LIQUID EGG

MARKETING PLAN OF OUR UPCOMING PRODUCT

DECEMBER 2013
ROYAL EGG FARM
MARKETING DEPARTMENT
HEAD OFFICE
XX-111-X,XXXXXXXX, DHAKA
BANGLADESH

Contents
Executive Summary ................................................................................................................................................................. 2
Current Marketing Situation ................................................................................................................................................... 4
MARKET SIZE ............................................................................................................................................................... 4
MARKET SHARE ............................................................................................................................................................ 4
COMPETITION................................................................................................................................................................ 5
SWOT Analysis ........................................................................................................................................................................ 6
Strength ........................................................................................................................................................................ 6
Weakness ........................................................................................................................................................................ 6
Opportunity ................................................................................................................................................................... 6
Threats .......................................................................................................................................................................... 6
Opportunity and Issue Analysis ................................................................................................................................................ 8
Objectives ............................................................................................................................................................................... 9
Our objectives are divided into three categories as like following: ............................................................................................. 9
Marketing Objective ............................................................................................................................................................ 9
Financial Objective ............................................................................................................................................................... 9
Campaign Objective ........................................................................................................................................................... 10
Marketing Strategy ............................................................................................................................................................... 10
TARGET MARKET ............................................................................................................................................................ 11
Positioning Strategy ......................................................................................................................................................... 13
Points of Difference ..................................................................................................................................................... 13
Product Strategy ......................................................................................................................................................... 14
PRODUCT DEVELOPMENT ............................................................................................................................................... 14
RAW MATERIALS ........................................................................................................................................................ 15
RAW MATERIALS SOURCE .......................................................................................................................................... 15
PACKAGE DEVELOPMENT ................................................................................................................................................ 15
Pack Size ..................................................................................................................................................................... 17
Table 1: Pack Size ........................................................................................................................................................ 17
Pricing Strategy................................................................................................................................................................ 17
Table 02: Price Structure of Competitors .................................................................................................................... 17
Table 03: Price Structure Liquid egg for Channel Members ....................................................................................... 18
Promotion Strategy .......................................................................................................................................................... 19
Advertising ................................................................................................................................................................... 21
Trade Promotion .......................................................................................................................................................... 21
Distribution Strategy ................................................................................................................................................... 23

Action Program ..................................................................................................................................................................... 25

Financial Projection ................................................................................................................................................................ 27
PROJECTED TURNOVER IN FIFTH YEAR:........................................................................................................................ 27
Table 04: COGS Calculation: 5 kg egg (plastic package) ................................................................................................ 27
Table 05: COGS Calculation: 10 kg Liquid Egg (plastic package) .................................................................................... 27
Table 6: One Year Projected Income Statement ( In Million Tk.) ................................................................................ 28
Implementation & Control ..................................................................................................................................................... 28

Executive Summary

Royal Egg farm is a new organization started in 2013. Royal Egg farm is a
poultry-based domestic company start business in Bangladesh in 2013. It is
getting ready to introduce a new product Liquid Egg this product will
produce from egg. As this product will produce from egg a marketing manager
I would like to introduce this product with a vision of achieving a new
position in the egg market in future. Keeping this perspective in mind the
product will be produced in Bangladesh and the raw materials will be collected
within the country because egg is our necessary goods & we also produce egg
and also 49825 (Farm Poultry and Livestock survey 2007-08) of egg farm
are established in our country. The annual production of egg is about millions
of tons since 1992-93 to 2012-13. Different farm and organization available
those are produce egg but none of organization produce liquid egg. For this
reason, the company introduces Liquid egg targeting the Bakery. The

company will first introduce the product Liquid egg in Bakery markets of
Bangladesh (mainly large Bakery those are produced lots amount of cake,
Biscuit, bread etc. Bakery like coopers, Mr. Baker, California pasty shop etc.).
In

progress

it

will

follow

intensive

distribution

and

carry

large

scale

advertising, consumer promotion, and trade promotion. Current Market of

egg is very competitive. Many numbers of local farms are operating in this
market. Besides those farms, many new farms are also to enter into the
market. But we have advantages that we will only one organization those will
produce liquid egg in Bangladeshi Market.

Current Marketing Situation

MARKET SIZE

Market size is approximately Tk 50 billion.

Egg market is growing at the

rate of 5% per year. Market of this product is Bakery and city family
oriented. It is relatively a fast moving product.

MARKET SHARE

There are many farms those are produce egg but none farm produce liquid
egg.
We are the first organization who introduces this new types of product.
Liquid egg is expecting market share 10% within two years. It is expected
to increase sales over the next few years because the market is expanding.
The primary buyers are bakery, who is conscious about their customer health
& different taste. The product is also used by consumers as daily homemade
food at all of their daily meals, Poached Eggs, cooked egg which are really an
interesting & delicious.. For this reason Liquid egg has a large potential
market which will provide food value & taste.

Market size of egg in our country

Tk. 50 billion

Market growth rate (per annum)

5%

Liquid eggs expected share

10%

Expected market size

Tk. 50 billion

COMPETITION

Current Market of Egg is very competitive. Large numbers of local companies

are operating in this market. Besides those companies, many new companies
are also ready to enter into the market. Among those companies only a few
are holding the majority of the market share. Major players are also trying
to expand their product range in this market to tab different market
segment.

SWOT Analysis
Strength

Unique Product

Unique taste

Availability of raw materials

Low price of raw materials

Natural

Longevity (6 months)

Weakness

Complex process of raw material collection.

Opportunity

Huge potential market

Government support

Favorable public attitude

Opportunity to export.

Strong competition from

Threats

Existing egg farm

Government regulation

Tax imposes- Because this liquid Egg is a new item in the

market, the government may impose high tax.

New law regarding food marketing

Weak infrastructure

Public unconsciousness about the food value of liquid egg

Political instability

Lack of subsidies

Opportunity and Issue Analysis

Since in Bangladesh egg is grown in about 50000 of farm and the annual
production of egg is about millions of tons the organization can easily collect
raw material at low price from rural market. The company can go through
large scale production that will give an opportunity to export it. Besides this,
the product has a large potential market as most customer want liquid egg
for egg with different values. Government can also give enough subsidies to
the production of egg. Yet increased competition from other egg production
companies can slow down its sales. From the threats the issues that Royal
egg farm must address are Should the Company develop own infrastructure to ensure the flow of
raw material in proper time?
Should the Company establish own production plant of egg to ensure
high quality & availability?
Does the advertising campaign make people inform about the food
value of egg and increase brand awareness?

Objectives

Our objectives are divided into three categories as like following:

Marketing Objective

Achieve projected market share of 5 percent within 6 months.

To represent an image of unique healthy taste in which it
competes.
To cover markets (Bakery) in Bangladesh.
To increase the production and distribution capacity to satisfy
future sales while maintaining present quality & image.
To

improve

product

quality

through

continuous

research

and

development.

Financial Objective

Earn an annual rate of return on investment of 15% after taxes

over the next two years.
To achieve break even quantity within 4 months.
Achieve one year total sales revenue of tk. 300 million based on
average price of per 5kg.
Gain new sets of customers within 3 months that worth for Tk.

50,00,000.

Campaign Objective

To create different taste, positive and permanent brand image.

To

establish

brand

personality

as

friendly,

reliable

and

trustworthy.
To create far-reaching awareness among the consumers.
To get the maximum demand from the consumers.
Our campaign will also focus on the different taste and healthiness
of the product.
Key points of the campaign are as follows.
o Liquid egg is a healthy product.
o Objective is to inspire consumers to trial purchase our new
product.

Marketing Strategy
Marketing strategies of liquid egg are primarily aimed at gaining attention,
increasing market share and establish the brand more dynamically. To
implement the strategy we considered a unique branding strategy and an
extensive promotional strategy. Proper packaging, positioning, pricing and
distribution strategy will also assist us to execute our strategy.

TARGET MARKET

Geographic
Country

Bangladesh.

Density

Bakery

Demographic
Income

Above Tk. 500000.

Psychographic
Social Class

Conscious about health of

customer based
organization.

Life Style

They consume it for

ensure healthiness.

Behavioral
Occasion

Regular

Benefits

Healthiness, Hygienic

User Status

Potential

Positioning Strategy

Points of Difference
The points of differences characteristics that make Liquid egg unique
relative to competitors- fall into following important areas:

It offers fully natural egg.

Price is relatively high.
It provides all the quality of egg.
It saves your time.
It ensures long lusting and healthiness.

Unique health and Hygienic. hygienic issue is the main Pods of our
Liquid egg.

The company takes several steps to maintain hygienic.

These are:

It collects egg from good quality farm.

It uses modern technology to break and packaging.

Then refine it.

Packaging. Liquid egg is introduced in high-value packaging graphics

that convey the unique, high quality, healthy product. The packaging
include:

Food grade plastic pack (BSTI approved).

High quality graphics are used in the packet design.

Attractive in looking.

Overall, the company positioning Liquid egg by the following slogan-

Keep eating egg without worry.

Product Strategy
Our product strategy includes development in products food value &
nutritious and also in packaging

PRODUCT DEVELOPMENT
Egg has been processed in two stage
1) Our washer wash egg after collecting them

2) Our opti Braker and seperating mechine will break egg and send them to

packageing.

Egg breaking

process

RAW MATERIALS
Egg
RAW MATERIALS SOURCE
In Bangladesh egg is grown in about 50000 of egg production farm. The
annual production of egg in millions of ton. It is our necessary goods. It is
seen throughout Bangladesh but is grown in abundance in Mirpur, gazipur,
Savar.

PACKAGE DEVELOPMENT

The package sizes of Liquid egg are the followings:

5kg Food grade plastic pack.

10kg. Food grade plastic pack.

Packaging will be portable and easily handle capabilities.

Its design include

Company name

Sign

Logo

Price

Expired date

Manufacturing date

It is eye-catching.
More convenient to use
It combines visual and verbal appeals

Pack Size
Table 1: Pack Size

Pack Size

Mode Of

Cartoon Size

packaging
5 Kilogram

Food grade plastic 4 Pcs

10

Food grade plastic 4 Pcs

Kilogram

Pricing Strategy

We know that different types of egg are available in current market. But
there is no liquid egg from egg which can give the consumer different health
ensures egg market in a new dimension. Thats why the company introduces
the Liquid egg. Since the company enters into this market in a new
dimension & targeted at only Bakery.

Table 02: Price Structure of Competitors

Pack size

MRP (Liquid
Egg)

5 Kilogram

900.00

10 Kilogram 1850.00

Table 03: Price Structure Liquid egg for Channel Members

Pack size

NSI

VAT

Distributors

MRP

Price (Including
vat)
5 kilogram

Tk 870

Tk.22

Tk.892

Tk900.0
0

10 kilogram

Tk 1792

Tk.44

Tk.1836

Tk1850.0
0

Promotion Strategy
Our advertising and promotions will pivot around five key strategies. Key
programs

includes

patronage

reward,

In-store

demonstration,

presentation

giving,

coupons,
outdoor

premium,

discount,

advertisement,

advertising, consumer offers.

Media Selection criteria

Education
Age of
Media

Coverage

audience

of
Gender

audience

Social class

Newspaper

Mid to
Daily star

High

15 to z

All

Protom
alo

High

15 to z

All

Kaler
konto

High

15 to z

All

Bangladesh
Protidin

High

15 to z

All

High

upper

Mid to

Mid to

high

upper

Mid to

Mid to

high

upper

Mid to

Mid to

high

upper

press

Independen
t

High

15 to z

All

Manob
Konto

Mid

15 to z

All

Low to
Shomokal

mid

15 to z

All

Low to
Amar desh

mid

15 to z

All

Mid to

Mid to

high

upper

Mid to

Mid to

high

upper

Mid to

Mid to

high

upper

Mid to

Mid to

high

upper

Low to

Low to

high

upper

Others

Specific
Bill board

area

Controlled

All

Advertising
o Outdoor Advertisement: We plan to have an exciting, informative, and
actively managed outdoor advertisement. There will be wall painting all
around the country.
o Press Advertising: We will undertake a considerable amount (based on
promotional expenditure) of press advertising in order to advertise our
special promotion like consumer offer and to enhance our brand image
actively. More often our targeted potential consumers go through daily
newspapers; the more likely they are inspired to our brand when they have
a need for our type of free offer.
Trade Promotion
A general phenomenon of the competitor activity is trade promotion. So to
ensure the width and depth of our products stock and also occupy more
space in the retail outlets in major metro city, we should adopt some trade
promotion.

o Allowance: The Company will pay promotional money to retailers and

special agent in return for an agreement to feature the manufacturers
product in some way.
o Discount: A straight reduction in price on purchase during a stated period
of time or for purchasing a stated amount. The company will also make a
plan and standard for discount.

Distribution Strategy

The target and potential consumers of Liquid egg live in all parts of the
country. So to reach our product to each and every consumer those are
related in business of Bakery, we will ensure the following activities.
a) Make the product available to maximum possible outlets.
b) Deliver the product at the right time.
c) Increase the depth of stock of each outlet.
d) Smooth

delivery

of

the

product

to

all

depots

and

distributors

premises.
e) Proper merchandizing i.e., ensuring proper display of our product on the
shelf of retail outlet.

Dhaka : Covering the Dhaka and adjacent sub-base markets.

Coverage:

Nationwide

Operational Center:

7 Nos.

Total Market Vehicles:

40 nos.

Distribution Channel:

Direct/through appointed
distributors

Warehouse No:

10 Nos

Warehouse:

Store Capacity

Liquid egg will be distributed in the market through two level channels. In
the distribution channel the company will use some distributors for delivering
the products to the Customer. These distributors buy the product,
warehouse it, and then resell and deliver it to consumers.
Our distribution channel:

Production plant

Distributor

Consumer

Action Program

Liquid egg will carry out its marketing strategy and achieve its objectives
through a wide variety of scheduled programs:

2014
January April: The Company will launch its product into the market. It will
follow pull strategy. Under this strategy it will spend Tk.5, 000,000 in
advertising and consumer promotion to build up consumer demand. It will give
coupons by newspaper that we will give buyers a savings when they purchase
Liquid egg. The company will follow selective distribution by promoting and
distributing it to major divisional Bakery (Dhaka, Chittagong, Rajshahi,
Khulna, Sylhet, Barishal).

May August: The Company will continue advertising and stop consumer
promotion. It will start to give trade promotion that will influence the
middlemen to carry this product and place it in an eye catching position to
occupy consumer attention. In this time the company will follow intensive

distribution. start to arrange some events and campaign program in divisional

area like big well known outlets
Food fair
Exhibition
Trade fair
TV live recipe show (liquid egg)

September December: The Company will take action depending on the

situation of sales and competitor action.

Financial Projection

PROJECTED TURNOVER IN FIFTH YEAR:

Net Sales Income (NSI) of Tk. 400 million.

Gross margin 20 % of NSI .

Table 04: COGS Calculation: 5 kg egg (plastic package)

Sl no.

Particulars

Amount in Taka

NSI

870

Raw Material

700.00

Packaging Material

2.04

Labor

2.10

Machine

164.76

FOH

1.10

COGS

79.19%of NSI

Gross Margin

688.953
180.96

(20.80% of NSI)

Table 05: COGS Calculation: 10 kg Liquid Egg (plastic package)

Sl no.

Particulars

Amount in Taka

NSI

1792

Raw Material

1400.00

Packaging Material

3.05

Labor

4.34

1710.94

Machine

382.56

FOH

2.05

COGS

81.06% of NSI

Gross Margin

1771.2

(20.80% of NSI)

Table 6: One Year Projected Income Statement ( In Million Tk.)

Jan-Mar

Apr-Jun

July-Sep

Oct-Dec

Jan-Mar

Estimated Sales

100

200

250

300

100

Less: COGS

80

160

200

240

80

Gross Profit

20

40

50

60

20

25

20

19

18

25

(5)

20

31

42

(5)

Estimated Units (10 kg

pack)

Less: Depreciation
Less: Advertising Admin.,
R&D, Others
Net Income

Implementation & Control

For control purposes, the plan also allows for month by month comparison of
actual versus projected sales and expenses. A contingency plan, attached, has
been developed for implementation in the case of severe downward pricing

pressure. Excellent promotion programs are vital in our type of marketing.

Salespeople will also be a fully trained in sale. Additionally, every quarter we
will try to monitor all the problematic areas by performing customer
satisfaction surveys in limited areas. We also prefer to purchase retail store
audit report, which would be the key to our strategic advantage in having
superior data on market share and prospects