DIPLOMA PROJECT

FACULTY OF HORTICULTURE MASTER OF SCIENCES: AGRIBUSINESS

 

DEVELOPING EFFICIENT MARKETING STRATEGIES FOR LAVENDER

PRODUCTS   

Coordinator: Student:Phd Lecturer Diana Elena DUMITRAȘ Bogdan Ionuț FǍGǍDAR

 

Cluj Napoca2013

STRUCTURE:

•PART I: Literature review;

•PART II: Material and method;

•PART III: Results and discussions;

•CONCLUSIONS.

PART I contains general information about Lavender:

•HISTORY OF LAVENDER;

•PLANT DESCRIPTION;

•HARVESTING LAVENDER;

•PROCESSING LAVENDER.

PART II: Material and method

The marketing plan

THE 5 STAGES 1. STRATEGIC PLANNING;

2. TARGET MARKET SELECTION;

3. DEVELOPING THE MARKETING MIX;

4. MARKETING IMPLEMENTATION;

5. EVALUATION AND CONTROL.

Analysis of the specific agricultural management planning tool

(THE TECHNOLOGICAL SHEET)

PART III: Results and discussions (The marketing plan developed)

1.STRATEGIC PLANNING

•Objectives: Year I increase the vigour of the shrubs;

Year II obtain profit or at least recover the costs;

Year III-V obtain a minimum 20 000 Ron profit/year.

•Oportunities and treats:

a)Oportunities Increasing demand on the national market;

Increasing interest for the foreign farmaceutical

companies in buying.

b)Treats Aquizition channels just starting to form;

Lack of suport from The Ministry of Agriculture.

PART III: Results and discussions (The marketing plan developed)

2. TARGET MARKET SELECTION

a)Actual situation of the sector: -the European Union profile market large quantity absorption;-the processing sector of medicinal and aromatic plants increases.

b)The competitors: -MEDPLANT S.R.L.;-OM VEGA S.R.L.;-Two family associations.

PART III: Results and discussions (The marketing plan developed)

3. DEVELOPING THE MARKETING MIX

PART III: Results and discussions (The marketing plan developed)

4. MARKETING IMPLEMENTATIONa)Required equipment;b)Staff;c)Raw materials;d)The risk management;e)The analysis of income and expenditure;f)The backup plan.

The analysis of income and expenditure:-For the first 5 years of the business;-One technological sheet for each year;-Will take in consideration the income and expenses, the profit, and other economical indicators.

PART III: Results and discussions (The marketing plan developed)

The income and expenditure analysis for 1 hectar of Lavander since Year 1 to 5The period Year I Year II Year III Year IV Year V

Income (RON) 4200 9800 21000 28000 35000

Material expences(RON) 5598.77 0 227.55 0 0

Employment costs (RON) 248.10 112.91 113.07 112.91 112.91

Expenses related to production (RON)

6548.50 126.46 381.50 126.46 126.46

PROFIT(RON)(Income- Expences)

-2348.5 9673.54 20618.5 27873.54 34873.54

Unitary production cost (RON/Kg)

21.83 0.18 0.25 0.06 0.05

Selling price (RON/Kg) 14.00 14.00 14.00 14.00 14.00

Unitary gross profit (RON/Kg) -7.83 13.82 13.75 13.94 13.95

Profit rate (%) -35.86 7649.36 5404.64 22041.06 27576.32

Labour productivity (Kg/ human day)

8.77 48.79 104.39 139.40 174.25

PART III: Results and discussions (The marketing plan developed)

The backup plan:In case of failure, the retail sale will be applied by opening a local

shop, specialized in selling Lavender products such as: Lavender-based honey; Cosmetics and perfumes based on Lavender; Cleaning products based on Lavender; Handmade Lavender soap; Lavender-based craft products.

5. EVALUATION AND CONTROL- Controls will be made every week;- The trial balance and the balance sheet will be examined;- Conducting surveys to identify the customers needs;- Studying the competitors.

Personal contributions:

The elaboration of the technological sheets for the setting up period up to the maximum production of the crop (Year I to V);

The analysis of the business opportunity (small investment, possibility to obtain european funds, low competition and high demand on the market);

The elaboration of the backup plan (opening a local shop which will sell honey, cosmetics and perfumes, cleaning products, handmade Lavender soap, craft products all Lavender-based).

CONCLUSIONS

The investment needed to start this business is a small one, the establishment costs are less than 1500 euros/hectar;

It is possible to obtain european funds for financing the business, provided that the propagating material will be properly certified;

The main objectives of the company can be achieved;

Due to the fact that the competition is low, and the demand on the market is high, the company has a great opportunity to launch itself on the market;

The yield of the Lavender crop is very high, this means a lot of money for entrepreneurs. The initial investment is small compared with the average revenue, that is why investing in such a business can be a good idea.

SPECIAL THANKS !!!

Phd Lecturer Diana Elena DUMITRAȘ

THANK YOU FOR YOUR TIME!!!