At the very outset I want to congratulate our honorable course teacher Dr. Riazur Rahman Chowdhury to give me a chance to preparing a Feasibility Plan of a New Product. It has been a great honor for us to take part in such a prestigious opportunity. I express our gratitude to all the well wishers who supported me all the time with their helping hands.
I want to market Green Coconut Water. I have prepared this feasibility plan on that basis. I have assigned a name for the product as “Jaul”. Since the raw materials are very much available in our country, we have decided to give the product an indigenous image. Jaul is a kind of soft drink that provides the consumers with processed green coconut water in bottles. For the marketing purpose of the product we have decided to launch three product lines. The Jaul would be launched in the market at 250 ml. 500 ml. and 1 Litre bottle. I have set a reasonable price for the product so that all kinds of people can afford to buy this soft drink. I have followed the Target Costing pricing approach. I would gain a competitive advantage, as this is a first hit in the market. I have targeted a huge market segment for the product. Bangladesh is a large populated country. Lots of people are looking for such a product. Green Coconuts are not available all the time. For example: a person walking on the street. Suddenly he feels thirsty. Now if he wishes to drink green coconut water he cannot find it easily. It is not always found in the right place at the right time. If we launch our product in the market, a person willing to drink green coconut water can have it from a nearby shop. At present this is not possible. Our target market includes health conscious people, sick people, sportspersons & many other consumers, which we have segmented from the Demographical, Geographical, Psycho graphical & Behavioral point of view. I have prepared a financial documentation for this feasibility plan of a new product. As we are introducing the product in three categories at 250 ml, 500 ml and 1 Litre bottles, I have prepared the Break-Even-Analysis for each of the product line. I have prepared the feasibility plan for five-year basis. For 250mls the break-even point is at 4158004 Units. That means if I sale 4158004 Units a year, I will make neither profit nor loss. So to make profit I have to create a market demand in such a way so that more than 4158004 Units are sold every year. Obviously the unit cost will eventually come down because of the law of Marginal Cost. Then the break-even point will also come down. But that is from the long run perspective. So initially we might suffer loss but ultimately I would earn enough profit. The consumers will first taste the product by consuming the 250ml bottles. So I might gain a short run profit from that. For 500mls the break-even point is 4914004.914 units per year. So I have to sell more than 4914004.914 units to earn profit. I know that after the product is well promoted, people will eventually consume more of 500mls, as pet bottles are more in demand. The price is such that people will turn to the 500mls because I am providing them at lowest possible market price. For 1 Litre bottles I have a different plan. I know many people are not going to consume the 1 Litre package. So I have assigned more profit on them per unit. Our target is to sell less quantity of products but achieving higher profit. For 1 Litre bottles I have estimated the break-even point at 1724137.931 bottles per year. As I can see, I have prepared the selling price in such a way so that, to be in a profit earning zone I have to sell least amount of units comparing the other 2 product lines. I have given an elaborate discussion on financial summary at the later stage of the feasibility plan. I have followed the Target Costing Pricing Policy; which means an ideal price is set first based on customer considerations, then target costs will ensure that the...
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