Marketing Plan on Consumer Product

“GHEEVEG”
Prepared For:

Mr. Nazmul Hossain

Lecturer,
Dept.of Business Administration
East West University
Mohakhali, Dhaka.

Prepared By:

G.M.Zakir Hossain
ID: 2006-1-10-031

A.S.M. Kamruzzaman Selim

ID: 2006-1-10-162

Course: Principles of Marketing, (MKT-101)

Section: 03

Date of submission: April 06, 2008

06 April 2008
Mr.Nazmul Hossain
Lecturer
Department of Business Administration
East West University

Dear Sir

In accordance to your advice here is the report on “Vegetable Ghee” that we are
submitting on 06 April, 2008. To serve our purpose, we have followed standard research
methodology to extract our findings. We have applied sophisticated analysis techniques
to get consistent and sound output. As per the direction of yours, we have tried our best to
highlight our findings through applying our acquired concepts and models.
We sincerely hope this report will fulfill the requirements suggested by you under the
course of ‘Principles of Marketing’. We will appreciate if you kindly spend some of
your valuable time by studying the report.

Sincerely yours

Signatures

G.M.Zakir Hossain

ID : 2006-1-10-031 ------------------------------

A.S.M. Kamruzzaman Selim

ID: 2006-1-10-162 --------------------------------

 Table of Index

Content Page no

1) Acknowledgement……………………………………………………............v
2) Executive Summary…………………………………………………….........vi
3) Picture of GHEEVEG…………………………………………….……….....01
4) 1.0 Vegetable Ghee…………………………………………………………..02
5) 1.1.0 Owners of the company………………………………………………..03
6) 1.1.1 Share distribution……………………………………………………....03
7) 1.1.2 Share Distribution……………………………………………………...04
8) 2.0 Organizational structure and management segment……………………..04
9) 2.1.0 The entrepreneurs behind the project……………………………….....04
10) 2.1.1 Chain of control………………………………………………………..05
11) 2.1.2 Mission…………………………………………………………………05
12) 2.1.3 Vision…………………………………………………………………..05
13) 2.1.4 Company’s Slogan……………………………………………………..05
14) 3.0 Features of GHEEVEG…………………………………………………..06
15) 4.0 Brand Name………………………………………………………………06
16) 5.0 About “GHEEVEG”……………………………………………………...07
17) 6.0 Vegetable Ghee and Normal Ghee……………………………………….08
18) 7.0 The Target Market………………………………………………………..09
19) 8.0 Competition………………………………………………………………09
20) 9.0 Opportunities……………………………………………………………..09
21) 10.0 Objectives………………………………………………………………..10
22) 11.0 Promotion Strategy………………………………………………………11-13
23) 12.0 Marketing Strategy………………………………………………………13

24) 12.1.0 Pricing………………………………………………………………….14

25) 12.2.0 Market Segmentation………………………………………………….14
26) 12.2.1 Geographic segmentation………………………………………………14
27) 12.2.2 Demographic segmentation…………………………………………….14
28) 13.0Market Targeting………………………………………………………….15
29) 14.0 Positioning……………………………………………………………….15
30) 15.0ACTION PROGRAMS…………………………………………………..16
31) Bibliography…………………………………………………………………..16
 Acknowledgement
We, the member of the course of Principles of Marketing, are very pleased to accomplish
the assign task given by our revered course instructor Mr.Nazmul Hossain on the subject
“Vegetable Ghee”. In preparing the report on the given subject we faced different
problems such as – data, insufficient manpower etc. but we have been able to overcome
the problems with direct and indirect assistance from some persons. In this regard we are
extremely grateful to our course instructor Mr.Nazmul Hossain and Mr. Abdur Rahim,
the manager of marketing department of Sanowara Corporation Ltd.

Above all, we cannot refrain our selves from giving heartfelt thanks to our course
instructor Mr.Nazmul Hossain, who remain with us all the time for completing this
complex job.

Finally, we are pleased to complete the report on the given subject properly and
authentically.
 V
Executive Summary

Festivals and rich foods are major form of entertainment in people’s life. It is believed
that vegetables keeps people’s body and soul fit. Ghee is a consumer product in
Bangladesh. The marketing aspects of Ghee are different in Bangladesh. The producer of
Ghee does not sell the product to the consumers who are very much health conscious.
Companies have to depend on various distribution channels like wholesalers and retailers
to deliver the product to the final consumer. It means that the company has to make
aware people about their product through different advertisements and other promotional
tools. With an aim to learn the marketing prospects of Bangladesh a study has been done
with vegetable Ghee.

Now “GHEEVEG” wants to introduce the product in the existing Ghee market with
three types of packets, “GHEEVEG” small, medium, large. “GHEEVEG”targets the
household people how lives in urban areas. “GHEEVEG” gives a very high commission
to the retailer for good merchandising and capturing the current market; though
“GHEEVEG” is a very high quality Ghee but following the low pricing strategy. In this
report some recommendations have been given to improve their functionality in the
marketing sector and to survive in the competition with a forwarded position.

VI
1
1.0 Vegetable Ghee

Ghee is an intriguing food with a delicious buttery flavor. That's not surprising since ghee
is either made from butter or made to taste like it. This is a common food in Bangladesh,
India, the Middle East and Africa. These are places where milk products soon go bad
without refrigeration.

“GHEEVEG” Ghee is not a rich food and also less expensive. This Ghee is made by soy
bean, palm and vegetable oils. Vegetable ghee has food color and flavor added to it to
make it look and taste like butter.

Vegetable Ghee gives food a wonderful buttery taste and better than butter, it doesn't
burn as easily. The smoking point of vegetable ghee tends to be higher than most
vegetable oils. A little ghee can often take the place of a larger amount of oil for frying
food and it works well in wok cooking where a high heat is necessary for stir-frying. A
teaspoon of ghee in a small pan easily cooks a couple of cloves of minced garlic without
turning acrid. We can use it to make fries, desserts, popcorn and spread on top of
Chapatti’s. There many other places where we can “GHEEVEG”

2
1.1.0 Owners of the company

 Name of the directors / Shareholders Status

------------------------------------------------------- ------------------------

 G.M.Zakir Hossain Chairperson

 A.S.M.Kamruzzaman Selim Managing Director

 MR. Bill Gates Director

 Mr.Kutub Uddin Ahmed Director

1.1.1 Share distribution

According to the government rules and regulation we have divided our shares of the
company. The following chart is given to illustrate the shares taken by each shareholder

Name of the
Sl Percentage of
directors Status
Share holding
/Shareholders
1. G.M.Zakir Hossain Chairman 40%
2. A.S.M.Kamruzzaman Managing Director 25%
Selim
3. MR. Bill Gates Director 10%
4. Mr.Kutub Uddin Director 10%
Ahmed
5. External Sources Shareholders 15%
 3

1.1.2 Share Distribution

Chairman

Managing Director

Director 01

Director 02

Other members

The pie chart shows us the distribution of shares among the directors and the external
people (stakeholders). The company follows the companies’ formal chain of command
and uses both formal and informal communication channel to make a bridge with the
customers, employees and other people related to the business.

2.0 Organizational structure and management segment

2.1.0 The entrepreneurs behind the project

‘GHEEVEG’ Company should have an effective and well organized management team.
Without a skilled management team it will be very hard to sustain in the market. We are
very keen to have a good command on our employees and motivation power along with
effective managerial skills. We have also a vision to expand our business all over the
country and we are heading towards that. 4

2.1.1 Chain of control

The overall management of the company will be operated with the Board of Directors. .
The board of directors will generate business polices and guidance in the business
operations. Board of directors and managers in different technological level will assign
the managing director who will be responsible to observe the overall business affairs.

2.1.2 Mission
Our mission is to provide quality and standard products, maintain highest of ethical
standards in our business operation. Our mission is to provide the customer with healthy
and nutritious vegetable ghee. We exist to different types of package of vegetable ghee
and maintain a good relation ship with customers. . Our services will exceed the
expectations of our customers.
2.1.3 Vision
We perceive our business as a means of leading to accretion of wealth through
financial and moral gains.
2.1.4 Company’s Slogan
We keep you fit when you taste our “GHEEVEG”.
 (1kg tin of “GHEEVEG”)

3.0 Features of GHEEVEG

 Our GHEEVEG is 100% halal, pure and natural.

 There is no animal fat in GHEEVEG.

 The GHEEVEG is absolutely free from any types of artificial color.

 GHEEVEG prepared hygienically. This ghee is suitable for people. It is

unparallel in comparison in preparing Polao, Korma, Biriani, Haluwa or any kinds

of delicious food.

 100% free from coloustaural

 . The GHEEVEG makes your food tastier

4.0 Brand Name

The brand name of our product is “GHEEVEG”.We produce vegetable ghee and here
‘VEG’ is the short form of vegetable. So we kept the name of our product “GHEEVEG”.
 6

5.0 About “GHEEVEG”

This is clarified butter that has had all the milk solids removed by heating - it was
originally made to extend the keeping qualities of butter in Bangladesh. It can be bought
ready-made or you can make it at home using unsalted butter. It has a nutty, buttery taste.
Vegetable ghee made from pure vegetable oil, suitable for strict vegetarian (vegan) diets
is also available.

5.1.0 Uses: Ghee is the main cooking fat used in Bangladeshi cookery. Because the milk
solids have been removed ghee has a high smoking point and can therefore be heated to
higher temperatures than ordinary butter. “GHEEVEG” is suitable for both shallow and
deep-frying and adds a high gloss and delicious flavor to sauces.
 7

5.1.1 To store: Traditionally ghee was not stored in the fridge, it can be stored in a
covered, clean jar once made for 1-2 weeks or in the fridge for up to 2 months. Vegetable
ghee can be stored in a cool, dark place for up to 1 year, once opened store in the fridge
for up to 2 months. GHEEVEG must be stored by jar which is made by tin.

The store process of “GHEEVEG”

6.0 Vegetable Ghee and Normal Ghee

There is no fat in the vegetable Ghee but in the normal Ghee there is too much fat. Those
are made by pure milk. Now-a-days there are many types of Ghee in the market but they
are normally very expensive. The vegetable Ghee is not very expensive. It is very good
for health also. Vegetable Ghee can be use in many types of foods where other type of is
affordable to use.
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7.0 The Target Market:
Now there are million of in our country is suffering in many kinds of health related
problems. So doctors are suggesting them not to eat rich foods because of Ghee. Apart
from them there are some people who are vegetarian who doesn’t uses Ghee in there
food. There also some people who are very health conscious and don’t want to eat fatty
food. People can use this at home, hotels and fast food shops. So our target market is
consists of—
 Sick people
 Vegetarian people
 Health conscious people
  Households
 Restaurants
We are focusing on the people who have many kinds of sickness and who want to be fit
always. People in our country don’t know much about this vegetable Ghee so we need
some time for advertising. After completing that we will focus on much bigger target
people. The future of this product is very much positive because people of our country
are becoming very health conscious day by day.
8.0 Competition
At present there is no product called vegetable Ghee in the market. So there is no direct
competitor available in the market. There are many companies of ghee available in the
market which is made by milk and some other things are our competitor.
9.0 Opportunities
“GHEEVEG” vegetable Ghee is using rather than using Ghee that are made by milk.
This allows thousands of health conscious and vegetarian people to eat rich food without
thinking other things. So it has a chance to expanding the appeal of its both upper class
people and lower class people. Increasing many types of sickness day by day will
promote its demand to the consumers. So it is easily understandable that this is going to
be a product for the household. At present there is no company are operating in this
industry. We can be successful if fulfill customers needs. 9

10.0 Objectives
Initially “GHEEVEG” sets up following financial objectives:

 Achieve first year total sales revenues of taka 4.00 million.

 Generate net profit of taka 2.00 million.

 Target profit margin will be 7% to 10% at the initial period.

 Earn an annual rate of return on investment of 20% after taxes over the next five

years.
The target marketing objectives of GHEEVEG are:

 At least try to occupy 25% of the market within next three years. We are

expecting to sell no less than 5000 units in a year.

 Generate 70% industry awareness among the potential customers and 40%

brand awareness among the firms within a year.

 Increase the market share up to 15% by the end of second year based on the

sales of previous years.

 Start to export product after three years.

We will start to expand business from Dhaka to Chittagong, Rajshahi, Khulna,

Barishal and Sylhet after one year. 10

11.0 Promotion Strategy

By integrating all messages in media, we will reinforce the brand name and the main
features of our products differentiation, especially our exclusive collections of different
items. Our strategy for marketing communication primarily depends on three promotional
tools.

 Advertising: We will use the print media for attracting customers like in the
newspaper, magazines or making banner and billboard. These advertisements
could also serve the purpose of awareness.
  Personal Selling: We would have to depend heavily upon personal selling. As
our target market is numerically and therefore we must maintain excellent
relations with our customers.

 Sales Promotion: From time to time we might give discount rates. However we
would give competitive offerings for our loyal customers. Sometimes we will give
special package in some occasions.

 Product Distribution: We also appoint some our own dealer as well in main
cities in the country.

11.1.0 Explaining Different Media Choices:

While doing the marketing communication we have to consider specially those people
who have easy reach to the location.

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11.1.1 Television:

TV is a good media to reach people all over the country. But it is the most costly media.
If we use TV the cost per Target Audience will be very high for us. Even though it is
costly, we can’t deny the effectiveness of TV to build a good image of our service into
the consumers mind. In choosing the different TV channels we will select all the four
Bengali channels operating from Bangladesh. We will give the advertisement on BTV,
NTV, CHANNEL-I, ATN BANGLA. We will also air advertisements before the night
news to get highest reach.
11.1.2Newspaper:

Newspaper has a very wide acceptance and distribution among our target audience. The
newspapers listed above are the most widely read and trusted in the country. Newspaper
insertions also have the advantage of being more permanent and more explanative about
the advertised brand.

11.1.3 Magazines:

Magazines are selective in their audience and this is an advantage if we want to attract a
select group of the target market. Lifestyle magazines are a good option for advertising
and promoting our brand. We will select English Magazines like: Fashion Week, Ice
Today, Lifestyle etc.

11.1.4 Billboards:

Billboards have been found to be eye-catching and attractive. They can reach almost
everyone taking a particular route through the city. It is a very creative tool and can help
to create a very unique image in the audience’s mind. We have our billboards In front of
12
Airport, at Gulshan Circle 2, Bijoy Shwarani, Dhanmondi, Rampura, Khilgaon, Farme
Gate. Electronic Billboard is a new trend in now a day. So we will give advertisements at
electronic billboards in not only Dhaka but also Chittagong, Rajshahi, Khulna, Sylhet,
Barishal and some other districts of the country.

11.1.5 Advertisement for the First Month:

For the month of we will be advertising on the TV, the newspapers like The Daily
Protom Alo , The New Age, The Daily Star, the Independent and magazines like The
Bortoman Dinkal,The Anondo Alo and putting up billboards in important cities and in
front of the airport. This kind of exposure will help us to communicate with our target
audience. Channel I, NTV, ATN Bangla and BTV are the TV channels that will be used
for TVC. It’s a way of letting target customers know that “GHEEVEG” starts its
service. People will be exposed to the brand name, which will remain in their minds even
when they go home. Our basic goal is to create a need for the product in the audiences
mind. We will arrange another press release at the end of the month giving exposure to
how well our company doing and to inform about the response we have received.

12.0 MARKETING STRATEGY

Marketing strategy is most effective when it is an integral component of corporate

Strategy, defining how the organization will engage customers, prospects and the
competitors in the market area for the success of their company. It is partially
derived from broader
Corporate strategies, corporate missions and corporate goals should reflect
In the firm's mission statement. They are also influenced by a range of
Micro environmental factors.
A customer group within the market that has special characteristics which are
significant to marketing strategy. On the consumer side, the target market is the
City based house wives who always shops their monthly consumer products from
Various markers and shopping malls

13
12.1.0 Pricing: One of the four major elements of the marketing mix is price.
Pricing is an important strategic issue because it is related to product positioning.
Furthermore, pricing affects other marketing mix elements such as product
features, channel decisions, and promotion. The GHEEVEG considered all of the
factors including company’s mission. Because of inherent tradeoffs between
marketing mix elements, pricing will depend on other product, distribution, and
promotion decisions.
Because there is a relationship between price and quantity demanded, it is
important to understand the impact of pricing on sales .So we pricing this product
 by considering the cost and competitor’s prices. Per unit 250 ml container’s price
is 150 taka.

12.2.0 Market Segmentation

In this case we can do geographic and demographic segmentation.

12.2.1 Geographic segmentation:

We can segment our product geographically because our main target market is in the area
of subcontinent mainly in Bangladesh where the people are interested to take rich food
and don’t conscious about their health. So we think our vegetable ghee will be healthy for
the people of Bangladesh and it can increase the taste of their foods.

12.2.2 Demographic segmentation:

We can segment our product also demographically because our vegetable ghee suitable
for every stage of age people. It is also suitable for those people who are not engaging it
physical labor both male and female. It is 100% free from coloustaural. So there is no
side effect for the patient of heart diseases. Every people of any religion can take the ghee
because in the GHEEVEG there is no animal fat.
14
13.0Market Targeting
Target market means a set of buyers sharing common needs or characteristics that the
company decides to serve. As a manufacturer company we will follow the differentiated
or segmented marketing strategy. Differentiated marketing means – a market coverage
strategy in which a firm decides to target several market segments and designs separate
offers to each. We will serve to our consumer different types of packet of vegetable ghee
GHEEVEG. For our different types of target consumer we have differentiated our
product in three categories, the categories are

1) ‘GHEEVEG’ Maximum Size (5kg),

2) ‘GHEEVEG’ Family Size (1kg)

3) ‘GHEEVEG’ Small Size (250 ml).

GHEEVEG Maximum Size is for the restaurants, GHEEVEG Family Size is for those
people who live with their family and GHEEVEG Small Size is for that people who lead
a bachelor life or live in mess or hostel.

14.0 Positioning

Our value proposition is “HIGH QUALITY AT REASONABLE PRICE”. We will offer

good quality of product at a reasonable price. We are offering high quality and variation
of our product than our competitors, and we are differentiating our products with the
vegetable fat which is not included in our competitor’s product. So we have a competitive
advantage. Customer will buy our product for a good quality at a reasonable price and the
different way to produce the ghee.

Positioning statement
“To the people who want different taste in food or who is health conscious and want
to taste the rich food without any risk, then take the opportunity”

15

15.0ACTION PROGRAMS

GHEEVEG plans to implement the marketing strategy in a disciplined way. All of its
action plans will be implemented at first to build up the industry. It is actually at present
at semi-established stage. We emphasize on the team working environment rather then
individual work. We hope to take at best 50 days to inform our potential clients about our
initiative. Print and electronic media are to be utilized as well as for its introduction.
After the first month of selling of GHEEVEG we shall present that “simple
achievement” to potential customers to affirm our position, proposal. Team presentation,
public relations will continue vigorously.

This action plan is basically prepared for the next twelfth months. After that we shall
revise it considering the circumstances of that time.

Bibliography
1) www.google.com
2) www.google bangladesh.com
3) www.u4.no/themes/education/educationcommonforms.cfm
4) Principles Of Marketing by Philip Kotler & Gray Armstrong
5) The Fortune magazine
6) Annual Report of Sanowara Corporation 2007

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