Marketing Plan on Health Drink C+Submitted To:

Mahtab Muntazeri (Mbt)

Lecturer

North South University

Submitted By:

Name ID

William Banarjee 142 0369 030

Farzana Mehnaz 142 0718 030

Shahrear Shamrat 141 0880 630

Shehta Zarab 143 0550 030

Kazi Sabrina Nasrin 141 1235 630

Date of Submission: 4th May, 2015.

Introduction to Marketing: 202.16

Letter of Transmittal4th May, 2015

Mahtab Muntazeri

Lecturer

School of Business,

North South University

Subject: Submission of Group Project Report on Marketing Plan of health drink C+.

Dear Sir,

With great pleasure we are submitting the group project on Marketing Plan of health drink C+.

This project has been an eye-opener for us. We have found the project quite interesting,

beneficial and knowledgeable. We have tried our level best to complete and prepare effective

and creditable project report. It is a good opportunity for all of us to gain some practical

knowledge and innovative ideas about how to make a marketing plan. This would help us in

future to make more effective marketing plans.

We would like to thank you for your support and we appreciate the opportunity to work on this

project. We believe that this report would be interesting to you. We hope that our unwanted

errors will be taken with forgiveness.

Yours Sincerely

William Banarjee (142 0369 030)

Farzana Mehnaz (142 0718 030)

Shahrear Shamrat (141 0880 630)

Shehta Zarab (143 0550 030)

Kazi Sabrina Nasrin (141 1235 630)

Acknowledgement:

This project has been an eye-opener for us and we are really thankful to those who

have helped us regarding our work.

We express our profound gratitude to our Course Instructor Mahtab Muntazeri (Mbt), Lecturer,

School of Business, North South University, Dhaka, for guiding us with all his best efforts and

hearty inspiration to complete this project report. We are fortunate to have his support while

preparing this report and throughout the course as well.

All the group members worked very hard with sincerity for completing this project. We

supported ourselves with every possible way to make our project a success.

We also thank our friends and family for helping us as much as possible by supporting us and

providing necessary information for this presentation.

We hope that our unwanted errors will be taken with forgiveness.

Thank You.

Table of Content

Serial No Content

1 Executive Summary

2 Introduction

3 Company Summary

4 Marketing Environment Analysis

5 Market Analysis

6 Marketing Strategies

7 Financial Forecasting

8 Conclusion

Executive Summary:

Coconut water is the most demandable natural drink all over Bangladesh. Coconut water, the

clear, slightly sweet liquid inside coconuts, is pitched as a natural rehydration tool rich in

electrolytes, particularly potassium, which prevents cramping. The product we are going to

launch is “C+”, green coconut juice. This product will be available in every part of the country

within 5 years. To make this vision a reality, we have to be thorough about the plan and have

strict knowledge on the market. This knowledge let us know that the main competitions for us in

the market are Coca Cola and Pepsi. They are present since the beginning and have gained trust

of people all over the world. Even so, people are now more aware about health and searching for

healthy beverages. But in a country like ours, it is almost impossible to get something purely

natural. This product of ours will give the people relief and they can finally be able to have 100%

natural drink at arm’s length. From athletes to an increasingly health conscious middle class, its

success is credited as an answer to the growing demand for natural, healthy products.

Introduction: In the time of everyday busy life people always want something healthy but

easily consumable. We are bringing something according to their want. C+ is such a drink that

will fulfil people's desire. It contains every necessary nutrition that our body needs. We are

following every important steps, strategies to reach our customers heart through this drink. We

analyzed the market for our product whether we will be able to grab maximum percentage of our

targeted customers. Hopefully, we will be able to make our new product a success.

Company summary:

Propose start up plan: We are a young consumer company of the country. We are producing

premium quality food items. We are thinking to extend our business and planned to add a

product line in our company. The proposed product is natural health drinks. As there is no

natural health drink company in our country, we have planned to grab that untouched market

segment which has high potentiality according to our marketing research.

Mission: To provide the people of Bangladesh with the first experience and taste of purely

natural health drink in glass bottle.

Goals & Objective: Establish relationships with quality full suppliers of raw materials and

establish our name and image in the beverage industry. Positioning our brand and product into

the mind of our targeted consumers nicely.

Marketing Environment Analysis:

There are some factors of environment that will affect our company. These factors could

be inside our company and outside as well. There are two types of marketing environment that

may affect any company’s procedure, which are Microenvironment and the Macro environment.

Microenvironment Factors.

Micro Environment: There are some actors close to our company that we have to

consider about. These factors are our company itself, suppliers, marketing intermediaries,

customers, competitors, public etc.

1. The Company: All the department of our company must work together in order to achieve

our goals. Some important department such as marketing department will provide information

about current market, the customer’s want, their satisfaction, market growth and share etc. And

our Accounting and finance department, management department, logistics department etc. will

work based on that information and will try to provide best product. On the other hand other

department will provide information to our marketing department so they can take efficient

decisions. By this way we will make sure all the departments within our company has a good

communication for efficient work.

2. Suppliers: This is one of the important factors of our company in order to produce our

product. So we will make sure we will deliver our best attention to our suppliers. As our

suppliers do not have a sure sale of their coconut which is our main raw material and they have

to sell it at a very low price. Here we will provide them a confirmation on sale and also we will

give them a reasonable price. And if we are able to achieve our target, we will provide them a

certain bonus. So that our suppliers get satisfied doing business with us and don’t get a reason to

sudden change in our deals.

3. Marketing Intermediaries: Another important factor for us. There will be no wholesaler; we

will distribute our product through retailer. We will provide to retail store grocery shops,

restaurants, there will be a selective distribution in some case, such as school, college, university

canteens and hospitals. Since our only distribution channel is retailer, and they are going to

represent our product so this is our priority to maintain a good relation with them. Based on our

statistics and financial condition we will provide extra payment to display our product where

customers can see them.

4. Customers: Our most important priority is our customers which is also a important actor of

microenvironment. Basically there are five types of customer markets, but for us there will three

types of customer market.

a) Consumer: Our larger portion of customer will be consumers. By statistics there will

be 52.5% consumers of our customer market. Statistics also says there are 93% of our total

population consumes soft drinks. Our main target is to grab the consumer market.

b) Business: Business customers are also important to us. There will be 10% of business

customers such as private universities, corporate office and restaurants. We will also provide

occasional supply to business customers. If any companies organize a party or celebration we

will provide them our product in a bulk. This deal is only applicable if any company orders in a

bulk.

c) Government: Our special product C+ which is added with herbs will be sold to

government medical institutes. And as it is for medical use we will make sure of the quality of

this product.

5. Competitors: This actor of microenvironment is our threat since we are new to the market.

Respectively Coca Cola and Pepsi has got most of the market share. We will try to compete with

them and we have a same type of price so it will be critical for us to conduct an analysis on our

competitor. We will always monitor what offerings Coca Cola and Pepsi are offering to

customers and we will take decision based on that.

6. Publics: There are several types of public such as financial, media, government, citizen, local

general, internal etc. Our job is to make sure that public gives a positive opinion about us. We

cannot control public so much directly but to gain a brand image and positive view we would do

some CSR activities, sponsoring, charitable donation. And we will maintain the law imposed by

the government.

The Macro environment: There are some factors of environment that we can’t control directly,

these factors are also important for us. These factors such as demographic, Economic, natural

environment, technological, political etc. has to be considered.

1. Demographic: Science we are going for undifferentiated or mass marketing so demographic

environment is important for us. Geographic shift from an area to another area could be harmful

for our marketing plans. We have set target for metropolitan area’s so if any shift happens we

have to come up with a new marketing plan. But it is a positive point for us that people usually

shifts to metropolitan areas. And other facts like changing in age structure or changing family

etc. won’t be that much problem for us we believe.

2. Economic: Economic facts such as inflation, supply and demand etc. is very much important

for us. Major percentage of population of Bangladesh is middle class. Their purchasing power is

limited and always likely the same. Here we have an advantage that we will provide our product

in a reasonable price. So that our product is in their range of price.

3. Natural Environment: Our product is completely depended on natural resource which is

coconut. So it is very much important factor for us. Bangladesh is a populated country, if our

product grabs maximum market share, it would be difficult for us to distribute to all of the

customers. Hence there could be a shortage of raw materials.

4. Technological: This is one of the factors we cannot control. But our product is more nature

based so if technology improves this will be a positive side for us because we could supply our

product much faster and more in numbers.

5. Political: Political environment has to be considered. Since there is no control on political

situation we have to be careful. And we are a new company in the market if any political crisis

happens that could shut us down due to loss.

These all microenvironment and micro environment factor has to be considered in order to

achieve our goals and earn a profit. There are some actors factors could be negative for us. But

with proper plan that can be taken care off.

Market analysis:

Segmentation: The market is made up of various segments, products and needs. Today’s

market revolves around the customers, their needs and satisfaction. These customers vary in their

locations, buying behavior, lifestyles, and heterogeneous preference. However, the company

must find which segment provides the best opportunities. Since the market is like a vast ocean, a

company segments it into smaller groups in order to effectively and efficiently provide the

customers, the very best. We have the same target. In order to do so, we have grouped the

customers by geographic, demographic, psychographic and behavioral segmentation

We will be spreading our product considering different segmentations of customers to attain the

marketing goals which is to attract and keep customers and grow that percentage. We will be

following different segments of customers including-

Geographic: This segmentation comprises of country, city, state, climate, regions etc. A

company may choose to operate in a single or more than one geographical sectors. We have

decided to base our market in Dhaka city primarily. This business is expected to spread all over

the country in the next 5 years. But for now, Dhaka city is our primary target.

Since we are not willing to spread the product at the initial stage, we will be supplying our health

drink just in the capital of the country. The reason is the population and growing and developing

mentality of people of the city. Almost 60% of people are slightly health conscious of the

country, so it will be easy to reach them easily.

Demographic:

Demographic segmentation is market segmentation according to age, race, religion, gender,

family size, ethnicity, income, and education. Demographics can be segmented into several

markets to help an organization target its consumers more accurately. With this type of

segmentation, an organization can categorize the needs of consumers

Initially we are selecting our demographic segmented customers based on age, income. Later on

we have the plan to expand our demographic segmented customers holding other sectors. For

now we are focusing on only 2 sectors.

Age: Young (13-30) and middle aged (30-45).

Actually people of these ages are most likely to be health conscious nowadays. They have more

idea about health. So they are the segmented customers of our product.

Income: Since we are providing premium quality products we are mostly tend to target middle

class, upper middle class and higher class income people.

Psychological segmentation: Psychological segmentation divides people according to their

attitudes, values, lifestyles, interest, opinions etc.

This segmentation actually tells us about our potential customers.

People these days have become more health conscious. They have developed a great affinity

toward fresh and natural products. They have formed their lifestyles, attitude, values etc. based

on this awareness. As a result, our product will be highly appreciated and accepted by them. A

jogger for example, after exercising would want to have a healthy drink. But all he can find are

chemicals. And the home-made health drinks are time consuming. Our current product will

release him from this tiresome preparation and provide him with instant relief.

Psychographic-

Social class: social class defines people on their buying power. They usually buy any kind of

goods and services to maintain their social class. In our country, most of the people are health

conscious now-a-days which is slightly tend to express their social class. Considering the fact,

our segmented customers are-

a. Higher class

b. Middle class

Personality: It is the mixture of psychological factors, lifestyle and social class. These qualities

differ depending on their buying power.

Behavioral

1. User status:

2. Usage rate

3. Benefit sought

4. Loyalty

5. Attitude

User status, occasions, user rate, buyer reaction stage, benefits etc. are the characteristics of

behavioral segmentation. We are going to target the customers based on these as well.

Benefits: Both C+ is highly beneficial for health. What customers truly need can be presented to

them with efficiency. The sick people can treated by adding C+ to their medicine list. Customers

are more vigilant about their health and these products meet their needs with ease.

User Status: Our products will attract customers who are annoyed of their corruption in food

products. These will also attract those customers who are indifferent to having distinguished

healthy drinks. They can be termed as potential customers.

Target Market:

A target market consists of a set of buyers who share common needs and characteristics that a

company and organization decides to serve.

We have decided to go for differentiated target market and niche market. These markets are

growing rapidly because of the growing concerns for healthy food products. The over

consumption of chemicals has led to the downfall of people's health. And so, it is highly

profitable. These markets are very much accessible because coconut water as a health drink has

gained international fame and this will be of huge advantage in Dhaka's growing market.

Because of concerned parents, the children are also cautious about their daily intake of food. The

schools, colleges and universities are also emphasizing largely on healthier products and green

environment. Our product will be made available to them. And because of their stance in

creating a healthier environment, they will accept our product whole-heartedly.

Because of concerned parents, the children are also cautious about their daily intake of food. The

schools, colleges and universities are also emphasizing largely on healthier products and green

environment. Our product will be made available to them. And because of their stance in

creating a healthier environment, they will accept our product whole-heartedly.

Besides educational institutions, these will be marketed for hospitals, restaurants, hotels etc.

which are all the more profitable and then some.

Differentiation:

This process is to distinguish a product from the competitors' to make it more attractive to a

particular target market.

We have decided to target the common people for C+. We are confident about our product

because it is unique and it provides its consumers natural and 100% Halal drink. These will be

made available to offices, restaurants, general stores, hotels, occasions etc. For our C+ product,

which will be made for medical purposes, would be made available in hospitals and for athletes.

Even so, elderly people would easily get this from hospitals and clinics. Since they have to

maintain strict diet, this product will give them relief from their monotonous diet. Besides,

Government owned, non-profit and for profit hospitals are endorsing every possible natural

treatment.

In Bangladesh, this product will be the first to be introduced. And as this is purely natural and

Halal, consumers are bound to accept the product and see it as a unique one. Another advantage

of easily grabbing the market is the international recognition of this product as a health drink.

The developed countries are already way ahead of us. Coconut water is now a $1 billion

industry. What we are going to provide is 100% natural but only in a considerably low price.

This will give us the competitive edge. Though our competition is minimal because all other soft

drinks, energy drinks etc. are chemicals, we have to gain the trust of the customers. And our

approach can make that possible.

Market Size:

Bangladesh has a huge population of 152,518,015 in the last statistics at July 16, 2012.Among

them, young generation is counted as main part of market of Beverages like soft drinks. About

3.5-4 hundred million people are of 12-18 age, and 12-50 years people are about 70% of total

population. So, these huge amounts of population will be considered as our market. Because

people of almost all ages our country likes to drink beverages like Soft drinks. But instead of

drinking their death, they will be drinking life! So, we can target them as our market.

Competitor Analysis:

The beverage industry in Bangladesh is very large. There are a lot of drinks producers. Some of

them are national and some of them are local suppliers. Some companies also export

their products. In our country, many foreign brands are also available. They are comparatively

costly too. So the consumers’ taste and demand are changing from low quality products to high

quality products. Now the beverage industry of Bangladesh is very competitive.

The main competitors of the drinks line will be the beverage brands of Bangladesh like Pran

Group, Partex Food & Beverage, Akij Food & Beverage and Pepsi, Coca-Cola, Fanta etc.

Soft Drink Core Product Country of Origin Manufacturer in

Bangladesh

Coca Cola Cola U.S.A Abdul Monem Ltd

7UP Lemon and Lime U.S.A Transcom Beverage

Pepsi Cola U.S.A Transcom Beverage

Clemon Clear Lemon Bangladesh Akij Food and

Beverages

RC Lemon Cloudy Lemon U.S.A Partex Beverage

Limited

Mojo Cola Bangladsesh Akij Food and

Beverages

SWOT Analysis:

Strengths:

1. Carbonated free beverage.

2. Preservative free & healthy.

3. Unsweetened essence water, refreshing.

4. Hygienic & high quality.

5. Promotions & advertising.

6. Anti-carcinogenic (anticancer) properties

7. Naturally isotonic to human blood

8. In Bangladesh, it’s the first and only product to be introduced in the market as a ready-made

health drink.

9. Unprecedented possibility of becoming a billion dollar industry in Bangladesh as well.

Weakness:

1. New brand.

2. Brand might fail to compete with other brands.

3. Time consuming in building the brand image.

4. People’s distrust towards native companies because of corruption.

Opportunities:

1. Bottled drinks consumption growth.

2. Increasing demand for healthy drink.

3. Consumer wants new product that can fulfill their need.

4. Frustration towards chemical products.

Threats:

1. Changes in consumers taste.

2. Competitions from other local & foreign brands.

Location Analysis:

“C+” will be produced in the factory of Aggressive Marketers which is situated in Gazipur

Industrial Area. This area is close to target market location. With the expansion of our business

we will sell our product all over the country. This is expected to grow within 5 years.

Scientific Analysis:

One green coconut contains maximum 500 and minimum 250 ml. of coconut water. We will be

marketing this in glass bottle of 200ml. This gives us a huge advantage in making double profit

from one single coconut. An experiment shows that coconut water in glass bottles heated at

T5=100 degree Celsius remains in best quality even after 6 months.

No preservative will be added, it will be hundred percent natural. As a result, general people will

finally have chemical free drinks for the first time in Bangladesh, where formalin added goods

have become natural and natural things have become imaginary.

Marketing strategies:

Positioning:

Positioning Concept attempts to sell the benefits of the product or service to a potential buyer.

The positioning concepts focus on the rational or emotional benefits that buyer will receive or

feel by using the product/service.

In this era of rush and food adulteration. People are far away from quality food. Though they

want to have good quality food they are hardly getting those. We are trying to resolve people’s

problem and reducing their fear of packaged food. In continuation of that, we coming up with

another product, green coconut drink named C+. This drink fulfil all the nutrition of green

coconut in a jiffy. Our intention is to satisfy all the health conscious busy people providing a

quality health. We are following a process to build a better position of our product in the market

1. Our point of difference: We are the first company bringing such a drink in the country.

Nobody came up with coconut drink before in the industry. That is our strong point to

position in the market strongly.

2. Distinction: We are already have a position of our brand in the market and people know

that we care their want and health. So it is easy to assure them that our new product will

satisfy them with a health drink

3. Attraction: Since our targeted customers already know about our brand, it will be very

easy to attract them with our new product, yet we will come up with 2 different

advertisements letting people know almost every important information about the drink.

And we will assure people good quality with the drink.

Marketing mix: marketing mix is something, “Putting the right product in the right place, at

the right price, at the right time.”

In marketing mix we analyze 4Ps, those are:

1. Place

2. Product

3. Price

4. Promotion

Place: We will try to reach almost every targeted customer. Considering that, we are setting

few places so that our customers can easily get our product. The places we fixed:-

1. General shop

2. Super shop (such as Meena bazaar, Shopno, Agora etc)

Product:

1. The drink is a pure health drink. No chemicals, certified flavors added.

2. 100% halal. (Certified by Islamic food research center Malaysia and Asia region)

Price: The price of product will be 20/- for 200ml.

Promotion:

Advertising: We will bring 2 television and radio advertisement and also advertise

on billboard on some selected place on Dhaka.

1. Public relation: After the 1st week, we will open a small booth in 5-6 renowned

educational institutions and offices just to let them know about our product more

properly.

Marketing channels:

Individuals or firms (such as an agent, distributor, wholesaler, retailer) that links producers to

other intermediaries or the ultimate buyer. Marketing intermediaries help a firm to promote, sell,

and make-available a good or service through contractual arrangements or purchase and resale of

the item. Each intermediary receives the item at one pricing point and moves it to the next higher

pricing point until the item reaches the final buyer. Also called distribution intermediary.

We are maintaining some distribution channels. So that we can easily reach our product with our

product. Our distribution channels:-

Dealer

Retail

Financial Forecasting:

The financial forecasting of the proposed “C+” has been carried out to determine its economic

viability. The financial analysis has been made on the basis of production capacity and marketing

targets.

Investment Cost:

The total estimated cost of the Project is Taka 50,000,000 which includes cost of land, land

development & pond excavation. The Project is proposed to participate on 60:40 Equity/Bank

Loan bases.

Following is the estimated project cost or investment cost-

Table: Total Investment/Fixed Cost

Particulars Taka

Land and land development 10,000,000

Building and other civil Works 15,000,000

Plant & Machinery 10,000,000

Furniture 4,500,000

IT Equipment 3,000,000

Pre-operating Expenses 5,000,000

Contingency 2,500,000

Total Cost 50,000,000

The sources of finance will be as following-

Table: Source of Finance

Equity Tk. 30,000,000

Project Loan Tk. 20,000,000

Debt/ Equity Ratio 60 : 40

In the following way the loan will be repaid-

Project Loan Repayment Schedule

Rate of Interest 12.0%

Construction Period 12 Months

Amount of Loan 20,000,000

Repayment Period 5

Number of Installments 5

Installment

Number

Opening Loan

Amount

Installments Closing Loan

AmountPrincipal Interest Total

1st 20,000,000 3,148,195 2,400,000 5,548,195 16,851,805

2nd 16,851,805 3,525,978 2,022,217 5,548,195 13,325,827

3rd 13,325,827 3,949,095 1,599,099 5,548,195 9,376,732

4th 9,376,732 4,422,987 1,125,208 5,548,195 4,953,745

5th 4,953,745 4,953,745 594,449 5,548,195 -

Sales Revenue, COGS and Operating cost

The company is expected to sell 2,500,000 bottle of 200ml coconut juice 1st year. Then the sales

are expected to grow at 20% each year. The unit of coconut juice is priced at Tk. 20 which may

increase by time with increase in quantity. The cost of goods sold will be 50% of the sales

amount and operating and marketing expense will be 15% to sales.

Table: Sales Revenue, COGS and Operating cost

Unit Year-1 Year-2 Year-3 Year-4 Year-5

Sales in quantity Bottle 2,500,000 3,000,000 3,600,000 4,320,000 5,184,000

Selling priceTaka Per

Unit20 20 20 20 20

Sales in value-

TotalTaka 50,000,000

60,000,00

0

72,000,00

0

86,400,00

0

103,680,00

0

Cost of goods sold

Raw MaterialsTaka Per

Unit7 7 7 7 7

Overhead - exc.

Depreciation

Taka Per

Unit2 2 2 2 2

DepreciationTaka Per

Unit1 1 1 1 1

Product costTaka Per

Unit10 10 10 10 10

Cost of goods

sold- TotalTaka 25,000,000

30,000,00

0

36,000,00

0

43,200,00

051,840,000

Ratios

Raw Materials

to Sales% 35% 35% 35% 35% 35%

Overhead to

sales% 10% 10% 10% 10% 10%

Dep to sales % 5% 5% 5% 5% 5%

COGS to Sales % 50% 50% 50% 50% 50%

Operating Expenses

Selling% of

sales2.0% 2.0% 2.0% 2.0% 2.0%

Marketing% of

sales5.0% 5.0% 5.0% 5.0% 5.0%

Distribution% of

sales2.0% 2.0% 2.0% 2.0% 2.0%

Administration% of

sales6.0% 6.0% 6.0% 6.0% 6.0%

Total operating

cost to sales15% 15% 15% 15% 15%

Total operating

costTaka 7,500,000 9,000,000

10,800,00

0

12,960,00

015,552,000

Income Statement:

The company is expected to generate positive revenue from the first year.

Table: Projected Income Statement

Particulars Year-1 Year-2 Year-3 Year-4 Year-5

Net Sales 50,000,000 60,000,000 72,000,000 86,400,000 103,680,000

Cost of Goods

Sold

(25,000,000) (30,000,000) (36,000,000) (43,200,000) (51,840,000)

Gross Margin 25,000,000 30,000,000 36,000,000 43,200,000 51,840,000

Operating

expenses

(7,500,000) (9,000,000) (10,800,000) (12,960,000) (15,552,000)

Profit before

Interest and Tax

17,500,000 21,000,000 25,200,000 30,240,000 36,288,000

Interest Expenses 1,335,417 1,415,283 1,486,401 1,543,942 1,581,736

Profit before Tax 16,164,583 19,584,717 23,713,599 28,696,058 34,706,264

Taxation (4,849,375) (5,875,415) (7,114,080) (8,608,817) (10,411,879)

Profit after tax 11,315,208 13,709,302 16,599,519 20,087,240 24,294,385

Profit distribution - - - - -

Retained Profit

during the Year

11,315,208 13,709,302 16,599,519 20,087,240 24,294,385

Accumulated

retained earning

11,315,208 25,024,510 41,624,029 61,711,270 86,005,655

Conclusion:

After analyzing and describing the full marketing plan of “C+”, we can conclude that “C+” will

do well in market. We will try to position the product into the mind of our customers that our

product “C+” is 100% natural health drink which has no added chemical. There is demand for

natural health drink among carbonated beverage. As people are becoming health conscious and

have the tendency to consume natural health drink instead of other drinks, we are going to grad

that market potential and create good relationship with consumer and earn profit by satisfying

their need.

Appendix:

1) Wikipedia

2) Principles of Marketing by Philip Kotler & Gray Armstrong