Marketing Plan for Ispahani Chips

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Executive Summery
M.M. Ispahani Ltd. has been operating its business in Bangladesh for a long time with an
admirable reputation. The area of business operation of the group is large as well as varied
which comprises ten separate companies ranging from tea to poultry.

With intent to provide high quality food products in competitive price,Ispahani Food was
added to the company line of this conglomerate. Ispahani food launched Marshal Chips in the
year of 2000 considering the rapid popularity of fast food items.

Chips are popular snacks item in our country now a days. Within a short time this product has
ensured its position both in urban and rural area. The market size is fairly large and it is
expanding day by day.

Ispahani Chips started its journey with four varieties in its product category namely Prawn,
Vegetable, Chicken, and Potato. As time being the product was changed and modified
significantly to maximize the customer satisfaction. In 2003, there were three varieties in the
market (vegetable snacks potato cracker, and prawn). Though the initial response was good,
Marshal Chips could not maintain its image over the time and failed to create repeat
customer. There might be various reasons which caused the product failure to fulfill the
expectation. The reason may be problems in product positioning or it may be frequent
changes in name and flavor, or there might be lacking in strategies. But this is for sure that
there was some lacking in strategic planning in the initial level. Ispahani aired its TV
commercials after three month of product launching. It caused serious damaged in product
positioning. Consumer was not aware of this product at the time it was launched. So the
product was not sold. Then again when Ispahani went on advertise, it was very insufficient to
catch the attention of the viewers. All these things resulted in a failure of a prospective
product.

Inthis circumstance, in our marketing plan we are thinking of launching new five brands. We
have analyzed the consumers, competitors and the company’s current conditions and
compared it with the competitors in this marketing plan. There we have mentioned about our
objectives and how we can achieve these objectives.In this marketing plan we have followeda
strategy that is a combination of differentiation and mass marketing strategies.We have also

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mentioned here that who are our customers and by which we can satisfy their needs and
wants of chips. For this, reason we have created price segmentation of different brands.

Situation analysis
Target Market

Our target market in Bangladesh:

Chips are a kind of mouthwatering food. This food was introduced for the first time in our
country in the decade of eighty’s. Initially the market was very small. But in course of time
the size of the market has been expanded at a significant rate. Now there is a widespread
market of chips in Bangladesh. The demand is so high that despite of the existence of a
number of local manufacturers, chips are also coming from other countries. Though the
common belief is that chips is a child food but the reality is people of all age have chips
frequently. Chips can be easily found in the luxurious shopping mall in the city as well as in
the grocery shop in a remote village of the country. So it’s a huge market of chips in
Bangladesh.

From upper class to lower class, people of all strata of the society have demand for this food.
In general, people of middle class to upper class are the major consumer of this product.
Though now a day’s lower income group of the society, even a rickshaw puller or day labor
also buys chips either for themselves or for their wards. A major portion of Kids under
10years of age want chips because of the inside gift item they receive with the chips pack.
Sometimes they take the purchase decision but most of the times decision is taken by their
guardians. But their brand preference play role here.

We have consulted with 50 people of different ages to identify the presentence of different
age’s consumers of chips.

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 Respondent’s Frequency Percent (%) Cumulative Percent
Age

Below 10 6 16 16

10 to 20 22 44 60

21 to 30 18 36 96

Above 30 2 4 100.0

Total 50 100.0

Age group of consumer of chips

Geographic:

 For the urban and sub urban and rural areas citizen of all over the country.

 Especially for the convenient transportation areas.

Demographic:

 Children generally under teen-age.

 Young generation generally under age range 13-25.

 Educated people and conscious parents.

Psychographic:

 The lower middle class, middle class, and upper middle class.

 The conscious people.

Behavioral Factor

 Those who have negative idea about the traditional chips.

 Those who seek good quality.

 The non-users and regular users of the chips.

 Those who are aware about the bad effect of the traditional chips

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Market Needs
Ispahani is providing the food community with a wide range of food for all variations of food.
The company seeks to fulfill the following benefits that are important to its customers:

 Quality product: The customers work hard for their money and do not
enjoy spending it on bad test or bad quality product.

 Well-thought-outtest: The market has filled with different kind of

cheaps with different test. So we make 5 new and testy test product.

 Customer service: New concept for the food industry. We want to receive
customer feedback and opinion for our next product.

Market Trends
According to my market survey, the market has a demand of this kind of product. At present,
a lot of chips are available in the market. And there are some kinds of Vitamin-C tablet and a
very few breath refreshing tablets are available in the market. But there is an idea in the
market that chips are very harmful for the teeth. Therefore, many 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.

Market Growth
Ispahani has entered the chips business in a bid to secure a slice of about Tk 300 crore
markets, driven by the young generation's consumption.Industry insiders said the chips
market has grown in Bangladesh, on the back of consumption mainly by children, teenagers.
The 'Potato Crackers' brand of Bombay Sweets led the market followed by Lays and
Meridian Chips, an Indian brand.

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Customers
Chips is an all age product

Chips are generally taken for granted that chips are a kind of kid’s food. But it is found that
people of all age enjoy chips and a large market segment for chips lies on the age group of 10
to 20. To the college and varsity students, this product has huge popularity.

Difference in child market and adult market of chips:

There is a significant difference in the preference of the child and adult for the same product,
chips. Children love most gift item along with the chips packet. In most of the cases they are
not bothered about the food value of chips. And though in some of the cases purchase
decision is made by the guardian, they are highly influenced by their kid’s preference. On the
other side, adult customer is very conscious about the product quality, food value and such
things. Therefore, before launching marketing promotional scheme, that commercial, poster,
sticker, leaflet, or gift item it must be cleared out to whom it is going to be positioned. To
position in the children’s mind maximum focus should be given on attractive gift item and
TV commercial. Here we do not need to be bothered that much about the product quality. But
to position the product in the adult market, ensuring quality is a must. For example, we can
name meridian chips, the second market leader brand in Bangladesh. They have targeted the
child market. All of their gift items and commercials have been offered accordingly. But
regarding quality they are far behind than that of the Bombay Sweets which has targeted the
all age customer.

Consumer’s perception:

Regarding the previous brand of the snack item consumer in most of the cases was not
familiar that much with the brand. So there is no question about brand loyalty because even
the brand familiarity was not created as per it is expected for a brand to hold a substantial
market share. So the company must launch and continue TV commercials over the period.

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Competitors
Ispahani Chips has some hard competitors. After some days of launching Ispahani Chips, it
was in the leading stage of this market. But now its position in the market is very bad. Te
main competitors of Ispahani Chips are Bombay Sweets, Meridian, Ruchi, Sun, Pringles, and
Lays.

Among these brands Bombay sweets have 4 different TV commercials for their four separate
brands. Meridian has different commercials for its brands of different flavor. Ruchi also has
different TV commercials for its different brands. Ruchi and Bombay sweets Potato Crackers
have been more visible in the Bangladeshi TV channel in recent days. Besides these,
commercials of Lays and Sun are frequently aired in the satellite TV channel.

Other than this Meridian was less visible in the electronic media for the recent days. But they
have done some exceptional marketing promotion which is posturing. They used colorful
poster in all over the country including railway station, bus terminal, and roadside wall to
publicize their latest offerings. Ruchi arranged an open air concert recently in Dhanmondi,
Dhaka. Observing these activities we can infer that competitors are thinking of going beyond
of the electronics media. Because, they have already used some publicizing media like these
which are unusual for this kind of product.

Ispahani has been continuously conducting studies and research time to time on this product
aiming to reveal the competitive position of the product. In 2001, Ispahani conducted a Post
Launch Monitor (PLM) survey and product test by a chartered firm (ORG-MARG QUEST
LIMITED). The study was carried out over 500 children aged between 6 to 15 years in urban
area of Dhaka and Chittagong. The study found that from the point of view of awareness and
usage Bombay Sweets Potato Crackers were highest among the respondents. Ispahani
Marshal Chips was in fifth position.

The other Brands standing from second to fourth position were respectively Meridian, Sun
Realpotato, Lays.

Another research titled “Internship Report on Overall Market Position of Ispahani Marshal
Chips” was done to know the comparative market position of Ispahani Marshal Chips. It was
found from the research that Bombay and Meridian was the market leader in terms of

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bestselling brand. These two brands are also ahead of Marshal Chips in terms of consumer’s
brand preference.

Another research conducted recently taking sample size of three thousand retail outlet in
Dhaka city, surveying the retailer and consumer revealed that Marshal Chips stands fourth
position in the market behind the brand of Bombay, Meridian, and Ruchi.

Bombay sweets are the undoubted market leader of this product. They got the advantage of
being first mover. They pioneered chips in Bangladesh. Though Meridian is comparatively
new, they have come up with significant market share within a short time. Same thing
happened even in more pace in case of Ruchi. Continuous promotion and strategic
implementation led them to this extreme level of successes.

Distribution network of the major competitors:

Most of the companies distribute chips through distributors except Ispahani, Meridian, and
Square. These three brands are distributed through their own distribution channel. Usually
small enterprises or wholesalers are selected as distributors considering some criteria like
capital, risk bearing capacity, network in the market, previous track record etc. Sometimes
individual person can also be chosen a distributor after receiving some advance money as
security.

Chips are usually delivered to the distributor on advance payment basis and then from him
door-to-door delivery is made to the wholesaler and retailer. Commission on sales are given
on sales volume, in fact the distributors buy the products directly from the producers at a
certain price, and supply it to the retailers and wholesalers at a price that includes their
commission. Usually the manufactures with their bigger organization are at the control.

Bombay Sweets: Bombay Sweets have five distributors in Dhaka. It is usually door-to-door
distributing. These distributors are sole distributors for their locality. The manufacturer
delivers the products on specific days of the week to their place and he distributes it to the
retailers with the help of his employees. The distributor plays here the main role. The
manufacturer provides no other extra support like financial or Human resources. Bombay
Sweets is the pioneer in the packet chips industry in Bangladesh. They launched Bombay
Sweets Potato Crackers in 1985. At that time there was no other competitors for packet chips.
Through their widespread network they have made the products available in all over the
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country. Gradually the market has been expanded and now there are as long as more than
eighth competitors in the market. There are more than twenty brands in the market with some
international competitors. Besides packet chips there is a huge market of homemade chips.
Though they are market leader of chips industry they are not direct competitors of Ispahani
chips.

Meridian: There are five distributors of Meridian in Dhaka who reaches the retailer while the
sales office of the manufacturer delivers the products to the wholesalers. The commission is
nearly six percent on sales. No other facilities are admissible to them.

(3)Ispahani: The major help from tea internal division carries out Marketing of Ispahani
Snacks. For Ispahani Snacks there are exclusively some ASO with mechanized vehicle.
Beside this every depot has at least one rickshaw van for selling Ispahani Snacks and all other
ASO’s. The people who sell tea are also carried Snacks to retailers.

(4)Lays: Lays is the product of India. Now a day, it is so much popular to the people. The
price of Lays is comparatively high but its quality and taste is outstanding. The people who
are the wholesalers of other chips are the sellers of Lays in our country. They distribute Lays
to the retailers.

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 Price list and promotional strategy of some popular brands:

Product’s Name Trade price Retailer price Trade promotion

Bombay Sweets potato 8 10(25g)

crackers

Bombay Sweets Mr. twist 13 15(30g)

Bombay Sweets Ring chips 5.20 6(20g)

Potato sticks 4.20 5(15g)

Meridian prawn 10.25 12(25g) Sometimes 1pack

free for 1 dozen

Meridian chicken 10.25 12(25g) //

Meridian real thai shrimp 10.25 12(18g) //

Ispahani vegetable snacks Not available

Ispahani potato crackers 8 10(25g) Sometimes 1 pack

free per dozen

Ispahani real potato snacks 8 10(25g) //

Ruchipizza flavor 8.4 10(25g) I pack free per 1

dozen

Ruchi chicken flavor 8.4 10(25g)

Ruchi tomato flavor 6.5 8(13g)

PranCrackers 8.25 10(25g) I pack free per 2

dozen

Pran shrimp 8.25 10(25g) I pack free per 1

dozen

BD Chicken crackers 10 12(20g)

Sun Real potato(Tomato/ 823.2546.20 10(14g)25(35g)

mix masalla/garlic) 50(75g)

Pringles chips 46.25 50(40g)

Lays (magic 14 16(13g)

masala/potato/chicken) 30 35(30g)
65 175(61)
245 275(184g)

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Favorite chips brand:

It is found from our survey that more than 52% of the consumers refer Bombay Sweets as
their favorite chips Brand. The second position was of Meridian and it was 32%. Another
important thing here is about Lays. This brand has come up to third position within a very
short time. It was possible because their continuous TV commercials aired on the satellite TV
channels. But, as the price of Lays is comparatively high, Sun Real potato take a good place
among people.

To the retailer Bombay is the most profit earning brand. Sun, Lays and Meridian placed
respectively second, third and fourth position. And Ispahani is at the fifth place. Since
Bombay Sweets sells most, So Bombay is the most profitable brand to them.

Company
Ispahani in Now a Day:

M.M. Ispahani Ltd. is completely professional outfit. The organizational strength comes from
a dedicated workforce. The team has some of the best planners, architects, engineers,
financial experts and marketing professionals. Each area of work is departmentalized on a
purely functional basis and each directed to achieve qualitative superiority.
The Ispahani Group is a very large & old company comprising over 10 separate companies
engaged in various business activities including –

 Tea
 Travels
 Securities
 Poultry
 Foods
 Media
 Real Estate
 Textile
 Jute
 Shipping

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ISPAHANI FOODS LIMITED:
Ispahani is the spices brand name that moves to the western Indian city of SURAT in 1820
and moved to Madras where they made their base. They had extensive business interests in
India, Iran, Burma, and Egypt.
Ispahani established an office in Dhaka around 1875 to trade indigo and hides. An office in
Calcutta followed this in 1900.

The group has introduced its – venture in the food industry in 2000. It mated with various
types of chips. The brand is called Ispahani Marshal Chips. Now this division is operating
under the support of tea division Ispahani Food Ltd. is the latest addition to Ispahani group.
Under the food division snacks food item are being introduced. Now a day’s chip is the most
popular snacks item. With the increasing demand of fast food, the demand of chips increased,
as the part of this fast food. Chips market in Bangladesh is growing day by day and the
market is much more potential. For the demand of time Ispahani Chips launched five types of
chips on 22nd April in 2000. The plant covered approximately 25000sq. ft with high hygienic
standard. The plant is situated in Pahartali, Chittagong. The plant is well equipped with state
of the art specialized processing machines and equipment, valued around half million USD.
The machine is Originate from USA, Australia, Japan, and Malaysia. Pellets and flavors are
imported; the tea division handles the procurement. In the factory it is processed into final
products and packed untouched by hand. Marketing of the Marshall Snacks are carried out by
tea internal division nationwide strong distribution channel. They also prepare TV
advertisement and take other promotional activities to establish this new product in the
market.

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Managerial hierarchy of Ispahani Chips:

Manager

Jr. Assistant

Production

Executive Dy. Dy. Executive

(Fry) Executive (Q/C) Office
(Packing)

Asst. Sup. (1) Tech. Asst. (1)

Packer (6)Female Sweeper (2)

Operator (1)
Operator (2)

Tech. Asst. (2)

Administrative Accounts Officer
Tech. Asst (8)
Officer

Helper (1)
Accounts Asst. Vat-Clerk

Market opportunity and issues

It can be hoped that if people really like our products and as our product quality is good there
is a big change to become the market leader.Though there are many competitors and they
compete with almost the same product this is the main issue in terms of market opportunity.
Because now we come into the market with five new different brands of different taste and
flavor.
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SWOT ANALYSIS
The overall evaluation of a company’s strengths, weaknesses, opportunities and threats is
called SWOT analysis. SWOT analysis helps explore the areas of possible changes in
marketing activities. A brief discussion of Bombay sweets Bangladesh Ltd internal and
external environment is as follows:

Internal environment analysis:

The strengths and weaknesses of Bombay Sweets Bangladesh Ltd “Carrot chips” are
summarized below:

Strengths:

 Expert and experienced management

 High quality product offerings that will exceed the competitors’ price, quality
and services.

 Maintain strong delivery schedule.

 Strong financial support.

 Company has strong manpower.

 M.M. Ispahani Ltd. has a great company reputation

 Customer loyalty of the company

 Availability of capital

 Use of modern technology

 Financial stability

 Product has the brand personality.

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Weaknesses:

 “Chips” is a new product of the company.

 M.M. Ispahani Ltd. has many kind of product. But for this new type of product,
distribution and promotion will have to be taken.

 As it is a new flavor product, it will be difficult to manage customers for the

company.

 Lack of proper knowledge about the market and the demand.

External environment analysis:

Opportunities:

 There is a demand for this kind of product.

 Company has good image in the market.

 There are no existing chips like our new flavored Chips

 Good and initiative employees.

 Mature retail market in Bangladesh.

 Developed communication channel.

 Company has a lot of vehicles to deliver the product.

Threats:

 The present chips manufacturers are also strong competitors.

 As it is a new product, there is a chance of rejection by the market.

 It may fail to fulfill the expectations of the customers.

 Foreign chips company.

 High cost of the raw materials.

 Political environment of the country.

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Current Market Analysis
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.

Government: The govt. is also attentive about the industry sector and sencourages and helps
to establish new businesses.

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.

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.

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.

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.

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.

Suppliers: 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

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local and foreign sources is very important in producing the chips and its good management
can be a competitive advantage.

Marketing Intermediaries: As the various branded chips are available all over the country,
many intermediaries are now involved in this business. So using the present intermediaries
any company can reach their chips easily to its target market.

Keys to Success
The keys to success are designing and producing products that meet market demand. In
addition, Ispahani must ensure total customer satisfaction. If these keys to success are
achieved, it will become a profitable, sustainable company.

Critical Issues
As a start-up business, Ispahani is still in the early stages. The critical issues are for company
to:

■ Establish itself as the premier chips company.

■ Pursue controlled growth that dictates that payroll expenses will never exceed the
revenue base. This will help protect against recessions.

■ Constantly monitor customer satisfaction, ensuring that the growth strategy will
never compromise service and satis- faction levels.

Marketing Strategy
As this time ispahani chips is coming back with a great hope we have to maintain some
strategy to grave the market.To make the product acceptable and also to increase its
acceptability we have to follow some techniques. These can be-

 Selling the product with the low price than others.

 Provide better quality.

 Taste or flavor can be changed.

 Give more by the same price.

 Give free gifts with each packet.

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  Can involve in some social welfare.

 Sponsor in different cultural, educational or sports programs.

 Give free chips with other company products.

 Sampling in different places like in schools, colleges and also in other market places.

The strategies we follow

We will follow differentiation and mass marketing strategy in a combined way. Because-

1. Differentiation: We want to launch some different products from existing market. By

bringing change in taste and flavor,we will make our product different from our
competitors. We will also improve the quality of our products. We will try to provide
more quality than our competitors do. Moreover, we will differentiate our product not
only in taste but also its packaging because we all are well known that packaging plays a
great roll in products selling. People, mostly children get attracted by colorful packet.

2. Mass marketing: We want to apply mass marketing theory. We are creating various
flavors chips by concerning not only children but also people of all ages. So that, we
pricing our products in different categories based on peoples need and want.

Mission:

•To provide highest-quality chips.

Objectives

We have a defined mission that goes a long way in explaining what we are and how pursue
our business. The objectives of Ispahani chips are:

Providing better services to the people.

Affordable pricing.

Maximizing profit through increasing total sales volume.

Achieving 30% market share within one year.

Becoming the market leader in chips market within 2 years.

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Marketing Objectives

 Maintain positive, strong growth each quarter (not withstanding seasonal sales
patterns).

 Achieve asteadyincreaseinmarketpenetration.

 Decrease customeracquisitioncosts by1.5percentageperquarter.

Financial Objectives:

 Gain new sets of customers within 4 months that worth for Tk. 50,00,000

 In the year-end TK. 1,00,00,000

 Increase the profit margin by 1% per quarter through effi- ciency and economy-of-
scale gains.

 Maintain a significant research and development budget (as a percentage relative to

sales) to spur future product developments.

Positioning
In all its activities, we are giving stress on

Increased standard of customer service and care.

A dedication to aid to all roles that human development plays in the aid process.
Respecting each other as individuals and encourage to high performing work.
Giving opportunities for personnel development.
To prepare good relationship with suppliers and other supplement partners.

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Marketing Mix
Product

As the market condition of our existing brands is not good and our relative market share and
market growth rate is low, that’s why we want to stop the production of our existing products.
Than we want to introduce our five new brands with the market. Our new five brands are-

 IspahaniPure snax potato chips (Tomato ketchup flavor)

 IspahaniPure snax potato chips (Magic Masala)

 IspahaniPure snax potato crackers (Salsa)

 IspahaniPure snax potato crackers (Hot and spice)

 IspahaniPure snax potato crackers (Tandure chicken)

Chips do not mean junk food. It also has some nitration value.

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 Nutrition Facts
Amount Per 1 piece
Calories 128.82
Calories from Fat 54.58

% Daily Value *

Total Fat 6.06g 9%

Saturated Fat 0.442g 2%

Polyunsaturated Fat 1.79g

Monounsaturated Fat 3.5g

Cholesterol 0mg 0%

Sodium 27.36mg 1%

Potassium 127.09mg 4%

Total Carbohydrate 20.64g 7%

Dietary Fiber 2.74g 11%

Protein 0.291g 1%

Alcohol 0g

Vitamin A 0% Vitamin C 1%

Calcium 0% Iron 2%

Vitamin D 0% Vitamin E 5%

Thiamin 0% Riboflavin 1%

Niacin 1% Folate 0%

Vitamin B-6 3% Vitamin B-12 0%

Phosphorus 1% Magnesium 1%

Zinc 0% Copper 3%

*Percent Daily Values are based on a 2,000 calorie diet. Your daily values may be higher or lower depending on your calorie needs.

Price:
Regarding pricing the researchers’ view is that there is flexibility in the market to price the
product. Chips could be priced between ranges of tk.7 to tk.10 provided that its packaging
and product quality are ensured. Color of packet is very important here. In our marketing
plan, we have shown the reasonable and competing price of our new five brands.

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Price of our Chips brands:

Brand name Price(gm)

Pure snax potato chips (Tomato ketchup 6(13) 10(25) 20(55)
flavor)
Pure snax potato chips (Magic Masala) 7(13) 12(25) 20(50)
Pure snax potato crackers (Salsa) 6(13) 10(25) 20(55)
Pure snax potato crackers (Hot and spice) 6(13) 10(25) 20(55)
Pure snax potato crackers (Tandure chicken) 12(25) 20(50)

Place:
The present distribution channel of Ispahani Marshal Chips is not suitable for launching a
new brand. Because within this channel the major focus is given on only to tea product. In
most of the cases it is the same distributor who takes care of both the product. But to
minimize risk they emphasize on tea product. Even the sales force is somewhat reluctant to
bargain for chips item in comparing to tea. Sometimes, they only visit and offer chips to those
retailers who keep tea item. It hinders the chips item to be established as a separate brand.

By observing the distribution channel of the competitors we can comment that most effective
distribution channel for chips item is two step distribution channel like one shown in the
bellow:

Two steps distribution channel:

Manufactur Distributor Retailer Consumer

er

An alternative distribution channel may be used by introducing a nationwide distributor. This

distributor will be of Ispahani and he will distribute only snacks items. From him all other

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distributors across the country will receive products. The main objective of this network is to
establish snacks item as a strong brand in the market. This is a concept only. To implement
this we will need to work out on its human resources and business plan. According to the
proposed distribution channel the network will be as bellow:

Manufacturer Nationwide Distributor Retailer Consumer

Distributor

Promotion:

It plays an important role in the exchange process by informing customers of an

organization’s product or service and convincing them of its ability to satisfy their needs or
wants.

We will use the following promotional mix:

●Advertising

●Personal selling

●Direct marketing

●Sales promotion

Ispahani 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 brand more
promotion is needed to build up the brand awareness.

Ispahani will use ads through TV, Radio, and Newspaper, Internet, Information, Home
Delivery, Bill Board, Ticket Advertises, Concert Programs, Power point presentation.
Banner, Festoon, Placard, Joining Fair to aware people about these chips. The company will
take the strategy to create awareness about the bad effects of the traditional chips. Then the

Page 23 of 35
 company will present its chips to the market as harmless to children and students as well as
young and old people.

There are many promotional activities those we could take. But we only take the following
promotional activities to increase our sales-

 Sampling in different places like in schools, colleges and in other market places.

 Involving in some social welfare .such as-scholarship, charity, donation.

 Sponsoring in different cultural, educational or sports programs.

 Giving gifts with each packet.

 Advertising in electronic, print media, billboard.

Different gift items for different age group:

Gift item Age group of consumer Total

Below 10 10 to 20 21 to 30 Above 30 Preference
(%)
Display card 2.80% 7% 2.20% 12%
Toy 3% 1.60% 2.40% 7%
Tattoo 1.80% 2.20% 2% 6%
Pokemon 5.50% 4.50% 7% 17%
Sauces 14% 14.50% 0.50% 29%
Chocolate 1% 5% 6% 2% 14%
T shirts 8.30% 2.20% 0.50% 11%
Cap 0.50% 0.70% 1.20%
Sticker 0.50% 0.50%
None 2% 2%
Pen 0.30% 0.30%
14.60% 43.30% 39.10% 3% 100%

Page 24 of 35
 Preferred gift item for different age group

35
30
25
Above 30
20 21 to 30
Age

15 10 to 20
Below 10
10
5
0
y to r n
rd To on ce
s te rts ap ke on
e
Pe
ca Ta m u o la hi C ic
la
y ke
Sa c T
s St N
Po ho
isp C
D
Gift item

To theconsumer of below 10 age group, Pokémon is most preferred gift item. And for the10
to 20 and 20 to 30 age group this is sauces. Among the various gift item sauces was named
highest number of times. Chocolate and Pokémon were respectively second and third highest
chosen gift item. T-shirt was chosen by 11% of the consumer and peoples of the age group of
10 to 20 preferred most this item. Consumer of below 10 age group did not prefer sauces.
This is because they do not usually bother much about the taste, flavor or food value out of
things they have rather they care much about entertaining item like Pokémon card, display or
tattoo etc.

Public Relation

The company will take a mass public relation program. Ispahani 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. The company needs no special personal selling program for
this product. In introduction stage sales promotion will not also be considered.

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 our chips. In their TV
Page 25 of 35
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 media’s advertising
the company can present famous and renowned doctors to inform people about the difference
between traditional chips and our chips.

Others

They will develop some cartoons, which will be used on the T-shirts, billboards, neon boards,
and in some ads to attract the children and young people. The company also uses this brand’s
logo, picture, symbol etc. on many toys, dolls and on many other things to know and attract
the target market.

Time slot for TV commercial

Most of the chips commercials are aired on TV before popular serial. But the most popular
program in private channel is news at night. All the channels broadcast news at least once
within the time slot of 9 pm to 10.30 pm. By airing commercial in private channel before
news at night it is possible to reach to maximum viewers.

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Production Process

The production process of Ispahani chips is mentioned here:

Production flow chart

Raw Materials

( Pellets)

Dryer (10-12) hrs

Duration with 45-50 C

Temperature
Hopper

Fryer (frying machine) 178-

182 C frying temperature

Oil observation

Conveyer

(Burn chips sorting)

Flavor mixing

(Mixer machine)
Chips packet (Packing
machine)

Conveyer
Per minute 40 packets

(Single pack)
Dozen & Gross pack

Floor Stock

Delivery

Page 27 of 35
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. Nestlé Bangladesh 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. Nestlé Bangladesh Ltd will send
people to local competitors to gain information about their product offerings and also its
competitors’ product offerings.

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 FINANCIAL PROJECTIONS

This section will offer a financial overview of “chips.” as it relates to the marketing
activities. I 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.

Expenses Forecast

Estimated total Cost for the first Six Months:

Fixed cost Tk.13,00,000

Raw materials Tk. 12,00,000

Rent Tk. 1,60,000

Employee (Operation & Sales) Salary 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

Page 29 of 35
 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.

Estimated Sales for the first Six Months

Estimated Sales (TK.)

1200000 1080000
1000000 90000
800000 720000 0
600000 540000
400000 360000
180000
200000
0
1 2 3 4 5 6
Consecutive Month

Break-even Analysis

BEV= Fixed cost / (Price- Variable cost)

1000000

10-5

=200000 units

So, breakeven point can be achieved within 6 months.

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Review and Control
Both primary and secondary data have been used in this research. Primary data were
collected by conducting survey through questionnaire. The main source of secondary data
was company’s previous research materials. The quantitative data was analyzed by using the
SPSS software. For graphical data presentation Microsoft Excel has been used.marketing
plan includes different kinds of budget and managerial assignment for every action program.
It describes how to implement marketing plan. For control purposes, the plan also allows for
quarterly comparison of actual versus projected sales and expenses. If we can not do this
comparison among the plan then we never go to the competition. For our better performance
we need comparison between actual and projected sales and expenses. If there find out any
gap in plan and output, we have to take corrective actions. Not only that, if there is any
problem arise in production, marketing process, or any other areas, we have to take necessary
steps to overcome that. Finally, the management will monitor the total environment, progress,
and gap and will take the corrective actions if necessary. The company always has to
maintain the TQM (Total Quality Management).

Contingency Planning
Difficulties and Risks

■ An entry into the market by an already-established market competitor

Worst-Case Risks

■ Determining that the business cannot support itself on an ongoing basis

■ Having to liquidate equipment or intellectual capital to cover liabilities

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CONCLUSION
We have learn many things after preparing our report. In the above we discuss the strengths
of our company that will help in future because without strengths a company cannot exit.Our
company solves its weakness and overcomes its threats. Our 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. Our chips contain such advantage or features that will achieve
its customer satisfaction.

Recommendations
At first we want to say that The Organic 7 Company Ltd should have a specific marketing
department which will work under the supervision of the executive directors. This department
consisting of marketing specialist whose main job are planning and implementing of
marketing activities such as advertising, promotional campaigns, public relations, providing
market information to sales department.

The major activities of the department can be listed as follows:

 Carry out market reach, customer satisfaction survey.

 Collect and review information on market, top competitor.

 Encourage the customer to the brand.

 The authority should be conscious about their marketing strategy.

 Should be more advertisement in the content of whole Bangladesh focused on

billboard, print media and web ad. Etc.

 Need regular communication among clients and sales persons.

 The company should have to ensure good use of fund.

 The company should offer more facilities to the customers as per customaries
requirement.

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 Appendix

Appendix 1.Questionnaire for the Consumers

Mr. /Miss,

Assalamualaikum……

As a partof our marketing plan, we are doing a survey on Chips Market of Bangladesh. We need some
information regarding various aspects of some popular brand of Chips. We request you to co-operate
us by answering some questions to make the research successful. We assure you that all your answers
will be kept confidential and used only for academic purpose.

Q.1Which one is your favorite chips brand?

a) Meridian b) Bombay Sweets c) Ispahani d) Pringles

e) Pran f) BD g) Sun h) Ruchii) Lays

Q.2Which attributes of the following do you considers most when you purchase a chips?

a) quality b) price c) availability d) gift item e) flavor f) others

Q.3What types of gift item do you prefer most with chips?

a) Display Card b) Toy c) Tattoo d) Pokemon

e) Sauces f) Chocolateg) Others

Q.4Which information source played major role to chose your favorite brand?

a) TV commercials b) Friends c) Family members d) Retailers e) Others

Q.5 In what age group do you belong?

a) Below 10 b) 10 to 20 c) 20 to 30 d) Above 30

Thank you very much for your co-operation.

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 Appendix 2: Questionnaire for the Retailers

Mr. /Miss,

Assalamualaikum……

As a partof our marketing plan, we are doing a survey on Chips Market of Bangladesh. We need some
information regarding various aspects of some popular brand of Chips. We request you to co-operate
us by answering some questions to make the research successful. We assure you that all your answers
will be kept confidential and used only for academic purpose.

1. Which Chips do you receive most from the distributor or sales people? Please mention the
name

a) Meridian b) Bombay Sweets c) Ispahani d) Ruchi

e) Pranf) Co-cola g) Sun h) Pringles

i) Kurkure j) Lays k) Others

2. Which brand / brands does the customer want most from you? (Record the name as the order
he says)

a) Meridian b) Bombay Sweets c) Ispahanid) Ruchi

e) Pran f) Co-cola g) Sun h) Pringles

i) Kurkure j) Lays k) Others

3. Please mention the age group who buys chips more.

_____________________________

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4. What kind of incentive/benefits do you receive from the manufacturer of the brand
mentioned in Q.1? (Record separately for incentives of each of the brands)

5. What kind of incentives do you expect from the manufacturer?

………………………………….

6. How much volume do you sale per week(mentioned in Q.1)

a) Meridian b) Bombay Sweets c) Ispahani d) Ruchi

e) Pran f) Co-cola g) Jack &Jill h) Pringles

i) Kurkure j) Lays

Thank you very much for your co-operation.

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