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Marketing Plan of Square Sugarcane Juice KUSHOR

Submitted by:
 Israt Jahan Jerin, 2017-3-10-045
 Fahmida Kabir, 2018-1-10-252
Submitted to:
Dr. Salma Akter
Assistant Professor, Department of Business Administration
East West University

Letter of Transmittal

November 1st, 2018

Dr. Salma Akter
Assistant Professor, Department of Business Administration
East West University
Aftabnagar, Rampura, Dhaka

Subject: Submission of Term Paper

Dear Mam,
We (Israt Jahan Jerin and Fahmida Kabir) have done this term paper briefly.
It is a great achievement to work under your beautiful supervision. We have
tried our level best to build a clear perception on the topic assigned. Despite
of some limitations we have enjoyed preparing it and learned a lot while
working on the given topic. In writing this term paper, we have followed the
instructions.
It would be our pleasure if you find this term paper worthwhile and
informative. We will be glad to provide any further explanation if any
discrepancy arises. Thank You.
Sincerely yours
We are the member of the group
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Table of Contents

1.Executive Summary:..............................................................................................1
2.Situation Analysis :.................................................................................................2
3.SWOT Analysis :....................................................................................................4
4. Target Market or Customer :.................................................................................4
5. Strategic Market Entry:.........................................................................................5
6. Forecasting Sales:..................................................................................................6
7. Marketing Budget:.................................................................................................6
8.Distribution Channel..............................................................................................9
9.Track Marketing Activities:.................................................................................10
10.Evaluate our progress:........................................................................................11
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1.Executive Summary:
 Introduction :
KUSHOR is a new drinking item of Square Group by which this group is entering
into the beverage industry. Sugarcane juice is widely used in our country because
of its good taste and low cost. People try to find this kind of tasty refreshing drinks
in a cheap price. The main problem with this juice is it is served in a very
unhygienic way and it cannot be preserved for long time. We are going to serve the
juice in tetra pack packaging. In Bangladesh no company has launched sugarcane
juice till now. So we have decided to launch this product in a healthy way. As it is
served in tetra pack, it is secured from the tendency of turning black due to
oxidation. Sugarcane juice has lots of health benefits and amazing taste. It gives
strengths to the stomach, kidney, heart, eyes, sex organs and also very good for
teeth. But as it is served in an unhealthy way so that it can easily affect people’s
health badly. To solve this problem and as per high demand for the juice among
people Square Group has decided to launch KUSHOR which is directly obtained
from fresh sugarcanes and then processed and packaged in a salubrious way to
maintain its taste and nutrients.

 Company and Product Profile :

Square Group was established in 1958.The founder of this company is Mr. Samson
H Chowdhury. Though it started its journey as a pharmaceutical company but later
it has expended its business in consumer products, health products, hospitals,
textiles, toiletries, agro-vet products and many more. It has gained the trust of
customers because of maintaining high quality in every sector. Today there are
more than 28000 people working under this group. The current yearly turnover is
about 616 million USD. Under the great leadership of Mr. Samson H Chowdhury,
Square has become another name of trust and quality and it is set to continue its
progress globally.
(Source- www.squaregroup.com )
Kushor is the first step of Square Group to enter the beverage market. It is a
sugarcane juice which is in tetra pack packaging. The juice is collected from the
fresh sugarcanes and then processed with the high machineries and hygienic
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elements to preserve and packaging by keeping the nutrients same. We are not
using any kind of chemical which is harmful to health and the sugarcanes are
collected from The price is 15 Taka for 200 ml pack which is quite affordable for
all. By serving cold, this drink can act as a treat in hot sunny day and can remove
tiredness to replenish energy. The primary market objective is to achieve a market
share of 2-3% in the first 3 months and the primary financial objective is to achieve
sales revenue of 2.7 lacs to 3 lacs taka in the first 3 months. As we are charging a
minimum retail price and the juice is already very popular in our country and also
we are serving it by maintaining proper hygiene which is currently absent in our
country, we wish that we will get a positive response from the customers.

2.Situation Analysis :
 Market Analysis :
We are entering into an industry which is wide enough and has a large number of
customers. People of all ages want a refreshing and healthy drink to remove their
tiredness during their busy day. There is no such product for sugarcane juice in the
market.

 Target Market :
We have targeted all kind of people but we are actually focusing on the health
conscious people as well as all the people of Bangladesh on geographical
segmentation.

 Market Needs :
Many people in urban areas ignore the fact of choosing a drink that is not harmful
for their health because of taste, which causes many diseases in later. So, this
health drink can attract them as they can balance their health and taste both. Rural
people can also be benefitted from it as this drink is very much affordable.

 Industry Structure :
There are already huge potential customers in the beverage industry and as our
target customers are health conscious people, we are trying to make this drink
available anytime at any place so that it can be available to all easily.
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 Market Trends :
There are many traditional companies in this market who are doing their business
for many years. The market trend has changed and moved in many areas to cope
with the changing needs and wants of customers’. Our targeting customers usually
prefer drinks or juice such as Mango Juice, 7up, Coke, Fanta etc. Which focus only
on taste, not on the health issue. But situation is changing. Now people are not
satisfied with these drinks. They want unique and something new. They want to
get something different from the traditional drinks and also with health benefits.
These are the main trends of this market.

 Market Growth :
In beverage industry, specifically, this industry is so huge but and it is encircled
by many customers. We already found out that not all business people have the
ability to go for such a big project to introduce a top grade health drink that will
satisfy and ensure both taste and health. Therefore, from the recent surveys we
can say that this industry has a bit lower rate of market growth.

 Industry Analysis :
This industry has some critical factors. The most important of them is pricing. As
this is a new product of Square Group the price should be affordable to the
customers and profitable to the company. The depreciation costs, fixed assets costs,
production costs, packaging costs, salary and lot of other factors are critical, but
the pricing is set considering these factors. This industry mainly focuses on the
product taste, price and availability. 1 taka or 2-taka price difference is a key factor
in pushing this product into the market. Initially, these products will be pushed into
the different outlets for making them available into the market, and by proper
promotion, they will be pulled by the consumers.
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3.SWOT Analysis :

 Strengths :
1. Square Group has already achieved the trust of customers for maintaining
best quality in every sector which means it has a good brand image.
2. Huge investment.
3. The use of high quality machinery and hygienic elements to process the
juice.

 Weakness:
1. This is a new business for Square Group. This company does not have
previous record of doing business in beverage sector.
2. While keeping in mind the health issues, to maintain proper quality as
sugarcane juice cannot be preserved for long time.
 Opportunity:
1. Sugarcane juice is already famous for its amazing taste among all kind of
people.
2. The production cost is very low here.
3. Chances of huge profit.

 Threats:
1. There are many potential competitors who are already established
in drinks and beverage sector.
2. The challenge of gaining customers' trust in this product.

4. Target Market or Customer :

As we have mentioned before, our target customers are all kind of people but we
will focus on these people-

 Students at every level from school to universities.

 Employees who works entire day.
 Households and Passengers.
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 Demographics:
1. Age- There is no fixed age here. As, in summer season there is a large
demand for this juice but because of unhygienic servings most of the
people avoid this. We will specially target those kinds of people.
2. Income- Our target customers are mainly people from low to middle
class income who cannot afford costly refreshment drinks. For this
reason, we are charging a minimum retail price. As they need a
healthy refreshing drink in a cheap price on their busy day.

5. Strategic Market Entry:

 Make a clear product offering:
We need to be very specific about what we are offering through our product.
Our main offer to the customer is to provide a healthy, tasty, refreshing drink
in a cheap price.

 Research on target market:

We need to do research on our target customers. We have also done that
including going there in person. We have known their needs, wants and
expectation from this kind of product. We have seen high demand for this
product.

 Know the competitors:

As there are already huge competitors in the beverage industry, we have
studied on how they are doing their business and other important things in
terms to survive and expend our own business.

 Our mode of Entry:

From the factory our products are shifted to different local storages of our
company and then, these are distributed to the retail shops as much as
possible to make it available to the customers.
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6. Forecasting Sales:
Sales forecasting is the process of estimating future sales. Accurate sales
forecasts enable companies to make informed business decisions and predict short-
term and long-term performance. Companies can base their forecasts on
past sales data, industry-wide comparisons, and economic trends.
We can forecast our sales according to our previous sales.
As our first 3 month sales were total 2,70,000 taka for 18,000 ps. So we are hoping
for better sales in future.

Sales Forecast
140000 40

120000 35

30
100000
25
80000
20
60000
15
40000
10

20000 5

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7.Marketing Budget:
 Investing money in sugarcane business can help us to make good profits. It
depends upon the kind of investment we are ready to invest our hard earned
money. Some people expect huge profits by investing money in a big business set
up but some people invest a little amount of money that too in a risk-free business
and they gradually keep adding investment to improve business and ultimately aim
for huge profits. Sugarcane business can be started with very little investment and
on the other hand growing potential in this business is huge. Our financial budget
forecasting will include fixed cost, variable cost, unit cost, markup to the sales. It
will also include break-even point that is the intersection point of break-even sales
and revenue. Our forecast for each section is discussed below: Unit Cost: Our
forecasting will be for the unit cost of each packet. Unit cost of each 200ml
Sugarcane Juice is given below:
Our per product cost price is 10 taka and profit 5 tk. 10+5=15 taka (200ml)
Per day our estimated sell 200 ps.
Per day our estimated revenue 200×15=3000 taka
First 3 month revenue 3000×90= 270000 taka

Nutritional Profile of Sugarcane Juice

Quantity. 200 ML

Nutrition Facts
Nutrients Amount Per Serving Amount
Calories: 90.0
Total Fat 0.0 g
Saturated Fat 0.0 g
Polyunsaturated Fat 0.0 g
Monounsaturated Fat 0.0 g
Cholesterol 0.0 mg
Energy 100.0 mg
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Sodium 50.0 mg
Potassium 0.0 mg
Total Carbohydrate 31.0 g
Dietary Fiber 0.0 g
Sugars 31.0 g
Protein 0.0 g

Marketing Mix:

 Product:
As described earlier we improve our product quality. We use quality raw
materials in our product. We bring a differentiated Sugarcane Juice. We
added for the purpose of making our product more attractive to them. Our
product will be different in quantity for different price. We provide 200ml
packet for our Sugarcane Juice. Building a strong brand image is an integral
part of our product strategy. The brand and logo displayed on the product
and its packaging is so attractive and durable.

 Price: We price our product lower than other existing competitors. We price
Taka 15 retail price for each 300mlSugarcane juice, when price of same
quantity of other brands is more than Taka 25. We will follow cost based
pricing for this product.

 Place : To make Sugarcane Juice available everywhere so that our target

market can easily get the product is our motive. We will create strong
distribution channel for this purpose.

 Promotion: we will bring varieties in the promotion system for out product
KUSHOR Sugarcane Juice. Our current promotion will include internet,
print media, TV commercial, radio, selling promotion etc.
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8.Distribution Channel: A distribution channel is a chain of businesses or

intermediaries through which a good or service passes until it reaches the final
consumer. It’s basically perform the work of moving product from producers to
final consumer. A strong distribution is the only way to fulfill the purpose of
making a product available to it’s users. Manufacturers create the value but this
value actually delivered through distribution channel. So it’s clear that our all
effort will go in vain if we will unable to make our distribution channel efficient.
For this strong requirement we are going to recruit 10 efficient agents of KUSHOR
Sugarcane Juice throughout the city. Our distribution channel will be three level of
distribution channel. The agent will provide the product to the wholesalers. The
wholesalers will provide this to the retailers. Then consumers will collect our
product from the retailers. Our main target will different types of station (bus-
train- launch), school-college, hospitals for selling our products and our main
consumer will be the middle class people.

Packaging: This is the packaging of our product

Sugarcane Juice KUSHOR. . We will try to make our packaging colorful so that
it’s attract everyone. We will make our product packaging color Green because
of the color of sugarcane is green and it’s the main theme of our business.
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9.Track Marketing Activities: tracking is vital to the success of any marketing

campaign. There have some important marketing KPIs we should be tracking.
Some of them are given below-
 Sales Revenue: understanding our sales revenue is important to knowing
how effective our inbound marketing campaign is. No company will agree
to spend money on something that isn’t generating money. Our sales
revenue is 270000 taka on last 3 months. And it’s increasing day by day.

 Availability: our product is available for the consumer and it’s also
affordable. Consumer can easily find our product in any general store which
are located besides different types of stations, school-college, hospitals.

 Customer Feedback: we want to know about customers satisfaction. But

crafting a useful customer survey is no so easy task to do. There are so many
potential questions we would be asking customers, but we have to be careful
in our approach. So for that reason we did a survey. For this survey we can
use tools like Qualaroo (featured above) to ask a simple question or conduct
a brief poll, with the goal of generating responses from customers who are
active on our website.

We are survey in different school and colleges. For that we need to make sure our
survey follows these proven guidelines-
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 Ask only questions that fulfill our end goal.

 Construct smart, open ended questions.
 Ask one question at a time.
 Make rating scales consistent.
 Avoid leading and loaded questions.

On the other hand we survey through the social media. Listening through
social media can prove particularly useful for gathering candid feedback
from customers. And finally by finished the survey we got a good feedback
from the customers. They are quite satisfied with our product.

10.Evaluate our progress: There are some important things to evaluate business
progress. The first three months of the year are done and gone, so this is a good
time to evaluate how our business is going. People appreciate our juice taste and
they happily buy it. By revisit our vision-mission-values, business plan and goals,
analyze our finance, client feedback, marketing plans we evaluate our business
progress. In first month of our business our total sale was 65000 taka and in the
second month it increased by 95000 taka. Finally, in the third month the sales
amount increased by 110000 taka and it is increase day by day. You are clearly see
a positive progress in our business.
140000

120000

100000

80000

60000

40000

20000

0
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