Marketing Term Paper
Marketing Term Paper
Marketing Term Paper
Executive Summary
Sun chips, a concern of Quasem Food Products Limited, has been around for five years. Quasem
Food Products Limited is a sister conern of Quasem Groups, one of the leading Industrial and
Trading houses in the country. Since its inception, Sun Chips has gained a fair amount of
popularity. However, even after being in the market for five years, Sun Chips has not yet
undertaken any serious marketing initiatives that could have otherwise increased sales volume
and profit by many folds than the current accomplishment. Currently there is no clear market
leader in the local arena. Moreover, there is an immense scope of growth for Sun Chips if it is
marketed on a large scale since it already enjoys a positive public image. Our aim in this report is
to design apt marketing strategies that will help Sun Chips clinch the numero uno position in the
local market and will also help it emerge as a tough competitor to the foreign brands.
To accomplish our objectives we have surveyed our target consumer base to pinpoint the
qualities they look for when buying chips and also to figure out their opinions about Sun chips.
We have interviewed the Sales Manager of Sun Chips to facilitate us design our marketing plan
within a realistic budget. Separate questionnaires were prepared to serve both the purposes. We
have also researched on other existing brands of chips to identify their competitive edges and
compared them with Sun Chips.
After gathering all the information and careful analysis of the qualitative and quantative data we
have come to the conclusion that the chief reason Sun chips is still lagging behind its competitors
is due to lack of promotional activities. Diversification of its product base can also help attract
more consumers. Details of the formulated marketing plan, schedule and budget for proper
implementation of this six-month advertising plan can be found in the later chapters of this
report.
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Letter of Transmittal
05 June, 2012
Mr. Khaled Mahmud
Lecturer
Institute of Business Administration
University of Dhaka
Dear Sir,
In compliance with the fulfillment of the requirements on the subject Principles of Marketing,
we are submitting to you the report, due June 05, 2012, in accordance with your instructions. We
have selected to work on the marketing strategy of Sun Chips, a concern of Quasem Group. To
prepare this report standard methodology has been employed to extract our findings. We have
then endeavored to connect our findings with the marketing concept and models taught in this
course and finally we have tried to develop a marketing strategy for our selected product.
We express our heartfelt gratitude to you, our course instructor, for giving us the opportunity to
prepare this term paper where we have had the privilege of linking the marketing theories to
establish a marketing strategy for an existing product. We hope that this report will meet your
approval.
Sincerely yours,
Muhammad Mubashshir (ZR-36)
Avirup Sarkar (JN-38)
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Table of Contents
1.0 Introduction.6
1.1 Origin of the Report..6
1.2 Purpose.7
1.3 Scope.7
1.4 Sources and Methods of Collecting Information.7
1.5 Limitations...10
1.6 Report Preview10
2.0 Company overview.11
2.1 Mission12
2.2 Vision..12
2.3 Objectives12
2.4 Products Offered..13
3.0 Situation Analysis...14
3.1 Market Summary.14
3.1.1 Market Demographics..14
3.1.2 Market Needs...16
3.1.3 Market Trend....16
3.1.4 Market Growth.17
3.2 SWOT analysis17
3.3 Competition.19
4.0 Marketing Strategy.21
4.1 Mission21
4.2 Marketing Objective ...21
4.3 Financial Objectives21
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1.0 Introduction
Chips are undoubtedly one of the most popular leisure time snacks that people of all ages love to
munch. Due to a great all-seasons demand for chips, production of chips is a very profitable
venture all over the world. The situation is no different in Bangladesh. However, particularly in
the metropolitan areas of the country, the foreign brands of chips give quite a tough competition
to the local ones. Also, there is no clear market leader among the local brands. Given the
backdrop, we have opted for a product that we believe has the potential to emerge as a market
leader among the local brands and has the potential to give a neck-to-neck competition to the
foreign brands of chips. The only stumbling block to this products ultimate success is a proper
marketing strategy. Therefore, for our Marketing Term Paper, we have worked on setting up a
new marketing strategy for Sun Chips.
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This term paper, set by our course instructor, Mr. Khaled Mahmud, is a primary
requirement for the completion of the course, M301: Principles of Marketing. We have been
assigned to prepare a term paper related to preparing a new marketing strategy including
complete market analysis for an existing product that is struggling to be top notch. We have
selected the product Sun Chips.
1.2 Purpose
The purpose is to develop a new marketing strategy for Sun Chips that will help it ascend to the
top position in the market.
The specific objectives include:
Formulate a comprehensive marketing plan that will help Sun Chips become the clear market
leader in the local arena and also give it a competitive edge against foreign companies;
To make a competition analysis where we will locate our major competitors and compare
their pricing strategy;
To present the product with a set of value propositions that would differentiate it from other
substitutes;
1.3 Scope
The comprehensive marketing plan suggested in this report will be in effect for a span of six
months. The approximate total budget for the project is 11,90,000.00 BDT.
Producers: Information was needed from the manufacturers on their current and
previous marketing strategies. We also needed to know the level of commitment they
have towards this particular product and the amount they are willing to expend on this
product.
Consumers: Consumer feedback on Sun Chips (whether they like the current product or
not) and their preferences when it comes to buying chips were undoubtedly crucial
things to know.
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Market
Survey
Interviewing
brand
managers
Focused
Group
Discussion
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2. Interviewing Sales Manager: The Sales Manager of Sun Chips was interviewed based
on a prepared questionnaire. This provided us with information on the approximate
maximum budget the company is willing to allocate for promotional activities.
(The questionnaires are given in the Appendix)
3. Focused Group Discussion: One focused group discussion was carried out. This gave us
information on the current position of Sun chips with respect to its competitors from the
consumers perspective.
1.5 Limitations
During data collection we faced a certain degree of limitation due to the following reasons:
Time constraint: The report needed to be prepared within a specified date and due to this
time constraint a larger amount of data, to increase the reliability, could not be collected.
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Our inexperience: Since this is the first time we are attempting such a project, we might
not have been able to link all the available data to the marketing strategy.
became Chairman and Managing Director of Quasem Group. Mr. Tasvir ul Islam, youngest of
the brothers is the Deputy Managing Director of all the Companies under the banner of Quasem
Group.
List of Concerns: Quasem Group consists of 13 different types of concerns. The most
successful of its concern is the production of dry cells. Quasem Drycells Limited is the largest
dry cell manufacturing company. Quasem Drycells Limited (QDL) is the pioneer for producing
drycell battery in Bangladesh. As a market leader QDL has more than 60% market share.
The company believes in diversification of its product portfolio and as part of this Quasem Food
Products Limited (QFPL) has brought real potato chips under the brand name of Sun Chips in
the food products market in the year 2007. It is currently the only product offered by QFPL.
2.1 Mission
The mission of Quasem Food Products Limited is- To manufacture quality food products at
affordable prices.
Quasem Food Products Limited places utmost priority on maintaing the quality of food. They
make sure that no compromise is done on quality in the attempt of delivering food at reasonable
prices.
2.2 Vision
Quasem Food Products Limited envisages to become a clear market leader in the local arena.
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2.3 Objectives
The specific objectives of this report include:
Analyze the current market situation and determine Sun Chips current position;
To make a competitive analysis that will locate the major competitors and compare their
pricing strategy;
Formulate a comprehensive marketing plan to facilitate it to become the clear market leader
in the local arena and give it a competitive edge against foreign companies;
To present our product with a set of value propositions that would differentiate it from other
substitutes;
Wasabi
Classic
Tomato Tango
Masala Mix
Cream Onion
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Segment 1: This segment comprises of pre-school kids and school-going children (4-14
years). We are primarily focusing on the male kids as our survey reflected that female
kids prefer chocolates to chips. This age group is under strong parental supervision and
their life centers around school mostly. In their free times they indulge in outdoor games,
video games or cartoons. We are targeting kids belonging to the middle class and uppermiddle class having a monthly income of approximately 20000-150,000 BDT.
Segment 2: This segment comprises of teenagers and young adults (14-22 years). We are
targeting both male and female in this segment. People in this segment have lives
centering around school/college/university, coaching centers. They also tend to have
frequent hangouts. They actively take part in extracurricular activities. The parental
supervision is relaxed. Many people in this target segment start earning (employed as
private tutors). Their monthly salary falls in the 10,000-15000 BDT range.
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Segment 1
Age: 4-14 years (School children)
Gender: Primarily Males
Social Class: Middle class-upper
middle class
Lifestyle: Heavily School Oriented,
Parental Supervision, Outdoor
Games, Video Games & Cartoons
Monthly family Income: 20000150,000 BDT
Segment 2
Age: 14-22 years
Gender: Males and females.
Social Class: Middle Class- Upper
Middle Class
Life-style:
School/College/Universities,
Coaching Centers, Hangouts, ExtraCurricular Activities
Income (Pocket money/income):
3000+
Taget Segments:
Ratio of Segment 1 to Segment 2
Segment 1
Segment 2
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Price- Quality Interface: Consumers put almost equal weight on price and quality of
chips. There is a demand for the best quality at the most affordable price.
Wide range of flavors: Greater number of flavors gives consumers a sense of freedom
of choice. New flavors are usually welcomed.
Wide range of packaging sizes: The range of packaging sizes offered by a brand also
matters. Consumers will opt for the pack size that best suits their needs during different
situations; for example: small or medium pack will be usually chosen when its bought for
one person (tiffin time, evening snack, etc.) and the large pack is usually bought for two
or more people (gathering for a football or cricket match, hang-outs).
Accessibility: People will usually not be willing to travel great distances to obtain their
favorite brand of chips. They usually choose from the range of chips offered at shops in
their vicinity, most preferably the shop nearest to their home/school/workplace.
The most important factor for the purchase of chips is its availability. The brands of chips
that are available in the consumers milieu will be bought most.
Consumers end up buying the pack that offers the best interface between price and
quality.
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Sales
Range of Flavors
Brand Name
Price
Range of
packaging sizes
Accessibility
Quality
The growth of market for chips is fairly high due to entry of new competitors.
The price of chips are determined by two opposing forces- increase in prices of raw
material and competitor pricing strategy. Considering the two factors an ideal price best
suiting the companys mission is set.
STRENGTHS
WEAKNESSES
1. No serious marketing
efforts as yet
2. Less visible
OPPORTUNITY
1. No clear local market
leader as yet
2. Good scope for branding
3. Fresh start for
marketingities
THREATS
1. New foreign brands might
move in.
2. Price of raw materials
might increase and it might
be difficult to maintain the
price edge over competitors
then.
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3.3 Competition
The competitors of Sun Chips can be grouped into two:
Foreign Brands
Local Brands
The holistic consideration of price-quality-taste places Sun chips quite ahead of its chief local
competitor Potato Crackers of Bombay Sweets. When compared with its chief foreign
competitors- Lays and Pringles- Sun Chips is not lagging behind much.
140.00%
120.00%
100.00%
80.00%
Quality
Taste
60.00%
Price
40.00%
20.00%
0.00%
Lays
Pringles
Sun Chips
Potato Crackers
Figure 11: Price-Quality-Taste Comparison of Sun Chips with Its Chief Competitors
When considering market share in terms of turnover Sun chips is in a quite strong position
among the local brands. It has already outdone many brands that had been in the market for a
much longer period.
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Meridian
Sun Chips
Mr. Twist
Ring Chips
Others
Figure 12: Market Share in Terms of Turnover for Sun Chips in the Local Market
When considering market share in terms of turnover Sun chips is still lagging behind
considerably among the foreign brands.
Lays
Sun Chips
Uncle Chips
Others
Figure 13: Market Share in Terms of Turnover for Sun Chips in the Foreign Market
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4.5 Strategies
Developing the marketing mix: The marketing stage is the most crucial stage of marketing
planning process. It refers to the combination of four factors- product, price, place and promotion
the core components of a business strategy. Our marketing mix has been designed to staisfy the
wants of our target groups and to achieve the objectives we have set.
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Four Ps Analysis
1. Product
Many of the brands of chips, particularly a few foreign ones, have met many criticisms
regarding filling their chips pack with more air, less chips. Hence these packs do not deliver
the actual quantity they promise to deliver. Sun Chips already has packs that provide actually
considerably greater amount of chips as compared to some foreign brands who promise to
deliver the same quantity.
To provide a quantity closer to the one promised by the packaging we are going to lauch a
new product offering- Sun Stax. It will come in two different sizes 75g and 150g. This
product will give us competitive edge in many ways
This product will have price edge over its foreign counterparts.
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2. Price
Since Sun Chips pricing is one of its major cometitive edge against the foreign compeititors and
since Sun Chips is already delivering quality product at this price, we are going to keep the
prices for the existing products the same.
For the new offerings- Sun Stax- the prices will be:
3. Place
Our prime focus will be on Dhaka and Chittagong. The major schools in these two areas will be
targeted for heavy sales promotions. These places have a large student base and a large percent
of our segment comprises os school students. Majority of our target group can then receive the
news. It will then be easier to heighten our product visibility and highlight new sales promotion
offers.
The prime target schools of Chittaging City would be
Saint Placid
Mastermind
Among the prime target schools of Dhaka City few schools are listed below
Mastermind
Maple Leaf
Figure 15: Target places for heavy Sales Promotion in Dhaka City
4. Promotion
TVC
We will not be giving any TV Commercials as our target groups do not watch the Bangla
Channels much. TVCs are expensive and will not be effective as it will not serve our
purpose.
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Radio
Majority of the people in our target group are regular listeners of Radio. Henceforth, the
radio advertising will be very effective. Due to budget constraints we will be primarily
airing our advertisements in the top three FM Radio Stations of the country- Radio
Foorti, Radio Today and Radio Aamar.
Billboards
Billboard advertisements will be effective too. We will want to advertise on billboards
that are nearer schools and colleges as that will convey our message to the target mass
more effectively.
Spelling Bee,
Debate Tournaments
Concerts, etc.
Internet Memes
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Memes are extremely popular among members of our target group. So effective
advertisement can be done through memes on facebook. Such memes will be published
on our Official Facebook Fan Page. Its free of cost and will help spread our message.
Posters
Posters will be used around school/college/university areas to inform the cunsumers
about our latest promotional offers.
Toys
Toys will be offered in special packs made for school children. Ben 10 is an extremely
popular cartoon among school kids and so our packs of Chips of chips will have Ben 10
action figures in them. This will attract our target group even further.
5.0 Financials
5.1 Budget:
Marketing Efforts/ Tools
Radio Advertisements
Billboards
Viral Marketing
Postering
Promotional Gifts(In 35
Sponsorships
Total
Advertisement Rates:
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4825780.55
Marketing Expenses
0.59
0.72
Break Even Point = TFC/( Selling Cost Per Unit - Variable Cost Per Unit)
= 37121388.9gm
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July2008-June2009
12,400,000.00
July2009-June2010
17,640,000.00
July2010-June2011
30,890,000.00
July2011-June2012
42,690,000.00
July2012-June2013
85,000,000.00
Until August2012 there was no marketing effort for Sun Chips. If the condition remained same
then the expected net sales in the period of July2012-June2013 would be 65113333.33 Tk.
approximately but as we are now undertaking marketing efforts it should turn out to be
85000000 Tk.
90,000,000.00
80,000,000.00
70,000,000.00
60,000,000.00
50,000,000.00
40,000,000.00
30,000,000.00
20,000,000.00
10,000,000.00
-
Net Turnovet(TK.)
July2008-June2009
July2009-June2010
July2010-June2011
July2011-June2012
July2012-June2013
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Year
July2008-June2009
July2009-June2010
July2010-June2011
July2011-June2012
July2012-June2013
80,000,000.00
Expense Forecast
70,000,000.00
60,000,000.00
50,000,000.00
40,000,000.00
Selling and
Marketing Cost
30,000,000.00
20,000,000.00
10,000,000.00
-
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6.0 Controls
6.1 Implementation
The following Gantt Chart displays our key marketing activitiesAugust
September
October
November
December
January
February
Radio Channels
Posters
Billboard
Promotional Gifts
Viral Marketing
Sponsorship
Radio Channels: The radio advertisements will be aired on the top three Radio Channels
in the city- Radio Foorti, Radio Today and Radio Aamar. They will be aired during the
times our target group is most likely to listen to the radio. It will be aired during two time
slots at 15 minute intervals (7 a.m. to 9 a.m. and 11 p.m. to 1 a.m.). From 7 a.m. to 9 a.m.
the traget group listen to radio on their way to school/college/university while being stuck
in traffic. Late night shows have a large teenage listener base.
Two radio ads will be aired. The first one announcing the coming of Sun Chips from one
months before its launch (August-September). The second ad will be based on exam time
theme and aired during November and December.
Posters: Posters will be distributed to the target group during August and September. It
will be announcing the launch/arrival of Sun Stax.
Billboards: Billboards near Manik Mia Avenue, New Market, Mohakhali Flyover would
be used for announcing launch of Sun Stax two months earlier.
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Promotional Gifts: Promotional Gifts of Ben 10 action figure will be offered from
September to December.
Viral Marketing: Will be done from August to October to let the consumers know of the
new steps taken by Sun Chips
Sponsorship: Bulk of the youth events tend to take place during September, January and
February, so these are the months that Sun Chips will indulge in active sponsorship.
If there is a price hike of the raw materials it will be difficult for Sun Chips to maintain
its price edge over competitiors.
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Worst-Case Risks
In the near future the business might find that it can no longer support itself on an
ongoing basis.
7.0 Conclusion
The fact that Sun Chips has shown a steady growth rate of 15% since its inception without any
sort of serious marketing efforts testifies the fact that it has an immense potential of growth if it
is marketed properly. Our planned intensive promotional activites will heighten its visibility and
hence its sales. The introduction of the new product offering- Sun Stax- has the potential to
attract new consumer base- the upper class.
As this marketing strategy is put into effect, we would expect the sales of Sun Chips to rise
exponentially.
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References
1. Principles of Marketing by Philip Kotler, Gary Armstrong, Veronica Wong, John A.
Saunders
Pearson Education, Prentice Hall, 2008
2. Marketing Management by Philip Kotler, Kevin Keller, Mairead Brady
Pearson Prentice Hall, Apr 9, 2009
3. Wikipedia- The Free Encyclopedia; www.wikipedia.org
4. Quasem Group Profile
Retrieved from:
http://www.bangla2000.com/BusinessWorld/Company_Profile/Quasem/Quasem_Group.
shtm
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Appendix
Questionnaire for Consumers
Age:
Sex:
Income:
Questions
Strongly
Disagree
Disagree
Neutral
Agree
Strongly Agree
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