Creation and Aspects of a Product Plan

INTRODUCTION Origin of the Report As we ar doing sell Management, our course instructor Prof. Dr. Mijanur Rahman has instructed us to prep atomic number 18 a paper on the harvesting plan. Purpose To get a clear concept how to get under ones skin the convergence plan To acquire knowledge how to make mission, vision, commercializeing conflate etc. Limitations 1. We did non collect the current information related with our yield. 2. We had to split up lot of times to collect information about competitors, merc clearise accompaniment because enough information non getable. look for Methodology Secondary meshing www. google. com , www. ekipidia . com, Source thedailystar. net new(prenominal) Collected information from trade report, magazines, course nakedspaper. 100 CURRENT MARKET SITUATION Today the chips market is dominated by Potato Crackers, Mr. Twist, prime(a), Cheese Ball, positions, Sun cow chips and other chips. We pass off out that, there is no high grapheme chip which is fitting for children health. But we found much normal category chips. Our increase character is to a greater extent high comparative degree to the other competitors, because our main ingredients is mushroom-shaped cloud cloud which is solely bleak flavor and mouthful and similarly work against for the rout outcer.So its a big gap that we find out. Our recent chips has been received a new market challenge to cope with them. At the genuinely beginning, our sale go forth be low, profit leave alone also be little. We hope that we allow be able to get the jump mover advantage, because there is no such merchandiseion especially for children health. 1. Market Description We know, the market bureau potential clients of a merchandise or service. Bangladesh is a highly live coun undertake. The birth rate is very high . As a go forth the children rate is also very high. We atomic number 18 non producing our harvesting not nevertheless for chil dren but also for teenagers, young generation.So our total stigma market is very large. Market demands of market will also increase as much we undersurface position in our customers mind. (All this figure atomic number 18 estimated depending on class and age to flummox an idea about demand on chips on this variables) This is our target market. We want to target children as well as young people of middle and high(prenominal) class of people. We are not eliminating lower class people but first we want to make up demand for our result accordingly we will try to take our product worth and serve to all class of people. 2. harvest-feast studyThe product quality is more high comparative to the other competitors, because our main ingredients is mushroom which is totally new flavor and render and also work against for the cancer. It is adapted for children health. It is highly r separatelyed by Protein-15. 53%, Fat-20%,Saturated fat-1. 42%, Carbohidrated-2. 45%, Sugar-2. 40%, Energy-100gm, Colastrol-0%, Sodiam-. 64%, which is very much essential for specially kids and young age people. 1. 3 Price Price aims are set for launching our product for our targeted customers. 4. hoggish taxationWe want to scram 960000 of products in our first step of production. Depending on increasing demand rate, we will increase our production rate over a month. Every family, we will increase our 10% of production. We will observe the gross revenue and satisfaction levels of our customers through our gross revenue representatives. Our Product will sale only in Urban and t accept lieu flying fields of Bangladesh, thats wherefore we are not distributing and sales product in rural areas because our price level is bit high. afterwards increasing our product demand and sales, we will try to reduce our terms of production.As a result, we reduce our product price and distributed in rural areas in Bangladesh. 5. Gross margin We have a coarse competition in our market. 1s t year we want to pee-pee colossal demand by good quality ad and onward motional activities to create position in our customers mind. As a result, we judge low gross margin for 1st year, it will be just cover the icy asset. 2nd year, we will try to sale more and more and reduce the toll of goods sold. It will increase our gross margin. 1. 6 Profit We expect earning profit within 2 years.Before that we will try to cover our intractable costs and make break even points of sales. 1. 6 Distribution review Factory Warehouse Divisional warehouse Salesman Retailer Customer Our grind situated at Tongi in Gazipur. After producing our products it will store in our own warehouse Mirpur. From this warehouse products are distributed 6 divergences by our own transport and then storing these goods in divisional warehouse. Then our trained salesman distributes our products in the market to the retailer. And finally retailers sell it to the ultimate customer. 1. 7 Competitive criticism 1. 7. 1 Potato Crackers Potato Crackers is a very popular snack prepared with combination of wheat, starch together with potato. It is a light, crispy snack and less oily. It has an average food measure and is available with spicy tomato flavor. Ingredients Potato pulverise, Potato Starch, Wheat flour, Re lovelyd veggie Oil and flavorer. 1. 7. 2 Cheese Ball Cheese Ball is an extruded product made from corn and rice and coated with rich cheese powder.It is vivid in taste and whateverthing to be enjoyed all the time. Ingredients Corn, Rice, Salt, Vegetable Oil, Cheese Powder & Seasoning. 1. 7. 3 Mr. Twist Mr. Twist is especially attractive to youngsters. This potato ground snack has a certain amount of modified or immanent starch to kick the bucket it a beautiful twisty shape and fine texture. Available with tomato paprika flavor. Ingredients Potato Powder, Modified Potato starch, indigenous Potato starch, Refined Vegetable Oil and seasoning. 1. 7. 4 Me dischargeian Ch ips Meridian Chips is especially attractive to all people.Total annual sales below US$1 Million. Export percentage 1% 10% per year. 1. 7. 5 Lays Lays is the make consult for a topic of potato chip (crisps) varieties as well as the name of the corporation that founded the chip grass in 1932. Lays chips have been marketed as a division of Frito-Lay, a comp whatever owned by PepsiCo since 1965. Other brands in the Frito-Lay grouping include Fritos, Doritos, Ruffles, Cheetos, Rold Gold pretzels, and Sun Chips. 2. 00 SWOT ANALYSISSWOT compendium is an of the essence(p) tool for auditing the overall strategic position of a affair and its environment. SWOT is an abbreviation for effectivenesss, Weaknesses, Opport social unities and Threats. Opportunities and threats are external factors. For example, an opportunity could be a developing distribution rut such as the Internet, or changing consumer lifestyles that potentially increase demand for a companys products. A threat could be a new competitor in an important existing market or a technological change that makes existing products potentially obsolete. Strength Weakness pic Technological skills pic New company pic Distribution channels pic absence seizure of importer skills pic Product quality pic Unreliable product pic Value delivery mesh pic Financial problem Opportunity Threats pic Changing customer taste pic Changes in disposal authorities pic Technological advances pic Acceptance the product pic Changes in regime politics pic Competitor rate high pic Availability of raw materials pic uncompromising rules and regulation 2. 1 Strength picWithout any touch of hand the product is made because of development of technological skills. pic There are some other military force of the company is distribution channels. Our distribution channel is very strong proportion of the supplier and resellers is very strong. picThe product quality is more high comparative to the other competitors, because our main ingredients is mushroom-shaped cloud which is totally new flavor and taste and also work against for the cancer. picBecause of our good dealinghip with supplier, reseller and for the good transportation speediness our sale will be definitely increases. Our value delivery net profit is in strong position. We are having good relationships with our suppliers for a longer terminus of time. 2. 2 Weakness pic Although the company is new, it has not established a brand or images in the market place this is the weakness for the product popularity. pic Because of the new product and company importer skills are absence here thats why we cant includes any internal facilities. pic For the first time the mushroom is exit in the market thats why people cant properly reliable to the product quality. pic Financial problem is another weakness of the company like what will be the price salute and investment. pic Quality of the mushroom is not up to mark. 2. 3 Opportunity picIt s an available product but of the new version of taste and quality create a new change of the customer taste. picFor the technological changes and advances its easier to give any information and packagingal activities to know the product popularity to the people. picIf the government changes politics then it will be easy to access the product to the market. picAvailability of the raw materials is increasing day by day which is attend to produce more products. 2. 4 Threats picIf government is increase the taxes and the political issues are not favor then it will be the threats for the company. picThe product may not be accept to the people then it will be the bulky threats for the company. picThe product competitor rate is very high thats why sometimes we are facing many competing problem, which can be a threats of the company picCompany establishment rules and regulation is strict thats why sometimes to take any easy decisions are create complicated situations. version of oppor tunities and threat The usefulness of SWOT compendium is not limited to profit-seeking organizations.SWOT analysis may be used in any decision-making situation when a desired objective has been defined. If the raw materials are available to the market then the cost of the raw materials will be reduced then we can produce more product in minimum price, and if the government politics are favor then the supply of the product and the transportation cost will be reduced. These products have new taste and a new ingredient which is changes the customer taste. We have to overcome the threats. If the product is not the accepted to the peoples, then we have to increase our promotional activities to attract the peoples and create more differentiations better than our competitors. 3. 0 OBJECTIVES AND ISSUES 3. 1 Financial objectives Achieve first year total sales revenue of Tk. 48,00000, based on average price of Tk. 14 per unit. But first tercet month we cannot achieve any profit because in that time we invest lot of money for sales promotion campaigns, electronic trade channelise, provide mini pack pattern to the selected customer. Produce net profits of Tk. 9,60000 close year with a target profit margin of 20 percent on total sales. Marinating a significant research and development budget. Increasing production level each month by 1 % Investing more in culture Of mushrooms. Establish 3 Big factory for producing large amount of product 3. 2 merchandising Objectives Achieve a first year unit sales volume of 1,15,20,000 which represents a projected market share of 10 percent with one type in product line. Increase plunk for year share to 15 percent, based on sales of trey types in product line. Generate 30 percent brand sentiency within the consumer target market and 40 percent brand knowingness within the business target market by end of next year. We want to be no. 1 Chips Company in Bangladesh. After one month, we are collecting our sales review and s atisfaction level of our customers. Diversification in our product line. We want to create social value for position in customers mind. 3. 3 Issues Our new brand of chip that is Mushroom chips is completely un cognize into the existing market.So, our major issue is to establish a well-regarded brand name linked to a meaningful positioning. We will have to invest heavily in marketing to create an excellent, distinctive brand image projecting innovation, quality, and value. We also must measure awareness and resolution so that we can adjust our marketing efforts if necessary. 4. 0 MARKETING system 4. 1 Market segmentation Geographic divisions and district town side areas such as Dhaka, chittagoan, Rajshahi, Sylhet, Barishal, Khulna . Dhaka (gazipur district -town side) Demographic Age-5-12, 12-18, 18-24, 24 to others and higher class, middle class of people. Product related Regular customers Irregular Customers damaging customers 2.Target market Children Young people Peopl e Middle class and higher class urban areas people 4. 3 Positioning To children, young people, chips customers who are seeking for delicious taste with alimentation . Mushroom chips contains mushroom that gives you taste with good nutrition because it has the highest level of Protein-15. 53%, Fat-20%, Saturated fat-1. 42%, Carbohidrated-2. 45%, Sugar-2. 40%, Energy-100gm, Colastrol-0%, Sodiam-. 64% 4. 4 Differentiation Mushrooms are good sources nutrition and this is our main ingredients. Top of Form Bottom of Form 4. 5 Marketing mix Marketing mix consist of four basic things which is known as four Ps roduct, price, place, promotion under the consideration of our product (Mushroom Chips) These four Ps are specified as 4. 5. 1 Product The Mushroom chips, including all the features described in the product review constituent. The product is very healthy and a better quality compare to our competitors. Mushroom Chips (Burke) Recipe By Cooking with David Burke Serving Size 4 readin ess Time 000 Categories Amount Measure Ingredient Preparation Method 1 pound large smidgee mushrooms Or Portobello mushrooms 2 cups clarified butter OR vegetable oilCoarse salt OR cosher salt to taste Quality that we are first assure in our product. It is highly reached by Protein-15. 53%, Fat-20%,Saturated fat-1. 42%, Carbohidrated-2. 45%, Sugar-2. 40%, Energy-100gm, Colastrol-0%, Sodiam-. 64%, which is very much essential for specially kids and young age people. distributively and every demonstrate of the production is done by automatic machine. innovation is the factor that will often give a company its private-enterprise(a) edge. It is the totality of features that affect how a product looks and functions in term of customer requirements. Feature leads to the materials which are used in production for making the product. kinglike industries used Mushroom powder, Mushroom starch, and Wheat flour, Refine vegetable oil, Seasoning and Potato powder for producing the chi ps. The top instruction of the Regal Industries has decided to give a brand name to new product as Mushroom Chips. Packaging which gives an extra attractiveness to any particular product. Thats why we also design a packet for Mushroom Chips. The whole box process will be done without any kind of hand touch in an automatic machine. 4. 5. 2 Price The Regal mushroom chips will be introduced at tk. 14 wholesale and tk. 15 estimated retail price per unit. We know that the price is much higher than the other Chip present in the market but it will give a high quality.We expect to lower the price of packets within few months. Because of the first time at market the company would like to give some dis calculation to the retailers which will make them some profit. The company is also large some credit terms facilities to their wholesaler and retailers. 4. 5. 3 Promotion The management of Regal Industries has budgeted tk. 1,80,000. 00 for their advertising and promotion activities for per m onth. As a new product in the market it needs huge amount of advertising and promotion activities to tell the consumer about the product and its features. For that reason management decide to go for more fancy advertise in Television, Radio, Billboards, and Web site and in News paper.The policy makers has decide to offer different types of popular animated cartoon and super hero characters stickers and tutus with per packet of Regal Mushroom chips for Childs and purchase intensive to the wholesale and retail for sell promotion. By organizing Charity concert, Open concert, Sports tournament, truth shows etc Regal Industries would like to build a good relation whit people in near prox. 4. 5. 4 Place At the very beginning Regal Mushroom Chips will distribute to the town area of 6 divisions across the country with companies own transport system. By considering the future demand it has planned to distribute in the whole country area.For unforeseen future demand it always kept suffici ent amount of inventories in its own warehouse. 4. 6 Marketing Communication Strategy By integrate all messages in all media, we will reinforce the brand name and the main points of product differentiation. Research about media consumption patterns will help our advertising agency choose appropriate media and timing to reach prospects before and during product introduction. The agency will also coordinate public relations efforts to build the brand and support the differentiation message. To attract, retain, and motivate channel partners for a push strategy, we will use trade sales promotions and personal selling to channel partners.Until the brand has been established, our communications will encourage purchases through channel partners. Our distribution channel is quite different from other chips because our main target consumers are the upper class and upper middle class people, who are Not usually concerned about the television advertisement because they are more cautious abou t the product quality. 4. 7 Marketing Research Using research, we are identifying the specific features and benefits that our target segments value. Feedback from market tests, surveys, and focus groups will help us develop the Regal Mushroom Chips brand. We are also measuring and analyzing customers attitudes toward competing brands and products.Brand awareness research will help us pick up the effectiveness and efficiency of our messages and media. Finally, we will use customer satisfaction studies to try market reaction. 4. 8 Marketing Organization Chief marketing officeholder holds overall responsibility of all the companies marketing activities. Company has also three top level autobus for advertisement part , sales department and promotion department . And under sales manager company has half-dozen divisional sales manager . They are responsible for divisional sales increasing. Marketing Organization Abdur Rahman Chief Marketing Officer 5. 0 carry through PROGRAM Our co mpany Regal Company will be introduced in February 2011.Following are summaries of the action programs we will during the first three months to achieve our stated objective. January We will initiate a Tk. 300000 trade sales promotion campaigns to organize retailers and generate excitement for the product launch in February. We will express electronic trade show, provide mini pack sample to the selected customer. Our promotion manager is responsible for this work. February We will start an integrated print, radio and media advertisement targeting consumers. This advertisement will show our products differentiation from other competitor. Advertisements also show our products feature to the ultimate customer. Our Advertisement manager is responsible for those works.March As the multimedia system campaigns continue, we will add consumers sales promotion techniques such as giving scratch card and lottery etc. Our sales manager is responsible for this type of sales increasing techniqu es. 6. 0 FINANCIALS PROJECTIONS In this section we make expected budget of sales and cost monthly and yearly. We count breakeven point unit sales. We also present our expected sales revenue and profit. Our product per unit cost is 13. 5 Tk. And wholesale price is 14 Tk. And Maximum retail price is 15 Tk. Expected Sales calculate Division Monthly Yearly unit toon Unit Cartoon Dhaka 5,00,000 5,000 60,00,000 60,000 Chittagong 2,00,000 2,000 24,00,000 24,000 Barisal 70,000 700 8,40,000 8,400 Sylet 80,000 800 9,60,000 9,600 Rajshai 50,000 500 6,00,000 6,000 Khulna 60,000 600 7,20,000 7,200 Total 9,60,000 1,15,20,000 Expected cost Budget event of Cost Monthly(TK) Yearly(Tk. ) Variable 1,10,40,000 13,24,80,000 Fixed 20,00,000 2,40,00,000 Total 1,30,40,000 15,64,80,000 Per Unit Cost Per unit Cost = (Fixed cost + Variable cost) Unit Production 2, 40, 00,000 + 13, 24, and 80,000) = 1, 15, 20,000 = 13. 5 Tk. Break-even Unit Sales (Yearly) Per Unit Sales 14 Tk. Per Unit Var iable Cost 11. 5Tk Per Unit Contribution 2. 5Tk. Fixed expense Now, B E S in Unit = Per Unit Contribution 2, 40, 00,000 = 2. 5 = 96, 00,000 unit. Expected gross (Yearly) Sales (1, 15, 20,000* 14) 16, 12, 80,000 Variable Cost 13, 24, 80,000 gross 2, 88, 00,000 Expected Profit (Yearly) Revenue 2, 88, 00,000 -) Fixed expense 2, 40, 00,000 Profit 48, 00,000 7. 0 IMPLEMENTATION CONTROLS The witnesslerling process In the control Process, we will compare our total result with the expected things that we are mentioned. If there is mistakes then take necessary steps to control the overall process. There will be two way of controlling. iodine is operational control and second one is strategic control. Operational control If any changes occurred to our production process, then it will be done by operational control. Strategic control If any changes occurred into strategic plan than it will be done by strategic control.Market Audit We will pack a market audit or researcher to evaluate our ma rketing plan and give advices how to improve in operational control, strategic plan, others plans. executing Plan The following identifies the key activities that are critical to our marketing plan. It is important to accomplish each one on time and on budget. Online advertising, which cost BDT 50,000. Separate rack in shopping malls and the departmental stores, which costs BDT 200,000. Other advertising costs BDT 10,00,000. Event sponsorship, which costs BDT 300,000 References 1. http//trade. coa. gov. tw/showProduct. do? isTemp=false&rid=2465&lang=e&showMenu=true 2. http//www. recipesource. com/fgv/vegetables/mushrooms/00/rec0053. html 3. ttp//www. malaysiabest. net/2006/03/06/snacks-mushroom-chips/ 4. http//ihor5. freeyellow. com/mushchip. htmlpicpicpic 5. http//banglapedia. search. com. bd/HT/M_0416. htm 6. http//www. mushroomlovers. com/Health. htm pic Md. saley uddin , Reasonal Sales manager, Chittagong Ms. Sabrina Azam, Reasonal Sales manager, Sylet. Mr. Rafique Khan, R easonal sales manager, Rajshahi. Md. Jahidul Islam, Reasonal Sales manager, Khulna Ms. Sayla Zaman , Reasonal Sales manager, Barisal. Md. Azad, Reasonal Sales manager. Dhaka Ms. Bristi Rani publicise Manager Md. ,Hasan Mahamud,Promotion Manager Ms. Nancy Christina Sales manager