Marketing Fundamentals

Market Strategy Report

GROUP PROJECT: Marketing Strategy brief for the brand to
diversify into the sports nutrition segment.

PROTIEN SHAKE: NITRO

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 1.0 Introduction
Nitro is a new sports drink in the market with the promise to boost & energized people under the
tag line “ALL DAY STAMINA”. It contains legal stimulants, vitamins and minerals including
various forms of ginseng & high levels of sugar and glucose. The Foster Protein is primarily
focusing on sports supplement nutrition. Since sports drink market in Bangladesh lacks behind
compare to the other drinking sector, Nitro drink will be sharp enough to meet the need. It is non-
alcoholic drinks that serve the purpose of an energy-booster and revitalization. It usually
emphasizes on energy derived from the calories. Since in our country, a good number of people
are getting involved in sports. Due to its warmness usually, people tend to face lack of energy &
stamina. Our product stands to make them energized. Hence not only sports man, people after
their work out can take it for having good stamina. It has been designed in such a way that is
contains high level of ingredients such as whey, Casein, Soya protein, Sugars, Vitamin B3, B6 &
B12. This decrease in the carbonated drinks market and the high growth of the energy drink
market can be attributed to the positive changes in the perception of health and fitness among the
Bangladeshi youth. Add-on Protein is another protein drink in the market with the guarantee to
support and invigorated individuals under the slogan "The entire DAY STAMINA". It contains
lawful energizers, nutrients and minerals including different types of ginseng and significant
degrees of sugar and glucose. The Add-on Protein is essentially zeroing in on sports supplement
nutrition. Since sports drink market is right now in ascent contrast with the other drinking area,
Add-on protein drink will be adequately sharp to address the issue. It is non-cocktail that fills the
need of an energy-sponsor and revitalization. It generally stresses on energy got from the calories.
Since in our country, a lot of individuals are engaging in sports. Because of its warmness
generally, individuals will more often than not face absence of energy and stamina. Our item
stands to make them stimulated. Consequently not just games men, individuals later their work out
can take it for having great stamina. It has been planned so that is contains undeniable degree of
fixings like whey, Casein, Soya protein, Sugars, Vitamin B3, B6 and B12. This reduction in the
carbonated drinks market and the high development of the caffeinated drink market can be
credited to the positive changes in the perception of wellbeing and wellness among the young. We
are planning to begin another games drink to focus on the adolescent at first. Our significant rival
in market Tiger, Speed, Black Horse, Coke and other few set up rivals on the lookout. In this
report, we attempted to grandstand this new games drink and all necessary exercises to dispatch
the item.
 2 Situation Analysis

Mission statement

To help people achieve their highest potential and attain the fitness level they wish without
limiting themselves due to fatigue or bad health. We commit to our customers with honest
commitments, transparency and best customer support services.

                   
We are committed to serve our customers with a healthy and effective protein
drink which is 100% vegan. This drink is for those who are looking for stamina,
refreshment, energy & a good beverage for their health.
  
Vision
Our vision is to grow our business and touch new heights of marketing by working together as a
family for our customers and give them the satisfaction they desire.

3 Market Summary
As our aim is to create marketing channels which would aim to facilitate the availability of
product or service to prospective customers. In order to create an effective marketing channel to
facilitate the company and customers we need to keep in mind the market conditions, competitors
and why our product is worth spending for. We will be discussing the same in this section.

Segmentation
So, We came up with a new sports drink called “Nitro”. We wanted to segment
different customer base on basis of their characteristics. Market segmentation
involves the identification of subgroups of consumers with similar wants and
buying requirements. For identifying market segments, We found out 3 bases.
Geographic Segmentation:
 We want to launch our product initially in 3 regions. Dhaka, Gazipur and Chittagong.
We want to launch our product in Retailers shops, Super shops Bus, Airport
&Train stations. We want to show case our product in numerous sports’
federation center, so that We can grab the attention of all Athletes in our
country.

Demographic Segmentation:

AGE: our age group is individuals 16 to 40 years of age. Because I like to

have customer who is at least more than 16 years age. Moreover, I are
targeting teen agers & youth people.
Income: Our objective individuals are pretty much like other universal
drink organization. For instance- if a person can buy Gatorade at taka
(200+-) then I belief that people from the same income group can be our
target customer. Since our product will cost you only 150tk/500ml &
80tk/250 ml-Subsequently people from upper middle class & higher class,
all of them are our target customer.
Occupation: Athletes (Cricketers, Footballers, Hockey players, shooters,
Sprinters & so on). At that point I have individuals like Service Holders and
from a wide range of callings.
Psychographic Segmentation:
Lifestyle: In this segment I are choosing mostly people like Athletes &
those who are associated with higher physical work.
Core Values: According to this, there are similar customers who share
common objective to purchase. Thus, the core value of “FOSTER
PROTEIN” is to provide higher health benefit & provide stamina. Those
who keep this thing in mind might want to purchase our product
Personality Type: Our targeted customers are falling in “Ambitious
Personality”. Since these types of people are more or less educated & they
know about what they are purchasing & taking as beverage.
 Undifferentiated marketing
 Since we are targeted towards creating a healthier population by providing them a healthy
beverage, our targeted customers are people from all age groups, that is an undifferentiated
population as health is not a priority for a specific age group.

Positioning
Product Name: “Nitro”
Tagline: ALL DAY STAMINA

We have decided to position our protein shake more towards Bangladesh as we need to build a
trust in people about the effectiveness of our protein shake and also help the athletes and other
customers achieve a healthier body.
 2.1.2 Market consumer’s need
  In the world of increased urbanisation, development, rise in GDP and the urge of a healthy
aging, the need for healthy beverages like protein shakes have immensely increased and is now
becoming a part of a healthy diet where the developed countries showed high level of
consumption. Nonetheless, vegetal sources provide 57% of protein supply globally and the
unethical factor involving killing of animals for protein have diverted the population towards
choosing vegan options. Coming to the nutritional part, health plays a major role in performing
our best be it in athletes, gymming or even for providing a long healthier life which can be done
by providing the right amount of nutrition the body needs on a daily basis. It is quite obvious that
in order to re-energise, gain stamina and rejuvenate our bodies after a long tiring day we need a
nutritional drink which takes care of our fitness goals as well which water won’t be able to
provide alone. The key objective is to nourish the body with the nutritional content it lost
throughout the day and ensure that the body maintains the health from within and gets healthier
and toned thus increasing metabolism plus reaching the end goal. People are now aware of the
effects of unhealthy beverages and want to shift to a healthier beverage option.  

2.1.3 Market growth

  In the world of increased urbanisation, development, rise in GDP and the urge of a healthy aging,
the need for healthy beverages like protein shakes have immensely increased and is now becoming
a part of a healthy diet where the developed countries showed high level of consumption.
Nonetheless, vegetal sources provide 57% of protein supply globally and the unethical factor
involving killing of animals for protein have diverted the population towards choosing vegan
options. Coming to the nutritional part, health plays a major role in performing our best be it in
athletes, gymming or even for providing a long healthier life which can be done by providing the
right amount of nutrition the body needs on a daily basis. It is quite obvious that in order to re-
energise, gain stamina and rejuvenate our bodies after a long tiring day we need a nutritional drink
which takes care of our fitness goals as well which water won’t be able to provide alone. The key
objective is to nourish the body with the nutritional content it lost throughout the day and ensure
that the body maintains the health from within and gets healthier and toned thus increasing
metabolism plus reaching the end goal. People are now aware of the effects of unhealthy
beverages and want to shift to a healthier beverage option.  

Market trends
Seeing recent trends we have noticed that there is a good demand for strong beverages and the
beverage industry has expanded over the past few years in Bangladesh. Now some of the biggest
Bangladeshi companies and the rest of the world are competing with a foreign soft drink company
for their product. From the market trend it clearly shows that there are many customers ready to
spend on a specific product. We can see it in their spending patterns to buy energy drinks. We just
need to give the right impetus to our customers who have guided us to introduce our sports drink
“Nitro”. Even athletes or sports clubs spend money on beverage products that have a different
name during sports. Alternatively people in general spend money on energy drinks to refresh and
rejuvenate their bodies. It even happens in rural Bangladesh. But initially our goal is an urban
environment and this practice reflects the positive hope of our product.

3.0 Swot Analysis

Strength:
1. Trust in adidas sports apparel can attract more customers.
2. 60g protein and 16g BCAA in each serving which is quite high among other protein brands.
3. High isolucience value helps in improving immune system.
4. Covers a wide age range of 18-40.
5. Only protein in this range to be vegan.

Weakness:
1. Less control on distributors.
2. Can backfire on the company’s reputation
3. Over consumption can cause headaches.
4. Uric acid increases if the person doesn’t do exercise on daily baisi

Opportunities:
1. Growing customer base for protein drinks.
2. Health conscious customers are tending towards good brand protein rather than taking some local
brand.
3. Specifically, the product is appealing for age group 18-25.
4. Athletes and gym freaks are always looking for a good protein drink brand.

Threats:
1. Other brands can spread rumors or some hoax about the products quality.
2. Older protein brands in the market may try to sabotage the brands image.
3. Loss can occur at a large scale if the product cannot compete with the products already
well established in the market.
 4.0 Competitor analysis

While fostering our marketing strategy we have considered subsequent to mentioning those brands
yet every one of them are not our immediate competitors on the lookout. There are a few
likenesses between protein drink and sports drink. Individuals take invigorating caffeinated drinks
to reenergize their selves. The motivation behind Protein Shake sports drinks is pretty much
something very similar to caffeinated drinks yet there are contrasts between the components of
these two sorts of drinks. Where in caffeinated drink the central component is caffeine in Protein
shake sports drink the main component is the concentration of nutrition's, whey, Casein, Soya
protein, Sugars, Vitamin B3, B6 and B12. Yet, in Bangladesh general individuals don't have the
foggiest idea about the distinctions and think that sports drinks and caffeinated drinks are
somewhat same. we have investigated a few information and discover the portion of the overall
industry of our Domestic and Global market competitors.

Domestic Competitors Global Competitors in BD

in BD
other Pran 3%7%
Globe
softBeverage
22% Pepsico Coca-Cola
Drink 25
s 26% Partex Beverage
%
6% other
AFB 64%
L
47%

Pran BeverageAFBLGlobe soft Drinksother

Figure 1 Domestic & Global Market Competitors (Islam, 2014)

The pie diagram shows the soda pops portion of the overall industry of protein shakes. In these
two pie outline I have seen that 68% sodas market are overwhelmed by the worldwide brands
among the 68% pepsi and coca-cola are pioneer in this area. Furthermore rest of the 32% market
overwhelmed by the nearby soda pops maker. However they are not our immediate competitors
we are considering these item for our substitute item even mineral water and milk likewise our
substitute item. Individuals might drink water during playing time rather than Add-on Protein
shake.
In the market there are a few clients who think without water different refreshments contain of
negative components which is terrible for wellbeing. So from that concern they stay away from
delicate or energy drinks and drink mineral water from the sterile concern. Juice industry
primarily center around the small children and individuals. We can comprehend it from the
bundling and ad of various juice brands.
drinks and drink mineral water from the hyginic concern. Juice industry mainly
focus on the young kids and people. I can understand it from the packaging and
advertisement of different juice brands.

5.0 Marketing Objective

Our segments for the proposed Protein Shake “Foster Protein” have such
characteristics for why these will be very effective in the time of executing our
marketing plan. Those are:
Measurable: The size of the market, purchasing poIr of consumer and
profile of segment is measurable. Example: The urban population of
Bangladesh is measurable. I can have such information regarding this from
BBS (Bangladesh Bureau of Statistics)
Accessible: The segments that I are offering can be reached and served.
Example: I can go in different sporting clubs for the promotion of our
product.
Substantial: The segments are large and profitable enough to serve.
Example: I are considering the urban areas of Bangladesh initially which
demographically profitable.
Differentiable: The segments will respond differently. Example: The
response of professional players and general public will be different.
Actionable: Effective programs can be developed for attracting and serving
the segments. Example: I have a segment whose age betIen 16 to 20 years
of age. For them I can arrange a Teen Cricket Tournament to market our
drinks.

6.1 Marketing Strategy

Marketing strategy is one of the most important tools to fuel the
business growth. A marketing strategy refers to a business's overall game plan for
reaching the prospective consumers and turning the consumers into customers of
the products or services that the business provides.

BCG MATRIX

Figure 2 BCG matrix

If we fall our business under BCG Matrix, we can place us in Question Marks right
now as we don’t have any share in the market, but we have a great opportunity to
grow in the market as a local protein drink company. We can easily grow if we
invest and introduce our product strategically. we have a plan to invest our cash to
capture a broad market in order to be in stars. As currently we don’t have any local
protein drink in market so it will much easier for us to grow and to reach to a large
number of customers.

Diversification Strategy: Diversification is basically a from of business

development. Diversification is one part of the four main growth strategies defined
by Igor Ansoff’s Product/Market matrix. The other three strategies in this matrix
are market penetration, product development, and market development.
Diversification strategy refers to entering a new market or industry which the
organization is not currently in and also creating a new product for the new market.
. Product
Foster Drink shall cater the needs of the consumers who are need of rich protein
beside their daily diets at an affordable price. A protein drink that shall be able to
serve the purpose of health- conscious consumers, who are looking for substitute of
expensive foreign brand protein shakes in the market, and also under privileged
people who are deprived from protein in their daily diet. This category of drink is
highly popular and accepted by the urban population in the developed countries.
Since, the population of Bangladesh, mostly the young ones are deprived from
nutrition, NITRO can be easy and affordable solution for them .

Quality and Type - Since the product is designed cater the consumer group of all
age group, Product line extension method can be introduced, if the market response
is favorable in the first year. Different tasty blends and flavors shall be
incorporated with drink, for the acceptance of young generation. Alongside, sugar
free blend can be incorporated targeted to the consumers with diabetes.

Packaging - The product solution is being imported from china in powdered form,
then it is mixed into diluted solution and packaged into two sizes of container at
our local plant. The drink shall be marketed in tin can so that it is environmentally
friendly and disposable in size 250ml and 500ml. The tin can is designed in such a
manner that, customers if they don’t dispose the tin can, they may wish to use the
tin can as piggy bank for coin storage.

Brand - The brand identity shall be created in such a manner that gives
sophistication to the product, creating a Positive Brand Equity so that customers
are willing to pay a little extra than regular beverage drinks in the market.
6.2 Price
Value Based Pricing Strategy – Since our product is creating a positive value in the
lives of customer and addressing a need that no other product is, wish to apply the
value based pricing strategy and charge unconventional than regular beverages in
the market, but also keep it comparatively lesser than indirect competitors like
Gatorade, Pocara SIat etc. Also relevant marketing promotions shall be conducted
to establish a positive Brand Equity of the Foster Drink with high cost associated
to the promotion campaign. Hence a little higher price can be expected to be
charged by customers.

SKU MRP DP

250 ml BDT 80 12%

500 ml BDT 150 17%

Table 1 Product Details

6.3 Pla
ce
As the product is targeted to a niche customer are only placing the product at
Dhaka, Gazipur and Chittagong division in urban and sub urban areas only. The
distribution channel is designed as Factory – Distributor – Retailer. will be selling
only to local Distributors at bulk at cash prices at the Dealer price (DP) in the
PRICE section. The distributors shall ensure the placement of the product in Mega
Stores like Agora, Shopno and Meena Bazar. Also, in Mid-sized Department stores
and at neighborhood convenient stores. And exclusively in some restaurants in the
form of Shop in Shop.
 PRODUCT DISTRIBUTION PROPORTION
SKU Mega Store Department Stores Convenient Stores Restaurants

250 ml 100 % 60% 80% 100%

500 ml 100 % 40% 20% 0%

Table 2 Product Distribution Proportion

6.4 Promotion
We used and created posters, banners, advertisements, TVCs, billboards to
promote our products. We have Focused on digital marketing. To create awareness
and increase our sales. Not only do I have direct advertising in all our gyms and
sports zones (similar to BKSP) to increase sales volume in our target area only
Promoting advice and positive word of mouth plays a major role in increasing sales
and earning more revenue in today's world. We have a very secretive strategy to
increase our sales and promote the Foster protein sports drink in the market.

This supplement provides 24 grams of protein per serving helping everyone meet the minimum
requirements for daily consumption. If you happen to workout, this is an excellent source of
branched chain amino acids, BCAAs and nourishes your muscles with all nine essential amino
acids making a complete protein. Added protein helps build lean muscle mass, sustain strength
and endurance during a workout, aid in reduced soreness and fatigue through faster recovery while
training and is essential for rebuilding the muscles after use.

We give you pure sourced, grass fed whey to ensure no chemicals or additives with only 130
calories and 2 grams of sugar per serving.
7.0 Financial Plan
Items Taka
Fixed cost
Cost of protein shake 33,821,500
making equipment
and installation –
Cost of purchasing a 2,000,000
protein shake delivery
van –
Land and factory cost 40,000,000
Obtaining of licenses, 10,00,000
permits, software and
other legalities –
Other start-up expenses
phone, computer, 1,000,000
furniture, printer and
stationery –
Operational cost
Bills payments, 1,000,000
employees’ salaries
Cost of start-up inventory
(raw materials and 90,00,000
packaging materials)
–
Marketing promotion 1,500,000
expenses:
create posters, 2,500,000
Banners,
advertisements, TVC,
Billboards
(promotion of 20,00,000
opening and general
marketing) –
Miscellaneous – 5,00,000
Total cost 90,821,500
Table 3 Financial Plan for Fixed assets and variable cost
To start our business, I need to invest 9.08 corer taka in Gazipur location. It’s not a
huge investment but initially I are importing raw materials which is protein powder
and I then mixing with other ingredients. Initially I are not producing any bottle I
are outsourcing from other parties in our country. I will invest more if the business
successfully run in the future.

Total Investment

Partners in cash 67,500,000 taka

Bank and other creditors 22,500,000 taka

Total 90,000,000 taka

From our 9-corer investment I are collecting 75% fund from our partners and rest of the 25%
fund collecting from the creditors and bank.

Decided cost for our product.

Initially I are lunching 2 variant size of product-

250 ML = 80 takas

500 ML= 150 takas

Our fixed cost is 7.68 corer taka

And the variable cost is 1.4 corer taka

 Sales revenue for the year of
2020
Unit Sales Price Sales Revenue
Sales revenue 1 (250ml) 300,000 80 24,000,000
Sales revenue 2 (500ml) 150,000 150 22,500,000
Total Revenue 1st year 46,500,000
Operating cost (14,000,000)
Total Profit 32,500,000
Table 4 Sales revenue for 2020
So, In the 1st year I have earned 42.31% fixed cost 3.25 core/7.68 core taka.

Break even sales unit for the year of 2020 = fixed cost / (price per unit- variable cost per
unit) Total Produced unit in for the year of 2020= 450000 unit.

Fixed cost Price Per unit Variable

cost
75,821,500 230 31.11

Break Even Sales Unit 381,223

So, if I sell 381,223-unit protein shake I will reach our break-even point.

PROFORMA STATEMENT

Assuming average 12.5% sales growth rate for both products.

Sales revenue for the year of 2021 & 2022

UNIT SALES TOTAL UNIT SALES SALES
GROWTH PRICE REVENUE
Sales revenue 1 80
(250ml) 300,000 0.15 345,000 27,600,000
Sales revenue 2 150
(500ml) 150,000 0.10 165,000 24,750,000
Total Revenue 1st year
52,350,000
Operating cost
(15,000,000)
Total Profit
37,350,000
Table 5 Proforma Statement for the Year of 2021 & 2022
 Total Profit in 3 years

Year Profit in taka

2020 32,500,000

2021 37,350,000

2022 37,350,000
Total 10,72,00,000
Table 6 Cumulative Three Years Profit

So, in the middle of the 2022 I will achieve our initial investments. As I are a new
company in this industry so will face some difficulties to setup our business. For
that reason, it will be more costly.

In 2022 I will make 10.72 corer profit. 1st year I will not take any profit I will pay
our bank interest 14% within these years.
 8.0 Action Plan
Here I have discussed the specific and detailed sequence and timeline of key
marketing steps. I will follow this sequence to implement our steps:

In this four month will collect data and information regarding our Protein shake
1. Market research drink. I will collect data of consumer buying behavior and income. will try to find out
the data from different beverage company in Bangladesh.

develop our product on the basis of our market research.

2. Product Development

select our distribution channel, as might need to compete with other soft drinks company
so have to select very strong distribution channel.
3. Distributor Selection

will launch our Foster Protein shake.

4. Launch Product

start to give advertisement of our product. will do it to make the consumers conscious
5. Advertisement & that a new sports drink is coming in the market and it will run throughout the year.
Promotion

we will collect the customer response and feedback throughout the year.
6. Collect Customer
Feedback

If the customer somehow dissatisfies, we will modify our product or we will change
7. Necessary customization the taste.
of the product
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