MARKETING PLAN

SUBMITTED BY-Kunal Wardhan 2012 MBA 43

AWASH PAPER MILL PVT.LTD

1)EXECUTIVE SUMMARY
The Awash paper mill (hypothetical) is one of the largest paper mill in north India the mill located in haridwar district of Uttaranchal( enriched natural resources) that why the mill Does not face any problem related to raw material availability. A Company produces the reels of different type of paper. The company mainly does b2b business. The main customer of the mill are those organization who use the product of the mill either for further processing or use it as a raw material in there process. The core competence of the mill is high quality and production capability. After the entering of new competitor in the market the total demand of product(Awash mill) decreased that why The company wants to enter in the new market segment with new product (paper ream A4) for this company setup a new cutting machine and also sign the contract with two cutting vendor. The company has enough production capability to match the new required production level. The company generated enough financial resources by issue more paid capital in the market. The company wants to become leading supplier of the paper copier in north India and develop its retail chain in whole India. The only problem arises is lack of electric power (for cutter of the paper) so if company self produce the electricity through boilers or generator required more resources and increase the production cost.

2)Situation analysis:-----Global Paper Industry maintained its steady growth, with Asian markets continuing to grow faster than the rest of world. Indian Paper Industry also witnessed rapid increase in the demand on the back of sustained economic growth in the country and is now engaged in capacity expansion to meet projected demand. Global prices of most paper products and pulp had remained depressed for several years in the past, prompting significant capacity reductions in developed countries. The global demand supply imbalance having being corrected prices in the international markets have been corrected, prices in the international markets have off late, begun rising particularly for pulp and waste paper. In tandem with global markets realization improved in the domestic market too. Asian paper market is estimated at around 32% of the total global consumption, its principal segments being China, Japan, India, Malaysia, Singapore and Thailand. The opportunity for paper manufactures. Across the Asian landmass, excluding Japan, annual demand increase ranged of the world. In addition, due to lower cost of fibrous raw materials massive fresh pulp capacities are coming on stream in Latin America. Asia and Latin America have thus become engines of growth for the Global Paper Industry.

PAPER CONSUMPTION COUNTRY WISE PAPER CONSUMPTION-

COUNTRY

PAPER CONSUMPTION KG. PER CAPITA

USA JAPAN SOUTH EAST-ASIA CHINA

400COUNTRIES OTHER

334 302 40 30 56 07

Paper Consumption

350

INDIA 300
250 200 150 100 50 0

USA

Japan

SE-Asia

China

Other

India

Country

REGION WISE PAPER CONSUMPTION REGION NORTH AMERICA EUROPE ASIA OTHERS PAPER CONSUMPTION (%) 31 28 32 09

Paper Consumption (%)

100 90 80 70 60 50 40 30 20 10 0 NORTH AMERICA EUROPE ASIA OTHERS

Countries

INDIAN PAPER INDUSTRY:-

1. Paper demand estimated at 61.5 lakhs tons (excluding news paper) 2. Growth rate is tandem with GDP growth. 3. IPMA member units constitute. Demand break up as under:SOURCE PRODUCTION IMPORT EXPORT QUANTITY (LAKH TONS) 60.5 4.0 3.0

70 60 50 40 30 20 10 0 Production Exports Imports

E

SEGMENT WISE PAPER DEMAND IS AS UNDER PRINTING AND WRITING CREAM WOVE MAP LITHO COPIER COATED OTHER INDUSTRIAL = 49% KRAFT DUPLEX/GREY BOARD POSTER ABSORBENT-KRAFT COATED BASE MG COVER = 22% = 17% = 05% = 03% = 01% = 01% = 48% = 25% = 12% = 04% = 05% = 02%

The owner of the Awash mill analyzed the situation using the 4c framework .where 4c stand for customer competitor, company and context Customer: the awash is now enter in the market with new product so they develop their distributer to develop its retail chain across all over India .The mill already well known the market of north India so they plan to target the north India first. The mill targets the government and private company requirement where the quality is more important as compare to the price of the paper ream. Another market segment is higher class people who always like to buy the quality product. They plan to get there 60% sell from retail chain. Competitor: The awash know that there are some established brands in this field like bits, copier, camel, century and the several regional manufacturers. The main players in the market like camel and century are also want to increase their retail chain and try to enhance their production capacity. After the detailed analysis of the market Awash found that its major advantage is provide good quality product and on time delivery of the products. The Awash also know that some big player are also try to create some hurdles for enter in the market like low down their price and get the contract from organization by showing low price of their product. Company: The Awash now follow the product driven stage by launch the new product. The total investment required for this is approximately 60 cored (for cutter and develop the new setup). Initially the company plan to produce 50 ton (paper ream) every day of different GSM. However the capacity utilization is only 50% but the company plan to utilized it 80% production capacity in next year.

Context : According to the Indian paper board the annual paper demand in India is 62 lack ton with annual increment of 5% .and the annual demand of printing paper is 30 lack ton approximately. Due to use of more digital medium the demand of paper is not increase as like the population growth. The export of paper from India is very less so there is the better chance to get better price from other country market. The demand of paper increased in April due to the starting of financial year.

3) Market Opportunity:
According to the report of CIRS-INFAC the global demand for paper and paper board is expected to grow at a compounded annual growth rate of 5.8% whereas the capacity is expected to increase by 2.1% only, translating into better operating ratios across the world. Within Asia, India is expected to report one of the sharpest demand growth. It is estimated that demand in Indian paper industry would continue to grow at a rate slightly faster than the economy growth rate and is poised to cross 10 million MT per annum. According to the International Finance Corporation (IFC) per capita consumption in the country is estimated at 7 kilograms per year one of the lowest in the world and far below the global average of 56 kilogram. With the expected increase in the per capita consumption of paper is expected. Although a number of players have announced capital expenditure plans-aggregating to Rs10,300 crores this is expected to add only about 1.45 million tones per annum to production capacity.

As above mention that India Is far below in per capita consumption and annual growth rate is 5.8% so it is better chance for awash to get some part of the market assuming in starting awash get the 10% market of India the demand of the product is 3.2 lack ton per annum ( annual demand of printing paper is 32 lack ton). The key success actor in the paper industry is provide right quality right quantity at right time and access the raw material at loweast price.

4 Objectives:
1.Achieve sale of 3.2 lack ton in first year with 20% increment in subsequent year. Assumption firstly plant will run with 50% production capacity 2. Achieve the breakeven point in 6 month. Break even analysis Revenue per ton =200000 Variable cost per ton=100000 Contribution=100000 Fixed cost =1600 cored Break even value= 1600 cored/100000= 1.6 lack ton So the awash would reach breakeven point after 6month 3.achive internal rate of return of about 20% 4. get the contract from government organization. 5. create the image in the mind of customer is quality means awash ream. 6. achieve the compound growth of 25%

5.Marketing Strategy:
Develop as a expert in the field. Hired the people for provide the information to small retailers about the product. The company sends the samples and the price list to all the government department and private organization. The company also asked the different requirement from the various customer for customized the product in such a way which fulfill the maximum customer need. Promote the product through print and digital media. The main strategy is launch the product initially low price so the people easily attract and mass customized the product, maintain the customer intimacy, operational efficiency

6.Target Markets:
Awash basically target those people who give the first preference to the quality. About 30% of the production is highly quality product for fulfill the need of higher society people rest 70% is also the good quality product with low price.

7.Positioning :
Awash will position itself as a value for money brand, good for writing, friendly for printer, less consume the ink , totally recyclable , trust worthy, no use of any type of harmful chemical in product manufacturing, donate some part of the profit in social work. The awash also claim that they only cut self cultivated tree. Its appeal will be never compromise with quality

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8. Marketing Mix:
Product: beginning with two type of paper ream a) 500 sheet in each ream, 120 G.S.M( gram per square meter) used for many purpose like photo printing, document printing, special document printing, available in small(A4) and large size, weight of ream is 2.5 kg, name of the product is Awash premium b) 500 sheet in each ream, 100 G.S.M used for only document printing, writing paper, available in both size , weight of ream is 2.1 kg, name of the product is Awash regular Price: price of the Awash premium or awash regular is 300 and 250 respectively. The company give the 10% discount on the sale of 20 ton or above. The price also varied with region to region according to the market situation. The distributer or retailer mutually decides the maximum price of the product under the guideline of the company. Place: initially awash supply the product to the selected part of north India after the two year they plan to launch the product in rest of the India. The awash also plan to open one retail store in haridwar for direct sale of the product the people live in haridwar can also do the telephonic shopping if the total cost of shopping above 1000. Product also available at selected outlet through wholesale channel Promotion; The basic promotion route will be point of purchase, attractive sample with complete detail give to the each target organization or customer. Open the distribution center in every big city of north India. The major thrust will be efficiency in supply chain or weekly get the requirement from the major buyers. and multiple contact with distributer

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9.Review and Control;

Awash will have simple, decisional friendly, weekly monthly and annual report focus on 1. Revenue and sales 2. Customer need or feedback 3. Improvement in supply chain or product 4. Expenses 5. Market logo 6. Repeat purchase rate, profile of the new customer, product differentiation The awash plan will have a detailed deadline, budget, managerial responsibility to ignore any type of non-conformities

10.Contegenncy Control
Awash is aware of the supplier market uncertainty strong supplier influence power felt in these industry and takes a precautionary measure right from the beginning of the business operation. The step taken by awash is having their own plant cultivation area so that they wont need to totally rely on the market. Awash is also responsive to the future market competition and strong buyer influence right from the start, they have their own market intelligence department involved in quality research and environmental scanning. bandhan , a premium customer retention plan has been design to

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convert buyers into loyal customer and simultaneously Jodi a buyer referral plan has been design to include customers as co producer in the value chain proposition system

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