Maggi is a strategic brand of Nestle, Bangladesh. In Bangladesh, it has only two categories of products Maggi Soup Maggi Noodles.

Now, Maggi is going to launch ketchup in market for the growing attractiveness.

Available brands in market:46 The market volume: 1100 ton. Volume distribution: Tomato Ketchup 68% & Chili ketchup 32% . Mostly used brands in Household: Pran & Ahmed (the middleincome households). Foodservice area: Best & Druk mostly (the higher income households.).

Families

: Middle class Upper class Food service area: Restaurants

30%
70% Families Resturant s

Potential Customers Families

Restaurants Total 300000 200000 100000 0

2008

2009

2010

2011

2012

25000
1500 26500

31250
1725 32975

39062
1983 41045

48828
2281 51109

61035
2625 63660

Resturants Families

2008 2009 2010 2011 2012

Families:

Geographic: The immediate target is the city of Bangladesh. Middle-income and upper-income household.

Demographics: Singles and families. Mostly females and children. Have a household income of more than 10,000 tk per month. Consuming per year at least 3 ketchup bottles. Conscious consumer about their health.
Behavior Factors: Paying a premium for higher quality, tastier ketchup. Health consciousness

Restaurants (and their customers): Geographic: Fast food and restaurants in the cities of Bangladesh.

Demographics: Male and female. Single and families. Behavior factors: Health consciousness High-quality meal.

High quality Affordable pricing

Market Supply High Consciousness Food Quality

Strong, steady growing market. After 5 years the total market will be expand 25%
2
1.5

1
0.5 0 2008 2009 2010 2011 2012

Strengths:
Higher Brand image Attractive trade promotion Quality and Taste

Weakness:
Unimpressive packaging Higher pricing than local brands

Opportunity
Developing foodservice industry Improvement of product & packaging quality Decreased operation cost

Threats
Increased competition Modest economy Downward pressure on pricing

Best quality More durability Posses no harmful chemical ingredient

Selected Competitive companys targeted consumer and price Brand Pran Best Ahmed Druk Roza Meridian BD Heinz Others Pack Size 340 340 340 400 300 285 340 300 Avg. 320 Price 40 49 40 63 45 46 50 49 Avg.45 Mkt. Share 20.0% 19.3% 13.4% 11.6% 7.0% 4.7% 3.5% 2.6% 17.9% 100.00% Targeted Consumer Middle and upper- income household& also restaurants Middle and upper income households & foodservice area

Middle-income household
Upper income households& foodservice area Households & Restaurants Middle-income household Middle and upper- income household Upper income households& foodservice area Household & foodservice area

Uncompromising commitment to the quality of the product. Continuously improving the products. Communicating differentiation and quality through personal interactions and media.

National economic conditions which are not favorable to the

people.

Manufacturer

Distributor

Retailer

Final consumer

: Quality conscious consumers of ketchup. Benefits : More preservation ability and tasty. Price :Consumer price is BDT 45. Value Proposition : Tastier, spicy ketchup from the pure ingredients at a moderate price.

Target consumer

: High quality and tasty product : Retail price is BDT 45 and wholesale price is BDT 38 Distribution: Intensive distribution Promotion : Use advertising, personal selling and sales promotion

Product Pricing

Survey households and restaurants. Introduce questionnaire to investigate customer wants and satisfaction.

Financial Objectives: We want to gain a no loss-no gain condition over the next 3 years. We want to produce total revenue of BDT 4750000 in 1st year and BDT 6,650,000 in the next year. Within 5 years, we want to produce an amount of profit 3.2 million based on per unit price of BDT 38(wholesale price)

Marketing Objectives: Achieve 4% market share in a first year. Increase second-year share to 5.50%. Arrange of distribution through the leading retailers and distributors in the country market within next 6 years.

Break-even Analysis: Break-even Units Break-even Revenue Assumptions: Per-Unit Revenue Per-Unit Variable Cost Fixed Cost 38.00 30.00 4,000,000 500,000 19000000

Sales Forecast Sales Families Restaurants 2008 BDT 3,325,000 BDT 1,425,000 BDT 4,750,000 2008 2009 BDT 4,655,000 BDT 1,995,000 BDT 6,650,000 2009 2010 BDT 5,320,000 BDT 2,280,000 BDT 7,600,000 2010 2011 BDT 5,985,000 BDT 2,565,000 BDT 8,550,000 2011 2012 BDT 7,315,000 BDT 3,135,000 BDT 10,450,00 0 2012 BDT 4,042,500 BDT 1,732,500 BDT

Total Sales Cost of Sales Families

BDT 1,837,500 BDT 787,500 BDT

BDT 2,572,500 BDT 1,102,500 BDT

BDT 2,940,000 BDT 1,260,000 BDT

BDT 3,307,500 BDT 1,417,500 BDT

Restaurants

Marketing Expense Budget 2008 Personal selling BDT 100,000 2009 BDT 144,500 2010 BDT 165,000 2011 BDT 185,000 2012 BDT 227,500

Advertising
Sales promotion Total Marketing Expenses Percent of Sales

BDT 600,000
BDT 300,000 BDT 1,000,000 26.67%

BDT 867,000
BDT 433,500 BDT 1445,000 27.50%

BDT 990,000
BDT 495,000 BDT 1,650,000 27.5%

BDT 1,110,000
BDT 555,000 BDT 1,850,000 27.4%

BDT 1,3650,00
BDT 682,500 BDT 2,275,000 27.6%

Revenue: Monthly and annual Expense: Monthly and annual Customer satisfaction New product development

2008: Initiating sales promotion to educate dealers and advertising. 2009: Gaining the platform to earn revenue of BDT6.65. 2009: Reaching the break-even point. 2011: Increasing sales volume. 2012: Gaining satisfying profitability.

Difficulties and Risks:

Pran possesses the major parts of the market. As a new product, we may have to suffer if we cannot persuade the consumers. It is risky in the first year to make every consumer believed that ours is the best tasty and quality product. From the business view point, the restaurants may not be eager to use new product as they trust the common ones.

The Worst Risks: Other potential competitors may produce products with the same features. If the competitors decrease their price, initially we will not be able to decrease our price as we are just launching our product. For inflation and decreasing living standard, people may not be willing to buy this product and this may create the run on of our business.