Executive Summary:

Juice is considered as the fresh source of refreshment. People like to take juice

especially in summer season but we are focusing the whole year. To give the customer

fresh juice we want to launch an outlet named JUICE CORNER in banani bazar. Juice

corner is preparing to launch several juices in growing market. We are targeting specific

segments in the consumer taking advantage of opportunities indicated by enough demand

for juice.

The primary marketing objective is to achieve unit sales of 25550 glasses. The primary

financial objectives are to achieve first year sales revenue of BDT. 12,13,625, keep first

year losses of BDT. 2,11,760 and break-even early in second year.

In the first year of our operation we will try to make our juice product popular to people

and try to earn their trust over our product by supplying superior quality fresh juice and

with a very friendly service. As juice is only available for a few months, we have to

attract people and convince them to buy our product in a very short time. We are

planning to do that with our fresh juice and attractive outlet with our service quality.

Objectives:

Our main Objective is to provide fresh juice to people. our other objectives are

stated below

Provide high quality juice

Collect naturally ripe juicees, watermelons, apples and oranges to

make juice which are not harmful for the environment and human

health.

Establish our outlet name as “JUICE CORNER”

Friendly and caring service

Gain profit in the long run.

Current Market Situation:

Market demand of juice is growing day by day because people are getting health

conscious and want to take fresh juice item from nearby outlet. In Bangladesh many

companies produce a large number of superior varieties of juice. These have wide

demand in the market and are commercially important. The study on the current juice

market situation has shown that, there is a huge demand of juice in the market but at the

same time, people are scared to consume juice because there are reports of using different

chemicals on juice while manufacturing such as flavor chemical. So, in order to capture

the market juice has to maintain its quality and at the same time earn the trust of the

people.

Market Description:

Juice corner will mainly target banani. We will sell our juice at one selected outlet

in banani. Our product can meet the needs of higher middle class, lower middle class,

upper class peoples who needs quality as well as at a reasonable price. Juice Corner will

always ensure quality juice and hygienic disposable primary packaging.

Product Review :

Juice Corner will offer the followings:

Various items (juice,watermelon,apple,orange)

Fresh juice

Chemical free juice

Hygienically packed

Timely delivery.

Convenient and attractive packs

Guaranteed healthy and safe food item

Competitive Review :

Distribution Review

We are doing direct marketing so we don’t have any distribution channel.

Direct marketing : Our own well decorated outlet and personnel will ensure

timely delivered our product

Strengths, Weaknesses, Opportunities and Threat Analysis

Juice corner has several powerful strengths, which will help it to reach its goal by

creating store awareness and positioning. Our major weakness is lack of store awareness

and image and experience. Major opportunity for the store is the growing demand in the

market in banani. Lack of good quality of our raw material (fruits) in the supply market is

a threat. These are summarized in the following. Table- SWOT

Strengths

Juice Corner can build on four powerful strengths:

1. Premium quality: Our Company will provide quality juice. We will always

maintain best quality and always standard juice. As we maintain our delivery through

our own workers we can deliver fresh juice to the market.

2. Fresh quality: Our Company is going to deliver fresh quality juice in our

customers, as we know in our country lots of businesspersons sell their juice with

chemical.

3. Timely delivery: employees will ensure timely delivery to our customers within 6

minutes.

Weaknesses

As a new company Juice corner has some short comings:

1. Lack of brand awareness: As a start-up Juice corner has not yet established a

brand or image in the marketplace. Our customers do not know about our

company and business. We will address this area with our promotion.

2. Lack of experience: One of our major weakness is we have no experience of

running this business. For this reason, we can have some difficulties at first to run

our business. This problem can be overcome to some extent by taking advice from

some experienced person in the business.

3. Lack of time: Another weakness in this business is the shortage of time. Juices

are available only for a few months in the year such as mango for 6months. So,

only in summer season we can sell mango and watermelon juice.

Opportunities

Juice corner can take can take advantages of two major market opportunities:

1. Increasing market growth: people are preferring juice for refreshment. They are

shifting to juice from cola drinks. For this opportunity market growth is

increasing.

2. Health consciousness: juice is a fresh item and it is good for health. So people

are getting health conscious day by day and preferring juice.

Threats

We face two main threats of our product:

1. Lack of good quality fruit supply: Because of our main objective, we will only

sell high quality and fresh juices. But it is very hard to get all good quality fruits.

2. Perishability: Again one of our major threats is, fruits can be perished.

Table: Juice corner’s Strengths, Weaknesses, Opportunities and Threats (SWOT)

Strengths Weaknesses

Premium Quality

Fresh quality

Timely delivery

Lack of brand awareness and image

Lack of experience

Lack of time

Opportunities Threats

Increasing market growth

Health consciousness

Lack of good quality fruit supply

Perishability

Objectives and Issues

We have set high but achievable objectives for the first and second year of market

entry. The major company goals and objectives in terns of sales volume, market share

and profit for “Juice corner” is as follows:

First-year Objectives

During the initial year on the market we are aiming to draw the attention of the

consumers. Our first year objectives are:

1. Sale of approximately BDT. 12,13,625 (25550 unit) for the first year

2. Make the brand name popular and create a good image in the market.

3. Obtain 5% of the total local market share.

4. Develop brand awareness and image in the market.

Second-year Objectives

Our second year objective is to build on the achievements of first year.

1. Achieve 10% of the local market share based on sales.

2. Sale of BDT. 24,27,250

3. Earn 10% profit by second year.

4. Extend the business in other areas.

Issues

Our major issue is to build a good reputation in Local Market. We have to

maintain high quality by hygiene factor and ensure healthy & chemical free fresh juice to

our buyers in reasonable price. If we get our desired success in the first year of business,

we will then extend our business and start it in different areas in Dhaka.

Marketing Strategy

Juice marketing strategy is based on a positioning of product quality and service.

Our main target is local market. Primary business target is selling our product in our

selected area. In later stage if we see that, our business is much stable then we will target

many areas.

In addition, our primary target is to catch those customers who are the nearby university

student. This segment can be described as demographic and geographic.

Each market segment is covered by four marketing mix, which conveys our quality of

product to each target market segment.

Positioning

By market positioning, we will try to occupy a clear, distinctive and desirable

place in the mind of target customer. Juice corner want to develop a unique market

position for its product based on premium quality. We will distinguish our product by

providing best quality, very carefully processed juices. As the name suggests, we are

going to provide actual quality juice to all our customers.

Product strategy

Juice corner including all the features described in the earlier product review

section will also guarantee chemical free juice, exact quantity and timely delivery. Our

juice will be well presented to our customer. Building the Juice corner brand is the

Customer Service

Reasonable PricingVariation in

Product

Marketing

Product Quality

Special Offers

integral part of our product strategy. The brand and logo will be displayed very

attractively on all our disposable glasses. It will be reinforced by its prominence in the

introductory marketing campaign.

Pricing strategy

Juice will be introduced at Tk.40-70 (price differ for different categories of juice)

estimated retail price per glass. This pricing strategy will help the company to capture

market share fast. After introduction of different pack size price will be readjusted.

Distribution strategy

We are doing direct marketing so we do not have any distribution channel.

Figure: Juice corner’s distribution channel

Market Communication Strategy

We will advertise by postering. We will do postering to nearby university to

attract student and other local people. And our poster size is given below :

Length 1.5 feet

Width 1 foot

Juice corner

Customer

For the first year we will order 500 posters to capture the local area. The cost will be

approximately BDT 2500.

Our Probable leaflet design is given below:

Juice cornerThe natural fresh juice is on your area

We are coming with new brand for fresh juice in your bazaar.

provides you….

All kinds of Bangladeshi juice in reasonable priceChemical free fresh juice.You can easily find our product by our brand sticker.The sticker confirms you to get fresh juice.Our juice is tasted BUET lab test.

available at …..

Our pushing car will available from 9.00 am to 9.00 pm

marketing Research

Using research, we will identify the specific features and benefits that our target

market segments value, feedback from market surveys and focus group will

help Juice corner develop the product. We will also measure and analyze our customer’s

attitudes towards the other juice seller’s products. Finally we will use customer

satisfaction studies to gauge market reaction.

Action programs

January: We will rent a store in banani bazar. We will give the advanced payment of

BDT. 5 lacs for the store.

February: We will decorate our store. We will purchase 2 blender machines.

March: We will recruit 3 employees for our store.

April: We will start our store. We will do first phase of advertising (postering).

May: We will do second phase of advertising (postering)

June: We will analyze the sales after two phases of advertising.

Cost analysis

Variable cost /unit

1 unit = 1glass juice = 250 ml juice

1. Glass: BDT. 1.8

2. Water: 1 container = 10 litre water = BDT. 30

We need 25 ml water for 250ml (1glass) juice.

So, cost /unit = (30*25) /10000 = BDT. 0.075

3. Sugar: 1 kg sugar = BDT. 36 = 200 tea spoons sugar

We need 1 tea spoon sugar for 250 ml juice.

So, cost /unit = 35/200 = BDT. 0.175

4. Fresh fruit liquid: We need 225 ml fresh fruit liquid for 250 ml juice.

For mango, 1 kg mango = BDT. 60

1 kg mango = 4 mangoes (approximately)

1 mango = 60/4 = BDT. 15

1 mango = 2 glasses = 450 ml fresh mango liquid.

450 ml fresh mango liquid = BDT. 15

225 ml fresh mango liquid = (15*225) /450 = BDT. 7.5

For watermelon, 1 piece watermelon = BDT. 60

1 piece watermelon = 8 glasses fresh watermelon liquid.

8 glasses fresh watermelon liquid = BDT. 60

1 glass fresh watermelon liquid = 60/8 = BDT. 7.5

225 ml fresh watermelon liquid = BDT. 7.5

For apple, 1 kg apple = BDT. 110

1 kg apple = 6 apples (approximately)

1 apple = 110/6 = BDT. 18.33

1 apple = 1 glass = 225 ml fresh apple liquid.

225 ml fresh apple liquid = BDT. 18.33

For orange, 1 dozen = BDT. 70

1 orange = 70/12 = BDT. 5.83

1 orange = 1 glass = 225 ml fresh orange liquid.

225 ml fresh orange liquid = BDT. 5.83

On average, 225 ml fresh fruit liquid = (7.5 + 7.5 + 18.33 + 5.83) /4 = BDT. 9.79

There is no carrying cost because we will buy these fruits from nearby fruit sellers in

banani bazar.

Electricity bill is a mixed cost. It has 2 parts. One is variable and another one is fixed.

5. Variable electricity cost: Total electricity bill = BDT. 12000 per month

(approximately)

Fixed electricity bill = BDT. 118 per month.

Variable electricity bill = BDT. 11882 per month.

Expected sales volume = 70 units (glasses) per day.

Variable electricity bill /unit = 11882 / (30*70) = BDT. 5.66

6. Tissue-paper and straws: BDT. 0.17

Total variable cost /unit = 1.8 + 0.075 + 0.175 + 9.79 + 5.66 + 0.17 = BDT. 17.67

Fixed costs for first year

1. Rent of shop: Advanced payment = BDT. 500000

Rent per month = BDT. 15000

Rent per year = BDT. 180000

Total rent of shop for first year = 500000 + 180000 = BDT. 680000

2. Juice blender machine: Cost of purchasing 1 blender machine = BDT. 5000

We need 2 blender machines.

Total cost = 2*5000 = BDT. 10000

3. Other decorations: BDT. 100000

4. Salary of employees: We will have 3 employees.

Total salary of employees /month = 3*5000 = BDT. 15000

Total salary of employees /year = 15000*12 = BDT. 180000

5. Fixed electricity bill: Fixed electricity bill /month = BDT. 118

Fixed electricity bill for first year = 118*12 = BDT. 1416

Advertising cost: (Postering)

Length= 1.5 feet

Width = 1 feet

We will order 500 posters for initial stage (1st year)

Total postering cost = 500 x 5=2500 BDT.

Total fixed cost for first year = (680,000+10000+100000+180000+1416+2500)

= 9, 73,916 BDT.

Setting the selling price/unit

For each item

Price of 1 glass Mango juice = 40 BDT.

Price of 1 glass Watermelon juice = 40 BDT.

Price of 1 glass Apple juice = 70 BDT.

Price of 1 glass Orange juice = 40 BDT.

Average Price of one glass Juice = 47.5 BDT.

Budget

Total first year sales revenue for Juice is projected at BDT.12,13,625 with an

average price of BDT.47.5 per glass and variable cost BDT.17.67 per glass for sales

volume of 25550 glasses . We anticipated breakeven after first year. Break-even

Calculations indicates that Juice will become profitable after the sales volume exceeds

32649 units. Our breakeven analysis of Juice assumes per glass sales revenue of

BDT.47.5 per glass, variable cost of BDT.17.67 per glass and estimated first year fixed

cost of BDT.9, 73,916.

Break-Even Volume = Total fixed cost ÷ (selling price – variable cost)

= 9, 73,916 ÷ (47.5 – 17.67)

= 32649 units (glasses)

Controls

We are planning tight control measures to closely monitor quality that we have

promised and also customer service satisfaction. This will enable us to react necessarily

in developing anything about our product.