merriment ltd

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Marketing Plan

1. Introduction

I am a student of Masters of Business Administration 1st semester. As a part of

Marketing Management course, I have to do a marketing plan on a new product. This is

an overwhelming opportunity for me to learn the how to write a successful marketing

plan.

1.1 Origin of the Report

Our Course instructor assigned us to make a marketing plan for Marketing Management

course. It is necessary to know how to make a marketing plan, because when we start any

business first we have to make proper marketing plan. I marketing plan is on carrot juice

and the business farm is Merriment Ltd.

1.2 Objective

The objective of this marketing plan is able to fulfill the requirements of Marketing

Management course. The main objective of this marketing plan is to get the knowledge

about how to conduct a marketing plan and its implementation.

1.3Scope

There are many opportunities to make new businesses. The raw materials are very simple

and available around us. As well as there are, demand also. So, we used the scope is to

take the opportunities and do a carrot juice business by introducing new Merriment Ltdfor the people. I have tried our level best to gathering the information regarding this type

of business.

1.4 Methodology

First, I have to follow the guidelines of our course instructor Shahin Ahmed Chowdhury.

I collect some information from the internet and I conduct a survey among the students.

Finally, analyze this information to complete the marketing plan.

1.5Limitations

To prepare this marketing plan I have faced lots of limitations, obstacles etc. At times, I

Ire thinking that I might not be able to submit the business plans on time. However,

thanks to Almighty that it was not happen. The limitations are:

Cost limitations

Time limitations

Unavailability of information

Inaccurate of data

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Marketing Plan

In cooperation of respondent

2. Product Overview

The name of my company is Merriment Ltd which is a manufacturer of carrot juice.

The product name is Merriment Carrot Juice, which is very beneficial for the health

conscious generation. This company will be started next year and the location of

Merriment Ltd will be in Gazipur.

2.1 Objectives of Merriment:

The main objective of Merriment Ltd is to provide pure and natural vegetable (carrot)

juice to the customer that is why customers become beneficial by having this.

3. Product Description

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Marketing Plan

This is a picture of carrot juice milk, which contains both carrot, and milk. Both of the

ingredients of the juice are very healthy and useful for human body. This products price

should be Tk 30 for 250ml and Tk 45 for 500 ml. Target customer of this product are the

health conscious generation.

3.1 Features and Benefits of Carrot Juice:

Features Benefits1) An eight ounces of carrot juice can

contain as much as 800% of once daily

recommended dosage of vitamin A.

1) Vitamin A is essential and necessary for

tissue growth, especially within the bones.

Deficiencies in Vitamin A can causedryness and damage to the skin, nails and

hair. Drinking carrot juice to produce

Vitamin A is said to benefit many different

parts of the body. Vitamin A alsostrengthens bones and teeth.

2) Carrot juice contains high amounts of

beta-carotene. Beta-carotene changes to

Vitamin A in the body.

2) Carrot juice is thought to reduce the

risks of many different types of cancer

including skin and breast cancer. The

cancer-fighting properties of carrot juiceare often thought to be excellent due to the

high amounts of beta-carotene.

3) Carrot juice is also an excellent smyce of

vitamin C.

3) So carrot juice which provides vitamin

C, that has a wide variety of uses

throughout my entire body, such as

collagen production of the mucousmembranes, skin, bones, and teeth. Vitamin

C is also a very crucial antioxidant.

4) Carrot juice is an excellent drinkable

smyce of potassium.

4) So carrot juice is very important in

helping to maintain a healthy electrolyte

balance and fluid level in the cells of ymybody.

5) Carrot juice also provide calcium whichis very necessary for the body.

5) It is very important to receive a healthylevel of calcium in once daily diet. Bones

and teeth are dependent on calcium for

growth and formation, especially the

skeletal structure and development ofchildren.

6) It also contains vitamin E. 6) Drinking carrot juice is also thought tobe good for reproductive health due to the

Vitamin E content. This vitamin E is also

very important for beautiful hair and skin.

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Marketing Plan

4. Market and Industry Analysis

4.1 Opportunity analysis:

Factors Carrot Juice

Market size 3

Market Growth 3

Availability of Technology 4

Availability of Raw Materials 5

-Price of Raw Materials (2)

Availability of Infrastructure, Location 3

- Price of Location (3)

Chances of Making Profit 4

Here, 5 = Very high

4 = High

3 = Average

2 = Low

1 = Very low

Market Size: Market size of Carrot juice is average. Because in my country healthconscious people are not so high in number, they remain at moderate number.

Market Growth: Market growth is also at average level because market size is inaverage context.

Availability of Technology: Technology of making carrot juice is available here.

Availability of Raw Materials: Carrots are highly available in my country. For this

reason, raw materials are also highly available here.

Price of Raw Materials: Because of raw materials, highly availability price of raw

materials remains low.

Availability of Infrastructure, Location: Infrastructure and locations are available for

Merriment Ltd.

Price of Location: Price of location is moderate.

Chances of Making Profit: Chances of making profit is high because day-by-day people

become more health conscious.

4.2 Industry analysis:

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Marketing Plan

Agriculture industry in Bangladesh accounts for about 22% of the gross domestic product

(GDP) and another 33% of GDP is contributed by the rural non-farm econoI, which is

also linked to agriculture. Thus, agriculture and rural non-farm econoI are the main

smyces of livelihood for rural people. Despite substantial progress in overall poverty

reduction, about half of the population still lives below the poverty line. With almost 85

out of 100 poor people living in the rural areas, poverty in Bangladesh is largely a rural

phenomenon. Improved economic performance of the agriculture and the rural non-farm

sectors is, therefore, critical to reducing poverty. Progress in agriculture, which was led

by market reforms, high yielding varieties, fertilizer use, assured irrigation through

shallow tube Ills and boro season rice, was also responsible for near self-sufficiency in

rice production which was considered only a distant dream in early 1970s.

The Ministry of Agriculture is working to develop the agricultural sector of Bangladeshthrough numerous projects and agencies. This ministry addresses to the highest number

of stakeholder in the country. The business scope ranges from crop development to agro-

based industries with research on agriculture, agricultural engineering and agro-

economics.

The economics of Bangladesh is predominantly agricultural. Since the birth of

Bangladesh, the country has achieved an incredible growth in food production and

reached towards self-sufficiency by the year 1990. About 80 percent of the total

population lives in rural areas, and 62 percent of them are directly, and others are

indirectly engaged in a wide range of agricultural activities. The agricultural sector

contributes around 29 percent of the country's Gross Domestic Product (GDP) and

generates employment for 63 percent of the total labor force. The general agricultural

sectors are Rice crops, Jute, Cotton, Sugarcane, FloIr, Sericulture, Horticulture, Fisheries,

Vegetables, Livestock, Soil Development, Seed development and distribution. Nuclear

Agriculture has brought a new dynamic change in the agricultural sectors of Bangladesh.

This grand success has mainly been brought by the farmers through using modern

technologies developed by research organizations and effective Agricultural Extension

Services of the Department of Agricultural Extension (DAE). BADC is entrusted with the

task of multiplication, production and supply of high-yielding varieties of seeds. It has 21

Seed Multiplication Farms and 15 Contract GroIrs Zones for this purpose. Later, Seeds

are mechanically processed in 12 Seed Processing Centers in and around the seed

production zones.

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http://www.moa.gov.bd/http://www.moa.gov.bd/


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Marketing Plan

4.3 Competitive Environment:

Companyname

Brand

Productor

Servicequality

Production

Quality

Unique

Features

Distribution

System

Marketing/

Advertising

Packing

Geographic

Location M

arket

Share

Transcom

Beverage

Pepsi,

7up,

Mirin

da

H M L L L H L

M

Agricultur

e

Marketing

Company

Limited

Pran H H L H H M L

H

Partex

Group

RC

Cola,

Lyche

na,

Danis

h

H M L H H L L

H

Akiz

Group

Mojo,

Lemu,

Frutik

a

M M H L H M L

L

If we see the matrix, here in Transcom beverage, Pran group, Partex Group and Akiz

Group has some low factor. Those are unique features, distribution system, Marketing /

advertising,Geographic Location andMarket Share. Therefore, it could be competitive

advantaged for my company. By making attractive feature, improving distribution system

and providing best marketing to all of the people, we can make profit and take a good

position in market.

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Marketing Plan

4.4 Market Size and Growth:

I consider Gulshan area for my product. Gulshan thana area is considered as the New

Dhaka where most of the foreign missions are located. Besides, it has been developed as

a major residential area.

Population 156603; male 54.95%, female 45.05%; Muslim 93.65%, Hindu 4.88%,

Christian 1.38% and others 0.09%; population density per sq km is 3828.

4.5 Target Market:

Target customer is all educated and health conscious generation of Gulshan area. Three

are Literacy and educational institutions Average literacy 59.7%; male 66.4% and female

51.2% and 35% people are highly or all educated. I choose these 35% Ill educated people

for my product. This carrot juice is mostly for teenage, young, health conscious people

and older people.

4.5.1 Sales analysis

Per year Revenue: 50896*26*30 =39698880 Tk (Here 30tk is per bottle cost and

customers consume one juice in every two Ieks)

Per month Revenue: 39698880/12 =3308240 Tk

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Marketing Plan

5. Marketing Plan

5.1 Target Market Strategy:My target market is health conscious generation of Gulshan area of Dhaka. I chose single

segment Strategy to select my target market. Carrot juice is a new concept in our country.

To make aware of the people of the country about carrot juice and its advantage I have to

step forward step by step and my business which I will gong to open in near future issmall concern. So it is not possible to pick all general customers and I have to focus on

specific customer group. Thats why choose single segment strategy.

5.2 Marketing Mix:

5.2.1: Product-The product is titled Merriment, carrot juice. It is superior in quality

and taste. The juice contains uniform carrot pieces which gives the juice an all originaland natural taste. It is pure orange in color, exactly the color of juice at the time of

extraction. It does not contain any sort of additives such as added sugar and preservatives,

just purity.

5.2.2: Pricing: As I are targeting the health conscious generation of Gulshan area the

price must be affordable to consumers. Consumers are ready to shell out little extra

money for the exotic and classic drink that has many health benefits. Merrimentcarrot

juice will be priced as follows:

250 ml = T.K. 30

500 ml = T.K. 45

5.2.3 Promotion: The promotional efforts will be on two fronts i.e. on my direct

customers and the end consumers.

Advertising: Advertising will be exercised with a media mix, which will consist of:

Print Media: Print Media will be used in the form of news papers of various languages.

Print media will be mainly used with a purpose of communicating and complimenting mysales promotion schemes to pursue and gives us visibility.

Budget: 5000tk

Audio: FM Radio will be a key element in my media mix as it is cost effective and will

cover my target market. This will help us reach out to my target audience and the

influencers.Budget: 8000tk

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Marketing Plan

Transit Advertisement: Posters will be created by the company during the events and

will be carrying the company logo, brand name, the picture, and the tag line. Theseposters are used for transit advertisement.

Budget: 5000tk

5.4 SWOT Analysis:

Strengths:

Innovative flavor hence Merriment is bound to get the attention with proper

communication.

Committed, capable and ambitious management.

Merriment can gain incentives and capture more market.

Flexibility in the operations as initially Merriment will be confined to Gulshan area so

it can focus its efforts on the tasks.

Weakness:

Merriments distribution set up initially will be weak when compared to the others in

the market.

Carrot juice is new in the market and not all people take the risk of experimenting

with taste.

Opportunity:

The market is in a growing stage and fairly small in terms of market share as

compared to other thirst quenching and healthy drinks so at this stage my entry is

expected to be noticed.

The market has a presence of only few players and they are not too aggressive in their

acts.

More and more people in the urban areas are getting health conscious and are making

vegetable juice a part of their daily diet. Hence the market is growing.

The government policies are expected and are showing trends to encmyage the food

processing industry.

Threats:

The competitors have strong brand images in the market because of their other

businesses and their presence in the market from an early stage.

Bangladesh market has characteristic of serving a wide variety people, which is a

challenge for all the marketers.

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Marketing Plan

Others can adopt the flavor and the value of a unique flavor could be neutralized

soon.

6. Management planOrganization chart:In my company, there are nine employees. Five are director,

three are workers and one is mechanic engineer.

The organizational structure is the overview of an organization it reflects the business

nature, business type, responsibilities and the organizations overall picture. The

Merriment Ltd. organizational structure is designed with few common functional

departments of the organization.

Definition of the Organogram Short Notes

CEO = Chief Executive Officer

HOFA = Head of Finance & Accounting

HOT= Head of Technical

HOM= Head of Marketing

HOO = Head of Operation

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Marketing Plan

HOFA = Head of Foreign Affairs

7. Financial Plan

8.1 Capitalization Plan:

Initial start-up cost:

Equipment & machinery = 182000tk

Furniture & Fixture = 130000tk

Legal & Professional Fees = 3000tk

Vehicles = 300000tk

Other cots and services = 20000

Total initial start-up cost = 635000tk

Fixed Operating costs:

Insurance = 4200tk

Operating loan payments = 20000tk

Phone = 5000tk

Rent = 120000tk

Variable Cost:

Advertising = 28000tk

Building & equipment maintenance = 20000tkEmployee wages = 150000tk

Utilities = 4000tk

Other supplies & purchases & expenses = 75000tk

Total operating cost = 426200tk

Total estimated start-up costs: (635000+426200) = 1061200tk

Recommended start-up capital required (add 25%) = 1061200*25% = 1326500 tk.

8.2 Uses of fund statement:

Merriment has to take 1000000 taka bank loans. From these bank loans 700000 tk

utilized for factory machinery and office equipments and rest of the bank loans are

utilized for other purposes. There are five directors in this company. Each director gives

200000 tk to establish Merriment.

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Marketing Plan

8.3 Pro-forma statement:

Pro Forma Income Statement

2010 2011 2012

Sales 39698880 42080812 44605660

Direct Cost of Sales 1984944 841616.24 446056

Other 0 0 0

------------ ------------ ------------

Total Cost of Sales 1984944 841616.24 446056

Gross Margin 37713936 41239195.7

6

43713546.8

Expenses:

Payroll 8336764.8 3366464.96 2230283

Sales and Marketing and Other

Expenses

1190966 420808 446056

Depreciation 0 0 0

Legal Fees 300 300 300

Utilities 3,600 3,600 3,600

Insurance 4,200 4,200 4,200

Mortgage 1587955 420808 446056

Payroll Taxes 1190966 420808 446056

Other 0 0 0

Total Operating Expenses 12306652.8 4628889.32 3568452.8

Profit Before Interest and Taxes 25010294.4 36610306.4

4

40591150.6

Interest Expense 1587955.2 420808.12 36,131

Taxes Incurred 5954832 8836970.52 10259301.8

Net Profit 17467507.2 26931719.6

8

30193571

Net Profit/Sales 44.04% 64.23% 67.69%

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Marketing Plan

Pro forma Balance Sheet

Assets

Current Assets 2010 2011 2012

Cash 1326500 1459150 1605065

Accounts Receivable 66325 29183 32101

Other Current Assets 79590 14591.5 16050

Total Current Assets 1472415 1517516 1637166

Long-term AssetsLong-term Assets 756105 145915 64202

Accumulated

Depreciation

0 0 0

Total Long-term Assets 756105 145915 64202

Total Assets 2228520 1663431 1701369

Liabilities and Capital

Current Liabilities 2009 2010 2011

Accounts Payable 79590 29183 32101

Current Borrowing 212240 43774 16050

Other Current Liabilities 212240 43774.5 16050

Subtotal Current

Liabilities

490805 116732 64202

Long-term Liabilities 1127525 145915 32101

Total Liabilities 1618330 262647 96304

Paid-in Capital 0 0 0

Retained Earnings (902020) 116732 609924

Earnings 1512210 1269460 995140

Total Capital 610190 1386192 1605065

Total Liabilities andCapital

2220520 1663431 1701369

Net Worth 610190 1386192 1605065

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Marketing Plan

Conclusion

The product is titled Merriment, carrot juice. The main objective of Merriment Ltd is

to provide pure and natural vegetable (carrot) juice to the customer thats why customers

become beneficial by having this. Market size of Carrot juice is average. Technology of

making carrot juice is available here. In my country, carrots are available so I can get raw

material so easily. This products price should be Tk 30 for 250ml and Tk 45 for 500 ml.

Target customer of this product are the health conscious generation. This business plan of

Merriment carrot juice I can say that Merriment Ltd. If Merriment could capture its

target customer then it will increase its range of business and also increase the variety of

products means variety of vegetable juice.

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merriment ltd

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