marketing plan on maggi ketchup
DESCRIPTION
Marketing Plan on Maggi KetchupTRANSCRIPT
WELCOME
Maggi is a strategic brand of Nestle, Bangladesh. In Bangladesh, it has only two categories of products
Maggi Soup
Maggi Noodles.Now, Maggi is going to launch ketchup in market for the
growing attractiveness.
Executive Summary
CURRENT MARKET SITUATION
Available brands in market:46The market volume: 1100 ton.Volume distribution: Tomato Ketchup 68% & Chili
ketchup 32% .Mostly used brands in
Household: Pran & Ahmed (the middle-income households).
Foodservice area: Best & Druk mostly (the higher income households.).
Target Market
70%30% Families
Resturants
Families : Middle class Upper classFood service area: Restaurants
Target Market Forecast
Potential Customers
2008 2009 2010 2011 2012
Families 25000 31250 39062 48828 61035
Restaurants 1500 1725 1983 2281 2625
Total 26500 32975 41045 51109 63660
2008 2009 2010 2011 20120
50000100000150000200000250000300000
ResturantsFamilies
Families:
Geographic:◦ The immediate target is the city of Bangladesh. ◦ Middle-income and upper-income household.
Demographics:◦ Singles and families. ◦ Mostly females and children.◦ Have a household income of more than 10,000 tk per month. ◦ Consuming per year at least 3 ketchup bottles.◦ Conscious consumer about their health.
Behavior Factors:◦ Paying a premium for higher quality, tastier ketchup. ◦ Health consciousness
Market Demographics
Restaurants (and their customers):
Geographic:
◦ Fast food and restaurants in the cities of Bangladesh.
Demographics:
◦ Male and female.
◦ Single and families.
Behavior factors:
◦ Health consciousness
◦ High-quality meal.
Market Demographics
High quality
Affordable pricing
Market Needs
Market Trends
Market Supply High Consciousness Food Quality
Strong, steady growing market.After 5 years the total market will be expand 25%
Market Growth
2008 2009 2010 2011 2012
00.20.40.60.8
11.21.41.61.8
Strengths:◦ Higher Brand image
◦ Attractive trade promotion
◦ Quality and Taste
Weakness:◦ Unimpressive packaging
◦ Higher pricing than local brands
SWOT Analysis
Opportunity◦ Developing foodservice industry
◦ Improvement of product & packaging quality
◦ Decreased operation cost
Threats◦ Increased competition
◦ Modest economy
◦ Downward pressure on pricing
SWOT Analysis
Best quality More durabilityPosses no harmful chemical ingredient
Product Offering
Competitive Review
Selected Competitive company’s targeted consumer and price
Brand Pack Size Price Mkt. Share Targeted Consumer
Pran 340 40 20.0% Middle and upper- income household& also restaurants
Best 340 49 19.3% Middle and upper income households & foodservice area
Ahmed 340 40 13.4% Middle-income household
Druk 400 63 11.6% Upper income households& foodservice area
Roza 300 45 7.0% Households & Restaurants
Meridian 285 46 4.7% Middle-income household
BD 340 50 3.5% Middle and upper- income household
Heinz 300 49 2.6% Upper income households& foodservice area
Others Avg. 320 Avg.45 17.9% Household & foodservice area
100.00%
Uncompromising commitment to the quality of the product. Continuously improving the products. Communicating differentiation and quality through personal
interactions and media.
Keys to success
Critical Issues
• National economic conditions which are not favorable to the people.
Distribution Review
Manufacturer Distributor Retailer Final consumer
Target consumer : Quality conscious consumers of ketchup.
Benefits : More preservation ability and tasty. Price :Consumer price is BDT 45. Value Proposition : Tastier, spicy ketchup from the pure
ingredients at a moderate price.
Positioning
Product : High quality and tasty productPricing : Retail price is BDT 45 and wholesale
price is BDT 38 Distribution: Intensive distribution Promotion : Use advertising, personal selling and
sales promotion
Marketing Mix
Survey households and restaurants. Introduce questionnaire to investigate customer wants
and satisfaction.
Market Research
Financial Objectives:We want to gain a no loss-no gain condition over the
next 3 years.We want to produce total revenue of BDT 4750000 in 1st
year and BDT 6,650,000 in the next year.Within 5 years, we want to produce an amount of profit
3.2 million based on per unit price of BDT 38(wholesale price)
Objectives
Marketing Objectives:Achieve 4% market share in a first year. Increase second-year share to 5.50%.Arrange of distribution through the leading retailers and
distributors in the country market within next 6 years.
Objectives
Break-even Analysis
Break-even Analysis:
Break-even Units 500,000
Break-even Revenue 19000000
Assumptions:
Per-Unit Revenue 38.00
Per-Unit Variable Cost 30.00
Fixed Cost 4,000,000
Sales Forecast
Sales Forecast
Sales 2008 2009 2010 2011 2012
FamiliesBDT
3,325,000
BDT 4,655,000
BDT 5,320,000
BDT 5,985,00
0
BDT 7,315,00
0
Restaurants
BDT 1,425,00
0
BDT 1,995,000
BDT 2,280,000
BDT
2,565,000
BDT 3,135,00
0
Total SalesBDT
4,750,000
BDT 6,650,000
BDT 7,600,000
BDT 8,550,00
0
BDT 10,450,0
00
Cost of Sales
2008 2009 2010 2011 2012
FamiliesBDT
1,837,500
BDT 2,572,500
BDT 2,940,000
BDT 3,307,50
0
BDT
4,042,500
Restaurants
BDT 787,500
BDT 1,102,500
BDT 1,260,000
BDT
1,417,500
BDT 1,732,50
0
Total Sales
BDT 2,625,00
0
BDT 3,675,000
BDT 4,200,000
BDT
4,725,000
BDT 5,775,00
0
Expense Forecast
Marketing Expense Budget
2008 2009 2010 2011 2012
Personal selling
BDT 100,000
BDT 144,500
BDT 165,000
BDT 185,000
BDT 227,500
AdvertisingBDT
600,000BDT
867,000BDT
990,000BDT
1,110,000BDT
1,3650,00
Sales promotion
BDT 300,000
BDT 433,500
BDT 495,000
BDT 555,000
BDT 682,500
Total Marketing Expenses
BDT1,000,000
BDT 1445,000
BDT 1,650,000
BDT 1,850,000
BDT2,275,000
Percent of Sales
26.67% 27.50% 27.5% 27.4% 27.6%
Revenue: Monthly and annualExpense: Monthly and annualCustomer satisfactionNew product development
Controls
2008: Initiating sales promotion to educate dealers and advertising.
2009: Gaining the platform to earn revenue of BDT6.65.2009: Reaching the break-even point.2011: Increasing sales volume.2012: Gaining satisfying profitability.
Implementation Milestones
Marketing Organization
Difficulties and Risks:
◦ Pran possesses the major parts of the market. As a new product, we may have to suffer if we cannot persuade the consumers.
◦ It is risky in the first year to make every consumer believed that ours’ is the best tasty and quality product.
◦ From the business view point, the restaurants may not be eager to use new product as they trust the common ones.
Contingency Planning
The Worst Risks:
◦ Other potential competitors may produce products with the same features.
◦ If the competitors decrease their price, initially we will not be able to decrease our price as we are just launching our product.
◦ For inflation and decreasing living standard, people may not be willing to buy this product and this may create the run on of our business.
Contingency Planning
ANY QUESTIONS?
THANKS TO ALL