Sample Marketing Plan of (Mushroom Chips)

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THE MARKETING PLAN

OF
(Mushroom Chips)

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Marketing Management
Sample Marketing Plan of (Mushroom Chips)
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The New product Plan

Submitted To:

Hamid
Lecturer, marketing management
City University of science and information technology

Submitted By:

Subject: Marketing Management

Section: B

Group Members:

Syed Adeel Shah

ID# 4063

Zahid khan
ID# 4025

Saeed ullah
ID# 3995

Wasiq raza
ID# 4027

City University peshawer

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Student’s Declaration

We Syed Adeel Shah, Zahid Khan, Wasiq Raza, Saeed Ullah students of city
university Peshawar are declaring that this sample of marketing “The New Product
plan” has been prepared only for the fulfillment of one of the curse requirements of
the course Marketing Management. It has not been prepared for any other purpose.

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Acknowledgement
This study is the conclusion of the assignment by Marketing Management, course
instructor, Hamid, City University Peshawar, for the students to enhancement the
experience and knowledge gather from a particular field.

We are grateful to our course teacher Hamid, Lecturer of City University, for his
guidelines to this study.

All the group members were worked equally to fulfill the assignment works and did
all types of research activities for collecting the information related with our
assignment.

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INTRODUCTION

We are doing sample of marketing plan for mushroom. It is the new product for the
market in the name of mushroom chips before it no one can lunch.

Purpose

• To get a clear concept how to make the new product plan

• To acquire knowledge how to make marketing plane.

Limitations
1. We did not collect the current information related with our product.
2. We had to give lot of times to collect information about competitors, market
situation because enough information not available.

RESEARCH METHODOLOGY
Secondary:

• Internet: www.google.com, www.wekipidia.com, Source:

thedailystar.net
• Other: Collected information from marketing report, magazines,
running newspaper.

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Market Analysis
Situation Analysis
We know, the market means potential customers of a product or service.
Pakistan is a highly populated country. The birth rate is very high .As a result the
children rate is also very high.
We are not producing our product not only for children but also for teenagers, young
generation. So our total target market is very large. Market demands of market will
also increasing as much we can position in our customers mind.

Chips demand by age

500000

400000

300000

200000 Demand

100000

0
5 to12 12 to18 18 to 24 24 to
others

(All this figure are estimated depending on class and age to have an idea about
demand on chips on this variables)

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Target market:

1. Children 3. People Middle class and higher class

2. Young people 4.urban areas people

This is our target market. We want to target children as well as young people
of middle and higher class of people. We are not eliminating lower class people but
first we want to create demand for our product then we will try to reduce our product
price and serve to all class of people.

Market demographics
Geographic:
divisions and district town side areas such as Peshawar, Lahore, Islamabad,
Karachi etc.

Demographic:
Age-5-12, 12-18, 18-24, 24 to others and higher class, middle class of people.

Product related:
1.regular customers 3.nagetive customers
2. Irregular Customers
Behavior Factors
• User enjoy the food not only for health but as a teats enjoyment.
• User also spend money on food for different enjoyment of unique teats.
Market Need:
Quality:
That we are first assure in our product. It is highly reached by Protein-15.53%,
Fat-20%,Saturated fat-1.42%, Carbohidrated-2.45%, Sugar-2.40%, Energy-100gm,
Colastrol-0%, Sodiam-.64%, which is very much essential for specially kids and
young age people. Each and every process of the production is done by automatic
machine.
Customer service:
The customer want good service to build a strong customer relationship. That
has a loyal customer.

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Market growth:
The price of the soil meet is affordable in all classes of the society from lower
to middle and from middle to higher classes. There for the growth of the market is
going up. This is the one reason the other on is the change the teats of chips.

SWOT analysis
An important tool for auditing the overall strategic position of a
business and its environment. SWOT is an abbreviation for Strengths,
Weaknesses, Opportunities and Threats.

Strength:

• Without any touch of hand the product is made because of development of

technological skills.
• There are another strength of the company is distribution channels. Our
distribution channel is very strong; relation of the supplier and resellers is very
strong.
• The product quality is more high comparative to the other competitors,
because our main ingredients is Mushroom which is totally new flavor and
taste and also work against for the cancer.
• Because of our good relationship with supplier, reseller and for the good
transportation facility our sale will be definitely increases. Our value delivery
network is in strong position. We are having good relationships with our
suppliers for a longer period of time.

Weakness:
• Although the company is new, it has not established a brand or images in the
market place this is the weakness for the product popularity.
• Because of the new product and company importer skills are absence here
that’s why we can’t includes any internal facilities.
• For the first time the mushroom is exit in the market that’s why people can’t
properly reliable to the product quality.
• Financial problem is another weakness of the company like what will be the
price Cost and investment.

• Quality of the Mushroom is not up to mark

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Opportunities and threats are external factors.

For example, an opportunity could be a developing distribution channel such
as the Internet, or changing consumer lifestyles that potentially increase demand for a
company's products. A threat could be a new competitor in an important existing
market or a technological change that makes existing products potentially obsolete.
Opportunity:

• It’s an available product but of the new version of taste and quality create a
new change of the customer taste.
• For the technological changes and advances it’s easier to give any information
and promotional activities to know the product popularity to the people.

• If the government changes politics then it will be easy to access the product to
the market.

• Availability of the raw materials is increasing day by day which is help to

produce more products.

Threats:

• If government is increase the taxes and the political issues are not favor then it
will be the threats for the company.

• The product may not be accepted to the people then it will be the great threats
for the company.

• The product competitor rate is very high that’s why sometimes we are facing
many competing problem, which can be a threats of the company.

• Company establishment rules and regulation is strict that’s why sometimes to

take any easy decisions are create complicated situations.

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Competitors:

1.product: lays
Type Potato Chips
Owner Pepsico
Country United States
Introduced 1932
Frito-Lay
Wavy Lays
Related Brands K.C. Masterpiece
Lay's WOW chips
Lay's Stax
"Ingredients: Potatoes, Sunflower Oil, Salt
2. Product: Cheese Ball
Product Code: CB
Product Description
CHEESE BALL is an extruded product made from corn and rice and coated with
rich cheese powder. It is superb in taste and something to be enjoyed all the time.
Ingredients: Corn, Rice, Salt, Vegetable Oil, Cheese Powder & Seasoning.
Company Name: Meridian Foods Ltd.
Business Type: Manufacturer, Trading Company
Product/Services: Chips, Chocolate, Sauce
Customers: All person
Total Annual Sales
Below US$1 Million
Volume:
Export Percentage: 1% - 10%
Total Annual Purchase
Below US$1 Million
Volume:

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Product offering:
The Mushroom chips, including all the features described in the product review
section. The product is verified in two ways, first by the size 1) Kidz 2) Family and
second by the taste of the product 1) Tomato flavor 2) Potato flavor 3) Hot & Spicy
flavor.

Keys success:
Mushrooms are good sources nutrition and this is our main ingredients.

Marketing Strategy:
The key to the marketing strategy is focusing on the health, diet and satisfaction of
customer thought Geographic divisions and district town sides. Demographic Age-
5-12, 12-18, 18-24, 24 to others and higher class, middle class of people.

Mission:
“We want to be number one chips company in Pakistan and create strong
relationship with our supplier and ensure our customers’ health security by providing
more nutrition.”

Brand Name: mushroom chips

Product Name: Mushroom

Marketing Objectives:
1. We want to be no.1 Chips Company in Pakistan.
2. After one month, we are collecting our sales review and satisfaction level of
our customers.
3. Diversification in our product line.
4. We want to create social value for position in customers mind.

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Financial objectives:
1. Marinating a significant research and development budget.
2. Double profit will be earned within 3 years.
3. Increasing production level each month by 1 %
4. Investing more in Cultivation Of mushrooms.
Establish 3 Big factory for producing large amount of product
Target market:
1. Children 3. People Middle class and higher class
2. Young people 4.urban areas people

Positioning:
To children, young people, chips customers who are seeking for delicious
taste with nutrition .Mushroom chips contains mushroom that gives you taste with
good nutrition because it has the highest level of Protein-15.53%, Fat-20%, Saturated
fat-1.42%, Carbohidrated-2.45%, Sugar-2.40%, Energy-100gm, Colastrol-0%,
Sodiam-.64%
Strategies:

Marketing mix:
Marketing mix consist of four basic things which is known as “four Ps”:
product, price, place, promotion under the consideration of our product (Mushroom
Chips)
These four Ps are specified as

Product:
The Mushroom chips, including all the features described in the product
review section. The product is verified in two ways, first by the size 1) Kidz 2)
Family and second by the taste of the product 1) Tomato flavor 2) Potato flavor 3)
Hot & Spicy flavor.
Price:
“The mushroom chips” will be introduced at Rs.14 wholesale and RS.15
estimated retail price per unite of medium size and Rs.24 wholesale and Rs.25 retail
price per unite of family size product. We expect to lower the price of packets within
few months. Because of the first time at market the company would like to give some
discount to the retailers which will make them some profit. The company are also
giving some credit terms facilities to there wholesaler and retailers.

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Promotion:
The management of mushroom chips has budgeted Rs.1, 80,000.00 for there
advertising and promotion activities for per month. As a new product in the market it
needs huge amount of advertising and promotion activities to tell the consumer about
the product and its features. For that reason management decide to go for more fancy
advertise in Television, Radio, Billboards, and Web site and in News paper.

The policy makers has decide to offer different types of popular cartoon and
super hero characters stickers and tutus with per packet of Mushroom chips for
Childs and purchase intensive to the wholesaler and retail for sell promotion. By
organizing Charity concert, Open concert, Sports tournament, Reality shows etc;
mushroom chips would like to build a good relation whit people in near future.
Place:
At the very beginning Mushroom Chips will distribute to the town area of 6
divisions across the country with companies own transport system. By considering
the future demand it has planned to distribute in the whole country area.
For unexpected future demand it always kept sufficient amount of inventories in its
own warehouse.

Financials

Sales forecast:
In this section we make expected budget of sales and cost monthly and yearly.
We count break even point unit sales. We also present our expected sales revenue and
profit. Our product per unit cost is 13.5 Rs. And wholesale price is 14 Rs. And
Maximum retail price is 15 Rs.
Expected Sales Budget
Division Monthly Yearly
Unit Cartoon Unit Cartoon
Peshawar 5,00,000 5,000 60,00,000 60,000
Islamabad 2,00,000 2,000 24,00,000 24,000
Lahore 70,000 700 8,40,000 8,400
Karachi 80,000 800 9,60,000 9,600
Queta 50,000 500 6,00,000 6,000
Gilgit 60,000 600 7,20,000 7,200

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Total 9,60,000 1,15,20,000

Expected Cost Budget

Type of Cost Monthly(TK) Yearly(Tk)

Variable 1,10,40,000 13,24,80,000
Fixed 20,00,000 2,40,00,000
Total 1,30,40,000 15,64,80,000

Per Unit Cost

Per unit Cost = (Fixed cost + Variable cost)

Unit Production

(2, 40, 00,000 + 13, 24, and 80,000)

1, 15, 20,000
= 13.5 Rs.
Break-even Unit Sales (Yearly)
Per Unit Sales 14 Rs.

Per Unit Variable Cost 11.5RS

Per Unit Contribution 2.5Rs.

Fixed expense
Now, B E S in Unit =
Per Unit Contribution

2, 40, 00,000
=
2.5

= 96, 00,000 unit.

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Expected Revenue (Yearly)

Sales (1, 15, 20,000* 14) 16, 12, 80,000

Variable Cost 13, 24, 80,000

Revenue 2, 88, 00,000

Expected Profit (Yearly)

Revenue 2, 88, 00,000

(-) Fixed expense 2, 40, 00,000

Profit 48, 00,000

Controls:

The controlling process:

In the control Process, we will compare our total result with the expected
things that we are mentioned. If there is mistake s then take necessary steps to control
the overall process.
There will be two way of controlling. One is operational control and second one is
strategic control.

Operational control:
If any changes occurred to our production process, then it will be done by
operational control.

Strategic control:
If any changes occurred into strategic plan than it will be done by strategic
control.

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Market Audit:
We will hire a market audit or researcher to evaluate our marketing plan and
give advices how to improve in operational control, strategic plan, others plans
Implementation:
Our company “Mushroom chips’’ will be introduced in May 2010. Following are
summaries of the action programs we will during the first three months to achieve our
stated objective.
April:
We will initiate a Rs 300000 trade sales promotion campaigns to educate
retailers and generate excitement for the product launch in May. We will exhibit
electronic trade show, provide mini pack sample to the selected customer. Our
promotion manager is responsible for this work
May:
We will start an integrated print, radio and media advertisement targeting
consumers. This advertisement will show our products differentiation from other
competitor. Advertisements also show our products feature to the ultimate customer.
Our Advertisement manager is responsible for those works.
June:
As the multimedia campaigns continue, we will add consumer’s sales
promotion techniques such as giving scratch card and lottery etc. Our sales manager
is responsible for this type of sales increasing techniques.

Marketing Organization
Chief marketing officer holds overall responsibility of all the companies
marketing activities. Company has also three top level manager for advertisement
department , sales department and promotion department .And under sales manager
company has six divisional sales manager .They are responsible for divisional sales
increasing.

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Marketing Management