1.

0 Executive Summary
LIO is a manufacturer of authentic foods including ketchup. Our products will be positioned at the high end of the market in terms of both quality and price. What will start as a business targeting solely authentic community will grow into a business which will have far broader appeal. LIO has several objectives that it will achieve within the next three years. The first is an increase in sales reaching two million dollars by Year 5. LIO also would like gross margins to be above 55%. LIO also hopes to have 40 different outlets that will distribute the product. Lastly, they aim to become known as the premier authentic Modern food producer in the area with an ever-expanding geographic distribution area. LIO has targeted three main customer groups to sell their products to. The first group is grocery stores. The grocery stores will then sell directly to the end consumer. This segment will be growing at 22%. The second group is wholesale distributors. This segment will have a 100% growth rate with 5 potential distributors. The last customer segment is restaurants which have a 45% growth rate. There will be about 18 potential restaurant customers. As mentioned before, LIO originally targeted the Modern community. The market has indicated that their products have broader appeal and LIO has recognized this and will act accordingly. The Modern community is initially targeted because of its exciting growth rate. The community has been growing at 22% a year, almost double the average of the overall BD population. While there are many competitors at the mid price point, both regional and national, there are few direct competitors at LIO high price point. This is quite advantageous for LIO, providing them with additional breathing room to establishing themselves as the premier brand of authentic Modern food. The financials within the plan further reinforce the exciting nature of this business.

Highlights
Tk.300,000 Tk.270,000 Tk.240,000 Tk.210,000 Tk.180,000 Tk.150,000 Tk.120,000 Tk.90,000 Tk.60,000 Tk.30,000 $0 Year-1 Year-2 Year-3

Sales Gross Margin Net Profit

2.0 Situation Analysis:

We have been selling at the rate of Tk.1, 50,000per month to local restaurants, small grocery stores and distributors of foodstuffs. LIO is currently awaiting approval for a large grocery chain to carry our products, and has received a commitment from a large distributor to sell from Tk.2000000 to Tk.3500000 of product per year. There are several other large grocery chains that have been approached and are in various stages of interest in carrying the LIO line of product.

2.1 Customers:
While there are many items from various vendors available, LIO has approached the market as a Specialty Retailer: a provider of authentic high quality modern food. We have made significant inroads with several area restaurants and a small grocer's, each providing us with a market presence. We are now looking at developing our own store front as an adjunct to our current marketing. There is a need for a specialty retailer catering specifically to the Modern client and to the individuals that appreciate authentic Modern cuisine.

In addition to the above, we are also looking at packaging our products for other groups to use for fundraising events, gift baskets for corporate promotions, and the possibility of a house restaurant to further advertise and promote the products.

We are initially focusing on the Modern community. They will be able to appreciate more readily the authenticity of the product. The market will observe the products they choose, and they will indirectly become promoters of our products.

2.2 Competitors:
There are many suppliers of ketchup and similar products currently available on the shelves at your local grocer. However, there is still a lot of room for new products and new companies. By positioning ourselves at the higher end of the market, we expose ourselves to consumers trying to get out of the rut, who continue to use a product that they have long forgotten why they buy. By not trying to compete head on, we are selling our product

consistently and increasingly. With entrance into some of the larger grocery chains we will broaden our audience considerably.

Although LIO is staking out the high end of this market, we cannot fail to be compared with some of the current leaders in this arena. PRAN & BD Foods are just a few of the participants in this segment. Most have been on the shelf for so long they are taken for granted by the consumer. Our fresh approach to authentic taste and texture makes us different.

2.3 Company:
LIO is in its third year of operation, increasing sales five-fold in its second year, and is on track to repeat this in its third year. It has a good reputation, excellent people, an increasing position in the local market, and opportunities to reach out into other states. Starting with a few outlets for our products, we now have over 40, with two large grocery chains in the approval process of carrying our full line of products, and a large distributor intending to sell over Tk. 100,000 worth of our products annually. Currently we have one location in suburban Gazipur. It includes the production area, offices, and warehouse area. We are currently looking into plans to increase the size of the warehouse by adding a location, and providing a store front to enhance the current business sales practices, while providing a high quality, ethnic outlet for modern foods.

2.4 Context:
Our business will be following a simple rule of thumb. The image below will show the context of our business:

3.0 Marketing Opportunities & Issues:

We are in a highly lucrative market in a rapidly growing economy. We foresee our strengths as the ability to respond quickly to what the market dictates and to provide quality ketchup in a growing market. In addition, through aggressive marketing and quality management we intend to become a well-respected and known entity in our respective industry. Our key personnel have a wide and thorough knowledge of the local manufacturing market and expertise, which will go towards penetrating the market. However we acknowledge our weakness of a medium-sized company without a lot of experience, and the threat of new competition taking aim at our niche. Below are the summarized strengths, weaknesses, opportunities and threats.

Strengths

Strategic market segmentation and implementation strategies. Diversified market segments: ensuring the lack of dependency on one particular market.

Combination of skills in directorship. The directors intend to jointly develop business strategy and long-term plans, having wide experience in product and business know-how.

An aggressive and focused marketing campaign with clear goals and strategies.

Weaknesses Lack of a reputation in comparison to our competitors. The introduction of new organizational practices and personnel who have not previously worked together presents a challenge to the company. A limited financial base compared to the major players in the industry. Lack of clear-cut channels of distribution.

Opportunities Specific niche: Appreciation for high-quality ketchup, enjoyment, and refreshment (and integration therein). The new generation of individuals and families has a far greater appreciation of attractive packaging (image conscious).

Increasing number of foreign firms.

Threats The present growth in the market may result in market saturation, through competition. This competition could emerge from a variety of given sources including: Established mass-market companies' development of new lines and vertically integrating so as to be totally in control of supplies and products being sold on the respective markets. New marketing strategies and tactics by established products and companies. Existing competition.

4.0 Objectives

Increase sales significantly over the next three years. Improve gross margin % over the current product line and maintain that level. Add products and services to meet market demand, again at high gross margin. Improve inventory turnover; reduce the cost of goods sold while maintaining the high quality of the products.

To provide jobs to the community that are rewarding and fulfilling.

5.0 Marketing Strategy:

We are focusing on the consumer first through grocery exposure, and then impacting them through restaurants and other food places. Promotion Strategy The long-range goal is to gain enough visibility to leverage the product into other distribution sites within our region, then to move on to other geographical regions as inquiries and distribution requests come in. Although our current contacts in the grocery chains are for local consumption, they all move out of this region in their normal distribution. It is our goal to move with them. Distribution Strategy To this means we have been continually reworking our packaging for better corporate identity, providing a more attractive package, a very important ingredient in the food industry. An example is the recent addition of bar-coding and nutritional information to our label. Pricing Strategy We are able to price our products competitively. Even though we are subject to some impulse buying, we can provide a product to be resold at a generous mark-up for our dealers, while still providing a satisfactory experience for the consumer. At a retail range of Tk.140 to Tk.210 per jar of ketchup, we cover the mid-to-upper price range of the ketchup market, while providing a 33% margin for the dealers.

6.0 Target Markets:

We are initially focusing on the modern community. They will be able to appreciate more readily the authenticity of the product. The market will observe the products they choose, and they will indirectly become promoters of our products.

The market analysis shows us a broad range of prospective clients, covering more than one ethnic group or body. The largest of these groups of customers is that of the mainstream Bangladeshi, which is projected to grow at 12% per year. The fasting growing segment is modern, which is projected to grow at 22% per year.

7.0 Positioning:
Product positioning strategies are numerous, and the selection of one over another is crucial to how our company will market its products or services. Selecting the wrong strategy can cost lost time and a scarce marketing budget. The ramifications of a wrong choice will also probably adversely affect our business's bottom line. Taking a logical approach we have selected the following two positioning methods. Significance Positioning our product is simply defining who we are in the customer's eye. We attempt to create an image or identity of our product and usually position our product relative to other competitors in the market. Types Functional positions solve problems and provide consumers with benefits. If our bottle is made of environmentally friendly ingredients, it appeals to a symbolic position to the consumer values. It will help the consumer boost his self-image and provide social meaningfulness.

8.0 Marketing Mix:

To create the right marketing mix, businesses have to meet the following conditions:

The product has to have the right features - for example, it must look good and work well.

The price must be right. Consumer will need to buy in large numbers to produce a healthy profit.

The goods must be in the right place at the right time. Making sure that the goods arrive when and where they are wanted is an important operation.

The target group needs to be made aware of the existence and availability of the product through promotion. Successful promotion helps a firm to spread costs over a larger output.

Our company is constantly developing new modern food, especially ketchup. The product is the central point on which we must focus. Finding out how to make the product, how to set up the production line, provide the finance and manufacture the product is not the responsibility of the marketing function. However, we are concerned with what the product means to the customer.

The appearance of the product - in line with the requirements of the market The function of the product our products must address the needs of customers as identified through market research.

Product

Available in different variants: LIO Ketchup LIO Hot & Sweet Sauce, LIO Masala Chili Sauce, LIO Chili Garlic Sauce, LIO Tamarind Sauce.

LIO Tomato Sauce (without onion & garlic), LIO Tomato Ketchup (with onion & garlic).

The product is bright red in color.

The thickness is less as compared to others.

Promotion

We will promote our product very effectively through television We will apply the strategy of brand extension. We will also sponsor various cookery shows to promote alternate usage of products.

We will use strategy of free product samples to promote it. Celebrity endorsements.

Place
The distribution network will be well spread as it will be available easily in all wholesale stores, retail store etc.

Price
LIO ketchup will be priced at Tk. 140(1 kg bottle with 20% free offer) and Tk. 210(family pack bottle).

9.0 Marketing Organizations:

We will be marketing our product through different channels. While current brand names carry more weight in the marketplace, because of our unique marketing approach using local restaurants, and displaying and demonstrating our wares in local grocery stores, we will be able to build consumer awareness at a margin of the cost of television and radio advertising.

In going to food fairs, neighborhood festivals and the like, we will build consumer awareness and generate demand at the same time. While at these events we will also able to directly research the market and hear first-hand what the consumer is seeking.