Market Segmentation

Overall Market:
1. Sauce is all age product:

Sauce is generally taken by all aged customers. But it is found that people of
kids and young aged people enjoy it more. Especially a large market segment of
sauce customers lies on the age group of 7 to 40. To the school, college and
varsity students, this product has huge popularity. Adult and age old are also
interested about sauce.

2. Difference in child market and adult market

There is a significant difference in the preference of the child and adult for the
same product, sauce. Children & young like to eat sauce with fast food. They
prefer this for better test while taking snacks. It’s also same for the adult
customers. But it also used in homemade food. Nowadays homemakers use
different types of sauces making homemade food for better test. They use
sauces while cooking special foods for friend & family. As we focusing better
test and quality, we will try to capture all aged actual and potential customers of
the country.

Specific Market:

Sauce is a kind of mouthwatering food. Now there is a widespread market of

sauce in Bangladesh. The demand is so high that despite of the existence of a
number of local manufacturers, sauces are also coming from other countries. In
the initial stage of starting, the market will be very small. Before launching a
new product in the market manufacturers should set their target market.

From upper class to lower class, people of all strata of the society have demand
for this food. In general, people of middle class to upper class are the major
consumer of this product. A major portion of children and young people want
sauce because of the taste. Sometimes they take the purchase decision but most
of the times decision is taken by their guardians. But their brand preference play
role here. Parents want to give their children nutritious food. As our capsicum
sauce will provide nutritional facts & exceptional tastes which will provide
great pleasure, so we can attract the parents (adults) who are health conscious.

Target Market
– The children, teen, young and age old people of the country
 – The current users of the chips.
– Upper middle and Upper class people.
Target Market Segments

We have segmented capsicum sauce market on the basis of following

categories:

Geographic:
 For the urban and sub urban areas citizen of all over the country.
 Especially for the convenient transportation areas.
Psychographic:
 The upper middle and upper class.
 The health conscious people.

Geographic Psychographic
Upper class Upper middle Lower class
class
Urban High use Moderate use Low use
Suburban Moderate use Low use Not use
Rural area Low use Not use Not use

Positioning
We want to position our product building meaningful differentiation, supported
by appropriate strategy and implementation that can help us to build
competitive advantage. We will provide some value and benefit and position the
product. Those can be:

 Set a perception of good quality, nutritious and healthy products.

 Comparatively higher price for high quality product.
 Create attractive packages that can easily draw the attention of the
customer.
 Spread more information and a literature of our product.
 Giving sponsorship in different cultural and educational program.
 Engage in some social causes.
  Can use the cause related marketing strategy to create a positive
impression about the product and also about the company in the customer
mind.
 Less harmful, affordable price, higher quality.
 Very much convenience products.

Figure: Positioning of Capsicum Sauce

Product: A product is anything that can be offered to a market for attention,

acquisition, use or consumption that might satisfy a want or need. Our product
is “CAPCICUM SAUCE”. Product could be Physical Products, Services,
Persons, Places, Organizations, Ideas, and Combinations of the above. Our
product is basically Physical Product.

Levels of Product: There are three levels of product. Here the short description
of levels of product:

Core Product: When we buy a product in the market without any specification
like as open salt, open oil. In our business our core product is Bangladeshi fresh
Capsicum.

Actual Product: The actual product is the tangible, physical product and what
the average person would think of under the generic banner of product. The core
product is also known as an added value benefit or what the actual product’s
value to the consumer may be. When some extra value added to the salt like
iodine, vitamin, and packaging. Then this salt is an actual product.

Augmented Product: Augmented product may include a product warranty,

service or installation and may increase the price of the basic product being
purchased, allowing the company selling the good to provide the consumer with
other services that make using the product easier.

Justification: We have already mentioned that we want to launch a new

product. Our product name is Capsicum Sauce. Capsicum sauce is not familer in
our country. It’s a very testy sauce and popular in foreign countries. We will do
different types of packaging. We also want to provide Mini pack sauce by the
side of bottol sauce to people.

We have already mentioned the ingredients of our products. It will contains

Capsicum, Vegetable oil, Mustard oil, Sodium chloride, Acetic acid, Ginger,
Garlic, Turmeric powder, Chilli powder, White mustard, Black cumin seed,
Mace, Sugar, Salt.

So, the core benefits of our product are quality, taste and nutrition. Capsicum
sauce will increase the taste of foods whatever those are snacks or curry.
Customers also get a nutritious sauce.

It’s a great opportunity to produce that product because capsicum is produced in

our country. Our product will provide Vitamin A, sodium, calcium, calorie C
&exceptional tastes which will provide great pleasure. As we know capsicum is
one of the most nutritious food, so the sauce will be good for health. There will
no chemical color in this sauce. This is mainly a natural product which has no
bad side effect. It can be hoped that if people really like our products and as our
product quality is good, there is a big change to become the market leader.
Though there are many competitors in sauce industry and they compete with
almost the same product this is the main issue in terms of market opportunity.
Because now we are coming into the market with a new & different product of
different taste and flavor.

Product classification

Convenience products: those products are used in daily basis. Stable goods,
buy frequently and immediately. Sell at a very low price. Purchase location is
available. FMCG goods are example of convenience product. Rice,salt
vegetable.
Shopping product: those products are bought less frequently, as like 3 month
or 6 month at once. Before purchasing product gather information about that
product and purchase location are fewer.

Specialty product: those products are buying once a life time. Give special
purchase effort. Product is unique characteristics. Branded product, example:
wedding dress. (lehenga).

Unsought product: highly innovative product. But Consumer doesn’t want to

think about it. Require much advertisement. Like life insurance blood donation.

Justification: So, we can tell our product is day to day product, customer need
to buy it frequently and eat immediately. Product is available near to the
customer. Purchase locations are also available. Price is very reasonable. So,
that it is convenience products.

Individual product Decisions

Product decision depends on,

Products attribute

 Branding
 Packaging
 Labeling
 Product support service

Product Attributes:
Branding: Branding is one of the most important aspects of any business, large
or small, retail or B2B. An effective brand strategy gives you a major edge in
increasingly competitive markets. For a new product to the market we believe
the Branding works like a boosting and more powerful weapon to compete with
the current competitor. Branding makes it possible to create a mental picture
about a product in consumer’s mind. Brand represents the consumer’s
perceptions and feelings about a product and its performance. It is the
company’s promise to deliver a specific set of features, benefits, services, and
experiences consistently to the buyers. We brand our product through
advertisement like billboard, papering, television advertisement, F.M radio,
online advertising etc. To create a good image and identity of our product which
will work as a competitive advantage for our product we should take some
major decisions. Those are:

i) Brand Name:

We have selected “HEALTHY” as our brand name. By this name the consumer
will be able to get the meaning of authenticity of our product which will they
get once they taste it.

As we aware that once the brand got famous many of duplicate brand will try to
come into the market with the same name if the name is not registered. So, to
protect the brand name first of all, we will register our brand name. For the
spreading the information regarding our product we will arrange advertisement
through digital media or printing media. Also, we will arrange distribution of
leaflet into all possibly RESTAURANT area.

ii) Brand Sponsor:

Our product is a Private Brand product. Sponsorship involves a benefactor

supporting an individual, event or group in exchange for the ability to
commercially exploit the association. The support can be financial or material
by supplying needed equipment or services. We will collect our raw material
(CAPSICUM) from rural area, from where the suppliers will be able to provide
us capsicum as per our requirement.

iii) Brand strategy:

Our product will be a new local brand product as we offer it with a new
category (capsicum sauce) and a name (HEALTHY).

Packaging: Packaging is the first attraction of any product. The Packaging

refers to all those activities related to designing, evaluating and producing for a
product. Packaging of our watermelon juice shown by image is given below:

Labeling: Labeling means delivers any product message to the customer. It

includes price level, manufacture date, expire date, which value added on that
product like vitamin, mineral etc, which element used to produce of the product.
Company address etc. here is given our product level:

There will be much information in the label of our product. They are-

 Product name
 Weight
 Image of the main element(Capsicum) of the product
 ISO 9001 certified company
 Manufacturer/ Company name
 Address of production field
 Contact Information (Website, Phone, Fax, Mobile, Mail)
 List of ingredients
 List of Nutritional facts
 BSTI and Keep your country clean seal
 Keep in dry and cool place (Suggestion)
 A word HALAL that should be highlighted in the label
 Barcode.

Nutritional facts of our product:

Nutritional Facts
Vitamin A 5%
Calcium 9%
Calorie 14%
Vitamin B6 4%
Vitamin C 8%
 Iron 4%
Fat 3.20%
Sodium 4%
Carbohydrate 12%
Others 36.80%
Total 100%

Product Support Services

Step 1. Survey customers to determine satisfaction with current services and

any desired new services.

Step 2. Assess costs of providing desired services.

Step 3. Develop a package of services to delight customers and yield profits.

Step 4: If any of our product cannot satisfy customers then we will exchange
our product.

Pricing Strategy
Pricing Strategies help us to set up how much price customer want to buy
specificProduct. But here quality first and product read to available near
customer.

Establish pricing objectives:

1) Increase sales volume ,

2) Prestigious image ,
3) Increase market share.

As our product is fast moving goods, we want to increase sales of capsicum

sauceso, we want to increase market share.

 Different Pricing Strategies :

Product mixed based pricing strategies:

Here products are for all classes. (upper, middle , low)

 Psychological Pricing Strategies:

Create due to illusion. Like products price are 9901- and 10101-
(same quality) . Customer takes 990 Tk. Due to illusion.

 Cost plus Pricing:

Accounts determine the price. Actually for b2b (business to

business) it is best

Also,

Quality
Low High
Pricing
Low

Economy Penetration
 High
Skimming Premium

Economy: Low price + Low quality

Penetration: Low price + High quality at the beginning of new product.

Skimming: High price + Low quality (If have no competitor)

Premium: High Price +High quality like exclusive products

Other strategic are:

Captive Product Pricing: They took price gradually from service. Normal
product cost is less but services charge more.

Product Bundle Price: More product sell after offer less price.

Promotional Pricing: Price, promote to increase price. Buy 2 get 1 free.

Geographical Pricing: Price difference due to geographical location

Value Pricing: With reasonable quality, minimize the price low by decreasing
packaging, management expenses
Prestige Pricing: Let higher than average price. Due to prestige issue people
buy it

Loss leader pricing: Keep price so low that no one can do that.

Going rate (price leadership): Select price near to the competitor, here risk is
less.

Pricing Strategy of CAPSICUM SAUCE We have selected Penetration

Pricing Strategy for our product. Because our product is well available at other
countries market but for Bangladesh we will be first who is bringing “capsicum
sauce”. As our product is new in the market and we want to create a place in our
customer’s mind, for the first nine to twelve months we will keep our products
price close to other company’s consumable capsicum sauce to let the customer
know about our product quality. Then gradually over time we will increase the
price of our product ‘capsicum sauce’. Our bottle sauce price will be 80 taka
which is contained 400 gm and mini pack sauce price will be 5 taka which is
contained 10 gm.

Pricing policy for its product due to the following reasons:

 Distinctive Packaging
 Brand Name
 Cost of raw materials

we should have concerned about the competitors. We have to face some hard
competitors who produce different types of tomato, chilli, soya sauce. There is
not only local but also foreign competitor, but their competitiveness is not so
strong. Our main competitors are Pran,Ruchi and BD sauce. But only we are
going to bring capsicum sauce so we have a great chance to grab the market.
Price list of some competitors’ sauce:

Product’s Name Retailer Quantity

price
Pran Hot Tomato 80 400 gm
Sauce
Pran Hot Chilli Sauce 75 400 gm
PranTarmarind Sauce 80 400 gm
Ruchi Tomato Sauce 80 400 gm
Ruchi Spice Sauce 75 400 gm
BD Hot Tomato 78 400 gm
Sauce
BD Chilli Sauce 75 400 gm

Marketing Channel

Push Strategy: It is commission based strategy for wholesaler and retailer. If

we provide high commission to our wholesaler, they will push retailer and the
retailer will push the customer to buy our product. Retailer persuaded by
manufacture to stock product. In-store promotion and trained sales force push
the product.

Pull Strategy: It is a marketing based strategy by which company do a lot of

advertisement everywhere to make customer buy the product. Retailer purchase
stock from manufacturer due to demand. Consumers research and seek a
particular brand or product.

Zero Channel: Producing on place and customer will buy from the producer
directly. There will be no distribution channel.
One Channel: Producing company will distribute its product to retailer and the
customers buy that product via retailer.

Two Channels: Producing company will first distribute its product to

wholesaler, from there the product goes to retailer and then the customer buys
that product from retailer.

Multiple Channel Strategy: Using two or more different channels to distribute

goods and services.

Marketing Channel Strategy of capsicum sauce: Pull strategy involves

motivating customers to seek out our brand in an active process. Advertising
and mass media promotion word of mouth referrals customer relationship
management sales, promotions and discounts. As our product is very brand new
in current market so we have selected “Pull Strategy” method for our product.
Because as a new product first of all we have to take a place on customer’s
mind. the trust of our consumer about our product. First we ensure our product
quality for this we will be taken the entire step to build and execute a proper
advertisement, marketing channel by using “pull Strategy”. Pull strategy refers
to the customer actively seeking out our product and retailers placing orders for
stock due to direct consumer demand. Pull strategy requires a highly visible
brand which can be developed through mass media advertising or similar
tactics. If customers want a product, the retailer will stock it. Supply and
demand in its purest from, and this is the basis of pull strategy. Create the
demand, and supply channels will almost look after themselves.

About Intensive, Selective and exclusive distribution:

Intensive distribution: For fast moving goods products are near to customer

Selective distribution: For shopping goods outlet are in near in selective area.

Exclusive distribution: Outlets are in a specific place. For premium image

creation distribution is like that.

Our product capsicum sauce is fast moving goods. People just buy and eat and
use in cooking items to increase the taste. So we want those products are
available to our customer’s door. So, we can say we are going to intensive
distribution.

Categories of Buyer

Habitual shoppers: They like shopping.

High value deal seekers: People who like to buy after seeing discount, cheap
etc.

Variety-loving shoppers: Nothing is favorite to their. They only find out

variety.

High Involvement shoppers: They investigate the product first then buy it.
When we segment, we find both urban and suburban and upper and middle class
customers are our main customers. They like shopping, ready to buy better
quality and different kind of product or any new brand products. So, we target
habitual shoppers.
 Promotion

We know about the elements of promotion mix. Elements of a promotion mix

may include print or broadcast advertising, direct marketing, personal selling,
point of sales displays etc. There are six main aspects of a promotional mix.
Those are:

Personal
Selling

Public Direct
Relation Marketing

Promotional
Mix

Publicity Advertising

Sales
promotion

Figure: Elements of Promotional

Elements of promotional mix we will follow

We want to take huge Promotional selling strategies for our product. The
company will keep a handsome amount for the promotional activities of the
product. As it is a new brand more promotion is needed to build up the brand
awareness. We will follow four elements from the promotional mix for our
product ‘juicy Capsicum Sauce’ to sell our products and make our business
profitable. Those are: -

 Personal Selling
 Advertising
 Sales promotion
 Direct marketing
  Public relations.

Budget in promotion mix:

a) Personal selling: 20%

b) Advertisement: 40%
c) Direct Marketing: 20%
d) Sales Promotion: 10%
e) Public relation:10%

Personal Selling

As we are mainly focusing personal selling in our report, so will give more
emphasize how we can do personal selling for our new product- juicy Capsicum
Sauce.

Choosing target audience: We must choose our target audience very carefully.
As it is a new product we will not go for mass marketing at the beginning stage.
We will be interested to grave small stores. We will start with smaller locally-
owned shops before approaching larger chains. Local restaurants may also be
interested in our sauces. So basically, our target audience will be:

 Small stores: The small stores owners may be interested to keep our
sauce in his stores if we can motivate him. It will easy for him to take our
product if we give him the option that he may give our products back
after a certain time if it is not sold out.

Restaurants: Restaurants provide a large amount of sauces to their customers.

But most of the time they don’t produce it. They purchase it from others. If we
can able to convince them that our product is different and tasty from others and
our price is also reasonable, then they will be interested to purchase our sauce.
As it is tasty and different from others there is a possibility that the sales of that
restaurant may be increase even. So, restaurants are lucrative target market for
us.

We will conduct this procedure to sell our product in various places. We will
discuss a scenario of selling our product in a restaurant as we have chosen it as
our one of the most important target market. The steps of making our sell will
be:

 At first, we will prospect a restaurant which may become interested

about our product. Consider “BFC or FFC or CFC, Takeout
pizza hut, Pizza inn, Bummers café” is our target restaurant.
 Then, we will make the primary contact with the personnel of that
restaurant. We will call him to take appointment. We will seek out
information about “BFC and we will try to find out their
perspective about our capsicum sauce.
 We will talk to them about our product. We will describe the
features of our new sauce.
 After that, we will show them our product and try to pursue them
why they should keep our products. We will show them that our
product taste and quality is different and better from the others in
the time of presentation. We will use some techniques at the time
of presentation. Those might be:

Free sample: We will provide them some free samples to check

the quality of our sauce. They will be able to identify the need of
our product after offering those to their customers.
Coupon: As we are at the beginning phase of production, we will
provide coupon with each package. The lucky winner will get
various gifts from us.
Free dinner: Every day we will provide free dinner for two lucky
customers who purchase our sauce.

 We need to following up and serve the sales properly. We will take

feedback from them about our sauce to understand that if our sauce
is received by the consumers or not.

 Fast food shops: Fast food shops offer various kinds of sauces. If we
offer them our new capsicum sauce, they might be interested to purchase
 our product. Consumers want to taste different categories and taste of
sauces in the fast food shops, so it can also be our target market.

 University or college cafeterias: We know that, young people always

want new taste. So, if we provide our sauce in cafeterias of schools,
colleges and universities, they will be interested to keep our products.
They can be a vital target market for us.

 Home: in every house, there are must have children and teenagers. They
are very fond of sauces. They love to eat sauce with snakes. Parents are
now very conscious about their child’s health .so capsicum sauce is
resource of many minerals and others Even female are love to make
different types dishes to their family. They use different flavored sauce in
there cooking. so we can easily target that female group.

Advertising

Advertising is mainly provided to make aware the target market about the
product. This encourages consumers to continue or taking new action. There
are various forms of advertisement. We want to follow all the forms of
advertisement our product. To present our product’s advertisement what we
want to do are given below:

1. Television commercial:Popularity of the channel and the program when the

advertisement will be broadcasted is very much important. Time slot is the most
important fact for any TV commercial. If we want to make these activities
successful we must broadcast our commercials in that time when we will be
able to reach our highest numbers of target consumers. For this reason, we will
broadcast our commercials to the Bangladeshi TV channels. We will show our
advertising in TV channels at the important time slots.

2. Printed advertising: We know that it’s a very significant way to reach the
target market through newspaper because huge number of our people read
newspapers or magazines. We have decided to provide our advertisement in two
national newspapers. The one of which is very popular among people and the
other in the way of gain popularity. The newspapers in which we will provide
our advertisement are: -
  Daily ProthomAlo
 Bangladesh Protidin.
 Daily Star
 Daily Ittefaq and
 Other national popular daily newspaper.

3. Billboard: Billboards are large structures located in public places which

display advertisements to passing pedestrians and motorists. Most often, they
are located on main roads with a large amount of passing motor and pedestrian
traffic. So, we will place our billboard in such places. We have selected some
important commercial places to set our billboards in Dhaka city where
restaurants are more available like BANANI DHANMONDI GULSAN
MOHAMMADPUR UTTRA. And every main point of every district we will
provide our product’s billboard.

Sales promotion

Sales promotions are a way to advertise. The goal of sales promotions is to

stimulate potential customers to action. Our product is a completely new
product to the consumers. Most of the people of our country is not that much
concern about Capsicum sauce. So, this product will be able to introduce them
with a new taste and flavor. We have taken two promotional policies to make
consumers aware about our product and to increase our sales. The policies we
will follow are: -

 Sampling
 Coupons and lottery
 Discounts

1. Sampling: Free samples of our product will be provided in various shopping

malls and retail stores like MINA BAZAR, AGORA, NONDON, SHOPNO
with a special offer that if they buy a bottle of sauce from that shop, they will
get a free mini pack of capsicum sauce on a specific day like every Friday and
Saturday of a weak. To make people known about this product and to make it
familiar with them we also give free packets of sauce in different shopping
malls and retailer stores and also in various schools, colleges & universities
canteens. It is important because, if they like this they will become the repeated
consumer of this.
2. Coupons and lottery: With every packet (bottle) we will provide a coupon
where some question will be given related capsicum sauce. Consumers must
give the answer among the 4/5 alternative answers and they must send it to us or
give it to the retail seller. We will collect all the coupons and make a lottery.
Then, we will give special gift hamper and various prizes to the lucky winners
of the lottery.

We can make crass card system that if u crass the card u will get gifts like bottle
or mini pack sauce free, 5-20 take less, dinner in a fast food etc.

3. Discounts: We can provide discount rate in sauce for some days. That will be
mentioned in the product level.

Direct marketing

Direct marketing is the form of communication straight with the consumers.

There are various forms of direct marketing. Now-a-days, direct marketing is a
very effective and popular form of promotional activities. Because, most of the
people relate to the digital world using various electric devices like mobile,
computer, notebook, tab etc. So, advertising through technology is very much
important for these types of people. We will follow some direct marketing
policies to grave this market. The policies will be: -

 E-mail
 Mobile messaging
 Websites.
 Calling phone
 Give brusher

1. E-mail: We will send direct mail to a lot of people through internet to make
them known about our product. There we will give all the information about the
product. They will be informed about ingredients, price and where they will get
the product etc.

2. Mobile messaging: We will use a tale-communication company to sending

message to our target market.

3. Websites: We will provide our ads in various Bangladeshi websites to make

the users of that website
4.calling phone: we will contact with the customer over phone to know the
customer reaction about the product.

5.Give brusher: we will send brusher to our retain customer to keep and touch
to our product.

Public Relation

Public relation is the practice of managing the flow of information between the
organization and outside people. This concept is very much special while a
company launching a new product in the market. Without making the people
aware of the product, it will be a fantasy to create a desirable market for new
product.

The essential functions of public relations include research, planning,

communication, dialogue and evaluation. Every sector will work for making the
ultimate target market.

There are many promotional activities those we could take. But we only take the
following promotional activities to increase our sales-

 Sampling in different places like in schools, colleges and in other market

places.
 Involving in some social welfare. Such as-scholarship, charity, and
donation.
 Sponsoring in different cultural, educational or sports programs.
 Advertising in electronic, print media, bill board etc.
Sponsorship

We will launch the product under the food brand healthy is a renowned brand, it
can easily sponsor any sports and art exhibition under this banner ‘sponsored
by Healthy Capsicum Sauce’.

Testimonial

At first, we will send some sample to some celebrities of our country such as
Cricketer Mashrafe Bin Mortaza, actress Bidda Sinha Mim. Our sales executive
will contact with them and their experienced about our sauce will be shared
with mass people through advertise on tv, print, fm radio media. We will do a
contract with them to tell positive word about our product for some 6 months.
This informative advertise will be telecasted after 15 days of launching the
product.

Campaign: we will arrange a campaign to promote our product

Press conference: we arrange a press conference to launce our new product in

front of the media.

Others promotional activities

 We will develop some famous cartoons/ characters like tom and

jerry, Mickey mouse, pooh which will be used on the T-shirts, bill
boards, neon boards, and in some ads to attract the children and
young people.
 The company also can set big dummy of capsicum sauce bottles with
some big dummy of capsicum in the most familiar places of the big
cities.
 Arrange some people who were wearing funny cartoon costume with
the name of CAPSICUM SAUCE in front of some big restaurant and
shopping mall. When customers are entering the restaurant then
handshake with the customer and give a little card of capsicum sauce.
This card also make in some funny ways that also attract the children.
 Arrange some street children to give little children balloons with the
picture of capsicum sauce in front of the restaurant and shopping
mall.
 Arrange the kite festival. Make some big kites with the logo of
capsicum sauce.
 In Bangladesh, we celebrate different occasions. Like
PahelaBaishakh pohela falgun BijoyDibosh 21st February Valentines
day we make some handmade pakha fluent behala with the logo of
capsicum sauce. Arrange some street children in some big point
where people are go in this occasion like SAHBAG, DHANMONDI
 MUKTO MONCHO, and ROBINDRO SOROBOR DHAKA
SOHID MINAR ETC.
 Arrange a fair where customer can taste the sauce with the snakes on
trial basis.
 On the book fair in front of the gate they set a stall give minipack
sauce with some gifts

conclusion

 use different personal selling strategies as well as overall promotional

tools

 will solve its weakness and overcome its threats

 Competitors are everywhere; they will try to beat us

 Contains such advantage or features that we hope to achieve

customers’ attention

 If the customers take our sauce, we add other flavor/taste or other

value in it which will help us to acquire position in the minds of the
customers