Mkt Juice Plan

8/6/2019 Mkt Juice Plan

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Executive Summary:

Juice is considered as the fresh source of refreshment. People like to take juice

especially in summer season but we are focusing the whole year. To give the customer fresh

juice we want to launch an outlet named JUICE CORNER in banani bazar. Juice corner is

preparing to launch several juices in growing market. We are targeting specific segments in the

consumer taking advantage of opportunities indicated by enough demand for juice.

The primary marketing objective is to achieve unit sales of 25550 glasses. The primary

financial objectives are to achieve first year sales revenue of BDT. 12, 13,625, keep first year

losses of BDT. 2, 11,760 and break-even early in second year.

In the first year of our operation, we will try to make our juice product popular to people and

try to earn their trust over our product by supplying superior quality fresh juice and with a very

friendly service. As juice is only available for a few months, we have to attract people and

convince them to buy our product in a very short time. We are planning to do that with our

fresh juice and attractive outlet with our service quality.

Objectives:Our main Objective is to provide fresh juice to people. Our other objectives are stated

below

Provide high quality juice

Collect naturally ripe juices, watermelons, apples and oranges to make

juice that are not harmful for the environment and human health.

Establish our outlet name as JUICE CORNER

Friendly and caring service

Gain profit in the long run.

Current Market Situation:


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Market demand of juice is growing day by day because people are getting health

conscious and want to take fresh juice item from nearby outlet. In Bangladesh, many

companies produce a large number of superior varieties of juice. These have wide demand in

the market and are commercially important. The study on the current juice market situation has

shown that, there is a huge demand of juice in the market but at the same time, people are

scared to consume juice because there are reports of using different chemicals on juice while

manufacturing such as flavor chemical. So, in order to capture the market juice has to maintain

its quality and at the same time earn the trust of the people.

Market Description:

Juice corner will mainly target banani. We will sell our juice at one selected outlet in

banani. Our product can meet the needs of higher middle class, lower middle class, upper class

peoples who needs quality as well as at a reasonable price. Juice Corner will always ensure

quality juice and hygienic disposable primary packaging.

Product Review :

Juice Corner will offer the followings:

Various items (juice,watermelon,apple,orange)

Fresh juice

Chemical free juice

Hygienically packed

Timely delivery.

Convenient and attractive packs

Guaranteed healthy and safe food item


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Competitive Review :

Candyfloss: Candyfloss is situated in banana bazar. Nearby university, students prefer

candyfloss for juice and other foods. Candy floss for juice and other foods. Candy floss

sells mango and apple juice. Candyfloss is doing business for 2-3 years.

Prestine: Prestine is a new and well-organized fast food restaurant. It sells mango and

orange juice. Prestine is selling mango juice at BDT 45 and orange juice at BDT 45.

Acme, pran and other fruit juice company:They sell packaged juice to customer.

They are holding the maximum market share. They have a good distribution channel all

over the Bangladesh.

Distribution Review

We are doing direct marketing so we do not have any distribution channel.

Direct marketing : Our own well decorated outlet and personnel will ensure timely

delivered our product.

Strengths, Weaknesses, Opportunities and Threat Analysis

Juice corner has several powerful strengths, which will help it to reach its goal by

creating store awareness and positioning. Our major weakness is lack of store awareness and

image and experience. Major opportunity for the store is the growing demand in the market in

banani. Lack of good quality of our raw material (fruits) in the supply market is a threat. These

are summarized in the following. Table- SWOT

Strengths

Juice Corner can build on four powerful strengths:


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1. Premium quality: Our Company will provide quality juice. We will always maintain

best quality and always-standard juice. As we maintain our delivery through our own

workers, we can deliver fresh juice to the market.

2. Fresh quality: Our Company is going to deliver fresh quality juice in our customers, as

we know in our country lots of business persons sell their juice with chemical.

3. Timely delivery: employees will ensure timely delivery to our customers within 6

minutes.

Weaknesses

As a new company Juice corner has some shortcomings:

1. Lack of brand awareness: As a start-up Juice corner has not yet established a brand

or image in the marketplace. Our customers do not know about our company and

business. We will address this area with our promotion.

2. Lack of experience: One of our major weakness is we have no experience of running

this business. For this reason, we can have some difficulties at first to run our business.

This problem can be overcome to some extent by taking advice from some experienced

person in the business.

3. Lack of time: Another weakness in this business is the shortage of time. Juices are

available only for a few months in the year such as mango for 6months. So, only in

summer season we can sell mango and watermelon juice.

Opportunities

Juice corner can take can take advantages of two major market opportunities:

1. Increasing market growth: people are preferring juice for refreshment. They are

shifting to juice from cola drinks. For this opportunity, market growth is increasing.


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2. Health consciousness:juice is a fresh item and it is good for health. People are getting

health conscious day by day and preferring juice.

Threats

We face two main threats of our product:

1. Lack of good quality fruit supply: Because of our main objective, we will only sell

high quality and fresh juices. But it is very hard to get all good quality fruits.

2. Perish ability: Again one of our major threats is, fruits can be perished.

Table: Juice corners Strengths, Weaknesses, Opportunities and Threats (SWOT)

Strengths Weaknesses

Premium Quality

Fresh quality

Timely delivery

Lack of brand awareness and image

Lack of experience

Lack of time

Opportunities Threats

Increasing market growth

Health consciousness

Lack of good quality fruit supply

Perish ability

Objectives and Issues

We have set high but achievable objectives for the first and second year of market

entry. The major company goals and objectives in terns of sales volume, market share and

profit for Juice corner is as follows:

First-year Objectives


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During the initial year on the market, we are aiming to draw the attention of the consumers.

Our first year objectives are:

1. Sale of approximately BDT. 12,13,625 (25550 unit) for the first year

2. Make the brand name popular and create a good image in the market.

3. Obtain 5% of the total local market share.

4. Develop brand awareness and image in the market.

Second-year Objectives

Our second year objective is to build on the achievements of first year.

1. Achieve 10% of the local market share based on sales.

2. Sale of BDT. 24,27,250

3. Earn 10% profit by second year.

4. Extend the business in other areas.

Issues

Our major issue is to build a good reputation in Local Market. We have to maintain

high quality by hygiene factor and ensure healthy & chemical free fresh juice to our buyers in

reasonable price. If we get our desired success in the first year of business, we will then extend

our business and start it in different areas in Dhaka.

Marketing Strategy

Juice marketing strategy is based on a positioning of product quality and service. Our

main target is local market. Primary business target is selling our product in our selected area.

In later stage if we see that, our business is much stable then we will target many areas.

In addition, our primary target is to catch those customers who are the nearby university

student. This segment can be described as demographic and geographic.


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Each market segment is covered by four marketing mix, which conveys our quality of product

to each target market segment.

Positioning

By market positioning, we will try to occupy a clear, distinctive and desirable place inthe mind of target customer. Juice corner want to develop a unique market position for its

product based on premium quality. We will distinguish our product by providing best quality,

very carefully processed juices. As the name suggests, we are going to provide actual quality

juice to all our customers.

Customer

Service

ReasonablePricingVariation

in ProductMARKETING

Special

service

Product

Quality


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Product strategy

Juice corner including all the features described in the earlier product review section

will also guarantee chemical free juice, exact quantity and timely delivery. Our juice will be

well presented to our customer. Building the Juice corner brand is the integral part of our

product strategy. The brand and logo will be displayed very attractively on all our disposable

glasses. It will be reinforced by its prominence in the introductory marketing campaign.

Pricing strategy

Juice will be introduced at Tk.40-70 (price differ for different categories of juice)

estimated retail price per glass. This pricing strategy will help the company to capture market

share fast. After introduction of different pack size price will be readjusted.

Distribution strategy

We are doing direct distribution so we do not have any distribution channel.

Figure: Juice corners direct distribution

Market Communication Strategy

We will advertise by postering. We will do postering to nearby university to attract

student and other local people. And our poster size is given below:

Length 1.5 feet

Width 1 foot

For the first year we will order 500 posters to capture the local area. The cost will be

approximately BDT 2500.

JUICE

CORNERCustomer


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Marketing Research

Using research, we will identify the specific features and benefits that our target

market segments value, feedback from market surveys and focus group will help Juice corner

develop the product. We will also measure and analyze our customers attitudes towards the

other juice sellers products. Finally, we will use customer satisfaction studies to gauge market

reaction.

Cost analysis

Variable cost /unit

1 unit = 1glass juice = 250 ml juice

1. Glass: BDT. 1.8

2. Water: 1 container = 10 litre water = BDT. 30

We need 25 ml water for 250ml (1glass) juice.

So, cost /unit = (30x25) /10000 = BDT. 0.075

3. Sugar: 1 kg sugar = BDT. 36 = 200 tea spoons sugar

We need 1 tea spoon sugar for 250 ml juice.

So, cost /unit = 35/200 = BDT. 0.175

4. Fresh fruit liquid: We need 225 ml fresh fruit liquid for 250 ml juice.

For mango , 1 kg mango = BDT. 60

1 kg mango = 4 mangoes (approximately)

1 mango = 60/4 = BDT. 15

1 mango = 2 glasses = 450 ml fresh mango liquid.

450 ml fresh mango liquid = BDT. 15

225 ml fresh mango liquid = (15x225) /450 = BDT. 7.5

For watermelon , 1 piece watermelon = BDT. 60

1 piece watermelon = 8 glasses fresh watermelon liquid.

8 glasses fresh watermelon liquid = BDT. 60

1 glass fresh watermelon liquid = 60/8 = BDT. 7.5


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225 ml fresh watermelon liquid = BDT. 7.5

For apple , 1 kg apple = BDT. 110

1 kg apple = 6 apples (approximately)

1 apple = 110/6 = BDT. 18.33

1 apple = 1 glass = 225 ml fresh apple liquid.

225 ml fresh apple liquid = BDT. 18.33

For orange , 1 dozen = BDT. 70

1 orange = 70/12 = BDT. 5.83

1 orange = 1 glass = 225 ml fresh orange liquid.

225 ml fresh orange liquid = BDT. 5.83

On average, 225 ml fresh fruit liquid = (7.5 + 7.5 + 18.33 + 5.83) /4 = BDT. 9.79

There is no carrying cost because we will buy these fruits from nearby fruit sellers in banani

bazar.

Electricity bill is a mixed cost. It has 2 parts. One is variable and another one is fixed.

5. Variable electricity cost: Total electricity bill = BDT. 12000 per month (approximately)

Fixed electricity bill = BDT. 118 per month.

Variable electricity bill = BDT. 11882 per month.

Expected sales volume = 70 units (glasses) per day.

Variable electricity bill /unit = 11882 / (30*70) = BDT. 5.666. Tissue-paper and straws: BDT. 0.17

Total variable cost /unit = 1.8 + 0.075 + 0.175 + 9.79 + 5.66 + 0.17 = BDT. 17.67

Fixed costs for first year

1. Rent of shop: Advanced payment = BDT. 500000

Rent per month = BDT. 15000

Rent per year = BDT. 180000

Total rent of shop for first year = 500000 + 180000 = BDT. 680000

2. Juice blender machine: Cost of purchasing 1 blender machine = BDT. 5000

We need 2 blender machines.

Total cost = 2x5000 = BDT. 10000

3. Other decorations: BDT. 100000


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4. Salary of employees: We will have 3 employees.

Total salary of employees /month = 3x5000 = BDT. 15000

Total salary of employees /year = 15000x12 = BDT. 180000

5. Fixed electricity bill: Fixed electricity bill /month = BDT. 118

Fixed electricity bill for first year = 118x12 = BDT. 1416

Advertising cost: (Postering)

Length= 1.5 feet

Width = 1 feet

We will order 500 posters for initial stage (1st year)

Total postering cost = 500 x 5=2500 BDT.

Total fixed cost for first year = (680,000+10000+100000+180000+1416+2500)

= 9, 73,916 BDT.

Setting the selling price/unit

For each item

Price of 1 glass Mango juice = 40 BDT.

Price of 1 glass Watermelon juice = 40 BDT.

Price of 1 glass Apple juice = 70 BDT.

Price of 1 glass Orange juice = 40 BDT.

Average Price of one glass Juice = 47.5 BDT.


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Budget

Total first year sales revenue for Juice is projected at BDT.12,13,625 with an average

price of BDT.47.5 per glass and variable cost BDT.17.67 per glass for sales volume of 25550

glasses . We anticipated breakeven after first year. Break-even Calculations indicates that Juice

will become profitable after the sales volume exceeds 32649 units. Our breakeven analysis of

Juice assumes per glass sales revenue of BDT.47.5 per glass, variable cost of BDT.17.67 per

glass and estimated first year fixed cost of BDT.9, 73,916.

Break-Even Volume = Total fixed cost (selling price variable cost)

= 9, 73,916 (47.5 17.67)

= 32649 units (glasses)

Controls

We are planning tight control measures to closely monitor quality that we have

promised and customer service satisfaction. This will enable us to react necessarily in

developing anything about our product.

Documents

Mkt Juice Plan