Marketing and Business Plan of Sahara Nepal
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Transcript of Marketing and Business Plan of Sahara Nepal
A MARKETING PLAN
OF
SAHARA NEPAL Pvt. Ltd.
Submitted To: Mr. Kashayap Shakaya(Instructor, Marketing management)
Institute of Banking and Management Studies
Prepared By:Amrita Chaudhari
Manoj GyawaliPranav JoshiPratik RegmiRinku Shah
Tola Kanta Neupane
ACKNOWLEDGEMENT
This project report has been prepared after knowing various aspects of Marketing
management and its application in various organizations with keen interest. Some
guidance and hints were taken from the institution concerned to this field. The data
included in this report were gathered primarily and secondarily. The carefulness and
attention is focused on the fact that the report is prepared with the purpose of conducting
a new business in the valley.
This project report owes its existence due to the intelligent guidance, invaluable
suggestions and kind co-operation of College. There lies our first and foremost obligation
and gratitude.
We would like to offer our hearty thanks to all the staffs of library of IB&MS College
who helped us to gather information by providing various report and books. We must not
forget our colleagues for their suggestions and feed back regarding the report. We would
like to remember all the known and unknown persons who have contributed to prepare
this report in this form. Last but not least our special thanks go to our Marketing
Management instructor Mr. Kashayap Shakaya whose class lectures and proved indeed a
great help for us in writing this report.
Thank you.
II
EXECUTIVE SUMMARY
Sahara Nepal Pvt. Ltd., a newly established company, is offering its first herbal product
named “Sahara” in the market. The short-run objective of the company is to gain market
leadership in domestic market by offering Sahara and other herbal products gradually.
The long run objective of the firm is to offer its product in global market and to gain a
substantial market share globally.
From the broad analysis of external environmental factor such as customer, competitor,
market and environment as well as from expected internal performance analysis, quality
product with low price, product in spray form and less burning in external use are found
as strengths were as lack of experience in this field and difficulty to obtain economies of
scale in short run are our weaknesses. In short run our company is depending only on a
single product “Sahara” which can also be considered as a weakness. The increasing
trend in people to use the herbal medicine instead of allopathic medicines and availability
of raw materials locally can be the opportunities for us. Since Nepal has also been a
member of WTO, it may be an opportunity for the firm to enter into the global market.
But at the same time, foreign competitors may be threat for us.
To achieve the firm’s goals as well as to ensure the proper implementation of the
strategy, various resources of the firm will be utilized to properly, especially human
resource. Also the efficient leadership will be provided. From time to time, evaluation of
our performance will be done on the basis of preset standard. Various control mechanism
such as budgetary control, operational control, etc are established in the firm.
Regular feedback will be taken from the firm’s stakeholders to enhance the performance
of the firm.
III
Table of Contents
ACKNOWLEDGEMENT..................................................................................................IIEXECUTIVE SUMMARY...............................................................................................IIISTRATEGIC MARKETING ANALYSIS OF SAHARA NEPAL....................................1PART I: BACKGROUND OF SAHARA NEPAL Pvt. Ltd..............................................2
1.1 COMPANY INTRODUCTION............................................................................21.2 Capital structure:....................................................................................................21.3 MISSION...............................................................................................................31.4 VISION..................................................................................................................31.5 Objectives of the Sahara Nepal Pvt. Ltd.:..............................................................31.6 Sahara Nepal Pvt. Ltd. targeted goals for next ten years.......................................41.7 Organizational Chart..............................................................................................5
Part II: EXTERNAL ANALYSIS.......................................................................................62.1 CUSTOMER ANALYSES........................................................................................6
2.1.1 Market Segmentation:.........................................................................................62.1.2 Customer Motivation:.........................................................................................72.1.3 UNMET NEEDS:...............................................................................................7
2.2 COMPETITOR ANALYSIS.....................................................................................82.3 MARKET ANALYSIS..............................................................................................92.4 PEST ANALYSIS...................................................................................................102.5 SWOT Analysis.......................................................................................................11
PART III: INTERNAL ANALYSIS.................................................................................133.1 PERFORMANCE ANALYSIS...............................................................................133.2 Organizational Capabilities and Constraints:..........................................................13
PART IV: IDENTIFICATION AND SELECTION OF STRATEGIC............................154.1 STRATEGY ON CREATING SCAs......................................................................154.2 DIFFERENTIATION STRATEGY........................................................................154.3 DIVERSIFICATION STRATEGY.........................................................................164.4 GROWTH STRATEGY:.........................................................................................164.5 GLOBALIZATION STRATEGY...........................................................................17
PART V: MARKETING STREATEGY..........................................................................185.1 PLANNING FOR PRODUCT................................................................................185.2 PLANNING FOR PRICING...................................................................................195.3 PLANNING FOR DISTRIBUTION AND LOGISTIC SUPPORT SYSTEM.......205.4 PLANNING FOR PROMOTION...........................................................................20
PART VI: IMPLEMENTATION & CONTROL..............................................................226.1 IMPLEMENTATION OF STRATEGY/MARKETING DECISION.....................226.2 EVALUATION CONTROL & FEEDBACK.........................................................23
Appendix...........................................................................................................................25Questionnaire for Information Collection.....................................................................25
IV
About of the Project
The project involves developing a marketing plan for herbal medicine industry. It covers
marketing, management, production and financial aspects of the business as well as the
emerging need of herbs and its demand in the market.
Rationale behind choosing herbal medicine as a product:
Nepal is rich in herbs but it has not been properly utilized and mobilized in productive
sector. The industries established in other manufacturing sectors and service sectors has
been gradually increasing in Nepal but involvement of industries in this sector is
negligible. Analyzing the current scenario of Nepalese market more than half of the
demand has been fulfilled by the International Market. It is found that herbs medicine has
very little side effects in comparison of drugs and the trend of people is also inclining
towards herbal medicine. There is seen a lot of possibility to manufacture herbal
medicine in Nepal by utilizing locally available herbs and also the possibility of sharing
International market.
Focus of the study
The main focus of the study is to prepare a perfect master plan for herbal medicine
manufacturing firm based on the realistic forecast and reasonable assumptions. The task
is to make a business plan for Sahara Nepal Pvt. Ltd. starting from a ground level to
bringing a reasonable rate of return.
Objective of the study
1. To make a perfect marketing plan for Sahara Nepal Pvt. Ltd.
2. To apply a concept of marketing management in formulating required marketing
strategies for the firm.
3. To convince investors to support and invest.
4. To outline the strategies to make this business a success.
V
Methodology
For the purpose of completion of this project we have obtained data from both the
primary and secondary source. The data collected are evaluated effectively and converted
into information. The primary source of data consists of obtaining information from the
customers from questionnaire and concerned department of organization by interviewing.
The secondary source of data consists of the journals, articles, web-site, and other forms
of data that directly or indirectly helped us in the preparation of this report.
Data collected from both the sources have strengths and weaknesses. Despite of the
strengths and weaknesses, both the methods can be implied effectively under different
circumstances and also enable researchers to have a clearer understanding of the study.
Limitations of the Study
Every project work may be hindered with some restrain which will create a boundary
within itself resulting limitation on knowledge on subject area. In relation to the
limitation, this study had hinder from below mentioned factors,
1. Less background of the related area in Nepalese context.
2. There were no bases for the comparison.
3. The degree of validity of the information provided totally depends on the provider
of the information.
4. Time constraints.
VI
STRATEGIC MARKETING ANALYSIS OF SAHARA NEPAL Pvt. Ltd.,A HERBAL INDUSTRY IN NEPAL
1
PART I: BACKGROUND OF SAHARA NEPAL Pvt. Ltd.
1.1 COMPANY INTRODUCTIONIt is one of the potential and less exploited industry in Nepal. The availability of
resources (herbs) locally had made sector more potential. The increasing awareness of the
people towards the side effect of allopathic medicine has made people to switch towards
the use of herbal medicine. The major domestic participants of this industry in Nepal
whose product are:
Sancho
Bojomint
Our company, Sahara Nepal Pvt. Ltd. will start operating from January 1, 2011 under
Nepal Company Act 2063. The head office and the main manufacturing plant of this
company will be located in Nawal-Parasi, Nepal. Our company aims to deal with herbal
products and it will soon launched a product named “Sahara” with the purpose of curing
cold, cough, headache, body ache, toothache and all kinds of body odor problem.
1.2 Capital structure:
Nature of capital Amount (Rs)
Equity 1,36,00,000
Debt 34,00,000
Total 1,70,00,000
2
80%
20%
Equity
Debt
1.3 MISSIONOur mission is to grow and dominate the Nepali herbal market by exceeding customer
expectation by providing quality products with fair price to improve quality of customer
life by designing, building, and marketing best herbal products in the world.
1.4 VISIONOur company aims to enter the global market by creating strategic alliances with foreign
based international company. Our company aims in stretching as well as filling the herbal
product line in the upcoming years.
1.5 Objectives of the Sahara Nepal Pvt. Ltd.:Short-run Objectives:
To gain the domestic market share
To provide employment
To avoid risk
To use of local resources
3
To familiarize the product in the domestic market
Long –run Objectives:
To be growth oriented
Increase market share
Related diversification
Creating strategic alliances to enter global market
Market leadership
1.6 Sahara Nepal Pvt. Ltd. targeted goals for next ten yearsTime-period Company’s targeted goals
2011-2013 Concentrating on domestic market and fulfilling the domestic
customer needs and wants
2014- 2015 To be the market leader in our product
2016- 2017
Entering South Asian Region with the existing product as well as
producing other herbal products with concentration in the domestic
market
2018- 2020 Creating alliances and entering into the global market with all our
offerings
4
1.7 Organizational Chart
5
BOD
Finance Department
Human Resource Department
Marketing Department &Research and Development
Production Department
Legal Department
CEO
Advertising & Promotion
Distribution Department
Research and Development
CRM
Procurement
Store keeping
Production Engineer
Finance
Accounting
Part II: EXTERNAL ANALYSIS
2.1 CUSTOMER ANALYSESThe goal of external analysis is to influence strategy by identifying strategy; by
identifying opportunities, threats, trends, and strategic uncertainties. Its ultimate goal is to
improve strategic choices-decisions as to where and how to compete.
Customer analysis involves an examination of customer segmentation, motivation and
unmet needs.
2.1.1 Market Segmentation:Segmentation means the identification of customer needs that can support price/quality
dimension, customer loyalty, and applications. Segmentation is often the key to
developing a sustainable competitive advantage based on differentiation, low cost, or a
focus strategy.
Our biggest customers are Indian market and Chinese market. These two markets are one
of the biggest markets in the world, so Nepal being in-between these two big nations have
an SCA to easily grab the market share of these countries. Our product Sahara is a
product similar to “Sancho”, “Bojomint” and “Tiger Bam” which relieves people from
cold, cough, pain, headaches etc. Tiger Bam being one of the pioneers in this sought of
herbal product of similar features has been able to gain huge market share all over the
world and is globalize. Our product with more SCA’s then Tiger Bam aims to penetrate
the market share of tiger bam and gain other new customers too analyzing the needs and
wants of the customer.
Our target customers are Middle income level and lower income level customers since
our product is not so expensive and can be easily affordable in compared to allopathic
and other herbal products. Basically people who are aware of the side effects caused by
allopathic medicines and don’t prefer to take chemicals are our target segment. People of
high income level are very conscious about there health so they prefer to get well soon
rather then looking at the side effects but due to awareness programs they have become
6
quite serious about it so these high income level customers can be our potential
customers.
2.1.2 Customer Motivation:Once we have segmented market we move on to customer motivation which is main
reason behind their purchase decisions. Customer motivation differs with the difference
in market segment. Here our product "Sahara" is herbal product which has its own
motivating factors which is described in following paragraph.
The major SCA of our product it that it has no side effects and satisfies customer with
relief and customer loyalty. Our product is comparatively cheaper to other herbal
products which would motivate customers to consume it more frequently. Sahara name
itself means life giving herbs so it indicates and motivates the customer to feel satisfied.
Our product schemes are very motivating and encourage targeted customers as well as
potential customers to use our product. Our product guarantees immediate relief of pain
and care diseases such as cold, cough, headache etc. Our packaging of product and
spraying features built convenience to the customers in any part of the body.
2.1.3 UNMET NEEDS:An unmet need is a customer need that is not being met by the existing product offerings.
Unmet needs are strategically important because they represent opportunities for firms to
increase their market share, break into a market, or create and own new market. They can
also represent threats to established firms in that they can be a lever that enables
competitors to disrupt an established position.
One of the major unmet needs of our company is lagging of Technological development
in production of this kind of herbal products. Inventions of new technological
machineries to enhance productivity and fix the exact proportion of compositions are
very much essential need.
Most of the raw materials needed in composition of our product are resource constraint;
it even takes years and years to generate the raw materials. So it is a long run investment
7
and needs more devotion in planning for long run goal and planting of herbs should be
processed accordingly. This sought of herbal products need to built trust among the
customers since it doesn’t give immediate relief to the victims or patients.
Herbal products are slow relief product which cares the patient not only from outer
health but even through inbuilt cure. It even builds resistance power to certain diseases in
customers’ body. We can even use it for precautions to certain diseases which we feel can
occur in our health.
2.2 COMPETITOR ANALYSISIn this part of our analyses we will be looking into identification of the competitors
(current and potential), cost structure, strength and weakness, image, performance,
positioning strategy and their market accessibility.
There are two major domestic competitor with their product Sancho and Bojomint.
Sancho:
Sancho is the product of Nepal Jadibutti Utpadhan Kendra. The price of Sancho is Rs. 15
which is too for Bojomint. In this product Sancho has been able to capture larger portion
of market share and its major strength are its brand image, accessibility, quality and price.
The company has been successful in gaining a large market share with in a short period
of time. It has been able to create a good image for its product in the eyes of customer. Its
major weaknesses is its packaging and promotional activities. Packaging of the product is
not so good which has resulted in large amount of leakages. The promotional activities
which the company has been using are only radio.
Bojomint :
It is a newly established company and has been using radio, F.M as promotional
activities. It is in its growing phase so it is not a big threat for us as a competitor. People
are not aware about the product and company.
8
2.3 MARKET ANALYSISThe primary objective of market analyses is to determine the attractiveness of the market
or sub- market for current and potential participants.
Size and growth:
For the next four years we will be concentrating on the domestic market. So the entire
country is our market. Our market comprises of three regions terai, mountain and hilly
region. The survey shows there has been a shift in the consumption of herbal products
from allopathic (zero side effect). In this industry fewer competitor so there is high
probability for higher growth.
Profitability:
There are few companies in this industry which reflects less intensive competitors. The
resources are accessible within the country at a competitive price. So the bargaining
power of supplier is low. There are almost 2-3 substitute products. So the consumer
choice is limited, providing a similar product with superior quality at a competitive price.
This will surely be accepted and contribute to our profit.
Distribution system:
We have decided to set up 14 distribution system in14 zones. The main reason behind
this is easy accessibility of product throughout the country. The distribution center is paid
commission according to their sales volume. The distribution system located in the 14
zones also provides logistic support to other sub-distributors.
Market trends:
There are three major trends evolving in the herbal products. They are:
Increased price sensitivity
Concern to the health
Changing attitude of people toward herbal product
So, to cope with these market trends; we have decided to assign price which is lower in
comparison with other similar products. There has been an increasing awareness about
health. Our company has decided to develop product which have decided to develop
product which have mild effect on eyes, nose etc. There has been an increasing trend in
the shift of herbal product from allopathic. So, there is a good scope for the product.
9
2.4 PEST ANALYSIS
Political and Legal environment:
As the herbal industry is very attractive, foreign companies may enter and exploit this
industry. So, the government should have a provision for restricting these companies.
Export duty should be minimal so that our product can compete in the global market. The
rules and regulation for our industry should be consistent so that the political instability
may not have any adverse effect.
The tax holiday for 5 years for small and cottage industries that have been using local
resources provided by law of Nepal is an encouraging prospect for our industry.
Economic environment:
The economic condition of our country is moving towards recession. So, taking this into
account our company has decided to price the product competitively.
There has been a shift in the people preference products. So the demand for herbal
products is in majority.
People have low income. So, they prefer multipurpose product, which can be one
encouraging factor for us.
Socio-cultural environment:
Changing trends of customer towards encouraging the domestic product as it creates the
employment opportunity and use of local resource.
People have the habit of buying multipurpose product rather than buying single purpose
product due to their low purchasing power.
Technological:
Promotion through Internet (creating websites) can help us to expand our market. It is
also one of the cheapest promotional tools with global market coverage.
Internet technology can be used to collect the sales data from the entire distribution center
for daily update, which will also help us to gather the information about the demand for
our product in different regions.
10
2.5 SWOT Analysis
Strength:
Location of our company is well suited for collecting the required resources for
our product. This has helped the company to reduce collection and transportation
charges, and enabling the company to charge lower prices.
Use of IT in collecting and disseminating the information and in attaining the
broader market coverage is strength of the company.
Distribution center in all the 14 zones allows the company to meet the market
demand conveniently.
The owner has invested more funds so they will be high level of motivation for
successful performance of the company.
Timely automated machine are been used to ensure the increase in productivity.
Weakness:
Management with sound knowledge and less experience
Hand to obtain economies of scale in short run
Less broad awareness to the people
Underdeveloped infrastructure
Opportunities:
Increasing trend of the people towards consuming herbal product can be one of
the opportunities for a country
Availability of resources in the local market
Pricing of the product in lower as compared to competitor product which may
help in widen market coverage.
Allopathic medicines have side effect so people are conscious about it and may
substitute it with herbal product.
Threats:
11
The industry is very attractive so, there is high possibility of new entrants.
Allopathic medicines have faster reaction in curing diseases and scientifically
proved.
People are more motivated towards these medicines though some of these
medicines may have side effect.
12
PART III: INTERNAL ANALYSIS
3.1 PERFORMANCE ANALYSISPerformance analysis covers the area of how the company will perform in market and
sales and profitability area.
Projected Sales and Profitability
An expected sale for year 2011 is 800000 units and in this year the company will gain no
profit rather will realize some loss, since huge amount can be spent on promotional
expenses. From 2012, our sales will increase by 23% because quite awareness can be
raised about our product and company can overcome BEP point. Due to lower price in
comparison of competitors and good quality, the increase rate in sales and profitability
will grow rapidly. In the year of establishment our market share in the whole industry
will be about 10% and further expected to increase the market share by 40% up to year
2014 in Nepal.
Determination of Strategic Option
The present capital investment requirement is Rs 17000000 out of which Rs 1.36 crore
will be financed by six founder member and rest capital will be raised from bank
financing. Since our company is a manufacturing firm 70% of the total capital is invested
in fixed assets and 30% in working capital.
Since our company is private limited company and expected to be a growing company,
there will be a financial need for it but at that time raising fund may be crucial.
3.2 Organizational Capabilities and Constraints:The structure of the company is of flattered structure rather than pyramid structure and
there are only three level of hierarchy. Due to less hierarchy in the firm, there will be fast
communication among organizational member which may result in organization
efficiency.
13
Our company is founded by fresh MBA graduate who possesses sound knowledge of
management both theoretically as well as practically which may be helpful to run the firm
effectively in modern perspective.
It may be difficult to get the expert related with herbs. Since we are launching only a
single product in herbal product line, ‘Sahara’s’ life may be uncertain.
Organizational Strength:
This company is well managed with well qualified managers. More fund is invested by
owners, they are more motivated for work. Timely automated machines will be used
which may be helpful in increasing productivity. Our organization is located in Chitwan
which is the centre of our country as well the Indian border is also very close, so it will
help us in distribution of goods.
Organizational weakness
Management with sound knowledge but less experience. Since the competition is very
intense it will be very difficult to obtain economies of scale in short run.
14
PART IV: IDENTIFICATION AND SELECTION OF STRATEGIC
4.1 STRATEGY ON CREATING SCAsOur company’s competition with competitors will be mainly on product level. The
location of the manufacturing plant of factory can generate SCA to the company. It is
located bin Chitwan and this place is like a center for reaching all direction of Nepal.
Manufacturing in Chitwan enables the company to distribute its product in east, west,
north and south easily. Operating company in Chitwan enables the company for easy
access to raw materials. Chitwan it self is a good place for launching the product. Since
we are charging only Rs.12 per unit, it is relatively less than that of competitors which
can be a SCA for us. Technically we will be ahead than other competitors since we are
doing production by using new technology and modern plants and this may help to
increase productivity and efficiency in production. Our strategies formulated for the
company will not be rigid (i.e. they will be flexible as well as real time based). Apart
from product level competition, our company’s competition with competitors will be also
a capability based competition because we are using latest modern technology in
processing. We are doing the publicity of our product web site also which can help our
company to introduce and recognize it in world market.
4.2 DIFFERENTIATION STRATEGYDifferentiation is the process of adding a set of meaningful and valued differences to
distinguish the company’s offering form competitors. Our major differentiation of our
product “Sahara” in its product form i.e. our product will be placed in front of customer
in bottle that can be used as spray. The spray form of the product has two benefits
(1) It is easier to use and apply
(2) It can also be used in drop form by only removing its spray cap.
Another important feature of our product is that it is less staunch in use than of our
competitor’s product such as SANCHO. SANCHO is quite hard and reactive if it applied
15
in external body organs but our “Sahara” is quite mild and can be used in external parts
of body without negative effect.
Our product will be sold at Rs12 in retail where as competitors are offering the same for
Rs. 15 so, offering product at a price less than our competitor will be our strategy to
differentiate our product.
4.3 DIVERSIFICATION STRATEGYDiversification is the strategy of entering product markets different from those in which
firm is currently engaged as well as offering the product with different features but of
different nature.
Our main diversification will be mainly on only herb related products. Our further
diversified product will be herbal toothpaste, herbal creams, herbal oils, herbal shampoo,
chawanparash and other product as per customer needs. The rational for choosing
diversified herbal product is that by doing so we can be able to specialize in herbal
products and this may help us to become market leader in herbal product sector. Our
brand policy will be of umbrella brand in case of related diversification.
4.4 GROWTH STRATEGY:Regarding the growth strategy of our company we will not only try to share the
competitors market but we also focus on creating as well as entering into new markets.
For this growth, first of all we will try to create efficiency in local market with massive
promotion which may result in brand awareness. And when the brand image is formed
then it will help us to make growth in market. Also for our growth, our strategy focus as
to maximize customer delivered value that may help in creating loyalty in customers.
Our growth strategies for our product in the course of time:
Time Duration Products
2011-2012 "Sahara" (A multi-purpose herbal medicine)
2013-2014 Sahara + Herbal Shampoo
2015-2016 Sahara + Herbal Shampoo + Herbal Oil
2017-2018 Sahara + Herbal Shampoo + Herbal Oil + Herbal Paste
2018- 2020 Sahara + Herbal Shampoo + Herbal Oil + Herbal Paste +
Herbal Chawanprash
16
4.5 GLOBALIZATION STRATEGYGlobalization strategy is the strategy that is different from multi-domestic strategy and
separate strategies are developed for different countries and implemented autonomously.
The very first step for going global is to do publicity of our product through website. And
in this website, the benefits to be obtained by using our herbal products will be stated
clearly. In this course of going global, at first we try to be a market leader in our domestic
market leader, then approach to Asian market and ultimately approach to the global
market.
Our important step in this regard is to create strategic alliance with famous multi-national
company and selling the product in their brand name.
17
PART V: MARKETING STREATEGY
5.1 PLANNING FOR PRODUCTProduct is anything that can be offered to a market for attention, acquisition, use or
consumption that might satisfy a want or need and can be tangible as well as intangible.
The name of our product is “Sahara" herbal medicine. Regarding its attributes, it is a
liquid spray and it contains less smell in comparison of other its competitive products.
A spray bottle of Sahara contains 10 ml of the herbal medicine. Its medicine container or
bottle is made up of glass. Our product has three levels of packaging, first glass, second
bottle wrapper and next is cartoon for packing a bulk of medicine bottles.
Brand is a name, term, sign, symbol or a design or a combination of all these intended to
identify good or service of one seller or a group of seller differentiates the product from
the competitors'. Since in future, we are planning to go for product diversification; we
will go for umbrella branding.
As for the support service, direction for using the herbal product as well as problems or
diseases that can be cured by this medicine is also being clearly mentioned in the
packaging of the product.
Both product lines filling as well as product line stretching strategies will be adopted
because the company is planning to offer a different range of product. Such as, herbal
shampoo of different weights as per the product stretches strategy and offering herbal
toothpaste, herbal oil etc as per the product filling strategy. For the new product
development and necessary modification in the existing product of the company, a
separate research and development department is established in the company.
Every product has its own life cycle. In case of Sahara and its other product, in each stage
of the product life cycle, necessary modification will be done in the product as per the
need and taste of the customer.
Regarding new product development decision, our company will keep on developing new
products as suggested by the research and development department. This research and
development will continuously find the unmet needs of customers and will do the market
18
survey regularly. For this purpose, we will use the feedback of customers and this sort of
feedbacks can be gathered from e-mail as well as from post box.
For international product and service marketing decisions, we will supply our product to
our strategic alliance partner and our that partner will offer our herbal product in
respective market by customizing brand and packaging as well as communication as per
their local need.
5.2 PLANNING FOR PRICINGPrice is the amount of money charged for a product or service or the sum of values that
consumer exchange for the benefit of having or using the product of service. Price is only
the element of marketing mix that that produce revenue. While determining the price of
the product we have considered the marketing objective of gaining larger market share as
well as low manufacturing cost to sustain as well as survive in short run and growing in
long run by obtaining economies of scale.
As far the external factors are concerned, we have considered market demand and
competition for determining the product price. We have calculated the price of our
product by predicting how much we will be selling and producing and how much will be
the cost of producing those units. So we have determined the price of our product to
cover its costs. Factors like political-legal, economic, socio-culture as well as
technological may fluctuate the price of our product.
Regarding the general pricing approaches of our product, for the first two years, we are
charging the price to obtain only the break-even point. After that, we will charge the price
on mark-up basis.
For this , we have selected marketing penetration pricing strategy because we have
targeted middle and lower income level people as well as our objective is to gain larger
market share by charging lower price than the competitors'.
Necessary price adjustment can be done according to the situation to specific customers.
Such as, if any customer purchases more than certain specified quantity and if he is a
genuine customer, we will provide them quantity as well as price discounts.
19
5.3 PLANNING FOR DISTRIBUTION AND LOGISTIC SUPPORT SYSTEMThe task involved in planning, implementing and controlling the physical flow of
material, final goods and related information from point of origin to point of consumption
to meet customer requirements. Indirect distribution channel are selected for the physical
flow of the goods.
In short run, especially in Nepal's local market, four members of channel of distribution
can be used. But in the long run, after being entered in globalize market; goods can be
distributed through agent, wholesaler and retailer.
In short run, the product is directly provided to wholesaler, then to retailer and then to
ultimate consumer. But in long run, especially after being entered into global market,
agents will be appointed in the market country because agents are better aware about their
local situation of their market and this can help in efficient distribution of the product.
Required raw material for the product can be obtained from the herbal dealers who gather
all these sorts of raw materials from various and scattered farmers.
The objective of our logistics system will be to maximize customer service at controlled
level of cost.
For the physical flow of our good or herbal product, initially we go on contract with
Transport Company for it and in coming years, we have planned to acquire our own
means of transportation for the distribution.
While selecting the distributor for our product, following things can be considered:
1) Their experience in the distribution field
2) Their assets competencies & facilities for distribution
3) Their business network with the business firms of that locality.
In order to motivate the channel members, special tour packages will be offered to than if
their sales of our product exceed certain specified limit.
5.4 PLANNING FOR PROMOTIONPromotional management involves coordinating the promotional mix, elements to
develop a controlled integrated program of effective marking communication.
Major promotional tools
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Advertising: Radio, newspaper, pamphlets, TV, website, Hoarding Board in the places
like Bus Park, airport, in side of highways.
In case of new product, people are not easily ready to accept the product although they
know about it. For this, door-to-door sales person can be appointed so that can contribute
to convince the people about one product as well as explain various details of the product.
From time to time, sales exhibition will be done in different places.
In special occasions, the company can provide sponsorship of various programs keeping
in mind review of publicity as well as social welfare both.
In the initial year of one product launch massive promotions expenses can be done & in
coming years situation promotions schemes can be applied.
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PART VI: IMPLEMENTATION & CONTROL
6.1 IMPLEMENTATION OF STRATEGY/MARKETING DECISIONFormulation of the marketing strategies is not sufficient in itself, effective
implementation of the strategies is equally important in order to achieve the sub-goals.
Efficient leadership is one of key aspect of implementing marketing strategies. Since our
organization is to be managed by fresh MBA graduates with practical knowledge about
management & leadership. They can get best out of people & can deal with unexpected
situation very tactfully. They can help to create a good working environment within the
organization.
A specific corporate within can be developed in the organization so that performance can
be carried out smoothly. While developing the corporate cultures, the value and beliefs of
organizational member are also considered so that a good quality of work life can be
provided. Such a system can be created on which free flow of communication can occur
among the various hierarchal post of the organization so that every problem can be solved
easily. For this, our organization structure is flattened. To ease the implementation of the
strategies & for better performance, each & every staffs authority & responsibilities in the
organization is clearly defined.The decision-making criteria for our company will be both
controlled as well as decentralized. Decentralized decision-making can be done on the
routine type’s activities so that those activities cannot be postponed in the absence of
decision. For the important & crucial matters & in case of new problems, the centralized
decision-making will be done.
The optimum & decretory use of resources is important for the proper implementation of
strategy as well as to achieve the targeted goals. GM’s in the organization can be
arranged in suitable proportion so that implementation of the strategy cannot be blocked
with a lack of any one of the resources.
Systems are important in the organization to aid in management decision-making. Our
aim in the organization is to make over organization as a paperless organization by
implement. Management as well as marketing information system, Further proper
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accounts & budget system, HRM system planning & forecasting system is developed for
facilitating implementation.
6.2 EVALUATION CONTROL & FEEDBACKMonitoring, evaluation & control is very much important to measure the effectiveness of
the implementation of plan & feedback is equally important for making necessary
improvement in the strategic plan. For the financial control in the organization, primary
standards for doing expenses are set through the method of budgeting & in the course of
time actual performance in cost are compared with standard fixed as per budget. By
doing so, our position in the performance can be easily known & if there is cost over
applied, there can be done control over it. If there will be need of doing any new
expenses, then it can be done by getting the approval of concerned authority.
For the operation control i.e., control in the expenses incurred in the production process,
first of all a standard of raw material is determined for per unit output of finished good as
well as standards for labor & overhead is also determined for the efficiency in
production. Moreover, after actual production, that is compared with standard set above.
So that we can easily find out where the deviation is there in output from standard &
necessary amendments & corrective measures can be applied there.
For the control of the human resource in organization, both positive as well as negative
motivational methods can be applied to them. Each & every person’s activities &
performance will be monitored carefully & it is analyzed that how much their activities is
contributing in achieving organizations goal. The one who is doing good with job will be
rewarded & the one who is doing poor performance in the organization can be threatened
to be find for job & he can’t improve his performance, then he can be fired out.
The major but indirect source of feedback in the company to know how effective it’s
marketing strategy is the condition of sales & profitability.
Surveys will be done about the products customer to gather their view & perception about
the product so that corrective measures can be applied in product features as well as in
marketing plan. The periodic target goals & actually achieved goals will be compared &
if there is found deviation, the reason for that deviation will be traced & further it will be
tried to know where we have lacked on achieving that present target & further steps will
be placed as per revised strategy. Regular customer feedback & employee feedback will
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be taken to know the effectiveness as well as shortcomings of marketing plan that will be
a vision for moving ahead.
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Appendix
Questionnaire for Information Collection
1. Are you believed in herbal product?
Yes / No
2. If yes, what are the major products you used?
Soap Shampoo Toothpaste Medicine others
3. In medicine area what are the major product you use daily basis as soft medicine?
Sancho Bojhomint Jhandu Bam Tiger Bam others
4. On an average how frequently you purchase this medicine?
Weekly 15 days Monthly More than 1 months
5. Why do you prefer herbal products than others?
…………………………………………………………………………………………
…………………………………………………………………………………
6. Are you satisfied with the Herbal product that you used?
Yes /no
7. If No, what are the needs that are not fulfilled by the existing product?
…………………………………………………………………………………………
……………………………………………………………………………………
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8. If these needs are not fulfilled, then are you seeking to fulfill or compromise on
existing?
Seeking / compromise
9. What are the other areas on which you want herbal product which has fewer side
effects?
…………………………………………………………………………………………
…………………………………………………………………………
10. When thinking of herbal product, what brands come to your mind?
FM OM AIDED
Sancho 1 1 1
Bojhomint 2 2 2
Jhandu Bam 3 3 3
Tiger Bam 4 4 4
Patanjali 5 5 5
Others 6 6 6
Others (please specify)………………………………
(For the first mentioned brand of Herbal)
11. What aspects of that product do you like more?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………
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12. Where did you learn about it?
Television ____
Radio ____
Newspaper ____
Magazine ____
Friends/Relatives ____
Stores ____
Doctors ____
Others (Please specify) ____
13. Which advertisement of herbal products are you most familiar with?
FM OM AIDED
Sancho 1 1 1
Bojhomint 2 2 2
Jhandu Bam 3 3 3
Tiger Bam 4 4 4
Patanjali 5 5 5
Others 6 6 6
(For others specify the name_______________)
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14. How did you come to know about this advertisement?
Seen in TV ___
Heard in radio ___
Read in newspapers and magazines ___
Other sources (Please specify______________)
15. Which herbal product advertisement does you like the most?
FM (force in mind) OM (other mention) AIDED
Sancho 1 1 1
Bojhomint 2 2 2
Jhandu Bam 3 3 3
Tiger Bam 4 4 4
Patanjali 5 5 5
Other 6 6 6
Others (Please specify) ________________
15. Why do you like the advertisement?
__________________________________________________________________
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16. Where do you most often see/hear/read about this advertisement?
Television ________________
Radio ________________
Newspaper ________________
Magazine ________________
Friends/Relatives ________________
Stores ________________
Others ________________
Others (Please specify) ________________
17. What pack size of Herbal product you use most often?
10 grams ___
20 grams ___
Other sizes (please specify) _______________
18. Is this pack size and shape convenient for you from use point of view?
Yes ___ (why?
………………………………………………………………………………….)
No ___ (why?
………………………………………………………………………………….)
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19. Where do you generally buy herbal product?
Stores near your house ____________
Medical Store ____________
Ayurved Store ____________
Others (please specify) ____________
20. What changes would you like to have in the herbal product you use most often?
…………………………………………………………………………………………
………..........................................................................................................................
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