The fruit juice industry is one of the largest and most vibrant industries in Bangladesh, with a reach that extends to almost every corner of the country. This industry is filled with various types of juices, such as mango juice, orange juice, and more. People have been drinking these familiar flavors for quite some time, and it seems like there is a good opportunity for a new flavor in this market. This gives us a chance to serve the market with a totally different flavor, and that flavor is Strawberry.” Although people in our country are now familiar with this name, existing companies are not offering any strawberry juice. Our target is to introduce people to a new, distinguished flavor and gradually capture our target market. We are forming a new company and offering sugar-free, 100% pure strawberry juice in 250ml, 500ml, and 1000ml bottles.
Initially, we are focusing on the higher, higher-middle, and middle-class segments (according to income). We will start our operation by distributing our products in the Dhaka and Chittagong divisions. We will distribute our product through two well-known retail chain shops, as well as other retailers through wholesalers. Initially, we are setting up a plant with a capacity of producing 2500 tons per year, and we will increase production capacity as demand increases. We hope to reach the breakeven point in the second year of operation. Our detailed breakeven calculation is given in the financial part. We will use all kinds of traditional media to promote our product, including TV channels, radio, newspapers, and magazines.
We will also sponsor various events. Our main focus for positioning is to create a value-for-money brand by providing superior quality and winning consumer trust. The flavor of our juice itself is the Unique Selling Proposition (USP) of our product. Finally, based on the findings of our research team, we are hopeful that people will like our juice, and we will be able to capture our target market. Thus, we will be able to run a profitable business.
Strawberries, a new crop in Bangladesh, are gaining popularity. Due to successful cultivation in the 2008-2009 fiscal year, hundreds of people are interested in cultivating strawberries in the 2009-2010 fiscal year. Strawberries are highly profitable and nutritious fruits. The weather in Bangladesh is suitable for strawberry farming, although this delicious fruit is normally produced in countries with cold weather, particularly in the West. Strawberries first came to Bangladesh from the UK in 1996, but they were not cultivated for business purposes until 2005 in Rajsahi. Since then, the demand for strawberries has increased day by day in Bangladesh. Due to this increasing demand, Redstraws Company Limited has decided to market strawberry juice.
Company Overview
Redstraws Company Limited is a partnership and medium-sized business.
Statement of Finance
From Partners: Tk. 11 crore
Brac Bank SME loan: Tk. 4 crore
Vision:
Redstraws Company Limited puts its vision as building customer trust by being committed to the highest quality standards and achieving the highest market share in the Bangladesh Juice industry.
Mission:
Quality: Our strawberry juice will be of the highest quality and most nutritious. Innovation: We will make continuous attempts to innovate our product to remain relevant and competitive in the market. Integrity: We aim to ensure customer satisfaction in terms of taste and to foster extensive cooperation between suppliers and retailers in order to deliver value to customers. These are our aims and objectives.
The aim of our firm is to serve all types of customers in our country within three years, according to division basis, with the following objectives: gaining customer satisfaction through quality products.
Turn in profits from the second year of operations.
The creation of a unique and healthy product.
Become the best new fruit juice company in Bangladesh.
Product Characteristics:
- 100% pure strawberry juice
- Pure and sugar-free
- Diet juice
Products will be sold in:
- 250ml PET bottle
- 500ml PET bottle
- 1000ml PET bottle
Insurance coverage:
All equipment and assets purchased will be insured by Bangladesh General Insurance Company, ensuring recovery from any loss caused by uncertainty. Since this business will be commenced as a partnership, the death of one of the owners will not terminate the business.
Target customer.
60% of diabetic people, children, and health-conscious young people are our target audience. Our distributors will first target financially able customers, followed by middle-class and then lower-income and poor customers in Dhaka and Chittagong divisions. Once we have successfully captured these two divisions, we will expand our targeting to other divisions. We believe that if we can appropriately use and manage our targeting system, we can achieve success with our customers.
Sources of data.
Our source of data is the internet, other company profiles, published magazines by other companies, market surveys, questionnaires, etc. Findings: Our marketing research department has found an opportunity to provide our customers with a new taste through juice. The juice industry already contains a wide range of tastes and flavors, but we have found that there is no juice in the market like Strawberry Juice”. Our marketing research department surveyed the market and found that there are potential buyers for our product, which will satisfy their needs. So, we have the opportunity to enter the market and fulfill the gap. We are going to offer Strawberry Juice at a very reasonable price so that customers can easily get it at their convenience.
Situation Analysis:
We analyzed the situation using the 4C framework. 4C stands for customer, competitors, company, and context.
I. Customers:
Redstraws Company Limited is entering its first year of operation. It has tied up sales with two large retail chains, which will be opening 20 stores initially, covering two divisions – Dhaka and Chittagong – within one year. But our prospects will be the whole country. Redstraws is negotiating with another three large retail chains for the Sylhet, Khulna, and Rajshahi divisions. Those retail groups’ sales will capture all types of customers within 2 years. Then Redstraws will try to export this product for the international market by a multinational company.
II. Competitors:
Redstraws Company Limited knows about a nursery that has started cultivating Strawberry fruit. The nursery owners sell only Strawberry fruit, not Strawberry juice. Currently, there is no Bangladeshi company producing Strawberry juice, but there are some international brands available in a few reputed super shops. However, these brands are not available in all parts of the country. After conducting a detailed analysis, Redstraws has found that a major competitive advantage is the assured access to good quality raw materials from their own nursery at a very reasonable cost, as well as various types of packaging that other competitors have not yet offered. Therefore, it is possible for Redstraws to become a major Strawberry juice producer in Bangladesh and achieve great success in earning profits in the present and future.
III. Company:
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Started as a partnership company, Redstraws Company Limited has a total investment of TK 10 crore contributed by partners. One partner has a background in food technology with about 3 years of experience in the food processing industry, while the others have experience in beverage distribution and a good understanding of all types of markets. The initial planned capacity is to cultivate 30 tons of strawberries in a season, and all the cultivated fruits will be used for producing juice. The plant will operate for 6 to 8 months in a year due to the seasonal production of strawberries.
IV. Context:
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The annual production of strawberries in Bangladesh is estimated to be about 100 tons. Many lands are not used to cultivate strawberries because this fruit is uncommon and difficult to cultivate, and many farmers do not know how to grow it. Therefore, its production is limited due to a shortage of cultivation. If its cultivation is increased in any way, it is possible to ensure our production and increase customer demand in our country and export market. We can also capture a large scale of customers, which will lead to better success.
Marketing Plan:
Marketing objectives:
- Maximize profit margin
- Establish quality leadership
- Foster long-term relationships with customers
Communication objective:
Our marketing strategy aims to:
- Introduce a new juice flavor, Strawberry Juice”
Market Summary:
Our Research and Development department has provided us with clear and specific information about the market and customer demand. We are determined to serve our customers’ needs with our new and unique “Strawberry Juice” flavor.
Marketing Strategy
Our marketing strategy is based on becoming the potential choice for consumers in the juice market. It is based on superior performance in the following areas:
- Product quality
- Product price
- Superior taste
- Product availability
Positioning Strategy
Redstraws Company Limited will position itself as a value-for-money brand, one that is tasty, reliable, trustworthy, and fun to consume. Its appeal will be healthy, tasty, nutritious, and firm to eat.
Marketing Mix
I. Product Strategy: Strawberry juice is a very healthy and refreshing drink since fresh strawberries are full of vitamin C and antioxidants. The new brand name for the strawberry juice is Redstraws Strawberry Juice. Redstraws Strawberry Premium, Classic, and Kids’ Choice juices are unique because of their taste and flavor. They are nutritionally rich and available in 250 ml, 500 ml, and 1000 ml hygienic non-returnable bottles, tin cans, and aseptic packs. The product design and package for the non-returnable bottle (250ml) is also included.
II. Pricing: We established the price of Redstraws Strawberry Juice with the concept of cost-based pricing.
Redstraws Strawberry Premium: 250 ml – 22 Tk. 500 ml – 40 Tk. 1000 ml – 75 Tk. Redstraws Strawberry Classic: 250 ml – 18 Tk. 500 ml – 30 Tk. 1000 ml – 48 Tk. Redstraws Strawberry Kids’ Choice: 125 ml – 12 Tk.
III. Place:
Initially, Redstraws Company Limited will supply directly to their distributors, and the distributors will sell within the Dhaka and Chittagong divisions in the first year, capturing all types of customers. In the second, third, and fourth years, we will capture all divisions of our country and all types of customers. IV. Promotion.
The most successful advertising and promotion would be through the following:
- Television Advertisement- NTV, Channel I, RTV, ATN Bangla which are the most popular television channels in the country.
- Newspaper Advertisement- Prothom Alo, The Daily Star, Bhorer Kagoj etc.
- Radio- Bangladesh Betar, Radio Today, Radio Foorti, BBC Bangla service etc.
- We will also use some billboards and hold a sport event in various universities and colleges for the young generation to promote the product.
- We will also conduct a campaign to offer various departmental stores, general stores, and supermarkets.
Customers will benefit from:
Strawberries are one of the most delicious and nutritious fruits. They have the ability to remove harmful toxins from the blood and are recommended for sluggish liver, gout, rheumatism, constipation, high blood pressure, catarrh, and even skin cancer. Strawberries are a rich source of folic acid, which helps to prevent/reduce birth defects involving the brain. Nutritive Value: Per 100 g.
Vitamin A: 60 I.U.
Vitamin B: Thiamine 0.03 mg.
Vitamin C: 60 mg.
Calcium: 28 mg.
Phosphorus: 27 mg.
Potassium: 220 mg.
Carbohydrates: 8.3 g
Calories: 37
Redstraws Company Limited seeks to fulfill the following benefits that are important to its customers:
Accessibility: The customer can gain access to our product at their convenience. Customer service: The customer will be impressed with the level of attention that they receive. Competitive pricing: All products/services will be competitively priced relative to competitors’ goods.
SWOT Analysis:
The Research and Development department conducted the following SWOT analysis, which captures the key strengths and weaknesses within the company and describes the opportunities and threats facing the company.
Strengths.
Innovative product with a new taste and flavor.
Trained staff for customer service.
Strong relationships with suppliers that offer high-quality ingredients and fast delivery schedules.
Strong distribution channels in the target market area.
Weaknesses:
Sudden changes in the company’s economic situation.
Price is higher than competitors.
Scarcity of raw materials.
Opportunities:
Unique concept – Competitors currently do not offer Strawberry Juice.
High growth rate in our target market.
Change in container or product classification can be our opportunity.
Threats:
Increased competition.
Trend changes.
Economic, political, and technological factors of the country.
New entry of a similar juice company with a lower price.
Marketing Analysis
Potential Competitors’ Review
Competition in the juice market is very intensive. There are approximately 7 or 8 companies in the industry and 10 to 15 brands available in the market. Competition in the area of the juice market can be differentiated through taste and flavors. The main categories of taste and flavors in the existing juice market are Mango, Orange, Banana, Guava, Pineapple, Coconut, and Fruit Cocktail. The existing competitors and brands are Acme Agrovet & Beverage Ltd., Pran Dairy Limited, Akij Food & Beverage Ltd., Shezan Juice, Starship, Aarong, and Denish.
An analysis of the three major potential competitors is given below:
Acme Agrovet & Beverage Ltd.
Using the experience of manufacturing ethical medicine, ACME ventured to establish The Acme Agrovet and Beverages Ltd. in 2005. Primarily, it started with a small range of products like ACME mango and orange juice, which was followed by the introduction of ACME mineral water. Currently, The Acme Agrovet and Beverages Ltd. is thinking of launching a wide range of products, some of which are under development. Its juice products are packed aseptically using the unique Tetra Pack technology, ensuring a longer shelf life, no deterioration during shelf life, and freedom from preservative-related side effects. ACME Premium and Classic mango and orange juices are unique because of their taste and flavor and are available in 150ml, 250ml, and 1000ml hygienic UHT packs.
Pran Dairy Limited
The natural and sweet-tasting fruit juice is derived from the home orchard during the harvest to ensure the freshness and quality of the juice. It gives natural pulp squeezing fresh fruit, vitamins, minerals, and other ingredients that make the juice refreshing, natural, and nutritious. Its juice products are packed in returnable bottles, aseptic and tin cans, and non-returnable bottles. Pran Premium and Classic mango, orange, banana, guava, pineapple, coconut, and fruit cocktail juices are unique because of their taste and flavor and are available in 65ml, 125ml, 200ml, 250ml, and 1000ml.
Akij Food & Beverage Ltd. has launched three varieties of fruit juice under the brand name ‘Frutica’. The company, which is a concern of Akij Group, has already made the mango, red grape, and red orange juices available in shops. The juices come in 250ml PET bottles and are priced between Tk 20 and Tk 22. To manufacture the juice, Akij Food and Beverage installed state-of-the-art machinery imported from Germany. Frutica juices have zero preservatives and no artificial coloring, which helps maintain the pure taste of fruit in these products. Akij Food and Beverage Ltd imports mango pulp from India and pulp of other fruits from Germany to manufacture the juices.
Controls:
From the very beginning, we will keep an eagle eye on our consumers’ perceived value. We are planning tight control measures to closely monitor quality and customer service satisfaction. Our company’s goal is to satisfy our customers through superior value, so our control standard should also be consistent with our goal. After every month, we will evaluate our marketing plan and measure it against the standard. This will enable us to react very quickly in correcting any problems that may occur.
Production Plan
Location Analysis
One 2-acre plot has been purchased in the Shitakundo district on the outskirts of Chittagong. The area in which the plot has been purchased is an ideal location where there are no factories around, and there is little traffic during the daytime. This ensures a population-free environment to some extent. The corporate office of Redstraws Company Limited is situated in the heart of the industrial area of Agrabad with a space of 4000 square feet, having all the well-renowned banks around it.
Production Capacity
The current capacity of Redstraws Company Limited is about 2,500 tons per year. However, the company will be trying to increase their production every year and capture Bangladesh’s full market coverage. Redstraws Company Limited will produce strawberry juice from our own manufacturing factory. The strawberry juice will be produced with some elements that are necessary for producing juice, including pure water, strawberry pulp, refined sugar, citric acid, natural strawberry flavor, and beta carotene.
Organizational Plan
The company’s management philosophy will be based on:
- Responsibility and mutual respect
- Teamwork
- A very strong organizational culture
- Participation of the owners
Organizational Structure
Financial Plan
Financial Objectives
To increase revenue by at least Tk.160,000 per month for the first year and achieve a double-digit growth rate within three years.
Continue to decrease variable costs associated with juice production to reach the break-even point within the second year.
Total first-year sales revenue for Redstraws Strawberry Juice is projected at 3,45,56,000 Tk. with an average price of 32 Tk. per unit for a unit sales volume of 10,80,000 Tk. The break-even analysis indicates that Redstraws Strawberry Juice will become profitable after the sales volume exceeds 16,61,631 early in the product’s second year. Our break-analysis of Redstraws Strawberry Juice product assumes per-unit revenue of 32 Tk per unit, variable cost of 18.76 Tk per unit, and estimated first fixed costs of 2,20,00,000 Tk. Based on these assumptions, the break-even analysis is:
Break-even Analysis
Cost Structure for making Strawberry juice
- Direct Material: Tk.15,148
- Direct Labor: Tk.3,612
- Variable Cost: Tk.18.76
- Fixed Cost: Tk.2,20,000.00
- Average Selling Price: Tk.32
- Expected Sales (First Year): Tk.3,45,56,000
- Expected sales volume (First Year): Tk.10,80,000
Key factors to success include:
- Employee training to ensure the best juice preparation techniques
- Marketing strategies aimed at building a solid base of loyal customers
- Ensuring customer satisfaction with high-quality juice and services
- Management that treats every employee equally
- The creation of a unique, innovative, and upscale atmosphere that will differentiate the company from competitors
Conclusion:
In conclusion, we can see that the product the company is launching has a bright future in its market. As the product is innovative, consumers are likely to appreciate it. According to the R&D (Research and Development) department, this product will be a strong addition to our company’s product line.
References.
Here are some links related to the nutrition and marketing of strawberry juice:
- http://www.fitday.com/fitness-articles/nutrition/healthy-eating/the-nutrition-of-strawberry-juice.html
- http://www.slideshare.net/jugal007/shakti-juices-limited
- http://www.slideshare.net/rubayatppt/business-plan-of-smoothy-juice-company
- http://www.assignmentpoint.com/business/marketing-business/assignment-on-marketing-plan-on-lip-smacking-strawberry-juice.html
