Marketing Plan of the ACME
Subject: Marketing | Topics:

Background of the Report

The internship program which is an essential part of the BBA program to complete the degree and exercise a significant importance as it enables a student to familiar with the practical business activities. The student work closely with the people of an organization and learn about the functions of that organization. This program enables a student to develop his analytical skill and scholastic attitude.

 Purpose for the Report

Now Bangladesh is more intense as a competitive market in Agrovet and beverage industry with lot of foreign and local companies. People being more health conscious day by day, they are becoming aware about their daily diet in which liquids play the vital role.  Now, people understand that fresh juice is a healthy beverage in their daily diet. The young generation is more inclined towards drinks, which may be a result of western cultural invasion, but is good for health. Women are more conscious about the purity and hygienic ness of spices and mustard oil. The use of bottled pure drinking water has speeded up as never before, both in terms of choice and of necessity. The use of tea as an important beverage has become a lifestyle and a matter of class. Therefore, products that consumers perceive, buy and use are equally important to them as well as to the companies providing it.

The main purpose of the report is to find out and analyze the current market scenario and marketing plan of the portfolio “ACME” and come up with different promotional strategies for, ACME Premium Classic Mango and Orange Juice and ACME Premium Gold Tea, ACME spices and ACME Mustard Oil. Our local market is well aware of the branding in products like cars or garments. But with this report we would be able to find out their perception about the beverage products and how far does their perception differs from that of the companies.

Importance of the Report

This report is very important from the company’s viewpoints as well as mine. Besides giving me a real world exposure, this report would also enable the company to understand the market from a different angle. With lot of tea products, mineral water and juices in the market, the competition is getting intense with foreign players already playing a key role to shape the perception and choices of the consumers. When it comes to juices, people in Bangladesh do not understand the importance of daily juice consumption, as it is very much visible in the western world. Moreover, Spa, Mum, Fresh and other mineral water brands are capturing market share fiercely. On the other hand Tea and mustard oil is a newer product for ACME and it is not yet distributed to a large scale. Therefore this research would help the company and allow me to study the current market.

Objective of the Report

Obviously, the report would lead us towards what information we want from the market. Therefore, it is very important for us to have objectives of our own to carry out the report in order to have a proper guideline through out the report.

Broad Objective

To find out and analyze the current market scenario and marketing plan of the portfolio “ACME” and come up with different promotional strategies for, ACME Premium Classic Mango and Orange Juice and ACME Premium Gold Tea, ACME spices and ACME Mustard Oil.

Specific Objectives

  • To analyze the current market and compare the market shares.
  • Developing a set of desired traits necessary for successful marketing plan.
  • Find out comparative position of the company.
  • To know about ACME Agrovet and Beverage Company as a whole.
  • To design promotional strategies for each of the products under ACME Portfolio.
  • To recommend solutions for solving the problems faced by the organization.
  • Providing general idea about the spice, juice, tea and mustard oil industry of Bangladesh.

Methodology

This report has been developed using both primary and secondary data collected from the related people including existing vendors, service providers, marketing experts and most importantly the sales force members. The internet was widely accessed to find vital data regarding the current trends and the organizational data. In addition to that, several magazines and journals were used to get detailed idea about this industry. Most of the data used in this report regarding the company policies and management practices were collected from the employees of “The ACME Agrovet & Beverage Ltd.” at the corporate headquarters.  I have adopted the under mentioned methods to conduct the activity-

Determining the source of information:

In the next step, I determined the source of information that would be required for the study. I used both primary and secondary data to conduct the study.

Primary Data:

I have collected primary data by interviewing employees and clients of ACME Agrovet and Beverage Ltd. Primary data were derives through discussion with the employees of the organization. I have collected primary data in the following way:-

  • Face to face interview with both employees and clients.
  • Observing the operational activities of the organization.

Secondary Data:

Different types of data are used in this study. Sources of secondary data are as follows:

  • Internal source.
  • Annual report of the company.
  • Preceding research report.
  • Internet

External Source:

  • Different books and periodical related to marketing plan.
  • Newspaper
  • Other internship reports
  • Friends suggestions
  • Supervisors advice

Limitations

By blending all my knowledge, I tried my level best to keep the limitations as short as possible. But beside all the efforts, I faced the following limitations:

  • There were scarcity of adequate data and information on the relevant topic as same data are treated as very much confidential.
  • The topic of the report being a vast one.
  • The topic of the report involving multidimensional factors other than pure business related factors.
  • The industry being a high involving one from the seller’s perspective.
  • The minority of experience and knowledge of mine acts as constrains to prepare this report.
  • Preparation of a report on such topic requires more time than I got to do so.
  • Lack of detailed, to-the-point information about operations from the organization.

Introduction

ACME is one of the renowned names in Bangladesh which has started its business in 1954 and doing its business quite well. ACME has started its business in the field of medicine now it has investment in various areas.

Late Hamidur Rahman Sinha was the founder of the ACME Laboratories. ACME Laboratories was founded to manufacture ethical drugs. At first it was a proprietorship business. It started with the modest introduction of a few oral liquid products

In the year 1976 ACME has converted into Privet Company. Modern equipment makes this company one of the leader among all the industries in Bangladesh. Still now ACME successfully overcome all the problems and achieves great success.

ACME has also endeavored to strengthen its network in international marketing operations to export its products abroad. We are optimistic about our continued growth and success.

Over the years our high achievement drive, our hard working and competent staff and confidence in our quality products have contributed to our growth. We have clear goals that inspire us and we believe to be possible for us to reach. We continuously strive to reach our goal of being the best in our field which indeed is what ACME literally stands for.

Company Overview

ACME refers the “the apex” or the “highest point”. Health vigor and happiness is the philosophy of the ACME Laboratories. Its endeavor is to produce, distribute best quality drugs for the society and maintain the quality of the product in every steps of production. it also accelerates  its activities  for materializing the WHO ( world  health  organization)  ensuring  health for all  with in  2015.

ACME Group is one of the leading and diversified global conglomerates in Bangladesh, with offices in all major cities, employing over 3000+ employees and dedicated to bringing the highest quality products and services to our customers. ACME continuously seeks to expand its production facilities, add employees and increase its sales and marketing efforts.  According to the latest statistics, out of about 300 pharmaceutical companies in the country, The ACME Labs is one of the top four.

The ACME Laboratories Ltd, the pharmaceutical major and the flagship Company of the ACME Group, is a Manufacturer and Global exporter of Human, Herbal and Veterinary Pharmaceutical products. Our comprehensive Product List ranges from Antibiotics to Histamines to Vitamins.

About ACME Agrovet & Beverage Ltd

ACME Agrovet and Beverage Ltd. is the latest of innovative enterprises from ACME group with its state-of-the-art technology and quality of Parma grade.  ACME Agrovet and Beverage Ltd established in 2005. Primarily it started with small range like mango and orange juice. Later on it followed by ACME drinking water and then ACME spices.

Acme is planed to introduce two new brands ACME Tomato catch-up and ACME mastered oil.

ACME Agrovet & Beverage Ltd. established a modernized plant in Bangladesh located at Dhamrai under Dhaka district about 30km. west of  Dhaka city. Plant is well equip with modernized technological facilities and run by qualified personnel in accordance with the stringent guideline of BSTI.

Historical Achievement of the ACME Laboratories Ltd.

ACME is one of the leading pharmaceuticals company in Bangladesh. The top most pharmaceuticals company that has large contribution in the society and controls the drug market possessing huge market share in Bangladesh ACME is one of those. Late Md. Hamidur Rahaman is the founder of the ACME Laboratories.

1954- ACME Laboratories established as a proprietorship for manufacturing Pharmaceutical items.

1976- ACME Laboratories converted into a private limited company.

1978- Introduces to produce Tablet and Capsule in new premises.

1983 – Commercial operation with modern facility at Dhamrai, 6 acres land 32 km from Dhaka.

1987-Cream and ointment added in production.

1990-Achieve average 25% growth rate compared to the 13% registered by pharmaceutical sectors.

1992- Introduce inject able products.

1997- Agro vet Division of manufacturing of veterinary and animal health care drugs in independent factory.

Mission Statement

Our holistic approach is to ensure Health, Vigor and Happiness for all by manufacturing ethical drugs and medicines of the highest quality at affordable prices and reaching out even to the remotest areas by proper distribution network. We view ourselves as partners with doctors, our customers, our employees and our environment. At present, Globalization is our top corporate priority.

Vision

Our Vision is to reach out even to the remotest areas of Bangladesh and improve lives with quality products at an affordable price.

The ACME Agrovet and Beverages Ltd. started its venture in 2005 with orange and mango juice. Then it introduced drinking mineral water. Latest of their product is ACME Premium Gold Tea. It has established a modernized plan in Bangladesh located at Hemayetpur. The plant is equipped with modernized technological facilities and run by qualified personnel in accordance with the stringent guideline of BSTI.

Products of ACME Agrovet & Beverage Ltd

 ACME Juice:

Premium and Classic Mango and Orange Juice

One of the leading products in ACME Brand is ACME Juice. In the Juice market ACME Juice got a leading place. The juice products are packed with the unique Tetra Pak technology. It ensures longer shelf life, No deterioration during shelf life and free of preservative related side effects.

As ACME is always ensure the quality, ACME juice produced by the best technology and production process.  So to ensure quality of product, ACME does the procurement from the best source available. The company emphasizes to the greatest extent on the quality of raw materials. The raw materials of Mango juice are imported from India and Pakistan. These are continental mangoes of the best quality.

For Orange Juice, concentrated orange pulp is procured from the best places of Brazil, produced by blending a pool of selected fresh oranges.

ACME mango and orange juices are differentiated due to their unique taste and flavor. Being nutritionally rich and free of noxious preservatives, they are available in 150 ml, 250 ml and 1000ml hygienic UHT packs.

Acme Premium Drinking Water:

ACME water ensures purity and arsenic free water to the consumer.ACME premium drinking water symbolizes Purity. ACME strictly maintains the guideline and standard of BSTI. In this case ACME uses pet bottle as it is bottled in environment friendly PET bottle. It contains proper mineral balance and is for all age groups. It is available in 1500ml, 1000ml and 500ml.

By this product ACME served different hotels, restaurant clinics and also different institutions. The water treatment process includes reverse osmosis with 20 stages of filtration process, Ozone and Ultraviolet Ray Treatment before the water is bottled.

ACME Spices

ACME produces Chili, Coriander, Turmeric and Cumin powders. The Packing material is washed from nitrogen solution that no chance of quality hamper is there. The raw material is collected from the local market especially from the north Bengal.

ACME Premium Gold Tea

ACME Tea premium gold, a supreme blend of CTC clones. It is unique for its aroma, color and taste. It contains natural antioxidants. Its natural extracts refreshes and revitalizes you and keeps you fresh and healthy

 Different size tea packs will be available in 10g, 50g, 100g, 200g & 500g packs.

The product is launched as a premium product and marketed as Raw Tea. This product follows Focus Strategy mainly focusing urban and suburban premium customers. It targets the retail outlets. It is in its embryonic stage with the product being launched with few difficulties and going through a sustainability period

SWOT Analysis

Strength:

  1. The ACME Agrovet and Beverage Ltd have got the investment backing of The ACME group. The goodwill of the Pharmaceutical business and also the marketing channels and distribution resources are being used as far as possible.
  1. The experience, Office premises, Management and manufacture of the ACME group is a huge advantage for The ACME Agrovet and Beverage Ltd.
  1. The Quality of the products of The ACME Agrovet and Beverages Ltd. is better than most of the local FMCG companies. Comparing the quality, the prices of the products are within the range of the target segment.
  1. The experience, Office premises, Management and manufacture of the ACME group is a huge advantage for The ACME Agrovet and Beverage Ltd.
  1. The Quality of the products of The ACME Agrovet and Beverages Ltd. is better than most of the local FMCG companies. Comparing the quality, the prices of the products are within the range of the target segment.

Weakness:

  1. ACME group is doing business for more than 50 years. Therefore, this may result in traditional thinking in the top management level. Their experience is rooted by pharmaceuticals which is a totally different product from FMCG. Even the other departments in the group which are providing services to the Agrovet sector, have to understand the dimensions of Agrovet in order to provide the standard of Agrovet that it needs.
  1. May be for poor salary structure or weak corporate culture, the employee turnover rate is increasing in the whole ACME group. This is also affecting the Agrovet sector. The employees lack motivation and productivity among themselves.
  1. At present, there is no specialist Research and Development team in the Agrovet. It has become a barrier in effective and efficient market research, new product development, corporate strategic planning etc.
  1. This FMCG market needs lot of promotional communication in the market. It is an expense for the management. Not only ACME group, every management should understand how brand triggers sales and they should respond accordingly. This has been the problem of the local companies where they are falling back of the MNCs like Unilever who are doing it better.
  1. The Agrovet is fully dependent on either the import or local buying of raw materials depending on the product. We do not have our production facilities.
  1. Due to difference in the business ways, Agrovet is facing poor coordination among chain management from all other departments. Any support Agrovet needs from the other departments, they are not been able to deliver properly because they are trained for printing press, pharmacy, IT and other departments, Agrovet needs specialists.
  1. In order to maintain the product quality, Agrovet lacks competitive pricing and pricing experimentation.

Opportunities:

  • Currently, the government is giving priority in expanding and promoting local agro-based business in the country. This is a huge advantage to any Agrovet business. The bank loans regarding the Agrovet industry has decreased due to government intercept to encourage the business.
  • The society is changing. People are becoming very conscious about what they are consuming. This is a good prospect for beverage industry. Now-a-days, people lack interest in drinks like Coke, Pepsi and are more inclined towards having juice, tea and when they are outside, having mineral water. May be now the rate is very low, but it is increasing. It shows the prospect for FMCG products.
  • The number of dual income families is increasing at an alarming rate. The lifestyle of people is becoming faster and this leaves them with minimum time to cook. Therefore, it is a huge opportunity for spices market.
  • Our country is rich with natural fruits and productive land. This can be used as a source of our raw materials needed for the manufacturing of ACME products. We can build ways to production in our own country.
  • Globalization is a major factor for us to increase our market scope in the international arena. For Globalization, it is much easier now to enter foreign market and increase our exports to earn higher margin. It would also enable us to set up our office premises and our manufacturing plant elsewhere where it would be sustainable for us to create an MNC.
  • In our country, the supporting industries are also growing at a faster rate. There is more number of local TV channels going international, new competition in the advertising, market tension, and other factors as well. These things would help us in our reach to our customers and also in other part of our business, for example, more number of TV channels and newspapers would mean more promotional activities and decreasing advertising cost.

Threats:

  1. Globalization can also backfire. There are many corporate giants which are trying to enter our market. Being a third world country, our country is a market place for everything. Terrorists, smuggling, counterfeiting, product dumping and many other things. First world countries use our country by exerting pressure on our governments to sell their low graded products in our country. These products take away the market from our local products. But generally they are very low in quality.
  1. With increasing technology, our country being high in corruption, use those technologies in order to make fake products under different brand names. ACI, ACME and Coke are victims of such fraudulent activities. These technologies help these people to make similar kind of product packages and sell them by using the reputation and goodwill of those products.
  1. The ACME Agrovet and Beverage Ltd is a sister concern of The ACME Laboratories Ltd. Therefore, the goodwill and reputation of the products and services is like a chain that is binding all of them. If there is any problem with the reputation and quality of any one sister concern, the effect would be on all of them. So all the concerns have to maintain the same standard.
  1. The current corporate giants are the biggest threats not only in terms of competition but also in ways of how they are exploiting or using the supplying industries for their own operation. This can be in terms of their cost of raw materials. They can use low quality raw materials and can easily cut their cost of manufacturing. This would give them a price advantage and greater profit margin.
  1. The unstable political condition is a big threat for any company. Sudden hartal or blockage may result in the delay or no distribution of products. It can also hamper the regular official work if there are any downtown abnormalities due to political issues.
  1. The corruption in the government can result in certain changes of rules and regulations. Any foreign company can easily bribe or can do heavy lobbying in order to enter the market with a product of better brand image.

PEST Analysis

Political Situation

The political situation is a big factor in any industry. This is a general factor for all of the business entities as well as for the general public. Any political disorder results in problems of the organizations’ daily hazards. For example, hartal, strike etc can hamper the normal product distribution of ACME to the local or regional distribution.

Economic

 It is a general factor that affects any profit making organization. It explains the market demand supply, public disposable income etc. ACME would export product to that countries which has got people with high disposable income. The prices of the products are to be set accordingly. In the national level, few districts have higher sales, higher profit margin and also higher distributors or trader profit. For example Dhaka, Chittagong, Bogra, Sylhet, it can also be based on area, Dhanmondi, Gulshan, Banani etc.

Social

 This general factor is important because it defines the culture, rules and norms and other influences of the Society that the country is operated in. ACME cannot easily have higher profit margin because our society is not accustomed to habit of having Juice or Tea in a regular routine manner. They do not understand the importance of juice in their daily diet or having pure refined mineral water on roads. They do not understand how having branded tea is useful to their health. So, it is affecting ACME.

Technology

ACME is a manufacturing company. So technology is a big general factor for any manufacturing company. The machineries that are being used are a part of the technology. Different machines have different production capacity. They need trained personnel to operate them. So the training facilities come into play as well. The workers of the plant need to be aware of the upcoming technologies and their preliminary education is also a factor. Here comes the question of their payment. This shows how important technology is and how it is affecting the operation of the organization

Analysis of Some Critical Factors for the Company

Government:

The type of government in control is a major general factor. For example, in these days of Globalization, Foreign Direct Investment is a general thing. But it depends on the ruling government. If the government welcomes foreign direct investment then it becomes a problem for the local companies because lot of foreign giants would come to dominate the market which is currently dominated by Pran, Shezan, Starship, ACME etc. Dabur is trying to enter Bangladesh but are not being able to. Government is also important because they can monitor the product prices, product quality and also set up new rules. Government lobbying is a very important factor in Bangladesh. The type of government is very influential and it can also affect the company, for example how corrupted the current government is or how high the transparency is.

Competition:

This specific factor prevails in any industry and for any company. It sets up the prices, shows the quality of the promotional activities of the industry, taste of the product etc. On the other hand, Taaza is so advanced in its promotional activities that are creating a huge gap in competition where Ceylon tea or ACME tea is not being able to compete.

Regulations:

It is a general factor that is there for every type of markets and products. For example, ACME is a corporate brand. Our brand symbolizes sophistication. That is why the main target of our mineral water customers is restaurants, hotels, institutions and cafeterias. Sheraton, Four seasons and other restaurants use our mineral water. Recently, BSTI has announced that every product has to set up packaging in Bengali; we must use Bengali in product bodies. We have to write the product names in Bengali. This can hamper our brand image in that sort of hotels, and now, we have to change our package printing in that way. This is a matter of time and costing and also a determinant factor for the external customers. This external factor is a big issue for any company in any industry.

Target Market

This specific factor gives the company the narrow direction that is should hold on to. To be specific, this factor gives the organization the phenomena on which to make the profit. It is as important as the name suggests. For ACME, there are different target markets for different products, Juice 150, 250 and 1000 ml have different target markets. Same goes with water and Tea.

Demographics (Population Size)

 It is the population size, shape and overall estimation of the general population. No matter it is one of the most influential general factors for every market. It describes the population size and provides an estimation and calculation for the Market size. Dhaka has a population of 20 million, but that does not mean that 20 million is the market size of ACME. Our market size is within the population which is characterized and described by Demographics.

Supporting Industries:

It is specific for specific industries. For ACME, the supporting industries are Distribution, Media, Software, Packaging agencies; Trade Market etc. these industries support the operation of ACME. For example, TV channels, Newspaper, Billboards and all other media enables ACME to communicate with the target market, packaging companies like tetra pack helps us to enhance better packaging for our products. Advertising agencies like paper rhyme and Ogilvy helps us build our product and prepare our communication and marketing plan. These are all different industries but it shows how importantly and closely they are related to our operations.

Supporting industries in general view:

We have talked about the supporting industries of ACME. Now let’s look at it from a general perspective. Supporting industries discussed in the specific factor are different industries which play very important part in the operations of other companies as well. They may be our competitors or our sister concerns. Now, from general viewpoints, how well or how differently other companies can use them makes a lot of difference in any industry. For example, let us look at how brilliantly they are being used by Unilever or Square, or even Ericsson or Nokia. This is changing the market about the effectiveness and efficiency of how well they are being used. These are difference making effects on the whole market and the overall business.

Factors Critical for the exchange Rate Movements of Currencies:

This is very important for the companies as well as for countries in the international market. Talking about it in the specific sectors, let us take the case of ACME exporting products to UK. We have to take consideration of the income level, inflation rate, exchange rate between Taka and pound. When the inflation rate of UK is higher than that of Bangladesh, there would be high prices of UK products in UK. But compared to the UK local products, the prices of Bangladeshi products would be cheaper. Therefore, there would be an upward pressure on the demand for the Bangladeshi goods which also includes ACME products. This would also enable ACME to earn higher profits. On the other hand, if the exchange rate is high, for example 100 TK gives £1, then ACME would have certain amount of profit, but when it is !20 TK to £1, then the profit calculation changes. Now, this exchange rate is influenced by critical factors like Income Level between the two countries, Inflation rate, interest Rate, and also the economic factors of the two countries.

International Financial Market:

In the Macro view, there are lots of things that can affect the exchange rate movement between two countries and also between the capital flows of the business operated in both the countries. These factors includes like Balance of Trade, Export, Import, Duty, Taxes, Quotas, Balance of Payments, Financial Aid, Current Account and Capital Account. These things affect any business both internationally and nationally.

Stakeholders:

Customers are the most important stakeholders because they are the key to our purpose of running our business. Directors are the persons who are responsible for the existence and continuation of the business. ACME is a private limited company so there is no question for shareholders. The government is another stakeholder because they are affected by the nature of the product we sell and our tax payment and our operations countrywide. Supporting industries can be our Banks and all other companies that provide their services to us.

ANALYSIS OF THE COMPETITION: PROMOTIONAL STRATEGY & DISTRIBUTION NETWORK

A brief account of the promotional strategy of Pran, Danish and Starship is given below:

PRAN:

PRAN was supported through TVCs and press media in a consistent basis. In terms of pitch the respective brand appeals were used.  Pran has top of the mind awareness among all cross section of people due to its heavy media presence and strong distribution network. Pran has been made a strong claim “Deshi” through their TVCs which is exceptional compare to other competitors. To make the Group’s products available at the every knock & corner of the country PRAN has developed the best sales & distribution network all over the country. To ensure fast & smooth distribution companies has set up 9 distribution depots & have appointed more than 1000 dealers all over the country. To cope up with the rapid & ever changing market situation & to come up with innovative marketing strategy and ideas company has set up a full-fledged In-house advertising agency comprises of the best talents of the country. Company spends a large portion of their promotional budget in brand building exercises at home & abroad. Lastly their winning strategy of market leader is Hammering.

DANISH:

Recently commissioned, this unit produces highest quality fruit drinks under the brand name Danish Fruit Juices. In addition to their vast sales and distribution network of dealers, they have 6 sales depots located at strategic points. They have mobilized adequate distributors to serve all parts of the regions; they are one of the largest distribution organizations in Bangladesh. This network makes possible the flow of goods from the producer through intermediaries to the buyer. Their network and operations are described below:

 No. of towns under regular coverage are 177.

 No. of distributors are 194.

 No. of outlets under regular frequency are 97,665.

 No. of sections (each consist of 50 outlets) are 1782.

 No. of Sales Area is 14.

 No. of Sales Territory is 80.

STARSHIP:

Among the several units of Abul Khair Group, milk and beverage is one of the most vital divisions of the group. They have three different types of products in their juice category, which include Mango, Orange and Pineapple with three different SKUs 250 ml, 200 ml and 125 ml. Their target market is mainly commercial user as well as Family consumer. They positioned their brand from upper mid level to the mind of consumer. They have a nation wide coverage through their strong distribution network and also engaged in exporting. Their main mission is to create brand demand, image and customer confidence by ensuring quality, availability and rich communication with ultimate consumer. As Danish is in the media with their current TVC, it has significantly high top of the mind recall. They offered a discount for their kids pack. “Fol’er raja aam, ar aam’er rosh’e Danish”- through this line they made a significant high top of the mind recall towards their target customers.

PRICE SENSITIVE:

Consumer group of juice product in general is highly price sensitive. Since taste of all juice products is quite similar hence only differentiate factor is price. Most of the target group consumes juice as a thrust satisfying, refreshment instinct where price is considered to be a major deciding factor.

C. SALES PROMOTION:

Most of the companies use sales promotion as a major media of marketing communication. 80% of the company uses trade promotion as their major campaign technique. This actually provides better result. Since traders play a prominent role in deciding consumer’s brand selection, hence trade offer is considered to be the best way to have retailers push role in the point of sale.

Giveaways items

 Cash rewards

Attractive prizes

Renting out retailer’s ‘Homesite’

D. CARRYING COST:

It is said that 80% of the cigarette manufacturing cost comes in the form of duty and Sales tax. But in juice industry major cost is incurred in the form of carrying the product since the product itself is heavy and space occupying.

Technological Innovation:

Technological innovation has led people to see things from different angles. Today’s people are more quality conscious and comfort oriented. Technology enables them to enjoy modern amenities of life. Now juice products are available both in bottles, plastic containers, tetra pack and canes, which are the direct out, come of technological innovation. Use of preservative has given longer life of the juice of different kinds. Advancement of the communication sector has made the life of the perishable goods like juice and mineral water more marketable and quality oriented.

Cultural Shift-Traditional outlook to modern way of life:

Today’s consumers are culturally more rich and informative in nature. People are more achievement oriented and they want to enjoy amenities of modern life. Modern education, family values, and believes, scope to interact more with outside world and cultural transformation-all have contributed to the overall growth of the juice market.

Sky Culture and Its Impact on Customer Behaviorism:

Mr. Peter Drucker has rightly said that today’s world is a global village. Fashion and taste have become international phenomenon just because of the massive expansion of cable T.V. network and other media activities.

MARKET STRATEGY

A. Target market & Consumer profile:

  • Children, students and married women (housewife and working women) with children.
  • Children between the ages of 8-10 years, students aged 17-24 years and mothers aged 26-40 years.
  • Students studying in private and public colleges and universities.
  • Regular user of fruit juice i.e. consumes fruit juice at least twice a month.
  • Brand usage: Consumers any of these brands -> ACME, Pran, Starship, Danish and Shezan.
  • SEC: A; B; C.
  • MHI – Tk. 15000-25000+

Product Strategy & Value Chain Management of ACME Juice:

  • The juice products are packed with the unique Tetra Pak technology. It ensures longer shelf life, No deterioration during shelf life and free of preservative related side effects.
  • For Orange Juice, concentrated orange pulp is procured from the best places of Brazil, produced by blending a pool of selected fresh oranges.
  • For 250 ml, 6 years to 25 years segment is targeted. It is in the list of regular go out menu that makes consumers feel good.
  • 1000ml targets the families in both urban and suburban premium and popular segment, marketed as regular family drink for 26 years to 40 years segment.
  • In general, the product is mainly retail focused, that relies on differentiation strategy with Quality being the core competency. The product is going through growth stage with Shezan being the market leader with differentiation strategy, Danish with focus strategy and Pran following cost leadership strategy.
  • To ensure quality of product, ACME does the procurement from the best source available. The company emphasizes to the greatest extent on the quality of raw materials.
  • The raw materials of Mango juice are imported from India and Pakistan. These are continental mangoes of the best quality.
  • ACME mango and orange juices are differentiated due to their unique taste and flavor. Being nutritionally rich and free of noxious preservatives, they are available in 150 ml, 250 ml and 1000ml hygienic UHT packs.
  • The range of this product is 150 ml Classic orange and mango juice, 250 ml Premium and Classic orange and mango juice, and 1000ml Premium and Classic Orange and Mango juice, and also 1000ml Classic Mangorange juice.
  • The target consumers are 5 years to 12 years popular segment for 150 ml. This brand is personified with Fun Loving, Friendly and Smart. The core value is the taste that gives refreshing energy.

C. Promotion Strategy:

Branding is essential to build the brand image and create top of mind awareness to the customers. In this junction, following activities can be taken create brand awareness.

  • Shopping mall branding: There are quite a few numbers of shopping malls in metro cities (i.e. Agora, PQS, EasternPlazaetc) where target customers regularly visit for various purposes.

Branding area

  1. Glass branding
  2. Wall branding inside the mall
  3. Various shop sign branding
  4. Decorate small area exclusive branding for ACME Juice where we can also keep our product
  5. Introduce branded outlet

RECOMMENDATIONS

To establish strong brand in the market, the brand name must be prominently promoted through repetitious type ad. In that case we should put corporate/ brand logo first few months and then change for thematic advertisement of the product.

  • Vehicle Branding

ACME has 150 vehicles, which, are running from one corner to another corner across the country. We can do branding to these vehicles with a minimum cost. Mobile vehicle branding will help us to spread the brand name across the country. Here, only print cost will incur.

  • Shop signage: Outlet branding will help us to maintain brand image to the customer mind. This is a very cost effective and long term branding strategy, since we do not have to renew every time as it happen in billboard. Also, we can take one corner of the outlet and branding the place

Trade Offer:

Following are the detail trade offer for traders.

  • Trade incentive: This is a straightforward offer to the traders. We will set up target for tem as pe our business plan. All achiever will be rewarded and among them top seller will get mega prize from us.
  • Mistry shopper contest: This contest will increase visibility in the market. Mistry shopper will visit outlet disguisedly and check the visibility of out product. Based on point of display they mark the score sheet. At the end of the contest, winner name will be announced and he or she will be rewarded in gala event.

School branding:

As our primary target group for ACME juice is kids, we need to go branding at school places.

  • Canteen branding: We can do canteen branding where school authority can only keep our product. It will help us to increase our product sale.
  • Blackboard branding: It will help us to create a top of mind among students.  Our branding constantly visible to them. Competitors yet to launch this branding idea in the market. It will also work as part of social campaign.
  • Construct guardian waiting lounge: This is very important branding since parents will buy product for children. They should be our secondary target group.
  • Get reward this is the most effective way to encourage the shop owners to promote our product as an example we can tell them to promote our product if they can make business during a period of one month the highest seller or our target achieved seller will get a special gift like first prize can be air ticket for two to Kolkata, second prize can be air ticket for two to Cox’sbazar and the third prize can be for two to Mobile Phone.

Tiffin Period:

At the time of Tiffin we can encourage Kids to drink Fun Pack through TVC script based on children or promoting product by direct marketing with the schools. Also we can offer the schools to buy our product in special price when they have different program in the school like annual picnic, sports etc. and make a habit among the children to be familiar with our Fun Pack so that whenever they buy juice the name Fun Pack will come to their mind.

Direct selling:

We can introduce door-to-door selling concept in the market. This is a very effective way of selling where we can appoint our own people to sell our product in a ice box during summer in the busy areas of metro cities as well as bus terminal, rail station, feri ghat etc. In summer time our juice and mineral water will in huge demand so we can point out these places and go for direct selling.

BTL (Below the line)

  1. School program continuing.
  2. House of Billiards Pool championship so-sponsor.
  3. Shaptahik 2000 insertion for 250ml juice pack.
  4. Toitumbor (children’s magazine) insertion for 150ml pack.
  5. Ananda Dhara (Family magazine especially for women) insertion for 1000ml pack.
  6. 26th March 2007 special insertion for (Shadhinota Dibosh).
  7. 14th April special insertion for (Pohela Boishakh).
  8. Special event for (Pohela Boishakh).

School Puppet Show:

In the mean time we are going to organize school puppet show across the country. Last time we went for 100 schools. But this time we will organize 500 schools all over the country. The schools should be selected district wise with considering SEC “A”, “B”, “C”. Our target group for this school program will be kids from Class 1 to Class 5. it will be an hour program consist of puppet show to entertain kids  through different stories. The main concept is to create awareness of ACME juice products among the school students by creating a fun field and enjoyable environment during the program.

Billboard:

Billboard is one of the most useful promotional tools for any brand. The scope of its visibility is very much higher compare to other promotional tools. But due to extreme popularity of media mix, its value is getting down day by day. Currently we have eleven billboards across the country. All of them are in a very prominent place where the visibility is too high. We are going to re-launch our juice on September. After completing a successful re-launch the stickers of our existing billboards need to be changed and we should develop new design with considering our new juice packs to all of the billboards. Here only print and fitting cost will require. Considering the budget constraints if it is possible then we should take few more billboards all over the country.

Merchandising

A heavy thrust on merchandising will take place. Emphasis will be given to activities like window hiring, display competition, etc. A special effort will be made to create some obstacle on other antiseptic/antibacterial soaps.

ANALYSIS OF COMPETITION:  PROMOTIONAL STRATEGY & DISTRIBUTION NETWORK

Radhuni:

This brand was launched by The Square Consumer Products. They are pioneer in the market and covering about 75% of the market share initially. They came up with air proof packaging with properly dried and crushed fresh spice eliminating the complain of improper crushing and dried problems. They marketed the product with effective promotional campaigns as convenient, affordable and less quantity requirement.

Having the background of a pharmaceutical company, the brand image that they had was high. Therefore, just in the time of cultural change Radhuni exploited the market by judging the switchers of brands and inconvenience and complains using raw spice. With attractive name and similar to home made pastes, they overcame their setbacks like their chili could have been finer powder and their packaging could have been more attractive. In this way, they developed high loyalty, trust and attachment. With regular TVCs, Billboards and Press ads, they captured each and everyone’s higher ability of brand recall.

ARKU:

Recently, the brand ARKU is experiencing increasing demands as the market share unbranded spice is decreasing. Their most effective promotional campaign was Siddika Kabir’s Recipe shown in Ntv. Co-sponsoring the program gave them a huge exposure and as the program is having one of the highest TRP Rating, the brand ARKU spice is also having increasing acceptance. Additionally, their attractive communication, nice fragrance and satisfying color of curry, they are taking over their drawbacks of faded color of chili powder and inability of mixing of spice compared to expectations.

They also promoted this brand as locally made providing a feeling of homely product.

Pran:

The consumers are moderately satisfied with Pran as Indian origin of raw materials and color. Their main strategy is price play. With a somewhat pack design and maroon chili color, they are not as widely accepted as other established brands.

MARKETING MIX

 PRODUCT

Product Objective

To place the product by understanding the TG insights in line with their decision making tools like:

  1. Natural color of spices.
  2.  Superior in Taste & smell .
  3. Hygienic Factor .

Strategy

Product Differentiation

  • Almost generic in nature compare to all other competitor.
  • For Mixed masala scope lies for differentiated product with taste.

PRICING

Objective

The Pricing objective is to maximize the revenue & generate funds for ensuring proper pull for the brand.

Pricing Strategy

  • At present the TP margin is higher than competitors to ensure trade pull and MPR is almost similar to market leader as Consumers are not that much price sensitive rather than ensuring quality.

DISTRIBUTION

Objectives

  • To enter at least 120000 Spice outlets on the first year which are contributing standard margin.
  • To strengthen the Outlet coverage in the Metro Areas which are potential for this products.

Strategy

 To ensure trade penetration with different attractive trade campaigns round the year.

PROMOTION

Advertisement Objective

  • To communicate every functional benefits, competitive strength facts to the quality sourcing TG.
  • Optimizing awareness level among TG & more than 5 million families.

BTL (Below the line)

  • Billboard:

Billboard is one of the most useful promotional tools for any brand. The scope of its visibility is very much higher compare to other promotional tools. But due to extreme popularity of media mix, its value is getting down day by day. Currently we have 11 billboards across the country. We would just change the printed stickers with a rate of 25 Tk per sqf. All of them are in a very prominent place where the visibility is too high. We are going to re-launch our juice on September. After completing a successful re-launch the stickers of our existing billboards need to be changed and we should develop new design with considering our new juice packs to all of the billboards. Here only print and fitting cost will require. Considering the budget constraints if it is possible then we should take few more billboards all over the country.

  • Press:

Publications will be carefully selected keeping in mind the target customers. Regional newspapers will be used to increase usage and sales in the respective regions. We would get the data from the hawkers’ association and insert our ad according the circulation.

  • Radio:

Radio campaign will be developed and released in central station. A significant thrust will be on radio campaign as it is one of the most important media that reaches a large majority of semi-urban and rural dwellers. As a result after completing a successful re-launch we can develop our radio plan in the following manner:

  • Television:

The television campaign will go during the launching month of September. Thereafter a shorter version of TVC will be followed in the next.

Spots will be scheduled during the launch phase in a way that the spots are placed before programs with high viewer-ship, i.e. Bengali Package Dramas and Magazines etc. In addition, sponsorship of dramas, serials and events may also be considered.

Strong brand equity can be developed through TVCs by sponsoring public health message related serials/dramas aimed at propagating hygienic practices in the daily life activities.

PRODUCT DETAILS

Tea product is a fast going product not only in our country but also all over the world. The demand trend is always positive and increasing day by day. Consumers are habituate towards tea which results the higher consumption rate of tea. The competition of tea industries in our country is very much hyper where Ispahani is the market leader with huge market share. On the other hand other competitors are very much close to each other in terms of market share and other factors like product, quality, taste etc. In this kind of situation it is quite tough to compete with other brands but though ACME has a very good brand image due to its Pharmaceutical products as well as in Juice market. So in the time of re launch of ACME Premium Gold Tea, we need to do huge promotional activities all over the country with considering the products quality, taste and other factors remains in a satisfactory level.

Features

–        Refreshing

–        Mood uplifting drink

–        Can be served to guest at home

–        Taste

–        Worth its price

PRICE COMPOSITION

Price list of ACME Premium Gold Tea:

SLCategoryDPTPMRP
1.ACME Tea Premium Gold 10 gm2.552.703
2.ACME Tea Premium Gold 50 gm9.359.9011
3.ACME Tea Premium Gold 100 gm192022
4.ACME Tea Premium Gold 200 gm343640
5.ACME Tea Premium Gold 400 gm687280

Competitor’s Price:

BrandsNet WeightPrice
Lipton Taaza Danedar Classic200g / 400gTk 42.00 / Tk 82.00
Lipton Taaza Jhotpot200gTk 38.00
Pran Premium Blend400gTk 88.00
Ispahani Mirzapore400g / 200gTk 72.00 / Tk 38.00
Ispahani Mirzapore500gTk 84.00
Seylon Supreme200g / 400gTk 39.00 / 72.00
TATA Tea100gTk 25.00
Finlay’s Gold400gTk 66.00

HRC Clevedon400gTk 72.00
HRC Premier PD500gTk 84.00
HRC Premier400gTk 71.00
HRC Super500gTk 85.00
Kazi & Kazi100g / 200gTk 35.00 / Tk 65.00
Magnolia200gTk 30.00
Tetley Premium200gTk 38.00

ANALYSIS OF MARKET SIZE, SEGMENTS & SHARES

Market Share:

Ispahani Best Leaf40%
Clevedon15%
Seylon14%
Taaza10%
Finlay8%
Pran3.50%

CULTURAL SHIFT & CONSUMERS BUYING PATTERN

Price sensitive:

Consumer group of tea product in general is highly price sensitive. Since taste of all tea products is quite similar hence only differentiate factor is price. Most of the target group consumes tea as refreshment instinct where price is considered to be a major deciding factor.

Carrying cost:

It is said that 80% of the cigarette manufacturing cost comes in the form of duty and Sales tax. But in tea industry major cost is incurred in the form of carrying the product since the product itself is heavy and space occupying.

Technological Innovation:

Technological innovation has led people to see things from different angles. Today’s people are more quality conscious and comfort oriented. Technology enables them to enjoy modern amenities of life. Now tea products are available in attractive packets which are the direct out, come of technological innovation. Use of preservative has given longer life of the tea of different kinds. Advancement of the communication sector has made the life of the perishable goods like tea and other beverages more marketable and quality oriented.

Cultural Shift-Traditional outlook to modern way of life:

Today’s consumers are culturally more rich and informative in nature. People are more achievement oriented and they want to enjoy amenities of modern life. Modern education, family values, and believes, scope to interact more with outside world and cultural transformation-all have contributed to the overall growth of the tea market.

Sky Culture and Its Impact on Customer Behaviorism:

Mr. Peter Drucker has rightly said that today’s world is a global village. Fashion and taste have become international phenomenon just because of the massive expansion of cable T.V. network and other media activities.

ANALYSIS OF THE COMPETITION

BrandsPay-offProd. AttributesConsumer Takeout
Lipton Taaza Danedar Classic“Premium Leaf Tea”Special Blend, Colour

and Heavy Licker

Energetic and Refreshing
Lipton Taaza Jhotpot“Jhotpot Kora Cha” Vigorous & Spirited
Pran Premium Blend CTC Clone 
Ispahani Mirzapore“Best Quality”185 years of HeritageFresh & Tasty
Ispahani Green Spot“A Growing Tradition”  
Seylon Supreme” Always Fresh”Alluring Aroma, ColorGreat Taste
TATA Tea“Revive-Refresh-Revitalize”15% Long Leaf, Rich

Aroma

Refreshing Taste
Finlay’s Gold“Garden Packed”High QualityFresh
HRC Clevedon“1no Baganer 1

no Cha”

Youngest, Freshest

& Flavorsome Tea

Special & Unbeatable

Tea

HRC Clone Tea Finest Clone TeaUltimate Satisfaction
HRC Premier PD“Your Best Drink of the Day”FreshnessQuality Cup of Tea
Kazi & Kazi“Ek Baganer Patay Opurbo Cha”100% OrganicEnsures Distinctive High Quality
Magnolia“Garden Fresh”Anti-oxidant & NaturalNatural Blended & Finest
Tetley Premium“For Your Best Health”Rich Color, Alluring AromaNatural, Unmatched Experience, Great Taste

MARKET SRATEGY

Target market & Consumer profile:

Socio-economic Class: SEC A and B (13+ old of urban and semi urban)

Life Style & Attitude: They are young, fun loving, love to entertained, and health conscious, confident & aware about their lifestyle with present trend. Consumer should perceive the brand as an essential part of his everyday life that influences his mood & energy.

PROMOTION STRATEGY

Direct selling:

We can introduce door-to-door selling concept in the market. This is a very effective way of selling where we can appoint our own people to sell our product during winter in the busy areas of metro cities as well as bus terminal, rail station, feri ghat etc. In winter time we have a good opportunity to sell our tea because of high demand so we can point out these places and go for direct selling.

Billboard:

Billboard is one of the most useful promotional tools for any brand. The scope of its visibility is very much higher compare to other promotional tools. But due to extreme popularity of media mix, its value is getting down day by day. Currently we have eleven billboards across the country. All of them are in a very prominent place where the visibility is too high. After completing a successful re-launch the stickers of our existing billboards need to be changed and we should develop new design with considering our new tea packs to all of the billboards. Here only print and fitting cost will require. Considering the budget constraints if it is possible then we should take few more billboards all over the country.

Merchandising

A heavy thrust on merchandising will take place. Emphasis will be given to activities like window hiring, display competition, etc. A special effort will be made to create some obstacle on other antiseptic/antibacterial soaps.

POS Materials:

POP materials like stickers would have to be used to remind the target customers at the point of purchase. In addition these should also serve the purpose of informing those who are still unaware till the time of purchase. POP materials include buntings, danglers, shelf talker, bus hanger, poster etc. Some proposed POP materials for superstore and for upper class level are showed as below:

PRODUCT DETAIL

The Mustard oil market in Bangladesh is not as huge as the other FMCG products’ market. But figures show that it is still a handy one and is worth investing in order to increase product line. There are three main players in the market Radhuni, ACI Pure and Shuresh Mustard Oil. The market is not very big. The demand of the products fluctuates according to the economic and market conditions because these are not necessary products. But with proper marketing plan the market demand can be manipulated and demand can be increased. This paper is written as part of the course and is on the launch and marketing plan of Mustard oil by The ACME Agrovet and Beverages Ltd.

Product Profile

Brand Name: ACME Mustard Oil

Quantity: 250 ml

Trade Price: 18 tk

Market Price: 22 tk.

Performance attributes:

  • Gives quality assurance.

 Appearance and feel related attributes

  • Eye catching promotion
  • Shape has a premium look
  • Attractive label color

 Packaging

  • Attractive pack
  • Modern pack
  • Eye-catching pack

 Other attributes

  • Suitable for all seasons
  • Suitable for all in the family
  • Product of a reputed manufacturer
  • Economic-in-use

MAIN PLAYERS

The Mustard oil segment is characterized by the presence of players each having a number of offerings in terms of platform and/or benefit offered.

BrandPackagingQuantityMRPTrade Price
RadhuniPlastic bottle250 ml40 TK36 tk/36.5 tk
ACI PurePlastic bottle200 ml35 TK31 tk to 31.5 tk
Suresh Mustard OilPlastic bottle250 ml40 TK 35 tk/35.5 tk

BENEFIT PROPOSITION OF THE MAJOR PLAYERS

The players play in the industry by price and coverage. The packaging is good for Radhuni and ACI Pure for their attractive design. Among them Radhuni got very attractive design. For Shuresh Mustard Oil, the packaging is not an issue. They try to focuses on the rural flavor. We can see in the above pricing column that Radhuni is targeting more premium segment and ACI Pure is just competing with it. Shuresh Mustard Oil is targeting narrow segment. This may be the reason as Shuresh Mustard Oil is a small organization. Their main distribution relies on the distribution plan that they have for their other products. They use the same sales force to communicate with the retailers and distribute the products. The production facilities are the same as they got different product facilities in their product basket.

The benefit propositions being offered by the major players in the market are as follows:

BrandBenefit
RadhuniTaste, Quality, Packaging
ACI PureTaste, Quality, Packaging and Price
Shuresh Mustard OilQuality and Price

Competitive Picture

In order to strengthen their distribution strategy, the players provide incentive for the retailers in order to shelve and promote their products to the consumers. These strategies help them to persuade the retailers so that they can offer and these products. The retailers even persuade the consumers to buy these products of companies whose offers satisfy them most. The benefit segment is dominated by major players and their respective value share in the market is as follows:

BrandTrade Offer
RadhuniThey offer a margin of 4 taka to the retailers with occasional gifts like wall clock spices item or show pieces.
ACI PureThey offer the highest trade margin ranging from 4 tk to 4 tk. They too provide the same trade offers.
Shuresh Mustard OilTheir distribution and production is the highest among these 5.

ANALYSIS OF COMPETITION

The competition game is not that great due to lack of players in this segment and lower demand. But there are several factors that make differences in the sale of these products.

Expiry Date:

 Usually, these products have a long life span. Radhuni is the most successful among these three due to its longer expiry time frame.

Shelving:

 Due to quality factors, these products have to be stored in dry place. Retailers have to make choices on which products to store in which places as there are different sizes of shops. Where they store the product is very much important issue. The product can not destroy easily so they can store a lot of amount of the product.

Income Segment Target Market:

This is the most important factor. In analyzing the demand, we must see the consumers who are buying the product, which is the reason behind the manufacture and investment.

Mustard oil is very much demandable product and it is used almost every family. From lower middle class to the upper class people everybody use the products.

Distribution Network:

The distribution is simple. These products are distributed along with the other products of the company. From the factory, the products are taken to the central warehouse. These products are carried mainly by the delivery vans and distribution trucks. Then they are taken to the distributors, from there, they are carried to the retailers. Companies use the same distribution facility in order to carry these products along with the other products that they have.

INDUSTRY OVERVIEW

This Agrovet and beverage industry has got some critical factors. The most important of them is pricing. Although Brand is very important aspect by which we can persuade consumers to buy the product but it is a part of promotion. The depreciation costs, fixed assets costs, production costs, packaging costs, salary and lot of other factors are critical, but the pricing is set considering these factors. The industry is mainly focused on the product taste, price and availability. 1 taka or 2 taka price difference is a key factor in pushing this product into the market. Initially, these products are pushed into the different outlets (Shelving) for them to be available into the market, and then through promotion, they are pulled by the consumers.

Michael Porter’s Five Forces Model:

Threat of new Entrants: this depends on who is entering. Generally, this threat is low because it is not every now and then that a company is entering this industry. But when we judge the market and see that most of the local giants like ACI Ltd. However not in large scale but in locally some company may start to produce the Mustard oil.

Industry Rivalry: Since this industry is very price sensitive the rivalry is very high. Price depends on all the internal expense and operational costs of the company, that is why, it is not easy top be price-change responsive for all the companies. For example, if Pran Juice decreases Juice price for 1 TK, ACME Juice may not be that much responsive to this change because they simple cannot. Radhuni is nationally a great player; it costs 24 TK. for its 250 ml , whereas ACI and others cover it in 23 TK.

Substitute Products: For Juice, the substitute products are other energy drinks, fruit drinks and other Chinese natural drinks. For Tea, the substitute is Coffee and for mineral water, the substitute is carbonated soft drinks. For juice, the pressure of the substitute product is moderate because now, the population is increasingly becoming aware of how important it is to have some juice in their daily lives. For mineral water, the pressure of carbonated soft drinks is becoming lower because people have become aware of the side-effects of daily consumption of those products. For ACME Mustard oil the main substitute product is olive oil, which is not used in our country.

Bargaining Power of Buyers: undoubtedly, this is very high. The buyers are they key to this industry and they can have whatever they want in this price sensitive industry. With the pull strategy being used extensively, the buyers are absolutely pressure free for whatever they want to have.

PROMOTION STRATEGY

In order to market the product, we can use both ATL and BTL. TV, newspaper, radio, bill board, school branding, trade offer and other social campaign can prove to be very effective. The main strategy would be to incorporate this product as part of everyday meal and make people believe that consuming this product is healthy and safe. This is the way we can create demand for this product.

Billboard

Billboard is one of the most useful promotional tools for any brand. The scope of its visibility is very much higher compare to other promotional tools. But due to extreme popularity of media mix, its value is getting down day by day. Currently ACME has some billboards across the country. All of them are in a very prominent place where the visibility is too high. Considering the budget constraints if it is possible then we should take few more billboards all over the country.

Merchandising

A heavy thrust on merchandising will take place. Emphasis will be given to activities like window hiring, display competition, etc. A special effort will be made to create some obstacle on other antiseptic/antibacterial soaps.

POP Materials

POP materials like stickers would have to be used to remind the target customers at the point of purchase. In addition these should also serve the purpose of informing those who are still unaware till the time of purchase. POP materials include buntings, danglers, shelf talker, bus hanger, poster etc. Some proposed POP materials for superstore and for upper class level are showed as below:

PROPOSAL FOR UNILEVER

Proposal for “Computer Training That Encourage Women Empowerment”

Introduction:

Information technology has become a potent force in transforming social, economic, and political life globally. More and more, development strategists see the need for developing countries to embrace information technology both as a way to avoid further economic and social marginalization as well as to offer opportunities for both growth and diversification of their economies .The uneven distribution of these technologies within societies as well as across the world has been termed “the digital divide.” Women within developing countries are in the deepest part of the divide, further removed from the information age than are the men whose poverty they share.  ICT can be a powerful catalyst for political and social empowerment of women, and the promotion of gender equality.

In Bangladesh, women play a central role in family, community and social development. However, women often remain invisible and unheard. ICT offer the opportunities for direct, interactive communication even by those who lack skills, who are illiterate, lack mobility and have little self-confidence

ICT sector lies at the heartland of an emerging information society and knowledge-based economy, developing new ICT products, systems and services with important economic and social implications. Social justice considerations suggest that women should have ‘a fair share’ of the high-status, high paid and influential jobs in this sector.

Objectives:

The main objective of this initiative is to “Empowering Women”. Education is one of the most important means of empowering women with the knowledge, skills and self-confidence necessary to participate fully in the development process.  Education is important for everyone, but it is especially significant for girls and women. This is true not only because education is an entry point to other opportunities, but also because the educational achievements of women can have ripple effects within the family and across generations. Investing in girls’ education is one of the most effective ways to reduce poverty.

We believe that Education is very important to both personal and professional life depending on the level of success one’s seeking to achieve, the level of education may be relative, but the bottom line is, an education of some sort is often paramount to future success. Have you ever noticed that the word LEARN contains the word EARN? Perhaps that is because the higher level of education, the higher level of income you are likely to command as well.

Benefits of this co-branding:

  • Image Reinforcement of the brand preference and purchase intension

  • Usage extension and hopes to reach new audience for Fair & Lovely by creating opportunities, values, and confidence in the target segments.

Today computer education has become a bare necessity for school children to a retired person, as this technology can lead our country into a global position, preparing women’s for ever growing IT industry in Bangladesh would be fair and heartfelt.

Target Segments:

  • First Year Students (Female) of H.S.C
  • First Year Students (Female) of Degree/ Honor

Program Description:

This course aims to utilizing applications of MS Office and desktop publishing software by emphasis on data presentation and communication, creation of projects including newsletters, annual reports, brochures, and promotional materials. Principles of layout and design will be practiced. This Course intended for students who desire to master the use of MS office applications and desktop publishing software.

Product:

ProgramProgram CodeDurationSemesters
Power User in MS Office and Adobe PhotoshopPOP96 hours

(4 Months)

1

Program Contents:

Sl.NoTraining Modules# Of ClassesDuration

(Hours)

1Windows XP, MS Word, MS Excel, MS PowerPoint and internet.2448
2Adobe Photoshop CS 3

 

2448
TOTAL:4896

Learning Methodology and Approaches Used:

Instructor Led Training, Case discussion, Group Work and Class Presentations, and Project

Feedback, Evaluation, and Certification System:

There are two feedback sessions in this program to identify the problems if any, which will help to come up with respective recommendation, suggestions and solutions during the course of the program remembering the best achievements of the students based on technical and other issues.

End Profile:

Upon successful completion of this course, students will be able to possess advanced skills and confidence to pursue the concepts and processes to complete required tasks more efficiently through the benefits of automation individually and professionally.

Mileage & Coverage Of the program:

  • Title Sponsor
  •  Media Coverage by Channel i
  •  News in National Newspaper
  •  Direct Communication with target    customer (Female Students)
  •  Creating a buzz in seven different places in the country through conducting seminar and providing valuable speech from any concern person to the students.

Branding Opportunity:

  • Banners with caption & logo
  • Gate fascia
  • Booth/Counter
  • Leaflet
  • Free Sampling
  • Poster
  • Stage design
  • Venue branding

Training Materials: For each module respective course ware will be provided to each participant during the training.

Training Cost: TK. 9,000.00 (Taka Nine Thousand) only for each participant.

[A total approximate participant for this program is 300 from the location of Narayanganj, Uttara, Mymensing, Jessore, Barisal, Rajshahi, and Cox’s Bazaar.]

Payment Mode: CASH or cheque in the name of the ACME IT Ltd, with work order.

Certification: After completion of the program students will receive certificate. But it is to be remembered that students need to achieve at least 50% in respective appraisal for certification.

Why we want Fair & Lovely as our Title sponsor?:

  • The Vision Empowering Woman of the program is totally matched with the  Vision of Fair & Lovely.

  • This program is specially design for the woman.

  • Previous Experience of sponsoring such program

  • Fair & Lovely is the most demanding brand now a days

Competitive Scenario in Pabna

Juice:

  • In the juice sector PRAN captured the maximum outlets with extensive visibility.

  • In case of merchandising PRAN’s tetra liter pack and Frooto bottle pack are available in every major outlets.
  • Other than PRAN, Frutika and Starship has certain percentage of coverage in the market.

Spice:

  • In the spice market Radhuni from SQUARE has high level of coverage. As they have their production plant and they are also contributed in many social welfare in Pabna.

  • On the other side ACI Pure also captured a substantial portion of spice market. It could be the reason of GOLD promotion of ACI Pure.

  • Both these two brand have high visibility that ensures their merchandising at the retail outlets

Tea:

  • In the tea market the brand Ispahani holds the market as monopoly.

  • People know this brand very well and most of the tea outlets are also using Ispahani tea

Water:

  • MUM and FREASH have captured each and every outlets and institution.

  • People of this region are very much pricing sensitive as a result they prefer FREASH to any other brand.

  • There are some local brand like DADA water trying to enter into the market as well.

PROPOSAL FOR UMBRELLA BRANDING

ACME Agrovet & Beverage Ltd tries to make strong position of our brand. In order to do this we need to give umbrella (digitally printed by our ACME Brand design).     We like to give umbrella in different location which is required by our TM. We like cover different location of Dhaka city by this umbrella. For this it requires some expenditure and the specifications which are given below.

Objective of the promotion

  1. Increase Brand Visibility and recall rate.
  2. To create awareness and Brand introduction amongst TG.
  3. To generate maximum exposure of our Brand.
  4. To gain Retailer’s loyalty.
  5. Strong Demand of the umbrella by the retailers.

Budget allocation:

 Product NameRateTotal Cost
Umbrella(15 piece)135020250

Benefits to the Brand:

  1. Brand Identity: Customers can easily identify the brand and response in favor of it.

  1. Point of purchase decision: In times of purchase customers purchase decision will be motivated by the Brand name ACME which is displayed by the Umbrella.

  1. Effective BTL tools: This umbrella can prove to very effective tools.

  1. Further Relation: This umbrella will create further relation with the retailers.

PROPOSAL FOR CHOCOLINA CHOCOLATE DRINK

The Chocolate milk market in Bangladesh is not as huge as the other FMCG products’ market. But figures show that it is still a handy one and is worth investing in order to increase product line. There are three main players in the market Starship, Aarong and Milk Vita. The market is not very big. The demand of the products fluctuates according to the economic and market conditions because these are not necessary products. But with proper marketing plan the market demand can be manipulated and demand can be increased. This paper is written as part of the course and is on the launch and marketing plan of Chocolate Milk by The ACME Agrovet and Beverages Ltd.

Main Players

The Chocolate Milk segment is characterized by the presence of players each having a number of offerings in terms of platform and/or benefit offered.

BrandPackagingQuantity
StarshipTetra Pak200 ml
AarongTetra Pak250 ml
Milk VitaSDP200 ml

Benefit Propositions of the Major Players

The players play in the industry by price and coverage. The packaging is good for Starship and Aarong. For Milk Vita, the packaging is not the issue. The costs of packaging for Milk Vita are lower compared to the other two. That is why the pricing varies as such. We can see in the above pricing column that Aarong is targeting more premium segment and starship is just competing with it. Milk Vita is targeting popularized segment. This may be the reason as Milk Vita is a more non-profit making organization. Their main distribution relies on the distribution plan that they have for their other products like juice and milk. They use the same sales force to communicate with the retailers and distribute the products. The production facilities are the same. The choice remains that whether they use their production capacity to manufacture the other products which have demand, for example juice or they manufacture this product which have lower demand.

The benefit propositions being offered by the major players in the market are as follows:

BrandBenefit
StarshipTaste, Quality, Packaging and Price
AarongTaste, Quality, Packaging
Milk VitaQuality and Price

Competitive Picture

In order to strengthen their distribution strategy, the players provide incentive for the retailers in order to shelve and promote their products to the consumers. These strategies help them to persuade the retailers so that they can offer and these products. The retailers even persuade the consumers to buy these products of companies whose offers satisfy them most. The benefit segment is dominated by major players and their respective value share in the market is as follows:

BrandTrade Offer
StarshipThey offer a margin of 2 tk to the retailers with occasional gifts like wall clock, wrist watch or show pieces.
AarongThey offer the highest trade margin ranging from 4 tk to 2 tk. They too provide the same trade offers.
Milk VitaTheir distribution and production is the highest among these 3, but they provide a margin on only 2 tk.

Analysis of Competition:

The competition game is not that great due to lack of players in this segment and lower demand. But there are several factors that make differences in the sale of these products.

Expiry Date:

Usually, these products have a short life span. Due to the addition of milk, these products are difficult to maintain and last longer. Starship is the most successful among these three due to its longer expiry time frame. Aarong lasts for 3 days to one week, otherwise, the taste and quality degrades. Milk Vita uses SDP packaging and due to their lower price their demand is highest among these three.

Shelving:

Due to quality factors, these products have to be stored in cool place, preferably, refrigerators. Retailers have to make choices on which products to store in which places as there are different sizes of shops and not all of them has got to afford all the facilities. This is one more reason that retailers do not prefer these products. Due to lack of availability, and demand, retailers prefer not to take these products.

Income Segment Target Market:

This is the most important factor. In analyzing the demand, we must see the consumers who are buying the product, which is the reason behind the manufacture and investment. The availability of Aarong is higher in places like Dhanmandi and Gulshan due to the higher purchasing power of the consumers in these areas. The numbers of schools are also a determining factor because the kids are fed this product by their parents due to the addition of milk. In places like Mohammadpur and Motijheel, the prevalence of Milk Vita and Starship is seen. The demand mainly comes from purchasing power. The positioning of Starship is steady due to its pricing. It is seen to compete with both Aarong and Milk Vita due to its reach and affordability.

Distribution Network:

The distribution is simple. These products are distributed along with the other products of the company. From the factory, the products are taken to the central warehouse. These products are carried mainly by the delivery vans and distribution trucks. Then they are taken to the distributors, from there, they are carried to the retailers. Companies use the same distribution facility in order to carry these products along with the other products that they have

CHOCOLINA

With proper marketing plan and promotion, we can create the demand for this product. The ACME Agrovet and Beverages Ltd can launch this product to increase their product line, and with existing distribution network and sales force, they can come up with profitability. With the brand “Chocolina”, ACME can launch this product and a feasible marketing plan is designed to make this product a successful one

Marketing Strategy for Chocolina

Target market & Consumer profile:

Socio-economic Class: SEC A and B (6+ old of urban and semi urban)

Life Style & Attitude: They are young, fun loving, love to be entertained, and health conscious, confident & aware about their lifestyle with present trend. Consumer should perceive the brand as an essential part of his everyday life as healthy, energetic and essential part of every meal.

 PROMOTION STRATEGY:

In order to market the product, we can use both ATL and BTL. TV, newspaper, radio, bill board, school branding, trade offer and other social campaign can prove to be very effective. The main strategy would be to incorporate this product as part of everyday meal and make people believe that consuming this product is healthy and important. This is the way we can create demand for this product.

Billboard:

Billboard is one of the most useful promotional tools for any brand. The scope of its visibility is very much higher compare to other promotional tools. But due to extreme popularity of media mix, its value is getting down day by day. Currently ACME has eleven billboards across the country. All of them are in a very prominent place where the visibility is too high. After completing a successful re-launch the stickers of our existing billboards need to be changed and we should develop new design with considering our new tea packs to all of the billboards. Here only print and fitting cost will require. Considering the budget constraints if it is possible then we should take few more billboards all over the country.

Merchandising

A heavy thrust on merchandising will take place. Emphasis will be given to activities like window hiring, display competition, etc. A special effort will be made to create some obstacle on other antiseptic/antibacterial soaps.

MEDIA MIX OF THE CAMPAIGN

Press:

Publications will be carefully selected keeping in mind the target customers. Regional newspapers will be used to increase usage and sales in the respective regions.

Radio:

Radio campaign will be developed and released in central station. A significant thrust will be on radio campaign as it is one of the most important media that reaches a large majority of semi-urban and rural dwellers.

Television:

The television campaign will go during the launching month. Thereafter a shorter version of TVC will be followed in the next. Spots will be scheduled during the launch phase in a way that the spots are placed before programs with high viewer-ship, i.e. Bengali Package Dramas and Magazines etc. In addition, sponsorship of dramas, serials and events may also be considered. Strong brand equity can be developed through TVCs by sponsoring public health message related serials/dramas aimed at propagating hygienic practices in the daily life activities

Product Profile

Brand Name: ACME Chocolina

Quantity: 250 ml

Trade Price: 14 tk

Market Price: 16 tk.

Performance attributes:

  • Gives a refreshing and energetic feeling after drinking

Appearance and feel related attributes

  • Eye catching promotion
  • Shape has a premium look
  • Attractive label colour

Packaging

  • Attractive pack
  • Modern pack
  • Eye-catching pack

Other attributes

  • Suitable for all seasons
  • Suitable for all in the family
  • Product of a reputed manufacturer
  • Economic-in-use

 CONCLUSION AND RECOMMENDATIONS

  1. Tea Ring tone:

The jingle of Tea used in the TV Advertisement is a nice one. ACME can advertise so that people can come to know that they can use it as their ring tone or welcome tune. Here, ACME has to talk to the mobile phone companies to make it possible.

  1. Universities and Schools (250ml and 150ml juice and 500ml water):

We have to talk to different private universities to go through a win-win relationship. We would ask them to use our branded Wall Clock in every classroom. We would sponsor their clubs, for example Young Entrepreneurs’ Society in NSU, AIESEC in IBA, etc in their social activities, in return we would provide part time jobs for their students with certain requirements in our Agrovet and Beverage department. Here, we can fulfill the setbacks of this department by employing these part time students at a much lower salary and they can deliver the services that we take from other departments of the ACME group. For example, several designs that are prepared by the designers of the pharmaceuticals departments are not up to the mark and require consistent briefing. With students and their creativity, we can use the services at a much lower cost where we do not have to higher professionals for our Agrovet. In this way, we can develop our employees for future. In this way, the universities can also advertise that they can manage part time jobs for their students.

In the schools, we can promote 150 ml juice by providing scholarships in their annual fees for the students. We can also create yearly award for students and can set up our juice and water outlets there in the schools at TP price, 150ml, 250 ml and 1000ml family pack too.

  1. E-mails:

Here, we are targeting working people and students again. We live in information age now and people are always in the look out for information. We can provide them through e-mails. This is cost effective. We have out IT team in the ACME group and they can design e-mails. We would provide advertisement in the paper to launch the e-mail and collect personal e-mail addresses from our own sources. Then we would make informational e-mails with our product visibility, not our product informational but educational or general knowledge information. For example, world’s longest bridge with its features, next week, it is going to be world’s renowned university for graduation or masters and its features history etc.

4. Persuasion:

In addition to the attraction of the children, we also have to work in making the parents believe that this product is good and useful for kids to consume. Parents should understand what they are providing their kids and it is an easier way to provide energy.

acme

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