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Table of Contents Contents Letter of Transmittal Acknowledgement Executive Summary Chapter-1 1.1 1.2 1.3 1.4 1.5 1.6 Chapter-2 2.1 2.2 2.3 2.4 Chapter-3 3.1 3.2 3.3 Chapter-4 4.1 4.2 4.3 4.4 Situation Analysis Product & Service Analysis Market Analysis Distribution Network Analysis Competitive Analysis Historical Results Current Financial Situation SWOT Analysis Strengths Weaknesses Outside Opportunities Threats Marketing Objectives & Issues Mission Financial Objectives Marketing Objectives Marketing Strategy Target Marketing Positioning Marketing Strategies & tactics Marketing Mix Page No.

Table of Contents (Cont..) Contents Chapter-5 5.1 5.2 5.3 Chapter-6 Chapter-7 Financials & Budgets Break Even Analysis Sales Forecast Marketing Budget Forecast Marketing Organization Performance Monitoring Recommendation Sources Page

LETTER OF TRANSMITTAL

15th December, 2009. Afreen Choudhury Department of Business Administration East West University

Subject: Letter regarding submission of TERM PAPER on making a marketing plan for a new product. Dear Madam. Its a great pleasure for us to have the opportunity to submit a term paper on making a marketing plan for a new product. This had been a great experience for us to work with such a practical & real life issue to analyze with. We tried utmost to make & let it look like a professional one. Any shortcomings are expected to have a kind view for our encouragement. Thank you for your sincere & honest try to let us make easy & get familiar with the different term and facts of marketing as well as about making plan to help us make the paper a successful one. Our efforts will be valued, if this report can serve for what its been meant for & our assistance will be there for any queries. Sincerely yours, Shamim Ahmed Khan Tahmina Ahmed Raisa Taslim Khandkar Tahsin Faruque

ACKNOWLEDGEMENT

Our work on preparing a term paper on creating a marketing plan for a new product is a great experience for us in light of the course Marketing Management. We strongly believe works like this will surely help us to have a clear concept about the making a marketing plan. All the praise belongs to Allah the all knower & best of the helpers to make our report a practical one by providing us the mental & physical toughness in course of preparation of the report. Our next honest & heartiest gratitude goes to Afreen Choudhury, lecturer & our honorable course instructor for her sincere and utmost guidance to prepare this report & gather huge practical and realistic knowledge, to make us understand the topics, terms & make us familiar with this course.

We would like to thank the DBBL group members who responded to our inquiries in completing the plan successfully. We express our sincere gratitude to the members of ATM card department of DBBL, for providing us with all the necessary institutional support and guiding us throughout the study period despite their busy schedules.

Executive Summary
Dutch-Bangla Bank Limited is the market leader in the online banking among the private banks of Bangladesh. Due to its contribution to the society as well as national economy, it has made a clear distinction and has occupied a separate and respected position in the banking sector of Bangladesh. It is the first bank to be fully automated and introduce Electronic Banking. Any DBBL client now has unrivaled access to banking from any DBBL branch, ATM and POS. All of these services are surprisingly affordable for everyone. With a number of deposit accounts, DBBL is also offering a number of debit and credit card services. They are currently offering six types of debit cards, some of them also accepted internationally. DBBLs debit cards are more secure, convenient and cheaper than any other debit cards available in the market. As an affordable card provider with better quality, DBBL has become the market leader in Bangladesh terms of Debit cards. Although DBBL has a variety of debit cards available, it has so far ignored the demand of student debit card. It does not posses any specific debit card for students, although students can buy their currently available debit cards but with a market research DBBL found that there is a demand for student specified debit card with a lower cost and additional benefits. This sector is so far ignored by most of the banks in Bangladesh. With the growing number of students both in private and public sectors, DBBL has found that there is a huge opportunity in this sector. DBBL has conducted several surveys among students of different colleges and universities of Bangladesh for last 1 year to identify the market need. It has also researched on other market variables and the overall result is positive enough to launch a new debit card for students. With a strong position in the market, good public image, strong financial backup and most importantly having the largest ATM network in Bangladesh and the largest IT budget in Bangladesh, DBBL is hoping to become successful in this particular field. With all the available market information and with the core objective of uncompromising commitment to fulfill its customer needs and satisfaction to become their first choice in banking, DBBL is going to launch a student specified debit card by the start of 2010. As the card is for the youthful generation, the name of the card would be GENERATION-X.

Chapter-1 Situation Analysis

DBBL is planning to enter a new market segment with a current product. It will emphasize on marketing strategy, target marketing and the appropriate marketing mix to build up a new and strong customer base. DBBL is already offering several types of debit cards and now after observing the market demand and opportunity, they are entering a new market segment with a slight modified but existing product that is DBBL is following market development strategy.

1.1 Product & service Analysis:

DBBL is going to offer a new ATM debit card to the market. The main and only target customers of the card will be students that are to purchase the card; the holder of the card must be a student of any college or university. The card will be issued against the users bank account and the uses of the card depend on account balance. The card will be only accessible through ATM. So far DBBL has offered different types of debit card like DBBL Nexus Classic, DBBL Nexus Silver, DBBL Nexus Gold, DBBL Nexus Maestro, and DBBL Nexus Visa Electron and now they are launching a card for students having the name DBBL GENERATION-X DBBL so far have offered quality service with affordable cost. Although it is offering superior service but it does not have any specific debit cards for students. Now DBBL wants to fill up this lacking and want to offer a debit card having several quality services with minimal cost. DBBL want to focus especially on cost, accessibility and additional benefits that is, it want to offer a card for students which will cost very low, which will be highly accessible and which will have additional benefits.

1.2 Market Analysis:

DBBL surveyed for a long time to find out in which field they can enhance their success and they have found that they can serve the students. It has evaluated the market segment attractiveness for a long time and able to gather dependable information to select one particular market segment that is the students. This information will help DBBL to serve their new customer segment efficiently and to build a loyal and long term customer relationship.

DBBLs geographic segmentation would be based on the cities or metro size. Primarily it will launch the product in the major two cities of Bangladesh which are Dhaka and Chittagong. If DBBL observes a positive feedback then they will spread it over time. DBBL will choose both male and female customers. Their main target will be the students who are aged around 18-25 years. The minimum educational qualification will be higher secondary or A-Level, maximum is graduation. Any students who want to have the card must be Bangladeshi according to nationality.

1.3 Distribution Network Analysis:

DBBL is planning to make the debit card available through any operating branches. As it is going to launch the product only in Dhaka and Chittagong city primarily, the card will be available in any of the branches operating in Dhaka and Chittagong. At present there are 26 branches of DBBL in Dhaka and 12 branches in Chittagong. In case of distribution, DBBL will use corporate vertical marketing system that is it will combine successive stages of production and distribution under single ownership. DBBL will also use intensive

distribution which means they want to make the product available where and when
customers want them.

1.4 Competitive Analysis:

DBBL faced tough competition in general debit card sector but in case of student debit card, it has a very low competition as there are only a few banks offering such type card. After analyzing the overall market DBBL has come to the conclusion that their main competitor is Eastern Bank Limited (EBL) because they are already offering such type of cards that are specified for students and these cards are well established in market. They are offering the card to all the students who will open an account in EBLs Campus Account. It will cost the students 2000Tk to open the account and have the debit card. Eastern bank is also in a good position in the market and very much renowned to public as a bank which performs significant amount of student related activities. DBBL will face monopolistic competition as there are several other banks with differentiated offering that is debit cards of different types. Another reason why DBBL will face monopolistic competition is that, one of its main focus areas is market segment. Which are students in this case.

In competitive analysis DBBL has to determine the strategies and objectives of their competitors. It will also identify their competitors strong and weak point based on which they will design their strategies. In terms of DBBLs main competitor EBL, the strong point of EBL is, they have already an established card in the market for students. Their weak point is, they do not possess such a large number of ATM and POS services like DBBL. Another thing that DBBL have to consider when analyzing competitors is to see the three variables which are share of market, share of mind and share of heart. It means DBBL has to identify how much market share is occupied by the market competitors and also how much the competitors have occupied the mind and heart of the customers.

1.5 Historical Results:

DBBL so far conducted their operation very successfully. DBBLs performance was satisfactory from the very beginning of their operation. With the help of its superior service, DBBL has achieved a strong position in the market. The bank has won numerous international awards because of its unique approach as a socially conscious bank. It is the first bank in Bangladesh to be fully automated and now it is having the highest number of ATM booths all over Bangladesh. In the recent years it became so popular that it set the record for the highest share price in Dhaka Stock Exchange in 2008. As a provider of good quality service with affordable cost, it has made a good image in the mind of the customers. With a history of immense technological investments and an even larger donation, DBBL has become the leader in the online banking among the private banks of Bangladesh.

1.6 Current Financial Situation:

The highlights of the overall financial situation of DBBL of last five years have illustrated below to give everyone a clear idea about DBBLs financial position. Some graphs are also presented for better understanding of the topic. All the amounts are in million taka.

Financial Highlights

Some Charts are given below regarding the financial condition of last five years of DBBL.

Chapter-2 SWOT ANALYSIS: 2.1 Strengths:

Highest number of ATM booths (586) and POS service (More that 1000) all over the country. Large number branches situated all over Bangladesh. Has the position of market leader in terms of cards. Has a strong public image because DBBL practices the highest number of CSR activities. DBBL is also the first bank in Bangladesh to be fully automated. Has the largest IT budget amongst the banks of Bangladesh.

2.2 Weakness:
Difficult to measure response from students as there are numerous numbers of colleges and universities located all over Bangladesh. High initial investment but profit will be low. High advertising and promotional cost. Limited marketing budget to create brand awareness. Lack of experiences to deal with students.

2.3 Opportunities:
Participating in a sector where there is massive opportunity of success because the sector is only in preliminary stage and it is growing day by day. Demand of a card that comes with several benefits alongside with lower cost. Market share can be enhanced

Change in trends among students that is electronic banking is becoming popular day by day.

Continuing opportunities through strategic alliances.

2.4 Threats:
By seeing the chance of getting profit, new competitors may arise in this sector. Possibility of huge loss if there is not enough response from customers. Competition from similar service provider like Eastern Bank Limited. Economic imbalance may arise which may cause missing the customer.

Chapter-3 Marketing Objectives & Issues: 3.1 Mission:

DBBLs mission is to offer the target customer with a debit card that satisfies their need and demand with an affordable cost. Its main target is to make sure that their customers are satisfied and to make them satisfied they will try their level best. DBBL surveyed for a long time before launching the product and thus successfully able to identify the actual need of the students. Its mission is to fulfill that need efficiently and properly. It mean, DBBL will provide the customers what they want and so DBBL has set their mission statement We

Think Like You.

3.2 Financial Objectives:

Retain sufficient budget to increase the number of ATM booths in future. Satisfactory growth rate after 2nd year. Making the profit of the company healthier. Decrease the variable cost associated with debit card production. Offer a card at a lower cost than others to earn the position of cost leadership. Achieve sales of taka 1,25,00,000 by the end of one year. Achieve contribution margin of 60% of sales in the first year, 60% in the second year and 65% in the third year.

3.3 Marketing Objectives:

Generate brand awareness through different campaigns and promotional activities. Ensure the availability of cards and ATM booths to students in as many locations as possible. Increasing the number of new customers each year and turn them into long term customers. Expand the service throughout the country within 5 years. Attaining such a position in the minds of the students so that whenever they think of a bank, DBBL become their first choice.

Chapter-4 Marketing Strategy: 4.1 Target Marketing:

DBBL will focus on which type of marketing strategy it will undertake for their target market. According to its decision, DBBL will use differentiated marketing strategy where it will select one market segment which are students and design a separate offer for them that is GENERATION-X debit card. After evaluating the specific segment attractiveness, DBBL has decided to launch their new debit card among students. DBBL has divided their target customers into two groups. One is higher secondary students and another is undergraduate students. Primarily DBBL has decided to launch the card only in Dhaka and Chittagong cities that is their primary target market is the different college and university students of Dhaka and Chittagong city.

4.2 Positioning:
In the process of occupying a distinctive place in the mind of the target customer DBBLs POD (Point of Difference) will help them a lot. Their POD is having the highest number of ATM booths and POS centers throughout the country. This is their POD because at a time DBBL has the ability to offer the number of ATM & POS service it is claiming, it has the proper communication ability with their POD because of widespread distribution network and finally, its POD is also sustainable because it is not easy for any banks to copy such a huge number of ATM booths. DBBL will identify the products with which they will compete and which will work as close substitutes to customers. By doing market research it has found that there are a number of debit cards available in the market provided by different banks such as Eastern Bank, Prime Bank, Mercantile Bank, Standard Chartered Bank and lots more.

Youths who need a card that comes with exciting features and minimum cost, Generation-X is the right solution for them.- This will be used as the
positioning statement of DBBLs new debit card.

The benefits that DBBL is looking forward to provide through GENERATION-X are listed below Availability of booths in different university campus. Payment of tuition fees through this card. There will be no annual card holding fees Card holder will enjoy a discount in all the theme parks and sports zones located in Dhaka & Chittagong. There is an extra amount which has to pay if a DBBL debit card holder uses another ATM booth other than DBBLs ATM booth. In case of GENERATION-X card, this extra charge will be low. The amount of money withdrawal ranges from minimum 500tk to maximum 30,000tk.

4.3 Marketing Strategies & Tactics:

DBBLs marketing strategy will be based on based on developing the visibility of its new product offering that is GENERATION-X debit card. DBBL will use advertising as a medium of promotion. It will give advertisement on newspapers and different magazines focusing on the sports & lifestyle sections of these newspapers and magazines. DBBL will also use several other ways to develop its products visibility. The major reason of using these ways is to communicate the message among students that DBBL is the best debit card provider who now brought a new card for students with affordable cost and additional features. DBBL should also do it to create brand awareness and effective customer relationship. DBBL also have to take proper defensive strategies as a market leader. It should be done to remain safe from different attacks which may arise from market challengers, followers or niches.

DBBL is planning to introduce their product at 2010 and assuming that at 2012 it will reach at its maturity stage. DBBL has assumed it because by doing market research they have found that there is almost no competition in the market in terms of student debit card. Only one bank is providing this type of specified card. So DBBL has planned to use huge amount of promotional activities from the very beginning to establish its product in the market and if DBBL become successful in doing this then the new product may reach to its maturity stage within three years. At present DBBL is not thinking about decline stage but for future, they will also take it under consideration. DBBL will undertake different strategies in different stages of product life cycle. In the introduction stage it is assumed that the profit will be low and sales growth will also be slow. DBBLs promotional expenditure will be highest because it will have to inform the potential customers that their product is available in the market. As DBBL is the adopter in the market in terms of student debit card, it has to ensure superior quality to become successful. DBBLs main marketing objective will be creating product awareness. The amount of sales promotion should also be higher. In the growth stage, it is expected that sales and profits will start to climb up. New competitors might arise in the market by seeing the growing opportunity if profits. DBBLs promotional cost will decrease as sales and profits will rise. In this stage, DBBL will change its advertising strategy. It will now emphasis on product preference advertising that prefers the customers to have DBBLs product. It can also lower the price of the card a bit to attract new customers. DBBL can also enhance their distribution coverage. These things will be done based on increasing demand. At preset, DBBL is concerned about the maturity stage. It can think of different strategies which it can take if its new product reaches to its maturity stage. Some of the strategies would be to retain the stable position in the market as well as remain cautious about competitors. DBBL can use additional promotional cost which will increase their overall expense. Adding and improving the features, quality and style might also increase their expense. Most of the cases DBBL have to lower its price to attract new customers and retain the existing ones.

Decline stage is also not in the consideration at present but if DBBL face such stage
then there are also some strategies that DBBL can undertake. One of the major strategies would be to determine whether to retain the product or quite the market. DBBL also might need to increase its investment because in this stage all the competitors will try their level best to regain their position. So competition will be very high. Another important strategy is to determine whether DBBL should go for divest, that is removing GENERATION-X from the market and use the investment amount in another sector.

4.4 MARKETING MIX:

DBBL will decide its marketing mix with the combination of 4Ps that is product, price place and promotion.

Product:
DBBL wants to emerge in the industry with an offering that has certain features. Like Student specified debit card, which means only students can get the card. Easily accessible Better service with affordability. Additional benefits.

GENERATIONX 1523 6584 2458 4625

Price:
In terms of pricing, DBBL will follow value pricing method that is they are planning to offer the right combination of quality and service at a fair price. DBBLs pricing policy will be like following: There will a special account for students which will cost 500tk to open. Any students who will open that account will be given the card free of cost which means the price of the card will be 500tk. There will no annual card holding fee. All charges will be inclusive of VAT.

Place:
Initially DBBL is focusing on Dhaka and Chittagong and over time they will expand it. Primarily it is choosing these two geographic areas because by doing several researches DBBL has found that the affordability and demand level of the students of these two areas are satisfactory and promising enough to launch a new debit card. DBBL is planning to distribute its card through different DBBL branches located in Dhaka and Chittagong. At present there are 26 branches in Dhaka and 12 branches in Chittagong.

Promotion:
DBBL will promote its product through a number of ways. Promotional campaign: DBBL will organize sessions and press conference. It will organize different campaigns among students of different colleges and universities to make them knowledgeable about the card. DBBL will also promote its product in all the available ATM booths and in as many branches as possible. Advertisement: DBBL will also use advertisement in newspapers and magazines specially focusing on the sports and lifestyle section. It will also use radio as advertising media because now-a-days radio channels are very much popular among young. DBBL will also use the billboards to advertise its product. Sponsor: DBBL can also sponsor different student events where it can promote its product. Website: DBBLs website will also be helpful in this process as it will update their website with necessary information related to its new product offering.

Chapter-5 FINANCIALS, BUDGETS & FORECASTS

The estimated financial overview will be discussed under this section which will include break-even analysis, sales forecasts, expense forecast & monthly expense budget.

5.1 Break Even Analysis:

After analyzing all the factors, DBBL has set their break-even sales at taka 2,50,000 per month and their BEP volume would be 500 units per month. The calculation is given below: Monthly Fixed Cost: 100000Tk Variable Cost per Unit: 300Tk Estimated Sales: 4000 unit (per month) Price: 500Tk Unit Cost = Variable Cost per Unit + Fixed Cost /Estimated Sales =300+100000/4000 = 325Tk Break Even Volume = Fixed Cost/Price-Variable Cost = 100000/500-300 = 500 Units (Per Month) Break Even Amount = 500*500 = 250000Tk The overall Break-Even Analysis is given below in a table.

Break-Even Analysis
Break-even units (monthly) Break-even sales (monthly) Per unit variable cost Monthly Fixed Cost Monthly Total Revenue 500 250000Tk 300Tk 100000Tk 2000000Tk

The Break Even analysis is illustrated below in a graph.

Taka

TR
Profit

TC

2,50,000

1,00,000

FC

200

500
Sales Volume (In units)

2000

les

5.2 Sales Forecast:

DBBL estimated that with the flow of time its sales will rise gradually. As sales will rise, the direct cost associated with sales will also rise gradually. DBBL has divided the target customer into two groups: HSC students and Undergraduate students. DBBL estimated sales and direct cost of sales for each group and also calculated the total sales amount and total direct cost of sales amount under each group. The estimated sales forecast for the next three years is illustrated below in a table.

Sales Forecast Sales H.S.C/ A Level Undergraduate Total Sales Direct Cost of Sales H.S.C/ A Level Undergraduate Total 7,56,000 17,64,000 25,20,000 7,80,000 23,40,000 31,20,000 10,95,000 25,55,000 36,50,000 2010 37,80,000 88,20,000 1,26,00,000 2011 39,00,000 1,17,00,000 1,56,00,000 2012 65,70,000 1,53,30,000 2,19,00,000

To provide a clear view, two different bar charts for sales and direct cost of sales are given below:

5.3 Expense Forecast:

To give a clear idea about DBBLs annual expense in the next three years, it has prepared an estimated expense budget for the next three years. DBBL has showed the individual sector expenses for each year and also the total expense for each year. DBBL has also mentioned here the amount of its expected contribution margin and the ratio of contribution margin to sales for each of the next three years. This budget is prepared to set a target expense amount which will facilitate DBBL to set promotional and other expense activities. The marketing expense budget for next three years is given below:

Annual Expense Budget

Marketing Budget Expense 2010 2011 2012

Advertisement Campaigns Additional Expense Total sales and marketing Expense Percent of Sales Contribution Margin CM/Sales

14,00,000Tk 6,00,000Tk 10,00,000Tk 30,00,000Tk

13,00,000Tk 7,50,000Tk 10,50,000Tk 31,00,000Tk

21,00,000Tk 8,00,000Tk 16,00,000Tk 45,00,000Tk

23.81% 70,80,000Tk 56.19%

19.87% 93,80,000Tk 60.12%

20.54% 1,37,50,000Tk 62.78%

A bar chart is given below to show the sector wise estimated expense in 2010, 2011 and 2011.

Chapter-6 MARKETING ORGANIZATION:

DBBLs organizational structure is illustrated below.

CEO/Managing Director

Additional Managing Director Deputy Managing Director Executive Vice President Senior Vice president Vice president First Assistant Vice President Assistant Vice President Senior Principal Officer Principal Officer Senior Officer Officer Junior Officer Clerk

Production Department: This department will be responsible for producing and delivering the product that is Generation X debit card. Marketing Department: This department will be responsible for making the appropriate plan, developing marketing mix, setting marketing objectives, setting marketing strategies and tactics etc.

Finance Department: This department will be engaged in setting the financial objectives, preparation of budget, break-even analysis etc. Control Department: This department will observe whether everything is going according to plan that is, they will monitor the performance.

PERFORMANCE MONITORING:
After developing the plan and launching the product in the market, DBBL has to monitor the performance of the product. DBBL will observe the market closely to see whether the market has accepted Generation-X or not. They should also monitor the overall sales, costs etc to see whether they are going according to DBBLs expectation. DBBL should also identify whether they have become successful to attain the expected growth and market share. If DBBL finds any problem in any of the things, then it should also take proper actions and corrective measures.

Sources
Books:
1. Principles of Marketing Philip Kotler Gray Armstrong 11th Edition

2. Marketing Management Philip Kotler Kevin Lane Keller 12th Edition

Websites:
www.dbblbd.com www.mplans.com

Interviews:
1. Mesbaul Asif Siddiqui Senior Relationship Manager HSBC Contact: mesbaulasiddiqui@yahoo.com

2. Mr. Nazrul Card Operation Dutch Bangla Bank Limited Contact: nazrul@dbbl.com.bd