Executive summary A subsidiary organization of the ALGAE GROUP OF COMPANIES, J.R.

BOHUMUKHI KHAMAR is a leading poultry, fishery, vegetables and fruits farming complex. It is located adjacent to the metropolitan capital city of Dhaka in a historically significant town of Sonargaon, the ancient capital of Bangladesh. It has a large modern Poultry farm together with an impressive Fishery and Horticultural farming complex. The Poultry farm produces a large number of hen's eggs which is supplied to the Dhaka city wholesale market. Export of eggs to other countries is also a special feature of business activities of J.R. BOHUMUKHI KHAMAR. A significant feature of activities of J.R. BOHUMUKHI KHAMAR is that it conducts the initial field trials of the foreign Veterinary Products and Biologics and also some of the aquaculture products marketed by its sister company UNI VET LIMITED. The activities of J.R. BOHUMUKHI KHAMAR is in the process of further development and expanse Market Analysis Summary Situation Analysis J.R. BOHUMUKHI KHAMAR is a start-up business. The selected products have been well received, and marketing is now critical to its continued success and future profitability. J.R.
BOHUMUKHI KHAMAR BOHUMUKHI KHAMAR

offers a wide range of high-quality potatoes, fishs and broiler. J.R. also plants a wide variety of trees around the land.

The basic market need is high-quality products with flexibility in production for both the consumer and commercial market and the J.R. BOHUMUKHI KHAMAR try to do that.

Market Summary J.R. BOHUMUKHI KHAMAR possesses good information about the market and knows a great deal about the common attributes of our most prized and loyal customers. J.R. BOHUMUKHI 1

KHAMAR

will leverage this information to better understand who is served, their specific needs,

and how J.R. BOHUMUKHI KHAMAR can better communicate with them. Market Demographics The profile for J.R. BOHUMUKHI KHAMAR customer consists of the following geographic, demographic, and behavior factors. Please note that J.R. BOHUMUKHI KHAMAR has two target segment customers, individual consumers and business purpose customers. Individuals: Geographics

The immediate target is the district of Munshigonj with a population of 150,000. A 50 mile geographic area is in need of the products. The total targeted population is 25,000.

Demographics

Singles and families. Ages 20-50, this segment makes up above 63% of the Munshigonjs market according to the J.R. BOHUMUKHI KHAMAR primary surveys. Have attended all of markets and single shop. Have a household income of more than 20,000 monthly. Tend to patronize higher-quality super shop and department store. Are cognizant about their health.

Behavior Factors

Are willing to pay a premium for higher quality. There is value attributed to the more attractive presentation of quality products.

Department store: Geographics

Munshigonj is the targeted population. A 50 mile geographic area.

Demographics

Male and female. Single and families. Household income over 50,000 monthly. Tend to eat out at least twice a week with chickens and maximum days with fish. Tend to patronize higher-quality department store.

Behavior factors

Is health conscious? Enjoy a high-quality meal without the mess of making it themselves. Make them to lead a healthy life by provide quality products.

Market Needs J.R. BOHUMUKHI KHAMAR provides individuals and their own department store with highquality chicken and fish. J.R. BOHUMUKHI KHAMAR seeks to fulfill the following benefits that are important to their customers.

Selection: A wide choice of different fishes with the flexibility to change mid-season. Accessibility: J.R. BOHUMUKHI KHAMAR has a booth at the J.R. BOHUMUKHI KHAMAR Market held twice per week in Downtown Munshigonj, and also delivers once to twice a week to commercial store within this area.

Customer service: The client will be impressed with the level of attention that they receive. Competitive pricing: All products will be priced competitive to true substitutes.

Market Trends The market for J.R. BOHUMUKHI KHAMAR has exploded within the last five years. Explanations for this trend are:

Market supply: The increase of supply has reinforced the demand. Within the last few years many farms that were producing general vegetables, establish poultry farm and cultivate fisheries have moved to production because of the increased margins and market demand.

Presentation/appearance: Presentation as an element of the real experience which help to add more value in the products. J.R. BOHUMUKHI KHAMAR has contribution to help to arrange the agro-based products fair and they join the fair and present their products.

Health consciousness: Though Bangladeshi people are not more conscious about their health but the depiction become changing day by day and people are now more health conscious than that of previous days. J.R. BOHUMUKHI KHAMAR has supported this goal as fishes, potatoes and chickens are inherently healthy.

Target Market Growth

Industry Analysis Munshigonj is one of the premier farming areas of the southern Bangladesh. This creates an intensely competitive environment with a large number of industry participants. Since almost all of the produce is considered to be commodities, and large scale buyers are more consolidated than the farmers themselves, overall margins are small and rivalries for wholesaler contracts are strong. Competitive threats come from three main segments:

Imported agro based products of lower quality. Neighbors districts are much more concern about agro-based business. Modern technology is not easy to use.

Direct competition in the individual buyers market segment comes from three agro-based farms in the immediate area including the Tongibari Farm, Innovative Farm, and the Friendship Poultry Farm. Each of these competitors has produce stands as well as selling to local farmers' markets. 5

However, with the exception of Friendship Farm, none of the others focus on a niche market and depend heavily on federal subsidies.

SWOT Analyses The following SWOT analysis captures key strengths and weaknesses within the company and describes Strengths

the

threats

and

opportunity

facing

J.R.

BOHUMUKHI

KHAMAR

Flexibility in meeting Super Shop and Department Store needs. High-quality product offerings that exceed competitors offerings of price, quality, and service. Higher than industry margins due to production efficiencies.

Weaknesses

J.R. BOHUMUKHI KHAMAR lacks brand equity. A limited marketing budget to develop brand awareness. The decreased degree of flexibility when near full production. The inhabitants of Munshigonj are not much more educated.

Opportunities

Growing market with a significant percentage of the target market still not aware that J.R. BOHUMUKHI KHAMAR exists. The ability to develop long-term commercial contracts which should lower costs associated with production.

Threats

An out of state, already established competitor that has decided to make customer service and flexibility their selling point. A health scare that questions the safety of vegetables. Poor weather which will lower field yields and floods problem.

Competition There are three types of competitors that J.R. BOHUMUKHI KHAMAR faces: 1. Local markets: These stores sell an agro-based mix to consumers. The advantage of the local market is convenience. There are several local markets around the city and they are open many hours during the day. Their disadvantage is price and quality. The quality is associate equality to the offerings of J.R. BOHUMUKHI KHAMAR and other similar local farmers. The cost is higher, usually 15% more. 2. Similar local farmers: These are very similar operations to J.R. BOHUMUKHI KHAMAR, sometimes larger or smaller. There appears to be room in the market for multiple farmers as most of the farmers sell out their products each day at the farmers market. 3. Large distributors: An example of this would be Food Service of Munshigonj (FSM) which buys a wide variety of products and quality of produce from farmers and distributes them to the consumer markets. The produce is not usually local and is a few days older from the field compared with the local farmers. The price is comparable and the quality can be comparable, but not necessarily. The disadvantage of a food distributor is the lack of flexibility relative to a local grower when serving local customers. Strategic Alliances The company has strategic alliances with:

Bangladesh Krishi University Horticulture Department Rajshai Krishi University Horticulture Department Sheer E- Bangla Krishi University Biology Department Dr. MD. Shahidullah Kaiser Poultry Farm specialist 7

MD. Fakhrul Alam- Horticultural Inspection of Tongibari. Innovative project of Munshigonj

Competitive Edge J.R. BOHUMUKHI KHAMARs main competitive advantages are:

Efficient production utilizing nest expertise knowledge. Reduced overhead by fully realizing crop output potential and economies of scale through joint costs. Response quickly to changing requirements and demand to the customers. Try to follow low cost strategy with standard quality. Always try to be differentiation our products.

Product Offering J.R. BOHUMUKHI KHAMAR will sell potatoes, chickens, fishes and some other products also includes. Keys to Success Exceed the customer's expectations. Additionally, J.R. BOHUMUKHI KHAMAR will:

Generate repeat business. Increase the transactions amount per customer. Increase the number of super hop and department store accounts.

Critical Issues J.R. BOHUMUKHI KHAMAR is still in the speculative stage as an agro-based firm. Its critical issues are to continue to take a modest fiscal approach; expand at a reasonable rate, not for the sake 8

of expansion in itself, but because it is economically wise to; and continue to build brand awareness to lower future marketing costs.

Marketing Strategy Marketing Strategy J.R. BOHUMUKHI KHAMAR marketing budget is limited so the strategy will be simple. Developing visibility and brand equity is key. To do so, J.R. BOHUMUKHI KHAMAR will advertise in both the neighbor districts as well as Munshigonj Weekly. Advertisements will be for J.R. BOHUMUKHI KHAMAR individually, as well as some co-branded ads with the Farmer's Market. In addition to the advertisements which will be used to drive consumer sales, J.R. BOHUMUKHI KHAMAR will leverage a networking campaign among the local restaurateurs to drive commercial sales. Mission J.R. BOHUMUKHI KHAMAR mission is to provide the highest-quality products with standard quality. We exist in the market to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers and we believe we can do it. Marketing Objectives 1. Maintain positive, steady growth each month. 2. Experience an increase in new customers who are turned into long-term customers. 3. Generate brand equity at the Farmer's Market as well as within the commercial super shop and department industry market.

Target Markets J.R. BOHUMUKHI KHAMAR has two distinct customers: 1. Individual consumers. This group of people buy products from J.R. BOHUMUKHI KHAMAR own departmental store. These people are typically unsophisticated or unadventurous in terms of their habits. These are NOT the people J.R. BOHUMUKHI KHAMAR serves. J.R. BOHUMUKHI KHAMAR is going after people that appreciate healthier, tastier alternatives to the standby of their products. This group of consumers is more likely to make their own meals instead of going out, appreciate fine dining, and generally is from a higher socio/economic class. The individuals have access to departmental store that they set up at the center point of Munshigonj. 2. Restaurants. All restaurants use our products poultry, fish and vegetables. So they are one of the large customers for our company. The restaurants are a fixed customer which is helpful to balance the seasonal demand of the consumers. Another advantage of having restaurants as a customer is that even though they get a better price, J.R. BOHUMUKHI KHAMAR has a long-term contract with them which helps in terms of stability.

J.R. BOHUMUKHI KHAMARs target market segment strategy is fairly easy. Individuals These customers will be buying J.R. BOHUMUKHI KHAMAR products from the department store located in Tongibari. The main one is "The Farmer's Market" held downtown twice a week in the spring and the summer. This market gets quite a bit of traffic because there is a nice selection of different farmers and products and it is in a central location. Additionally, there are several other smaller farmer markets that exist in outlining communities. By setting up a booth in these markets, there is already a steady flow of interested customers. There obviously is a fee to set up a stand, but what you get for the fee is all of your marketing taken care of and a line of customers. In addition to individuals frequenting the farmer's market, restaurants will go there as well. This occurs when a restaurant needs ingredients but did not have the time to order in advance. 10

Restaurants J.R. BOHUMUKHI KHAMAR will target these customers by introducing J.R. BOHUMUKHI KHAMAR and their products to the restaurants through meetings with the buyers at each restaurant. There are about 25-30 different restaurants in Munshigonj that use J.R. BOHUMUKHI KHAMAR in their menu and J.R. BOHUMUKHI KHAMAR intends to approach these to form a long-term relationship.

Target Market Segment Strategy The Market Analysis Pie shown below reflects the total number of potential customers for J.R. BOHUMUKHI KHAMAR. The number of Oriental markets and vegetable processors represent national estimates of industry participants, whereas the number of individual buyers represents the estimated annual number of individuals that will be driving by the farm.

11

Market Analysis Year 1 Potential Customers Vegetables, fishes and poultry Products market Individual buyers Total Growth 3% 1% 5% 4.68% 5,000 25,000 300,000 330,000 5,150 25,250 315,000 345,400 5,305 25,503 330,750 361,558 5,464 25,758 347,288 378,510 5,628 26,016 364,652 396,296 Year 2 Year 3 Year 4 Year 5 CAGR 3.00% 1.00% 5.00% 4.68%

Strategy and Implementation Summary The J.R. BOHUMUKHI KHAMAR strategy is to profitably and efficiently utilize present and future agricultural technology in the production of poultry, fishing and vegetables. The company, by acquiring an existing profitable agro-based farm with all the necessary custom-innovated equipment, will gain a significant industry advantage. Additional application and utilization of horticultural technology in the production of potato will allow double utilization of the climate controlled portion of the overhead. J.R. BOHUMUKHI KHAMAR hopes to consolidate considerable goodwill already created by exercising the option of not adding another highproduction facility to the present supply-demand scenario. The company's goals in the first year are to:

Prepare the future site. Relocate and expand poultry, fishing and vegetables system and get it operational. Integrate products culture into the system. Have the composting system in full production by early spring of the second year.

The company's long-term plan is to phase out whichever products are least lucrative and replace them with products that are practical and cost efficient.

3.5 Positioning

12

J.R. BOHUMUKHI KHAMAR will position itself as:

Flexible. High-quality producer. Professional. Reliable.

3.6 Strategies The single objective is to position J.R. BOHUMUKHI KHAMAR as the finest producer of agrobased products in the Panchgaon river side, commanding a majority of the market within five years. The marketing strategy will seek to first create customer awareness regarding services offered, develop the customer base, and work toward building customer loyalty. J.R. BOHUMUKHI KHAMAR seeks to communicate the message that they are the finest grower of high-end quality products. This message will be communicated through a variety of methods. The first method will be advertisements. Some of the advertisements will be co-branding with the Farmer's Market. Other advertisements will be solely J.R. BOHUMUKHI KHAMAR advertisements. The ads will be placed in both the local newspaper as well as the local art/entertainment paper and also the national dailys newspaper.. The message will also be communicated to the different seasonal markets through networking with owners and managers. Not only is there a Munshigonj-based market association which is a formal group of department store, but because Munshigonj is a fairly intimate community, J.R. BOHUMUKHI KHAMAR will communicate their message through informal gatherings and networking with department owners.

3.7 Marketing Mix

13

J.R. BOHUMUKHI KHAMAR ' marketing mix is comprised of the following approaches to price, distribution, advertising and promotion, and customer service.

Pricing: J.R. BOHUMUKHI KHAMAR 's pricing scheme is a per kg charge for each products. Consumers may purchase any amount of quantities. But the business purpose peoples cannot purchase less than 40 kg at a time

Distribution: J.R. BOHUMUKHI KHAMAR has no distribution channel. They sellout their products from their own department store. Advertising and promotion: A mixture of advertisements and networking will be used to increase visibility for J.R. BOHUMUKHI KHAMAR. Customer service: Obsessive customer service is the mantra. J.R. BOHUMUKHI KHAMARs philosophy is whatever needs to be done to make the customer happy must occur, even at the expense of short-term profits. In the long term, this investment will pay off with a fiercely loyal customer.

Marketing Research During the initial phase of the marketing plan development, several focus groups were held to gain insight into prospective customers. These focus groups provided helpful insight into the decision making processes. An additional source of dynamic market research is a feedback mechanism based on a suggestion card system. The suggestion card has several statements that customers are asked to rate in terms of a given scale. There are also several open ended questions that allow the customer to freely offer constructive criticism or praise. J.R. BOHUMUKHI KHAMAR will work hard to implement reasonable suggestions in order to improve their service offerings, as well as show its commitment to the customer that their suggestions are valued. The last source of market research is competitive analysis. J.R. BOHUMUKHI KHAMAR will send people to local competitors to gain information about their product offerings. Controls

14

The purpose of J.R. BOHUMUKHI KHAMAR ' marketing plan is to serve as a guide for the organization. The following areas will be monitored to gauge performance:

Revenue: monthly and annual. Expenses: monthly and annual. Repeat business. Customer satisfaction.

Marketing Organization Mr. Tanvir Akhond is responsible for all marketing activities. Contingency Planning Difficulties and risks:

Problems generating visibility. An already established competitor that chooses to compete on quality and flexibility. Poor weather which could hamper crop yields.

Worst case risks may include:

Determining that the business cannot support itself on an ongoing basis. Having to liquidate equipment to cover liabilities.

15