Assignment on Marketing Plan of Jackfruit Cake

Main objective of this assignment is to progress Marketing Plan of Jackfruit Cake. Other objectives are to cover markets in all over Bangladesh and improve product quality through continuous research and development. There also Campaign Objective like, establish a brand personality as smart, friendly, reliable and trustworthy and campaign will also focus on the quality and healthiness of the product. Finally draw SWOT analysis and suggest recommendation based on Marketing Plan.

Introduction

PRAN LTD was started in 1985. PRAN LTD is an Argo-based domestic company has been doing business in Bangladesh since 1985. It is getting ready to introduce a new product Cake of Jackfruit. PRAN LTD is the market leader in 3 out of 14 product categories and challenger in 9 out of 15categories. As a marketing manager I would like to introduce this product with a vision of achieving the top position in the cake market in future. Keeping this perspective in mind the product will be produced in Bangladesh and the raw materials will be collected within the country because in Bangladesh Jackfruit is grown in about 0.43 million acres of land. The annual production of cane is about 7.3 million m tons. It is one of the most important cash crops of the country. Cake is available in the market but it is processed and sold in the open place without maintaining hygienic environment and it is not preferred by all. For this reason, the company introduces the “Cake of Jackfruit” in caned package targeting the middle class and upper middle class people. The company will first introduce the product “Cake of Jackfruit” in divisional markets of Bangladesh on January in 2012 as test marketing. In progress it will follow intensive distribution and carry large scale advertising, consumer promotion, and trade promotion. Current Market of cake is very competitive. Large numbers of local companies are operating in this market. Besides those companies, many new companies are also to enter into the market. Market size is approximately Tk. 3200 million. Cake market is growing at the rate of 10% per year. Market of this product is urban, semi-urban and also rural oriented. It is relatively a slow moving product. “Cake of Jackfruit” is expecting market share 10% within five years. It is expected to increase sales over the next few years because the market is expanding.

Current Marketing Situation

 MARKET SIZE

Market size is approximately Tk 3200 million. Cake market is growing at the rate of 10% per year. Market of this product is urban, semi-urban and also rural oriented. It is relatively a slow moving product.

MARKET SHARE

A comparative analysis of the major competitors market share (Source: Container Supplier & estimated) is given below:

Table 01: Market Share

It is evident from the above given facts that the cake industry is faced with acute competition due to the reason that this industries getting saturated day by day. Though our product does not face direct competition with those above given brands, but the relationship is some what complementary.

“Cake of Jackfruit” is expecting market share 10% within five years of cake market. It is expected to increase sales over the next few years because the market is expanding. The primary buyers are upper middle income group, aged above 5 years, who are conscious about their health. The product is also sold through the open vendor without any packaging. As it is processed and sold in the open place without maintaining hygienic environment, it is not preferred by all. For this reason the “Jackfruit cake” in box package has a large potential market.

Market size of Branded Cake in 2010           :Tk.3200 million

Market growth rate (per annum)                   : 10%

Jackfruit cake’s expected share                  : 10%

Expected market size                                         :Tk. 320 million

COMPETITION

Current Market of cake is very competitive. Large numbers of local companies are operating in this market. Besides those companies, many new companies are also ready to enter into the market. Among those companies only a few are holding the majority of the market share. Major players are also trying to expand their product range in this market to tab different market segment.

SWOT Analysis

Strength

• Unique Product
• High Quality
• Availability of raw materials
• Low price of raw materials
• Modern technology
• Natural

Weakness

• Somewhat alcoholic
• Longevity (1 months)
• Lack of storage facility for sugarcane
• Long lead time reduces the juiciness of sugarcane.

Opportunity

• Huge potential market
• Government support
• Favorable public attitude
• Opportunity to export.

Threats

• Strong competition from
• Existing cake company
• Jackfruit cake which sole in open vendor market

Government regulation

• Tax imposes- Because this cake is a new item in the market, the government may impose high tax.
• New law regarding food marketing

• Weak infrastructure
• Public unconsciousness about the food value of Jackfruit cake
• Political instability
• Lack of subsidies
• Scarce of raw material due to bad weather, technology, firm size etc.

Opportunity and Issue Analysis

Since in Bangladesh Jackfruits is grown in about 0.23 million acres of land and the annual production of cane is about 5.3 million m tons the company can easily collect raw material at low price. The company can go through large scale production that will give an opportunity to export it. Besides this, the product has a large potential market as most customer want Jackfruit cake with good and hygienic quality. Government can also give enough subsidies to the production of Jackfruit. Yet increased competition from other cake companies can slow down its sales. From the threats the issues that PRAN LTD. must address are-

• Should the Company develop own infrastructure to ensure the flow of raw material in proper time?
• Should the Company establish own production plant of Jackfruit to ensure high quality?
• Does the advertising campaign make people inform about the food value of Jackfruit cake and increase brand awareness?

Objectives

Our objectives are divided into three categories as like following:

Marketing Objective

• Achieve projected market share of 10 percent within five years.
• To represent an image of highest quality in which it competes.
• To cover markets in all over Bangladesh.
• To increase the production and distribution capacity to satisfy future sales while maintaining present quality.
• To improve product quality through continuous research and development.

Financial Objective

• Earn an annual rate of return on investment of 10 % after taxes over the next five years.
• To achieve break even quantity within two years.
• Achieve fifth year total sales revenue of tk. 320 million based on average price of per 250 mg.

Campaign Objective

• To create high quality, positive and permanent brand image.
• To establish a brand personality as smart, friendly, reliable and trustworthy.
• To create far-reaching awareness among the consumers.
• To get the maximum demand from the consumers.
• Our campaign will also focus on the quality and healthiness of the product.

Key points of the campaign are as follows.

• “Jackfruit cake” is a high quality product.
• Objective is to inspire consumers to trial purchase our new product.

Marketing Strategy

Marketing strategies of “Jackfruit cake” are primarily aimed at increasing market share and establish the brand more dynamically. To implement the strategy we considered a unique product strategy and an extensive promotional strategy. Proper packaging, positioning, pricing and distribution strategy will also assist us to execute our strategy.

TARGET MARKET

Positioning Strategy

Points of Difference

The “points of differences” – characteristics that make “Jackfruit cake” unique relative to competitors- fall into following important areas:

• This is the unique cake in the market in packaged form.
• It offers fully natural cake.
• Price is relatively low according to its quality.
• It cools the lever and safe the lever from other deases.

Unique taste and convenience. The company offer high quality. Quality issue is the main Pod’s of our “Jackfruit cake”. The company takes several steps to maintain high quality. These are:

• It collects cake from good quality sugarcane.
• It uses modern technology to refine it.
• The company use chemical to preserve the quality for long time.

“Jackfruit cake” is introduced in high-value packaging graphics that convey the unique, high quality product. The packaging include:

• Simple packet design.
• High quality graphics are used in the packet design.
• Attractive in looking.

Overall, the company positioning “Jackfruit cake” by the following slogan-

“TAKE NATURAL FOOD.”

Product Strategy

Our product strategy includes development in product and also in packaging.

PRODUCT DEVELOPMENT

The tissue culture technique in Jackfruit is used for rapid multiplication of newly developed high yielding, high sugar, disease resistant varieties and rejuvenation of outstanding varieties under cultivation. With tissue culture technique, it is possible to release a variety within five years and propagate it quickly in the field. The productivity of the important varieties can also be maintained and improved for their longer life span in the field.

Jackfruit has been processed in two stages. 1) Our Jackfruit mills extract Jackfruit cake from freshly harvested Jackfruit, resulting in raw Jackfruit cake for later refining. 2) Jackfruit cake refineries then purify raw Jackfruit cake to produce refined cake “Jackfruit cake” and packaged the cake into packet. In Jackfruit cake refining, raw Jackfruit cake is further purified. It is first mixed with heavy syrup and then centrifuged clean. The Jackfruit cake solution is clarified by the addition of phosphoric acid and calcium hydroxide, which combine to precipitate calcium phosphate. The calcium phosphate particles entrap some impurities and adsorb others, and then float to the top of the tank.

RAW MATERIALS

• Sugar
• Phosphoric Acid
• Vitamin A
• Calcium
• Jackfruit

RAW MATERIALS SOURCE

In Bangladesh Jackfruit is grown in about 0.23 million acres of land. The annual production of cane is about 5.3 million m tons. It is one of the most important cash crops of the country.

PACKAGE DEVELOPMENT

• The package sizes of sugarcane juice are the followings:

0.250 p(small),0.700 p(small), 01.500 p(medium),

2p (big), 2.500p (family size).

Packaging will be portable and easily handle capabilities.

Its design include

• Company name
• Sign
• Logo
• Price
• Expired date
• Manufacturing date

• It is eye-catching.
• Temparature proof
• More convenient to use
• It combines visual and verbal appeals

Pack Size

Table: Pack Size

Pricing Strategy

We know that in “Jackfruit cake” current market is sold in unhealthy condition. So the original food value of “Jackfruit cake” is destroyed. By considering the situation the company wants to give the consumer the cake in healthy format. That’s why the company introduces the Jackfruit cake in packet. Since the company enters into the cake market which already has enough competitors, the company follows the competitive pricing strategy.

Table : Price Structure of Competitors

Table: Price Structure ““Jackfruit cake”” for Channel Members

Promotion Strategy

Our advertising and promotions will pivot around five key strategies. Key programs includes In-store demonstration, coupons, premium, discount, patronage reward, presentation giving, TV Advertisement, Radio Advertisement, out door advertisement, press advertising, consumer offers.

Consumer Promotion

• Coupons: Coupons certify that we will give buyers a savings when they purchase specified products. To generate trial and repeat purchase of the product, coupon will be distributed in many ways:
• In daily newspaper inserts: Inserts are highly read and for this we will use it. It will help us a lot to generate awareness.
• Direct-mail coupon: Those customers that fit the demographics described above will mail coupons. This will likely to be an efficient promotion due to greater audience selectivity.

• Premium: The Company will offer goods as premium either free or at low cost as an incentive to buy the products.

• Patronage reward: Sometimes the company will offer cash or other rewards for the regular purchase of the products.

• Giving presentations: The Company will give presentations like toys, mugs. For the retailer the company gives extra incentive like T-shirt, Radio, Towels, wall clocks etc.

• In-store demonstration: In-store demonstration will be conducted to give consumers a chance to try “Jackfruit cake”. Demonstration will be conducted regularly in all markets to increase awareness and trial purchase.

Advertising

• TV Advertisement: Television is the most effective to create brand awareness. All the premium brands of juice are presently focusing through electronic media campaign like BTV. NTV, ATN, CHANNEL- I are the most popular TV Channel in Bangladesh. So, it is obvious for us to choose the TV advertisement as the prime options according to the budget and the promotional expenditure available for the quarter, we will prepare our media planning. “Jackfruit cake” media planning will also include the selection of right program, at the right time for the right group of viewers.

• Radio Advertisement: A huge number of our targeted consumers are rural based where radio coverage and listeners are large in number. Some of the special sponsored programs will be developed focusing the stories of our brand. Some new private radio station- radio TODAY, radio FURTI, radio AMAR, radio ABC is also becoming popular in urban area. So this media can not be ignored.

• Outdoor Advertisement: We plan to have an exciting, informative, and actively managed outdoor advertisement. There will be wall painting all around the country.
• Press Advertising: We will undertake a considerable amount (based on promotional expenditure) of press advertising in order to advertise our special promotion like consumer offer and to enhance our brand image actively. More often our targeted potential consumers go through daily newspapers; the more likely they are inspired to our brand when they have a need for our type of free offer.

Distribution Strategy

The target and potential consumers of “Jackfruit cake”  live in all parts of the country. So to reach our product to each and every consumer even at the rural level we will ensure the following activities:

1. Make the product available to maximum possible outlets.
2. Deliver the product at the right time.
3. Increase the depth of stock of each outlet.
4. Smooth delivery of the product to all depots and distributors’ premises.
5. Proper merchandizing i.e., ensuring proper display of our product on the shelf of retail outlet.
6. Ensuring the freezing system.

“Jackfruit cake” will be distributed in the market through two level channels. In the distribution channel the company will use some distributors for delivering the products to the retailers. These distributors buy the product, warehouse it, and then resell and deliver it to the retailers who ultimately sell to consumers.

Our distribution channel:

Action Program

“Jackfruit cake” will carry out its marketing strategy and achieve its objectives through a wide variety of scheduled programs:

2011January – April: The Company will launch its product into the market. It will follow pull strategy. Under this strategy it will spend Tk.30,000,000 in advertising and consumer promotion to build up consumer demand. It will give coupons by news paper that we will give buyers a savings when they purchase “Jackfruit cake”. The company will follow selective distribution by distributing it to major divisional market (Dhaka, Chittagong, Rajshahi, Khulna, Sylhet, Barishal).

May – August: The Company will continue advertising and stop consumer promotion. It will start to give trade promotion that will influence the middlemen to carry this product and place it in an eye catching position to occupy consumer attention. In this time the company will follow intensive distribution.

September – December: It will continue advertising and trade promotion and start to arrange some events and campaign program in divisional area, especially in various college and university campuses.

2012

January – December: The Company will reverse the program taken in 2008 with an amount bellow than the amount spends in 2008.

2011 – 2014

The company will take action depending on the situation of sales and competitor action.

Financial Projection

PROJECTED TURNOVER IN FIFTH YEAR:

• Net Sales Income (NSI) of Tk. 320million.
• Gross margin 20 % of NSI.

Table: COGS Calculation: 2.5 pound

Implementation & Control

For control purposes, the plan also allows for month by month comparison of actual versus projected sales and expenses. A contingency plan, attached, has been developed for implementation in the case of severe downward pricing pressure. Excellent promotion programs are vital in our type of marketing. Salespeople will also be a fully trained in sale. Additionally, every quarter we will try to “monitor” all the problematic areas by performing customer satisfaction surveys in limited areas. We also prefer to purchase retail store audit report, which would be the key to our strategic advantage in having superior data on market share and prospects.