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Executive Summary

PRAN Group was born in 1980, is the largest processors of fruits and vegetables in Bangladesh. At present
PRAN group is doing business with PRAN juice, water, pickle and jam jelly, confectionary, Dairy products
and drinks. As an extension of its business PRANs management authority has decided to introduce a
Guava Grape flavored ice cream named Ripple milk bar in addition to drinks and water. PRANs new
product is entering a market place crowded with offering from Igloo, Polar, Quality, Savoy, and other ice
cream manufacturers. PRAN has been around for many years becoming popular in all districts in
Bangladesh.
Ripple milk bar much different than a traditional ice cream in that it is made by a small counter top machine
rather than grinding it like a sno-cone machine, which results in ice so fine that it rivals real snow! The snow
is then placed in bowl or cup or mug or box, supplied from handicrafts marketing project, which may be
used as a showpieces and filled with high quality tropical fruit flavor. Since the syrup is absorbed into the
snow, it must be eaten with a spoon instead of a straw.
Because Ripple milk bar is so tender and made with the thickest, best tasting tropical fruit flavors, adults
and children of all ages and ethnic background prefer it.
As a marketing executive of PRAN I am assigned to prepare a marketing plan for a ice cream and following
sections are covered with a hypothetical financing plan for the coming year.

Current marketing situation:


In Bangladesh there are two types of ice cream producer. One type of producers is producing quality
product, considering the demand of upper class people of the society. On the other hand there are some
other types of producers who are located in the local areas of Bangladesh considering the demand of the
rural areas low-income people. They are usually habituated having ice cream for TK 1 or 2.
So PRAN mainly targets former market segment of the society. And as a marketing executive
of PRAN group I am analyzing the current marketing situation of the quality ice cream producers.
In ice cream industry, as a leader IGLOO is dominating higher market share of 34 percent, offering 1000000
units of ice cream per year. As a market challenger Polar is dominating 28 percent market share, offering
700000 units of ice cream per year. Ice cream made by other company like Milkvita, Quality, Savoy etc.
currently account for less than 15 percent market share.
In spite of the intense competition, PRAN can rely on the numerous strengths, which are mentioned in the
SWOT analysis.

Opportunity and issue analysis:


The overall evaluation of a companys strengths, weaknesses, opportunities and threats is called SWOT
analysis. SWOT analysis helps explore the areas of possible changes in marketing activities. A brief
discussion of PRANs internal and external environment is as follows:
Internal environment analysis:

Every business organization needs to analyze its internal capabilities for developing strategy that it in line
with its mission. To fulfill its mission, PRAN is committed to capitalize on its key strengths and overcome its
major weakness. The strengths and weaknesses of PRAN ice cream is summarized below:
SWOT Analysis of PRAN ice cream:
Strengths:

PRAN has a great company reputation.

Domestically brand image.

Customer loyalty.

Availability of capital.

Use of modern technology.

Financial stability.

Achieved HACCP Certification for food safety.

Weaknesses:

Insufficiency in information system for efficient supply chain management

Insufficiency in distribution channel management

Lack of promotional programs

They may suffer from geographical coverage

External environment analysis:


Monitoring the trends of micro and macro environmental forces is also a key concern for management of
any organization to avoid the major threats and gain advantages of promising opportunities. The major
opportunities and threats of PRAN ice cream are given below:
Opportunities:

Increasing demand of ice cream

Increasing rate of population

Mature retail market in Bangladesh

Expanding awareness of people towards quality foods

Increasing demand for fast food shop in the city.

Availability of raw materials

Introduction of advance technology

Imposition of higher tax rate on small business enterprise

Possibility of economic depression

Threats:

Too many ice cream manufacturers in the market

Introduction of advance technology

Imposition of higher tax rate on small business enterprise

Possibilities of economic depression

Legislation to reduce number of ice cream factory

PRANs objectives:

Earn annual rate of return on investment of 15 percent after taxes over the next five years.
Produce a net profit of at least TK l,00,00000 by the next three years of operation with a target profit
margin of 10 percent on total sales revenue of Tk 100000000.
Achieve first year total sales revenue of TK4,50,0000, based on an average price of TK.100 per unit.

Sell 20 different tropical and Mexican flavored ice cream.

Sell other products such as drinks and milk products.

PRANs MISSION:
PRAN will produce and sell Ripple milk bar with 20 different flavored ice creams to consumers in
Bangladesh. Retail customers will be in the middle- to upper-income people, and will range in age from
children to adults.
MARKETING STRATEGY:
PRAN has- decided to market Ripple milk bar all over the country especially in the city areas. It considers
both sides the customer side and the business side. On the customer side the target market is middle to
upper class people. On the business side the target market is small to large size retail shops that want to
help their products stay in touch.
PRANs overall marketing strategy will be to create an image of offering the highest quality snow cream all
over the County. The business will be located in a high traffic area of the city. Customers will be reached
through advertisements such as magazines ads, newspaper ads; and through its grand opening
ceremonies.
A special marketing program will also be incorporated by offering special coupon prices for nearby
restaurants, motels, city pool, the shops, and the bus stations to customers who purchase any product at
PRAN.
A highlight of PRANs marketing strategy:
Positioning strategy:
Consumers typically choose products and services that give them the greatest value. In that sense PRAN
has decided to use more for less positioning strategy. It will introduce better quality product at comparatively
lower price for a given level of performance. PRAN claims that its Ice milk provides the best tent and
everyday low price. It likes to position as a testy and supper saver for all family and individual users.

Product management:
Raw Ripple milk will be packed in an air and heatproof box, mug, cup or bowl. Finished bar will be stored in
freeze with great care until served to the customers. A spoon will be given within the box for easy use. As all
the existing ice creams are melted when they come with the heat, so to solve this problem is used chemical
which makes it intact until consumption.
Main products to be sold through the PRAN will be ice cream topped with tropical and Mexican flavored in
three main sizes: small, medium, and large.
Product description (Raw materials):
One major product will be sold through PRAN ice cream which will include Ripple milk bar topped with
tropical and Mexican flavored syrups Twenty different tropical and Mexican flavored syrups will be sold and
include the following(Raw materials):
Wild Watermelon, Pina Colada, Pint Lemonade, Cherry Jubilee, Root Beer, Kiwi, Strawberry, Blue Bubble
Gum,Raspberry Red, Luscious Lime, Bodacious Banana, Tamarindo, Jamaica, Hortacha, Melon, Papaya,
Manzana, and Limon.

Ripple

milk

bar

will

be

manufactured

in

an

automatic

machine

imported

from

Germany. Ingredients included in the Ripple milk bar are:


Flavor, syrup, sugar, vegetable fat, milk fat, food grade color and milk solids.
Pricing Strategy:
PRAN will use cost based pricing strategy. In case of cost plus pricing it will add a markup to the cost of the
product. Different prices for different bar. In market consumers will be offered three sizes Ripple milk bar
such as small, medium and large.
PRAN will be offered at the following prices:
Small TK 100
Medium TK 150
Large TK 250
Distribution Strategy:
PRAN will be used marketing intermediaries to bring Ripple milk bar to market. It will use a
distribution channel like:
In the city area PRAN will sell Ripple milk bar by using small pickup van for commission basis. Major
marketing will be conducted through newspaper, magazine advertisements, TV ads. and local retail shop
distribution during the first three months of operation.
Sales strategy:
Sales strategy will be directly linked to marketing programs since all sales will be through the business
facility only. Consumer sales will start in April 2007 (or sooner if construction is completed before the
targeted date) with a grand opening anticipated by then.
Marketing communication mix includes advertising, sales promotion, personal selling, public relation and
direct marketing .In that sense PRAN will create an advertising campaign to build brand awareness and
differentiate the product from competitors, use trade promotion to support distribution strategy, and develop
a high profile product launch strategy to generate publicity and media coverage.
PRAN has conducted a marketing research for understanding the market situation of ice cream. It will also
conduct marketing research to measure brand awareness before, during and after marketing campaign,
study consumer satisfaction and identify opportunities for future product development efforts.
ACTION PROGRAM:
PRAN ice cream will carry out its marketing strategy and achieve its objectives through a variety of
scheduled programs. At the beginning stage PRAN plans to initiate a TK 500000 trade sales promotion to
educate dealers generate excitement for the product launch in the next year. As part of this trade
promotions PRAN takes following initiatives:
1.

Lea (let distribution to consumers homes).

2.

Newspaper advertisements will be purchased during the first three months of business until a image is
built.

3.

PRAN will offer discounts to recreational groups such as children/adult cricket teams and football teams
who play in nearby facilities.

4.

Promoting products for an introductory price at its Grand Opening.

5. PRAN will adopt a school and provide to individuals who are selected for having excellent attendance,
good grades, and good citizenship. Other incentives will include sponsoring a good attendance program by
purchasing a bike and raffling it to students with the best attendance. This will be a promotional strategy to
encourage business.
We want to finance growth mainly through cash flow. We recognized that this means we would have to grow
slowly. Monthly sales are the largest indicator for this business. There are some seasonal variations with the
months of match through September being the highest sales months.
General Assumptions

Year 2006

13.50%

Current interest rate

0.00%

Long term investment rate


Tax rate

25%

Others

A hypothetical financial plan of PRAN ice cream is given below:


Income statement
For the year ended 31st December 2007
Narration

2007
Taka

Revenue from sales

Taka
45000000

Gross Revenue

45000000
31800000

Cost of goods sold

1320000

Gross profit
Operating expenses:

Rent

1000000

Sales and distribution

912000

Administrative salary

366000

Miscellaneous

320000

Advertising expense (13200000*10%)

1320000

Depreciation

75000

Total Operating Expense:

3993000

Operating Profit Before Interest and Tax:

9207000

(-) Interest expense

1200000

Operating Profit before tax

8007000

(-) Income tax 25% on profit before tax

2001750

Net Profit

6005250

Profit and loss statement


For the year ended 31st December 2007
Narration

2007
Taka

Taka

Revenue from sales

45000000

Other revenue

0.00

Gross Revenue

45000000

Cost of goods sold

33400000

Gross Profit

11600000
6432000

Operating expenses:

Rent

1000000

5168000

Sales and distribution

60000

1292000

Administrative salary

366000

Miscellaneous

320000

Internet expense

3000000

Depreciation

75000

Advertising expense (12600000*8.5%)

1071000

Total Operating Expense:


Profit before tax
Income tax 25% on profit before tax
3876000

Net Profit

Balance Sheet
Fort the ended 31st December 2007
2007
Taka

Taka

18000000

11643000

Cash and Bank

6357000

4560000

(Less) Payments (Total operating expense-Depreciation)

44000000

57243000

Net Cash and Bank

1600000

1. Current Assets

Accounts Receivable
Inventories
Total Current Assets
2. Fixed Assets

Equipments

(Less) Depreciation

750000

9675000

75000

66918000

675000
9000000
Investment
Total Fixed Assets
Total Assets (Total current assets + Total Fixed Assets)
Taka

Taka

33000000

34542000

Accounts payable

1542000

18000000

(Less) Income tax

102500

14376000

2. Long Term liability:

416000

96918000

Liability and owners equity

1. Current liability:

Bank Loan
Owners Equity:
Capital
Retained earnings
Total Liability and owners equity
IMPLEMENTATION CONTROL:
This marketing plan includes a detail budget, schedule and managerial assignment for every action
program. Keeping mind that a great marketing strategy can be sabotaged by poor implementation,
marketing executive of PRAN has taken necessary steps for implementation. For control purpose this plan
follows month-by-month comparison of actual versus projected sales and expenses.