KHAS PREMIUM BROWN

2/9/2019 RICE MARKETING PLAN

SUBMITTED TO: Mr. JAMI MOIZ

Submitted By:
|MURK NAJAM| |NOORIA KHAN|
|ADEEL FAROOQUI| |NAEEMA HAKEEM|
|MAAZ AZAM|
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Table of Content
Executive Summary ...................................................................................................................................... 2
Target Market................................................................................................................................................ 3
Unique Selling Preposition (USP) ................................................................................................................ 3
Pricing and Positioning Strategy ................................................................................................................... 3
Distribution Plan ........................................................................................................................................... 4
Offers ............................................................................................................................................................ 4
Promotions Strategy ...................................................................................................................................... 4
Online Marketing Strategy ............................................................................................................................ 5
Conversion Strategy ...................................................................................................................................... 5
Joint ventures & Partnerships ....................................................................................................................... 5
Referrals Strategy.......................................................................................................................................... 6
Strategy for Increasing Transaction Prices ................................................................................................... 6
Retention Strategy ......................................................................................................................................... 6
Financial Projections..................................................................................................................................... 6
Sales Forecast: .............................................................................................................................................. 6
Cost of Goods Sold ........................................................................................................................................ 7
Selling and Administrative Expense .............................................................................................................. 7
Marketing research ....................................................................................................................................... 7
Distribution Expenses: .................................................................................................................................. 8
Future Plan of Khas Rice Farm ...................................................................................................................... 8
APPENDIX ................................................................................................................................................... 9
PACKAGING MATERIAL ............................................................................................................................. 9
PROMOTIONAL STRATEGY .............................................................................................................. 10
Facebook Page .................................................................................................................................... 10
Website ....................................................................................................................................................... 10

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Executive Summary

“HEALTHY RICE MADE EASY TO COOK WITH KHAS PREMIUM RICE”

Given our unique selling preposition, our brand is focused on providing premium brown rice to
consumers. Keeping in mind the health benefits, we believe brown rice is much healthier and
nutritious than white rice. So we “Khas Rice Farm” therefore are introducing the product “Khas
Premium Brown Rice”. We are going to target SEC-A and SEC-B (Socio Economic Class) as well
as health conscious people irrespective of age. Our product is currently offering 3 different types
of brown rice to the market: (1) Long Grain Rice (2) Short Grain Rice (3) Parboiled Rice. There
will be different packaging methods for all types to make it more convenient for our customers
such as container packaging. We will be distributing our product to restaurants, and supermarkets
and our customers can also order online through our website. To promote our product, we will be
spending less on traditional marketing channels like TV, and prints as we are giving higher
emphasis on below the line activities rather than above the line because it suits our category.
Moving towards our financial projections, we assumed that we will be able to target at least 10%
of our target market and generate Rs.830 million approximately of total sales revenue. Our selling
and administrative expenses will be around Rs. 80 million and will continue to grow at the rate of
10% every year. The last part of our report includes the future plan of Khas Rice farm in which we
plan to expand to rural areas by offering them good quality at a low price. We have also planned
to export to international markets to expand our customer base in the near future.

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Target Market

The target market of our product is the upper and middle class of Pakistan. We aim to target that
segment of our society which is health conscious and diet conscious of any age bracket. As people
are becoming more aware of health-related issues, there is a rising trend of being fit in our country
and people are trying to keep themselves healthy. Therefore, we feel that this is the right time for
us to enter the market as our product is targeted towards people who like to remain healthy and fit.

Unique Selling Preposition (USP)

“HEALTHY RICE MADE EASY TO COOK WITH KHAS PREMIUM RICE”.

Pricing and Positioning Strategy

Our pricing strategy is based on cost plus pricing. Cost plus pricing strategy is when a firm
calculates the cost of producing the product and adds on a percentage (profit) to that price to come
to the selling price. This includes both our fixed and variable costs.
The prices of our products will be as follows:

Rice bags
1 kg Bag= Rs 220
2 Kg Bag= Rs 420
5 Kg bag= Rs 1000
10 kg bag= Rs 1980

Rice Jars
1 kg= Rs 250
2kg= Rs 475

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Distribution Plan

Khas Rice Farms will be distributing its rice through different platforms. Firstly, we will be
supplying our rice, both bags and jars, to wholesale supermarkets and high end grocery stores and
restaurants. Secondly, we will sell through e-commerce websites such as Daraz.pk as well as
through our own website on which people will receive loyalty card benefits. Lastly, we will be
having free delivery of rice to everyone who places an order on our website. For this we will be
purchasing 4 bikes and one small van in the beginning and will expand in the future seeing our
sales and demand.

Offers

Khas Premium Rice is a rice brand which offers the best quality at the best local price to its
customers. There are 3 different types of brown rice that we will be offering to our market: (1)
Long Grain Rice (2) Short Grain Rice (3) Parboiled Rice. We have decided to introduce different
packaging methods for all the types that will be more convenient for our customers such as
container packaging that will help in storing as well as pouring out the rice from tight containers.
This is a true value created as consumers can now avoid the hassle of storing and taking out rice.

Promotions Strategy

As the product is highly price sensitive, marketing channels play a significant role in ensuring the
availability, controlling the price, and in pulling the consumers towards the brand by offering short
as well as long term offers. For our promotions and marketing, we will use different packaging for
the products that we are offering. For long grain, we will use Red Packaging, for Short Grain we
will use Blue Packaging, and for parboiled, we will use Green Packaging so that our consumers
can easily distinguish between the three and get what they want. We have decided to introduce
packaging containers for all the types making it convenient for our customers to store as well as
pour out the rice as compared to tight containers. This is a true value created as consumers can
now avoid the hassle of storing and taking out rice. As consumers are reluctant towards new
products, there are special offers that we will introduce to attract them such as by offering special
discounts, or by providing them with add-on value products such as small cooking pots with 5kg
packs, free gifts to consumers purchasing from our website directly, and loyalty cards on which
points will be earned that will be redeemable.

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Online Marketing Strategy

Our company will also advertise online on its official website and on social media platforms. As
direct marketing is still in its infancy, we will focus on building personal relationships with our
consumers as they increasingly expect access to after sales service. For this purpose, we will
provide a link to a feedback form on our website on which we will ask for any suggestions and
complains. The form will also include questions relating to the quality of the product, the delivery
service, how the consumer came to know about our brand, and much more so we can keep on
making improvements to our product. Furthermore, we will provide innovative recipe ideas using
the brand’s rice through its online channel and further engage with customers. Both the promotion
strategy and online marketing strategy will help us to achieve brand name awareness, brand
loyalty, and brand associations. We will be spending less on traditional marketing channels like
TV and print as we are giving higher emphasis on below the line activities rather than above the
line as it suits our category.

Conversion Strategy

To convert our prospective customers to paying customers we will add testimonials of past
customers to our websites. We will also reach out to popular and admired doctors and fitness
trainers to have comments on the benefits of using brown rice over conventional rice and
specifically our product. Finally, we will use these comments on various awareness programs in
our marketing campaigns.

Joint ventures & Partnerships

We will be pursuing two types of partnerships:
1) We will be partnering with our product compliment counterparts like salt, spices and
cooking oil brands to make bundled offer and give more value to our customers, also
utilizing these brands customer base to expand our sales.
2) We will partner with supermarkets and restaurants to only sell our product by offering them
competitive prices.
3) We will also target doctors and fitness trainers to recommend our product.

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Referrals Strategy

We will be offering special one-time discount to both referral and new customers and will upgrade
the referral loyalty card to premium upon successful ten new customers.

Strategy for Increasing Transaction Prices

Khas Rice farms will be offering free deliveries to online purchasing customers purchasing 5kg or
more, and shall offer discounts on 5kg and 10kg packs. We will also upgrade loyalty card to
premium for purchaser buying 10kg or more in one go.

Retention Strategy

To retain our existing customer, we will provide them with loyalty card service. With every
purchase they make they will earn points. 10 points would mean a discount on next purchase. Apart
from that we will ask customers through surveys what additional service do they seek from our
product. We will stay in touch with them through emails and personal messages.

Financial Projections

Financial projections include the feasibility analysis of our new product Brown rice. It includes
sales forecasts, total demand, cost of sales, gross profit, selling and administrative expenses,
distribution expenses and breakeven analysis for next five years. We assume that our sales and
expenses will continue to grow at a rate of 10% every year.

Sales Forecast:

Our target market is comprised of health-conscious customers having diabetes and obesity issues.
Based on our market research we found that almost 10% of Pakistan population has diabetes. Even
if we assume that we will be able to sell our product to 10% of 20 million patients we will still be
able to sell our product to 0.2 million people. Apart from that, we assumed that we will be able to
attract health conscious customers. In total our sales forecast is 830 million in first year of
operations.

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Cost of Goods Sold

The second most factor is our production cost. This includes raw material from farmers, packaging
items for packaging company, machinery, factory overheads, direct labor, indirect labor and other
costs. Our COGS figures are based on average expenditures that our competitors are incurring. It
is around 60%of revenue. As our product line is lesser than competitors, we assume our CGS will
also be lower than them. We assume it to be 498 million rupees per year.

Selling and Administrative Expense

The most crucial part of our entire analysis is our advertising strategy. this includes digital
marketing, out of home marketing, personal selling, additional promotions, website marketing,
trade promotions. the total selling and administrative expenses will be around 80 million. The table
below specifies the breakdown of each marketing strategy.

Marketing research

We will be conducting online polls, surveys to get a feedback on both our website and Facebook
pages from our customers. It will include both qualitative and quantitative research. Also, we
will be using secondary market data to keep track of people with diabetes, obesity and other
medical problems and do research using data analytics of who to sell, where to sell and how to
sell.

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Distribution Expenses:

Distribution expenses are comprised of delivery expenses to supermarkets, distributions to

retailers, labor involved in distribution activity. The total outlay for distribution is 10,000,000. As
most of our sales will involve online channels which will reduce our distribution expenses.

Future Plan of Khas Rice Farm

After a year in 2020 we plan to expand our distribution network. In this we will start selling our
rice in rural areas we will start supplying it to grocery stores in rural areas and small cities of
Pakistan. For this we will introduce a cheaper variety of brown rice so we can easily sell our
product in rural areas as people in rural areas cannot afford such expensive rice hence we plan to
introduce a 1kg pack of our brown rice in Rs 150 which will have different nutrition statistics so
it will differentiate itself from other varieties of rice we sell.

We also plan to export our rice and tap the international market as demand for Pakistani rice is a
lot internationally and the supply is not fully catering to the international demand but we plan to
do this after 4 years. First we want to establish our brand in the local market.

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APPENDIX
PACKAGING MATERIAL

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PROMOTIONAL STRATEGY
Facebook Page

Website

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