WELCOME

Maggi is a strategic brand of Nestle, Bangladesh. In Bangladesh, it has only two categories of products

Maggi Soup

Maggi Noodles.Now, Maggi is going to launch ketchup in market for the

growing attractiveness.

Executive Summary

CURRENT MARKET SITUATION

Available brands in market:46The market volume: 1100 ton.Volume distribution: Tomato Ketchup 68% & Chili

ketchup 32% .Mostly used brands in

Household: Pran & Ahmed (the middle-income households).

Foodservice area: Best & Druk mostly (the higher income households.).

Target Market

70%30% Families

Resturants

Families : Middle class Upper classFood service area: Restaurants

Target Market Forecast

Potential Customers

2008 2009 2010 2011 2012

Families 25000 31250 39062 48828 61035

Restaurants 1500 1725 1983 2281 2625

Total 26500 32975 41045 51109 63660

2008 2009 2010 2011 20120

50000100000150000200000250000300000

ResturantsFamilies

Families:

Geographic:◦ The immediate target is the city of Bangladesh. ◦ Middle-income and upper-income household.

Demographics:◦ Singles and families. ◦ Mostly females and children.◦ Have a household income of more than 10,000 tk per month. ◦ Consuming per year at least 3 ketchup bottles.◦ Conscious consumer about their health.

Behavior Factors:◦ Paying a premium for higher quality, tastier ketchup. ◦ Health consciousness

Market Demographics

Restaurants (and their customers):

Geographic:

◦ Fast food and restaurants in the cities of Bangladesh.

Demographics:

◦ Male and female.

◦ Single and families.

Behavior factors:

◦ Health consciousness

◦ High-quality meal.

Market Demographics

High quality

Affordable pricing

Market Needs

Market Trends

Market Supply High Consciousness Food Quality

Strong, steady growing market.After 5 years the total market will be expand 25%

Market Growth

2008 2009 2010 2011 2012

00.20.40.60.8

11.21.41.61.8

Strengths:◦ Higher Brand image

◦ Attractive trade promotion

◦ Quality and Taste

Weakness:◦ Unimpressive packaging

◦ Higher pricing than local brands

SWOT Analysis

Opportunity◦ Developing foodservice industry

◦ Improvement of product & packaging quality

◦ Decreased operation cost

Threats◦ Increased competition

◦ Modest economy

◦ Downward pressure on pricing

SWOT Analysis

Best quality More durabilityPosses no harmful chemical ingredient

Product Offering

Competitive Review

Selected Competitive company’s targeted consumer and price

Brand Pack Size Price Mkt. Share Targeted Consumer

Pran 340 40 20.0% Middle and upper- income household& also restaurants

Best 340 49 19.3% Middle and upper income households & foodservice area

Ahmed 340 40 13.4% Middle-income household

Druk 400 63 11.6% Upper income households& foodservice area

Roza 300 45 7.0% Households & Restaurants

Meridian 285 46 4.7% Middle-income household

BD 340 50 3.5% Middle and upper- income household

Heinz 300 49 2.6% Upper income households& foodservice area

Others Avg. 320 Avg.45 17.9% Household & foodservice area

100.00%

Uncompromising commitment to the quality of the product. Continuously improving the products. Communicating differentiation and quality through personal

interactions and media.

Keys to success

Critical Issues

• National economic conditions which are not favorable to the people.

Distribution Review

Manufacturer Distributor Retailer Final consumer

Target consumer : Quality conscious consumers of ketchup.

Benefits : More preservation ability and tasty. Price :Consumer price is BDT 45. Value Proposition : Tastier, spicy ketchup from the pure

ingredients at a moderate price.

Positioning

Product : High quality and tasty productPricing : Retail price is BDT 45 and wholesale

price is BDT 38 Distribution: Intensive distribution Promotion : Use advertising, personal selling and

sales promotion

Marketing Mix

Survey households and restaurants. Introduce questionnaire to investigate customer wants

and satisfaction.

Market Research

Financial Objectives:We want to gain a no loss-no gain condition over the

next 3 years.We want to produce total revenue of BDT 4750000 in 1st

year and BDT 6,650,000 in the next year.Within 5 years, we want to produce an amount of profit

3.2 million based on per unit price of BDT 38(wholesale price)

Objectives

Marketing Objectives:Achieve 4% market share in a first year. Increase second-year share to 5.50%.Arrange of distribution through the leading retailers and

distributors in the country market within next 6 years.

Objectives

Break-even Analysis

Break-even Analysis:

Break-even Units 500,000

Break-even Revenue 19000000

Assumptions:

Per-Unit Revenue 38.00

Per-Unit Variable Cost 30.00

Fixed Cost 4,000,000

Sales Forecast

Sales Forecast

Sales 2008 2009 2010 2011 2012

FamiliesBDT

3,325,000

BDT 4,655,000

BDT 5,320,000

BDT 5,985,00

0

BDT 7,315,00

0

Restaurants

BDT 1,425,00

0

BDT 1,995,000

BDT 2,280,000

BDT

2,565,000

BDT 3,135,00

0

Total SalesBDT

4,750,000

BDT 6,650,000

BDT 7,600,000

BDT 8,550,00

0

BDT 10,450,0

00

Cost of Sales

2008 2009 2010 2011 2012

FamiliesBDT

1,837,500

BDT 2,572,500

BDT 2,940,000

BDT 3,307,50

0

BDT

4,042,500

Restaurants

BDT 787,500

BDT 1,102,500

BDT 1,260,000

BDT

1,417,500

BDT 1,732,50

0

Total Sales

BDT 2,625,00

0

BDT 3,675,000

BDT 4,200,000

BDT

4,725,000

BDT 5,775,00

0

Expense Forecast

Marketing Expense Budget

2008 2009 2010 2011 2012

Personal selling

BDT 100,000

BDT 144,500

BDT 165,000

BDT 185,000

BDT 227,500

AdvertisingBDT

600,000BDT

867,000BDT

990,000BDT

1,110,000BDT

1,3650,00

Sales promotion

BDT 300,000

BDT 433,500

BDT 495,000

BDT 555,000

BDT 682,500

Total Marketing Expenses

BDT1,000,000

BDT 1445,000

BDT 1,650,000

BDT 1,850,000

BDT2,275,000

Percent of Sales

26.67% 27.50% 27.5% 27.4% 27.6%

Revenue: Monthly and annualExpense: Monthly and annualCustomer satisfactionNew product development

Controls

2008: Initiating sales promotion to educate dealers and advertising.

2009: Gaining the platform to earn revenue of BDT6.65.2009: Reaching the break-even point.2011: Increasing sales volume.2012: Gaining satisfying profitability.

Implementation Milestones

Marketing Organization

Difficulties and Risks:

◦ Pran possesses the major parts of the market. As a new product, we may have to suffer if we cannot persuade the consumers.

◦ It is risky in the first year to make every consumer believed that ours’ is the best tasty and quality product.

◦ From the business view point, the restaurants may not be eager to use new product as they trust the common ones.

Contingency Planning

The Worst Risks:

◦ Other potential competitors may produce products with the same features.

◦ If the competitors decrease their price, initially we will not be able to decrease our price as we are just launching our product.

◦ For inflation and decreasing living standard, people may not be willing to buy this product and this may create the run on of our business.

Contingency Planning

ANY QUESTIONS?

THANKS TO ALL