A MARKETING PLAN ON SOYMILK

Soyapro-Drink right, be bright!

Presented By-

Phoenix

Bharat Parmar

Disha Meshram

Mamta Mourya

Prashant Kumar Kanaujiya

PritiMala

Sanjeev Kumar

SoyaPro

Drink right, be bright

Situation Analysis• Abrupt increase in body cholesterol due to Fast food

consumption.

• 14-15 % of Indian population is affected with high BMI.

• 60% of deaths in India due to Non Communicable Diseases.

• Most beverage contains high fat or high calorie content.

Need Identification

• Need of Low saturated fat and low calorie, but high protein containing beverage.

• Natural and Low price beverage.

• Substitute of soft drinks and chemical nutrient supplements.

Market summary• Indian Market of 700 crore for nutrient beverages.

• Market Growth rate 10-12% per year, with CAGR 50%.

• 52.5 million litres produced per year in India.

• Substituting market of fruit juice, cow milk, soft drink and toned milk.

Product Characteristics• Soybean extract, free from cholesterol, and less calorie .

• Containing Omega 3,vitamin B and D and 6 gm protein per 250 ml.

• 50 % more calcium than dairy milk.

• Available in major flavour, packaged in tetra pack.

• Unique selling point- 100% free from beany flavour.

Analysing Environment

• People were less aware about benefit of Soymilk.

• Increasing awareness as Entry of National and International

players in market.

• Increasing Government and NGO’s efforts.

• Till 2017 the consumption will be doubled.

Analysing Competition

• Competition from Cow milk, soft drinks, toned milk, fruit juices

and other player in Soymilk Industry.

• Market player Increase from 50 in 2000 to 400 in 2014.

NAME STRENGTHS WEAKNESSES

Staeta Promotes healthy lifestyle and

alternative staple food

Only 1 litre packaging available

Sofit high brand value as marketed

by Godrej;

Marketed only in selected

outlets without any advertising

Silk Available in many flavors. More focus on taste rather than

health.

Soy Fresh Meets the US FDA heart health

claim.

Very expensive.

Regional

players

More emphasis on regional

spread at a cheaper rate in

localized areas

Often they compromise in

quality while trying to sell at a

cheaper rate than the

competition market rate.

Market segmentation

• Geography:- Urban Gujarat having population more than

0.5 million.

• Demography:- More than 20 yrs. of age, and middle and

high income group.

• Gym going and high concern for physique.

• High Body cholesterol containing people, mainly affected

with diabetes and heart diseases.

Demand Forecast

Survey in Three cities.

35 cities in our target geography. Average sell of soya

milk (in litres) per month =27, 19,500. Targeting 10 %:-

Supply channels Total Points of

sale in three

cities

Covered in

survey

Average

Prospects per

day per point

Avg. packets of

200 ml sell per

day

Total packets of

200 ml sell per

month

Hospitals 400 12 10 4000 1,20,000

Gyms 350 10 5 1750 52,500

Retail stores

(selling soya

milk)

Approx. 900 12 8 7200 2,16,000

Initial demand forecast (total litre

of soya milk sell per month)

Demand After Six months with 10

% increase

2,71,950 2,99,145 litres

Demand forecast continue….

• In coming 5-10 year the soya protein consumption will

increase from 50% to 80% gradually.

• Patients of high cholesterol are increasing at 13-15% per

year.

• 0.37% people go to fitness centre, increasing with 15%

rate.

Positioning

• Healthy beverage for body fitness, and as protein

supplement.

• Family nutritious caretaker.

Pricing

• Mark up pricing strategy, 30 % mark up on cost.

• Cost of producing 1 liter of soymilk is INR 53.39.

• 16 % less than competitor’s price.

Promotion• Health check-up camp, free distribution at some sport events.

• Total initial promotional expense=6,25,400.

• Advertising on print media, billboards.

Margin Price per

litre

Price

per200ml

Price per 500ml

Price for

Distributor

30%(of company) 77 15.4 38.5

For Retailer 20%(of Distributor) 92.4 18.48 46.2

For customers 12%(of retailer) 105 21 53

Advertising ExpenseAdvertising

channel

Name Duration frequency Time Coverage Size cost

Newspaper Gujarat

samachar

2 month 3/week Sunday,

Saturday, and

Wednesday

whole Gujarat

8,54,097

circulation

daily

63 cm2

4300 Rs per

day

I.e. 1,03,200

for two

months

Billboards Prithvi

Associates

6 month 3 in each

city

- Hospital,

railway station

and city centre

20’x10’ 2400*3=

7200

Pamphlets Once in

month

1 in other news

paper

Gujarat

(10,00,000)

per day

256 cm2 .50 rs per

copy, Total

cost =

5,00,000

Health

magazine

Health and

Ayurveda

2 month 2 Monthly All Gujarat 4.5*3.5sq

cm, half

page

7500*2=

15,000

Sales Forecast• First method as per number of people going to fitness centre

• Second method for sales estimation as per total number of people

having high cholesterol content in urban area of Gujarat

Total

urban

population

Fraction

people

going

fitness

centres

Number of

Potential

Customers

Demand

Estimate

per day (

10% of

potential

customers)

Demand

Estimate

per

month(in

terms of

200 ml

packet

sell)

Demand

estimate

in first

year

Demand

estimate

in second

year( 10

%

increase)

Demand

estimate

in Third

year(

5%

increase)

25700000 0.0037 95090 9509 285270 3423240 3765564 3953842

Total

Population

Fraction

people

Having High

cholesterol

Number of

Potential

Customers

Demand

Estimate

per day (

1% of

potential

customers)

Demand

Estimate

per

month (in

terms of

sell 200ml

packet )

Demand

estimate

in first

year

Demand

estimate

in second

year(

10%

increase)

Demand

estimate in

Third year(

5%

increase)

25700000 0.11 2870000 28700 861000 1,03,32,0

00

1,13,65,20

0

1,19,33,460

Expense Forecast

• Total Initial Fixed Investment :- 91,84,000/-

• Working Capital per month:-

• Cost per litre of milk production

1. Salary & Wages 4,24,000/-

2. Raw Materials 14,32,315/-

3.

Other Expenses ( Including promotional

cost) 12,00,000/-

Total: 30,56,315/-

Variable cost per litre sale 13.331567

Fixed cost per litre sale 40.06037

Total cost per litre 53.391936

Break even Analysis:-

Total Daily Demand 38209

Total monthly Demand 11,46,270

Total Yearly Demand 35,09,340

per Unit Quantity in ML on daily basis 200

Total Quantity to be produced in litres/day 7,641.8

Total Quantity to be produced in litres/month 2,29,254

Total Quantity to be produced in litres/year 27,51,048

Mark up price per litre 76.274195(=77) Rs.

Amount of Soya Milk to be produced :-

• Daily sales

• Break even sales volume = Fixed cost/ (Price per litre-

Variable cost per litre)

• Break even sell’s volume is =1, 45,894 litres of milk. The

Breakeven sale will be 1, 12, 33,838 Rs.

Total Daily Sale in INR (with Unit price 77) 5,88418.6

Total Monthly Sale in INR (with Unit price 77) 1,76,52,558

Implementation Milestone

• Control:- Depending on the sales of first year and data of sales team control

measure will be taken

S.NO. ASSISTANCE REQUIRED DATE OF IMPLEMNETATION

1 Marketing 2015

A) Research January

B) Analysis January-February

2 product promotion March

3 Channel April-May

4 transport of Soyapro may

5 Market growth and demand October

2016

6 Covering of whole Gujarat January

7 Survey and consumer demand May

8 Covering nearby states December