abul khair

7/28/2019 Abul Khair

1/21

Background of consumer Products (Snacks)

Prior to 1990s small enterprise or house holds were engaged inproduction of such products. They produced the products. Badam vaga,

chanachur, Dal vaza etc at their home manually and soled to the local

market, but in 1991. Pran group, the first and largest agro-based industry,

started to produce these products using modern machinery and

marketwise following modern marketing strategies and policies through

out the country. Their success alered others to come up with the business

and market interssed many large corparies coming into the market with

different agro based products: these companies mainly include Dandy

Foods, Al-Amin foods, BD foods, Arku foods, Shah foods etc. These

companies try to buy the farming products from the local market but

because of limited production they are to import from different countries.

In recent days these companies are engaged in cut throat competition. A

huge amount of capital has been invested in this industry by this time. So

it production of farming can be increased and congenial business

environment good prevails in the country, there is huge prospects of this

industry.


2/21

Chapter two

Abul Khair Consumer Products (snacks) come into being

Abul Khair Consumer Products Ltd. Is a sisters concern of Abul KhairGroup. It started its journey in the first part of June in 2004. It

lounched some products like shah Dal vaga, Shah chanachus, shah

Badam vaga etc. On trial basis in July of the same year. And finally

it went for mass production and mass marketing in August in 2004.

Location:

Abul Khair Consumer Products (snacks) Ltd. Located at 277, Baized

Bostani Raod, Nasirabad Industrial Area Chittagong Considering all thing

it is one of the best industrial areas of the country.

Total Area of the factory

Abul Khair Consumer Products (snacks) Ltd. Own and operates its

factory in a plot of land measuring 3 areas (approximately). There are two

units where different products are produced in semi-auto production

process.

Country of origin of machinery

Abul Khair Consumer Products Ltd. Imports necessary machineries for

smooth and efficient production from India and Jarman.

Manpower:

For smooth and round the clock operation Abul Khair has 15 staff and

150 workers. There markers and staffs and markers mark in 3 shits by

rotation. They do not have any expatriate executive or staff.

Environment concern:


3/21

They have no recycling process or wastage management process. But

they seriously concern about the health of the employee. They try to keep

hygienic marketing environment and ensure medical check before andpost appointment of employee. Moreover they try to produce un hygienic

products.

Risk Management:

Abul Khair Consumer (Snacks) ltd. Purchases insurance policy

against all types of probable risks. They seek advices

from different exparts to minimize unexpected losses.

Moreover they ensure easy access to fires services and

law enforcing agencies to keep the probable loss securing

easy entrance.

Organizational Structure

Factory Manager

Production Manager General Manager

Production

Supervisor

Production

Supervisor

Accounce

Executive

Personnel

Executive

Workers Workers


4/21

Infrastructural facilities:

Abul Khair Consumer Products (snacks) Ltd. Being set up in an ideal

industrial area in commercial capital city of Bangladesh enjoys allinfrastructural facilities including natural gas, electricity, water supply

transportation and communication facilities.

Natural Gas

Because of nature of industry it needs uninterrupted gas supply. To meet

the intense demand the factory is linked to natural gas supply network.

Electricity

The factory is connected with high power electricity line and gets mostly

unintrupted electricity. The factory own a 50 kw stand by Desil

generator to ensure instant power supply when the above

mentioned source is disconnected.

Water Supply

The factory is connected with city water supply line moreover it has its

own deep tube-well which is sufficient to keep the factory running.

Transportation facility:

Abul Kahir consumers Ltd is located in Baized Bostami industrial area

which is 15 km distant from Chittagong Port. Chittagong

Rangamati interdestrict road has passed may in forul of the factory.

So it has easy access to transportation network for both import and

consignment to any other part of the country or world.


5/21

Communication facility:

The factory has BTTB connection and it is connected with its corporate

office and all other departments with in the factory through LAN.

PRODUCTION PROCESS

Production process is not full automatic. It consists of different manual

and auto stages.

Clean up stage:

It is the first stage of production process. Here pulses, nut, are husked and

cleaned up.

Mix up stage:

In the second stage different types of spices and colors are mixed with

cleaned pulses and nuts.

Incase of fired gram salted and spiced pulses are powdered and mixed

with different types of species and colors.

Frying stage:

Here colored and spiced pulses are powdered and mixed with different

types of species and colors.

Frying stage:

Here colored and spied pulses and nuts are tried in automatic machine.

Packaging stage

In this stage fired snacks are packed up in different sizes of packet and of

different with the bhelp of automatic machine.


6/21


7/21

CHAPTER THREE

PRODUCT STRATEGY

Meaning of productA product is any thing that is offered to a market for attention,

acquisition, use or consumption that can satisfy a want or need. Snacks is

basically impulse goods people do not think of buying, just after seeing

they by this type of products.


8/21

Types of product

Products can be devided into two broas groups based on the types of

consumers which are-1. Consumer product

2. Industrial product

Snacks are consumer products because these are directly bought and

consumed by the customers.

Consumers of the products

Children to youth group mainly buy and consume the products. No

special class of consumers ranging from rich to poor all

people consume the products.

Types of raw materials

The following raw materials are used in production of snacks.

i. Pulses

ii. Flaner

iii. Different colors

iv. Different spices

v. Small.

Sources of raw materials

Raw materials are basically collected from domestic and international

market.

Abul Khair consumers Ltd. Mainly import from

Australia

Canada

India


9/21

European countries (Color and smell).

PACKAGING STRATEGY

Size of packet

These products are packed in different sizes of packet

Weight of packet Moster bag packet

400 GM

200 GM

100 GM

50 GM

(40 Pices) 16 KG

16 KG

10 KG

10 KG

Packaging

Packaging is very important for maintaining quality and attracting the

customers. Sometimes good looking and attracting packet ensures market

success of a product. Abul Khair consumers (Snacks) Ltd. uses High

Density Polithin (HDP) for maintaining quality.

Quality maintaining

Abul Khair Consumers (Snaks) Ltd keep vigilant eye upon all thins and

every stage of production. They examine quality at the following stages.

1. Collection of raw materials

2. Different stages of production3. Hygienic production environment

4. Healthy workers.

5. Packaging (High Density Polithen)

Branding


10/21

Rerhaps the most distinctive skill of professional marketers are their

ability to create, maintain protect and enhance brands of its products and

services.A brand name is a name, term, sign, system or design or a combination of

these intended to identify the goods or services of one seller or group of

sellers and to differentiate them from those of competitors. Abul Khair

Consumers (Snacks) Ltd. has developed brand name with their logo of

group of companies in the following names.

i. Shaad Canachur

ii. Shadd Dalvaza

iii. Shad Badam vaza

iv. Shaad Potato creakers (in the pipeline)

Positioning

Positioning is the act of designing the companys offering and image to

occupy a distinctive place in the target markets mind. Abul Khair

Consumers (Snacks) Ltd. launched its products into the market in August

of to 2004. From the every start it has been facing tough competion

because some other companies are operating in the market for long time.

But since Abul Khair Group is a renowned group so it holds a strong

position in the markets mind. More over Abul Khair Consumers (Snacks)

Ltd. highly emphasizes on quality and charges comparatively less price

than others. And as a result of their things it has been able to create a

position in the market by they time.

Position of Abul Khair Consumers (Snacks) Ltd.


11/21

They think they belong to the middle position in the market. But they

observe their development rate is higher than that of others and they are

hopeful to be market leaders in the coming future.

Resource and Development

Abul Khair Consumers (Snacks) Ltd. has a separate department with

responsible people for continuing; reasurce and development nork. They

are continually collecting market information and examining the

competitors condition. They try to know whether the consumers are

satisfied on not.


12/21

Chapter 4

Pricing strategy

IntroductionThe amount of money charged for a product or services or sum of the

values that consumers exchange for the benefits or having or using the

products or services is price. Price is the marketing mix element that

produces revenue but other produce costs. Price is also one of the most

flexible elements. Prices are often set by the company boss.

Factors effecting pricing decision

A companys pricing decisions are affected by both internal and external

factors which are given below:

Internal factors External factors

i Marketing objective Nature of market and demand

ii Marketing mix strategy Competition

iii Costs Other environmental factors

(economy, government)iv Others

Abul khair consumer (Snacks) Ltd. Considers almost all the above

mentioned factors in setting price. AKC mainly focuses on competitors

costs, offers, prices AKC do not fluctuate prices with the change in

demand.

Since some other competitors are operating for longtime so pricing too

much sensitive. But AKC does not compromise quality reducing price.

AKC thinks if necessary price will be higher but quality can not be

compromised AKC also considers the internal factors like companys

profit, different costs which are completely controllable by the top

management.


13/21

Pricing approaches

AKC mainly following competition based pricing though a new company

has few options to follow another pricing method except cost basedpricing method but since some other companies are operating in the

market AKC has to follow competition based pricing method. Despite

these things it thinks of its costs and profits.

Pricing strategy

There are some widely exercised price quality strategy which are shown

in a graph

ProductQuality Price

High Medium Low

High 1. Premium strategy 2. High value

strategy

3. Super value

strategy

Medium 4. Over charging

strategy

5. Medium value

strategy

6. Good value

strategy

Low 7. Rip-off strategy 8. False economy

strategy

9. Economy

strategy

AKC adopts High value strategy. Because it does not compromise quality

but change medium price.

Pricing objectives:

Pricing decisions are often affected by some objective set up earlier bythe top management. A company can persue any of five following major

objectives through pricing:

i. Survival

ii. Maximum profit

iii. Maximum market share

iv. Maximum market skimming

v. Product quality leadership.


14/21

AKC has set up price of its products keeping the following objectives in

view:i. Survival

ii. Product-quality leadership.

Price adjustment Strategy

A company follows different price adjustment strategies for various

customer differences and changing situations. The main strategies are:

I. Geographical pricing

Geographical pricing means how the company price its products to

different customers indifferent locations and countries.

II. Discount pricing

Reducing prices to reward responses such as early payment, purchase

volume, and off season buying.

III. Discriminatory pricing

Adjusting prices to accommodate differences in customers, products,

locations, and soon.

IV. Promotional pricing

Company can & use several pricing techniques such as loos-leader

pricing, special event pricing, cash rebates, low-interest financing, longer

payment terms, warranties and service contracts, and psychological

discounting to stimulate early purchase or more purchase.

V. Psychological pricing

Adjusting prices for psychological affects. Price says some things about

the product. For example, many customers use price to judge quality.


15/21

At present AKC does not exercise any of the price adjustment strategies

mentioned above. Its pricing strategy is same for all sorts of customers

and for all areas of the country but AKA is thinking followinggeographical pricing technique for exporting to middlest market.


16/21

Chapter five

Distribution strategy

In today, economy most producers do not sell their goods directly to thefinal users. Between them standers a set of intermediaries performing a

variety of functions. Marketing channel consists of some interdependent

organizations involved in the process of marking a product or service

available for use or consumption. There are two broad categories of

distribution channel direct and indirect.

AKC uses only indirect channel of distribution to make the product

available for use.

Types of channel

First : Zero level channel

Manufacturer ---------------------------------------> Customer

Second: One level channel

Manufacturer ------> Dealer/Retailer -------->Customer

Third: Two level channel

Manufacturer ------> Dealer -------->Retailer--->Customer

Fourth: Three level channel

Manufacturer--> Dealer-->Whole seller -->Retailer-->Customer


17/21

Diagram of channel of distribution is as under

AKC uses one level channel of distribution

Manufacturer --------> Retailer -------->Customer

AKC has huge number of sales representatives performing the activities

of order taking product delivering and market promotion through out the

country under the supervision of area sales manager, regional sales

manager and general manager sales. These sales representatives sale the

products to the retailers.

Factors to be considered in selective channel of distribution.

1. End-user considerations

2. Product characteristics

3. Capabilities and resources

4. Functions that need to be performed.

5. Availability and capabilities of intermediaries.

Manufacturer

Dealer

Whole seller

Retailer

Customer


18/21

Since AKC use one level distribution channel and it mantstomake its

products available every where and sales in small lit and in chash so it

does not considers the things scrutinizely.

Channel objective

The amin channel objective of Abul kahir Consumers Ltd is to made the

products available every where in the country and maximize sales

volume.

Channel functions

A distribution channel moves from producers to customers. It overcomes

the major time, place and possession gaps that separate goods and

services from those who would use them. The channel member of AKC

perform the following functions.

1. Distribution: Retailers distribute the products to the final

customers.

2. Information: Retailers some times give important information

about the market conditions.

3. Promotion: channel members sometimes help AKC to promote its

sales volume and build up market image through the participation

of many promotional activities.

4. Matching: Retailers often match the markets needs with the

company, offerings.

Channel management decision

Abul Khair Consumers Ltd. Thinks that channel of distribution plays a

very vital role between producers and customers and perform a variety of


19/21

functions. So channel management decision is very important. Channel

management decisions include three things:

1. Selecting channel members2. Motivating channel members

3. Evaluating channel members.

The channel management decision is taken by top management. AKC

sells its products to the retailers directly. This company maintain close

relation with the retailers through continuous communication. Since there

retailer is


20/21

Questionnaire

Questions about manufacturing Plant

1. Could you tell about the short history of your factory?

2. Could you tell us about ownership of the plant?

3. Where is your factory located?

4. What is the total area of the Plant?

5. What is the organ gram of the plant?

6. How many units and machineries in it?What in the country of origin of the machineries?

7. How many employees (executive & staff) work here?

8. Do you have any expatriate executive?

9. Do you think that Abul Khair Tobacco is the leading factory in this

line?

10. What are the sources of raw materials?

11. Do you have any wastage processing arrangement for the protection

of environments?

12. Do you ensure hygienic environment for the market?

13. Do you have any policy to cover losses occurred by any kind of

accident?

14. What are the steps in manufacturing process?

15. Where do you cheek quality of the product?

Questionnaire about UPS

QUESTIONS ABOUT PRODUCT:

1. What is the concept of your product?

2. What types of raw materials are used in

3. What are the brand names of your product?


21/21

4. Do you think your product is market leader/

5. Who are the users of your product?

6. What are the different sizes and shapes of your product?7. Do you have R & D Department?

8. What are the sizes of packet of your products?

9. Do not you think that your production plant in polluting the

environment?

10. What are the process to justify the comparative standard of your

product?

11. Do you maintain separate department in the factory?

12. How cereld you measure the quality of your product?

13. Are your customer satisfied having your products?

14. How do you collect information about customer satisfaction?

abul khair

Documents