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2. Situational Analysis
2.1 Customer:
2.2 Major Competitors:
After independence the food habit of Bangladeshi people has been changed a lot.
Besides our traditional food consumer of Bangladesh like to take western food also
after 1980s. As a result of global marketing this was not too hard for the
consumers. Different foreign food companies were established in Bangladesh. Beverage
industry is one of them. But more interestingly we dont know beverage is also our
cultural food because beverage doesnt mean only carbonated drinks Yoghurt, Soup
and Lacchi are also beverage of our own tradition which consumed for the last 100
years in Bangladesh.
Carbonated beverage entered into our market in the later part of 1980. At that time
there were only few companies in Bangladesh. But by the change of time and
western culture influences its become very popular in Bangladesh. By year 2000 more than
12 Beverage Company operating business in Bangladesh and most of them are
foreign companies.
However, The Bangladesh food and beverage sector, which comprises farming, food
production, distribution, retail and catering, was valued at 140 billion in 2012.
Food & Beverage industry is one of the major contributors to growth of all
economies and has historically witnessed consistent growth. In this market there
are several companies which are providing goods of the same category. The main
Competitors are given below
Compan
y Name
Description
Customer
Revenue(2
Market
Choice
012)
Share
(Out
PRAN-
100)
40
of
80.3 38%
billion
10
60.6 10%
billion
Fuwang
Foods
They produce a
comprehensive range of
Foods, Beverage &
Ceramic Tiles with high
quality & standard. We
constantly innovate by
frequently introducing
new foods and beverage
creations.
15
Aftab
Foods
Banglad
esh
15
65.3 14%
billion
billion
70.3 10%
Alamin
Group
Akij Food
&
Beverag
e Ltd
Sanowar
a Group
05
05
40.6 10%
billion
Sanowara
Group
of 10
Companies is a countrywide
well
reputed
organization in business
arena in Bangladesh. At
first
the
company
launched its business in
the name of Sanowara
Corporation was setup in
1978 as a sole agent of
Australia based dairy
food manufacturer. Since
then
the
company
represented
numerous
international
manufacturer of food
items
all
over
Bangladesh.
42.3 10%
billion
billion
30.3 08%
From the above chart we can see that, PRAN foods are the leading business institute of
Bangladesh in terms of its revenue and customer choice as well as market share. After the
PRAN foods, Fuwang Foods, Aftab Foods Bangladesh, Ahmed Food Products (Pvt.) Ltd,
Sanowara Group are the leading business unit in terms of revenue and customer
choice gradually.
On the other hand, the economic slump has had an adverse impact on most Food &
Beverage industry. The major problems faced by the industry are rising food prices,
increasing transportation costs due to a rise in oil prices, and decline in consumer
spending. Nevertheless, the Food & Beverage industry has been relatively less
affected when compared to other industries. This is mainly attributed to the fact
that food products continue to be essential to consumers in spite of the slowdown.
Opportunities
and
Threats
analysis:
We, the marketers group have identified the main opportunities and threats facing in the
business.
5.1.1
Opportunities:
The main opportunities, facing by the Pran Food Companys product line are as follows:
Market study shows that consumers are showing huge interest in variety of milk.
The maximum retailers and super shops are willing to carry the Pran Companys products.
5.1.2
Threats:
Every company faces threats when they newly enter into market or for the existing company.
Threats
facing
the
Pran
Food
Company
are
as
follows:
Pran has many competitors which are marketing diary products. It has a strong competitor
(Arong)
in
producing
Chocolate
Milk.
Current political unstable situation may affect the new product launching activities.
Uprising commodity price is also a threat for the product in newly introducing into the market.
Bangladesh government may establish a stringent product safety law, which would entail
product redesign work.
5.2
Strengths
and
Weaknesses
analysis
The product manager of accompany needs to identify product strengths and weaknesses before
launching into the market.
5.2.1
Strengths:
The Pran Food Company has some strong sides. The main strengths of Pran Company are as
follows:
The Pran Company has excellent brand awareness and a high quality image as juice and
packaging
product
producing
company.
Dealers and sale personnel who sell the Prans product are knowledgeable and well trained in
selling.
The Pran Company has an efficient service network and strong distribution channel to reach the
product
to
the
consumers
quickly.
Pran is introducing its Chocolate Milk with two well known and well excepted flavors (Strawberry
&
Vanilla).
5.2.2
Weaknesses:
The Pran Food Company has some weaknesses for Pran Chocolate Milk. The main
weaknesses
of
Prans
product
line
are
as
follows:
Prans line is not clearly positioned in diary product compared with Arong and Milk Vita.
The current advertising campaign for the diary product is not particularly creative and exciting.
The
The
quality
budget
of
core
of
product
advertising
(Milk)
and
5.3
is
as
promotion
same
as
is
the
lower
competitors
than
Issue
its
product.
competitors.
analysis
In this section of marketing plan, as product manager, we use the strengths and weaknesses
analysis to define the main issues that the plan must address. Pran Company must consider the
following
basic
Should
Pran
stay
issue:
in
the
diary
business?
Can it compete effectively with its current market competitors? Should it divest this product line?
If Pran stays in the business, should it continue with its products, distribution channels, and
price
promotion
policies?
Should Pran increase its advertising and promotion expenditures to match competitors
expenditures?
Should Pran pour money into R&D to develop advanced features, and packaging style?
Objectives
Pran management wants each business unit to deliver a good financial performance. The
product
manager
sets
the
following
financial
objectives:
Earn an annual rate of return on investment over the next 5 years of 3 percent after taxes
Produce net profits of Tk.50,00,000 in 2009.
6.2
Marketing
Objectives
In this section of the plan, marketing objectives must convert the financial objectives into
marketing objectives. We want to earn Tk.50,00,000 profits and its target margin is 10 percent on
sales, then it must set a goal of Tk.5,00,00,000 of sales revenue. We set an average price tk.15
for 200ml and Tk.35 for 500ml. The company expects the total sales of Chocolate Milk are
20,00,000 units of 200ml and 5,72,000 units of 500ml pack that include 6,86,000 liters of
prepared milk. For achieving this market share, the will have to set certain goals for consumer
awareness, distribution coverage, and so on.
(Marketing Strategy for Pran Chocolate Milk)
7.1
Market
Segment:
The market has been segmented on the basis of geographic and demographic factors. People
who live in the Dhaka city, aged 6 to 25 years and high income generated, do not prefer normal
milk are our primary segmentation for Pran Chocolate Milk. It is an effective segmentation;
because it is accessible, substantial, and actionable.
7.2
Target
Market:
In evaluating different market segments, we set our target market as 6 to 25 years old people
who live in Dhaka city considering the selective specialization.
7.3
Market
Positioning:
The product strategy is also based on quality. In this case, we have positioned our product as full
cream HALAL Proved milk with Strawberry and Vanilla flavor that can differentiate it from the
competitors products.
7.4
a.
Product
Pran
Strawberry
line:
Chocolate
Milk
Quantity:
We have planned to launch Chocolate Milk in 200ml and 500ml pack for both Strawberry and
Vanilla Chocolate Milk.
7.6
Price
of
the
product:
We set the price for our valued consumers for 200 ml @ tk.15 & 500 ml @ tk. 35.
7.7
Distribution
Outlets:
To distribute our new product to consumers, we will emphasize on Retail stores and super shops,
and even the grocery shops as well which are already involved in selling our existing products
and also allow new one in which frozen foods storage equipments are available.
7.8
Service:
Basically, Pran Chocolate Milk is a packaging and instantly useable frozen food; we will provide
our product in time to the sellers so that consumer can get it timely. We will open complain box in
where consumer will put their complains and suggestions that will be helpful to the company for
further improvement of the product.
7.9
Sales
Promotion:
Sales promotion consists of short term incentives to encourage the purchase or the sales of a
product or service. Now, Sales promotion offers reason to buy product or service. The main
objective of this Sales promotion is to increase short term sales or help to build long term market
share.
We
will
use
this
Sales
promotion
strategy
in
the
following
cases:
1. When inside the company, product manager faces greater pressures to increase the current
sales,
and
Sales
promotion
is
viewed
as
an
effective
short
term
sales
tool.
2. When externally, the company will face more competition, we will use Sales promotion to
differentiate
our
offer
from
the
competitors.
3. When advertising efficiency will decline because of rising cost, media clutter, and legal
restraints.
7.9.1
We
Sales
will
use
the
best
one
promotion
among
the
7.9.1.1
following
tools
Sales
promotion
tools.
Coupon
Coupon is certificate that gives the buyers a saving when they purchase specified product.
7.9.1.2
Rebates
Cash refund offers or rebates are like coupons except that the price reduction occurs after the
purchase. Consumer will show the proof of purchase and get the refund part of the purchase
price.
7.9.1.3
Price
pack
Price packs offer consumers saving off the regular price of a product. The company will mark the
reduced prices directly on the label or package. Price packs can be single packages sold at a
reduced price such as three for the price of two.
7.10
We
Advertising:
have
taken
some
7.10.1
specific
strategies
for
advertising.
Advertising
objectives
as
inform,
7.10.1.1
persuade,
and
Informative
remind.
advertising
Informative advertising is used heavily when introducing a new product category. In this case, the
objective is to build primary demand, and create the awareness among the consumers about the
product. The company will use the Informative advertising at the initial time when they run their
new
business.
7.10.1.2
Persuasive
advertising
Persuasive advertising become more important as competition increases. Here, the companys
objective is to build the selective demand. They will use this Persuasive advertising at the time
when
7.10.1.3
face
heavy
intensity
of
competition
is
existed
Reminder
in
the
market.
advertising
Reminder advertising is important for the mature company. We will use it when our product will be
matured.
7.10.2
Advertising
message
No matter how big the budget, advertising can succeed only if commercials gain attention and
communicate well. Good advertising message are especially important in todays costly and
cluttered advertising environment. The purpose of advertising is to get consumers to think about
or react to the product or the company in a certain way. In order to attract the consumers we will
focus on low price of our product than the competitors, attractive features that is full cream and
strawberry and Vanilla flavor. These offers will give the health conscious consumers physical and
financial
7.10.3
benefits.
Advertising
media
Thus our business will be limited within the Dhaka city first; we will use news papers; satellite TVs
and bill boards as advertising media for newly introducing product.
7.11
Research
and
Development:
The research & development team is involved in continuous research for developing the product
quality, packaging style, and other features as the consumers demand. The marketers hawk eye
on the consumers response helps the researcher to develop the product. Pran Chocolate Milk
with Strawberry and Vanilla flavor is the successful creation of that department.
7.12
Marketing
Research:
Due to the market segmentation that the Pran Food Company has established, will require a
constant updates in terms of the potential size, distributions, and purchasing patterns of the
quality conscious executives markets. The company will evaluate the performance on the basis of
the sales units, and send a survey team to measure the consumer satisfaction
5. Marketing Srtrategies
Marketing strategy
At the current situation we are the market leaders and this market growth rate almost stagnate.
So if we want to grow our own market share then our advertisement strategy should be
informative and persuasive.
We have targeted the children and the youth consumers because they used to spend their time
mostly outside home because of several reasons. Luckily we are lunching our product in a time
where some religious festivals are coming. So by keeping an eye on these aspects we are
targeting the families as our customers by offering premium family packs.
Positioning statement:
We have made a new positioning statement for our new product. The positioning statement is
given bellow:
You need a pure one, when you are thirsty
The reason behind selecting this positioning statement is we are emphasizing our product
quality & at the same time we are serving the customer need.
Pricing strategy: Currently in our country the government is run by an elected party and
our country is now in a democratic environment. So we can hope that the government situation
will remain same and the inflation rate will be in control. For this reason we will try our best to
remain the same wholesale price in the next year and that is
Product name
50
28
15
Distribution strategy: In the beginning we want to going for huge sales for this we
have to increase our distributors number in whole country. We have to identify the main
distributors in the remote area of Bangladesh. We have to evaluate their capacity and then try to
convince to sell our product in their distribution network more frequently. We have a plan an
action program just for our distributors sales persons. It will be discuss in detail later in the
action programs.
our products quality with our consumers. Our main target will be those house-wives who are
concerned about their familys health, children, & young people also.
From our market surveys we come to know that in urban area most of these kinds of people
watch TV from 9 to 12. Then we have to promote our product in TV in between this time. Then
we know that many of them are related with workforce today. For that
reason they have to browse internet often, internet can be a vital media to access this kind of
customer. And we will also continue the advertising in daily and weekly newspapers and in
weekly and monthly magazines.
But we know in our country 80% of our people live in rural area and 90% of them are illiterate.
To attract those people we have to promote our product in different media like Radio. By this we
can also access those people who are traveling different places in a day because today in our
country the FM trend is very much popular.
Market Research: We
many things about the market situation, distribution network, competitors behavior and
behavior of the customers towards our products.
By analyzing this information we will develop our future market strategies and also try to
develop good relation with the distribution channel and our customer.
We also have to evaluate customers attitudes about our brand effectiveness. Only after this we
can think for market broadening or diversification for the newly lunched product.
Marketing Strategy
Positioning
Pran always try to position their product through image differentiation, because related
marketing, and product differentiation. Pran will use logo and short advertisement so that
people can consistently see the advertisement so the product will occupy a clear, distinctive,
and desirable place in the mind of the consumer relative to competitors product. Pran will use
USP (Unique Selling Proposition) for their product. To do brand differences that make a
better differentiation or that has the potential to create company costs as well as customer
benefits. A difference is worth establishing to the extent that it satisfies the following criteria.
Important
Distinctive
Superior
Communicable
Action Program
8.1
Available
Action
Program
for
the
new
product
In this stage of the marketing plan, we have tried to show how Pran Food Company will
carry out its marketing strategy:
December:
Thus, we will launch our product into the market from the early January; some
advertisement will be given in news papers, satellite TV channels and bill boards as well in
December to attract the prospects. This project may cost about tk. 7,00,000.
January:
Heavy advertisement will be continued that our products are available in the market. We
will organize an open concert for promoting Pran Chocolate Milk. It may cost tk.10,00,000
March:
A consumer contest will be conducted, which award ten winners to the St. Martine will trip
for
three
days.
The
planned
cost
for
the
project
is
tk.
5,00,000.
June:
Best sellers will be awarded on the basis of sales revenue. The company will take decision
about terms and conditions. The planned cost is 10,00,000.
8.2
Contingency
Action
Program
The contingency action program will be applied after evaluating the sales in August, if it will
be found that sales are not satisfactory then a sales promotion will be held. The consumers
will be allowed to buy two get one free offer for some specific period of time.
Financial projection
9.1
Sales
forecast
Since our sales increased over two years, for 2009 we have planned to internally develop a
new product that is Pran Chocolate Milk. The company will buy fresher milk from various
diary firms than competitors and introduce a diary firm to produce milk as well.
Although the company is not a major player in diary sector compared with the competitors,
we
are
spending
huge
money
in
that
sector
achieve
more
market
share.
The company depends on our dominance of the latest in technology of ergonomics and
must remain on the top of new technologies in display, input and output, and
communication and distribution.
4.2
Expense
forecast
Our expense will occur as the result of both historically successful marketing endeavors
and projected marketing programs designed to take advantage of expanding market share
and improved product lines. The initial costs are high relative to the maintain costs.
Similarly, publishing department will incur higher start-up expense than maintenance costs
after initial publication.
4.3
Marketing
Expense
Budget
Thus we are newly introducing in the market, we will emphasize our marketing expense on
advertising and sales promotion activities.
Action Program
The Pran Coconut Juicepak will be introduced in March. Following are summaries of
the action programs we will use during the first year to achieve our stated objective.
February: We will launch a Tk1000,000 trade sales promotion campaign and exhibits
at the major industry trade shows to educate dealer and generate channel support for the
product launch in March. Also, we will create buzz by providing samples to selected
product reviewer, opinion leaders, influential bloggers, and celebrities.
March: We
April: As the multimedia advertising campaign continues, we will add consumer sales
promotion such as a contest in which consumer post videos to our Web site. We will also
distribute new point-of purchases displays to support our retailers.
Then it will include gifts for distributors sales person; it will be pen and T-shirt with the
PRANs logo on it
May:
We will hold a trade sales contest offering prize for the salesperson and retail
organization that sells the most Pran Coconut Joicepak during the four- week period.
July: From 1st week of August Roja will start in 2010. In this period of time our product
sales in a good number but we want to increase that number. To achieve this goal we
have to introduce a new promotional activity from July and that will include a free item,
it will be dice with Prans logo on it. We will give one dice with our Pran Coconut
Juicepak. Customers have to collect it from their retailer.
Here we also do other promotional activities which will be related and important to
promote this campaign and this will cost 15000000tk. This campaign will last until EIDUL-FITOR.
October: In
the year from this month many festivals will take place. Like DURGA
PUJA will take place in the 1st week of this month and there will other related pujas, in
September EID-UL-AZHA will take place and in December Christmas and New Year
festive will take place
Budgets
Following is the estimated budget statement for year 2011. Our projected revenue for
2011 is 322000000/= tk. with an average wholesale price 15TK for 250ml, 28TK for 500ml
and 50TK for 1liter. And our projected sales volume will be 43000.
Tk
322000,000/=
50,00,000/=
Marketing cost
700,00,000/=
Fixed Cost
2400,00,000/=
7000,000/=
From the above graph we can analyze our break-even more clearly. We can say from here
that our break even quantity is 42000. For this reason if we produce 43000 unit then we
can have little amount of profit. And in the subsequent year 2012 we can hope for a
better profit amount.
6. Target Market
Kids are set as the target market for the Pran. There is a huge demand of juice and
drinks among the kids. So Pran RFL group decided to capture the market of kids by
this product. There is also a huge malnutrition among the kids of this country. So the
company desires to fulfill the demand by offering them a tasty and nutritious juice
item. Pran juice contains many nutritious ingredients which provide the children a
better health. So, specially the kids and children are the main target market for Pran
juice, though it is also popular among young generation.
Pran mainly target to capture the capital, Dhaka city first by their product Pran
Juice. Lately they want to market this product through the divisional dristricts.The
market growth of Pran juice is pretty high and their mission is to capture the whole
country, specially the kids. Pran group wants to deliver the Pran juice to the hand of
each children of this country and provide them a healthy and nutritious juice item.
Target users
Pran juice is under a Demographic segmentation which is the primary target market
for the certain product. The reasons behind choosing this segment as primary target
are given below:
Product
In short we can define product as anything that can be offered to a market or
consumer for attention, acquisition, use or consumption that might satisfy a need or
want. Product include more than tangible goods. In broad we can say product
includes physical objects, services, events, persons, places, organizations, ideas, or
mixes of these entities.
# Levels of product:
This product is a pure tangible good. The following are the three levels of the
product:
Core benefit remove thirst, ensure nutrition to the children.
Actual Product PRAN juice (brand name), 3 types of juice (with different
flavor, plastic and can packing.
Augmented Product free glass and straw with the purchase of family pack
etc.
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Core benefit
Core benefit is the most basic level in levels of product. When designing the product
marketers first define the core, problem solving benefits that a consumer seeks. As
we mentioned before that we have chosen PRAN juice. So before designing the
product they must have thought that what is the core benefit? The core benefit is
consumer will buy the product because remove thirst, ensure nutrition to the
children.
Actual product
At this level the product planners turn the core benefit into an actual product. In this
level they develop the product features, design, quality, brand name. As we have
selected PRAN juice, so we will be focusing on this. The product planners have
developed its features authentically so that it satisfies a consumers need. They
have developed its nutritious juice so that in future when children go to buy a new
juice then they prefer PRAN juice among the PRAN rfl group.
Augmented product
This is the last and final level. In this level market planners build augmented
product around the core benefit and actual product. Nutrition and Vitamins, Delivery
these are part of augmented product. If we talk about the classification of product
then it is consumer product. Under the consumer product it is a specialty product.
Price
The easy definition of price is that amount of money which is paid for a product or
service. if we say more clearly then price is the value which is given by a consumer
because of taking or receiving a product or service. How price is fixed? Basically
price is fixed by bargaining between buyer ands seller.
Now come to the factor which is affecting pricing decision. Pricing consideration of
decision of a company is affected by some internal factors and external factor.
These factors are.
1 Marketing Objective
2 Survival
6 Market demand
7 Pure competition
Now come to the PRAN juice pricing strategy. PRAN rfl group use product mix pricing
strategy. Under this strategy they follow optional product pricing. Optional product
pricing means the pricing of optional or accessory product along with a main
product. And our product is PRAN juice. They fix their prize in these strategies
because -2004, 2005, 2006, 2007 are not same. They are different by quality, shape
and flavor. So people who want to buy new flavors.
Because of different buyers and changing situation company has to take basic price
and adjustment strategies just like allowance and functional discount. Allowance is
received by consumer and functional discount is given by the company to the
wholesaler and reseller.
PRAN rfl group also use product-from pricing and location pricing.
Product from pricing: The company set different price for different flavor. Like
the price of PRAN mango juice can are might not be the same of PRAN orange
juicepak.
Location pricing: The Company set the price of product according to place. Like
the price of Dhaka might be the same as Chittagong.
Here given PRAN juice pricing level and competitor pricing level.
20
20
15
15
10
10
0
2004
2005
2006
2007
2004
2005
2006
2007
Place
Place include companys activity that make up the product available to target
customer. For distributing transportation, warehousing and dealer should be
selected. Without distributing channels the distribution of product can be possible,
the dealers keep and inventory of the company, demonstrate them to potential
buyers and negotiate price, close sales and service the product after sale.
PRAN juice target consumers are lower middle class children to upper class
children. And for distribution of the product they use the channels such as
wholesaler, transportation and reseller.
Now come to the number of distributing channel levels. How a product is
distributed? PRAN rfl group distributes the product in the following way:
PRAN rfl group------- Dealer ------ wholesaler -------Final consumer
SALES & DISTRIBUTION NETWORK:
To make the Groups products available at the every knock & corner of the country
PRAN has developed the best sales & distribution network all over the country.
To ensure fast & smooth distribution companies has set up 9 distribution depots &
have appointed more than 1000 dealers all over the country.
Promotion
Advertising & Promotion is the key to the marketing of any product or brand. To
cope up with the rapid & ever changing market situation & to come up with
innovative marketing strategy and ideas company has set up a full-fledged In-house
advertising agency comprises of the best talents of the country. Company spends a
large portion of their promotional budget in brand building exercises at home &
abroad.
Basically promotion is an attempt to influence. it refers to any communicational
activity used to inform, persuade and remain the target market about an
organization, its product and its activity.
Promotion mix means total marketing communication objectives. In this mix there
are 4 things. Advertising, sales promotion, personal selling and public relation are
included by which company taken attempt of advertising and achieving marketing
objectives.
Media announcement
PRAN Group believes in advertisement to cover all the remote people with their
products. Pran advertises all the products in Television at every channel and in
newspaper, which they think, bears a lot of profit for them. Their target is to
acknowledge all the people of rural and urban area around the country about all of
their products. They have become quite successful to perceive the attention of all
types of people. Even the children and aged people too.
It is a paid form of non personal presentation and promotion of ideas or services by
an identified sponger. PRAN juice pays advertising institutions for advertisement.
They use the following mediums
1 T.V
3 Radio
2 Newspapers
4 Magazine
Public relation
Building good relations with companys various publics by obtaining favorable,
publicity,
unfavorable rumors, stories and events. They also use public relation as a
promotional activity for their company.