Table of Contents

Executive Summary 1. Introduction..........................................................................................................2 1.1 Origin................................................................................................................2 1.2 Objectives.........................................................................................................2 1.3 Methodology......................................................................................................3 1.4 Scope................................................................................................................3 1.5 Limitations.........................................................................................................3 2. Overview..............................................................................................................4 2.1 Industry Background.........................................................................................4 2.2 Company Summary............................................................................................6 2.3 Mission Statement.............................................................................................7 2.4 Vision................................................................................................................7 2.5 Product Overview..............................................................................................7 2.6 Competitive edge..............................................................................................8 2.7 Strategic Alliance..............................................................................................8 2.8 Ispahani Foods Limited (IFL) Organogram (Production).....................................9 2.9 Ispahani Foods Limited (IFL) Organogram (Marketing)....................................10 3. Current Market Scenario....................................................................................11 3.1 Analysis of Consumer survey..........................................................................11 3.2 Marketing Trends............................................................................................15 4. 5. Competitor Review.............................................................................................17 Market Analysis..................................................................................................19 5.1 SWOT Analysis................................................................................................19 5.2 Comparison of SWOT of Ispahani Toast with competitor products:.................22 5.3 GE Model.........................................................................................................24 5.4 ADL MATRIX.....................................................................................................26 5.5 BRAND PERSONALITY DIMENSIONS.................................................................28 6. Market Segmentation and Targeting:.................................................................30 6.1 Bases for market segmentation and targeting of Ispahani Toast:...................30 6.2 Demographic Segmentation:.....................................................................31 Page | 1

6.3 Behavioral Segmentation:...............................................................................32 6.4 Psychographic Segmentation:.........................................................................32 7. 8. Positioning..........................................................................................................33 Marketing Strategy.............................................................................................34 8.1 Product............................................................................................................34 8.2 Pricing.............................................................................................................36 8.3 Place................................................................................................................37 8.4 Promotion........................................................................................................38 9. Promotional Budget:...........................................................................................45 Timeline....................................................................................................................50 Conclusion................................................................................................................50

1. ConclusionIntroduction
1.1 Origin This report on Marketing Plan on Ispahani Toast has been prepared for Mr. Khaled Mahmud, as a partial requirement for the course Marketing Management. This report focuses on the current strategies as well as the recommended strategies to increase the market share of Ispahani Toast.

1.2 Objectives Broad Objective To device promotional strategic course of action for Ispahani Toast for higher market growth and stronger competitive position. Specific Objectives To analyze the overall market scenario in terms of size, demographic, characteristics, location etc. To analyze the competition in terms of their strength and weakness in similar product. To identify target customer preference
Page | 2

1.3 Methodology The sources of information were interviews of the employees directly related to the marketing of the products of the respective companies, Regional surveys taken from various areas A consumer survey of a randomly selected group of people. Secondary sources in the Internet, Newspapers, magazines etc

The research conducted in this report is of descriptive nature. Secondary data analysis was selected as the basic research method. The interviews were based on a standard questionnaire and the interviewees were asked for their own opinions as well as the factual information of their respective companies. Finally, the consumer survey was based on a questionnaire which has been attached with the report. After gathering the data from these surveys, analysis was done based on them to get the present situation for toast biscuit and the insights for the future provided. And using those guidelines, a few marketing strategies were formulated. 1.4 Scope For our report, we only considered the large scale manufactures as competitors in the market. There are many small scale bakeries who produce toast biscuits within a localized area in our country. There were primarily ignored for our market analysis. 1.5 Limitations The major limitation in this report was primarily the reluctance of relevant sources to release confidential information. Time and Budget did not allow an extensive research No archives or databases in the sector The secondary data could not be verified The analysis and future projections presented here may vary with opinions of experts in this field of study
Page | 2

 The geographical scope of the report was limited

2. Overview
2.1 Industry Background Toast refers to any bread that has browned through exposure to radiant heat. The word toast in fact means comes from the latin word tostum, meaning scorch or burn. Toast essentially means burnt bread. The first idea of toast came from the ancient Egyptians, around 6000 years ago. They realized that if the bread is allowed to sit out in Egypts warm climate it would rise, and when baked, it would retain its risen shape. There were a variety of methods for making toast in pre-electric times, from using the hot stones, to putting bread on toasting forks and holding it over a fire, to employing hinged bread holders that could be attached to the side of a fireplace and swung into the flame. The invention of electricity led to the invention of the modern toaster. It allows the breads to be toasted for a prescribed number of minutes and the toasts simply pop-up once it is completed. Although the development of modern toasters meant that toasts were easily available in homes anywhere in the world, the subcontinent region still stuck on to the age-old process of baking breads on a hot furnace to create the perfect golden colored toasts. Many businesses sprung up to supply these toast biscuits to the general people, be it office-goers, homemakers or school going children.

Page | 1

Toast is an important component of many breakfasts, and is also important in some traditional bland specially diets for people with gastrointestinal problems such as diarrhea. Toast is also commonly eaten with butter or margarine spread over it, and may be served with preserves, spreads, or other toppings in addition to or instead of butter. In Bangladesh, many non-branded brands developed since independence and provided varieties of toast biscuits to the consumers. These toast biscuits came in transparent and midsized packages, square-shaped and remained really popular to the working class. Many business companies, noticing the potential of such a product if branded in the correct manner, came up with their own exclusive brands to try to establish their own market share within the industry. Olympia Bakery was arguably the first branded toast product that was introduced in the market. Since then, other brands such as Pran, Fu-wang, Haque, BD Foods, Kishwan etc. also introduced their own brands. With the correct marketing strategy as well as an established brand value amongst the general consumers, Pran Toast soon became the market leader amongst the branded toast products. Commanding a market share of more than 30%, Pran also introduced different varieties of toast other than the simple plain toast. This includes butter toast, sweet toast, garlic toast etc. Although the toast industry in Bangladesh has a target audience with a wide age-group and a large demographic, no significant development has taken place in changing the age-old production process of manual baking in hot baking ovens. With the advent of wide variety of biscuits and other products, toast biscuit industry needs a significant change to still hold on to the customer base. Nowadays, many people from the middle class and upper middle class prefers other form of biscuits and snacks instead of toast biscuits. Ispahani Toast might well be the answer to all these problems. With alternate marketing strategies and modernized production process, the perception of toast biscuits can be changed back to be the best item in breakfast and in evening snacks.

2.2 Company Summary

Page | 1

M.M. Ispahani Limited was established in 1934 in India by the Ispahani Family. In 1947, the corporate head office was moved to Chittagong where it still stands today. Now, the Ispahani Group remains pioneer in many fields and remains one of the most successful and respected business houses in Bangladesh. It has their own business interest in tea, cotton and textiles, jute, real estate, foods, poultry, telecommunication etc. Ispahani Foods Limited (IFL) is a subsidiary of M.M. Ispahani Ltd. IFL is a private limited company this was established in 1999. Currently, it covers a wide and varied range of agricultural and food-related businesses. IFL is based at Ispahani Foods Complex, Konabari, Gazipur, Dhaka. One of IFL's aims is to supply food items such as potato snacks and chanachur. The list of products available in the market includes Puresnax Potato Chips, Puresnax Potato Crackers, Puresnax Jhal Chanachur and different range of biscuits such as Ispahani Energy, Pineapple and Chocolate Biscuits. Equipped with the most modern machinery, the goods are hygienically weighed, packaged and sealed in a fully automated process. The entire procedure is carefully supervised by a team of experts. In the factory, it is processed into final products and packed untouched by hand. Now, Ispahani Foods Limited (IFL) is further expanding their business by targeting the toast industry of Bangladesh. For this initiative, IFL has a separate warehouse in their factory at Dewoliabari, Konabari, Gazipur. With a few bakery machines and a significant number of personnel, the production capacity for Ispahani Toast is limited. However, IFL is in the process of acquiring more machinery to expand the business and significantly increase their production capacity. IFL also has the unique advantage of a nationwide strong distribution channel through the tea internal division. It also procures some of the basic raw materials from the Ispahani Tea Division, as well as other sister concerns such as Ispahani Agro Limited.

2.3 Mission Statement

Page | 2

Highest quality food at affordable prices.

2.4 Vision Ispahani Foods Limited (IFL) has a defined vision that is synonymous with the Ispahani Group Of Industries. The defined vision goes a long way in explaining what they are and how to pursue their business. The missions of IFL are: Providing better services to the people Affordable Prices Maximizing profit through increasing total sales volume.

2.5 Product Overview Ispahani Foods Limited has begun operations in the toast biscuit market by launching two varieties of their toast biscuit brand, Premium Plain toast and Sweet toast. Currently these are the only two varieties they produce. They currently offer packets of 200g and 350g. The Premium Plain toast, which is of Premium quality, is the most popular variety of toast biscuits in the market and Ispahani Foods Limited expects the Premium Plain Toast brand to capture a healthy portion of market share in the near future. The sweet toast has recently become a common variety in the toast biscuit market with Pran and BD Foods making profits through this variety. Ispahani Foods Limited believes that their superior quality of ingredients will help differentiate their product in this segment. In the future, Ispahani Foods Limited has plans to extending their toast biscuit product line. But these plans are not specific, and no decisions have been made about what sorts of varieties they might produce.

Page | 2

2.6 Competitive edge Ispahani Toast has certain competitive edges over their competitors. Ispahani Foods Limited, being an SBU of the Ispahani group, procures many ingredients from its sister concerns like Ispahani Agro Limited. This ensures the best quality at minimum prices. This in turn helps them produce a product of better taste and quality at competitive prices. Their products also contain many herbal and low fat ingredients, which is very uncommon in this market. None of the major competitors have yet introduced herbal substitutes for many of the unhealthy ingredients used in toast biscuit manufacturing like Monosodium glutamate or tasting salt. Palm oil is also used instead of butter oil, lowering the fat content of the product. This gives them a distinct edge when marketing their product, as it effects the decision making of health conscious customers.

2.7 Strategic Alliance Strategic alliances are generally viewed as mechanisms for producing a more powerful and effective mode for competing in a globalized world. More specifically, the most common reasons for forming strategic alliances and achieve competitive advantages are as follows:
Setting new standards: Entering into an alliance can be the best way to establish

standards of technology in the sector. In the case for Ispahani Toast, the alliances with Ispahani Agro Ltd will allow the quality inflow of products in affordable prices
Access to a geographic market: A strategic alliance is often a way to enter a market that

is protected by (national) tariff and other barriers, or dominated by another company with particular competitive advantages. The popularity of the other companies in the Ispahani group and their strong consumer base can be utilized in this area.
Access to technology: Convergence among technologies is the origin of many alliances.

It is increasingly more frequent that companies need to appeal to their competition in different sectors if they want to realize a product line. Ispahani toast can share the research and innovation cost with the other products.

Page | 2

 Marketing Benefit: Alliances with Ispahani tea will significantly mitigate the marketing

cost . An already established product should reduce the marketing cost and make it more effective
Banking Partners: The overall goodwill of Ispahani group should make the financing

easier and cheaper. The long term banking partners would allow the loan at low cost and low collateral.
Raw Materials: Control over some of the supply channel established by Ispahani Agro

Ltd. would allow cheap sources of raw materials in a market where price hikes are frequent.

2.8 Ispahani Foods Limited (IFL) Organogram (Production)

Manager Junior Assistan Producti on

Executiv e ( Fry)

Deputy Executiv

Deputy Executive

OFFI CE

Operator (2)

Assistant Supervisor (1) Operator (1)

Technical Assistant

Sweeper (2)

Technical Assistant

Executive Store

Administrati ve Officer

Accounts Officer

Helper (1) Page | 1 Technical Assistant Packer (6) Female Accounts Assistant VAT Check

2.9 Ispahani Foods Limited (IFL) Organogram (Marketing)

Manager Executiv e Marketin g Executive (Marketing Business Development

Deputy Executiv

Project Managers

Assistant Manager

Assistant Manager

2. Current Market Scenario

The market size for toast biscuit is around 3000 tons+ per year (Approximate). In addition to about 20000 bakeries in the country the demand is satisfied by small non brand companies. The varieties which are currently available in the market are:

Plain toast:
Page | 2

 This is the most widely popular category in the market. It itself comprises of about 50 percent of the market.
The current market leader among the branded companies is Pran Group

Others:
The other products includes garlic sweet and butter toasts; Often marketed under different names by different companies They share 50 percent of the entire toast market Demand for these products are higher in urban areas

3.1 Analysis of Consumer survey A total of 50 consumers were surveyed for our report. They mainly included families and neighbors. We tried to maintain the core demographic of the survey, which are middleclass homemakers, the elderly and office goers.

Purchasing Trend
Most consumers buy toast biscuits on a weekly basis, forming 42% of the respondents. 16% of the consumers we surveyed did not buy/consume toast biscuit. 18% of the respondents were not sure of the buying habits regarding toast biscuits.

Awareness about Ispahani Toast

Page | 1

The results paint a very grim picture about the current awareness levels regarding our product. But, this is actually what was expected. The lack of promotions and proper distribution has caused the product to go unnoticed.

Importance of health standards

Of the 50, 45 consumers considered the health standards maintained during production an important aspect. Of them, a staggering 72% has never been informed or educated about the health standards maintained by the producers.

Importance of quality

A majority of the consumers (52%) considered quality the most important factor when buying toast biscuits. 13 of them also mentioned taste. Price was not an important factor to them at all, mainly because of the similar pricing trend among the products in the industry.

Loyalty towards a particular brand

The survey showed that a lot of consumers actually considered the parent company, or the brand image of the producer, in forming an opinion about products.

Page | 1

 Other results
Although Pran is the market leader, more consumers in our survey preferred Fu Wang toast. Most consumers were unaware of the ingredients of the product, but preferred the product to be healthy and wholesome.

Takeaways from the survey From the survey, we could find out the lack of promotions and distribution was really hurting our product. There needs to be a strong media/awareness campaign to boost the knowledge about our product. The lack of knowledge about the health standards during production is something we can exploit during marketing our product. Our health standards are far superior to our competitors, and will only become even better with full automation, meaning no manual labor. Quality and taste were very important, and the survey shows that Fu Wangs superior taste has helped them close the gap on Pran as the leading brand. We could use the goodwill of Ispahani as a company, as the survey shows that people who like Ispahani tea are willing to show a favourable buying attitude towards other Ispahani products. We have used all these information to form our recommendations and formulate our plans. 3.2 Marketing Trends

The analysis of the overall market for toast biscuits has revealed that the growing market has been exhibiting the following stable trends over the last few years Breakfast is the least important meal, particularly in urban parts of the country. Convenience is the key factor.
The competition in the biscuit market is stiff with more and more players entering the

market.
Page | 1

 Branded and non-branded biscuits both prevail in the country .Unpackaged products

attract consumers with low unit price, variety of choices and freedom in mixing at the same unit price and paying by weight The market is geographically segmented to a great extent The consumers are price driven, looking for value for money working mothers, it has become a very popular Tiffin for children and evening snack for the family as it is cheap and a suitable snack with tea
Health awareness concerns have driven people to choose low calorie foods. Dietetic

products, products with reduced content of greases and cholesterol and natural products are widely sought after Since all the products are priced in around a cluster , the consumers tend to be brand loyal Always an profitable product since it is traditionally incorporated into the eating habits of some individuals

The basic needs for toast biscuit market are instant availability, appetizing and healthy product, and different flavors. These needs can be further put into categories based on the prices and alternative ingredients of the biscuits In Bangladesh, we use toast biscuit mostly with morning tea or snack purposes for the children as well as for other members of the family in school, work and at home. In these cases variation of tastes and quality of the product comes in action. When the children are given toast biscuits as lunch at school, they prefer to have some added taste and variety to their food. This is one of the many reasons why Pran captured market share so quickly and also for this reason most of the companies come with more than one flavoring. Another factor is availability. Consumers frequently go to market with a blank mind. In this cases retailer references or availability is a dominant factor in creating new consumers and holding on to existing customers. This also follows that the market is geographically segmented. Recently, in our country, there have been changes in the role of women in a family. Today, a lot of mothers living in the urban areas of the country are working mothers and they play a vital role in familys income and purchase decision making. For the working mother, the time and the process of preparation of foods are quite important. Working mothers prefer a quick and hasslePage | 1

free method of presenting snacks. And thus, a rise in the number of working women has also induced the need for food products that are easy to manage. Another important factor is the overall build up of awareness of the nutritious values of food products. The anti-contamination campaigns undertaken by the government has rung an alarm in individuals purchase behavior. People are more conscious about harmful ingredients and foul process of manufacturing . This means that people are expecting sincere behavior from companies in the market for food product. Sugar-free biscuits for diabetics, digestive biscuits for adults, calcium-rich or vitamin-rich biscuits for children and high-fiber biscuits for the health conscious group have emerged in the market. In general there is an overall tendency in people to favor low calorie food items to avoid. Although people are not fully aware of the ingredients they are prepared to pay slightly higher prices for quality ingredients.

2. Competitor Review

PRAN Group Pran ( Programme for Rural Advancement Nationally) Group is one of the largest fruit and vegetable processor in Bangladesh. Pran Toast is now the market leader in the branded toast biscuit section in the country. Boasting over 4 varieties of toast, Special Toast, Sweet Toast, Garlic Toast and Plain Toast, Pran also offers different sizes of toast packages, with the most common of 350g. Pran Toast also comes in 150g package that costs Tk 25.

Fu Wang Foods
Page | 2

Fu Wang Foods is an SBU of the Fu Wang Group. They stared making toast biscuit from 1997. Since then, they have gradually captured a significant share of this market. They started out with only two varieties of toast, plain toast and high quality toast. Over time, they have added many other varieties to their product line. Currently they have five varieties of toast in the market. They are the only producer to make Spicy Toast, and that has boosted their sales over the last few years and has given them a competitive advantage. The most common sizes of the various flavours are the 250g and 350g packs.

BD Food BD Foods started their operation in Bangladesh since 2004. They have produced toast biscuits since then. Initially they entered the market with three varieties of toast biscuits. Now, they produce four varieties. Their most successful product is the butter toast, and its produced in only one size, 350g. The size of other varieties range form 200g to 400g.

Product Diversity Ispahani Plain Butter Sweet Garlic Spicy Pran Fu-Wang BD Foods

We can see that the major players all produce different varieties of toast. In order to compete as a toast biscuit brand, Ispahani must venture into producing other flavours. Price Comparison
Page | 2

In order to demonstrate the pricing scenario the industry, we are comparing the prices of a standard pack of 350g plain toast of six of the leading market players. Brands Fu-Wang Ispahani BD Foods Danish Pran Haque Prices/ Tk per 350g 42 45 48 48 50 50

We can see that all the players are engaged in competitive pricing. Only Fu Wang has priced their product lower than Ispahani. Due to the sales of most companies being healthy, there is little chance of a price war, and all the companies are comfortable with their current pricing strategies.

3. Market Analysis
5.1 SWOT Analysis

Strengths
Strong Brand Image: The Ispahani Group of Companies has been involved in business

in South Asia since 1820. They are pioneers in many business fields and remain one of the most successful and respected business houses in Bangladesh. With such a strong image of the parent company, customers easily perceive any of its subsidiaries to release products of the highest quality. From this viewpoint, Ispahani Toast may already have a strong brand image within the industry.

Page | 2

 Unparallel Distribution Network: Ispahani Foods Limited has a massive distribution

network that spans the whole country. The entire network is owned by the company itself, which includes delivery vehicles, people, storage etc.
Highest quality ingredients: Ispahani toast contains ingredients of the highest quality,

and is beneficial for health. As compared to competitors product, Ispahani Toast does not contain harmful contents such as monosodium glutamate, testing salt etc. The product also has low sugar content, and high grade palm oil is used for butter toast instead of high-fat content butter. Different herbal ingredients are used in the product.
Partial control of raw material supply: Some of the raw materials required for the

production process is supplied by another sister concern, Ispahani Agro Limited. Although the raw materials purchased are priced the same as that of outside suppliers, there is more trust and guarantee that the raw materials purchased will reach the production process in due time.
Fully automated production: Ispahani toast is the only company of having their entire

production process going for full automation. Currently, some of elements in the production process occur manually, but most of the machineries are being imported and are going to be set up within the next month.
Strong financial leverage: Ispahani Toast also has the competitive advantage of strong

financial support from its parent company, Ispahani Foods Limited. This allows more significant investment to increase the market share.

Weaknesses
Low capacity: Ispahani Toast has been recently launched with limited capacity in terms

of production. As a result, their overall production is significantly low. However, more

Page | 1

machinery is going to be imported within the next month, which would help increase their production capacity by a large margin.
Low awareness: Ispahani Toast did not undergo any major promotional campaign to

create awareness amongst the general consumers. As a result, consumers still do not have enough knowledge about the presence of the product in the market.
Labor Dependency: Although Ispahani Toast is going for full automation within the

coming months, the production process is still dependent on manual labor input. There are issues of hygiene, negotiation with labor unions, shortage of skilled labor, etc.

Opportunities
High market rate growth: Currently, market growth rate is steadily increasing as there

is a huge demand from the middle-class and lower-class people. Although many competitors are present to meet this demand, there is still enough untapped market for Ispahani Toast to utilize.
Utilizing Ispahani Brand Image: Ispahani is already well known for their tea products.

As a result, there is a scope for the company to combine the name of Ispahani Tea with that of Ispahani Toast to make it more popular amongst the general consumers.

Scope of Export to neighbor countries: Ispahani group of companies is already well

known within the sub-continent region, especially in India and Pakistan. As a result, there is an opportunity for the export of Ispahani Toast to the foreign market.

Threats
Low entry barrier for new firms: There is relatively low or no entry barriers for new

firms to enter into the market. Much like Ispahani Toast, other companies can easily the
Page | 2

market and utilize the untapped market potential for the market. This would intensify the competitive scenario of the toast biscuit industry.
Strong established competitors in the market: Market leaders such as BD Foods, Fu-

Wang, Olympia, Pran have already secured significant market share in the market. There is a persistent threat of the competition securing more of the untapped market share.
Fluctuations in raw material price: Raw materials are constantly becoming more

expensive to purchase. As a result, the company may be forced to increase the price of the product itself in the market to compensate for the increased production cost.
Presence of alternative products: In the current market, more alternative products such

as chips, chanachur etc. are becoming more popular for the consumers, especially in the urban market. These consumers prefer these other products, rather than toast biscuit.

5.2 Comparison of SWOT of Ispahani Toast with competitor products:

Strength
Brand Image

Ispahani Toast
4

BD Foods
3

Pran
4

Page | 1

Distribution Network Highest quality ingredients Control of raw material supply Fully automated production Strong financial leverage

4 5 3 5 4

3 4 4 1 3

3 4 3 2 4

Weakness
Low capacity Low awareness Labor Dependency

Ispahani Toast
-4 -4 -2

BD Foods
-2 -1 -5

Pran
-2 -2 -4

Opportunities
Market rate growth Utilizing Brand Image Scope of Export to neighboring countries

Ispahani Toast
4 4 4

BD Foods
3 3 2

Pran
4 3 4

Page | 1

Threats
Low entry barrier for new firms Strong established competitors in the market Fluctuations in raw material pricing Presence of alternative products

Ispahani Toast
-4 -4

BD Foods
-2 -1

Pran
-2 -1

-3 -3

-2 -2

-2 -2

5.3 GE Model Market Attractiveness

Factors
Market Size Market Growth Rate Market Profitability Pricing Trend Distribution structure

Weight
0.15 0.20 0.15 0.15 0.10

Rating
3 3 5 3 5

Value
0.45 0.60 0.75 0.45 0.50

Page | 1

Entry Barriers Differentiation of product and services Opportunity of Technological Development

0.05 0.10 0.10

4 4 5

0.20 0.40 0.50

Total

3.85

Business Strength Factors

Market Share Quality of product Relative Brand Strength Managerial Personnel R&D Performance Distribution strength Production Capacity Automation in production

Weight
0.15 0.20 0.10 0.15 0.10 0.10 0.10 0.10

Rating
1 5 4 4 4 5 2 4

Value
0.15 1.00 0.40 0.60 0.40 0.50 0.20 0.40

Total

3.65

Business Strength (3.65)

Mar ket Attr activ enes s (3.85 Strong Strong Medium Medium Weak

Page | 1

Weak

Fig: Position of Ispahani Toast (GE Model)

Using GE model we have found that the product is in a healthy position of strong-medium. There is a strong market attractiveness of 3.85 and business strength is 3.65. This is mainly because of Ispahani Toasts lack of significant market share and current production capacity. The fact that it is a relatively new product in the market contributes to these factors. Ispahani Toast needs to build on its strengths and invest heavily to reinforce vulnerable areas such as their production capacity and in time strive to achieve a higher market share.

5.4 ADL MATRIX In order to determine our position within the competitive industry, along with the industry maturity stage, we consider the following points and analyze the position of Ispahani Toast based on the points. The current market growth situation Ispahani Toast has been recently launched in the market. In the Product Life Cycle, Ispahani Toast is in the introductory stage of the cycle. The current market growth is low, but is expected to increase substantially once the product enters the growth stage. Number of Competitors Currently, there are a number of large market competitors vying for significant market share in the market. Competitors include BD Foods, Pran, Olympia, Fu-Wang, Haque etc. There are also a number of local companies selling toast biscuit at a small scale. Size of the market

Page | 1

The market size of toast biscuit in Bangladesh is large due to the fact that the target demographic for the product is the middle-class and the lower-class people, which roughly constitutes for more than 90% of the population. Scale of investment in the market The scale of investment for Ispahani Toast is increasing day-by-day as more machineries are imported from abroad to improve the overall production process. Investment is also used for promotional campaigns to create awareness for the product. Product differentiation and Amount of Sales Ispahani Toast is different from its competitors by the quality of the product itself and its topnotch production line. It also comes with different flavors, such as salted, butter, garlic etc. Since the product is in the introductory stage, its sales are increasing and are expected to increase by many folds in the future as promotional campaigns intensify.

Based on the information given, we can say that we are in a favorable position in the market, in a matured industry. Ispahani Toast maintains a few competitive advantages as it has a strong distribution structure, as well as automated production process. However, it is completely new in this market, and thus, there need to be more investment to increase its market share.

Industry Maturity
Co mpe titiv e Posi tion
Embryonic Dominant Strong Favorable Tenable Weak FIG: ADL MATRIX Growth Mature Aging

Page | 1

Recommendations From The Analysis: Investment more on the promotional campaigns, targeting in the print and television media to increase awareness.
Utilize the goodwill of Ispahani Tea while marketing this product

More emphasis on producing toast biscuits containing herbal products and other different types of healthy ingredients. Maintaining a high standard of the product by strengthening quality control measures. Find a niche among the different varieties of toast biscuits, and strive to be the market leader for that segment.

5.5 BRAND PERSONALITY DIMENSIONS

Brand personality refers to the set of human characteristics associated with a brand. Consumers are more likely to use brands to express how they are either similar to or different from people of their in-group. In addition to this brand personality influences the targeted demographics of a particular brand by grooming up the brand in front of the potential consumers.
Demographics Brand Customer Brand Preferen Personality Perceived ce Value

Page | 2

All of this adds up to form the perceived customer value which is the fundamental basis for all marketing activity. According to Jennifer Aaker, brands can be identified by five distinct personality traits. The various characteristics of Ispahani Toast matches clearly with the features of the sincerity attribute.

Fig: Framework of Brand Personality Ispahani Foods Ltd as a company has been for a number of years. It produces quality products at affordable prices. Its product line mainly constitutes of products which does not necessarily targets the upscale or the posh markets. Rather it tends to focus on the daily needs of the average household. Its products are more like regular Toyota than an expensive Lexus. It strives to bind itself to the daily life of its target customers and add value in its own way. The characteristics of the brand Ispahani Toast can be summarized as

Domestic: The food products are domestically produced from the raw materials grown in

the country. Majority of its target market constitutes the inner customers.
Honest: Although the venture in the toast market is relatively new Ispahani food

products has been in the market for many years. It has been satisfying the needs of the target customers and thereby maintaining a strong goodwill. Ispahani food products are renowned for its trustworthiness and quality control measures.
Wholesome: The Company takes strong initiatives to maintain hygiene and health

factors in its products. As for example Ispahani Toast does not include harmful contents such as monosodium glutamate, testing salt etc like other competitor brands. The product also has low sugar content, and high grade palm oil is used for butter toast instead of high-fat content butter. Different herbal ingredients are used in the product.
Cheerfulness: The product Ispahani toast by its own qualities is more suitable for an

evening or morning tea in a family gathering. The brand Ispahani toast has the happiness of a friends companion who has trust, dependability, understanding, and caring.
Page | 2

 Down to Earth: The pricing of the Ispahani Toast is fairly competitive. The idea is to

use the goodwill of the well known Ispahani tea and present the product like a complimentary one. Ispahani Tea is popular for premium quality at reasonable prices.

In general the personality of the brand Ispahani Toast should aid to increase the overall suitability of the product in the target market markets where the consumers are predominantly brand loyal, price sensitive and health conscious.

2. Market Segmentation and Targeting:

Market segmentation is the first of three important steps in developing marketing strategy. The objectives of market segmentation are to more accurately meet the needs of selected customers in a more profitable way. Market segmentation is important not only to identify whom we should target but also to define appropriate marketing and promotional strategy for every targeted segment. Toast is a mass marketed product because here the company is engaging in the mass production, mass distribution and mass promotion of one product for all buyers. Hence comes the necessity of market segmentation. Increasing splintering of the market and the proliferation of advertising media and distribution channels have made it quite difficult and increasingly expensive to reach a mass audience. That is why it has become very important to segment the market and carefully chose one or more segments as the target market. Then creating appropriate strategy for each targeted segment can make the product into a success.

6.1 Bases for market segmentation and targeting of Ispahani Toast: There are several bases for segmenting consumer market. Different products and services require different bases for its market to segment. A company doesnt require using all the bases for market segmentation. Rather it can choose some effective criteria for segmentation. The segmented market should have the following criteria:
Page | 2

Measurable: The size, purchasing power, and characteristics of the segments can be measured Substantial: The segments are large and profitable enough to serve. Accessible: The segments can be effectively reached and served. Differentiable: The segments are conceptually distinguishable and respond differently to different marketing-mix elements and programs. Actionable: Effective programs can be formulated for attracting and serving the segments. Fulfilling all these requirements, Ispahani Foods Ltd. has segmented its market based on the following criteria-

6.2 Demographic Segmentation: In demographic segmentation, the market is divided into groups on the basis of variables such as age, family size, family life cycle, gender, income, occupation, education, religion, race, generation, nationality and social class. Age: According to age, the market can be divided into four groups- children, young people, middle aged people and older people. Ispahani is targeting customers of all ages as its target customer. Occupation: The market can be classified as students, office-goers and homemakers according to occupational variable and Ispahani Toast is targeting all these groups. Social Class: According to social class, the market can be divided into lower, middle, upper-middle and upper class people. Here the target customers of Ispahani Toast are mainly middle and upper-middle class people.

Page | 2

6.3 Behavioral Segmentation: Other than demographic segmentation, Ispahani Toast is also segmenting its market according to behavioral variables. In behavioral segmentation marketers divide buyers into groups on the basis of their knowledge of, attitude toward, use of, or response to a product. Ispahani is segmenting and targeting the customers on the basis ofBenefits: According to this basis, Ispahani toast will be targeted towards Traditional customers, who are likely to buy brands theyve heard of and have been around for a long time. User Status and Usage Rate: The target customer of Ispahani toast will use or consume toast regularly and at a medium rate. Loyalty Status: Ispahani Foods Ltd. is targeting customers who are and will remain loyal to the Ispahani brand and its other products.

6.4 Psychographic Segmentation: According to psychographic basis of segmentation, the target customer segment of Ispahani toast are Family-oriented Practical and down-to-earth

2. Positioning
Positing strategy is at the heart of marketing strategy. It is the act of designing the

company offer and image so that it occupies a distinct and valued place in the target customer mind. Ispahani Foods Ltd wants to create an image in the mind of customers that

Page | 2

Ispahani toasts provide them a wide range of toasts that are of excellent quality and taste and also provide customers lot of energy and nutrition. In addition to that since the target customers of Ispahani Limited is middle to upper middle class customers, Ispahani wants to associate the toast with the daily needs of average households. Ispahani Foods Ltd wants to bind Ispahani Toast with the daily life of their target customers. In their customers minds Ispahani Foods Limited aims to establish Ispahani Toast as a product with the following personified qualities. Honest- Although the venture in the toast market is relatively new Ispahani food products has been in the market for nearly two decades. Over the years it has been satisfying the needs of the target customers and thereby maintaining a strong goodwill. Ispahani food products are renowned for its trustworthiness and quality control measures. Down to Earth- The pricing of the Ispahani Toast is fairly competitive. The idea is to use the goodwill of the well known Ispahani tea and present the product like a complimentary one. Ispahani Tea is popular for premium quality at reasonable prices. Wholesome- The Company takes strong schemes to maintain hygiene and health factors in its products through automation and herbal substances. As for example Ispahani Toast does not include harmful contents such as monosodium glutamate, testing salt etc like other competitor brands. The product also has low sugar content, and high grade palm oil is used for butter toast instead of high-fat content butter. Different herbal ingredients are used in the product. Nutrition is given the utmost importance.

3. Marketing Strategy
To make a product a successful one requires effective marketing strategy. Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach the desired objectives.
Page | 2

In this report the marketing strategies have been discussed from the perspective of the 4 Ps in marketing mix i.e. Product, Price, Place and Promotion. Initially the current situation regarding the 4 Ps has been discussed. This is followed by the strategies which Ispahani Foods Limited wants to adopt in the near future to reach their target customers and create a positive image in their mind. Lastly we have provided some recommendations regarding strategies which Ispahani Foods Limited can undertake to create awareness and desire among customers, enhance sales and thereby acquiring a significant share of the toast market. The recommended strategies have been developed using the CAB model of marketing, which is a three step model in marketing leading to the final purchase of a specific product. CAB model is a new development of AIDA model in marketing where C stands for Cognition (Awareness or learning) A stands for Affect (Feeling, interest or desire) B stands for Behavior (Action)

8.1 Product

Current Scenario Ispahani Foods Ltd provides high quality and excellent taste in their all type of food products. Toasts will not be any exceptions to that. Ispahani aims to launch a variety of toast with different taste to satisfy customer need. Currently two types of Ispahani Toast are sold in the market- Plain and Sweet toasts. Ispahani Foods Ltd. Wants to produce healthy and hygienic toast biscuit. So they are in the process of automation. Therefore they are currently producing nowhere near their full production capacity. As soon as Ispahani gets all technology to make the process fully automated others flavors of toast will be launch. In the future Ispahani foods Ltd. Want to expand their product line of the toast brand through introduction of Butter Toast, Garlic Toast, Spice Toast and Milk toast to satisfy the needs of target customers.

Recommendation
Page | 2

 Introducing Mini-pack:
Currently Ispahani toast is available in only 250g and 350g packets. All the other branded toasts available in the market are also in the range of 200g-400g packets. So introducing a mini-pack of toast will be completely a new idea which will create interest and desire among customers to consume Ispahani toast. The mini-pack can be of 5-10g of weight, priced Tk 6 per packet. Several benefits can be associated with mini-pack of toast:

One of the target segments of Ispahani toast is office-goers. Mini-pack can be a wonderful idea to serve them as they want to have some snacks with tea/coffee in the breaks of their official works.

School-going children can have a mini-pack for their tiffins. This idea can also be helpful in our initiatives to provide toast as tiffin in government schools. While large packets of 200g-350g are there in the retailers shops to serve familyoriented customers, mini-pack idea can be helpful to target the customers who stop by the side of a mini-packs in the teaoffice tea-stall. For this, would be available stalls nearby the areas.

Fig. Minipack Design

Introducing new varieties:

Page | 1

Another new strategy is to introduce new varieties apart from the existing varieties of Plain toast and Sweet toast. In the future, butter toast and garlic toast needs to be introduced

Packaging Currents Ispahani toasts are available in 250g and 350g packets. These have been the optimum sizes for all the toasts available in the market though some of the competitors have launched 300g and 400g packages. Ispahani Toasts are packaged with three layer protection with the inside layer made using foil paper. This ensures the toasts get protected from moisture and other environmental factors that could potentially make them get damp and lose their taste. The packages for Ispahani Toasts are made colorful to attract customers eyes. However it is ensured that the colors are not too flashy that can sometimes irritate potential customers.

8.2 Pricing Current Scenario Ideally Ispahani Foods Limited want to set the price of their toast product using the cost-plus pricing strategy. They want to assess the cost and set a small mark up on the cost. However the Toast market currenly in Bangladesh is a saturated one. As a result pricing a product without paying attention to competitors price is extremely difficult. So it is currently following competitive pricing strategy. However they are making it sure that the price they set offers the customers the right quality product at a fair price. In other words they are trying to adopt good value pricing. Ispahani Foods Ltd. do not want to compromise with quality while making pricing decision. They believe that their target customers will prefer more quality rather than price.

8.3 Place Current Scenario

Page | 2

In the marketing mix, placement is a key factor which determines the distribution strategy for a particular product. A distribution strategy defines how you are going to move products from points of creation to points of consumption, in a cost-effective manner. The effectiveness of distribution coverage and practice is of paramount importance in achieving desired toast sales. Ispahani Foods Limited has an unrivalled distribution network of over 300 sales centres under 12 zonal offices in Chittagong, Dhaka, Dhaka North, Bogra, Barisal, Comilla, Khulna, Kushtia, Mymensingh, Rangpur, Dinajpur and Sylhet. So it can be said their distribution network spans over the whole country. The entire network is owned by Ispahani Foods Ltd, which includes delivery vehicles, people and storage facilities. This has reduces considerable dependency on external sources for distribution purposes and thereby will help Ispahani Foods Ltd in distributing to products to wholesalers and retailer within due time. Since the toast is a relatively new venture of Ispahani Foods Ltd, the company has so far distributed their product in few retail shops in Dhaka and Chittagong. However as soon as they start production of toast biscuit in full capacity they will be supplying toasts at numerous retail shops, departmental stores, chain superstores and also in wholesale markets.

Recommendation

Capture crucial shelf space

In order to attract the attention of consumers to buy Ispahani Toast, enough shelf space must be captured in retailer shops. This can be achieved through better incentives for the retailers to buy more Ispahani Toast packages and placing them on the shelf. This incentive can be provided through two more Ispahani Toast packages free with every twenty Ispahani Toast packages.

Retail Shop Branding

Another way to capture the interest of the consumers is through retail shop branding. IFL can sponsor the identification billboards on which the retailer names are printed. Through this sponsorship, the Ispahani Toast logo can be imprinted on the billboards for the customers to see.

8.4 Promotion
Page | 2

Current Scenario At the early stage Ispahani Foods Ltd is yet to launch a major marketing campaign for their new product. They are planning to organize school events that will create awareness among school goers and their parents about Ispahani products. They also aim to create billboards and place them in important commercial areas such as Farm gate, Karwan Bazaar and Motijheel and also near schools. This will help them get the attention of both male and female target customers.

Recommendation

Radio Promotions
Radio offers reach, frequency, impact and economical advertising solution for advertisers. Radio advertising rates are low on cost-per-thousand basis than other media. Radio can extend the reach of our campaign, and enhance or reinforce our message. Radio speaks to its audience in a highly personal manner. Two of the Radio stations we will be focusing in our campaign are Radio Foorti and Radio ABC. Radio Foorti broadcasts in eight cities and their adjoining areas. Radio Foorti has separate stations in Dhaka, Chittagong, Sylhet, Rajshahi, Khulna, Barisal, and Mymensingh & Cox's Bazaar. ABC Radio is the first news-oriented FM radio station in Bangladesh. They air a lot of Talk shows, some of them regarding health issues.

How we will integrate our campaign into their current strategies

Page | 1

In the early morning they are targeting to the elderly population with Rabindra Shangeet, Nazrul Geeti and classical songs from about 8 am to 12 am. In the morning they are giving news in Shokaler khobor at 8.45am-9am adding the tag line-: shobar agey shorboshesh shongbad. Besides they are giving latest news update in every hour, and traffic update through-Dhakar Chaka.

Two of our most important demographics are tuning in at this time Elderly people have tea regularly, many with toast, and are possibly already loyal customers of Ispahani tea. Elder people are also in many cases health conscious and healthy being a major competitive edge of our product; this is the perfect opportunity for our promotion. Many office goers also tune in for traffic updates, and this is an opportune time to remind them of our product. Our plan is to air commercials for our product on Radio Today mainly in the morning time slot. The other main slot will around the news slots. Radio Today is also known for its hit music countdown/request shows. Sponsoring these shows will help us reach out to the youth. The RJs will also mention our product at suitable opportunities.

Page | 1

Radio ABC focuses a lot on talk shows and regularly host health related talk shows. We will sponsor these shows and position our product as a healthy brand. This will help educate the health conscious listeners about the features of our product. The RJs during this slot will sporadically talk about having Ispahani tea and toast which will be served during the program. We will also air commercials on Radio ABC in the morning time slot, and in the news slots. About our commercials The commercials will be made keeping the target audience in mind. The length will be approximately 20 seconds. The advertisements will focus on: The superior quality of our product compared to the competitor. First toast producer to make biscuits without manual labor. Our product is hygienic due to being made with automated production. Talk our herbal ingredients in our product.
Try to draw from the goodwill of Ispahani tea, through our slogan.

Convenience of our Mini Pack About our sponsored talk shows These shows will talk about health and well being. The guests will be doctors or other health workers.
The name of the show will contain our product name, for example, Ispahani Toast Health

Talk.
There will be a SMS quiz contest in the show, and we will book a 3mins time slot before

the late night news to announce the winner. Ispahani will reward them with gift vouchers. Our commercials will also be aired then. This will help us build a relation with the many enthusiastic radio listeners.

The costs for these campaigns are mentioned below

Page | 2

For a 1min commercial slot, Radio Foorti charges four thousand taka For a 1min commercial slot, Radio ABC charges three thousand seven hundred taka For sponsoring a thirty minute talk show, both the channels charge around 30 thousand taka. Our airing schedule will be Radio Foorti Commercials Sponsored shows 3mins per day Once weekly Radio ABC 2mins per day Once weekly

Provide Ispahani Toast as a tiffin item in government schools:

In the initial stage when people are not aware of Ispahani toast, the idea can serve as a Cognition of CAB model. One of the target markets of Ispahani toast are school-goers. There are thousands of government schools in the cities and districts of Bangladesh. Millions of students are studying there. So this segment of market can be easily reached by providing Ispahani toast as a tiffin item in the government schools. Usually tiffins that are provided in the schools are not regarded as healthy and quality food by most of the students and their parents. That is why, this idea can not only attract the students but also create a positive image in the minds of their parents. This positive image and awareness about the quality and health-conscious factors of our product will eventually lead these customers to buy Ispahani toast.

Billboards
As always, billboards will be placed at specific points around the city to capture maximum attention from the pedestrians. With the existing plan of billboard placements in specific areas within Motijheel and Farmgate, more billboards need to be placed in significant traffic areas such as Gulshan, Mohakhali and Newmarket. For each billboard placement in a single spot requires an average of Tk 4 lakhs monthly
Page | 1

 Celebrity Engagement
Ispahani Toast can also be associated with celebrities to create a more vibrant connection with the general consumers. To facilitate the idea that the product is healthy and delicious, an elder celebrity such as Abul Hayat or Ali Zaker can be pursued to advertise the product through different mediums.

Sales Promotion
Although all other products from Ispahani group of companies were popular among the consumers, the consumers were unaware of the existence of Ispahani Toast in many cases. To reduce this, it is suggested that the related product of Ispahani are placed in the same area. To make the products more visible the following steps can be undertaken in the retail shops
An ispahani toast & Biscuit stand An Ispahani Wall-clock Distribution of Ispahani toast T-shirts among retailers

The Ispahani Toast expects cooperation from retailers in the following dorms
Page | 1

 Encouraging trial by new prospective customers of the products: In these sorts of value

products the word of mouth coming from retailer is extremely influencial in cases of purchase behaviours of consumers.
Brand switching by customers: If the customers are informed by the retailers about

competitivr advantages of of products, the brands can be shifted, . The overall brand image of ispahani food products can come handy for this
Buying in quantities more than usual by customers: If the consumers are informed that

this is the leadind brand with superior quality, then the consumers can be persuaded to be greater quantity
Encouraging off season buying by customers: Consumers will be influenced to buy this

product if the retailers informs about this with probable complimentary products.
Establishing customer loyalty: Frequent availability and continuous reinforcements

about the quality of the product will help in this area

Offsetting competitive sales promotions: Controlling the retail chain will undermine

competitors strategies.

Overall it can be seen that the retailer performs a very important role in the entire process of purchase behavior of individuals. However it is obvious in every case that that the retailer must have his own incentitives to aid Ispahani Toat limited. To ensure that the following means can be adopted

The billboard sponsorship of small groceries e.g. Identification Signboard

To give a significant discount when the retailers buys in bulk. For Example giving a

carton free after purchasing of 10 cartons at a time A yearly contest to be arranged among the retailers. The best retailer in terms of purchase volume would be sponsored a family tour in a renowned tourist location
To get retailer preference discounts in

other popular ispahani teams would also be

allowed

Page | 1

 Newspaper Advertising
We have devised a newspaper advertising strategy based on an action plan focusing on maximum exposure to our target segments using affordable costs. The advertisements will try to deliver all our promotional statements and represent our product as a healthy new alternative. The six month action plan for newspaper advertising includes: Front page advertisements in the selected national newspapers in the beginning week of promotions. Two advertisements in the first page will be printed in the first week including Friday. The advertisements will shift to the inner pages, which incur lower costs, but will still provide us with satisfactory exposure. We will print 1 advertisement per week for two months. The next 4 months will feature one advertisement per two weeks. The newspapers we have selected are Prothom Alo and Amadershomoy. Prothom Alo is the leading Bengali newspaper in the country with the maximum reach. Amadershomoy is a very popular cheap newspaper, with massive sales volumes in the transport systems of our country. This paper is the most bought newspaper among office goers. The advertisements will measure 3 columns 3 inch. Costing for these promotions will approximately come to Newspaper Prothom Alo Amadersomoy 1st week 3,78,000 3,24,000 7,02,000 First 2 month 3,60,000 3,60,000 7,20,000 Next 4 months 3,60,000 2,52,000 6,12,000

Page | 1

2. Promotional Budget:
Promotional budget of Ispahani toast for the first two years has been shown here. Some of the key notes about the budget are Promotional budget for the first 6 months should be relatively higher for Ispahani toast as

it is a new product. Significant amount should be spent on retailers and advertisements for the first couple of months. Promotional budget will eventually decrease after the first few months assuming that by this time significant number of target customers will be acquired. In the promotional campaigns such as radio ads, tea stall branding, we are trying to associate Ispahani toast with its sister concern Ispahani tea. Thats why Ispahani tea will be sharing 20% of the cost incurred in those campaigns. As there is intense competition in the market, we have to continue to spend on promotion to acquire new customer as well as to retain the old ones. After 1 year or so, promotional activities should be given a boost in order to compete against new and existing competitors.

Promotional Budget Estimated for the first six months: 2011 July Retail Shop Branding Getting Shelf Space Retail Shop Branding Gifts for Retailers Total 300000 200000 40000 540000 40000 0 10000 0 80000 58000 0 35000 0 10000 0 80000 53000 0 20000 0 50000 0 60000 76000 0 15000 0 50000 0 50000 70000 0 10000 0 50000 0 40000 64000 0 Aug Sept Oct Nov Dec

Buyer Communication Initial Teaser Ad 80000 Sponsor Progs on Radio & TV 500000
Page | 1

80000 50000 0

70000 40000 0

50000 20000 0

30000 10000 0

0 10000 0

Repititive Radio Ad Newspaper Ad Billboards Total Cost shared Ispahani Tea Actual Cost Ispahani Toast by

50000 106200 0 200000 189200 0 362400 of 152960 0

20000 0 36000 0 20000 0 13400 00 25200 0 10880 00

20000 0 15300 0 20000 0 10230 00 19060 0 83240 0

20000 0 15300 0 20000 0 80300 0 15060 0 65240 0

20000 0 15300 0 20000 0 68300 0 13060 0 55240 0

10000 0 15300 0 20000 37300 0 74600 29840 0

Customer Involvement Tiffin with Ispahani Toast 200000 Tea-stall Branding 100000 Tea-stall based communication 100000 Total Cost shared Ispahani Tea Actual Cost Ispahani Toast Others Total Grand Total 300000 272960 0 400000 by 40000 of 360000

20000 0 10000 0 80000 38000 0 36000 34400 0

20000 0 10000 0 50000 35000 0 30000 32000 0

70000 10000 0 40000 21000 0 28000 18200 0

50000 80000 30000 16000 0 22000 13800 0

50000 60000 20000 13000 0 16000 11400 0

30000 0 23120 00

30000 0 19824 00

20000 0 17944 00

20000 0 15904 00

10000 0 11524 00

Total Estimated 115612 Budget till Dec-11 00 Promotional Budget Estimated from January 2012- June 2013: 2011 July-Dec 37,50,000 49,53,200 14,58,000 2012 Jan-June 20,00,000 30,00,000 12,00,000 July-Dec 20,00,000 25,00,000 10,00,000 2013 Jan-June 23,00,000 30,00,000 14,00,000

Retail Shop Buyer Communication Customer

Page | 1

Involvement Others Grand Total

14,00,000 1,15,61,200

10,00,000 72,00,000

7,00,000 62,00,000

10,00,000 77,00,000

Estimated Revenue for the first two years Since the product is at the introduction phase, the growth in sales will be very high in the first six months and the amount that will be produced will depend on the sales and the demand for the product. Also the products will be supplied in such amount in the market which ensures availability for all our target customers. It is assumed that 20% of total production will remain in the warehouse as inventory.

The growth in production will subsequently slow down. However it is estimated that for the first two years semiannual growth in production will exceed 25%. It is assumed that inflation will increase the cost of our production significantly. However at this stage the production is partially automated. When the production gets fully automated the cost of production will also come down significantly. In our forecasting we are therefore planning to increase the wholesale price of each of our product by Tk. 1. Estimated Revenue from July 2011- Dec 2011: Products Plain Toast (350g) Number of Units Price Revenue Sweet Toast (250g) Number of Units Price Revenue Butter Toast (250g) Number of Units Price Revenue
Page | 1

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

12000 38 456000

14400 38 547200

18000 38 684000

21000 38 798000

24000 38 912000

25800 38 980400

12000 35 420000

14400 35 504000

18000 35 630000

21000 35 735000

24000 35 840000

25600 35 896000

7200 35 252000

8600 35 301000

11320 35 396200

12500 35 437500

14500 35 507500

15000 35 525000

Garlic Toast (250g) Number of Units Price Revenue Minipack (50g) Number of Units Price Revenue Total Revenue

9600 36 345600

11600 36 417600

14000 36 504000

16800 36 604800

19160 36 689760

21000 36 756000

24000 6 144000 1617600

32000 6 192000 1961800

36400 6 218400 2432600

42000 6 252000 2827300

46000 6 276000 3225260

50000 6 300000 3457400

Estimated Revenue from July 2011- June 2013:

Products Plain Toast (350g) Number of Units Price Revenue Sweet Toast (250g) Number of Units Price Revenue Butter Toast (250g) Number of Units Price Revenue Garlic Toast (250g) Number of Units Price Revenue Minipack (50g) Number of Units Price Revenue Dec-11 Jun-12 Dec-12 Jun-13

115200 38 4377600

172800 38 6566400

216000 38 8208000

259200 39 10108800

115000 35 4025000

182800 35 6398000

230000 35 8050000

270200 36 9727200

69120 35 2419200

103680 35 3628800

129600 35 4536000

155520 36 5598720

92160 36 3317760

138240 36 4976640

172800 36 6220800

207360 37 7672320

230400 6 1382400

345600 6 2073600

432000 6 2592000

518400 7 3628800

Page | 2

Total Revenue Semi Annual Growth Rate

15521960

23643440 52.3%

29606800 25.2%

36735840 24.1%

Page | 2

Timeline
Pre July July 2011 Aug 2011 Sept 2011 Octobe r 2011 NovDec 2011 JanJune 2012 JulyDec 2012 2013

Test Marketing Newspaper and radio ads Placing Bill Boards Communication with wholesalers and retailers
Sponsorship in TV Programs

Geographic expansion Expanding Product Line School Campaigns

Conclusion
Ispahani Toast has the potential to be one of the leading toast biscuit producers in the market. The toast industry in Bangladesh has a significant potential in the market due to its wide customer base and its cultural significance with the perception of the general consumers Currently, almost all of the toast biscuit producers are following the age-old manual production process. No unique marketing strategy is employed by the branded toast biscuit producers to captivate the general consumers to buy their products and increase the market share within the industry. Ispahani Toast can bring a fresh change to the situation. With the process already in progress, Ispahani Toast will soon go into full automation within the shortest possible time. The products
Page | 1

being of the highest quality, and with the addition of herbal ingredients, will prove to be an enticing product to both young and old consumers. With increasing the overall sales volume in mind, specific media are going to be targeted which has maximum audience reach across the country and can capture the attention with the promotion cost in mind. The toast market has certainly declined in popularity with the advent of substitute products and incorrect marketing strategy from the existing brands. With a unique procedure and wider marketing campaign, Ispahani Toast will be able to boost their sales volume significantly and capture enough market share to be a respected brand in the market.

Page | 2