EXECUTIVE SUMMARY

In the globalize world, technology and computers have replacedhuman beings from various roles. In most of the cases the outcomehas been quite revolutionary increasing the efficiency and savingtime. However there are roles, which have not been replaced bytechnology yet and the possibility of being so seems quite slim.As ACME is one of the leading companies in Bangladesh they alwaystry to improve its product basket.

Introduction

Background of the Report:

This report was prepared following the course instructor Md.Wahidur Rahman’s instructions on the 20th of June, 2009. Thereport will cover all the relevant information and topics taughtin the class, which are necessary to develop an effective reporton the Mustard oil Industries in Bangladesh. This report will beregarded as the research paper for the course internship for fall2009.

Statement of Purpose:

This report will serve the following purposes:

Providing general idea about the mustard oil industry ofBangladesh  Identifying the importance of mustard oilindustries Developing a set of desired traits necessary forsuccessful marketing plan.

Methodology:

This report has been developed using both primary and secondarydata collected from the related people including existingvendors, service providers, marketing experts and mostimportantly the sales force members. The internet was widelyaccessed to find vital data regarding the current trends and theorganizational data. In addition to that, several magazines and

journals were used to get detailed idea about this industry. Mostof the data used in this report regarding the company policiesand management practices were collected from the employees of“The ACME Agrovet & Beverage Ltd.” at the corporate headquarters.

Limitations:

While preparing the report the following factors posed somelimitations, in absence of which the report would have been muchmore detailed and a better one:

Lack of available data 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 industry involving both goods and services The report being prepared in relatively short time Lack of detailed, to-the-point information about operations

from the organization

Organization Background

Introduction

Since 1954, The ACME Laboratories Ltd. has been doing theiroperation in Bangladesh and today, it is one of the mostsuccessful business conglomerates having sister concerns andinvestments in various sectors in lot other areas in Bangladesh.

Company Background

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

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

The ACME Laboratories Ltd, the pharmaceutical major and theflagship Company of the ACME Group, is a Manufacturer andGlobal exporter of Human, Herbal and Veterinary Pharmaceuticalproducts. Our comprehensive Product List ranges from Antibioticsto Histamines to Vitamins.

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 contributionin the society and controls the drug market possessing hugemarket share in Bangladesh ACME is one of those. Late Md. HamidurRahaman is the founder of the ACME Laboratories.

1954- ACME Laboratories established as a proprietorship formanufacturing 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, 6acres land 32 km from Dhaka.

1987-cCream 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 animalhealth care drugs in independent factory.

About the Founders

Establishment of ACME was a great entrepreneurial effort of LateHamidur Rahman Sinha way back in 1954 and is a vivid example of agreat mind’s vision and its materialization. Post colonial Bengalwas a place of great uncertainty and hardship. Industrializationfacilities were meager and inadequate. One man came forward withhis vision, amidst the political turmoil and utter lethargy ofthe then-new Government. It’s not an easy task to set up a highlysophisticated industry, and moreover do it without bank loans andgovernmental assistance. So it demanded immense effort, strongdetermination along with vision and dreams.

1954 was a milestone year in the history of the pharmaceuticalindustry. Late Hamidur Rahman Sinha might have thought it was aprivate entrepreneurial effort on his part, but in reality it wasa resolute and brave footstep which played a part in pioneeringthe present pharmaceutical industry.

At the precise moment when this visionary man established thecompany at Narayangonj, though on a small scale, he had actuallysown the seeds of today’s burgeoning almost self-sufficientpharmaceutical industry. Now Bangladesh is exporting drugs todifferent countries of the world. Had Late Hamidur Rahman Sinhanot taken such a courageous step, perhaps it would not have beenpossible for us to reach such heights of success.

It has been said that behind every successful man is a womansupporting and sustaining his efforts. We also remember hisbeloved wife, Mrs. Noorjahan Sinha, whose sacrifice, andunconditional support was always a source of inspiration to thisvisionary man.

As we celebrate ACME’s 50th anniversary they are no longer withus, but their memories will forever remain in our hearts. At thisauspicious moment, we pay our homage to them.

Mission Statement

Our holistic approach is to ensure Health, Vigor and Happinessfor all by manufacturing ethical drugs and medicines of thehighest quality at affordable prices and reaching out even to theremotest areas by proper distribution network. We view ourselvesas partners with doctors, our customers, our employees and ourenvironment. At present, Globalization is our top corporatepriority.

Vision

Our Vision is to reach out even to the remotest areas ofBangladesh and improve lives with quality products at anaffordable price.

The ACME Agrovet and Beverages Ltd. started its venture in 2005with orange and mango juice. Then it introduced drinking mineralwater. Latest of their product is ACME Premium Gold Tea. It hasestablished a modernized plan in Bangladesh located atHemayetpur. The plant is equipped with modernized technologicalfacilities and run by qualified personnel in accordance with thestringent guideline of BSTI.

Product Profile

ACME Premium and Classic Mango and Orange Juice

The juice products are packed with the unique Tetra Paktechnology. It ensures longer shelf life, No deterioration duringshelf life and free of preservative related side effects.

To ensure quality of product, ACME does the procurement from thebest source available. The company emphasizes to the greatestextent on the quality of raw materials.

The raw materials of Mango juice are imported from India andPakistan. These are continental mangoes of the best quality.

For Orange Juice, concentrated orange pulp is procured from thebest places of Brazil, produced by blending a pool of selectedfresh oranges.

ACME mango and orange juices are differentiated due to theirunique taste and flavor. Being nutritionally rich and free ofnoxious preservatives, they are available in 150 ml, 250 ml and1000ml hygienic UHT packs.

The range of this product is 150 ml Classic orange and mangojuice, 250 ml Premium and Classic orange and mango juice, and1000ml Premium and Classic Orange and Mango juice, and also1000ml Classic Mangorange juice.

The target consumers are 5 years to 12 years popular segment for150 ml. This brand is personified with Fun Loving, Friendly andSmart. The core value is the taste that gives refreshing energy.

For 250 ml, 6 years to 25 years segment is targeted. It is in thelist of regular go out menu that makes consumers feel good.

1000ml targets the families in both urban and suburban premiumand popular segment, marketed as regular family drink for 26years to 40 years segment.

In general, the product is mainly retail focused, that relies ondifferentiation strategy with Quality being the core competency.The product is going through growth stage with Shezan being themarket leader with differentiation strategy, Danish with focusstrategy and Pran following cost leadership strategy.

SWOT Analysis:

Strength:

The ACME Agrovet and Beverage Ltd have got the investmentbacking of The ACME group. The goodwill of the Pharmaceuticalbusiness and also the marketing channels and distributionresources are being used as far as possible.

The experience, Office premises, Management and manufacture ofthe ACME group is a huge advantage for The ACME Agrovet andBeverage Ltd.

The Quality of the products of The ACME Agrovet and BeveragesLtd. is better than most of the local FMCG companies.Comparing the quality, the prices of the products are withinthe range of the target segment.

Weakness:

ACME group is doing business for more than 50 years.Therefore, this may result in traditional thinking in the topmanagement level. Their experience is rooted bypharmaceuticals which is a totally different product fromFMCG. Even the other departments in the group which areproviding services to the Agrovet sector, have to understandthe dimensions of Agrovet in order to provide the standard ofAgrovet that it needs.

May be for poor salary structure or weak corporate culture,the employee turnover rate is increasing in the whole ACMEgroup. This is also affecting the Agrovet sector. Theemployees lack motivation and productivity among themselves.

At present, there is no specialist Research and Developmentteam in the Agrovet. It has become a barrier in effective andefficient market research, new product development, corporatestrategic planning etc.

This FMCG market needs lot of promotional communication in themarket. It is an expense for the management. Not only ACMEgroup, every management should understand how brand triggerssales and they should respond accordingly. This has been theproblem of the local companies where they are falling back ofthe MNCs like Unilever who are doing it better.

The Agrovet is fully dependent on either the import or localbuying of raw materials depending on the product. We do nothave our production facilities.

Due to difference in the business ways, Agrovet is facing poorcoordination among chain management from all otherdepartments. Any support Agrovet needs from the otherdepartments, they are not been able to deliver properly

because they are trained for printing press, pharmacy, IT andother departments, Agrovet needs specialists.

In order to maintain the product quality, Agrovet lackscompetitive pricing and pricing experimentation.

Opportunities:

Currently, the government is giving priority in expanding andpromoting local agro-based business in the country. This is ahuge advantage to any Agrovet business. The bank loansregarding the Agrovet industry has decreased due to governmentintercept to encourage the business.

The society is changing. People are becoming very consciousabout what they are consuming. This is a good prospect forbeverage industry. Now-a-days, people lack interest in drinkslike Coke, Pepsi and are more inclined towards having juice,tea and when they are outside, having mineral water. May benow the rate is very low, but it is increasing. It shows theprospect for FMCG products.

The number of dual income families is increasing at analarming rate. The lifestyle of people is becoming faster andthis leaves them with minimum time to cook. Therefore, it is ahuge 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 forthe manufacturing of ACME products. We can build ways toproduction in our own country.

Globalization is a major factor for us to increase our marketscope in the international arena. For Globalization, it ismuch easier now to enter foreign market and increase ourexports to earn higher margin. It would also enable us to setup our office premises and our manufacturing plant elsewherewhere it would be sustainable for us to create an MNC.

In our country, the supporting industries are also growing ata faster rate. There is more number of local TV channels goinginternational, new competition in the advertising, markettension, and other factors as well. These things would help usin our reach to our customers and also in other part of our

business, for example, more number of TV channels andnewspapers would mean more promotional activities anddecreasing advertising cost.

 Threats:

Globalization can also backfire. There are many corporategiants which are trying to enter our market. Being a thirdworld country, our country is a market place for everything.Terrorists, smuggling, counterfeiting, product dumping andmany other things. First world countries use our country byexerting pressure on our governments to sell their low gradedproducts in our country. These products take away the marketfrom our local products. But generally they are very low inquality.

With increasing technology, our country being high incorruption, use those technologies in order to make fakeproducts under different brand names. ACI, ACME and Coke arevictims of such fraudulent activities. These technologies helpthese people to make similar kind of product packages and sellthem by using the reputation and goodwill of those products.

The ACME Agrovet and Beverage Ltd is a sister concern of TheACME Laboratories Ltd. Therefore, the goodwill and reputationof the products and services is like a chain that is bindingall of them. If there is any problem with the reputation andquality of any one sister concern, the effect would be on allof them. So all the concerns have to maintain the samestandard.

The current corporate giants are the biggest threats not onlyin terms of competition but also in ways of how they areexploiting or using the supplying industries for their ownoperation. This can be in terms of their cost of rawmaterials. They can use low quality raw materials and caneasily cut their cost of manufacturing. This would give them aprice advantage and greater profit margin.

The unstable political condition is a big threat for anycompany. Sudden hartal or blockage may result in the delay orno distribution of products. It can also hamper the regular

official work if there are any downtown abnormalities due topolitical issues.

The corruption in the government can result in certain changesof rules and regulations. Any foreign company can easily bribeor can do heavy lobbying in order to enter the market with aproduct of better brand image.

PEST Analysis:

Political Situation: The political situation is a big factor inany industry. This is a general factor for all of the businessentities as well as for the general public. Any politicaldisorder results in problems of the organizations’ daily hazards.For example, hartal, strike etc can hamper the normal productdistribution of ACME to the local or regional distribution.

Economic: It is a general factor that affects any profit makingorganization. It explains the market demand supply, publicdisposable income etc. ACME would export product to thatcountries which has got people with high disposable income. Theprices of the products are to be set accordingly. In the nationallevel, few districts have higher sales, higher profit margin andalso 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 theculture, rules and norms and other influences of the Society thatthe country is operated in. ACME cannot easily have higher profitmargin because our society is not accustomed to habit of havingJuice or Tea in a regular routine manner. They do not understandthe importance of juice in their daily diet or having purerefined mineral water on roads. They do not understand how havingbranded tea is useful to their health. So, it is affecting ACME.

Technology: ACME is a manufacturing company. So technology is abig general factor for any manufacturing company. The machineriesthat are being used are a part of the technology. Differentmachines have different production capacity. They need trainedpersonnel to operate them. So the training facilities come into

play as well. The workers of the plant need to be aware of theupcoming technologies and their preliminary education is also afactor. Here comes the question of their payment. This shows howimportant technology is and how it is affecting the operation ofthe organization.

Analysis of some critical factors for the Company

Government:

The type of government in control is a major general factor. Forexample, in these days of Globalization, Foreign DirectInvestment is a general thing. But it depends on the rulinggovernment. If the government welcomes foreign direct investmentthen it becomes a problem for the local companies because lot offoreign giants would come to dominate the market which iscurrently dominated by Pran, Shezan, Starship, ACME etc. Dabur istrying to enter Bangladesh but are not being able to. Governmentis also important because they can monitor the product prices,product quality and also set up new rules. Government lobbying isa very important factor in Bangladesh. The type of government isvery influential and it can also affect the company, for examplehow corrupted the current government is or how high thetransparency is.

Competition:

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

Regulations:

It is a general factor that is there for every type of marketsand products. For example, ACME is a corporate brand. Our brandsymbolizes sophistication. That is why the main target of ourmineral water customers is restaurants, hotels, institutions and

cafeterias. Sheraton, Four seasons and other restaurants use ourmineral water. Recently, BSTI has announced that every producthas to set up packaging in Bengali; we must use Bengali inproduct 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 amatter of time and costing and also a determinant factor for theexternal customers. This external factor is a big issue for anycompany in any industry.

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

Demographics (Population Size): it is the population size, shapeand overall estimation of the general population. No matter it isone of the most influential general factors for every market. Itdescribes the population size and provides an estimation andcalculation for the Market size. Dhaka has a population of 20million, but that does not mean that 20 million is the marketsize of ACME. Our market size is within the population which ischaracterized and described by Demographics.

Supporting Industries:

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

Supporting industries in general view:

We have talked about the supporting industries of ACME. Now let’slook at it from a general perspective. Supporting industriesdiscussed in the specific factor are different industries whichplay very important part in the operations of other companies aswell. They may be our competitors or our sister concerns. Now,from general viewpoints, how well or how differently othercompanies can use them makes a lot of difference in any industry.For example, let us look at how brilliantly they are being usedby Unilever or Square, or even Ericsson or Nokia. This ischanging the market about the effectiveness and efficiency of howwell they are being used. These are difference making effects onthe 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 countriesin the international market. Talking about it in the specificsectors, let us take the case of ACME exporting products to UK.We have to take consideration of the income level, inflationrate, exchange rate between Taka and pound. When the inflationrate of UK is higher than that of Bangladesh, there would be highprices of UK products in UK. But compared to the UK localproducts, the prices of Bangladeshi products would be cheaper.Therefore, there would be an upward pressure on the demand forthe Bangladeshi goods which also includes ACME products. Thiswould also enable ACME to earn higher profits. On the other hand,if the exchange rate is high, for example 100 TK gives £1, thenACME would have certain amount of profit, but when it is !20 TKto £1, then the profit calculation changes. Now, this exchangerate is influenced by critical factors like Income Level betweenthe two countries, Inflation rate, interest Rate, and also theeconomic factors of the two countries.

International Financial Market:

In the Macro view, there are lots of things that can affect theexchange rate movement between two countries and also between thecapital 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, CurrentAccount and Capital Account. These things affect any businessboth internationally and nationally.

Stakeholders:

Customers are the most important stakeholders because they arethe key to our purpose of running our business. Directors are thepersons who are responsible for the existence and continuation ofthe business. ACME is a private limited company so there is noquestion for shareholders. The government is another stakeholderbecause they are affected by the nature of the product we selland our tax payment and our operations countrywide. Supportingindustries can be our Banks and all other companies that providetheir services to us.

Raw Material Specification for Mango Pulp:

Sl No. Description Specification01 Physical Appearance The Pulp shall possess uniform

color, characteristic taste and flavor of mango. It shall be free from any foreign particles.

02 Color Golden Yellow03 Taste Characteristic taste04 Aroma Typical Mango05 Acidity (as Critic acid

in m/m)0.40% – 0.60%

06 Brix (Sugar%) at 20 degree Centigrade

14.00% – 16.00%

07 PH 3.50 – 4.0008 Viscosity (Spindle 4,

50pm)3000 cP – 5000 cP

09 Total soluble solid  (in m/m)

15.00% – 20.00%

10 Specific gravity Not less than 1.050

11 Arsenic (As in mg/kg) Maximum 0.2012 Lead (As Pb in mg/kg) Maximum 0.3013 Cooper (As Cu in mg/kg) Maximum 5.0014 Zinc (As Zn in mg/kg) Maximum 5.0015 Tin (As Sn in mg/kg) Maximum 25.0016 Sulfur Dioxide (in

mg/kg)Not more than 40 ppm

17 Total Count Less than 50 cfu/g18 Caliform Nil19 Yeast & Mould Less than 50 cfu/g

Net Weight:    150 ml, 250 ml and 1000 ml tetra packed

Product: Orange Juice

Brand: ACME

Raw Material Specification of Orange Pulp:

Sl. No.

Description Specification

01 Physical Appearance The concentrate shall possess uniform color, characteristic taste and flavor of orange. It shall be free from any foreign particles.

02 Color Orange yellow03 Taste Must be characteristic of

Orange04 Aroma Typically Orange05 Acidity(As Citric Acid in

m/m)3.80%-4.80%

06 Brix Not less than 63%07 PH 3.50-4.0008 Total soluble solid (in m /

m)75%+/-2.50%

09 Arsenic (As in mg / kg) Maximum 0.20

10 Lead(As Pb in mg / kg) Maximum 0.3011 Copper (As Cu in mg / kg) Maximum 5.0012 Zinc(As Zn in mg / kg) Maximum 5.0013 Tin ( As Sn in mg / kg) Maximum 25.0014 Sulfer Dioxide (in mg / kg) Not more than 40 ppm15 Total Count Less than 50 cfu/g16 Coliform Nil17 Yeast & Mould Less than 50 cfu/g

B. Price list of Acme Juice:

Category Flavor DP TP MRP1000 ml MO 38.50 41 481000 ml MC 38.50 41 481000 ml MP 54 58 681000 ml OC 38.50 41 481000 ml OP 54 58 68250 ml MC 12.30 13 16250 ml MP 15.50 16.50 20250 ml OC 12.30 13 16250 ml OP 15.50 16.50 20150 ml  M 7.50 8 10150 ml O 7.50 8 10

 C. FEATURES:

Essential Features:

Unique Taste & Flavor. Hygienic UHT Packs Nutritionally rich, free of noxious preservatives. Meet the requirement of the consumers of all ages & groups. Competitive price. Free of noxious preservatives.

Supportive Features:

Can be used at all times round the year.

Gives a feeling of freshness all day long. Can be used by all in the family. Prevents offensive diseases.

ANALYSIS OF MARKET SIZE, SEGMENTS & SHARES:

Total sales of fruit juice are approximately TK. 144 croreper annum.

Market growth rate (annually total market) is approximately19%.

Mainly six companies are competing with each other. Pran is holding the market leader position with

approximately 53% market share. We are in the second position with 18% market share. Starsihp at 10%, Danish at 11%, Shezan at 8% and others. Due to consumers’ increasing awareness regarding healthy

diet and fitness, 20% consumers have switched to fruit juicefrom CSD (Carbonated Soft Drinks) last year.

Akij Group came up with a new range of fruit juice named“Frootika”.

 ANALYSIS OF THE COMPETITION: PROMOTIONAL STRATEGY & DISTRIBUTIONNETWORK

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

PRAN:

PRAN was supported through TVCs and press media in a consistentbasis. In terms of pitch the respective brand appeals were used.  Pran has top of the mind awareness among all cross section ofpeople due to its heavy media presence and strong distributionnetwork. Pran has been made a strong claim “Deshi” through theirTVCs which is exceptional compare to other competitors. To makethe Group’s products available at the every knock & corner of thecountry PRAN has developed the best sales & distribution networkall over the country. To ensure fast & smooth distributioncompanies has set up 9 distribution depots & have appointed morethan 1000 dealers all over the country. To cope up with the rapid

& ever changing market situation & to come up with innovativemarketing strategy and ideas company has set up a full-fledgedIn-house advertising agency comprises of the best talents of thecountry. Company spends a large portion of their promotionalbudget in brand building exercises at home & abroad. Lastly theirwinning strategy of market leader is Hammering.

DANISH:

Recently commissioned, this unit produces highest quality fruitdrinks under the brand name Danish Fruit Juices. In addition totheir vast sales and distribution network of dealers, they have 6sales depots located at strategic points. They have mobilizedadequate distributors to serve all parts of the regions; they areone of the largest distribution organizations in Bangladesh. Thisnetwork makes possible the flow of goods from the producerthrough intermediaries to the buyer. Their network and operationsare 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 isone of the most vital divisions of the group. They have threedifferent types of products in their juice category, whichinclude Mango, Orange and Pineapple with three different SKUs 250ml, 200 ml and 125 ml. Their target market is mainly commercialuser as well as Family consumer. They positioned their brand fromupper mid level to the mind of consumer. They have a nation widecoverage through their strong distribution network and alsoengaged in exporting. Their main mission is to create branddemand, image and customer confidence by ensuring quality,availability and rich communication with ultimate consumer. AsDanish is in the media with their current TVC, it has

significantly high top of the mind recall. They offered adiscount for their kids pack. “Fol’er raja aam, ar aam’er rosh’eDanish”- through this line they made a significant high top ofthe mind recall towards their target customers.

Distribution Network of ACME Juice:

Central Warehouse

(Factory)To various Depots

(16)Distributors

(290+)WholesalersRetailersCustomers

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 andthen that a company is entering this industry. But when we judgethe market and see that most of the local giants like ACI Ltd.

Industry Rivalry: Since this industry is very price sensitive therivalry is very high. Price depends on all the internal expenseand operational costs of the company, that is why, it is not easytop be price-change responsive for all the companies. Forexample, if Pran Juice decreases Juice price for 1 TK, ACME Juicemay not be that much responsive to this change because theysimple cannot.

Substitute Products: For Juice, the substitute products are otherenergy drinks, fruit drinks and other Chinese natural drinks. ForTea, the substitute is Coffee and for mineral water, thesubstitute is carbonated soft drinks. For juice, the pressure ofthe substitute product is moderate because now, the population is

increasingly becoming aware of how important it is to have somejuice in their daily lives.

Bargaining Power of Buyers: undoubtedly, this is very high. Thebuyers are they key to this industry and they can have whateverthey want in this price sensitive industry. With the pullstrategy being used extensively, the buyers are absolutelypressure free for whatever they want to have.

STOWS Matrix:

  Strengths WeaknessesOpportunities

SO Strategies

v  Production research and development

v  Product Quality and Price for Dual income Families

v  Export ease to pharmaceuticals international markets

WO Strategies

v  Part-time employees

v  Hiring of trainedpersonnel from supporting industries

Threats ST Strategies

v  ACME group can do governmentlobbying to stop foreign players.

v  Product quality can fight with fake products.

WT Strategies

v  Change in traditional thinkingcan realize competitors’ opportunities.

PROMOTION STRATEGY

In order to market the product, we can use both ATL and BTL. TV,newspaper, radio, bill board, school branding, trade offer andother social campaign can prove to be very effective. The mainstrategy would be to incorporate this product as part of everydaymeal and make people believe that consuming this product is

healthy and safe. This is the way we can create demand for thisproduct.

Billboard:

Billboard is one of the most useful promotional tools for anybrand. The scope of its visibility is very much higher compare toother promotional tools. But due to extreme popularity of mediamix, its value is getting down day by day. Currently ACME hassome billboards across the country. All of them are in a veryprominent place where the visibility is too high. Considering thebudget constraints if it is possible then we should take few morebillboards all over the country.

Merchandising

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

POP Materials:

POP materials like stickers would have to be used to remind thetarget customers at the point of purchase. In addition theseshould also serve the purpose of informing those who are stillunaware till the time of purchase. POP materials includebuntings, danglers, shelf talker, bus hanger, poster etc. Someproposed POP materials for superstore and for upper class levelare showed as below:

MEDIA MIX OF THE CAMPAIGN

Press:

Publications will be carefully selected keeping in mind thetarget customers. Regional newspapers will be used to increaseusage and sales in the respective regions. The circulations ofthe newspaper are described as below:

Newspaper Circulation:

SL No.                          Publications

   Circulation

                        English Dailies

   Bangladesh

      1 Daily Star         50,000      2 NEW AGE         15,000      3 Independent         10,000      4 Bangladesh Observer          

8,000      5 Financial Express          

6,600      6 Bangladesh Today          

4,400      7 News Today          

4,000      8 New Nation          

3,500      9 Holiday (weekly)         10,000                     Bengali Dailies        1 Prothom Alo       350,000      2 Jugantor       185,000      3 Samakal       150,000      4 Naya Diganta       130,000      5 Ittefaq       165,000      6 Amar Desh       135,000      7 Amader Samoy         65,000      8 Janakantha         90,000      9 Inqilab         60,000    10 Ajker Kagoj         

40,000    11 Bhorer Kagoj         

35,000    12 JaiJaiDin         

30,000    13 Sangram         

18,000    14 Manabjamin         

15,000    15 Dainik Dinkal         

11,000    16 Sangbad         

10,000    17 Bangla Bazar Patrika           

5,000

Recommendation:

After completing a successful launch we should go for presscommunication through large size color (10 col x 4”) insertionfor at least one month in the highest circulation papers. It isdescribed as below:

Sl. Publications

Position Size (Col x inch)

No. of Insertion

Cost

1. Prothom Alo

Front page (Color)

10 col x 4 inch

2 473600

2. Jugantor Back page(Color)

10 col x 4 inch

1 154000

3. Ittefaq 3rd page (Color)

10 col x 4 inch

2 295200

4. Daily Star Front page (Color)

10 col x $ inch

2 384000

 Most read Magazines

So in the same time we should go for some insertions to themagazines which are read by the consumers mostly.

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 asuccessful re-launch we can develop our radio plan in thefollowing manner:

Foorti 88.0 fm

Brand: ACME Chocolina

Duration: 30 Sec.

Programs Position

Duration

Rate Spots Cost

Hello Dhaka (7am-9: 30am)

Before 30 25 320 225000

Dhaka Calling (4pm-8pm)

Before 30 25 320 270000

Card Total       640 495000Add 15% Vat         74250Grand Total         569250

 Total number of spots Program wise:

2008September October November December80 80 80 8080 80 80 80160 160 160 160

 Today 89.6 fm

Duration: 30 Sec.

Programs Position

Duration

Rate Spots Cost

Hello Dhaka (7am-9: 30am)

Before 30 20 320 162000

Dhaka Calling (4pm-8pm)

Before 30 20 320 216000

Card Total       640 378000Add 15% Vat         56700Grand Total         434700

Total number of spots Program wise:

2008September October November December80 80 80 8080 80 80 80160 160 160 160

Top 10 TV Channels:

The television campaign will go during the launching month er.Thereafter a shorter version of TVC will be followed in the next.Spots will be scheduled during the launch phase in a way that thespots 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 sponsoringpublic health message related serials/dramas aimed at propagatinghygienic practices in the daily life activities.

  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

Conclusion and Recommendations

1. Persuasion: in addition to the attraction of the children,we also have to work in making the parents believe that thisproduct is good and useful for kids to consume. Parentsshould understand what they are providing their kids and itis an easier way to provide energy.

2. Universities and Schools: We have to talk to differentprivate universities to go through a win-win relationship.We would ask them to use our branded Wall Clock in everyclassroom. We would sponsor their clubs, for example YoungEntrepreneurs’ Society in NSU, AIESEC in IBA, etc in theirsocial activities, in return we would provide part time jobsfor their students with certain requirements in our Agrovetand Beverage department. Here, we can fulfill the setbacksof this department by employing these part time students ata much lower salary and they can deliver the services thatwe take from other departments of the ACME group. Forexample, several designs that are prepared by the designersof the pharmaceuticals departments are not up to the markand require consistent briefing. With students and theircreativity, we can use the services at a much lower costwhere we do not have to higher professionals for ourAgrovet. In this way, we can develop our employees forfuture. In this way, the universities can also advertisethat they can manage part time jobs for their students.

Bibliography

Malhotra K. Naresh, Marketing Research, 4th Ed. PearsonEducation; India. 2004.

Secondary Data: Sirius MKT & Social Research Ltd., Marketdata