MERIL Product Planing

MERIL COCOANUT HAIR OIL – Marketing Plan

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EXECUTIVE SUMMARY

MERIL Consumer Brands will launched MERIL Cocoanut Hair Oil in the year 2007.

MERIL Consumer Brands introduced this product with a vision of achieving the top

position in the Cocoanut Hair Oil market in near future. Keeping this perspective in

mind MERIL Consumer Brands has collected raw materials from the best possible

sources to ensure customer satisfaction. Though this year MERIL Cocoanut Hair Oil

faced several negative situations in the market for purchasing local raw materials.

MERIL Consumer Brands wanted to establish its name in this particular market

through this product, which will facilitate the marketing of future products to a

considerable extent. The objective of this Marketing Plan is to formulate a proper

guideline action plan.

Competitive brands were very aggressive and spent huge amount in advertising

during the last few years. Furthermore, Parachute as a popular and familiar brand in

India, entered into Bangladesh market with extensive campaign and also enjoyed the

spillover advantages that led them to success. SWAN brand brought about

continuous changes in their TVC’s and promoted tremendously during last two

years.

At the same time, this year we plan to increase our sale volume over 2007 by 39%,

which will establish MERIL Cocoanut Hair Oil in the market with 3021% shares and

achieve NSI of Tk. 39 million, griss margin of Tk. 7.51 million(19.48% of NSI).

MERIL’s threat comes from Square’s Jui, Lalbagh’s Gandharaj, Kallol Distribution’s

Parachute, Aromatic and Keya, because they spend heavily in electronic & print

media, merchandising and distribution.

Consumer awareness and product acceptance both depend on Promotion (In

electronic media, print media, trade scheme, consumer scheme, outdoor media, and

POP and merchandizing activities). So, considering the promotion budget we will

give more emphasis on electronic & print media, trade scheme and consumer

scheme.


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Table of Contents Executive Summary. …………………………………………………………………………1

A. Hair Oil - Products Details................................................................................... 3

1.1 Specification........................................................................................................................................... 3

1.2 Formulation........................................................................................................................................... 4

1.3 Raw Materials....................................................................................................................................... 4

1.4 Raw Materials Source............................................................................................................................ 4

1.5 Packaging Materials .............................................................................................................................. 4

1.6 Pack Size .............................................................................................................................................. 5

1.7 Price Analysis ....................................................................................................................................... 5

1.8 Features................................................................................................................................................. 6

B. Introduction ........................................................................................................ 6

2.1 Profile of Total Branded Hair Oil Market............................................................................................. 6

2.2 Analysis of Market Size, Segment, Share & Growth: ........................................................................... 7

2.3 Analysis of competition .......................................................................................................................... 8

2.4 Competitive promotional medias ............................................................................................................. 9

2.5 Competitive pricing:..............................................................................................................................10

2.6 Distribution and distributors profile of different companies: ...................................................................11

C. Swot Analysis of MERIL Cocoanut Hair Oil......................................................12

3.1 Strength of the Product .........................................................................................................................12

3.2 Weakness of the Product ......................................................................................................................12

3.3 Opportunity in the Market ..................................................................................................................12

3.4 Threat .................................................................................................................................................12

D. Objectives ............................................................................................................13

4.1 Marketing Objective.............................................................................................................................13

4.2 Financial Objective ..............................................................................................................................13

4.3 Campaign Objective .............................................................................................................................13

E. Marketing Strategy .............................................................................................14

5.1 Advertising and Promotion ..................................................................................................................14

5.2 Sales and Marketing............................................................................................................................16

5.3 Target Market And Consumer Profile Of Hair Oil.............................................................................16

5.4 Product Strategy...................................................................................................................................18

5.5 Pricing Strategy....................................................................................................................................20

5.6 Promotion Strategy...............................................................................................................................20

5.7 Distribution Strategy ...........................................................................................................................21

F. Budgets….………………………………………………………………………...24 G. Conclusion……………………………………………………………………......25


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A. HAIR OIL - PRODUCTS DETAILS

1.1 SPECIFICATION

Market : Bangladesh Product : Cocoanut Hair Oil Brand : MERIL Coconut Hair oil

l Manufacture : MERIL Consumer Brands Production plant : MERILFL, Rajabari Product Life Cycle (PLC) : Growth Stage Product Mix : 2 Pack Size (200 ml & 400 ml)

1.2 FORMULATION

Mixing Ratio = RBD: DP = 2: 1

1.3 RAW MATERIALS

RBD = Refined Blessed Deodorized DP = Double Palm

TESTS SPECIFICATIONS STANDARD (BSTI)

Appearance Pale yellow color, oily liquid N/A

Odour Characteristics N/A

Solubility Soluble in hot alcohol and alcohol ether mixture

N/A

Free Fatty Acid 0.5% max. as lauric acid 0.5 max

Acid Value 1.0 max 0.5 mg/gm max

Saponification Value 245-265 248-265

Iodine Value 7.5 to 10.5 6-13

Specific gravity 0.915 to 0.920 0.915-0.920

Refractive Index (RI) 1.445 to 1.450 1.448-1.450


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1.4 RAW MATERIALS SOURCE

RBD = Sime Darby Edible Products Ltd.

255, Jalan Boon Lay, Jurong Town,

Singapore-619524

DP = Adamjee Lukmanjee and Sons Ltd.

140 Grandpass Road, Colombo14,

Srilanka.

Nasiruddin & Brothers

Hajee Market (1st Floor)

261, Khatungonj Ctg.

Tel: 638745, 635267

1.5 PACKAGING MATERIALS

Specification of Container:

SKU Before Sealing After Sealing Coating Tin Thickness

Temper Contain

Height Mouth Dia

Body Dia

Height Mouth Dia

Body Dia

200ml 63mm 85mm 255mm 62mm 81mm 255mm

400ml 92mm 93mm 280mm 91mm 89mm 280mm

5.6/5.6 or over

0.18 to 0.20 mm

T3-T4 and for lid T4-T5

Specification of Shipping Cartoon: Corrugated three ply

Size : (10 ¾ x 7 ½ x 7 5/8) inches 1.6 PACK SIZE

MERIL Cocoanut Hair Oil is available in two SKU – 200 ml and 400 ml Product Pack Size Mode Of packaging Cartoon Size

ACHO 200 ml Tin 24 Pcs

ACHO 400 ml Tin 12 Pcs


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1.7 PRICE ANALYSIS

COGS Calculation: 200 ml (10% Extra)

Sl no.

Particulars Amount in Taka

1 NSI 26.81

2 Raw Material : 13.20 Packaging Material : 7.94 Labor and FOH : .93 COGS : (82.32%of NSI)

22.07

3 Gross Margin (17.68%of NSI) 4.74

COGS Calculation: 400 ml

Sl no. Particulars Amount in Taka

1 NSI 47.51

2 Raw materials : 26.40 Packaging materials : 9.22 Labor and FOH : 1.26 COGS : (77.62%of NSI)

36.88

3 Gross Margin ( 22.38%of NSI) 10.63

Basis of COGS Calculation

Description

Production process = RBD: DP = 2: 1

Price of RBD one kg = Tk 63.92

Price of DP one kg = Tk 114.43

Supplementary Tax = 12.5%

Duty = 41.48%

Labor and FOH

200ml 400ml

Tk 1.44 Tk 2.28


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Price Structure:

Product Pack

size NSI Distributor’s

Price Trade price Including

VAT

VAT MRP

ACHO 200 ML Tk 26.81 Tk 36.20 Tk 37.50 Tk.4.89 Tk 40.00

ACHO 400 ML Tk 47.51 Tk 63.70 Tk 66.00 Tk.8.61 Tk 70.00

1.8 FEATURES

- Acid value and other specification comply with standard.

- Raw materials are of best quality.

- Free from fortified chemicals.

- It has no artificial colors and perfumes.

- Easy opener.

B. INTRODUCTION

2.1 PROFILE OF TOTAL BRANDED HAIR OIL MARKET

The estimated market size is approximately Tk 1500 million. Nearly 31% (Tk. 320

million) is occupied by unbranded/loose sector. Major competitions are Lalbag,

Square, Parachute, Aromatic, Keya, Tibet, Tasmery, Henolux, and Luna.

Category penetration is almost universal across urban and rural areas. Square,

Lalbag, Parachute, Keya and Aromatic brands have a strong image and

popularity and this is due to considerable amount of expenditure on promotion.

Between these Lalbag and Square brands are prevail in the market since a long

period. Recently a new brand named”Lily” came up with a very strong media

campaign and has succeeded to shake the already established branded market.


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2.2 ANALYSIS OF MARKET SIZE, SEGMENT, SHARE & GROWTH:

Market size is approximately Tk 1500 million. Hair Oil market is growing at the

rate of 6% per year. Market of this product is urban, semi-urban and also rural

oriented. It is relatively a slow moving product.

MARKET SEGMENT

PRODUCT MARKET

ACHO 200ml Urban & Semi urban market and some portion of rural market

ACHO 400ml Urban & Semi urban market and some portion of rural market

Market size of Branded Cocoanut Hair Oil in 2007: Tk. 755.56 million

Market growth rate (per annum) : 6%

MERIL’s turn over in (probable) : Tk. 22.5 million

MERIL’s share in : 2%

Expected market size in Tk. 800 million

MERIL’s expected turnover in Tk. 38.9 million

MERIL’s expected Market Share in 3.21%

A comparative analysis of the major competitors market share (Source: Container

Supplier & estimated) is given below:

Competitor Market Share in 2007

Parachute 41.00%

Jui 23.00%

Lalbag 19.00%

Keya 3.00%

MERIL 2.00%

Others* 12.00%

• Other includes Henolux, Jasmine, Tibet, and Dabur etc.


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Market Situation MERIL Cocoanut Hair Oil expected market share in the year 2008 is 3.12%. It is

expected to increase sales over the next few years because the market is

expanding. The primary buyers are lower middle class people, aged 15 to 50, who

are conscious about their hair. Besides the branded Hair Oil, there is much non-

branded Hair Oil available in the market. Consumers also want to buy 100% pure

Hair Oil produced by a name they can trust. For this they seek help form different

sources like different media, relatives, friends and other sources so that they can

take decision in buying right product.

2.3 ANALYSIS OF COMPETITION

COMPETITION Current Market of Hair Oil is Cocoanut based and it is very competitive. Few

numbers of local and foreign companies are operating in this market. Besides those

companies, many new companies are also to enter into the market. Among those

companies only a few are holding the majority of the market share.

Major players are also trying to expand their product range in this market to tab

different market segment by introducing

1. Normal Cocoanut Hair Oil in plastic container

2. Perfumed Hair Oil and Hair tonic

3. Hurbal Cocoanut Hair Oil


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2.4 COMPETITIVE PROMOTIONAL MEDIAS

A brief picture of competitors’ activity in last year is given below:

Brand

Promo

Campaign

Operating

Media

Appeal Trade

Promotion Consumer Promo

SWAN/Gandharaj

TV, Magazine,

News Papers,

Radio & POP

A Family brand Bonus

& Commission

Nil

MERIL

TV, News

Papers, Radio

& POP

Non Sticky Product Bonus

and gift

400ml+free

bowl/Extra 10% Free

200ml+free

comb/Extra 10%

Free

Jui

TV, Magazine,

News Papers,

Radio & POP

More light &

purified and

Tochopherol

enriched

Product Bonus

and gift &

Commission

Nil

Parachute

TV, Magazine,

News Papers,

Radio & POP

Good

Cocoanut Oil

and 100% pure

Product Bonus,

Commission

and gift

200 ml

Tk. 2 off

400 ml

Tk. 4 off

Keya

TV, Magazine,

News Papers,

Radio & POP

Bright long

black hair

Product Bonus

gift and

Commission

Nil


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2.5 COMPETITIVE PRICING:

400 ML

VARIABLE ME

RIL JUI AROMATIC KEYA LALBAGH Parachute

MRP 70 70 70 65 65 75

TP 66 66 66 62 60 70

RETAILER’S

MARGIN 4 4 4 3 5 5

200 ML

VARIABLE MERIL

JUI AROMATIC KEYA LALBAGH Parachute

MRP 40 40 40 38 38 42

TP 37.5 37.5 37.5 35 35 40

RETAILER’S

MARGIN 2.5 2.5 2.5 3 3 2

Promotional Strategy Cocoanut Hair Oil market in Bangladesh is highly promotion based. All the major

competitors are incurring huge expenditure on promotion in both press and

electronic media. In order to penetrate this market we will spend a considerable

amount of money in both the media. The year wise portability investment status of

MERIL Cocoanut Hair Oil can be depicted in the following manner:


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Year Status

2005 Profitability

2006 Market disaster due to Local purchase.

2007 Profitability (projected)

2008 Profitability

2.6 Distribution and Distributors profile of Different Companies:

PARTICULARS MERIL SQUARE KALLOL

DISTRIBUTION

Distribution

Pattern

To collect the

order by the own

Sales -

Representative.

To collect the

orders by the own

Sales -

Representative.

To collect the order by

the own Sales -

Representative.

No. Of Distributor 149 75 -

Role of Distributor

To execute the

orders collected by

Sales -

Representatives.

To store the goods

To execute the

Orders collected by

Sales -

Representatives.

To store the goods

To execute the

Orders collected by

Sales -

Representatives.

To store the goods

Distributor’s

Commission 4 % 4% 3.5%

Distributor’s

Incentives None

Quarterly incentive

of cash / kind None


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C. SWOT ANALYSIS OF MERIL COCOANUT HAIR OIL

3.1 Strength of the Product

• Non-sticky

• Acid value is between 0.5 to 0.9 %, which is BSTI standard.

• Easy opener.

• Adorable Cocoanut fragrance.

3.2 Weakness of the Product

• This product is a late entrant in the market.

• Insufficient brand establishment and brand popularity.

• Low promotional budget.

3.3 Opportunity in the Market

• Immense market size.

• 31% market is occupied by loose/unbranded Hair Oil.

• Introducing smaller size and lower priced Hair Oil to cater for the needs of all

range of customers can extend product range.

• Opportunity to increase markets coverage and retail penetration.

3.4 Threat

• New entrants to come into the market.

• Extensive promotion and campaign by the competitions, specially Parachute with

local and lot of spillover from satellite channels.

• Well-built brand image of the competitions.

• Imported Hair Oil like Vatika Amla and others to take potential market share.


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D. OBJECTIVES

4.1 Marketing Objective

� To increase sales volume over 2007 by 39%

� To establish the MERIL Cocoanut Hair Oil in the market with 3.12 % shares

4.2 Financial Objective

� To achieve Net Sales Income (NSI) of Tk 38.57 million in 2008.

� To achieve Gross Margin of Tk. 7.51 million (19.48% of NSI) in 2008.

� To achieve EBIT of Tk. 1.1 million (2.85% of NSI) in 2008.

PROJECTED TURNOVER IN 2008:

– Net Sales Income (NSI) of Tk. 18.49 million.

– Gross margin Tk. 5.58 million (30.17% of NSI).

– EBT Tk. 0.91 million (4.92% of NSI).

4.3 Campaign Objective

� To create highs quality, positive and permanent brand image.

� To establish a brand personality as smart, friendly, reliable and trustworthy.

� To create far-reaching awareness among the consumers.

� To get the maximum demand from the consumers.

� Our campaign will also focus on the quality and adorable fragrance of the

product.

� Key points of the campaign are as follows. � MERIL Cocoanut Hair Oil is a quality product.

� Objective is to inspire consumers to trial purchase our new better-scented oil.


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E. MARKETING STRATEGY Our marketing strategies are primarily aimed at increasing market share and

establish the brand more dynamically. To implement the strategy we considered a

unique product strategy and an extensive promotional strategy. Proper packaging,

positioning, pricing and distribution strategy will also assist us to execute our

strategy.

5.1 Advertising and Promotion

Our advertising and promotions will pivot around five key strategies: TV

Advertisement, Radio Advertisement, out door advertisement, press advertising,

consumer offers.

TV Advertisement

Television is the most effective to create brand assurance. All the premium brands of

Cocoanut Hair Oil are presently focusing through electronic media campaign like

BTV. BTV is the most popular TV Channel in Bangladesh. So, it is obvious for us to

choose the BTV as the prime options according to the budget and the promotional

expenditure available for the quarter, we will prepare our media planning. Our media

planning will also include the selection of right program, at the right time for the right

group of viewers.

Because hair oil is a woman oriented product, based on the TV guide we have

planned to book our schedule before or middle of the program like BENGALI

DRAMA and SPECIAL MAGAZINE program etc to attract the woman viewers. We

will put considerable effort into preparing and disseminating a regular flow of TV

commercials. These will be based on stories about the key features and benefits of

our product. We think these two channels will serve our purpose to the maximum.


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Radio Advertisement

A huge number of our targeted consumers are rural based where radio coverage

and listeners are large in number. Some of the special sponsored programs will be

developed focusing the stories of our brand.

Trade Promotion

A general phenomenon of the competitor activity is trade promotion. So to ensure

the width and depth of our products’ stock and also occupy more space in the retail

outlets all over the country, we should adopt some trade promotion.

Consumer Promotion

It is important to increase instant volume and make the consumer loyal to the

product. Our running consumer promotion is as following 400ml+free bowl,

200ml+free comb. After that we have some exclusive consumer promotion plan like

Extra 10% free, 5 Tk. off with 400 ml & 3 Tk. off with 200 ml etc.

Outdoor Advertisement

We plan to have an exciting, informative, and actively managed outdoor

advertisement. There will be wall painting all around the country.

Press Advertising

We will undertake a considerable amount (based on promotional expenditure) of

press advertising in order to advertise our special promotion like consumer offer and

to enhance our brand image activity. More often our targeted potential consumers go

through daily newspapers; the more likely they are inspired to our brand when they

have a need for our type of free offer.


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5.2 Sales and Marketing

Excellent selling skills are vital in our type of marketing. Therefore, everyone will be a

fully trained in sale. Additionally, every quarter we will try to “monitor” all the

problematic areas by observing half-a-day’s selling activity of the concerned sales

forces and giving feedback on strengths and weaknesses in skills.

We prefer to purchase retail store audit report, which would be the key to our

strategic advantage in having superior data on market share and prospects.

SALES BY NGO

This idea is considered to use the strong network and potential access of the NGO’s

workers throughout the rural areas. We plan to sell our product to the NGO’s (if

possible through BRAC) at a discount price (negotiable) that they will sell at rural

areas especially door to door at a reasonable price (negotiable) and would be

prohibited from selling to the retailers. Primarily, we want to take some selective

areas under this scheme to evaluate the feasibility of the program.

This will encourage the non-branded hair oil users to use MERIL Coconut Hair Oil.

This idea will help us to penetrate into rural markets at ease and will facilitate a good

number of sales in those areas. Furthermore, NGO’s will also assist us to reach the

rural areas to the maximum. Our planning for Audio-Video Mobile Unit will furnish

sufficient support in this regard through their magnificent campaign in those areas.

5.3 TARGET MARKET AND CONSUMER PROFILE OF HAIR OIL

Target consumers of MERIL Cocoanut Hair Oil are actually women. They take

decision to buy it. Women of Bangladesh are very conscious about long hair. For this

reason they search the best product made by renowned company.


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TARGET MARKET:

Primary

Age : 12-50 years

Gender : Female

Family Life Cycle : Unmarried, Married

Occupation : Student, Housewife, and Service

Social Class : Lower and Middle income group

Monthly H\H income : Tk 5,000-20,000

Number of household : 5.07 million

Number of female member : 13.12million

Geographical Location : Rural, Semi-Urban, and Urban

Life Style : They used it for long and beautiful hair.

Secondary

Age : 18-55 years

Gender : Man

Family Life Cycle : Unmarried, Married

Occupation : Student, Service Holder

Social Class : Lower and Middle income group

`Monthly H\H income : Tk5, 000-25,000

Geographical Location : Rural, Semi-Urban, Urban

Demographic Profile

Market : Bangladesh-Urban & Semi- urban

Age : 6+above

Number of female : 51.83 million

Gender : Female

Family life cycle : Unmarried, Married

Income : Tk 5,000-20,000

Occupation : Student, Housewife, Service etc.

Education : Primary and above


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Psychographic Profile

Social Class : Lower and middle

Life Style : conscious about hair. Search for better oil

and goes to outlets, exposed to newspaper,

radio and TV.

Behavioral Profile Occasion : Regular

Benefits : Keep Hair healthy and attractive.

User status : Potential

Usage rate : Slow

Readiness stage : Aware and informed

Purchase Habit

� Once or Two times a month

� Consumers purchase it as per his/her requirement.

5.4 PRODUCT STRATEGY

Our product strategy includes development in product and also in packaging.

PRODUCT DEVELOPMENT

To increase the fragrance of oil and to make it more scented with pure Cocoanut Oil

we prepare to invent changes in the formulations. Previously, our formulation

process included 2:1 as RBD and DP ratio. This process generated a little

cocoanut’s scent in the oil. This year we maintained this ratio. Final result of this ratio

is satisfactory as well as acceptable. This ratio leads to an increase in fragrance,

which is quite satisfactory. This does not affect the acid value and it also gives us

suitable gross margin.


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PACKAGE DEVELOPMENT Under this development we are going to introduce MERIL Cocoanut Hair Oil in

HDPE container with sticker printed design. This will be an additional line of MERIL

Cocoanut Hair Oil. We will inspire consumers to trial purchase HDPE Container. We

will sell newly more Cocoanut scented Cocoanut Hair Oil in this container as well as

in the tin container so that they can perceive the new impression of MERIL Cocoanut

Hair Oil. We have some Idea to make it Easy usable in the winter. For this reason we

planned about plastic jar Container also. We also Change the Image of the

Cocoanut, The Color and also the text of the tin container to make it more lucrative.

A brief picture of Cocoanut Hair Oil in plastic (HDPE) bottle of competitors is given below:

(In Taka)

Name of Company

Brand Name

SKU TP MRP Remarks

400ml 60.00 65.00 Lalbag Chemical

Co. SWAN

200ml 35.00 38.00 Shrink label

400ml 66.00 70.00 Square Toiletries Jui

200ml 37.50 40.00 Screen print

400ml 66.00 70.00 Aromatic

Cosmetics Aromatic

200ml 36.00 40.00 Shrink label

500ml 84.00 90.00

400ml 70.00 75.00 Kallol

Distributions Parachute

200ml 40.00 42.00

Screen print

400ml 60.00 65.00 Luna Toiletries Jaba

200ml 35.50 38.00 Screen print

400 ml 65.00 70.00 MERIL Proposed MERIL

200 ml 37.50 40.00

Sticker Print


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5.5 PRICING STRATEGY

Competitive pricing scenario of MERIL Cocoanut Hair Oil expose that almost all the

competitive brands are parallel. SWAN Brand of Lalbag and Keya of Keya

Cosmetics are offered at lower price. However, we like to follow the normal market

practice in this regard.

5.6 PROMOTION STRATEGY

Our promotional strategy is for the most part aimed at informing consumers about

the changes we commenced in the brand and motivate to trial purchase. Followings

are the key strategy for a successful campaign.

NEW TVC DEVELOPMENT

We desire to develop a new TVC for the brand for declared the consumer offer. This

TVC will also clearly carryout the massage as the MERIL Cocoanut Hair Oil as

smart, friendly, reliable and trustworthy. Key features of the product as non-sticky,

pure coconut hair oil extracted from fresh and best Cocoanut oil will be highlighted.

CONSUMER OFFERS

The strategy for consumer offer is directed towards inspiring consumers for trail

purchase. We primarily prepare for two-phased consumer offer in the strategy.

These offers will include “Bowl free with each 400 ml MERIL cocoanut Hair Oil and

“One comb free with 200 ml of MERIL Cocoanut Hair Oil”. After that we have some

exclusive consumer promotion plan like Extra 10% free, 5 Tk. off for 400 ml & 3 Tk.

off for 200 ml etc. During the offer we expect to sell new blend Cocoanut hair Oil,

which will help us to pull off the better impression of the consumers about the brand.

However, this strategy will also help us to accelerate our sales and achieve our

target thereby.


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5.7 DISTRIBUTION STRATEGY

The target and potential consumers of Cocoanut Hair Oil live in all parts of the

country. So to reach our product to each and every consumer even at the rural level

we will ensure the following activities:

a) Make the product available to maximum possible outlets.

b) Deliver the product at the right time.

c) Increase the depth of stock of each outlet.

d) Smooth delivery of the product to all depots and distributors’ premises.

e) Proper merchandizing i.e., ensuring proper display of our product on the

shelf of retail outlet.

Furthermore, our sales strategy through NGO’s will ensure penetration to the rural

areas more successfully.


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DIRECT COVERAGE BY THE MERIL CONSUMER BRANDS FIELD FORCES

Total National Coverage: 70,295 Outlets

Outlet Category Wise

Territory A-Class B-Class C-Class Total

Dhaka 608 3,760 14,877 19,245

Mymensingh 155 920 1,347 2,422

Tangail 10 291 2,035 2,336

Barisal 115 808 2,917 3,840

Faridpur 79 550 1,992 2,621

Bogra 131 914 3,305 4,350

Rajshahi 41 286 1,037 1,364

Rangpur 111 779 2,811 3,701

Jessore 76 536 1,933 2,545

Khulna 131 914 3,305 4,350

Kushtia 104 727 2,629 3,460

Chittagong 105 971 2,651 10,432

Comilla 96 674 2,435 3,205

Maijdee 98 690 2,498 3,286

Sylhet 55 380 1,390 1,825

Sreemongal 39 276 998 1,313

Total 2,129 14,351 53,825 70,295


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Outlet Type Wise

Territory GR GS CH PP WS OTH Total

Dhaka 6,073 6,833 2,512 1,198 668 1,957 19,245

Mymensingh 697 716 285 467 201 56 2,422

Tangail 1,018 704 231 236 132 15 2,336

Barisal 1,286 1,218 471 381 151 331 3,840

Faridpur 878 832 322 260 103 226 2,621

Bogra 1,456 1,380 534 432 171 375 4,350

Rajshahi 457 433 167 135 54 118 1,364

Rangpur 1,239 1,174 454 368 146 319 3,701

Jessore 852 808 312 253 100 220 2,545

Khulna 1,456 1,380 534 432 171 375 4,350

Kushtia 1,158 1,098 425 344 136 299 3,460

Chittagong 3,742 2,673 1,198 1,520 355 944 10,432

Comilla 1,073 1,017 393 318 126 277 3,205

hMaijdee 1,100 1,043 403 326 129 285 3,286

Seylhet 611 579 224 189 72 156 1,825

Sreemongal 440 417 161 130 52 110 1,313

Total 23,536 22,304 8,626 6,990 2,759 6,063 70,295

The outlet monthly shelving planning in our distribution strategy for MERIL Cocoanut Hair Oil will be as follows:

Outlet Type B-class

Planned Coverage 755

Min. Order/Month 400 ml – 3 Pcs, 200 ml - 4pcs

Quantity Sold / Month 400 ml - 32,289 Pcs, 200 ml - 43,052 Pcs


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BUDGETS

Specific line budget items appear below:

Companies

Expenses

Qtr 1

Qtr 2

Qtr 3

Qtr 4

Year 1

Year 2

Year 3

Year 4

Year 5

$

Administration 18,000 18,000 18,000 18,000 80,000 200,000 300,000 400,000 450,000

Management 35,000 35,500 50,000 55,000 240,000 390,000 420,000 450,000 480,000

Training 50,000 30,000 70,000 150,000 150,000 150,000 150,000

Promotion 50,000 50,000 50,000 50,000 150,000 600,000 540,000 560,000 580,000

Break -even calculations indicate that the MERIL coconut hair oil will become

profitable after the sells volume exceeds 125000 early in the product’ second year.

Our break analysis of MERIL’s first PDA product assumes per unit wholesale

revenue of 6 taka per unit, and variable cost of 4 taka per unit, and estimated first

year cost of 18,000,00.Based on these assumptions, the break even calculation is:

18, 000, 00

(6-4) taka

=900,000 units


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CONCLUSION

MERIL is going to introduce coconut hair oil in a very competitive market. The oil

segment of the market is very competitive than the other segments, so to get good

profit from this segment in first few years MERIL will do a very good advertising

campaign. Peoples usually keep interest on a new product in the market and to get

profit from this MERIL will try to attract these peoples. MERIL will do a huge

marketing process to make coconut hair oil successful in the market and get profit

from this product as soon as possible. MERIL always stand for ceaseless afford and

they never stand still, slow down, stop thinking and compromise with the product

quality. They believe in using state of the art technology to cope with the ever

changing world. So MERIL will do what ever it needs to make hair oil successful in

both short and long run.

MERIL Product Planing

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Transcript of MERIL Product Planing