2018

Marketing Plan
on Coconut Milk Powder

Submitted to
LECTURER SANJIDA AMIN
5/7/2018
 i

Letter of Transmittal
7 May 2018

Sanjida Amin

Lecturer

Faculty of Business Studies

Bangladesh University of Professionals

Subject: Submission of Report on “Marketing Plan of Coconut Milk Powder”

Dear Madam,

It is our great indulgence and pleasure to submit our Report on “Marketing Plan of Coconut
Milk Powder”. The submission of this report is a compulsory part for the fulfillment of our
‘Marketing Management’ course at Bangladesh University of Professionals. This report will
focus on the organizational goals and strategies of our startup company AZ Products Ltd. and
the market analysis of the first product ‘Coconut Milk Powder’ that the company will deal in.
Later a marketing plan will also be shown for the promotion, control and selling of our
product along with some contingency planning.

We do hope that the report depicting the analysis on related areas and our planning will
receive due consideration and proper evaluation from your end.

Sincerely yours,

Team Whiplash

Department of Marketing

Batch: 2; Section: B
 ii

Declaration

We, Team Whiplash, hereby declare that this Paper, submitted in fulfillment of the
requirements of the course of ‘Marketing Management’ for the degree of Bachelor of
Business Administration (BBA) from Department of Marketing, Bangladesh University of
Professionals, is wholly our work unless otherwise referenced or acknowledged. This paper
has not been submitted to any other academic purpose or further research.

Team Whiplash Members:

Jubair Ahmed Ananta (17251006)

Fahim Shahriar (17251008)

G.M Rakibul Hasan (17251022)

Towfiqul Islam (17251068)

Batch: 2; Section: B

Date: 7 May 2018

 iii

Acknowledgement

First of all thank goes to almighty Allah who has created us and provided us with the wisdom
required for the research.

We are really thankful to Sanjida Amin, Lecturer, Faculty of Business Studies of Bangladesh
University of Professionals, for the freedom she gave us in choosing our term paper topic and
her continuous guidance henceforth. Her guidance has been of extreme help to us. We are
also thankful for all the times, we consulted her and she answered with the utmost patience
and perseverance. Her guidelines for the report made it mandatory for us to seek learning in
the work environment, which proved to be very gratifying.

We would also like to thank those whose work inspired and helped us to conduct this
research on this particular topic and those who have helped us throughout the period.

Finally thanks to our family and friends for their continuous support and love that kept on
inspiring us all the time.
 iv

Abstract

This paper is a marketing plan for Coco & Pow, a coconut milk brand under AZ Products
Limited. This plan will cover all the necessary analysis; other marketing strategies and a
contingency plan that is specific for the Bangladeshi market.

This marketing plan for Coco & Pow has been created by its four founders to secure
additional funding for growth and to inform employees of the company’s current status and
direction. We are also interested in extending their product line as well as adding new product
lines. In addition, we plan to explore opportunities for online sales. Over the next few years,
AZ Products Limited can increase its distribution, offer new products, and win new
customers.

One of the major advantages of Coco & Pow is that there is no competition in the market.
Although we expect a rise in competition in the recent years based on its demand. When that
happens, to stand out from the competition, this marketing plan aims to improve on the
brand’s current advertising standpoint by shifting it from purely functional to being appealing
in both functional and symbolic ways.

To achieve this a local tagline will be introduced as the binding element in all advertisements
and other below the line efforts like merchandising, direct, freebie and online marketing and
events. The entire marketing plan will revolve around the theme “Spreading the flavor of
happiness”- to further enhance the emotional and symbolic appeal of the product.

After proper analysis of the environment we see that none of the legal, social or political
issues concern us due to our product being extremely environment friendly and nutritious.

So through this thorough report we expect to reach subsequent support and go forward with
our product.
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Table of Contents
Letter of Transmittal...............................................................................................................................i
Declaration............................................................................................................................................ii
Acknowledgement................................................................................................................................iii
Abstract.................................................................................................................................................iv
Product Overview:.................................................................................................................................1
Industrial Process of Coconut Milk Powder:.........................................................................................3
Situation Analysis:................................................................................................................................5
Customers..........................................................................................................................................5
Competitors.......................................................................................................................................5
Company...........................................................................................................................................5
Context..............................................................................................................................................6
Market Analysis:...................................................................................................................................7
PESTEL Analysis..............................................................................................................................8
Political (P)....................................................................................................................................9
Economic (E).................................................................................................................................9
Socio-Cultural (S)..........................................................................................................................9
Technological (T)..........................................................................................................................9
Environmental (E).......................................................................................................................10
Legal (L)......................................................................................................................................10
SWOT Analysis...............................................................................................................................11
Strength (S)..................................................................................................................................12
Weakness (W).............................................................................................................................12
Opportunities...............................................................................................................................13
Threats.........................................................................................................................................13
Porter’s Five Forces Analysis:.........................................................................................................14
Threat of New Entrants:...............................................................................................................14
Bargaining Power of the Suppliers:.............................................................................................15
Bargaining Power of the Buyers:.................................................................................................15
Threat of Substitute Products:......................................................................................................15
Rivalry among the Competitors:..................................................................................................15
Supply Chain Management..................................................................................................................16
Marketing Mix:....................................................................................................................................18
Product............................................................................................................................................18
Price.................................................................................................................................................18
Place................................................................................................................................................18
 vi

Promotion........................................................................................................................................18
Marketing Strategies............................................................................................................................19
Contingency Planning.........................................................................................................................21
STP Process…………………………………………………………………………………………...22
Conclusion…………………………………………………………………………………………….25
Product Overview:
The coconut palm, Cocos nucifera is a member of the family Arecaceae (palm family). It is
the only accepted class in the genus Cocos. The term coconut refers to the whole coconut
palm, the seed, or the fruit, which, botanically, is a drupe, not a nut.

Found throughout the tropic and subtropics area, the coconut is famous for its usefulness in
domestic, commercial, and industrial uses of its parts. Coconuts are an essential part of the
daily diet of many people. Coconuts are different from other fruits because they contain a
large quantity of "water" and when immature they are called tender-nuts or jelly-nuts which
may be harvested for drinking as an alternative for water. When developed, coconut can be
used as seed nuts, which can then be extracted or processed into oil from the kernel, charcoal
from the firm shell and coir from the fibrous husk. The endosperm is primarily in its nuclear
phase suspended within the coconut water. As the growth continues, cellular layers of
endosperm deposit along the walls of the coconut, becoming the eatable coconut "flesh".
When being dried, this coconut flesh is converted into copra.

The coconut is a benevolent crop and a perfect present to mankind. It has, during the span of
its history represented not only the source of food, beverage, oil seed, fibers, timber and
health products but also associated with magic, mystery, medicine and omen in the life of
people. The coconut palm tree provides clothing, instruments and homes and therefore,
remains an important source of earning livelihood to the inhabitants of the coconut producing
states in coastal areas.

Considering all of the factors discussed above, AZ Products Ltd. has decided to work and
business in coconut-based products. This company is currently just a start up from the mere
attempts of five independent entrepreneurs. So, we want to start our company business with
coconut milk powder since it is enriched with nutrients and has skin and hair benefits as well
along with the following health benefits-

Coconut Milk Health Benefits:

One of the fascinating coconut milk nutrition facts is that it contains a very high level of
saturated fats, but these saturated fats that are found in coconut milk are mainly short and
medium chain fatty acids, which are usually not considered by the body as fats. Instead, such
short and medium chain fatty acids have been found to provide instant energy to the body and

Page | 1
generate an increased level of focus. Apart from this, some of the most vital benefits of
coconut milk are explained below:

 A significantly large part of the fats found in coconut milk is lauric acid, which has
been proved to exhibit antibacterial, antifungal and antiviral properties. This fatty acid
can boost the immune system of our body and its disease fighting ability.

 Lauric acid can also be useful in maintaining the elasticity of the blood vessels and in
keeping them clean, which can lower the risk for circumstances like, atherosclerosis
and heart disease.

 Coconut milk also contains numerous antioxidant compounds, which can provide
protection against the harmful free radicals and their harmful effects on the body cells
and tissues.

 Coconut milk can improve the condition of the digestive system and encourage
digestion. It can relieve the possibility of stomach ulcers and acid reflux disease as
well.

 Coconut milk can provide about 22% of the recommended daily allowance of iron.
With this high level of iron, we can be safe from diseases like anemia which is caused
by iron deficiency.

 In addition to these, coconut milk can help to relax the nerves and the muscles,
control blood sugar level, lesser blood pressure and reduce joint inflammation.
[ CITATION See \l 1033 ]

Ingredients in a cup of coconut milk is listed on the next page.

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 Coconut Milk 1 cup (250 g)
Calorie 552 cal
Total Fat 57.2 g
Cholesterol 0 mg
Sodium 36 mg
Total Carbohydrates 13.3 g
Protein 5.5 g
Vitamin A 0%
Vitamin C 11%
Calcium 4%
Iron 22%

Since this product has many quality values and widely used in our traditional cuisines so we
hope to get a good startup in our business through this product.

Industrial Process of Coconut Milk Powder:

Selection of Coconuts:

The first step in manufacturing coconut milk powder is the assortment of coconuts. The
quality of milk powder will depend upon the excellence of coconuts used. Fully grown
coconuts of about 12 months are preferred for the preparation. Fully matured nuts are kept
with the husk for about one month so that the water inside the kernels is absorbed. This also
enables coconut kernels to get easily separated from shell walls. The coconuts are then de-
husked, removing the shells. After that the extruded white meat is separated. The brown
percentage of nuts is called tasta. It is then removed by scrapping it off. About 10-15 per cent
of the kernel goes as paring by this process. These parings can be pressed out, after drying, to
get oil which can be used for soap making.

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Feed Preparation:
White meat of the coconut is extruded and supplementary used as raw feed to Feed
Preparation section. This is a simple process which involves mixing of various elements in a
proper percentage by auto weighing system. The large metal tanks with agitator arrangement
are used to mix the ingredients. The tanks are also provided with the heating arrangement so
that proper temperature can be maintained. The feed is standardized in a specially designed
homogenizer.

Spray Drying:
The feed is then dried to get powder form in a spray dryer. The feed is atomized to fine
droplets in a large spray chamber by using either disc atomizer or series of high pressure
nozzles. These atomized elements come in contact with hot air and in the process water in it
gets evaporated. The feed droplet temperature at no time reaches the temperature of hot air as
it is constantly cooled by evaporative cooling. The dried product is settled at the bottom of
chamber. The dried product entrained with the exhaust air is further separated in a high
efficiency cyclone separator. The exhaust air is again passed through a wet venturi scrubber
for recuperating the fines not separated in cyclone. Clean air is then vented to the atmosphere.
In the process air is handled by means of two centrifugal fans. The entire procedure of the
plant is monitored and controlled through a locally mounted control panel or through PLC.

Storage, Mixing and Packing:

The dried powder is stored in storage silos from where they are weighed in auto weighing
system. Then the powder is mixed with other dry ingredients in right proportions. The
mixture is further weighed and sent to the packing section. There it is packed in the required
quantity.

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Situation Analysis:

Customers
AZ Products is entering its first year of operations. It has tied up sales with one retail chain,
which already has around 100 stores all over Bangladesh, especially in the northern and
southern part of the country and will be opening few more stores in the upcoming years. AZ
is also negotiating with another large retail chain. These two retail chains can take care of
about 60% of AZ’s sales in the first year.

AZ is exploring possibilities of selling its products specially for-

 Household occasional curries and deserts purposes

 Hotels and restaurants

 Confectionery and biscuit industry

[ CITATION Bri18 \l 1033 ], (Heidi, 2018).

Competitors
AZ, after a thorough analysis, has found that its major competitive advantage is the secure
access to good-quality raw materials at a very reasonable cost. Also having no local
substitutes, producers or competitors of this specific product at present is a big advantage for
the company. Its ability to scale up operations within the initial years by acquiring processing
units in strategic locations is another plus point.

However, this type of product is not very rare in other developed countries. So, there might
be some competitors like- superstores and online grocery shops, which might sell the
imported product of this kind. Moreover, if our business becomes successful, it will motivate
new businesses to grow up in the same market because of its profitability causes. [CITATION
Exp97 \l 1033 ]

Company
AZ Products started as a partnership company with total investment of 30 lacs, with 18 lacs
being the contribution from the promoters. Of the promoters, one has a background in food
technology with about 10 years of experience in the processed food industry, and the other

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has knowledge of the distribution process of products, and a good understanding of
institutional markets.

Initial plant capacity is for processing about 40 tons of coconut milk powder per month, on a
full-capacity basis. However, the capacity utilization is expected to be 60%, 70% and 90% in
the first, second and third year respectively. [CITATION Sma18 \l 1033 ]

Context
The yearly generation of coconut in Bangladesh is evaluated to be approximately 1 million
tons. More land is coming beneath plantations due to the deficiency of cultivate labor
and advancement of development by the distinctive state governments. Due to
the quick development in organized retail and advancement of coconuts
for trade, generation is anticipated to develop at the rate of almost 2% per year. Be that as it
may, it must be kept in intellect that due to varieties in climate, the generation of
coconut changes. [CITATION Fac16 \l 1033 ]

The quick development in wage has driven to an increment within the request for less

demanding ways to plan scrumptious and sound cooking and driven individuals think
of utilizing elective time and exertion sparing methods of using coconut drain instead
of the prior manual one so that they can appreciate the same ancient taste
and supplements from our item without any complexity.

Page | 6
Market Analysis:
Market analysis is a quantitative and qualitative assessment of a market. It looks into the size
of the market both in volume and in value, the various customer segments and buying
patterns, the competition, and the economic environment in terms of barriers to entry and
regulation. [ CITATION The13 \l 1033 ]

We require this assessment, so that we can find out how suitable a particular market is for our
industry. We can use this analysis to evaluate our current market or look at new markets.
Whether we are a startup, looking to expand, or reevaluating our current market, a market
analysis will help us to identify the attractiveness and efficiency of a market. It also identifies
current and future risks and opportunities of operating in that location. Market analysis will
provide us with a holistic, or well-rounded perception of the markets we are interested in for
operating.

In this market analysis, we are going to look at several characteristics of the market that we
are looking forward to enter. We are also going to determine how suitable our industry is for
the market. [ CITATION Stu03 \l 1033 ]

For analyzing the market we took very simple and well-known analysis tools.

a. PESTEL Analysis

b. SWOT Analysis

c. Porter’s Five Forces Analysis

They are described below-

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PESTEL Analysis:

Committee Act
Customs Duty of Copra Imports at 5%
P

Economic Growth of Bangladesh roughly 6% every year

Inflation Rate on Consumer Prices- 5.7%
E Local Currency Exchange Rates

Consumer preferences
Changing family and work patterns
S Changes in values and lifestyles of population

Emergence of Modern Innovative Technologies has made it

possible to Prepare and Store Dried Coconut Milk Powder
Developments in Agriculture
T

Production Quantity of Coconuts in Bangladesh is only 2%

Environmental Rules set by Bangladesh Environment
Conservation Act (BECA)
E

Introduction of stricter customs and trade regulations

Licensing regulations related to the industry.
L

Page | 8
Political (P)
The main political factor is the customs duty on Copra, which is 5%. [ CITATION Nat18 \l
1033 ]Moreover, there is a Coconut Committee Act 1944 (ACT NO. X OF 1944) to provide
for financing a Committee for the improvement and development of the cultivation,
marketing and utilization of coconuts in Bangladesh. [ CITATION Leg10 \l 1033 ]. It also
includes the perception of government inaction.

Economic (E)
The economic factor consists of the economic growth of Bangladesh which is roughly 6%
every year. It also depends on the increasing agricultural productivity through major changes
in delivery systems, in supply and pricing of inputs, and in the procurement and pricing of
output. The inflation rate on consumer prices is 5.7%. [ CITATION Ind18 \l 1033 ].

The coconut milk powder industry may be a portion of a provincial industry

which utilizes the country youth. In spite of the fact that the
capital recuperation is conceivable inside a brief period of time but at first we have
been confronting troubles in getting back from the banks.

Socio-Cultural (S)
Socio-Cultural covers the changes in family designs in Bangladesh, changes in customer
inclinations, changes in work designs and the changes in values and ways of life of populace.
The objective is to draw in buyer base of lower and center salary individuals by moo cost and
guaranteeing the quality item at the same time. Be that as it may, insufficient endeavors to
extend the showcase, to conduct advertise investigate, reputation and advancement have
driven to stagnation of such businesses within the past.

Technological (T)
The technological factors include the development of advanced and inventive innovations tha
t has made it conceivable to plan and store dried coconut drain powder and permit us to put
them in a parcel for ready-made utilize of the clients. Though innovation backwardness‘s
is preventing the development of the cluster some place, specialized know‐how
and prepared labor for the fabricate of different coconut based items in our nation includes to
Page | 9
our benefits. Besides, the rural and biotechnological segment is creating day by day in
our horticulture-based country.

Environmental (E)
Environmental factor contains abundance of established trees suited to local conditions.
Generation Amount of Coconuts in Bangladesh is as it were 2% so way better utilization
of common assets is required. At that point there are more exacting clean & phytosanitary
(SPS) measures additionally the natural rules set by Bangladesh
Environment Preservation Act (BECA). However, sudden natural disasters global warming
and other environmental issues might affect the production of coconuts causing lack of
natural resources temporarily.

Legal (L)
The legal factor comprises of the introduction of stricter customs and trade regulations and
licensing regulations related to the industry. The company must ensure that it does not violate
any laws and regulations in the home market. It should also stay focused about production
and consumption related policies and regulations by health authorities.

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SWOT Analysis:

S W
Pure and natural Preference to fresh
coconut over coconut
Modern and low Cost powder
production facilities
Lack of awareness of
Product saves time, availability of coconut
labor and energy milk powder
Nutritional values Short supply of skilled
Lower cost of bulk labors
packing Dependence on
Rural industry environment
employing rural youth Electricity problem

O T
Natural products are Changes in the
not widely found in the government policies
market Poor tree management
Growing export and declining supply
domestic markets More stringent sanitary
Potential benefits from & phytosanitary (SPS)
consumption and usage standards

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Strength (S)
The coconut milk powder AZ company will supply is the finest quality guaranteed. It will be
hundred percent pure and natural. No preservatives or other chemicals will be mixed with the
milk powder.

In Bangladesh coconut is an easily available and inexpensive raw material. So, it becomes
very easy to arrange the raw materials needed for production. In addition to that, modern
technology required for this process is also inexpensive. It needs minor cost of bulk
packaging as well. Therefore, we have the modern and low cost production facilities in our
business and when the production cost is low, the selling price will also be reasonable in
accordance with the product quality. [CITATION Tet \l 1033 ]

Coconut milk can surely be prepared manually but using our readymade powder will
minimize the time needed, labor employed and energy of people wasted, keeping the taste
and nutritional values of coconut milk constant. Moreover, this company is a part of rural
industry which will employ the rural youth contributing to national development as well.

Weakness (W)
The major weakness in the marketing of coconut milk powder is that the local people of our
country are not even known of the fact that the recent technologies can formulate and store
this kind of powder and make its uses much more convenient to the people than it was before.
For this reason, people might prefer to use fresh coconut and prepare its milk manually at
home rather than purchasing our milk powder.

AZ Products Ltd. is a company that will deal in coconut-based products. So, the operation of
our industry is fully dependent on the production and obtainability of coconuts. Since coconut
can only be found naturally in the environment so our industry will also have to be fully
dependent on the environment and always have to be watchful about the sudden natural
disasters, environmental contaminations and other environmental issues.

Furthermore, there is no such industry established in our country. Yet there is also a shortage
of supply of skilled labors in this sector, in addition to the electricity insufficiency existing in
our country.

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Opportunities
The opportunity for our product is that the city inhabitants are getting more interested in
using the natural goods. They are becoming more health conscious day by day. But natural
products without any preservatives are not widely found in our market. On the other hand,
coconut milk powder is very advantageous for health. It improves the health of human heart
by lowering blood pressure and cholesterol, builds muscle and also helps prevent Anemia.
Since we will maintain the nutritional values and add no preservatives, it will not cause any
impairment to health. [ CITATION Goo18 \l 1033 ]. Growing export and domestic markets
potential benefits from consumption and practice can also provide us with great opportunities
in the business market.

Threats
The main threat for AZ Company are the unstable political environment and the sudden
changes in the government policies of our country. Again, poor tree management declining
supply of our raw materials and more stringent sanitary & phytosanitary (SPS) standards can
also prove to be quite harmful for our production, distributing and selling processes.

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Porter’s Five Forces Analysis:

Threat of
New
Entrants

Rivalry
Bargaining Bargaining
among
Power of Power of
existing
Suppliers Buyers
competitors

Threats of
substitute
products or
services

Threat of New Entrants:

In every market, there is are more or less the threats of new entrants. If our business becomes
successful, it will motivate new businesses to grow up in the same market. As coconut tree is
available all over the country in huge amount, it will be quite easier for any new entrant to
enter. On the other hand, it is also easy to set up coconut milk powder plant, as only little
capital is needed and also the capital recovery requires very less time which might result in
the profitability of the business.

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Bargaining Power of the Suppliers:
Though there are no other coconut milk powder industry in our country but since there are
other large customers of coconut oil industries here which also require the same suppliers,
bargaining power of the suppliers is quite medium. In spite of that coconut is an easily
available raw material. So, the bargaining power of the suppliers is rather low.

Bargaining Power of the Buyers:

We expect the bargaining power of the buyers to be low at the beginning of the business.
However, the power can be increased if more competitors emerge in the same market. As
discussed earlier that the threat of new entrants is high, so if new entrants enter, competitors
will increase gradually. So, the customers will have more options then to move to other rivals
of our business. At that time their bargaining power can be increased, but it should be low at
the initial time of the business.

Threat of Substitute Products:

There are no local substitute products in the local market at present but many people don’t
know about the availability of this powder in the market yet and so they usually prefer fresh
coconuts and prepare milk from it manually for use.

Rivalry among the Competitors:

There are no rivals of this industry in the local market at present. Though the rivalry is very
less but it may increase in near future.

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Supply Chain Management:
AZ needs a strong supply chain to send the products to the ultimate users through proper
management. The supply chain for our product can be like this-

→ →
Local Coconut Sellers Coconut Milk Powder Warehouse
(Suppliers) Industry (Production) (Storage)

→ →
Distribution Centers Customers
(Retailers)

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 Supply Chain Management of AZ Products Ltd.

Local Coconut Sellers (Suppliers):

The coconuts will be collected from the local coconut sellers. As the coconut milk has less
longevity, it is important that the suppliers are near to the market. Since coconut is easily
available all over the country, AZ can collect and buy its raw materials from each locality
where the product will be produced and sold.

Coconut Milk Plant (Production):

After collecting the raw coconuts from the local sellers, the coconuts will be taken to the
nearby plant for producing the coconut milk powder, where also the packaging and labeling
will be done.

Warehouse (Storing):

Produced coconut milk powder will be taken to the warehouses near to the markets. The
warehouse can be shared with others or AZ can rent the warehouse only for coconut milk
powder. From this place, the product will be sent to the distributors appointed by AZ.

Distribution Centers (Selling):

The distributors will distribute the product to different shops and convenient
stores for reaching that out to the customers.

Customers:

From the local nearby shops, the customers can buy the final product. The selling price
(maximum retail price) will be set by AZ and will be printed on the label.

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Marketing Mix:
Product
Initially we will start our company with coconut milk powder of 500 gm and 1 kg plastic
pouches and then we will launch other coconut based products like- coconut milk beverages,
coconut cooking oil, coconut vinegar, desiccated coconut powder, coconut flour etc. to offer
a broad assortment to its customers.

Price
Our product will offer value for money beginning with the 500 gm pack at 125tk and 1 kg
pack at 250tk. A discount of 10% will be offered in the invoice price for volumes exceeding
50 kgs per month. The company itself will decide the maximum retail price to be printed on
the packs.

Place
At the beginning the company will supply to retailers directly but gradually we will launch
our products under the brand name ‘AZ’ in the major areas of our country at selected outlets
through wholesale channels but our main focus will be on Dhaka since the city bears more
population who are economically solvent having busy life schedules, where time and labor
efficient products like ours are valued.

Promotion
The basic promotional route will be efficient supply chain management, ensuring the quality
of the product at its best and try creating a hype in the market. It will also include weekly
visit to headquarters and major outlets by senior personnel, including partners, continuous
feedback and developing the product likewise, multiple contacts with distributers and
continuous marketing

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Marketing Strategies
Direct Marketing:

AZ will visit different organizations and communities in different festivals or community

programs where popular dessert companies make products using coconut milk and try to
promote the products to the participants or guests there.

Freebie Marketing:

We will provide sample products to the different target potential consumer groups, like-
restaurants and confectioneries so that they get the knowledge about the good uses of our
coconut milk powder and give them a good experience so that next time they buy it. For this
we will rent few pickups and hire two persons to operate the activity. Then we will provide
them with our free sample packets and take feedback from them. All feedbacks will be
analyzed to figure out the coming development of the product.

Supply of Promotional Gifts:

While promoting in different organizations or communities and during festivals or

community programs AZ might give people free T-shirts, which will have our product logo.
This will be very good in the sense of getting exposure immediately since summer is coming.
We can also supply small bowls and tiffin boxes having our sticker as free with our product
initially for its promotion.

Seasonal Discounts:

On occasional seasons our prices might be reduced to 5tk and also the products will have
code and at the end three lucky winners will be given a gift hamper.

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Social Media Marketing:

Nowadays one of the best ways of promoting products is using the social media. AZ will
promote its products on the existing social media pages: Facebook, Twitter, Google +,
Instagram etc. as well as make a TVC attracting people.

Creating Concerns through Agents:

AZ will select few personalities who will call and manage to talk about our product in the
social gatherings making a huge impact by channeling information in front of a few audience
and for that we will compensate them.

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Contingency Planning
Contingency planning is developing responses in advance for numerous situations that might
affect business. Although just the negative events probably come to mind first, an ideal
contingency plan should also address positive events that might interrupt operations - such as
a very large order. Again, every business has the possibility of a situation that unfavorably
impacts operations. If the response to the situation is not good enough, it might have a
dramatic impact on the future of the business, such as loss of customers, loss of data, or even
the loss of the business. [ CITATION stu18 \l 1033 ]. For all these reasons, AZ has wo the
following contingency plans:

Revenue exceeds projections:

If revenue generated is higher than we anticipated, we can put the extra profit into a fund with
a view to use it for the next fiscal year. We can put more effort into the marketing arena with
that extra revenue. What we need to do is figure out what we are doing well and what has
generated this success so that we can build upon it in the forthcoming years. We could also
use this money to redecorate existing locations or build supplementary venues. All of the
money should be reinvested into the company in hopes of continual success.

Revenue misses projections:

If revenue is noticeably less than what we predicted for our business, we need to take a step
back and see where we have failed. We may redefine how we market and for whom.
Ultimately, what is necessary at this stage is a revamping of our product and realizing
adjustments are needed to be made. What we do not need to do is take away marketing.
Marketing is how will we regain the consumer’s confidence and rebuild our profit margins.

Production of Coconuts are Poor:

This may happen anytime to our industry due to the sudden occurrence of natural disasters
since our company is entirely dependent on the production of coconuts. In such cases, the
selling price of coconut suppliers also rises. Therefore, AZ should always be prepared for this
type of situations. The industry will always preserve some coconuts so that the industrial
process is not interrupted.

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AZ receives bad publicity:
Whether it is via a publicly recognized lawsuit, unethical practices, or socially negligent
decisions on domestic or foreign ground, it all goes back to quality and preclusion of these
matters. We need to think globally and have integrity within our company.

Industry sales come to a halt:

We do not foresee this to be a likely problem. We could announce new, different products
into the market that offer a new approach. For instance, more coconut beverages, coconut
cooking virgin oil, coconut vinegar, coconut flour or something with a health kick, if that is
how the trends are going.

Economy remains in a decline:

In this case, we should make an effort to satisfy our consumers in their time of need. If we
make an effort to keep them now, they will continue to use us when economic times return to
normal. We can reduce prices or reduce serving sizes. By adding value to our product it will
increase the products desirability and worth.

Consumer tastes change:

We cannot lose sight of who our consumers are and how to market to them. We may need to
differentiate an existing product to look new and exciting. We will need to take time to
examine trends in the industry and in the country as a whole. As an example, the zero calorie
health trend recently taking off. Adjusting our products to align with the current fads will
keep us hip and on the cutting edge. Maintaining our loyal customers is a big goal.

Delays in store openings:

Things can happen that are out of the company’s control, such as no real estate, construction
costs, and unreasonable lease or property rates. This will most certainly affect profit margins
and income. It results in not meeting expected revenues for the year. For this, we have a
backup construction company, where we may be able to proceed with construction as
planned.

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Failures by third party:
AZ deals with a number of third parties, like- suppliers, distributors in order to operate the
company, so we have the opportunity for accidents

or failures to happen. Fortunately, difficulties with third parties are usually isolated incidents.
If they become reoccurring problems, we will certainly opt to find different third parties to
deal with.

Segmentation, Targeting and positioning:

The STP process demonstrates the links between an overall market and how a company
chooses to compete in that market. It is sometimes referred to as a process, with segmentation
being conducted first, then the selection of one or more target markets and then finally the
implementation of positioning.

Segmentation:
“Common Ways of Segmenting Buyers” shows some of the different types of buyer
characteristics used to segment markets. The characteristics fall into these segmentation
categories:

Behavioral

Demographic

Geographic

Psychographic

Income

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Behavioral segmentation: What benefits do customers get, and how do they use our
product?

Coconut milk powder is a product of daily or weekly usage. Food such as desserts can easily
be made by this. It reduces the hassle of people and avoids the long process of producing
homemade coconut milk, making the food even tastier than usual. Customers will hopefully
use it sue to its characteristics and pricing.

Demographic segmentation: How do the ages, races, and ethnic backgrounds of our
customers affect what they buy?

Usually, coconut milk powder is a product which is not prohibited for any kind of people,
gender, or ethnic community. So, it does not have any kind of demographic segmentation.

Geographic segmentation: Where are our customers located, and how can we reach
them? What products do they buy based on their locations?

Our aim is to generate the idea of the product throughout the whole country, but prior to this,
our main target is to promote this product in divisional cities. Later, this product will be
promoted to other areas as well.

Psychographic segmentation: What do our customers think about and value?

Our choices and tastes vary from person to person. One may like a definite product and might
get addicted to that as well, On the other hand, the same product might not be liked by
another person. Coconut milk is an ingredient which makes food tastier, but it has a high
amount of fat which may harm cardiac patients and affect their health. We need to target our
buyers keeping all these in mind.

Income Segmentation: What is the annual or monthly income of the target customers?
Income segmentation is best suited for the products which are very specific, niche and are
priced high. As our product is not a niche product and its pricing is not high, income
segmentation won’t suit this product.

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Targeting:
An organization’s proactive selection of a suitable market segment (or segments) with the
intention of heavily focusing the firm’s marketing offers and activities towards this group of
related consumers.

Here we want to target major cities in our country like Dhaka, Chattagram, Barishal, Sylhet,
Jashore, Khulna, Rajshahi, Rangpur etc.

As Dhaka has the largest populations among those cities, we will mainly focus on Dhaka city.
If our plan works properly and if we can gain the market of Dhaka, our profit will increase
automatically and we will capture the whole country market.

Positioning:
Positioning is the target market’s perception of the product’s key benefits and features,
relative to the offerings of competitive products.

From the very beginning we will focus on advertising to gain more acceptance from our
customers. Though we have no competitors in the market as we are the first to launch this
product we have an immense opportunity in this product. Our key products benefits are to
reduce the workload of a human. People can make various types of delicious food in
occasion, various types of dessert by using our product. They can still make it, but our
product can save their time and cost both at the same time. Our main motto is to set these idea
to the customers mind by advertising and gain a permanent loyalty of our customers.

Conclusion:
Main we select this product just because we can collect raw materials easily in a cheap rate.
There is a huge opportunity in this sector if we can fulfil the properly. Even there is no
competitor out there and if we launch the product properly we think we can capture the
market properly. In other country this product is highly popular so we think in this way we
can success in this product.

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