NEW PRODUCT DEVELOPMENT STRATEGIE OF

COURSE TIT: PRINCIPLE OF

MARKETING

COURSE CODE: MKT 221

STAMFORD UNIVERSITY BANGLADESH

Assignment of

Principle of Marketing
Course Code: MKT - 221

Subject: New Product Planning Process & Development by Practicing Principle of Marketing

Submited To

Ms Monalisa Salam
Course Teacher, Principle of Marketing Stamford University Bangladesh

Submitted By

Letter of Transmittal

Dated: March 14, 2009 Ms Monalisa Salam Course Teacher MKT-221 Stamford University Bangladesh Sub: Course Assignment of MKT-221Principle of Marketing Management Dear Madam, We undersigned are the students of your course of Stamford University Bangladesh, like to request to please accept our assignment of batch Group 5. The assignment is prepared as per your guidance. May, we therefore pray and hope that; you would be kind enough to accept our course assignment and obliges us thereby. Sincerely yours, Yours obediently

Acknowledgement
Firstly, we are very much grateful to the Almighty for enabling us to complete such a report. We like to express our heartiest gratitude to our very much favorite course faculty , Ms Monalisa Salam, Course Teacher, for initiating us in such a job. Without his advice and co-operation, it would not be possible for us to complete this report & assignment. We are very much grateful to. Md. Mostofa Kamal , Head of Information & Technology Division of Bengal tel com Ltd., for his substantial co-operation. Finally, we express our heartiest felicitation to all of students for their extended co-operation and support.

Introduction

Meat industry in our country is new concepts relative to other develop country. In Australia, USA, England, Canada etc, there are lots of meat companies producing and exporting meat to other country. Bengali meat has been operating their business since 2005. In our country there are lots of local business men who sell meat to local market in a traditional way. There are other retail chain shops like Agora, Mena Bazar, Nandan etc they also sell meat to different locations. Bengali Meat Company is the only company in our country who are producing and processing meat with an appropriate marketing plane shi;;; strategy. They follow all the marketing plan to establish their brand image. Bengal Meat Company is situated in Shathia, Pabna with a 9.21 acre land. It can process 20 tons meat per day. Their main focus is on export. They are exporting about 80% of their production to USA, UK, Canada, Dubai, Europe etc. The collect animal from local sources and supplies to some five star hotels name The Sheraton, The Radission, The Pan Pacific and The Westin. Their prime emphasis is on product quality and customer focus and also availability of their products. Bengal Meat Company is using the latest technological machineries to process meat with a controlled environment. Bengal Meat Company confident, that our operation is benchmark new trends in Bangladesh.

Company Overview Bengal Meat Processing Industries Limited, the lone and pioneer processed halal meat exporter and domestic supplier, has almost trebled its export growth in a span of nine months. The trend reflects the sharp rise in demand for processed meat in Bangladesh at a time when consumers have become increasingly concerned by reports of food adulteration. As the respective ministries of those particular countries issue export permission, everyone except the government has a very little role to play in this regard the management of Bengal Meat believes. Bengal Meat ha a huge market for processed halal meat mainly in both Bangladesh and Middle east and south East Asia. But the company is currently failing to tap the potential as it cannot penetrate into their markets due to some legal barriers. Dwelling on the barriers they are facing, he said being an exporting country Bangladesh has no certification from any other importing countries than Kuwait and Dubai. Such certification from any importing country is mandatory for an exporting country, as the country concerned is to satisfy the importer that the product exported does not contain any hazardous elements and germs. Marketing Analysis: This is the first of its kind and glorifying first mover in the ready-meat industry of Bangladesh. This first ever modern multi-species abattoir in Bangladesh capable of producing over 20 tons per day of processed meat beef, cara beef, veal, goat meat or lamb. The business entity, which now requires 1,600 to 1,700 cows and 2,200 goats every month to meet the growing demand in both foreign and

domestic markets, could also expand its export 20-25 times if the government had extended proper support, its officials clamed. Meanwhile, the meat processor is eyeing to grab the Malaysian market in two or three months as a team from that country will visit Bangladesh soon to asses the standard the Bengal Meat follows in processing the item. Officials of the countrys most sophisticated abattoir set up in the northern region with Australian technology said, initially, they would supply around 10 tones of meat mainly beef and mutton per day to local market. The products will be made available at the luxury hotels, restaurants and superstores in Dhaka and Chittagong cities, they said. Bengal Meat, dressed and packed with international standards, would cost Tk 10-20 more per kilogram than beef or mutton sold in butchers shops. The modern meat processing plant, set up with a daily capacity of 20 tones at Shanthia of Pabna, would also maintain reliable live cattles supply chain through organized and scrutinized procurement and monitored rearing. Besides exporting meat to the international market, the company has also concentrated on the local market with supplying around 2-3 tones of meat a day and is expecting a supply of 10 tones a day shortly. Now around 1,068 shops and business entities, including five star hotels, super shops and chain stores are the main consumes of processed meat of the company. People think processed meat is very pricey, but Bengal Meat takes only Tk 10 more than the market rate of common meat. As buying and selling of processed meat remains a very new vital concept in Bangladesh, the company is finding it difficult to convince

shoppers about the item. But with their innovative marketing planning process, the Marketing team of Bengal Meat believes that the scenario will be changing. It is observed that in the beginning its marketing and supply chain officials could hardly get order for more than five hundred kgs a day. But now Bengal Mean has reached 3 tones and it will certainly increase in coming days. About the meat quality the officials said they got the supply from their selected agents who collect cattle from different places of the country. Bengal Meat has reached an agreement with its suppliers that if the management find any hazardous disease in the supplied cattle they are bound to get the cattle back. The officials added that the supply chain of cattle of the country is not that much good as the practice of farming cattle for non-milking and non-cultivating purposes is very new. It has a huge international market we are in need of more investment in the sector. If the government withdraw duty on importing live animal for export purpose, as finally meat export will generate more income. Presently, Bengal Meat is enjoying 20 per cent incentive on export, but they face hardship as such incentive in given against opening L/C only. Vision of Bengal Meat: To serve Bangladeshi people with premium quality meat and meat products at challenging prices. We know that comes from the vision company success as well as the products planning process So we will check the management ability and

actual expertise and experience of Bengal Meat to meet its market expectation in the next chapters. Corporate Summary: Name of the establishment Head Office Address Bengal Meat Processing Industry Ltd. Sheltech Tower, 55, Bir Uttam Qazi Nuruzzaman Factory Address Road, West Panthapath, Dhaka-1205, Bangladesh Village: Korial, Post Office: Kashinathpur, Upazilla: Chairman Vice Chairman Managing Director C.F.O: Contact Number Santhia, District: Pabna, Bangladesh Eng. Kutubudding Ahmed Dr Taufiq M Siraj Md. Mazharul Islam Md. Omar Faruque Bhuiyan Phone Number: +8802913808, 880219136, + 8802913929 Fax: 88 02 81 58 276 Company/Plant registration Number Year of construction Total land area Total built in area e-mail: info@bengalmeat.com C-49088 (1072) / 2003 2005 9.15 Acre Total 70373 sq ft., where plant area covers 24,000 sq. ft. and the rest include animal sheds, by-products shed, general & chemical store, compressor and power station, office and staff dormitory. Company Location BENGAL Meats state-of-the-art factory is the first of its kind in Bangladesh. The factory has been built in Shathia Pabna and has been

designed and equipped by a leading Australian company in food processing automation. We meet world export standards and other crucial benchmarks like HACCP, ISO and HALAL.

Strategic Marketing Practices of Bengal Meat Company Countrys first state-of-the-art modern meat processing industry, Bengal Meat, has launched commercial production pledging supply of fresh, hygienic and halal meat to local consumers as well as foreign market. Providing Superior Customer Value Standard Product Qualify Bengal meat is producing a world class food quality of meat in our country. They are well known about their quality, hygienic, neat & clean meat. For their top quality of meat, they have achieved ISO 22000:2005. This certification is a combination of ISO 9001 and HACCP and the leading certification in food safety.

Totally customer focused

The company believes their success depends on their customers. Thus, their primary value is fulfillment of their customers needs. Their manner of achieving this success is to include value for money. They develop extensive network to reach the products at the doorsteps of their clients, and also recruit sales personnel throughout the country to ensure availability, and at all times focus on to produce goods as per customers satisfaction. Product Stratgie Halal Meat Bangladesh is the land of majority of Muslims. So, people always consider Halal foods to eat. With this consideration, Bengal Meat maintains all the rules and regulations to slaughter the animals. Product Differentiation : Bengal Meat has successfully differentiated its market by selling branded Halal meat at home and abroad. In different shops and superstores like Agora, Nandan, Meena Bazaar etc. we can see the poster of Bengal Meats logo and products. Moreover, weve learned that the company also exporting their product overseas. So definitely the company has successfully dominated the market with successful product differentiation. As Bengal Meat is totally customer focused, they always try to cover different needs or demands of their customers through different offerings. According to customer demands, they are offering differing types of meat. They are............. Cattle beef,

Cara beef,

Veal,

 Goal meat &

Lamb

Sheep Chilled or Frozen The also offer products according to different pars of the cattle.

Pricing Strategy Company also considers price level in terms of their quality. Since quality is the prime, price is little bit higher than from local market. Descriptions Beef with bone Beef without bone Meat front leg Meat back leg Lever/Koliga Beef kima Brisket/Sinah Placing Strategies Attractive Packaging : With the present demanding situation, company also offer their products with attractive packaging. This packaging helped them to build a brand image and to carry out from one place to another place. Distribution Networks: They are currently distributing their products in different five star hotels like- Sheraton, Radisson and Pan Pacific Sonargaon, Westin. Bengal Meat is also available in renowned Chain Shop in our country. Production Capacity: Bengal Meat has the first modern multi-species abattoir in Bangladesh capable of producing over 20 tons per day of processed meat beef, Cara beef, veal, goat meat or lamb. Highly Equipped Capital Machineries Price/Kg Tk 275.40 / $4.05 Tk 499.80 / $7.35 Tk 359.72 / $5.29 Tk 359.72 / $5.29 Tk 359.72 / $5.29 Tk 499.80 / $7.35 Tk 359.72 / $5.29

Bengal Meat Company is equipped with highly technological plant and machineries that can produce quality meat. These machineries is exported and installed by Food Equipment Australia (FEA).

Customer Relationship Management One of the core strengths of Bengal Meat is their CRM department. Through their dedicated effort they have established a top class customer relationship practice. Serving the customers efficiently has enabled them to become a leader in this sector. Modern Marketing practice * Market segmentation: From the vision statement of Bengal Meat we came to know that the company segments its market by selling premium branded and Halal meat for everyday eating. * Innovation Strategies This deals with the Bengal Meats rate of the new product development and business model innovation. As Bengal Meat is the first mover in the industry then the company is on the cutting edge of technology and business innovation with pioneer capabilities.

* Growth strategies In this scheme we ask the question, How should the firm grow? There are a number of different ways of answering that question, but the most common gives four answers: Horizontal integration: the company can open some shop in major cities and town in Bangladesh as well as in abroad at where it can sell its products. Currently Bengal Meat sells its products through channels.

Vertical integration: Bengal meat has already contracted with several farm and NGOs to provide the company with Cattle. May be future the company will establish farm to produce cattle for itself.

Diversification: it has geographically diversified its venture as it spread its business over abroad.

SWOT Analysis of Bengal Meat Strengths: Strong brand image Experienced top management

Global presence of Bengali Meat Large market share First mover advantage Good profitability Strong solvency Wide and powerful distribution system

Weaknesses:

In network coverage Concentrated ownership pattern produce differentiations

Complex operation

Opportunities: Government tax rebate Backward linkage for value addition Further diversification

Shortly carrier advanceman opportunities Leading job provide/opportunity

Threats:

Emergence of competent competitors. Government regulation and intervention.

Exchange rate of volatility. Cattle diseases. Availability of cattle.

Action Program
Quick response with the changes in the marketplace

Adopting New technology

They are using high technological equipment and machineries with the growing demand of quality and Halal meat. For this reason, Bengal Meat Company installed heavy machineries from Australia.

Promotional Strategy: The took some promotional activities to communicate to the target market. They had given some print ad on some popular newspaper. They are providing up to date information on their web site.

Information Technology:
Bengal Meat Company can be informed about the shortage of demand of meat from the clients. Employees also can be able to know about the present production information with the help of information technology. Global Marketing Strategy of Bengal Meat Premium Halal Abattori, a local company, has signed a deal to export halal meat to Malaysia as local processors are eying to grab a portion of US$ 50 billion global halal meat market. Premium Halal Abattoir, under a memorandum of understanding with Barakah Import of Malaysis, will export 50 tonnes of meat a year, with industry people demanding more government supports to explore potential market.

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The government meanwhile is likely to get clearance soon from the Department of Veterinary Services of Malaysia. The certification will enable Bangladeshi companies to export processed halal meat to Malaysia. Another meat processing company, Peninsula Abattoir, is in talks with buyers to export processed meat to Europen countries. The pioneer in halal meat processing industry in the country, Bengal Meat Processing Industries Limited, is exporting to the UAE and Kuwait. Bengal Meat has almost trebled its export growth in a span of nine months. The company started exporting about 3 tones of processed halal mutton a week to Dubai in May 2007, but now it exports 9 tones of mutton a week. In September 2007, Bengal exported 12.5 tones of beef to Kuwait per week, but now its weekly beef export to the country has reached 25 tones, according to the company officials. The government also collected information on sanitary and photo sanitary requirements of many countries to meet the export requirement. The government is trying to support businesspeople as the processed meat has export potential since Bangladesh is free from mad cow disease. Local business people said the government should establish a modern lab for testing exportable meat. Since establishing a lab is very costly the government should help entrepreneurs. Bengal Meat has a huge market for processed halal meat in East Asian and Middle Eastern countries. If Bangladesh can have a small potion of the market it could be a very potential sector. Currently, Brazil, China, India and Australia are the main suppliers of processed meat to the global market. The company started exporting about 3 tones of processed halal mutton a week to Dubai in Ma 2007, but now it exports

9 tones of mutton a week. Besides, since September 2007, the Bengal exported 12.5 tones of beef to Kuwait per week, but now its weekly beef export to the country has reached 25 tones, according to the company officials. Bengal Meat has been getting huge response from Kuwait and from the next as its will its export to the country with sending 50 tones of halal beef to the country per week. Bengal Meats CEO Mr. Mostafizur Rahman believes.

Budgeting
Budgeting is very much important in order to implement the promotional program. Bengal meat finance department provide or report of total budgeting cost. There are three steps should take when setting budget. Our industry , set his budget based on comparisons of each finding.
1. Bengal set budget based on his plan's goals and objectives and the

schedules which have recommended. 2. Bengal overview company average of marketing budget spent as a percent of sales for similar companies in his similar program. Using this second method will let company see if our budget appears to be realistic in comparison to other similar companies. This figure will help us determine if that our budget is too high or low compared to the company average. 3. Go through a third exercise which involves estimating our primary competitor's advertising and marketing budget based on what we know about their activities. Thus Bengal gain more competitive and possibly gain more market share. . Bengal also include:

an overview sheet illustrating our total budget a breakdown by medium a breakdown by product/market

Conclusion
Bengal Meat Company is the pioneer in meat industry in our country to provide a high quality meat with competitive price. Their price is little bit higher than traditional vendors as they are providing an exclusive quality of meat. They have succeeded to build their brand image locally and abroad. They strictly follow the strategic marketing tools by which they have gained a competitive advantage over its competitors. Bengal Meat has faced lots of problems like sources of raw material, local rules and regulation, demand, but they have overcome all the problems as because they are customer focused company in our country.

References/Bibliographies
1.

Website of Bengal meat, www. Bengal meat.com Class lecture Course Teacher, Ms Monalisha Salam. MKT 221 Stamford University Bangladesh Brochures and prospectus of Bengal meat.

2.
3.

Marketing Management by Philip Kotlar&Keller 1 Kevin 12th ed; Publish by Pearson edu,inc.