Entenpreship Case

On Topic: Marketing plan for “TAPAN water melon juice”. Submitted To: S M Asif Ur Rahman Lecturer School of Business United International University Submitted By: Md. Nuruzzaman # 111091197 Salauddin Akbar # 111091112 Tania Zaman # 11109 Afsana Sarker # 111091327 Ismat nur # 111091006 Section: F Date of submission: 29, December, 2010. [pic] Date: 29, December, 2010. To S M Asif Ur Rahman Lecturer UIU. Subject: Submission of term paper titled “Marketing plan for TAPAN water melon juice. Dear Sir, I have the pleasure to submit here with the term paper of the project titled “Marketing plan for TAPAN water melon juice” for your kind perusal. Based on discussions and survey, I have incorporated the necessary materials to finalize the draft term paper. We also acknowledge our gratitude to those persons who have helped us and passed their valuable comments on the draft term paper. Thanking you for your cooperation. Sincerely, Md. Nuruzzaman Salauddin Akbar Afsana Sarker Tania Zaman Ismay Nur. ACKNOWLEGMENT

ALL PRRAISE TO GOD This study is the outcome of the term paper writing program under taken by the “INTRODUCTION TO MARKETING” course instructed by “S M Asif Ur Rahman” UIU for the ‘Fall, 2010’ 6th semester’s student to supplement the experience and research skills gather from a particular field. We are indebted to them, who have directly and indirectly assisted us in conducting the study. Specially, we are thankful to our honorable teacher “S M Asif Ur Rahman” because he helped us to start our research paper promptly.

First, we are thankful to the general people for showing their kind cooperation to collecting information about “Marketing plan for TAPAN water melon juice”. We are indebted to the website that indirectly helped us in completing our term paper. We also indebted to those people, who showed their friendly behavior in completing our questions. Finally, we owe a profound intellectual debt to our seniors for their part time help, assistance and valuable advices in thinking and developing of this term paper. – Md.

Nuruzzaman Salauddin Akbar Afsana Sarker Tania Zaman Ismay Nur.. WORD OF CAUTION This is to inform that the term paper on “Marketing plan for TAPAN water melon juice” has been prepared in partial fulfillment of the requirement of the course “Introduction to Marketing”. It has been prepared for academic basis only.

So, photo copying a sentence from this report is strictly prohibited without prior permission. – Md. Nuruzzaman Salauddin Akbar Afsana Sarker Tania Zaman Ismay Nur.. Executive summary A marketing plan may be part of an overall business plan. Solid marketing strategy is the foundation of a well-written marketing plan. While a marketing plan contains a list of actions, a marketing plan without a sound trategic foundation is of little use. Our business name is TAPAN Juice Company Ltd. and brand name is “TAPAN Water Melon Juice” and we will produce only TAPAN Water Melon Juice. But we have a plan to extend our business in future. Our organization is always looking for innovative ideas to develop into a new product. New product development starts with idea generation the systematic search for new product ideas. Our company generates hundreds of ideas in order to find a few good one. There are two sources from where we can generate the new innovative ideas.

These two are internal idea source & external idea source. We use internal idea source to generate our product ideas. By using this source we can generate idea by research & development process or we can pick the brain of the employees. For this idea we were dependent on the idea from the brain of our employee. The purpose of the idea generation stage is to develop as much idea as we can. But the purpose of this stage is to reduce the number of the idea. The first idea reducing stage is idea screening which helps us to sort the good ideas & drop the poor one as soon as possible.

In the later stage the cost of development a product is very high so we have to screen out the best ideas that will be profitable & that match with the company’s long tern goal. From the idea generation stage we get lots of idea. But in this stage our organization is looking for the best one. After screening all the ideas we get that the TAPAN water melon juice can be profitable in the long run and it also matches with the company’s long term goal. To test that the product has strong customer appeal we teat our new product with a group of target customer.

For many concepts testing a word or picture description might be enough. But we concentrate on physical presentation of the product In front of our target customer. For our product which is TAPAN water melon juice we choose the undifferentiated (mass) marketing. This means a market coverage strategy in which a firm decides to ignore market segment differences & go after the whole market with one offer. In this strategy we focus on what is common in the needs of consumers rather than the differences. We will try to capture the whole market with our single offerings with out any differences in our product.

We will use market skimming pricing. After setting the price of the product we should think how we can sell this product to our target customer. For selling our product to customer we should think about our distribution channel. Distribution channel means a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business uses. We will sell our product to the consumer so we don’t think about the business user. Now the question is why the channel is important. We will follow the administrated VMS.

This means coordinating successive stages of production & distribution, not through common ownership or contractual ties but through the sizes & power of one of the parties. The powerful party in this case is our company. We will dominant other members of the distribution channel and this way we will try to ignore the conflict between the channel members. But for this we should have a strong base in the market and our company has that situation and our other channel members are not big or powerful enough too dominant in the market. As it is totally a new juice, there is no direct competitor in this industry.

But there are a lots of substitute products existing in this market. As they are highly resource able company, they can enter into this market. “TAPAN Water Melon Juice” has several powerful strengths on which to build, but our major weakness is lack of brand awareness and image. The major opportunity is demand for juice that delivers a number of valued benefits. We also face the threat of ever-higher competition as well as downward pricing pressure. Our mission is to establish our products TAPAN Water Melon Juice as the local leading juice through refreshment of body and mind of customers by delivering our value.

We will place our advertisement at television & banner. We will distribute our product Dhaka city in the form of bottle, paper and Can packaging so that consumer can get it easily. The whole production process is in strict conformity with international standards, and constant research and development all products. We are confident that our products and services will satisfy the highest of standards. TABLE OF CONTENTS Page 1. Introduction……………………………………………………………………. 9 2. Business type………….. ……………………………………………………. 9 3. Importance of TAPAN Water Melon Juice industry………………………. 10 4.

Business strategy …………………………………………………………… 10 5. Mission ………………………………………………………………………. 11 6. Vision………………………………………………………………………… 11 7. Product & Services…………………………………………………………. 11 8. Copyrights & Trademark…………………………………………………… 12 9. Location……………………………………………………………………… 12 10. Projected cost……………………………………………………………… 12 11. Copyrights & Trademark…………………………………………………. 13 12. Location……………………………………………………………………. 13 13. Projected cost…………………………………………………………….. 13 14. Concept developing……………………………………………………… 14 15. Concept testing…………………………………………………………… 14 16.

Market strategy development ………………………………………….. 15 17. Marketing budget for the first year …………………………………….. 22 18. SWOT Analysis………………………………………………………….. 28 19. Conclusion………………………………………………………………… 30 20. Reference………………………………………………………………… 30 Introduction A marketing plan may be part of an overall business plan. Solid marketing strategy is the foundation of a well-written marketing plan. While a marketing plan contains a list of actions, a marketing plan without a sound strategic foundation is of little use. To be most effective, the plan has to be formalized, usually in written form, as a formal “marketing plan. The essence of the process is that it moves from the general to the specific, from the vision to the mission to the goals to the corporate objectives of the organization, then down to the individual action plans for each part of the marketing program. It is also an interactive process, so that the draft output of each stage is checked to see what impact it has on the earlier stages, and is amended. Business type Our business name is TAPAN Juice Company Ltd. and brand name is “TAPAN Water Melon Juice” and we will produce only TAPAN Water Melon Juice. But we have a plan to extend our business in future. [pic]

Importance of TAPAN Water Melon Juice industry Many juice companies are already established. They produce many types of juice. But Water Melon Juice is not produced by them. But people of Bangladesh and many countries like this juice. Peoples drink this juice in unhygienic way from here and there. So, this has negative impact on health. So we think health conscious people will like this juice. So, TAPAN Water Melon Juice market is totally unexplored market. We want to get this opportunity. So we are going to introduce TAPAN Water Melon Juice in Bangladesh. We wish to achieve so much customer and customer response in 1st year.

We get best wishes to our target customer and also the mind of the customer will obviously great beliefs of our products. Business strategy ? Become as the Best New Juice in the Bangladesh ? Improving the customer satisfaction through the good quality of products. ? Turn in profits from the first year of operations. ? To create of unique and healthy products that will differentiate juice from other juice in Bangladesh. ? To exceed 5 million in annual sales by the 4th year of plan implementation. ? Customer satisfaction with high quality juice and services ? Marketing strategies aimed to make loyal customers. Our commitment to providing excellent quality Juice at all times. ? Quick delivery and each customer will be treated as would an honored guest. ? Effective employee training to insure the best juice. ? We provide quality juice proper customer service and atmosphere. ? Attractive store design. ? Location is our key success factor means that on “TAPAN Water Melon Juice” is very suit able for our business. Mission Establish “TAPAN Water Melon Juice” as the local leading juice company through refreshment of body and mind of customers by delivering our value. Vision

Providing fresh juices all over the Bangladesh as a market leader through assurance of outstanding quality. PRODUCT & SERVICES We are the manufacturer of a product. Our product is TAPAN Water Melon Juice. It is packed with 250ml, half liter and 1 liter. Manufacturing process of our product is very hygienic. We collect very good quality sugar cane from where that is produced well. After collecting sugar cane, we take juice from sugar Cane by automatic machine. Then, we mix water, chemical, preservatives and other ingredients and made juice. We also control juice quality by our special examine. [pic][pic] Copyrights & Trademark

Our TAPAN Water Melon Juice is new product in Bangladesh. So, we protect our original works of authorship by copyright under copyright law. Our copyright is registered with the library of congress and will not usually require an attorney. All that is necessary is that the form, two copies of the work and the appropriate fee be sent to the Register of copyright. Location Our production plant will be at Motijheel Dhaka. Projected cost ? For establishing computer security system e has to spend large amount of money. For this project, we have to spend taka 10 lakh with help of another information-based company. Close circuit camera is also very expensive. We will use ten close circuit camera for the security of inventory control and the minimum cost will be Tk 6 lakh. ? For setting up modern code number-based door, we have to spend Tk 4 lakh. ? Electric cable is another important and widely used but low cost project. We have to spend only Tk 80 thousand. ? We will also use security guard for inventory’s security. We will appoint five security guard and their monthly salary will be Tk 6000 thousand of each. The Marketing plan for TAPAN water melon juice For preparing the market plan we are following some stages of new product development process.

They are describing below- Idea generation Our organization is always looking for innovative ideas to develop into a new product. New product development starts with idea generation the systematic search for new product ideas. Our company generates hundreds of ideas in order to find a few good one. [pic] There are two sources from where we can generate the new innovative ideas. These two are internal idea source & external idea source. We use internal idea source to generate our product ideas. By using this source we can generate idea by research & development process or we can pick the brain of the employees.

For this idea we were dependent on the idea from the brain of our employee. Idea screening The purpose of the idea generation stage is to develop as much idea as we can. But the purpose of this stage is to reduce the number of the idea. The first idea reducing stage is idea screening which helps us to sort the good ideas & drop the poor one as soon as possible. In the later stage the cost of development a product is very high so we have to screen out the best ideas that will be profitable & that match with the company’s long tern goal. From the idea generation stage we get lots of idea.

But in this stage our organization is looking for the best one. After screening all the ideas we get that the TAPAN water melon juice can be profitable in the long run and it also matches with the company’s long term goal. [pic] Concept developing Product concept is the detailed version of the new product idea stated in the meaningful consumer terms. Our company is looking to develop the TAPAN water melon juice. So we have to develop several product concepts & choose the best on among from them. Our concepts are: • Concept 01: An affordably priced juice for drinking refreshment of the midsize family. Concept 02: a highly energetic TAPAN water melon juice to drink in the hot sunny days for the people who hang out a large time in outside. • Concept 03: Ultimate tastes of water melon in the form of juice for all the people who are consciously buy the best beverage for drinking. Concept testing To test that the product has strong customer appeal we teat our new product with a group of target customer. For many concepts testing a word or picture description might be enough. But we concentrate on physical presentation of the product In front of our target customer.

We test our concept by doing the following questions to our target customer: [pic] ? Do you understand the concept of TAPAN water melon juice? ? Do you believe this is affordable to a mid income family? ? What are the major benefits you accept from the juice rather than the traditional juice? ? What improvements do you suggest? ? Would you prefer to buy a conventional juice or new TAPAN water melon juice? ? What is your reasonable price for a 1litre TAPAN water melon juice? ? Would you buy such kind of juice? (Definitely, probably, probably not, definitely not). Market strategy development

After our concept testing we found that our concept three is best form the rest. Now here in this step we have to consider marketing strategy. The marketing consists of three parts. We now describe those parts step by step. The first part describes the target market, the planned value proposition, and the sales, market share and profit goals for the first few years. Target market: Target market is the process of evaluating each market segment’s attractiveness & selecting one or more segments to enter. We segment our market by using the demographic variable known as age. We segmented our market in to various age groups.

Those age groups are given below Segmenting by age groups: ? Under 6 ? 6-11 ? 12-19 ? 20-34 ? 35-49 ? 50-64 ? 65+ These are our segments and we evaluate each of the segments attractiveness and selecting that all the age group beside the age group of fewer than 6 is our target market to enter. Before the targeting of the segments we have to go through different stage. Such as- evaluating market segments. Here we have to consider three factors. They are ? Segment size & growth: the right size & the growth is a relative matter. Our segment size for TAPAN water melon juice is in the right size for us and it is growing every day. Segments structural attractiveness: here we have to consider several factors. Such as is there is any aggressive competitors? The answer of this question is no. next is there are any substitute products of this juice? No there is no close substitute of our product. The buyer of the market is not strong enough that they can control the price of our product. And lastly the power of the supplier is limited so we are not dependent on them to get our raw materials. ? Company objectives and resources: we consider our objectives and resources to produce this juice.

It matches with our objectives and resources. We have the skill and resources needed to succeed in the segment. After evaluating the target market we have to consider how we can go through this target market. How we can offer our product to this market. So here we have to consider the various level of target marketing. There are four level of target marketing. They are given below: ? Undifferentiated (mass) marketing ? Segmented marketing ? Concentrated marketing ? Micro marketing For our product which is TAPAN water melon juice we choose the undifferentiated (mass) marketing.

This means a market coverage strategy in which a firm decides to ignore market segment differences & go after the whole market with one offer. In this strategy we focus on what is common in the needs of consumers rather than the differences. We will try to capture the whole market with our single offerings with out any differences in our product. Value proposition: Value proposition means the set of benefits or values it promises to deliver to consumers to satisfy there needs. Our value proposition for the juice is “Drinking experience for lifetime. ” This value proposition differentiates our brand from the competing brands.

This value proposition gives us some competitive advantage than our competitors. Our competitive advantages are ? Product differentiation: our product concept is totally new in the market. ? Distribution channel: we have a huge channels coverage and expertise. ? Image: Our Company is really popular in producing beverage which gives us image benefit. We can see that our product has several competitive advantages than our competitors. But we will not promote those several competitive advantage. Rather we will go for a single competitive advantage. This is known as unique selling proposition (USP).

Our USP is our product differentiation. That our product is completely different from the competitors and the consumer can’t get the TAPAN water melon juice from any where else. So this is competitive advantage that we will promote in the market. In other sense value proposition means the full positioning of a brand-the full mix of benefits upon which it is positioned. So here we have to choose the overall positioning strategy. There are several strategies that a company can follow. Such as ? More for more ? More for the same ? The same for the less ? Less for much less ? More for less ?

For our TAPAN water melon juice we will follow the more for more approach. This means that we will give the consumer the upscale service that they will not get in any other way. For giving them the upscale product we will charge them more than the traditional juice. Because we have to cover our higher cost we have no other option than charge a little more money from our consumer. Sales, Market share & profit goals: Now in this step we have to consider our short term sales forecast. We determine that by doing market survey. We hope that for the first year we will be able to sell at least 50,00000units of juice in the country wide market.

We hope that the sales volume will rise day by day in the next years. The total market for the beverage industry in our country is really large. So we have a big market to enter. But it will be tough for us to capture the big portion of the market in the first time of our operation. So we will try to capture our market gradually . for the first year we hope that we can enter in to the market and capture at least 10% of the total soft drinks market share. That means if there is a transaction of 10 beverages in the country than we have a chance to sell t least one of our juice.

We hope that in the future our market share will rise up gradually. Profit goals are negative in the first year because we have to incur a lot of cost before we go to commercialization. So we can not generate profit in the first year. Our profit goals will be described fully when we will talk about the long term profit goals. These were the first part of the marketing strategy statement. Now we have to move in our second stage of the marketing strategy statement, this includes products planned price, distribution, and marketing budget for the first year. Product price: Firstly we have to understand what the word means by price.

The amount of money charged for a product or service or the sum o the values that consumers exchanged for the benefits of having or using the products or service. There are several factors while considering the price. We can use • Value based pricing • Cost based pricing Although the value based pricing is the best strategy but we will determine the price of our product by cost based pricing. Value based pricing means setting price based on buyer’s perception of value rather than on the seller cost. However it is good but our organization find it hard to measure the value customers will attach to its product.

So we will follow a particular cost plus pricing. Our pricing model is given below: Variable cost 15tk Fixed cost 75, 00,000tk Expected unit sales 1st year 50, 00,000 So, our manufacturing cost per unit is given below: Fixed cost 7500000 Unit cost = Variable cost + ————- = 15 + ————– = 16. 5tk Unit sales 5000000 Now we are looking for the markup of 35% on sales. So our selling price is given below: Unit cost 16. Selling price = ————————————- = ———————– = 25. 3846tk (1 – Desired return on sales) (1 – 0. 35) So, our company will charge 25tk for the every 333ml juice. Our price of the 1 liter juice will be 70tk. Now a question arises why we are looking for the higher markup of 35%. The answer of the question can be given if you consider our new product pricing strategy. There are two ways of new product pricing. They are: ? Market skimming pricing ? Market penetration pricing

Now the question is what strategy we will choose for our new product pricing. We will follow the market skimming pricing for our new product of TAPAN water melon juice. Market Skimming Pricing: Setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales. Some company follows this approach. Such as- Sony. We will follow this strategy as well. Firstly we will set a relatively high price for our product but after a certain period of time we will reduce the price of our product.

We assume that the price of our 1litre pet bottle is 70tk. But after 2 years we will charge the product 60tk from our customer. And there will be some discount as well for our promotion. But to follow this strategy we should have some qualities. Such as strong brand value, unique product, & profitable market. We also should consider that our quality and image must support its higher price. There should be enough buyers who can afford this price. We must also consider that we should able to sell enough products because when the price is higher than from economics points of view we cant sell enough goods.

Distribution strategy: After setting the price of the product we should think how we can sell this product to our target customer. For selling our product to customer we should think about our distribution channel. Distribution channel means a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business uses. We will sell our product to the consumer so we don’t think about the business user. Now the question is why the channel is important. The importance of distribution channel for our company is given below: Information: We can gather a lot of information about the consumer from our distribution channel. • Promotion: the channel members will help us to promote our product. • Contact: Finding and communicating our prospective buyers. • Negotiation: They will help us to negotiate about the price which is helpful to transfer the ownership of the product. • Physical distribution: Transporting & storing our goods. • Risk taking: they will take the risk of the buyers as well as the producer. This is why the distribution channel is important for us.

Now we will consider that which channel level we will use to promote our product. Channel level means a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyers. There are two types of marketing channel. These are: ? Direct marketing channel ? Indirect marketing channel We will follow the indirect marketing channel which means channel containing one or more intermediary levels. Our customer marketing channel will look something like this: This is our indirect marketing channel which is useful for us to provide our product to the target consumer.

As we all know that there is always some problem in the distribution channel members. So what will we do to minimize this conflict? Channel conflict means disagreement among marketing channel members on goals and roles who should do what and for what rewards. Basically our distribution channel members are in the vertical formation so we will use the vertical marketing systems to minimize this conflict. There are several ways of vertical marketing system. They are: o Corporate VMS o Contractual VMS o Administered VMS We will follow the administrated VMS.

This means coordinating successive stages of production & distribution, not through common ownership or contractual ties but through the sizes & power of one of the parties. The powerful party in this case is our company. We will dominant other members of the distribution channel and this way we will try to ignore the conflict between the channel members. But for this we should have a strong base in the market and our company has that situation and our other channel members are not big or powerful enough too dominant in the market. Because our product is new to our country so we should design the marketing channel.

We will use the indirect marketing channel. But there are several fact that we should consider while design the channel. Those things are given below: Analyzing consumer’s needs: Firstly we have to understand what are the things that our consumer is accepting from us. We must answer the question like does our consumer like to buy there juice from the nearby stores? By giving the answer we will understand the need of the consumers. Setting channel objectives: We are big company in nature but we are not big enough to support the overall distribution channel. So we must take help from some of the intermediaries.

Identifying major alternatives: Here we have to consider two things. They are types of intermediaries and the number of marketing intermediaries. We will take the help of the distribution industries to distribute our product. They will add some values to the product. Now how much distributors we will use. We will use intensive distribution that means stocking the product as many outlets as possible. Evaluating major alternatives: Here we have to consider some facts. Such as economic criteria which means are our distribution channel will be profitable for us and for other members as well.

Control issue is another thing which means how much control we will practice in our distributors. And lastly is the adaptive criteria which means is our intermediaries are flexible enough to adopt with the changing environment. Competitors As it is totally a new juice, there is no direct competitor in this industry. But there are a lots of substitute products existing in this market. As they are highly resource able company, they can enter into this market. So we always consider these competitors. |Company |Brand Name | |PRAN food and beverage Ltd. PRAN | |Akij Food & Beverage Ltd. |FRUTIKA | |Acme Aggravate & Beverage Ltd. |ACME | |Shezan International Ltd. |SHEZAN | All these mentioned companies are trying to gain a good share in this market by dint of their innovative activities. Each company is conducting various activities like advertising, dynamic branding, distribution etc. trying to positioning it’s brand in the minds of the consumers more strongly than its competitors. Even though there are some limitations to meet the market demand.

Marketing budget for the first year Statement of financing needed: Our initial financing collected in two ways. These are: I. Capital provided by the partners, II. Capital borrowed from the bank. Capital provided by the partners are not sufficient, for this reason we are applying for financing which will cover office space, office equipment, supplies five leased vans advertising and selling cost. The business total cost will be 120000000 in which the partners contribute 80000000 taka and 40000000 taka borrowed from United Commercial Bank ltd to be paid off over five years. Sources of application of Fund

Plant and Machinery Tk 4,18,00,000. 00 Transportation Cost Tk 25,00,000. 00 Staff Vehicles Tk 15,16,000. 00 Computer Tk 7,18,000. 00 Land &Building Tk 1,75,76,860. 00 Cover Van Tk 35,00,000. 00 Furniture and fixture Tk 8,54,300. 00

Freezer Tk 25,26,500. 00 Total Used Tk 7,86,80,360. 00 Cash in Hand Tk 4,13,19,640. 00 TAPAN Water Melon Juice Company Ltd Income statement For the year ended December 31, 2011 Revenue: Net Sales 2,05,00,000. 00 Less: Cost of Goods Sold: Beginning Inventory 0. 0 Add: Purchases 1,05,00,000. 00 Freight-in 2, 50,000. 00 1,07,50,000. 00 Less: Ending Inventory 12,04,500. 00 95, 45,500. 00 Total Cost of Goods Sold Gross Profit 1, 09, 54,500. 00 Less: Operating Expenses: Advertising 20, 00,000. 00 Maintaince 30,000. 0 Salaries & wages 93,000. 00 Building Rent 12,40,000. 00 Repairs 8,15,000. 00 Depreciation (Land &Building) 1,25,000. 00 Depreciation (Machinery& Equipment) 1,60,300 . 00 Office Expenses 45,000. 00 Miscellaneous 80,000. 0 Professional Fees 1,70,000. 00 Telephone 70,000. 00 Utilities 88,000. 00 Marketing Van 1,60,000. 00 Packaging Cost 12,00,000. 00 62,76,300. 0 Operating Profit 46,78,200. 00 Less: Interest Expense 42,40,300. 00 Net Profit before Taxes 4,37,900. 00 Less: Tax (40%) 1,75,160. 00 Net Income 2,62,740. 00 TAPAN Water Melon Juice Break Even Analysis for the Year Ended 31st December 2011 |Fixed Cost |Variable cost | |Land &Building |1,75,76,860. 0 |Raw Materials |95,45,500. 00 | |Machinery & Equipment |4,18,00,000. 00 |Factory Overhead Cost |80,000. 00 | |Freezer |25,26,500. 00 |Miscellaneous expenses |80,000. 00 | |Furniture and fixture |8,54,300. 00 |Salaries & wages |93,000. 00 | |Computer |7,18,000. 0 |Marketing Van |1,60,000. 00 | |Cover Van |35,00,000. 00 |Utility Bill |88,000. 00 | |Staff vehicles |14,13,000. 00 |Advertisement |20,00,000. 00 | | | |Packaging Cost |12,00,000. 00 | | | |Telephone Bill |70,000. 0 | | | | | | | | |Total Variable Cost |13,316,500. 00 | |Total Fixed Cost |6,83,88,660. 00 | | | Total cost = Total fixed cost+ Total variable cost =Tk (6, 83, 88,660. 00 + 13, 16,500. 00) = Tk 8, 17, 05,160. 00 Selling cost per unit: TK 18. 00 Variable cost per unit: TK 14. 00

Break even quantity = Fixed cost / (selling price per unit – variable cost per unit) = 6, 83, 88,660 / (25 -21) = 1, 70, 97,165 Break even sales: =Total produced unit* revenue =15, 00,000*4 =6, 00,000 |Selling cost |Variable cost |Break even quantity |Break even sales | |32 |27 |1,36,77,732 |52,50,000 | |60 |50 |68,38,866 |1,00,00,000 |

TAPAN Water Melon Juice Break Even Analysis for the Year Ended 31st December 2011 |Fixed Cost |Variable cost | |Land &Building |1,75,76,860. 00 |Raw Materials |95,45,500. 00 | |Machinery & Equipment |4,18,00,000. 00 |Factory Overhead Cost |80,000. 00 | |Freezer |25,26,500. 0 |Miscellaneous expenses |80,000. 00 | |Furniture and fixture |8,54,300. 00 |Salaries & wages |93,000. 00 | |Computer |7,18,000. 00 |Marketing Van |1,60,000. 00 | |Cover Van |35,00,000. 00 |Utility Bill |88,000. 00 | |Staff vehicles |14,13,000. 0 |Advertisement |20,00,000. 00 | | | |Packaging Cost |12,00,000. 00 | | | |Telephone Bill |70,000. 00 | | | | | | | | |Total Variable Cost |13,316,500. 0 | |Total Fixed Cost |6,83,88,660. 00 | | | Total cost = Total fixed cost+ Total variable cost =Tk (6, 83, 88,660. 00 + 13, 16,500. 00) = Tk 8, 17, 05,160. 00 Selling cost per unit: TK 18. 00 Variable cost per unit: TK 14. 00 Break even quantity: = Fixed cost/( selling price per unit – variable cost per unit) = 6, 83, 88,660 /(18. 00 -14 . 00) =1, 70, 97,165 Break even sales: =Total produced unit* revenue =15, 00,000*4 =6, 00,000 Selling cost |Variable cost |Break even quantity |Break even sales | |32 |27 |1,36,77,732 |52,50,000 | |60 |50 |68,38,866 |1,00,00,000 | Third part of the marketing strategy statement describes the planned long term sales, profit goals, and marketing mix strategy. Planned long term sales: From our analysis we can forecast our company’s long term sales.

We can show our sales forecast of our firm in a decision tree for 3 years. The decision tree is given below Expected 1st year Expected 2nd year Expected 3rd year 7500000 6000000 6500000 5000000 3500000 4500000 5500000 Note: Figures are presented in terms of TK. Marketing mix strategy: Marketing experts and professionals are developed various types of marketing mix strategies which is widely known as 4p. Now we are going to discuss those things in terms of our company • Product: Basically our company always believes on the quality of the product.

It can be easily understood that we are the follower of the product concept which means we are try to improve our product day by day. • Price: It should be followed that our price is always competitive and it also must entails us with some profit as well. The price of our various packages is given below |Product name |Price | |Juice (250 ml) |25 Tk | | | |Juice (500 ml) |45 Tk | | | | |Juice (1000ml) |90 Tk | • Place: We are trying to reach our product to the hand of every people of our country. So we are looking for developing an integrated marketing channel all over the country.

Our distribution channel & its strategy in discussed briefly in our prior discussion. • Promotion: WE WILL USE THE promotional mix to promote our product in country wide basis. Our sales promotion strategy will be ? Advertising: We will give the ad of our product in various channels in the pike time. ? Sales promotion: It means short time incentives that will raise our sales. We will use the discount for our sales promotion. ? Public relations: We will try to build good relation with the various public which are involved with our company in some way through favorable publicity, building good corporate image. Direct marketing: Here we will target various targeted customer to whom we can sell our product. Basically we will try to integrate various corporate customers to whom we can sell our product in a large scale. SWOT Analysis (Strengths, weaknesses, Opportunities, and Threats Analysis) “TAPAN Water Melon Juice” has several powerful strengths on which to build, but our major weakness is lack of brand awareness and image. The major opportunity is demand for juice that delivers a number of valued benefits. We also face the threat of ever-higher competition as well as downward pricing pressure. TAPAN Water Melon Juice” main strengths, weaknesses, opportunities and threats are below: Strengths • Consumer of our country is very much positive toward soft drink, especially the young guys. • Market has favorable environment to launch a new juice. • Internal demand for juice is rising day by day because of changing fashion. • It requires comparatively less capital investment. • Government barriers are few in case of launching a new juice. • Capacity to produce wide variety of juices. • Low labor cost. • Technologically developed that does not require extra cost.

Weaknesses • Demand of a new juice may not be able to achieve a satisfactory level of sales because of strong and well-established competitor’s like- FROOTO, FRUTIKA. . • Promotional support is not expanded to promote the new juice as a profitable one. • Lack of reputation. • Inadequate campaign budget for increasing sales of the new juice in market. Opportunities • Production of various types of juice by scientific methods can be possible by “TAPAN Water Melon Juice” because of very improved technologies which can make able to gain positive attitude toward a new juice. Demand for pure and color-free juices is increasing significantly. • Market has a huge potential for sugar-free juices for the diabetic people. • Greater opportunity of employment can be created through dealership business. • High quality sugar-TAPAN Water Melon Juices can be supplied by providing a unique competitive edge. • Employees of the “TAPAN Water Melon Juice” are very skilled that can be helpful for promoting a new juice in the market. Threats • Intense competition among strong competitors. • Capital requirement is small so any one can easily enter the juice marker. Price of juice is tending to high, so still competition occurs. • Political instability Conclusion Our mission is to establish our products TAPAN Water Melon Juice as the local leading juice through refreshment of body and mind of customers by delivering our value. We will place our advertisement at television & banner. We will distribute our product Dhaka city in the form of bottle, paper and Can packaging so that consumer can get it easily. The whole production process is in strict conformity with international standards, and constant research and development all products.

We are confident that our products and services will satisfy the highest of standards. References 1. http://en. wikipedia. org/wiki/New_product_development 2. http://en. wikipedia. org/wiki/Ideation_(idea generation) 3. http://en. mimi. hu/marketingweb/idea_screening. html 4. http://en. wikipedia. org/wiki/Concept_Development_and_Experimentation 5. http://en. wikipedia. org/wiki/Concept_testing 6. http://en. wikipedia. org/wiki/Marketing_strategy [pic] ———————– Producer Wholesaler Retailer Consumer

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