A MARKETING PLAN

OF

SAHARA NEPAL Pvt. Ltd.

Submitted To: Mr. Kashayap Shakaya(Instructor, Marketing management)

Institute of Banking and Management Studies

Prepared By:Amrita Chaudhari

Manoj GyawaliPranav JoshiPratik RegmiRinku Shah

Tola Kanta Neupane

ACKNOWLEDGEMENT

This project report has been prepared after knowing various aspects of Marketing

management and its application in various organizations with keen interest. Some

guidance and hints were taken from the institution concerned to this field. The data

included in this report were gathered primarily and secondarily. The carefulness and

attention is focused on the fact that the report is prepared with the purpose of conducting

a new business in the valley.

This project report owes its existence due to the intelligent guidance, invaluable

suggestions and kind co-operation of College. There lies our first and foremost obligation

and gratitude.

We would like to offer our hearty thanks to all the staffs of library of IB&MS College

who helped us to gather information by providing various report and books. We must not

forget our colleagues for their suggestions and feed back regarding the report. We would

like to remember all the known and unknown persons who have contributed to prepare

this report in this form. Last but not least our special thanks go to our Marketing

Management instructor Mr. Kashayap Shakaya whose class lectures and proved indeed a

great help for us in writing this report.

Thank you.

II

EXECUTIVE SUMMARY

Sahara Nepal Pvt. Ltd., a newly established company, is offering its first herbal product

named “Sahara” in the market. The short-run objective of the company is to gain market

leadership in domestic market by offering Sahara and other herbal products gradually.

The long run objective of the firm is to offer its product in global market and to gain a

substantial market share globally.

From the broad analysis of external environmental factor such as customer, competitor,

market and environment as well as from expected internal performance analysis, quality

product with low price, product in spray form and less burning in external use are found

as strengths were as lack of experience in this field and difficulty to obtain economies of

scale in short run are our weaknesses. In short run our company is depending only on a

single product “Sahara” which can also be considered as a weakness. The increasing

trend in people to use the herbal medicine instead of allopathic medicines and availability

of raw materials locally can be the opportunities for us. Since Nepal has also been a

member of WTO, it may be an opportunity for the firm to enter into the global market.

But at the same time, foreign competitors may be threat for us.

To achieve the firm’s goals as well as to ensure the proper implementation of the

strategy, various resources of the firm will be utilized to properly, especially human

resource. Also the efficient leadership will be provided. From time to time, evaluation of

our performance will be done on the basis of preset standard. Various control mechanism

such as budgetary control, operational control, etc are established in the firm.

Regular feedback will be taken from the firm’s stakeholders to enhance the performance

of the firm.

III

Table of Contents

ACKNOWLEDGEMENT..................................................................................................IIEXECUTIVE SUMMARY...............................................................................................IIISTRATEGIC MARKETING ANALYSIS OF SAHARA NEPAL....................................1PART I: BACKGROUND OF SAHARA NEPAL Pvt. Ltd..............................................2

1.1 COMPANY INTRODUCTION............................................................................21.2 Capital structure:....................................................................................................21.3 MISSION...............................................................................................................31.4 VISION..................................................................................................................31.5 Objectives of the Sahara Nepal Pvt. Ltd.:..............................................................31.6 Sahara Nepal Pvt. Ltd. targeted goals for next ten years.......................................41.7 Organizational Chart..............................................................................................5

Part II: EXTERNAL ANALYSIS.......................................................................................62.1 CUSTOMER ANALYSES........................................................................................6

2.1.1 Market Segmentation:.........................................................................................62.1.2 Customer Motivation:.........................................................................................72.1.3 UNMET NEEDS:...............................................................................................7

2.2 COMPETITOR ANALYSIS.....................................................................................82.3 MARKET ANALYSIS..............................................................................................92.4 PEST ANALYSIS...................................................................................................102.5 SWOT Analysis.......................................................................................................11

PART III: INTERNAL ANALYSIS.................................................................................133.1 PERFORMANCE ANALYSIS...............................................................................133.2 Organizational Capabilities and Constraints:..........................................................13

PART IV: IDENTIFICATION AND SELECTION OF STRATEGIC............................154.1 STRATEGY ON CREATING SCAs......................................................................154.2 DIFFERENTIATION STRATEGY........................................................................154.3 DIVERSIFICATION STRATEGY.........................................................................164.4 GROWTH STRATEGY:.........................................................................................164.5 GLOBALIZATION STRATEGY...........................................................................17

PART V: MARKETING STREATEGY..........................................................................185.1 PLANNING FOR PRODUCT................................................................................185.2 PLANNING FOR PRICING...................................................................................195.3 PLANNING FOR DISTRIBUTION AND LOGISTIC SUPPORT SYSTEM.......205.4 PLANNING FOR PROMOTION...........................................................................20

PART VI: IMPLEMENTATION & CONTROL..............................................................226.1 IMPLEMENTATION OF STRATEGY/MARKETING DECISION.....................226.2 EVALUATION CONTROL & FEEDBACK.........................................................23

Appendix...........................................................................................................................25Questionnaire for Information Collection.....................................................................25

IV

About of the Project

The project involves developing a marketing plan for herbal medicine industry. It covers

marketing, management, production and financial aspects of the business as well as the

emerging need of herbs and its demand in the market.

Rationale behind choosing herbal medicine as a product:

Nepal is rich in herbs but it has not been properly utilized and mobilized in productive

sector. The industries established in other manufacturing sectors and service sectors has

been gradually increasing in Nepal but involvement of industries in this sector is

negligible. Analyzing the current scenario of Nepalese market more than half of the

demand has been fulfilled by the International Market. It is found that herbs medicine has

very little side effects in comparison of drugs and the trend of people is also inclining

towards herbal medicine. There is seen a lot of possibility to manufacture herbal

medicine in Nepal by utilizing locally available herbs and also the possibility of sharing

International market.

Focus of the study

The main focus of the study is to prepare a perfect master plan for herbal medicine

manufacturing firm based on the realistic forecast and reasonable assumptions. The task

is to make a business plan for Sahara Nepal Pvt. Ltd. starting from a ground level to

bringing a reasonable rate of return.

Objective of the study

1. To make a perfect marketing plan for Sahara Nepal Pvt. Ltd.

2. To apply a concept of marketing management in formulating required marketing

strategies for the firm.

3. To convince investors to support and invest.

4. To outline the strategies to make this business a success.

V

Methodology

For the purpose of completion of this project we have obtained data from both the

primary and secondary source. The data collected are evaluated effectively and converted

into information. The primary source of data consists of obtaining information from the

customers from questionnaire and concerned department of organization by interviewing.

The secondary source of data consists of the journals, articles, web-site, and other forms

of data that directly or indirectly helped us in the preparation of this report.

Data collected from both the sources have strengths and weaknesses. Despite of the

strengths and weaknesses, both the methods can be implied effectively under different

circumstances and also enable researchers to have a clearer understanding of the study.

Limitations of the Study

Every project work may be hindered with some restrain which will create a boundary

within itself resulting limitation on knowledge on subject area. In relation to the

limitation, this study had hinder from below mentioned factors,

1. Less background of the related area in Nepalese context.

2. There were no bases for the comparison.

3. The degree of validity of the information provided totally depends on the provider

of the information.

4. Time constraints.

VI

STRATEGIC MARKETING ANALYSIS OF SAHARA NEPAL Pvt. Ltd.,A HERBAL INDUSTRY IN NEPAL

1

PART I: BACKGROUND OF SAHARA NEPAL Pvt. Ltd.

1.1 COMPANY INTRODUCTIONIt is one of the potential and less exploited industry in Nepal. The availability of

resources (herbs) locally had made sector more potential. The increasing awareness of the

people towards the side effect of allopathic medicine has made people to switch towards

the use of herbal medicine. The major domestic participants of this industry in Nepal

whose product are:

Sancho

Bojomint

Our company, Sahara Nepal Pvt. Ltd. will start operating from January 1, 2011 under

Nepal Company Act 2063. The head office and the main manufacturing plant of this

company will be located in Nawal-Parasi, Nepal. Our company aims to deal with herbal

products and it will soon launched a product named “Sahara” with the purpose of curing

cold, cough, headache, body ache, toothache and all kinds of body odor problem.

1.2 Capital structure:

Nature of capital Amount (Rs)

Equity 1,36,00,000

Debt 34,00,000

Total 1,70,00,000

2

80%

20%

Equity

Debt

1.3 MISSIONOur mission is to grow and dominate the Nepali herbal market by exceeding customer

expectation by providing quality products with fair price to improve quality of customer

life by designing, building, and marketing best herbal products in the world.

1.4 VISIONOur company aims to enter the global market by creating strategic alliances with foreign

based international company. Our company aims in stretching as well as filling the herbal

product line in the upcoming years.

1.5 Objectives of the Sahara Nepal Pvt. Ltd.:Short-run Objectives:

To gain the domestic market share

To provide employment

To avoid risk

To use of local resources

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To familiarize the product in the domestic market

Long –run Objectives:

To be growth oriented

Increase market share

Related diversification

Creating strategic alliances to enter global market

Market leadership

1.6 Sahara Nepal Pvt. Ltd. targeted goals for next ten yearsTime-period Company’s targeted goals

2011-2013 Concentrating on domestic market and fulfilling the domestic

customer needs and wants

2014- 2015 To be the market leader in our product

2016- 2017

Entering South Asian Region with the existing product as well as

producing other herbal products with concentration in the domestic

market

2018- 2020 Creating alliances and entering into the global market with all our

offerings

4

1.7 Organizational Chart

5

BOD

Finance Department

Human Resource Department

Marketing Department &Research and Development

Production Department

Legal Department

CEO

Advertising & Promotion

Distribution Department

Research and Development

CRM

Procurement

Store keeping

Production Engineer

Finance

Accounting

Part II: EXTERNAL ANALYSIS

2.1 CUSTOMER ANALYSESThe goal of external analysis is to influence strategy by identifying strategy; by

identifying opportunities, threats, trends, and strategic uncertainties. Its ultimate goal is to

improve strategic choices-decisions as to where and how to compete.

Customer analysis involves an examination of customer segmentation, motivation and

unmet needs.

2.1.1 Market Segmentation:Segmentation means the identification of customer needs that can support price/quality

dimension, customer loyalty, and applications. Segmentation is often the key to

developing a sustainable competitive advantage based on differentiation, low cost, or a

focus strategy.

Our biggest customers are Indian market and Chinese market. These two markets are one

of the biggest markets in the world, so Nepal being in-between these two big nations have

an SCA to easily grab the market share of these countries. Our product Sahara is a

product similar to “Sancho”, “Bojomint” and “Tiger Bam” which relieves people from

cold, cough, pain, headaches etc. Tiger Bam being one of the pioneers in this sought of

herbal product of similar features has been able to gain huge market share all over the

world and is globalize. Our product with more SCA’s then Tiger Bam aims to penetrate

the market share of tiger bam and gain other new customers too analyzing the needs and

wants of the customer.

Our target customers are Middle income level and lower income level customers since

our product is not so expensive and can be easily affordable in compared to allopathic

and other herbal products. Basically people who are aware of the side effects caused by

allopathic medicines and don’t prefer to take chemicals are our target segment. People of

high income level are very conscious about there health so they prefer to get well soon

rather then looking at the side effects but due to awareness programs they have become

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quite serious about it so these high income level customers can be our potential

customers.

2.1.2 Customer Motivation:Once we have segmented market we move on to customer motivation which is main

reason behind their purchase decisions. Customer motivation differs with the difference

in market segment. Here our product "Sahara" is herbal product which has its own

motivating factors which is described in following paragraph.

The major SCA of our product it that it has no side effects and satisfies customer with

relief and customer loyalty. Our product is comparatively cheaper to other herbal

products which would motivate customers to consume it more frequently. Sahara name

itself means life giving herbs so it indicates and motivates the customer to feel satisfied.

Our product schemes are very motivating and encourage targeted customers as well as

potential customers to use our product. Our product guarantees immediate relief of pain

and care diseases such as cold, cough, headache etc. Our packaging of product and

spraying features built convenience to the customers in any part of the body.

2.1.3 UNMET NEEDS:An unmet need is a customer need that is not being met by the existing product offerings.

Unmet needs are strategically important because they represent opportunities for firms to

increase their market share, break into a market, or create and own new market. They can

also represent threats to established firms in that they can be a lever that enables

competitors to disrupt an established position.

One of the major unmet needs of our company is lagging of Technological development

in production of this kind of herbal products. Inventions of new technological

machineries to enhance productivity and fix the exact proportion of compositions are

very much essential need.

Most of the raw materials needed in composition of our product are resource constraint;

it even takes years and years to generate the raw materials. So it is a long run investment

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and needs more devotion in planning for long run goal and planting of herbs should be

processed accordingly. This sought of herbal products need to built trust among the

customers since it doesn’t give immediate relief to the victims or patients.

Herbal products are slow relief product which cares the patient not only from outer

health but even through inbuilt cure. It even builds resistance power to certain diseases in

customers’ body. We can even use it for precautions to certain diseases which we feel can

occur in our health.

2.2 COMPETITOR ANALYSISIn this part of our analyses we will be looking into identification of the competitors

(current and potential), cost structure, strength and weakness, image, performance,

positioning strategy and their market accessibility.

There are two major domestic competitor with their product Sancho and Bojomint.

Sancho:

Sancho is the product of Nepal Jadibutti Utpadhan Kendra. The price of Sancho is Rs. 15

which is too for Bojomint. In this product Sancho has been able to capture larger portion

of market share and its major strength are its brand image, accessibility, quality and price.

The company has been successful in gaining a large market share with in a short period

of time. It has been able to create a good image for its product in the eyes of customer. Its

major weaknesses is its packaging and promotional activities. Packaging of the product is

not so good which has resulted in large amount of leakages. The promotional activities

which the company has been using are only radio.

Bojomint :

It is a newly established company and has been using radio, F.M as promotional

activities. It is in its growing phase so it is not a big threat for us as a competitor. People

are not aware about the product and company.

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2.3 MARKET ANALYSISThe primary objective of market analyses is to determine the attractiveness of the market

or sub- market for current and potential participants.

Size and growth:

For the next four years we will be concentrating on the domestic market. So the entire

country is our market. Our market comprises of three regions terai, mountain and hilly

region. The survey shows there has been a shift in the consumption of herbal products

from allopathic (zero side effect). In this industry fewer competitor so there is high

probability for higher growth.

Profitability:

There are few companies in this industry which reflects less intensive competitors. The

resources are accessible within the country at a competitive price. So the bargaining

power of supplier is low. There are almost 2-3 substitute products. So the consumer

choice is limited, providing a similar product with superior quality at a competitive price.

This will surely be accepted and contribute to our profit.

Distribution system:

We have decided to set up 14 distribution system in14 zones. The main reason behind

this is easy accessibility of product throughout the country. The distribution center is paid

commission according to their sales volume. The distribution system located in the 14

zones also provides logistic support to other sub-distributors.

Market trends:

There are three major trends evolving in the herbal products. They are:

Increased price sensitivity

Concern to the health

Changing attitude of people toward herbal product

So, to cope with these market trends; we have decided to assign price which is lower in

comparison with other similar products. There has been an increasing awareness about

health. Our company has decided to develop product which have decided to develop

product which have mild effect on eyes, nose etc. There has been an increasing trend in

the shift of herbal product from allopathic. So, there is a good scope for the product.

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2.4 PEST ANALYSIS

Political and Legal environment:

As the herbal industry is very attractive, foreign companies may enter and exploit this

industry. So, the government should have a provision for restricting these companies.

Export duty should be minimal so that our product can compete in the global market. The

rules and regulation for our industry should be consistent so that the political instability

may not have any adverse effect.

The tax holiday for 5 years for small and cottage industries that have been using local

resources provided by law of Nepal is an encouraging prospect for our industry.

Economic environment:

The economic condition of our country is moving towards recession. So, taking this into

account our company has decided to price the product competitively.

There has been a shift in the people preference products. So the demand for herbal

products is in majority.

People have low income. So, they prefer multipurpose product, which can be one

encouraging factor for us.

Socio-cultural environment:

Changing trends of customer towards encouraging the domestic product as it creates the

employment opportunity and use of local resource.

People have the habit of buying multipurpose product rather than buying single purpose

product due to their low purchasing power.

Technological:

Promotion through Internet (creating websites) can help us to expand our market. It is

also one of the cheapest promotional tools with global market coverage.

Internet technology can be used to collect the sales data from the entire distribution center

for daily update, which will also help us to gather the information about the demand for

our product in different regions.

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2.5 SWOT Analysis

Strength:

Location of our company is well suited for collecting the required resources for

our product. This has helped the company to reduce collection and transportation

charges, and enabling the company to charge lower prices.

Use of IT in collecting and disseminating the information and in attaining the

broader market coverage is strength of the company.

Distribution center in all the 14 zones allows the company to meet the market

demand conveniently.

The owner has invested more funds so they will be high level of motivation for

successful performance of the company.

Timely automated machine are been used to ensure the increase in productivity.

Weakness:

Management with sound knowledge and less experience

Hand to obtain economies of scale in short run

Less broad awareness to the people

Underdeveloped infrastructure

Opportunities:

Increasing trend of the people towards consuming herbal product can be one of

the opportunities for a country

Availability of resources in the local market

Pricing of the product in lower as compared to competitor product which may

help in widen market coverage.

Allopathic medicines have side effect so people are conscious about it and may

substitute it with herbal product.

Threats:

11

The industry is very attractive so, there is high possibility of new entrants.

Allopathic medicines have faster reaction in curing diseases and scientifically

proved.

People are more motivated towards these medicines though some of these

medicines may have side effect.

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PART III: INTERNAL ANALYSIS

3.1 PERFORMANCE ANALYSISPerformance analysis covers the area of how the company will perform in market and

sales and profitability area.

Projected Sales and Profitability

An expected sale for year 2011 is 800000 units and in this year the company will gain no

profit rather will realize some loss, since huge amount can be spent on promotional

expenses. From 2012, our sales will increase by 23% because quite awareness can be

raised about our product and company can overcome BEP point. Due to lower price in

comparison of competitors and good quality, the increase rate in sales and profitability

will grow rapidly. In the year of establishment our market share in the whole industry

will be about 10% and further expected to increase the market share by 40% up to year

2014 in Nepal.

Determination of Strategic Option

The present capital investment requirement is Rs 17000000 out of which Rs 1.36 crore

will be financed by six founder member and rest capital will be raised from bank

financing. Since our company is a manufacturing firm 70% of the total capital is invested

in fixed assets and 30% in working capital.

Since our company is private limited company and expected to be a growing company,

there will be a financial need for it but at that time raising fund may be crucial.

3.2 Organizational Capabilities and Constraints:The structure of the company is of flattered structure rather than pyramid structure and

there are only three level of hierarchy. Due to less hierarchy in the firm, there will be fast

communication among organizational member which may result in organization

efficiency.

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Our company is founded by fresh MBA graduate who possesses sound knowledge of

management both theoretically as well as practically which may be helpful to run the firm

effectively in modern perspective.

It may be difficult to get the expert related with herbs. Since we are launching only a

single product in herbal product line, ‘Sahara’s’ life may be uncertain.

Organizational Strength:

This company is well managed with well qualified managers. More fund is invested by

owners, they are more motivated for work. Timely automated machines will be used

which may be helpful in increasing productivity. Our organization is located in Chitwan

which is the centre of our country as well the Indian border is also very close, so it will

help us in distribution of goods.

Organizational weakness

Management with sound knowledge but less experience. Since the competition is very

intense it will be very difficult to obtain economies of scale in short run.

14

PART IV: IDENTIFICATION AND SELECTION OF STRATEGIC

4.1 STRATEGY ON CREATING SCAsOur company’s competition with competitors will be mainly on product level. The

location of the manufacturing plant of factory can generate SCA to the company. It is

located bin Chitwan and this place is like a center for reaching all direction of Nepal.

Manufacturing in Chitwan enables the company to distribute its product in east, west,

north and south easily. Operating company in Chitwan enables the company for easy

access to raw materials. Chitwan it self is a good place for launching the product. Since

we are charging only Rs.12 per unit, it is relatively less than that of competitors which

can be a SCA for us. Technically we will be ahead than other competitors since we are

doing production by using new technology and modern plants and this may help to

increase productivity and efficiency in production. Our strategies formulated for the

company will not be rigid (i.e. they will be flexible as well as real time based). Apart

from product level competition, our company’s competition with competitors will be also

a capability based competition because we are using latest modern technology in

processing. We are doing the publicity of our product web site also which can help our

company to introduce and recognize it in world market.

4.2 DIFFERENTIATION STRATEGYDifferentiation is the process of adding a set of meaningful and valued differences to

distinguish the company’s offering form competitors. Our major differentiation of our

product “Sahara” in its product form i.e. our product will be placed in front of customer

in bottle that can be used as spray. The spray form of the product has two benefits

(1) It is easier to use and apply

(2) It can also be used in drop form by only removing its spray cap.

Another important feature of our product is that it is less staunch in use than of our

competitor’s product such as SANCHO. SANCHO is quite hard and reactive if it applied

15

in external body organs but our “Sahara” is quite mild and can be used in external parts

of body without negative effect.

Our product will be sold at Rs12 in retail where as competitors are offering the same for

Rs. 15 so, offering product at a price less than our competitor will be our strategy to

differentiate our product.

4.3 DIVERSIFICATION STRATEGYDiversification is the strategy of entering product markets different from those in which

firm is currently engaged as well as offering the product with different features but of

different nature.

Our main diversification will be mainly on only herb related products. Our further

diversified product will be herbal toothpaste, herbal creams, herbal oils, herbal shampoo,

chawanparash and other product as per customer needs. The rational for choosing

diversified herbal product is that by doing so we can be able to specialize in herbal

products and this may help us to become market leader in herbal product sector. Our

brand policy will be of umbrella brand in case of related diversification.

4.4 GROWTH STRATEGY:Regarding the growth strategy of our company we will not only try to share the

competitors market but we also focus on creating as well as entering into new markets.

For this growth, first of all we will try to create efficiency in local market with massive

promotion which may result in brand awareness. And when the brand image is formed

then it will help us to make growth in market. Also for our growth, our strategy focus as

to maximize customer delivered value that may help in creating loyalty in customers.

Our growth strategies for our product in the course of time:

Time Duration Products

2011-2012 "Sahara" (A multi-purpose herbal medicine)

2013-2014 Sahara + Herbal Shampoo

2015-2016 Sahara + Herbal Shampoo + Herbal Oil

2017-2018 Sahara + Herbal Shampoo + Herbal Oil + Herbal Paste

2018- 2020 Sahara + Herbal Shampoo + Herbal Oil + Herbal Paste +

Herbal Chawanprash

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4.5 GLOBALIZATION STRATEGYGlobalization strategy is the strategy that is different from multi-domestic strategy and

separate strategies are developed for different countries and implemented autonomously.

The very first step for going global is to do publicity of our product through website. And

in this website, the benefits to be obtained by using our herbal products will be stated

clearly. In this course of going global, at first we try to be a market leader in our domestic

market leader, then approach to Asian market and ultimately approach to the global

market.

Our important step in this regard is to create strategic alliance with famous multi-national

company and selling the product in their brand name.

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PART V: MARKETING STREATEGY

5.1 PLANNING FOR PRODUCTProduct is anything that can be offered to a market for attention, acquisition, use or

consumption that might satisfy a want or need and can be tangible as well as intangible.

The name of our product is “Sahara" herbal medicine. Regarding its attributes, it is a

liquid spray and it contains less smell in comparison of other its competitive products.

A spray bottle of Sahara contains 10 ml of the herbal medicine. Its medicine container or

bottle is made up of glass. Our product has three levels of packaging, first glass, second

bottle wrapper and next is cartoon for packing a bulk of medicine bottles.

Brand is a name, term, sign, symbol or a design or a combination of all these intended to

identify good or service of one seller or a group of seller differentiates the product from

the competitors'. Since in future, we are planning to go for product diversification; we

will go for umbrella branding.

As for the support service, direction for using the herbal product as well as problems or

diseases that can be cured by this medicine is also being clearly mentioned in the

packaging of the product.

Both product lines filling as well as product line stretching strategies will be adopted

because the company is planning to offer a different range of product. Such as, herbal

shampoo of different weights as per the product stretches strategy and offering herbal

toothpaste, herbal oil etc as per the product filling strategy. For the new product

development and necessary modification in the existing product of the company, a

separate research and development department is established in the company.

Every product has its own life cycle. In case of Sahara and its other product, in each stage

of the product life cycle, necessary modification will be done in the product as per the

need and taste of the customer.

Regarding new product development decision, our company will keep on developing new

products as suggested by the research and development department. This research and

development will continuously find the unmet needs of customers and will do the market

18

survey regularly. For this purpose, we will use the feedback of customers and this sort of

feedbacks can be gathered from e-mail as well as from post box.

For international product and service marketing decisions, we will supply our product to

our strategic alliance partner and our that partner will offer our herbal product in

respective market by customizing brand and packaging as well as communication as per

their local need.

5.2 PLANNING FOR PRICINGPrice is the amount of money charged for a product or service or the sum of values that

consumer exchange for the benefit of having or using the product of service. Price is only

the element of marketing mix that that produce revenue. While determining the price of

the product we have considered the marketing objective of gaining larger market share as

well as low manufacturing cost to sustain as well as survive in short run and growing in

long run by obtaining economies of scale.

As far the external factors are concerned, we have considered market demand and

competition for determining the product price. We have calculated the price of our

product by predicting how much we will be selling and producing and how much will be

the cost of producing those units. So we have determined the price of our product to

cover its costs. Factors like political-legal, economic, socio-culture as well as

technological may fluctuate the price of our product.

Regarding the general pricing approaches of our product, for the first two years, we are

charging the price to obtain only the break-even point. After that, we will charge the price

on mark-up basis.

For this , we have selected marketing penetration pricing strategy because we have

targeted middle and lower income level people as well as our objective is to gain larger

market share by charging lower price than the competitors'.

Necessary price adjustment can be done according to the situation to specific customers.

Such as, if any customer purchases more than certain specified quantity and if he is a

genuine customer, we will provide them quantity as well as price discounts.

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5.3 PLANNING FOR DISTRIBUTION AND LOGISTIC SUPPORT SYSTEMThe task involved in planning, implementing and controlling the physical flow of

material, final goods and related information from point of origin to point of consumption

to meet customer requirements. Indirect distribution channel are selected for the physical

flow of the goods.

In short run, especially in Nepal's local market, four members of channel of distribution

can be used. But in the long run, after being entered in globalize market; goods can be

distributed through agent, wholesaler and retailer.

In short run, the product is directly provided to wholesaler, then to retailer and then to

ultimate consumer. But in long run, especially after being entered into global market,

agents will be appointed in the market country because agents are better aware about their

local situation of their market and this can help in efficient distribution of the product.

Required raw material for the product can be obtained from the herbal dealers who gather

all these sorts of raw materials from various and scattered farmers.

The objective of our logistics system will be to maximize customer service at controlled

level of cost.

For the physical flow of our good or herbal product, initially we go on contract with

Transport Company for it and in coming years, we have planned to acquire our own

means of transportation for the distribution.

While selecting the distributor for our product, following things can be considered:

1) Their experience in the distribution field

2) Their assets competencies & facilities for distribution

3) Their business network with the business firms of that locality.

In order to motivate the channel members, special tour packages will be offered to than if

their sales of our product exceed certain specified limit.

5.4 PLANNING FOR PROMOTIONPromotional management involves coordinating the promotional mix, elements to

develop a controlled integrated program of effective marking communication.

Major promotional tools

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Advertising: Radio, newspaper, pamphlets, TV, website, Hoarding Board in the places

like Bus Park, airport, in side of highways.

In case of new product, people are not easily ready to accept the product although they

know about it. For this, door-to-door sales person can be appointed so that can contribute

to convince the people about one product as well as explain various details of the product.

From time to time, sales exhibition will be done in different places.

In special occasions, the company can provide sponsorship of various programs keeping

in mind review of publicity as well as social welfare both.

In the initial year of one product launch massive promotions expenses can be done & in

coming years situation promotions schemes can be applied.

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PART VI: IMPLEMENTATION & CONTROL

6.1 IMPLEMENTATION OF STRATEGY/MARKETING DECISIONFormulation of the marketing strategies is not sufficient in itself, effective

implementation of the strategies is equally important in order to achieve the sub-goals.

Efficient leadership is one of key aspect of implementing marketing strategies. Since our

organization is to be managed by fresh MBA graduates with practical knowledge about

management & leadership. They can get best out of people & can deal with unexpected

situation very tactfully. They can help to create a good working environment within the

organization.

A specific corporate within can be developed in the organization so that performance can

be carried out smoothly. While developing the corporate cultures, the value and beliefs of

organizational member are also considered so that a good quality of work life can be

provided. Such a system can be created on which free flow of communication can occur

among the various hierarchal post of the organization so that every problem can be solved

easily. For this, our organization structure is flattened. To ease the implementation of the

strategies & for better performance, each & every staffs authority & responsibilities in the

organization is clearly defined.The decision-making criteria for our company will be both

controlled as well as decentralized. Decentralized decision-making can be done on the

routine type’s activities so that those activities cannot be postponed in the absence of

decision. For the important & crucial matters & in case of new problems, the centralized

decision-making will be done.

The optimum & decretory use of resources is important for the proper implementation of

strategy as well as to achieve the targeted goals. GM’s in the organization can be

arranged in suitable proportion so that implementation of the strategy cannot be blocked

with a lack of any one of the resources.

Systems are important in the organization to aid in management decision-making. Our

aim in the organization is to make over organization as a paperless organization by

implement. Management as well as marketing information system, Further proper

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accounts & budget system, HRM system planning & forecasting system is developed for

facilitating implementation.

6.2 EVALUATION CONTROL & FEEDBACKMonitoring, evaluation & control is very much important to measure the effectiveness of

the implementation of plan & feedback is equally important for making necessary

improvement in the strategic plan. For the financial control in the organization, primary

standards for doing expenses are set through the method of budgeting & in the course of

time actual performance in cost are compared with standard fixed as per budget. By

doing so, our position in the performance can be easily known & if there is cost over

applied, there can be done control over it. If there will be need of doing any new

expenses, then it can be done by getting the approval of concerned authority.

For the operation control i.e., control in the expenses incurred in the production process,

first of all a standard of raw material is determined for per unit output of finished good as

well as standards for labor & overhead is also determined for the efficiency in

production. Moreover, after actual production, that is compared with standard set above.

So that we can easily find out where the deviation is there in output from standard &

necessary amendments & corrective measures can be applied there.

For the control of the human resource in organization, both positive as well as negative

motivational methods can be applied to them. Each & every person’s activities &

performance will be monitored carefully & it is analyzed that how much their activities is

contributing in achieving organizations goal. The one who is doing good with job will be

rewarded & the one who is doing poor performance in the organization can be threatened

to be find for job & he can’t improve his performance, then he can be fired out.

The major but indirect source of feedback in the company to know how effective it’s

marketing strategy is the condition of sales & profitability.

Surveys will be done about the products customer to gather their view & perception about

the product so that corrective measures can be applied in product features as well as in

marketing plan. The periodic target goals & actually achieved goals will be compared &

if there is found deviation, the reason for that deviation will be traced & further it will be

tried to know where we have lacked on achieving that present target & further steps will

be placed as per revised strategy. Regular customer feedback & employee feedback will

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be taken to know the effectiveness as well as shortcomings of marketing plan that will be

a vision for moving ahead.

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Appendix

Questionnaire for Information Collection

1. Are you believed in herbal product?

Yes / No

2. If yes, what are the major products you used?

Soap Shampoo Toothpaste Medicine others

3. In medicine area what are the major product you use daily basis as soft medicine?

Sancho Bojhomint Jhandu Bam Tiger Bam others

4. On an average how frequently you purchase this medicine?

Weekly 15 days Monthly More than 1 months

5. Why do you prefer herbal products than others?

…………………………………………………………………………………………

…………………………………………………………………………………

6. Are you satisfied with the Herbal product that you used?

Yes /no

7. If No, what are the needs that are not fulfilled by the existing product?

…………………………………………………………………………………………

……………………………………………………………………………………

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8. If these needs are not fulfilled, then are you seeking to fulfill or compromise on

existing?

Seeking / compromise

9. What are the other areas on which you want herbal product which has fewer side

effects?

…………………………………………………………………………………………

…………………………………………………………………………

10. When thinking of herbal product, what brands come to your mind?

FM OM AIDED

Sancho 1 1 1

Bojhomint 2 2 2

Jhandu Bam 3 3 3

Tiger Bam 4 4 4

Patanjali 5 5 5

Others 6 6 6

Others (please specify)………………………………

(For the first mentioned brand of Herbal)

11. What aspects of that product do you like more?

…………………………………………………………………………………………

…………………………………………………………………………………………

…………

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12. Where did you learn about it?

Television ____

Radio ____

Newspaper ____

Magazine ____

Friends/Relatives ____

Stores ____

Doctors ____

Others (Please specify) ____

13. Which advertisement of herbal products are you most familiar with?

FM OM AIDED

Sancho 1 1 1

Bojhomint 2 2 2

Jhandu Bam 3 3 3

Tiger Bam 4 4 4

Patanjali 5 5 5

Others 6 6 6

(For others specify the name_______________)

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14. How did you come to know about this advertisement?

Seen in TV ___

Heard in radio ___

Read in newspapers and magazines ___

Other sources (Please specify______________)

15. Which herbal product advertisement does you like the most?

FM (force in mind) OM (other mention) AIDED

Sancho 1 1 1

Bojhomint 2 2 2

Jhandu Bam 3 3 3

Tiger Bam 4 4 4

Patanjali 5 5 5

Other 6 6 6

Others (Please specify) ________________

15. Why do you like the advertisement?

__________________________________________________________________

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16. Where do you most often see/hear/read about this advertisement?

Television ________________

Radio ________________

Newspaper ________________

Magazine ________________

Friends/Relatives ________________

Stores ________________

Others ________________

Others (Please specify) ________________

17. What pack size of Herbal product you use most often?

10 grams ___

20 grams ___

Other sizes (please specify) _______________

18. Is this pack size and shape convenient for you from use point of view?

Yes ___ (why?

………………………………………………………………………………….)

No ___ (why?

………………………………………………………………………………….)

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19. Where do you generally buy herbal product?

Stores near your house ____________

Medical Store ____________

Ayurved Store ____________

Others (please specify) ____________

20. What changes would you like to have in the herbal product you use most often?

…………………………………………………………………………………………

………..........................................................................................................................

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