Creation and Aspects of a Product Plan

INTRODUCTION Origin of the Report As we atomic number 18 doing Marketing Management, our course instructor Prof. Dr. Mijanur Rahman has instructed us to prep atomic number 18 a paper on the reaping plan. Purpose To get a clear concept how to make the w ar plan To acquire familiarity how to make mission, vision, cover mix etc. Limitations 1. We did not collect the current cultivation cerebrate with our carre quaternarysome. 2. We had to happen lot of times to collect information somewhat competitors, market smudge because enough information not available. enquiry Methodology Secondary Internet www. google. com , www. ekipidia . com, Source thedailystar. net Other Collected information from marketing report, magazines, running modernspaper. 100 CURRENT MARKET SITUATION Today the chips market is dominated by stump spud Crackers, Mr. Twist, Meridian, Cheese Ball, Lays, solarise checks and another(prenominal) chips. We find out that, on that point is no high feel c hip which is suitable for children health. But we found much normal category chips. Our ware bore is much(prenominal) high comparative to the other competitors, because our main ingredients is mushroom-shaped cloud which is in all new flavor and bask and in like manner work against for the cancer.So its a big gap that we find out. Our new chips has been received a new market challenge to cope with them. At the truly beginning, our sale go forth be let loose, profit pull up stakes also be little. We hope that we leave aloneing be able to get the first m all over advantage, because there is no much(prenominal) harvesting especially for children health. 1. Market Description We know, the market means potential customers of a crossroad or service. Bangladesh is a highly populated country. The birth rate is very high . As a result the children rate is also very high. We are not producing our point of intersection not scarcely for children but also for teenagers, young generation.So our total target market is very large. Market demands of market get out also increasing as much we can position in our customers mind. (All this figure are estimated depending on class and age to have an idea about demand on chips on this variables) This is our target market. We indigence to target children as nearly as young people of middle and high class of people. We are not eliminating dis reference book class people but first we essential to create demand for our product then we go out try to get our product price and serve to all class of people. 2. harvest-festival reviewThe product quality is more high comparative to the other competitors, because our main ingredients is mushroom cloud which is totally new flavor and prove and also work against for the cancer. It is suitable for children health. It is highly r individuallyed by Protein-15. 53%, Fat-20%,Saturated fat-1. 42%, Carbohidrated-2. 45%, Sugar-2. 40%, Energy-100gm, Colastrol-0%, Sodiam-. 64% , which is very much essential for specially kids and young age people. 1. 3 Price Price levels are set for launching our product for our targeted customers. 4. gross revenueWe want to produce 960000 of products in our first step of production. Depending on increasing demand rate, we entrust increase our production rate over a month. Every course, we depart increase our 10% of production. We will observe the gross receipts and satisfaction levels of our customers by dint of our gross revenue representatives. Our Product will sale only in Urban and town side areas of Bangladesh, thats why we are not distributing and gross revenue product in rural areas because our price level is crisp high. After increasing our product demand and sales, we will try to reduce our cost of production.As a result, we reduce our product price and distributed in rural areas in Bangladesh. 5. Gross margin We have a abundant competition in our market. 1st year we want to create huge demand by dandy quality advertisement and packagingal activities to create position in our customers mind. As a result, we expected low gross margin for 1st year, it will be just cover the fixed asset. 2nd year, we will try to sale more and more and reduce the cost of goods sold. It will increase our gross margin. 1. 6 dinero We expected earning profit within 2 years.Before that we will try to cover our fixed be and make break even points of sales. 1. 6 Distribution review Factory Warehouse Divisional warehouse Salesman Retailer Customer Our factory situated at Tongi in Gazipur. After producing our products it will store in our own warehouse Mirpur. From this warehouse products are distributed 6 sectionalisations by our own ecstasy and then storing these goods in divisional warehouse. Then our trained salesman distributes our products in the market to the retailer. And finally retailers shell out it to the ultimate customer. 1. 7 combative Review 1. 7. 1 Potato Crackers Potato Crackers is a very popular morsel prepared with combination of wheat, starch together with potato. It is a light, crispy snack and less oily. It has an average food for thought treasure and is available with spicy tomato flavor. Ingredients Potato powderise, Potato Starch, Wheat flour, tenuous Vegetable cover and Seasoning. 1. 7. 2 Cheese Ball Cheese Ball is an extruded product made from corn and rice and coat with rich cheese powder.It is superb in taste and something to be enjoyed all the time. Ingredients Corn, Rice, Salt, Vegetable Oil, Cheese Powder & Seasoning. 1. 7. 3 Mr. Twist Mr. Twist is especially attractive to youngsters. This potato based snack has a current amount of modified or native starch to buy the farm it a beautiful twisty ascertain and fine texture. Available with tomato paprika flavor. Ingredients Potato Powder, Modified Potato starch, Native Potato starch, Refined Vegetable Oil and seasoning. 1. 7. 4 Meridian Chips Meridian Chips is especially attractive t o all people.Total annual sales below US$1 Million. Export shareage 1% 10% per year. 1. 7. 5 Lays Lays is the brand shout out for a number of potato chip (crisps) varieties as well as the name of the phoner that founded the chip brand in 1932. Lays chips have been marketed as a division of Frito-Lay, a corporation owned by PepsiCo since 1965. Other brands in the Frito-Lay group include Fritos, Doritos, Ruffles, Cheetos, Rold Gold pretzels, and Sun Chips. 2. 00 wonk ANALYSISSWOT analysis is an important tool for canvasing the overall strategic position of a business and its environment. SWOT is an abbreviation for Strengths, Weaknesses, Opportunities and Threats. Opportunities and threats are external factors. For example, an opportunity could be a ramp uping dispersal channel such as the Internet, or changing consumer lifestyles that potentially increase demand for a companys products. A threat could be a new competitor in an important vivacious market or a technologica l change that makes existing products potentially obsolete. Strength Weakness pic expert skills pic New company pic Distribution channels pic Absence of importer skills pic Product quality pic Unreliable product pic Value delivery electronic network pic Financial problem Opportunity Threats pic Changing customer taste pic Changes in government politics pic Technological advances pic Acceptance the product pic Changes in government politics pic Competitor rate high pic Availability of vulgar(prenominal) materials pic Strict rules and regulation 2. 1 Strength picWithout any hand of hand the product is made because of increment of technological skills. pic There are another strength of the company is distribution channels. Our distribution channel is very strong proportion of the supplier and resellers is very strong. picThe product quality is more high comparative to the other competitors, because our main ingredients is pick which is totally new flavor and taste an d also work against for the cancer. picBecause of our good kinship with supplier, reseller and for the good transportation facility our sale will be definitely increases. Our value delivery profit is in strong position. We are having good relationships with our suppliers for a longer period of time. 2. 2 Weakness pic Although the company is new, it has not established a brand or images in the market place this is the failing for the product popularity. pic Because of the new product and company importer skills are absence here thats why we cant includes any internal facilities. pic For the first time the mushroom is exit in the market thats why people cant properly reliable to the product quality. pic Financial problem is another weakness of the company like what will be the price constitute and investment. pic Quality of the Mushroom is not up to mark. 2. 3 Opportunity picIts an available product but of the new version of taste and quality create a new change of the customer ta ste. picFor the technological changes and advances its easier to acquaint any information and promotional activities to know the product popularity to the people. picIf the government changes politics then it will be easy to approach shot the product to the market. picAvailability of the raw materials is increasing day by day which is help to produce more products. 2. 4 Threats picIf government is increase the taxes and the political issues are not favor then it will be the threats for the company. picThe product may not be accepted to the people then it will be the great threats for the company. picThe product competitor rate is very high thats why sometimes we are facing more competing problem, which can be a threats of the company pic ships company establishment rules and regulation is strict thats why sometimes to take any easy decisions are create complicated situations. Adjustment of opportunities and threat The usefulness of SWOT analysis is not limited to profit-seeking o rganizations.SWOT analysis may be used in any decision-making situation when a desired objective has been defined. If the raw materials are available to the market then the cost of the raw materials will be reduced then we can produce more product in nominal price, and if the government politics are favor then the supply of the product and the transportation cost will be reduced. These products have new taste and a new ingredient which is changes the customer taste. We have to chastise the threats. If the product is not the accepted to the peoples, then we have to increase our promotional activities to attract the peoples and create more differentiations better than our competitors. 3. 0 OBJECTIVES AND ISSUES 3. 1 Financial objectives Achieve first year total sales revenue of Tk. 48,00000, based on average price of Tk. 14 per unit. But first three month we cannot action any profit because in that time we invest lot of money for sales promotion campaigns, electronic trade show, pr ovide mini pack sample to the selected customer. Produce net profits of Tk. 9,60000 next year with a target profit margin of 20 percent on total sales. Marinating a meaningful research and development figure. Increasing production level each month by 1 % investment more in Cultivation Of mushrooms. Establish 3 Big factory for producing large amount of product 3. 2 Marketing Objectives Achieve a first year unit sales volume of 1,15,20,000 which represents a projected market share of 10 percent with one type in product line. add-on second year share to 15 percent, based on sales of three types in product line. Generate 30 percent brand awareness within the consumer target market and 40 percent brand awareness within the business target market by end of next year. We want to be no. 1 Chips Company in Bangladesh. After one month, we are collecting our sales review and satisfaction level of our customers. Diversification in our product line. We want to create social value f or position in customers mind. 3. 3 Issues Our new brand of chip that is Mushroom chips is completely unknown into the existing market.So, our major issue is to establish a well-regarded brand name linked to a meaningful positioning. We will have to invest heavily in marketing to create an excellent, distinctive brand image project innovation, quality, and value. We also must measure awareness and response so that we can adjust our marketing efforts if essential. 4. 0 MARKETING STRATEGY 4. 1 Market segmentation Geographic divisions and district town side areas such as Dhaka, chittagoan, Rajshahi, Sylhet, Barishal, Khulna . Dhaka (gazipur district -town side) Demographic Age-5-12, 12-18, 18-24, 24 to others and higher class, middle class of people. Product related Regular customers Irregular Customers Negative customers 2.Target market Children Young people People Middle class and higher class urban areas people 4. 3 Positioning To children, young people, chips customers who are seeking for delicious taste with nutrition . Mushroom chips contains mushroom that gives you taste with good nutrition because it has the highest level of Protein-15. 53%, Fat-20%, Saturated fat-1. 42%, Carbohidrated-2. 45%, Sugar-2. 40%, Energy-100gm, Colastrol-0%, Sodiam-. 64% 4. 4 Differentiation Mushrooms are good sources nutrition and this is our main ingredients. filch of Form Bottom of Form 4. 5 Marketing mix Marketing mix consist of four basic things which is known as four Ps roduct, price, place, promotion under the consideration of our product (Mushroom Chips) These four Ps are specified as 4. 5. 1 Product The Mushroom chips, including all the gambols described in the product review section. The product is very healthy and a better quality compare to our competitors. Mushroom Chips (Burke) Recipe By Cooking with David Burke Serving Size 4 Preparation Time 000 Categories Amount Measure Ingredient Preparation Method 1 pound large white mushrooms Or Portobello mus hrooms 2 cups clarified butter OR vegetable oilCoarse salt OR kosher salt to taste Quality that we are first assure in our product. It is highly reached by Protein-15. 53%, Fat-20%,Saturated fat-1. 42%, Carbohidrated-2. 45%, Sugar-2. 40%, Energy-100gm, Colastrol-0%, Sodiam-. 64%, which is very much essential for specially kids and young age people. Each and all(prenominal) process of the production is done by automatic machine. Design is the factor that will often give a company its competitive edge. It is the totality of features that affect how a product looks and functions in term of customer requirements. Feature leads to the materials which are used in production for making the product. over-embellished industries used Mushroom powder, Mushroom starch, and Wheat flour, Refine vegetable oil, Seasoning and Potato powder for producing the chips. The top management of the Regal Industries has fixed to give a brand name to new product as Mushroom Chips. Packaging which gives an purposeless attractiveness to any particular product. Thats why we also design a packet for Mushroom Chips. The whole packaging process will be done without any kind of hand touch in an automatic machine. 4. 5. 2 Price The Regal mushroom chips will be introduced at tk. 14 wholesale and tk. 15 estimated retail price per unit. We know that the price is much higher than the other Chip present in the market but it will give a high quality.We expect to lower the price of packets within few months. Because of the first time at market the company would like to give some discount to the retailers which will make them some profit. The company is also giving some credit terms facilities to their wholesaler and retailers. 4. 5. 3 Promotion The management of Regal Industries has budgeted tk. 1,80,000. 00 for their advertising and promotion activities for per month. As a new product in the market it needs huge amount of advertising and promotion activities to furcate the consumer about the prod uct and its features. For that reason management decide to go for more fancy advertise in Television, Radio, Billboards, and Web site and in News paper.The policy makers has decide to offer different types of popular study and super hero characters stickers and tutus with per packet of Regal Mushroom chips for Childs and purchase intensive to the wholesale and retail for sell promotion. By organizing Charity concert, Open concert, Sports tournament, Reality shows etc Regal Industries would like to build a good relation whit people in near hereafter. 4. 5. 4 Place At the very beginning Regal Mushroom Chips will distribute to the town area of 6 divisions across the country with companies own transport system. By considering the future demand it has planned to distribute in the whole country area.For unexpected future demand it always kept sufficient amount of inventories in its own warehouse. 4. 6 Marketing talk Strategy By integrating all messages in all media, we will reinforce t he brand name and the main points of product differentiation. Research about media consumption patterns will help our advertising agency admit appropriate media and timing to reach prospects before and during product introduction. The agency will also coordinate semipublic relations efforts to build the brand and support the differentiation message. To attract, retain, and motivate channel partners for a push strategy, we will use trade sales promotions and personal selling to channel partners.Until the brand has been established, our communications will win purchases through channel partners. Our distribution channel is quite different from other chips because our main target consumers are the upper class and upper middle class people, who are Not usually concerned about the television advertisement because they are more cautious about the product quality. 4. 7 Marketing Research Using research, we are identifying the specific features and benefits that our target segments value . Feedback from market tests, surveys, and focus groups will help us develop the Regal Mushroom Chips brand. We are also measuring and analyzing customers attitudes toward competing brands and products.Brand awareness research will help us determine the effectiveness and efficiency of our messages and media. Finally, we will use customer satisfaction studies to gauge market reaction. 4. 8 Marketing Organization Chief marketing officer holds overall responsibility of all the companies marketing activities. Company has also three top level passenger car for advertisement department , sales department and promotion department . And under sales manager company has six divisional sales manager . They are responsible for divisional sales increasing. Marketing Organization Abdur Rahman Chief Marketing Officer 5. 0 accomplishment PROGRAM Our company Regal Company will be introduced in February 2011.Following are summaries of the action programs we will during the first three months to ach ieve our stated objective. January We will initiate a Tk. 300000 trade sales promotion campaigns to educate retailers and generate excitement for the product launch in February. We will exhibit electronic trade show, provide mini pack sample to the selected customer. Our promotion manager is responsible for this work. February We will start an corporate print, radio and media advertisement targeting consumers. This advertisement will show our products differentiation from other competitor. Advertisements also show our products feature to the ultimate customer. Our Advertisement manager is responsible for those works.March As the multimedia campaigns continue, we will add consumers sales promotion techniques such as giving scratch card and lottery etc. Our sales manager is responsible for this type of sales increasing techniques. 6. 0 FINANCIALS PROJECTIONS In this section we make expected budget of sales and cost monthly and yearly. We count breakeven point unit sales. We also pres ent our expected sales revenue and profit. Our product per unit cost is 13. 5 Tk. And wholesale price is 14 Tk. And Maximum retail price is 15 Tk. Expected Sales Budget Division Monthly Yearly whole cartoon building block Cartoon Dhaka 5,00,000 5,000 60,00,000 60,000 Chittagong 2,00,000 2,000 24,00,000 24,000 Barisal 70,000 700 8,40,000 8,400 Sylet 80,000 800 9,60,000 9,600 Rajshai 50,000 500 6,00,000 6,000 Khulna 60,000 600 7,20,000 7,200 Total 9,60,000 1,15,20,000 Expected toll Budget Type of Cost Monthly(TK) Yearly(Tk. ) Variable 1,10,40,000 13,24,80,000 Fixed 20,00,000 2,40,00,000 Total 1,30,40,000 15,64,80,000 Per Unit Cost Per unit Cost = (Fixed cost + Variable cost) Unit Production 2, 40, 00,000 + 13, 24, and 80,000) = 1, 15, 20,000 = 13. 5 Tk. Break-even Unit Sales (Yearly) Per Unit Sales 14 Tk. Per Unit Variable Cost 11. 5Tk Per Unit Contribution 2. 5Tk. Fixed expense Now, B E S in Unit = Per Unit Contribution 2, 40, 00,000 = 2. 5 = 96, 00,000 unit. Expec ted Revenue (Yearly) Sales (1, 15, 20,000* 14) 16, 12, 80,000 Variable Cost 13, 24, 80,000 Revenue 2, 88, 00,000 Expected Profit (Yearly) Revenue 2, 88, 00,000 -) Fixed expense 2, 40, 00,000 Profit 48, 00,000 7. 0 IMPLEMENTATION CONTROLS The takeling process In the control Process, we will compare our total result with the expected things that we are mentioned. If there is mistakes then take necessary steps to control the overall process. There will be two way of controlling. One is useable control and second one is strategic control. Operational control If any changes occurred to our production process, then it will be done by operational control. Strategic control If any changes occurred into strategic plan than it will be done by strategic control.Market Audit We will hire a market audit or researcher to evaluate our marketing plan and give advices how to improve in operational control, strategic plan, others plans. Implementation Plan The following identifies the key activitie s that are critical to our marketing plan. It is important to accomplish each one on time and on budget. Online advertising, which cost BDT 50,000. Separate rack in shopping malls and the departmental stores, which costs BDT 200,000. Other advertising costs BDT 10,00,000. Event sponsorship, which costs BDT 300,000 References 1. http//trade. coa. gov. tw/showProduct. do? isTemp=false&rid=2465&lang=e&showMenu=true 2. http//www. recipesource. com/fgv/vegetables/mushrooms/00/rec0053. html 3. ttp//www. malaysiabest. net/2006/03/06/snacks-mushroom-chips/ 4. http//ihor5. freeyellow. com/mushchip. htmlpicpicpic 5. http//banglapedia. search. com. bd/HT/M_0416. htm 6. http//www. mushroomlovers. com/Health. htm pic Md. saley uddin , Reasonal Sales manager, Chittagong Ms. Sabrina Azam, Reasonal Sales manager, Sylet. Mr. Rafique Khan, Reasonal sales manager, Rajshahi. Md. Jahidul Islam, Reasonal Sales manager, Khulna Ms. Sayla Zaman , Reasonal Sales manager, Barisal. Md. Azad, Reasonal Sale s manager. Dhaka Ms. Bristi Rani Advertising Manager Md. ,Hasan Mahamud,Promotion Manager Ms. Nancy Christina Sales manager