Kaynra

A Marketing Plan of Crab Fattening &

Exporting

Prepared For:

Mir Semon Haider

Senior Lecturer

Course: MGT 368

Sec: 02

Prepared By:
Ahsan Uddin Sharif Omi
ID: 053 052 030
 Muktadir
Irtiza Miraj
ID: 053 353 030
Shahriar Rashid Rafi
ID: 053 049 030
Rockyb ul
Hasan
ID: 061 508 030
Farzana Afroze Zerin
ID: 052 515 030

Sunday, April 15, 2008

Mr. Semon Haider

Honourable Instructor,

Course – MGT 368 (Entrepreneurship),

Section - 02, School of Business,

North South University, Bangladesh.

Dear Sir,

We would like to submit the project on the "Crab fattening & exporting". It is really
an enormous opportunity for us to prepare this "Marketing Plan" project. We would
like to recall with gratitude, the tremendous support and encouragement, which we
received from you. We have tried our best to implement the relevant theories that
you have taught in the course- MGT 368 (Entrepreneurship).

As an Instructor and Advisor to the report, you made critical reviews of various
earlier reports, provided valuable insights and academic training to improve the
quality of the work. We are grateful for your stimulating guidance and
encouragement during the period of preparation this project. Without your
guidance, this would simply not have been possible.

There may have many omissions and errors on our part but we have tried our level
best to prepare this report to the required standard.

We are looking forward for your kind appraisal on this project.

Thanking you in anticipation,

Ahsan Uddin Sharif ( 053 052 030 ) Muktadir Irtiza Miraj ( 053 353 030 )

Shahriar Rashid ( 053 049 030 ) Rockyb ul Hasan ( 061 508 030 )

Farzana Afroze Zerin ( 052 515 030 )

Acknowledgement

We are indebted to many people for providing us encouragement and support during our learning and
working while making this project and we want to show our gratefulness to these people.

We are very much grateful to Mir Semon Haider, our respected course instructor of “
Entrepreneurship”, who assigned us this challenging project. He always guided us to take and overcome this
challenge successfully. Without his help in every step it was quite impossible for us to finish this project properly in
time.
 At every moment we remember all of our classmates who really encouraged us in every stage of this
project with their support, encouragement and suggestions which really helped us a lot to make this project to be
successful. Without their guidance and friendly co-operation, this project would not be possible.

Also we are grateful to all the fellows who provided us with their utmost effort. Without their help it would
not have been at all possible. They have provided us with all the information and also supported us a lot.

Management Summary
Kaynra has identified some economical and industrial factors that will affect the
marketing action during this marketing plan period. Factors like, revenue earned,
demand, competition have a positive impact on the marketing action. On the other
hand fluctuation of foreign exchange rate, government policy, trade barriers have a
negative impact. Kaynra has followed the geographical segmentation process to
target two regional segments for crab exporting they are , Asian market (1st
segment), European market (2nd segment). To serve these segments Kaynra
depends on two permanent distributors. The 1st segment which is Asian market is
for mainly live crab because of the shorter distance and the high demand for live
crab. There are many traders who act as importer, purchase crab from us and
supply these to Asian countries like China, Japan, South Korea, Thailand e.g. The 2nd
segment is which is European market is for mostly for frozen crab. Most of the crab
firm in the European country began to close because of extreme cost. So the supply
of crab is lower but the demand is increasing. To grab this opportunity we have
decide to export crab in the European countries in the up coming year. As a
marketer of crab industry where the number of potential customers is very large,
Kaynra would not be able to predict the accurate number of potential customers.
Kaynra is looking forward to gain a sales volume of BDT 80500000 by the end of 4th
year. In addition Kaynra is taking effective marketing action to raise its market
share from .95% to at least 1% in next year. From last three years experience
Kaynra has found that crab fattening and exporting is a very prospective business.
Financial and other historical data complement the trend analysis stated in previous
sentence. Currently Kaynra has been facing an extensive competition in local
market. Kaynra mainly competes with firms that involve in breeding, fattening and
then exporting. Kaynra has a competitive advantage of mass fattening facilities
which is not available in other fattening firms. Kaynra is optimistic to enter to
European market with this mass production facility. Kaynra could expand its
business in last few years more if it had not faced some inhibiting problems like
failing to manage new buyer, doing less effective advertising and promotional
activities, taking competitive pricing strategy. Besides Kaynra missed out some
unrealized opportunities for instance, it did not regularly take part in trade fairs and
sea food festival, and did not take the opportunity to meet the buyers physically.
Kaynra has set a short term goal to export frozen crab in European market and a
long term goal to be largest exporter of frozen crab in European market from
Bangladesh. To accomplish these goals Kaynra has set specific objectives.

Economic Outlook
Kaynra has identified some crucial factors in the overall economy and
industry which will affect the marketing of crab in the plan period. As
Kaynra has been a successful exporter of mud crabs in South Asia and
European countries, it has sufficient cash inflows to stand in a
sustainable state. Now, concerning the cash flow Kaynra has earned, it
can plunge into an effectual marketing action. Factors like, revenues
earned by exporting, foreign exchange rate, overseas trade barriers,
government policy for the industry, competition and demand will have
a definite affect on marketing action of Kaynra.

As far as the revenue is concerned, Kaynra has earned a sales amount

of Tk. 79,380,000 in the last year. According to the business plan
Kaynra had decided to spend a significant amount which is 10% of the
total sales per annum. So, the cost of marketing promotion and
advertising is heavily depended on the sales revenue. At the end of
third year of our business as we did project we are looking forward to
spend Tk. 7,938,000 for promotional purpose.

Foreign exchange rate has always been a vital aspect for the business
people related with abroad dealings. Foreign currency values remain in
frequent fluctuations, so taking any monetary decisions regarding even
for marketing actions, it approaches prior to knock. If any of the hard
currencies oscillate a bit, many major financial resolutions halt
immediately. Kaynra’s one core commercial aspect is exporting crabs.
So before conducting any marketing action for imminent business
activities, foreign exchange rate should always be the aforementioned
concern.

Trade restrictions in many countries vary time after time and it can be
either positive or negative for the cross border business associations.
Considering Kaynra’s export oriented operations, trade barrier may
occur often among the countries that are the key importers of crabs.
As a result, the marketing plan we have prepared for those parts of the
world will not be successful.

Government policies for overseas business take always a crucial part.

Like in crab exporting business, government paid some tax holidays for
the first three years which is not going to be continued for further
business years. This cut down in incentives will raise the cost upwards.
So it will have a negative impact on Kaynra’s marketing action.
 Being a lucrative industry, crab fattening and exporting has always
been attracting trade people to be in it. So more and more competitors
are coming up on the floor to possess their share of profit. Though
extensive competition is creating an unfavorable situation for Kaynra,
in other way it is positively Kaynra forcing Kaynra to come up with an
effective marketing action.

Demand being the most important economical factor has a greater

impact on the crab exporting business. It is a continuous process to be
informed about the demand and be on the try to meet up that.
Demand determines different marketing strategy like push, pull
strategy and pricing strategy as well. Thus demand plays a significant
role in performing any marketing action.

The market---------qualitative
 As Kaynra has followed the geographical segmentation process to target
two regional segments for crab exporting they are

• Asian market (1st segment)

• European market (2nd segment)

In order to serve these two segments Kaynra heavily relies on the local distributors
for buying crablets (180-200g) to fatten. Kaynra has two permanent distributors in
Ghumatoli, Moheshkhali so far. They are Allahar Dan Enterprise and Al Kaderia
Hatchery. These two distributors have been involved in supplying crablets for more
than 6 years. They purchase the crablets from the local fishermen and distinguish
them as per their weight. Then they supply us the crablets that weigh 180-200g as
per our requirement.

Our 1st segment which is Asian market is for both frozen and live crab because of
the shorter distance and the high demand for crab. There are many
traders who act as importer of crabs in different Asian countries where a huge
number of potential buyers and consumers are waiting for those delicious mud
crabs. These importers purchase crabs from us and sell them to different
restaurants of Asian countries like China, South Korea, Hong Kong, Thailand, and
Japan at a very higher price. These importers search sellers of crabs through
internet and other sources. As because there are huge demand for crabs in Asian
market every importer depends on several exporters.

Our 2nd segment which is European market is only for frozen crab. There are huge
demands for frozen crab because the longer distance people could not find the live
crab. There are many crab firms in most of the European countries but they began
to close because of extreme cost. That’s why the supply of crab is lower but the
demand for crab remains constant. As a result the European countries are
demanding a large amount of frozen crabs from countries like Bangladesh where
the crab industry is growing very fast and reasonable price of crabs. European
importers are highly conscious about the quality of processing frozen crabs. In order
to enter to the European market Kaynra will have to satisfy their criteria to match
the quality of crabs for what they demand for. Like the importers of 1st segment the
importers of European countries also depend on several exporters to satisfy their
higher demand of crabs.

Quantitative
As we have stated earlier Kaynra has a large of potential customers around the
globe.

So it is not possible to mention the exact figure of potential customers or importers

of crab. According to our financial statement we have seen that at the end of third
year of our business we have successfully exported 113, 400kg crabs to different
market that worth BDT 7, 93, 80,000. We are optimistic that by implementing our
new marketing plan the sales volume will increase to a extent which will worth BDT
80500000(approximate) by the end of 4th year. Currently Kaynra has a market share
of 95% of total market share. Our target is to expand current market share up to 1%
of total market share by next year. As per our marketing plan we would be able to
export frozen crabs in European countries up coming year. It will ultimately help our
business to gain a higher market share as anticipated. Our current competitive
position is revealed in the “Competition” section of this marketing plan.

Fig: Showing Current Sales Volume

 Fig: Showing Kaynra’s Market Share

Trend Analysis:
If we consider the past three successful business years of Kaynra we would find that
it is heading towards the right direction. The financial statement of last three years
clearly show that the sales revenue has significantly increased from BDT
39690000(of 1st year) to BDT 79380000(of 3rd year) along with the increased sales
volume from 56700kg(1st year) to 113400kg(3rd year). Crab has a great prospect in
terms of exporting to different markets of Asia and Europe. Kaynra expect to stand
in a position by the end of fourth year where it will not meet the demand of live
crabs in Asia but also the high demand of frozen crabs in Europe. The following
chart shows the different historical data of last three years that proclaim the
success of Kaynra in crab industry so far.

Variables Year 1 Year 2 Year 3

Sales Volume 39,690,000 59,535,000 79,380,000

Production 56700 85050 113400

Profit 2124385 4051202 12138500

Market Share 0.25 0.55 0.95

Accounts Opened 2 4 5

Accounts Closed - 1 2

Table 1: historical data of Kaynra

Competition:

At the end of three successful years of business KAYNRA has many

competitors in this industry. In recent years many marketers have got themselves
involve in this lucrative industry of crab business. Generally three types of
competitors are competing in this local industry. These three types are breeding
and exporting companies, only fattening and exporting companies and trading
companies.

Companies who are involved in crab breeding and exporting are independent in
terms of their operation which starts from collecting mother crabs, hatching and
fattening to exporting. They have more competitive advantage than the other two
types of competitors. They are more successful in this business because the whole
system is controlled and supervised by them in such a way that the quality and the
quantity remain up to standard. It is assumed that this type of company will expand
their business by increasing the production capacity during the coming year.

KAYNRA belongs to the category where the companies are involved in collecting
crablets, fattening them and exporting. The numbers of this type of company are
larger than those of breeding and exporting companies but fewer than those of
trading companies. Companies like Kaynra who follows a very scientific process of
fattening have been extremely successful in this industry. These medium
enterprises are more focused on capitalizing their limited resources. It is expected
that few of these companies would go for breeding crablets like Kaynra will do in
upcoming year.

A large number of companies are involved in trading which means only buying
export quality crabs from different firms and exporting them. Though, as per
government regulation, each trader must have their own farming plant, but in most
cases, they are manipulating this regulation. These companies do not involve in
farming crablets. As a result they are highly dependent on crab farmers. They invest
comparatively a small amount and involve in less risk. They are also successful
because they have been involved for a long time. It is assumed that they might get
involved in mass farming to ensure high profitability.

KAYNRA has been concentrating on mass fattening of crabs in a scientific way. In

last few years, only a very few companies have successfully involved in mass
production and fattening crabs by following Kaynra. There are many fattening firms
but they are not as big as Kaynra. When we started our fattening plant with a land
of 40 bigha then the second big plant was in a land of only 8 bigha in Satkhira,
Khulna. With a mass production of 113400 kg export quality mud crabs this year
Kaynra has been one of the most successful farm among the competitors. Kaynra
has a competitive advantage over other competitors in terms of exporting frozen
crabs in different countries of Asia. In a very short time Kaynra has been able to
export frozen crabs with the help of BFDC. It has been possible because Kaynra had
a preplanning of exporting frozen crabs and it took necessary steps in the very
initial stage, in fact, before starting the business. Whereas others usually take the
initiatives after doing the live crab exporting for a few years. Here Kaynra has a
definite advantage over other competitors who have entered the business in last
three years.
Problems and Opportunities
After three years of production Kaynra is facing some inhibiting problems and

unrealized opportunities. Among those problems first of all, our entire marketing

manager failed to capture new market of crab. It happens because they could not

manage new buyers rather than the existing ones. Secondly, we suffered from not

having a separate marketing department which would only focus on advertising and

promotional activity. Thirdly the amplified numbers of competitors have caused the

growing bargaining power of the buyers. As a result we have to follow a competitive

pricing. And after that geographical distance with our buyers has enlarged the cost

of our marketing communication. Lack of opportunity to communicate face to face

with our buyers.

Along with the opportunities Kaynra intend to take part in International Trade Fair

and Sea Food Festival outside of our country where we have prospects. After while

Kaynra look forward to invite a few permanent buyers from different countries to
inspect the plant physically. Next Kaynra might have an opportunity to sell its

surplus amount of crabs to the local market. As we have to observe that there are

many expensive restaurants in Dhaka city where the increasing demand for crabs

are widening market opportunities for crabs.

Objectives and Goals:

Depending on the past and future possible success, Kaynra is
going to set some goals and objectives to have paced to meet
them. Kaynra has an obvious scope to reach the peak according
to the goals and objectives through choosing the projected path.

 Short Term Goal

Europe is one of the highest demanding market for frozen crabs.

So every crab producer & exporter has the inherit expectation to
plunge there to grab atleast a portion of the market. Bangladesh
frozen crab industry is still unable to get the permit entering into
EU market for insufficient quality. But Kaynra is promising to
provide best quality frozen crab and capture that demand into
the eminence supply frame.
 Long Term Goal

Kaynra is projecting to state itself as the leading exporter of

frozen crabs in European countries from Bangladesh. After
getting the permission for the frozen export, many more
competitors will raise their heads up for the trade. But Kaynra,
as the first mover to that market, will try utmost to maintain the
throne of market leader.

 Short Term Objective

➢ Qualitative

Europe holds a high demand for frozen crabs in an increasing

order. To produce or fatten crabs inside EU is immensely
expensive. Continuous stoppage of Europe’s local crab farms is
the result for this scenario. So Kaynra has a vivid prospect to
stand in that situation and present itself as a probable exporter
of frozen crabs.
Kaynra will endow with customized size, packaging and labeling
on the package consistent with the demand informing from the
importers of Europe. Indisputably Kaynra will supply with the
excellent quality frozen crabs as well as the importers order.
 ➢ Quantitative

Kaynra has gained sales revenue of Tk. 79,380,000 at the end of the
third year of business with 100% production. Now on the upcoming business
year, Kaynra’s projection is to earn Tk. 13,267,800 from only exporting frozen
crabs inside the EU border.
As Europe is one of the giant importers of frozen crabs among all
other parts of world, it is a lucrative market to possess a portion
of that. Kaynra is planning to grab atleast 1% of the total market
share and sustain with that in its market forecast.
European frozen crab market is highly profitable for all the
exporters around the world. As Kaynra is planning to be a part of
that, so it will also face a handsome amount of profit margin.

 Long Term Objective

All other local exporter may follow Kaynra heading off to

European market getting along with the frozen crabs will create
an extensive competition for the survival. So Kaynra will break
through this rivalry beating all the existing competitors with the
best quality and customized service for the importers.

Kaynra will form a department consisting expertise for specially

exporting frozen crabs to Europe. This branch will remain busy in
assessing the demand of European market for frozen market
and find out innovative ways to serve.
Sun Mon Tue Wed Thu Fri Sat

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April 2008
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27 Kaynra
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Plot# 8, Road# 12, Sec# 10,

Uttara Model Town, Dhaka- 1230

Phone: (02)8916083-5
Website: www.kaynra.org
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Kaynra

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As the country’s first commercial crab producer,

KAYNRA will produce crabs in a controlled
process to ensure quality, both in size and health
and supply them to the Global market. This
business falls under the seafood industry. The
company will be utilizing aquaculture technology
to farm crabs. Full control over the process will
allow production of quality crabs and supply at a
competitive price. This will make The Company
unique in producing disease free crabs in a
standard size, which is the main requirement of
the importers. KAYNRA is mainly targeting the
Asian market comprising of Malaysia, Singapore,
Taiwan, Hong Kong etc.
Our crab farm layout

Phone: (02)8916083-5
Plot# 8, Road# 12, Sec# 10,
Website: www.kaynra.org
Uttara Model Town, Dhaka- 1230
To contact us:
 Kaynra

Plot# 8, Road# 12, Sec# 10,

Uttara Model Town, Dhaka- 1230

To
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__
 INSIDE STORY 2

INSIDE STORY 2
Times of London
INSIDE STORY 2
KAY N RA
INSIDE STORY 3
De Crab Paradiso April 11, 2008

INSIDE STORY 4

Kaynra is a partnership of market leader.

business company which came In current scenario, seafood
ing market for frozen crabs. So
in crab industry three years producers are the one who are
every crab producer &
INSIDE STORY 5 earlier. Kaynra is the largest getting the best out of the
exporter has the inherit Special points
fattening farm consisting of situation. In Bangladesh there
expectation to plunge there to
self scientific facilities. Initially
grab atleast a portion of the of interest:
is a huge scope for
INSIDE STORY 6 it started its business by
market. Bangladesh frozen aquaculture using currently
exporting live crabs to Asian unutilized resources. Tapping
crab industry is still unable to
market. Now Kaynra is heading into a•billion
off to European countries with
get the permit entering into EU FROZENdollar
CRABS
market with
market for insufficient quality. the resources we already will
the best quality frozen crabs. surely• be
EXPORT
a big boost for the
But Kaynra is promising to
Europe is one of the highest economy of Bangladesh .
provide best quality frozen
demand • HEADING OFF TO EUROPE
crab and capture that demand
into the eminence supply • IMPACT IN LOCAL ECONOMY
frame. Judas Priest
• FOREIGN EXCHANGE
Kaynra is projecting to state
itself as the leading exporter
of frozen crabs in European
Kaynra fattening process
countries from Bangladesh.
After getting the permission
for the frozen export, many
more competitors will raise
their heads up for the trade.
But Kaynra, as the first mover
to that market, will try utmost
to maintain the throne
Inside this
issue:
 Kaynra

Wishing you a progressive & eventful ‘New Year’

With regards

Plot# 8, Road# 12, Sec# 10,

Uttara Model Town, Dhaka- 1230

Phone: (02)8916083-5
Website: www.kaynra.org