Preno Health Drink Marketing Plan

PRENO HEALTH DRINK MARKETING

PLAN

Preno Health Drink Marketing Plan

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Executive Summary

Malnutrition is one of the major social problems of the densely populated country, Bangladesh –

where around 31% of the people are under the poverty line. A large part of the total population is

suffering from malnourishment, children are being affected the most. The climate of this country

is hot and humid which causes loss of energy and essential body minerals. Hence, a new health

drink has been designed which will ensure proper nutrition, be refreshing and tasty, andwill

assist in refilling the tired body with the lost essential minerals and energy. Currently, such a

product, serving all three needs together, is absentin Bangladesh. So, people will gladly accept

this product if marketed wisely. This product is for people of all ages so, the population will

work as a potential market and thus sales would surpass expectations.

This product will serve the rural market at a cheap rate and the urban market at a higher rate with

a better quality. The product will mainly target the malnourished people of all ages and classes,

especially the children and the poor. The core customer value of this health drink would be

providing nutrition, energy and good taste. It will contain all the essential and vital nutrients,

vitamins, minerals and glucose which will refill body energy and ensure proper nutrition. The

product will be available in two different flavors: Watermelon and Lime. The brand name of the

product has been chosen as “Preno” and the name of the actual product would be “Preno Health

Drink”. It is a randomly chosen word which is simple, easy to pronounce, distinctive and

extendable. In the rural areas, the packaging will be cheap but in urban areas it will be better and

more attractive. New flavors or even new product categories might be introduced later. The

pricing will be done following the market penetration strategy. The urban area will get the cheap

product which they can afford easily. However, in the urban area the product will be sold at a

higher price to cross-subsidize the rural price. To cut costs and enhance the distribution system

the entire country will be divided into 5 regions. The product will be distributed using the

indirect and conventional marketing channel. A strong and wise promotion will take place

consisting of several types of advertising such as TVC, RDC, Print advertisements, In-shop


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posters etc. to make the customers aware of this new product. For the sales promotion, discounts

on price will be given during winter and the channel members will be rewarded and provided

with incentives. Besides, during the summer campaigns will take place and during Ramadan a

special campaign will be done for the poor. The brand slogan is ‘’ShobaiKhabe’’ (bangla for

everyone will eat) which shows that the product is for everyone.

Contents Acknowledgement ................................................................................. Error! Bookmark not defined.

Executive Summary............................................................................................................................1

Introduction.......................................................................................................................................3

Business Opportunity .........................................................................................................................3

Marketing Strategy ............................................................................................................................4

Market Segmentation .................................................................................................................4

Target Market.............................................................................................................................5

Product Strategy ................................................................................................................................5

Core Customer Value ..................................................................................................................5

Actual Product ............................................................................................................................5

Product Concept .........................................................................................................................6

Brand Name & Logo ....................................................................................................................6

Packaging & Labeling ..................................................................................................................7

Brand Development Strategy ......................................................................................................8

Pricing Strategy ..................................................................................................................................8

Distribution Strategy ..........................................................................................................................9

Supply sector .............................................................................................................................9

Distribution Sector ....................................................................................................................9

Promotional Strategy ....................................................................................................................... 11

Advertising ............................................................................................................................... 11

Sales Promotion ....................................................................................................................... 12

Public Relations ........................................................................................................................ 12

Brand Slogan ............................................................................................................................ 12

Conclusion ....................................................................................................................................... 13


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References....................................................................................................................................... 13

Introduction

Bangladesh; a country with an immense population and far too limited resources, where average

people struggle each day to live from hand to mouth. In Bangladesh, most people do not get

enough educational facilities to make themselves aware enough of the necessities in life,

especially diet. People are so reluctant about their daily nutrient needs that it never occurs to

them that they are missing something vital. As a result lower class people starting from children

to grown adults suffer from malnutrition their whole life. Moreover, they do not have sufficient

resources to make or buy the necessary nourishments for themselves. Population has made the

situation even worse. In most cases, a grown man with a minimal wage has to fend for a family

of perhaps five or six, with himself being the only bread earner. Therefore, he may only

concentrate on fulfilling the very basic needs and still fall short. There is no current efficient

solution to this major problem of the country. It would have been a possibility to educate these

deprived people of the importance of certain elements in their diet, but it may still result in

ignorance. People of this country have a high context culture, meaning they value emotions and

tradition more that rational understanding. Keeping this concept in mind, a marketing plan for a

probable solution to the diet problem has been designed.

Business Opportunity

Bangladesh is a country with an area of 147,570 square kilometers and an estimated population

of a staggering 150,039,000 (March, 2013). Doing the math, it comes to almost 1,033.5 people in

every square kilometer – a lot of people in a very little space. Of this huge population around

31% people are under the poverty line. Poverty in turn affects people’s purchase power and one


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of the side effects is diet. Malnutrition is a major concern in Bangladesh, especially for children.

World Bank rated Bangladesh 1st in the world of the number of malnourished children. 26% of

the total population and 41% of children of the country are deprived of the nourishment they

deserve.Rural women suffer from malnutrition, especially during pregnancy. To address this

major problem a product has been designed. It is a nutritious, refreshing and tasty health drink

that will satisfy the need of nourishment and revitalizing the physically weak.

While keeping in mind the problem of nutrition deprivation, energy replenishing has also been

taken to count while designing this product. Bangladesh being a country of hot, humid climate,

people sweat a lot while working, which in turn makes them lose precious energy and vital

electrolytes that keep the body stable. The product also addresses that aspect of refilling the tired

body with the lost essential minerals and energy.

So, at the same time the health drink not only provide vital sustenance for the malnourished, but

also refresh tired people in need of something to replenish their energy. Served cold, this drink

will also act as a treat in a hot sunny day. It would also taste good, in contrast to most energy

drinks, making sure that children accept this product in full consent. Currently in Bangladesh

such a product, serving all three needs together, is absent. Thus the launch of this product would

naturally take the market by surprise and if marketed well, would surpass sales expectations. The

product will be targeted towards people of all demography – not certain to any particular age or

other aspects. Thus, the population serves as a potential market.

Marketing Strategy

Market Segmentation

The entire population of the country will be served by this product. However, the product would

be addressing two different segments differently.

1. Rural Market

Very cheap product will be distributed to make sure poor people will be able to afford it

2. Urban Market


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Conventional quality product will be distributed at a higher price to common people of

the urban area.

Target Market

The product will generally target malnourished people of all ages and backgrounds, especially

children and the poor.

Product Strategy

In simple terms the product, it would be a heath drink.

Core Customer Value

The core customer value of this would be,

1. Nutrition

2. Energy &

3. Taste

Actual Product The drink itself would be a water based liquid containing the vital sustenance an average person

would daily need. Such as

Vitamins

1. B2

2. B3

3. B6

4. B12

5. C

All perfectly water soluble, very essential, and temporarily available in human body.

Minerals


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1. Calcium

2. Iodine

3. Iron

4. Potassium

5. Sodium

6. Zinc

Minerals will be in the drink as dissolved trace elements and will act as sustenance and

revitalizing agents.

Glucose

Glucose will act as an energy providing and body cooling element.

The drink will come in two flavors.

1. Watermelon &

2. Lime

Product Concept

The product is targeted for people of all ages and backgrounds, but it will specifically serve the poor and

malnourished; especially children and women. The product will benefit them in providing with nutrition,

refilling energy, and enjoying a good taste. It can be consumed at any time, but preferably during afternoons and in hot weather.

Brand Name& Logo

The brand name of the product has been chosen as “Preno” and the name of the actual product

would be “Preno Health Drink”. The word “Preno” has no meaning in traditional English. It is

a randomly chosen word.

The brand name has been chosen on the basis of

1. Simple & easy to pronounce

2. Distinctive

3. Extendable


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The Logo will be as follows.

Figure 1: Brand Logo

Packaging& Labeling There would be two types of packaging for two different types of target market.

1. Rural

A very cheap low-grade food plastic packaging will be used to distribute the rural market

product in order to cut costs. The labeling will be eye catching yet simple. Bangla language will

be used.

2. Urban

A better plastic PET bottle packaging will be used to distribute the urban market product.

Labeling would be very eye catching and contain detailed nutrient facts and other information.


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Brand Development Strategy

Line Extension & Brand Extension will be used asbrand development strategies, where new

flavors will be introduced later on with the existing two. There are plans to introduce a diabetic

friendly variety or newer product categories such as biscuits, bread, noodles etc.

Pricing Strategy

It is planned to set the product’s price based on value and cost in the two different markets.

In the rural area the health drink will be sold at a minimal price with absolutely no benefits to the

company whatsoever. This is to ensure that people of all ages, poor or not, can get the benefits

from this drink.

However, in the urban area people’s earning power is higher and therefore the product will be

sold here at a higher price to cross-subsidize the rural price. In order to subsidize the rural price,

a higher profit margin will be added to the cost in the urban area.

Since this will be a newly launched product and sales will need to be achieved, market

penetration strategy will be used to get people’s attention and get a higher number of sales to

ensure general profit. Different Stock Keeping Units will be provided and based on that prices

will be different. Although it is hard to determine the actual per unit cost of the product at this

moment, an estimation is provided below together with projected prices.

Market Stock Keeping

Units

Estimated Cost

(taka)

Trade Price

(taka)

Market Retail

Price (taka)

Rural 200 ml 3 3 5

Urban 250 ml 5 12 15

Urban 500 ml 9 20 25

Urban 1 Liter 16 37 45


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Table 1: Projected Pricing

Seasonal discounts may be provided during festivals and winter as adjustment pricing strategies.

Distribution Strategy

In order to cut costs an effective distribution system is a must. To cut costs and enhance the

distribution system the entire country will be divided into 5 regions.

1. Dhaka

2. Chittagong

3. Khulna & Barisal

4. Rajshahi&Rangpur

5. Sylhet

The main production & factory will be in Dhaka, specifically Gazipur. All the other regions will

contain only packaging plants in convenient places. The finished, unpacked drink would be sent

from Dhaka region to all the other regional plants in bulk to be packed and then distributed to the

local areas.

The distribution system of “Preno” would be in two sectors as follows.

Supply sector

There will be two types of suppliers

1. Raw-materials supplier

2. Packing & labeling materials supplier

The raw-materials supplier will supply the ingredients required to make the drink only to the

Dhaka region plant while the packaging and labeling materials supplier will supply the materials

to all the five regional plants.

Distribution Sector


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The company will use an Indirect, Conventional Marketing Channel to distribute the product

widely throughout the country. To make the product readily available to people in the rural areas

as well as the urban, a strong distributing intermediary team in needed. It will consist of

wholesalers and retailers. The wholesalers will buy the finished product from the different plants

at the estimated trade price and keeping their profit will sell it to retailers in urban and rural

areas.

Figure 2: Marketing Channel Levels


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To make sure that channel conflict does not occur between the different independent channel

intermediaries, the following steps will be taken.

1. There will be a specific set of rules in a written agreement which all intermediaries must

abide by.

2. Wholesalers must take charge of all Stock Keeping Units together to ensure that no target

market gets neglected and the wholesalers get an overall profit to keep themselves

satisfied.

3. Intermediaries will be motivated through competition and rewards for their performances.

Promotional Strategy

Three marketing communication tools will be utilized in promoting this product.

Advertising

There will be several types of advertising to make the customers aware of this new product.

TVC: A short TVC will be telecast in the major Television Channels of the country. To make

sure that the TVC reaches all rural areas BTV will be used together with ATN Bangla, ATN

News, Channel I, NTV, RTV, Banglavision etc. In BTV, the advertisement will be telecast

during Friday movie telecast because it has the most exposure to the target market.

RDC: An RDC will be broadcast onBangladesh Betar during summer noon, in news breaks,

and throughout afternoons and on other radio channels during noon and afternoon.

In both Television and Radio channels extensive promoting will be done during Ramadan iftar

times.


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Table 2: Advertisement Schedule Plan

Print Advertisement: A couple of print advertisements will be used for banners in urban and

highway areas and in newspapers.

Rickshaws: Rickshaws will be sponsored to have advertisements at the back.

In-Shop Posters: Shops in rural areas will be provided posters of the product.

Sales Promotion Winter Discounts: During winter times discounts for customers will be provided.

Rewards& incentives for Channel Members: Marketing channel members will be rewarded

for their sales performances. They will also be provided with shelf space assistance.

Public Relations

Rural Summer Campaigns: During summer campaigns may be held in rural areas to promote

the product.

Ramadan Campaigns: In Ramadan Extensive Campaigns may be run for the poor fasting

people in both urban and rural areas.

Brand Slogan The brand slogan “ShobaiKhabe” (Bangla for everyone will eat) will be used to promote this

Channel Day Time

BTV Fridays 3pm – 7pm

Other TV Channels Every day during Summer 7pm – 10pm

Bangladesh Betar Every day during Summer 1pm – 7pm

BTV and other TV & radio

channels

During Ramadan Before and During Iftar


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product to show that this is a product for everyone. The slogan is short, in the native language,

easy to pronounce, and distinctive.

Conclusion

Since such a product has never been introduced to the people of this country before, the benefits

it provides is quite distinctive. Hence, it will be accepted rather well. Furthermore, the people’s

nutrition needs are met and a social problem is tackled tactfully. The malnourished poor people

of the country, too enticed by the irresistible taste and unbelievable price, will buy this product

and will benefit themselves without even knowing it.

References

Wikipedia. (2013) Bangladesh - Wikipedia, the free encyclopedia:[Online]. Available from:

http://en.wikipedia.org/wiki/Bangladesh. [Date Accessed: 19th August, 2013]

Wikipedia. (2013) Essential nutrient - Wikipedia, the free encyclopedia: [Online]. Available

from: http://en.wikipedia.org/wiki/Essential_nutrient. [Date Accessed: 19th August, 2013]

Wikipedia. (2013) Dietary mineral - Wikipedia, the free encyclopedia: [Online].Available from:

http://en.wikipedia.org/wiki/Dietary_mineral [Date Accessed: 19th August, 2013]

http://en.wikipedia.org/wiki/Bangladesh

http://en.wikipedia.org/wiki/Essential_nutrient

http://en.wikipedia.org/wiki/Dietary_mineral

Preno Health Drink Marketing Plan

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