Introduction
Jute is a bio-degradable eco-friendly item. Prior to nineties, jute fabric was used for making low cost carry bags and gunny bags for packing rice, paddy, sugar, dal, cement etc. With the start of Jute diversification, a large market has developed for the jute yarn, jute fabrics and other jute based products. With the market assistance of Ministry of Textile & Jute and Bangladesh Jute Mills Corporation a large production base of small and cottage sector units have come up with a wide variety of products and are sold through exhibitions organized by different agencies. Both Ministry of Textile & Jute and Bangladesh Jute Mills Corporation have their own development schemes to support jute entrepreneurs beginning from imparting “Basic Training Programme”,“Advance Training Programme”, “Advance Training cum Design Dissemination Programme ”,“Technical demonstration” and “Buyer Seller Meet”. They are also assisting the jute entrepreneurs to sell their products through different Trade Fairs/Exhibitions in the country. Ministry of Textile & Jute is also providing marketing assistance to jute entrepreneurs by providing them stalls in the trade fairs/exhibitions in the domestic market as well as in the foreign markets. For creating pollution free environment the Govt. has started discouraging the use of polythene and rexin items. the polythene bags have been totally banned .For eco-friendly character the demand for jute yarn, jute fabrics and other jute items is increasing very fast. New technologies have evolved for bulk use of jute as a raw material in the production of high value added and price competitive final products. A host of innovative new products have been developed high value addition such as home textiles, jute composites, jute geo-textiles, technical textiles, handicrafts and fashion accessories etc. Jute fabrics are strong, durable, light, color fast, attractive and cheaper than most fabrics made from other fibres. These are anti static, UV protective, carbon dioxide neutral and naturally decomposable i.e. free from the health hazards. Jute fabrics are excellent raw materials for jute bags. The proposed unit will make high quality jute bags which have demand in the domestic market as well as in the foreign market. Bangladesh Jute Mills Corporation, Ministry of Textiles , Govt. of Bangladesh has appointed collaboration agency all over Bangladesh for operating “Bangladesh Jute Research Institute” in order to supply jute raw materials to jute artisans at best quality jute at mill gate-price.

Basic Jute products fabrics produced in jute mills in Bangladesh are of standard constructions classified as the following :
1) Hessian Cloth
2) Sacking Cloth
3) Jute Yarn and Twines
4) D. W. Tarpaulin
5) Canvas
6) Bags
7) Hydrocarbon Free Jute Cloth
8) Geotextiles

About Jute Bags

Shopping Bags are made from hessian or sacking cloths with handles, straps, chains in different shapes and dimensions. They are used specially for marketing. They are bleached and decorated with different artistic designs. Promotional bags are generally sample bags to promote items for sale. Polylined / Polylamined bags are hessian or sacking bags with a coated polythene film.

Advantages of jute bags
The use of jute bags instead of plastic bags offers many advantages, including the following: * Jute bags are ecological * Jute bags are durable * Jute has a low ecologic footprint * jute has a low water footprint * Jute is Cradle to Cradle * Jute bags degrade biologically in 1-2 years * Jute bags are extremely strong * Jute bags can be reused and are thus very environmentally friendly * Jute bags are trendy and hip!

Our Product : CARRY BOY
In the current era where pollution is an ever increasing issue it is our responsibility to do what we can to help prevent and minimalize it. One of the biggest sources of pollution are plastic bags. Plastic bags are non-biodegradable and very costly and inefficient to recycle when disposed.
Jute Bags have proved to be an ideal replacement for plastic bags. Bags made from these natural fibers are bio-degradable, eco-friendly, reusable and at the same time help create awareness to the disadvantages of using plastic bags. Jute Bags are common in our day to day life . it is a matter that there have a lots of scope in a Jute Bags but we cannot use it properly because of its formation and usability . We can use a Bag made of Jute in every aspect of day to day life. So here we made a, CARRY BOY ,a bag made of Jute that can be use in several way.

Features of CARRY BOY
1.It is reusable.
2.It is cheap.
3.It is eco-friendly.
4.Does not require any maintenance.
5.Can carry heavy weights.
6.It is long lasting and durable.
7. It is very attractive and easy on the eyes

###

Marketing strategy

Segmentation:

The firm based on distinct need, characteristics and behavior have chosen the “micro Marketing” level of marketing segmentation. Where the firm chooses different segments for Male bag and Female bag.

Bases for segmenting consumer markets:

The bases that the firm have chosen are:

1. Geographic- * Density- Urban area. * Division- Dhaka, Chittagong. 2. Demographic- * Age- Anyone above child. * Gender- Male and Female. * Income- Above 2000. * Occupation- Professional and technical; managers; officials; businessman; proprietors; supervisors; students etc. 3. Psychographic- * Life style- Culture and outdoor oriented. * Personality- Innovative, compulsive. 4. Behavioral- * Occasion- Regular and special occasions. * Benefit- Quality, service, economy, convenience. * User status- Nonuser, potential user, regular user. * User rate- Light user, medium user, heavy user. * Readiness stage- Unaware, aware, interested, intending to buy. * Attitude towards product- Enthusiastic, positive.

Effective segmentation criteria:

The firm uses multiple segment specialization where product specialization is followed as the firm sells the Jute Bag for male and female, which fulfills the criteria of- 1. Measurable-Businessmen, students, jobholders, non job holders- all male anf female can use the bag. 2. Profitable- The segment is largest possible homogeneous group worth going after with a territorial marketing program. 3. Accessible- The segments are effectively acce3ssible. 4. Differentiable- The segments of male and female are conceptually distinguishable and respond differently to different marketing mix elements and programs. 5. Actionable- Effective programs are formulated to attract and serve the segments.
Evaluating and selecting target market segments-

Here the firm uses the differentiated target marketing strategy for the product Jute Bag. From the five patterns of target market selection the firm chooses the “ Selective specialization” for two segments of male and female and for two bags for male and female.After that the firm’s segment by segment plan will be develop selective products like the Jute bag and expand the market.

Differentiation:

The firm will differentiate itself at every customer contact point. Such as- product, service, channels, people and image.Through product differentiation the Jute bag can be differentiated on form, features, performance, durability, reliability, repair ability, style and design.
The firm also differentiate the services through speedy, convenient, ordering ease, careful delivery, customer training, consulting, maintenance and repair that will accompany the product.
The firm of Jute bag will practice channel differentiation, gain competitive advantage through the way they design their channel’s coverage, expertise and performance.
The Jute bag firm will also gain a strong competitive advantage through people differentiation- hiring and training better people,courtesy, credibility, reliability, responsiveness, communication then it’s competitors.
The brand image of Jute bag will convey a products distinc benefits and positioning and develop a strong and distinctive image that call for creativity and hard work.
Differences that the Jute Bag’s firm will promote:

The Jute bag firm will promote that are meaningful or worthwhile. Such that-

1. Important: The bag will deliver highly valued benefit ot target buyers. 2. Distinctive: The firm will offer the differences, or the company can offer it in a more distinct way. 3. Superior: The differences of the bag is superior to other ways that consumer might obtain the more benefit. 4. Communicable: The differences are communicable and visible to buyers. 5. Preemptive: Competitors can not easily copy the differences of the bag. 6. Affordable: The bag is affordable to almost everyone. 7. Profitable: The Jute bag company can i9nduce the differences profitably.

Positioning

Positioning strategy:

The full proposition of our brand which is value proposition-the full mix of benefits on which the Jute Bag is differentiated and positioned is the price and benefit of the Jute Bag. The Jute Bag follows the positioning strategy-which is same for more-a brand offering comparable quality at lower price. A graph is shown below of the positioning strategy of the Jute Bag:
Price

Benefit
More for more | More for same(Jute Bag’s strategy) | More for less | | | Same for less | | | Less for much less |

Figure: Positioning strategy of Jute Bag.

Positioning Statement of Jute Bag:

To the school going, college going, university going students, job holders, housewife’s who need a easy handy bag, our .... .. Company is a well known company that priovides the best quality multipurpose qualityfull Jute Bag at low price. Here ....company cover the double selling proposition technique and more for less positioniong strategy.

Competitive Analysis

Identifying competitors

Sts Non Oven Bag
[Manufacturer] Bangladesh
Brand Innovation
[Supplier] Bangladesh
Texture
[Supplier] Bangladesh
Trade Zone International
[Manufacturer] Bangladesh
Juteex
[Manufacturer] Bangladesh
Bag & Pack Inc.
[Manufacturer] Bangladesh
Oishi Trade Associates
[Manufacturer] Bangladesh
Ifiber
[Manufacturer] Bangladesh

SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

Competitive strategies

Five Forces Analysis

• Threat of New Entrances (Low)

The investment environment is enabling and there are hardly any barriers for new comers. Characteristically the quantum of investment in jute products is not too high and the profitability is low. There is space for new entrants to the business. The key barrier in this business is with respect to the labor. It is rather difficult to find and maintain productive skilled labor. Furthermore, raw jute is insufficient for the intended scale of production in Bangladesh as the growers switch to grow other crops. Even though, it is not difficult to conduct the business in jute products but it’s also not easy to run the business smoothly due to the overall decline of the market. Moreover, the production in Bangladesh is for domestic consumption only and not for export to other countries

• Bargaining Power of Buyers (High)

The buyers’ power is collectively significant. Mostly the price of jute is set depending on the demand. As the consumption rate of jute products in Bangladesh has progressively declined along with the influx of substitute products in the market therefore, the buyers have limited ability to maneuver with the price charged to the customers. There is no switching cost to consumers for changing their consumption behavior to consume more in substitute products such as plastic. Therefore, the bargaining power of buyers is high.

• Bargaining Power of Suppliers (High)

The bargaining power of suppliers in term of middlemen is high because mostly suppliers of raw jute are middlemen. They play a major role of being a link between the grower and the manufacturing mills. In addition to purchasing and selling the raw jute, these middlemen often perform such essential functions as assembling and storing the crop, transporting it to the secondary market, and financing the various transactions. The bargaining power of suppliers in term of growers/farmers of jute raw is low in comparison to the manufacturing mills but high with respect to the middlemen. This is due to the fact that they can switch to other crops which give them more productivity substituting jute at no switching cost. It might result in a drop in productivity if the growers/farmers turned to other alternative crops.

Threat of Substitute Products (High)

The threat of substitute products is high because there are numerous substitute products such as synthetic plastic, nylon, and other man made fibers. They have preference due to the durability and lower cost. For example for jute bags, the substitute products are plastic bags, leather bags, and cloth bags. Amongst them plastic is cheaper and more economical. The latter two are more durable even though the cost is high. In case of packaging products, the substitute products are boxes, and aluminum which are more waterproof suits grain product better than jute.

• Rivalry Among Existing Competitors (Low)

The competition in domestic is low because there is little competition in Bangladesh.

On the other hand, the competition in the international market is high as there are many countries competing through production and supply for domestic as well as for exports for global consumption. The big key players in international market are India and China .
China is the largest exporter of raw jute, and India is the largest producer as well as largest consumer of jute products in the world. Therefore, the local price of raw jute in China is defector the international price.

Environmental Scanning (PEST Analysis)

Political Factors

Jute is normally a part of the agro-economic policy of Bangladesh and features in the export list. A recent report stated that farmers in Bangladesh grew jute in the non irrigated areas between 1996 and 2002. At the same period of time, jute farming was costly and not profitable to jute farmers. Thus, the production of jute started declining. Before 2002, in the crop year 2000/2001, Bangladesh government launched two regulations. The first regulation was the price floor of bleached jute . The second regulation was that Bangladesh government allowed the sack manufacturers to import jute from international market.
Therefore, Bangladesh government mentioned its mission to support jute farmers. Mainly, Bangladeshi jute farmers have retted and bleached jutes in the natural sources of water. However, it was also hard for them to find a sufficient amount of water to ret and bleach jute, particularly the farmers in the northeast of Bangladesh .
Therefore,Bangladesh government decided to encourage jute farmers to use a method of tank retting.Also, the size of retting tank should be extended. That will help the farmers to save water.
However, after the market needs a recyclable product to replace plastic bags, jute product may be an alternative to response to this problem of Bangladesh government.

Economic Factors

In fact, jute is one of key cash crops in Bangladesh. Nowadays, the demand and supply of jute are declined. The decline from demand side and supply side has a negative impact of jute. Also, the farming of jute is declined. These factors push Bangladesh to import jute from India or China.
In Bangladesh , a key factor behind the decline of jute farming also comes from the agro-economic reason. The jute farmers found that the planting cost of jute washigher over the time. Thus, this factor raised the price of jute in the domestic market as a time pass by.
In the demand side, mainly, jute becomes a raw material in woven sack industry and pulp industry in Bangladesh . When the domestic production of raw jute is declined, Bangladesh government decided to import the bleached jute from the foreign market. The imported jute would supply the demand from sack industry. However, over the time, jutes played a lesser important role in pulp industry. Thus, the demand of jute in Bangladesh declined further. By contrast, when the demand of jute declined, the demand of polypropylene fibers (a synthetic fiber from petroleum) increased. This changed the sector of packaging industry in Bangladesh .
However, one weakness of polypropylene fibers is the price of oil. If the price of oil rises, the production of polypropylene fiber will be raised. Thus, this also brings a new opportunity to the diversification of jute products in Bangladesh .

Social Factors
Farming behavior also causes the decline of jute production in Bangladesh in 1990s. Mainly, jute is grown in the central region and the northeast region of Bangladesh . However, the key factor brought the decline of jute in Bangladesh was that the jute farmers cultivated jute in the non-irrigated areas. This is not an appropriate way of jute farming, because the production of jute fibers needs a certain amount of water to ret and bleach jutes. the number of farmers was declined over the time. These factors did not motivate many jute farmers to continue their jute farming. Later, they replaced jutes with other cash crops such as tapioca, sugarcane or maize, because these cash crops can make more income. Besides the problem about water supply for jute farming, the new breeding of jute also is expensive for the jute farmers who wanted to sell the higher-qualified jute.
In addition, the introduction of new material from petrochemical complex caused the decline of the use of jute sacks. That product was known as “polypropylene bag”. This became a market trend in 1988. The plastic resin chemical provided the domestic supply of for bag manufacturing.

Technological Factors

Normally, jute in Bangladesh is still belonged to the traditional market. In other words, it lacks the diversification of jute products. At the same time, the plastic-fiber technology was introduced to market in early 19801. That is called “polypropylene fiber”, a synthetic fiber made from petroleum. After polypropylene fiber entered to Thai market, the Bangladesh woven sack industry preferred to use polypropylene bags for fertilizers, rice, tapioca and other agricultural products.
In other words, in Bangladesh , technology of oil refinery brought the advancement of synthetic fiber, while the technology of jute fiber lost its technological competition. This means that Bangladesh needs the technology of jute.

Forecasting of demand:

Creating a successful forecast demand ensures that you have enough inventory for the upcoming sales period. A demand forecast looks at sales data from the past to determine the consumer demand in the future. With an accurate demand forecast, you will have operations that are more efficient, better customer service, and a reduced lead time on manufacturing products. An accurate demand forecast will help you avoid high cost operations, poor customer service, and a shortage of product. There are five parts of forecasting demand for any product. They are followed by:

* Gathering information * Using judgmental approaches * Using experimental approaches * Using relational approaches * Using time series approaches
And by following above approaches we figured out the demand aspect of JUTE BAGS.

Market & Forcasting Demand Aspect

Every responsible citizen considering the black future of ours next generation shall stop using plastic carrier bags used for shopping as much as possible. Plastic bags in general take anywhere from 20 to 1000 years to breakdown in the environment. The natural alternative is jute bag. Decorated jute bags and shopping bags are very much in demand both for domestic and international market. With the increase of population the scope of trade and industry is also increasing. As the bags are an essential commodity for human, so the demand of the product is growing day by day. The demands of the product remain consistent through out the year. So, it is presumed that there is a good scope for starting of such type of industry with a huge export potential.
Global consumer demand for eco-friendly products has increased in both developed markets (such as Western Europe, the United States and Australia) as well as new markets with emerging opportunities (such as the Middle East) mainly because of heightened awareness of the ill effects of environmental pollution and global warming.
Large chain stores are also offering alternate bags made of jute or cotton. This proves there is healthy global demand for these products due to the growing awareness of and demand for eco-friendly and biodegradable products.
In 2002, Bangladesh imposed an outright ban on all thinner plastic bags in Dhaka after they were found to have choked the drainage system during devastating floods. The measure triggered a revival of the local jute bag industry. Jute bags are more robust and durable and these bags are quite cheap compared to cotton fabric of similar weight. Moreover it is a natural plant fibre that is a renewable and sustainable resource. Jute promotional bags work well for concept stores that have products that are earth friendly.
Demand for natural, biodegradable bags will gradually increase as more and more chain shops around the world phase out the use of polythene bags and use bio-friendly natural fibre bags instead. Thus the potential market for jute shopping bags is enormous.
Jute goods manufacturers in Bangladesh export around 100,000 shopping bags a month on average to different countries. They mention that there is scope for more shipments over the coming years as some European countries are set to ban polythene bags. So far, demand has well exceeded estimates.
Already due to consumer demand, there is an increasing number of jute bag manufacturers, making it easier and more affordable to make the switch to eco-friendly shopping bags for both international and domestic customers. The future of the jute industry is particularly bright.
Due to its eco-friendly and biodegradable characteristics, it is safe to say it will continue to keep its global presence. We can also safely assume that a thriving jute bag sector will help to employ another 1.5 million people, directly or indirectly, in Bangladesh
The wide range of jute diversified products, especially jute shopping bags, can bring in much needed foreign exchange particularly at this point of time when the reserve is fast depleting. We can estimate that around Tk 500-700 crore can be earned within the next five years.

Here is a graph that represents the import countries and the increasing amount of importation of jute: So we can say that global consciousness for eco friendly product like jute bags are increasing day by day.