Silk Soap Industries Ltd. Marketing Plan Letter of Transmittal To Course Teacher Faculty of Business ASA UNIVERSITY BANGLADESH. SUB: – Application for Term paper on Marketing Plan. Dear Madam I am the students of” Marketing Management” course; here I would like to present you Term paper on “Marketing Plan” of Silk Soap. I am really appreciated by you for that this sort of term paper you give me.
To prepare this marketing plan i endeavor to follow your instruction and i also tried to provide information about my plan, I want to state that this sort of term paper is Helping, gathering preconception before entering my Career life about Marketing Plan. I hope that within a very short time i enrich my Term paper in much depot knowledge with great devotion. Thank you for your kind co-operation and time. Sincerely yours, Acknowledgement First of all I would like to show my gratitude to almighty Allah for kindness to me make the job done without any hesitation.
Then i would like to give thanks my honorable maim Husna Ara, her kind appearance and instruction in every problem make me capable to preparing this term paper successfully. Table of Content Title| Page| Executive summary | 06| Chapter-1(Introduction)| 07| 1. 1 Organization Description | 10| 1. 2 product description| 13| Chapter-2( Situation Analysis)| 15| 2. 1 Competitor analysis| 16| 2. 2 Distribution channel| 18| 2. 3 Market share| 19| Chapter-3(SWOT Analysis)| 20| 3. 1 strength | 21| 3. 2 Weakness| 21| 3. 3 Opportunity | 22| 3. Threats| 22| Chapter-4( marketing Strategy)| 23| 4. 1 Target marketing| 24| 4. 2 Market segmentation | 24| 4. 3 pricing | 26| 4. 4 Distribution| 27| 4. 5 Positioning | 27| 4. 6 Marketing communication| 28| 4. 7 Product management| 29| 4. 8 Marketing research | 29| 4. 9 Promotion| 30| Chapter-5(Action Program) | 31| Chapter-6(Financial projection/Analysis) | 34| Chapter-7( Implementation) | 39| Chapter-8( appendix part)| 40| Chapter-9( Conclusion)| 43| Chapter-10( Reference )| 44|
Executive Summary In Bangladesh soap manufacturing business is now in maturity stage. At present time many companies are producing soap. That is why we have so many competitors. I have learnt about various weakness and limitations from data that I have collected from many companies. So i decided to set up a soap industry by overcoming these limitations and weaknesses. my ultimate goal is capture the market as within 5 years by providing superior value to the customer at reasonable price and will be able to build strong brand image.
However I have a plan to enter domestic market and subsequently the international market with its own brand once it has stabilized its procurement base, production process and quality of product and generated enough financial resources. I financed my business both equity and debt financing (60:40). And i manufacture two types of soap. Fairness and Anti-bacterial soap these two types of soap I will manufacture. Both the soap weighs differently. The fairness soap is 120 gm and the Anti-bacterial soap is 100 gm both the soap will be manufactured in the usual methods.
I will use a systematic distribution channel by which will be able to reach my target customers and also will follow different marketing strategy to capture the market. But first one or two I may face loss due to my new in the market and also I have to launch huge promotional activities to attract my target customers. Finally I will implement my plan and periodically it will review and new strategy will adopt over the time due to continuing the product development process. Chapter – 1 Introduction I. Origin of the Report:
This marketing plan was assigned by Husna Ara, lecturer and course instructor of MKT-331 (Marketing Management) as an individual assignment on April, 25, 2011. As instructed, this plan is about the analysis Marketing plan of a particular company and after evaluating different possibilities the researchers have chosen to do the marketing plan ‘Silk soap Industries ltd. II. Objective of the study: The purpose of doing this report is to fulfill the requirement of the course Marketing Management (MKT-331) as it is compulsory to submit this Assignment.
By doing this marketing plan it will enable the researchers to implement the knowledge gained by doing this course in a more practical manner. III. Scope: As the topic of the assignment suggests would focus on the different types of marketing efforts and activities of Silk soap industries ltd. It should be mentioned here that this Assignment has been prepared in the context of Bangladeshi market and different segmentations and promotional activities analyzed in this report are solely based on the Bangladeshi consumers’ perspective. IV. Limitations: A lack of written material to collaborate with my findings also posed of a source limitations.
Time constraint and lack of raw materials won’t allow us to delve deeper into my assignment. None the less i will try to give my best to make this Assignment a good one and despite of many limitations in my approach, I expect that the reader of this assignment will have broader view and idea about impact and practice of marketing and sales activities of this new soap industry. V. Methodology: The assignment has been prepared in a very constructive and methodological manner. The assignment not only focused on describing different Marketing strategy, it is also somewhat analytic. Primary Source of Information:
The primary information will be obtained from observation and discussion. Secondary Source of Information: The secondary information will be collected from internet, books etc. 1. 1 Organization Description Silk soap industries ltd. Founded : – 2011| Headquarters : – Celebration Point, Road # 113 A, Plot 8 & 9, Gulshan, Dhaka, Bangladesh | Key people:- CEO(Mahfuzur Rahman)| Industry:- Consumer goods| Products: – Anti-bacterial & fairness soapEmployees: – 205Factory: – Marta, gazipur Slogan : – Feel the new sense Website: – www. Silksoapbd. com. Mission: -The mission of my company is to achieve my vision.
My mission is that to identify the target market and perform according to the identifying needs and consumer’s satisfaction. Vision: -Silk soap industry Ltd. is a soap manufacturing company. My company main philosophy is to ensure the whole society fair, beauty and health safety. And create goodwill in the society. Goal: -My company goal is consumer’s satisfaction earning Goodwill to the consumer’s and I will spread my market internationally within 6 years. Objectives:To achieve the goal I will produce yearly 19, 75,000 fairness soaps and yearly 18, 50,000 health soaps.
The objectives of my soap industry are as follows: * Ensuring better quality. * Ensuring proper compensation to the employees. * Ensuring good working condition. * Ensuring interpersonal relations. To accomplish my objectives as I have mentioned above, I will correct the opinion from the customers, wholesalers and retailers by providing an opinion book. | | Board Of Director:| | Chairman Managing Director Head of Marketing & Sales dept. Head of Finance & Accounting dept. Head of HRM dept. Head of Production dept. General Manager General Manager General Manager General Manager Deputy Deputy Deputy Deputy
Executive Executive Executive Executive Figure: – managerial Hierarchy 1. 2 Product Description A product consists of all the tangible and intangible (goods, service or idea) characteristics provided in an exchange between a seller and a buyer. People buy product for the benefits and satisfaction it gives. There are two kinds of products, which used by organizations in producing goods and services or in carrying out their operations are industrial products. Products Items:- My Company product is soap and I will manufacture two types of soaps. Fairness and Anti-bacterial soap these two types of soaps I will manufacture.
Both the soaps weights differently. The fairness soap is 120 gm and the Anti-bacterial soap is 100 gm both the soaps will be manufactured in the usual methods. * FAIRNESS SOAP: Every woman wants to be looking beautiful. In Bangladesh and sub-continent every woman wants to be fair. It is a psychological advantage of this product. Now in the market just two types of fairness soaps are available. But those entire products prices are very high. Our product will available in standard price. So it can use all class. But our main target is High middle and High-class family. We are looking for good quality not high profit.
We hope this soap will be the best soap for beauty seeking women. Include in Fairness Soap: Name: LOREN fairness soap. Target market: women (every women wants to be looking beautiful and fairness) Net Weight: 120 gm Price: TK 17. 00 Element: Aqua, Plamitie Acid, Stearie Acid, Potassium hydroxide, Lauric Acid, PEG-7 glyceryl Cocoate, PEG-150-Distearate, Methyl Paraben, Licorice Extract, Aloe Vera Gel, Vitamin B3, Vitamin C150, and Fragrance. * EXITE ANTI-BACTERIAL SOAP: Anti-bacterial makes for all persons of any age. So, its market is larger than Fairness soap. Every person is my target. Male, female and children can use this soap.
It is an international standard soap. People who are conscious for their health, my anti-bacterial soap are for them. So my main target is the cities of the country. Include in Anti-bacterial Soap: Name: EXIT anti-bacterial soap. Target market: For all persons of any age Net-Weight: 100 gm Price: TK 14. 00 Element: Active B Protection, Sodium Cocoyl Isenthionate, Stearic Acid, Sodium Tallowate, Aqua, Sodium Stearate, Perfume, Sodium Plam, Tri-sodium EDTA, Zinc Stearate, Aloe Vera Gel, and TFM 63%. Chapter – 2 Situation Analysis 2. 1 COMPETITOR ANALYSIS Now a day the business strategy is changed.
There are lots of competitors in the market for the same product. My Silk Soap Industry will produce two types of soaps, Fairness soap and Anti-bacterial soap. To survive in the market each company have to face a challenging competition between each other. So that knowing about the competitors is very important developing business strategies. Competitor’s Product:- Fairness Soap: 1. Name: Fair & Lovely fairness soap[Made by fair & lovely Cosmetics Limited] Net Weight: 150 gm Price: 35 TK. Main Element: Vitamin B3, TFM 73%, GR 2. 2. Name: Lily Soap [Made by Lily Cosmetics Limited] Net Weight: 90 gm
Price: TK. 15. 00 Main Element: Vegetable fat 100%, milk cream with vitamin E, Herbal Extract, Glycerin. 3. Name: Keya [Made by Keya Cosmetics Limited] Net Weight: 90 gm Price: TK. 14. 00 Main Element: Vitamin E, Moisture Rich Nutrients, Jojoba Oil, Jasmine Fragrance and TFM 80% 4. Name: Lux [Made by Unilever Bangladesh Limited] Net Weight: 135 gm Price: TK. 20. 00 Main Element: Herbal Extracts, Rose Extracts with milk cream, TFM 76%, Grade I. Anti-Bacterial Soap: 1. Name: Lifebuoy Gold Net Weight: 100 gm Price: TK 15. 00 Assessment: Rate is high as weight. 2. Name: Dettol Soap Net Weight: 95 gm Price: Tk 14. 00
Assessment: Does not contain well flavor. 3. Name: Savlon Soap Net Weight: 100 gm Price: TK 15. 00 Assessment: Rate is high but does not contain well flavor. 2. 2 Distribution Channel To marketed my products to the targeted customers. My channel will be like follows: Manufacturer Wholesaler Jobber Retailers Consumers * Manufacturer: Silk soap industry is the manufacturer of Loren Fairness soap and Exit-antibacterial soap. So soaps will be distributed from its production plant to wholesalers directly. * Wholesaler: I will have six authorized wholesaler, as the agents in the each divisional cities to where I will offer my products.
These wholesalers will represent my products with the help of different retailer and also advertise, store, distribute and do other promotional activities as well. * Jobber: Under the each authorized wholesalers, I will have around 15-20 jobbers to each divisional wholesaler, who will act as the sub- agents of the wholesaler and influence the market and retailers to use and present the product. These jobbers will be appointed on commission basis. * Retailers: My retailers will actually offer my products to the actual and potential customers. They will collect the soaps from the wholesaler and marketed them frequently.
In each and every public places like market, and near the commercial areas, I will have retailer’s shop and outlets so that they can easily collect my product and use it. By this way I will reach to the customers. * Consumers: At the final level of the process come the consumers who will consume my products. They are the target customers for my company and reaching them, should be my main goal in order to market my products. They will give the final and overall feedback of my products and according to their demands the company must set their objectives and strategies. 2. 3 Market Share
This is the new company in Bangladesh my company position in the investor’s mind will be slightly difficult but over the time I will be able to build up a unique and strong brand image in publics minds, that will be helps my company to attract the investors and capture the market share at good percentage. my goal is, within 5 years I will be able to targeted area. According to my projection I will capture: 22% of the target market share within 2 years 45% of the target market share within 4 years 65% of the target market share within 5 years or more. Chapter – 3 “SWOT” ANALYSIS 3. 1 Strengths It provides better quality and more quantity than any other brand in the market with a very eye-catching brand name and package. * It has sufficient manufacturing plant with the capacity to meet the demand. * Strong, Skilled, Professional & Dedicated Manpower; * Strong Administration * Latest, Modern & High Qualified Machinery * R&D will have Done Regularly * The Decisions will make into Action without Any Delay * We are offering the affordable price than other competitor’s firm * No side effect of our product. 3. 2 Weaknesses * Lack of much experience * Needs more time to research on consumer behaviors We need to follow more different marketing strategies for different demographical situation * Loren fairness soap is mainly made for female * Lack of brand Establishments. 3. 3 Opportunities * Approved by Bangladesh Standard Testing Institute (BSTI) * Certified by London Soap Research Institute (LSRI) * Huge Demand for quality fairness and anti-bacterial soap. * The market is large in this business. * Chance of introduce it in rural market & export it in international market in future. 3. 4Threats * Political Instability * Highly competitive market * Govt. duty & fees * Availability of quality & low priced raw materials Upcoming competitors * Taste of consumers changes rapidly Chapter – 4 “Marketing strategy” 4. 1 Target Market Silk Soap Industry ltd. has different types of target market. My company produces two types of soap, our target markets are also different:- FAIRNESS SOAP: Every woman wants to be looking beautiful. In Bangladesh and sub-continent every woman wants to be fair. It is a psychological advantage of this product. Now in the market just two types of fairness soaps are available. But those entire products prices are very high. Our product will available in standard price. So it can use all class.
But my comany main target is High middle and High-class family. My company looking for good quality but not high profit. I hope this soap will be the best soap for beauty seeking women. ANTI-BACTERIAL SOAP: EXIT anti-bacterial makes for all person of any age. So, its market is larger than Fairness soap. Every person is my company target. Male, female and children can use this soap. It is an international standard soap. Peoples who are conscious for their health, our anti-bacterial soap are for them. So my company’s main target is the cities of the country. 4. 2 Market Segmentation “Silk Soap Industry” expects large number of target markets.
So, I have segmented our total market into different segments. We divided our target markets two different segments. First, Geographic and second is Demographic segmentation strategy. Geographic segmentation: In the first time I will introduce my soaps in Bangladesh. I reached my company products every cities and district of the country. As my company produce international standard soap and will export my company products in different countries. Demographic segmentation: From the segmentation strategy we have segmented the market as following. LOREN Fairness soap Age: Especially made for female. From 15-30 years.
Gender: Specially made for female skin; also male can use. Income range: my company soap is for the high middle class and high-class people. But our rate is not high from the other. Occupation: Generally College and Universities women’s will use our soap widely. EXIT Anti-Bacterial Soap Age: For all Gender: Male and Female Use: EXIT soap is content anti-bacterial formula. So home and office everywhere people can use this soap for protection. Occupation: all of them 4. 3 Pricing Basically, a price needs to review four factors to arrive at a price: pricing objectives, cost, competition and demand.
Along with company pricing objectives, cost, and demand we will give emphasis on competitor’s price while setting our one. As fairness and anti-bacterial soap market in our country comprising a large number of active firms like lux, Tibbet and meril, Keya,sandalina etc. ,the competition is fierce. On the other hand, among the two principal pricing strategies, skimming and penetration, company are going to adopt penetrating pricing that means our products price will be relatively low during the initial stage to penetrate the market quickly and deeply in order to attract a large number of buyers quickly and win a large market share.
High price elasticity of demand of the beauty and fairness cream is another reason why we are adopting penetration strategy. Internal Factors * Marketing mix strategy * Marketing objectives * Marketing costing * Organizational consideration. Price decision External Factors * Competitors price * Market and demand * Environmental factors * Economic factors Product| Price (In Taka)| Loren fairness soap (120 gm)| 17| Exit anti-bacterial soap (100 gm)| 14| 4. 4 Distribution Distribution strategies are concerned with the flow of goods and services from manufacturers to customers.
My company going to use indirect distribution channels means our distribution process will involve the use of different intermediaries such as wholesalers and retailers to reach the optimal number of customers in a timely manner at the lowest possible cost while maintaining the desired degree of control. Company channel strategy is to use intensive distribution to have company product Loren fairness Soap and Exit anti-bacterial soap sold through each and every retailer stores of the country. Time to time we will also evaluate our channel-members based on their performance and will modify the process if needed.
To resolve any kind of conflict, if arise, we will nominate any of company employee to act as a diplomat among channel members. We will also welcome the frequent formal interaction with the channel members to develop an appreciation of each other’s perspectives. And all distribution activities will be conducted according to our distribution channel. 4. 5 Positioning Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the target market’s mind. Such as create lots of awareness about the product.
I have to position of company brand “Loren fairness and Exit anti-bacterial soap” by the desire of the target consumer: “Loren fairness and Exit anti-bacterial soap” is a brand which is different from another fairness and anti-bacterial product. In the positioning stage I am thinking about value proposition. Value proposition is the way where I reflect the core things what I will provide as per as the desire of the target consumer. So the positioning should be such where the core things will be reflected. 4. 6 Marketing Communication
Silk soap industry will use personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships. Integrated marketing communications will help the Company to produce better communications consistency and greater sales impact. This company will reinforce the brand name and the main points of product differentiation, specially our exclusive varieties of flavor by integrating all messages in all media. Research about media communication patterns will help Loren and Exit soap’s advertising agency choose appropriate media and timing to reach prospects before and during product introduction.
There, after advertising will maintain brand awareness and communication various differentiation messages. It leads to a total marketing communication strategy aimed at showing how the company and its products can help customers solve their problem. To attract, retain and motivate channel partners for a push strategy. It will also use trade sales promotion to channel partners. 4. 7 Product Management A product consists of all the tangible and intangible (goods, service or idea) characteristics provided in an exchange between a seller and a buyer. People buy product for the benefits and satisfaction it gives.
There are four kinds of products, which used by organizations in producing goods and services or in carrying out their operations are industrial products. Specific items: my product is soap and I will manufacturing two types of soap. Fairness and Beauty these two types of soap we are manufacturing. Both the soap weighs differently. The fairness soap is 120 gm and the beauty soap is 100 gm both the soap will be manufactured in the usual methods. Production methods: The production methods include what would be the cost of an individual soap. The cost includes labor cost, machinery cost, raw materials and some other elated costs. Stages of development of the products: New products are vital for a firm’s long-term success. Developing new products with high growth potential is no simple task. Around 1,000 new products are brought to the marketplace each year in our country, but many of them fail. So our products will be developing from the beginning stage Business that fails to develop new products may limit their potential for growth and eventually become vulnerable to competitors. I have considered a new product to be one that a particular firm offers for the first time, whether or not similar products exist in the marketplace.
So our products will compare will the competitors from the beginning and we will emphasize specially in quality. I will also emphasize on pricing. 4. 8 Promotion I will choose most effective media with reasonable cost for advertisement. We will prefer- Banner:- It will be effective for informing peoples about my company soap. I will set banners in front of markets and other public places, where a large number of peoples will be able to know about my company soap. Newspaper/ Magazine: – I will publish my company advertisement regularly to the newspaper, and four days in a month to the magazine.
Before any occasion I will use expensive portion of newspaper for advertising purpose. Broadcast Media: – I will broadcast about my company products in radio, and television. I will provide all of information in theInternet. Signs: I will give my company products information on the store of the towns and cities. I will use billboards on the side of the road and through ad on the cabs of the cities. I will give sponsors of the Charity programs, Cricket matches, and fashion shows. I will also take part in the Trade shows, like Dhaka International Trade Fair, Chittagong International Trade Fair, and
Khulna International Trade Fair. That will be very helpful to reach our product to the consumers. And these way consumers will be able to know about our products quality. 4. 9 Marketing Research By conducting research Silk soap Industry has identified the specific features and benefits that the target market segments value. Feedback from market tests, surveys, and focus groups will be helped to develop the product. Silk soap Industry is also measuring and analyzing customer attitudes towards competing brands and products.
Brand awareness research will help us determine the effectiveness and efficiency of our messages and media. Finally, This Company will use customer satisfaction studies to gauge market reaction. Chapter – 5 Action Program Following are summary of the action programs I will use during the first six months of next year to achieve our stated objectives. JANUARY: In first week on January I will make an announcement on TV & Internet for the people, “A new Fairness soap is coming soon only for ladies &anti-bacterial soap for all. ” The announcement will continue till second week.
In third week I will give another announcement “Girls Do you want soft and fair skin? A Fairness soap is coming soon only for you” and it will continue to end of January. At this time I will shoot my company first visual advertisement with a famous celebrity. We will begin Tk. 10, 00,000 trade sales promotion campaign to educate dealers, consumers & create excitement for the product. I will train some people about the product and make some groups, who will go beauty parlors and markets for the promotion. They will educate the beauty parlors workers and keep contact with the dealers. FEBRUARY:
In first and second week of February before launching the product on 14th Feb, I will give some voluntary product on beauty parlors, colleges and universities. In this time I will educate my company print and media partner about the product. I will start an integrated print, radio and internet campaign targeting the dealers and consumers. The campaign will show how the fairness Soap to glow the skin in quick time of period without any side effect on skin and also show how anti-bacterial soap remove bacteria within 10 seconds from body, better and quicker than any other fairness soap available in the market.
In first week of February I will show my company first visual advertisement on TV, radio and internet. On 14th February I will arrange the launching party in a five star hotel. As the day is the “Valentine Day” I will arrange a beauty contest. I will find “Miss Valentine” from the launching party and I will give her a crown and price money and one year free contract of the product. MARCH: In March we will continue our multimedia advertising. We will Chose one or two famous female model or TV or movie actress, and bring them under the roof of our product, who will do promotion for the product.
At the end of the month we will do a newspaper contest to know how our product is accepted to our consumers. We will ask “Why you like the product” write your opinion in hundred words and give a packet of the product and 100 lucky winners will get one year free product. APRIL In first week of April i will give the prize of the newspaper contest. In the middle of the April I will try to get title sponsorship of beauty contests like “Miss Bangladesh” If it is not possible I will start a beauty contest on any of the popular TV channel. The contest will continue whole April MAY:
In the end of the may I will End Company contest and give the prize to the winners. I will give them money and one year free product. I will give the first winner crown and bring her under the roof of company product. I will continue company advertising on print and television. JUNE: In June I will give company consumers some benefits to increase the sale again. I will give them offer like “If you buy a Loren fairness soap and Exit anti bacterial soap, you will get Silk mini pack shampoo free. I will do an attractive advertisement with the winner of the beauty contest.
In addition, I will mark & analyze the consequences of consumer satisfaction by surveys for future promotions & getting feedback of product. In the end of the June I will plan to produce a new version of the products with different features & flavors. Chapter – 6 Financial projection/ Analysis I have projected to sale 80, 50,000 taka in the first year of my company operation with an average whole sale price of 16. 10 taka per unit taking 110 gm as base. Particulars| Amount (Taka)| Projected First Year Sales -| 80,50,000| Projected First Year Sales in unit| 5,00,000|
Variable Cost| 45,00,000| Fixed cost| 47,00,000| Variable cost per unit| 45,00,000/5,00,000 | Per Unit Whole Sale Price| 16. 10| * Unit Cost = (Variable Cost + Fixed Cost) / Unit Sales = (4500000 + 4700000) / 500000 = 14000000 / 500000 = 18. 4 We intended to earn a 13 percent mark up on sales. * Mark up Price = unit cost / (1 – Desired Return on Sales) = 18. 4 / (1 – . 13) = 21. 14 = 21 Tk * Break Even = Fixed cost / (per unit sales price – per unit variable cost) = 4700000 / (16. 10– 9) = 661972 units Financial projection/Analysis for Loren fairness soap:
Year | | 2011| 2012| 2013| 2014| | | | | | | Expected Market Share| | 22%| 32%| 45%| 65%| Per Unit Price| | Tk 17| Tk 17| Tk 17| Tk 17| Expected No. Of Packets Sold| | 5,000,000| 7000000| 92000000| 11000000| Sales Revenue| | 300,000,000| 420,000,000| 5,520,000,000| 660,000,000| (-) Goods Purchase| | 174,250,000| 177,250,000| 181,250,000| 186,250,000| (-) Import Duty/ Tariff (2%)| | 3,485,000| 3,545,000| 3,625,000| 3,725,000| Gross Margin| | 122,265,000| 239,205,000| 5,335,125,000| 470,025,000| (-) Expenses:| | | | | | Selling & Admin. Expenses| | | | | |
Salaries & Wages| | 1,050,000| 1,050,000| 1,050,000| 1,050,000| Rent Expenses| | 500,000| 500,000| 500,000| 500,000| Utilities| | 110,000| 110,000| 110,000| 110,000| Sales Commission (1%)| | 3,000,000| 4,200,000| 55,200,000| 6,600,000| Transport & Distribution| | 5,000,000| 5,000,000| 5,000,000| 5,000,000| Insurance Premium| | 10,000,000| 10,000,000| 10,000,000| 10,000,000| Interest on Bank Loan| | 4,000,000| 4,000,000| 4,000,000| 4,000,000| Advertisement:| | | | | | Newspaper Ad. | | 4,000,000| 6,000,000| 8,000,000| 10,000,000| Television Ad. | 22,000,000| 42,000,000| 62,000,000| 82,000,000| Billboards and Neon Signs| | 7,000,000| 12,000,000| 17,000,000| 22,000,000| Vehicle Ad. | | 7,000,000| 9,000,000| 11,000,000| 13,000,000| Mobile Team/ Meeting| | 600,000| 800,000| 1,000,000| 1,200,000| Total Selling & Admin. | | 64,260,000| 94,660,000| 174,860,000| 155,460,000| Net operating Income before tax| | 58,005,000| 144,545,000| 5,160,265,000| 314,565,000| (-) Income Tax (10%)| | 5,800,500| 14,454,500| 516,026,500| 31,456,500| Net operating Income after tax| | 25,00,000| 30,00,000| 50,00,000| 70,00,000|
Financial Projection for Exit Anti-bacterial Soap: Year| | 2011| 2012| 2013| 2014| | | | | | | Expected Market Share| | 22%| 32%| 45%| 65%| Per Unit Price| | Tk 14| Tk 14| Tk 14| Tk 14| Expected No. Of Packets Sold| | 3,200,000| 5500000| 8000000| 8000000| Sales Revenue| | 192,000,000| 330,000,000| 480,000,000| 480,000,000| (-) Goods Purchase| | 174,250,000| 177,250,000| 181,250,000| 186,250,000| (-) Import Duty/ Tariff (2%)| | 3,485,000| 3,545,000| 3,625,000| 3,725,000| Gross Margin| | 14,265,000| 149,205,000| 295,125,000| 290,025,000| (-) Expenses:| | | | | | Selling & Admin.
Expenses| | | | | | Salaries & Wages| | 5,050,000| 5,050,000| 5,050,000| 5,050,000| Rent Expenses| | 500,000| 500,000| 500,000| 500,000| Utilities| | 110,000| 110,000| 110,000| 110,000| Sales Commission (1%)| | 1,920,000| 3,300,000| 4,800,000| 4,800,000| Transport & Distribution | | 5,000,000| 5,000,000| 5,000,000| 5,000,000| Insurance Premium| | 10,000,000| 10,000,000| 10,000,000| 10,000,000| Interest on Bank Loan| | 4,000,000| 4,000,000| 4,000,000| 4,000,000| Advertisement:| | | | | | Newspaper Ad. | | 4,000,000| 6,000,000| 8,000,000| 10,000,000| Television Ad. | 22,000,000| 42,000,000| 62,000,000| 82,000,000| Billboards and Neon Signs| | 7,000,000| 12,000,000| 17,000,000| 22,000,000| Vehicle Ad. | | 7,000,000| 9,000,000| 11,000,000| 13,000,000| Mobile Team/ Meeting| | 600,000| 800,000| 1,000,000| 1,200,000| Total Selling & Admin. | | 67,180,000| 97,760,000| 128,460,000| 157,660,000| Net operating Income before tax| | -52,915,000| 51,445,000| 166,665,000| 132,365,000| (-) Income Tax (10%)| | -5,291,500| 5,144,500| 16,666,500| 13,236,500| Net operating Income after tax| | 27,00,000| 32,00,000| 49,00,000| 75,00,000|
Graphically represent financial projection of fairness soap (within 4 year): Graphically represent financial projection of anti-bacteria soap (within 4 year): Chapter – 7 Implementation My planning is that tight control measures to closely monitor quality and customer service satisfaction. This will enable us to react very quickly in correcting any problems that may occur. Other early warning signals that will be monitored for signs deviation from the plan include monthly sales (by segment and channel) and monthly expenses.
We are planning to control our market by penetration pricing also I have planning to control company market by creative sales promotion. Chapter – 8 Appendix Parts Appendix COST OF TV ADVERTISEMENT: This company ad is a 20 second ad which we will show 2 X 30 X 3=180 times in three channels a month. The cost of displaying the ad in one transmission is given below: Average Advertising cost For the Three Channels:| Just before NEWS-| 20 seconds duration-| -8000 tk| In mid break of any Program/Film-| 20 seconds duration-| – 5000 tk| The ad will be displayed on the ATN for per month:
So, the cost will be— 42 times a week for 1 month: Total = 42 times X 4 weeks =168 times 1st week: (Just before NEWS) Total cost on 1st week= 7 times X 3 channels X 8000 =168000 1st week: (In mid break of any program/Film) Total cost on 1st week = 7 times X 3 channels X 5000 =105000 2nd week: (Just before NEWS) Total cost on 2nd week= 7 times X 3 channels X 8000 =168000 2nd week: (In mid break of any Program/Film) Total cost on 2nd week= 7 times X 3 channels X 5000 =105000 3rd week: (Just before NEWS)
Total cost on 3rd week = 7 times X 3 channels X 8000 =168000 3rd week: (In mid break of any Program/Film) Total cost on 3rd week = 7 times X 3 channels X 5000 =105000 4th week: (Just before NEWS) Total cost on 4th week = 7 times X 3 channels X 8000 =168000 4th week: (In mid break of any Program/Film) Total cost on 4th week = 7 times X 3 channels X 5000 =105000 Total cost for Television Advertisement 🙁 168000X4 + 105000X4) =109200tk. NEWSPAPER ADVERTISEMENT: Our target markets are generally the urban women with sound income.
Most of our target markets are educated & usually read newspaper. The main advantage of newspaper is the high degree of market coverage. It can cover a high area at a relatively low cost. We are going to give our ad in “PROTHOM ALO” because “Prothom Alo” is the most read daily newspaper in our country. We are also going to give our ad in “NAKSHA” of “Prothom Alo” on Tuesdays. COST For “Prothom Alo” per day cost is calculated as follows- 5 column (width) X5” (height) X 1000Tk = 25000Tk For “NOKSHA” 3 column (width) X 3” (height) X 600Tk =5400Tk
Per months Budget For “PROTHOM ALO” 25000 TK X 4 days (on Fridays only) = 100000 TK For “NOKSHA” 5400 TK X 4 days (on Tuesday) = 21600 TK Total News Paper cost 121600 9. Conclusion “First of all I think my company is a new and unique organization in our Country and I hope that my company will touch to success within very few time or without any types of hesitation . my Company’s every employees are very professional and also highly skilled. They take and implement various decisions depending on their previous knowledge and experience.
I will invest my maximum effort to my company for the success. At the same time will provide high quality full products or service better than other company to the customer. 10. Reference I got a lot of help from these books. So I am really grateful to the authors. The names are given below: * Principles Of Marketing (11th edition) – Philip Kotler & Gary Armstrong * Principles Of Marketing – Lamb Hair MC Daniel * Marketing Management (13th edition) -philip Kotler, Kevin lane * Other Information will collect from Internet and my won knowledge.
