Marketing Plan: Dilson Cigarette, Scud Tobacco Bangladesh

Table of Content:
Executive Summery Objectives Key to Success.

Strategy and Implementation Summary Current Marketing Situation SWOT & Issue Analysis Marketing Strategy Positioning Pricing Distribution Advertising and Promotion Marketing communication Marketing Research

Action Program Financial Projection Implementation Control Break-Even Analysis Conclusion

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Marketing Plan: Dilson Cigarette, Scud Tobacco Bangladesh

ScudTobacco Executive Summary

SCUD Tobacco Bangladesh (STB) - is one of the well-known tobacco companies of Bangladesh that was established on May 12, 2008 and generally produces cigarettes and biri. It is situated at Tejgaon, Dhaka. The company produces STRINGS and MOUNTAIN cigarette and SOROL biri. STB recently has produced a new tobacco product DILSON cigarette along with other existing goods & supply to the market for smokers.

STBs mission is to hold the target market & increase customers by providing DILSON cigarette. Scud Tobacco is committed to offer extra flavor to fulfill the taste of consumers. Nevertheless the customer will get at a reasonable rate.

Scud Tobacco faces stiff competition mainly from the following well-established tobacco companies: British American Tobacco (BAT), and Dhaka Tobacco. Those companies have made a strong brand image to the customers. However we believe we have specific strengths that will enable us to compete head on with these ventures. We plan to stay flexible on our pricing scheme as long as we are breaking even in our first two years.

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Marketing Plan: Dilson Cigarette, Scud Tobacco Bangladesh

Objectives
Scud Tobacco has established 5 firm objectives it wishes to achieve in the next three years:

1. To start making profit by 2011 2. Develop enthusiastically satisfied customers all of the time. 3. Contribute positively to our communities and our environment. 4. Net income more than 13% of sales by 2012. 5. To increase the amount of customers by supplying the product according changing demand of customers-thus earns profit. to the

Keys to Success The success of STB will be accelerated by the following key elements 1. The greatest locations - visibility, high traffic pattern, convenient access. 2. The friendliest servers - cheerful, skilled, professional, articulate. 3. The finest reputation - word-of-mouth advertising, promotion of our community mission of charitable giving.

Strategy and Implementation Summary: Scud Tobacco Bangladesh (STB) will focus mainly on City Corporation and other closer areas but also will try to get attention of the people live in other geographical market.

Our target customers are usually the young generation, especially young university going students, and office goers and also the public in general.

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Marketing Plan: Dilson Cigarette, Scud Tobacco Bangladesh

Current Marketing Situation STBs competitors are organizations that fulfill the particular need (Core benefit) of the customers which our product is providing. Over the past few years, quite a number of tobacco companies have come across the country. We have identified the following competitors according to the market point of view.

Competitor BATB Dhaka Tobacco Akij Tobacco Royal Tobacco Nasir Tobacco

Position Held Market Leader Market Challenger Market Challenger Market Follower Market Nicher

Opportunity and Issue Analysis: As a start-up business, Scud Tobacco is still in early stage. The critical issues are for Scud to: i. Pursue controlled growth that dictates that payroll expenses will never exceed revenue base. This will help protect against recessions. ii. Constantly monitor customer satisfaction. Ensuring that the growth strategy will never compromise service and satisfaction levels.

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Marketing Plan: Dilson Cigarette, Scud Tobacco Bangladesh

SWOT Analysis:
Strength: Extra flavor that will fulfill the taste of customers & will be available in every region at comparatively low price. Weakness: Unconsciousness of product among the customers, capital shortage, and we cant scatter our product in the remote place. Opportunities: There are available of raw-materials. Threats: Percentage of nicotine about 0.08 that may be the cause of creating less demand of the product & the other competitors can through same type of product at lower rate than us.

Marketing Strategy
Scud Tobacco Bangladesh (STB) is placed in a location very highly visible and of great ease of access. STB will rely on building relationships with university students, middle and upper class earner and to provide significant free publicity because of its community support program and by giving charitable contributions to different community. another source of promotion. In addition media will be

Positioning: Scud tobacco will position itself as the premier aftermarket Tobacco Company. This positioning will be achieved by leveraging Scuds goods on competitive edge; new energetic, innovative employee and passion. The Scud tobacco is such a company whose management is able to use its vast knowledge and personal passion for the tobacco to develop innovative, useful product or a wide range of tobacco companies.

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Marketing Plan: Dilson Cigarette, Scud Tobacco Bangladesh

Pricing Strategy:
STBs goods will be priced at upper edge of what the market will bear, competing with the other cigarette brands. The pricing fits with the general positioning of STB as providing highlevel expertise and best cigarettes around the country.

Distribution: There are some distributions channels by which we can deliver our products to the customers: Direct Retail Dealers Distributors Intermediaries Availability of supply in every location. Available supply with orders. Initially, Scud Tobacco will use a direct-to-consumer distribution model. Over time, it will use other channels.

Advertising and Promotion:

In the first year Scud Tobacco Bangladesh plans to spend around 3, 00,000 Tk. on advertising and promotion. Newspaper and magazines will be developed and published for promotion.

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Marketing Plan: Dilson Cigarette, Scud Tobacco Bangladesh

Customers should be offered with various special cigarette boxes marketed by STB and these should be priced in base of per product retail price. STB special boxes should be priced in the similar basis.

Marketing Communication:
The marketing strategies will seek to first create customer awareness concerning the offered products and services and develop the customer base. The message that Scud seek to communicate is that offers the best quality and the ingredients of it are less harmful for health. We provide the least nicotine 0.08. We provide communication through various methods. The first is web-site. That is www.scudewu.co.cc.

We will provide a rich source of product information and offer consumers the opportunity to purchase. Next we go through advertisements placed in numerous industry magazines. Personal process to create awareness among target customers. Use in film, serial or by posters. Publicity to the university students.

Marketing Research:
We are very lucky of being located in the central zone of Bangladesh. It will be able to leverage this opportune location by working with many of the different tobacco company that live in the area. Though it is a new company the extensive product testing by a huge variety of users provided our product with valuable feedback and has led to several design improvements.

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Marketing Plan: Dilson Cigarette, Scud Tobacco Bangladesh

Action Programs
STB plans to hold test events for customers on a quarterly basis a year. Each quarter, at the introduction of each season, STB will be adjusting its ingredients to reflect the exchanges the flavors served.

Smoking coupon- At fundraising events for generals especially university students, we will be giving away smoking coupons as door prizes or awards. This encourages the person and young guys bring their friends or buy the package of our premium products. We will also be distributing coupons for special items or new product introductions.

Financial Projection:
The annual sales projection for DILSON cigarette is included in the table next page.

Table: Sales forecast of SCUD tobacco

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Marketing Plan: Dilson Cigarette, Scud Tobacco Bangladesh

Sales Dilson cigarette

2010 4500000

2011 5500000

2012 6500000

Total sales

4500000

5500000

6500000

Cost of Sales Dilson cigarette

2010 3560000

2011 4500000

2012 5400000

Subtotal direct cost of sales

3560000

45000000

54000000

Break-Even Analysis: DILSON Cigarette

Fixed cost = tk. 50000 (per month) Variable cost = tk.25 (per packet) Expected Production = 50000 packet (per month) Total cost = fixed cost + variable cost = 50000 + 25q = 50000 + 25 * 50000 = 1300000 (per month) Total cost (yearly) = 1300000*12 = 15600000 Revenue = cost + profit = 15600000 + (15600000 * 5%) = 15600000 + 780000 = 16380000 Profit after one year = 780000
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Marketing Plan: Dilson Cigarette, Scud Tobacco Bangladesh

Implementation control:
If our goals and budget are spelled out for each month or quarter, management Will take following corrective measure: o Management will review the result monthly and take corrective action. o Monitoring the distribution channel whither they are active or inactive.

All other companies are providing the same service as we are providing to our target customers. If we are not attentive to our objectives they can take our place. This is why we think they could be very much challenging to us.

Conclusion:
There is no doubt that Dilson Cigarette; Scud Bangladesh will bring lots of excitements to the Bangladeshi people, especially to the youth. We promise our franchisor and our customers to maintain the highest standard and to serve with the best you can imagine!

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