Kaynra
Kaynra
A Marketing Plan of Crab Fattening & Exporting
Prepared For:
Mir Semon HaiderSenior Lecturer
Course: MGT 368
Sec: 02
Prepared By:
Ahsan Uddin Sharif Omi
ID: 053 052 030
Muktadir Irtiza Miraj
ID: 053 353 030
Shahriar Rashid Rafi
ID: 053 049 030
Rockyb ul Hasan
ID: 061 508 030
Farzana Afroze Zerin
ID: 052 515 030
Sunday, April 15, 2008
Mr. Semon HaiderHonourable Instructor,
Course – MGT 368 (Entrepreneurship),
Section - 02, School of Business,
North South University, Bangladesh.
Dear Sir,
We would like to submit the project on the "Crab fattening & exporting". It is really an enormous opportunity for us to prepare this "Marketing Plan" project. We would like to recall with gratitude, the tremendous support and encouragement, which we received from you. We have tried our best to implement the relevant theories that you have taught in the course- MGT 368 (Entrepreneurship).
As an Instructor and Advisor to the report, you made critical reviews of various earlier reports, provided valuable insights and academic training to improve the quality of the work. We are grateful for your stimulating guidance and encouragement during the period of preparation this project. Without your guidance, this would simply not have been possible.
There may have many omissions and errors on our part but we have tried our level best to prepare this report to the required standard.
We are looking forward for your kind appraisal on this project.
Thanking you in anticipation,
Ahsan Uddin Sharif ( 053 052 030 ) Muktadir Irtiza Miraj ( 053 353 030 )
Shahriar Rashid ( 053 049 030 ) Rockyb ul Hasan ( 061 508 030 )
Farzana Afroze Zerin ( 052 515 030 )
Acknowledgement
We are indebted to many people for providing us encouragement and support during our learning and
working while making this project and we want to show our gratefulness to these people.
We are very much grateful to Mir Semon Haider, our respected course instructor of “
Entrepreneurship”, who assigned us this challenging project. He always guided us to take and overcome this
challenge successfully. Without his help in every step it was quite impossible for us to finish this project properly in
time.
At every moment we remember all of our classmates who really encouraged us in every stage of this
project with their support, encouragement and suggestions which really helped us a lot to make this project to be
successful. Without their guidance and friendly co-operation, this project would not be possible.
Also we are grateful to all the fellows who provided us with their utmost effort. Without their help it would
not have been at all possible. They have provided us with all the information and also supported us a lot.
Management Summary
Kaynra has identified some economical and industrial factors that will affect the marketing action during
this marketing plan period. Factors like, revenue earned, demand, competition have a positive impact on
the marketing action. On the other hand fluctuation of foreign exchange rate, government policy, trade
barriers have a negative impact. Kaynra has followed the geographical segmentation process to target
two regional segments for crab exporting they are , Asian market (1st segment), European market (2nd
segment). To serve these segments Kaynra depends on two permanent distributors. The 1st segment
which is Asian market is for mainly live crab because of the shorter distance and the high demand for
live crab. There are many traders who act as importer, purchase crab from us and supply these to Asian
countries like China, Japan, South Korea, Thailand e.g. The 2nd segment is which is European market is
for mostly for frozen crab. Most of the crab firm in the European country began to close because of
extreme cost. So the supply of crab is lower but the demand is increasing. To grab this opportunity we
have decide to export crab in the European countries in the up coming year. As a marketer of crab
industry where the number of potential customers is very large, Kaynra would not be able to predict the
accurate number of potential customers. Kaynra is looking forward to gain a sales volume of BDT
80500000 by the end of 4th year. In addition Kaynra is taking effective marketing action to raise its
market share from .95% to at least 1% in next year. From last three years experience Kaynra has found
that crab fattening and exporting is a very prospective business. Financial and other historical data
complement the trend analysis stated in previous sentence. Currently Kaynra has been facing an
extensive competition in local market. Kaynra mainly competes with firms that involve in breeding,
fattening and then exporting. Kaynra has a competitive advantage of mass fattening facilities which is
not available in other fattening firms. Kaynra is optimistic to enter to European market with this mass
production facility. Kaynra could expand its business in last few years more if it had not faced some
inhibiting problems like failing to manage new buyer, doing less effective advertising and promotional
activities, taking competitive pricing strategy. Besides Kaynra missed out some unrealized opportunities
for instance, it did not regularly take part in trade fairs and sea food festival, and did not take the
opportunity to meet the buyers physically. Kaynra has set a short term goal to export frozen crab in
European market and a long term goal to be largest exporter of frozen crab in European market from
Bangladesh. To accomplish these goals Kaynra has set specific objectives.
Economic Outlook
Kaynra has identified some crucial factors in the overall economy and industry which
will affect the marketing of crab in the plan period. As Kaynra has been a successful
exporter of mud crabs in South Asia and European countries, it has sufficient cash
inflows to stand in a sustainable state. Now, concerning the cash flow Kaynra has
earned, it can plunge into an effectual marketing action. Factors like, revenues earned
by exporting, foreign exchange rate, overseas trade barriers, government policy for the
industry, competition and demand will have a definite affect on marketing action of
Kaynra.
As far as the revenue is concerned, Kaynra has earned a sales amount of Tk. 79,380,000
in the last year. According to the business plan Kaynra had decided to spend a significant
amount which is 10% of the total sales per annum. So, the cost of marketing promotion
and advertising is heavily depended on the sales revenue. At the end of third year of our
business as we did project we are looking forward to spend Tk. 7,938,000 for
promotional purpose.
Foreign exchange rate has always been a vital aspect for the business people related
with abroad dealings. Foreign currency values remain in frequent fluctuations, so taking
any monetary decisions regarding even for marketing actions, it approaches prior to
knock. If any of the hard currencies oscillate a bit, many major financial resolutions halt
immediately. Kaynra’s one core commercial aspect is exporting crabs. So before
conducting any marketing action for imminent business activities, foreign exchange rate
should always be the aforementioned concern.
Trade restrictions in many countries vary time after time and it can be either positive or
negative for the cross border business associations. Considering Kaynra’s export
oriented operations, trade barrier may occur often among the countries that are the key
importers of crabs. As a result, the marketing plan we have prepared for those parts of
the world will not be successful.
Government policies for overseas business take always a crucial part. Like in crab
exporting business, government paid some tax holidays for the first three years which is
not going to be continued for further business years. This cut down in incentives will
raise the cost upwards. So it will have a negative impact on Kaynra’s marketing action.
Being a lucrative industry, crab fattening and exporting has always been attracting trade
people to be in it. So more and more competitors are coming up on the floor to possess
their share of profit. Though extensive competition is creating an unfavorable situation
for Kaynra, in other way it is positively Kaynra forcing Kaynra to come up with an
effective marketing action.
Demand being the most important economical factor has a greater impact on the crab
exporting business. It is a continuous process to be informed about the demand and be
on the try to meet up that. Demand determines different marketing strategy like push,
pull strategy and pricing strategy as well. Thus demand plays a significant role in
performing any marketing action.
The market---------qualitative
As Kaynra has followed the geographical segmentation process to target two regional segments
for crab exporting they are
Asian market (1st segment)
European market (2nd segment)
In order to serve these two segments Kaynra heavily relies on the local distributors for buying crablets
(180-200g) to fatten. Kaynra has two permanent distributors in Ghumatoli, Moheshkhali so far. They are
Allahar Dan Enterprise and Al Kaderia Hatchery. These two distributors have been involved in supplying
crablets for more than 6 years. They purchase the crablets from the local fishermen and distinguish
them as per their weight. Then they supply us the crablets that weigh 180-200g as per our requirement.
Our 1st segment which is Asian market is for both frozen and live crab because of the shorter
distance and the high demand for crab. There are many traders who act as importer of crabs in
different Asian countries where a huge number of potential buyers and consumers are waiting for
those delicious mud crabs. These importers purchase crabs from us and sell them to different
restaurants of Asian countries like China, South Korea, Hong Kong, Thailand, and Japan at a very higher
price. These importers search sellers of crabs through internet and other sources. As because there are
huge demand for crabs in Asian market every importer depends on several exporters.
Our 2nd segment which is European market is only for frozen crab. There are huge demands for frozen
crab because the longer distance people could not find the live crab. There are many crab firms in most
of the European countries but they began to close because of extreme cost. That’s why the supply of
crab is lower but the demand for crab remains constant. As a result the European countries are
demanding a large amount of frozen crabs from countries like Bangladesh where the crab industry is
growing very fast and reasonable price of crabs. European importers are highly conscious about the
quality of processing frozen crabs. In order to enter to the European market Kaynra will have to satisfy
their criteria to match the quality of crabs for what they demand for. Like the importers of 1st segment
the importers of European countries also depend on several exporters to satisfy their higher demand of
crabs.
Quantitative
As we have stated earlier Kaynra has a large of potential customers around the globe.
So it is not possible to mention the exact figure of potential customers or importers of crab. According to
our financial statement we have seen that at the end of third year of our business we have successfully
exported 113, 400kg crabs to different market that worth BDT 7, 93, 80,000. We are optimistic that by
implementing our new marketing plan the sales volume will increase to a extent which will worth BDT
80500000(approximate) by the end of 4th year. Currently Kaynra has a market share of 95% of total
market share. Our target is to expand current market share up to 1% of total market share by next year.
As per our marketing plan we would be able to export frozen crabs in European countries up coming
year. It will ultimately help our business to gain a higher market share as anticipated. Our current
competitive position is revealed in the “Competition” section of this marketing plan.
BDT 7541100000
BDT 79,380,000
Sales Volume
Total Sales Volume
Kaynra's Sales Volume
99.05%
0.95%
Market Share
Total Market ShareKaynra's Market Share
Fig: Showing Current Sales Volume
Fig: Showing Kaynra’s Market Share
Trend Analysis:
If we consider the past three successful business years of Kaynra we would find that it is heading
towards the right direction. The financial statement of last three years clearly show that the sales
revenue has significantly increased from BDT 39690000(of 1st year) to BDT 79380000(of 3rd year) along
with the increased sales volume from 56700kg(1st year) to 113400kg(3rd year). Crab has a great prospect
in terms of exporting to different markets of Asia and Europe. Kaynra expect to stand in a position by the
end of fourth year where it will not meet the demand of live crabs in Asia but also the high demand of
frozen crabs in Europe. The following chart shows the different historical data of last three years that
proclaim the success of Kaynra in crab industry so far.
Variables Year 1 Year 2 Year 3
Sales Volume 39,690,000 59,535,000 79,380,000
Production 56700 85050 113400
Profit 2124385 4051202 12138500
Market Share 0.25 0.55 0.95
Accounts Opened 2 4 5
Accounts Closed - 1 2
Table 1: historical data of Kaynra
Competition:
At the end of three successful years of business KAYNRA has many competitors in this
industry. In recent years many marketers have got themselves involve in this lucrative industry of crab
business. Generally three types of competitors are competing in this local industry. These three types
are breeding and exporting companies, only fattening and exporting companies and trading companies.
Companies who are involved in crab breeding and exporting are independent in terms of their
operation which starts from collecting mother crabs, hatching and fattening to exporting. They have
more competitive advantage than the other two types of competitors. They are more successful in this
business because the whole system is controlled and supervised by them in such a way that the quality
and the quantity remain up to standard. It is assumed that this type of company will expand their
business by increasing the production capacity during the coming year.
KAYNRA belongs to the category where the companies are involved in collecting crablets, fattening them
and exporting. The numbers of this type of company are larger than those of breeding and exporting
companies but fewer than those of trading companies. Companies like Kaynra who follows a very
scientific process of fattening have been extremely successful in this industry. These medium enterprises
are more focused on capitalizing their limited resources. It is expected that few of these companies
would go for breeding crablets like Kaynra will do in upcoming year.
A large number of companies are involved in trading which means only buying export quality crabs from
different firms and exporting them. Though, as per government regulation, each trader must have their
own farming plant, but in most cases, they are manipulating this regulation. These companies do not
involve in farming crablets. As a result they are highly dependent on crab farmers. They invest
comparatively a small amount and involve in less risk. They are also successful because they have been
involved for a long time. It is assumed that they might get involved in mass farming to ensure high
profitability.
KAYNRA has been concentrating on mass fattening of crabs in a scientific way. In last few years, only a
very few companies have successfully involved in mass production and fattening crabs by following
Kaynra. There are many fattening firms but they are not as big as Kaynra. When we started our fattening
plant with a land of 40 bigha then the second big plant was in a land of only 8 bigha in Satkhira, Khulna.
With a mass production of 113400 kg export quality mud crabs this year Kaynra has been one of the
most successful farm among the competitors. Kaynra has a competitive advantage over other
competitors in terms of exporting frozen crabs in different countries of Asia. In a very short time Kaynra
has been able to export frozen crabs with the help of BFDC. It has been possible because Kaynra had a
preplanning of exporting frozen crabs and it took necessary steps in the very initial stage, in fact, before
starting the business. Whereas others usually take the initiatives after doing the live crab exporting for a
few years. Here Kaynra has a definite advantage over other competitors who have entered the business
in last three years.
Problems and Opportunities
After three years of production Kaynra is facing some inhibiting problems and unrealized opportunities.
Among those problems first of all, our entire marketing manager failed to capture new market of crab. It
happens because they could not manage new buyers rather than the existing ones. Secondly, we
suffered from not having a separate marketing department which would only focus on advertising and
promotional activity. Thirdly the amplified numbers of competitors have caused the growing bargaining
power of the buyers. As a result we have to follow a competitive pricing. And after that geographical
distance with our buyers has enlarged the cost of our marketing communication. Lack of opportunity to
communicate face to face with our buyers.
Along with the opportunities Kaynra intend to take part in International Trade Fair and Sea Food Festival
outside of our country where we have prospects. After while Kaynra look forward to invite a few
permanent buyers from different countries to inspect the plant physically. Next Kaynra might have an
opportunity to sell its surplus amount of crabs to the local market. As we have to observe that there are
many expensive restaurants in Dhaka city where the increasing demand for crabs are widening market
opportunities for crabs.
Objectives and Goals:
Depending on the past and future possible success, Kaynra is going to set some
goals and objectives to have paced to meet them. Kaynra has an obvious scope
to reach the peak according to the goals and objectives through choosing the
projected path.
Short Term Goal
Europe is one of the highest demanding market for frozen crabs. So every crab
producer & exporter has the inherit expectation to plunge there to grab atleast
a portion of the market. Bangladesh frozen crab industry is still unable to get the
permit entering into EU market for insufficient quality. But Kaynra is promising
to provide best quality frozen crab and capture that demand into the eminence
supply frame.
Long Term Goal
Kaynra is projecting to state itself as the leading exporter of frozen crabs in
European countries from Bangladesh. After getting the permission for the frozen
export, many more competitors will raise their heads up for the trade. But
Kaynra, as the first mover to that market, will try utmost to maintain the throne
of market leader.
Short Term Objective
Qualitative
Europe holds a high demand for frozen crabs in an increasing order. To produce
or fatten crabs inside EU is immensely expensive. Continuous stoppage of
Europe’s local crab farms is the result for this scenario. So Kaynra has a vivid
prospect to stand in that situation and present itself as a probable exporter of
frozen crabs.
Kaynra will endow with customized size, packaging and labeling on the package
consistent with the demand informing from the importers of Europe.
Indisputably Kaynra will supply with the excellent quality frozen crabs as well as
the importers order.
Quantitative
Kaynra has gained sales revenue of Tk. 79,380,000 at the end of the third year of
business with 100% production. Now on the upcoming business year, Kaynra’s
projection is to earn Tk. 13,267,800 from only exporting frozen crabs inside the
EU border.
As Europe is one of the giant importers of frozen crabs among all other parts of
world, it is a lucrative market to possess a portion of that. Kaynra is planning to
grab atleast 1% of the total market share and sustain with that in its market
forecast.
European frozen crab market is highly profitable for all the exporters around the
world. As Kaynra is planning to be a part of that, so it will also face a handsome
amount of profit margin.
Long Term Objective
All other local exporter may follow Kaynra heading off to European market
getting along with the frozen crabs will create an extensive competition for the
survival. So Kaynra will break through this rivalry beating all the existing
competitors with the best quality and customized service for the importers.
Kaynra will form a department consisting expertise for specially exporting frozen
crabs to Europe. This branch will remain busy in assessing the demand of
European market for frozen market and find out innovative ways to serve.
Sun Mon Tue Wed Thu Fri Sat
1 2 3 4 5
6 7 8 9 10 11 12
Home | About Us | Contact Us | Product List | Service List | Calendar | Project ListHome
About Us
Contact Us
Product List
Service List
Calendar
Project List
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30
Kaynra
Home
Our crab farm layout
As the country’s first commercial crab producer, KAYNRA will produce crabs in a controlled process to ensure quality, both in size and health and supply them to the Global market. This business falls under the seafood industry. The company will be utilizing aquaculture technology to farm crabs. Full control over the process will allow production of quality crabs and supply at a competitive price. This will make The Company unique in producing disease free crabs in a standard size, which is the main requirement of the importers. KAYNRA is mainly targeting the Asian market comprising of Malaysia, Singapore, Taiwan, Hong Kong etc.
Plot# 8, Road# 12, Sec# 10,Uttara Model Town, Dhaka- 1230
To contact us:
Phone: (02)8916083-5Website: www.kaynra.org
INSIDE STORY 2
INSIDE STORY 2
INSIDE STORY 2
INSIDE STORY 3
Kaynra
Plot# 8, Road# 12, Sec# 10,Uttara Model Town, Dhaka- 1230
To- - - - -_ _
De Crab ParadisoK A Y N R A
INSIDE STORY 4
INSIDE STORY 5
INSIDE STORY 6
Kaynra is a partnership business company which came in crab industry three years earlier. Kaynra is the largest fattening farm consisting of self scientific facilities. Initially it started its business by exporting live crabs to Asian market. Now Kaynra is heading off to European countries with the best quality frozen crabs. Europe is one of the highest demand
ing market for frozen crabs. So every crab producer & exporter has the inherit expectation to plunge there to grab atleast a portion of the market. Bangladesh frozen crab industry is still unable to get the permit entering into EU market for insufficient quality. But Kaynra is promising to provide best quality frozen crab and capture that demand into the eminence supply frame.
Kaynra is projecting to state itself as the leading exporter of frozen crabs in European countries from Bangladesh. After getting the permission for the frozen export, many more competitors will raise their heads up for the trade. But Kaynra, as the first mover to that market, will try utmost to maintain the throne
Kaynra fattening process
Phone: (02)8916083-5Website: www.kaynra.org
Plot# 8, Road# 12, Sec# 10,Uttara Model Town, Dhaka- 1230
Wishing you a progressive & eventful ‘New Year’ With regards
Kaynra