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Executive Summary

We want to market Green Coconut Water. We have prepared this feasibility plan on that basis.
We have assigned a name for the product as ReFresh. Since the raw materials are very much
available in our country, we have decided to give the product an indigenous image. ReFresh
is a kind of soft drink that provides the consumers with processed green coconut water in bottles.
For the marketing purpose of the product we have decided to launch three product lines. The
ReFresh would be launched in the market at 250 ml. 500 ml. and 1 Litre bottle. We have set a
reasonable price for the product so that all kinds of people can afford to buy this soft drink. We
have followed the Target Costing pricing approach. We would gain a competitive advantage, as
this is a first hit in the market.
We have prepared a financial documentation for this feasibility plan of a new product. We have
prepared the feasibility plan for five-year basis. We have given an elaborate discussion on
financial summary at the later stage of the feasibility plan. We have followed the Target Costing
Pricing Policy; which means an ideal price is set first based on customer considerations, then
target costs will ensure that the price is met. We decided the market price before. Then we
calculated the estimated unit price & fixed price. Then we decided how much profit margin is
possible on each of the product line. We have assigned three different profit margins for three
product lines. This price setting is based on the current market research.








New Product
1. Product Description
1.1 Product Portrayal
Refresh is a product that serve different segment of customer. The product is green coconut
water, which is unique in the current market. The green coconut water will be processed and sold
in glass bottle of convenient sizes of 250 ml, 500 ml and 1 liter. The green coconut water will be
very much ReFreshing and provide great support to the sick and health conscious people. Our
target market is very large with different segments. Our expected sales are very high.
1.2 Product Profile
Name of the Product: ReFresh
Type of Product: Green Coconut Water
Ingredients: Pure natural green coconut water,
Sugar, mineral salts, vitamins C.
Container: Stylish glass bottle
Container size: 250 ml, 500 ml, 1 Litre
Product Price: 250 ml for Tk. 12
500 ml for Tk. 18
1 litre for Tk. 38
Estimated Durability: 12 Months from date of manufactured
Machinery used: Advanced technology imported from
USA, UK and Netherlands.
Brand Slogan: Get Refreshed!!
2. Market Research and Analysis
Our company wants to develop and introduce a new Product. So, we have gathered information
through in-depth interviews. We made a survey of the market to have a clear idea about our
market, our customer demand, needs and wants. This information helps us to know about the
current market and prospects of our new product.
2.1 Market Description
Bangladesh is a country of about 150 million people.. The total market size of the soft drink
industry is about 20 million and day by day it is increasing. We have a spread nationwide market
of different convenient product. People are nowadays very much concerned about the market and
product conditions. So we have a growing prospect of customers of ReFresh. Among the
population we worked out few segments of customers who will prefer our product most.

Get Refreshed!!
2.2 Market Segmentation and Targeting
Market Segments
We have observed and analyzed the market and based on the nature of the market we segmented
the market in the following sectors:
Geographic Segmentation:
Sylhet
Rajshahi
Khulna
Barishal
Chittagong
Dhaka

Demographics:

Individuals
Family
Sportsman
Business buyer

Psychographics:

Higher class
Higher mid class
Middle class

Behavioral:

Sick people
Health conscious
Sophisticated who take the new product from the market
Target market and projections:
We have targeted a huge market segment for the product. Bangladesh is a large populated
country. Lots of people are looking for such a product. Green Coconuts are not available all the
time. For example: a person walking on the street. Suddenly he feels thirsty. Now if he wishes to
drink green coconut water he cannot find it easily If we launch our product in the market, a
person willing to drink green coconut water can have it from a nearby shop. At present this is not
possible. Our target market includes health conscious people, sick people, sportsperson &
many other consumers, which we have segmented from the Demographical, Geographical,
psycho-graphical & Behavioral point of view.
Target Market:
Health Conscious - 32%
Sick people - 43%
Tourist 3%
General people - 22%
Health conscious: Health conscious people basically the sports person are one of our largest
target market. In this segment, we get a lot of potential customer. One third of our total
population is young. This is a significant number that we have to concern about them and
provide product, which is fit for them. About 5 million people of this total number are health
conscious.
Sick people: Sick people are one of our major considerations. More than 1 million children
suffer from diarrhea that needs liquid food. Not only child but also the adult might suffer from
those types of problems.
Tourists: Every year a huge number of tourists visit Bangladesh. We want to provide them with
ReFresh.
General Customers: Besides the above segments, the general customers will acquire a
significant portion of our target market.
Market Needs:
ReFresh wants to satisfy its customers need. Thats why it is important to identify the market
needs. Our first consideration is to provide the best product to its customers. Thats why we offer
three different sizes of bottle with different prices for its different segment of customers.
250 ml: The lowest price for the rural mid social class and individuals.
500 ml: Its target the sick people and tourist.
1 litre: For a small family.
2.3 Competitive Analysis
The Soft drink industry is very much competitive. Many soft drink companies have acquired a
significant portion of the market. But the unique features of ReFresh will take it far beyond the
reach of the competitor. Because, no one has yet thought about selling green coconut water in
such a specialized way. To evaluate our prospect of ReFresh in the current market, we have
analyzed the market situation in various ways. Following are some demonstration of the analysis:



2.3.1 SWOT analysis:
The product existence in the future is depending on its strengths, weakness, opportunities and
threats analysis:
Strengths:
Available input materials
Low production cost
Technological and marketing knowledge
Strong distribution channel
Easy manufacturing process
Reasonable price
Weaknesses:
It is easy to copy the idea by others
Taste differ from the natural green coconut water
Green coconut water cannot be preserved for longer period
Opportunities:
Monopoly market
Large market
High demand
Might have a chance to get subsidies by Govt. to export
Threats:
High competition in future by copying the idea
Entrance of new product
Alternatives are avoidable in some segment
Uncertainty of launching a new product.
2.3.2 Competitor Analysis
The major soft drinks and juice companies of current market are:
Pran Groups
Uro Cola
RC Cola
Coca cola
Pepsi
Acme
Danish
Distinct Competency:
These companies can try to entrance our market by launching new product lines to compete us.
Yet, we have distinct competitive advantage. That is our product is still brand new. The other
companies will take some time to enter into the market. Till then we can have a monopoly
market condition. The other advantage that we have is lower price. We will sell products in
reasonably lower price then other competitors do.
Strategies against competitors:
To compete with the major competitors we can adopt the following measures:

Providing the best service to create high customer satisfaction
Reasonable and acceptable pricing
Promising and providing top quality product
Launching highly effective mass promotional activities
Continuous innovation and modification of the products
Creating and maintaining long term customer relationship
Creating Brand Loyalty among the target consumers
3. Market Plan
Pricing Strategies
We have decided to set a reasonable price for our product when we will develop it. We
considered many factors in setting the pricing policy. We will describe a six-step procedure:
3.1.1. Setting the pricing objectives:
Our company has decided where it wants to position its market offering. We have chosen our
objective to maximize market share. We believe that a higher sales volume will lead to lower
unit costs and higher long-run profit. We have set the lower price because we assume that the
market is price sensitive. Our overall objective is to capture the maximum market share by
setting lower price.
3.1.2. Determining Demand:
Each price will lead to different level of demand and therefore have a different impact on
companys marketing objectives.
3.1.3. Estimating costs:
We have estimated the cost and want to charge a price that covers the cost of production,
distribution and selling the product, including a fair return for its effort and risk.


3.1.4. Types of cost and level of production:
There are two types of cost: a) fixed and b) variable. In our new product development project
fixed cost is 2,00,00,000 taka. Fixed cost includes- machinery, monthly bills, and salaries of
employees and so on, regardless of output.
There are some variable costs like-cost of bottle, packaging and so on. These costs tend to be
constant per unit production. We have estimated that per unit variable cost is Tk. 6.3 for 250 ml,
Tk. 12.6 for 500 ml and Tk. 24.4 for 1 litre.
3.1.5. Analyzing competitors costs, prices and offer:
We have analyzed our competitors price and found that Pran charges tk.10 for 250 ml bottle,
Starship charges tk. 12 for 250 ml Pac.
3.1.6. Selecting a pricing method:
We have chosen the target costing method to set price for our product; pricing that starts with an
ideal selling price based on customer considerations, then target cost will ensure that the price is
met.
Promotional Strategies:
3.2.1 Advertising:
We initially will give more emphasis on paper ads and TV commercials. Because, advertising
through these media is the most effective way to reach the customers and position our product in
their mind. We are anticipating that this will have a massive impact on the teenagers and other
enthusiasts. Few neon signs and bill boards of ReFresh also can be set up in some core points
of the city. We hope to reach 75% of our customers through effective advertising.
3.2.2 Personal Selling:
Though personal selling skill is not that much effective for convenient products like ReFresh,
we will inspire and train the sales persons of the retail stores to convince people to buy our
product when they will come to buy any drinks item. The sales persons will inform the
consumers about the cool ReFreshing taste of ReFresh and about the nutritious aspects. We
hope that will play a significant role to increase our sales.



3.2.3 Promotional Tools:
We have also planned to apply some promotional tools. Initially for sometimes we will distribute
our product at 50% discount just make our new product familiar with the customers. This will be
the market-testing period for our product. Later, we may apply the strategy of giving gifts, lucky
coupons, tour tickets depending on the market and competitive situations.

Public Relations: We have future plans to hold seminars, commit social development,
supporting social activities, to arrange cultural functions and mobile game shows for publicity
purpose.
Distribution Channel: In the initial stage, we will distribute the products with our sole
distribution channel. When our market will spread out, we will distribute our products through
dealers. We will set our own outlets in few core market positions. When we will go for mass
marketing, we will supply our product nationwide through dealers. ReFresh will be available
in all retail stores of the country.
Services: As we are targeting to the top most customer satisfaction and building long-term
customer relationships, there is no alternative for us rather than providing top quality service.
Giving the customers timely and instant quality service is our primary concern. We even planned
to open few customer service centers where will response to customers interactions. We will
collect information, suggestions, ideas and opinions of the customers through these centers and
will innovate and modify our product accordingly. We also will change any defected product.
4. Manufacturing and Operations
4.1 Locations
We will set our manufacturing and other working areas in convenient locations. We will prefer
the locations to set up our manufacturing firms, warehouses and inventories in different core
business points of the country where it will be easier to both collect the raw materials and
transport the final goods to the market.
4.2 Human Resource
The board of directors will be responsible for the recruiting activities. Recruiting will be done
through written tests followed by interviews.
4.3 Technological Aspects
To create and innovate new quality products we need to use advanced technology. We need high
tech machineries imported from the foreign countries. Not to mention, skilled people to operate
them. We have already studied all the technical aspects and prepared a list of instruments and
their costs. The machinery will be collected when required.

5. Sales Forecasting
The following Table shows our expected sales for the coming five years:

Expected Sales(Per year)
250 ml.
Bottle(Tk)
500 ml.
bottle(Tk)
1 Litre
bottle(Tk)
First Year 40,00,000 45,00,000 15,00,000
Second Year 45,00,000 50,00,000 17,00,000
Third Year 55,00,000 58,00,000 20,00,000
Fourth Year 60,00,000 65,00,000 24,00,000
Fifth Year 63,00,000 67,00,000 25,00,000


Our anticipated sales chart shows that we expect people will consume the 500 ml. or 250 ml. bottles
more. Our projected sales tend to rise every year based on the product quality. Hence we have the
strategy of upgrading & improving our product at regular intervals keeping pace with the customers
changing demands & providing them with the best possible quality to keep our product unique from
that of our competitors.