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NEW PRODUCT DEVELOPMENT STRATEGIE OF

Bengal Meat

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Page 1: Bengal Meat

NEW PRODUCT DEVELOPMENTSTRATEGIE

OF

COURSE TIT: PRINCIPLE OF MARKETING COURSE CODE: MKT 221

Page 2: Bengal Meat

SSTAMFORDTAMFORD U UNIVERSITYNIVERSITY B BANGLADESHANGLADESH

Assignment of

Principle of MarketingPrinciple of Marketing

Course Code: MKT - 221

Subject: New Product Planning Process & Development by

Practicing

Principle of Marketing

Submited To : Ms Monalisa Salam

Course Teacher, Principle of Marketing

Stamford University Bangladesh

Submitted By :

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Letter of TransmittalLetter of Transmittal

Dated: March 14, 2009Dated: March 14, 2009

Ms Monalisa SalamMs Monalisa SalamCourse Teacher Course Teacher MKT-221MKT-221Stamford University BangladeshStamford University Bangladesh

Sub:Sub: Course Assignment of MKT-221Principle of Marketing Management Course Assignment of MKT-221Principle of Marketing Management

Dear Madam,Dear Madam,

We undersigned are the students of your course of Stamford UniversityWe undersigned are the students of your course of Stamford University Bangladesh, like to request to please accept our assignment of batchBangladesh, like to request to please accept our assignment of batch “Group 5”. The assignment is prepared as per your guidance.“Group 5”. The assignment is prepared as per your guidance.

May, we therefore pray and hope that; you would be kind enough toMay, we therefore pray and hope that; you would be kind enough to accept our course assignment and obliges us thereby.accept our course assignment and obliges us thereby.

Sincerely yours,Sincerely yours,

Yours obedientlyYours obediently

Page 4: Bengal Meat

Acknowledgement

Firstly, we are very much grateful to the Almighty for enabling us to

complete such a report.

We like to express our heartiest gratitude to our very much favorite

course faculty , Ms Monalisa Salam, Course Teacher, for initiating us in such

a job. Without his advice and co-operation, it would not be possible for us

to complete this report & assignment.

We are very much grateful to. Md. Mostofa Kamal , Head of Information &

Technology Division of Bengal tel com Ltd., for his substantial co-

operation.

Finally, we express our heartiest felicitation to all of students for their

extended co-operation and support.

Page 5: Bengal Meat

Introduction

Meat industry in our country is new concepts relative to other develop

country. In Australia, USA, England, Canada etc, there are lots of meat

companies producing and exporting meat to other country.

Bengali meat has been operating their business since 2005. In our

country there are lots of local business men who sell meat to local

market in a traditional way. There are other retail chain shops like

Agora, Mena Bazar, Nandan etc they also sell meat to different

locations.

Bengali Meat Company is the only company in our country who are

producing and processing meat with an appropriate marketing plane

shi;;; strategy. They follow all the marketing plan to establish their brand

image. Bengal Meat Company is situated in Shathia, Pabna with a 9.21

acre land. It can process 20 tons meat per day. Their main focus is on

export. They are exporting about 80% of their production to USA, UK,

Canada, Dubai, Europe etc.

The collect animal from local sources and supplies to some five star

hotels name – The Sheraton, The Radission, The Pan Pacific and The

Westin. Their prime emphasis is on product quality and customer focus

and also availability of their products. Bengal Meat Company is using

the latest technological machineries to process meat with a controlled

environment. Bengal Meat Company confident, that our operation is

benchmark new trends in Bangladesh.

Page 6: Bengal Meat

Company Overview

Bengal Meat Processing Industries Limited, the lone and pioneer

processed halal meat exporter and domestic supplier, has almost trebled

its export growth in a span of nine months. The trend reflects the sharp

rise in demand for processed meat in Bangladesh at a time when

consumers have become increasingly concerned by reports of food

adulteration. As the respective ministries of those particular countries

issue export permission, everyone except the government has a very

little role to play in this regard – the management of Bengal Meat

believes. Bengal Meat ha a huge market for processed halal meat mainly

in both Bangladesh and Middle east and south East Asia. But the

company is currently failing to tap the potential as it cannot penetrate

into their markets due to some legal barriers. Dwelling on the barriers

they are facing, he said being an exporting country Bangladesh has no

certification from any other importing countries than Kuwait and Dubai.

Such certification from any importing country is mandatory for an

exporting country, as the country concerned is to satisfy the importer

that the product exported does not contain any hazardous elements and

germs.

Marketing Analysis:

This is the first of its kind and glorifying first mover in the ready-meat

industry of Bangladesh. This first ever modern multi-species abattoir in

Bangladesh capable of producing over 20 tons per day of processed meat

beef, cara beef, veal, goat meat or lamb.

The business entity, which now requires 1,600 to 1,700 cows and 2,200

goats every month to meet the growing demand in both foreign and

Page 7: Bengal Meat

domestic markets, could also expand its export 20-25 times if the

government had extended proper support, its official’s clamed.

Meanwhile, the meat processor is eyeing to grab the Malaysian market

in two or three months as a team from that country will visit Bangladesh

soon to asses the standard the Bengal Meat follows in processing the

item.

Officials of the country’s most sophisticated abattoir set up in the

northern region with Australian technology said, initially, they would

supply around 10 tones of meat – mainly beef and mutton – per day to

local market. The products will be made available at the luxury hotels,

restaurants and superstores in Dhaka and Chittagong cities, they said.

Bengal Meat, dressed and packed with international standards, would

cost Tk 10-20 more per kilogram than beef or mutton sold in butchers’

shops.

The modern meat processing plant, set up with a daily capacity of 20

tones at Shanthia of Pabna, would also maintain reliable live cattle’s

supply chain through organized and scrutinized procurement and

monitored rearing.

Besides exporting meat to the international market, the company has also

concentrated on the local market with supplying around 2-3 tones of

meat a day and is expecting a supply of 10 tones a day shortly. Now

around 1,068 shops and business entities, including five star hotels,

super shops and chain stores are the main consumes of processed meat

of the company. People think processed meat is very pricey, but Bengal

Meat takes only Tk 10 more than the market rate of common meat.

As buying and selling of processed meat remains a very new vital

concept in Bangladesh, the company is finding it difficult to convince

Page 8: Bengal Meat

shoppers about the item. But with their innovative marketing planning

process, the Marketing team of Bengal Meat believes that the scenario

will be changing.

It is observed that in the beginning its marketing and supply chain

officials could hardly get order for more than five hundred kgs a day.

But now Bengal Mean has reached 3 tones and it will certainly increase

in coming days.

About the meat quality the officials said they got the supply from their

selected agents who collect cattle from different places of the country.

Bengal Meat has reached an agreement with its suppliers that if the

management find any hazardous disease in the supplied cattle they are

bound to get the cattle back.

The officials added that the supply chain of cattle of the country is not

that much good as the practice of farming cattle for non-milking and

non-cultivating purposes is very new.

It has a huge international market we are in need of more investment in

the sector.

If the government withdraw duty on importing live animal for export

purpose, as finally meat export will generate more income. Presently,

Bengal Meat is enjoying 20 per cent incentive on export, but they face

hardship as such incentive in given against opening L/C only. Vision of

Bengal Meat:

To serve Bangladeshi people with premium quality meat and meat

products at challenging prices.

We know that comes from the vision company success as well as the

products planning process So we will check the management ability and

Page 9: Bengal Meat

actual expertise and experience of Bengal Meat to meet its market

expectation in the next chapters.

Corporate Summary:

Name of the establishment Bengal Meat Processing Industry Ltd.

Head Office Address Sheltech Tower, 55, Bir Uttam Qazi

Nuruzzaman Road, West Panthapath,

Dhaka-1205, Bangladesh

Factory Address Village: Korial, Post Office: Kashinathpur,

Upazilla: Santhia, District: Pabna,

Bangladesh

Chairman Eng. Kutubudding Ahmed

Vice Chairman Dr Taufiq M Siraj

Managing Director Md. Mazharul Islam

C.F.O: Md. Omar Faruque Bhuiyan

Contact Number Phone Number: +8802913808, +

880219136, + 8802913929

Fax: 88 02 81 58 276

e-mail: [email protected]

Company/Plant

registration Number

C-49088 (1072) / 2003

Year of construction 2005

Total land area 9.15 Acre

Total built – in area Total 70373 sq ft., where plant area covers

24,000 sq. ft. and the rest include animal

sheds, by-products shed, general &

chemical store, compressor and power

station, office and staff dormitory.

Page 10: Bengal Meat

Company Location

BENGAL Meats state-of-the-art factory is the first of its kind in

Bangladesh. The factory has been built in Shathia Pabna and has been

designed and equipped by a leading Australian company in food

processing automation. We meet world export standards and other

crucial benchmarks like HACCP, ISO and HALAL.

Strategic Marketing Practices of Bengal Meat Company

Country’s first state-of-the-art modern meat processing industry, Bengal

Meat, has launched commercial production pledging supply of fresh,

hygienic and halal meat to local consumers as well as foreign market.

Providing Superior Customer Value

Standard Product Qualify

Bengal meat is producing a world class food quality of meat in our

country. They are well known about their quality, hygienic, neat & clean

meat. For their top quality of meat, they have achieved ISO 22000:2005.

This certification is a combination of ISO 9001 and HACCP and the

leading certification in food safety.

Page 11: Bengal Meat

Totally customer focused

The company believes their success depends on their customers. Thus,

their primary value is fulfillment of their customer’s needs. Their

manner of achieving this success is to include value for money. They

develop extensive network to reach the products at the doorsteps of their

clients, and also recruit sales personnel throughout the country to ensure

availability, and at all times focus on to produce goods as per customer’s

satisfaction.

Product Stratgie

Halal Meat

Bangladesh is the land of majority of Muslims. So, people always

consider Halal foods to eat. With this consideration, Bengal Meat

maintains all the rules and regulations to slaughter the animals.

Product Differentiation: Bengal Meat has successfully differentiated its

market by selling branded Halal meat at home and abroad. In different

shops and superstores like Agora, Nandan, Meena Bazaar etc. we can

see the poster of Bengal Meat’s logo and products. Moreover, we’ve

learned that the company also exporting their product overseas. So

definitely the company has successfully dominated the market with

successful product differentiation.

As Bengal Meat is totally customer focused, they always try to cover

different needs or demands of their customers through different

offerings. According to customer demands, they are offering differing

types of meat. They are.............

Page 12: Bengal Meat

Cattle beef,

Cara beef,

Veal,

Goal meat &

Lamb

Sheep

Chilled or Frozen

The also offer products according to different pars of the cattle.

Page 13: Bengal Meat

Pricing Strategy

Company also considers price level in terms of their quality. Since

quality is the prime, price is little bit higher than from local market.

Descriptions Price/Kg

Beef with bone Tk 275.40 / $4.05

Beef without bone Tk 499.80 / $7.35

Meat front leg Tk 359.72 / $5.29

Meat back leg Tk 359.72 / $5.29

Lever/Koliga Tk 359.72 / $5.29

Beef kima Tk 499.80 / $7.35

Brisket/Sinah Tk 359.72 / $5.29

Placing Strategies

Attractive Packaging:

With the present demanding situation, company also offer their products

with attractive packaging. This packaging helped them to build a brand

image and to carry out from one place to another place.

Distribution Networks:

They are currently distributing their products in different five star hotels

like- Sheraton, Radisson and Pan Pacific Sonargaon, Westin. Bengal

Meat is also available in renowned Chain Shop in our country.

Production Capacity:

Bengal Meat has the first modern multi-species abattoir in Bangladesh

capable of producing over 20 tons per day of processed meat beef, Cara

beef, veal, goat meat or lamb.

Page 14: Bengal Meat

Highly Equipped Capital Machineries

Bengal Meat Company is equipped with highly technological plant and

machineries that can produce quality meat. These machineries is

exported and installed by Food Equipment Australia (FEA).

Customer Relationship Management

One of the core strengths of Bengal Meat is their CRM department.

Through their dedicated effort they have established a top class customer

relationship practice. Serving the customers efficiently has enabled them

to become a leader in this sector.

Modern Marketing practice

* Market segmentation: From the vision statement of Bengal Meat we

came to know that the company segments its market by selling premium

branded and Halal meat for everyday eating.

* Innovation Strategies – This deals with the Bengal Meat’s rate of the

new product development and business model innovation. As Bengal

Meat is the first mover in the industry then the company is on the cutting

edge of technology and business innovation with pioneer capabilities.

Page 15: Bengal Meat

* Growth strategies – In this scheme we ask the question, “How should

the firm grow?” There are a number of different ways of answering that

question, but the most common gives four answers:

Horizontal integration: the company can open some shop in major

cities and town in Bangladesh as well as in abroad at where it can

sell its products. Currently Bengal Meat sells its products through

channels.

Vertical integration: Bengal meat has already contracted with

several farm and NGOs to provide the company with Cattle. May

be future the company will establish farm to produce cattle for

itself.

Diversification: it has geographically diversified its venture as it

spread its business over abroad.

SWOT Analysis of Bengal Meat:

Strengths:

Strong brand image

Experienced top management

Global presence of Bengali Meat

Large market share

First mover advantage

Good profitability

Strong solvency

Wide and powerful distribution system

Page 16: Bengal Meat

Weaknesses:

In – network coverage

Complex operation

Concentrated ownership pattern produce differentiations

Opportunities:

Government tax rebate

Backward linkage for value addition

Further diversification

Shortly carrier advanceman opportunities

Leading job provide/opportunity

Threats:

Emergence of competent competitors.

Government regulation and intervention.

Exchange rate of volatility.

Cattle diseases.

Availability of cattle.

Action Program

Quick response with the changes in the marketplace

Adopting New technology

They are using high technological equipment and machineries with

the growing demand of quality and Halal meat. For this reason, Bengal

Meat Company installed heavy machineries from Australia.

Page 17: Bengal Meat

Promotional Strategy:

The took some promotional activities to communicate to the target

market. They had given some print ad on some popular newspaper. They

are providing up to date information on their web site.

Information Technology:

Bengal Meat Company can be informed about the shortage of

demand of meat from the clients. Employees also can be able to know

about the present production information with the help of information

technology.

Global Marketing Strategy of Bengal Meat

Premium Halal Abattori, a local company, has signed a deal to export

halal meat to Malaysia as local processors are eying to grab a portion of

US$ 50 billion global halal meat market.

Premium Halal Abattoir, under a memorandum of understanding with

Barakah Import of Malaysis, will export 50 tonnes of meat a year, with

industry people demanding more government supports to explore

potential market.

Page 18: Bengal Meat

The government meanwhile is likely to get clearance soon from the

Department of Veterinary Services of Malaysia. The certification will

enable Bangladeshi companies to export processed halal meat to

Malaysia. Another meat processing company, Peninsula Abattoir, is in

talks with buyers to export processed meat to Europen countries.

The pioneer in halal meat processing industry in the country, Bengal

Meat Processing Industries Limited, is exporting to the UAE and

Kuwait. Bengal Meat has almost trebled its export growth in a span of

nine months.

The company started exporting about 3 tones of processed halal mutton a

week to Dubai in May 2007, but now it exports 9 tones of mutton a

week. In September 2007, Bengal exported 12.5 tones of beef to Kuwait

per week, but now its weekly beef export to the country has reached 25

tones, according to the company officials.

The government also collected information on sanitary and photo

sanitary requirements of many countries to meet the export requirement.

The government is trying to support businesspeople as the processed

meat has export potential since Bangladesh is free from mad cow

disease. Local business people said the government should establish a

modern lab for testing exportable meat. Since establishing a lab is very

costly the government should help entrepreneurs.

Bengal Meat has a huge market for processed halal meat in East Asian

and Middle Eastern countries. If Bangladesh can have a small potion of

the market it could be a very potential sector. Currently, Brazil, China,

India and Australia are the main suppliers of processed meat to the

global market. The company started exporting about 3 tones of

processed halal mutton a week to Dubai in Ma 2007, but now it exports

Page 19: Bengal Meat

9 tones of mutton a week. Besides, since September 2007, the Bengal

exported 12.5 tones of beef to Kuwait per week, but now its weekly beef

export to the country has reached 25 tones, according to the company

officials.

Bengal Meat has been getting huge response from Kuwait and from the

next as its will its export to the country with sending 50 tones of halal

beef to the country per week. Bengal Meat’s CEO Mr. Mostafizur

Rahman believes.

BudgetingBudgeting is very much important in order to implement the promotional program. Bengal meat finance department provide or report of total budgeting cost.

There are three steps should take when setting budget. Our industry , set his budget based on comparisons of each finding.

1. Bengal set budget based on his plan's goals and objectives and the schedules which have recommended.

2. Bengal overview company average of marketing budget spent as a percent of sales for similar companies in his similar program. Using this second method will let company see if our budget appears to be realistic in comparison to other similar companies. This figure will help us determine if that our budget is too high or low compared to the company average.

3. Go through a third exercise which involves estimating our primary competitor's advertising and marketing budget based on what we know about their activities. Thus Bengal gain more competitive and possibly gain more market share.

. Bengal also include:

an overview sheet illustrating our total budget a breakdown by medium a breakdown by product/market

Page 20: Bengal Meat

Conclusion

Bengal Meat Company is the pioneer in meat industry in our country to

provide a high quality meat with competitive price. Their price is little

bit higher than traditional vendors as they are providing an exclusive

quality of meat.

They have succeeded to build their brand image locally and abroad.

They strictly follow the strategic marketing tools by which they have

gained a competitive advantage over its competitors. Bengal Meat has

faced lots of problems like sources of raw material, local rules and

regulation, demand, but they have overcome all the problems as because

they are customer focused company in our country.

References/Bibliographies

1. Website of Bengal meat, www. Bengal meat.com

2. Class lecture Course Teacher, Ms Monalisha Salam. MKT 221

Stamford University Bangladesh

3. Brochures and prospectus of Bengal meat.

Marketing Management by Philip Kotlar&Keller 1 Kevin 12th ed; Publish by

Pearson edu,inc.