A Term Paper On Markting plan

Submitted To: Mrs. Nazia Nabi Lecturer,School of Business, UITS.

Submitted by:
Shakerul Tazu Md Eamin Zabed Farhana Yeasmin Lopa Subrata Kumar Singha

Date of submission: 19/12/2010

1.0 EXECUTIVE SUMMERY

BASALT is a fashion house producing fashion wears for Bangladeshi Market. The company has newly entered in the market to offer Bangladeshi fashion new and innovative dresses and accessories for men and women. To meet that mission the cost of the product may become very high comparison to other competitors but BASALT is offering the same price level with a very high quality warm weather effective product which is not being offered by the other existing companies in Bangladeshi Market. Our additional product fashion accessories are also very innovative and affordable. The companys marketing objective is to offer the consumers fashionable dresses compatible with the Bangladeshi weather and achieve first years market share of 5 percent and sales of 200,000 units. BASALT has several powerful strengths on which to build but our major weakness is lack of Brand awareness and image to consumers. The major opportunity is growing demand for weather effective fashionable wear for both men and women in the corporate and regular users. We also face the threat of ever greater competition and down ward pressure on pricing. Although strong competition with the established competitors, we can offer the consumers more value and unique technological benefit that will help us to gain the market share and high brand image to the consumer for the next generation fashion wears. We are offering high quality, special benefits and affordable price that will give us the most significant place in the market. Almost all the strong points of the competitors can be meet up with the strategies of our company. BASALT will establish a well regarded brand name link to meaningful positioning. We will have to invest heavily in marketing to create a memorable and distinctive brand image projecting innovation, quality and value. We also must measure awareness and response so we can adjust our marketing efforts if necessary. Our consumer market is middle-middle to upper-upper income Professional, Students, youths, and Trendy Users who are basically fashion lovers and comfort seekers. Using product differentiation, we are positioning our product as the most versatile, convenient, unique, comfortable, elegant, and elite and value added style for personal, occasional and professional use. Consumers will remember our brand whenever they think of comfortable but very elegantly fashionable outfits specially made for him or her in purpose in the life. Total first year revenue for the BASALT Fashion House is projected at 200,000,000 BDT, with an average whole sale of 1000 BDT per unit variable cost per unit 300 BDT sales volume of 200,000 units. Break even calculations

indicate that BASALT will become profitable after the sales volume exceeds 42857 units. We are planning tight control measures to closely monitor quality and customer service satisfaction. This will enable us to react very quickly in correcting any problems that may occur. Other early warning signals that will be monitored for signs of deviation from the plan include monthly sales and monthly expenses.

2.0 PURPOSE AND MISSION OF BASALTS MARKETING PLAN

BASALT is a fashion house producing fashion wears for Bangladeshi Market. The company has newly entered in the market to offer Bangladeshi fashion new and innovative dresses and accessories for men and women. The house will conduct researches on market and consumer demand in Bangladesh and will outsource the product manufactured from china. As we want to provide the high quality products in a convenient cost for the customers, technological benefits of outsourcing from China will be suitable to meet up the demand at a low cost with high technological and cost minimizing benefit.

PURPOSE: The companys marketing objective is to offer the consumers fashionable dresses compatible with the Bangladeshi weather and achieve first years market share of 5 percent and sales of 200,000 units. Our financial objectives are to achieve first years revenue of 200,000,000 BDT and to meet the break even in the first year. Next year, we want achieve 2% profit from the 300,000 sales unit with 300,000,000 BDT and 600,000 BDT.

MISSION: To offer Bangladeshi consumers fashionable and weather effective wears with high quality and in affordable price and take the market leader position in next five years. BASALT is committed to offer the high value to the consumer by serving the market with wears that are suitable for weather of Bangladesh. To meet that mission the cost of the product may become very high comparison to other competitors but BASALT is offering the same price level

with a very high quality warm weather effective product which is not being offered by the other existing companies in Bangladeshi Market. Our additional product fashion accessories are also very innovative and affordable.

3.0 SITUATIONAL ANALYSIS

3.1 Market Summary

BASALTs market consists of consumers who need convenient stores, regular trend update, stylish but weather suitable and comfortable outfit in any season, pure fabrics and well quality swing, buttons and lining which make them feel unique. BASALT targeted YOUTHS, PROFESSIONALS, STUDENTS and TRENDY USERS market for the first year. Table 3.1 shows the targeted segments, their needs and its corresponding features or benefits offered by BASALT:

Table 3.1

Targeted Segments

Customer Needs

Corresponding Features/Benefits
Fashionable Party and festive dress Sophisticated and elegant cutting Soft fabrics and clean lining Cool and comfortable shape for flexibility Designed on occasional & regular use Formal but trendy outfits Effective in warm weather Straighten Fabric that need no iron Sophisticated and elegant cutting Semi formal shape for regular usage Effective in warm weather Casual & Semi formal style for regular usage Comfortable for regular use

Youths

Fashionable Dress and Accessories on occasional basis Flexible & Comfortable Formal Stylish Outfit Comfortable Regular Usable Casual Dresses

Professiona ls

Students

Trendy Users

Latest Trendy Stylish Dresses with Fashion Accessories

Trendy and Elegant Cutting Stylish & Trendy formal and casual Fashion Accessories Unique color, metals, stones and lining Fashion lovers exclusive collections

BASALTs consumers can choose all the products on occasional basis or for the specific benefits. The features or benefits provided are less or more provided by the competitors but they will find it hard to compete with us because we are providing more value than competitors at the convenient prices. Our price levels are little bit high to ensure the consumers that the quality is high. We call our products nest generation fashion wears because it is provided with weather suitability and highly comfortable. In Bangladesh, warm weather lasts for almost 8 months. For this reason the clothes have to be cool in high humidity and straighten fabricating which needs low rate of iron. The products are designed to ensure saggy-proof which caused by contentious sweating. That decreases the jolliness and softness of the fabric. Even the shape and cuts of the dresses are very well though and systematically designed which ensures the minimum joints and lining edges. Before the competitor hit this quality and product features (competitive advantage), BASALT will be already catching their segmented markets in the first year. That will bring us the opportunity to take the market leadership in the next generation fashion wear market.

3.2

SWOT Analysis

BASALT has several powerful strengths on which to build but our major weakness is lack of Brand awareness and image to consumers. The major opportunity is growing demand for weather effective fashionable wear for both men and women in the corporate and regular users. We also face the threat of ever greater competition and down ward pressure on pricing. STRENGTHS: 1. Innovative and Unique Technology: We use most innovative technology to fabricate and design the dresses as well as to manufacture those by out sourcing from china and USA. Using these technologies is very rare in Bangladesh used by other competitors in the exiting market. 2. Weather Effective and Fashionable Products: BASALT is the first company in BD who produces weather effective comfortable fashionable wears for the warm weather. This is the strongest competitive advantage of our house. 3. Pricing: The technology and the product features we are using require very high pricing. Based on this factor the price would be very high but we are

offering minimum price relative to the product features. Even the price is little bit high comparison to other competitors in Bangladesh to create the image of high quality and higher value. WEAKNESS: 1. Lack of Brand Awareness and Image: BASALT has not yet established the brand and image in the market where other competitors like Westeks and CatsEye is already very strong brands in the Bangladeshi market. 2. Lack of indigenous fashion trend in the products: We used the stylish western and semi western (Bangladeshi Local and Western Fashion Mixed Fusion) trends in our product design, where BanglarMela, Aarong (except Aarongs Taga) or DesiDos (Alliance of 10 Indigenous Fashion House) are proving pure indigenous Bengali fashion outfits to the consumers. In the first year and second year we cannot hit this segment but it consists of a large number of consumers.

OPPORTUNITY: 1. Growing Demand: The major opportunity is growing demand for weather effective fashionable wear for both men and women in the corporate and regular users in Bangladesh. As the weather is getting extremely hot or cold in the respective seasons, the consumers seeks for more comfortable fashion wears. 2. Better Development in Fashion Technology: Technologies in this field are being developed very faster to make the dresses more comfortable and weather effective as well as more lasting. That will result in reducing the costs and increasing more quality to offer. 3. Diversified Trends Need of Consumers: Consumers are more aware and thoughtful now in Bangladesh that gives us the opportunity to offer more high quality products in suitable price level. Diversification in fashion trends and quality is more risk free for now in Bangladesh.

THREATS:

1. Increased Competition: More companies are entering in the Bangladeshi fashion wear market. They can easily adopt this features and technologies in their production strategy. But all the features of BASALT offered to the market is very profitable that we need to communicate those very effective that other cannot even think to reach there. 2. Downward Pressure on Pricing: Increased competition and market share strategies are pushing fashion wears prices down. Still our objective of seeking a 2% profit on the second year is realistic, given the lower margins in the fashion wear market.

3.3

Competition Analysis

Increased entry of established and new fashion houses in the market has pressured industry participants to continually add features and cut prices. Competition from high quality and technology bases production for comfort and flexibility to use the products are also some key factors in this market. Our key competitors are: Westeks Westeks is providing high quality of fashion products with western and trendy dresses using outsourced technologies for manufacturing. They have a large variety and unique designs in the product and outlets as well. Ecstasy Ecstasy has variety and creativeness in color, design, shape and outlets that consumers find it more affordable and valuable. Ecstasy has effective distribution system and high brand image. Trends Uniqueness and product design rotation is their main feature in the market. They are really successful to provide trends in the market. CatsEye Have very high brand image and the advantage of being pioneering in the outsourced dresses but their product variation and uniqueness is low.

Aarong They are very diversified in the dress design and very indigenous in the trends to the consumers. Have strong brand image and diversified outlets with variety of accessories and dresses. Taga is one of the pioneer Ladies Western Fashion Brand of Aarong which offers very high fashionable Bangla-western fusion dresses for women in Bangladesh. Despite strong competition with the established competitors, we can offer the consumers more value and unique technological benefit that will help us to gain the market share and high brand image to the consumer for the next generation fashion wears. We are offering high quality, special benefits and affordable price that will give us the most significant place in the market. Almost all the strong points of the competitors can be meet up with the strategies of our company. 3.4 Product Offering:

BASALT product offers the following standard features: Formals Dresses Pants, Trousers, Shirts, Formal Polo Shirts, Blazer, Coats and Ties for Men Shalware, Kamij, Shirts, Pants, Blazers and Blouses (Tops) for Women Formal Cuts and Linings Elegant color and texture Stylish and highly fashionable Low use of outer faced swings and threads Strengthen Fabrics that need less iron and do not get saggy in rough use Variation in edging and cut edges that differs from existing fashion Light weight and comfortable for the shaping and swing Casuals Dresses T-shirts, Jeans, Polo shirts, Trousers and Windy for Men Jeans, T-shirts, Polo shirts, Trousers, Capri and Tops for Women Informal stylish Cuts and decorated Linings Elegance in texture and fitting Stylish and highly fashionable in occasional use Strengthen Fabrics that need less iron and do not get saggy in rough use Variation in edging and cut edges that differs from existing fashion Accessories

Metal, wood ornament and leather money bags, hand parse, chain, bracelets, belts, Tie, Cap etc Light weight and exclusive shapes Stylish and highly fashionable in occasional use

3.5

Distribution:

BASALT branded product will be distributed through a network of selected store and BASALT Branded outlets. Outlets and Selected stores are: BASALT Branded Outlets: We will use our own establishments and rented outlet in the main cities of Bangladesh. Our own branded outlet will place all the products we offer in the market. Franchise Outlets: We franchise some of the company to use our logo and marketing strategy for selling our brand product in the selective distribution stores all over the country.

4.0
4.1

Marketing Strategy
Objective:

We have set an aggressive but achievable objectives for the first and second years of market entry. First Year Objective: Our first year objective is to gain first years market share of 5 percent and sales of 200,000 units. Our target is to achieve first years revenue of 200,000,000 BDT and to meet the break even in the first year. Second year Objective: We want achieve 2% profit from the 300,000 sales units with 300,000,000 BDT and 600,000 BDT. That gain 10 percent market share. An important objective will be to establish a well regarded brand name link to meaningful positioning. We will have to invest heavily in marketing to create a memorable and distinctive brand image projecting innovation, quality and value. We also must measure awareness and response so we can adjust our marketing efforts if necessary. The name BASALT is the name of the core group of the company that is launching the new product in the market. We will have to determine whether we have to create a new brand name and image or on go with this existing name instead of using the mother brand name BASALT. 4.2 Target Market:

Our marketing strategy is based on a positioning of product differentiation. Our consumer market is middle-middle to upper-upper income Professional, Students, youths, and Trendy Users who are basically fashion lovers and comfort seekers. We also targeted those who are very stylish and elegant in choice in the dresses. They like to use unique dresses in benefit, quality, color, fabric and features. Our targeted segments can be described by age, usage status income that are: Segments Youths Age Usage Status 16-35 Occasional / Celebration/Regular and

Professionals Students Trendy Users 4.3 Positioning:

Formal User 16-28 Celebration/Regular User 20-45 Personal Fashion

25-50

Using product differentiation, we are positioning our product as the most versatile, convenient, unique, comfortable, elegant, and elite and value added style for personal, occasional and professional use. Consumers will remember our brand whenever they think of comfortable but very elegantly fashionable outfits specially made for him or her in purpose in the life. 4.4 Strategies:

Marketing strategies need to broken down into strategies in specific areas of 7Ps. Product Formals Dresses Pants, Trousers, Shirts, Formal Polo Shirts, Blazer, Coats and Ties for Men Shalware, Kamij, Shirts, Pants, Blazers and Blouses (Tops) for Women Casuals Dresses T-shirts, Jeans, Polo shirts, Trousers and Windy for Men Jeans, T-shirts, Polo shirts, Trousers, Capri and Tops for Women Accessories Metal, wood ornament and leather money bags, hand parse, chain, bracelets, belts, Tie, Cap Pricing The technology and the product features we are using require very high pricing. Based on this factor the price would be very high but we are offering minimum price relative to the product features. Even the price is little bit high comparison to other competitors in Bangladesh to create the image of high quality and higher value. The price level of the products will vary from 500-20,000 which is 2% extensive than other competitor but comparison to the quality it is affordable. Distributions BASALT branded product will be distributed through a network of selected store and Branded outlets. Outlets and Selected stores are:

BASALT Branded Outlets: We will use our own establishments and rented outlet in the main cities of Bangladesh. Our own branded outlet will place all the products we offer in the market. Franchise Outlets: We franchise some of the company to use our logo and marketing strategy for selling our brand product in the selective distribution stores all over the country. We will cover the placement system through companys van and other distribution systems and vehicles.

Marketing Communication By integrating all messages in all media, BASALT will reinforce the brand name and the main points of product differentiation, especially our especially our exclusive feature. Research about media consumption patterns will help our advertising agency choose appropriate media and timing to reach prospects before and during product introduction. Thereafter, advertising will appear on a pulsing basis to maintain brand awareness and communicate various differentiation messages. The agency will appear on a pulsing basis to maintain brand awareness and communicate various differentiation massages. the agency will also coordinate public relations efforts to build the brand and support the differentiation massage. To attract market attention and encourage purchasing, we will offer as a limited time seasonal price reduction as special offers. Until the brand has been established our communications will encourage purchases through channel partners rather than from our Web site. The communication tools will be: Bill boards Website Magazine & Paper Ads Cosponsoring Fashion Events FM Radio Neon Signs People Sales person and associates will be provided with the outlet uniforms that will bring our brand messages. They will be trained to handle customers and behave in a very effective and unique style corresponding to our brand image.

Physical Environment Our branded outlets will be decorated according to our brand and the whole environment of the outlets will give the customers a very special moment to visit them. Physical environment will reflect our value and quality to the consumers.

4.5

Marketing Mix:

Spring: We will initiate 30% trade sales promotion in the spring season for the products of cold weather. Various outlet will be decorated under the hot weather seasonal environment and sales force will effort to sale up to 30% sales allocated for the first year in second term. Accessories department do not have any variation on the seasonal basis. Summer - Fall: BASALT will initiate 70% trade sales promotion in the summer to fall season for the products of warm weather. Various outlet will be decorated under the hot weather seasonal environment and sales force will effort to sale up to 70% sales units allocated for the first year in this term. 4.6 Marketing Research

Using research, we will indentify specific features and benefits our target market segments value. Feedback from market tests, surveys, and focus groups will help us develop the BASALT Brand Products. We are also measuring and analyzing customers attitudes towards competing brands and products. Brand awareness research will help us determine the effectiveness and efficiency of our messages and media. Finally we will use customer satisfaction studies to judge market reaction.

5.0

Financial Analysis

5.1 Break Even Analysis Total first year revenue for the BASALT Fashion House is projected at 200,000,000 BDT, with an average whole sale of 1000 BDT per unit variable cost per unit 300 BDT sales volume of 200,000 units. Break even calculations indicate that BASALT will become profitable after the sales volume exceeds 42857 units. Our braek even analysis assumes per unit whole sale revenue of $300 per unit, variable cost of $300 per unit and estimated first year fixed costs of 30,000,000 BDT. Based on this assumption Break even calculation is:

30,000,000 1000 -- 300

= BDT

42857

5.2

Marketing Budget 2010-2011 11,00,000 44,80,000 80,000 50,40,000 BDT 1,12,00,000

Marketing expense budget Web site Advertisement Printed materials Sales force Total Sales and Marketing expenses

6.0 Implementation & Controls

6.1 Implementation:

We are planning tight control measures to closely monitor quality and customer service satisfaction. This will enable us to react very quickly in correcting any problems that may occur. Other early warning signals that will be monitored for signs of deviation from the plan include monthly sales and monthly expenses. 6.2 Marketing Organization: Shakerul Tazu will be responsible for the

BASALTs chief marketing officer marketing activities.

The graph below shows the marketing organization:

Shakerul Tazu Chief Marketing Officer

Md Eamin Zabed Sales Manager

Subrata Kumar Singha Advertising Manger

Farhana Yeasmin Lopa Promotion Manager

References
1. Marketing Management, by Phillip Kotler & Kevin Lane Keller

2. Plan

Ms Nazia Nabi, Faculty, School of Business, How to write Marketing

Appendix

Content 1.

Developing 20 MCQ for gathering information.