Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
On
Marketing Plan of
Chips
Prepared for
Prepared by
Group Name: Radiant
Sl.no
Name
Id
01
Rubina Akhter
1007017
02
Md.Akramul Kabir
1007020
03
Saima Ahmed
1007032
04
05
Marzan Akhter
1007052
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Letter of Transmittal
January 12, 2016
Md. Abdullah al Jamil
Assistant professor
Department of Marketing
Comilla University
Subject: Submission of term paper
Dear Sir,
We are submitting an assignment titled for New product Marketing plan as a part
of the requirement of the course. Your guideline has been followed in every aspect
of preparing this assignment. We have really enjoyed working on this project and
we hope that our work would meet the level of your expectation. Any query on this
assignment is appreciated.
Thank You.
Sincerely,
-------------------------------------RADIANT GROUP
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ACKNOWLEDGEMENT
Thank you our course instructor Abdullah Al Jamil give us topic Marketing plan
of one products and start us to research this topic and assure us that he will help us.
Then we start this research and observe many unknown and sensitive subject. We
are very glad that in spite of many limitations we have completed the Term Paper
successfully. At the time of preparing this Term Paper, we received cordial and
sincere assistance from many concerns. First of all we want to thank the
immeasurable grace and profound kindness of Almighty Allah, the supreme
authority of the universe. Then we would like to thank to assign this type of work
and lots of cordiality to all our group members for their kind consideration
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Table of contents
Serial
Topic
Page number
Executive summary
06
Situation Analysis
07-09
10-12
Objectives
Marketing Strategy
12-13
Target Markets
14-15
Positioning
15-16
Marketing mix
16-19
Marketing Research
19
Financial Projections
19-21
10
21-23
11
Marketing Organization
23
12
Contingency Planning
24
Conclusion
24
12
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Executive Summary
Friendz Limited started its first commercial production in Bangladesh. Friendz Limited vision
is to be recognized as the most successful food and drink company in Bangladesh, generating
sustainable, profitable growth and continuously improving results to the benefit of shareholders
and employees. The company will continue to grow through our policy of constant innovation
and renovation, concentrating on our core competencies and our commitment to high quality,
with the aim of providing the best quality food to the people of Bangladesh. The company wants
to launch a new type of chips in the market. It is totally different from the traditional chips
named PK chips. It is a high quality carrots chips which can be harmless. In that product, there
have some special ingredients which provide nutrition. So definitely, that product will be an
exclusive product in the market. The target market of that product will be those who think that
chips are harmful for health; those who have digesting problems; and the current users of the
chips. Our chips will provide some exceptional tastes which will provide great pleasure. The
chips will be sugarless so it will not be harmful for teeth. There will no chemical color in this
chip. This is mainly a natural product which has no bad side effect. After analyzing the market
demand we have seen that there is a demanding the market for this kind of product. And after
SWOT analysis we have seen that the company has a great opportunity to enter in this business.
Otherwise, there are a few risk involved this business. The product will be a very new product
and there is chance of rejection by the market. The competition will also high. And if we
succeed any large company can easily enter this market. Considering all the possible. After
estimating the cost and sales we can say that it will be profitable. Plan analysis the current
situation, followed by different opportunities and threats, then marketing and financial
objectives, after that marketing strategy, subsequently action programs, afterwards it also
discusses the budget, and finally the conclusion. The cost of the product (each) would be
varying on packets, and the price would be 10 taka. Targeted markets are separated into two
segments such as children, youngest. PK Chips is providing chips with very testy and healthy
including carrot nutrition.
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1. Situation Analysis
There are many companies in chips market. Our various products in this market are Ring chips,
Potato chips, milk products, chocolate and confectionery, ice-cream, mineral water, soft drinks
etc.. In the chips market we have 15 percent share. Now we want to expand our market share
through satisfying our customer by their desired another product Carrot Chips. Therefore we are
going to launch a carrot chips named PK CHIPS.
1.1 Customers:
Bangladesh is an over populated country. It has a large amount of population. And many of them
are fond of chips. So there is vast market for the chips industry. But some people are disinterested
about the chips. So the people have also some negative ideas about the product.
1.2 Competitors:
The chips industry in Bangladesh is not small. There are a lot of chips producers. Some of them
are national and some of them are local suppliers. Some companies also export their chips. In our
country many foreign brands are also available. They are comparatively costly also. So the
consumers taste and demand are changing from low quality chips to high quality chips. Now the
chips industry of Bangladesh is very competitive. The major competitors of chips, brands name
are
Pran
Meridian chips
Bombay chips
1.3 Company:
Friendz Ltd is food & Beverages Company in terms of sales as well as product range and
geographical presence. Friendz Ltd covers nearly every field of nutrition: milk products, chocolate
and confectionery, ice-cream, mineral water, soft drinks etc. Friendz Ltd, started its commercial
production in 2005 and currently employs 300 people directly in the company and another 500
people indirectly in the industry. Today Friendz Limited is good positioned to grow through
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its policy of constant innovation and renovation, concentrating on its core competencies and
commitment to high quality, with the aim of providing the best quality food to the people of
Bangladesh. The company now wants to launch new chips in the market. This chips is totally
different from other traditional chips. Its quality will be very high and which will be harmless. In
that product, there will have some special ingredients which will provide nutrition and which will
be work as digester.
1.4 Context:
Friendz limited entered into the market 2005 in Bangladesh. There has a demand of chips product.
At present, a lot of chips are available in the market and there is an idea in the market that chips
are very harmful for the teeth. So a lot of conscious people do not take chocolate or chips and
many parents do not feel comfort to give this to their children. So people have a latent demand of
harmless chips.
Friendz Limited wants to launch chips with high quality and which will be harmless. Bangladesh
has a lot of resources. Even then many items of the chips especially chemical ingredients have to
be imported from abroad. So the supply of raw materials from local sources is very important in
producing the chips and the suppliers of raw materials are available in Bangladesh & suppliers
who offer them at the best prices, the providers of utilities-power, gas & water etc. and the
customers who buy their products & services by redeeming their claim intimae by making prompt
payment and by distributing proper product on due dates.
1.5 The Market:
Our main vision is to making satisfy the customer and run profitably. Based on our R&D
department we have identified that our new product is in good demand. Most health conscious
people are liking to consume this product as this is ease to consume and time and cost effective.
1:6 Market Needs
Our Research and development department found that people preferring the new taste because they
has need of nutrition because it is good for health, and as they can consume the product easily
majority of people would like to have this product. And in south Asia region and Bangladeshi are
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mostly affected by various types of diseases so in that case we provide our product as a solution
of nutrition. Therefore customers can easily consume based on their desired need.
1.7 Economy:
Bangladesh is a developing country. Though the economic condition of this country is not so good,
The economy is turning from agricultural sector to and industry sectors. So the future of any
industry like chips in this country is very bright.
1.8 Government:
The govt. is also attentive about the industry sector and encourages and helps to establish new
Businesses.
1.9 Legal :
The govt. regulations or the legal condition of Bangladesh is also not a big obstacle at starting new
business or to launch new product. But in terms of introducing new consumer product, a company
must obtain the approval of BSTI (Bangladesh Standard & Testing Institute). So to launch a new
chips the company must obtain BSTI approval.
1.10 Technology:
The technological environment of Bangladesh is not developed. So, new and advanced technology
and machinery have to be imported from the abroad to produce qualified chips.
1.11 Socio-cultural:
From the socio-cultural point of view, there is no barrier for chips. The chips have a good
acceptance in Bangladesh. But many people are aware about its bad effect. They know that chips
are harmful for health and there is a strong idea about this in mind of the people.
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Strengths
1. Expert and experienced management.
2. High quality product offering.
3. Less price than competitors.
4. Best quality and services.
5. Maintain strong delivery schedule.
6. Company has strong manpower.
7. Customer loyalty of the company.
8. Use of modern technology & Public Relations.
9. Financial stability.
10. Product has the brand personality.
11. Vast Market.
12. Unique product features like flavor, packaging, tests, hygienic etc.
Weaknesses:
1. PK Carrot Chips is kind of a new product line of the company.
2. As it is a new flavor product, it will be difficult to manage customers for the company.
3. Lack of proper knowledge about the market and the demand because its never
surveyed before.
Opportunities:
1. There is a demand for this kind of product.
2. Good and initiative employees.
3. Mature retail market in Bangladesh.
4. Developed communication channel.
5. Company has a lot of proper channels to deliver the product.
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Threats:
1. The present chips manufacturers are also strong competitors.
2. As it is a new product, there is a chance of rejection by the market.
3. It may fail to fulfill the expectations of the customers.
4. High cost of the raw materials.
5. Political environment of the country.
6. Lack of brand awareness.
7. Compressed product life cycle.
8. Foreign chips company.
New idea- PK Carrot Chips concept is first in Bangladesh in the Snacks industry.
Different experience & knowledge- The customers will have the distinctive feelings &
experiences that they will not get although other chips exists in market.
Strong distribution channel- As this product has strong channel distribution channel, the
consumer get it at every retail shop.
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3. Objectives
3.1 Marketing objectives
Generate brand equity in the market so that in future no company can take the market by
producing same product.
Our sales objective is 1000000 packet chips for the first six months.
4. Marketing strategy
The greatest objective is to establish our existing brand in the industry. The marketing strategy
will seek to first create customer awareness regarding the product and establishing connections
with targeted markets and work toward building customer loyalty and referrals.
The major marketing strategies arePage | 12
Cross selling.
Mass distribution.
We decides to market Carrot Chips all over the country especially in the urban and sub urban areas.
Customers will be communicated through advertisements such as leaflets, quality posters, Kiosks,
newspaper ads, internet and other media ads & later on radio & TV ads.
4.1 Mission: To provide customer highest quality canned chips and attract current customers of
the present chips. Generate brand equity in the market so that in future no company can take
the market by producing same product.
4.2 Marketing Objectives: Running these product there are a lot of possibility in marketing and
financial gain. It will help the company to increase total sales volume. So our main objective
is to satisfy our customer and do maximization of profit. At the same time it will enable the
company to capture greater market share.
4.3 Financial objectives: The product will have three types of packets. The sizes of the packets
are small, medium and large.
Four main factors will help us decide what to charge for our product or service:
1) Our fixed and variable costs;
2) The profit we want to make;
3) Our market research data on competitors prices;
4) To reach the breakeven point within 15 months.
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5 .Target Markets:
Our main target market people are the young ages people who like to eat chips 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. Also our focus goes to all types of peoples of the country and the current user of the
chips.
Demographic:
1. Our target customer age range will be 4 years to 30 years.
2. Family size
3. Generation
Psychographic:
1. Social Class (Middle class, upper class, and middle upper class).
2. The Conscious people.
3. The lower middle class, middle class, and upper middle class.
Behavioral:
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6. Positioning
Market positioning requires the determination of a frame of reference- by identifying the target
market and the nature of the competition and the ideal points-of-parity and points-of- difference
brand association. We will always try to position our product through
Image differentiation
Superior Communicable
Product differentiation.
We will use logo and short advertisements 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. Friendz Ltd. will use USP (Unique Selling Proposition) for
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
Page | 15
To capture the customer user easily Friendz Ltd. will also develop some positioning strategy to
position PK Carrot chips. There are some requirements how Friendz Ltd. capture the customer
value. These are given below:
i) By proper offerings.
ii) To show the interest of the product.
iii) By preemptive and then other competitors can`t copy this product and its services.
iv) By creating product superior valve.
v) By advertising
vi) To know about the customary satisfaction.
vii) To ensure the better quality.
viii) Ensuring that its 100% Harmless chips
ix) By offering chips with affordable price
7. Marketing Mix
Our marketing mix for the new product PK Chips is as follows:
7.1 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 chips. They will be able to differentiate our product in quality which is unique
in the chips market. They will not be able to feel the same way for the other chips in the market.
Generally different size of chips packet will be produced for customer. These are small, medium
and big size.
7.2 Price:
Price is the amount of money customer wish to pay to obtain the product. Necessary
strategies pertain to the locations of customer price flexibility related item within a product line
Page | 16
and terms of ale. Here, they can set maximum Tk.10 for small and TK.15 for medium and TK 20
large packet. Pricing policy for its product due to the following reasons:
Distinctive Packaging
Brand Name
Cost of raw materials
Discounts, allowances and payment period will be reasonable for customers.
7.3 Place:
By using the present distribution channel Friendz Ltd can easily market this new product PK
Chips. The company has many consumer products. The company can use its present marketing
channel to make the products available all over the country. We also can make some new
channels and assign some distributors to promote this new product. Friendz Ltd. can also use its
current delivery vehicles to deliver the new product PK Chips product to the wholesalers. The
company can use its local offices to deliver to the retailers. So at introduction stage, companys
current marketing channel is enough to deliver the products to wholesalers and retailers. We can
use mobile shop in the shopping malls, offices and crowded areas so that people can purchase the
product easily when they like to consume.
7.4 Promotion:
It plays an important role in the exchange process by informing customers of an
Organizations product or service and convincing them of its ability to satisfy their needs or wants.
We will use the following promotional mix:
o Advertising
o Personal selling
o Direct marketing
o Sales promotion
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Friendz Ltd will take a large promotional program for this product. The company will keep a
handsome amount for the promotional activities of the product. As it is a new Product more
promotion is needed to build up the product awareness.Friendz Ltd. will use ads through TV,
Radio, and Newspaper, Internet, Information, Home Delivery, Bill Board, Ticket Advertises,
Concert Programs, Power point Information, Banner, Festoon, Placard, Joining Fair to aware
people about this chip. The company will take the strategy to create awareness about the bad effects
of the traditional chips. Then the company will present its chips to the market as harmless to
children and students as well as young, old and all age people.
7.4.1 Advertisement:
In the newspaper advertising, the company will know or inform the people about the bad effect of
the traditional chips and inform about the good sides of the Apple chips. In their TV commercial
they will also try to build awareness in the minds of the customers and try to acquire a strong
position in the minds of the customers. In the electronic medias advertising the company can
present famous and renowned doctors to inform people about the difference
between traditional chips and Carrot chips.
7.4.2Public Relation:
The company will take a mass public relation program. Nestl Bangladesh Ltd will have to
take this kind of promotional activities such as stall booking in many trade fair, child fair etc.
to create a positive image about the brand.
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7.4.4 Others:
They will develop some cartoons which will be used on the T-shirts, bill boards, neon boards, and
in some ads to attract the children and young people. The company also uses this brands logo,
picture, symbol etc. on many toys, dolls and on many other things to know and attract the target
market.
8. Marketing Research
During the initial phase of the marketing plan development, several focus groups were held to gain
insight into prospective customers. These focus groups provided helpful insight into the decision
making processes. An additional source of dynamic market research is a feedback mechanism
based on a suggestion system. In the suggestion system customers are asked to rate in terms of a
given scale. There are also several open ended questions that allow the customer to freely offer
constructive criticism or praise. Friendz Ltd will work hard to implement reasonable suggestions
in order to improve their products offerings, as well as show its commitment to the customer that
their suggestions are valued. The last source of market research is competitive analysis. Friendz
Ltd will send people to local competitors to gain information about their product offerings and also
its competitors product offerings.
9. Financial Projections
This section will offer a financial overview of pk
have addressed all expenses forecasts with fixed costs and variable costs and with first six months
estimated costs, sales forecasts with the first six months estimated sales, break-even analysis, and the
possible profit after six months in this section.
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Expenses Forecast:
Fixed cost
Tk.13,00,000
Raw materials
Tk. 12,00,000
Rent
Tk. 1,60,000
Tk. 15,00,000
Packaging
Tk. 2,00,000
Promotional Expenses
Tk. 7,00,000
Distribution
Tk. 1,50,000
Commission
Tk. 10,00,000
Operational Expenses
Tk. 1,70,000
Administrative Expenses
Tk. 2,50,000
Insurance
Tk. 15,000
Interest
Tk. 50,000
Miscellaneous Expenses
Tk. 1,00,000
Total
Tk. 67,95,000
Sales Forecast
There will not be enough sales in first month. In the second month the sales will be increasing at
a satisfactory rate. From the third month the increasing rate of sales will be very high. That means
from month three there will be a steady increase in production and sales.
Our sales forecast is 1000000 packet chips for the first six months. On an average per piece of
chips will be sold for Tk.10.
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Sales
800000
600000
400000
200000
180000
540000
360000
720000
900000
1080000
0
1
Consecutive Month
Break-even Analysis
BEV= Fixed cost / (Price- Variable cost)
100000
10-5
=200000 units
So, breakeven point can be achieved within 6 months.
the corrective actions if necessary. The company always has to maintain the TQM (Total Quality
Management).
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experience we the product will have a tin number by doing sms (short text message) the consumer
can meet the sport celebrity. This experience will attract our potential customers.
November:
Observing the situations, at this stage we will produce large packet for the couple. And this month
our product will be available in almost every shop within the country.
December:
Observing and analyzing we take necessary actions to develop product sales and increase our
profit. We can easily understand the marketing position of our product. If we learn that our
condition is suitable then we will make divisional dealers to distribute to the whole country. Side
by side we take control over it in necessary. In this way we will continue our production and give
a particular image to the mind of every customer.
CEO
DIRECTOR
Chief marketing
Chief HR
GM Product &
Service
GM HR Operation
GM Sales &
Distribution
GM HR Training
Chief Finance
GM Finance &
Accounts
GM Corporate
Chief IT
GM IT &
Planning
GM IT &
Operation
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Conclusion
We all know that, todays fast moving world respect the new, innovative ideas. To keep the same
pace with this situation Friendz Ltd. Company had decided to launch a chips and it has a bright
future in its market. As the product is innovative, the consumers are going to appreciate it. And
according to the R&D (Research and Development) department this product will be a strong
product mix for our company. And once our Friendz Ltd. will reach to the hand of our targeted
customers we will be able to capture the most market share Friendz Ltd. Company solves its
weakness and overcomes its threats. Also Friendz Ltd. Ltd Company adds exclusive taste in chips
and our product has some exclusive characteristics that will help us to acquire position in the minds
of the customers. This Carrot Chips contain such advantage or features that will achieve its
customer satisfaction.
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