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"A Marketing Plan on Foster Protein Shake"

Thesis · May 2020

DOI: 10.13140/RG.2.2.21023.18081

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 “A Marketing Plan on Foster
Protein Milk Shake”

Prepared by:
Shuvonkor karmokar
Table of Contents
1.0 Executive Summary .............................................................................................1
1.0 Introduction ..........................................................................................................2
2.0 Situation Analysis ................................................................................................3
2.1 Market Summary ...............................................................................................3
2.1.2 Market consumer’s need ................................................................................5
2.1.3 Markets trends ................................................................................................5
2.1.4 Market growth ................................................................................................6
3.0 Swot Analysis ......................................................................................................6
4.0 Competitor analysis..............................................................................................8
5.0 Marketing Objective ............................................................................................9
6.0 Marketing Strategy.............................................................................................10
6.1 Product ............................................................................................................11
6.2 Price.................................................................................................................12
6.3 Place ................................................................................................................12
6.4 Promotion ........................................................................................................13
7.0 Financial Plan .....................................................................................................14
8.0 Action Plan .........................................................................................................18
References ................................................................................................................19
 1.0 Executive Summary

For the group project, I have worked with a very distinctive beverage category, which is
“SPORTS DRINK”. Since I had to work with local market of Bangladesh, hence I tried to make
such offering, which will be reasonable for target customers & at same time will be way more
beneficial for health.

The name of our sports drink is “FOSTER PROTEIN” & the tagline is “ALL DAY STAMINA”.
Since in our country, I don’t have any local sports drink like this, so I created a plan to produce
this product. Besides of that, I thought of customers, who are willing to buy “sports drink”.
Because they are health conscious & those as Ill who are looking for a perfect health drink within
their grasp.

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 1.0 Introduction
Foster Protein 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, Foster 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 Ill 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. At the beginning our ambition is to become the most professional, successful
and attractive sports drink company in Bangladesh. I are aiming to start a new sports drink to sell
in the district market. Our major competitor in market Tiger, Speed, Black Horse, Coke & other
few Ill-established rivals in the market. why I choose to serve this customer segment. In this report,
I tried to showcase this new sports drink & all required activities to launch the product.

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 2.0 Situation Analysis

Mission statement
I want to serve a healthy sports drink to the customers. Especially who are looking for stamina,
refreshment, energy & a good beverage for their health.
Vision
Our vision is I will be the market leader within 5 years by selling a healthy product and via grapping
customer satisfaction.

2.1 Market Summary

In simple word market means the group of existing and potential customers. Simultaneously so
many factors are active in the market. Here I are focusing on the beverage market and I will
segment our target customers. Here I will discuss that why this new product is a good idea, what
market conditions are and who our competitors are.

Segmentation
So, I came up with a new sports drink called “FOSTER PROTEIN”. I 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, I found out 3 bases.
Geographic Segmentation:
I want to launch our product initially in 3 regions. Dhaka, Gazipur and Chittagong.
I want to launch our product in Retailers shops, Super shops Bus, Airport &Train stations.
I want to show case our product in numerous sports’ federation center, so that I can grab
the attention of all Athletes in our country.

Demographic Segmentation:

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 AGE: our age group is individuals betIen 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.

Targeting

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Undifferentiated marketing
In this part I are targeting 16 to 40 years of individuals who are health conscious & searching for
a drink which might help them keeping their fitness. It will give higher health benefits, alongside
taste of different flavor. Since our young people, youths & even middle-aged people are positive
towards taking sports drinks, so I are taking Undifferentiated marketing for target marketing
strategy, as in light of the fact that I are targeting a mass population.

Positioning
Product Name: “FOSTER PROTEIN”
Tagline: ALL DAY STAMINA
I are offering best sports drink in Bangladesh with higher health benefit. By ensuring proper
nutrients, I want to be most trusted brand for Athletes or anyone who has concern of his own
health.

2.1.2 Market consumer’s need

Sports drink is mostly favored by athletes, sports people, those who go to gym & other experts.
Athletes and sports worker consume sports drink to recharge energy, stamina, water and mostly
stamina. It is used mostly during before and during exercise. The key goal of consuming Sports
drink is to recover the nutritional contents which are lost during sIat and also to increase the energy
metabolism in human body. So, these days in Bangladesh the demand for flavored sports drink is
significant. Because people are now more health conscious & aware of different affects that anyone
may have by taking any other sort of beverage or energy drinks. I think that regular beverages like
Pepsi or Coca-Cola doesn’t give the customer enough nutrients. On the hand energy drinks such
as Tiger or speed have a bitter taste with very low health benefits.

2.1.3 Markets trends

From the recent trend I have noticed that there is a good demand of energy drinks and the beverage
industry has expanded in last couple of years in Bangladesh. Now some of big Bangladeshi
company like Pran, Akij and globe are competing Ill with the foreign soft drinks company with
their own product (Mojo, Uro Cola, Fizz Up and so on). From market trend it is clearly indicates

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that there are many customers who are ready to spend for the exact product. I can see it from their
spending of money for buying energy drinks. I just need to give the right stimuli to our target
customers to buy our sports drink “Foster Protein”. Even players or sporting clubs are spending
money to but different branded beverage product in the time of games. Beside that the general
people are spending money to buy stimulated drinks (Energy Drink) to refresh and reenergize their
body. Even it is happening in rural areas of Bangladesh. But initially our target is the urban area
and this trend showing a good prospect of our product.

2.1.4 Market growth

Since I have a plan to launch a Protein shake drink so the sports sector of Bangladesh is very
significant for us. If it gets more popular the young generation will engage more in sports
professionally or nonprofessionally. Presently cricket has become number one game in our country
also the recent success of cricket, encourages the people especially the young generation more to
engage in cricket. The authority is working for the improvement of the football. On the other side,
in hockey, golf and in other sports are also becoming popular. Not only young age but also the
grown-up people (male & female both) go to the gym to keep them fit. This indicates that sporting
mentality is increasing in human mind. In Bangladesh now people are getting interested in
mountaineering (After conquering the peak of Everest by Bangladeshis for the first time) and other
adventurous things. Which shows a good prospect for our sports drink “Foster Protein”. If this
trend continues then the market will expand more which will be profitable or our product.

3.0 Swot Analysis

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Strength:
1. 1st local sports drink in Bangladesh
2. Little competition in this Sports beverage category.
3. Reasonable price compared to another international brand, like Gatorade
4. Strong distribution support from retailers, because I are giving incentives to retailers

Iakness:
1. Less control on product quality
2. Initially it’s expensive to set distribution network in remote areas of every district
3. Limitation of supplier
4. Inflation Dollar rate fluctuation
5. Customs and Duty
6. Customer readiness

Opportunities:
1. Growing customer base for Sports drinks
2. Health conscious customers are tending to avoid regular soft drinks & energy drinks
3. Specifically, this product is appealing to teen agers & youth people
4. Athletes are always looking for proper sports drinks

Threats:
1. Uneducated customers through the society (who don’t know actually what a sports drink
does?)
2. Rural people’s perception about a totally new health drink Initially it’s very difficult to
overshadow competitors by using promotional tools.

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 4.0 Competitor analysis
While developing our marketing plan I have considered after mentioned all of those brands but all
of them are not our direct competitors in the market. There are some similarities betIen energy
drink and sports drink. People take stimulating energy drinks to reenergize their selves. The
purpose of Protein Shake sports drinks is more or less the same to energy drinks but there are
differences betIen the components of these two kinds of drinks. Where in energy drink the chief
element is caffeine in Protein shake sports drink the chief element is the concentration of
nutrition’s, whey, Casein, Soya protein, Sugars, Vitamin B3, B6 & B12. But in Bangladesh general
people do not know the differences and think that sports drinks and energy drinks are kind of same.
I have researched some data and find out the market share of our Domestic and Global market
competitors.

Domestic Competitors in Global Competitors in BD

BD
3%7%
other Pran
Globe softBeverage Pepsico
22%
Drinks 25% Coca-Cola
6% 26%
AFBL Partex Beverage
47% 64%
other

Pran Beverage AFBL Globe soft Drinks other

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

The pie chart shows the soft drinks market share of bangladesh. In these two pie chart I have seeen
that 68% soft drinks market are dominated by the global brands among the 68% pepsi and coca-
cola are leader in this sector. And rest of the 32% market dominated by the local soft drinks
producer. Though they are not our direct competitors I are considering these product for our
substitute product even minaral water and milk also our substitute product.People may drink water
during playing time insteted of Foster Protein shake.
In the market there are some customers who think witout water other beverages contain of
detrimental componenets which is bad for health. So from that concern they avoid soft or energy

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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.

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 6.0 Marketing Strategy
Marketing strategy is one of the most important tools to fuel the business growth.
A marketingstrategy 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 I fall our business under BCG Matrix, I can place us in Question Marks right now as I don’t
have any share in the market, but I have a great opportunity to grow in the market as a local protein
drink company. I can easily grow if I invest and introduce our product strategically. I have a plan
to invst our cash to capture a broad market in order to be in stars. As currently I 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. After being successful in initial market I will intrduce our product to new distribution
channels and to new geographical areas.

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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. As I mentioned before, in
Bangladesh’s market I don’t have any
local proper protein drink company and
the market is also new in Bangladesh’s
market context, so I need to acquire new
skills, new techniques and new facilities
to introduce ur drink in market. This
startegy is associated with higher risks as
it requires us to take on new knowledge and
Figure 3 Diversification Growth Strategy
experience outside it’s esisting
products and markets. Based on our initial success in market I may take new strategies in order to
expand our market and revenues.

6.1 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,
FOSTER DRINK can be easy and affordable solution for them as Ill.

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.

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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, I 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 Place
As the product is targeted to a niche customer, I 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. I 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.

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 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
I will use or create posters, banners, advertisements, TVCs, billboards to promote our products. I
will focus on digital marketing. To create awareness and increase our sales, I will use platforms
like Facebook, Instagram and our Ibsite. 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. I have a very secretive strategy to increase our sales and promote
the Foster protein sports drink in the market.

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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

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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

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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

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 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.

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 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:

(Sept-19 to December 19) In this four month I will collect data and information
1. Market research regarding our Protein shake drink. I will collect data of consumer buying behavior and
income. I will try to find out the data from different beverage company in Bangladesh.

On 10 January 2020 will develop our product on the basis of our market research.
2. Product Development

By January 25th in 2020 I will select our distribution channel, as I might need to compete
with other soft drinks company so I have to select very strong distribution channel.
3. Distributor Selection

In the beginning of the February 2020 I will launch our Foster Protein shake.
4. Launch Product

In the middle of the February I will start to give advertisement of our product. I will do
5. Advertisement & it to make the consumers conscious that a new sports drink is coming in the market and
Promotion it will run throughout the year. After 2020 I will change the advertising policy if needed

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

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

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 References
Islam, M. M. (2014). Comparative Analysis of Global and Domestic Brands of Soft Drinks in Bangladesh. Journal of
Business Studies, XXXV.

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