MKT 470
MKT 470
MKT 470
Section: 06
Submitted to
Sherina Idhrish
Submitted by:
Members:
SL No. Name ID
24 Afnan Sayed 181-1431-630
19 Samman Rahman 172-1906-630
22 Arefin Rahman 173-1837-030
23 Mumin Rahman Khan 173-1838-030
8 Ashfak Islam Abir 163-1562-030
4 Mashiwiyat Tabassum 161-0567-030
9 Twasin Tasawar 163-2468-630
6 Farha Sikder Elvy 162-0948-030
Contribution Table
SL. Name ID Contribution Topic
24 Afnan Sayed 181-1431-630 SBU’s current and recommended TG,
PRIZM TG, Target Market Strategy,
Product Disruption, Instagram Facebook &
IGTV, Snapchat, YouTube Campaigns.
Integrated PR Strategies (Pre, Main &
Post), Corporate Social Responsibility
19 Samman Rahman 172-1906-630 Company, Industry Overview, Problem
with SBU, Marketing 4Ps Turnaround
Strategy, Growth Strategies, Chasm
Strategy, New Positioning, Array of Brand,
IMC Objectives, Contact Points, TVC, Print
Media, Relationship Marketing Strategies
22 Arefin Rahman 173-1837-030 TOWS Analysis, Disruptive Pricing
Strategy, Offensive and Defensive
Strategies
23 Mumin Rahman 173-1838-030 SWOT Analysis, Disruptive Distribution
Khan Strategies, Letter of Transmittal
8 Ashfak Islam Abir 163-1562-030 Porter’s Five Forces, Innovation Adoption
Curve, Major graphical tasks and visual
contents, Mobile App Features
4 Mashiwiyat 161-0567-030 Dedicated Website, Major IMC Content
Tabassum Designs, Physical Evidences, Offensive and
Defensive Strategies.
9 Twasin Tasawar 163-2468-630 PESTLE Analysis, Media Mix Table,
Integrate PR Strategies, Corporate Social
Responsibility
6 Farha Sikder Elvy 162-0948-030 PESTLE Analysis, Chasm Strategy, New
Value Proposition, Offensive and Defensive
Strategies, Infographic of the product.
iii
Acknowledgement
Firstly, we would like to thank Almighty Allah for giving us such an opportunity and strength
to complete the entire report on time. Next, we are very much thankful from the core of our
heart to our respected faculty, Sherina Idrish ma’am, who gave us such a valuable opportunity
to do this report. We would like to thank her for the guidance and support that she provided us
and motivated us. The blessings and advice given by her shall help us to go a long way in the
future.
We would also like to extend our sincere gratitude to all of our members. They all have equally
participated to complete the report. Hopefully, our work reflects our combined efforts.
iv
Letter of Transmittal
Senior Lecturer
Bashundhara, Dhaka.
Dear Ma’am,
It is our great honor to present you the report on "Growth Strategies of Farm Fresh". As part of
the Strategic Marketing course, we have prepared this paper. We have given our utmost effort
to follow the criteria in order to make this report up to the mark by applying the knowledge we
have learned from the course. There might be a few shortcomings from our part. We would be
thankful if you consider those from forgivable positions.
Sincerely yours,
Executive Summary
Dairy is one of the fastest-growing industry in Bangladesh. Currently, there are approximately
14 different brands responsible to cater to the needs of consumers. Farm Fresh of Akij Food
and Beverage Limited is one of the prominent names in the industry. However, the market is
still dominated by a handful of strong competitors such as Arong, Pran, Milk Vita etc. Farm
Fresh being only 14 years old company has yet to achieve substantial market share. The report
outlines how the company can be turned around to achieve a competitive advantage. As part
of their turnaround strategy, Farm Fresh has been consulted with a number of strategies
throughout the report including Diversification and Product Development. The new product
Farm Fresh has been suggested is a Probiotic Drink that the company will launch under Farm
Fresh Organics as a multi-brand strategy of the SBU. The new product will essentially be
targeted to health-conscious demographic of their TG as it contains numerous health benefits.
The current line of products of Farm Fresh will also undergo certain changes. A contraction
strategy will be adopted by the company to decrease their focus from products with the lowest
sales and highest alternatives such as their Ghee. Moreover, the packaging of their existing
products will also go through significant changes to make them more appealing to the Target
Audience.
Lastly, the report will outline a number of promotional campaigns and tools that can be used
to market their new Probiotic Drink as well as their existing products. The company will use a
mix of ATL, BTL, TTL Digital Marketing, Relationship Marketing, Sales Promotion etc. to
increase its visibility in the market as well as facilitate trials of the new product.
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Table of Contents
Contribution Table .....................................................................................................................ii
Acknowledgement ................................................................................................................... iii
Letter of Transmittal .................................................................................................................iv
Executive Summary ................................................................................................................... v
Part 1. Company and Industry Overview ................................................................................... 8
1.1 The Industry Analysis: ................................................................................................ 8
1.2 The company overviews.............................................................................................. 8
1.3 The SBU overview: .......................................................................................................... 9
1.4 PESTEL Analysis: .......................................................................................................... 10
1.5 Porter’s Six Forces Industry Analysis ............................................................................ 13
1.6 SBU’s current Consumer Profile .................................................................................... 16
1.7 Overview of the SBU’s present 4Ps ................................................................................. 1
1.8 SWOT and TOWS Analysis of the SBU .......................................................................... 3
Part 2. Recommended Strategies for the SBU ........................................................................... 7
Problem with the SBU ............................................................................................................ 7
The new product ..................................................................................................................... 7
The New Marketing Mix ........................................................................................................ 7
2.1. Turnaround strategy ......................................................................................................... 8
2.2. Growth Strategies ............................................................................................................ 9
2.3 TG profile in PRIZM format .......................................................................................... 10
2.4 Target market strategy .................................................................................................... 10
2.5 Product Disruption .......................................................................................................... 11
2.6 New value proposition .................................................................................................... 12
2.7 Innovation adoption curve .............................................................................................. 13
2.8 Chasm Strategy ............................................................................................................... 14
2.8 New positioning .............................................................................................................. 16
2.9 Array of Brand ................................................................................................................ 17
Part 3. Disruptive Pricing Strategy .......................................................................................... 18
3.1 Dolan’s 8 Stages of Pricing Strategies ........................................................................... 18
3.2 Bundle Pricing and Retailer Price Check ....................................................................... 21
3.3 Price changes in Current Offerings ................................................................................ 24
3.4 Bowman’s Strategy Clock for Price vs Perceived Quality ............................................. 25
Part 4. Disruptive Distribution Strategies ................................................................................ 26
vii
Bangladesh currently has around half a dozen commercial milk processing brands operating in
different parts of the country. The companies experience more than 10 lakhs litres of milk sales
every day which is double the amount they used to sell even a decade ago. Consumers are also
now more concerned about food safety which further raised the demand for packaged dairy
items. There are currently more than 1,200,000 dairy firms in the country with more than 10
million people directly or indirectly involved with this industry ("The Bangladesh Dairy
Market: Times of Change", 2021). The availability of farmers and livestock have contributed
to the growth of this industry significantly.
There are currently 14 companies that are registered under BSTI who have the license to
produce and sell pasteurized dairy products. The leading players in the industry are Milk Vita,
Aarong and Pran. According to secondary research data, the three companies alone have more
than 80% of this industry’s share leaving only 20% to its competitors including firm fresh and
local businesses. Although international brands are yet to enter the Bangladeshi market with
liquid dairy products, Brands like New Zealand Dairy, Arla Food, nestle have penetrated the
market with their powder-based milk (Uddin, 2021). To compete with the international players,
only milk Vita and Aron have their own dedicated production plant for milk powder but yet to
get a competitive edge in the powdered dairy industry.
market capitalization of worth $250 million. From drinking water to confectionery, AFBL has
achieved exceptional success in Bangladeshi market which has let the company to enter the
dairy industry with Farm Fresh, a strategic business unit of AFBL. The company has achieved
numerous recognitions in its lifetime including the Best Brand Awarded BSTI, ISO
certifications for maintaining quality("Akij Food & Beverage Ltd.", 2021). The company
promotes, innovation, teamwork and integrity which has helped them achieve their vision to
be the most respected food and beverage company in Bangladesh. It also has a good reputation
in being involved with multiple CSR activities for the wellbeing of its society and environment.
S3: Increase in Health and label- S3: +ve | Farm Fresh has the
conscious customers opportunity to differentiate 5 5
itself by positioning as a
health-conscious brand.
12
L2: Food safety and security L2: -ve Food safety law has 5 5
law increased the food quality and
maintenance expense.
Environmental EN1: Available natural EN1: +ve Bangladesh has a 5 5
resources- Cattles huge number of cattle that make
up for such a large dairy industry
EN2: Climate change affects EN2: -ve Season flood and other
milk production unfavourable climatic condition 4 4
affects the productivity of dairy
industry.
13
Unimportan Important
1 2 3 4 5
Uncertain
Access to distribution:
Distribution channel is very
sensitive and hard to build but +2
Farm fresh already has an
established distribution channel.
-2
Informational complexity:
Brands are aware of each other.
Threat of substitutes Value Intermediaries Value
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Attitude: Indifferent
Location: Gender: Female and Male
Dhaka, (primary female)
Lifestyle: Tv opposing
Chittagong,
moderates and unexcited
Comilla, Income: Upper middle, middle
romantics.
Sylhet,
Working lifestyle
Bogra, Family Size: Family with
Follows conscious diet
Rajshahi, children,
Family oriented
Jessore, Single parent, extended family
Khulna,
Personality trait: Gregarious in
Mymensingh Occupation: Varied
the sense of being sociable,
caring, and family oriented
Preference: UHT packet milk,
Arong, Milk Vita, Pure milk
from Gowala
Behavioral
Farm Fresh currently has four different products in their portfolio. Their products include UHT Milk,
Yogurt, Ghee and Butter. Among the four different products. The milk has four different variants
including the traditional milk, UHT milk, mango flavoured milk and chocolate-flavoured milk. The
yoghurt has three variants of their own including regular sweet curd, sour card and a low-fat curd. The
regular milk comes in 500 ML and 1 L package whereas their Ghee comes in 400 and 900-Gram
containers. Farm Fresh Butter is sold with a 200gram packages containing four cubes of 50gm butter.
The packaging colour of the brand has their signature blue theme to represent the brand identity.
Place:
Farm Fresh distributes its products through traditional grocery stores as well as super shops. Online
delivery platforms like Chaaldaal and telegram is also one of their major distribution channels. Initially
the company distributed to metropolitan areas only. However, it has expanded to most of the northern
and southern urban regions of Bangladesh. To increase visibility, the company also maintains a dedicated
website and Facebook page to showcase their products
Pricing:
Farm Fresh has a competitive pricing model. Considering the line items of the company is not long, a
table is provided below to showcase their prices.
Promotions:
Farm Fresh Dairy currently has a number of promotional activities on different channels. However, most
of them promoted their brand in general irrespective of specific products. Besides traditional TVC and
OVC, the company primarily engages with its customers through social media. The official Facebook
page of the company has 203,522 followers. To showcase product usage, Farm Fresh holds engaging
social media campaigns among which their recent ‘Weekly New Recipe’ was a successful promotional
event. The company also advertises their products in print media through major newspaper channel
including Prothom-Alo, Daily Start etc. As a part of relationship marketing, farm Fresh had hosted t
children’s Day campaign in 2019 where the company arranged a contest for the children to engage with
the brand.
3
people through its display in retail urban and suburban areas to remove the
stores and regular marketing threat of greater salience of rivals’
campaigns. products by running extensive
advertisements and giving incentives to
the retailers so that they give attractive
display to Farm Fresh products in their
stores.
7
Farm Fresh is primarily suffering in the dairy industry due to the increasing number of competitors and
lack of differentiating factors in their products. Some of their me-too products including the Farm Fresh
sour yoghurt or Farm Fresh Ghee is not doing well in the market because of the strong presence of the
substitute brands. So, indicators such as Declining market share and Uncompetitive products are evident
in the case of Farm Fresh. Brands like Red Cow, Milk Vita, Aarong have significant popularity in the
packaged Ghee market of Bangladesh and The Packaged Sour Yogurt market is also dominated by
Aarong. In such a competitive environment, product variation is an inevident solution for Farm Fresh.
Farm Fresh will be launching a new product called Probiotic Smoothie using multibrand strategy under
the name as Farm Fresh Organics. The Bangladeshi consumer market is increasingly health-conscious and
demand for healthier alternative items are on the rise. Ideal examples of this shift can be noticed by seeing
the growth of products such as Green Tea, Rice Bran Oil, Olive Oil, Keto Supplements etc. While the
traditional yoghurt market still has a number of players, no other brand in Bangladesh is yet to produce
Probiotic Smoothies for the health-conscious demographic. Probiotic products promote a healthy balance
of bacteria in the human body and carry a number of benefits including weight loss, better digestive and
immune system etc. Extensive promotion will be carried out to promote the products and communicate
about its health benefits to make it an integral part of the TG’s breakfast meal.
Product: Farm Fresh will keep the majority of its existing products excluding its Ghee which is one of
their lowest demanded products. As a part of their turnaround strategy, Farm Fresh will bring new and
exciting flavours to their existing yoghurts including the jaggery flavoured yoghurt. The new product that
will be introduced under Farm Fresh Organics will be their Probiotic Smoothie targeted to health-
conscious demographic. The product will come in 3 different flavours at first including Strawberry,
Mango and Blueberry. The company will follow a sustainable packaging for their Probiotic Smoothie
lineup with paper-based packaging. The product will be available in 200 and 500 ML packages. The
company will also make changes to the packages of their current line of products including their UHT
Milk, Yogurt and Butter to make them look more appealing to the existing and new target audience.
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Price: Prices of its existing products will be unchanged. However, the price of their Probiotic Smoothies
will be as BDT 39 for 200 ML and BDT 80 for 500 ML
Place: Farm Fresh Organics will be available for sale in all the major supermarkets across Dhaka and
other Urban locations inside Bangladesh. The products will have a dedicated fridge installed in major
supermarkets at its initial phase to increase its visibility and facilitate the first trial process. It will also be
made available through all the major online delivery channels as well as their dedicated website.
Promotion: Both ATL and BTL promotions will be carried out throughout the launch process of Farm
Fresh Probiotic Smoothie. From traditional media, Television advertisements and Print Media will be used
to inform the mass audience about the launch of their new line of products under Farm Fresh Organics.
Social Media platforms including dedicated Facebook and Instagram pages will also be used to promote
the items. Celebrity and Fitness icons of Bangladesh will also be contacted to endorse the products to the
relevant target audience. Affiliating with health and fitness brands such as Lean Nation will also be
ensured to communicate a consistent message of how the Probiotic Smoothie can contribute to a healthier
diet plan.
When a survey was carried out asking the As a part of their consolidation strategy, Farm
respondents to pick the products they know from Fresh Dairy brand will follow the multi-brand
the brand, 95% of them voted that they knew about strategy and introduce a new premium line of
Farm Fresh Milk, Yogurt, Butter etc. However products under Farm Fresh Organics that is aimed
only, one person bought Ghee from the brand. to cater to a health-conscious demographic. Both
Farm Fresh Ghee is one of their highly challenged of their identities will be merged under the same
items as the market leaders have a significant SBU.
popularity in these categories as well as a stronger
distribution channel. Thus, decreasing their focus
from this product can help the company put more
focus on the Farm Fresh Organic line of products
that is aimed at a healthier lifestyle.
9
Farm Fresh’s introduction of Farm Fresh Organics to introduce a healthier line of products will fall under
Concentric Diversification as Directional Growth Strategy and Diversification and Product Development
under Ansoff Matrix.
Concentric Diversification: Through the introduction of the Probiotic Smoothies under their Organic
line of products, Farm Fresh will follow Concentric Diversification strategy by doing multibranding of
different product segment in the same meta market which is the dairy industry. Farm Fresh Organics will
be especially catering to the market that seeks for healthier diet options.
Product Development: Under Farm Fresh Organics, the brand will introduce Probiotic Smoothies in four
different flavours. During the pandemic, the market has seen a latent demand for nutritious convenience
goods, and to meet that demand, the probiotic smoothie can serve as a promising product.
Diversification: Unlike the regular dairy industry which essentially caters to the Mass Market, A probiotic
smoothie will not be in the best interest of the same mass market. Thus, a new market needs to be
developed that has a latent demand for healthier diets along with the new product. Thus, Farm Fresh’s
growth strategy under the Ansoff Matrix will fall under diversification. Although targeting a new market
carries its own set of uncertainties, there is also a chance of a higher payoff from this strategy. A detailed
description of the target market will be provided below.
Penetration: New variants and quantities will be added to the current UHT milk and yoghurt category.
The packaging will also have some changes to give the products a better outlook.
10
Currently, Farm Fresh carries UHT milk, butter, ghee. We are proposing a new product line that will carry
probiotic smoothie. Since these products have such varied use, and as they are convenience products,
Farm Fresh as a whole should follow the Selective Specialization strategy. The Bangladeshi market is
very price-sensitive when it comes to convenience goods since they have to buy them regularly, so
selectively specializing will give Farm Fresh the scope to differentiate the market carefully based on
consumers' needs. Moreover, this strategy allows to diversify risk, and since the chance of convenience
goods becoming unattractive is high, the company will still have the scope to make profit from other
segments.
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Multibranding
Another form of disruptive strategy will come in the form of a multi-branding under the name Farm
Fresh Organics. This new line will carry a brand-new product for Farm Fresh which is Probiotic Smoothie,
and it will be available in four different flavours in a completely new packaging. This new packaging will
be eco-friendly as well.
Aside from having our regular line of consumer products, we will be working with a new premium line
of products that will set the brand apart from the current brands in the market.
products.
Bowling Alley:
As a part of Farm Fresh’s bowling alley strategy, the company should consider making Shakib Al Hasan
their brand promoter as he is one of the most influential opinion leaders in the entertainment industry.
Considering that the new target audience of Farm Fresh will essentially be the people from young to
middle-aged health-conscious individuals, they can resonate with our all-rounder in an effective manner.
Although Mr Shakib has endorsed multiple brands in the last decade, he is not currently under any
contract for a beverage brand. Promoting Farm Fresh through Shakib Al Hasan can create a strong
perception of the brand in the consumer’s mind to perceive it as trustworthy and healthy. Moreover, his
official Facebook page that has roughly 11 million followers can also be utilized by having Mr Shakib
post weekly fitness tips videos sponsored by Farm Fresh keeping Farm Fresh Probiotics Drinks as a part
of his diet plan.
15
Invasion Force
In order to cross the chasm curve and start educating the pragmatic target audience, Farm Fresh should
consider partnering with brands that are relatable and idolized by its TG. The company can partner up
with several brands for its mass products as well as the organic line of products. For mass products
including their pasteurized milk, yoghurt and flavoured milk, popular retailer shops such as the Shawano
and Unimart can be chosen where the company will provide a dedicated fridge labelled under Farm Fresh
to keep Farm Fresh Dairy products. It can also put a banner in front of the entrance of the retailers with
teaser advertisements of the new Farm Fresh Organic Probiotic Smoothies. This strategy will create a
temptation within the pragmatics to give their new product a chance.
Farm Fresh can also partner with health and fitness-related brands like Lean Nation to include a pack of
Farm Fresh Probiotic Smoothie with every meal from Lean Nation that are essentially targeted to health-
conscious consumers. Co-Branding with the brand can reinforce the perception it aims to create in the
consumer’s mind which is to be perceived as a healthy beverage product. Farm Fresh can also partner
16
with airline companies to include their probiotic smoothies with the in-flight meals to increase product
visibility and facilitate trials for potential TG.
Audience and Context: People who want to lead a healthier and active life by eating well, and also being
conscious about how their choices affect the environment.
Point of Difference:
Unique packaging
New flavors
Convenient price
Action Components:
Functional benefits: Fresh pasteurized dairy products, healthy nutrients, different flavors and quantities,
convenient packaging, easy to purchase, easy to use.
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Emotional benefits: Improves lifestyle, supports sustainable methods, strengthens family bonds.
Positioning Statement: Bringing the finest dairy products at a convenient price while also implementing
sustainable solutions.
Farm Fresh will follow a Branded House strategy where the brand will capitalize on its well-known brand
reputation and launch its sub-brand keeping the main brand name in focus. To launch the probiotic
smoothie, Farm Fresh will introduce a sub-brand in the market under the title Farm Fresh Organics that
will list all of its healthy milk-based products. Introducing the new sub-brand will provide Farm Fresh
with the option to launch more healthy items in the future and associating the product with words like
‘Organics create a perception in the TG's mind to perceive it as healthy.
New Logo: The current logo of Farm Fresh reflects the direct association of the brand with local farmers
of the country as they are the main distributors of Farm Fresh. However, the new target group will require
a much more intuitive logo for them to associate with the brand. Thus, Farm Fresh should improvise their
logo as per the following:
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Farm Fresh, the potential Strategic Business Unit (SBU) under Akij Food & Beverages Limited is serving
its target groups of consumers at a competitive price and trying to stay relevant in the market with the
offerings. However, due to the competitive nature of the market leaders in the dairy industry, Farm Fresh
must take strategic initiates in order to hold its successful position in the market. In order to do that, we
are deciding to make minimal changes in the pricing of the current offerings and also introduce a new
product under the SBU to accumulate a new mass of consumers. Thus, important Pricing Strategies, Price
Changes and Price vs Perceived Quality Positions of the current and new products will be discussed in
details.
2. Value-Based Pricing: refers to the different prices set by a brand depending on the variation of
products, target group, location, etc. in terms of the new product namely Farm Fresh Organics Probiotic
Smoothie, the brand will use Product Line Pricing under Product Mix Pricing Strategies and
Psychological/ Reference Pricing and Customer Segment Pricing under Price Adjustment Strategies. The
details will be mentioned below:
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Product Line Pricing: refers to different pricing strategy for different product lines of the brand. As
Farm Fresh is introducing a new value-added product under Farm Fresh Organics as an extension to
their current product offerings and is intended to serve the target groups from the urban and suburban
areas, the brand aims to set a bit higher price in order to minimally separate the products from the
current offerings and TG.
Psychological/ Reference Pricing: refers to setting prices in lower than a total number in order to
convince customers that they will have to pay a lower amount. For Farm Fresh Probiotic Smoothie,
the psychological pricing is mentioned below:
Customer Segment Pricing: refers to setting different prices for products that have the same cost of
production for specific demographic, geographic, psychographic or behavioural segments. The
Probiotic Smoothie will be sold at a 10% discounted price to the students. The brand will mention to
the retail stores that if the customers show their student ID, then they will get 5% discount. The
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discounted price will encourage the target consumers to essentially buy in big quantity in order to
achieve a higher price reduction and also include the drink as their weekly consumption plan.
3. Price Sensitivity: In general, Bangladesh is a very price-sensitive market. Especially, for products that
are used on a regular basis, consumers will definitely become rigid in terms of prices. The price sensitivity
of consumers depends on who pays for the products, the percentage of the total expenditure, end-users,
comparison habits, etc. Keeping these in mind, Farm Fresh Organics will sell the Probiotic Smoothies in
a competitive price because the company understands that purchasing probiotic smoothie on a regular
basis will take a significant percentage of their total expenditure. Thus, the brand will ensure the quality
of the product but offer to the valuable consumers at a competitive price.
4. Customer Costs: refers to the costs of maintaining strategic accounts against the Return on Investment
(ROI) of the brand. Farm Fresh Organics will focus on investing on the butterflies and true friends type
of consumers and attract them through launching advertisements based on relationship marketing. It will
avoid any investments on the strangers and barnacles king of customers because Farm Fresh Organics is
a new brand with new products and it cannot consider of any negative ROI for such consumers.
5. First vs Repeat Purchase: includes stimulating the number of purchases by consumers through
offering benefits for repeat purchases. In order to increase the buying frequency of the consumers, Farm
Fresh Organics will offer the consumers “Immunity Card” which will allow 10% discount on the 4 th
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purchase of Farm Fresh Probiotic Smoothie, 200ml Pack of 6. The pack will contain two strawberry
flavours, two mango flavours and two blueberry flavours of Farm Fresh Probiotic Smoothie.
6. Emotion: Transparent Pricing/ Offer: includes maintaining clearness in terms of charging prices
and giving offers. The brand will not charge any hidden prices for the products. Along with the production
and expiry date, the Maximum Retail Price (MRP) will be mentioned explicitly, ensuring full
transparency of the price of the product. The brand assures not to charge a price higher than the consumer
surplus and give any unpleasant surprise to them because it will eventually raise questions on the brand’s
credibility and lose consumers trust and loyalty.
7. Competitor’s Reaction: Price War: indicates having a competition in terms of prices among the
rivals in the same industry. In the Bangladeshi consumer market, companies have not yet launched a
probiotic smoothie. Farm Fresh Organics have strategically set a competitive price, aiming to achieve
price and cost leadership in the food & beverage industry with the new product. The company wants to
gain a greater profit margin by achieving economies of scale after stimulating a high demand from
consumers for the Probiotic Smoothie. It has kept a competitive price so that it becomes difficult for the
rivals to enter the market. But realistically, the company expects the entry of competitors with their
strategies to combat the situation created by Farm Fresh Organics. Thus, the company will also be ready
to take corrective measures against the competitor’s reaction with offensive and defensive strategies.
8. Point of Sales: refers to companies ensuring consistency in pricing and other services in every point
where channels communicate with the consumers with the company’s offerings. As Farm Fresh Organics
Probiotic Smoothie will be availed in hundreds of retail stores, super shops, e-commerce websites and its
own mobile app, the brand will monitor that all stores charge the same price. It will have employees in
the field and also mention a mobile number in all stores so that the loyal customers can eventually become
agents of the company and let them know if they face any inconvenience and inconsistency in terms of
prices or another service.
Situation 1: Total Units of Farm Fresh Organics Probiotic Smoothie (500ml, Mango Flavor) in stock=
600 units
Buyer 1 has demanded for 500 units, Cost/Unit= BDT 39, Price/Unit= BDT 79
Situation 2: Total Units of Farm Fresh Organics Probiotic Smoothie (500ml, Mango Flavor) in stock=
1470 units
Buyer 2 has demanded for 1450 units, Cost/Unit= BDT 39, Price/Unit for 1 st 500 units= BDT 79, 2nd
400 units: BDT 74, 3rd 300 units: BDT 69 and last 270 units: BDT 66 where opportunity cost (next best
offer) is BDT 67/unit for 200 units from another offer maker named as Buyer 3. Buyer 2 is ready to
purchase any quantity of units (within his/her quantity range) as long as the price is matched to his/her
offer.
Situation 3: Total Units of Farm Fresh Organics Probiotic Smoothie (500ml, Mango Flavor) in stock=
1850 units
Buyer 4 has demanded for 1850 units, Cost/Unit: BDT 39, Price/Unit for 1st 500 units: BDT 79, 2nd 500
units: BDT 76, 3rd 500 units: BDT 71, last 350 units: BDT 67, where the opportunity cost (next best offer)
is BDT 70/unit for 200 units by another offer maker named as Buyer 5. Buyer 4 will purchase entire
1850 units or else will cancel the full order.
400 39 74 35 35*400=14,000
300 39 69 30 30*300=9,000
70 39 66 27 27*70= 1,890
23
= 44,890
Buyer 4 500 39 79 40 40*500= 20,000
=64,300
Explanation
Situation 2: As Buyer 2 is ready to accept any quantity, the company will sell the last 70 units to him/her
at BDT 66/unit making BDT 27 profit/unit and will sell the rest 200 units to the Buyer 3 at BDT 67/ unit.
This will ensure greater profitability for the brand.
Calculations:
In situation 2, the company has 2 options with the last 270 units.
Option 1: Sell all 270 units to Buyer B
Total Profit= (66-39) *270= BDT 7,290
Option 2: Sell 70 units to Buyer B and 200 units to Buyer C.
Total Profit= (66-39) *70 + (67-39) *200= 1,890 + 5,600= BDT 7,490
The company will go with option 2 because the profit of BDT 7,490 is greater than BDT 7,290 and sell
the quantity to Buyer 2 and 3.
Situation 3:
The clause says that Buyer 4 is not flexible with the quantity. Hence, the company will sell to the offer
maker with the highest profitability
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Calculations:
The company will go with option 1 because profit of BDT 64,300 is greater than BDT 6,200 and sell to
Buyer 4.
Ranking the buyers in terms of total profit
If Farm Fresh Organics allow bundle pricing, there is a high tendency of gaining more profit than selling separate
products. The company will take Rank 1 as it the most profitable situation compared to all. In situation 3, Buyer
4 will purchase 1850 units of Farm Fresh Organics Probiotic Smoothie (500ml, Mango Flavor) and the company
will make a profit of BDT (40*500 + 37*500 + 32*500 + 28*350) from the buyer which will be most profitable.
This indicates that the company will focus on selling in bulk and making more profit by setting bundle prices for
the retailers.
In terms of pasteurized milk, Farm Fresh currently offers the product in two sizes: 500ml and 1000ml in
BDT 34 and BDT 63 respectively. People consume milk on a daily basis. By considering the consumption
25
pattern of milk, Farm Fresh will launch Farm Fresh Pasteurized Milk in 3L gallon packaging at BDT
180.
Farm Fresh Sour Yoghurt is sold in multiple retail stores around Bangladesh in 500 gm at BDT 72. But,
the yoghurts of other competitors have more control on the retail stores and therefore, Farm Fresh Sour
Yoghurt cannot be explicitly seen in stores. In order to avoid this threat, Farm Fresh will modify the
packaging of the sour yoghurt pack by adding quick yoghurt recipes in the packaging paper. And so, the
brand will charge a new price of BDT 75 for 500 ml for the new packaging.
Position 2 (Low Price): Farm Fresh positions itself by serving the current products as medium perceived
quality with low price. It positions itself to be the low-cost leaders in the market by serving generic
products to the target market. This indicates that Farm Fresh is incorporating price leadership because
the generic products are sold to the mass market at a competitive price. However, in order to expand the
profit margin, the company will make packaging changes of Farm Fresh Sour Yoghurt, introduce
variance such Farm Fresh Sweetened Yoghurt in Jaggery Flavor and Farm Fresh Pasteurized Milk in 3L
gallon packaging.
As per the launch of the new product namely Farm Fresh Organics Probiotic Smoothie, the brand will
use the following position:
Position 3 (Hybrid): Farm Fresh Organics will position the product Farm Fresh Organics Probiotic
Smoothie by offering high perceived quality at a competitive price. As the Bangladeshi consumer market
is price sensitive, especially in terms of regular usage items, the brand will offer differentiated product
26
with various features and benefits at a reasonable price. It aims to attract the consumers from different
demography, urban and suburban areas and encourage them to increase the usage frequency.
Farm Fresh
Factory
Distributors
Retailers
Farm Fresh is conducting their business for many years through using Multi-Channel Distribution
Structure to deliver their offerings to the end-users. The convenience products such as pasteurized milk,
UHT milk, ghee, sour yoghurt, sweetened yoghurt, butter, chocolate and flavoured milk are availed in
the online and offline stores through using multiple Channels. Farm Fresh sells the products under the
SBU in the corporation’s e-commerce website which is dedicated for the Akij Food & Beverages which
is named as Akij E-Commerce. Through distributors, the products are sent to the e-commerce websites
such as Daraz, Chaldal, Evaly, super shops such as Shwapno, Meena Bazar, Unimart, Agora, and small
to medium-sized retail stores in every part of Bangladesh. The distributors are the intermediaries who
transfer the goods from Farm Fresh to the nearby retail stores based on the demand of the products.
Eventually, the retailers convey the Farm Fresh products to the end-users.
Similarly, using Multi-Channel Distribution Structure, Farm Fresh Probiotic Smoothie will be sold to the
end-users. The mobile app of Farm Fresh and e-commerce website of the brand will act as the direct
channel and deliver the products to the consumers. Furthermore, the Probiotic smoothie will be availed
in all e-commerce websites, super shops, and retail stores in order to ensure maximum exposure of the
products to the users. The brand will allow a greater profit margin to the retailers so that it acts as an
incentive to showcase the Farm Fresh products more visibly compared to the competitors.
Selective Distribution Strategy: In the introductory stage of the new product under the name Farm Fresh
Probiotic Smoothie, the brand will initially use Selective Distribution Strategy by availing the products
in selective areas. The brand will use a direct distribution channel to deliver the products in specific retail
stores and super shops to minimize the cost. The reason for using this distribution strategy is that the
company wants to see the consumers’ reaction and response to the new product and also minimize
expenditures. Later on, Farm Fresh Organics will implement intensive distribution strategy by availing
the products in every possible contact points of the consumers to grab a massive number of consumers
and eventually gain a good amount of market share for the brand.
28
Reach
Affiliatio
Range Navigation
n
Richness
The target audience is mentioned under the new customer profile table.
Trial 30% 30 % 45 % 45 % 20 % 20 %
Duration: 1 Year
(Owned pm to till
Media) 11 pm)
(Paid
Protho n/a Front and 1 in 6
Media)
m Alo Lifestyle each months
page week
Broadcasting TVC on major television channels such as NTV, Bangla TVC, Radio
(TV and Vision will be broadcasted to communicate the benefits of Commercials.
Radio) the new drink.
Print Media Print advertisements will be posted on daily newspapers Print Ads
including Daily Star and Prothom Alo. The advertisement
can take a strategic spot under the fitness section to promote
the benefits of probiotic smoothie.
Digital Facebook: A dedicated Facebook page under Farm Fresh Digital Marketing
Marketing Organics will be created to promote the probiotic smoothie / Interactive
as well as other future healthy drinks. The contents of the Marketing
page will be targeted to people who want to lead a healthy
lifestyle. Celebrity endorsement through fitness influencers
such as Nazia H or RJ Taj can also create a positive
impression of the product in the minds of the customers.
Interactive Farm Fresh can improvise its website to make it more Interactive
website and interactive and user friendly. The website should have a Marketing,
Mobile App separate section for the Organics and Regular products. Mobile
Marketing.
It will also have its own Android and IOS App that will
feature an option for customers to get diet suggestions based
on their weight goals.
Activision Free trial demonstrations at major universities and corporate Sales Promotion,
houses will be arranged for potential customers to taste the Direct Marketing
product.
PR and Sales Point of Purchase Displays: Display sales promotion will be Sales Promotions
arranged in retailers, universities etc.
Support Media Billboards on locations like Uttara, Banani, Satmosjid Road Sales Promotion
etc can increase the product visibility.
Advertising appeal: The TVC will use both rational and emotional appeal to attract the consumers. The
launch timing for the probiotic smoothies is set for Ramadan of 2021 during April. Thus, A TVC will be
designed to showcase Farm Fresh Probiotic Drink as an alternative to traditional Rooh Afza or Labang
that is a common household fast breaker drink during Ramadan. The TVC will first showcase a family
iftar gathering where a traditional red drink (Rooh Afza) is served. During the dine-in time, A concerned
individual will try to demonstrate why it is important to make the first meal of the day healthy and how
traditional flavoured milk is detrimental to health. After the demonstration, Farm Fresh probiotic drink
will be demonstrated showcasing all of its benefits and how it can be an excellent fast-breaking beverage.
38
Execution style: The TVC will be executed using both Comparative and Demonstration techniques. It
will showcase the comparison of Farm Fresh Probiotic Drink with the existing fast-breaking alternative
beverages that Bangladeshi households are traditionally accustomed to. On the other hand, The TVC will
also have a demonstration of the functional benefits of the product such as #OnlyHealthyBacteria
#InstantEnergytBoost. It will emphasize on the fact that fasting for a long day drains out our bodily energy
that needs to be reenergized with a healthy beverage and not any flavoured syrup or powder.
Timeline
Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
39
Print Media
Major newspapers will be used to promote Farm Fresh and showcase their new probiotic smoothies. An
integrated and consistent message will be shared across both TVC and Print Media considering both of
them are targeted for a mass audience. Thus, the Print Media advertisement will also showcase the
benefits of Farm Fresh products over traditional fast-breaking breakfast. The advertisement can also
showcase their yoghurt to explain why
Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
40
Instagram
Farm Fresh will post digital contents about their products in direct post and stories. They will collaborate
with one of the most popular Instagram based fitness instructors Nazia H (username: naziahfit) for a
workout session where she will be promoting Farm Fresh probiotic smoothies. These workout sessions
will be uploaded in IGTV. They will be posting all the updates about their activities and the web series
also.
In the survey, younger participants responded to using social media such as Facebook, Instagram,
Snapchat, and also watching YouTube. However, the matured respondent only responded to being active
on Facebook, and being an avid YouTube viewer. Hence, Farm Fresh will be utilizing Facebook and
YouTube the most, but still have active engagement with consumers via Snapchat and Instagram. Since
the reach is wider, and links are easily shared more on Facebook and IGTV, we will run our web-series
on Facebook and IGTV. The web-series will let the viewers have a peek at the day in the life of the likes
of Nazia H, RJ Tazz, and other prominent fitness figures. The show called ‘Follow the Fitness Journey’
will have a 10-minute short video each week where a regular day of one fitness influencer will be shown.
Throughout their day, they will be requested to drink Farm Fresh Probiotic Smoothies or have Farm Fresh
product-based meals on camera to show how Farm Fresh can be a part of a healthy diet for anyone. The
purpose of this web series is to create a perception in the viewer’s mind that Farm Fresh cares for their
physical wellbeing and show demonstration on how Farm Fresh Product can be used to prepare healthy
meals throughout a day that will give the viewers enough energy to go about their day. The campaign
will run for one month showcasing multiple fitness influencers during the four weeks. The official Farm
Fresh Facebook and Instagram page will release a teaser and trailer of the web series to create a hype
among the viewers prior to releasing full episodes.
42
Besides that Facebook and Instagram will also regularly post static and interactive content about different
variants, and offers.
43
44
Snapchat
The personalities who will be featured in each web-series will be taking over Farm Fresh's Snapchat
account and will be posting exclusive behind the scene footage and other fun snippets from the show.
The viewers will be given a chance to be featured in the next episodes alongside their favourite artists,
and to avail of the offer, they will have to swipe right and download the app and simply fill-up a form.
From that, lucky winners will be chosen.
YouTube
Farm Fresh will be sponsoring episodes of different Bangladeshi Food Channels such as Banglar
Rannaghor, where they will be incorporating various Farm Fresh products for preparing delectable meals.
They will also have special promo codes, using which consumers can get discounts on their purchases
from the app.
45
Besides that, Farm Fresh will buy contextual ad space in popular food blogger’s videos such as ‘Petuk
Couple.’ These ads will be 5 seconds skippable ads that will encourage the users to purchase Farm Fresh
products. The ad will also have a QR code that will redirect the users directly to the website for
convenience purchase.
46
Pre-Event
To generate a buzz around our new product line Farm Fresh Organics, we will have banners around
universities and bus stands that will keep the consumers guessing about a new product, and the content
will focus on depravity of energy and have emotional appeal. Besides that, we will offer a point of
purchase displays in different retail stores, specifically around the cereal and milk aisle, that will have
the same message.
To remind the consumers about the brand Farm Fresh itself, just before the launch, we will also have
bonus packs with our regular products such as, where they will get the new variance of Milk and Yogurt
with the regular ones.
47
Main Event
Farm Fresh will sponsor the Futsal tournament through which it will also launch the Probiotic smoothie.
All the participants will get the 200 ml product, and there will also be a kiosk that will be giving away
samples of the products. For general students, arrangements will be made for various fun activities, and
contests and three lucky winners will get a self-liquidating premium on Weinbrenner shoes from
BATA. The reason for going with this particular brand is because we want to keep reminding the
consumers of an active and healthy lifestyle, led by a healthy diet.
48
We will make sure that the press covers the event, and the highlights will be published as SEO PR content
on Prothom Alo's 'Khelar Khobor' section and Daily Star's 'Khela.'
Post Event
For the post-event, Farm Fresh will run the first TVC for the Probiotic Smoothie, with the message ‘এই
রমজােন অ া কর পানীয়েক না বলুন’. Besides that, it will run different digital marketing campaigns
through our web series, influencer collaboration to turn the consumer's conviction into a purchase, and
establish a behavioural shift that energy-boosting smoothie means Farm Fresh Organics Probiotic
Smoothie.
At the retail stores, students can purchase any farm fresh product with a 5% instant coupon if they show
their valid student ID. Additionally there will be an ‘immunity card’ system, which after filled, will act
as a 10% bounce back coupon for future purchases.
Support Media
A support media in the form of a smoothie trolley will also be active for a month after the launch in urban
cities such as Dhaka, Chattogram where customers will be able to try out the smoothies on a scorching
hot day from Farm Fresh Trolley.
49
Farm Fresh, from its inception, has always emphasized cattle farmers and relied on them for the fresh
produce they supply. So, to further strive for the cause, we will launch an initiative CSR under the name
"Farmers Empowerment Program."
Through this program, the farmers' community of Bangladesh will receive different workshops that will
focus on modern, innovative, and cost-effective ways of farming and cattle rearing. Through Farm Fresh's
Facebook page, they will regularly post content about individual farmers and their life stories as well.
50
Farm Fresh will primarily have four different flavours in their probiotic smoothies as well as the flavoured
milk line. However, providing customization options at a small scale can increase their overhead cost
significantly. Nonetheless, the brand can still provide a customized taste of their products by partnering
with popular milkshake brand Moolicious by being their milk partner. Customers of Moolicious can create
their own customized drink using Farm Fresh Milk within Moolicious outlets. They can also avail 10%
discount on all of the customized milkshakes if they put an honest review on the Farm Fresh’s social
media platform.
54
Farm Fresh can adopt 1:1 marketing through its social media platform by maintaining a responsive Live
Chat service using which customers can place an order for Farm Fresh Dairy products. Customers can
knock on the Facebook or Instagram page of Farm Fresh with the details of the products they are looking
for and one of the virtual sales representatives from the company will contact the customers to deliver the
product. In the process, the company can keep a database of the customers and provide them with new
offers through email, SMS or messenger pop-ups so that the brand can stay on top of their mind. This
strategy can also increase the customer click-throughs on their page and website and contribute to the
number of sales.
55
Permission marketing:
Farm Fresh can run permission marketing through their dedicated app where customers who sign up to
prepare their meal plan will have to agree to receive promotional offers of Farm Fresh. The company will
also partner up with brands like Lean Nation where the customers of Lean Nation will receive exciting
discounts on repeat purchases if they choose to sign up on the dedicated app and maintain a healthy
lifestyle. This strategy will help Farm Fresh retain a very specific portion of its target market who are most
likely to make repeat purchases.
56
Superstore:
Farm Fresh Organic will put their product in all the superstore like: Unimart, Swapno, Agora, Meena
Bazaar etc. So that customers can easily see our product in every superstore and can get their desired
products easily. They are going to keep our product in the Dairy aisle and they will have our own corner
to showcase our new probiotic smoothie inclined with our all old products. This corner will be designed
very sophistically.
Departmental Store:
To cover the maximum TG Farm Fresh Organic will try to keep their products in the area based
departmental store. We all know that most of the people buy their daily necessary grocery items from the
nearest departmental store since it's easier and convenient. All the products of Farm Fresh Organic will
be available with other dairy brands.
57
Restaurants:
Farm Fresh Organic has a new product line which is the Probiotic Smoothie. Just like any other smoothie,
these probiotic smoothies have higher health benefits. This probiotic smoothie will be available in various
famous restaurants since young people are now more health-conscious and some restaurants have zero cal
in their beverage section, our probiotic smoothie will be available in that beverage section as well.
58
Dedicated Website:
Farm Fresh products will be available through its dedicated user-friendly website where customers can
shop both the regular farm fresh products as well as the organic products. The website will also have a
review section where customers can leave their honest reviews about the product. The website will
have a web catalog based virtual shop from where customers can place their order and choose their
preferred payment gateway. The new website link: http://farmfreshorganic.ezyro.com/
59
Pran Frontal Attack Action plan: Pran And Mobile Defense Action Plan:
Fram Fresh has the same target group Farm Fresh will add a new
geographically. Farm fresh will attack on product line Probiotic Smoothies.
their single product line ‘yoghurt’. Parn doesn’t have this product
Launching new flavoured yoghurt like line. By spreading efforts, Farm
Jaggery at lower price will attract the TG. Fresh will become a much more
Pran does not offer any flavoured yoghurt. difficult target to pin down.
But there is a huge demand for flavoured They'll be hesitant to focus on a
yoghurt among consumers. So, by huge scope assault on you as it
targeting the same market and grabbing will just influence one piece of
some consumers would be a great attack your business, and may not
from Farm Fresh to Pran in terms of the arrange the massive blow as they
product line of yoghurt. want it to. The addition of
products to the new market itself
can serve as future bases for
defence.
Milk Vita Flanking Attack Action Plan: Flanking Defence Action Plan:
Farm fresh organic will deliver their milk Farm fresh will come with new
in paper packaging, which is much easier enthusiasm and with new
to store and also consumer-friendly. Milk products. Past few years they
vita plastic packaging pasteurized milk is were lacking behind their
difficult to store and for instant use. competition. They are going to fix
Introducing a new packaging which is their weakness. They will get
environment friendly, it will attract the clearance from the court that they
current TG. It would be an effective attack can now produce, distribute and
for them. They are already producing milk sell its pasteurized milk. It will be
at a higher rate but delivering in plastic delivered in paper packaging. It
packaging. will be environmentally friendly.
61
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Appendix
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