MG 206 Assignment 1

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 12

UNIVERSITY OF

THE SOUTH
PACIFIC

MG 206:
MARKETING
PRICIPLES AND
STRATEGIES
ASSIGNMENT 2
SEMESTER 1, 2014

WAASHNA KUMAR (S11072673) Page 1


NAME: WAASHNA KUMAR
ID: S11072673
USP LAUTOKA CAMPUS
Breadfruit (Artocarpus Altilis) belongs to a species of flowering tree which is a very special kind
of fruit that has its various advantages and qualities. This is the first time processed crispy
breadfruit chips will be available in the market for the people to enjoy. A more detailed
marketing strategy is provided that outlines the product description and also provide relevant
product information.
PRODUCT DETAILS
PRODUCT NAME: The name of the product is ‘Crispy Belfruito Chips’ because the name
portrays to the consumers that this snack is a final product that is extracted from breadfruit
(belfut). Breadfruit is one of the highly delicious energy giving fruit grown in Fiji and this is the
first time the consumers will taste the unique favorable snack that will alter their taste buds.

PRODUCT DESCRIPTION: ‘Crispy Belfruito Chips” processed and packed in 60g polythene
bags under nitrogen packaging to make the delicate snack stay fresh and crispy. The plastic bags
are silver to keep out light. The packet of the potato chips is occupied with the nitrogen gas to
avoid oxidation hence preventing rancidity (rancidity is decomposition of oil and fats that results
in denoting unpleasant smell).

PRODUCT INGREDIENTS: The ingredients that was used to make this product are as
follows; raw breadfruit, vegetable oil, turmeric powder and salt. The ingredients were combined,
processed and packed which was later distributed locally to the wholesalers and retailers for sale.
POSITIONING: Breadfruit is an energy giving fruit which is high in carbohydrates and fiber.
This ‘Crispy Belfruito Chips’ is Fiji’s finest snack which is tastier and healthier compared to
other snacks in the market. Even though the snack will be available for the general public for
consumption, the targeted audience for this product is mostly for younger generation and
teenagers since it is a delicious crunchy snack which quickly attracts their attention.
UNIQUENESS: “Crispy Belfruito Chips” is a product cleaned, sliced, processed and packed for
the customers to purchase and enjoy the nutritional and refreshing taste bought for any occasion
for consumption. Since it is the first time this product will be available in the market, the
consumers will be eager to taste this new ‘Crispy Belfruito Chips to experience the value, quality
and goodness of the product.
BENEFITS: The benefits of ‘Crispy Belfruito Chips’ is that it is rich in energy and fiber which
delivers high level of healthy nutritional benefits to the person who consumes it. Fiber controls
cholesterol, diabetes makes our intestine and bowels function properly. It also contains Omega-3
and Omega -6 fatty acids which helps the body and mind to normally develop. Furthermore, the

WAASHNA KUMAR (S11072673) Page 2


major supermarket (MH, NEW WORLD, SHOP AND SAVE, COST U LESS, RB PATEL,
RAJENDRAS) will have this product in the shelves at cheaper prices easier for the consumers to
purchase the product from local supermarkets due to easy accessibility.
SHELF – LIFE OR EXPIRY DATES: A ‘best-before/expiry dates’ (date mark) on the label in
the product is for one year starting from the day the good was manufactured. A ‘best-before’ date
relates to the quality of the product.

PACKAGING: ‘Crispy Belfruito Chips’ nitrogen packaged in 60g polythene bags in suitable
size and holds no preservatives. All processed and packed under suitable gauge to prevent
spoilage and keep it stay fresh and crispy.
LABELS: For the label refer to APPENDIX 1

WAASHNA KUMAR (S11072673) Page 3


PRODUCT PRICING

PRICE DETERMINATION CALCULATION (60g CRISPY BELFRUITO CHIPS)


Cost budget per half Quantity per half Cost per unit
year year (packets) (packets)
VARIABLE COSTS
Direct Material
Bread Fruit $6200 50000 $0.124
Vegetable oil $4100 50000 $0.082
Salt $700 50000 $0.014
Turmeric Powder $500 50000 $0.01
Polythene bags $ 3000 50000 $0.06
Direct Labor
1 worker $4600 50000 $0.092
1 worker $4600 50000 $0.092
1 worker $4600 50000 $0.092
1 worker $4600 50000 $0.092
1 farm worker $3500 50000 $0.07
Other Variable Cost
Electricity $2300 50000 $0.046
Water Bills $1000 50000 $0.02
Transportation $1500 50000 $0.03
Other Cost $1000 50000 $0.02
Total Variable Cost $43000 50000 $0.844

FIXED COST
Rent $5400 50000 $0.108
Advertising $3500 50000 $0.07
Machine Cost $4000 50000 $0.08
Factory Machine $4800 50000 $0.096
Depreciation
Total Fixed Cost 17700 50000 $0.354
Total Cost $60700
Total Unit Cost $1.198
Add : 25% mark-up $0.2995
Selling Price $1.50

WAASHNA KUMAR (S11072673) Page 4


The company is new to the market therefore it is at preliminary stage and is still developing.
Looking at the economical point of view, it was considered the production will be carried out for
half of the year to observe what the customer feedbacks are and then later on expand the
production to other part of the country in Fiji and as well consider the international markets too.
Since the company has a 15 acre free hold land, the breadfruit has been planted and picked from
there for processing hence saving the other additional cost.
The major competitor here is FMF. The cost of the 45g packet cassava thumbs up chips is $1.25.
However, out company will sell 60g for $1.50 which is way cheaper because it is extracted from
a healthy energy giving fruit which consist of nutritional benefits. Another competitor in the
market is Punjas which sells 45g ‘Mister Potato Chips’ at $2.25. Our product is packed ready to
eat with attractive product design attracting attention of the customers, they will be eager to try
out this new product in the market.
PLACE/DISTRIBUTION DETAILS
“Crispy Belfruito Chips” will be sold in some of the major local supermarkets which act as
retailers and distributors of this products and supply to appropriate stores located in Fiji. Stores
such as MH, RB Patel, Cost U Less, New World Supermarkets and Shop and Save. The reason
as to why it will be distributed to these stores whole of Fiji because breadfruit is a kind of fruit
which the Fiji citizens love consuming thus will be eager to try out this new crispy and tasty
product in the market. People are scattered everywhere who list breadfruit as one of their favorite
fruit therefore keeping that in mind, the supply of this new product will be made to the respective
supermarkets available for consumers to purchase.
The reasons as to why these relevant supermarkets were chosen to sell the ‘Crispy Belfruito
Chips’ is because these are the shop where large quantity of consumers usually purchase the
goods from as it is a well re-known standard supermarket where not only the price but the quality
also matters. Due to the high reputation of these supermarkets, the product itself will be highly
recognized by the customers therefore they will boost the demand for the Fijian made products
(Crispy Belfruito Chips).
The product will be sold via retailers, distributors and the company will also sell directly to the
consumers. Retailers are well developed and are experts in these field with higher network
tributaries efficiently connected with the costumers therefore they will assist our company in
selling the products to the large quantity of customers as well as reaching out to the other
convenient stores selling our product thus acting as distributors as well in this process. Ashabhai
Co Ltd and CJ Patel are the famous distributors in Fiji therefore they have gained a lot of trust

WAASHNA KUMAR (S11072673) Page 5


from their loyal customers in regards to the goods and service they provide. Using these two
companies as distributors is convenient enough to sell our products to various supermarkets.
As listed above and re-emphasizing again that the retailers are the supermarkets namely MH,
New World, Shop and save, RB Patel and Cost u less and the distributors will be Ashabhai Co
ltd and CJ Patel.

PROMOTION
Media plays a vital role in the promotional of any product in any organization. Hence, we will
make use of these media availability to influence the customers. The media mechanisms such as
TV advertisement, newspaper advertisement, radios advertisement as well as bill boards will be
put up to promote the product ‘Crispy Belfruito Chips’. As for the TV channels, Fiji TV and
FBC TV will be utilized for the advertisement to attract more attention of the viewers and
effectively informing them about this new product in the market.
The television advertisement will be shown during news break and as well as popular show
break (Yahan Mein Ghar Ghar Kheli, Pavitra Rista (FBC), Shortland Street (Fiji One) and also in
sports break. This is the time when the teenagers as well as the elder generation can be informed
about the product. The advertisement will also be played during cartoon breaks so the younger
generation will be informed too about Crispy Belfruito Chips. Advertisement in radio will be
played in all the stations to attract the listeners from various ethnic backgrounds in Fiji and
overseas (Fiji Village, FBC website). See Appendix 2 for advertisement.
Another promotional technique will be used whereby Bill boards will be placed around the busy
street in various locations to attract attention of the public about the new product in the block.
Flyers given out to the public by employees of our company to deliver the messages and the
relevant details intact that convince the customer to purchase ‘Crispy Belfruito Chips’. See
Appendix 3 for billboard advertisement
Due to the advancement in technology most people are now familiar with social networking sites
such as Facebook. Details about this product together with the pictures will be also posted on
Facebook to promote a Fijian made product. Advertisements will also be shown in cinemas
(Damodar City complex- Damodar Vent, Village 4 and Village 6 cinemas) alerting and
informing them about this new product in the market.
Additionally, another technique can be running a competition where the consumers have to send
in two barcodes to the given address of the ‘Crispy Belfruito Chips or drop it in the entry bins
provided in major supermarkets and get into the draw to win fabulous prizes. The prizes include
Vodafone free talk times, 1 iPhone 5s, 2 laptops, 1 XBOX 360 and also 5 hamper packs. As you
can see that the prizes that are listed above are to attract customers particularly the younger
generation.

WAASHNA KUMAR (S11072673) Page 6


WAASHNA KUMAR (S11072673) Page 7
BIBLIOGRAPHY

Naturalfoodbenefits.com. 2014. Breadfruit Health Benefits. [Online] Available at:


<http://www.naturalfoodbenefits.com/display.asp?CAT=2&ID=121> [Accessed 20 Apr. 2014].

Whfoods.org. 2014. What is rancidity? [Online] Available at: <http://whfoods.org/genpage.php?


tname=dailytip&dbid=356&utm_source=rss_reader&utm_medium=rss&utm_campaign=rss_fee
d> [Accessed 20 Apr. 2014].

WAASHNA KUMAR (S11072673) Page 8


APPENDIX 1

BREADFRUIT CHIPS
INGREDIENTS:BREADFRUIT,
VEGETABLE OIL, SALT AND TUMERIC

NUTRITIONAL INFORMATION
SERVING PER PERSON: 1
SERVING SIZE : 60g
Average Average Quantity
Quantity per 100g
per serving

Energy 1004kJ 2230kJ


Protein 1.21g 2.43g
Fat, Total 14.7g 32.7g
Carbohydrates 25.6g 56.8g
-Sugar 0.4g 0.9g
Dietary Fiber, 5.5g 7.9g
total 2.0mg 4.4mg
Sodium 498mg 721.9g
Potassium 647g 870.9g

Vitamin C 38% Calcium


2% Iron3%

KUMARS

MANUFACTURIN

WAASHNA KUMAR (S11072673) Page 9


60g
CRISPY
BELFRUITO
CHIPS

DELIGHT IN
EVERY BITE

CRISPY
BELFRUITO
CHIPS
DELIGHT IN

APPENDIX 2

WAASHNA KUMAR (S11072673) Page 10


A NEW BREED
OF SNACK IS IN

TOWN
A DELICIOUS CRUNCHY
SNACK INTRODUCED IN
FIJI FOR THE VERY FIRST
TIME
60g

CRISPY
BELFRUITO
CHIPS

DELIGHT IN EVERY
BITE

Crispy Belfruito Chips is a Fijian made snack that alters your taste buds from the first
bite giving great level of satisfaction.

This crispy snack is in the stores near you so buy and support your country, promote
Fijian made Products and help keep the money in our country.

APPENDIX 3

WAASHNA KUMAR (S11072673) Page 11


CRISPY 60g
BELFRUITO TOTALLY NEW SNACK IN
CHIPS
TOWN
DELICIOUS MOUTH
DELIGHT IN
WATERY
EVERY BITE

‘CRISPY BELFRUITO CHIPS’


DELIGHT IN EVERY BITE

HAVE TO BUY TO TRY

WAASHNA KUMAR (S11072673) Page 12

You might also like