Marketing Mix
1. Product: Traditional Bhutanese alcohol made by local farmers packaged in eco-friendly
bottles
- Special features: Each alcohol is crafted by locally sourced ingredients using
traditional brewing methods.
- Branding: The brand emphasizes Bhutanese heritage, with a strong cultural identity
- Packaging: Eco-friendly and culturally inspired packaging reflects Bhutan’s
traditions. It also comes with a brief story about its origins and significance
- Customer Service: Provides responsive customer service like product
recommendations, flexible options for customized orders
2. Price: It is a cost-oriented and demand-oriented pricing strategy that will factor in
production costs while emphasizing the product’s cultural and artisanal value.
- Premium Pricing: Position the products as high-quality according to the preparation
methods and the uniqueness of each beverage
- Bundle Pricing: Offer bundled sets of all three drinks or mini bottles as an attractive
option for tourists and gift-givers
- Subscription Pricing: subscription model offering a monthly bottle to regular customers,
creating a community around the brand
- Single bottle (750 ml):
Ara: Nu. 350
BangChhang: Nu. 400
SingChhang: Nu. 400
Wheat Ara: Nu. 400
MenChhang: Nu. 550
OmChhang: Nu 400
Pangma: Nu. 550
- Gift Set (3 bottles – Ara, BangChhang, SingChhang): Nu 1050
(This bundle price offers a slight discount compared to buying each bottle separately,
making it attractive for special occasions and gifts.)
- Miniature Set (3 Mini Bottles – 250 ml each): Nu. 650
- ChhangKay
Small Pack: Nu. 150
Large Pack: Nu 350
- Subscription Model (for monthly delivery)
Monthly Subscription: Nu. 900
(Includes one 750 ml bottle of choice each month)
3. Place:
- Local Distribution Channels: Bhutanese Artisan and Craft Shops, restaurants and hotels,
festival & event booths, duty-free Shops
- International Expansion: E-commerce Platforms (like amazon handmade), Tourism
Partnerships
4. Promotion
- Social media marketing (Instagram, Facebook) targeting Bhutanese expatriates, travelers,
and cultural enthusiasts.
- Collaboration with travel and cultural influencers.
- Limited-time discounts
- Customer Stories
Sales per Annum
- Estimate Sales Volume
Ara: 2000 bottles per year
BangChhang: 1500 bottles per year
Singchhang: 1000 bottles per year
Wheat Ara: 500 bottles per year
MenChhang: 400 bottles per year
OmChhang: 800 bottles per year
Pangma: 400 bottles per year
Gift Sets: 200 per year
Miniature Gift Sets: 150 per year
ChangKay (Large): 500 per year
ChangKay (Small): 300 per year
Subscription: 100 per year
- Annual Sales Revenue for each product:
Ara: 350 * 2000 = 700000
BangChhang = 400 * 1500 = 600000
Singchhang: 1000 * 400 = 400000
Wheat Ara: 500 * 400 = 200000
MenChhang: 400 * 550 = 220000
OmChhang: 800 * 400 = 320000
Pangma: 300 * 550 = 165000
Gift Sets: 200 * 1050 = 210000
Miniature Gift Sets: 150 * 650 = 97500
ChangKay (Large): 500 * 350 = 175000
ChangKay (Small): 300 * 150 = 45000
Subscription: 100 * 900 = 90000
- Total Annual Sales Revenue = 3222500 (Projected Annual Sales)
Marketing Expenses (Three-year projection)
1. Salaries: Salaries for marketing, sales, drivers, and helpers are included to support
promotional activities, distribution, and customer engagement.
2. Commissions: Incentives for the sales team to boost performance, with a target-based
commission structure.
3. Maintenance of Fixed Assets: Regular upkeep of vehicles and office equipment, which is
essential for smooth marketing and distribution operations.
4. Fuel and Supplies: Transportation for product distribution and promotional materials.
5. Telephone and Miscellaneous Expenses: Communication expenses for sales and
marketing activities, including customer service and client interactions.
6. Depreciation: Yearly asset depreciation, ensuring equipment and vehicles are accounted
for as they contribute to marketing.
Expenses Year 1(Nu) Year 2(Nu) Year 3 (Nu)
1. Salaries of Marketing Manager 120000 126000 132300
2. Salaries of Sales Agent 96000 100800 105840
3. Drivers’ Salaries 60000 63000 66150
4. Helpers’ Salaries 48000 50400 52920
5. Commissions (5% on sales) 50000 60000 70000
6. Maintenance of Fixed assets 20000 22000 24000
7. Fuel 15000 16500 18150
8. Supplies 10000 11000 12100
9. Telephone 6000 6300 6615
10. Miscellaneous Expenses 8000 8400 8820
11. Total Expenses before 433000 464400 496095
Depreciation
12. Depreciation of Fixed Assets in 30000 30000 30000
Marketing
13. Total marketing expenses 463000 494400 526095
Depreciation Calculation of Fixed Assets in Marketing
(helps account for the gradual wear and tear of assets used in marketing like vehicles, computers
and other equipments)
Asset Specification Purchase Estimated Depreciation
Price (Nu) Life (Years) per year (Nu)
1. Marketing Vehicle Small 180000 6 30000
Delivery Van
2. Office Equipment Computers, 90000 3 30000
Printers, etc.
Total Annual Depreciation 60000
The total depreciation amount is included in the yearly marketing budget as it affects the
financial statements by recognizing the asset’s decreasing value over time, ensuring that each
year’s financial report reflects asset usage and value.
