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Term Paper

On

Introducing Traditional Clay Product with a New Outlook

Course No: 507 A


Course Title: Principles of Marketing

Prepared to

Nausheen Rahman
Professor
Department of Finance
University of Dhaka

Prepared by

Muhammad Abu Taher 35031


Mohammad Faisal Karim 34036
Md Shafi Uddin 34025
Md Saleh Ibne Rashid 33016
Md Mobinul Habib 33019
MD Rifat-Bin-Rahman 33058

Date of Submission: 01.08.2017

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LETTER OF TRANSMITTAL
August 01, 2017

Nausheen Rahman
Professor
Department of Finance
University of Dhaka

Subject: Submission of Term Paper

Dear Madam,

With great pleasure we are submitting our term paper on Introducing Traditional Clay Product
with a New Outlook based on our Ideas and survey. This report has been submitted as an
important requirement of Principal of Marketing. You have provided us with an opportunity of
having an exposure to the working environment and on the practical experience in Marketing
sector. We have found the study to be quite interesting, beneficial & insightful.

We have tried our level best to put meticulous effort for the preparation of this study. Any short
comings or fault may arise as our unintentional mistakes. We will enthusiastically welcome any
suggestion about any view and any conception disseminated through this study.

Finally we would like to thank you for your valuable guidance and support for preparing this
study. We will be grateful for any clarification when required. We will be highly obliged if you
are kind enough to approve this report and provide your valuable judgment on it.

Sincerely Yours,

..
Muhammad Abu Taher
On Behalf of Group 6

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Acknowledgment
First of all I am expressing my profound gratitude to the almighty ALLAH, the omnipotent, who
helped me to accomplish this task on time. ALLAH gave me the strength and all the benefits to
live in this world.

In the name of almighty it is my pleasure to present this report titled project Introducing
Traditional Clay Product with a New Outlook.
This project report is prepared as a requirement for completing the Principle of Marketing
course.
We would like to thank my course teacher Professor Nausheen Rahman for her valuable
guidance, care & suggestion, without which it would not possible to complete this study. She
always gave us suggestions in making this study as flawless as possible. She teaches us all the
theoretical & practical application of marketing in the class.

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Executive Summery
The topic of my project report is Introducing Traditional Clay Product with a New Outlook.
In this report we tried to show the introduction & product development process of a new product.
Our product will be clay product. We tried to show the various steps of introducing new product,
first of all we showed our factory location, product name, design, test marketing steps, discussed
about our competitor, our financial analysis, breakeven point, marketing strategy. We also done
SWOT analysis of our new business.

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Table of contents

Points of view Page No.


Letter of Transmittal 2
Acknowledgement 3
Executive Summery 4
0.1 Introduction 7
0.2 Company profile 8
0.2.1 Our web page and site 8
0.2.2 Company name 8
0.2.3 Company location 8
0.2.4 Vision 9
0.2.5 Mission 9
0.2.6 Uniqueness 9
0.3 New product development process 9
0.3.1 Idea generation 10

0.3.2 Idea screening 10


0.3.3 Concept development and testing 10
1.3.4 Marketing Strategy 11
1.3.4.1 Current market situation 11
1.3.4.2 Market needs 12
1.3.4.3 Market and Sales Strategy 13
1.3.4.4 Product 13
1.3.4.5 Price 13
1.3.4.6 Place 14
1.3.4.7 Promotion 16

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Points of view Page No.
1.3.4.8 Budget 16
1.3.4.9 Positioning 17
1.3.4.10 Market target or segmentation 17
1.3.4.11 Financial Planning 18
0.3.5 Business Analysis 20
0.3.6 Test marketing 21
0.3.6.1 SWOT Analysis 22
0.3.6.2 Risk management with PORTERS Five Forces of 23
Analysis
0.3.7 Commercialization 23

0.4 Conclusion 24
0.5 Reference 25

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0.1 Introduction

Term Paper is an integral part of the EMBA program. This work term provides a student
to work into the practical environment and give an opportunity to be skilled on a specific
practical work. To fulfill the academic requirements of the project student is required to
submit a project paper on the basis of whatever they done in the project. It is because
along academic knowledge cannot make a student perfect, they need some real life
experience to achieve their goal. Here the student can outline the assigned subject and
can summarize the work performed at the project/ survey. This guide attempts to explain
the purpose of the project study, it includes analysis, description on the work,
recommendations on the topic of the study. By preparing the report we will be able to
gather knowledge about launching new product

0.2 Company profile

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0.2.1 Our web page and site

0.2.2 Company name: BD CLAY (Pottery industry)

0.2.3 Company location: We are going to found our business in BAINNA PUKUR PAR,
word no.9 RAOJAN UPOZILLA.

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It is situated near the local market. SO we can easily enter the local market and can easily
manage our supply chain. Transportation facility is also available there.
We are informed that local potters collect their raw materials from surrounded areas. So it
will be easy for us to collect the raw materials and reduce our production cost.
We are going to make a new picture of a dissolved traditional business. That is none
another than the POTTERY INDUSTRY.

0.2.4 Vision: To be the most preferred brand in the pottery industry ensuring social needs and
customer delight.

0.2.5 Mission: We shall remain socially committed ethical business to retain loyal customer
and to make sustainable business

0.2.6 Uniqueness: BD Clay ensures your smartness

0.3 New product development process

To create successful new products, a company must understand its customers, markets
and competitors and develop products that deliver superior value to customers. It must
carry out strong new. Product planning and set up a systematic customer driven new
product development process for finding and growing new product. We have developed
our new product by using eight major steps of NDP process.

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0.3.1 Idea generation

Idea generation is the first step that is common in any new product development process.
People have to sit down in a group or sometimes individually and brainstorm. The
thought process involved here deal with coming up with new ways of serving people
better. New products are important to both customer and the marketers who serve them.
In this report we are showing our new product development idea. Our new product
development idea is introducing clay made product
Our focus point is to make actual customer for clay product through its own brand BD
Clay

0.3.2 Idea screening

Its important to identify good ideas and drop poor ideas


We think that, for our company, clay products are a key source of growth.

Key to success:

Unique and creative designs


Outstanding customer service idea
Professionalism
Attention to detail
0.3.3 Concept development and testing

After developing concept, BD clay product needs for testing with a group of target consumers.
The concept may be presented to consumers symbolically or physically. We test this product
concept with consumers. As a result, consumer may be asked to react to it by answering question
such as those in following.

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The answer of these questions will help the company to decide about the potentiality of BD clay
product

0.3.4 Marketing Strategy

Our company wants to develop and introduce a new product. Its Important to create a
Marketing Strategy.

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External and internal side of marketing plan

0.3.4.1 Current market situation

Marketing will be a critical component of the business to ensure success and


profitability. Its basic market need is a creative, unique, pottery product maker

Reasons to choose this idea

Clay products are losing its standard & market. We hardly observe few clay products coming
through brand market that is. Arong, Sodeshpolli etc.
It has only the potential customer rather than actual customer. No one goes to buy a clay product
in different shops for their usual needs; they buy this only for some luxury issues.
It is a matter of sorrow that when we search in internet for getting some information about
Bangladeshi pottery industry, there isnt even a simple site for describing this.
Some recent news tells us that sellers remain idle in the clay shop but there is not any single
customer.

We want to solve this problem by making actual customer through its own brand

What problem will be solved by our idea?

We will use rural potter as a supplier providing them with kick wheel machine, so the idle potter
can empower themselves to sustain their profession.
Some remarkable changes can arise in our society through our innovative product-

1. Here is given a platform for idle students to engage them in some innovative works.
2. Local people can meet their needs at low price.
3. Here we can utilize the barren & filthy soil by refinement.
4. It is going to give a normal life style for the poor & unprivileged people by using our clay
product

0.3.4.2 market needs

BD clay is providing its customers with a wide selection of handmade pottery


product. BD clay seeks to fulfill the following benefits that are important to their
customers.

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Selection:
A wide range of choices foe styles and finishes of pottery product
Accessibility:
The patron can have the finished products shipped to them anywhere in the
Bangladesh
Customer service:
BD clay ensures complete customer satisfaction
Competitive pricing:
BD clays prices are competitive relative to other handmade pottery product

0.3.4.3 Market and Sales Strategy

Our marketing strategies cover 4P (Marketing Mix)

0.3.4.4 Product

Specifications:

Interior decoration - corner stand, wall mate, vessel, photo-frame, show-piece etc.

Chore product - pot, vessel, jar, pan, spoon, plate etc.

Others Product ornaments box, pen-stand, coin box, wall tub, looking-glass frame,
coil stand, ear-rings, bangles, locket, candle-stand etc

0.3.4.5 Price

Pricing

The selling price of our product will be from TK 10.00 to TK 300.00 per product. Price will be
varied as the product differentia and attractive product will be at reasonable price. Thus we will
have the affordability to retain our target consumers.

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Raw materials

Types of raw materials

Main raw:

Atel Doash soil and others filthy soil.

Equipments

Modern based kick wheel machine per TK 25000

Other raw materials:

G.I.C cable, mesh net, sponge, plastic bowl, spoon, brush, bottle, Dias , thread polestar cloth,
turning tool, stove, natural and artificial color etc.

Supplier:

Contractual potter suppliers like Haripad Rudra Pal from Raozan

Transportation:

Usage of trolley for collecting soil (per trolley TK 10000 to 12000 TK)

Labor:

Rural potter from Raozan

Source of raw materials

Required soil collected from the bank of the river, swamp and other areas that will
cost 10000 to 12000 TK per trolley

Kick wheel machine will be provided from order based or customized factory

Others equipment will be collected from rural market at low price

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Unit price

Every year we will produce total 2000 unit of our clay product.

Luxurious decorative product, long flowers tub ----300 unit * per 300 = 90,000 TK

Fashionable stand, photo frame -------------------------500 unit * per 200 = 1,00,000 TK

Ornaments, small show piece ----------------------------500 unit * per 100 = 50,000 TK

Domestic chores product --------------------------------300 unit * per 50 = 15,000 TK

Jar, vessel, little pot used in nursery --------------------300 unit * per 30 = 9,000 TK

Toys, little container---------------------------------------100 unit * per 10 = 1,000 TK

Total sales revenue for 2000 unit = 2,65,000

0.3.4.6 Place

For factory:

We basically select some under developed areas like Sultanpur, Hatajari, Lohagara etc in
Chittagong

Sells center:

For this we use the center places of different district.

Deliver our product through e-commerce or e-business

Sell it in shop, different market place & hot-spot.

Our factory will be in BAINNA PUKUR PAR, word no.9RAOJAN UPOZILLA.

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0.3.4.7 Promotion

Marketing, Selling & Distribution system

Promotion tools:

Advertising in online. Such as :


Opening Face book page & group ( our Face book page & group link is
given below)
PAGE: BD Clay
GROUP: BD Clay
Twitter, Whats app, Viver & other social media.
Advertisement on the Face book, online selling & buying site.

Hand over the Leaflet on the hotspot (Station, sea port, airport for attracting foreigner)
Giving poster on different university campus.
Opening stall in different national & international fair in Bangladesh.
In long term: Newspaper, TV, Radio, Arranging Clay artifact design competition.

Delivering products:

In the beginning we will deliver our product through e-commerce or e-business or mobile
business. The product will be delivered at the customer home. We have a web, the link of
the web given bellow.
Our web :http://bdclay.tk

We will sell the product to the final consumer.


We will sell it in shop, different market place & hot-spot.
In short term we will sell locally. Then we will enter in the National & international zone.
Our aim is to sell our product worldwide.

0.3.4.8 Budget

Budget of raw materials

Per trolley soil that can cover 2000 to 3000 showpiece will cost 10000 to 12000
Per kick wheel machine 25000 tk.
Other materials for 2000 product will be 10000 including color, polestar cloth, firing,
plaster of Paris, tools etc.

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Optimum stock level

Total optimum stock level for 5years will be 10,000 units without the wasted product.

Production Budget

Earlier the production budget will be 1,40,000. including the wages of potter, raw materials and
equipment.
For next four years-production budget will be 4 lac

Production process loss

To meet the production losses we will keep at 10000 tk. on hand for every 5 years

Sales Budget

For the 1st time on the 1st year we will produce & sell 2000 unit products. It is determined to see
market reaction through our marketing strategy. It will be increased when the revenue will arise.
Our aim is to regain sales revenue of 2,65,000 TK. within a year. . By increasing the number of
the kick wheel machine we will increase the production unit. But till then we will use our two
machine non-stop at day & night with different workers.

0.3.4.9 Positioning:

BD clay will position themselves as the premier artist concentrating on pottery


product .BD clays low production line and custom design work will be attractive to a
wide range of people who appreciate functional art. BD clays will leverage their
competition edge to increase their customer base and reinforce the pottery brand.

0.3.4.10 Market target or segmentation

In todays environment its impossible to market clay products business without


market segmentation
BD clay targets the middle class and upper class population. As can be understood
from the prices they allocated

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Target customer
As previously saying the 1st time on the 1st year we will produce & sell 2000 unit
products. In that time our 1st target customer will be our
Friends,
Relative,
Classmate,
Neighbors,
Teachers & students in our& other campus.
Then we will expand to our target customer. Target customer will be:-
The local people in Bangladesh
The tourists ( visiting the Dhaka)
The restaurants
Event planner
Home & office Decorator
With time we will expand our business and sell our product globally.

0.3.4.11 Financial Planning: (cost analysis)

Investment

Project Investment Cost:


Primary investment: 1,40,000 TK

Source of funds
Own: 1,40,000 TK
Looking: 4 lac. For next 4 years

Existing Project Cost


First investment that needs to be covered to commence our business is tk. 1,40,000 TK
After recovering our first investment we will need more money (assumed 4lac tk.) to achieve our
long run vision and mission.

Detailed Project Information

*We will buy at least 2 kick wheel machine that will cost per 25,000 tk.
*The machine will be given to our contractual potter suppliers (we will appoint two potter like
Haripad Rudra Pal from Raozan and we will provide them with our machines and sample of our
own designed product.)
*We will get our final product from our potter then will sell them to our target customer.

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*For further development we will proceed our business according to our mission vision and
product will be sold as the same as our marketing strategy.

Project financial forecast for 5 years


For 1st year-

2 kick wheel machine per 25000---------------------------------------50,000


Contract with 2potters for making product will cost ----------------20,000
1trolley soil ----------------------------------------------------------------10,000
Other raw materials------------------------------------------------------20,000
Production loss + transportation cost---------------------------------20,000
Other-----------------------------------------------------------------------20,000
Total cost -------1, 40,000
Total sales revenue for 2000 unit (motioned in unit price) =2,65,000

Profit for 1st year =1,25,000

For next 4 years


Lease for 5years---------------------------------------------------------2,00,000
3more kick wheel machine----------------------------------------------75,000
Trainer-----------------------------------------------------------------------15,000
Raw materials(4 trolley soil)--------------------------------------------40,000
Other raw materials-------------------------------------------------------40,000
Stove--------------------------------------------------------------------------10,000
10 employee salary assumed------------------------------------------1,00,000
Total cost =4, 80,000
Total sales revenue for 8000 unit =1,060,000
Total profit after four years =5,80,000

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Breakeven point
We will reach our break even position within 2.5 years

BD Clays break even position will be at 2.5 years

0.3.5 Business Analysis


In business Analysis involves a review of the sales, costs and profit projection for a new
product to find out the satisfaction of the companys objective. Our companys objective
is-

Business objective or goal

Developing a website having important information about our product & online
business.

Production based on online questionnaire market survey

At the first level , providing 2000 products in the market

Establish a Super brand shop market.

Expansion of a restaurant using decorative clay product.

Hiring a land as a lease for production.

Hiring trainer from WEDO (Womens Empowerment & Development Organization).

Congregating raw materials mainly Atel doash soil through own effort.

Promoting the product for local & international market

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Break Even position within 5 years.

our earnings will be at low profit after breakeven year

Making awareness of our product to the local & foreign market.

In the long run expansion of a restaurant where foods will be served with our clay
product.

By external profit we will contribute on social welfare.

We will try to obtain Financial & economic stability.

We will determine payment of salary & wages at market demand.

We will attract foreign customer through online business and other tools

0.3.6 Test marketing

We identify the market analysis for the marketing test

Competition

Example of similar business


Some social businesses on pottery are observed in BD. For example
Shops of clay product of barisals agoilojhara
More than 25 stalls of Doyel cottor opposite to Karjon hall
Pottery of Raozans Dabua union

Market competitors
Arong
Deshidosh
Some stores who sell clay artifact.
ShodeshPolli& other super brand shop.
Boli-khaler mela, Bizoi mela &other local fairs clay stall.

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0.3.6.1 SWOT Analysis

The following SWOT analysis captures the key strengths and weakness and describes
the opportunities and threats facing BD clay product

Strengths

1. Original and unique concept


2. Less competition
3. Using kick-wheel machine rather than antiquated
4. Process which is time saving & can make any sort of
5. Online business on pottery
6. Reasonable price

Weakness

1. Deficit of readymade machine


2. less market value
3. A limited marketing budget to develop brand awareness

Opportunities

1. Opportunity of innovation
2. Up gradation is encouraged.
Threats

1. Lack of awareness about the product.


2. Uncertainty of launching a new product
3. Disconnected from the real business conditions.

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0.3.6.2 Risk management with PORTERS Five Forces of Analysis

0.3.7 Commercialization

After test marketing we collect the information about the clay product and take decision
to introducing the clay product into the market

Action

Management segment

1. Planning: Making draft, design for pottery

2. Implementation: Producing product for final customer

3. Controlling: Monitoring employee performance with standardization

Stage flow: Raw materials->factory->depot-> sells centre->customer

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0.4 Conclusion

In the present context of Bangladesh, source of employment is a crisis issue. So doing something
new or innovative is essential. In order to fulfill our course requirement we were assigned to
prepare a marketing plan of a new business. We wanted to started a new innovative business
which is based on clay products; we showed the overall circumstances of this business.

To prepare this project report, I have tried to incorporate the necessary and relevant information
in my report from my own personal experience, & whatever I learnt in the class. Any error in
this report is my unintentional mistake.

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0.5 Reference

Book:
Principle of Marketing

Web:

1. www.coorstek.com
2. https://en.m.wikipedia.org
3. www.aarong.com
4. https://www.jstor.org

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