Principles of Marketing

MKT 201

Sec: 01

Submitted To: MD. Manirujjaman

Group no: 03

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MARKETING PLAN

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Name and ID of the group members:

Name ID

Sk. Imtiaz Mohammad 1210046

Joy Dipsaha 1220348

Fahim Khan 1322043

Maria Sultana 1310689

Nowreen Zaman 1230610

Maisha Labiba 1320495

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Letter of transmittal

We would like to take this opportunity to convey our heartfelt appreciation to them

whose blessing and cooperation was important to bring this report in light. First we

would like to pay gratitude to the Almighty Allah who made each attempt fruitful.

Second, we want to express our gratitude to MD. Manirujjaman,Lecturer Dept. of

Marketing for his constant and spontaneous support, efficient care and constructive

recommendations and suggestions regarding this report, which provided us the

opportunity to prepare the business plan report on Tango . He advised us and

guided us in our work and was always very helpful and kind. We will remain ever

grateful to him for his kind gesture and cordial guidance in completing the report.

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Table of Contents1. Introduction.......................................................................................................................................7

2. Company description:.......................................................................................................................7

3. PRODUCT OVER VIEW.................................................................................................................8

4. Market Analysis:.............................................................................................................................10

5. Situation Analysis:...........................................................................................................................10

6. Strategic focus and plan:.................................................................................................................11

I. Mission:........................................................................................................................................11

II. Vision:.......................................................................................................................................11

7. Market Trend of soft drinks:..........................................................................................................11

8. Competition:....................................................................................................................................12

9. TARGET MARKET:......................................................................................................................13

10. BUSINESS DESCRIPTION.......................................................................................................13

11. Goals:............................................................................................................................................15

i. Short Term Goals:.......................................................................................................................15

ii. Long-Term Goals:.......................................................................................................................15

12. Advertising:..................................................................................................................................16

13. Marketing Strategy......................................................................................................................17

14. SWOT (Strengths, Weaknesses, Opportunities and Threats) Analysis:..................................21

15. Marketing Research:...................................................................................................................22

16. Marketing Mix...............................................................................................................................23

A. PRODUCT STRATEGY:...........................................................................................................24

B. Pricing system:.............................................................................................................................26

C. Distribution Strategies (Place):...................................................................................................29

D. Promotional activity:...................................................................................................................31

17. ACTION PLAN:..........................................................................................................................34

18. BUDGET:.....................................................................................................................................35

19. Conclusion:...................................................................................................................................36

20. Reference:.....................................................................................................................................36

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EXECUTIVE SUMMARY:

It is the optimum aggregated outcome of 05 pupils’ about this business plan

on “Marketing strategy of an orange juice of Pran named TANGO.” As Pran failed

to market the product, they have employed “pentagon marketing limited” owned

by the mentioned 5 consultant to help them to improve the market share of this

product.

This will be a convenient product which will be readily available to quench the

thirst of our customers and will also give the nutritional benefits of fruits. Tango

seeks to achieve a unique ability to provide a distinctive, high quality soft drink

using distinct ingredients to appeal and to excite contemporary tastes for this

product.

The main characteristics of this product will be the flavor of real orange .It can be

served as a cold drink. So Tango will not be a seasonal drink and this will be the

main source of success of the product. The product will be introduced to capture

the 10% market share in the category of functional drinks market. We will need to

evaluate our market size and trends and our competitors and potential partners.

This product will lead the company in functional drink market and will carry the

company on the top spot. The target market for the product will be the energetic

customers as well as Children and youths. The major competitor of Tango is Akij

Group’s Frutika. We select the conventional marketing channel to distribute our

product. We have selected a reasonable price considering both the consumers

buying capacity & our profit margin. Pran will increase its market share through

targeted advertising to increase the number of customers who want convenience

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and are looking to have a drink of unique nature which will give them taste, energy

& satisfaction.

1. INTRODUCTION :

Every product in modern marketing era needs a proper marketing and promotion

plan. So our product “TANGO” do needs a proper marketing and promotion plan.

Because, proper planning is the best way to get bestselling and consumer

preferences in comparison with other products in the market. A good marketing

and promotion plan always forecasts the future activities with proper judgmental

knowledge. Better prediction ability of the marketer heavily influences the success

of the product and way to survive in the modern competitive market. 

2. COMPANY DESCRIPTION:

PRAN-RFL Group is the Bangladeshi food-products corporation based in Dhaka,

Bangladesh, founded in 1981. It is the largest food and nutrition company of

Bangladesh, It is the largest exporter of processed agro products with the

compliance of HALAL & HACCP to more than 82 countries. The Company's

principal activity is the manufacture and sale of Juice, Snacks, Soft Drink, cakes

and dairy products.

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3. PRODUCT OVER VIEW

What is Tango:

Tango is a fruit-flavored carbonated soft drinks owned by Pran company limited.

Product ingredients of Tango:

carbonated water

high fructose corn syrup

sucrose

citric acid

sodium benzoate

modified food starch

natural and artificial flavors

sucrose acetate isobutyrate

sodium polyphosphates

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Core competency and Sustainable Competitive advantage:

In terms of core competency, tango seeks to achieve a unique ability to

provide a distinctive, high quality soft drink using distinct ingredients to

appeal and to excite contemporary tastes for this product.

Deliver this soft drink to customer using effective manufacturing and

distribution system that maintain its quality standards.

4. MARKET ANALYSIS:

We have to analysis market as the first step in determining the

market need for key information on developing our product and

marketing plan. We have to know what people want, what color

they prefer which taste they prefer it will help to create

awareness to the target market. For all people seeking a soft

drink for regular occasions, parties. During this step we will need to evaluate our

market size and trends and our competitors and potential partners.

5. SITUATION ANALYSIS:

Bangladeshi lifestyle and work habits have made convenience a

necessity. As employers demand for productivity from their

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employees, consumers are more pressed for time. In addition, the shaky economy

has made Bangladeshi fear for their jobs; thus, any product that can fill the

consumers' need for convenience and speed are almost automatically embraced

into the Bangladeshi life style. Tango offers a unique drinking experience to its

consumers.

6. STRATEGIC FOCUS AND PLAN:

I. Mission:

Pran’s overall mission is to increase the value of shareholders investment. They do

this through sales growth, cost controls and wise investment of resources. They

believe their commercial success depends upon offering quality and value to their

consumers and customers, providing products that are safe, wholesome,

economically efficient and environmentally sound.

II. Vision:

Improving Livelihood

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7. MARKET TREND OF SOFT DRINKS:

Today, while the soft drink industry’s value has increased, Companies have

been actively engaged in new product developments in order to counter the

growing concerns about negative health impacts of high-fructose drinks, but

also to increase the demand in a market where product offerings are quickly

maturing. New flavor introductions and health-conscious formulations have

been launched in an attempt to offset the decline in carbonated soft drink sales.

The functional market is expected to show sustained growth and consumer

interest in the future years as consumption shifts to trendier, healthier and more

sophisticated product.

8. COMPETITION:

Pran’s top competitors for the soft drinks industry are coca

cola, pepsi and Akij Group which combined, dominating the

total market. Consumers firstly decide that they are going to

have a soft drink. Then they compete brands with each other.

Like they compete Coke with Pepsi and Sprite with 7 up. So

the major competitor of Tango is Akij Group’s Frutika.

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ANALYSIS OF DIRECT COMPETITOR:

In food & beverage market there are many renowned companies having their juice

products.

Coca Cola

Pepsi

Frutika

Shezan

Acme

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9. TARGET MARKET:

There are two major target markets for Tango.

1. One group is the consumers on the go.

These are the employees, students, and other

consumers who lead a busy lifestyle.

2. The other group is made up of fun loving

people who always try something new.

10. BUSINESS DESCRIPTION

The following Marketing plan is about to introduce

the new product by Pran which is named as Tango.

Why Tango Juice?

This will be a convenient product which will be readily

available to satisfy the desire of our customers .The main

characteristics of this product will be the flavor of real

orange .It can be served as a cold drink. So Tango will not be a

seasonal drink and this will be the main source of success of the

product. The target market for the product will be the health

conscious and energetic customers as well as Children and

youths. The Company will increase its market share through

targeted advertising to increase the number customers who want convenience and are looking to

have a drink of unique nature which will give them taste, energy.

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Objectives:

Pran is centered on these objectives:

Improving the customer satisfaction through the good quality

of products

Turn in profits from the first year of operations.

The creation of unique, innovative products that will differentiate

TANGO from other drink.

To exceed 6 million in annual sales by the third year of plan

implementation.

KEYS TO SUCCESS FACTORS:

Product design that will be both visually attractive to customers, and

designed for fast and efficient operations.

Employee training to ensure the best preparation techniques.

Marketing strategies aimed to build a solid base of loyal customers

The products we serve are of the highest quality. We combine this

quality with great service and atmosphere

Customer satisfaction with high quality juices and services

Competent management staff whose makes the juices and shakes

fresh and good quality

Product quality. Not only great food but great service and atmosphere

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11. GOALS:

i. Short Term Goals:

Improve market presence by 10%

Improve Packaging Tango will be introduced in 4 sizes:

the120ml, 250ml, 500ml and 1ltr.

Improve Shelf Presence:

Pran can make a deal with retailers ensure retail shelf space and prominent

positioning for Tango.

ii. Long-Term Goals:

Number One Soft drink of Bangladesh.

Product Innovation:

Pran must continue its innovative research and development strategy to

come up with new flavor and design of tango using its extensive research

facilities and professional expertise to come up with new flavors that will

suit the continuous demand Tango.

12. ADVERTISING:

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Informative Advertising

There will be Informative Advertising during market of Tango and that will

help company:

1. Informing the market of price

2. Describing available services

3. Correcting the false impression

4. communicating customer value

5. Telling market about a new product

6. Explaining how the product works

Persuasive Advertising

It will help marketers to:

1. Building brand preferences

2. Encouraging switching to your brand

3. Changing customer's perception of product attribute

4. Persuading customers to purchase now

5. Convincing customers to tell others about product

13. MARKETING STRATEGY

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We have proposed 4 types of juice products according to our market segmentation.

Those are following:

  Junior Juice Pack (120ml)

  Normal Pack(250ml)

  Contemptible Pack (500ml)

  Family Pack(1ltr)

Market Positioning:

In marketing, positioning has come to mean the process by which we try to create

awareness and positioning in the minds of our target market for our product, brand

and organization. It is the relative competitive comparison of our product

occupying in a given market as perceived by the target market. Frequent ads on

TV, internet and radio channels will help to reach our message to our targeted

consumers. Then we will have print and billboard ads in respect of our product and

market.

We positioned our product as-

  High quality product

  Reasonable price

  Reliable

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14.SWOT (Strengths, Weaknesses, Opportunities and Threats) Analysis:

Here we have given SWOT of our TANGO juice:

1.      Strength:

Pran has a broader product line and outstanding reputation.

Record revenues and increasing market share.

Lack of capital constraints (availability of large free cash flow).

Great brands, strong distribution, innovative capabilities

2. Weakness:

Not all Pran products bear the company name

Aerated drinks not popular with health conscious people

No Fruit content but still advertised as Orange drink

3. Opportunities:

Pran activities should expand all over Bangladesh.

Carbonated drinks are the fastest-growing part of the industry

Leverage successful brand Pran

Focus on most important customer trend - "Convenience".

4. Threats:

Threat from other aerated drinks competitors

Threat from substitutes like fruit juices

Boycott from health conscious people

Downward Pricing pressure

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15. MARKETING RESEARCH:

During the initial phase of the marketing plan

development, several focus groups will be held to gain

insight into prospective customers. These focus groups

provided helpful insight into the decision making

processes.

An additional source of dynamic market research is a feedback mechanism based

on a suggestion card system. The suggestion card has several statements that

customers are asked to rate in terms of a given scale.

There are also several open ended questions that allow the customer to freely offer

constructive criticism or praise.

We will work hard to implement reasonable suggestions in order to improve its

service offerings, as well as show its commitment to the customer that their

suggestions are valued.

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16. MARKETING MIX

A. PRODUCT STRATEGY:

The core:

o Tango beverage in a pre-bottled, ready-to-drink format.

The actual product:

Tango will be a convenient product.

o Packaging and labeling:

1. Twist Cap

2. freshness seal

3. Easy to grab bottle

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4. Flavor

5. logo of Tango

6. Slogan

7. Ingredients

8. pran product

9. Nutritional Details

o Branding:

Colorful, aspect of play, round shaped, prominent Tango logo written in

modern font.

o Trade name:

Tango ™, a Pran product

o Brand personality:

Energy, funky, cool, functional, original, funny, healthy, etc.

o Brand equity:

Pran provides a quality, consistent, innovative and accessible soft drink reputation.

o Product life cycle:

Tango is a low-learning product. With a strong marketing campaign, “sales will

begin immediately and the benefits of the purchase are readily understood”

Since Tango is prone to product imitation, Prans strategy is to broaden

distribution quickly, which is currently feasible thanks to the company’s high

manufacturing capacity.

o Product class:

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Food & beverage Soft Drinks Functional Drinks Tango follows the

practice of product modification.Pran is introducing an existing beverage (but

redefines the drink with a new, more convenient package. Tango will now

become a widely available drink in multiple retailing (distribution) channels.

o Product Quality:

1. Performance Quality

The performance quality of Tango will be that it will produce what it

functions, Customer can take it as a cold drink by chilling it in deep freezer.

2. Conformance Quality

The conformance quality of Tango will be that it will be free from any defects;

it will deliver its targeted performance and quality

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B. PRICING SYSTEM:

Pricing strategies are most important stage in marketing mix. If we select

extensively high price, customers will not buy and volume of sales will be very

low. On the other hand setting lower price will not cover our costs. So we have to

consider the following things in selecting price.

The price strategy that will be undertaken should consider the following aspects:

1. Consumer demand

2. The product lifecycle

3. Potential substitutes

  Acceptance of product:

As our product faces competition against different types of juice, price of our

product should be accepted by customers. We will keep reasonable price and

provide quality product for customers’ acceptance.

  Maintaining market share:

If our product is accepted by customers in near future, more competitors will enter

in the market. So our price should be such that can protect our market share in the

competition. Moreover we will need to lower the price to hold the market share at

the time of competition.

 Earning profit:

Our main objectives are to earn profit. So we should not set any price that will not

cover the reasonable cost of the product. After covering the cost we set a profit

margin for our pricing.

We shall follow appropriate costing method and then set up the price logically by

following the proper pricing system

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Pricing system

Product

name

Prime

cost

Variable

cost

Fixed

Overhe

ads

Per

Unit

Total

Cost

profit Margin Selling

Price/

unit

Retailer

selling

price

Junior

TANGO

juice

(120ml)

4 3.75 0.25 8 2 25% 10 13

TANGO

juice

(250ml)

9 5.25 0.25 14.5 2.5 17% 17 20

TANGO

juice

(500ml)

19 9.75 0.25 29 3 10% 32 36

TANGO

juice

(1liter)

39 15.25 0.25 54.5 5.5 10% 60 65

There are five price-level fixing approaches seem appropriate.

1. Cost Based Pricing

One of the central objectives of this project being to become the market leader in

functional drinks.This could be obtained by establish a price that will largely cover

variable and fixed costs while bringing tremendous profits.

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2. Value Added Pricing

Competitors and potential substitute's prices can also be part of the strategy.

Having a higher price could make customers aware of the additional benefits and

the higher quality of Tango.

3. Value based Pricing

The company sets its target price based on customer perceptions of the product

value. The targeted value and price then drive decisions about product design and

what cost can be incurred. As a result pricing begins with analyzing consumer

needs and value perceptions, and price is set to match consumer's perceived value.

4. Market Penetration Pricing

The company can set a low price for a new product in order to attract a large

number of buyers and a large market share.

5. Break-even pricing

The company has to make some strategies for break-even prices, setting prices to

break even on the costs of making and marketing a product; or setting prices to

make a target profit.

C. DISTRIBUTION STRATEGIES (PLACE):

A distribution strategy defines how we are going to move products from point of

creation to the point of consumption, in a cost- effective manner. In generally there

are different types of marketing distribution system. Consumers are able to buy the

products from different market place. All these distribution strategies are consists

of producer, wholesaler, retailer, and finally to the consumer.

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There are mainly four types of marketing distribution channel:

1. Conventional Marketing channel

2. Vertical marketing channel

3. Horizontal Marketing channel

4. Hybrid Marketing channel 

We will select the conventional marketing channel to distribute our product.

TANGO will be distributed by the specified distributor which will be selected by

Pran. The selected distributor will supply the juice product to the wholesaler and

also to the retailer and the consumer will collect the product from the retailers.

There are three types of distribution strategies:

1. Selective distribution

2. Intensive distribution

3. Exclusive distribution

We choose the intensive distribution for our product. We will supply our product

all over the country on the basis of our product demand so that the consumer can

get the product easily.

The distribution channel is given below:

Our firm

Authorized dealer

Wholesaler

Retailers

Final consumer

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Exclusive distribution system for Dhaka City:

The effectiveness of distribution coverage and practice is of paramount importance

in achieving the desired fruit juice sales. We selected place for tango juice

showroom & whole sale shop such as dhanmondi ,Badda ,baridhara. The locations

are very attractive because those places are very famous for Food Street. There is

no fruit juice shop. Those place is also attractive for juices because there is no juice

corner but there are many good food restaurants like KFC and PIZZA HUT and

others. So that is advantage of place for tango.

D. Promotional activity:

We shall make promotional activities for our product in different school,

college, various quiz competitions, debates, and so on. Some of promotion

activities are:

Pull Strategy:

Pull strategy is a promotion strategy that calls for spending a lot on advertising

and consumer promotion to induce final consumers to buy TANGO. Introducing

an effective pull strategy consumer will be motivated to demand TANGO from

channel members. Who will intern demand it from Pran. We will emphasize on

pull strategy more to have long lasting sustenance in the competitive market. We

will change our marketing strategies over time to satisfy the consumers’ changing

demand.

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Push Strategy:

It is a promotion strategy that calls for using the sales force and trade

promotions to push TANGO through channels. Pran itself will

promote TANGO to channel members to induce them to carry the

product and to promote it to final consumers. We will also follow

push strategy initially to grab the consumers of other brands’

products. We have a strong belief that if any consumer tastes our

product single time he/she will be interested to purchase it again and

again.

Advertising:

Advertisements will be given in television, radio, internet, magazine, newspapers,

and billboards. Advertising themes will be changed with time and promotional

activity will be carried out to generate the consumer.

Output Examples

Television NTV,BTV,RTV etc.

Radio Radio Foorti 98.0fm, Radio Today etc.

Magazines Sananda,Shatbela etc

Internet Banners on selected websites (gaming, sports, Google, yahoo

etc.), Faceook

Outdoors Billboards and prints in select areas including:

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Campuses, transportation (bus, metro, stations)

Tourist areas in high seasonal periods

Personal

selling

Direct contact with retailers, sales kit strategies to be explained

later in the text.

Public relations Stands or special displays and events in schools, malls, sports

events (i.e. IPL SEASON 2), sponsorship activities

Publicity Conferences, press releases (print and online), marketing

through TV coverage

In different occasion we will open special sales center where attractive

point of purchase display would be arranged to create positive image in

consumer’s mind.

We will provide different incentive to our distributor often.

We will sponsor various cultural programs, national occasions,

Religion festival, other important day(s). Such as Phahela Baishakh (Happy

Bangla New Year); Eid –Ul- Fitar, Eid –UL –Azha, Friendship day,

Valentine’s day, Mother’s day, World Health day, World Child Day etc.

We will sponsor some health related campaigns.

17. ACTION PLAN:

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Step Output Period of time Arguments

1Personal

selling1st month to 2nd month

To make retailers aware of Tango so they can

order it in time

2 Radio spots2nd month to mid of 3rd

month

Radio is the most listened media by students and

peoples on the go

3Magazines

ads

Mid of 3rd month to 4th

month

The target market will then match an image with

the name of the product more easily. The

recognition of Tango will be faster.

4Television

spots

Mid of 3rd month to 4th

month

To send a wide message over BD Tango is now

available.

5Point of

purchase5th month to 6th month

Making a special section for the Tango in

Grocery store will help the new potential buyers

to find our product faster and more easily.

6 OutdoorsMid of 3rd month to 4th

month

Putting adds in specific places where Generation

Y hangs out will create an increased awareness

of Tango

7Public

Relations 6th month to 7th month

We will use special events (sports and others) to

promote Tango and also to get in touch with our

potential market.

8 Contest 7th month to 8th monthWe will use contest to give a second "push" to

the sales of the Tango

9 Publicity All the timeUse of TV ads and news to make the general

public aware of the existence of Tango

18. BUDGET:

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The estimated cost that will incurred while marketing of Tango is about Tk

545460000/- for one year.The detail 1 year budget as follows:

Budget head Cost (Tk)

Costs of Good Sold

Production 98000000

Packaging 78400000

Raw Materials 156800000

Distribution 27440000

Storage 31360000

subtotal 392000000

Promotional Budget

Web Page 3000000

Print Ads 12960000

Sampling 5000000

Radio 8000000

Television 60000000

Outdoor Advertising 4500000

Sponsorship 60000000

subtotal 153460000

Total 306920000

19. Conclusion:

 A Business plan is a plan which outlines a company's overall marketing efforts.

Building a new brand or product needs huge promotional activities. To introduce

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an old product newly or branded it needs effective and future oriented sequential

steps. In case of this plan all the necessary steps has been outlined in a systematic

manner. The things shown are designed in such a way that is able to grab the

attention of the present customers of other products.

20. Reference:

Bibliography:

1. Principls of marketing (South Asian Perspective) 13th Edition.

2. Kotler. P, Keller.K. L, Marketing management, 11th Edition

3. Gitman. J. Lawerance, Managerial Finance, 10th, Edition

4. Kotler.P& Armstrong, Principle of Marketing, 11th Edition

Website

1. www.bplan.com

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