Marketing Plan Liquid Egg

8/10/2019 Marketing Plan Liquid Egg

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LIQUID EGG

MARKETING PLAN OF OUR UPCOMING PRODUCT

DECEMBER 2013

ROYAL EGG FARM

MARKETING DEPARTMENT

HEAD OFFICE

XX-111-X,XXXXXXXX, DHAKA

BANGLADESH


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Contents

Executive Summary................................................................................................................................................................. 2

Current Marketing Situation................................................................................................................................................... 4

MARKET SIZE............................................................................................................................................................... 4

MARKET SHARE............................................................................................................................................................ 4

COMPETITION................................................................................................................................................................ 5

SWOT Analysis........................................................................................................................................................................ 6

Strength........................................................................................................................................................................ 6

Weakness........................................................................................................................................................................ 6

Opportunity................................................................................................................................................................... 6

Threats.......................................................................................................................................................................... 6

Opportunity and Issue Analysis................................................................................................................................................ 8

Objectives............................................................................................................................................................................... 9

Our objectives are divided into three categories as like following:............................................................................................. 9

Marketing Objective............................................................................................................................................................ 9

Financial Objective............................................................................................................................................................... 9

Campaign Objective........................................................................................................................................................... 10

Marketing Strategy............................................................................................................................................................... 10

TARGET MARKET............................................................................................................................................................ 11

Positioning Strategy......................................................................................................................................................... 13

Points of Difference..................................................................................................................................................... 13

Product Strategy......................................................................................................................................................... 14

PRODUCT DEVELOPMENT............................................................................................................................................... 14

RAW MATERIALS........................................................................................................................................................ 15

RAW MATERIALS SOURCE.......................................................................................................................................... 15

PACKAGE DEVELOPMENT................................................................................................................................................ 15

Pack Size..................................................................................................................................................................... 17

Table 1: Pack Size........................................................................................................................................................ 17

Pricing Strategy................................................................................................................................................................ 17

Table 02: Price Structure of Competitors.................................................................................................................... 17

Table 03: Price Structure Liquid egg for Channel Members....................................................................................... 18

Promotion Strategy.......................................................................................................................................................... 19

Advertising................................................................................................................................................................... 21

Trade Promotion.......................................................................................................................................................... 21

Distribution Strategy................................................................................................................................................... 23


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Action Program..................................................................................................................................................................... 25

Financial Projection................................................................................................................................................................ 27

PROJECTED TURNOVER IN FIFTH YEAR:........................................................................................................................ 27

Table 04: COGS Calculation: 5 kg egg (plastic package)................................................................................................ 27

Table 05: COGS Calculation: 10 kg Liquid Egg (plastic package) .................................................................................... 27

Table 6: One Year Projected Income Statement ( In Million Tk.) ................................................................................ 28

Implementation & Control..................................................................................................................................................... 28

Executive Summary

Royal Egg farmis a new organization started in 2013. Royal Egg farm is a

poultry-based domestic company start business in Bangladesh in 2013. It is

getting ready to introduce a new product Liquid Eggthis product will

produce from egg. As this product will produce from egg a marketing manager

I would like to introduce this product with a vision of achieving a new

position in the egg 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 egg is our necessary goods & we also produce egg

and also 49825 (Farm Poultry and Livestock survey 2007-08)of egg farm

are established in our country. The annual production of egg is about millions

of tons since 1992-93 to 2012-13. Different farm and organization available

those are produce egg but none of organization produce liquid egg. For this

reason, the company introduces Liquid egg targeting the Bakery. The


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company will first introduce the product Liquid eggin Bakery markets of

Bangladesh (mainly large Bakery those are produced lots amount of cake,

Biscuit, bread etc. Bakery like coopers, Mr. Baker, California pasty shop etc.).

In progress it will follow intensive distribution and carry large scale

advertising, consumer promotion, and trade promotion. Current Market of

egg is very competitive. Many numbers of local farms are operating in this

market. Besides those farms, many new farms are also to enter into the

market. But we have advantages that we will only one organization those will

produce liquid egg in Bangladeshi Market.


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Current Marketing Situation

MARKET SIZE

Market size is approximately Tk 50 billion. Egg market is growing at the

rate of 5% per year. Market of this product is Bakery and city family

oriented. It is relatively a fast moving product.

MARKET SHARE

There are many farms those are produce egg but none farm produce liquidegg.

We are the first organization who introduces this new types of product.

Liquid egg is expecting market share 10% within two years. It is expected

to increase sales over the next few years because the market is expanding.

The primary buyers are bakery, who is conscious about their customer health

& different taste. The product is also used by consumers as daily homemade

food at all of their daily meals, Poached Eggs, cooked egg which are really an

interesting & delicious.. For this reason Liquid egghas a large potential

market which will provide food value & taste.


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Market size of egg in our country : Tk. 50 billion

Market growth rate (per annum) : 5%

Liquid eggsexpected share : 10%

Expected market size : Tk. 50 billion

COMPETITION

Current Market of Egg 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.


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SWOT Analysis

Strength

Unique Product

Unique taste

Availability of raw materials

Low price of raw materials

Natural

Longevity (6 months)

Weakness

Complex process of raw material collection.

Opportunity

Huge potential market

Government support

Favorable public attitude

Opportunity to export.

Threats

Strong competition from

Existing egg farm


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Government regulation

Tax imposes- Because this liquid Egg 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 liquid egg

Political instability

Lack of subsidies


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Opportunity and Issue Analysis

Since in Bangladesh egg is grown in about 50000 of farm and the annual

production of egg is about millions of tons the organization can easily collect

raw material at low price from rural market. 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 liquid egg

for egg with different values. Government can also give enough subsidies to

the production of egg. Yet increased competition from other egg production

companies can slow down its sales. From the threats the issues that Royal

egg farm 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 egg to ensure

high quality & availability?

Does the advertising campaign make people inform about the food

value of egg and increase brand awareness?


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Objectives

Our objectives are divided into three categories as like following:

Marketing Objective

Achieve projected market share of 5 percent within 6 months.

To represent an image of unique healthy taste in which it

competes.

To cover markets (Bakery) in Bangladesh.

To increase the production and distribution capacity to satisfy

future sales while maintaining present quality & image.

To improve product quality through continuous research and

development.

Financial Objective

Earn an annual rate of return on investment of 15% after taxes

over the next two years.

To achieve break even quantity within 4 months.

Achieve one year total sales revenue of tk. 300 million based on

average price of per 5kg.

Gain new sets of customers within 3 months that worth for Tk.


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50,00,000.

Campaign Objective

To create different taste, positive and permanent brand image.

To establish a brand personality as 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 different taste and healthiness

of the product.

Key points of the campaign are as follows.

o Liquid eggisa healthy product.

o Objective is to inspire consumers to trial purchase our new

product.

Marketing Strategy

Marketing strategies of liquid egg are primarily aimed at gaining attention,

increasing market share and establish the brand more dynamically. To

implement the strategy we considered a unique branding strategy and an

extensive promotional strategy. Proper packaging, positioning, pricing and

distribution strategy will also assist us to execute our strategy.


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TARGET MARKET

Geographic

Country Bangladesh.

Density Bakery

Demographic

Income Above Tk. 500000.

Psychographic

Social Class Conscious about health of

customer based

organization.

Life Style They consume it for

ensure healthiness.

Behavioral

Occasion Regular

Benefits Healthiness, Hygienic


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User Status Potential


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Positioning Strategy

Points of Difference

The points of differences characteristics that make Liquid egg unique

relative to competitors- fall into following important areas:

It offers fully natural egg.

Price is relatively high.

It provides all the quality of egg.

It saves your time.

It ensures long lusting and healthiness.

Unique health and Hygienic. hygienic issue is the main Pods of our

Liquid egg. The company takes several steps to maintain hygienic.

These are:

It collects egg from good quality farm.

It uses modern technology to break and packaging.

Then refine it.

Packaging. Liquid egg is introduced in high-value packaging graphics

that convey the unique, high quality, healthy product. The packaging

include:


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Food grade plastic pack (BSTI approved).

High quality graphics are used in the packet design.

Attractive in looking.

Overall, the company positioningLiquid eggby the following slogan-

Keep eating egg without worry.

Product Strategy

Our product strategy includes development in products food value &

nutritious and also in packaging

PRODUCT DEVELOPMENT

Egg has been processed in two stage

1) Our washer wash egg after collecting them


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2)Our opti Braker and seperating mechine will break egg and send them to

packageing.

Egg breaking process

RAW MATERIALS

Egg

RAW MATERIALS SOURCE

In Bangladesh egg is grown in about 50000 of egg production farm. Theannual production of egg in millions of ton. It is our necessary goods. It is

seen throughout Bangladesh but is grown in abundance in Mirpur, gazipur,

Savar.

PACKAGE DEVELOPMENT

The package sizes of Liquid egg are the followings:


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5kg Food grade plastic pack.

10kg. Food grade plastic pack.

Packaging will be portable and easily handle capabilities.

Its design include

Company name

Sign

Logo

Price

Expired date

Manufacturing date

It is eye-catching.

More convenient to use

It combines visual and verbal appeals


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Pack Size

Table 1: Pack Size

Pack Size Mode Of

packaging

Cartoon Size

5 Kilogram Food grade plastic 4 Pcs

10

Kilogram

Food grade plastic 4 Pcs

Pricing Strategy

We know that different types of egg are available in current market. But

there is no liquid egg from egg which can give the consumer different health

ensures egg market in a new dimension. Thats why the company introduces

the Liquid egg. Since the company enters into this market in a new

dimension & targeted at only Bakery.

Table 02: Price Structure of Competitors

Pack size MRP (Liquid

Egg)

5 Kilogram 900.00

10 Kilogram 1850.00


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Table 03: Price Structure

Liquid egg

for Channel Members

Pack size NSI VAT

Distributors

Price (Including

vat)

MRP

5 kilogram Tk 870 Tk.22 Tk.892 Tk900.0

0

10 kilogram Tk 1792 Tk.44 Tk.1836 Tk1850.0

0


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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, outdoor advertisement, press

advertising, consumer offers.

Media Selection criteria

Media Coverage

Age of

audience Gender

Education

of

audience Social class

Newspaper

Daily star High 15 to z All High

Mid to

upper

Protom

alo High 15 to z All

Mid to

high

Mid to

upper

Kaler

konto High 15 to z All

Mid to

high

Mid to

upper

Bangladesh

Protidin High 15 to z All

Mid to

high

Mid to

upper


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Independen

t High 15 to z All

Mid to

high

Mid to

upper

Manob

Konto Mid 15 to z All

Mid to

high

Mid to

upper

Shomokal

Low to

mid 15 to z All

Mid to

high

Mid to

upper

Amar desh

Low to

mid 15 to z All

Mid to

high

Mid to

upper

Others

Bill board

Specific

area Controlled All

Low to

high

Low to

upper


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Advertising

oOutdoor Advertisement: We plan to have an exciting, informative, and

actively managed outdoor advertisement. There will be wall painting all

around the country.

o 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.

Trade Promotion

A general phenomenon of the competitor activity is trade promotion. So to

ensure the width and depth of our products stock and also occupy more

space in the retail outlets in major metro city, we should adopt some trade

promotion.

o

Allowance: The Company will pay promotional money to retailers and

special agent in return for an agreement to feature the manufacturers

product in some way.

o Discount:A straight reduction in price on purchase during a stated period

of time or for purchasing a stated amount. The company will also make a

plan and standard for discount.


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Distribution Strategy

The target and potential consumers of Liquid egglive in all parts of the

country. So to reach our product to each and every consumer those are

related in business of Bakery, we will ensure the following activities.

a)Make the product available to maximum possible outlets.

b)Deliver the product at the right time.

c) Increase the depth of stock of each outlet.

d)Smooth delivery of the product to all depots and distributors

premises.

e)Proper merchandizing i.e., ensuring proper display of our product on the

shelf of retail outlet.

Dhaka : Covering the Dhaka and adjacent sub-base markets.

Coverage: Nationwide

Operational Center: 7 Nos.

Total Market Vehicles: 40 nos.

Distribution Channel: Direct/through appointed

distributors

Warehouse No: 10 Nos

Warehouse: Store Capacity


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Liquid egg 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 Customer. These distributors buy the product,

warehouse it, and then resell and deliver it to consumers.

Our distribution channel:

Production plant Distributor

onsumer


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Action Program

Liquid eggwill carry out its marketing strategy and achieve its objectives

through a wide variety of scheduled programs:

2014

January April:The Company will launch its product into the market. It will

follow pull strategy. Under this strategy it will spend Tk.5, 000,000 in

advertising and consumer promotion to build up consumer demand. It will give

coupons by newspaper that we will give buyers a savings when they purchase

Liquid egg. The company will follow selective distribution by promoting and

distributing it to major divisional Bakery (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


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distribution. start to arrange some events and campaign program in divisional

area like big well known outlets

Food fair

Exhibition

Trade fair

TV live recipe show (liquid egg)

September December:The Company will take action depending on the

situation of sales and competitor action.


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Financial Projection

PROJECTED TURNOVER IN FIFTH YEAR

Net Sales Income (NSI) of Tk. 400 million.

Gross margin 20 of NSI .

Table 04: COGS Calculation: 5 kg egg (plastic package)

Sl no.

Particulars

Amount in Taka

1 NSI 870

2

Raw Material : 700.00

Packaging Material : 2.04

Labor : 2.10Machine : 164.76

FOH : 1.10

COGS : 79.19%of NSI 688.953

3Gross Margin

(20.80 of NSI)180.96

Table 05: COGS Calculation: 10 kg Liquid Egg (plastic package)

Sl no.

Particulars

Amount in Taka

1 NSI 1792

2

Raw Material : 1400.00

Packaging Material : 3.05

Labor : 4.34 1710.94


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Machine : 382.56

FOH : 2.05

COGS : 81.06% of NSI

3 Gross Margin(20.80 of NSI)

1771.2

Table 6: One Year Projected Income Statement ( In Million Tk.)

Jan-Mar Apr-Jun July-Sep Oct-Dec Jan-Mar

Estimated Units (10 kg

pack)

2 4 5 6 2

Estimated Sales 100 200 250 300 100

Less: COGS 80 160 200 240 80

Gross Profit 20 40 50 60 20

Less:Depreciation 5 5 5 5 5Less:Advertising Admin.,

R&D, Others

25 20 19 18 25

Net Income (5) 20 31 42 (5)

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


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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

Documents

Marketing Plan Liquid Egg