a marketing plan of apple sap by reflection
DESCRIPTION
TRANSCRIPT
A Marketing Plan of
Apple Sap
Date of submission:05.06.2014
Submitted By
Group name: Reflection
Batch:5th(B)
Department of Management
Project
Submitted to:
Annanya Chakma
Lecturer
Department of management studies
Group Name: Reflection
Seri-
al no
Name Roll Member’s
Picture
1. Md.Toufiqul Is-
lam
104856
2. Masfi Rahman 104880
3. Nabiha Binte
Manjur
104904
4. Shadi Moham-
mad
104980
5. Faujia Mollick 104988
6. Nasrin Nahar 104996
7. Khan Rashel
Rahman
105034
8. Daud Al Shams 105038
9. Abu Bakker Kho-
kon
091267
10. Md.Kamrul Ha-
san
091343
11. MD.Mostakim
Sobhan raihan
091406
TABLE OF CONTENTS
Acknowledgements Table of contents List of table
Executive summary
Chapter 1.INTRODUCTION
Objectives of the project……………………………………………………………….…………1
Limitations of the project…………………………………………………………….………….1
CHAPTER 2: Product overview
Raw materials of juice: ………………………………………………..………………….4
Pricing system……………………………………………………………………………….…4
Acceptance of product……………………………………………………………….…4
Maintaining market share:……………………………………………………………5
Earning profit……………………………………………………………………………………5
Pricing system………………………………………………………………………………….5
Chapter 3.Manufacturing segment
Location analysis…………………………………………………………………………..6
Transportation factors: …………………………………………………………………..6
Sources of raw materials: ……………………………………………………………….6
Labor situation: ……………………………………………………………………………..7
Machineries used in production………………………………………………………7
Chapter 4.Financial Overview
Sources & uses of fund…………………………………………………………………..8
Implementation……………………………………………………………………….9
Chapter 5 Marketing overview:
Current market Situation…………………………………………………………………….10.
Marketing opportunities……………………………………………………………………….11
SWOT Analysis……………………………………………………………………………………..12
Marketing Strategy…………………………………………………………………………….13
Marketing Organization………………………………………………………………………13
Control System Framework…………………………………………………………………13
Segmentation…………………………………………………………………………………..14
Target market……………………………………………………………………………..15
Market Positioning………………………………………………………………………..15
Pull Strategy……………………………………………………………………………15
Push Strategy………………………………………………………………………………….15
Distribution Strategies………………………………………………………………………16.
Promotional activity……………………………………………………………………………….17
Marketing Research……………………………………………………………………………….
Financial Forecasts……………………………………………………………………………….
Chapter 6.Conclusion……………………………………………………………..
Letter of Transmittal
May 12, 2014
Annana Chakma
Lecturer
Dept. of Management Studies
Jagannath University.
Dhaka
Dear Madam,
We are glad to submit our assignment as you have assigned us to prepare as a partial requirement of the course. Now we are looking forward
for your kind appraisal regarding this project.
Here is our final project which you assigned us to do as a part of our Project Management course. This project is basically information based
on secondary data. As this project is a requirement of our project Management course, we have emphasized both on its content and its for-
mat. Nevertheless, we hope you will find this project accurate and reliable. We have enjoyed working together on this project and hope you
will enjoy going through it.
It would be appreciated, if you please evaluate our project. We would like to thank you for your support and feedback.
Sincerely yours
Md. Mostakim Sobhan Raihan
Team Leader
Executive Summary
This project is an assigned job as a partial fulfillment of course requirement by honorable Course teacher Annanya chakma, Lecturer of Dept. of management studies, Faculty of Business studies. It is the optimum aggregated outcome of 11 pupils’ about a project on “Marketing Plan and Promotion Plan of a New Prod-uct.” Bangladesh is a land of fertile. Here different types of fruits are grown. Among them apple is one of the most testy and nutrias fruits. In this country there are different types of juice are being marketed by differ-ent companies. But apple juice is not produced by the local companies in Bangladesh. So we have decided to produce juice by apple and want to capture the unexplored market of juice.
Chapter 1Introduction
Every product in modern marketing era needs a proper marketing and promotion plan. So our new product of apple juice “Apple Sap” do needs a proper marketing and promotion plan. Because, these two plans are the best way to get bestselling and consumer preferences in comparison with other products in the market. A good marketing and promotion plan always forecasts the future activities with proper judgmental knowledge. Better prediction ability of the marketer heavily influences the success of the product and way to survive in the modern competitive market.
Objectives of the project:
As a business expectative of future, we should have to gather experience beside our books. We should not concern
our lesson only in classroom but to implement it in practical life. That will help us in our future life. A clear objec-
tive helps in preparation of well decorated report in which others take the right type of decision. So, identifying ob-
jectives is very much important. Our purpose of preparing the project is:
To identify a new product
To depict a marketing plan for the new product
To describe the promotion plan for the new product
Limitations of the project:
As a student of faculty of Business studies, this is our first initiative for making a project on “New Product Devel-
opment & Develop a Marketing & Promotion Plan”. Although we have completed the project we had some ob-
stacles in preparing this project:
Lack of practical experience
Lack of sufficient books & journal
Shortage of time
Chapter 1Introduction
Every product in modern marketing era needs a proper marketing and promotion plan. So our new product of apple juice “Apple Sap” do needs a proper marketing and promotion plan. Because, these two plans are the best way to get bestselling and consumer preferences in comparison with other products in the market. A good marketing and promotion plan always forecasts the future activities with proper judgmental knowledge. Better prediction ability of the marketer heavily influences the success of the product and way to survive in the modern competitive market.
Objectives of the project:
As a business expectative of future, we should have to gather experience beside our books. We should not concern
our lesson only in classroom but to implement it in practical life. That will help us in our future life. A clear objec-
tive helps in preparation of well decorated report in which others take the right type of decision. So, identifying ob-
jectives is very much important. Our purpose of preparing the project is:
To identify a new product
To depict a marketing plan for the new product
To describe the promotion plan for the new product
Limitations of the project:
As a student of faculty of Business studies, this is our first initiative for making a project on “New Product Devel-
opment & Develop a Marketing & Promotion Plan”. Although we have completed the project we had some ob-
stacles in preparing this project:
Lack of practical experience
Lack of sufficient books & journal
Shortage of time
Chapter 2 Product overview:
Product overview includes categories of product, raw-materials of product and also the nutritional value of the
apple Juice.
Categories of products:
There are 4 size of juice we are proposed for lancing. They are:
Junior Juice Pack (120ml)
Normal Pack(250ml)
Contemptible Pack (500ml) Family Pack(1ltr)
Family pack contemptible pack Normal pack junior pack
Raw materials of juice: The main raw material for our juice is fresh apple. The other materials are:
apple
Water
Sugar
Xanthan Gum
Citric Acid
Vitamin A
Vitamin C
Sodium Benzoate
Approved Preservatives
Natural Identical apple Flavor
Pricing system:
Pricing strategies are most important stage in marketing mix. As we are going to launch a new product in
the market, we do not have any idea whether the price would be accepted or not by the customers. If we
select extensively high price, customers will not buy and volume of sales will be very low. On the other
hand setting lower price will not cover our costs. So we have to consider the following things in selecting
price.
Acceptance of product:
As our product faces competition against different types of juice, price of our product should be accepted by customers. We will keep reasonable price and provide quality product for customers’ acceptance.
Maintaining market share: If our product is accepted by customers in near future, more competitors will enter in the market. So our price should be such that can protect our market share in the competition. Moreover we will need to lower the price to hold the market share at the time of competition.
Earning profit: Our main objectives are to earn profit. So we should not set any price that will not cover the reasonable
cost of the product. After covering the cost we set a profit margin for our pricing. We have followed appropriate costing method and then set up the price logically by following the proper
pricing system
Pricing system:
Product name
Prime
cost
Varia-
ble cost
Fixed
Over-
heads
Per
Unit
To-
prof-
it
Mar-
gin
Selling
Price/
unit
Retail-
ers sell-
ing
Junior apple
juice( 120ml)
4 3.75 0.25 8 2 25% 10 13
apple juice
(500ml)
19 9.75 0.25 29 3 10% 32 36
apple juice
(250ml)
9 5.25 0.25 14.5 2.5 17% 17 20
apple juice 39 15.25 0.25 54.5 5.5 10% 60 65
Chapter 3 Manufacturing segment
Location analysis:
Location analysis is very much important for the business enterprise. We want to establish our production plant in Rupgong, Narayanjang, Dhaka. There are some reasons for selecting the Rupgong our plant location are given below:
Supply of electricity is available.
Supply of gas is available.
Law &order situation is well enough.
Financial institutions are available in Rupgang that’s why the transaction of money is very easy.
Transportation system is very good
Transportation factors:
Transportation system is an important factor for every business. In Rupgang the access of transportation is very good. There are 2 types of transportation system which are available in Rupgang. Those are:
Water way
Road transportation
Sources of raw materials:
Basically pineapples are produced in hill area. In Bangladesh the apples are found in Jammu &Kashmir,Himachal Pradesh,Uttarakhand in India NAME OF THE SUPPLIERS of RAW MATERIALS:
1. Mr. Jamil Hossain, (apple Suppliers), Office: 34/4. jammu &Kashmir
2. Mr. subedier ali, (apple Suppliers), Office: 15/4, Himachal Pradesh
Labor situation: Labor is an important element in manufacturing process. So supply of labor, Wage of labor is important fac-
tors .supply of both skilled & non skilled labor is available in Rupgong. We try to collect skilled labor among them.
We will provide a handsome salary to our labor
Machineries used in production: We will use different machineries in our production plant to make our production process speedy &easy. Here we
mention some name of machines which is used in our production plant:
Juice extortion machine
Pasteurizer machine
The juice mixing Machine
Bottle washing, filling, machine
Juice extortion machine Pasteurizer Machine
Juice mixing machine Bottle Washing, filling machine
Chapter 4 Financial Overview As we will start our business in the year of 2014, we can’t expect a huge sales as well as huge profits. But our mar-
ket research says that there is a good potentiality of this unique featured product. We project our sales will be kept
rising Next year. More ever promotion and advertising will help in increasing sales. At the very first of our busi-
ness our mission should be emphasis on promotional activities and recognizing the product at every level. Now we are showing our three years projected plan
Fig: Per year unit sales according to product category
Fig: Yearly Profit margin
Description 2014 2015 2016
Sales Reve-
nue: 120 ml
(3,00,000*10)=30,00,000+ (4,50,000*17)=76,50,000+
(450000*10)= 4500000+ (6,00,000*17)
(5,00,000*13)
=65,00,000+
Variable Cost
(Raw-materials,
(300000*3.75)=11,25,000+ (450000*5.25)=23,62,500+
(450000*3.75)= 1687500 (6,00,000*5.25)=3150000
(500000*3.75)= 1875000 (700000*5.25)= 3675000
Contribution
Fixed Cost
( Land, Factory,
1,00,00,000 10000000 10000000
Total Cost 16640000 19642500 20855000
Profit Margin 5650000 1,28,17,500 21145000
Sources & uses of fund:
This section describes the sources of fund & their uses.
We have 11 partners who will provide Tk. 2000000each.The total amount of fund will be Tk2 core.
Share of profit & loss: All members will invest equal amount of money. So the amount of loss & profit will divide
equally among the partners.
The amounts of taka we are using in different areas are given below: Plant & machinery: 40, 00,000
Computer printer: 6, 00,000
Covered van& transportation cost: 20, 00,000
Air condition: 2, 50,000
Photocopy machine: 3, 00,000
Furniture: 5, 00,000
Land & building: 25, 00,000
Variable cost: 7000000
Cash in Hand: 3000000
Implementation:
The following milestones identify the key marketing programs. It is important to accomplish each one on time
and on budget. As successful entrepreneur we must fix the detailed action plan with when we are going to per-
form that. There are some primary activities (planning, permeation from Government) that we assume& we have
already performed. Building production plant: 3 month
Purchasing machineries: 1.5 month
Creation of marketing channel: 2.5 month
Start production: 3month
Start selling of product: 4 month
Chapter 5 Marketing overview:
Current market Situation:
Currently in Bangladesh, the national economy and marketplace are undergoing rapid changes and transformation. A large number of reasons could be attributed to these changes; one of the reasons in these changes in the Bangladesh’s Market situation is Globalization, and the subse-quent and resulting explosive growth of global trade and the international competition. The other reason for these changes in the Bangladesh’s Market situation is the technological change. This is an important factor because the technological competitiveness is making, not only the Bangla-desh’s market, but also the global marketplace competitive. In the Bangladesh’s Marketing situa-tion, the market success goes to those companies that are best matched to the current environmen-tal imperatives. Those companies that can deliver what the people want and can delight the Bangla-desh’s customers are the market leaders. Today the companies are operating in such a marketplace where survival of the fittest is the law. In order to win, the companies are coming out with various new and evolving strategies because the Bangladesh’s market is also changing very fast. It is to capture the Bangladesh’s market, that the domestics companies and the Multi-National Companies are using all of their Resources. In order to get the current market share of juice we surveyed among 50 people of Barisal and asked their preference for juice when they are thirsty.
Current market share:
Fig: Current market share
Name Position
Pran 18%
Frootica 17%
Froto 12%
Shezan 8%
Slice 13%
Acme 12%
Others 15%
Empty 5%
Marketing opportunities: Analyzing the current market situation we found that there are many strong competitors exist in market.
But our product is totally new & different from existing products. Our product is qualitative & good for
health. That’s why we think that this juice will be demandable in market. There is a huge potential market
for juice in Bangladesh because; pineapple juice is a new product in the market. People have a squashy
view to pineapple rather than any other fruits. Because it’s nutritional value is higher than other fruits.
SWOT Analysis:
SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportu-nities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. The technique is credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 compa-nies Components and strategies of SWOT analysis A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. An example of a strategic planning technique that incorporates an objective-driven SWOT analysis is Strategic Creative Analysis (SCAN). Strategic Planning, including SWOT and SCAN analy-
sis, has been the subject of much research.
Strengths: attributes of the person or company those are helpful to achieving the objective. Weaknesses: attributes of the person or company those are harmful to achieving the objective.
Opportunities: external conditions those are helpful to achieving the objective. Threats: external conditions which could do damage to the business's performance.
Figure: SWOT analysis
Here we have given SWOT of our apple juice:
Strength:
Quality product The Product has a great nutritional value. Well distributional channel. Skilled management system, Proper accounting system Foresighted marketing department
Weakness:
Lack of experience
Shortage of capital
Small scale production
Opportunities:
High demand
A developing market
A market vacated by ineffective competitor
Favorable government rules and regulations
4. Threats:
Strong competitor
Economic instability
Price wars with competitors
High taxation rate
Marketing Strategy:
Marketing Organization:
Based on our organizational hierarchy we have constructed a framework that will help to manage and perform the ac-
tivities of our new product.
Control System Framework:
First we will set our central office in Dhaka. From there we will keep contact with the local representative
through mobile call, SMS and MMS. The responsibility of local representative will be to deal with the pro-
ducers, send a copy of the deal to the head office and make sure that the producers are getting the right
price. The payment of purchasing sugarcane will be cleared through banks, post offices and using several
technologies.
We have two different ways to carry the product toward Dhaka office-
By Road By Rail
Comparison and Contrast between Two Ways
Table 4.1 Comparisons and Contrast between by road and by rail
Whether we use By Road or By Rail we will use “Global Positioning System” (GPS). But in case of By
Road we will maintain a contract with a specific petrol pump. We will receive the bill of petrol
through fax, e-mail or SMS and the bill will be cleared by banks through “Electronic Data Inter-
change” (EDI).
After receiving and checking the consignment we will store some quantity of juice in the Dhaka office
and rest of the product will be sent to the warehouse. The Dhaka office will contact with the ware-
house through mobile. Though we are not using any distributor the retailer will collect carrot from
our Dhaka office. So, we can say that the Dhaka office will be our “Point of Selling” (POS).
Segmentation: A market segment is a group of people or organizations sharing one or more characteristics that cause them to
have similar product and or service needs. A market segment is a group of people or organizations sharing one
or more characteristics that cause them to have similar product and service needs. We segmented our market
according to the basis of age, income, & weight.
We have proposed 4 types of juice products according to our market segmentation. Those are following:
Junior Juice Pack (120ml)
Normal Pack (250ml)
Contemptible Pack (500ml)
Family Pack(1ltr)
Characteristics By Road By Rail
Cost High Low
Time Low High
Target market:
A marketer can rarely satisfy everyone. Not everyone likes the same thing. Therefore marketers start by di-
viding up the market into segments. They identify and profile distinct group of buyers who might prefer or
require varying product and service mixes by examining demographic psychographic, geographic, techno-
logical and behavioral differences among buyer. Then the marketer designed which segments present the
greatest opportunities, which are its Target markets. We have segmented our total local market into 4 parts
according to the consumers’ affordability, and our main target is to enter into this segmented market and
satisfy all the consumers. Our target market is total local market.
Market Positioning:
In marketing, positioning has come to mean the process by which marketers try to create awareness and po-
sitioning in the minds of their target market for its product, brand, or organization. It is the relative competi-
tive comparison of their product occupying in a given market as perceived by the target market. Our juice
helps to maintain good health which create a value in consumer mind about this product motivate them to
buy frequently. Frequent ads on TV, internet and radio channels will help to reach our message to our target-
ed consumers. Then we will have print and billboard ads in respect of our product and market.
We positioned our product as: High quality product
Reasonable price
Reliable
Pull Strategy:
Pull strategy is a promotion strategy that calls for spending a lot on advertising and consumer promotion to
induce final consumers to buy the product. If the pull strategy is effective, consumers will then demand the
product from channel members. Who will intern demand it from producers. We will emphasize on pull strat-
egy more to have long lasting sustenance in the competitive market. We will change our marketing strategies
over time to satisfy the consumers changing demand.
Push Strategy:
It is a promotion strategy that calls for using the sales force and trade promotions to push the product
through channels. The producer promotes the product to channel members to induce them to carry the prod-
uct and to promote it to final consumers. We will also follow push strategy initially to grab the consumers of
other brands’ products. We have a strong belief that if any consumer tastes our product single time he/she
will be interested to purchase it again and again.
Distribution Strategies:
In generally there are different types of marketing distribution system. Consumers are able to buy the products
from different market place. All these distribution strategies are consists of producer, wholesaler, retailer, and
finally to the consumer. There are mainly four types of marketing distribution channel:
1. Conventional Marketing channel
2. Vertical marketing channel
3. Horizontal Marketing channel
4. Hybrid Marketing channel We select the conventional marketing channel to distribute our product. Our juice will be distributed by the spec-
ified distributor which will be selected by the company. The selected distributor will supply the juice product to
the wholesaler and also to the retailer and the consumer will collect the product from the retailers.
There are three types of distribution strategies:
1. Selective distribution
2. Intensive distribution
3. Exclusive distribution
We choose the intensive distribution for our product. We will supply our product all over the country on the ba-
sis of our product demand so that the consumer can get the product easily.
The distribution channel is given below:
FIG: Distribution channel
O
F
W
A
Promotional activity: We make promotional activities for our product in different school, college, various quiz competitions, de-
bates, and so on.
Advertisements will be given in television, radio, internet, magazine, newspapers, and billboards. Advertis-
ing themes will be changed with time and promotional activity will be carried out to generate the consumer. In different occasion we will open special sales center where attractive point of purchase display would be
arranged to create positive image in consumer’s mind. We will provide different incentive to our distributor.
We will sponsor various cultural programs, national occasions, Religion festival, other important day(s). Such as Phahela Baishak (Happy Bangla New Year); Eid –Ul- Fitar, Eid –UL –Azha,Friendship day, world Health day, World Child Day . We will sponsor some health related campaigns.
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 card sys-
tem. The suggestion card has several statements that 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.
The “apple juice” will work hard to implement reasonable suggestions in order to improve their service of-
ferings, as well as show its commitment to the customer that their suggestions are valued.
Financial Forecasts:
For the first few years it would be very hard for us to perform marketing activities because, our targeted
consumers are not aware about our product or our brand. So for the first few years we have to spend a lot
for the marketing activities of our product. For the first 3 years for marketing and promotional activities we
plan to expense 1500000 taka.
The distribution of the total sum of money of different Medias of advertising is given bellow:
Television 700000
Radio 400000
Internet 200000
Billboards 200000
Chapter 6 Conclusion
A marketing plan is a plan which outlines a company's overall marketing efforts and marketing plan may be a part of an overall business plan. Building a new brand or product needs huge promotional activities. To introduce a completely new product or brand it needs effective and future oriented sequential steps. In case of this plan all the necessary steps has been outlined in a systematic manner. The things shown are designed in such a way that is able to grab the attention of the present customers of other products.
References:
Bibliography:
1. Entrepreneurship Development Nazrulislam, Muhammad Z Mamun
2. Kotler. P, Keller.K. L, Marketing management, 11th Edition
3. Gitman. J. Lawerance, Managerial Finance, 10th, Edition
4. Kotler.P& Armstrong, Principle of Marketing, 11th Edition
5. Essential of Business Enviourment, k Aswathappa, 7th edition
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