Crab Exporting Marketing Plan Report
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Transcript of Crab Exporting Marketing Plan Report
Introducing
Crabex
The Finest Crab Exporting Company A Business Establishment Marketing
Analysis on Crab ExportingThere are basically two kinds of mud crabs in Bangladesh: the king mud crab (Scylla serrata) and the rare green mud crab (S. paramamosain). Crabex would go for the king crab for its fast growth and flavor and for its high demand in the international market.
Submitted to
Ms. Tanzina Haque (FCMA)
Assistant Professor
Department of Accounting and Information Systems
University of Dhaka
Submitted by
Safwan Bin Musa
Term Paper: Fall Semester, 2012
Id: 11221002
Marketing Management (EMBA)
Executive Summery
At the beginning of the establishing a company, businessmen gather information and scan the
environment to justify the probability of success that the business will survive. My project is
about to set up a crab exporting company and for that I am required to gather information,
scan the environment, analyze the different factors regarding the business and designing a
marketing plan to understand the feasibility of the project. First of all, crab is a well
demandable food product in the western countries and as a sea side country Bangladesh has a
good opportunity to catch the market although there is not enough response regarding this
product in the local business sector. In this report I have analyzed the total world demand,
production, process, various geographical issue regarding this business establishment in
Bangladesh. I have also done the PEST analysis, competitor analysis – both inside and outside
the country, a brief marketing plan and distribution process. It is a compact marketing analysis
report about crab exporting business which is almost new in the country.
Table of Contents
Content Page No
Preface 1
The Product 2
Market Analysis 2
Industry Analysis 3
PEST Analysis 5
Competitor Analysis 6
Marketing Plan 7
Conclusion 10
Preface: The Target
My business establishment marketing analysis is on setting up a crab fattening and exporting
company - Crabex. The core activities of my business will be fattening and exporting crabs. It is
a lucrative business which has a great potential ahead. Scylla serrata (mud crab) is an
economically important crab species found in the estuaries and mangroves of Africa, Australia
and Asia. These crabs have a huge demand in South Asian countries where they are often
bought alive in the markets.
There are basically two kinds of mud crabs in Bangladesh, the king mud crab (Scylla serrata) and
the rare green mud crab (S. paramamosain). My company will go for the king crab for its fast
growth and flavor and for its high demand in the international market. Crabex will produce
crablets of mud crab (Scylla Serreta) and culture them. Primary focus will be placed on the
breeding and rearing processes to ensure the highest quality using the most efficient system
possible.
As the country’s first commercial crab producer, the company will produce crabs in a controlled
process to ensure quality, both in size and health and supply them to the Global market. This
business falls under the seafood industry. The company will be utilizing aquaculture technology
to farm crabs. Full control over the process will allow production of quality crabs and supply at
a competitive price. This will make Crabex unique in producing disease free crabs in a standard
size, which is the main requirement of the importers. The company is mainly targeting the Asian
market comprising of China, Malaysia, Singapore, Taiwan, Hong Kong etc.
The growth rate of worldwide aquaculture is very rapid while the contribution to the total from
wild fisheries has been essentially flat for the last decade. The rapid increase in the demand for
sea food has created a new market for seafood products like shrimp, lobster, crab etc. Statistics
say that Malaysia alone imports 2 tons of crab every day. This indicates a growing market for
the company. In fact, the demand of Crabs in the international market is so high that
Bangladeshi exporters can hardly meet it.
Crabex is starting operations with a target production of 5,000 KGs of crabs every month,
20,000 KGs every Quarter and within 5 years of operations, is aiming to capture 15% of the
Bangladeshi export market which stands at 1200 tons per year (EPB export data 2010-11). The
company will reach this goal by increasing production by 33.33% annually.
The Product
There are basically two kinds of mud crabs in Bangladesh, the king mud crab (Scylla serrata) and
the rare green mud crab (S. paramamosain). The company chose the king crab for its fast
growth and flavor and for its high demand in the international market.
Crabex will produce crablets of mud crab (Scylla Serreta) and culture them. Primary focus will
be placed on the breeding and rearing processes to ensure the highest quality using the most
efficient system possible.
The company will offer high quality mud crabs live. The company will also provide the local
crab farmers with crablets. All the offerings will be healthy, high quality and disease free. Live
mud crabs will be offered in batches of 100kgs in both 400 and 500 grams per piece categories.
The crablets are focused towards the local crab farmers. High quality, disease free and uniform
crablets will be Crabex’s specialty.
Market Analysis
In 2011, the total world production of fisheries product was 132.2 million tons of which
aquaculture contributed 41.9 million tons or about 31% of the total world seafood production.
The growth rate of worldwide aquaculture is very rapid (> 10% per year for most species) while
the contribution to the total from wild fisheries has been essentially flat for the last decade. The
rapid increase in the demand for sea food has created a new market for seafood products like
shrimp, lobster, crab etc. Statistics say that Malaysia alone imports 2 tons of crab every day.
This indicates a growing market for the company. In fact, the demand of Crabs in the
international market is so high that Bangladeshi exporters can hardly meet it.
The company’s segment definition, most value for products is based on geography. Crabex is
not intending to reach the global market as a whole, but rather the markets that offer the
greatest value in return. That is why the company is offering three different types of products.
They are targeted towards different geographical locations. The product with the most demand
is live crab, but The Company is only targeting the Asian crab market with this though the US
and EU is a huge market as well. But due to problems such as Flight schedules and time
involved, the product can not reach the market. Crabex is planning to get around the problem
by freezing the product and offering it to the market. Crabex won’t face any internal
competition here, but the international market has strong competitors.
The company’s secondary product is targeted towards the crab farmers in the country. The
market currently consists of only the crablets found from nature. Introduction of bred crablets
with better adaptability, strength and uniform size will create a lucrative option for the farmers.
In the case of the crablets, the company is only supplying the market with the excess crablets
from the breeding farm.
The major factors that will have an effect on the market are the increase in global aquaculture,
festivals in the East Asian countries, stagnant fishing industry etc. Oriental festivals create a
significant seasonal demand in the market.
Industry Analysis
The growth rate of worldwide aquaculture is very rapid (more than 10% per year for most
species) while the contribution to the total from wild fisheries has been essentially flat for the
last decade. The rapid increase in the demand for sea food has created a new market for
seafood products like shrimp, lobster, crab etc. Statistics say that Malaysia alone imports 2 tons
of crab every day. This indicates a growing market for the company in coming years. After 3 to 5
years crab industry would become one of the most important and feasible industry for
Bangladesh. Though the industry is growing slowly but it is projected as a highly prospective
sector in terms of exporting. Existing Shrimps & Lobsters exporters are already showing interest
in exporting Crabs. Eventually it proves the responses of the exporters to the escalating
demand and potential high profitability of this sector.
In Bangladesh, the trend of crab exporters is to simply gather the crabs from nature and export
the ones that meet the weight criteria. Only about 10% of the total export is fattened crabs
from different farms. But even so, they do not practice any scientific method in doing so. The
crablets they use are collected from nature and there is always a scarcity.
As the company is targeting the world crab market, the competition will also be global. The
major competition would be from countries like China, Indonesia, Philippines and India. These
countries have a set distribution chain and are exporting at a much larger scale. Even after using
scientific methods to fatten crabs, they too are dependent on nature for their crablets, making
it the major bottleneck in producing crabs.
In the current scenario, there is no existing crab farming company that directly
exports abroad. The whole operation is carried out partially step by step with the help of
intermediaries. As the country’s first commercial crab fattener and exporter, Crabex will have a
competitive advantage over competitors. From fattening to exporting the product, the whole
process is controlled. This results in a lesser mortality rate, uniform size and overall better size
and quality of the product. The product pricing is very competitive and the company is dealing
directly with the importers. Furthermore, geography of Bangladesh allows the culture of a
better species of crabs, which is widely appreciated by consumers. This eliminates all the
advantages the competitors have over Crabex products.
The company’s segment definition, most value for products is based on geography.
Crabex is not intending to reach the global market as a whole, but rather the markets that offer
the greatest value in return. That is why the company is offering two different types of products
to two different segments. They are targeted towards different geographical locations. The
product with the most demand is live crab, but The company is only targeting the Asian crab
market with this though the US and EU is a huge market as crabexll. But due to problems such
as Flight schedules and time involved, the product cannot reach the market.
PEST Analysis
Political Factors
Government is providing ample tax incentive in this business sector. So there is no concern of tax payment regarding crab export.
Employment laws will definitely be favorable in terms of dealing with the employees.
Social Factor
As crabex are not selling product inside
of Bangladesh so crabex don’t have any
social or cultural barrier; however, the
fact is that the demand of crab in our
local market is increasing. People from
As I planned to do fattening process in scientific way so there won’t be any environmental issues.
Political unrest of our country might be a serious problem as far as the transportation and other processing of shipment are concerned.
different classes are willing to taste
crab as sea food item.
Economic Factors
As the company is taking loan at
initial stage, so crabex need to be
concerned about the interest rate.
As crabex is a part of international business, the exchange rate and inflation rate have a definite impact on the business.
As the fluctuation of inflation rate is high in our country so it could cause negative effect on the business.
Technological Factor
Basically my business is not mainly dependent on technology. Crabex don’t heavily depend on the technology part as far as fattening is concerned.
However, in case of processing and transporting the company would be depending on technology; so farther improvement in these sectors might increase efficiency and profitability as well.
Competitor analysis
Competition for Crabex comes from two very different aspects; domestic and international.
Domestic Competition: In Bangladesh, the trend of crab exporters is to simply gather the
crabs from nature and export the ones that meet the weight criteria. Only about 10% of the
total export is fattened crabs from different farms. But even so, they do not practice any
scientific method in doing so. The crablets they use are collected from nature and there is
always a scarcity.
International Competition: As the company is targeting the world crab market, the
competition will also be global. The major competition would be from countries like China,
Indonesia, Philippines and India. These countries have a set distribution chain and are exporting
at a much larger scale. Even after using scientific methods to fatten crabs, they too are
dependent on nature for their crablets, making it the major bottleneck in producing crabs.
Competitive Advantage: Crabex’s main advantage lies in the fact that the company has its
own breeding facility. From hatching to exporting the product, the whole process is controlled.
This results in a lesser mortally rate, uniform size and overall better size and quality of the
product. The product pricing is very competitive and the company is dealing directly with the
importers. Furthermore, geography of Bangladesh allows the culture of a better species of
crabs, which is widely appreciated by consumers. This eliminates all the advantages the
competitors have over Crabex products.
List of competitors
Domestic International
Gazi Trading, Dhaka Dong gang city tongyu foodstuff co. ltd.,
China
Noyon Traders, Dhaka Zhoushan Yixin Sea food co. ltd, China
Shawon Traders, Dhaka Sai International Trading, India
Meghna Traders, Dhaka Coastal catch Exim, India
Ashik International, Dhaka Kantang Sea food, Thailand
Iqbal Traders, Dhaka Asia Firstline SDN BHD, Malaysia
Marketing plan
Market Segmentation : Crabex will follow geographical segmentation and focuses on
countries of East Asia including China, Japan, Taiwan, Korea, Hong Kong, and Malaysia as its
target market. In these countries, the company will focus on differentiation as its basic
competitive advantage. This advantage arises from the ability of the company to consistently
provide high quality homogenous crabs at a very competitive price.
Pricing Approach: In other words, Crabex will follow competition-based pricing approach.
The demand for mud crabs is found to be so high that this strategy will successfully capture a
certain share of the market without compromising the price. Crabex’s pricing strategy will vary
according to the price charged by the competitors. But the margin will be higher for Crabex as it
doesn’t have to go through the intermediaries. This can be made because the company will
have it’s own production firm where the company will produce crabs and through a scientific
process, fatten them and finally sell them to it’s clients without any intermediaries like agents,
suppliers etc.
Promotion: In order to allocate promotion budget, Crabex will abide by percentage-of-sales
method. A promotion budget of 20 percent of sales has been allocated for promotion budget.
As sales increases, the company will attract new clients and capture new markets.
Consequently, additional promotional activities will be carried out which would increase the
promotional budget.
Integrated Direct Marketing: Since the customers of Crabex consist of buyers, the
business will adopt integrated direct marketing in order to promote its crabs. The
business will send brochures through fax and e-mails, have its own website where
orders can be taken online, and contact its clients through telephone or e-mails to
maintain a profitable client-producer relationship. In addition, Crabex’s crabs will be
advertised over internet through international web portals like www.alibaba.com and
www.ecplaza.net. Crabex will also give advertisement in the journals and brochures of
different sea food business related publications and web portals of the targeted
countries.
Collaboration: Crabex will also collaborate with the local shrimp companies in order to
use the existing marketing channels to attract buyers.
Trade Exhibitions: As a business promotion tool, Crabex will attend trade exhibitions
organized by Export Promotion Bureau and of possible, it will try to sponsor such events
both at home and abroad. Bangladesh Export Promotion Bureau publishes a directory of
exporters to foreign countries. Crabex will collaborate with BEPB to get listed in the
directory which will help attract more buyers.
Advertisement: To attract the foreign customers who are the main target customers,
crabex have to take their attention by doing advertisements which are eye catching and
out of the box. For that crabex can make several strategies. For the advertisement
campaign Crabex can easily sponsor sits in the airport which will have the company logo
on them.
Sponsorship: Crabex can also sponsor waiting lounge in the airport. The company can
give free souvenirs like key chains, waist bags where my logo and company name will be
written on them to the travelers. These strategies are must because at first all foreign
buyers will be unaware about my company and its product. By doing these the company
can grab their attention that there is a company which is not like other traditional old
fashioned crab agencies, Crabex know how to do business and how to attract the
customers.
Crabex can also contact with the local as well as international traveling companies to
promote the product, like the company can repaint their traveling transportations with
company logo and color. Crabex can post bill boards and also paint some small sized
food items in the major travelling sites with company logo and color to attract the
customers.
Different Approach: Finally Crabex can do a totally different advertising approach
which has not yet used by any other firms in the crab and sea food industry. Crabex will
create a huge logo on the main firm site which can be only seen from the sky. The
traveler on the plane can notice that. This will not only be a key catching advertising but
also an effective one as well. Many well established companies are using this advertising
strategy and they all have succeeded with it. This is a little bit costly advertisement but
Crabex will have a sufficient budget to back it up.
Crabex’s main customers are foreign buyers. To do promotions this things Crabex have to
consider it. That’s way the promotional budget has to be a little more for the first year. Buyers
are professional and Crabex also has to be professional as well, otherwise they will not come
rather they will go to the other existing crab agencies.
Distribution Channel: The existing distribution channel consists of three intermediaries each
of which gets a very small portion of the selling price as profit. The intermediaries include
fishermen who catch crablets, arotder (wholesaler), bapari (middleman), and finally exporter
who make the bulk of the profit. On the other hand, Crabex has a competitive edge regarding
distribution channel by undertaking direct marketing channel which eliminates all the
intermediaries. It has its own hatchery as well as distribution system so that the business can
deliver the crabs directly hand it over to the buyers.
Conclusion
Crabex has the opportunity to deliver a good return rate which is high compared to any
other venture with minimal risk. The land choosing should be ideal, with route to the port
city of Bangladesh. The process will be fully controlled, offering the highest of quality. The
products offered will be of the highest of standards and competitive with the other
products in the market in terms of price. Such a product can never fail to create its own
market. This venture will create a new trend in the market generating high profit with
utilizing the unutilized resources that are still remaining idle.
BibliographyKotler, Keller, Koshy, Jha. Marketing Management . Prentice Hall.Chapter 3- Gathering Information and Scaning the Environment.