DIPLOMA PROJECT

FACULTY OF HORTICULTURE MASTER OF SCIENCES: AGRIBUSINESS

DEVELOPING EFFICIENT MARKETING STRATEGIES FOR LAVENDER PRODUCTS

Coordinator: Phd Lecturer Diana Elena DUMITRA Student: Bogdan Ionu FGDAR

Cluj Napoca 2013

STRUCTURE:
PART I: Literature review; PART II: Material and method; PART III: Results and discussions; CONCLUSIONS.

PART I contains general information about Lavender:

HISTORY OF LAVENDER; PLANT DESCRIPTION; HARVESTING LAVENDER; PROCESSING LAVENDER.

PART II: Material and method

The marketing plan THE 5 STAGES 1. STRATEGIC PLANNING; 2. TARGET MARKET SELECTION; 3. DEVELOPING THE MARKETING MIX; 4. MARKETING IMPLEMENTATION; 5. EVALUATION AND CONTROL.

Analysis of the specific agricultural management planning tool (THE TECHNOLOGICAL SHEET)

PART III: Results and discussions

(The marketing plan developed)

1.

STRATEGIC PLANNING

Objectives: Year I increase the vigour of the shrubs; Year II obtain profit or at least recover the costs;

Year III-V obtain a minimum 20 000 Ron profit/year.

Oportunities and treats: a) Oportunities Increasing demand on the national market;

Increasing interest for the foreign farmaceutical

companies in buying. b) Treats Aquizition channels just starting to form;

Lack of suport from The Ministry of Agriculture.

PART III: Results and discussions

(The marketing plan developed) 2. TARGET MARKET SELECTION

a) Actual situation of the sector: - the European Union profile market large quantity absorption; - the processing sector of medicinal and aromatic plants increases.
b) The competitors: MEDPLANT S.R.L.; OM VEGA S.R.L.; Two family associations.

PART III: Results and discussions

(The marketing plan developed) 3. DEVELOPING THE MARKETING MIX

PART III: Results and discussions

(The marketing plan developed)
4. MARKETING IMPLEMENTATION

a) b) c) d) e) f)

Required equipment; Staff; Raw materials; The risk management; The analysis of income and expenditure; The backup plan.

The analysis of income and expenditure: - For the first 5 years of the business; - One technological sheet for each year; - Will take in consideration the income and expenses, the profit, and other economical indicators.

PART III: Results and discussions

(The marketing plan developed)
The income and expenditure analysis for 1 hectar of Lavander since Year 1 to 5
The period Income (RON) Material expences(RON) Year I 4200 5598.77 Year II 9800 0 Year III 21000 227.55 Year IV 28000 0 Year V 35000 0

Employment costs (RON)

Expenses related to production (RON) PROFIT(RON) (Income- Expences) Unitary production cost (RON/Kg) Selling price (RON/Kg) Unitary gross profit (RON/Kg) Profit rate (%) Labour productivity (Kg/ human day)

248.10
6548.50 -2348.5 21.83 14.00 -7.83 -35.86 8.77

112.91
126.46 9673.54 0.18 14.00 13.82 7649.36 48.79

113.07
381.50 20618.5 0.25 14.00 13.75 5404.64 104.39

112.91
126.46 27873.54 0.06 14.00 13.94 22041.06 139.40

112.91
126.46 34873.54 0.05 14.00 13.95 27576.32 174.25

PART III: Results and discussions

(The marketing plan developed) The backup plan: In case of failure, the retail sale will be applied by opening a local shop, specialized in selling Lavender products such as: Lavender-based honey; Cosmetics and perfumes based on Lavender; Cleaning products based on Lavender; Handmade Lavender soap; Lavender-based craft products. 5. EVALUATION AND CONTROL - Controls will be made every week; - The trial balance and the balance sheet will be examined; - Conducting surveys to identify the customers needs; - Studying the competitors.

Personal contributions:
The elaboration of the technological sheets for the setting up period up to the maximum production of the crop (Year I to V); The analysis of the business opportunity (small investment, possibility to obtain european funds, low competition and high demand on the market); The elaboration of the backup plan (opening a local shop which will sell honey, cosmetics and perfumes, cleaning products, handmade Lavender soap, craft products all Lavender-based).

CONCLUSIONS
The investment needed to start this business is a small one, the establishment costs are less than 1500 euros/hectar; It is possible to obtain european funds for financing the business, provided that the propagating material will be properly certified; The main objectives of the company can be achieved; Due to the fact that the competition is low, and the demand on the market is high, the company has a great opportunity to launch itself on the market; The yield of the Lavender crop is very high, this means a lot of money for entrepreneurs. The initial investment is small compared with the average revenue, that is why investing in such a business can be a good idea.

SPECIAL THANKS !!!

Phd Lecturer Diana Elena DUMITRA

THANK YOU FOR YOUR TIME!!!