Assignment on SWOT Analysis and Developed Strategy Management Process
Mang (Pvt.) Limited will be started January 2010 in Bangladesh. This company is providing 100% natural herbal extracts for its target consumers keeping in mind their need of the product. It will be selling its product to almost all the retail shops and accessories shop in the country. Market research indicates a specific and growing need of natural juice. We want to use a little Caffeine to add as extra feature of juice which can ensure the refreshment quality we are claiming. We should also develop strong brand equity. Our brand name is CHOICE, which will be the automatic choice to the customer. Our slogan will be “A sip for refreshment”. This company is providing a high quality product with low cost of its consumers. We will use market-penetration pricing. But, later we will also price-adjustment strategies like- discount and allowance pricing, promotional pricing etc. After ‘SWOT Analysis & developed strategy management process of the New-Born Company these strategies are applying on the the New-Born Company. And then before six years, comparing the condition of the New-Born Company with other competitors in the market that result shows, the profits, sales, assets, target customers, modern technology and popularity of this company are much developed than other competitors in the present market of this country.
As we are a new company with a new and a unique product, our initial objective is to position our product in the market. We are not hoping for huge profit in the first year, but our aim is to capture the taste of the consumers in most of the market segments. But our main object of this term paper is to know about the ‘SWOT analysis & developed strategy management process of The New-born (Pvt.) Limited.’
For our research, we collect and use the data from two sources:
- Primary Data
- Secondary Data
For collecting primary data we have visited PRAN mango juice factory and office. Interviewed, observation was the method of collecting data.
We also use some relevant secondary data from different sources like: published books, journal, website etc.
When we prepare this report we faced some problems, such as limited time, technical problem and practical problem in communicating people, information need, cost etc. but this limitation does not effect in our project.
We will produce quality food items and newer beverage products maintaining the international standard and will price at premium prices while providing challenging career opportunities for employees.
We do believe in never-ending quest for quality.
For the coming five years New-born (Pvt.) Limited will try to achieve the following goal
Promoters of The New-born (Pvt.) Limited
The promoters of The New-born is well skilled and challenged labor. They come from different sector of engineering and business administration. There are three prime promoters of The New-born (Pvt.) Limited are Sam Gomes, Md. Ruhual Amin and Saym Chowdhuri. We worked hard for predict the future prospect of all sector as we could possible. And we found positive and encouraging result. We will run our business and distribute ore profit equally
Company Profile of The New-born (Pvt.) Limited
|Name :||The New-born (Pvt.) Limited|
|Address:||107, Tejgoan, Dhaka.Web: nbl.bd.org, E-mail: email@example.comContact no: Tele: 88-01712634390,|
|Type of business:||The firm is involved with production and distribution of 100% natural from natural resources.|
|Area of operation:||The company will operate its activities within the boundary of Bangladesh. It can extend its project anywhere suitable in the country.|
|Capital:||At the starting point the firm will have a capital of Tk.1,500,000 BDT. In case of necessity additional capital can be collected from the partners and share holders.|
|Drawing:||Every partner can draw maximum Tk.25000 each month.|
|Distribution of Profit:||According to the ratio of capital the profit will be distributed or loss will be covered equally among all partners.|
|Management & Operation:||Every partner will take part in the operation of the business. The manager of the company is Md. Ruhul Amin |
|Preparation of Financial Statement||That proper Book of Accounts of the business shall be maintained and kept at the office and the partners shall have free access to the Books of Accounts.That an Annual balance sheet for profit and loss shall be prepared which shall be shared by the parties proportionately.|
|Accounting Period||The company will maintain its accounts in a fiscal year consisting of January 1st to December 31st.|
|Banks||The company shall be opened in the name of the firm with any banks of Bangladesh. This shall be operated under the joint signature of any two partners of the firm respectively. In banking transaction the signature of managing partner is mandatory.|
|Admission of Partnership||New partners can be admitted in the company but partners have to follow the rules.|
|Retirement & Death of Partners||Any partner can take retirement from the company by providing a two months prior notice. In case of death of any partner his nominee or successor can become a partner on the consent of other partners.|
|Repayment of Capital||Incase of the death or retirement of a partner, the remaining partner will pay the state or retiring partner the full amount of the original investment. The payment will be made within 1year of the death or retirement of the partner.|
|Grievance Procedure||If grievances between partners cannot be resolved, an arbitrator will be hired that is acceptable to all partners. The decision reached after arbitration is binding.|
|Termination||In case of necessity or according to the occurring situation if the termination of the firm has to done, the termination procedure will be followed by the Partnership Act 1932 prevailing in Bangladesh.|
|Change of Condition||With the consent of all parties, rules & terms of the article can be amended.|
Company Description :
The New-born (Pvt.) Limited is a new company in the competitive market. The capital of this company is Tk. 1,500,000 and 36 employees. Our initial pricing will be cost based pricing which is shown in budget section. Our product price will be Tk. 7 to 26.
The starting time, company is collecting maximum raw elements of the product from the country. After studying the survey we can say that the target customers of the juice are mainly young
people. The age range of the young people is 11-20. The kids are also very fond of Juice.
In the juice market, there are many juice companies.. That’s why it is hard to create or reach number one position at present market, but it is possible. For that cause, company wants to develop products elements.
New-Born’s marketing strategy is based on a positioning of product differentiation. Our primary consumer target is kids, children and young, where taste will vary at each offering. Our secondary consumer target is health conscious people. This segment can be described demographically by age (1-10, 11-20, 21-30, 31-40, and 41-50).
Our marketing-mix strategy is based on superior performance in the following areas:
- Product selection
- Product quality
- Consumer’s preference
Our marketing strategy will create awareness, interest, and appeal from our target market for what New-Born offers our customers
Organizational Structure of The New-born (Pvt.) Limited
Elements of Micro Environment
- 1. Supplies:
We want to distribute our product through out the country by our employee distributors in every district. We will facilitate them by our company’s logistical support. They will get the transport and communication facilities. We will build strong value-delivery network rather then only supply chain system. We will emphasis on downstream partners so that our consumer can get our product easily. Our distribution is mass marketing so our most important channel partners being contacted are:
- Distributor: New-Born will assign distributor in every district.
- Dealer: Dealership will be given to the remote and large area.
- Wholesaler: Wholesaler will carry out our product to the retailer.
1.2 Customers :
After studying the survey we can say that the target customers of the juice are mainly young people. The age range of the young people is 11-20. The kids are also very fond of Juice.
- 3. Competitors :
In the juice market, there are many juice companies. In Bangladesh, the domestic companies are Pran, Starship, Arong, Danish, Acme and the foreign companies are Shezan, Tiffany, Cyprino, Alowba Dutch Lady, Foster Clarks, and Rasna etc. The domestic companies are producing the juice with the domestic fruits combining different flavors like milk, chocolate, mixed fruits. They differentiate their juices by considering uncommon fruits like tamarind, guava, pineapple, lemon, etc. On the other hand, the foreign companies offer banana, tomato, carrot, apple, papaya, strawberry, leeches, which are uncommon. Both the foreign companies and domestic companies are considering different sizes, attractive package systems for the consumer. These competitors are not keeping the quality consistent. Though they offer different types of flavors, but they cannot maintain the quality. Still there is huge competition between the companies.
Despite this strong competition, our company can carve out a definite image and gain recognition among the mass people
- 4. Marketing Intermediaries :
Marketing intermediaries are vital links between the company and the final consumers. And it is also the source of collecting information about product sell, product development, distribution, design etc.
- 5. Publics :
A business is continuing to consider all public. Prime Bank Ltd., Dutch – Bangla Bank, HSBC Bank, Prime Finance & Investment Ltd are the financial public of this company. The condition of corporate level employees, SBU level employees, production worker and other workers so much good of this company .
Elements of Macro Environment
- 1. Economic Environment :
The company will be opened by 3 members. They invest Tk.1,500,000 in this business. Although this capital enough for starting period. Due to it is essential to develop the company by establishing new factories with modern technological advancement.
- 2. Political and Government Environment :
the New-Born Company is approved by Government. The company product is approved by BSTI.
- 3. Socio-Cultural Environment :
the New-Born Company will carry on its business to consider socio-culture of this country. This company will do sponsor on different traditional activities
- 4. Demographic Environment :
We want to keep the original flavor of mango in our every juice-pack so that the customers can get the original taste. No artificial flavors or preservatives will be added to ensure the natural touch. We want to use a little Caffeine to add as extra feature of juice which can ensure the refreshment quality we are claiming.
At the Introduction stage, we want to launch our juice in 3 different sizes:
- Junior (100 ml)
- Classic (220 ml)
- Standard (500 ml)
- 5. Natural Environment :
New-born (Pvt.) Limited has the modern technology to provide the high quality juice. It also has the new concept to compete with the domestic as well as the foreign competitors by offering the new products to the market. Besides, this company is importing all high quality raw – natural taste of mango along with natural color, no artificial color is added, no preservative, healthy for age people, it is fat free, nutritionally low in calories, considering as an ideal diet food.
- 6. International Environment :
International environment is particularly important for industries or business. It also affect on the price of the product, This company’s maximum raw materials of the product is local that’s why price is not directly affected.
Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis:
CHOICE mango juice has several strengths depending on which we are ready to produce it. Along with the strengths CHOICE mango juice has basically three main weaknesses. The opportunities are that it is a new concept, enormous target market, and increasing consumer income. The threats are also there. For instance, it is easily duplicable, because of that consumers can switch easily to other brands and lack of infrastructural support.
CHOICE mango juice has five major strengths:
(1) Experienced And Expert Management and Board: We have a very experienced
and expert management and board which helps us to produce a good and a very
promising new product.
(2) High Quality Product: As we have great experts in our company we can guarantee a high quality product. As mango is a summer fruit and it is a very juicy fruit it self. So the taste of the juice will be exactly like the real fruit, as the juice will be made from real mango. No Preservatives or extra tastes will be added.
(3) Unique Distribution All Over the Country: We have great distribution channels, which will allow us to distribute the product to every part of the country. And we will make sure that every consumer from every part of the country is getting the product.
(4) Large Amount of Investment and State-of-Art Technology: We have sufficient amount of capital to invest. So, we can afford to have the best machineries required and the best technology know how to make the product. We have the most modern and fluent machines and state-of-art technology.
(5) Highly Skilled Human Resource: Our technicians are highly skilled and trained. We make no compromise with quality so, the consumers will get the very best they can.
As New-Born Co. (Pvt.) Ltd. a new company in foods and beverages market, it may face the weakness of:
(1)Lack of brand awareness: As New-Born Co. (Pvt) Ltd. a new establish
company, it is not popular recognition. So, our brand CHOICE mango
juice will face competitive brand recognition. Our primary marketing objective
is to create product awareness among our target customers.
(2)New taste and flavor: We offer a completely new flavored and tasted juice.
Usually other company introduces only traditional juice like- lemon and orange.
So our product at first can only tasted by the innovators.
There are three basic opportunities:
(1) Uniqueness- As the mango juice is not a competitively new concept it has a good opportunity to capture the market and the taste of the consumer. It has a totally different color, which is not usual to see in a juice or a drink. The color will attract people and the taste we give will be exactly like the real fruit. In this hot and humid country like Bangladesh it will be a good drink to meet up with your thirst.
(2) Enormous Target Market – The target market for this juice is huge. This is because we live in a country, which is hot and humid most of the time in a year. Mango is a fruit, which more or less every one in our country knows starting from the rich to the poor. We have set a price by which we can get to any segment. We want everyone to be able to drink this juice, which will not cost much and will be affordable.
(3) Consumer Income Is Increasing-As our country is on the rise in economy our consumer income is increasing. And as a result of better income the consumers are willing to pay for good commodities. Our product is such a product, which is priced in a way so that most people can consume it.
(4) Legally Protected: Our new product CHOICE brand mango juice is copyrighted and registered. CHOICE is approved by BSTI and its processing is followed by WHO. We also look for the ISO certified.
There are three threats, which can affect our product:
(1) Consumers Can Switch: As the product is a liquid and it has just a single flavor the consumers can switch to different brands for more variation in taste.
(2) Can Easily Be Copied: The product can easily be duplicated by the competitors. Because every one will know about its ingredients and it might easily be copied by other brands.
(3) Lack of Infrastructural support: Lack of infrastructural support is another threat. Due to lack of infrastructural support the product might be in risk.
|Management||Experienced and expert management and board||New Brand|
|Offerings||Unique, high quality product||Existing taste and flavor|
|Marketing||Distribution in the all over the country.|
|Personnel||Excellent work force|
|Finance||Large amount of investment|
|R&D||Highly trained technical human resource|
Choice of Strategy :
Choice of strategy is the stage where is written about the choice of the company from the consideration of strategic alternatives for reaching object .
For increasing capital, the company can manage essential capital by collecting loan from the Bank .That is also most secure for company.
For managing space, the company can overcome the problem of scarcity of space by purchasing new land .Because, if company purchases new land then company will benefited from the side of assets.
For developing industries with high technological advancement machineries, purchasing computerized machineries is the best alternative for of the company .If company done it then the industries will develop with high quality technological advancement. That’s why production of the company will increase.
For Advertising progress, company can start to show more ad of this product on TV, FM & local dish channel in the whole country then past.
For packaging style, company can improve the packaging style of the product by modern design & level. That is the best alternative to change the packaging style for the company.
In our marketing implementation process, our marketing strategies and plans will turns into marketing actions in order to accomplish strategic marketing objectives. Urban areas and district head-quarters will be treated as the current market and the product will be offered in half prices in front of schools, amusement parks, stadiums, concerts and in the social get-together places to gain the attention.
Sponsored in social event like concerts, sports league, and other social gathering to attract the attention of people will be New-Born’s implemented plan and it will continue a single unit business. That’s why there are only two level strategies. These are given below :
Corporate Level Strategy :
At this stage, according to the choice of the strategy capital is the main alternative of strategy .For that collects loan from the bank to manage the essential capital of the company, firstly. Then purchase land & machineries. And then change the packaging style of the product. After that the production & advertising of the product will increase to fulfill the demand of the target customers of the company and create new consumers.
Functional Level Strategy :
This stage is completed depending on corporate level strategy. Actually, a SBU is an operating division of a compan
According to the developing strategy management process. After applying these strategies on the company, the conditions of finance, HRM, production, distribution, etc are so much best than the past. That means enough capital, extended industries with high quality computerized machineries, high quality product with smart & modern design, etc are increasing the attractiveness of consumers to buy this product. That reasons the products sale & popularity are increasing than other competitors in the present market. And ultimately, the profits &assets of New-Born Company will also increase, day by day than the past days.
Final Objective :
The total management works are completed within one year that is continuing four years. After four years, comparing The New Born Company with other competitors in the market that result shows, the profits, sales, assets, target customers, modern technology and popularity of this company are much developed than other competitors in the present market of this country
In this term paper, the New-Born Company will produce Choice Mango Juice from January 2010. The term paper idea was generated from secondary sources and supported by feasibility testing. The term paper will ensure all the information provided in this plan by actively commercialization process. The mango juice project is a manufacturing project, so that its function will be a continuous process. The primary objective of the model report is to facilitate the entrepreneurs in understanding the importance of setting up such a unit, technology and financial parameters of various components for preparation and submission of project proposal to bank for sanction of long term loan. This model report will serve as guidance to the entrepreneurs on starting up such a new project and basic technical knowledge for setting up such a facility.