Khati Food Ltd. is an organic food company looking to expand its business. A marketing campaign is proposed with the goals of establishing resilient sales distribution, promoting the brand, and gaining farmers' trust. The campaign implements a push-pull strategy using retailer-focused trade marketing and brand promotion. It establishes accreditation for food safety, relaunches the brand, segments the market, and implements a multi-phase plan including improving supply chains, partnering with retailers, and digital/ATL awareness campaigns. Key performance indicators and a budget are provided, with the campaign estimated to reach over 300,000 people with a 58.4% projected ROI.

1. CASE
FINAL ROUND
INCEPTION OF AN ORGANIC FOOD
COMPANY

2. THE CONTEXT
Organic food is produced by methods complying with the
standards of organic farming. Standards vary worldwide, but
organic farming features practice cycling resources, promote
ecological balance, and conserve biodiversity. Organizations
regulating organic products may restrict the use of
certain pesticides and fertilizers in the farming methods used to
produce such products. Organic foods typically are not
processed using irradiation, industrial solvents, or
synthetic food additives. From an environmental perspective,
fertilizing, overproduction, and the use of pesticides in
conventional farming may negatively affect ecosystems,
biodiversity, groundwater, and drinking water supplies. These
environmental and health issues are intended to be minimized
or avoided in organic farming. Demand for organic foods is
primarily driven by consumer concerns for personal health and
the environment.

3. People are becoming more aware of the health hazards
posed by pesticides and harmful chemical additives,
prompting some organizations, including UBINIG, Nayakrishi
Andolon, Prakritik Krishi Biponon Kendra, and Shoshsho
Probortona to open outlets and produce organic food across
the country. Every year, Tk 4,000 crore worth of urea
fertilizers used are by the farmers as well as harmful
pesticides and chemicals. (Ahmed, 30 December 2018)

4. THE COMPANY
KHATI Food Ltd. is an organic food company that started its
journey in 2016. They are one of the emerging ventures in
Dhaka in the organic food industry. To expand in the market,
it's important to grow constantly and update their portfolio.

5. They started their journey at 2016 with 50 farmers. Their vision
is to produce organic food without harmful pesticides and also
taking care of the farmers by ensuring the fair price of their
harvested crops. They believe cutting down the middleman
from the supply chain of the food industry is beneficial to the
end customers and the farmers as well. To meet their vision,
they collaborated with farmers and started providing organic
fertilizers and seeds to them. After collecting the crops from
farmers, they sell their products to their retail stores in Dhaka.
Their goal is to expand its business and become one of the
best organic food companies in Bangladesh. They are now
expanding their business in Chittagong and Khulna.
At the beginning of their journey, they used to sell only organic
fruits in the market. Now, they are selling all organic groceries,
vegetables, and fruits along with 500 farmers from all over
Bangladesh and selling their products in 5 retail stores in
Dhaka City.

6. Your Drawback
Before planning any activities, a budget constraint should be
kept in mind. KHATI Food Ltd. has a budget of BDT 50,00,000,
so under no circumstances can the marketing and sales team
exceed it.
Your Task
You Job as Sales and Marketing Head of KHATI Food Ltd. to
prepare a resilient sales distribution channel to prevent
disruption like the current pandemic.
Now you are asked to design a marketing campaign for brand
promotion, reach out to the end customers and gain their
trust towards our brand. At the same time, you have to
influence more farmers to work in partnership with us to
support the expansion of the business in two major cities.
References
Ahmed, S. (30 December, 2018). Appetite for organic food on the
rise. Dhaka: The Independent.

7. Submission Instruction
• Solution must not exceed 20 slides.
• Rename the case solution file before submission using this
format: ‘Team Name_promo code’. For example: Team
Phoenix_case025.
• The subject of the email must be Team Name_CaseFinal. For
example: Team Phoenix_CaseFinal.
• Submit your pdf format of the case solution to
horizonevent2k16@gmail.com.
• The deadline for the submission of final round is 17 Oct,
11.59 AM.
• Any submission past the deadline will be penalized.
Your solutions should not Contain the followings:
• The Name of Your University
• The Name of Your Team Members
Horizon 2020 reserves the right to change the decision at any
time.

8. JUDGEMENT CRITERIA
Industry Analysis 5
Core Issue Identification 10
Target Market Analysis 10
Big Idea 15
Sales Strategies 10
Promotional Strategies 15
Monitoring, Evaluation & Contingency Plan 15
Financial and Operational Feasibility 10
Creativity and Innovation 10
Total 100

9. POWERED BY
Rolling
Stone
INCEPTION OF AN ORGANIC FOOD
COMPANY

10. SITUATION ANALYSIS
CURRENT PRODUCTS
AIM
To Re-Launch Khati Food Ltd. developing resilient sales
distribution channel and establish it as one of the first
choices when buying organic foods influencing more farmers
to work in partnership to support the expansion of the
business in Chittagong and Khulna

11. PRODUCT ANALYSIS
INDUSTRY ANALYSIS
Highly saturated Low differentiation Highly dependent on the
distribution network

12. COMPETITOR ANALYSIS
The prominent market leaders capitalize
on a few factors and keep threat to new
entry low.
Some of their characteristics are:
1. Competitive pricing
2. Variation in product
3. Stressing on nutritional values
SYMPTOMS
Unfamiliarity of
products in the
mass market
● No fixed value proposition
● Insignificant promotion
● Target group not well defined
● No actual touchpoint-centric engagement
Poor
Distribution
System
● Ineffective Supply Chain
● Ineffective Retail-based strategy
● No Credit Policies in place
● No use of 3rd party logistics

13. CORE ISSUE
Failure to establish a meaningful relationship
between the brand and end consumer.
BIG IDEA
INTEGRATING THE
PUSH-PULL STRATEGY
Implementing a retailer oriented
trade marketing strategy and
simultaneously creating demand
through branding.
ACCREDITATION: IMPROVING
FOOD SAFETY IN COVID-19
● Establishes confidence about the safety
and quality of Khati Food items and
credibility of certification
● Builds trust and reduces costs within
supply chains
● Assists in facilitating international
trade
● Offers opportunity in the post
pandemic recovery and sustainability
in market

14. Relaunching Khati Food Ltd.
- Tagline tying the idea of quality and trust
together
- Premium Packaging expressing high
quality appeal
- Packaging emphasizing on High Nutritional
Value
প্রাকৃ িতক িবশুদ্ধতায় অিবরাম আস্থা
Target Segmentation
B2B
Small Dealers and
Retailers
B2C
Upper and Upper
Middle Class
Healthy Eaters

15. USP
QUALITY ASSURANCE
Plan of Action
PHASE 1
CREATING A STRONG SUPPLY CHAIN
Distribution
CURRENT SUPPLY CHAIN

17. PHASE 2
ESTABLISHING KEY RETAILERS
B2B Retailers
Permanent Retail
Shops
Mom and Pop
shops
Commision based
cashback system
Line of credit
policies
LINE OF CREDIT CRITERIAS
-Year(s) in Operation
-Goodwill in Market
-Number of Employees
-Revenue and Assets
-Credit History
-Public Records Information
Vestibulum congue tempus
After1yearPerks
B2B

18. PHASE 3
INCREASING BRAND AWARENESS
B2C
ATL
TVC
That focuses on our Quality and the
essence of Trust
Print Ads
that look like Khati Food packets can be placed in
newspapers
BTL
Sales Representatives in
Superstores
In Store Placards

19. SOCIAL MEDIA CAMPAIGN
Current Social Media posts are very monotonous
which only posts a picture along with phone
number of dealers.
Social Media Posts has to be more engaging
and more informative.
This increases brand awareness and creates
word of mouth.
আপিন জােনন িক খাঁটি এর প্রাকৃ িতক ফলমূল কাথা থেক উৎপািদত?
YOUTUBE
Sponsor famous cooking channels
on Youtube such as “Cooking Studio
by Umme”
Youtubers shall be incentivized to
promote the nutritional values and high
quality of Khati Food Ltd.
Viewers will wish to copy the recipe and
will be more likely to use the product being
used in the video.
Digital Marketing
Digital Marketing
B2C
B2C

20. B2C
Digital Marketing
Develop Own Website
FEATURE ON THIRD
PARTY WEBSITES Like
Chaldal

21. TIMELINE

22. LONG TERM
Set up Exclusive Distribution Centers in Chittagong and Khulna:
TARGET
GROUP
High and Middle
Income Earners
of the Locality
GOAL
To create a ‘SKS Ecosystem’
where all the products of
Khati Food Ltd. will be
available
Invest in Research and Development:
GOAL:
● To Forecast Supply And Demand
● To Ensure Timely Delivery Of Products
● To Reduce Operational Cost

23. CONTINGENCY
● Downsize Packet of Rice, Lentils, Fruits, and
Vegetables
● Sell Unbranded Open Organic Foods
Target Group
Business
wholesaler
retailers
Goal
Sales in volume
to maximize
profit
KEY PERFORMANCE INDICATORS
Increase in
sales
Social Media
Buzz
Return On
Investment
Farmers and
Customer
Relationship
MONITORING AND EVALUATION
Survey to find
Brand
Awareness
Quarterly
feedback from
various
channels
Financial
Targets
Monitoring
Shelf-Life to
evaluate
Distribution
Channels

24. COMPREHENSIVE BUDGET
Items Quantity Average Cost
(BDT)
Calculation Total (BDT)
Making of TVC 1 100000/TVC 100000 x 1 100000
Airing of TVC 2 Channels 972500/channel 972500 x 2 x 1 1945000
Social Media 1 25000/month 25000x 6 150000
Newspaper Fliers 2 20000@1.5/flier 2 x 20000 x 1.5 x
2
120000
Website
Redesigned
1 200000 200000 200000
Website
Maintenance
30000/month 30000 x 5 150000
In-store Placards 300 stores 8/unit 300 x 8 x 4 9600
Credit Rating
Training
100 3000/employee 3000 x 200 600000
Credit Rating
Team Salary
20 3000/employee 20 x 3000 x 5 300000
Sales
Representative
5 10000/employee 5 x 10000 x 5 250000
Third Party
Logistic
1 9616/month 9616 x 12 x 1 115400
YouTube
Sponsorship
2 50000/year 50000 x 2 100000
Third Party
Website
3 20000/month 20000 x 6 x 3 360000
Retailer
Commission
50 1000/month 50 x 1000 x 12 600000
Total 5000000

25. TOTAL REACH
Items
Reach on Avg.
channel
PER campaign
Calculation Total (BDT)
TVC 91346 91346 x 2 182692
Third Party
Website
2000 2000 x 3 6000
Social Media
Video
30000 30000 30000
Newspaper Fliers 8000 8000 x 2 16000
In-store Placards 40 40 x 300 12000
YouTube
Sponsorship
16346 16346 x 2 32692
Retailer 50 50 x 500 25000
Sales
Representative
5 5 x 30 150
Total 304534

26. ROI
Items Formula Calculation Value (BDT)
Cost per Reach (Total Investment/Total
people reached)
(5000000/304534) 16.42
Revenue Assuming 13% of
customers reached
buy
Khati Food Items
worth of 200 BDT
304534 x 0.13 x 200 7917884
Net Profit Revenue - Investment 7917884 - 5000000 2917884
ROI ( Net Profit / Total
Investment)
2917884 / 5000000 0.58358
FINANCIAL TAKEAWAYS
TOTAL BUDGET
BDT
50 Lacs
COST PER REACH
BDT
16.42
ROI
58.4%

27. TAKEAWAY
- Minimizing cost and increasing efficiency by cutting off intermediary
- Incentives offered to Retailers
- Proper Supply Chain and resilient Sales Distribution Channel Established
- Brand Awareness and Trust built on the consumer end
- Expanded business in Chittagong and Khulna with the partnership of the
farmers
Overall, segment-based strategies implemented that can put Khati Food Ltd. back
on the map of Market Leaders