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A Marketing Plan on Nutri-Jam

A Product of Nutro Consumer Products Ltd.

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Course Instructor: Khandoker Mahmudur Rahman,

Assistant Professor,

School of Business & Economics,

UIU.

Prepared By:

Name ID

Sadman Shoumik Ahmed 112 162 087

Md. Ismile Hossain 112 151 081

Samia Tamrin 113 141 003

Md. Muzahid Baksh 112 162 023

Mahmuda Haque 112 162 024

Assignment Type: Marketing plan

Topic of assignment: Processed fruit

Course Title: Marketing Management

Course Code: MKT – 601

Type of course: Fixed Core

Credits: 3

Section: A

Class Room: 306

Trimester: Summer 2016

Submission Date: 27/08/2016

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Letter of Transmittal

27th August, 2016

Khandoker Mahmudur Rahman,

Assistant Professor,

School of Business & Economics,

United International University.

Subject: Submission of ‘A Marketing Plan on Nutri-Jam.’

Dear Sir,

This is the assignment titled ‘A Marketing Plan on Nutri-Jam’ which is part of the syllabus of this

course.

My group members and I have written on the topic that was assigned to us. The sector on which we

had to focus was ‘processed fruit’ and hence the product is a fruit jam. This marketing plan consists

of the details contained in any typical real life marketing plan. All the necessary things to consider

before launching a product line is given here. The report is divided into 6 parts namely, executive

summary, market analysis, customer analysis, marketing strategy, marketing promotion and

conclusion.

I appreciate your guidance and hope this report will be accepted. I would like to thank you for being

our course teacher.

Yours faithfully,

Sadman Shoumik Ahmed.

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Acknowledgement

Successful completion of any report requires support from various people and I was privileged to

have that support and coordination in every aspect from my teacher, group mates and friends.

First of all I would like to thank Almighty Allah for keeping me in good health always. Then I would

like to express my gratitude to my teacher, Khandoker Mahmudur Rahman, for his candid

encouragement as well as guidance in preparing this report. I would like to express my deep sense of

thankfulness to my group members, Md. Ismile Hossain, Samia Tamrin, Md. Muzahid Baksh and

Mahmuda Haque. Without their support this report would have been incomplete.

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Table of Contents

Letter of Transmittal .............................................................................................................. 3

Acknowledgement ................................................................................................................ 4

Table of Contents .................................................................................................................. 5

1.0 – Executive Summary ...................................................................................................... 7

2.0 – Market Analysis ............................................................................................................ 9

2.1 – Description .............................................................................................................. 10

2.2 – Competitor Analysis ................................................................................................ 10

2.2.1 – Market Position ................................................................................................. 11

2.2.2 – Market Share ..................................................................................................... 11

2.2.3 – Strengths ........................................................................................................... 12

2.2.4 – Weaknesses ...................................................................................................... 13

2.3 – SWOT analysis ......................................................................................................... 14

2.4 – PEST analysis ........................................................................................................... 15

2.5 – Growth Forecast ...................................................................................................... 16

2.6 – Customer Insight ..................................................................................................... 16

2.7 – Opportunity Statement ............................................................................................ 16

3.0 – Customer analysis....................................................................................................... 18

3.1 – Segment .................................................................................................................. 19

3.1.1 – Number of members in the segment ................................................................. 19

3.1.2 – Estimated percentage of sales ........................................................................... 19

3.1.3 – What they want.................................................................................................. 20

3.1.4 – Value drivers .................................................................................................... 20

3.1.5 – Decision process ............................................................................................... 21

3.1.6 – How they use it .................................................................................................. 21

3.1.7 – Support requirements ....................................................................................... 24

3.1.8 – Price Sensitivity ................................................................................................. 24

3.1.9 – How to reach them ............................................................................................ 25

3.2 – Ideal customer ......................................................................................................... 25

4.0 – Marketing Strategy ..................................................................................................... 27

4.1 – Product .................................................................................................................... 28

4.2 – Price ........................................................................................................................ 29

4.3 – Place ....................................................................................................................... 30

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4.4 – Personality .............................................................................................................. 30

4.5 – Unique value proposition ........................................................................................ 30

4.6 – Story ........................................................................................................................ 30

4.7 – Customer experience .............................................................................................. 31

4.8 – Customer service .................................................................................................... 31

4.9 – Market entry plan .................................................................................................... 31

5.0 – Marketing Promotion .................................................................................................. 32

5.1 – Direct Marketing ..................................................................................................... 33

5.2 – Internet Marketing .................................................................................................. 33

5.3 – Public Relations ....................................................................................................... 34

5.4 – Advertising ............................................................................................................. 35

5.5 – Budget ..................................................................................................................... 35

5.6 – Action Plan .............................................................................................................. 36

5.7 – Projected outcomes ................................................................................................. 37

6.0 – Conclusion .................................................................................................................. 38

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1.0 – Executive Summary

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Nutro Consumer Products Ltd. (NCP) is a well-established firm in the FMCG sector supplying biscuits,

noodles and other readymade food items. They have gained a good brand reputation and now wish

to invest in a product line of jams. The brand loyalty will help us to sell to our existing customers who

have experienced our products before. At first, we will launch 2 flavors, namely, banana and mango.

Jam is a solid gel made from fruit pulp, juice of a single fruit or combination of fruits. These products

are applied to some snacks or bread. They are also used in making certain desserts. They enjoy

substantial shelf life and thus can be made available round the year.

We aim to target the population of 10 to 40 year old people. Jams are sweet products and hence

people after 40 may be concerned about their blood sugar levels. We will educate the literate

population about the health benefits of our products. The fruits used will be pesticide and formalin

free, the ingredients will be procured at source from the farmers. The fruits have to available all

season to ensure adequate supply and efficient distribution.

We want to launch a product that will take all the consumers by surprise. The potential consumers

will notice a difference from the very second they start watching the advertisements. We will try to

innovate in terms of the product itself, the packaging and also low prices that will put the competitors

under pressure.

The following sections contain information relating to crucial marketing decisions pertaining to

marketing mix, competitor strategy as well the overall company goals. The marketing mix is a set of

tools and techniques enterprises use to achieve their marketing objectives in their target market.

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2.0 – Market Analysis

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2.1 – Description

We want to be the first company in Bangladesh to market fruit jam products with natural ingredients

procured from the source. Our value proposition is to provide nutritious food to the health conscious

consumers in Bangladesh. At present, we will look to sell our products to the mass market comprising

of both young and adult people. The flavoring will be natural. Our products will be 100% pure. The

fruits used will be pesticide and formalin free, the ingredients will be procured at source from the

farmers. The fruits have to available all season to ensure supply and distribution. Currently the

processed fruit market is saturated.

Overall profit estimate – NCP is set to incur a loss for the first year on this particular product.

However, after few years it will jump back to making profits. There will be lots of investment involved

due to heavy marketing expenditure in the first year. In the subsequent years, though, profits will be

earned.

We aim to target the urban middle class population of 6 to 40 year old people. Jams are sweet

products and hence people after 40 may be concerned about their blood sugar levels. The above 40

people may not consumer jam and hence we have left out of the equation. Our customers will mainly

be nuclear families rather than bachelors. Also the joint families. Urban middle class are the largest

part of the Bangladesh population. A research revealed that urban rich people are more likely to buy

imported and expensive products. However urban middle class people tend to buy affordable and

decent quality products. The reason why the firm will target urban middle class families is because

they constitute the bulk of the population. The annual revenue in the fruit jam sector is around 450

crore taka.

2.2 – Competitor Analysis

We have direct as well as indirect competitors. There are many international brands as well, but we

won’t be competing against them as they target the rich segment of the population. The few local

brands mentioned offer low cost products and they target the same customers that we will do.

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2.2.1 – Market Position

The following brands are our current competitors. They are ranked according to their market share

(share of revenue):-

Competitors Annual Revenue (in

crores of taka) Ranking

Pran 294.53 1

Ahmed Foods 98.69 2

BD Food 47.30 3

Ruchi (Square) 14.31 4

Shezan (Sajeeb Group) 9.50 5

Source: http://www.assignmentplan.com/

2.2.2 – Market Share

Competitors/Products Annual Revenue (in

crores of taka) Market Share

Pran 294.53 65.45%

Ahmed Foods 98.69 21.93%

BD Food 47.30 10.51%

Ruchi (Square) 14.31 3.18%

Shezan (Sajeeb Group) 9.50 2.11%

Source: http://www.assignmentplan.com/

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2.2.3 – Strengths

The strengths of our competitors pose a threat to our firm. The strengths of each firm are outlined

below:-

Pran

Risk pooling factor due to numerous products

Large organization

Superior source of finance

Better control over sources and raw material

Vast distribution network

Good reputation

Ahmed Foods

Standardized products following proper practices

Diabetic friendly jams approved by BIRDEM

Loyal customer base due to early market entry

BD Food

Strong marketing network

Strong monitoring system

Sales plan and implementation

66%

22%

7%3%2%

MARKET SHARE

Pran Ahmed Foods BD Foods Ruchi (Square) Shezan

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Proper distribution system

Good marketing information system

Ruchi (Square)

Enormous loyal customer base

High Capital

Strong brand image

Shezan (Sajeeb Group)

International brand

Largest farms

ISO certified

Very Good Financial Backup

2.2.4 – Weaknesses

The weaknesses of our competitors is our opportunity for our firm. If we can pinpoint their

weaknesses, then we will be able to capitalize on them. The weaknesses of each firm are outlined

below:-

Pran

Unequal promotions strategy

Lack of good control

A lot of distance and a huge amount of transport cost

Ahmed Food

Small marketing budget

Doesn’t communicate the service/value to customer

Inadequate cash resource to introduce new brands

BD Foods

Insufficient media promotion

Insufficient product penetration

Inadequate product delivery as per market demand

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High price of the raw material

Packaging material bought from other company

Ruchi (Square)

Fruit jam of this company hasn’t gained much popularity

Less management time is given to jam products; more time is given to Radhuni products

Shezan (Sajeeb Group)

Weak Advertisement

Same Packaging for decades

No line extension in existing brands

2.3 – SWOT analysis

Strengths

Experienced Marketing team – The employees of the marketing department are quite

experienced as they have launched many successful products in the past.

Established distribution network – Our distribution extends well beyond the city boundaries

to the suburban areas such as Gazipur, Narayanganj, Savar, etc.

World class production facilities – Our machinery is imported from European countries and

helps us to maintain quality and consistency of the products.

Economies of Scale – Since we are targeting a large number of people, we reduce our unit costs.

Cost leadership – We want to pass our lower costs onto the customers for their consumption.

Financial and cash resource – We have accumulated enough money from our cash cow brands.

Weaknesses

Poor record on innovation and new ideas – Our past products are mainstream and they do not

reflect.

Less choice of flavors – Our flavors will be limited at the initial launch. We won’t be launching

the mixed fruit flavor which is more popular among certain groups of consumers.

Opportunities

Brand reputation – Our reputation is excellent in the market after years of selling different types

of products.

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Strong base of loyal customers – Our customers have learnt to trust our products.

Potential to export in the future – We may be able to expand our footprint in the international

market after successful domestic performance.

Threats

Infrastructural weakness of roads – Due to the weak transportation systems, our distribution

may be affected.

Already saturated market of jams – It may be difficult to undercut the competitors.

Substitutes – We must do heavy marketing in order to discourage consumption of the substitute

products. Pran is the most popular household brands and Ahmed is one of the emerging brands.

New market entrants – There are no barriers to entry and new firms can launch easily.

Increased competition – There are a plethora of competitors.

People closer to the age of 40 may not consume products due to diabetic concerns –

Competitors have diabetic flavors, so they have the upper hand to target the ones who are above

40 years.

2.4 – PEST analysis

Political

There is very little intervention in the market by the government. In fact, the government is very

helpful as it offers cash incentives for exporting the jam products abroad. The importing countries

also enforce low tariffs so it enhances the potential for further growth in exports.

Economic

Due to fall in interest rates, it will be much easier to borrow and invest. The economic growth of

Bangladesh is also a plus point as there are plans for further expansion if the venture succeeds.

Social

An increasing number of people are choosing to have a career and therefore it becomes difficult for

them to prepare breakfast meals. Jam is a quick way to eat breakfast and save time. People have also

become health conscious and they avoid oily breakfast such as parathas. The number of women

entering the workforce is increasing every year and hence they would like to make quick breakfast

for their children in the morning.

Technological

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This can be problematic as lot of investment is required to set up the manufacturing process of jams.

But the positive side is that the firm has lot of cash resources to take the risks.

2.5 – Growth Forecast

Since the start of the last decade, Bangladesh has consistently enjoyed GDP growth rates of 5-6%

annually. The per capita income of our country has also seen modest growth. The per capita income

in 2016 has increased by 11.39% to $1,466 from the previous year’s figure of $1,316. The country is

moving towards becoming a middle income nation. Due to the increasing income level of the middle

class group of the country, we expect them to contribute to our increased sales. Moreover, the rural

population is projected to decline due to economic growth. In 2025, it is expected that rural

population should decrease by around 45%. If the rural population declines, then it means that they

will gradually enter the urban middle class. This means our new product will continue to enjoy

increased demand from them. Since the middle class is our target customer, we believe that they will

make a difference to our company’s revenue.

2.6 – Customer Insight

Customers prefer healthy and well tasting jams with low sugar content. High sugar content can

distort the taste of the actual fruit. Our R&D team will focus more on adding fruit content to enhance

the taste of the jams. Most of the jam producers just add too much sugar for taste, which is harmful

for the consumers. Due to widespread use of the internet and other information mediums, people are

becoming more health conscious and they want formalin free and delicious fruit products. Customers

will easily be attracted towards our products due to pure products.

2.7 – Opportunity Statement

There is a growing young population in Bangladesh as the birth rate is 21.12 births per 1000 people

and also has one of the highest fertility rates too. This means that we can easily target the customers

from a very young age and teach them to consume our products till adulthood. Although the market

is saturated, there is still a scope for growth in this sector. With our experience, we can easily

establish large scale distribution to achieve low costs and still make a profit. We will follow the cost

leadership strategy. The following factors will drive the demand for our products:-

1. Changing age profile

A relatively larger share of young population which has the ability to spend on processed foods.

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2. Increase in income

The middle and upper middle income groups growing at a faster rate than in developed countries

resulting in higher spending of food.

3. Organized retail outlets

There are many retail superstores in our country now such as Agora, Meena Bazaar, Swapno, etc.

They provide the much needed forward linkages.

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3.0 – Customer analysis

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3.1 – Segment

As mentioned earlier, our segment is the urban middle class population in Bangladesh.

Geographically, these people live in the major cities such as Dhaka, Chittagong, Khulna, Barisal,

Sylhet, Rangpur, Rajshahi, Narayanganj, Gazipur and Comilla. This is the best segment we can target

as it is more likely to consume our products. The lower class people usually do not prefer jams and

the rich usually prefer jams of foreign brands.

3.1.1 – Number of members in the segment

Current Population 163,185,549

Percentage of urban population 34.20%

Number of people in urban areas 55,809,458

Percentage of middle class population 21.53%

Number of people in urban middle class segment 12,015,776

Number of families in the urban middle class segment* 3,003,944

Source: http://www.worldometers.info/

*Note – If a family consists of 4 members, then there will be at least 3,003,944 families in the target market.

There are approximately 12 million people in the segment that we are targeting. This number will

gradually increase every year and it will definitely increase our revenue from jams.

3.1.2 – Estimated percentage of sales

Since the total revenue of all the competitors is around 450 crore taka, we will be able to capture a

large share of the market through our market penetration pricing scheme. We will slowly get a large

share of the market, but first we will try to sell as much as the competitor with the lowest rank. Shezan

currently has the lowest market share of 2.11%. Our aim is to capture a market share of at least 2.11%

in the first year. Then in the second year onwards we will gradually try to sell as much as the next

closest competitor.

Number of families in the urban middle class segment 3,003,944

Number of units forecasted to be sold in the 1st year* 63,383

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*Note – It’s assumed that if we aim to capture a market share of 2.11%, then we should be able to sell

at least 63,383 (3,003,944 * 2.11%) units.

3.1.3 – What they want

Our customers want nutritious and delicious breakfasts, and we will give them exactly that. Jams are

a common feature in breakfast menus, and it is definitely with good reason. It provides you instant

energy to kick starts your day, and is said to be very good for the stomach. Most natural home

remedies in Bangladesh circling around an upset stomach, call for using bananas as a remedy along

with mango. Our aim is to ensure that our jam contains more natural ingredients rather than taste

enhancing chemicals. Consumers will be able to feel the real taste of the fruits through the flavor of

jams. We want to contribute to our consumers’ demands of a healthier lifestyles by using 100% pure

products.

Mango

Mangos contain over 20 different vitamins and minerals, helping to make them a superfood. In

addition to sumptuous tropical flavor, mangos deliver a host of nutrients and make healthy eating a

delightful sensory experience. Each serving of mango is fat free, sodium free and cholesterol free.

Banana

A single piece of banana is said to contain only 90 calories, which also makes it a great (and healthy)

snack to munch on rather than sugar loaded goodies or deep-fried treats & mango also contain source

of vitamin A, Vitamin C and minerals.

3.1.4 – Value drivers

1. Low inventory

By procuring the raw materials as and when there is demand, we will minimize the inventory costs

associated with such huge amount of materials. We will procure the fruits directly from the farmers.

We will set up processing centers adjacent to the farmlands. We will pass this cost advantage to our

customers by providing them with low prices. The only time we will need to store materials is during

the winter. During winter, mangoes have to be stored as they are available only during the summer

season. Storing mangoes are very cheap. On the other hand, bananas are available during the entire

year, hence no storage will be required.

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2. Procurement Monitoring

By collaborating closely with the farmers, we will make sure that they do not use harmful chemicals

such as pesticides. We will provide them the tools and advice to grow crops in an efficient way. The

fruits will be washed, processed and transported to the main factory before start of jam production.

And since we will control the supply chain, there is no chance of formalin application on the fruits.

Thus, we will provide healthy fruit jams which are 100% pure.

3. Outsourced Packaging

The package will be outsourced from a plastic manufacturer through special orders. This will be done

as we can’t focus on producing the packaging. The plastic manufacturer will be much better and

efficient at it. The package will be innovative as it will be plastic. We are trying to make it as user

friendly as possible. We can save money as the manufacturer will produce it at a cheaper rate than

us.

3.1.5 – Decision process

1. Need recognition – The ideal customer will realize the need for the jam products.

2. Information Search – The customer may look for information from advertisements. He or she

may also look for it from the internet via Facebook page or website.

3. Evaluation of alternatives – The customer may consider different brands. We have to convince

them to buy our product.

4. Purchase decision – This is the actual purchase made by targeted customer.

5. Post-Purchase Behavior – Based on the satisfaction, the consumer will have a clear

understanding whether he or she likes the product. Based on this he or she may or may not

engage in repeat purchase.

3.1.6 – How they use it

Everybody loves jam, but sometimes you get sick of our usual morning routine of spreading jam on

bread. We want something new and fun to spice up our jam-filled life. The customers can use these

five original ways to consume jam and they won’t be disappointed.

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1. Jamming Grilled Cheese

A grilled cheese is a go-to classic for a simple, pick-me-up lunch. But what if you could take this grilled

cheese to the next level? Just add a few spoons of your favorite jam on top of your steaming grilled

cheese.

2. Strawberry and Jam Milkshake

There is nothing like a nice, cold milkshake. Amp up a strawberry milkshake by adding a few

spoons of jam to your blender as a way to enhance the fruity flavor.

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3. Jam-Stuffed French toast

Reinvigorate your plain French toast recipe by stuffing it. Mix cream cheese and your favorite jam

together to create the filling for your oozy French toast. Then, take this fruity French toast to the

next level by topping it with fresh fruit.

4. Jam-Filled Pop tarts

Once you make homemade Pop-Tarts you will never go back to store-bought. You can make these

childhood treats a little more nutritious by using homemade jam as the filling.

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3.1.7 – Support requirements

A customer complaint cell must be opened for the consumers of our product. They can file complaints

and their reviews of their tastes and preferences they might want to have in the future. It will be a

great support in establishing relationship with the targeted customers.

1. Warehouse with raw materials

2. Factory processing and packaging

3. Storage in refrigeration

4. Nationwide distribution through lorries

With the above tasks many employees are needed to handle the process.

3.1.8 – Price Sensitivity

Out of the entire middle class urban segment, only 20% of the people are involved in doing business.

That means a large chunk of the segment, i.e., 80% of them make a living by doing jobs. Thus, we can

easily say that the majority of the customers are price sensitive. The reason of the price sensitivity is

due their fixed nature of income and tendency of saving. Our aim is to offer such a pricing to

consumers that not only is perceived as valuable to customers but is also within the close range of

competitors’ prices. We will exploit the sensory stimuli of people to make them understand that our

products are not expensive compared to the competitors’ products. The concept of just noticeable

difference (J.N.D.) will be used here. Just noticeable difference refers to the minimal difference that

can be detected between two similar stimuli. The difference between the two stimuli is not an

absolute amount, but rather it is an amount relative to the intensity of the first stimulus. The stimuli

which are talking about here is the price. The JND for jams could be around 10 -15 taka. So if our

product price is more than competitors’ price by only 5 taka, then consumers may not notice it.

Competitors Quantity (in grams) Price (in taka)

Pran 500 120

Ahmed 500 125

Ruchi 480 120

BD Foods 500 120

Shezan 440 95

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3.1.9 – How to reach them

Distribution is how you will bring your products or services to your customers; distribution

comprises wholesalers, retailers, multilevel marketers, and sales representatives. NCP provides

significant effort in planning an effective marketing channel as it is a major decision point to develop

an overall marketing strategy. For NCP, distribution accounts for about 25% of their product’s retail

price of which 25% is incurred for transportation, 40% for inventory carrying, and 35% for order

processing and customer service. NCP owns heavy trucks by which they distribute products to the

depots. Distributors through their own vehicles send products to the wholesalers without charging

extra fare. At present NCP has 160 distributors all over the country. Distributors are selected city

wise i.e. one distributor per city. For example, a distributor for Dhaka, another for Chittagong and so

on. NCP provides commission to its dealers based on their sales. Goods are supplied all over the

country at a uniform price. The following figure shows the distribution pattern of NCP:-

The company’s strategy is to make the products available all over the country and to inform the

consumers through aggressive campaign.

3.2 – Ideal customer

We have already mentioned that our target customers will be people within the age group of 6-40

year olds. But here, a distinction must be made that our target audience will be different. For instance,

since the customers will be mainly children, the audience must actually include the parents. So we

can that the target audience is a bigger pie consisting of the target customers as well. The children

may be the primary consumers of our jam, but the parents have to be targeted as they will be the

purchasers of our product. Hence, our ideal customer will be the parent. On a side note, bachelors

will not be included as they hardly purchase jam for themselves to consume alone. Products like jams

are usually bought for the collective group, i.e., the household. Another issue is that people within the

range of 6-40 years are most likely to consume the jam. Even those who are close to their forties tend

to consume it as they do not already have diabetes. The people older than 40 years are less likely to

consume jam but they are part of the target audience. The reason being that a parent older than 40

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will definitely think of purchasing the product for their offspring and other family members. Thus in

this case, our ideal customer may also be part of the target audience.

Target Customers – These include, children, teenagers and adults under or at 40 years.

Target Audience – All the target customers plus parents who may be above 40 years.

Our ideal customer will possess certain characteristics such as:-

1) He or she is definitely a married person with children.

2) He or she has a minimum level of tertiary education (Bachelor’s degree).

3) He is a white collar worker.

4) He or she must be in the urban middle class segment.

5) He or she may be a working parent.

6) He or she has a tight schedule and hence prefers readymade breakfasts like jam.

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4.0 – Marketing Strategy

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The ingredients that combine to capture and promote a brand or product’s unique selling points,

those that differentiate it from its competitors.

Our brand always try to position their product through image differentiation, because related

marketing, and product differentiation. Nutri-Jam will use logo and short advertisement so that

people can consistently see the advertisement so the product will occupy a clear, distinctive, and

desirable place in the mind of the consumer relative to competitors’ product. Our brand will use USP

(Unique Selling Proposition) for their product. To do brand differences that make a better

differentiation or that has the potential to create company costs as well as customer benefits. A

difference is worth establishing to the extent that it satisfies the following criteria:-

Important

Distinctive

Superior

Communicable

Affordable and Profitable

4.1 – Product

The first of the Four Ps of marketing is product. A product can be a tangible good or service that

fulfills the need of consumers. NCP is a Bangladeshi company serving Bangladesh over three decades

with their different types of products. This time NCP is launching the delicious Nutri-Jam for the

customers of Bangladesh. The company added different flavors to their new products and they are

really very beautiful to look at. NCP tried to put some new things this time in their product.

Product Variety – Initially, we will launch 2 flavors, namely, banana and mango. Our banana jam will

be a first in the market. No jam producer has ever introduced this flavor in the Bangladeshi market.

Quality – It is also defined as fitness for purpose. Quality is a perceptual, conditional, and somewhat

subjective attribute and may be understood differently by different people. The question will be

whether the customer will be satisfied with the product. An important question is whether it is

serving their purpose or not. We have taken the customers’ need for nutrition and healthy food as a

serious concern. The jam will contain relatively less sugar than our competitors’ jams and it will have

a more fruity taste. The fruits procured to them will be pesticide and formalin free. We will focus on

natural ingredients.

Brand Name – The name of the brand is Nutri-Jam.

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Packaging – We want to introduce an innovative form of packaging which no competitor has ever

come up with. The following features will be part of the packaging:-

1. The package of the bottle will be shaped like a ketchup bottle. This way the jam can be stored

easily. It takes up much lesser space than a jar. It can stored in various places.

2. The bottle will have a tube at the head of the bottle. This tube will help the users to pour the jam

on the bread or other foods. Customers don’t have to go through the hassle of using butter spoons

to ‘pick and apply’ the jam.

3. Jams are usually stored in transparent glass jars. But we want to change that. The bottle used for

the jam will be made of plastic materials. The glass material makes the jam stored in jars very

heavy. Hence, the plastic bottling system will make them much lighter and easier to carry. It is

also very safe as it won’t break if it slips from the hands. The plastic will be transparent so that

the quantity of jam can be seen.

Sizes – The product will be of single size. Each bottle will hold around 500 grams of jam.

Services – We are setting up a complaint hotline through which the customers can voice their

dissatisfaction. But this is not only for voicing complaints, as we want feedback about their

satisfaction about using the product too. This information will be very important for our marketing

research team as they can extract vital insights to improve the existing products or launch future

products.

4.2 – Price

Once a concrete understanding of the product offering is established we can start making some

pricing decisions. Price determinations will impact profit margins, supply, demand and marketing

strategy. The pricing strategy of this product has to be the competitive pricing strategy. Actually the

individual jam and sophisticated jam carries the highest price. And in case of the packets and in

bundles there are some discounts that will attract the customer’s attention. The pricing should not

be any higher than the regular brand exists in the market. We will use the market penetration pricing

scheme to attract customers and capture the market share. We will use this low pricing scheme to

undercut competitors and make the customers comprehend that our product has value. As

mentioned earlier, the JND for jams is 10 – 15 taka for a jam of 500 grams. Hence, we will use this to

our advantage and set a price of taka 110 for each unit. So it is around 10 taka less than the average

competitors’ price of taka 120. Customers will definitely notice this and it may motivate them to try

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our new product. We didn’t decrease the price any further as it would erode our profit margins

severely.

4.3 – Place

Often we will hear marketers saying that marketing is about putting the right product, at the right

price, at the right place, at the right time. It’s critical then, to evaluate what the ideal locations are to

convert potential clients into actual clients. We will primarily use our existing distributors for

distributing our new product Nutri-Jam then; we will make some new channels and assign some

distributors to promote our product to all over the country.

We are using departmental stores in the shopping malls, offices and crowded areas so that people

can purchase the product easily when they like to consume. We will make our consumer by value

delivery network. Nutri-Jam should be supplied to the general stores, super stores, and mega stores.

4.4 – Personality

As we will launch Banana Jam at first, so its taste will be unique and very tasty. So our primary goal

is to preserve the original fresh flavor of the fruit itself. So our product personality is relating with

those customer who always prefer fresh food as well as natural taste.

4.5 – Unique value proposition

We have made a new value proposition statement for our new product (Nutri-Jam). The value

proposition statement is given bellow:

“You need a pure fruit, when you are”

The reason behind selecting this value proposition statement is we are emphasizing our product

quality & at the same time we are serving the customer need.

4.6 – Story

Stories are powerful – they teach and inspire us to take action. A story has the power to provide

contextual simulation (knowledge about how to act) as well as inspiration (motivation to act). We

can use Challenge Plot, where we can show the target customer about our production process from

plucking the Banana from garden and step by step into through manufacturing plant to ultimate

product. We can ensure our customer that we are taking fresh Banana’s from garden and are not

using any artificial flavor to increase the taste. So as we committed, we are going to use fresh foods

and there will be no added flavor which will enhance customer trust to our product.

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4.7 – Customer experience

The firm’s relationship management is the overall process of building and maintaining profitable

customer relationships by delivering superior customer value and satisfaction. The aim of customer

relationship management is to produce high customer equity, the total of it combined.

Customer lifetime values of all of the company’s customers. The key to building lasting relationships

is the creation of superior customer value and satisfaction.

4.8 – Customer service

The customer is the center of all our marketing efforts. Our company is very customer centric and we

have strived to operate with that mindset. It would seem very ironic for a company to not provide

adequate after sales services for the customers towards whom so much time and money is spent. We

will provide a toll free number where the customers can give their feedback if they are dissatisfied

with the product. The number will be provided on the packaging.

4.9 – Market entry plan

According to our brand target market we are dealing with health conscious people. We did a survey

out of them. We asked them to mention what is the first thing that comes out of their mind when they

hear the word fruit. There responds were totally positive towards fruit. The most of the complaints

were about preservatives, color (doesn’t matter if it’s additive or not) and sugar. We asked about

fruit; they love fruit. Then we asked what if they get the actual fruit jam or jelly without any additives

or sugar and obviously no preservative and then they responded well. Now, when we see my target

market they seem to be the hardest one to get but if I can make a position in their mind that Nutri-

Jam is totally natural through its admiring tag line “filled with nature” then the product will sell by

itself to make that happen we are totally relying on the promotion. Our number one positioning tool

is its 100% sugar free then we are promising there will be no sorts of color and preservatives. A

proper packaging gives a positive vibe in the buyers mind; he/she could go for the good looking item,

so we are concern about the packaging. We will give a smart exclusive look to our product. Each flavor

will have their own exclusive look.

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5.0 – Marketing Promotion

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Promotion refers to raising customer awareness of a product or brand, generating sales, and creating

brand loyalty. It is one of the four basic elements of the market mix, which includes the four P's: price,

product, promotion, and place.

Promotion is also defined as one of five pieces in the promotional mix or promotional plan. These

are personal selling, advertising, sales promotion, direct marketing, and publicity. A promotional mix

specifies how much attention to pay to each of the five factors, and how much money to budget. Some

pieces of the promotional mix are discussed below.

5.1 – Direct Marketing

We use various ways to do direct marketing like TV commercial, catalogue, magazine, kiosk and

newspaper. Now a days every one like to see TV channels, we can show or tell about the product

through TV channels. Then we can make a catalogue about our product and which will be given to

our customer inside the newspaper. We can provide our catalogue to customer in front of shopping

malls, fast food, and restaurant so that they can purchase not immediately but at least they have

information so that they can buy.

Targeted TV – We use channel to let the customer know about our product quality, feature, taste

that means overall idea about the product. Though our target audience are parents so our add

will happen in the break of serial in the most renowned channel like ATN Bangla, Channel I, NTV

etc.

Newspapers – We can use the most popular Bengali newspaper like Prothom Alo and The Daily

star to convey our product to the customer because in our country these two newspaper is widely

used.

Catalog distribution – We can design catalogue by which our customer can have knowledge

about our product and these catalogue have given to our customer though inside of the

newspaper.

Outdoor advertising – Kiosks can be set up to make customers aware of the products. We hire

individuals and set them in front of shopping malls, schools, restaurants, so that they give stickers

or catalogs directly to the customer hands.

5.2 – Internet Marketing

The way in which digital marketing has developed since the 1990s and 2000s has changed the way

brands and businesses utilize technology and digital marketing for their marketing. Digital marketing

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campaigns are becoming more prevalent, as digital platforms are increasingly incorporated into

marketing plans, and as people use digital devices instead of going to physical shops. Our target

customers are young and we can use technology to win them over. Younger peoples’ smart device

usage is increasing and we can easily target those using social media.

Nowadays one of the most flexible ways to market on the internet is social media marketing where

we use two channels, one is most renowned channel which Facebook and another is YouTube. On top

of that we must have a designed company web page from where customer can get information about

the product.

Facebook – We can make a page about our product in Facebook where customer can get updated

information in a continuous basis. Moreover we demonstrate the product quality, benefits which

attract our potential customer. In the page we have option to customer question, feedback about

the product. By arranging of these thing we can develop new ideas when we face any challenges.

You Tube – We can use YouTube for direct marketing because in this recent time YouTube is

most widely used social media. So we give short video, and also the same add which is already in

the TV channels. It will help us to get connected with customer with their problem and changing

demand. There are some people who are always on YouTube rather than TV channels, they are

our potential customer, and for those people we ensure various short video, and same TV ads

through you tube.

5.3 – Public Relations

We aim to enhance our public image by using press releases and regular news articles. We will

educate the literate population about the health benefits of our products. As mentioned earlier, we

want to use the health proposition to target and win the consumers’ hearts. We will use some unique

tools for our public relations campaign. During our product launch we aim to hold a press conference

to educate the public about our new product. Eminent doctors will be present along with the

company high ups to sow the conviction in the consumers’ minds that the product is indeed providing

nutritional value. We will also publish news articles describing the nutritional benefits of our jam

product, so that people develop a regular habit of consuming the jam during breakfast. Since our

brand is already well known among the consumers, the media will amplify our brand presence.

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5.4 – Advertising

Advertising is a form of marketing communication used to promote or sell something, usually a

business's product or service. Commercial ads seek to generate increased consumption of their

products or services through "branding," which associates a product name or image with certain

qualities in the minds of consumers. Advertising is the most important component for the customer

to connect with the product. We can use different types of way to advertise our product like print

media, TV channels, Point of sale (POS) and billboards.

Point of sale (POS) – We can make different stickers and posters which are displayed in the

different stores and also different areas.

Billboards – We prepare billboard for different location like in front of school, shopping mall,

most congested traffic intersection, because everyday people have to face huge traffic jam and sit

on that area, so there is a huge possibilities of people looking on that billboards.

5.5 – Budget

Budgeted (2017)

Direct Marketing

Targeted TV 120,000,000

Newspapers 225,000

Outdoor advertising 157,000

Catalog distribution 91,000

Internet marketing

Website 15,000

Facebook 17,500

YouTube 0

Advertising

Point of Sales (POS) 40,000

Billboards 490,000

Public Relations

Launch Event 245,000

Online PR 22,080

Media PR 59,250

TOTAL BDT 121,361,830

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5.6 – Action Plan

As NCP is very renowned company and has a good reputation in the market, so we have to be very

careful to promote the product and hence we have some plan to promote our product like:

Newspaper advertisement will be held for the first 6 month until the image is built.

We will adopt a school competition program by which we will provide some gifts to the winners

but our main objective is to highlight the product. This will be a promotional strategy to

encourage business.

For TV ads we will show 30 or 40 seconds add, which will help to know our customer about the

new brand.

For getting attention from the customer we will place some billboards in some important area

like traffic congested area, from that area we must get customer response.

We hire some people, who stand in front of chain store for giving the sticker to directly customers

for the first few months till customer learn about the brand.

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5.7 – Projected outcomes

Pro-Forma Income Statement Nutro Consumer Products Ltd. (only for Nutri-Jam)

REVENUE 2017

Sales (63,383 * 110) 6,972,130

Less Cost of Goods sold (60% of sales) 4,183,278

Gross Profit (Loss) 2,788,852

OPERATING EXPENSES

Selling 710,000

Salaries and wages 1,012,058

Commissions 210,000

Internet marketing 32,500

Advertising 520,000

Other 53,085

Total Selling Expenses 2,537,643

GENERAL/ADMINISTRATIVE

Employee benefits 320,000

Insurance 850,000

Rent 345,600

Utilities 180,000

Public Relations 326,330

Total General/Administrative Expenses 2,021,930

Total Operating Expenses 4,559,573

Net Income Before Taxes -1,770,721

Taxes on income 0

NET INCOME (LOSS) -1,770,721

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6.0 – Conclusion

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The product is not first of its kind for the company. Nutro Consumer Products Ltd. has experience

with marketing these products for since many years. Since the product is very different from the

competitors we have to educate them about it through expensive advertising. It may seem from the

packaging that it may not work and the innovation is too far-fetched. If we can make the customers

understand then it will be an instant hit. The target of attaining a market share of only 2.11% is very

modest and definitely achievable. From the perspective of the pro forma income statement, it may

seem that it is a very expensive product, but as the years go on, this jam will someday be a market

leader just like Pran is today.