladesh, we made a budgeting plan for
our business.
We have a budget of tk. 1 cruor to establish our plan. Now we allocate different amount
in different parts.
2.3 Context:
The annual production of sugarcanes in Bangladesh is estimated to be about 1 million
tons. Due to rapid growth in organized retail and promotion of Bangladesh sugarcanes for
export, production is expected to grow at the rate of about 15% per year. However, it has
to be kept in the mind that due to variations in weather, the production of sugarcanes
fluctuates.
The rapid growth in income has led to an increase in the demand for food supplements
like sugarcanes.
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Market Opportunity and Issues
Our product is sugarcane juice in tetra pack packaging. Sugarcane juice is widely used in
summer season because it is good in taste and low in cost. Fresh sugar cane juice has no
preservatives, however its tendency to turn black from oxidation soon after pressing is
very high, so to secure from oxidation we should pack in tetra pack packaging. The sugar
cane juice has several health benefits and it is better to other soft drinks so people like
this.
Issue:
• Our main issue is about the perception of people about the sugarcane juice building
brand is very difficult due to perception because they will think that it is easily available
in fresh form then why we buy it in tetra pack.
•We must invest heavily on promotion of juice and also marketing plan will change time
to time because we are new in the market so we have to create awareness in customer
about our product and to attract them.
Objectives
1. Our objective is divided into different parts.
• First year objective is to capture 8% market share of juice industry with sales revenue
of minimum 20 million and net profit of 3 million.
• 2nd year objective is to obtain 18% market share with sales revenue of 40 million
rupees net profit of 7 million. And five year our market share will be 30 %.
2. Table: Sales Forecast
Year
2012
2013
2014
3.
4.
5.
6.
per cane
1200
1300
1000
Taka
87,600
108000
131,360
Continuous growth in sales
Increase the seasonal sale’s volume
Improve the company’s image
Delivering the good quality and taste to the consumers at a fair price
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Marketing Strategy
Brand strategy is at the heart of marketing strategy. It is the act of designing the company
offer and image so that it occupies a distinct and valued place in the target
customer mind.
Sugarcane juice is very beneficial for health and provides refreshment. As we are
launching sugar cane juice in tetra pack, so we want to create positive and long lasting
image in the minds of customers that we are providing hygienic juice because we are also
introducing new flavors like mint and ginger etc.
Core benefit means the services and benefits the customer is really buying. Our customer
fulfills its need of thrust and refreshment by buying our Sugarcane juice.
Our product will be in Husna packaging which will be attractive and eye catching.
Target Markets
•
Although our juice is for all ages and for all kinds of people. But the youth is our
main target. As this segment is maximum in number in population in Bangladesh
and it is more Fun loving and excitement seeking so it is our best target market.
After segmenting the total market and evaluating each of them we have decided to
market and enter into 6 divisional major cities of Bangladesh such as ,
– Dhaka,
– Chittagong,
– Khulna,
– Rajshahi,
– Sylhet and
– Barisal.
•
More or less we will cover the urban areas initially and then we can make our
products available to other towns and other rural areas.
•
As a new company with a new dimensional product, we will not cover the rural
areas at this particular stage.
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Market Positioning
 Creating a distinct and relevant differentiation between the brand and itsss
competitors
 Key words
 Distinct – being different
 Relevant – difference being important
As we are the new company in Bangladesh with a complete new idea and new product
our position in the consumer’s mind will be slightly difficult. According to the marketing
plan we will enter to the market with the position of niche marketing and after some years
will be able to capture the soft drinks market and lead the market. We all know that Pran
is the leading Juice manufacturer of Bangladesh, with a large product line at present. Our
goal is, within 5 years we will be able to targeted area. According to our projection we
will capture:
25% of the target market share within 2 years
50% of the target market share within 4 years
70% of the target market share within 5 years or more.
The Benefits Of Drinking Sugarcane Juice
1) Sugarcane juice is a great preventive and healing source for sore throat, cold and flu.
2) It has a low glycolic index which keeps the body healthy.
3) This is one sweet drink even the diabetic can enjoy without fear. It is because it has no
simple sugars.
4) Due to its alkaline nature, it helps to fight cancer. Studies indicate that it has positive
activity against prostate and breast cancer cells.
5) It hydrates the body quickly when exposed to prolong heat and physical activity.
6) They are excellent substitutes for aerated drinks and cola.
7) It refreshes and energizes the body instantly as it is rich in carbohydrates.
8) Sugarcane strengthens the stomach, kidneys, heart, eyes brain and sex organs.
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9) Febrile disorders which causes fever where there is a great amount of protein loss. But
liberal intake of sugarcane juice provides the body with necessary protein and other food
elements.
10) It keeps the urinary flow clear and helps the kidneys to perform their functions
smoothly.
11) It is valuable in during micturation due to high acidity, genorrhoea, enlarged prostate,
cyctitis and nepthritis. For better results, it should be mixed with lime juice, ginger juice
and coconut water.
12) It can hasten recovery from jaundice.These are some of the benefits of drinking
sugarcane juice.
The rest can be listed by readers after they have had their share of this wonderful, sweet
drink.
*It helps muscles to be strong
*Gives Complete energy
*It heals sore throat
*Sugarcane as glucose content in it
* Sugarcane prevent people from breast cancer
Recruitment of Sales Force
To recruit distributors, executives, sales officers, sales representatives etc, it
is supposed to be the main task for any new company, when they go for
launching any new products. Such is the case for our Company. To make the
free flow of our product distribution, such effective human resource
personalities are very much required.
So, being the sole distributor, it is one of the main tasks to employ and monitor the
human resource team. As, we target the market only the 6 major cities; it requires agents
and sub agents to properly market our products. To reach the final consumers or the
buyers of herbal Juice, such agents and sub agents are very much needed.
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Being the distributor, it requires 6 agents or wholesaler for the 6 major cities. Operations
of the 6 major cities are distributed among the agents, as the monitor the operation and
take correctives actions. Under the agents, 15-20 sub agents are the given the task to
distribute the products to the different retailers, who are located at different location in
the cities. Through proper distribution channels and effective employees, such plan can
be implemented properly.
Marketing Mix
Product:
Products that include deign, features and packaging that go beyond consumer
expectations and differentiate the product from competitors.
Our juice taste and flavor is according to the customer expectations because we
provide100% pure juice. We have no compromise with quality.
The design of sugarcane juice that it will be in attractive and stylish tetra pack in
following size,
•250ml
•500ml
•1000ml
Price:
The price of the product can also influence the buying behavior of the consumers because
in Bangladesh there are different level of classes based on the income difference so price
is the one of the important factor, some of the consumer can afford the price and others
can’t, so we must set the price of the product that is afforded by all the social classes
of the region.
So we use penetration pricing strategy.
•250ml- 20Tk
•500ml- 40Tk
•1000ml- 80Tk
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Place:
The place of the distribution and availability of the product also influence the
buying behavior because if the product is in reach of the consumer he will prefer it and if
it is hard to find the product in the market he will never buy that product. So we provided
our product to all the all the distributors and they will provided it to famous retailers
of Dhaka, Chittagong and Rajshahi. Because of this our product will be available at more
shops and our sales will increase.
Promotion:
The promotion of the product i.e. the advertisement, sales promotion and
other promotional tools can change the buying behavior because some of the individuals
highly influenced by the advertisement of the product.
Advertisement:
o Newspaper Advertisement: To make “Herbal Juice” introduce to the general public,
consumers or to the diabetics patients who are trying to lower their sugar level but are
not able to do so, the best possible way is to advertise through newspaper, as the
coverage of newspaper is well distributed. Since, we are marketing our product in the
major cities at the initial stage; we give advertisement in the major national or
regional dailies. The advertisement will give the message about the benefits of
drinking herbal juice and to make the advertisement attractive we emphasize basically
on green color as it signifies youth and environment friendly. Through the
advertisements we want to signify that drinking herbal juice makes our life healthy,
wealthy and wise.
o Television:
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After giving advertisements in the national dailies, we can now give visual
advertisements on the Televisions. In the commercials we can again demonstrate the
benefits of Herbal Juices. When compared to the newspaper advertisement, TV ads are
more effective and attractive since people can see and visualize the demonstrating, they
can be easily motivated to consume and try the products. Therefore TV advertisements
are seen as one of the best possible Medias to promote products such as Herbal Juices.
o Billboards, Neon Signs, Large TV Screens: In the modern concept of advertisement
we see that businesses now days use the high technology equipped billboards, neon
signs, large TV Screens, posturing, banners, etc. so that the moving people can easily
be attracted to the advertisements that are displayed along the road sides and high rise
buildings. So taking the concept of such modern ideas, we try to introduce our
product “Herbal Juices” to the mass people, in such manner.
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o Car and Vehicle Advertisements:
People of the cities now days are quite familiar with the Car and Vehicle advertisement.
We will use this media to advertise our product. For example: we will make a contact
with some taxi Cab company and BRTC to present some highlighted message on the
body of the vehicles , so that the people can easily be attracted to our Herbal Juices.
o Mobile team/ Mobile meeting: As part of personal selling we will train and send
some team to the public places like colleges and university campuses, markets, rail
and bus station and others common places so that they can explain about the product
to the mass people and encourage them to take our product. They will give some free
samples to the people to justify the quality and effectiveness of the product.
o Awareness Messages: Besides of telecasting our formal advertisement on the
television, we will telecast some awareness message about the harms of using
preservative and arsenic and benefit of using our product. For this part we will use
some familiar and attractive people to give the messages like popular actors-actress,
players, doctors, singers and models.
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Channels of Distribution
To market our products to the targeted customers, we will follow the level 3 of consumer
marketing channel. Our channel will be like follows:
Manufacturer
Wholesaler
Jobber
Retailers
Consumers
 Manufacturer:
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Actually this Sugarcane Juice is not produced in Bangladesh. We took the initiative to
manufacture it. So we are the manufacturer here.
 Wholesaler: We will have six authorized wholesaler, as the agents in the six
divisional cities to where we will offer our products. These wholesalers will represent
our products with the help of different retailer and also advertise, store, distribute and
do other promotional activities as well.
 Jobber: Under the six authorized wholesalers, we will have around 15-20 jobbers to
each divisional wholesaler, who will act as the sub- agents of the wholesaler and
influence the market and retailers to use and present the product. These jobbers will
be appointed on commission basis.
 Retailers:
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Our retailers will actually offer our products to the actual and potential customers. They
will collect the Juice packs from the wholesaler and market them frequently. In each an
every public places like market, rail and bus station and river ports and air ports, besides
colleges, university campuses and near the commercial areas, we will have retailer shop
and outlets so that the can easily collect our product and use it. By this way we will reach
to the customers.
 Consumers:
At the final level of the process come the consumers who will consume Sugarcane Juices.
They are the target customers for our company and reaching them, should be our main
goal in order to market our products. They will give the final and overall performance of
our product and according to their demands the company must set their objectives and
strategies.
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SWOT Analysis
Strength:
First mover Advantage:
We have introduced sugarcane juice in Husna pack for the first time. So it is helpful for
us to have more customer at the than other new competitors because the time the take to
enter the market the customer will become loyal to our product.
Quality Conscious:
Orchid produce a good quality products. It can not compromise on quality.
Less no of taste:
We have introduced the first time that there is not any sugarcane juice in Husna
pack available in market.
 Everyone can drink this Herbal Juice.
 No side effect of our product.
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Weaknesses:
Storage ability
Husna juices not store able for long time.
Loyalty:
Consumers are brand loyal toward competitor’s product so we have to convince them.
Because there are already competitors who are dealing in juices and beverages, so it is
difficult to shift them from other juices.
 Supply may not be proportional to demand due to many reasons like political
unrest, scarcity of resource etc.
 Excessive consumption may result health hazard. As excess of any consumption
and taking will likely to affect the health.
Opportunities:
New flavor:
We can introduce flavored sugarcane juices. E.g., mint and ginger flavor etc.
Export:
We can export our product to foreign country in order to earn more profit.
Support foreign investors
Government support foreign investors to invest in Bangladesh.
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 Health & Environment ministry approved.
 Bangladesh Standard Testing Institute (BSTI) certified.
Threats:
Government Regulation
They face problem if government employ taxes on them which force them to raise
the price of their product.
Increase in competition
There is large competition in juices market
Entry barrier
There are no many entry barriers so a large numbers of local juices enter in juices market
 Some people can make fake sugarcane Juices, and can sell it to the market and if
people drink that they can a get a serious type of disease.
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Break-even Analysis
Sales Forecast & Break-even Analysis
YEAR
2012
Sales
(Per
cane)
1000
Taka
1. Revenue/cane
Tk.75
2. Variable cost/cane
(Tk.65)
3. Fixed cost
Tk.25000
Break-even
87,600
Volume(4/3)=(Tk25000/Tk.75)
2013
1200
108000
2014
1300
131,360
Figure: Sales forecast
=2500 cane
Figure: Break-even Analysis
sale ravenue 87000
sale ravenue
variable cost 45000
25000
BEP
Fixed cost 25000
unit (per cane tk75)
2500
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Review and Control
We will have simple, decision friendly, monthly, quarterly, and annual reports focusing
on




Revenue and sales
Expenses
Customer feedback
Market log (self and competitive major activities).
Control is mainly concerned about monitoring the performances and taking corrective
action to the respective task, if needed. This control process is said to be very vital
task for preparing any sort of planning. As we are preparing a marketing plan for
launching our product so we have to also take an effective Control plan. We will
follow Budgetary Control to implement our marketing plan. That means for each
every sector like Advertisement, Distribution, Sales, Position in the market and
Earning Profit we have some specific standard and we will compare it with the actual
performance. Our controlling strategy will be like that, if the actual work meet the
standard we will accept it and any department fail to obtain the desire standard we
will punish them according to the rules of the organization. On the other hand if any
department fulfill the target and exit the standard limit, we will reward them
providing financial benefit as part of motivating factor. For example: about market
positioning our target is to capture the 50 percent of the market share gradually within
5 years (15 percent within 1 years, 30 percent within 3 years and 50 percent within 5
years and more). After 2 years we will evaluate the actual performance with our
standard and take action. On the other hand we will have some target about
advertising like, in which media we will use for add and how they will be effective to
increase our sales volume. If the performance is ok then we will remain in the same
strategy, but if it does not work properly we will quit the media and chose another
effective one. Finally it can be said that our control unit will work to monitor and
evaluate the performances and taking actions against the department, if they find any
department that is not functioning properly or any sector which is not giving adequate
profits to the company.
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Conclusion
To reach our goal, we have taken lots of plan which we have mentioned in our Marketing
Plan Report. We will have a control team to monitor, evaluate and recognize the actual
performance. Through these activities if they are properly implemented, we hope we can
achieve our goals. In our Term paper we have already discussed everything about
sugarcane juice. If we do all these things then the launch of sugarcane juice in our
country will be a success. The initial plant capacity is for processing 30 tons of sugarcane
per month and other products, on a full capacity basis. However, the capacity utilization
is expected to be 70%, 80%, and 100% in the first, second, and third year respectively.
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