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BRAND PLAN Of XYZ LTD.COCONUT WATER-DAAB
Mr. Rafiuddin AhmedMBA (DU), MS (MIB, Unimelb, AUSTRALIA)
Department of Master of Business Administration
American International University-Bangladesh (AIUB)
Submitted byNAME OF GROUP MEMBER Ehmed Kushal Imtiaz Towfique Ur Rahaman Md.Ataur Rahaman Md. Zakaria Bulbul Shimul Ahmed ID 10-93592-1 08-92348-2 08-92488-2 09-93050-2 08-92239-1
Course: Brand Management Semester: Fall, 2010-11 Program: MBA Section: ASubmission Date: December 13, 2010
American International university-Bangladesh
Table of ContentsTopics Pgs Introduction-----------------------------------------------------------10 Situation Analysis-----------------------------------------------------02 Four Ps Strategies-----------------------------------------------------07 Positioning Guideline----------------------------------------------------10 Category Identification------------------------------------------------11 Core Brand Association------------------------------------------------12 Brand Mantra For Daab------------------------------------------------12 POD and POP Development---------------------------------------------14 Porters Five Forces Analysis----------------------------------------- 15 SWOT Analysis---------------------------------------------------------19 PEST Analysis---------------------------------------------------------- 20 Ten Success Factors--------------------------------------------------- 20 Brand elements----------------------------------------------------------22 CBBE model for Daab--------------------------------------------------- 23 Limitations--------------------------------------------------------------- 25
After independence the food habit of Bangladeshi people has been changeda lot. Besides our traditional food consumer of Bangladesh like to take western food also after 1980s. As a result of global marketing this was not too hard for the consumers. Different foreign food companies were established in Bangladesh. Beverage industry is one of them. But more interestingly we dont know beverage is also our cultural food because beverage doesnt mean only carbonated drinks. Yoghurt, soup and lacchi are also beverage of our own tradition which consumed for the last 100 years in Bangladesh. But carbonated beverage is new in Bangladesh and today our research is on carbonated beverage market in Bangladesh and consumer reaction to it. Carbonated beverage entered into our market in the later part of 1980. At that time there were only few companies in Bangladesh. But by the change of time and western culture influences its become very popular in Bangladesh. By year 2000 more than 12 Beverage Company operating business in Bangladesh and most of them are foreign companies (Bangladesh Beverage: 2006). As a part of building a new brand, our company XYZ is planning to launch a new product (soft drink) Coconut Water, named Daab, which definitely add new value offerings in our Bangladeshi market. In order to introduce a new product in our market, we must create brand recognition so that people can easily identify and differentiate our product. To build a new brand first we must incorporate some fundamental analysis in our study which helps us to navigate the way we should build our brand. Lets examine each factor one by one as it appeared below.
Situation AnalysisAt present Bangladesh has a very competitive market of beverage. Bangladesh has a relatively hot weather and people tend to be thirstier. So they prefer to take soft drinks most of the time. Beverage took the market of Bangladesh in the first half of 1980. In that time two or three soft drinks were available in the market. But now lots of beverage found in the market. Some of them are popular and some are not so popular. Beverage List: All Age Groups Total 6 product(s) found in category of Beverage for all age groups in Bangladesh. Vita Fresh (Orange) [2008-04-26]
Kohinoor Chemical Company (BD) Ltd. [City: Dhaka] Vita Fresh (Orange) is a delicious drink of orange prepared from natural orange juice crystals. No artificial sweetener is added to preserve the natural taste and flavor of orange. Each sachet pack contains 25ge of dried Orange powder enough to prepare a glass of rejuvenating drink. [Net Weight: 25g]
Premium Classic Mango/Orange Juices [2008-04-26]
The ACME Agro vet & Beverages Ltd. [City: Dhaka] ACME Premium and Classic mango and orange juices are unique because of their taste and flavor. [Pack Size]: Available in 250ml hygienic UHT packs. Vita Fresh (Mango) [2008-04-26]
Kohinoor Chemical Company (BD) Ltd. [City: Dhaka] Delicious drink in powder form extracted from rich and fabulous garden fresh mango crystals. No artificial sweetener is added to preserve the natural taste of mango. Each sachet pack contains 25ge dried MANGO juice enough to prepare a glass of rejuvenating drink. [Net Weight: 25g]
ACME Juices [2008-04-23]
The ACME Agro vet & Beverages Ltd. [City: Dhaka] ACME Premium and Classic mango, orange and Mango range juices are unique because of their taste and flavor. [Pack Size]: Available in 1000ml hygienic UHT packs. ACME Premium Drinking Water [2008-04-23]
The ACME Agro vet & Beverages Ltd. [City: Dhaka] ACME premium drinking water is synonymous to purity. Arsenic Free Mineral water contains proper mineral balance, is suitable for all age groups and bottled in Environment friendly PET bottle as per guide line of BSTI. [Pack Size]: Available in 500ml, 1000ml, and 1500ml bottles.
Danish Mango Juice [2008-03-17]
PARTEX Group [City: Dhaka]
Danish Food Products, a Partex Group concern produces highest quality fruit drinks under the brand name Danish Fruit Juices. Bangladeshi customers have welcomed the mango fruit and orange flavored drink hygienically packed in 250ml aseptic packs. Every age group can enjoy this drink, especially when served chilled in our hot summers. [Packing]: Pack/ quantity 250 ml, Quantity /Carton 36pcs, Carton 3 ply corrugated. Pack/ quantity 200 ml, Quantity /Carton 48pcs, Carton 3 ply corrugated. (Bangladeshi Products: 2008)
Beverage list: Young Consumers In Bangladesh the choice of young people are always different from other age groups. They prefer to take the following 15 categories of soft drinks.
At present there are 19 beverage companies operating business in Bangladesh. They are:1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. Transcom Beverage Ltd Sun Crest Beverage Industries Ltd Abdul Monem Limited K.Rahman and Company Eastern Beverage Industries Ltd. Sanowara Drinks and Bev. md. Ltd. Asia Business Ltd. Desh Beverage Co. Ltd. Northern Beverage Ltd. National Beverage Industries Ltd. Bridge Corporation Limited Tezarat Enterprise Southern Beverage Ltd. K.Rahman and Company Bangladesh Beverage Ind. Ltd. Dhaka Beverage Industries Ltd Sunny Foods and Beverage Ltd. Tabani Beverage Co. Ltd. K.Rahman and Company
(Bangladesh Beverage: 2008)
Four Ps StrategiesProduct: Coconut Water has traditionally been consumed as a refreshing beverage in a majority of coconut producing countries. Growing consumer interest in the product both as refreshing beverage and as a sports drink has considerably broadened its market opportunities. These growing market opportunities have, how ever, necessitated that coconut water be accessible in a more convenient format and have thus let to development of technology for the preservation and sale of the product in bottle format. Bottling of coconut water not only reduce the cost of bulk freighting and transportation of immature coconuts overlong distance, but it enhances the self-life, adds value and generates income and employment fro small farmers and coconuts water processors. Compositionally, coconut water is relatively high in potassium and is of low sodium content. It majors constituents are sugars which range in concentration from 1.4 to 5% depending on the coconut variety and the maturity stage of the nut from which it is derived. Coconut water also contains small quantities of protein (0.7%) and fat (0.2%) as well as Amino Acids, Vitamins and Minerals. The commercial production of canned coconut water has traditionally employed a high-Temperature/ short t-time preservation process. The product of this process has, however, found limited consumer acceptance in coconut producing region, owing to distortion of the delicate flavor of the product by the high temperature apply in the process. Cold preservation is, therefore, the method of choice for extending the self life of the product. The cold preservation of coconut water essentially involves collection of the coconut water, filtration and bottling under hygienic conditions. Various levels of bottling and filtration technologies, requiring various levels of skill and investment can be applied in the cold preservation of coconut water. The self-life and cost of the product are greatly influenced by the level of the processing technology. The all natural image of cold preserve bottled coconut water and the fact that it can be produced without the inclusion additives are two winning points with consumers of the product. This guide describes a Middle Level of cold preservation technology, for producing coconut water having a self-
life of at least ten days under Refrigerate condition. This Midlevel of technology employs a single coarse filtration stapes and chilling of the product. Price: For pricing, we follow the competition based pricing strategy. Consumer will base their judgments of a products value on the price that competitors charge for similar product. One form of competition based pricing is going rate pricing, in which a firm bases its price largely on competitors price, with less attention paid to its own cost or to demand. The firm might charge the same as, more than, or less than its major competitors. Going rate pricing is quite popular when demand elasticity is hard to measure, firm feel that the going price represents the collective wisdom of the industry concerning the price that will yield a fair return. They also feel that holding to the going price will prevent harmful price wars. Place: For the first year of our commercialization, we target the market of two major cities of Bangladesh, Dhaka and Chittagong. Later, we should spread our business to whole country as well as should cover the international demand. Promotion: Some marketing scholars believe that just three exposures to an advertisement are needed: one to make consumer aware of the product, a second to show consumer the relevant of the product, and a third to remind them of its benefits. Others think it may take 11 to 12 repetition to increase the likelihood that consumer will actually receive the three exposure basic to the so called three hit theory. We have to remember that too much exposure is not good because an individual can become satiated with numerous exposures, and both attention and retention will decline, known as advertising wear out, which can be reduced by using cosmetic variation in their ads.
Marketing Communication Mix PlanningAdvertising TV Commercial: 5 to 6 channels Radio: FM stations Newspaper: Two in a week Sales Promotion Free Trials POP display Showing Student ID and get discounted price Discount Allowance Sports [ICC Cricket World Cup] Festivals [Nobo-Barsha] Street Activities Factory Tour Seminar Annual Report Lobbying Identity Media Company Magazine
Trade Promotion Event & Experiences
Public Relation and publicity
Positioning GuidelineTarget market Geographic: The profile for coconut water-Daab customer consists of the following geographic, demographic, and behavior factors: Our immediate geographic target is the city of Dhaka and Chittagong. The total targeted population is estimated at 20,000,000.
Demographic: Male and female. Ages 10-50, this is the segment that makes up 75% of the market. Office back Young professionals who work close to the location. Have attended school, college going student, hospitalized Patient. Tend to patronize higher quality food. Are cognizant about their health.
Behavior Factors: Enjoy a high quality juice without the mess of making it themselves. When ordering, health concerns in regard to foods are taken into account. Enjoy a divine sensation with foods.
Coconut Water (Daab)
Core Brand Association
Energetic Authentic Healthy
Brand Mantra For Daab(Taste As Real)
Emotional Modifier Native
Descriptive Modifier Health Concern
Brand Function Nutritious and Halal
To get a position in the customers mind we will provide quality juice. We will charge reasonable prices than competitors through the maintenance of the product quality. A list of products comparing with the competitors is given below:
Companys product price(Green Coconut Water)20 Tk 35 Tk 60Tk
Companys product quantity
Competitors average price
Competitors product quantity
250 ml 500 ml 1000 ml
20 Tk 40 Tk 65 Tk
250 ml 500 ml 1000 ml
We have avoided harmful ingredients or other unhygienic chemicals and all the ingredients that we will use into our juice, are checked by BSTI approved chemical experts of the BUET. We will try how customer gets the natural flavor. As it is a new product we will ask some free question to our potential customers and we will take their valuable suggestion that how we will improve our product. Our strategy is that whatever needs to be done to make the customers satisfaction, even at the expense of short term profits. As a new product distribution channel is the important factor for positioning. We have made our distribution channel in such a way that the customers will get the product easily. Finally for the retailers we will use economies of the scale procedures, which mean we will offer bulk or discount for the highest commodity of the offerings that is rare incident in this industry.
POD and POP Development Points of DifferenceRelevance: Natural, Nutritious Distinctiveness: Taste Original Believability: Implant Latest Technology In Preparing Juice
Points of ParityPricing: Going Rate Pricing (250 ml) Nutritious: Other juice i.e. orange is also can be claimed nutritious Natural: Purity of milk can be claimed as natural
Porters Five Forces AnalysisPorters Model is considered an important part of planning tool set. When we are clear about where the power lies, we can take advantage of our strengths and can improve the weaknesses and can compete efficiently and effectively.
1. The threat of substitute products or servicesThe existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives: Buyer propensity to substitute Relative price performance of substitute Buyer switching costs Perceived level of product differentiation Number of substitute products available in the market Ease of substitution. Information-based products are more prone to substitution, as online product can easily replace material product. Substandard product Quality depreciation
For our products (Daab), the threats of substitute products are- Frooto, Frotika, PRAN and Danish.
2. The threat of the entry of new competitorsProfitable markets that yield high returns will draw firms. This results in many new entrants, which eventually will decrease profitability. Unless the entry of new firms can be blocked by incumbents, the profit rate will fall towards a competitive level (perfect competition). The existence of barriers to entry (patents, rights, etc.)The most attractive segment is one in which entry barriers are high and exit barriers are low. Few new firms can enter and non-performing firms can exit easily. Economies of product differences Brand equity Switching costs or sunk costs Capital requirements Access to distribution Customer loyalty to established brands Absolute cost advantages
Learning curve advantages Expected retaliation by incumbents Government policies
Industry profitability; the more profitable the industry the more attractive it will be to new competitors. We are launching Daab, which is first time in introducing in Bangladesh. There are few competitors in the market.
3. The intensity of competitive rivalryFor most industries, the intensity of competitive rivalry is the major determinant of the competitiveness of the industry. Sustainable competitive advantage through innovation. Competition between online and offline companies; click-and-mortar -v- brick-and-mortar Level of advertising expense. Powerful competitive strategy
We are launching our products only in Dhaka and Chittagong. Since other established brands have already set up a good distribution channel and have similar experiences in technological know how, thus there is a chance that new competitor can arrive in future.
4. The bargaining power of customers (buyers)The bargaining power of customers is also described as the market of outputs: the ability of customers to put the firm under pressure, which also affects the customer's sensitivity to price changes. Buyer concentration to firm concentration ratio Degree of dependency upon existing channels of distribution Bargaining leverage, particularly in industries with high fixed costs Buyer volume Buyer switching costs relative to firm switching costs
Buyer information availability Ability to backward integrate Availability of existing substitute products Buyer price sensitivity Differential advantage (uniqueness) of industry products RFM Analysis
Through our research the bargaining power of customer affordable.
5. The bargaining power of suppliersThe bargaining power of suppliers is also described as the market of inputs. Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be a source of power over the firm, when there are few substitutes. Suppliers may refuse to work with the firm, or, e.g., charge excessively high prices for unique resources. Supplier switching costs relative to firm switching costs Degree of differentiation of inputs Impact of inputs on cost or differentiation Presence of substitute inputs Supplier concentration to firm concentration ratio Employee solidarity (e.g. labor unions) Supplier competition - ability to forward vertically integrate and cut out the buyer
For production of Daab, we have available of raw materials, green coconut, labor and technology.
Strength: Coconut-water is a new concept in the soft drinks industry. People are conscious about this item. Price is reasonable compare to another company. Our product is good for health. Because we dont use any unhygienic chemical. We are using high technology. We are practicing good management policy. We are located in suitable.
Weakness:We have no sufficient money to get strong market share. Weak distribution channel. Skilled labors are not available. Lack of awareness about the product. Preservation difficulties.
Opportunities: As a new product, it has a great possibility to get huge market. Same type of business is not available existing market. If the investment increase, this sector will be enlarge. People are now a day become interested to grow more Coconut. We can import high technology then we operate. We can export our product to the foreign country.
Threats: Soft drinks market is competitive. Market coverage will be difficult.
PEST AnalysisFactorPolitical Economic Social
Considerable VariablesTax Policy, Labor law, environmental law, trade restrictions, tariffs, political stability Economic growth, interest rates, exchange rates and the inflation rate Cultural aspects, health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety.
Technology R&D activity, automation, technology incentives and the rate of technological change
Ten Success Factors 1. New Value Added product in market which will take place in the consumer mind as new product category identification i.e. new nutritious drink 2. Product claims that it tastes original which also acts as POD 3. Besides the traditional use of the product (drinking) alternative use of the product can also be adapted (can be used as sport drink). 4. It works as a new source of equity which will increase the firms earnings thus helps to maximize the value of the firm. 5. Economic condition seems the support the product profitability. The economy is forecast to remain on a sustainable growth path, growing by an average of 6.3% a year in 2010/11-2014/15. Growth will be supported by increases in private consumption and investment. 6. It can serve as the export item for our country representing more sales and international recognition and helps our economy to lower the trade deficit. All together, strong brand image can be established.
7. It offers future product category extension for the company i.e. coconut cream, coconut milk which also works as new sources of equity. 8. Since we are first in our product offering, a certain level of monopoly can be enjoyed in the market of coconut water. Our product quality will ensure the relevance, distinctiveness and believability of our product. Thus, as a pioneer of this new product offering, gives us a competitive edge against any future threat. 9. Since our product is natural and halal drink, every person regardless of religion can consume our product. Thus, customer segment is an open one and economic of scale can be achieved. This benefit is reflected in our product offerings for 500 ml and 1000 ml packs. 10. Each firm has brands that are unique in packaging and image; however, any of the product differences that may develop are easily duplicated. However, secret formulas do create a difference or good will that cannot be duplicated. Our product also has its secret formula that can be imitated which ensures the uniqueness of our product that will make our brand a successful one.
Brand elementsThere are six elements of Daab and they are as follows: Memorability Daab is easily recognized and uttered Daab name is very short. Logo of Daab is very simple and attractive.
Due to these factors Daab brand is strongly memorable in the mind of customers. Meaningfulness Daab word is persuasive but not descriptive. It comes from Bangla language which means Drink coconut. Likability Daab is more likable among the customers due to the following reasons: Affective advertisements Popular celebrities Freshness Packaging Sponsorship and events Suitable pricing
Transferability Excellent logo. Packaging and signage is good and attractive.
Adaptability Daab has well flexibility which accepts changes easily Its ingredients and packaging changes with time to time
Protectability It is legally recognized It has proper licensing Its patents and copy writes are reserved Its trade mark is also legally protected
CBBE model for Daab :
CBBE PyramidResonance: Customer feels proud by using Bangladeshi product Daab. They feel it is special for us. They really like to drink Coconut water.
Judgment: Customer judgment regarding brand are as an under Quality is good Packaging is attractive Features are outstanding
Figure : Customer-Based Brand Equity Pyramid
Feelings: Customer gets excited while drink Daab. They feel Daab is healthy for them They feel freshness
Performance: No harmful chemical and flavor Ultimate solution trust.
Imagery: Original and natural test Essential part of sports and journey.
Salience Daab creates brand awareness by offering new category choice as well as through its IMC options
Limitations No paper work is free from constraints. The brand plan is not above certain limitations. It is very much difficult to pre-assume the barriers of any practical work before getting in it. Actually, various problems arose when the work proceeded to the field. The limitations and shortcomings of this report are:a) Lack of sufficient previous experience and in-depth knowledge on soft
drink.b) In a short time it is not possible to go through all parts of the subjects. c) Time Limitation.