MKT 460 Strategic Marketing sec: 9

Group: PASSENGER

MARKETING PLAN

On

Submitted to: Dr. Bashir Hussain (BHN)

Department of Marketing & International Business

Assistant Professor, North South University.

Submitted by: Name ID

Sakib Morsalin 0930803030

Imran Hasan 1510018030

Farhana Nazneen Navila 1530761630

Anupam Saha 1330684030

Ashfak Islam Abir 1631562030

Sazid Bin Solman 1512693030

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LETTER OF TRANSMITTAL

18th December, 2019.

To,

Dr. Bashir Hussain

Assistant Professor, Dept. of Marketing and International Business

School of Business and Economics

North South University

Subject: Submission of final report.

Dear Sir,

With due respect, we would like to inform you that we are done with our project. It is a great
pleasure for us since we have completed the project successfully under your active supervision.

We have tried our level best to gather related information and industry insight to complete this
project. If we have made any mistake and if there is any unnecessary information please forgive us
we are humbly begging your pardon. It was an amazing experience for us to launching a new fruit
drink brand. We have tried to make this project as meaningful as possible within the time limit and
resources that were available to us.

Yours Sincerely,

Sakib Morsalin

Anupam Saha

Imran Hasan

Farhana Nazneen Navila

Ashfak Islam

Sazid Bin Solman

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Acknowledgement

I would like to thank our course instructor Dr. Bashir Hussain sir to give us an opportunity to work
on this project. It was a very helpful project for us. We learnt a lot of this during this project. This
project gave us an idea how to make marketing plan for a brand and how to execute those in real life.
At last I would like to thank my group mates for their hard work. Without them this project couldn’t
come to the end.

Executive Summary

The vital reason behind this strategy for success is to portray the potential benefit of healthy fruit
drink in Bangladesh market. So far we know that in Bangladesh the fruit drink industry in
Bangladesh is comprised with different local fruit drink brands along with some foreign brands.
Although variety of flavor and the taste very close to the fruit itself and at the same very healthy is
something that the existing juice manufacturing companies has failed to provide to its customers.
This is the prime reason behind launching our fruit drink COCO FRESH to meet that particular need.
COCO FRESH will contain very low fat and rich vitamins, minerals also healthy nutrients and it will
be available in only one flavor which is Coconut water. No artificial ingredients will be added to
keep it as organic as possible. Currently the number of health conscious people Bangladesh is
growing in a very rapid pace and our product will gain immense popularity among those people since
we won’t be adding any sort of harmful ingredients in our product and it will be made out of the
freshest ingredient possible.

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 Table of Contents
General Company Description............................................................................................................................5
SWOT Analysis....................................................................................................................................................5
Strengths........................................................................................................................................................6
Weakness.......................................................................................................................................................6
Opportunities.................................................................................................................................................6
Threats...........................................................................................................................................................6
Competitor analysis............................................................................................................................................6
Environment Analysis.........................................................................................................................................8
Marketing Objectives.........................................................................................................................................9
Creating brand image:....................................................................................................................................9
Customer relation:..........................................................................................................................................9
Sales increase:................................................................................................................................................9
Market share:.................................................................................................................................................9
Focus on marketing terms:.............................................................................................................................9
Maintain competition:....................................................................................................................................9
Increase profit:...............................................................................................................................................9
MARKET STRATEGY...........................................................................................................................................10
Segmentation...............................................................................................................................................10
Target market...............................................................................................................................................10
Positioning Statement..................................................................................................................................10
POD..............................................................................................................................................................10
Marketing tactics..............................................................................................................................................11
Financial Projection..........................................................................................................................................12
Fixed Cost.....................................................................................................................................................12
Rent..............................................................................................................................................................12
Insurance......................................................................................................................................................13
Employee Salaries.........................................................................................................................................13
Loan Payments.............................................................................................................................................13
Machine........................................................................................................................................................13
Variable cost.................................................................................................................................................13
Raw materials...............................................................................................................................................13
Commissions................................................................................................................................................13
Action plan.......................................................................................................................................................14
References........................................................................................................................................................15

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General Company Description
Nowadays in Bangladesh along with plain water drinking different sort of beverages is gaining wide
range of popularity and among these beverages fruit drink is a significant one and day by day its
market along with the demand is growing in a very fast pace.

“PRAN” is currently the most admired food & beverages brand in Bangladesh and also in other 106
countries of the world where PRAN Products are regularly being exported. All the PRAN products
are produced as per international paradigm maintaining top class level of quality at every stages of
the production process.

In fruit drink industry of Bangladesh PRAN is the current industry leader with their highest selling
fruit drink Frooto and also with their flavored drink brand Drinko. Along with PRAN, we have Akij
Foods and Beverage Ltd. who has Frutika juice in different flavors and we also have Shezan Mango
juice etc. They are basically the key players in fruit drink industry of Bangladesh. So, in this
competitive market we are launching our own fruit juice brand named “COCO FRESH”which is
basically Coconut Water. Yes it’s true that there are so many juices are already available in the
market but it is also true that Coconut Water is not available. So, it is a great opportunity for us to
launch a juice which is Coconut Water to make profit within a short period of time. Our startup
business is all about providing a healthy and pure organic juice which is made out of best and
freshest ingredient possible. We are moving forward with a strong commitment of the providing
healthiest possible fruit drink. We are targeting the highly health conscious people of Bangladesh.
Our customers will gain vitamins, minerals and also other rich nutrients from “COCO FRESH”. Our
product will initially launch in three metropolitan areas Dhaka, Chittagong and Sylhet.

SWOT Analysis
SWOT Analysis is a strategic planning technique used to help a person or organization identify
strengths, weaknesses, opportunities, and threats related to businesscompetition or project planning.It
is intended to specify the objectives of the business venture or project and identify the internal and
external factors that are favorable and unfavorable to achieving those objectives. Users of a SWOT
analysis often ask and answer questions to generate meaningful information for each category to
make the tool useful and identify their competitive advantage. SWOT has been described as the
tried-and-true tool of strategic analysis,but has also been criticized for its limitations. The SWOT
analysis of Freshly Juice is shown below.

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Strengths
For our customers, coconut water contains four electrolytes: sodium, magnesium, calcium, and
potassium. These ingredients works together to support the human body with what it needs to stay
hydrated. Coconut water is gluten free, lactose free and dairy free.Whether you drink coconut water
before a big meeting or after a hard workout, coconut water will hydrate you. It has available input
materials with a low production cost. We also have a strong distribution channel, easy manufacturing
with reasonable pricing. It stays fresh therefore it does not need any artificial flavors or added
preservatives. The availability of the product will be easy as it will cater a larger market rather than
street vendors. As a producer, Nestle has a good Customer Relationship and strong reputation for
high quality brands, dealing with hygienic and healthy products. They will be able to cater a good
market share.

Weakness
It will be quite easy to replicate the idea by other competitors. The ambiguity over what can be
termed as natural, organic and a super food may affect how coconut water is marketed and in turn
interpreted to the market.

Opportunities
There can be changes in lifestyle, such as longer work hours, more women in the workforce and
more single-person households. There is an increase the demand for pre-packaged foods which will
aid to grab the market. Increased interest in health and nutrition could increase the demand for some
Nestle products, such as energy drinks. Iflauricacid(found in mother’s milk) is in fact present in
coconut water then there could also be scope to market coconut water to expectant mothers and new
mothers as a supplement to their diet which is a wide opportunity.

Threats
It requires proper cool storage facility. There is competition from other beverage industry. There is a
threat of climate change, local street vendors. There are too many brands fighting for a slice of the
market. Supermarkets who they sell to (not all brands can get a listing) and how they position and
retail coconut water (poor pricing could put off consumers). Aggressive advertisement would be
required and uncertainty of availability of coconuts.

Competitor analysis
Existing juice brands like Frooto, Shezan, Frutika, Drinko etc. are making fruit drinks in Bangladesh
for quite a long time and now on. These companies are our possible competitors. 30% people of our
country are regularly drink mango juice, 60% drink often and 10% rarely drinks juice. This market is
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profoundly competitive. These brands are spent significant time in making organic product drink
from preserved fruits and other related ingredients. There are some outside brands additionally exists
in advertise among them Tropicana is the most potential one. Refreshments industry is developing in
Bangladesh as proposed a developing number of items. People like to have a taste of juice or
beverages any place and at whatever point they need. If we follow the certain customer perception,
we would notice that consumer prefer juice or other drinks more than water, water bottles on dining
tables are increasingly replaced by other sort of drinks, and water is there but as an optional. The
refreshment business of Bangladesh is developing step by step so it's an open door for us to enter this
market. Also, we are going to offer exclusively health conscious natural product drink with a very
refreshing taste which is somewhat new in Bangladeshi market no other organization ever in
Bangladesh have done it previously. Along these lines, that is a great competitive advantage for us in
the market.

This table shows the current juice market share in Bangladesh

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Distribution price margin

Company Quantity MRP Distribution Distribution

Price price Margin
Frooto 250ml 25tk 20tk 5tk
500ml 40tk 35tk 5tk
Frutika 250ml 22tk 18tk 4tk
500ml 40tk 30tk 10tk
Shezan 250ml 25tk 17tk 8tk
500ml 35tk 22tk 13tk
Drinko 250ml 25tk 20tk 5tk
Tango 250ml 16tk 10tk 6tk
500ml 28tk 20tk 8tk

This table shows the distribution price margin of some leading fruit juice manufacturer in
Bangladesh.

Environment Analysis
Political: If the ruling party changes, if the rules change then the industry might face a big change. It
will lead to a big change in my company also.

Economical: The standard vat rate is 15% in Bangladesh. Suppose the government decides to
increase the vat rate to 30% for beverage industry. It will create a huge problem for us.

Social: Changes in social norms, habits, trends, activities create a big change in the business
industry.

Technology: If we don’t improve with time then my competitors will eliminate us from the market.

Environment: Environment is deeply connected here. Any natural disaster can hamper a company.
For example flood can hamper the production.

Legal: Legal policies can be created any time. Any legal policy that goes against the company can
hamper the company. Government can ban any product and if the company product is banned, it will
cause a heavy loss in a very short period of time.

Marketing Objectives

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As “COCO FRESH” is a new product in the market, it is challenging by little to achieve better
market position. We will always try to overcome these challenges with the help of our marketing
strategies. And for this we will follow some activities that includes are:

Creating brand image: We will try to maintain our juice quality so that potential consumers
must feel the need to recall our COCO FRESH juice on every morning breakfast. We will post all
types of health related information on our web pages and social media. Ads will be made endorsing
popular celebrity and health influencers which will attract the health conscious people and build trust
about our product.

Customer relation: We will make sure a very descent relationship between customer and
company. All customers opinions and asking will be granted regarding product because co-creation
sometimes helps to maintain better customer relation.

Sales increase: We will increase the sales by giving an affordable price for all economic class
people. Various types of discounts and offers will be provided to the consumer which will make
sales increase.

Market share: Increase market share to at least 25%.

Focus on marketing terms: We will follow SMART approach of marketing objectives which
will give specific, measurable, achievable, realistic and time-specific results in terms of setting up
objectives.

Maintain competition: To cope up in the market, our company must have to know what
competitors are doing by a huge market research. We will take actions thinking about our existing
competitor’s move.

Increase profit: Increasing profit is one of the most core marketing objectives. We believe that
after couple of months of launching the product will face notable profit with the better quality and
price.

MARKET STRATEGY
Segmentation, Targeting and Positioning (STP)

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Segmentation, Targeting and Positioning (STP) together involve a three phase process. We initially
figure out which sorts of customers exist, at that point we select which ones we are best off
attempting to serve and, at last, execute our division by upgrading our items for that segment.

Segmentation
The purpose behind this market segmentation model is to show that while customers are for the most
part getting some type of refreshment, their necessities and circumstances are diverse over the
market segments, which implies that they are looking for different benefits. In terms of demographic
segmentation COCO FRES is targeting people from 15 – 40 above years old age group wise but
since COCO FRESH is highly a healthy fruit drink thus people from any age group can actually
enjoy it. Initially COCO FRESH will be available in two size 250ml and 500ml and the retail price
will be 35tk and 50tk respectively thus income group wise our target is mid to high income people.
Geographically we segmented our product for three metropolitan area of Bangladesh and those areas
are Dhaka, Chittagong and Sylhet.

Target market
COCO FRESH is solely targeting the people who are highly health conscious. Currently in
Bangladesh popularity and demand of healthy fruit drink is growing day by day thus we have
decided to target this particular group of customers to offer them the freshest fruit drink possible.

Positioning Statement
For highly health conscious people, who are searching for excellent, fresh and healthy fruit drink?
COCO FRESH’s sole intention is to meet that particular need of these particular groups of
customers. COCO FRESH is going to be made out of the freshest ingredients possible with rich
vitamins, minerals and nutrients and we are highly committed to maintain a superior quality from the
very fast to the very last stage of our manufacturing process so that we can provide freshest fruit
drink possible to our target customers.

POD
Bangladeshi people are highly health conscious nowadays and a sound portion of people looks for
healthy fruit drink rather than having a regular soft drink which contains very high fat. Thus our
POD is we are the only brand in Bangladesh who is offering highly healthy fruit drink for ultra-
health conscious people. No other companies in Bangladesh have ever done this before.

Marketing tactics
Product

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COCO FRESH is launching as a natural fruit drink in market. There will be no sign of artificial
ingredients in our product since our prime aim is to offer a superior healthy fruit drink. Since our
target customers are health conscious people only thus our juices contains rich vitamins, minerals
and nutrients while maintaining a great quality.

Product Life Cycle

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4
SALES

2
0
Introduction Growth Maturity Decline
TIME

Our Product life cycle is in the Introduction phase, as COCO FRESH has just entered in to the
market, where product awareness is not strong; therefore, we face “low” sales initially.

Price

As a new comer we have come to a decision that we are going to introduce our product at a relatively
high price compare to our potential competitors since we are targeting a small market. We have
settled down our pricing plan keeping in mind the market that we are going to operate and also our
target customers. COCO FRESH will be offered in two different sizes of bottle 250ml and 500ml.
We are going to charge 35tk for 250ml and 50tk for 500ml.

250ml 500ml
35tk 50tk

Place

Initially our product will be introduced in metropolitan area Dhaka Bashundhara R/A and later on we
will gradually expand our operational parameter.

Access: Coco Crazy will be available in small to big grocery shops and super-shops such as in
Mehedi Mart.

Search: Better trained sales staff can assist in finding the product in stores.We will have color coded
tags, an organized different shelf and providing signs in the aisle.

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Possession: After an adequate expansion, Coco Crazy will expand their intermediary to all over
Dhaka city.

Transaction: Customers can pay in cash or via using Bkash app.

Promotion

We are going to create brand awareness by promoting our product through Print media, Facebook,
YouTube, Sample distribution, Organizing event and TV commercial to persuade consumers about
how it is better than others.

Packaging

Our packaging is quite simpler and eye-catching.

We tried to maintain simplicity along with providing adequate information in the bottle.

Financial Projection
Fixed Cost – Fixed Cost are those that remain the same irrespective of the profit business
generates. Fixed costs are predetermined expenses that remain the same throughout a specific period.
Even if we close our business temporarily we still have to bear some expenses like –

 Rent

 Internet and Telephone costs

 Insurance

 Employee Salaries

 Loan Payments

Since our budget is only 30 lacks we have to manage our expenses.

Our fixed cost will be less because -

Rent - We will use our personal property to store our product and to establish our machines.

Internet and telephone bill-For Internet and telephone bill our budget will be 3000 per month.

Insurance - We are starting a small business so we will not purchase insurance for now, as our
business grow bigger then we will consider to buy insurance.
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Employee Salaries – In our country labors are less expensive and since we are 6 people starting a
small business we will be able to do most of the work. Labor salaries are 7000 bdt per month and for
starting we will hire 30 labors for manufacturing process which will cost 2,10,000bdt per month.

Loan Payments – We are not taking any Loan.

Machine– We will start with one machine which will cost 10 lacks and 1 lack for operating.Our
total fixed cost we are considering to be approximately 13 lacks.

Variable cost – Variable costs are costs that change as the quantity of the good or service that a
business produces changes. Some variable costs are –

Raw materials – Our raw material budget will be 3,00,000 lacks for starting. Later we can decide
to increase it.

Commissions -For commissions in various sector we will consider 50,000 bdt for starting.

Action plan
(Quarterly)

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 Timeline Task Action steps

Month 1 •Perfect team •Recruiting perfect people

•Setting goal •Setting up milestones to achieve
•Product distribution •Hiring people for product distribution in
selected areas
•TVC, OVC •Making a TVC,OVC of 40 seconds that
people can relate with their daily life
Month 2 •Social media marketing •Boosting the video very specifically to
reach the target market
•Marketing in TV •Telecasting the TVC in the breaks of BPL
matches
•Newspaper marketing •Front page ad in The Daily ProthomAlo
Month 3 •Feedback •Getting customer feedback and identifying
the areas to improve
•Improvement strategy •Coming up with a strategy to improve the
areas that our customers want us to improve

References
Ahmmed, L., Islam, M. N., Islam, M. S., & Ali, M. S. (2019). Estimation of protein in jams, jellies
and juices available in Bangladesh.Science Journal of Analytical Chemistry, 3(4), 43.

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Kim, B. D., Srinivasan, K., & Wilcox, R. T. (1999). Identifying price sensitive consumers: the
relative merits of demographic vs. purchase pattern information. Journal of Retailing, 75(2), 173-
193.

Blattberg, R. C., Kim, B., & Ye, J. (1996).Defining Baseline Sales in a Competitive Environment.

Iqbal, M. N., Ali, S., Anjum, A. A., Muhammad, K., Ali, M. A., Wang, S., ...&Irfan, M. (2016).
Microbiological Risk Assessment of Packed Fruit Juices and Antibacterial Activity of Preservatives
Against Bacterial Isolates. Pakistan Journal of Zoology, 48(6).

Salma, I. J., Sajib, M. A. M., Motalab, M., Mumtaz, B., Jahan, S., Hoque, M. M., &Saha, B. K.
(2015).Comparative evaluation of macro and micro-nutrient element and heavy metal contents of
commercial fruit juices available in Bangladesh.American Journal of Food and Nutrition, 3(2), 56-
63.

Ahmed, F. (2015). Food and beverage marketing in Bangladesh: A study on ACME Agrovet and
Beverage.

Al Mahmud, M. A. E-branding: Context in Bangladesh.

Islam, M. M., &Fatema, F. (2014).Comparative Analysis of Global and Domestic Brands of Soft
Drinks in Bangladesh.Journal of Business, 35(3).

Hossain, M. A. (2018). Swot Analysis: A Case of Pran Group of Industries Ltd. Rajshahi University
Journal of Social Science and Business Studies, 15, 303.

Julkarnine, M. (2009).Consumer Brand Perception and Perception of ‘Juice market’, Water and Tea
of the Agrovet and Beverages Ltd.: survey, findings analysis and recommendations (Doctoral
dissertation, East West University).

Adnan, S. S. (2015). New OTC product:'Juci'launch strategy and promotional activity.

Mahalder, K. (2014). Evaluating marketing strategies of Direct Fresh Limited.

Halder, S. (2019).Measuring Customer-Based Brand Equity: A Study in the Context of Carbonated

Soft-Drinks Industry in Bangladesh.

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