Marketing Plan Innovative Product and its Analysis

Course Name: Principles of Marketing Course ID: MKT 201 Section No: 01 Prepared For: Muhammad Intisar Alam Lecturer and Course Instructor BRAC University Prepared By: Lamia Tanha Tropa- 09204022 Aliya Noor- 10104068 Anika Noushin-10104164 Susmita Sen- 10104066 Noorjahan Mahajabin-10104158 Shadman mahbub-10104135 Nayan kumar nath- 10104116 Abdullah al tanzeeb-10304055 Mohiuddin hridoy- 10304083

Submission Date:

5th December, 2011

Letter of Transmittal

5th December, 2011 To Muhammad Intisar Alam Course Instructor (MKT 201) BRAC Business School BRAC University Subject: Report Submission Dear Sir, This is to inform you that we have submitted our report about a new product and a new company. Our report focuses on partial fulfillment of the course on Principles of Marketing. We have tried our best to follow your guidelines in every aspect of planning and preparing our report. We have collected what we believe to be most important to make our report as specific and coherent as possible. We appreciated the challenge of preparing the report as it has provided us with an opportunity to increase our understanding about principles of marketing. We sincerely thank you for your guideline during the preparation of this report. We hope you will appreciate our combined efforts put forth hereby. Thank You. Sincerely,

Lamia Tanha Tropa

..

Aliya Noor

..

Anika Noushin

..

Susmita Sen

..

Sadman Mahbub

..

Nayan Kumar Nath

..

Abdullah Al Tanzeeb

..

Mohiuddin Hridoy

..

Acknowledgement

First of all we want to thank the Almighty for giving the opportunity of preparing this term paper. We would take this opportunity to thank our teacher for the course of Principles of Marketing (MKT- 201) of the BRAC University, for his valuable support and encouragement which he has offered. His words of wisdom will always be remembered, and we are convinced that the knowledge of marketing that he has imparted would go a long way through our professional career. We have planned the all thing through help of different websites and articles. Text book also helped us with preparing the term paper. This report is successfully completed by our entire group members extreme effort and co-operation. It was not possible for a single person to make the project successful. Moreover we would like to disclose our deepest esteem and gratefulness for our faculty, Muhammad Intisar Alam for his extended helping hand and mentorship.

Executive Summary

In our MKT 201 course we are assigned to do a project on an innovative product. We select Biocera Antioxidant Alkaline water. We will launch it on the market. It is mainly a drinking water which we will be launched in three different products; one will be drinking bottled water, antioxidant alkaline jug, antioxidant alkaline filter. To develop a marketing plan on our topic we have studied various aspects of the industry, such as- industry analysis, competitive analysis, SWOT, marketing mix, segmentation, and cash budget issues. With the development of our business plan we have gathered considerable knowledge on water industry. In short, the report covers all the aspects accordingly to the whole business plan of the newly establish product of the company Biocera.

Table of contents

1. Background of Safety Locker8 2. about the Product9-13 2.1. Company Background.9 2.2. Product details..9-11 2.3 Feature of product.12 2.4. Quality of product13 3. Current Market Situation.14 4. Threats and opportunity analysis15-19 5. Objective and issues.20 6. Marketing strategy....21 6.1 Product strategy..22 6.2 Price strategy..23 6.3 Place strategy..23 6.4. Promotion strategy.23 7. Action Program.23 8. MARKETING RESEARCH PROCESS..24 9. Target market24 10. Branding..24 11. Packaging25 12. Labeling...26 13. Advertising..27 14. PROMOTION STRATEGY. 28 15. Budgeting . 29 16. Control........................................................................................................30 17. Conclution...31

1.Background of Safety Locker: Safety Locker is a water purifier company. We wanted to introduce Alkaline water in Bangladesh. Basically, for this reason it has become a consignor of BioCera Co. Ltd, which has products for water purification. Also, a company named Utrend2u is bringing a formula for neutralization of bottled antioxidant alkaline water, which gets the formula from the same company, BioCera. We, Safety Locker, are bringing BioCeras water purifier so that people can have purified water at home also. We mainly import two types of water purifier products from this company- BioCera jug and BioCera filter. Studies indicate that may be the best way to get minerals and have associated it with these health benefits.

Reduced rates of heart disease Healthy weight loss Improved digestive health Maintenance of bone density Improved athletic performance

2.About the Product: 1. Company backgrounds 2. Product details 3. Feature of product 4. Quality of product

2.1Consignor Company Background: Bio CERA Co., Ltd. was found in 1994. We are an exporter of South Korea Laser Equipment products. Supply various parts of compute We have exported products to many other countries, such as North America South America Eastern Europe Southeast Asia Africa Oceania Mid East Eastern Asia Western Europe. We are especially strict with quality and after-sales service, take Win-Win policy as our highest target, and do our up most to provide products with best. We are looking forward to cooperating with you. We provide clients with our best price, quality products and our most intimate services.

2.2 Product details:

Alkaline Water Elements: pH ORP NMR Mineral 8.0 ~ 9.5 -50 ~ -400 mV 51.497 Hz Ca, K, Mg, Na

Negative ion 7,000 EA/cc ~ 20,000 EA/cc

Benefits of anti-oxidant alkaline water filter:

1.

Flushes acidic metabolites and toxins from the cellular level.

2.

Supplies health sustaining minerals such as Ca, K, Na, Mg to the body.

3.

Contains smaller Water Clusters (51.497 Hz) that hydrates the body up to 3 times more effective than normal water.

4.

Facilitate nutrients and mineral absorptions efficiently

5.

Promotes general well-being by restoring the body

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Alkaline Water filter

"If we drink good water, We can remove all of diseases over 80%" - [WHO]

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2.3 Features of product:

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1. Improves the Reducing Power by removing harmful active oxygen (=free radical)

to cause cancer, diabetic, hypertension and etc. 2. Excellent effect such as Vitamin C . 3. Removes acidic waste from body. 4. Water and nutrients are absorbed more effectively into the body. 5. Supplies minerals to help the balance of metabolism. 6. Makes better water taste. 7. Lower ORP value as similar as inside of our body. 8. PH increase.

2.4 Quality of Product:

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The quality of the product is very good. Its unique quality is that it makes normal water antioxidant alkaline. Our body is acidic and antioxidant alkaline water neutralizes it by transforming acid to salt. So our body automatically balanced by this water. Many diseases like diabetes, arthritis, high blood sugar, cholesterol etc. are removed by drinking this water. It makes our body healthy and strong.

3. Current Market Situation:

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BioCera water is in the introductory phase. The product has low numbers of competitors and local manufactures in market and the present competitors has very low promotional activities if we say that they have zero rate of promotional activities so it will be a fair fact.

Competitor Analysis: The water market in Bangladesh is unsaturated for new comers. Competition would be tough in the future. There are many local as well as foreign companys doing their business with water purifier products in Bangladesh. But through market analysis, we think that, may be these three companies can give us strong competition.

The existence competitors water fields are: 1. Unilever pure water purifier Pure it 2. A.C.M. PI WATER 3. BIONTECH CO., LTD 4. DASO CO., LTD Prices of their services are given below, Pureit- 3500 Kent- 6500 Biontech- 1200 DASO Co. Ltd- 2000 Local purifier 800 - 1000

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Biocera

Biontech

DASO

Unilever 0 20 40 60 80

No. of Respondent

Figure-

4. Threats and Opportunity Analysis:

The SWOT analysis of is given below:

Figure- SWOT Analysis

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Strengths(S) 1. Strong Marketing forces. 2. Own production plant. 3. Distinct from competitor. 4. New attractive and convenient packaging. 5. High distribution network 6. Influence ecosystem.

Weaknesses (W) 1. Low profit margin. 2. Low investment. 3. New company in the market 4. Targeting mostly above the 20 years age people. 5. Limited market share.

Opportunities (O) 1. Customers strongly like our product. 2. Less numbers of competitors. 3. Much demand for innovative products.
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4. To expand business due to its new and advanced machinery.

Threats (T) 1. Unsaturated market. 2. Potential for new customers.

3. Competing firms may come up with new strategy.

Porters five force model:

Figure- Porters Five Force Model

Barriers to entry: In the primary stage it is very tough to enter a running market. It is both time and money consuming. Before entering a market gathering proper knowledge about
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competitors is essential. Moreover, other necessary points such as economies of scale, cost advantage, usage of latest technology for further improvement and future barriers should be taken as a matter of concern.

Suppliers: As a new company Safety Locker has to put emphasis on the total number of distributers and suppliers. It is because if the quantity of suppliers and distributors are high it would be easier for the company to reach desired goal. On the other hand increasing number suppliers and distributors would be helpful for giving expected services. Substitutes: According to buyers willingness providing substitute performances and services is obligatory. Competitive Rivalry: The number of competitors of Safety Lock is very few which means less pressure for taking over the market. Effortless exit barrier is another benefit. Competitors may diversify their business. Differentiation in between the products quality and cost is the best way to differentiate Safety Lock with other companies. Buyers: To get the target market Safety Lock should consider the number of buyers and their buying volumes from the very beginning. Besides, all the customers should be able to differentiate in between all three products through price and quantity.

Concept of growth share matrix (BCG model): The BCG GROWTH SHARE MATRIX is a portfolio planning model developed by Bruce Henderson of the Boston Consulting Group in the early 1970's. It is based on the observation that a company's business units can be classified into four categories based

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on combinations of market growth and market share relative to the largest competitor, hence the name growth share.

Figure- BCG GROWTH SHARE MATRIX

Under the BCG GROWTH-SHARE MATRIX, as an industry matures and its growth rate declines, a business unit will become either a cash cow or a dog, determined solely by whether it had become the market leader during the period of high growth. While originally developed as a model for resource allocation among the various business units in a corporation, the growth-share matrix also can be used for resource allocation among products within a single business unit. In the water purifier industry when the market share is obtained then it is automatically treated as the market leader, and also it needs maximum market share to extent, when the market is not in incremental state then the growth rate of the industry will retain. Again this industry follows all the variables in the all areas till the both will come into normal level.

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5. Objective and Issues:

By using our marketing strategy we will try to attain some objectives which are mandatory for maintaining our place in the market:5.1 Maintaining quality: Safety Locker aims at providing the users with unquestionable quality of services. It is their motive to meet their expectations so that the customers will come back to the company, not for themselves, but, for the product. It can set up a TQM (Total quality management) project. TQM will help us to attain customer satisfaction by continuous improvement of the quality of the service. 5.2 Attaining market share: Safety Locker target is the all category people of all districts in Bangladesh. Its goal is to attain 15% market share of the target. Getting 15% market share in urban areas will not be that much easy. For attaining targeted market share the company will have to do massive promotion, good distribution and differentiation. 5.3 Creating customer value: In order to create customer value, Safety Locker has to be more concerned about it, because in this day and age, consumers are much more educated and informed so they will tend to purchase products they feel are worth the cost needed to obtain such product. Consumers tend to know exactly what they want to purchase and will not waste time with unsuitable products. Customer value in its most basic form is merely the difference between the benefit receive from a product and the cost associated with that product. So customer value can be a result of using the product consistently by
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consumers with satisfactory results. If Safety Locker can maintain their quality and provide services to the consumers in the best possible way and stand up to their level of expectation, only then it will be easy for the company to create customer value and build relationships with them.

6. Marketing strategy:
All marketing strategy is built on STP segmentation, targeting and positioning a company discovered different needs and groups in marker place targets those needs and groups that it can satisfied in the superior way and then position its offering so, that the target market recognize the company distinctive offering and Image. If a company does a poor job of positioning the market will be confused as to what to expect from a company. If Safety Locker does excellent job of positioning then it can work out the rest of its marketing planning and differentiation from its positioning strategy. Thus it is the strategy of target market of this product to all age people.

6.1 Product strategy: Product means the goods-and-services combination the company offers to the target market. Safety Locker is bringing Antioxidant Alkaline water filter and jug. Packaging such an important thing here, Packaging consists of 50% of the total purchasing cost of the final product. By Packaging it is very easy to differentiate the own product with in the product market. To differentiate the product firms, must come up with attractive and convenient packaging. Biocera water also did the same but the market competition is so intense that the other existing firms came up with similar packaging. Now it is very difficult to keep differentiate with the competitors.

6.2 Price strategy: As price is an important factor for a new product launch, price has to be fix in a way that target customer segment afford it. The target segment of this product has to use it because it is essential for living. At first Safety Locker have to make clear that the product is unique and give customers scope to understand the importance of the product
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and its positive impacts on using the product and then customers will be interested to purchase the product. The price charged for the product is taka 1000 per jug and 3000 for filter. These prices include all tax, vat and all expenses.

6.3 Place strategy:

These are the sets of the interdependent organizations involved in the process of making a product or service available for the use of consumption. Channel Function and Flows a marketing channel performs the work of moving goods from producer to consumers. It overcomes the time, place and possessing gaps that separate goods and services from those that need or want them.

Distribution Situation: Company is using 2 channels for distribution of biocera water Retail outlets (indirect channel) Sales promotion officers(direct channel)

Retail Outlets (indirect channel): The retail outlets provide every day consumable items to the consumers. Safety Locker is distributed to 75% of these outlets. Direct Sales Promotion Channel: Safety Locker is being distributed to institutions like government institutes, offices, teashops, caters, schools, colleges and marriage halls. Company has a sales team of 5 members for the direct sales promotion. This channel will constitute 20 percent of the total product sales.

6.4 Promotion strategy:

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Promotion is a very important variable for water item. In the Promotion part Safety Locker Company should consider other issues for the benefits of the product. In personal selling, the sales officer should be based on a fixed attractive salary and commission on the sales performance in their own specified place. Besides Safety locker Company should also at the same time consider objectives, quality of the sales force and level of motivation of sales force. Sales promotion efforts like advertising, media selection, display, public relation etc. are equally important.

7. Action Programs:

A simplified marketing research process consists of four key steps: 7.1 Defining the question (problem or opportunity) and determining the present situation. 7.2 Collecting data. 7.3 Analyzing the research data. 7.4 Choosing the best solution and implementing it.

7.1 Defining the Question and Determining the Present Situation: Marketing research should be given the freedom to help discover what the present situation is, what the problems or opportunities are, what the alternatives are, what information is needed, and how to go about gathering an analyzing data. For this Safety Locker is doing some Data Collection. Mainly Safety Locker is collecting Primary data. Also Safety Locker has Focus group to collect information data.

7.1.1 Collecting Data:

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Safety Locker obtains usable information for marketing research process. Research can become quite expensive, so some trade-off must often be made between the need for information and the cost of obtaining that information.

7.1.2 Analyzing the Research Data: The data collected in the research process must be turned into useful information. Careful, honest interpretation of the data collected can help Safety Locker to find useful alternatives to specific marketing challenges.

7.1.3 Choosing the Best Solution and Implementing It: After collecting and analyzing data, market researchers determine alternative strategies and make recommendations as to which strategy may be best and why. This final step in a research effort involves following up on the actions taken to see if the results were as expected. If not, then the company can take corrective action and conduct new studies in the ongoing attempt to provide consumer satisfaction at the lowest cost.

7.2. Target Market: Safety Locker is targeting consumers who prefer pure and healthy water for drinking purpose. It is following mass marketing with the aim to achieve strong knowledge of the segments need and strong market presence. Our company aim is to achieve operation economics through specialization its production, distribution, and promotion. After capturing segment leadership, it can earn a high return on its investment.

7.3.Distribution Strategy: I would to prefer intensive distribution system. In order to, make BioCera products available to all over the country we will go for both Push and Pull strategy. So, by using Push strategy we can push the product through the strong channels of distribution by aggressively selling and promoting the Items to the resellers, or trade. Moreover, we
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also go for Pull strategy because to make the more available in the market. So through pull strategy we can create demand among consumers and encourages them to request the product from the retailer. Seeing the consumer demand, retailers will order the product from wholesalers, which in turn will request it from the company. Distribution of products will be as follows as:

Manufacture

Wholesaler

Retailer

End user

Fig: Distribution processes for Biocera water

7.4 Branding: The brand name of new water is decided Biocera because of certain reasons. They are: Memorability: The BioCera is easy to memorize, spell and to recognize because its easy to pronounce. Meaningfulness: The meaning of this logo that appearance of jade ceramics representing human-friendly and pregnancy. Green represents nature, Blue means high technology and deep blue means harmony of nature and high technology.

7.5 Packaging:

The packaging is the key element to attract the customers. Safety Locker has designed the packaging of jug and filter by keeping in mind the customers thoughts and feelings. The packaging is designed with the best color combinations and images to attract its targeted customers. On the other hand, its physical shape is also attractive and easy to

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store at the stores house. It is packaged in a way that facilitates to transport and protect the product. Primary Packaging: The primary packaging is a pack of layers fold. Its special features protects goods form bacteria, dust and to be contaminated. This packaging is known as Fine packing. It is easy to use, store and dispose of for the customers and for the retailers as well. Self-Service: it can be purchase from Departmental store through self-service; it will attract to the customers through its packaging and eye catching colors. Consumer Affluence: Consumer will prefer to buy it due to its affluent and convenient packaging.

Labeling: According to law every company should label the product. The BioCera containsant oxidealkaline, nutritional information which will help the consumers to utilize it. The company information is also give at the packaging of BioCera, so customers could contact to the company for any complaint or suggestions.

Product Information: Biocera water is fresh, pure, healthy and energetic water and natural taste. So open and use this water.

7.6 Price Strategy:

As price is an important factor for a new product launch, price has to be fix in a way that target customer segment afford it. The target segment of this product has to use it
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because it is essential for living. At first Safety Locker have to make clear that the product is unique and give customers scope to understand the importance of the product and its positive impacts on using the product and then customers will be interested to purchase the product. The price charged for the product is taka 1000 per BioCera jug with filter and taka 3000 for BioCera filter. These prices include all tax, vat and all expenses.

Advertising: Advertising means paid nonpersonal communication delivered through various media & designed to inform, persuade or remind members of a particular audience. Because advertising expenditures are so great, & because consumers are bombarded with so many massages, firms need to be more & more creative & efficient at getting consumers attention. We can follow certain procedures for proper advertisement of our product, those are given bellow: Electronic Media: Television, internet (Facebook, skype, yahoo messenger etc.) if mail or email. Television: Television is still one of Bangladeshs leading national advertising media. Television reaches the greatest number of consumers at once so we have to show advertisement of our product in television to reach the greatest number of viewers. Newspaper: Daily & weekly newspaper continue to dominate local advertising. We can easily tailor newspaper advertising for local taste & preference. Magazines: Magazines are a natural choice for targeted advertising. Magazines may customize our publications &target advertising massages to different regions of the country. E-mail: E-mail is a low cost form of direct marketing. We can target the most interested internet users by offering Web site visitors an option to register to receive email.

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Outdoor Advertising: The majority of spending on outdoor advertising is for billboards, but spending for other types of outdoor advertising, such as signs in transitions, stores, airports, and sports stadiums, Billboard, Banner etc. we can also advertise Internet Advertising: Online & Interactive media have already changed the nature of advertising. We can use internet (facebook, Tweeter, Yahoo, Hi5 etc.).

7.7 Promotional Strategy:

Promotion means function of infirming, persuading, & influencing a purchase decision. We have to use promotion to make a market position & to expand our market. Promotional strategies common objectives include providing Advertizing Product through different media, differentiating a product, increasing sales, stabilizing sales, & accentuating a products value. Advertising product through different media: At first we have to give proper information about our product BioCera Jug and BioCera Filter by advertising to concern people. So we should choose proper media for advertising of our product. Differentiating a product: Our product BioCera Jug and BioCera Filter are different from other mineral water because of its quality & advantages. First time we will give our products jar free at hospitals as a sample, then they will buy our product. Increasing Sales: For increasing our sales volume we can give 5 percent discount at summer & at Ramadan time. These types of promotional strategy encourage people to buy our product. Stabilizing Sales: A stable sales pattern brings several advantages. It evens out the production cycle,& simplifies financial, purchasing & marketing planning. So we have to take effective promotional strategy which can contribute to these goals.
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Accentuating the products value: Some promotional strategies enhance product values by explaining hidden benefits of ownership. The creation of brand awareness & brand loyalty also enhance a products image & increase its desirability. 16. Budgets: The budget of Safety Locker for the year of 2012 is given bellow:

Projected budget for the year 2012 Projected Revenue Unit imported 1,000,000 500,000 Price per unit Revenue 1,000 3,000 Segmented 1,000,000,000 1,500,000,000

Products Type

BioCera Jug BioCera Filter Total Revenue

2,500,000,000

Import Cost Projected Revenue

Unit imported

Products Type

cost
Price per unit cost Segmented

BioCera Jug BioCera Filter Total cost

1,000,000 500,000

700 2,400

700,000,000 1,200,000,000

1,900,000,000

Distribution Cost Promotional

cost( Sales 19,000,000

discount+

Advertising cost) Administrational

Cost( Salary 38,000,000

expence+Rent

expense) Post sale

service( Service 3,800,000

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expences)

Total Cost Gross profit

1,979,800,000 520,200,000

17. Controls:
Operational Controls: Safety Lockers function is to endorse that the company accomplishes the sales, profits and other goals set out in the annual plan. If the company faces any situations when the target is not fulfilled, Biocera willingly will make strong effort on their promotional sector for attracting customers as well as market share. These promotions will be divided for all two categories that will be launched and also will be for consumers of different ages and income. In order to acquire the desired market share in Bangladesh continuous promotional activities is a must. For brand recognition purpose an option is co-branding. Partnering with a renowned company for promotional activities can be profitable. Bioceras main target is to spread this product throughout Bangladesh, but if it is not possible for a particular due to government restrictions the other targeted place will be the same. This may hamper business plan but not in a huge number. Increasing number of investors in business may help the company if it fails to succeed.

Strategic Control: To improve Safety Lockers marketing performance the company needs to make proper market audit for identifying the places where people are satisfied with the product services and areas facing problems. Also take peoples suggestion for improvement. As drinking water an essential part of daily life, lack of maintaining quality may cause downsizing. So, maintaining good relationship with the employees is a must for proper quality. Hiring skilled and trained employees at workplace is a solution. Hiring both full

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time and part-time employees may also be a solution because they do not have born any compensations or utilities.

18. Conclusion:
The marketing commitment of Safety Locker is based on the relationship with its consumer not to provide any product but maintain the quality too. To satisfy the customer Safety Locker will launch new modified products with differentiated flavors in the future.

References: www.biocera.co.kr/ www.bmwwater.com/ www.biocera.co.kr/eng/Antioxidant_Alkaline_Purifier.htm http://www.biocera.co.kr/eng/Antioxidant_Alkaline_Water_Filter.htm http://www.biocera.co.kr/eng/greeting_of_ceo.htm http://www.biocera.co.kr/eng/Business_Motive.htm www.electronichealing.co.uk Water uptrend.com.my/uptrend.aspx?name=biocera
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