Term paper

On

Business Plan in

Dynamic Health Papaya Juice

Dynamic Health Papaya Juice Company operating their activities in Bangladesh. Our

company offers best quality papaya juice with different packages to customers at a
very

competitive price. By taking the taste of our juices they can easily find out the basic

differences of the quality of the juices comparing with other companies.

Depending on the market researchers information and considering the growing

demand

of papaya juice, we are going to launch a new product of Papaya Juice in the
market.

The marketing strategy of our company will be based on a cost effective and quality

service to each of its target segment. Our main focus will be on utilizing all of its

resources effectively and efficiently to continually serve its customers with

satisfaction

through producing best quality product. We will also focus to provide its customers a

journey of delightful test through consuming the product.

The marketing objective is to actively support continued demand of the needs of the

papaya juice and gain profit through serving them with perfect satisfaction.

DYNAMIC HEALTH PAPAYA JUICE is a soft drinks manufacturer company, which

produces papaya juice, apple juice, blackberry juice etc. We are successful in
making

profit of all the products mentioned. To give them customer a new fruit taste
depending

on marketing research information of the customer, we are going to launch a new

soft

drink named Dynamic Health Papaya Juice

2.1 Short Term & Long Term Gols

Our goals making the product available in the market with a very competitive price
so

that customer can get complete satisfaction by consuming or drinking the product.
We

also want to establish our new brand of papaya juice. We want to spread the
product

through the whole country and reach each and every consumer.

We have more clear and specific information about the market and we are also
aware of

the customer demand and choices. Based on our Research and Development
department

we are strictly determined to serve our customer needs and wants with a totally
new taste

of fruit like DYNAMIC HEALTH PAPAYA JUICE Papaya Juice. We are going to

launch our new product for four groups of people. They are shown graphically
below:

Kid

Mature

Young

Old

The market for our product DYNAMIC HEALTH PAPAYA JUICE Papaya Juice

consists of Geographic, Demographic, Psychographic and Behavioral factors.

Our immediate geographic market will be Bangladesh with a population of

around

Our total targeted area population is estimated at 17 million.

Generation - kid, young, matured people and also old people.

We know the following regarding the profile of the typical resident of Bangladesh

22% of the old people.

Social class: Middle Class, Upper Middle Class, and Upper Class.

Life style: Achiever.

User status: Potential user, first-time user, and regular user.

Our marketing research department found the opportunity to provide our customers
a new

test through soft drink. The soft drink industry already contains a wide range of
tests and

flabbier in soft drinks. But we found that there is no soft drink in the market like

DYNAMIC HEALTH PAPAYA JUICE Papaya Juice. Our marketing research

department surveyed the market and found that there potential buyers for our
product

which will satisfy their needs. So, we have the opportunity to enter the market and
fulfill

the gap. We are going to offer two tastes of papaya juice with a very reasonable
price so

that customer can easily take the taste of two juices and select and access with

We are going to introduce our new diversified tastes product DYNAMIC HEALTH

PAPAYA JUICE Papaya Juice, initially in 250 ml, 500 ml and 1 liter bottles. It will be

launched in plastic and glass bottles and also will be launched in different packages
like

family, individual or friends package. According to the survey the target market
growth

rate is increasing. Our company estimates that the future market will be satisfied
with

more diversified and segmented product. Our target to make new market segments

according to customers needs and wants.

The Research and Development (R&D) department found some major strength and

weakness for the new product DYNAMIC HEALTH PAPAYA JUICE Papaya Juice of

the company. According to the R&D department the SWOT analysis of the product is

Strong brand name among soft drinks companies in Bangladesh.

High customer loyalty among repeat and high-dollar purchase customer for the

companys current products.

Strong relationships with suppliers that offer credit arrangements, flexibility and

response for any new product of our company.

Excellent, stable and trained staff for customer service.

Totally new test in the soft drink industry.

 Strong merchandising and product presentation.

Good relationship with companys suppliers, partners and customers.

High quality machineries.

Private limited company

Too many existing competitors.

Less product classification

Sudden change of the companys economic situation.

Challenges of the seasonality of the business.

Completely new test in soft drink market.

High growth rate in our target market.

Continuous opportunities ahead through strategic alliances and market

Change in container or product classification can be our opportunity.

Existing channels of our existing product can be used.

 Internet potential for selling products to other markets.

Increasing sales opportunities beyond our target area like Chittagong or

Other competitors of soft drink companies same produce same type of drink.

Economic, political and technological factors of the country may be threatening

New entry of similar soft drink company before the lunch of our product and can

offer papaya juice with very little price to beat our price.

Competition in the area of soft drink industry can be differentiated through test and

flavors. The main categories of tests and flavors in the existing soft drink market
and the

existing competitors are given below in a table-

Competitors Cola Orange Ripe Mango Lemon Soda Others

Coke

Pepsi

Arong

Pran

RC

Virgin

Our offerings to the customer through our product are-

Natural test of ripe papaya.

Availability through different amount.

Nutritionally Beneficial As a Dietary Supplement!

Ideal for Smoothies!

Delicious Healthy Toppings for Ice Cream, Sorbets, Yogurt, Fruit Salads and

Papaya Juice is now used for:

Papaya Juice is a Good Source Of:

Calcium Chlorine Iron

Phosphorus Potassium Silicon

 Sodium Vitamin A Vitamin C &

Amount per 1litre container

Ingredient MG

Calories 520

Fat Cal. 0

Total Fat 0

Sodium 40

Carbohydrate 132

Sugar 120

Protein 188

Amount of Ingredient

Calories

Fat Cal.

Total Fat

Sodium

Carbohydrate

Sugar

Protein

The key to success of this product are-

Maintaining gross margin in excess of 30% at the first year.

Experienced and eye catching advertisement on the important areas of the

Dhaka

Quality Enterprise Resource Planning (ERP) management.

Proper channel distribution.

Proper Customer Relationship Management (CRM).

Proper Supply Chain Management (SCM)

Generating average sales in excess of Tk120000 per business day.

 Online News and Advertisement.

As the product is new and innovative, the company has to consider some critical
issues,

The products sales growth will be slow and our company may face loss in the
very

first year of their operation. Thus the company has to hold the products position

for first 12 month, which is admirable.

As the product is new in the market, it will take too much time to stay in the
heart

of the consumer and the beginning consumers will be innovators. Thus attractive

and effective marketing will be needed to attract, grow, and retain the customers.

The marketing objectives will be to create product awareness and trial.

The company must use heavy sales promotion to entice trial that is matter of

investing huge amount of money.

The products cost per customer will be high, as the product is lunching initially.

Micro and Macro environment is going to affect the success of DYNAMIC HEALTH

PAPAYA JUICE Papaya Juice.

The components of micro environment such as Companys customers, suppliers,

competitors, Marketing intermediaries, employees, public, and partners have great

influence in success of the product. So, the company will has to maintain its CRM

(Customer Relationship Management), PRM (Partner Relationship Management),

ERM (Enterprise Resource Management), SCM (Supply Chain Management) and

KM (Knowledge Management) effectively.

The larger societal forces demographic, economic, natural, technological, political,

and

cultural forces will have effect on the success of DYNAMIC HEALTH PAPAYA

Demography if the population sizes in Dhaka city increases then the product

Economic- if peoples income increases then everybody will have the ability to

National economic health- The product will do better if the national economy

becomes healthier. But on the other hand, if the national economy becomes

weaker, the product may found itself in a critical situation.

Technological if our company can take new technology very fast comparing

with others then obviously our company will take the advantage of creating new

product and market opportunities.

Political situation- if the government looses their rules and regulation such as

imposing less income tax then our company can easily generate profit and can

serve more customers. Besides, political situation may have a bad impact on the

product, if the situation is not in a fair position.

Our marketing strategy is based on becoming the potential choice for consumers in
the

soft drink market. Our marketing strategy is based on superior performance in the

The marketing objectives of the company for the product are as follows.

Maintain a gross margin of 25% each month.

 Generate an average of Tk1200000 of sales each business day each month.

Realize an annual growth rate of approximately 30% within the year 2013.

Financial objectives determined by the company for the product are as follows-

A growth rate in sales of 35% for the year 2013, to total excess of Tk1200000 in

An average sale per business day in excess of Tk40000.

Reducing existing variable costs by 3% within the year 2010.

Our target markets are separated into four segments. The segments are kids,
mature,

young, and old. The segment details are as follows-

Kids:- The kids are a large portion of the population. According to our marketing

investigators, kids are the second major consumer of soft drinks. Kids like soft
drinks.

They like different tests and colors and according to market research kids are going
to

love our new product DYNAMIC HEALTH PAPAYA JUICE Papaya Juice because of

Mature:- Matures aged between 18 22 are also going to take our product. It will
bear

very significance market demand for our product.

Young:- There is a large portion of the population occupied by the young people.

According to the marketing investigation most of them like soft drinks and they

appreciated our new product. As young generation is the highest consumer of this
type of

product, they are our one of our potential customer to serve.

Old:- Old are another portion of the population. Old are most careful and
sophisticated

consumer and are most concern about the price and the quality. We think they are
also

our potential customer because they also going to take our product in large scale
because

they suffer from different kinds of diseases like diabetics, nutrition. And our product
can

exempt them from that type of disease by fulfilling their demand. So, targeting the
Old is

also one of our effective decisions.

To the soft drink consumers, who are tired or looking for a refreshing drink,
DYNAMIC

HEALTH PAPAYA JUICE Papaya Juice is offering them the highest refreshment with

the test of ripe papaya. DYNAMIC HEALTH PAPAYA JUICE Papaya Juice is

offering the consumer a clear differentiated test from the other drinks because it is
making

collecting ripe papaya from the trees so that consumers can get the natural test of
the ripe

papaya. You can also experience the difference.

3.2. Marketing Entry Strategies

The greatest objective is to establish our new brand in the industry. The marketing

strategy will seek to first create customer awareness regarding the product and

establishing connections with targeted markets and work toward building customer

The major marketing strategies are-

 Increase awareness and image.

Quality and test leadership.

Increase awareness and Image: Informing the consumers about our new product

DYNAMIC HEALTH PAPAYA JUICE Papaya Juice. Through, advertisement,

leaflets, News papers, Television, events we can increase awareness of the product

and establish image of our product.

Cross Selling: We can use our existing distributors to distribute our new product.

We will also be able to cross sell our new product with our existing products. This

will help us promoting our new product to the market.

Quality and test leadership: Another strategy is for being the quality and test

leader in the market. We will offer the best quality drink in the market which will

make us quality leader in the market. We are also offering the best test in the soft

Mass distribution: We will also going for mass distribution of our product. We

want to distribute our product each and every corner of the country. For doing that

we will engage more distributor firms in every corner of the country to make our

product available to all the customers within 2010. Consumers will get the drink

where ever he of she goes.

Our marketing mix for the new product DYNAMIC HEALTH PAPAYA JUICE Papaya

Pricing: The Company established the price of its new product DYNAMIC HEALTH

PAPAYA JUICE Papaya Juice with the concept from cost based pricing. According to

our calculation the cost of our product is Tk8, and we set Tk10 for our product.

Distribution: We will primarily use our existing distributors for distributing our new

product DYNAMIC HEALTH PAPAYA JUICE Papaya Juice. Then, we will make

some new channels and assign some distributors to promote our new product to all
over

Advertising and Promotion: The most successful advertising will be through ETV,
ATN

Bangla and RTV, which are the most popular television channels in the country. We
will

also use some bill-boards and leaflets and we will hold a sport event for the young

generation to promote the product.

Our product will enable our customers to have a different experience to test in soft
drink.

They will be able to differentiate our product in quality and test which are unique in
the

soft drink market. They will not be able to feel the same way for the other soft
drinks in

In the current market of Bangladesh, there are a number of juice products exist.
Through

the market research we have revealed that most of these products price range is in

As we are going to launce papaya juice with a different and superior test, so we
should set

the price of our product based on the competitor price. After analyzing our
production

cost, marketing advertisement, promotion, and distribution we have come to a

decision

that our setting price for the product will cover our total cost and will bring profit
within

Finally, considering all the factors associated with our product manufacturing we are

going to set the price for Tk.40

Name of the Company Price

Pran 47

Fruto 48

Shezan 44

DYNAMIC HEALTH PAPAYA JUICE 40

Price

The most successful advertising and promotion has been trhough the following:

Newspaper AdvertisementThe Prothom-Alo, The anokantho, The Jugantor, Daily

Star,

Television Advertisement- Channel I, ETV, STV, RTV, BTV & ESPN etc.

Radio- Radio Furti, Radio Today, BBC Bangla Service

Leaflets distribution about the product in different areas.

The first goal is to recognize everyone as they come into the store. If they are a
repeat

customer, they are referred to by name. Our store will be staffed with high energetic
sales

persons who will dedicate their most of the time to customers that want assistance
when

they need it. The store is designed so a customer can sit as long as them want to
look at

our products. Their children are also welcome in our store. We provide service in a
way

that no other competitive retail store can touch. It is one of our greatest assets and
points

of differentiation. Insight, ideas, inspiration, and fun is the goal. Repeat, high dollar

purchases from loyal customers are the desired end product.

This section will offer a financial overview four company as it relates to our
marketing

activities. We have shown break-even information.

Cost Structure for making 1 Liter juice

Variable Cost: -

24

Direct Material 13

Direct Labor 2.25

Indirect Material 7

Indirect Labor 1.75

Fixed Cost 1500000

Expected Unit Sales 120000

Manufacturing Cost 36.5

Sales & Promotion 2.50

Total Cost 39

Manufacturing Cost =Variable Cost + (Fixed Costs/Unit Sales)

= 24 + (1500000/120000)

= 36.5

At the very beginning, we want to go for 1, 20,000 pcs juice production. And selling
price

Unit Cost

(1 Desired Return on Sales)

39

(1-.4)

= Tk. 65

Fixed Cost

Break Even Volume

Mark up Price Variable Cost

1500000

65 - 24

= 36585.36

Break even sales

= 36585.36 pcs x Tk.40

= Tk.14, 63414.63

The sales forecast is broken down into the three main revenue stream;direct sales,
Web

sales, consignment sales. The sale forecast for the upcoming year is based on 30%
growth

rate. Growth rate fro year 2006 to 2010 are based on percentage increases as
follows:

Direct sales 20% growth rater per year

Web sales 50% growth rate per year.

Consignment sales 20% growth rate year.

In conclusion we can see that, the product the company is going to launch has a
bright

future in its market. As the product is innovative, the consumers are going to
appreciate it.

And according to the R&D (Research and Development) department this product will
be

a strong product mix for our company.

Text Book: Project Management