A Report on A Marketing Plan

Marketing Plan on Ifad Biscuit

Group: 3 Section : B B.B.A. 18th Batch Dept. of Finance University of Dhaka

A Report On “A Marketing Plan on Ifad Biscuit”

SUBMITTED TO

Md. Shehub Bin Hasan Lecturer Department of Finance University Of Dhaka

SUBMITTED BY

Group-03 BBA 18th Batch, Section: B Department of Finance University of Dhaka

Date of Submission 1st June 2013

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LETTER OF TRANSMITTAL

June 1, 2013 Md. Shehub Bin Hasan Lecturer Department of Finance University of Dhaka Subject: Submission of Course Report Honorable Sir, It is a great pleasure for us to submit the report on “A Marketing Plan on Ifad Biscuit” as per our requirement for course F-204; Principles of Marketing. Writing this report has been a challenging yet interesting experience for us. It enabled us to grasp a thorough knowledge on the subject matter and we are confident that this knowledge will prove to be of utmost value and importance to us in future. We have undertaken our sincerest effort for successful completion of this report and we hope that any unintentional error, omission or mistake committed by us while preparing this report will be considered with sympathy. Therefore, we beg your kind consideration in this regard. We will be very grateful if you accept our report and oblige there by. Sincerely, Group 03 Farhad Hasan Hasib

(18-041)

Mohammad Jahidul Islam (18-041) Md. Belal Hossain

(18-063)

M A Ahad Khandokar

(18-072)

Kazi Didarul Alam

(18-097)

Batch No.18th, Section B Department of Finance University of Dhaka

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GROUP PROFILE

Serial No.

Name

Roll

1.

Farhad Hasan Hasib

18-015

2.

Mohammad Jahidul Islam

18-041

3.

Md. Belal Hossain

18-063

4.

M A Ahad Khandokar

18-072

5.

Kazi Didarul Alam

18-097

Dept. of Finance University of Dhaka 4

Marks

ACKNOWLEDGEMENT

Firstly we express our gratitude from heart to the Beneficent, the Merciful, & Almighty Allah for giving us the strength and patience to prepare this report within the programmed time. We would also like to thank the kind and very helpful senior brothers for their generous help and the lab assistant’s helpful hand. We are deeply indebted to our course teacher, Md. Shehub Bin Hasan, Lecturer, Department of Finance, University of Dhaka for his cooperation and precious guideline in preparing the report.

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EXECUTIVE SUMMARY

Ifad is a newly born common format biscuit company in Bangladesh. Its business domain is Ifad Multi Products Limited which mainly specializes in producing a wide variety of biscuits. As of 2011 the Ifad Biscuit has an estimated market size of BDT 40 Crore. Ifad falls under the category of common format branded biscuit. There are chiefly 8 competitors in the common branded biscuit market. Ifad has a market share of about one-tenth of this market. The demand for biscuit is almost the same throughout the year, therefore Ifad’s sales sizes are almost the same. A significant growth in the company sales is conspicuous throughout the years. Olympic, Haque and Nabisco are Ifad’s main competitors. Olympic is the largest common biscuit format company with a market share of 35%, where Ifad is at only 9%. Ifad’s target customers are kids and women of middle ages. The company mainly focuses on middle and upper middle class customers. Ifad has a vast distribution and packaging system. It distributes its products to the chief cities like Dhaka, Chittagong, Rajshahi, Sylhet, Khulna and other metropolitans and suburbs. It distributes its products to departmental stores, retail outlets super stores etc. Ifad has come up with new promotional and branding strategies. For its promotion, it uses electronic media, press campaign, television commercials etc. When it comes to future prospects, Ifad intends to grab a greater market share and beat Olympic in being the largest common format biscuit company. Ifad’s current promotional activities are mainly focused on attracting consumers to let them know about the biscuits. But the fact is they are expending hardly enough for proper promotion of the biscuits. We recommend that they should come up with a larger hand to expend for promotion in order to beat Olympic at that time. Also they should increase the quality of their product, use effectiveness and efficiency in production process thus rendering a better profit. Ifad should also try and grab the upper class customers who generally prefer boutique biscuit.

TABLE OF CONTENTS 6

Contents

Page No.

1.1. Introduction:

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1.2. Origin of the report:

08

1.3. Objective of the report:

08

1.4. Methodology:

08

1.5. Scope of the report:

09

1.6. Limitation of the report:

09

2.1 Current Market Situation

10

2.2 Market Description

11

2.3 Product Review

13

2.4 Competitive Review

15

2.5 Distribution Review

19

2.6 SWOT Analysis

21

2.7 Objective

24

2.8 Product Strategy

26

2.9 Budget & Control

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INTRODUCTION 7

In this chapter we tried to describe the origin of the report, objective of the report, scope and limitations of the report.

ORIGIN OF THE REPORT The BBA Program under the department of finance offers a course named “Principles of Marketing (F-204)” which requires submitting a report on a specific topic determined by the course instructor. The report under the headline ‘Marketing Plan for Ifad Biscuit’ has been prepared towards the purpose.

OBJECTIVE OF THE REPORT The main objective of the report is to provide a marketing plan to develop the market growth of Ifad Biscuit. We have tried our best to provide some measures that the company can take to develop its product and its sales volume as well as market share.

METHODOLOGY To prepare this report we mainly depend on primary data, but we have also get help from our seniors. Then we ask for advices that should be followed to collect a standard data. We collected our necessary primary data by the help of internet and text books. We collected the information about the company, the industry, the market and the brand. We also collected some information from newspaper and TV commercials.

SCOPE OF THE REPORT 8

Everything has some advantage which helps that work to be completed thoroughly. We get some scope which helps us to make a standard report. Major of them areEnough Time: We have got enough time to prepare a report so that we could gather information with much tension free mind. . Easy access to internet: We have a very smooth access to internet in our computer lab So that we didn’t face any kind of trouble in this sector. Easy Topic: The topic of us was much easier than others. So we don’t feel any problem about our topic. Support from course teacher: Our course teacher gave us everything, we need to solve the case

LIMITATION OF THE REPORT

Every study has some limitations. We faced some usual constraints during the course of our preparation for the report. The major limitations are as follows: Lack of knowledge We don’t have enough knowledge about how to prepare a report. So face some problems by

this side. First hand nervousness Normally we felt little nervousness about preparing report as it is first time.

Lack of experience We have little experience of preparing a report.

CURRENT MARKET SITUATION 9

Ifad Biscuit is a product of Ifad group and industry . Current Market Scenario The market size for Biscuit is around 3000 tons+ per year(Approximate).Olympic Industries is the leading biscuit manufacturer in Bangladesh with some of the most famous and popular brands in the country, such as Energy Plus. Our product, Ifad biscuit is now on the way of distinction. The mission of our marketing is to establish the product as market leader as well as gain 40% of market share within 5 year.

MARKET DESCRIPTION 10

Ifad biscuit is a qualitifull biscuit with some great features Ifad Biscuit offers the following standard features:

 Different

flavors

 Packaged hygienically  Competitive pricing. With all features it has 13 categories of biscuit with different tastes for different age. They are:

Ifad biscuits target segmentation is kids, Chocolate lovers, Young Generation and Diabetic patient. They use most popular models and actors to advertise their product to take their market position. Advertisement is the best way to get the position on the market.

MARKETING ENVIRONMENT 11

Actors & forces of marketing environment consist of micro environment and macro environment. As we are preparing marketing plan of Ifad biscuit Bangladesh so micro environment factors consist of the company, competitors, customers, intermediaries. External forces or environment consists of demographic environment, economic environment, political and natural environment of Bangladesh. This actors & forces influence greatly, marketing strategy of Ifad biscuit. As we targeted the demographic segment, it is very crucial to our marketing plan. But the main truth is “business market is house of competitors”. So we should be much careful.

First year sales revenues are satisfactory. After that we plan to introduce the following features: Good packaging, Use Danish equipment and technology, Production activities and quality control measures are supervised and managed by Danish expert, raw materials are imported from Europe, Steady growth of the organization, Standard pricing, Standard product quality.

PRODUCT REVIEW 12

Ifad Biscuit launched 15 months ago by entrepreneur with experience in the food market. Our first product, Ifad Biscuit offers the following standard features:

 Different

flavors with delicious taste.

 Packaged hygienically with great care.  Use of herbal element

in manufacturing.

 Physician tested.  Competitive pricing. Targeted Segment

Customer Need

Corresponding Feature/Benefit

Kids

•

For kids Ifad have some • Attract the Kids who are indifferent toward biscuits with fancy packaging like foods. Snow Ball, Mango Magic. Ifad also produce cartoon shaped biscuits and very good looking Juicy with two flavors for the kids.

Young Generation

•

For the young people Ifad • Attract produce Macho, Mega, and Single psychologically. Sundae etc. Ifad has introduced a heart shaped biscuits Sweet Heart and it is a very sweet present for some ones’ love.

Young

Generation

Diabetic patient

•

Ifad has the offer of Diabetic • A unique offer for diabetic patients Vanilla, biscuits for diabetic patient.

Chocolate lovers

• For the chocolate lovers Ifad has • A great attraction for chocolate lovers the offer of chocolate flavored biscuit named Ego.

 Goodwill of the company and brand image  Strong distribution network as its product is available in every district and Papilla of Bangladesh.  Continuously launching new and innovative delicacies.

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 Committed to maintain the highest quality standard, through its continuous R&D activities and Quality Control Department.  First year sales revenues are satisfactory. After that we plan to introduce the following features:  Good packaging.  Use Danish equipment and technology.  Production activities and quality control measures are supervised and managed by Danish expert.  Raw materials are imported from Europe.  Steady growth of the organization.  Standard pricing.  Standard product quality.

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COMPETITIVE REVIEW

Increased entry of established brands has pressured industry participants to continually add features and cut prices. Competition from already established brands is also a factor. Key competitors include:

Olympic Biscuit Factory Olympic Biscuit Factory Pvt. Ltd ranks among the top biscuit brands in Bangladesh. The company has 7 manufacturing units of its own and 51 manufacturing units on contract. Accounting for about 30-35% of market shares in the biscuit industry this company is famous for brands like Energy Plus, Tip, Marigold etc. Energy plus has been one of the leading biscuit brands in Bangladesh for the last 1 decade. Energy Plus is reputed to enjoy the most sales among all biscuit brands in the Country. Its biscuits offer a fantastic combination of quality, taste, and nutrition. Olympics’ biscuits are available even in faraway villages.

Competitor Olympic Haque Bongos Fit Horlics Nabisco

Weight 120 gm 130 gm 125 gm 145 gm 130 gm 140 gm

Features Single Flavor Multi Flavor Single Flavor Single Flavor Single Flavor Multi Flavor

Price 15 18 15 32 22 30

At present the company has a 40 percent share of the Bangladeshi market for biscuits. Following are the various brands of biscuits offered by Parle:  Energy Plus  Nimkin 

Krackjack



20-20 Cookies



Monaco-Salted Cracker



Hide & Seek Choco Chips



Top



Hide & Seek Milano



Happy Happy



Hide & Seek Bourbon 15



Hide & Seek Fab



Parle Actifit Digestive Marie



Magic



Tip

Haque Biscuit Industries Ltd Based in Dhaka Haque Biscuit Industries Ltd is reputed as being one of the top biscuit brands in Bangladesh. The company was established long ago and till today has managed to maintain a distinctive position in the Bangladeshi biscuit industry specially with its most popular brand called Mr. Cookies. Haque Biscuit Industries is presently one of the biggest brands in Bangladesh and also the leading food related brand. It is well known for its ground breaking approach towards product manufacturing and marketing. Forbes Global has rated it as one of the Top 200 Small Companies of the World and it is also the second most trusted brand in Bangladesh.

Following are its various brands in the biscuits segment:  Mr. Cookies  Treat 

Butter Cake



Milk Bikis



Tiger



Nutri Choice



Good Day



Time Pass



Bourbon



Little Hearts



50-50



Nice Time



Marie Gold



Digestive

Bongos Biscuit Bongos Biscuit was established during November 1992. Its commercial operations, which included selling and making biscuits under the brand name Grand Choice started during October 1993. Following are the various biscuits and cookies offered by Bongos: 16

 

Grand Choice Glucose V



Chatpatta Jeera and Cashew



Butter Bite



Cheez Bit



Cheese Cracker



CNC



Marie Lite



Snacks Zig Zag



Coconut Crunch



Kids Cream



Classic Cream

Nabisco Biscuit Factory Nabisco Biscuit Factory is especially rural and urban area of Bangladesh. It has a of top class production units at Dhaka. Following are its main products:  Butter Cookies  Dil Khush 

Funfill Choco Vanilla



Dream Lite



Yummy - Milk Cream



E-Time



Tip Top Kajoo Kurkure Masala



Funfill Orange



Coconutty



Funfill Rich Chocolate



Thin Arrowroot



Golmol



Marie



Jadoo



Veg Munch



Marie Time 17



2 in 1



Snackles



Butter Bake



Milk Made



Cream Cracker



Nabisco Glucose

Horlicks Horlicks Biscuits were introduced during 2008 and since then the brand has witnessed increasing popularity. These are liked by both children and parents. Every pack provides 100 percent calcium and the biscuits are available in elaichi and standard flavors.

Fit Biscuit Fit is one of the most recent biscuit brands in Bangladesh. Its products are primarily available in one category. The company is setting up a new plant in Gazipur, which is expected to have a capacity of 5 Hundred tons on a monthly basis. This will be a fully automated plant and is supposed to be one of the very best in its kind in the country. In a recent survey done by Insight, a famous consumer magazine, as per parameters stated by the BIS, the Fit biscuit came first in the category for biscuits.

DISTRIBUTION REVIEW Ifad Multi Product Ltd. will distribute Ifad biscuit through strong distribution Channel. As it is a convenience product by its nature it should be placed in many locations to make them readily available. Information about convenience goods are not deeply enquired by the customers, so the company should rely mostly on mass promotion and widespread distribution. Various distribution channels will be adopted to reach the customer. Generally, we will use the following distribution network to spread our product inside Bangladesh:

Distribution Channels We Will Initially Use

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1. Retailers (grocery) 2. Whole sellers 3.

Agents 4. Confectionery 4. School canteens

Retailers (Groceries): As groceries are mostly widespread business firms and the perfect channel for convenience products, we will highlight this channel largely. By using this particular channel we will try to reach most of our potential and actual customer.

Whole-sellers : whole-sellers must be involved in the distribution process. Most of the times, whole-sellers have a very effective to control retailers buying decision. Using whole seller company can reduce it costs where to reach retailers is costly.

Agents: Agents and company dealers may become an effective distribution channels to link with remote distribution areas. Company advertising and promotional activities can be done through these agents and dealers. The Company will appoint numerous agents and business dealers outside Dhaka to minimize transportation and distribution costs.

Confectionery: Ifad biscuit will use the confectioneries to reach customer as well. Ifad confectioneries will be established to gain the market opportunity throughout the most competitive areas like Dhaka, Chittagong, Khulna etc.

School canteens: A certain portion of our products like Ifad Orange biscuit, Ifad Choco delight, Ifad butter delights etc. are targeted to children. We should use school canteen to introduce our products to the ultimate consumers. Children, our main targets, over the country spend the premium time of the day at school. So, by capturing school canteens as the company’s distribution tools we can reach our consumers more effectively.

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SWOT ANALYSIS SWOT analysis is used to reflect a business firm’s current situations and future possibilities. For Ifad Biscuits, It’s great strength is it’s cost efficiency. The raw materials of Ifad biscuit, Flour is manufactured by IMPL's own flour mill on premises. The greatest weakness of Ifad biscuit is the lack of brand awareness and image. There is a huge opportunity for Ifad biscuit that the demand for cookies and outdoor foods are increasing to the children. The fatal threat the company will face is from it’s competitors.

Strengths The Strengths of a business are the assets and resources that provide it with a competitive advantage or benefit. The traits of the company’s business strength are:

1. Cost Efficiency: Ifad biscuit has an appreciable forward and backward linkage with other products of Ifad Multi Products Ltd. Raw material specially flour needed to produce biscuits is produced in IMPL’s own premises. 2. Value Pricing: The biscuits of the company can be priced less than most other competitors because the raw materials are supplied by the IMPL itself and there are some other related business lie Ifad Atta, Ifad Suji etc. are run by the same company. 20

3. High Performing Employees: Ifad group runs a huge variety of business activities. So they have high performing employees in most of the sectors. By rotating these adept employees in Ifad biscuits the company can make this product production efficient. 4. Variety of Tastes and Flavor: Ifad biscuits have 13 different flavors and tastes. Charger, Butter delights; Choco Delight, Glucose, Orange, jeera etc. are offered in market by Ifad Biscuit. So, having a wide variety will always help he company to reach customers of different choices and tastes. 5. Infrastructure and facilities: As Ifad group Ltd. is an ongoing business organization and Ifad biscuit is it’s new product offerings. The company can allow it’s infrastructure and facilities to this new product.

Weakness The Weaknesses of an Ifad Biscuit are the deficiencies that compromise its ability to achieve its goals. There are some certain weaknesses of the company that can be very fatal if no steps are taken to minimize them. The weaknesses are:

1. Lack of Brand Awareness: The company’s largest weakness is the lack of it’s brand awareness. Ifad biscuit is a new offering in market and no great promotional action is taken so far for the product has created this lacking. Customer’s knowledge about this product is not adequate. On the other hand, competitors like Haque and Nabisco have strong brand image. 2. Product Limitations: As the company prefers to be cost efficient, some obvious limitations arise from the production system. Ifad biscuit concedes some competitive disadvantages in adding flavors and using imported ingredients while the competitor groups have better flavors, attractive taste and quality. The products are yet to be familiar with children, company’s target segment. 3. Depending on own materials: Ifad Biscuit mostly depends on the raw materials produced from Ifad multi products Limited and if there is a fall in producing it’s base ingredients Ifad biscuit will surely face a huge shortfall in biscuit production. 4. Lack of clear product differentiation compared with the competitors: Though the company claims a lot of differences among it’s and it’s competitor’s product, there is actually no clear differences among the products to the customers. Customers usually differentiate the cookies and biscuits depending on their tastes. So, the firm faces the lack of differentiation between the products of same product producing domestic firms.

Opportunities 1. Increasing demand: The demand for cookie and cookie-like products increases on and on. Due to the change in life-style parents gradually make their children to rely on cookies rather than home-made snacks. this change in life-style and children’s choice is a huge opportunity for our products in future markets. 2. Targeting fast-growing demographic segment: Ifad biscuit targets it’s product to children who are the fast growing demographic segments. The target segmentation loves sweets and there is an opportunity to add more flavors that the children like. 21

3. Increasing health awareness: people’s awareness of health is increasing very rapidly. People, nowadays, are more conscious about balanced diet and nutrition. The products can be proven an excellent source of daily nourishment to customers if proper promotional activities are taken.

Threats Reviewing the company’s future and current situations, It can be determined that our largest threat is from our competitor’s group. By monitoring current market situations, the threats company has found:

1. Increasing pressure from competitors group: The business of biscuits and cookies are so widespread that market is full of competitors. Among the competitors, some business firms really have mighty standing in this business. New competitors are ever increasing the pressure as numerous biscuit producing firms are entering the market. 2. Increasing Cost: Bangladesh is now facing a continuous price-hike. So production costs, administrative costs, selling and distribution costs are increasing and company finds it harder to continue production in minimum costs. The increasing cost of production is a very fatal possible threat. 3. Lack of specialized products: Today’s world is world of specialization, but unfortunately the company offering gross biscuits with no specialization. While the other firms are offering fatfree products, Nutrition products, Energy Products etc. without some sort of specialization the company cannot dominate some special areas of business. The lack of product specialization.

The overall SWOT analysis summery is given below in the following chart:

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OBJECTIVE

Ifad group has been very successful with its Noodles-stick & instant, drinking water, Flour, attar & suit products. Now is the time to become more competitive in other areas by becoming more attractive to potential customers. Ifad group now plans to focus on better-for-you-products with less marketing to children. Since the weight loss trend is targeting more awareness of fat intake, instead of low fat products, we are choosing to shift some of our weight towards the fat free market. The Ifad Biscuit will help broaden our marketability in the cookie industry.

Projected Goals • • •

Gaining new customers who are watching and trying to lose weight by lowering their fat intake. Introduce the Ifad Biscuit in July of 2013. Establish OREO as one of the leading fat free snacks on the market.

Financial Objectives •

Increase sales by selling 5 million bags of the Ifad Biscuits. 23

• •

Increase sales by marketing the Ifad Biscuit product to women ages 18-45. Sales goals- increasing OREO sales by 15 percent with the Ifad Biscuits for the 2013year.

Marketing Objectives • • •

Targeting people who are on strict diets like Weight Watchers. Promoting the Ifad Biscuit packaging by using new colors & designs to help it stand out against other products. Promoting a healthier product to health conscious consumers.

Marketing Strategy / Tactics Our marketing strategy is based on positioning of product differentiation. Our primary customer target is women ages 18-45 and our secondary customer target is people above 45 years old. To reach our target audience, which consists of health conscious educated women ages 18-45, our campaign will focus on reach rather than frequency. This segment is based on demographic segmentation. With and unlimited budget, we believe that running advertisements in magazines and TV will effectively reach our target audience. We will supplement the campaign with consumer promotions.

Magazines We will run advertisements in five major magazines throughout the country. These magazines include Anondo, Campus, Onno alo. These magazines were chosen because of the diverse group of women they can reach. These magazines are chosen because their audience has the same demographics and psychographics as our campaign. These magazines has health conscious suggestion for women in the country

Television Television spots for broadcast and cable networks will appear throughout the country on various stations to reach our target. These networks include ABC, CBS, NBC, FOX, TLC, Lifetime, Oxygen, and MTV. ABC, CBS, NBC, and FOX were chosen because they are the most popular networks. Advertisements promoting our new product will appear on these networks during the morning and evening news, daytime television, and prime time. The daytime television advertisements will be run during “Oprah”, “Days of our Lives”, and “Dr. Phil.” “Oprah” is a television show directly targeted towards women.

Positioning Using product differentiation ifad group is going to position itself as one of the first to create fat free snacks. Although Ifad group already have some products on the market. It wants to broaden their target market by reaching to an entirely new audience they have not been able to accommodate in the past. We hope to maintain our current reputation with our current consumers while creating a new favorable reputation with our new target audience. Ifad’s position on the Ifad Biscuit is that it allows women to abide to their low fat diet without depriving themselves of sweet snacks. Essentially, our products allow low fat dieters to “cheat” on their diets without feeling guilty afterwards.

Packaging the packaging for the Ifad Biscuit will be red and blue to promote a fresher image to our already successful brand of other products. We chose the color red because it triggers the thought of a healthy lifestyle. We chose the keep the color blue in honor of the other products of Ifad group, but added the red color to distinguish the new fat free product from the other products of competitors. We also plan to include a zip lock seal on the package to lock in the freshness for a longer period of time.

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PRODUCT STRATEGY

Ifad Biscuit including all the features described in the earlier product review section will be sold . The product has all the quality to satisfy the target customers. Building the Ifad brand is an integral part of our product strategy. The Brand and logo will be displayed on the packaging and reinforced by its prominence in the introductory marketing campaign.

Pricing strategy Ifad group introduces Ifad Biscuit with a price TK 50 wholesale/ retail price TK 65. Ifad group wants to obtain market share leadership. To become the market share leader, the firm sets prices as low as possible to penetrate the market to attract the large number of buyers.. But it also wants to maintain the quality and to achieve the product quality leadership in future. So it maintains the adequate quality of the Ifad Biscuit product.

Distribution strategy As Ifad Group launches Ifad Biscuit which is one kind of convenience product, It seeks Incentive distribution. The country wide extended over number of 250 dealers distribution network is one of the key strength of the group. The entire sales of the Company and the Group as a whole are controlled by the corporate sales office of the Group. In order to smooth operation the Company recently open 2 depot outside of Dhaka located at Bogra and Faridpur.

Communication Strategy Consumers are extremely health conscious today and we want them to know it is possible to abide by their diets without depriving themselves of the sweet delicacies they crave. This is the message we will convey to our target market. In order to reach our audience, we market our new product through print, electronic, and outdoor advertisements.

Press Release The first step in communicating with the public would be to send out a press release explaining our new product and when distribution will begin. Press releases and media kits would be sent to food retailers, editors of Food & Science, as well as the editors for magazines we plan to advertise in. Finally, there would be a contact name and number for more information.

Public Relations For our Public Relations efforts, we will sponsor a fundraiser for the Susan G. Women Breast Cancer Foundation. Ifad group will donate 25 cents for every package sold in the first two years after the Ifad Biscuit’s introduction. Ads will be placed in all of the selected magazines. We chose this foundation since 99 percent of people diagnosed with breast cancer are women. Since women are our target audience, we wanted to choose a foundation they felt strongly about and could relate with. 26

Print Media One form of media we would use would be through magazine advertisements. The advertisements would be placed in magazines that are directed towards the same demographics of our target audience. Magazines have longer shelf life and are, therefore, a consistent reminder of our product and its benefits each time the magazine is read through.

Electronic Media Another form of media we would use would be through television and our website. Although it is the most expensive form, it is also most effective. Television commercials are the fastest and easiest way to reach our target audience. Advertisements will run during programs that are watched by those with the same demographics as our target. Our website will feature information about all of our products, particularly the Ifad Biscuit.

Marketing research Using research we are identifying the specific features and benefits that our target market segments value. Feedback from market tests, surveys and focus groups will help us develop the Ifad fat free biscuit. We are also measuring and analyzing customer’s attitude toward competing brands and products. Brand awareness research will help us determine the effectiveness and efficiency of our message and media. Finally we will use customer satisfaction studies to gauge market reaction.

ACTION PROGRAMS 27

We will introduce Ifad Biscuit in August. To achieve our stated goal we will use the following actions during the first six months of next year.

July We will launch a tk 1000000 promotion campaign and exhibit at the major industry trade shows to educate dealers and generate channel support for the product launch in August. Also we will create buzz by providing sample to selected product reviewers, option leaders and celebrities.

August An integrated print/ radio/ television/ internet campaign will be started targeting professionals and consumers. The campaign will show the benefits that can consumers have by having Ifad Biscuit.

September The multimedia advertising continuing, we will add consumer sales promotion e.g. contest where the consumers will express their thoughts about our product.

October A trade sales contest will be held offering prizes for the salesperson and retail organization that sells the most of our product during the four week period.

November In this month the radio or television advertisements will feature celebrity voices telling their experiences after using our product. The stylized print and online ads will also feature the celebrities holding our products.

December In this month we will tally and analyze the results of customer satisfaction surveys for use in future promotions and to provide feedback for product and marketing activities.

BUDGETS 28

Total first year sales revenue for from our product is projected at tk.30000000 with an average wholesale price of tk.60 per unit and variable cost of tk35 per unit for a unit sales volume of 500000. We anticipate a first year loss of up to tk 2000000 on our product. Break even calculation indicates that Ifad biscuit will be profitable after the sales volume exceeds 800000, early in the products second year. We assume per unit wholesale revenue tk60 per unit, variable cost of tk35 per unit and estimated first year fixed cost of tk.15000000.

CONTROLS In order to evaluate and monitor the public’s opinion on Ifad Biscuit, we will be distributing Consumer Surveys. These will help provide us with the necessary feedback in determining the strengths and weaknesses of our product, along with any modifications that are necessary. Sampling stations will be set up throughout food retailers, allowing consumers to taste our new product. The demonstrator will distribute the surveys to the samplers, explaining that they will receive a coupon for a discount if they complete and turn in the survey. We hope this incentive will encourage consumers to take a few minutes and fill out the survey. In addition, surveys can be located on the website, inside packages of our new product. All completed surveys will be rewarded with and incentive of tk 2 coupon for the next package of Ifad Biscuit purchased. It will cost tk.2000000 to develop the formula for the Ifad Biscuit. There is an increase cost of production of around tk20 per package. The majority of this difference is due to more expensive ingredients. We are projecting first year sales to be around 5 million packages with most of those being sold in the second half of the year. The reason that we are expecting greater sales in the second half of the year is that once the product hits the shelves, it will take time for all the consumers to hear about the new product. They are expecting sales to increase in the second year by 3 million packages for a total of 8 million packages. The reason for the increase in sales is that by next year all s tores should be carrying the Ifad Biscuit and through our aggressive marketing campaign most people would have heard about the Ifad Biscuit and they will desire to buy the product. By the end of the year we f o r e c a s t t h a t t h e I f a d B i s c u i t w o u l d h a v e s o l d e n o u g h packages to earn a profit.

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