A Marketing Plan on BlueSky Cloth Bags

A Marketing Plan on BlueSky Cloth Bags

Course Name: Marrketing Planning and Implimentation

Course Code: MKT-521

SUBMITTED TO:
Bankim Chandra Sarker
Lecturer
Department of Marketing
University of Barisal

SUBMITTED BY:
Md. Liman Bakhtiar
ID: 16MKT008
MBA 1st Batch
Department of Marketing
University of Barisal

Date of Submission: February 01, 2018

 EXECUTIVE SUMMARY
BlueSky is going to launch its eco-friendly bags made of cloth. We are highly determined to
offer the quality products with competitive unique design without compromising environment
protection. We have targeted fashionable women with high financial capability and who are
conscious about environmental safety and have built specialized employees to satisfy the
market. In Bangladesh there are so many garment industry, so we are targeted to make bag
from garment wastage. It will be very easy to collect raw material. So we just buy raw fact
from garments and produce bag through Up- cycling. It encourages us to start up this
business. Besides, with strong financial capacity and great market opportunities, we have the
potentiality to be successful in the bag market in Bangladesh. Trend toward protecting
environment also give us brave to start up an ecofriendly industry. Growth in GDP, Emerging
market, improved life style, emergence of educated women in Bangladesh have fueled up
more and more consumption of premium products. Along with these opportunities, we are
new in Bangladeshi market and have lack of strong brand image. To create strong brand
awareness, we will promote our brand with 360 degree angles from the beginning years. We
have also targeted to increase market share 10% to 15% each year. First-year objectives is to
achieve unit sales volume of 80,000 and to gain 70 % media coverage and to achieve at least
10% market share. We have targeted to achieve break-even point in the third year.
 Table of Contents
SL. NO. Contents Page No.
01. Current Market Situation 1
01.1 Market Description 1
01.2 Product Review 1
01.3 Competitor Review 2
01.4 Distribution Review 2
02. Situation Analysis 2
02.1 SWOT Analysis 3
03. Objectives 3
03.1 Vision 4
03.2 Mission 4
04. Marketing Strategies 4
04.1 Segmentation 4
04.2 Market Targeting 4
04.3 Positioning Strategies 5
04.4 Product Strategies 5
04.5 Pricing Strategies 5-6
04.6 Distribution Strategies 6
04.7 Marketing Communication Strategies 6-8
04.8 Marketing Research 8
05. Action Programs 8-9
06. Budget 9-10
07. Control 10
01. CURRENT MARKET SITUATION
The current situation for our market is good enough because demand for environment
friendly bag is increasing day by day. Most of the marketers are offering gray product for
their customers. But people are becoming more conscious about environmental, social and
other issues and showing demand for green products. Recent blooming of young generation
and kids shows really a good opportunity for our products.

01.1 Market Description

Bangladesh is one of the promising countries in this sector. Because every year Bangladesh
earns significant level of GDP from this sector. In 2016 Bangladesh earned 6.29 billion from
this emerging sector. Through this environment pollution the average temperature is
increasing. Eco consciousness is increasing among the people all over the world. The
preferences of ecofriendly products are also increasingly. People are fashion forward,
environmental conscious, and likely live close to city and metropolitan areas. They cannot
afford the high-priced designer bags they so covet. For many of them, carrying such bags
which may be made of leather and have high prices. BlueSky’s online rental service will
provide these women with access to designer handbags fulfilling their desires for the luxury
experience. It will allow them to carry a like new bag as often as they would like for as long
as they would like for a fraction of the retail value of the bag. Our marketing strategy will
allow us to satisfy these women’s craving and need for luxury items and capture a portion of
the disposable income they are prepared to devote to fashion.

01.2 Product Review

BlueSky handbags are stylish and trendy. They come in different sizes like small,
medium, and large. BlueSky handbags and kids bag come in many different designs,

 Features and Benefits

Our handbags and kids bags have different features and benefits such as color and type of
cloth. We will design our bags relating to the most popular fads and trends. We are not killing
animal and we are not using their leather or feather for making our handbags. BlueSky
handbags are made with fun and different types of colorful of cloths .We will never make any
of our handbags identical, so each and every one is unique and environment friendly.

 Competitive Advantages
BlueSky handbags and kids bag have an advantage over the leading stores because our prices
are much more affordable than stores that sell similar bags with high price. Also, our bags
will not fall apart after only a few days. If so, then the customer will get a money back
guarantee. Besides our other competitive advantages are mentioned below-

We are one of the pioneer organizations who are producing handbags with garment
wastages that creates environment pollution.
Our handbags will be easily disposable and eco friendly
We will employ optimized distribution network to ensure fast and timely delivery.

1
01.3 Competitor Review
Women comprise large segments of Bangladeshi bag market. Most of the companies are
offering leather bags to their customers that are made from leather of different animals.

Khan Brothers Bag Industries

It was founded in 2006 as a company, has grown to become the largest manufacturer and
exporter of FIBCs (big bag) and woven polypropylene (WPP) bags in Bangladesh. The aim
of the Company has always been, and still remains, to produce quality products meeting
complete customer satisfaction.

S. Alam Bag Manufacturing Mills Ltd.

It was found that, initially the industries, those are established on consideration to create
import substitute, imported these products by spending valuable foreign currencies. But on
comparison of other labor and overhead costs still we are considered to be cheaper. As we
have also chain industries and we will also be benefited by on time support with arm’s length
transaction.

Fortuna Leather Craft Ltd

Bangladesh footwear & bag industry has developed much in recent years. Fortuna Leather
Craft Ltd is one of the leading bag companies in Bangladesh. The state of the art of bag
manufacturing plant has a capacity to produce 500 bags per day..

Ruma Leather Industries LTD

Ruma Leather Industries Ltd was bought in 1991 to become one of the leading tanneries in
Bangladesh. It is equipped with modern machinery and has the capacity to produce 50,000
sift of finished leather bags per month. With the best technicians and management team,
Ruma is driving to expand and reach a target of exporting $12 million annually

01.4 Distribution Review

BlueSky handbags will be widely distributed through direct channels as well as indirect
channels. Through direct channels company will distribute its handbags directly to the target
customers via website through which they can get easy access to overview our products and
order as they need. With indirect channel we will distribute through distributors and dealers.
We are targeted to sell our handbags in 25 exclusive outlets including 8 outlets in Dhaka city
in Bangladesh.

02. SITUATION ANALYSIS

In this part we have mentioned the strengths, weakness, opportunities and threats of our
handbags. Strengths and weakness represent the internal capacities of our organization as
well as opportunities and threats are external to us.

2
02.1 SWOT Analysis
Strengths Weakness

 Environment Friendly Low resource  Unavailability of Machinery

consumption  Lack of Human expertise in recycling
 Less garbage in the society and easily in Bangladesh
disposable  People may not accept this product if
 Low cost for hiring employees we do not rightly market it.
 We have skilled manpower that to  Lack of funding for recycling
support our products.
 Availability of raw materials
 High quality product
Opportunities Threats

 Employment Opportunities  Existing Firms may react on this

 Demand Supply Gap, creates a room establishment and may negatively affect
for our business our profitability and sustainability.
 Purchasing power of the people is  New fads could change faster than we can
increasing so they will favor our keep up, making our product out of style.
products.  Even though we have few competitors,
 Recent trends toward environmental someone could get the same idea and sell
protection it at a well-known store.

03. OBJECTIVES
We have set aggressive but achievable objectives for the first and second years of market
entry.

First-year objectives

 To achieve unit sales volume of 80,000

 To gain 70 % media coverage
 To achieve at least 10% market share
Second-year objectives

 To achieve unit sales volume of 2,00,000

 To gain at least 80 % media coverage
 To achieve at least 20% market share
Third-year objectives

 To achieve unit sales volume of 3,00,000

 To reach break-even point
 To achieve at least 40 % market share

3
03.1 Vision
Our vision is to protect environment by reducing the use of plastic bags and become a well-
known company in the South Asian through providing durable, disposable and ecofriendly
handbags.

03.2 Mission
Our mission is to provide customers with an alternative eco-friendly disposable handbags and
make them aware about the negative aspects plastic bags and leather bags, so they can reduce
the use of such kind of bags that have bad impact on environment.

04. MARKETING STRATEGIES

04.1 Segmentation

To segment the market we have thoroughly analyzed the whole markets and then we segment
our markets according to the following bases-

Geographic

 Cities and metropolitan areas

Demographic

 Gender
 Age
 Income levels
 Education
Psychographic

 Lifestyle

04.2 Market Targeting

Bangladesh is improving in the social and economic sectors. Now the trend is changing .This
trend is driven by the growth of transumerism. Transumers are defined as “consumers driven
by experiences instead of the ‘fixed’, by entertainment, by discovery, by fighting boredom,
who increasingly live a transient lifestyle, freeing themselves from the hassles of permanent
ownership and possessions.” We will thus be targeting lower middle to upper middle ‐class,
fashionable, cosmopolitan transumer women, and aged 20‐44 with incomes ranging from
15000 TK to 50000 TK. These women are educated, environmentally conscious, fashion‐
forward, value their appearance. As a secondary market, we are also expecting to appeal to
fashionable university students. These women will be an important source for word‐of‐mouth
advertising as they are educated enough to protect the environment.

4
04.3 Positioning Strategies
Every organization needs to design their products and service in such a way so that it can
easily occupy in core place of customers mind. Environment friendly customers won’t accept
the products that are not socially acceptable and ecofriendly. They tend to emphasis on eco
performance of the products. BlueSky will be able to create a distinctive place in the
customers mind by the following ways-

 BlueSky will provide ecofriendly handbags that won’t have any bad impact on
environment.
 It is going to protect environment by making proper utilization of garment wastages.
 It won’t use any plastic to make soil polluted or leather to kill animals.
 BlueSky will provide standard quality handbags with reasonable price.
 It will also provide colorful, stylish and unique handbags.
 It will offer strong web access and optimized distributional channel to deliver product
within 24 hours.

04.4 Product Strategies

Product must meet consumer requirements whatever these might be. We are offering
ecofriendly bag for Young women and their school going kids as well as older women.
Women’s are buy product on the basis of attractiveness of the product. So we will offer
different bag with different size. So BlueSky have the following attribute of its product –

 Style
 Eco-friendliness
 Handy
That will make BlueSky strong image among the existing competitors in Bangladesh. The
products made by BlueSky Ltd. are bags for young lady, school going kids and older lady.
The different products in the marketing mix of BlueSky bag within each category are shown
below:

BlueSky introduces many types of tires to test out how well they are received by the
Customers. If they are a popular, then more capital is invested in improving the quality and
trying to make it better.

04.5 Pricing Strategies

Determining price is one of the most important marketing mix decisions. To set price we
have to consider demand as well as the cost of producing and selling of bags. We also need to
consider the external factors which include the margin of other channel members. We have
set mark-up pricing which also known as cost plus pricing. We will simply add standard
markup to the cost of product.

5
 Competitive pricing
BlueSky bag faces tough competitors from the grey marketer as we are pioneer industry who
produce ecofriendly product. But until all people become involve in protecting environment,
grey competitors pose great competitive threat. So BlueSky offer high quality product with
reasonable pricing.

04.6 Distribution Strategies

BlueSky is newly established company. So we go to extensive distribution to serve total part
of country to make available our product. Extensive distribution means making products as
many outlets as possible. Besides, we have targeted to sell our product in nine exclusive
zones in Bangladesh. Our targeted clients are children, young lady and old women. We will
make our products available to all locations through our exclusive zone.

Manufacturer Retailers
Indirect

Direct Customer

Figure: Distribution Channel of BlueSky.

04.7 Marketing Communication Strategy

In order to market the product, initially campaigning program will be conducted to create the
awareness to the customers about its impact on environment and human health. Promoting
the product is a must for selling the product because as per the mini research, most of the
consumers are unaware of the product. But upon having learned the benefits, most of them
are willing to buy.

Our promotional objective will be gain word of mouth

Quality->value->satisfaction->word of mouth

We will use different communication options to build long term relationships with customers.
It will ensure long term brand equity. We will use the following marketing communication
options:

 Television commercials (TVC):

Television is an effective means of communication. It allows sight, sound and motion. In

Bangladesh it has a large acceptance to the customers and we can reach quickly and

6
effectively to our target markets in a larger scale. Because, most of the people watch TV at
least one or two times in a day.

For this reason we will use TVC in the following ways:

 Giving advertisement at different channels.

 Showing pop up ads on the side of screen when continuing the program.

 Magazines and newspapers:

We will provide detailed information about the product in magazines and newspapers.
People will be able to learn about product’s quality, features and price. It will differentiate
our product from those of competitors. Consumers will become more knowledgeable about
the benefits of the brand that ensures brand equity.

 Billboard and posters:

This billboard will be set on the side of jogging park, road side, bus stand, gym center, clinic
center, playground, shopping center, school and college, and busiest place. Billboard-type
poster will make the brand name available to the customer. As a new brand it is a better way
to inform customers about the brand.

 Trade Shows:

Trade show is an exhibition organized so that companies in a specific industry can showcase
and demonstrate their products, meet with industry partners and customers, study activities of
rivals, and examine recent market trends and opportunities. So we will also use trade show
which is much more effective communication strategy to aware customers about our
products.

 Online ads (Rich media):

At present time Bangladeshi people is using internet .They do not spend more time by
watching television. They do not spend much time on watching TV, reading newspapers or
magazines. So they can simply overlook our advertisements on those Medias. That’s why we
use rich media (Blog, Facebook, websites, streaming video) to inform about our product.
They will visit our site intentionally or unintentionally through those sites.

 Sponsorship:
We will sponsor various local events like Nouka Baich, Phahela baishakh program etc., as the
part of our corporate social responsibility that ultimately enhance our brand awareness.

 Product placement
Besides, we will place our products in various popular programs to reach more people.

 Newsletters
In order to retain our customers in the long run we will use “new arrivals” notifications and
the BlueSkys newsletter as methods of connection with our targeted customers. We will tailor

7
the “new arrivals” emails to match our customers’ preferences as indicated in their
membership form. Our clients will also receive BlueSkys newsletter informing them of any
new fashion trends, new designers etc.

04.8. Marketing Research

Our customers want a stylish bag that is made of ecofriendly materials. To determine that our
business will be viable following questions that needs to be answered.

i. How many people in our target market want to buy my product?

ii. How many different types of bags should we make?
iii. What do our people want?
iv. What is their tendency toward conserving nature?
v. Is government support ecofriendly activities?
We have conducted a market survey and found positive responses that encourages us to start
up this business.

05. ACTION PROGRAMS

BlueSky bag will be introduced from next year from January. Following the summaries of the
action programs that will be taken during the first year to achieve our desired objectives and
goals.

From January to March,

Our first task is to create brand awareness and trial as much as possible among the target
markets. We want to achieve at least 60 % media coverage during this time through our
promotional media. We will endorse our brand ambassador Zoya Hassan for our promotional
campaign.

From April to June,

We will start an integrated print, radio, internet advertising, and trade show campaign
targeting consumers. The promotional campaigns will show how our product make women
trendier without creating any harm to the environment. We also emphasis showing how our
product is protecting environment.

From July to September,

Our IMC programs will be continued targeting customers. As well as we will add trade sales
promotions, such as free samples, discounts etc. to have maximum shelf space in the retail
outlet. We will also provide award to our channel members on the basis of their quantity of
purchase.

From October to December,

8
We will continue our IMC program. And starting to sponsor various events. In Bangladesh
November-December is winter season. People often go for a tour in this two months. So we
will sponsor various tour arranged by young university or college students.

06. BUDGET
In the following section we have mentioned our three years budgets as well as the break-
even point. That will be achieved within the expected time period.

Fixed Cost
Operational Budget
Types of cost Amount
(corer)
Manufacturing plant and equipment 10
Administrative cost 02
Clerical salaries 01
Total 13

Promotional Budget
Types of cost Amount
(corer)
Advertising 08
Sales promotion 03
Salaries 02
Total 11

Variable Cost

Other Budgets
Types of cost Amount
(corer)
Raw material 02
Labor cost 03
Trade promotion 02
Total 07

9
 BUDGET ALLOCATION
23%

35%

42%

So, Total cost = Fixed Cost (operating cost + promotional cost) + variable cost

= (13 + 11) corer + 7 corer

= 31 corer

Break-even analysis

Break-even point is where the amount of cost and amount of revenue is equal.
fixed cost
= 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒−𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝐶𝑜𝑠𝑡

31,00,00,000
= 980−380

=5, 16,666 units

07. CONTROL
We have set our sales goal for each year. In order to make sure this happens marketing teams
will need to stay focused and if it is not met then for the next year it will have to be more than
two to make up for the previous year. In order to continue setting up in progressing in
Bangladesh BlueSky may need to outsource some of labors. Contractors will probably need
to be hired for some of the work. A big focus needs to be made on the alliance to garments
industry as they are our main source of raw fact. To be sure that the 15-20% tire sale increase
per year occurs, we will need to push this every month with the managers reminding them of
this goal. If it is not reached in a particular year they will need to compensate with extra sales
for the following year or two to catch up. We also evaluate the performance of our employee
on the basis of sales. If performance will below the standard we will need to take necessary
steps. As we are eco-friendly industry, we also evaluate our performance on the basis of
environmental standards. We will devote effort to Research and Development in order to find
new way for environment protection.

10