Marketing Plan on Gheeveg[1]

Marketing Plan on Consumer ProductMarketing Plan on Consumer Product

“GHEEVEG”“GHEEVEG”

Prepared For:

Mr. Nazmul HossainLecturer,Dept.of Business AdministrationEast West UniversityMohakhali, Dhaka.

Prepared By:

G.M.Zakir HossainID: 2006-1-10-031

A.S.M. Kamruzzaman SelimID: 2006-1-10-162

Course: Principles of Marketing, (MKT-101)Section: 03

Date of submission: April 06, 2008

06 April 2008 Mr.Nazmul HossainLecturerDepartment of Business AdministrationEast West University

Dear Sir

In accordance to your advice here is the report on “Vegetable Ghee” that we are

submitting on 06 April, 2008. To serve our purpose, we have followed standard research

methodology to extract our findings. We have applied sophisticated analysis techniques

to get consistent and sound output. As per the direction of yours, we have tried our best to

highlight our findings through applying our acquired concepts and models.

We sincerely hope this report will fulfill the requirements suggested by you under the

course of ‘Principles of Marketing’. We will appreciate if you kindly spend some of

your valuable time by studying the report.

Sincerely yours

Signatures

G.M.Zakir Hossain

ID : 2006-1-10-031 ------------------------------

A.S.M. Kamruzzaman Selim

ID: 2006-1-10-162 --------------------------------

Table of Index

Content Page no

1) Acknowledgement……………………………………………………............v2) Executive Summary…………………………………………………….........vi3) Picture of GHEEVEG…………………………………………….……….....014) 1.0 Vegetable Ghee…………………………………………………………..025) 1.1.0 Owners of the company………………………………………………..036) 1.1.1 Share distribution……………………………………………………....03 7) 1.1.2 Share Distribution……………………………………………………...048) 2.0 Organizational structure and management segment……………………..049) 2.1.0 The entrepreneurs behind the project……………………………….....04

10) 2.1.1 Chain of control………………………………………………………..05 11) 2.1.2 Mission…………………………………………………………………05 12) 2.1.3 Vision…………………………………………………………………..05 13) 2.1.4 Company’s Slogan……………………………………………………..05 14) 3.0 Features of GHEEVEG…………………………………………………..06 15) 4.0 Brand Name………………………………………………………………06 16) 5.0 About “GHEEVEG”……………………………………………………...07 17) 6.0 Vegetable Ghee and Normal Ghee……………………………………….08 18) 7.0 The Target Market………………………………………………………..09 19) 8.0 Competition………………………………………………………………09 20) 9.0 Opportunities……………………………………………………………..09 21) 10.0 Objectives………………………………………………………………..10 22) 11.0 Promotion Strategy………………………………………………………11-13 23) 12.0 Marketing Strategy………………………………………………………13

24) 12.1.0 Pricing………………………………………………………………….14 25) 12.2.0 Market Segmentation………………………………………………….14 26) 12.2.1 Geographic segmentation………………………………………………14 27) 12.2.2 Demographic segmentation…………………………………………….14 28) 13.0Market Targeting………………………………………………………….15 29) 14.0 Positioning……………………………………………………………….15 30) 15.0ACTION PROGRAMS…………………………………………………..16 31) Bibliography…………………………………………………………………..16

AcknowledgementWe, the member of the course of Principles of Marketing, are very pleased to accomplish

the assign task given by our revered course instructor Mr.Nazmul Hossain on the subject

“Vegetable Ghee”. In preparing the report on the given subject we faced different

problems such as – data, insufficient manpower etc. but we have been able to overcome

the problems with direct and indirect assistance from some persons. In this regard we are

extremely grateful to our course instructor Mr.Nazmul Hossain and Mr. Abdur Rahim,

the manager of marketing department of Sanowara Corporation Ltd.

Above all, we cannot refrain our selves from giving heartfelt thanks to our course

instructor Mr.Nazmul Hossain, who remain with us all the time for completing this

complex job.

Finally, we are pleased to complete the report on the given subject properly and

authentically.

V

Executive SummaryExecutive Summary

Festivals and rich foods are major form of entertainment in people’s life. It is believed

that vegetables keeps people’s body and soul fit. Ghee is a consumer product in

Bangladesh. The marketing aspects of Ghee are different in Bangladesh. The producer of

Ghee does not sell the product to the consumers who are very much health conscious.

Companies have to depend on various distribution channels like wholesalers and retailers

to deliver the product to the final consumer. It means that the company has to make

aware people about their product through different advertisements and other promotional

tools. With an aim to learn the marketing prospects of Bangladesh a study has been done

with vegetable Ghee.

Now “GHEEVEG” wants to introduce the product in the existing Ghee market with

three types of packets, “GHEEVEG” small, medium, large. “GHEEVEG”targets the

household people how lives in urban areas. “GHEEVEG” gives a very high commission

to the retailer for good merchandising and capturing the current market; though

“GHEEVEG” is a very high quality Ghee but following the low pricing strategy. In this

report some recommendations have been given to improve their functionality in the

marketing sector and to survive in the competition with a forwarded position.

VI

1

1.0 Vegetable Ghee

Ghee is an intriguing food with a delicious buttery flavor. That's not surprising since ghee

is either made from butter or made to taste like it. This is a common food in Bangladesh,

India, the Middle East and Africa. These are places where milk products soon go bad

without refrigeration.

“GHEEVEG” Ghee is not a rich food and also less expensive. This Ghee is made by soy

bean, palm and vegetable oils. Vegetable ghee has food color and flavor added to it to

make it look and taste like butter.

Vegetable Ghee gives food a wonderful buttery taste and better than butter, it doesn't

burn as easily. The smoking point of vegetable ghee tends to be higher than most

vegetable oils. A little ghee can often take the place of a larger amount of oil for frying

food and it works well in wok cooking where a high heat is necessary for stir-frying. A

teaspoon of ghee in a small pan easily cooks a couple of cloves of minced garlic without

turning acrid. We can use it to make fries, desserts, popcorn and spread on top of

Chapatti’s. There many other places where we can “GHEEVEG”

2

1.1.0 Owners of the company

Name of the directors / Shareholders Status ------------------------------------------------------- ------------------------

G.M.Zakir Hossain Chairperson

A.S.M.Kamruzzaman Selim Managing Director

MR. Bill Gates Director

Mr.Kutub Uddin Ahmed Director

1.1.1 Share distribution

According to the government rules and regulation we have divided our shares of the company. The following chart is given to illustrate the shares taken by each shareholder

SlName of the directors/Shareholders

StatusPercentage of Share holding

1. G.M.Zakir Hossain Chairman 40%2. A.S.M.Kamruzzaman

SelimManaging Director 25%

3. MR. Bill Gates Director 10%

4. Mr.Kutub Uddin Ahmed

Director 10%

5. External Sources Shareholders 15%

3

1.1.2 Share Distribution

Chairman

Managing Director

Director 01

Director 02

Other members

The pie chart shows us the distribution of shares among the directors and the external

people (stakeholders). The company follows the companies’ formal chain of command

and uses both formal and informal communication channel to make a bridge with the

customers, employees and other people related to the business.

2.0 Organizational structure and management segment

2.1.0 The entrepreneurs behind the project

‘GHEEVEG’ Company should have an effective and well organized management team. Without a skilled management team it will be very hard to sustain in the market. We are very keen to have a good command on our employees and motivation power along with

effective managerial skills. We have also a vision to expand our business all over the country and we are heading towards that. 4

2.1.1 Chain of control

The overall management of the company will be operated with the Board of Directors. . The board of directors will generate business polices and guidance in the business operations. Board of directors and managers in different technological level will assign the managing director who will be responsible to observe the overall business affairs.

2.1.2 Mission

Our mission is to provideOur mission is to provide quality and standard products, maintain highest of ethicalquality and standard products, maintain highest of ethical standards in our business operation.standards in our business operation. Our mission is to provide the customer with healthy and nutritious vegetable ghee. We exist to different types of package of vegetable ghee and maintain a good relation ship with customers. . Our services will exceed the expectations of our customers.

2.1.3 Vision

We perceive our business as a means of leading to accretion of wealth through financial and moral gains.

2.1.4 Company’s Slogan

We keep you fit when you taste our “GHEEVEG”.

(1kg tin of “GHEEVEG”)

5

3.0 Features of GHEEVEG

Our GHEEVEG is 100% halal, pure and natural.

There is no animal fat in GHEEVEG.

The GHEEVEG is absolutely free from any types of artificial color.

GHEEVEG prepared hygienically. This ghee is suitable for people. It is

unparallel in comparison in preparing Polao, Korma, Biriani, Haluwa or any kinds

of delicious food.

100% free from coloustaural

. The GHEEVEG makes your food tastier

4.0 Brand Name

The brand name of our product is “GHEEVEG”.We produce vegetable ghee and here ‘VEG’ is the short form of vegetable. So we kept the name of our product “GHEEVEG”.

6

5.0 About “GHEEVEG”

This is clarified butter that has had all the milk solids removed by heating - it was

originally made to extend the keeping qualities of butter in Bangladesh. It can be bought

ready-made or you can make it at home using unsalted butter. It has a nutty, buttery taste.

Vegetable ghee made from pure vegetable oil, suitable for strict vegetarian (vegan) diets

is also available.

5.1.0 Uses: Ghee is the main cooking fat used in Bangladeshi cookery. Because the milk

solids have been removed ghee has a high smoking point and can therefore be heated to

higher temperatures than ordinary butter. “GHEEVEG” is suitable for both shallow and

deep-frying and adds a high gloss and delicious flavor to sauces.

7

5.1.1 To store: Traditionally ghee was not stored in the fridge, it can be stored in a

covered, clean jar once made for 1-2 weeks or in the fridge for up to 2 months. Vegetable

ghee can be stored in a cool, dark place for up to 1 year, once opened store in the fridge

for up to 2 months. GHEEVEG must be stored by jar which is made by tin.

The store process of “GHEEVEG”

6.0 Vegetable Ghee and Normal Ghee

There is no fat in the vegetable Ghee but in the normal Ghee there is too much fat. Those

are made by pure milk. Now-a-days there are many types of Ghee in the market but they

are normally very expensive. The vegetable Ghee is not very expensive. It is very good

for health also. Vegetable Ghee can be use in many types of foods where other type of is

affordable to use.

8

7.0 The Target Market:

Now there are million of in our country is suffering in many kinds of health related

problems. So doctors are suggesting them not to eat rich foods because of Ghee. Apart

from them there are some people who are vegetarian who doesn’t uses Ghee in there

food. There also some people who are very health conscious and don’t want to eat fatty

food. People can use this at home, hotels and fast food shops. So our target market is

consists of—

Sick people

Vegetarian people

Health conscious people

Households

Restaurants

We are focusing on the people who have many kinds of sickness and who want to be fit

always. People in our country don’t know much about this vegetable Ghee so we need

some time for advertising. After completing that we will focus on much bigger target

people. The future of this product is very much positive because people of our country

are becoming very health conscious day by day.

8.0 Competition

At present there is no product called vegetable Ghee in the market. So there is no direct

competitor available in the market. There are many companies of ghee available in the

market which is made by milk and some other things are our competitor.

9.0 Opportunities

“GHEEVEG” vegetable Ghee is using rather than using Ghee that are made by milk.

This allows thousands of health conscious and vegetarian people to eat rich food without

thinking other things. So it has a chance to expanding the appeal of its both upper class

people and lower class people. Increasing many types of sickness day by day will

promote its demand to the consumers. So it is easily understandable that this is going to

be a product for the household. At present there is no company are operating in this

industry. We can be successful if fulfill customers needs. 9

10.0 Objectives

Initially “GHEEVEG” sets up following financial objectives:

Achieve first year total sales revenues of taka 4.00 million.

Generate net profit of taka 2.00 million.

Target profit margin will be 7% to 10% at the initial period.

Earn an annual rate of return on investment of 20% after taxes over the next five

years.

The target marketing objectives of GHEEVEG are:

At least try to occupy 25% of the market within next three years. We are

expecting to sell no less than 5000 units in a year.

Generate 70% industry awareness among the potential customers and 40%

brand awareness among the firms within a year.

Increase the market share up to 15% by the end of second year based on the

sales of previous years.

Start to export product after three years.

We will start to expand business from Dhaka to Chittagong, Rajshahi, Khulna,

Barishal and Sylhet after one year. 10

11.0 Promotion Strategy

By integrating all messages in media, we will reinforce the brand name and the main

features of our products differentiation, especially our exclusive collections of different

items. Our strategy for marketing communication primarily depends on three promotional

tools.

Advertising: We will use the print media for attracting customers like in the

newspaper, magazines or making banner and billboard. These advertisements

could also serve the purpose of awareness.

Personal Selling: We would have to depend heavily upon personal selling. As

our target market is numerically and therefore we must maintain excellent

relations with our customers.

Sales Promotion: From time to time we might give discount rates. However we

would give competitive offerings for our loyal customers. Sometimes we will give

special package in some occasions.

Product Distribution: We also appoint some our own dealer as well in main

cities in the country.

11.1.0 Explaining Different Media Choices:

While doing the marketing communication we have to consider specially those people

who have easy reach to the location.

11

11.1.1 Television:

TV is a good media to reach people all over the country. But it is the most costly media.

If we use TV the cost per Target Audience will be very high for us. Even though it is

costly, we can’t deny the effectiveness of TV to build a good image of our service into

the consumers mind. In choosing the different TV channels we will select all the four

Bengali channels operating from Bangladesh. We will give the advertisement on BTV,

NTV, CHANNEL-I, ATN BANGLA. We will also air advertisements before the night

news to get highest reach.

11.1.2Newspaper:

Newspaper has a very wide acceptance and distribution among our target audience. The

newspapers listed above are the most widely read and trusted in the country. Newspaper

insertions also have the advantage of being more permanent and more explanative about

the advertised brand.

11.1.3 Magazines:

Magazines are selective in their audience and this is an advantage if we want to attract a

select group of the target market. Lifestyle magazines are a good option for advertising

and promoting our brand. We will select English Magazines like: Fashion Week, Ice

Today, Lifestyle etc.

11.1.4 Billboards:

Billboards have been found to be eye-catching and attractive. They can reach almost

everyone taking a particular route through the city. It is a very creative tool and can help

to create a very unique image in the audience’s mind. We have our billboards In front of

12

Airport, at Gulshan Circle 2, Bijoy Shwarani, Dhanmondi, Rampura, Khilgaon, Farme

Gate. Electronic Billboard is a new trend in now a day. So we will give advertisements at

electronic billboards in not only Dhaka but also Chittagong, Rajshahi, Khulna, Sylhet,

Barishal and some other districts of the country.

11.1.5 Advertisement for the First Month:

For the month of we will be advertising on the TV, the newspapers like The Daily Protom Alo , The New Age, The Daily Star, the Independent and magazines like The Bortoman Dinkal,The Anondo Alo and putting up billboards in important cities and in front of the airport. This kind of exposure will help us to communicate with our target audience. Channel I, NTV, ATN Bangla and BTV are the TV channels that will be used for TVC. It’s a way of letting target customers know that “GHEEVEG” starts its

service. People will be exposed to the brand name, which will remain in their minds even when they go home. Our basic goal is to create a need for the product in the audiences mind. We will arrange another press release at the end of the month giving exposure to how well our company doing and to inform about the response we have received.

12.0 MARKETING STRATEGY

Marketing strategy is most effective when it is an integral component of corporate

Strategy, defining how the organization will engage customers, prospects and the

competitors in the market area for the success of their company. It is partially

derived from broader

Corporate strategies, corporate missions and corporate goals should reflect

In the firm's mission statement. They are also influenced by a range of

Micro environmental factors.

A customer group within the market that has special characteristics which are

significant to marketing strategy. On the consumer side, the target market is the

City based house wives who always shops their monthly consumer products from

Various markers and shopping malls

13

12.1.0 Pricing: One of the four major elements of the marketing mix is price.

Pricing is an important strategic issue because it is related to product positioning.

Furthermore, pricing affects other marketing mix elements such as product

features, channel decisions, and promotion. The GHEEVEG considered all of the

factors including company’s mission. Because of inherent tradeoffs between

marketing mix elements, pricing will depend on other product, distribution, and

promotion decisions.

Because there is a relationship between price and quantity demanded, it is

important to understand the impact of pricing on sales .So we pricing this product

by considering the cost and competitor’s prices. Per unit 250 ml container’s price

is 150 taka.

12.2.0 Market Segmentation

In this case we can do geographic and demographic segmentation.

12.2.1 Geographic segmentation:

We can segment our product geographically because our main target market is in the area of subcontinent mainly in Bangladesh where the people are interested to take rich food and don’t conscious about their health. So we think our vegetable ghee will be healthy for the people of Bangladesh and it can increase the taste of their foods.

12.2.2 Demographic segmentation:

We can segment our product also demographically because our vegetable ghee suitable for every stage of age people. It is also suitable for those people who are not engaging it physical labor both male and female. It is 100% free from coloustaural. So there is no side effect for the patient of heart diseases. Every people of any religion can take the ghee because in the GHEEVEG there is no animal fat.

14

13.0Market Targeting

Target market means a set of buyers sharing common needs or characteristics that the company decides to serve. As a manufacturer company we will follow the differentiated or segmented marketing strategy. Differentiated marketing means – a market coverage strategy in which a firm decides to target several market segments and designs separate offers to each. We will serve to our consumer different types of packet of vegetable ghee GHEEVEG. For our different types of target consumer we have differentiated our product in three categories, the categories are

1) ‘GHEEVEG’ Maximum Size (5kg),

2) ‘GHEEVEG’ Family Size (1kg)

3) ‘GHEEVEG’ Small Size (250 ml).

GHEEVEG Maximum Size is for the restaurants, GHEEVEG Family Size is for those people who live with their family and GHEEVEG Small Size is for that people who lead a bachelor life or live in mess or hostel.

14.0 Positioning

Our value proposition is “HIGH QUALITY AT REASONABLE PRICE”. We will offer

good quality of product at a reasonable price. We are offering high quality and variation

of our product than our competitors, and we are differentiating our products with the

vegetable fat which is not included in our competitor’s product. So we have a competitive

advantage. Customer will buy our product for a good quality at a reasonable price and the

different way to produce the ghee.

Positioning statement

“To the people who want different taste in food or who is health conscious and want

to taste the rich food without any risk, then take the opportunity”

15

15.0ACTION PROGRAMS

GHEEVEG plans to implement the marketing strategy in a disciplined way. All of its

action plans will be implemented at first to build up the industry. It is actually at present

at semi-established stage. We emphasize on the team working environment rather then

individual work. We hope to take at best 50 days to inform our potential clients about our

initiative. Print and electronic media are to be utilized as well as for its introduction.

After the first month of selling of GHEEVEG we shall present that “simple

achievement” to potential customers to affirm our position, proposal. Team presentation,

public relations will continue vigorously.

This action plan is basically prepared for the next twelfth months. After that we shall

revise it considering the circumstances of that time.

Bibliography

1) www.google.com

2) www.google bangladesh.com

3) www.u4.no/themes/education/educationcommonforms.cfm

4) Principles Of Marketing by Philip Kotler & Gray Armstrong

5) The Fortune magazine

6) Annual Report of Sanowara Corporation 2007

16