Assignment: 02

Course Title: Marketing Management

Course Code: MKT 301
Section: A

Topic: Marketing Plan of Mushroom chips.

Submitted To:
Dewan Muhammad Nur A Yazdani
Assistant Professor, CBA, IUBAT

Submitted By:
Khadiza Enam Bithi ID: 20102106
Muhammad Tanveer Ahmad ID: 20102105
Rafiya Yesmin ID: 20102123
Anika Tabassum Mukta ID: 20102111

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Executive summary:

Mushroom is a soft delicate white fruit body of fleshy fungi. Its body looks
umbrella-shaped and it grows on the substratum or under the surface of soil.
Mushroom is a highly nutritious, delicious and a good food for the children and the
older as well. It has high protein and economic value. The amount of protein in
mushroom is double than that of other vegetables. One hundred grams of dried
mushroom contain 26.9 per cent protein while the same quantity of potato contains
7.6 percent protein. So we have decided to launch “Mushroom chips” in the
market. In the market there are so many snacks and chips available. There is a huge
market demand of healthy snacks. In different countries mushroom chips is
available but in our country we cannot find any. If we import those chips, it will be
very expensive. We are planning to introduce mushroom chips in our country at a
low price.

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Introduction:
In the Bangladesh there are so many crackers and chips available in market. The
demand of crackers and chips never decrease. But those are unhealthy. So there is
demand in the market for healthy chips and crackers.
Our company is thinking about to bring healthy chips in the market, which name is
Mushroom chips. Mushroom is one of the healthy ingredient in our chips.
Mushrooms are rich in the B vitamins, riboflavin, niacin, pantothenic acid. The
combination helps protect heart health. At present, everyone is conscious about
their health. So for snacks if they get healthy chips available in the market, it will
be very popular among all the population.
At first, mushroom were grown wildly and lived on rotten tree stems in a damp
forest. But following the high demand of the Mushroom, it is now being planted by
farmers and used for medicines as well and many kinds of food. Now-a- days have
their own choices and preferences. They are not only seeking for the traditional
types of snakes. Tastes, flavor and quality matters for them. We are very much
concern about product quality and test.

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Research Method:
 Collecting information from the internet.

Marketing Objectives:

At first, our main objectives is to survive in the market.

Maintain positive and steady growth in the market, attract
customers to buy our chips, generate brand equity in the market so that in future no
other company can take the market by producing same product. And create loyal
customers. After one month of launching the chips we will collect the customers
review and satisfaction level about the product. We want to create social value for
taking position in customers mind. We will bring diversification in our product,
with maintaining the significant research and development budget. During the
initial year on the market, we are aiming for unit sales volume of 1000000. Every
month we will increase our production level 1%. We are aiming double profit will
be earned within 3 years.
To reducing the cost we will cultivate our own mushroom. So that 30% of total
mushroom can come from our own firm. With the expansion of our business we
will increase our cultivation level of mushroom.

Determining product:

Our determining product is Mushroom Chips. It gives

the nutrients and natural flavor with a heathier and

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tastier snacks choice. Our product is made from high quality mushroom to assure
the benefits it contains for your body.

Benefits of Mushroom chips

The benefits of mushroom have been discovered

by Chinese people hundreds of years ago. But
recently, a researcher from Minnesota Medical
School, America, found that mushroom
contained in every day’s meal could help the
blood circulation inside your body.
Mushrooms are a low-calorie food that packs a
nutritional punch. Loaded with many health-boosting vitamins, minerals, and
antioxidants, they’ve long been recognized as an important part of any diet.

Mushrooms are rich sources of potassium a nutrient known for reducing the
negative impact that sodium can have on your body. Potassium also lessens the
tension in blood vessels, potentially helping to lower blood pressure.

The anti-inflammatory effect of mushrooms has been shown to greatly improve

the efficiency of the immune system. Research has found that mushrooms help
stimulate microphages in the immune system, enhancing its ability to defeat
foreign bodies and making you less susceptible to serious illnesses.

Mushrooms are rich in disease-fighting photochemical, and eating them

regularly has been linked to a lower risk of breast cancer in studies of
Chinese and Korean women. Mushrooms also prevent prostate cancer cells
from multiplying in mice—and might do the same in men.

Chips Main Ingredients

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 White mushroom
Vegetable oil
White vinegar
Sea salt
Ground black paper
Garlic powder

Nutrition Facts

There are 140 calories, 5% Fat, 8% Carbs, 21% Fiber and 2g Protein in 1 bag of
Mushroom chips, which is very much essential for specially kids and young age
people.

Target market:

Bangladesh is a populated country and has a rapidly growing economy. Though

current economic situation is not so good. But the economy is doing well in
industrial sector, and also snack industries have great potential and opportunities in
the Bangladeshi market. We have decided that children’s, teenagers and young
people will be the target customers for our product ‘Mushroom Chips’. Because
most of them prefer to consumer this types of snacks in their home, schools,
theaters and so many place. As our product is a blend of taste and quality with
proper nutrition. We are hoping that we will be able to capture our target audience.

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Market trends and size:

We have decide to offer different types of popular cartoon and super hero
characters stickers and tutus with per packet of Mushroom chips for Childs and
purchase intensive to the wholesale and retail for sell promotion. And also decide
to offer fortune chits for teenager and young consumers. By organizing Corporate
Social Responsibility (CSR) activities, Charity concert, Open concert, Sports
tournament, Reality shows etc; Mushroom chips industries would like to build a
good relation whit people in near future.
Annual sales of processed agricultural food amounts to around $2.5 billion with
growth averaging 8 percent for the past 10 years as local consumption is growing,
according to industry insiders. 

Assessing Competition:

The market researchers have exposed the retailer’s

most selling brands and reason behind, their study
shows top selling brands are respectively Potato
Crackers (35%), Alooz (17%), Sun Chips (17%), Mr.
Twist (9%), Kurkure (7%), and Lay’s (5%). Though
there is high consumer demand of Kurkure and Lay’s brand but due to weak
distribution channel these brands carried low sales volume. Consumer demand,
strong distribution channel, trade benefit etc. are the reasons behind the most
selling brand.

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 Sales
6%
8%
potato
Alooz
10% 39% Sun chips
Mr. Twist
Kurkure
Lay's

19%

19%

Forecasting sales:

There will not be enough sales in first month. In the second month the sales will
be increasing at a satisfactory rate. From the third month the increasing rate of
sales will be very high. That means from month three there will be a steady
increase in production and sales. Our sales forecast is 500000 packet chips for the
first six months. On an average per piece of chips will be sold for Tk.15

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 Estimated sales (TK)
700000

600000 580000

500000 480000

400000 380000

300000 280000

200000 180000 175000

130000
100000 80000 80000
35000 50000
30000
1 2 3 4 5 6
0
1 2 3 4 5 6

sales Estimated sales month

Marketing Strategy:

We have some strategies, so that we can survive in the

market. To make our product acceptable and also to
increase its acceptability we have to follow some
techniques. Like selling the product with the low price
than other, will provide better quality, we will bring some changes in the
packaging with the time, will give free gift with each packet and give more by the
same price, can arrange some social activities, can be sponsor in different culture,
educational on sports programs, sampling in different places like in schools,
colleges and also in other market places. Our
Product is already different from other existing product. So we want to apply mass
marketing theory. We are creating various flavors chips by concerning not only
children but also people of all ages. So that, we pricing our products in different
categories based on peoples need and want.

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Marketing personnel:

There is needed number of supporting personnel to

undertake the marketing tasks in-house or outsource.
Examples-
Marketing manager
Sales personnel
Promotion personnel
Distribution personnel

Marketing budget:

Estimated total Cost for the first Six Months:

Fixed cost - Tk.10, 00,000

Raw materials - Tk. 10, 00,000
Rent - Tk. 1, 60,000
Employee Salary - Tk. 12, 00,000
Packaging - Tk. 2, 00,000
Promotional Expenses - Tk. 7, 00,000
Distribution - Tk. 1, 50,000
Commission - Tk. 9, 00,000
Operational Expenses - Tk. 1, 50,000
Administrative Expenses - Tk. 2, 50,000
Insurance - Tk. 15,000
Interest - Tk. 50,000
Miscellaneous Expenses - Tk. 1, 00,000

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Total - Tk. 58, 75, 000

Choice of product:

There are so many products or chips available in the market. To make sure
consumers are choosing our products we will maintain value, quality, and taste, in
order to patronize the retailer the consumer considers location, customer service
and more. As a retailer we will arrange social interactions between the company
and the consumer. That has a positive impact on consumer’s impulse buying
behavior. Consumer buying behavior is influenced by product information and
promotions. We will make our product information available to the consumer and
also continue our promotional activities.

Market Analysis:

Our main vision is to making satisfy the customer and run profitably. Based on our
R&D department we have identified that our new product is in good demand. Most
health conscious people are liking to consume this product as this is ease to
consume and time and cost effective. Our Research and development department
found that people preferring the new taste because they has need of nutrition
because it is good for health, and as they can consume the product easily majority
of people would like to have this product. And in south Asia region and
Bangladeshi are mostly affected by various types of diseases so in that case we
provide our product as a solution of nutrition. Therefore customers can easily
consume based on their desired need. The govt. is also attentive about the industry
sector and encourages and helps to establish new Businesses. So the future of any
industry like chips in this country is very bright.

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Market product focus:

Bangladesh is not only the fastest growing

economy, it is also one of the most densely
populated countries in the world. The focus of the
economy is shifting from agriculture to the
industrial sector, although the current state of the
economy is not so good. Nevertheless the snacks
Industries have great potential and opportunities for
a bright future in the Bangladeshi market. All types of snakes and chips are great
favorites with people of all ages, especially with children's and teenagers. We have
decided that all ages of people will be focus consumers for the product "mushroom
chips ".

Marketing strategy and tactics:

The marketing strategy will seek to first create customer awareness regarding the
product and establishing connections with targeted markets and work toward
building customer loyalty and referrals.
The major marketing strategies are-
Increase awareness and image.
Cross selling.
Quality and test leadership.
Mass distribution.
We decides to market Mushroom Chips all over the country especially in the urban
and sub urban areas. Customers will be communicated through advertisements
such as leaflets, quality posters, newspaper ads, internet and other media ads &
later on radio & TV ads. Our marketing tactics is sending 10,000 emails, messages
each week offering special discount and engage directly with early customers to
become loyal promoters.

Conclusion:
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We all know that, today’s fast moving world respect
the new, innovative ideas. To keep the same pace
with this situation our Company had decided to
launch a chips and it has a bright future in its
market. As the product is innovative, the consumers
are going to appreciate it. And according to the R&D (Research and Development)
department this product will be a strong product mix for our company. Mushroom
is not new to us. Among people mushroom is popular as a healthy vegetable. But
following the high demand of mushroom it is now being planted by farmers and
use for medicines as well.

Umbrella branding:

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M.M. Ispahani Ltd. has been operating its business in Bangladesh for a long time
with an admirable reputation Ispahani Chips started its journey with four varieties
in its product category namely Prawn, Vegetable, Chicken, and Potato. As time
being the product was changed and modified significantly to maximize the
customer satisfaction. In 2003, there were three varieties in the market (vegetable
snacks potato cracker, and prawn). Though the initial response was good, Marshal
Chips could not maintain its image over the time and failed to create repeat
customer. There might be various reasons which caused the product failure to
fulfill the expectation. The reason may be problems in product positioning or it
may be frequent changes in name and flavor, or there might be lacking in
strategies. But this is for sure that there was some lacking in strategic planning in
the initial level. Ispahani aired its TV commercials after three month of product
launching. Consumer was not aware of this product at the time it was launched. So 
the product was not sold. Then again when Ispahani went on advertise, it was very
insufficient to catch the attention of the viewers. All these things resulted in a
failure of a prospective product.
Ispahani chips they were having lack of marketing planning. They should improve
their marketing strategy.
I think our mushroom chips marketing planning is quite good than the Ispahani
chips to survive in the market as a new product.

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