Marketing Plan


As already mentioned the member’s roles are limited to production, harvest and extraction of honey. For better price margin and for assurance of the quality, the honey purchased by the cooperative from the members is processed, packed and marketed by the cooperative (management team). Presently the cooperative markets honey to the retailers at Thimphu, Paro, Bumthang and Trashigang Dzongkhag. Some of these retailers are Sarchop Tshongkhangs, 8elevn, Lhagtshog, Saryang amongst others.

With initiation and implementation of projected activities on increasing overall production of honey, the cooperative in addition to meeting in-country demand, plans to expand the markets to Japan, Singapore and Thailand.

The opportunities and threats associated with the existing market and planned future markets are provided in table 9 below

Distribution plan

With management of apiary by the members, the care, production and harvest is undertaken by the respective member during the seasons. Using the cooperative’s vehicle on payment, the members transport the honey supers to the processing units. The members themselves extract honey using the cooperatives equipments. On checking the quality (moisture below 18%) and other standards requirement, the members are paid for the honey supplied to the cooperative.

The cooperatives (management team) deploy laborers for necessary bottling, packaging and labeling of honey presently packed into 500 grams and 275 grams bottles. The existing markets in Bhutan as well the anticipated markets in all Dzongkhags, including opening of a sale agent in Bumthang and exporting to regional countries is anticipated with the growth of the cooperatives and with increased production of honey, as presented in figure 1 below:

Promotional plan

The main promotional techniques identifies necessary by the members of the cooperative are the following:

  • Advertisement through Kuensel and other national news papers periodically
  • Print and distributed pamphlets (earlier pamphlets printed finished)
  • Use of DAMC website for advertisement during seasons

Marketable volume and pricing

The past experiences in marketable volume has been complex as despite members effects to increase production volume, the production were fluctuating as it is based on weather and climatic conditions, outside the control of the members. Mapping the trends for the past marketable volume generated by the cooperative shows a fluctuation in production (kilograms per year) as shown in figure 2 below:

However, the cooperative members expect an increase in overall production over the years and considering the production for the year 2011 as a base 5% increase over the year is projected as shown in the table 10 below which also reflects the overall gross income to BCOB from marketing of honey.

Based on the records for the year 2011, a 5% increase over the overall production volume and according 5% increase on the unit price per year have been estimated for the projection in table 10. This reflects gross income to the cooperative by marketing fresh honey supplied to the cooperative by the members.

Table 10: projection for marketable volume and pricing for fresh honey

Marketing costs

There is no separate marketing costs as the costs for transportation as well the costs for packaging and bottling is included in the sale price for the retailers. The members were paid at the rate of Nu.250 per kg of honey and the cooperative marketed the bottled and packed honey at the rate of Nu.330 per kg. Additionally, the cost on marketing includes the costs on promotions as presented in table 11 below:

Table 11: projected marketing costs for marketing of bottled honey by the cooperative

Other associated income to the cooperative

Apart from mere sale of honey and the gross income from it, the cooperative has several other income sources. Members pay for the sugar supplied by the cooperative and for the extraction (as charges for using equipments) which was in total Nu.553063 for the year 2011. With 5% increase over the year, the projection has been reflected in table 12 below.

Members of the cooperative (presently 26 active members) pay Nu.500 per year as membership fees to the cooperative. In total the membership fee amounts to Nu.13000 per year for the year 2012. With increased membership projection in the successive year (15 numbers in 2013 and another 15 numbers in 2014), the increased membership fee is reflected in table 12. Similarly he cooperative has income from sale of colonies, sale of packaging materials, interest on the loan to members and sale of tools and materials to the members. Interest on the income generated through disbursement of internal loans to the needy members. Based on the past records, the projections for the income on this source are reflected in table 12.

Table 12: income to the cooperative from other source