Term Paper- MKT 701( Platesmith) PDF

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“PLATESMITH”-The NewCatering inCapital CitySubmitted To:Course Instructor: Prof.Dr. Faridul Islam Course Title: Marketing Principles and Practices Course ID: MKT 701Submitted By:Oyshi Chowdhuy [ID- 19174011] Avaya Dutta [ID-19174030] Faria Ferdous Ali [ID- 19174013 ] B. M. Kanak [ ID- 19174006 ] M. ...

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Submitted To:

“PLATESMITH”The New Catering in Capital City

Course Instructor: Prof.Dr.Md. Faridul Islam

Course Title: Marketing Principles and Practices Course ID: MKT 701

Submitted By: Oyshi Chowdhuy [ID- 19174011] Avaya Dutta [ID-19174030] Faria Ferdous Ali [ID-19174013] B. M. Kanak [ ID-19174006] M. M. Sultan Mahmud [ID- 19274040]

“PLATESMITH”-The New Catering in Capital City

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ACKNOWLEDGEMENT First of all, we give heartfelt thanks to the Almighty for giving us the ability for preparing this report successfully. We are heartily thankful to our course instructor and Lecturer, Marketing Principles and Practices, Prof. Dr. Md. Faridul Islam, who‟s encouragement, guidance and support from the initial to the final level enabled us to complete the report successfully. Finally, all the group members related to this term paper worked a lot and worked hard even during the pandemic situation to make this report successful. Without everyone‟s active participation it would be very difficult for us to complete this task in due time.

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LETTER OF TRANSMITTAL

April 16, 2020

Prof. Dr. Md. Faridul Islam Course Instructor, Marketing Principles and Practices BRAC University Subject: Letter of submission of Term paper on “PLATESMITH”-The New Catering in Capital City) Dear Sir, It is our great pleasure to submit the report titled “PLATESMITH-The New Catering in Capital City”. Here we have focused a new business development in Dhaka-the capital city of Bangladesh. We also have also recommended some possible measures based on our research. We have tried as much as possible to follow your guidelines in every aspect of planning and preparing the report. And for preparing the report we have conducted thorough market research and study and group discussion to develop a feasible analysis of the factors that we should consider for developing a new business in Bangladesh. We wish you will appreciate the contents of the report. Sincerely, 1. 2. 3. 4. 5.

Oyshi Chowdhury [ID-19174011] Avaya Dutta [ID-19174030] Faria Ferdous Ali [ID-19174013] B. M. Kanak [ ID-19174006] M. M. Sultan Mahmud [ID-19274040]

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TABLE OF CONTENT Topic Executive Summary 1. Introduction 1.1 Industry Overview 1.2 Industry at a glance 1.3 Product Overview 2. Market Analysis 2.1 Market Status 2.2 Types of Product Offering 2.3 Revenue Projection 3. Competitive Analysis 3.1 Major Competitors 3.2 SWOT Analysis 3.3 Competitive Strategy 4. Marketing Mix 4.1 Product Positioning 4.1.1 Segmentation Process 4.1.2 Brand Elements 4.1.3 Initial and Future Brand Equity 4.1.4 Distinct Features of Product 4.1.5 Point of Parity 4.1.6 Point of Difference 4.2 Placement 4.3 Promotion Strategy 4.4 Pricing Strategy 5. Present and Future Business Plan 5.1 Current Market Position 5.2 Future Business Goal 6. Financial Cost Analysis and KPI Monitoring 6.1 Increasing Company's Profit and Growth 6.2 KPI Monitoring 7. Conclusion

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Executive Summary Business opportunities are increasing in Bangladesh due to fastest growing population trend and globalization. Growing millennial populations showing a greater inclination toward innovative and exotic flavor and foods. In today’s world food is compared by medicine. As healthy food is the pre requirement for a healthy lifestyle. People deserve better than the substandard food that exposes them to health risk. Due to time constraint people are not having a healthy food option and search for food service of catering services .Somewhere in the range of 2004 and 2018, the nourishment business in Bangladesh developed at a normal 8.9%. The nourishment business utilizes 2.72 % of the nation's all out work power and its offer in the GDP was 2.11%in 2016. For this Term Paper, we have chosen a Food Catering Business, as a startup. Our primary focused on client's base will be corporate administrators and University understudies in some particular zones like Mohakhali, Gulshan-Banani, Tejgaon Residential Area and Bashundhara Residential Area. Our primary rivals are Khan's Kitchen (Market Leader) and Premier Catering (Market Challenger). We will offer two distinct kinds of item, lunch and supper administration. As we know catering business is all about repeat business so that customer satisfaction will be our first priority. Besides this the value model will be Maximum Current Profit and we will go for markup estimating model. The cost will be in any event 10% (TK 100 for every case) not as much as that of the contenders. Our fundamental advancement will be homemade recipe which will distinguish us from the competitors, computerized advertising, mass SMS, and handout circulation. Our Brand esteem is low a result of new business, and our image value will be brand acknowledgment. Our Brand Slogan is A THIRD PLACE OTHER THAN WORKPLACE AND HOME WHERE HYGIENE MEETS GREAT TASTE. We have incorporated our current, future marketable strategy alongside a well – composed SWOT examination. We have likewise incorporated our money related cost examination, and the KPI for the ideal benefit and smooth business activity is all around clarified.

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1. Introduction Bangladesh has a rapidly growing consumer market and due to a large population base, the demand for food products is always on the rise. The market and the product range have evolved significantly over the last decade and many companies have entered the food business, which was otherwise not into this level of diversification in the past, Food industry being a rapidly growing sector in Bangladesh, employing a significant portion of the labor force in the country. Between 2004 and 2018, the industry in Bangladesh grew at an average 8.9%. The food industry employs 2.72 % of the country's total labor force and its share in the GDP was 2.11%in 2016. According to some industry analysts, the food-processing sector in Bangladesh is a 4.5 billion US Dollar industry. 1.1 Industry Overview Virginia Woolf once famously quoted “One cannot think well, love well, and sleep well, if one has not dined well.” The food service industry in Bangladesh has evolved dramatically. Over the last several years, newer and newer restaurant businesses in Dhaka city have popped up. Going out to eat with your friends and families is gradually becoming a culture amongst the people of Bangladesh. However, as day progresses, people are becoming more and more busy due to increased Globalization all over the world. With the increasing amount of hectic and busy life along with the increasing women empowerment, people are moving towards more into catering food service. The catering business in Bangladesh has always been around. However, this segment of the food industry is gaining territory with services like Iqbal Hossain Catering Service, Tony‟s Kitchen, Alpha Catering service, Salam Catering Service and Fakhruddin Foods Limited. They been changing the scene for the better but still Lunch Catering service is one sector, which is yet to gain more attention than it should be. According to some food Bloggers a total of around 250 Catering services exists in Dhaka, out of which only around 20 of them offers lunch Catering services in Dhaka. Although the industry is still in the preliminary stage, it has the potential to become a potential growth sector to the national economy 7 | Page

1.2 Industry at a Glance Market Size: Roughly around BDT 50-60 Million Industry growing rate: 13% Annual Potential Market Customer: 2 million Market Leader: Khan‟s Kitchen Market Challenger: Spice Catering, Premier Catering, Salam‟s Kitchen

1.3 Product Overview PLATESMITH Catering Service intends to share a deep sense of interpersonal relationship towards people who loves good food and loves to eat more than anything else does. With the booming of food industry and increased demand for processed food due to lack of time, PLATESMITH Catering service anticipates

to provide

sophisticated preparing process and service and quality maintenance of lunch Service which are beyond what we can imagine. We offers a dual sided Catering services to the working class people of Dhaka city, initially in areas like Mohakhali, GulshanBanani, Tejgaon Industrial area and Bashundhara Residential Area. Dual Sided service includes Catered lunch services and processed Dinner services for working women for whom it becomes extremely tough to prepare dinner for the entire family after a tiring and hectic day at office. Our targeted segment also includes students of Educational Institutes, mostly Universities around the 3-targeted region. Our priority to make sure the service is up to the mark from a holistic point of view - customer interaction, after-sales service etc. We aim to make sure the taste of our food is great, the orders are accurate and timely and that too at a much lower cost than our rivals. Our products will be at least 10% less expensive than our competitors will but within an intention

of

uncompromising

food

quality

and

taste.

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2. Market Analysis 2.1 Market Status Processed food or catering food services in one of the most booming industry in Dhaka city right now. Competition as well as people‟s demand for catered food at a cheaper rate is increasing at an exponential rate as people have less time to cook or prepare the food for their own. Considering the above scenario, we are planning to launch a lunch Catering service in Dhaka known as PLATESMITH Catering. Initially we are going for geographical and Demographic Segmentation to find the potential customers, mainly corporate executives and University Students in the regions of Mohakhali, Gulshan- Banani, Tejgaon Industrial Area and areas surrounding Bashundhara Residential Area. Our launch time is expected to be in the first week of January 2021. We will go for rigorous promotions and marketing strategy for 1-2 months before we start serving our customers in full- fledge from the beginning of April in 2021.Initially we plan to target 1000 customers who will take service from our Catering service. We will first target some executives of corporate sectors and will tend to do push marketing in order to promote our product for future endorsement. 2.2 Types of Product Offering We will start our business with two different products: Lunch and Dinner Service. For the lunch service, our priority-segmented customers will be executives from Telecommunication sectors, different Multinational and Local Banks, reputed Merchant and financial Institutes and students from Top Private Universities in Bangladesh. For the dinner Catering Service, we will target female executives from different organizations and the bachelor executives all around our targeted geographical segment. The sole purpose to ease the difficulties the female employees face in preparing meal for the family, after spending a tiring and hectic life at office, thus making life a lot easier than before. Moreover, Bachelors also face tremendous problem for having their dinner as most of them stay in a group with difficulties in preparing quality meal for dinner.

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PLATESMITH Catering .

Lunch Service

Dinner Service

Initial Target Segmentation For lunch and Dinner Service Geographical Location Targeted Customer

Targeted Age Group

Income Range

Lunch Service Mohakhali, Gulshan- Banani, Tejgaon, Area surrounding Bashundhara Residential Area ● Corporate Executives (Male &Female) ● University Students

Dinner Service Gulshan-Banani and Tejgaon

● 25-50 Years ( for Executives) ● 18-24 Years (For University Students) > BDT Tk 25000 > BDT Tk 5000-10000 (Students: from pocket money)

25-50 years

● Female Corporate Executives ● Bachelor Executives

BDT Tk 15000- 25000 (Bachelor Executives) BDT- 20000- 50000 (Female Corporate Executives)

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2.3 Revenue Projection Our Business will follow a Zero level Consumer Marketing Channels where there will no wholesaler or retailer between the customers and Manufacturer. Hence, the Revenue of our business will be directly dependent on the volume of sales. Our Targeted Revenue level is around BDT 2.5 Million by serving 800 corporate customer (15000 times) and 200 University students (5000 times). Around 80% of the revenue is expected to come from lunch service while remaining 20 % is expected to be covered by Dinner service. We have our own delivery vehicles for supplying the food to the customers, which will be of free of cost for the first six months of business.

Daily Weekly

Lunch Service Corporate Level Educational Institutions BDT 17500 BDT 3500 BDT 135000 BDT 15000

BDT 3500 BDT 25000

Monthly

BDT 650000

BDT 100000

Revenue Target

BDT 60000

Dinner

3. Competitive Analysis 3.1 Major Competitors (A) Market Leader & Pioneer– Khan’s Kitchen Marketing Values Brand Image Brand Positioning Strengths

Details High International standard tasty meals, prepared hygienically ● state-of-the-art digital technology ● international standard mega industry-size kitchen in the country ● Food designed by Chinese engineers with German and Turkish equipment ● Largest mechanized food 11 | Page

● ● ● ●

Promotional Method Price

production facility in Southern Asia Highly Trained Chef Raw Materials collected directly from producers Food Delivery using 22 temperature-controlled transports The food items are different every day and there are special items on the second week of every month

Digital Marketing, Leaflets, Advertisements BDT 150 -200

(B) Market Challenger – Premier Catering Marketing Values Brand Image Brand Positioning Strengths

Details Medium Tasty Food

● Certified and Trained Chef ● Integrity and commitment to excellence ● Good number of Clients Promotional Method Price

Digital Marketing, Leaflets, Advertisements BDT 110 -150

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New Product/Business Development Concept Companies will face a problem. So, they must develop new products/ business. In all , to create successful new products, a company must understand its consumer, markets and competitors and develop the products and deliver superior value to customers. To be successful and attract the customer attention, the new product must fulfill their needs and maintain the brand promise.

Idea Generation: For developing new product/ business successfully, a company must understand its consumers, markets and competitors and develop products that delivers superior value to consumers and take plan. This is the first step that is common in any product/ business development process. We have developed our business idea by using both sources▪

Internal idea sources: Research and Development Department 13 | Page

▪

External idea sources: Customers Competitors

New products are important to both customers and the marketers who serve them. For companies‟ new products is a key source of growth. In this report we are showing our new product development idea. Our new business development idea is about a “PLATESMITH”- The New Catering service in Dhaka City. The business existence in the future is depending on its strength, weakness, opportunities and threats analysis.

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3.2 SWOT ANALYSIS Strengths: Fresh Food every day. We emphasis on uncompromising Taste & Quality Faster Delivery time No minimum order with order time until 9am on same day. Flexibility to customize your order as you like.

Threats

Weakness

Low Entry Barrier Easy to copy POD and strategies High Employee turnover rate Difficult to protect Secret recipes Corporate Companies have their own canteen and Universities have own cafeteria

SWOT ANALYSIS

Lack of Investors and Financial Support Weak Brand Equity Low geographical segment Less Acceptance of new product

Opportunities: Open market for Corporate Executives as well as for the students Create example on Standard Hygiene Maintain (Hot Pot). High emphasis on female empowerment and hence more chance of taking dinner service; bachelor executives are also high in number Creating employment for large number of people through Catering business Ease availability of technology and hence more use of Mobile Apps for food ordering. 15 | Page

3.3 Competitive Strategy  Bypass attack: Bypassing the competitors altogether to attack easier markets like offering product to University students through Food cart and also offering dinner service to corporate executives  Imitator Strategy: We will copy the food habit our Market Leaders are following and will differentiate on packaging, advertising, pricing, or location

4. Marketing Mix: 4P Marketing is simplistically defined as „putting the right product in the right place, at the right price, at the right time.‟ Though this sounds like an easy enough proposition, a lot of hard work and research needs to go into setting this simple definition up. And if even one element is off the mark, a promising product or service can fail completely and end up costing the company substantially. A combination of 4P (Product, position, promotion and Price) combinedly known as the Marketing Mix. A marketing mix is important in business because it maximizes a company‟s chances of achieving steady, continual success in its operations. A marketing mix also ensures that a company remains responsible to its customers by living up to its product claims. 4.1 Product Positioning Going through a rapid globalization era, people‟s demand for catered food at a cheaper rate is increasing at an exponential rate as people have less time to cook or prepare the food for their own. At the same time catering food services in one of the most booming industry in Dhaka city right now. Considering the above scenario, we are planning to launch a lunch Catering service in Dhaka known as PLATESMITH Catering. Our launch time is expected to be in the first week of January 2021. We will go for rigorous promotions and marketing strategy for 1-2 months before we start serving our customers in full-fledge from the beginning of April in 2021.

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4.1.1 Segmentation Process  Geographical segment: Gulshan-Banani, Tejgaon and areas surrounding Bashundhara Residential Area  Income base: Income > BDT 25000 (Corporate Executives) & BDT 5000-10000 (Students)  Targeted Segment: Corporate Executives, Bachelors and Females Executives (Dinner), University Students  Age: 18-24 (Students) & 25-50 (Executives) 4.1.2 Brand Elements Brand Name: PLATESMITH Slogan: A THIRD PLACE OTHER THAN WORKPLACE AND HOME WHERE HYGIENE MEETS GREAT TASTE.

URL: www.platesmithcatering.com.bd Logo:

4.1.3

Initial and Future Brand Equity

Since we are new in the market, so our Brand image is low. Initially we will try to create brand awareness within the market through vigorous marketing promotions and product offerings so that customers can recognize our product as soon as they are exposed to. Once people get used to our product awareness, we will try to design the product such that the product remains in the knowledge of the people and ultimately starts liking it. Preference and conviction is the next stage and ultimately end up by becoming the customer‟s ultimate purchase decision. Like this we will try to grab the market by marketing policies with strong, favorable, and unique associations to the brand in memory to make a strong Brand recall, thus leading to a High Value Brand. We will have our product demand all throughout the...