Lip Smacking Beverage Company plans to launch a new strawberry juice product. The marketing objectives are to introduce a new product and gain 10% market share in the first year. Financial objectives include increasing annual revenue by $2000 per month and achieving profitability within two years. The company will target kids, young people and older consumers. Marketing strategies include TV, newspaper and radio ads, product sampling, and sponsoring university sports events. SWOT analysis identifies innovative product and brand as strengths, and increased competition as a threat.

1. Product Plan of Lip Smacking Beverage Company
Lip Smacking Strawberry Juice
JULY 30, 2017
Smacking.com

2. 1
Group Profile
Team Innovation
Student
No
Student Name Student ID Student E-mail
1 Rifat Sikdar 150316009 Rifatsikder097@gmail.com
2 Sujon Miah 150216009 Sujonmiah009@gmail.com
3 Omar Faruq 150316023 Omarf0165@gmail.com
4 Robin Bepary 150316011 Monjur.bepary@gmail.com
5 Simul
Karmakar

3. 2
Acknowledgement:
To complete the assignment we do not deserve all credit. A lot of people guided
us with their valuable advice. They also helped us providing with information
related to the report.
First of all, we would like to give thank to the almighty Allah for helping us to do
the report perfectly.
Then, we would like to thank with humble respect to our course (BUS-301:
Entrepreneurship Development ) teacher Md. Motiar Rahman, Lecturer,
Department of Business administration, University of ZHSUST. His constant
presence and instructions helped us to do our best. It would have been a tough-
task for us to complete this assignment without his guidance. He was so helpful
that she took two special classes in which she gave us instructions about how to
make the report.
Last but not least, we like to thank our seniors, friends and classmates whoever
helped us to complete the assignment.
Though this report is prepared for meeting our educational purpose, it might be
used for other purposes.

4. 3
Letter of Transmittal
30-07-2017
Md. Motiar Rahman
Lecturer,
Department of Business Administration
University of ZHSUST.
Subject: New product of the market (Lip Smacking Strawberry Juice).
Dear Sir,
With great pleasure and honor we are submitting our Assignment titled
Product Plan of Lip Smacking Beverage Company of the course BUS-301:
Entrepreneurship development . The assignment represents business plan
preparation, and financial analysis of the Business Plan of Lip Smacking Beverage
Company. Though this analysis has been prepared for educational purpose, it
will be an effective one to achieve the goal in practical field also.
We have tried our best level to accommodate as much information and relevant
issues as possible and follow the instructions that you have given us.
We would like to thank you for providing us with the opportunity to prepare this
Assignment.
Sincerely Yours,
30-07-2017
Robin Bepary
On behalf of the group.

5. 4
Table of content
Serial
no.
Content Page no.
1. Executive Summary 5
2. Introduction 6
3. Objectives 6
4. Methodology 7
5. Limitation 7
6. Product Introduction 7
7. Marketing strategy 8
8. BCG 11
9. Product market expansion Plan 12
10. Target markets 12
11. Action Programs 13
12. SWOT analysis 15
13. Marketing analysis 16
14. Financial Aspects 17
15. Findings 22
16. Controls 22
18. Bibliography / References 23

6. 5
Executive Summary:
Lip Smacking Beverage Company offers best quality juices with different
packages to customers at a very competitive price. Depending on the market
researcher’s information and considering the growing demand of different
juices, we are going to launch a new juice named Lip Smacking Strawberry
Juice in the market. Although there are other juice companies, We can
compete because our offering is totally new in the Bangladesh market for
which customers will like to pay a bit more price. Our company’s primary
mission is to product quality leadership and afterward market share leadership.
The primary marketing objective is to achieve first year of Bangladesh Market
share of 10% and unit sales of 10,80,000. The primary financial objective is to
achieve first year sales revenues of 3,45,56,000 tk.
We have more clear and specific information about the market and we are also
aware of the customer demand and choices. Based on our Research and
Development department we are
strictly determined to serve our customer needs and wants with a totally new
taste of juice like Strawberry Juice .

7. 6
Introduction:
Lip Smacking Beverage Company started in 2005, which produces Pineapple
Juice, mango juice, orange juice, Lichi Juice etc. We are successful in making
profit of all the products mentioned. To give the customer a new fruit taste
depending on marketing research information of the customer, we have
decided to launch a new juice named Lip Smacking Strawberry Juice . Our
market area is Bangladesh. For the market, our consumers typically are in the
50,000 tk per year on average and higher income range. Competition for our
immediate market is a group of five companies roughly comparable to our
company. Only one of these firms, Pran juice, has an interest in marketing
itself. We believe we rank second in the group of competitors, behind Pran.
Objectives:
Marketing objectives:
The marketing objectives of the company for the product are as follows.
 Introduce new product
 Extend or regain market for new product
 Enter new territories for the company
 Cross-sell (or bundle) one product with another
 Increase number of customers by 5% each month
 Sell up to al least 5000 units on average each day for the first year
Financial objectives:
Financial objectives determined by the company for the product are as follows-
 Increase revenue by at least $2000 per month for the first year.
 A double-digit growth rate within three years.
 Continue to decrease the variable costs associated with juice production.
 To reach the breakeven point within 2nd
year.

8. 7
Methodology:
We collect data and information , internet browsing. We also collect
information about the market and consumer from our own experience.
Limitation:
All data are not available in the internet. More over sometimes company’s
news and information are not accurate that we found in internet, that’s why
we have to judge very carefully that which information is correct and which is
not. We may collect information from the company financial report, their
published magazine. But again, companies are hiding more or less information
about their financial or other sectors information for their own interest. Some
other ways to collect information are market survey and questionnaires,
sometimes people fill up the questionnaire with biasness. So we may not get
accurate information through survey. We may say that, our main limitation is
to depend on assumption because we have no such source from which we can
get accurate information.
Product Introduction:
Lip Smacking Beverage Company started in 2005, which produces Pineapple
Juice, mango juice, orange juice, Lichi Juice etc. We are successful in making
profit of all the products mentioned. To give the customer a new fruit taste
depending on marketing research information of the customer.
We are going to introduce our new product Strawberry Juice , initially in 125
ml, 250 ml and 1 liter bottles. It will be launched in plastic and aseptic packet
and also will be launched in different packages like family, individual package.
According to the survey the target market growth rate is increasing. Our
company estimates that the future market will be satisfied with more
diversified and segmented product. Our target to make new market segments

9. 8
according to customers needs and wants. The customers’ today relative to
yesterday is more sophisticated in a number of different ways.
Food quality: The preference for high-quality ingredients is increasing as
customers are learning to appreciate the qualitative differences.
Presentation/appearance: As presentation of an element of the product
experience becomes more pervasive, customers are learning to appreciate this
aspect of the industry.
Health consciousness: As customers in general are more aware of their health,
evidenced by the increase in individuals exercising and health club
memberships, customers are requesting more healthy alternatives when they
eat out. They recognize that an entree can be quite tasty, and reasonably good
for you.
Marketing strategy:
Our marketing strategy is based on becoming the potential choice for
consumers in the juice market. Our marketing strategy is based on superior
performance in the following areas-
 Product quality.
 Product price.
 Superior test.
 Product Availability.
Lip Smacking Beverage Company’s marketing strategy is based on a
positioning of product differentiation. Our primary consumer target is middle
to upper income earners. Our secondary consumer target is kids, young, and
old persons also.

10. 9
Marketing Mix:
Our marketing mix for the new product Lip Smacking Strawberry Juice is as
follows:
1: Product:
Strawberry juice is a fruit juice made from strawberries. This is a very healthy
and refreshing drink since fresh strawberries are full of vitamin C and
antioxidants.
The new brand name for the new strawberry juice is Lip Smacking Strawberry
juice.
Lip Smacking Strawberry Premium, Classic, and kids’ choice juices are unique
because of their taste and flavor. They are nutritionally rich, available in 125ml,
250 ml, and 1000 ml hygienic non-returnable bottle, tin canned, aseptic pack.
Product design and package for non returnable bottle (250 ml)

11. 10
2: Price:
We established the price of new product Strawberry Juice with the concept
from cost based pricing.
Lip Smacking Strawberry Premium
250 ml – 22 tk, 1000 ml – 75 tk
Lip Smacking Strawberry Classic
250 ml – 18 tk, 1000 ml – 48 tk
Lip Smacking Strawberry Kids choice, 125 ml – 12 tk
3: Place :
Our distribution strategy would be indirect marketing channel and intensive
distribution. We will primarily use our existing distributors for distributing our
new product Strawberry Juice in Dhaka city. Then, we will make some new
channels and assign some distributors to promote our new product to all over
the country. We will try to make available our new product in departmental
stores, general stores, super markets through our committing distributors.
4: Promotion:
The most successful advertising and promotion would be through the
following:
Television Advertisement: NTV, Channel I, ATN Bangla, RTV, and
CSB News which are the most popular television channels in the country.
Newspaper Advertisement: The Prothom-Alo, The Janokantho, The Jugantor,
The Daily Star, the Independent etc.
Radio : Bangladesh Beter, BBC Bangla Service

12. 11
We will also use some bill-boards and we will hold a sport event in various
universities and colleges for the young generation to promote the product. We
will conduct campaign to offer free sample to the consumers in various
departmental stores, general stores, super markets universities and colleges.
BCG:
The figure of growth share matrix is shown:
Lip Smacking Beverage Company’s occupies the place of Star. So, Strawberry
juice is usually profitable. It has high market share and high market growth rate.
This product is absorbing a high level of cash to support increasing advertising,
sales coverage, sales support and additional machinery.

13. 12
Product market expansion Plan:
Lip Smacking Beverage Company’s has already used the product matrix policy of
market penetration for Strawberry juice. Product matrix of Lip Smacking
Beverage Company’s expansion options are given below :
Market penetration:
A strategy for company is growth by increasing sales of current products to
current market segment without changing the product quality.
Market development:
A strategy for company growth by identifying and developing new market
segments for current company product.
Product Development:
A strategy is for company growth by offering modified or new products to current
market segment.
Diversification:
The strategy is for company growth by starting tip or acquiring business outside
the company's current products and markets.
The company is trying to develop market development growth strategy for
Strawberry juice.
Target markets:
There target markets are separated into three segments. The segments are
kids, young, and old. The segment details are as follows-
Kids:- The kids are a large portion of the population. According to our
marketing investigators, kids are the second major consumer of juice. They like
different tests and colors and according to market research kids are going to
love our new product Strawberry Juice because of its different testiness.

14. 13
Young:- There is a large portion of the population occupied by the young
people. According to the marketing investigation most of them like juice and
they appreciated our new product. As young generation is the highest
consumer of this type of product, they are our one of our potential customer to
serve.
Old:- Old are another portion of the population. Old are most careful and
sophisticated consumer and are most concern about the price, health issues,
and the quality. We think they are also our potential customer.
Action Programs:
Lip smacking strawberry juice will be introduced to market in October. Here
we have shown the summarized action programs. We will use during the first
six months to archive our stated objectives.
September:
Our product will launch in October therefore we will initiate consumer sales
promotion in September. At the beginning of the month, we will arrange a
meeting for the suppliers, distributors and some specific customers.
We will provide them T- Shirt with our product and brand name. At the
meeting, we will arrange questions and answer sessions to about the market
affects and proper suggestions. We will talk about our product quality, product
development as well list of the distributors.
October:
We hope with in the 2nd
week of- this month we will launch our product. We
will have a grant product launch event and our product will be launched by a
reference group like Cricket player Mr. Ashraful with opinion leader. We hope
we will try to sell about 3000 units per day in this month.

15. 14
We will offer samples of strawberry juice for free and at a low price in
different departmental stores, general stores, super markets universities and
colleges.
For sample pieces, we will offer 250ml of Lip Smacking Strawberry Juice and at
the same time we will start our advertising through through different ways.
November:
We will complete our distribution process in Dhaka city within November and
increase frequency advertising in television and increase the number of
billboard advertising. We will hold a sport event in various universities and
colleges for the young generation to promote the product.
December:
Observing the situations, at this stage we will introduce 1000ml bottle for the
consumers and for small family. And this month our product will be available in
almost every shop.
January:
After doing our successful operations of three months, at the fourth month, we
will give extra benefits to the distributors and sellers to improve our sales. We
hope we will be able to sell about 5000 units per day in this month.
February:
Observing and analyzing we will take necessary actions to develop product
sales and increase our profit. We can easily understand the marketing position
of our product. If we learn that our condition is suitable then we will make
divisional distributors to distribute to the whole country. Side by side we take
control over it in necessary. In this way we will continue our production and
give a particular image to the mind of every customer.

16. 15
SWOT analysis :
The Research and Development (R&D) department found some major strength
and weakness for the new product Strawberry Juice of the company.
According to the R&D department, the SWOT analysis of the product is
described below.-
Strengths
 Innovative Product- completely new taste and flavor
 Strong brand name among juice companies in Bangladesh.
 Excellent, stable and trained staff for customer service.
 Strong relationships with suppliers that offer high-quality ingredients and
fast/frequent delivery schedules.
 High quality ingredients and raw materials
 Strong distribution channel in the target market area
Weaknesses
 Sudden change of the company’s economic situation.
 Price is higher than competitors
 Scarcity of raw material
Opportunities
 Unique concept-Competitors currently are not offering Strawberry Juice
 High growth rate in our target market.
 Change in container or product classification can be our opportunity.
 Existing channels of our existing product can be used.
 Increasing sales opportunities in take out business.
Threats
 Increased competition – Too many potential competitors in the industry
 Trend changes – If trends related to market growth go down, then our
business may suffer.

17. 16
 Economical, political and technological factors of the country may be
threatening for our product.
 New entry of similar juice company can offer Strawberry Juice with very
little price to beat our price.
Marketing analysis:
Potential Competitors’ Review
Competition in juice market is very intensive. There are approximately 7 or 8
companies in the industry and there are 10 to 15 brands available in the
market. Competition in the area of juice market can be differentiated through
test and flavors. The main categories of tests and flavors in the existing juice
market are Mango, Orange, Banana, Guava, Pineapple, Coconut, Fruit Cocktail
and the existing competitors and brands areAcme Agrovet & Beverage Ltd.
Pran Dairy Limited, Akij Food & Baverage Ltd. Shezan juice, Starship, Arong,
Denish.
An analysis of the three major potential competitors is given below:
Acme Agrovet & Beverage Ltd.
Using the experience of manufacturing ethical medicine, ACME ventured to
establish The Acme Agrovet and Beverages Ltd. in 2005. Primarily it started
with a small range of products like ACME mango and orange juice, which is
followed by the introduction of ACME mineral water. Currently The Acme
Agrovet and Beverages Ltd. is pondering to introduce a wide range of
products, some of which are under process of development. Its Juice products
are packed aseptically using the unique Tetra Pack technology ensuringlonger
shelf life, no deterioration during shelf life, and free of preservative related
side effects
ACME Premium and Classic mango, and orange juices are unique because of
their taste and flavor and available in 150ml, 250ml, and
1000ml hygienic UHT packs.

18. 17
Financial Aspects :
Estimated total cost
Particular TK.
Fixed
1. Land
2. Building
3. Honey tank
4. Motor
5. Bleeding tank
6. Ammonia pipe
7. Refrigerator
8. Laboratory
9. Pasteurizing
Current
1. Technology setting cost
2. Contingency
3. Other cost
Total
Employees and labor cost
1200000
2600000
50000
100000
150000
50000
75000
20000
150000
100000
50000
50000
5645000
816000

19. 18
Raw materials Working capital Tk.
1. Fat cream 2000kg
2. Milk powder
3. Container
4. Sugar
5. Can, cup and stick
6. Wrapping paper
Total
1500000
1200000
21000
90000
200000
100000
3300000
Utilities Tk.
1. Electricity
2. Gas
3. Water
4. Fare
5. Stationery
Total
300000
100000
50000
40000
25000
515000

20. 19
Source of Capital:
 Own fund 60%=58899600
 Bank loan 40%= 3926400
Projected Gross and Net profit:
Particular 1st
yr 2nd
yr 3rd
yd
Sales 9000000 9600000 10500000
Manufacturing cost 4355000 4355000 4300000
Gross profit 4645000 5345000 62000
Administrative cost:
Loan interest 12% 471168 471168 471168
Depreciation: 20000 20000 20000
Net profit (before tax)
Tax 10%
Net profit
3337832
333783
3004049
3937832
393783
3544049
4892832
489283
4403549
Cash flow:
particular 1st
yr 2nd
yr 3rd
yr
sales 9000000 9600000 10500000
Manufacturing cost 4355000 435000 4355000
interest 471168 471168 471168
Total out flow 4826168 4826168 4826168
cash balance 4173832 4873832 5673832
9000000 9600000 10500000

21. 20
Lip Smacking Beverage Company
Bala e sheet
De e er,
Fi ed assets: r
st
r
d
r
rd
r
Buildi g
- Depre iatio
Curre t assets :
Other fi ed Assets
Stored goods
A . Re ei a le
Cash
Capital a d lia ilit :
O er’s fu d
Lo g-ter loa
Short ter loa
A pa a le

22. 21
Pran Dairy Limited.
The deliciously natural and sweet taste fruit juice is derived from the local
orchard during the harvest to Ensure the freshness and quality of the juice.
It gives natural pulp squeezing fresh fruit, vitamins; mineral and other
ingredients make the juice refreshing, natural and nutritious. Its Juice products
are packed in Returnable Bottle, Aseptic, and Tin canned, Non-returnable
bottle.
Pran Premium and Classic mango, orange, Banana, Guava, Pineapple,
Coconut, Fruit Cocktail juices are unique because of their taste and flavor and
available in 65ml, 125ml, 200ml, 250ml, and 1000ml.
Akij Food & Beverage Ltd.
Akij Food & Beverage Ltd. has been established at a beautiful site Krishnapura,
Dhamrai of Dhaka. It has come with the best food & beverage in Bangladesh.
There are various types of drink. Mojo is the brand name of cola, Lemu is the
brand name of Lemon and Speed is the brand name of energy drink.
Immediately after the introduction of the brand it became very
popular among its consumer because of the high quality and intensive
distribution in every nook and corner of the country.
Akij Food and Beverage Ltd, a concern of Akij Group, yesterday launched in the
local market three varieties of fruit juice under the brand name Frutika .
The three varieties of juice — mango, red grape and red orange — are already
available in shops in 250ml PET bottles with prices ranging between Tk 20 and
Tk 22.
Akij Food and Beverage installed state-of-the-art machinery, imported from
Germany, to manufacture the juice. Frutika juices have zero preservatives and
no artificial colouring, which helps maintain the pure taste of fruit in these

23. 22
products. Akij Food and Beverage Ltd import mango pulp from India and pulp
of other fruits from Germany to manufacture the juices.
Findings:
Our marketing research department found the opportunity to provide our
customers a new test through juice. The juice industry already contains a wide
range of tastes and flavors in juice. But we found that there is no juice in the
market like Strawberry Juice . Our marketing research department surveyed
the market and found that there are potential buyers for our product which
will satisfy their needs. So, we have the opportunity to enter the market and
fulfill the gap. We are going to offer Strawberry Juice with a very reasonable
price so that customer can easily get it at their convenience. Lip Smacking
Beverage Company seeks to fulfill the following benefits that are important to
its customers.
Accessibility: The customer can gain access to our product at their
convenience.
Customer service: The customer will be impressed with the level of attention
that they receive.
Competitive pricing: All products/services will be competitively priced relative
to competitors goods.
Controls:
From the very beginning we will keep an eagle eye on our consumers’
perceived value. We are planning tight control measures to closely monitor
quality and customer service satisfaction. Our company’s goal is to satisfy our
customer through superior value so our control standard should also be
consistent with our goal. After every month we will evaluate our marketing

24. 23
plan and measure this with the standard. This will enable us to react very
quickly in correcting any problems that may occur.
Conclusion:
In conclusion we can see that, the product the company is going to launch has
a bright future in its market. As the product is innovative, the consumers are
going to appreciate it. And according to the R&D (Research and Development)
department this product will be a strong product in product line of our
company.