a marketing plan of pineapple juice
DESCRIPTION
A Marketing Plan of Pineapple JuiceTRANSCRIPT
A Marketing Plan of Pineapple Juice
Executive Summary
This report is an assigned job as a partial fulfillment of course requirement by honorable Course teacher Julia Parvin , Lecturer Dept. of Marketing, Faculty of Business Administration. It is the optimum aggregated outcome of 10 pupils’ about an assignment on “Marketing Plan and Promotion Plan of a New Product.”
Bangladesh is a land of fertile. Here different types of fruits are grown. Among them Pineapple is one of the most testy and nutrias fruits. In this country there are different types of juice are being marketed by different companies. But Pineapple is unexplored area of juice production in Bangladesh. So we have decided to produce juice by pineapple and want to capture the unexplored market of juice.
----------------------------------------------------------------------------
Introduction
Every product in modern marketing era needs a proper marketing and promotion plan. So our new product of pineapple juice “Anaross” do needs a proper marketing and promotion plan. Because, these two plans are the best way to get best selling 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 Assignment:
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 objective helps in preparation of well decorated report in which others take the right type of decision. So, identifying objectives is very much important. Our purpose of preparing the assignment 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 ReportAs a student of faculty of Business Administration and Management, this is our first initiative for
making a report on “New Product Development & Develop a Marketing & Promotion Plan”. Although we have completed the report we had some obstacles in preparing this report:
Lack of practical experience Lack of sufficient books & journal
Shortage of time
Product overview:Product overview includes categories of product, raw-materials of product and also the
nutritional value of the pineapple 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 Normal pack junior pack
Raw materials of juice: The main raw material for our juice is fresh pineapple.
The other materials are: Pineapple Water sugar
Xanthan Gum Citric Acid Vitamin A Vitamin C
Sodium Benzoate Approved Preservatives
Natural Identical Pineapple 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 namePrime cost
Variable cost
Fixed Overheads
Per Unit Total Cost
profit
Margin Selling Price/uni
t
Retailers selling price
Junior pineapple
juice( 120ml)
4 3.75 0.25 8 2 25% 10 13
Pineapple juice(250ml)
9 5.25 0.25 14.5 2.5 17% 17 20
Pineapple juice(500ml)
19 9.75 0.25 29 3 10% 32 36
Pineapple juice (1liter)
39 15.25 0.25 54.5 5.5 10% 60 65
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
theRupgong 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 Rupgangthat’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 Rupjangthe access of
transportation is very good. There are 2 types of transportation system which are available inRupjang.Those are:
Water way Road transportation
Sources of raw materials:
Basically pineapples are produced in hill area. In Bangladesh the pineapples are found in Sylhet, Chittagong & modupur in Dhaka.
NAME OF THE SUPPLIERS Of RAW MATERIALS:
1. Mr. JamilHossain, (pineapple Suppliers), Office: 34/4, Chittagong.
2. Mr. subedierali, (pineapple Suppliers), Office: 15/4, Olonker Mor,sylhet.
3. MR.ramgopal (pineapple suppliers), office 26, haji mohasin road, sylhet.
Labor situation:Labor is an important element in manufacturing process. So supply of labor, Wage of labor is important factors .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
Financial Overview
As we will start our business in the year of 2011, we can’t expect a huge sales as well as huge profits. But our market 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 business our mission should be emphasis on
promotional activities and recognizing the product at every level.
Now we are showing our three years projected plan
Description 2011 2012 2013
sales Revenue: 120 ml
250 ml
500ml
1ltr
total
(3,00,000*10)=30,00,000+
(4,50,000*17)=76,50,000+
(1,20,000*32)=38,40,000+
(1,30,000*60)=78,00,000+
=22290000
(450000*10)= 4500000+(6,00,000*17)=
10200000+(180000*32)= 5760000+(200000*60)= 12000000+
=3,24,60,000
(5,00,000*13)= 65,00,000+
(700000*20)= 140,00,000+
(200,000*36)= 7200000+
(2,20,000*65)= 143,00,000
=420,00,000
Variable Cost (Raw-materials, marketing,
advertising, Promotion)
(300000*3.75)= 11,25,000+
(450000*5.25)= 23,62,500+
(120000*9.75)= 11,70,000+
(130000*15.25)= 19,82,500+=6640000
(450000*3.75)= 1687500(6,00,000*5.25)=3150000(180000*9.75)= 1755000(200,000*15.25)=3050000
=96,42,500
(500000*3.75)= 1875000
(700000*5.25)= 3675000
(200000*9.75)= 1950000
(220000*15.25)= 335500010855000
Contribution margin 15650000 22817500 31145000
Fixed Cost ( Land, Factory, Office,
Storage, Machine)
1,00,00,000 10000000 10000000
Total Cost 16640000 19642500 20855000
Profit Margin 5650000 1,28,17,500 21145000
Fig: Per year unit sales according to product category
Fig: Yearly Profit margin
Sources & uses of fund:This section describes the sources of fund & their uses.
We have 10 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, 00,000Computer printer: 6, 00,000
Covered van& transportation cost: 20, 00,000Air condition: 2, 50,000
Photocopy machine: 3, 00,000Furniture: 5, 00,000
Land & building: 25, 00,000
Variable cost: 7000000Cash 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 perform that. There are some primary activities (planning, permeation
from Government) that we assume& we have already performed.
Fig: Implementation time
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
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 subsequent 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 Bangladesh’s market, but also the global marketplace competitive. In theBangladesh’s Marketing situation, the market success goes to those companies that are best matched to the current environmental imperatives. Those companies that can deliver what the
people want and can delight the Bangladesh’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:
Name position
Pran 18%
Frootica 17%
Froto 12%
Shezan 8%
Slice 13%
Acme 12%
Others 15%
Empty 5%
Fig: Current market shareMarketing 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,Opportunities, 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 companies 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 analysis, 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.
WeaknessStrength
OpportunitiesThreatsSWOT
Figure: SWOT analysis
Here we have given SWOT of our pineapple juice:
1. Strength: Quality product.
The Product has a great nutritional value. Well distributional channel. Skilled management system,
Proper accounting system. Foresighted marketing department.
2. Weakness: lack of experience Shortage of capital
Small scale production
3. 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 StrategySegmentation:
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)
Target market:
A marketer can rarely satisfy everyone. Not everyone likes the same thing. Therefore marketers start by dividing 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, technological 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 positioning in the minds of their target market for its product, brand, or
organization. It is the relative competitive 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 targeted 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 strategy 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 product 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 channel2. Vertical marketing channel
3. Horizontal Marketing channel4. Hybrid Marketing channel
We select the conventional marketing channel to distribute our product. Our juice will be distributed by the specified 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 distribution2. Intensive distribution3. Exclusive distribution
We choose the intensive distribution for our product. We will supply our product all over the country on the basis of our product demand so that the consumer can get the product easily.
The distribution channel is given below:Our firmFinal consumerRetailersWholesalerAuthorized dealer
FIG: Distribution channel
Promotional activity:
We make promotional activities for our product in different school, college, various quiz competitions, debates, and so on.
Advertisements will be given in television, radio, internet, magazine, newspapers, and billboards. Advertising 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 ect
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 system. 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 “pineapple juice” will work hard to implement reasonable suggestions in order to improve their service offerings, 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
ConclusionA 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.
ReferenceBibliography:
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
Website1. www.bplan.com
2. www.scribd .com
3. www.tatamcgrawhill.com