Term paper
On
Business Plan in
Dynamic Health Papaya Juice
Dynamic Health Papaya Juice Company operating their activities
in Bangladesh. Our
company offers best quality papaya juice with different packages
to customers at a very
competitive price. By taking the taste of our juices they can
easily find out the basic
differences of the quality of the juices comparing with other
companies.
Depending on the market researchers information and considering
the growing demand
of papaya juice, we are going to launch a new product of Papaya
Juice in the market.
The marketing strategy of our company will be based on a cost
effective and quality
service to each of its target segment. Our main focus will be on
utilizing all of its
resources effectively and efficiently to continually serve its
customers with satisfaction
through producing best quality product. We will also focus to
provide its customers a
journey of delightful test through consuming the product.
The marketing objective is to actively support continued demand
of the needs of the
papaya juice and gain profit through serving them with perfect
satisfaction.
DYNAMIC HEALTH PAPAYA JUICE is a soft drinks manufacturer
company, which
produces papaya juice, apple juice, blackberry juice etc. We are
successful in making
profit of all the products mentioned. To give them customer a
new fruit taste depending
on marketing research information of the customer, we are going
to launch a new soft
drink named Dynamic Health Papaya Juice
2.1 Short Term & Long Term Gols
Our goals making the product available in the market with a very
competitive price so
that customer can get complete satisfaction by consuming or
drinking the product. We
also want to establish our new brand of papaya juice. We want to
spread the product
through the whole country and reach each and every consumer.
We have more clear and specific information about the market and
we are also aware of
the customer demand and choices. Based on our Research and
Development department
we are strictly determined to serve our customer needs and wants
with a totally new taste
of fruit like DYNAMIC HEALTH PAPAYA JUICE Papaya Juice. We are
going to
launch our new product for four groups of people. They are shown
graphically below:
Kid
Mature
Young
Old
The market for our product DYNAMIC HEALTH PAPAYA JUICE Papaya
Juice
consists of Geographic, Demographic, Psychographic and
Behavioral factors.
Our immediate geographic market will be Bangladesh with a
population of around
Our total targeted area population is estimated at 17
million.
Generation - kid, young, matured people and also old people.
We know the following regarding the profile of the typical
resident of Bangladesh
22% of the old people.
Social class: Middle Class, Upper Middle Class, and Upper
Class.
Life style: Achiever.
User status: Potential user, first-time user, and regular
user.
Our marketing research department found the opportunity to
provide our customers a new
test through soft drink. The soft drink industry already
contains a wide range of tests and
flabbier in soft drinks. But we found that there is no soft
drink in the market like
DYNAMIC HEALTH PAPAYA JUICE Papaya Juice. Our marketing
research
department surveyed the market and found that there potential
buyers for our product
which will satisfy their needs. So, we have the opportunity to
enter the market and fulfill
the gap. We are going to offer two tastes of papaya juice with a
very reasonable price so
that customer can easily take the taste of two juices and select
and access with
We are going to introduce our new diversified tastes product
DYNAMIC HEALTH
PAPAYA JUICE Papaya Juice, initially in 250 ml, 500 ml and 1
liter bottles. It will be
launched in plastic and glass bottles and also will be launched
in different packages like
family, individual or friends package. According to the survey
the target market growth
rate is increasing. Our company estimates that the future market
will be satisfied with
more diversified and segmented product. Our target to make new
market segments
according to customers needs and wants.
The Research and Development (R&D) department found some
major strength and
weakness for the new product DYNAMIC HEALTH PAPAYA JUICE Papaya
Juice of
the company. According to the R&D department the SWOT
analysis of the product is
Strong brand name among soft drinks companies in Bangladesh.
High customer loyalty among repeat and high-dollar purchase
customer for the
companys current products.
Strong relationships with suppliers that offer credit
arrangements, flexibility and
response for any new product of our company.
Excellent, stable and trained staff for customer service.
Totally new test in the soft drink industry.
Strong merchandising and product presentation.
Good relationship with companys suppliers, partners and
customers.
High quality machineries.
Private limited company
Too many existing competitors.
Less product classification
Sudden change of the companys economic situation.
Challenges of the seasonality of the business.
Completely new test in soft drink market.
High growth rate in our target market.
Continuous opportunities ahead through strategic alliances and
market
Change in container or product classification can be our
opportunity.
Existing channels of our existing product can be used.
Internet potential for selling products to other markets.
Increasing sales opportunities beyond our target area like
Chittagong or
Other competitors of soft drink companies same produce same type
of drink.
Economic, political and technological factors of the country may
be threatening
New entry of similar soft drink company before the lunch of our
product and can
offer papaya juice with very little price to beat our price.
Competition in the area of soft drink industry can be
differentiated through test and
flavors. The main categories of tests and flavors in the
existing soft drink market and the
existing competitors are given below in a table-
Competitors Cola Orange Ripe Mango Lemon Soda Others
Coke
Pepsi
Arong
Pran
RC
Virgin
Our offerings to the customer through our product are-
Natural test of ripe papaya.
Availability through different amount.
Nutritionally Beneficial As a Dietary Supplement!
Ideal for Smoothies!
Delicious Healthy Toppings for Ice Cream, Sorbets, Yogurt, Fruit
Salads and
Papaya Juice is now used for:
Papaya Juice is a Good Source Of:
Calcium Chlorine Iron
Phosphorus Potassium Silicon
Sodium Vitamin A Vitamin C &
Amount per 1litre container
Ingredient MG
Calories 520
Fat Cal. 0
Total Fat 0
Sodium 40
Carbohydrate 132
Sugar 120
Protein 188
Amount of Ingredient
Calories
Fat Cal.
Total Fat
Sodium
Carbohydrate
Sugar
Protein
The key to success of this product are-
Maintaining gross margin in excess of 30% at the first year.
Experienced and eye catching advertisement on the important
areas of the Dhaka
Quality Enterprise Resource Planning (ERP) management.
Proper channel distribution.
Proper Customer Relationship Management (CRM).
Proper Supply Chain Management (SCM)
Generating average sales in excess of Tk120000 per business
day.
Online News and Advertisement.
As the product is new and innovative, the company has to
consider some critical issues,
The products sales growth will be slow and our company may face
loss in the very
first year of their operation. Thus the company has to hold the
products position
for first 12 month, which is admirable.
As the product is new in the market, it will take too much time
to stay in the heart
of the consumer and the beginning consumers will be innovators.
Thus attractive
and effective marketing will be needed to attract, grow, and
retain the customers.
The marketing objectives will be to create product awareness and
trial.
The company must use heavy sales promotion to entice trial that
is matter of
investing huge amount of money.
The products cost per customer will be high, as the product is
lunching initially.
Micro and Macro environment is going to affect the success of
DYNAMIC HEALTH
PAPAYA JUICE Papaya Juice.
The components of micro environment such as Companys customers,
suppliers,
competitors, Marketing intermediaries, employees, public, and
partners have great
influence in success of the product. So, the company will has to
maintain its CRM
(Customer Relationship Management), PRM (Partner Relationship
Management),
ERM (Enterprise Resource Management), SCM (Supply Chain
Management) and
KM (Knowledge Management) effectively.
The larger societal forces demographic, economic, natural,
technological, political, and
cultural forces will have effect on the success of DYNAMIC
HEALTH PAPAYA
Demography if the population sizes in Dhaka city increases then
the product
Economic- if peoples income increases then everybody will have
the ability to
National economic health- The product will do better if the
national economy
becomes healthier. But on the other hand, if the national
economy becomes
weaker, the product may found itself in a critical
situation.
Technological if our company can take new technology very fast
comparing
with others then obviously our company will take the advantage
of creating new
product and market opportunities.
Political situation- if the government looses their rules and
regulation such as
imposing less income tax then our company can easily generate
profit and can
serve more customers. Besides, political situation may have a
bad impact on the
product, if the situation is not in a fair position.
Our marketing strategy is based on becoming the potential choice
for consumers in the
soft drink market. Our marketing strategy is based on superior
performance in the
The marketing objectives of the company for the product are as
follows.
Maintain a gross margin of 25% each month.
Generate an average of Tk1200000 of sales each business day each
month.
Realize an annual growth rate of approximately 30% within the
year 2013.
Financial objectives determined by the company for the product
are as follows-
A growth rate in sales of 35% for the year 2013, to total excess
of Tk1200000 in
An average sale per business day in excess of Tk40000.
Reducing existing variable costs by 3% within the year 2010.
Our target markets are separated into four segments. The
segments are kids, mature,
young, and old. The segment details are as follows-
Kids:- The kids are a large portion of the population. According
to our marketing
investigators, kids are the second major consumer of soft
drinks. Kids like soft drinks.
They like different tests and colors and according to market
research kids are going to
love our new product DYNAMIC HEALTH PAPAYA JUICE Papaya Juice
because of
Mature:- Matures aged between 18 22 are also going to take our
product. It will bear
very significance market demand for our product.
Young:- There is a large portion of the population occupied by
the young people.
According to the marketing investigation most of them like soft
drinks and they
appreciated our new product. As young generation is the highest
consumer of this type of
product, they are our one of our potential customer to
serve.
Old:- Old are another portion of the population. Old are most
careful and sophisticated
consumer and are most concern about the price and the quality.
We think they are also
our potential customer because they also going to take our
product in large scale because
they suffer from different kinds of diseases like diabetics,
nutrition. And our product can
exempt them from that type of disease by fulfilling their
demand. So, targeting the Old is
also one of our effective decisions.
To the soft drink consumers, who are tired or looking for a
refreshing drink, DYNAMIC
HEALTH PAPAYA JUICE Papaya Juice is offering them the highest
refreshment with
the test of ripe papaya. DYNAMIC HEALTH PAPAYA JUICE Papaya
Juice is
offering the consumer a clear differentiated test from the other
drinks because it is making
collecting ripe papaya from the trees so that consumers can get
the natural test of the ripe
papaya. You can also experience the difference.
3.2. Marketing Entry Strategies
The greatest objective is to establish our new brand in the
industry. The marketing
strategy will seek to first create customer awareness regarding
the product and
establishing connections with targeted markets and work toward
building customer
The major marketing strategies are-
Increase awareness and image.
Quality and test leadership.
Increase awareness and Image: Informing the consumers about our
new product
DYNAMIC HEALTH PAPAYA JUICE Papaya Juice. Through,
advertisement,
leaflets, News papers, Television, events we can increase
awareness of the product
and establish image of our product.
Cross Selling: We can use our existing distributors to
distribute our new product.
We will also be able to cross sell our new product with our
existing products. This
will help us promoting our new product to the market.
Quality and test leadership: Another strategy is for being the
quality and test
leader in the market. We will offer the best quality drink in
the market which will
make us quality leader in the market. We are also offering the
best test in the soft
Mass distribution: We will also going for mass distribution of
our product. We
want to distribute our product each and every corner of the
country. For doing that
we will engage more distributor firms in every corner of the
country to make our
product available to all the customers within 2010. Consumers
will get the drink
where ever he of she goes.
Our marketing mix for the new product DYNAMIC HEALTH PAPAYA
JUICE Papaya
Pricing: The Company established the price of its new product
DYNAMIC HEALTH
PAPAYA JUICE Papaya Juice with the concept from cost based
pricing. According to
our calculation the cost of our product is Tk8, and we set Tk10
for our product.
Distribution: We will primarily use our existing distributors
for distributing our new
product DYNAMIC HEALTH PAPAYA JUICE Papaya Juice. Then, we will
make
some new channels and assign some distributors to promote our
new product to all over
Advertising and Promotion: The most successful advertising will
be through ETV, ATN
Bangla and RTV, which are the most popular television channels
in the country. We will
also use some bill-boards and leaflets and we will hold a sport
event for the young
generation to promote the product.
Our product will enable our customers to have a different
experience to test in soft drink.
They will be able to differentiate our product in quality and
test which are unique in the
soft drink market. They will not be able to feel the same way
for the other soft drinks in
In the current market of Bangladesh, there are a number of juice
products exist. Through
the market research we have revealed that most of these products
price range is in
As we are going to launce papaya juice with a different and
superior test, so we should set
the price of our product based on the competitor price. After
analyzing our production
cost, marketing advertisement, promotion, and distribution we
have come to a decision
that our setting price for the product will cover our total cost
and will bring profit within
Finally, considering all the factors associated with our product
manufacturing we are
going to set the price for Tk.40
Name of the Company Price
Pran 47
Fruto 48
Shezan 44
DYNAMIC HEALTH PAPAYA JUICE 40
Price
The most successful advertising and promotion has been trhough
the following:
Newspaper AdvertisementThe Prothom-Alo, The anokantho, The
Jugantor, Daily Star,
Television Advertisement- Channel I, ETV, STV, RTV, BTV &
ESPN etc.
Radio- Radio Furti, Radio Today, BBC Bangla Service
Leaflets distribution about the product in different areas.
The first goal is to recognize everyone as they come into the
store. If they are a repeat
customer, they are referred to by name. Our store will be
staffed with high energetic sales
persons who will dedicate their most of the time to customers
that want assistance when
they need it. The store is designed so a customer can sit as
long as them want to look at
our products. Their children are also welcome in our store. We
provide service in a way
that no other competitive retail store can touch. It is one of
our greatest assets and points
of differentiation. Insight, ideas, inspiration, and fun is the
goal. Repeat, high dollar
purchases from loyal customers are the desired end product.
This section will offer a financial overview four company as it
relates to our marketing
activities. We have shown break-even information.
Cost Structure for making 1 Liter juice
Variable Cost: - 24
Direct Material 13
Direct Labor 2.25
Indirect Material 7
Indirect Labor 1.75
Fixed Cost 1500000
Expected Unit Sales 120000
Manufacturing Cost 36.5
Sales & Promotion 2.50
Total Cost 39
Manufacturing Cost =Variable Cost + (Fixed Costs/Unit Sales)
= 24 + (1500000/120000)
= 36.5
At the very beginning, we want to go for 1, 20,000 pcs juice
production. And selling price
Unit Cost
(1 Desired Return on Sales)
39
=
(1-.4)
= Tk. 65
Fixed Cost
Break Even Volume =
Mark up Price Variable Cost
1500000
=
65 - 24
= 36585.36
Break even sales = 36585.36 pcs x Tk.40
= Tk.14, 63414.63
The sales forecast is broken down into the three main revenue
stream;direct sales, Web
sales, consignment sales. The sale forecast for the upcoming
year is based on 30% growth
rate. Growth rate fro year 2006 to 2010 are based on percentage
increases as follows:
Direct sales 20% growth rater per year
Web sales 50% growth rate per year.
Consignment sales 20% growth rate year.
In conclusion we can see that, the product the company is going
to launch has a bright
future in its market. As the product is innovative, the
consumers are going to appreciate it.
And according to the R&D (Research and Development)
department this product will be
a strong product mix for our company.
Text Book: Project Management