Wind & Storm

Proof Umbrella
 Integrated Communication

Section: D

Spring, 2017

Submitted to

Muhammad  Hasan  Al­Mamun

Assistant   Professor

School of Business & Economics

United  International  University

Submitted by 

Md. Ibrahim  Khan 111 141 146

 Submitted on 26    April, 2017 
th
 Letter of Transmittal
April 26, 2017

Muhammad Hasan Al-Mamun

Assistant Professor,

School of Business and Economics,

United International University

Subject: Submission of strategic marketing communication plan.

Dear Sir,

We are pleased to submit the assignment that you asked for & gave us
the authorization to work on “strategic marketing communication plan of
a new product”. This assignment is an essential part of our course. We
tried our best to work on it sincerely to make the assignment informative.

The study we conducted enhanced our knowledge regarding the making

of a marketing plan. This assignment has given us an exceptional
experience that might have immense uses in the future endeavors and we
sincerely hope that it would be able to fulfill your expectations.

We have put our sincere effort to give this report a presentable shape and
make it as informative and precise as possible. We thank you for providing
us with this unique opportunity.

Sincerely yours,

Md. Ibrahim Khan (on behalf of the group)

 Executive Summary
Keeping in mind the developing but growing economy of a developing
country like Bangladesh, the marketers are going to launch its new
product “The Strom proof Umbrella”. Analyzing the current market
situation, it is found that Bangladesh has a rainy season and lots of people
are facing trouble in this season because of strong wind and storm.
Because which umbrella is available in our country it is not giving full
protection in storm. In heavy wind the umbrella are capsize. So, the storm
proof umbrella gives the best solution for this problem for its unique
shape.

The USP of this product will be to provide an affordable solution. Though

the marketers will make only one promise to customers, that are to keep
price low, however there will be more benefits of this product but main
benefit is it will not capsize the umbrella in heavy wind, which will help
them to capture loyal customer and eventually penetrate the market more
deeply. The marketers will be following the production concept to make
this product affordable and their winning strategy will be to provide same
benefit for fewer prices. The marketers will carry out good promotional
activities to create a good brand image in customers mind and hence
combat the little competition posed by rival products.

The retail price of the product will be 550 taka per unit based on the
market penetration pricing strategy. The marketers have a first-year sales
projection of approximately 500 units and aim to break even within six
months given their low pricing strategy and an unsaturated market to
begin with. They will take good measure to control any deviation in their
sales projection and after the break even; they also aim to pay off their
financing debt using their subsequent profit.
Current marketing Situation
Keeping in mind about the growing economy of a developing country like
Bangladesh, the marketers are going to launch its new product Wind
&Storm proof Umbrella. The population of Bangladesh is grouped into
three classes based on their level of income: high, medium and the low
class. Since this product is basically a non-luxurious good, therefore our
main focus is to reach the lower middle, upper middle & higher class
whose monthly income per household will be minimum 20000taka or
around. Furthermore, the increased literacy rate in Bangladesh has
prompted its inhabitants to be more conscious about not only their health
but also their fashion sense and these are some key factors we will be
capitalizing on. The hectic lifestyle of the urban people calls for something
soothing and relaxing, Windproof Umbrella is just an initiative as a
response, given the people’s average limitation in their buying power.

The market of Umbrella in Bangladesh is relatively raw and there is huge

opportunity to capture significant market share. There are no suppliers of
Windproof Umbrella in Bangladesh. Online sale of this product is more
popular in Bangladesh, namely in Ekhanei.com, Bikroy.com, clickbd.com
etc. Most of these Windproof Umbrella are programmed to serve multi-
functional solutions to combat various types of rains. Hence such product
holds an average price of 800taka.So to get a good market share; The
Windproof Umbrella has to make a good market position with their value
proposition- an affordable solution

Market Description
Storm proof Umbrella market basically consists of consumers. Based on
geographic segmentation, the marketers decide to initially choose Dhaka
as its target segment as inhabitants of the capital city are relatively more
civilized in terms of literacy rate, fashion trends and income level. Then
further segmenting Dhaka based on social class: the working middle to
higher class. The company will be niche marketing to basically middle to
lower upper class people of Dhaka. To the middle class people, afford
ability matters and the higher class people want convenience. The main
consumers are going to be professional men & women, students and
walkers. Since this is a unisex product so all can use it at their appropriate
prices. Windproof Umbrella is going to be initially available in three
different sizes: small, medium and larger. Later based on the demand,
Windproof Umbrella may be custom made as per order.
Market Segmentation illustration:

Product Review

Storm proof Umbrella offers the following features,

 Storm proof
 Strong
 Cheap
 Portable
 Wide handle easy to hold
 Comfortable to carry
 One press button
Segment Needs and Corresponding features/benefits of Windproof
Umbrella

Targeted Segment Customer Need Corresponding

Features/Benefits
Students Protection at affordable Cheap, only 550 taka
price
Professionals Comfortable to carry Portable product

The first-year sales revenues are projected approximately to be Tk275000,

based on sales of favorably more than 500 units Windproof Umbrella at
retail price of Tk550 each. During the second year, we plan to develop our
product by making them custom made.

Competitive Review:
The competition for umbrella is relatively strong in Bangladesh. Because
lots of people are using it for protecting from sun and rain also. There are
lots of suppliers of umbrella in Bangladesh who is already in a good
position so it can make strong competition with our product. Possible
competition may arise from

 Sharif Umbrella
 Samad Umbrella
 Atlas Umbrella
 Sankar Umbrella
 And many more china brands.

Competitive advantage of our products:

SWOT Analysis

Strength Weaknesses
 Cheap  Lack of brand awareness and
 Everyone can use image

Opportunities Threat
 Growing economy  Potential competition
Strength:

We will capitalize on our winning strategy: More benefit with same price.
Strom proof Umbrella provides more protection and at the same time it
allows the customer to stay fashionable as the new shape umbrella.

Weakness:

We have to do heavy advertising of our product to create a favorable

position of our product in consumer’s mind.

Opportunities:

Since the economy of Bangladesh is growing, more and more people will
be able to afford this product, hence giving us a greater opportunity of
market penetration. Growing economy will also give the flexibility for
product development and the chance to charge higher, making more
profit.

Threat:

Strom proof Umbrella has a preemptive benefit which makes it easy for
competitors to bring about a similar product in market at similar price. To
combat this problem, we will set a price that gives relatively low profit but
helps to gain a large market share.

Competitive Analysis

First- year objectives:

 To examine the perception about storm proof umbrella in consumer

mind

 To analyze the impact of Quality storm proof umbrella for customer

 To analyze the impact of benefit for customer

 To analyze the impact of value for price offered

 To analyze the impact of fashionable style offered

 To analyze the impact of brands of storm proof umbrella offered

 To analyze the impact of selection of colors, style and size

 To analyze the impact of advertising on customer

  To analyze the impact of placement

 We are aiming for unit sales volume of approximately 500 items

Second-year objectives:

We will mark up 5% profit rate each year in sustainable way by valuing

the employees while maintaining the customer loyalty. We will provide
custom designed storm proof umbrella from second year if the product is
successful in first year

Long term plan (3-5 years)

 Open sales outlet

 Open a reseller business of buttons
 Lower the price of the storm proof umbrella further by using captive
product pricing

Issues:

In relation to the product launch, our major issue is the ability to establish
a well-regarded brand linked to a meaningful positioning. We will invest
more money for creating the brand image among the customers. We also
must measure awareness and response so we can adjust marketing efforts
as necessary.

Marketing strategy
The storm proof umbrella will be based on production concept making it
highly affordable primarily for the middle class. Consumers we will be
targeting in this class are:

 Safety conscious people (how use umbrella for protection r safety)

 Fashion conscious people
 Working class people

Target Markets:

1. Safety conscious people:

Safety conscious people are one of our largest target markets. In this
segment, we get a lot of potential customer. One third of our total
population is safety conscious people. This is a significant number that we
have to concern about them and provide product, which is safe and give
protection to them.

2. Fashion conscious professionals:

Our other target customers are young fashion conscious people. They
have the need for something that looks good on the outside and
comfortable.

3. Working class people:

As they are full times working professionals. They typically earn more than
20,000 themselves. They will purchase umbrella for to with it in
workplace. This group is being targeted as they spend many time in road
and journey therefore they also have the money to spend on the umbrella
and we will take advantage of this.

Positioning:

The marketers will try to position itself using the winning positioning
strategy-same for less. They will use the marketing mix to make customer
understand that this product provides safety helps to maintain fashion
sense at a very affordable price. Though there will be other benefits the
marketers the product will offer to the customers.

So, the value proposition of the storm proof umbrella will be to provide an
affordable solution.

The Marketing Mix

Product Strategy:
Though we will be promising our customers mainly about the safety but
we will also provide more benefit that will help to create customer loyalty.
The additional features are

 Lots of color
 Different size and style
 Facility to resize
 comfortable to carry

Pricing Strategy:
We will provide the storm proof umbrella in reasonable price to the
customers. We are charging 550 taka for per umbrella. It will be affordable
for young professionals, safety conscious people. We expect to lower the
price of this product when we expand the product line by launching the
new model with captive product pricing. We believe that a higher sales
volume will lead to lower unit costs and higher long-run profit. We have
set the lower price because we assume that the market is price sensitive.
Our overall objective is to capture the maximum market share by setting
lower price.

we can follow two strategies

1. Penetration Pricing

2. Price Skimming

Our primary business and marketing objective is to grow your customer

base and revenue, penetration pricing is the way to go. As our product is
new in the market .so for our “wind and storm proof umbrella “we should
follow Penetration pricing which is a pricing strategy. We offer a relatively
low upfront price that attracts customers or lures them away from higher-
priced competitors. The greater the demand for our product and the
greater the price differential, the more impacting this strategy is at
attracting droves of customers immediately. our organization introduces
its services to consumers at a comparatively lower price than the existing
market price. The fundamental objective of such an approach is attracting
consumers to the product in the hope that the consumer will establish a
fondness or a need for the product. As a consequence, organizations use
this strategy as a means to ultimately gain a higher market share for our
particular product. Once this has been achieved, organizations hope to
increase the price. It is apparent that penetration pricing works on the
assumption that price sensitive customers.
Distribution strategy:
Our channel strategy is to use selective distribution. We sell our product
online initially.

In the long run if the product is successful we are targeting to open our
own outlets along with our online sale. Marketing channel is mainly
concern with selecting one of the following alternatives.

1. Direct channel

2. Indirect channel

Here we use direct channel, there is no third party. Direct selling, a unique
method of distribution from which benefits all sides. If we use direct
channel there are some benefits.

Benefits for the Consumers:

 Opportunity to try and test the products;

 Tailored made demonstration and consultation in a friendly environment;

 Personalized delivery at home;

 Right to withdraw the purchase within a given period (additional

protection);

 Direct contact with the seller;

 Guarantee and after sales service

 Flexible buying hours.

Benefits for the Direct sellers:

 Possibility to establish and to run own business at minimum cost/low risk;

 Convenient flexible earning opportunities;

 Flexibility to choose working hours;

 Spouses or family members can be partners in business (family business);

 Adjustable opportunities ranging from part-time to full-time activity;

 No formal qualifications required;

 Large range of products available;

 Social contact and personal recognition.

Promotional Strategy:
In the short run,

We will create a Face book page, through which we can promote how; our
product can prove to be really useful to our potential consumers. We can
ask our family and friends to share and like our page. However, we can
also persuade our closed ones, to believe that our products are of extreme
help and encourage them how they should order products from us. The
buzz created will help other people to know about the particular business,
which can provide such a massaging miracle in a very reasonable price,
the sales will surely expand among the age group of above 35 till 50, who
are safety conscious.

Thereafter we will conduct an Internet campaign will show how the storm
proof umbrella can perform and emphasize our potential customers to
believe that. We will post pictures of the available products, with the
designated price, so consumers will be able to choose from those
products, with their own preferences.

Furthermore, we will hold a contest for the consumer which will feature
making videos about their good experiences. In this way customer
awareness will increase and it will create a good brand image.

In the long run, If the product is successful then we will increase our
promotion using advertorials, print ads etc. depending on the product
demand and our financial capacity. The following will be our long term
promotional strategy.

Advertising:

We initially will give more emphasis on paper ads and TV commercials.

Because, advertising through these media is the most effective way to
reach the customers and position our product in their mind. We will make
some billboards at core point of country. We hope to reach 75% of our
customers through effective advertising.

Direct marketing:

For direct marketing, we will make catalogs .Our target area will be
crowded area like near varsity, hospital, shopping mall etc.
Promotional Budgeting:

As our product “wind and storm proof umbrella “is new in the market so,
we will be focusing on bottom up budget method.

Bottom up approach begins with identifying the different operations and

tasks performed by the organization. Each unit of the organization shall
disclose the resources and funds required by them in their individual
budgets. The finance department then consolidates the funding
requirement of the entire organization and HR department shall
consolidate resource required. The combined budget shall be put up to the
management for the approval. We will try to reach to our target audience
by advertisement and capture about the objectives that we want to
achieve. We will first set the percentage of sales that we want to increase
and then set the activities that may help to reach our goals. Then we will
estimate cost of each activity.

Our product will be mainly focusing on creating awareness to the target

audience so the primary objective will be communication based. The main
sources of creating awareness will be TV advertisement, radio
advertisement, newspaper advertisement and of course advertisement
through social networking sites.

Payout planning

Advertising for long period will help our product grow as it is in the
introductory stage. So, we will be focusing of payout planning. Payout
planning involves fixing of the communications budget on the basis of the
expected revenues that it will obtain in future. This approach considers
communications spending an investment rather than an expense. Under
this method, our company will allocate a higher budget during the
introductory stage of the product and reduce the spending as the product
moves into its maturity and decline stages. It is important for an
introductory stage product to estimate return of sales because it will
determine the future condition of the company.

Marketing Research:
The Strom Proof Umbrella conducted several different focus groups to
collect valuable market research prior to undertaking this large project.
The focus group participants were comprised of dissimilar individuals.
Some of the participants were the ideal targeted customer, while others
were individuals who might have an inclination to purchasing supplements
and might have an inclination to purchasing from an Internet vendor. The
information gathered from the focus groups, both from the natural
customers as well as the tentative ones was invaluable. When working so
hard on a single project for a long period of time it is often difficult to see
things from multi-perspectives. We are also measuring and analyzing
customer’s attitudes toward competing brands and products. The
collected research had a positive, profound effect on the entire project
and it is believed that the Strom proof umbrella will be far more successful
as a result of this market research.

Media Strategy:
The Strom proof umbrella be introduced in April 2018 as a rainy season.
Following are summaries of action programs we will use previous six
months to achieve our objective of providing a worthy product which will
be incredibly helpful to our consumers, in a profitable way.

October 2017

In this month we will create a Facebook page, through which we can

promote how, our product can prove to be really useful to our potential
consumers. We can ask our family and friends to share and like our page,
However, we can also persuade our closed ones, to believe that our
products are of extreme help and encourage them how they should order
products from us. The buzz created will help other people to know about
the particular business, which can provide such a great protection in a
very reasonable price, the sales will surely expand among the general
people who need to go out daily.

November 2017

The Internet campaign will show how the Strom proof umbrella can
perform and emphasize our potential customers to believe that, it can
create ultimate protection while going outside. We will post pictures of the
available products, with the designated price, so consumers will be able to
choose from those products, with their own preferences.

December 2017

As the multimedia advertising campaign continues, we may add consumer

making the product’s promotion such as through contests, in which
consumers post videos about how it works and give the ultimate
protection.

January 2018

We can hold a trade sales contest offering prizes for the sales person, and
retail organization that sells the most storm proof umbrella, during the
past business period.
February 2018

In order to boost up sales, we might give attractive offers, which can

encourage the sales to go up. We can also create advertisements, which
can get planted up in customers minds, so that they want to acknowledge
the benefits of the product.

March 2018

We might add a new tag line promoting the storm proof umbrella, and
exhibit at trade shows and provide channel partners with new competitive
handouts as a sales aid. In addition we can tally and analyze the results of
consumer satisfaction surveys, for use in future promotions and to provide
feedbacks for the product and marketing activities.

Cost & Revenue calculation (Budget)

Total first years revenue for the wind and storm proof umbrella expected
to be approximately Tk275000, with the average wholesale price to be
Tk550 per unit and a variable cost to be Tk295 for unit sales volume of
500. Break even calculations show that the Umbrella will become
profitable after the sales volume exceeds 121 units umbrella, within the
first year. The next year, with exceeding profit, we can spread our
business to a wider scale, as it has the best feature of cost advantage.

Cost Allocation

Variable costs (including all sorts of shipping cost)

Umbrella Fabric Tk80

Strong Frame Tk105
Push Button Tk15
Sliding Mechanism Tk30
Fiberglass Shaft Tk65

Total Tk295

Fixed Cost:

Rent of Factory Tk8000

Salary of Employees Tk18000
Tools and Machineries Tk5000

Total Tk31000
Break even Analysis

We are charging the price of the storm proof umbrella at Tk550, so if the
variable cost of approximately Tk295 is deducted, it gives a contribution
of Tk255.

Break even analysis = Fixed Cost/Contribution

= Tk (31000/255)
=121 Units Umbrella

Financial Plan
However in order to run the business, we, the partners have decided to
accumulate our savings of Tk6000 each, with a total of Tk18000, the rest
of the cost of approximately Tk13400 can be gathered from the three
families as a form of loan, which will be hopefully repaid from the profit
remaining. Some of it will be used for obvious further investment, the
other parts will be used to pay off loans, and own consumption.

Controls
We are planning tight control measures to closely monitor quality and
customer service satisfaction. This will enable us to acknowledge
problems that may occur and deal with them, in the most preferable
manner. Budget deviations should be carefully monitored, and this can be
undertaken, if monthly sales and expenses are taken care of with utmost
attention. As the product is designed to be used as a unisex product, and
can be used in almost every regular shoes and sandals, with proper
promotions, the product has chances of capturing a huge market share.
With fast- moving environmental changes, we can develop contingency
plans, in order to be aware of new technology and competition.