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MARKETING PLAN FOR JOY LEMON

Course : PRINCIPLES OF MARKETING (MKT202) Section : 13

Prepared For:

Shahedur Rahman
Prepared By: Jf Dljkh Dkhdkh Dkdkd llfjfjrr

20-Aug-11

LETTER OF TRANSMITTAL
10th July, 2011 Shahedur Rahman Lecturer NSU Business School North South University Subject: Submission of the Term Paper on Market Plan of JOY(soft drink). Dear Sir, We were assigned the term paper to do an analysis on the market plan of JOY(soft drink).Vividly enough, our term paper comprises to analyze how the marketing activities and marketing plan are taken into account of JOY . We hope our contribution will be best evaluated on your sharp scale of acceptance & analytical remarks. Consequently, we are transmitting our term paper to your very concern. Hopefully, you will discover our term paper informative approach as a hallmark of teamwork. Rather, in case of any further clarification or elaboration as to our term paper, we would welcome the opportunity to consult with you to explore how our findings could best meet your needs.

Thanking You. With best regards, ID: ID: ID: ID: ID:

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ACKNOWLEDGEMENT
We all the members of the group solemnly are thanking the Creator who has helped us to do the work efficiently and effectively.

We would like to thank our parents because their inspirations have enabled us to complete this piece of work. Furthermore, we want to thank our teacher, assistant professor of NSU Business School of NSU University to assign as well as to guide us in this term paper in the first instance. Last but not the least we would like to thank to all our group members for giving effort in this term paper and acting as a team during the work.

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CONTENT

Introduction Objectives Executive Summery Current Market Situation 4.1 Competitor Analysis 4.2 Competitive Advantage Market Description Target Market Analysis 6.1 Market Segmentation & Target market Statement 6.2 Logics For Targeted Segments Marketing Mix (Analysing 4p) 7.1 Product 7.1.1 Value Proposition 7.1.2 Unique Value Proposition 7.1.3 Product Strategy 7.2 Price 7.3 Place 7.3.1 Distribution Strategy 7.3.2 Partner Relationship Management 7.4 Promotion Action Programs Cost Budget 9.1 Promotional cost 9.2 Break Even Analysis Conclusion

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INTRODUCTION
Company History The proposal of launching anew soft drink(JOY),in Bangladesh, was decided mutually by the six partners.Looking at the growing demand for soft drinks , though the market for soft drinks is competitive in the Bangladesh, the partners decided to launch its product (JOY) in mainly Dhaka. As our soft drinks business of JOY is in the beginning stage, which is about to start so it does not have a company profile.

Fund Requirements Initially, JOYwill need . On average,the total investment will lead to 5crore, all of which will be provided by the six partners in form of a bank loan Bank loan will be taken as it requires huge amont of funds to start the soft drink business.

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COMPANY OVERVIEW
Goal of (JOY)soft drink: Our major goal is to expand the business within 3 years after its establishment by attracting more customers. To attract more customers and also to attain customers satisfaction we will emphasis on several factors such as quality product , no preservatives added,etc Keys to Success The keys to success in our business are: Location: Environment: Convenience:.

Objectives of JOY soft drink Operational Objectives: To provide better quality product to our consumers up to their complete satisfaction. To satisfy customers with JOY soft drink which gives them refreshment.

Marketing Objectives: Create strong customer awareness for JOY through 4Ps.

Grab a competitive market share with in a period of time (six months) of the target market segments. Create a demand among distributors, retailers and business customers through more benefits than competitors provide can be edited if our faculty suggest.

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EXECUTIVE SUMMARY
More than a billion times every day, thirsty people around the world reach for beverages for refreshment. All around the world, drinking beverage is like an entertainment for people. Soft drinks are considered as consumer products. All round the world we can see a different marketing phase used by the beverage producing companies but in Bangladesh it is a little different. The soft drink industry in Bangladesh is becoming very competitive due to the changes in tastes and preferences of the consumers. However, by conducting market surveys and interviewing customers, we have found out that the consumers are still in search for innovated drinks with additional features. There are quite a few companies who are competing against each other to grab a greater market share. The six top brands in the market of soft drink are Coca cola, 7UP, Pepsi, Mojo, RC Lemon and Clemon. Coca Cola is charging more for their better quality. They are trying to convince their customer by that they are charging more for their better quality than the competitors are serving. Pepsi and 7UP is trying different approach to get the customer satisfaction. They are charging the same as Coca Cola for their products. Mojo is charging a bit low and trying to convince the customer by saying that we are charging low and you will be easily able to buy it. RC Lemon and Clemon target market is totally different as they are producing caffeine free soft drink which charges the highest in the market.

Customers of the soft drink are happy with the current products but still they are seeking

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COMPETITORS ANALYSIS
If we take a look at the Bangladesh soft drink industry, we can notice that at present, there are more than 19 soft drink manufacturers operating in Bangladesh. But the competitors we consider threat to Joy are:

Transcom Beverage Ltd.

Abdul Monem Limited

Partex Beverage Ltd

Akij Food and Beverages.

Transcom Beverages Limited: Transcom Beverage Ltd (TBL) is the exclusive PepsiCo Franchisee for Bangladesh. TBL owns and operates modern plants in Dhaka and Chittagong for bottling the renowned soft drink brands such as, Pepsi, 7UP, Mirinda, Slice, Mountain Dew, Pepsi Diet and 7UP Light. The company is emerging with the motto to deliver sustained growth in Bangladesh and move towards dominant Beverage Company, delighting & nourishing every Bangladeshi, by best meeting their everyday beverages needs & stakeholders by delivering performance with purpose, through talented people.

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Abdul Monem Limited:

Akij Foods and Beverages: Akij Food & Beverage Limited (a unit of Akij Group) one of the largest food and beverage company in Bangladesh manufacturing quality product for domestic and international market..With a mammoth investment, it uses the world class KRONES (Germany), TETRAPACK (Sweden) & SIPA (Italy) Machines to manufacture their products.

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CORE PRODUCT, ORIGIN AND MANUFACTURER IN BANGLADESH

Soft Drink Coca Cola 7UP Pepsi Clemon RC Lemon Mojo

Core Product Cola Lemon and Lime Cola Clear Lemon Cloudy Lemon Cola

Country of Origin Manufacturer in Bangladesh U.S.A U.S.A U.S.A Bangladesh U.S.A Bangladesh Abdul Monem Ltd Transcom Beverage Transcom Beverage Akij Food and Beverages Partex Beverage limited Akij Food and Beverages

COMPETITORS PRODUCT FEATURES

Soft Drink: Product Features

Coca Cola: Cola which uses Caffeine (2.9 mg per 100 ml) and Natural flavorings.

7UP :Caffeine free lime and lemon flavored Carbonated Beverage

Pepsi: Cola which uses Caffeine, high fructose corn syrup and Natural flavorings

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Clemon:

Lemon Flavored Carbonated Beverage

RC Lemon: A tasty cloudy lemon soft drink

Mojo: A local cheap brand offers cola with attractive package

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Market Segmentation
We will segment our market into four categories. Such as: Demographic Segmentation Psychographic Segmentation Behavioral Segmentation Geographical Segmentation

We will divide these segmentations into different subgroups. These are given below: Demographic Segmentation: Age Gender Occupation Family life cycle 14-39 years Both Male and Female Professionals, students, executive level officers. Young, Married, Married with children, Unmarried couples Seekers, Strivers (not applicable for students) Psychographic Segmentation: Social Class Upper Lowers, Middle Class, Upper Middles, Lower Uppers. Behavioral Segmentation: Occasions Usage rate Loyalty Status Regular Occasion Light users, None

Income

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Geographical Segmentation World region Country region City Bangladesh Dhaka Urban areas

Reasons for Choosing These Segmentations: Competitors target market and customer demand is the first reason to select the market. Target market includes business executives which is ignored by the promotional strategies of the competitors. But it is a huge market for soft drink in Bangladesh.

Vast population of Dhaka City as well as competitive pricing of JOY is also one of the most important logic behind setting the target market.

The third logic behind the target market is the location. The industry of JOY lemon will be situated at Gazipur Industrial Area which is very close to the target market . So, it will reduce the distribution cost. Target Market Statement As a new product JOY will be distributed among the young generation and business executives of Dhaka city. Analysing 4P Product Manufacturing JOY will be produced in the factory of Aggressive Marketers which is situated Gazipur Industrial Area. This area is close to target market location.
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Manufacturing procedure will be fully automatic. Here are the steps of manufacturing.

Clarifying the water The traditional process of a series of coagulation, filtration, and chlorination Filtering, sterilizing, and DE chlorinating the water

Mixing The Ingredients The dissolved sugar and flavor concentrates will be pumped into the dosing station in a predetermined sequence according to compatibility. The water and syrup are carefully combined by sophisticated machines

Carbonating the beverage Carbonation will be added to the finished product.

Packaging The beautiful and colourful packaging of JOY attracts the customer. It will consist of yellow, green, black ,white ,ash and so on. JOY is a lemon flavoured soft drink. So, green and yellow will be mostly used. It will also include two model of the product who will represent young generation and executives (Target Customer). The size of bottle (specially the 350 ml) and can is handy which the customers like most. The packaging also includes the ingredients of JOY. The word JOY has been written in both English and Arabic. It will also contain the sign of Halal, Hygienic, Organization and mandatory health certificates.

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Value Proposition Carbonated Soft Drink. Clear lemon flavour Good Tasted Remove tiredness & help to be fresh

Ingredients The ingredients that are used to make the JOY are-

1. 2. 3. 4. 5.

Refined Sugar, Carbon Dioxide, Natural Lemon Flavor, Acidulate, Caffeine etc.

Nutrition Nutrition facts per 100 ml are Energy Fat Protein Carbohydrate = 46 k cl. = 0.00 gm = 0.00 gm = 10.5 gm

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Product Level: There are five type of product level which a marketer need to concentrate on for the success of product o Core Benefit: The basic buying reason of that product by customer. The core benefit for JOY is to quench their thirst. o Basic Product: Basic product is the vital features of that product. Basic product for JOY is carbonated water with some added flavours. o Expected Product: Expected product for JOY is a soft drink which gives more energy and taste to consumer. o Augmented Product: It is the extra features provided by company to their customer. It is giving more energy and taste to their customer by providing them more caffeine in their offering. o Potential Product: It is the all possible changes and transformation that a product can undergo in future. Because it is targeting youth it can modified its regular bottle shape into some different and innovative way so youth can attract. It can launch a new designed art form bottle.

Unique Value Proposition Lemon flavoured Carbonated Soft Drink. Strictly maintained products high quality. Different size. 275ml can; 550ml , 1250ml pet bottle. More energy . Different taste. No chemical preservative.

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PRICING STRATEGY

Despite being a new entrant in the industry, we plan not to compromise on our price level. We maintained top quality while producing Joy. While setting our pricing strategy we have kept three things in mind: Consumer Demand The Product Life Cycle Potential Substitutes

Customer Demand In case of soft drinks, customers are driven by taste and health consciousness and income is also a very important factor here. The higher the price we set, the higher is the perceived value and the customers are willing to pay the premium price if the product delights them after consuming it.

The Product Life Cycle As the product is new and the market is very much saturated the product must be top class and of higher price. This would help to quickly cover up the development costs. And as said earlier, higher price will also give a certain prestige to the product. This would help to capture the market easily for Joy.

Potential Substitutes: The current giant competitors such as Coca Cola, 7UP and Pepsi are currently attracted to higher profit margins. We also need to keep their price and quality in mind before we set our price. Will our soft drink be of good taste than of 7UP? Its not just easy to set a high price to have a higher perceived value and
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come into quicker break even, but its also about the brand awareness of the competitors.

So we have decided that we are going to follow our competitors pricing and add a little further with expanding the quantity of our drinks. We will follow uniform delivered pricing. We will price same for the every part of the Dhaka city without going for price discrimination. The proposed prices of different size of Joy are: Package 275 ml. (Joy can) 550 ml. (Joy Mini) 1250 ml. (Joy Family) Price 30 tk. 30 tk. 60 tk.

There are two pricing strategies for new product. The first one is Price Skimming and the second one is market penetration. We can describe our pricing strategy as a Competitive Pricing Strategy which is a combination of price skimming and penetration. Let us explain the logics. We will ask the questions and answer them to support the strategy. At first we justify Price Skimming Strategy. Is it a new invention? Answer : No Do the Product quality and image support the price? Answer: Yes Do the buyers want the product at the price? Answer: Yes (current Market Situation)

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Do the costs of producing the product in small volume cancel the advantage of higher prices? Answer: Yes (Because the land cost is very high) Can the competitors enter the market easily? Answer: Yes. So, Price skimming will not be a good strategy for JOY. Now we will judge the penetration pricing with related question and answer. Is it a price sensitive market? Answer: No. Is there any inverse relationship of production and distribution cost to sales growth? Answer: Yes. Will the low prices keep competition out of the market? Answer: No So, Market penetration will not be a good strategy also. This is why we have chosen a competitive pricing strategy. Place Channel: Manufacturer Retailer Customer

Coverage: Around 10% of Dhaka city.

Location: Metros and urban areas

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Inventory: Currently no specific amount of inventory is maintained for backup.

Transport: Products will be distributed through rented transportation system. Six pick up vans will work everyday to send those product to retailers.

Distribution Strategy After company manufacture the product, it has to decide that from how many and which type of channels through product will reach to customer. JOY will be available through regular distribution because it will be available at targeted area. We will implement this regular distribution to supply saturation exposure of the market by using all accessible channels. Thats why JOY will be available in selected parts of urban area at all the miniature and large retails stores, supermarkets, departmental stores and restaurants. There can be zero to 1 levels of intermediaries implicated in the intact supply chain before product reaches to the end consumer. This is because initial target market is small and UP dont actually have an extensive network of sales agents, brokers and additional force which is very important and is perfect for make product approachable to the markets. This work will be done by retailers. 5% margin will be reserved for these mediators . JOY will transport its products from industry which is situated at Gazipur by own transportation system and sell it to the retailers on a regular basis. Because beverage industry is highly unstable and vibrant so products should be available in market at all the time. The supply of product primarily depends upon the quantity required by retailers ,so it can be supplied on after some intervals. JOY will also launch a bundled service with Fakhruddin Biriani, Labamba Kabab. They are locally popular restaurants where JOY will be available with offered foods at a special price. It is a zero level channel system.

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Promotion
Advertising Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor .We will use Informative advertising which will introduce our product to target audience. One of our objectives will be effective use of the promotion budget. JOY has been targeted for the young generation and office executives and designed for fun loving young adults. Media Broad cast Very small TV ads and aggressive advertisement program will be launched through FM Radios. Because now a days both students and business executives are being busy day by day. FM radio is becoming one of the best media to communicate with young generation and business executives. Print Advertisement will be published in the Popular national dailies on the holy days. Internet Advertisement through Ecommerce, news and social network websites can be an effective media for communication. Outdoor Billboards A lot of legal billboards will be put up. However, with the billboards, we will come up with our belief and values and people will be aware of it.

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Sales promotion Sales promotion is the short-term incentives to encourage the purchase or sale of a product or service. Discounts December and January are the major part of winter. Usually customer demand decreases in that time. To increase sales and grab a bigger market share will launch a discount program for schools, college, universities and for profit/nonprofit organization who are willing to go for a picnic or study tour. JOY Card In the Summer sales of soft drinks goes high and a very competitive environment is observed in the market. Next summer we are going to start a promotion program which will be named JOY Card: A Mirror Reflection of Cash Under this promotion we will provide joy card with each of our product. Customers will be given a lot of option they can purchase with different number of joy card. Here are the offers: 10 Joy Card (Can) Submission : Customer will get a free Joy Can 10 Joy Card (Mini) Submission : Customer will get a free Joy Mini 10 Joy Card (Family) Submission : Customer will get a free Joy Family 20 Joy Card (Can) Submission : Customer will get a free Exclusive Joy Mug 20 Joy Card (Mini) Submission : Customer will get a free Joy Mug 20 Joy Card (Family) Submission : Customer will get a free Joy Jug 50 Joy Card (Can) Submission : Customer will get a free Joy Exclusive ring 50 Joy Card (Mini) Submission : Customer will get a free Joy T-shirt & cap 50 Joy Card (Family) Submission : Customer will get a free Exclusive Glass Set

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100 Joy Card (Can) Submission : Customer will get a free Joy Exclusive Ticket for T20 world cup 100 Joy Card (Mini) Submission : Customer will get a free Joy Ticket for T20 world cup 100 Joy Card (Family) Submission : Customer will get a free two Joy Ticket for T20 world cup & A Loyal Customer Joy Card which will provide him 7% discount on joy product for 1 year.

Direct Marketing Taking appointment our marketing executives will directly contact with the executives, principals of well known schools and college and other different educational and business organization with our sales promotion. We will also distribute the leaflets among the students and people who read newspaper. It will contain the features and sales promotion as well as the prices of the products. All the leaflets will contain the value proposition statement: Just Own Yourself

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