Marketing of perishable goods in Bangladesh

8/18/2019 Marketing of perishable goods in Bangladesh

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Background and justification of the project

Food processing is a sunrise industry of the Bangladeshi economy and has been

identified as thrust area for development. Food processing sector covers a wide range

of items like fruits and vegetables; meat and poultry; milk and milk products,

alcoholic beverages, fisheries, plantation, grains, confectionery, chocolates and cocoa

products, mineral water, high protein foods etc. Based on the basic raw material

usage, food industry can broadly be classified into plant based and animal based.

Meat industry is one of the important segments of food processing industry in

general and livestock/animal based industry in particular. Bangladesh has immense

potential for production, consumption and export of meat due to sufficient resources,

available markets and huge livestock population.

he growth of meat industry is constrained by a number of socio!cultural and

economic factors at different levels of production, processing, handling and

marketing. Meat production is mainly constrained due to lack of productivity

augmenting technologies since the ma"or #uantity of meat is being produced in

unorgani$ed slaughterhouses, where resource utili$ation is very limited. hese

slaughterhouses are old, unhygienic and lack basic facilities like water, light,

ventilation, drainage, waste disposal and effluent treatment which contribute to poor

meat #uality and low recovery of various by!products such as hides, blood, bone

meal, internal organs and trimmings. herefore, technology is the key to

improvement in growth and efficiency in meat processing sector. %mpirical

evidences on contribution of technology to growth of meat processing industry in

Bangladesh are scarce. &owever, the evidences from food industry as a whole

indicate varied contribution of technology to growth of food processing industry

'ur pro"ect would be produce world class meat in Bangladesh. (e will produce safe

wholesome meat and meat products that are of the highest #uality and standard

primarily for domestic and later on )nternational consumers. (e will ensure meeting

statutory and regulatory re#uirements and food safety re#uirements of our

consumers. *ccordingly, we meet different benchmark like )+' &*-- )nclusive,

&*0*0 and environment license. (e will offer &alal, Fresh and +uperior 1uality

meat of oultry, -attle, 2oat and +heep.

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(e would be processed halal meat to domestic supplier, will triple its domestic

growth within 3 years after its introduction. he trend will reflect the sharp rise in

demand for processed meat in Bangladesh at a time when consumers have become

increasingly concerned by reports of food adulteration. he management of pro"ect

believes it has a huge market for processed halal meat in Bangladesh

Objectives of the project

Development objectives:

-reating "ob in the rural areas thereby contributing to the reduction of both poverty

and rural!urban migration.

%ncouraging the development of supportive infrastructure services such are rural

access roads, electricity, water and telecommunications.

)mproving rural incomes by adding value to products thereby saving on transport cost

by delivering high!value/low volume products and creating opportunities for the use

of by!products as inputs in other farm operations such as animal feeds, manure, and

fuel.

Immediate objectives:

4. %liminate middleman from the supply chain

5. 0ower costs relative to key competitors

6. Broader or more attractive product line than rivals

7. rovide superior customer service

3. 8ecognition as a leader in technology and/or product innovation

9. *chieve higher levels of customer satisfaction than rivals

:. *naly$e the market situation and market strategies

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Project implementation and management plan

Current Demand and Supply nalysis of !eat

here is a high demand for meat in the local markets. )n the past, the beef price was relatively

low due the ready supply of cattle from neighboring country. But it is a great matter of sorrow

that, the supply has recently been restricted and as a result meat prices have increased

sharply.

-onstraints to long term development of the beef industry include lack of improved breeds,

low meat #uality, and insurance among smallholders. *ctually, the demand for beef is greater

than the supply of beef.

Demand and supply deficit of meat" per person yearly

Product #e$uirement vailable Deficit

!eat%kg& 76.53 .45 67.46

Source: FAO/APHCA (2008)

'early !eat produced in Bangladesh

Product ())*+

),

()),+)- ())-+). ()).+/) ()/)+// ()//+/( ()/(+/0 ()/0+/1

!eat

%In

million&

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2eographical 0ocation> +emi!@rban and @rban

Demographic Profile

Market> Bangladesh!@rban ? +emi! urban

2ender> Male ? Female

Family life cycle> @nmarried, Married

'ccupation> *ll

%ducation> rimary and above

Psychographic Profile

+ocial -lass> Middle -lass ? @pper.

%xposed to Cewspaper, 8adio, and D.

Behavioral Profile

occasion> 'ccasional ? 8egular

Benefits> 1uality Food in affordable price

@ser status> otential ? %xisting

-onsumption rate> *verage

8eadiness stage> *ware and informed

Purchase 5abit

'nce or wo times in a week

Competitor nalysis

here are many competitors; these are domestic meat retailers like Bengal Meat, Mina Ba$ar,

*gora, and rince Ba$ar and +hopno. hese companies are already established in retail

market.

hreat of competitor is comparatively high, because

— here are some ma"or competitors in meat retail market like Bengal Meat, Mina

Ba$ar, *gora, and +hopno.

— -ustomer can easily to switch another Meat shop

— we have e#ually balance of competitor like Family needs and rince Ba$ar etc.

— he exit barrier is not high because they can easily grow up another chain retailer.

0ike departmental shop or grocery shop.

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6ocation of farm and shop

7arm location: Farm will be established at 2a$ipur. )nitially we plan to build the

farm for 5


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Product Pricing Strategy

-ompany also considers price level in terms of their #uality. +ince #uality is the

prime, price is little bit higher than from local market.

Descriptions Price89g

Beef with bone BE 63<

Beef without bone BE 7=<

Meat front leg BE 63

Meat back leg BE 630iver/oliga BE 4=<

Beef kima BE 7=<

Brisket/+inah BE 63

Placing Strategies

ttractive Packaging>

(ith the present demanding situation, we will offer products with attractive

packaging. his packaging helped to build a brand image and to carry out from one

place to another place.

Distribution et;orks:

(e will be distributing our products in different five star hotels like! +heraton,

8adisson and an acific +onargaon, (estin. *lso available will be in renowned

-hain +hop in our country.

Production Capacity:

Full production capacity of the farm will be 4< tons per day. we will expand our

production capacity every year.

Promotionromotion of the product having all communication and selling activities to persuade future

prospects to buy the product. romotion decisions include>• lucrative *dvertising plan to introduce its different new products

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• Both rint and electronic media

• @ni#ue Message for different items

• &igher sales promotion

• Eirect marketing

• 'nline advertising such as Facebook, Gouube, Eifferent website etc.

!achinery and

Details of item needed =uantity

+laughtering e#uipment 4< set

(eighing device 7

-utters and grinders 4<

Fridges 5

*ir extractor 5<

ruck 4

Feeder bucket 4<

-utleryHs and butcher ools 3 set

ables, shelves, ropes, chain, tagging

e#uipment, water pipes, cutting boards,

acking supplies

*s re#uired

(e have to import most of the e#uipment. he following are some of the machineries

suppliersH address for the regarded pro"ect>

2he Biro !anufacturing Co>

4447 (., Main +treet, 0akeside Marblehead ! 7677

=uirks ustralia

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avoid the bacteria that may exist in the meat. he treatment duration for sterili$ation will

depend on the bacteriological #uality of the meat which in turn depends on the nature of the

meat where the presence of high degree of fat in the meat will affect the sterili$ation process.

'ther factors include slaughtering conditions and sanitary conditions after the slaughtering.

hen the meat is cooked in sauce together with other ingredients and canned at the end.

*n alternative processing technology that has recently expanded in some rich countries is to

use pasteuri$ation method instead of sterili$ation of meat. his is because sterili$ation

processes compromise the retention of compounds that are heat!sensitive in the foods, and

alter the organoleptic characteristics of the raw meat. Ditamins, for example, may be

destroyed by high temperatures and/or their long duration. (ith the aim of remedying this

problem, a process has been developed in recent years in which prepared foods may be heat

treated at a temperature at which their organoleptic properties are less affected than in

sterili$ation processes. his alternative, however, is very expensive where it costs more than

double of the technology proposed in this profile.

Disposal of ;aste products

he greatest liability to a new meat plant is disposal of waste products. Materials such as

waste fat, most bones, blood, and inedible offal represent a significant percentage of the

animalHs carcass that must be disposed of. hese are often picked up by rendering companies

who process them into animal supplements. But our farm located in remote place where no

rendering company nearby. +o we have to dispose the byproducts using composite techni#ue.

2raining #e$uirement

raining of key personnel is very essential and shall be conducted in collaboration with the

suppliers of the plant machineries. he training should primarily focus on the livestock

management, production technology and machinery maintenance and trouble shooting. BE

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ChiefExecutive Ocer

Marketi

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(act#r&Maager

Pr#)ucti#

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Implementation schedule:

)t has been estimated that the pro"ect will go into full operation within 69 months from the

date of start of construction. )ts schedule shown below>

ctivity 2ime 8 month

+anction of 0oan <

+ite Eevelopment start 4

-ompletion of Eevelopment and start of -ivil construction. 5!7

'pening of 0/-

-ompletion of -ivil works 7!49

Machinery shipment 9!45

*rrival at port 47

arrival at +ite 43

+tart of %recting and )nstallation 43!49

-ompletion of )nstallation 4=

-ommercial production 69

Project Beneficiaries

Direct Beneficiaries

-onsumers who are buying from us is the direct beneficiaries of this pro"ect. -onsumer will

receive high #uality raw beef and different kind of beef product which is good for health.0ocal people who will work on this pro"ect can earn good living.

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Project !onitoring and


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Budget

Sl.

No .

Particulars Amount

(in

BDT)

Total

Amount (in BDT)

6and

3 *cres

+hop salami

"#0$000

2$#00$000

%$2#0$0002 Building and -ivil -onstruction &$0#'$!!

% Plant and !achinery

-utleryHs and butcher ools

*ir %xtractor

Fridges

+laughtering e#uipment

Feeder bucket

(ater boll

#0$000

#!8$&!0

$#2#$000

20$000

#$000

2$000

2$2#0$&!0

! 7urniture 3 7i@ture

= able

6< -hair

5 +ofa

%2$000

#2$#00

2#$000

20'$#00

# Office


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" re!roduction %xpenses

re!roduction %xpenses

-ow feeding cost

%mployee +alary

Darious bill

$2&$000

"$#!0$000

!20$000

'$"&$000

8 raining -ost #0$000

' %mployee +alary

-hief %xecutive 'fficer

Marketing Manager

0ivestock urchasing Manager

1uality *ssurance Manager Factory Manager

Financial Manager

*dministrative Manager

+tore Manager

roduction %xecutives 3 person

+ales %xecutives 7 person

*ccountant

Eriver 6 person

2uard = person

0abor 9 person

00$000

#0$000

#0$000

#0$000#0$000

#0$000

!0$000

!0$000

00$000

&0$000

2#$000

!#$000

&!$000

%0$000"#!$000

+urvey to identify potential market

and suppliers

00$000

2 Miscellaneous '0$000

2otal Project


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Conclusion

Bangladesh is a high population density country. But the supply for the meat is really low.

'nly few farm sell processed meat but they charge high price which only affordable for high

income level people. o keep that in mind we developing a farm which main idea is to

produce high #uality product and serve in an affordable price. *nd we are introducing direct

sale of processed meat to the consumer which will reduce the middleman in supply chain.

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#eference

4. (ebsite of Bengal meat, www. Bengalmeat.com

5. (ebsite of arong dairy, www. arongdairy.com6. (ebsite of agora, www. agora.com

7. Brochures and prospectus of Bengal meat, agora, ka$i firm.

3. Eifferent sample report.

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Marketing of perishable goods in Bangladesh

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