Southern Dairy Foods is a leading dairy foods provider in Bangladesh that seeks to expand internationally. It currently has a strong position in Bangladesh but sees opportunities in the large international market. The business plan analyzes Southern Dairy Foods' vision, mission, strengths, weaknesses and strategies for market segmentation, positioning, and marketing mix to penetrate new markets. It highlights goals of reinforcing their brand and values while continuously innovating through technology. Financial projections estimate profitable growth and payback of initial investments within two years of expanding operations.

1. POPULARITY OF DAIRY FOODS IN
INTERNATIONAL MARKET
BRAIN RAKING COMPETITION 2016

3. CMO
CEO
CFO
AKKAS
UDDIN
(KAISER)
FARJANA HANIF
(SHARMIN)
MD.
SARWAR
OSMAN
(SAGAR)

4. Agenda

5. Objectives
The business plan is an attempt to highlight the contribution of our
“Dairy Foods Ltd” in market sector of Bangladesh. This plan also
highlights current position in Bangladesh market and opportunities
available in “International Market” and achieving target profit.
SOUTHERN

6. Our Vision
• To be a leading integrated
“Dairy Foods” service group
in country by delivering
consistent quality products
& excellent customer-
focused service.
• “To sell product in a fast,
friendly environment that
appeals to pride conscious
health minded consumers.”

7. Our Mission
• Attaining best in class
productivity and efficiency.
• Building our brands in
international market also.
• Reinventing the business
continuously through
technology and innovation.
• Reinforcing “The Way of
Dairy Food” by living our
values every day.

9. Market Analysis

10. SWOT ANALYSIS
Strength
 Topmost dairy provider in
Bangladesh
 Brand and Product loyalty
 Low cost of production due to
economic of scale
 Strong distribution network.
Weaknesses
 Lack of market penetration
 Relatively high Price Brand
 Limited variety of products
 Poor technology in Bangladesh
compared to current international
technologies
Opportunities
 Population about16crore in
Home Country, and
internationally uncounted
 Low cost of labour rate
 Bring efficiency in logistics and
distribution with the help of
“Sea-port” and technology.
 Introduction of foreign products
in Bangladesh.
Threats
 Faced a worm scandal
 In confectionery segment Threats
from company like PRAN & MILK-
VITA.
 Government Policies
 Rise in raw materials cost cocoa
beans, dairy products & Sugar.

11. Political
•Political instability
•Law & order situation
Economical
•Low Purchasing power of
customers
•Unskilled labors
•Globalization
•Taxes
Socio Cultural
•Increasing growth rate
•Urbanization
•Health Conciousness
•Chnaging Demographic trends
•Chnanging Preferences of
customers
Legal
•Heavy Taxation
•Labor Laws
•Lower implementation on
Environmental protection law
•Higher Foreign trade regulations
•Business friendly policy
Environmental
•Go green
•Emphasis on environmental
sustainability
Technological
•New technology
•Innovation
•Automation
•R&D expenditure
PESTLE analysis

12. MARKETING STRATEGY

13. Market Segmentation
Milk is accounting for 65% output of the overall
dairy market. The segment output is expected to
grow at 9.5% annual growth rate and to scale
up by US $42 Billion by 2017.
Yogurt being second largest segment of
production in dairy market. accountable for
18% is expected to boost by 10% annually
while massing US $12 Billion by 2017.
Cheese output reached US $ 3.2 Billion,
further expected to enhance 15% annually
and to touch US$ 6.4 Billion by 2017.
Butter output totaled at US$ 1.9 billion with
a growth in CAGR 10.6% and to reach US$
3.1 billion by 2017.
Cream segment valued at US$ 1.84 billion
and expected to rise at a CAGR of 12.8 %
and reach US$ 2.5 billion by 2017.
Dessert output increase to US$ .25 billion at
an annual growth rate of 10.5% and
expected to reach US$ .40 billion.
65%
18%
8%
5%
3%
1%
Dairy output by Segment
Milk Yogurt
Cheese Butter
Source: World Dairy
Association of 2014

14. TARGET MARKETING
GEOGRAPHICAL SEGMENTATION:
World Region or, Country:-
BANGLADESH and, INDIA
Cities:-
DHAKA, CHITTAGONG, SYLHET, KHULNA, RAAJSHAHI,
BARISHAL, CHENNAI, KOLKATA, PANJAB, DELHI. etc.
Climate:-
SOUTHERN BASED

15. POSITIONING
The way the product is defined by consumers on important
attributes-the place the product occupies in consumers minds
relative to competing products.

16. MARKETING MIX

17. PRODUCT
SOUTHREN

18. “Southern Dairy Foods” offers 12 different brands. The
product portfolio is well diversified and innovative in
nature. Some of the brands of “Southern Dairy Foods”
are performing tremendously like Southern Milk which
is becoming a generic name for milk. Southern Milk
have snatched huge market share of milk pack.
Southern Milk is now a leading brand in the milk
industry.
Tarring is also performing well. Apart from these
success stories, “Southern Dairy Food” also face
Product issues in various offerings. Some of the
important Product issues that we found in our research
are listed as under:

19. PRICE
Southern Dairy foods mainly charge competition based prices.
Determining right prices is quite a difficult task in case of rising inflation. The
decreasing purchasing power of the customer is causing problems in setting
Prices. However Older is maintaining right set of prices, and hence earning
handsome profits. Some of the Price related issues are as under:
‘‘maintains different pricing strategies for different brands. PRAN Milk is a high
priced, low quality product in comparison with Fruit vitals. Southern Foods
maintains Low Quality, Low Price strategy for Dairy Foods.
Southern Dairy Foods doesn’t offer price cuts to customers in order to boost
sales of lagging behind brands such as Milk, and Yogurt.
They often go with competition based pricing rather than value based pricing,
or penetration pricing.

20. Segments, Product and Price
Segments Product Pack size Rate
Value Milk 250ml 15TK
Value Milk 500ml 28TK
Value Milk 1.litter 45TK
Mid-Tier Yogurt 500ml 60tk
Mid-Tier Yogurt Per litter 100tk
Premium Cheese Per litter 200tk
Super Premium Butter Per packet 50tk
Super Premium Ice Cream Per KG 3ootk
Super Premium Dessert/Pudding Per KG 400tk
Value Dairy Milk Shots 18.6 Gram 15tk
Value Dairy Milk 17 Gram 10tk
Value Dairy Milk 38 Gram 22tk
Mid-Tier Dairy Milk Crackle 42 Gram 35tk

21. PLACE
“Southern Dairy Foods” has a strong and integrated
distribution network throughout “Home and Host Country.
And, there are readily available at retail stores. However there
are certain issues related to placement as well.
Pran, Arong, and olper’s cream are not readily available in
market. Their presence is restricted to superstores of metropolitan cities.
Although Southern Foods has strong distribution network for Dairy
items, but they are not using it for other brands.
Retailers are not willing to have these new brands of Southern Foods in
shelves because of lesser awareness of these brands in general public,
such as Milk Vita, Pran, Arong, Firm Fresh, others cream. Moreover
these brands are not placed appropriately against the competing brands.

22. PROMOTION and DISTRIBUTION
More For The Same Proposition
Providing a brand offering comparable or ever better
quality to that of competitors upscale one but at a lower
or the same price.
DISTRIBUTION SYSTEM
WHOLE
SELLER
RETAILER
MANUFAC
TURING
COMPANY
AGENT

23. PROMOTIONAL ADVERTISEMENT
SMS
Marketing
REGIONAL NEWS
PAPER
SOUTHREN

24. PRODUCT LIFE CYCLE
SOUTHREN

25. FINANCIAL ANALYSIS
BUDGET
Particulars TK
Land 30,00,000
Building 20,00,000
Machinery 10,00,000
Motor Van 10,00,000
Furniture 500000
Total 75,00,000

26. Operational Expenses
Particulars: (TK Per month)
Manufacturing cost
Operational cost
10,00,000
5,00,000
Utility Expenses
Salary & Wages
80,000
7,00,000
Maintenance Cost 80,000
Repayment of Loan 3,00,000
Total 26,80,000

27. Hypothetical Income Statement:
Particulars TK
MILK SOLD 3,00,000
Dairy Milk Sold 1,00,000
Cheese Sold 1,50,000
Ice-Cream 1,80,000
OTHER DAIRY INCOME 1,00,000
Total 8,30,000
Net Income (Per Month):

28. Franchise Oriented Income:
Yearly Income:
99,60,000
Yearly Tax to Pay:
34,86,000

29. Primary Investment
Primary Investment : 2 Cor.
Sources of Money:
- Personal Investment : .50 Corer
- Bank Loans : 1.5 Corer
* Interest Rate: 15%
Pay Back Period : 2 years

30. The End

31. Any Questions?