Professional Documents
Culture Documents
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 “Dab pani”. Since the
raw materials are very much available in our country, we have decided to give the
product an indigenous image.
Dab pani 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 Dab pani would be launched in the
market at 250 ml. 500 ml. and 1 Liter 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 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. It is not always found in the right place at the right time. 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.
We have prepared a financial documentation for this feasibility plan of a new
product. As we are introducing the product in three categories at 250 ml, 500 ml
and 1 Liter bottles, we have prepared the Break-Even-Analysis for each of the
product line. We have prepared the feasibility plan for five-year basis.
For 250mls the break-even point is at 4158004 Units. That means if we sale
4158004 Units a year, we will make neither profit nor loss. So to make profit we
have to create a market demand in such a way so that more than 4158004 Units are
sold every year. Obviously the unit cost will eventually come down because of the
law of Marginal Cost. Then the break-even point will also come down. But that is
from the long run perspective. So initially we might suffer loss but ultimately we
would earn enough profit. The consumers will first taste the product by consuming
the 250ml bottles. So we might gain a short run profit from that.
For 500mls the break-even point is 4914004.914 units per year. So we have to sell
more than 4914004.914 units to earn profit. We know that after the product is well
promoted, people will eventually consume more of 500mls, as pet bottles are more
in demand. The price is such that people will turn to the 500mls because we are
providing them at lowest possible market price.
For 1 Litre bottles we have a different plan. We know many people are not going
to consume the 1 Litre package. So we have assigned more profit on them per unit.
Our target is to sell less quantity of products but achieving higher profit. For 1
Litre bottles we have estimated the break-even point at 1724137.931 bottles per
year. As we can see, we have prepared the selling price in such a way so that, to be
in a profit earning zone we have to sell least amount of units comparing the other 2
product lines.
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.
1. Product Description
‘Dab pani’ 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. The development
cost is tk.2.5 million approx.
1.2 Product Profile
Name of the Product: Dab pani
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: Coola Coola… Always Refreshing.
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:
comilla
Sylhet
Rajshahi
Khulna & Barishal
Chittagong
Dhaka
Demographics:
Individuals
Family
Sportsman
Business buyer
Psycho graphics:
Higher class
Higher mid class
Middle class
Behavioral:
Sick people
Health conscious
Sophisticated who take the new product from the market
Market Needs:
“Dab pani” wants to satisfy its customers need. That’s why it is important to
identify the market needs. Our first consideration is to provide the best product to
its customers. That’s 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.
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:
1. Monopoly market
2. Large market
3. High demand
4. Might have a chance to get subsidies by Govt. to export
Threats:
1. High competition in future by copying the idea
2. Entrance of new product
3. Alternatives are avoidable in some segment
4. Uncertainty of launching a new product.
Sales Forecasting
The following Table and graph show our expected sales for the coming five
years:
Expected Sales(Per year) 250 ml. Bottle 500 ml. bottle 1 Litre bottle
For 1 Litre