Background
Green Coconut Water is the product that this paper aims to advertise and market. The product has been given the name Jaul, which will be its official brand name. We chose to provide the product with an indigenous character since the raw materials are widely accessible in our nation. Jaul is a soft drink that offers processed green coconut water to customers in bottles.
We have chosen to introduce three product lines for the product’s marketing purposes. Jaul will be presented in 250-ml, 500-ml, and 1-liter bottles. We have set the product’s pricing reasonably, making it accessible to a wide range of consumers. The target costing pricing strategy is to be employed because it is the market’s first hit, and it needs to establish a competitive edge.
For the product, a sizable market sector has been targeted. Bangladesh has a sizable population, which is ideal for the product (Chowdhury et al. 165). Many people seek a product like that because green coconuts are not always readily available. Take a street walker as an example; if he suddenly feels thirsty, he must locate green coconut water to quench his thirst.
Jaul will be supplied to all the streets, so that anyone who wants to drink green coconut water can obtain it from a nearby store. Our target market comprises various customers, who we have divided based on demographic, geographic, psychological, and behavioral factors (Camilleri 69). These consumers include those concerned about their health, those who are ill, and athletes.
Marketing Analysis
Product Portrayal
Jaul is a product that caters to several client segments. The item is green coconut water, which is distinctive on the market at the moment. The green coconut water will be prepared and marketed in 250-ml, 500-ml, and 1-liter glass bottles. The sick and health-conscious folks will find the green coconut water to be highly reviving and supportive. There are many distinct market categories in our target audience. We have high sales projections, with an estimated sales value of Tk 5 million.
Market Description
Approximately 150 million people reside in Bangladesh (Ullah et al. 53). The soft drink market is estimated to have around 20 million consumers, with the number growing daily. We have a nationwide demand for many handy products. These days, people are apprehensive about the state of the market and the products. Therefore, Jaul’s potential consumer base is rising because of its unique features. We identified several consumer categories within the general public that would value our product the most.
Market Segmentation
We categorize our target market into four primary segments based on their geographic, demographic, psychographic, and behavioral characteristics.
- Health-conscious. Sports enthusiasts are one of our most significant target markets for health-conscious consumers. We receive a high volume of prospective customers in this category. The youth of Bangladesh make up one-third of the possible customers. Given their size, we must care for them and provide products that are appropriate for them. Of them, almost 5 million are concerned about their health because they spend an average of ৳500 monthly on medical bills.
- Sick individuals. They are one of our top priorities in the market. More than a million kids get diarrhea and need liquid nutrition. The difficulties of this type may affect both children and adults, so Jaul will be beneficial to them.
- Visitors. Bangladesh receives a sizable number of tourists each year. We want to offer them Jaul to quench their thirst as they tour the country.
- General consumers. In addition to the target market divisions, the general customers will represent a significant component of our target market.
Market Needs
Jaul aims to meet all the needs of its consumers to the fullest. Our priority is to provide our clients with the finest product possible. Due to the diverse consumer segments, we offer three distinct bottle sizes at various pricing points.
- 250 ml: The cheapest size for rural residents in the middle socioeconomic class.
- 500 ml: Its intended use is for tourists and individuals with health issues.
- For a modest family, 1 liter is sufficient.
Competitive Analysis
A high level of competition characterizes the market for soft drinks. Several firms producing soft drinks have gained a significant market share. However, Jaul will have a considerable advantage over the competition due to its distinctive characteristics, mainly because no one has yet considered marketing and selling green coconut water in such a targeted manner. To assess the potential for Jaul in the current market, we have conducted extensive research on the market’s current state, utilizing various methods. The following is a demonstration of the analysis in several forms.
SWOT Analysis
The review of the product’s strengths, weaknesses, opportunities, and threats will determine whether or not it will continue to exist in the future. The company’s strengths include readily accessible raw materials, low production costs, technical and marketing expertise, a robust distribution system, a straightforward manufacturing method, and competitive pricing.
Weaknesses include that it is simple for others to replicate the concept, that the flavor differs from that of natural green coconut water, and that natural green coconut water cannot be maintained for an extended period.
Opportunities include a monopolistic market, a vast market, and a strong demand, in addition to the possibility of obtaining export subsidies from the government. The main threat is that there will be intense competition in the future, as other businesses will likely attempt to replicate the concept.
Pricing Strategies
Jaul is to be sold relatively because of its overall design. When determining the price strategy, several key aspects were considered. The elements that are taken into account before pricing are:
- Determining the price objectives. Our business has chosen how to present its market offering. Our goal is to increase market share. Larger sales volumes will result in reduced unit costs and longer-term profits (Ranjan & Jha 409). Since we believe the market is price sensitive, we have established lower pricing. By lowering prices, we want to get the largest possible market share.
- Estimating demand. Each pricing will result in a different demand, changing the company’s marketing goals.
- Cost estimation. We have calculated the cost and wish to charge a price that includes a fair reward for the work and risk involved in producing, distributing, and selling the product.
- Cost and production level types. Costs come in two flavors: fixed costs and variable costs. The fixed cost for our new product development project is ৳210,000,000. Equipment, monthly expenses, personnel pay, and other fixed costs are included, regardless of production. For example, there are certain variable expenses, like bottle and packaging costs (Ranjan & Jha 409). Per unit of output, these expenses are often constant. For 250 ml, 500 ml, and 1 liter, we calculated that the per unit variable cost is 6.3, 2.6, and 24.4 Bangladeshi taka, respectively.
- Charges, pricing, and offers of competitors. Plan costs ৳10 for a 250 ml bottle, Starship charges ৳12 for a 250 ml bottle, and Pac. 6 charges ৳12.
- Choosing a pricing strategy. We have decided to determine our product’s price using the target costing approach, which begins with an ideal selling price based on client considerations and utilizes a target cost to ensure the price is met.
Distribution Channel
We will use our single distribution channel as our first method of product distribution. We will use dealers to distribute our goods after our market has expanded. Our stores will be located in various marketplaces, ensuring the product is available in every corner of the market (Ranjan and Jha 409). When we begin mass marketing, dealers will assist us in distributing our goods nationwide. Every region of the nation will receive our items through our dealers. Jaul will be available for sale at every retail location nationwide.
Critique and Summary
Jaul is a soft drink offering customers processed green coconut water in bottles. The target costing pricing strategy will ensure that individuals from various socioeconomic backgrounds can purchase our soft drinks. We aim to capture a sizable portion of the market in Bangladesh. We have segmented our market from a demographic, geographical, psychological, and behavioral perspective to include health-conscious individuals, those with illnesses, sports enthusiasts, and many other customers.
Several products today make numerous claims but must deliver on their effects or promises. People purchase these things believing that the advertised benefits will be realized. The Jaul soft drink could fail to win over all the intended customers. It is typical for a market category to exclude certain products. This paper has helped me understand the purpose of a Marketing Plan, which is to articulate a strategy for promoting a brand and growing sales or revenue for any business.
Works Cited
Camilleri, Mark Anthony. “Market Segmentation, Targeting and Positioning.” Tourism, Hospitality & Event Management, vol. 1, no. 1, Sept. 2018, pp. 69–83. ResearchGate.
Chowdhury, Mohammad, et al. “Prevalence of Cardiovascular Disease among Bangladeshi Adult Population: A Systematic Review and Meta-Analysis of the Studies.” Vascular Health and Risk Management, vol. Volume 14, Aug. 2018, pp. 165–81.
Cosguner, Koray, et al. “Dynamic Pricing in a Distribution Channel in the Presence of Switching Costs.” Management Science, vol. 64, no. 3, Mar. 2018, pp. 1212–29.
Ranjan, Amit, and J. K. Jha. “Pricing and Coordination Strategies of a Dual-Channel Supply Chain Considering Green Quality and Sales Effort.” Journal of Cleaner Production, vol. 218, May 2019, pp. 409–24.
Ullah, Mohammad Sharif, et al. “Analyzing and Projection of Future Bangladesh Population Using Logistic Growth Model.” International Journal of Modern Nonlinear Theory and Application, vol. 08, no. 03, 2019, pp. 53–61.