Marketing management

Chapter-1

1.1 IntroductionToday’s successful companies share a strong customer focus and a heavy commitment to marketing. The goal of marketing is to build and manage profitable customer relationships. Mainly, marketing is the delivery of customer satisfaction at a profit. In fact, marketing strategies, marketing mix and the distribution channel level deal with the effective promotion of the products. In this regard our Course MKT 301(Marketing Management) deals with the basic or core concepts of Marketing in the context of company’s activities. So, as we the student of MKT Course, in our project we will try to develop a marketing plan for Akij Berverage Ltd and the product is Carrot Juice Max.

1.2 Objective of the Study

The core objective of this report is to apply the basic concepts of marketing to a product. We have selected a completely new product for our country and we want to apply the knowledge and information we have acquired from various sources.

1.3 Methodology

The report has been prepared based on secondary information, the marketing management book and the also the information collected from the internet. Besides, for selecting each strategy we have given our own reasoning standing behind that strategy.

1.4 Limitations

The study was limited by a number of factors. Some constraints are given below: ---- Lack of realistic and practical knowledge about Marketing. Lack of sufficient alternative sources prevented verification of information. This report may suffer from statistical error due to the fact that all data used were

hypothetical. The analysis and the future projection presented here may vary with opinions of

experts in this field.

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Chapter-2

Company profile

Akij Group is country’s one of the leading business conglomerates. At first Akij Corporation Limited was known as Amin Enterprise and started its operation in 1992. In June 1997 Amin Enterprise was renamed as Aminuddin Enterprise Limited and in 2001 Aminuddin Enterprise Limited was again renamed as Akij Corporation Limited. Akij Corporation Limited is responsible for the marketing and distribution of three industries of Akij Group namely Dhaka Tobacco Industries, Akij Match Factory Limited and Akij Zarda (chewing tobacco) Factory.

Akij Food & Beverage Ltd. has been established at a striking site Krishnapura, Dhamrai of Dhaka. So far it has come with the best food & beverage in Bangladesh.

Akij Food & Beverage has various types of drinks like Mojo which is the brand name of cola, Lemu is the brand name of Lemon and Speed is the brand name of energy drink. Immediately after the introduction of the brand it became very popular among its consumer because of the high quality and intensive distribution in every nook and corner of the country.

Company name: Akiz Group of Industries

Location: Akij Chamber 73, Dilkusha Commercial Area, Dhaka – 1000, Bangladesh

Founders: Sheikh Akij Uddin

Product line: There are four types of products in their product line. These are Mojo, Lemu, Clemon, Speed, and Frutika (mango, orange & grape flavor).

Akij Food & Beverage want to satisfy all its customers but it’s very difficult to full fill customer’s choice. So in order to make sure the customer’s choice they has different flavor like Mojo for cola flavor, Lemu for lemon flavor, Clemon is also lemon flavor but the test of Lemu and Clemon is not same and of course Frutika juice in different fruits flavor

Capital investment:

Akij group already invested about tk500 crore for Akij Food & Beverage only.

Logo:

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Marketing management

Slogan: “Brings Quality in the Life”.

Meaning: They want to provide the best quality of food that is why the slogan is “Brings quality in the Life”. They believe that their products are best.

Company mission: Akij group mission is to surf the people best quality, social well fare etc. The mission of Akij group is narrow

Vision: profit increase, market share and want to be market leader. They also have a vision to create new job opportunities in the market.

Objectives: Akij group has an objective to full fill their mission and also increase the company growth with adequate profit margin and more over want to satisfy their customers.

Chapter – 3

Current Market Analysis

3.1 Market description

The market condition of “Carrot Juice Max” will be good. Now In Bangladesh people are becoming more concern about their individual health. Recently people prefer juice rather than any sort of cola. “Carrot Juice Max” will provide quality and reasonable price juice. People will be attracted by attractive TV advertise “Carrot Juice Max” will be available in nearest shop both urban and rural.

3.2 Industry analysis

Akij Beverage has 7% - 8% of market share. Pran being the oldest one it has captured most of the market and they are market leader. There are other competitors like Shezan Juice; Acme Juice etc. There are no competitors for “CARRAOT JUICE MAX” because it’s totally new to the market. So, it can progress its position very fast and soon.

3.3 Review of the competitors

Pran Juice: The time Pran juice comes into the market the advertisement was first published in news paper, and more over there was a coupon which is used for discount purpose. They also provide electronic media, news media and billboard advertise. They capture market the market in a very short time..

Shezan Juice: Shezan juice came before Pran juice in market, that’s why people is used to drink and they like it because of its test. There is also a brand value.

Acme juice: Acme juice creates a value of purity because of its pharmaceuticals sector. That’s why people who are over conscious about their health like Acme juice.

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Marketing management

3.4 SWOT analysis of the organization

Strengths:

Brand image: Akij group is already a established brand name. So there already exists a strong brand image of the company. So if we launch any product under this brand name then it automatically accept by the consumers.

Quality:Most of their raw materials come from various foreign countries. The quality is very strictly controlled. At every stage, non standard products are rejected. So we can say that how well they are aware about their products quality.

Strong distribution network: Akij group has a strong distribution network and this is one of the most strongest competitive advantages for them. They make product available all over the country through their strong distribution channel of retailers and whole sellers.

Weakness:

The weakest point of akij group is that if any product sells fall due to poor quality then it will also affect the other products of other brands.

Opportunity:

Increasing demand: As people are engaging more in taking beverage product, the demand is increasing day by day for this kind of product category.

Threat:

Akij group have a number of competitors especially under Akij Food & Beverage Ltd such as Pran juice, shezan juice, Acme juice. This competition is very high and works as a threat for Akij Food & Beverage Ltd.

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Chapter-4

Product Profile

4.1 Some information about product

Products mission: The mission of Carrot Juice Max is,

We are in the market to serve with high quality beverage food items at affordable price.

Vision: the vision of Carrot Juice Max is,

Ensure people’s healthier life with natural juice and make the product available in very part of the country.

Objectives: The objective of “Carrot Juice Max” is to gain the highest number of market share of beverage products. In this purpose they always try to minimize their cost compare to others and try to maximize the profit.

Goal: The Akij Beverage Ltd’s goal is to be the market leader within 4 to 7years in Bangladesh. They aims that, they will be successful to achieve their target in the approximate time.

4.2 Products characteristics along with different levels:

Figure 1: Product characteristics along with different levels

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Variety and quality: “Carrot Juice Max” is only vegetable juice which completely comes from the nature. The quality is very strictly controlled. At every stage, non standard ingredients are rejected.

Design and Packaging: Design and packaging is the most important things to attract the customers. That’s why Akij has to make the packet more colorful. The more attractive design and stylish visualization the product have, the more the consumers will accept the product quickly. They have to provide details information in the label about the product such as expire date, manufacturing data place of production, sign of originality.

Brand name: “Carrot Juice Max” is the brand name of fruit drink.

Color & reason: Bright orange and picture of some fresh carrot. The written of “Carrot Juice Max” is bold white color. The color of “Carrot Juice Max” bottle represents that colorful side of life, full of joy, excitement and sprit to bring any change in worst situation.

Shape & Reason: In glass bottle there is risk of broke and after drink need to return to the retailer. Plastic bottle is easy to carry liquid drink. Waves on the bottles have been used as its design to distinguish its design shape.

Size & Reason: Different size like-250 ml, 500 ml, & 1000 ml. 250 ml bottle is the market leader. Because other competitor doesn’t produce 250 ml. the price is also low as a result consumer can buy more. As it is 250 ml, it is convenient to carry. At first 250 ml can be produced for trail.

4.3 The Boston Consulting Group’s /Growth-Share Matrix:

After analyzing the market growth rate of beverage product and the market share of “Carrot Juice Max”, we find that this product will be lying under “Question Mark” situation in terms of Growth-Share Matrix. The question mark situation defines that, the market growth rate of a product category is high but the relative market share of a specific company is low in the present market. At the present situation, in our country the market growth rate of beverage product is pretty high but the market share of “Carrot Juice Max” will comparatively low rather than other competitors like Pran, Shezan and Acme etc.

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Figure 2 –BCG matrix

4.4 Segmentation process:

A market can be segmented in four categories. Like Demographic segmentation, Geographic segmentation, Psychographic segmentation and Behavioral segmentation. For launching the carrot juice max we are mainly following Geographic, Psychographic and behavioral segmentation.

Geographic segmentation:

We are mainly focusing world region or country.

Psychographic segmentation:

We are mainly focusing on different social class.

Behavioral segmentation:

We are mainly focusing on benefit segmentation. Because our product slogan is “Living food for maximum nutrition”. So our product mainly focusing on the product benefit.

4.5 Target market selection process for the product:

For our product we also select a target market. Target market selection is very important because they are the people from where we will earn revenue and they will say what we are trying to say. We will mainly focus on mass marketing. The reason is for mass marketing the product is new and there is no competitor till now. In mass marketing the sellers engage in the mass production, mass distribution, and mass promotion of one product for all buyers. The target group of carrot

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juice max is all class of people, because people are fond fruit juice as soft drinks and our carrot juice also carries much vitamin then other juice. So this is our target market and we always try our best to serve better quality to attract as many as customers.

4.6 Product Life Cycle Determination

“Carrot juice max” is standing in the “Product Development” stage position on product life cycle. Because does not go for sale in the market so its sales is zero and there is loss rather than profit because we have to invest on R&D and there is no sales. As “Carrot juice max” is in “Product Development” position, their marketing objective will be increasing sales in the market. So they have to make aware about the product so they should give emphasis on our product, price, and distribution and promotion strategy.

Figure 3- Product Life Cycle

4.7 Types of Consumer Behavior:

Among the four kinds of buying decision behavior, in purchasing the beverage products like “C-Water”, the customers are engaged in both variety-seeking buying behaviors as well as in habitual buying behavior. The main characteristic of variety-seeking buying behavior is low involvement and significance differences between brands. Every individual have different taste for beverage products. As beverage products are convenience products with a comparatively low price, when a consumer goes for beverage product, they look for various tastes ready to experience new tastes.

Again the characteristics of habitual buying behavior is – low involvement and few differences between brands. When a consumer becomes the loyal consumer, they involve in habitual buying behavior.

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Figure 4- Consumer Buying Behavior Matrix

4.8 Steps in the Buyer Decision Process:

The consumers of beverage go follow a buying process. They follow the steps given bellow:

Need recognition: The buying process of begins with need recognition by the consumer. Here the two factors are ---

Internal stimuli: Consumers may feel thirst that is the internal stimuli.

External stimuli: Consumer also can take the juice by watching the advertisement of the company or by stimulation of any friends or relatives.

Information Search: In terms of beverage products, consumers don’t engage in more search of information. Customer of beverage products always tries to search information to find the best taste. In this case of consumer usually search information from the following sources:

Personal sources: Family, friends and peer groups.

Commercial sources: From print media, electronic media outdoor advertising.

Public sources: Mass media (attractive advertisements).

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The marketer of Akij group should have to make the information available in all possible sources. So that customers can easily get the information.

Evaluation of the alternatives: In this stage customers try to find out the best product by analyzing and evaluating the available information by tasting the product. In this case the marketer of Akij group should give more emphasis

In this case the marketer can do a survey to find out what factors mainly the consumers are looking for.

Purchase Decision: This is the final stage for the customer to buy the product. Here the consumer decides which brand they will buy. But in this stage sometimes customers may face some unexpected situations or factors. So akij group have to be aware about that.

Post purchase Decision: In this stage after using the product some consumers may be satisfied or dissatisfied. For satisfied customers we have retain them by providing better quality. And in the case of dissatisfied customers the Akij group has to find out reason for dissatisfaction and have to take some corrective action.

4.9 SWOT analysis of the product:

Strength:

Using Good brand name: Akij Group is already established as a brand name in our country. So if we use this brand name then it will be a good strength point of the product.

Strong distribution network: Akij group has a strong distribution network. So they will be able to make the product available through their strong distribution channel of retailers and whole sellers.

Weakness:

Lack of acceptance: the product is new so there is a possibility of lack of acceptance of the product by the consumers.

Opportunity:

Pioneer in vegetable juice: As we are the pioneer in vegetable juice so there is a huge opportunity for Akij group. If the product accepts for a single time, then our consumers will increase day by day.

Threat:

Competitors: it is may be possible that the competitors may launch the same kind of later. Thus Akij group may lose the market share.

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Marketing management

Chapter – 5

Pricing strategy

Price is the only element that brings revenue or loss for the organization. There is a product ceiling and floor, but Akij food and beverage ltd have to set the price between this two. Actually they have to set a price that is affordable by all class of people.

Initial price of the product:

Though the product is new so we have to use the pricing strategy of new product. Our main objective to set up a price that is affordable by all class of people. So Akij food and beverage have to set up a price that is low thus all class of people will be able to buy the product. So Akij food and beverage have to use the market penetration strategy.

Market penetration:

Market penetration means providing low price for the new product. The objective is to enter in to the market and to increase the market share. This type of pricing strategy mainly appropriate for convenience product and our carrot juice max is also a convenience product. Actually any sort of juice mainly fall under convenience product category.

Chapter- 6

Distribution strategy

Marketing channels are set of interdependent system through which the marketer make the product available for the consumers for consumption.. Marketing channel is one of the important part of marketing activities. The channel chosen after all other marketing decisions. Most producers do not sell their goods directly to the final users; between them stands a set of intermediaries performing a variety of functions. These intermediaries make a marketing channel. It is also called distribution channel. This is the channel through which the product will reach to the final consumers to producers.

6.1 Level of distribution channel followed by the company:

There are number of channel level a company can use say zero level channel, one level channel, two level channel and three level channel.

Now the Akij food and beverage using the two level channel. Say for example we can say about the frutika juice. First the wholesalers buy the product from the producer and then sell to the retailers and finally the product reach to the ultimate user.

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We can also show in graph:

ProducerWholesalersRetailersFinal consumers.

We already discussed in the SWOT analysis of the organization is that their one of the major strength is their distribution network.

6.2 Distribution or marketing channel system:

For Akij food and beverage limited all the marketing intermediaries and the manufacturer work as a unified or dependent system, so by definition we can say that they are using “vertical marketing or distribution system”.

Other forms of distribution system are conventional marketing system, horizontal marketing system and multi or hybrid marketing system.

6.3 Types of marketing intermediaries (Distribution intensity):

There are three types of marketing intermediaries or distribution intensity.

>Intensive distribution

>Selective distribution

>Exclusive distribution

Akij Beverage Ltd mainly using the intensive distribution. Though the juice is a convenience product so we have to make the product available as much as possible. So they have to follow the intensive distribution.

Chapter-7

Promotional Activities

Carrot Juice Max will be in the introduction stage in the product life cycle. So Akij Beverage has to give a lot of efforts to make the product well-known towards the people. So they have to put a great effort on the promotional activities.

7.1 Target Audience:

Target audience of Akij Beverage Ltd promotional activities will be directed towards the all social class of people.

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7.2 Communication objective:

An advertisement goal (or objective) is a specific communication task and achievement level to be accomplished with a specific audience in a specific period of time. Carrot Juice Max will be the new product for the Akij Beverage Ltd. So first they have to use two types of advertisements- Informative advertising and Persuasive advertising.

Informative advertising aims to create awareness and knowledge of new products or new features of existing products. This product will be totally new in Bangladesh. So Akiz Beverage can simply show informative advertising to introduce its name to the customers groups. In this way it can make customers aware of this product.

On the other hand, Persuasive advertising aims is to create liking, preference, conviction and purchase of a product or service. Akij Beverage will be showing this type of advertisements to motivate people about their product’s goodness and want to convince to buy this product.

7.3 Design messages:

First the have to design the advertisement with rational appeals which will discuss all the benefits of the product. They can use different celebrities for their advertisement who has expertise, trustworthiness, likeability. For example they can use any famous doctor to describe about the Carrot Juice Max..

7.4 Media:

Since the target customers of Akij Beverage are the Mass people, it can chose the different media to maximize its exposure. Akij Beverage can use electronic media, print media and billboards for its promotional activities. On television, the company can use popular channels like BTV, NTV, RTV, Boisakhi Channel, Channel I, ATN Bangla etc. and many more. As a matter of fact they have to ensure that whichever local channels the consumers turn to they get to know about them. They can use also Bangladesh Bater, radio foorti and radio today to broadcast its advertisements. Print media is also very effective medium for advertisements. Akiz Beverage can give different types of eye catching advertisements in widely published newspaper in Bangladesh like New Age, The Daily Star, Prothom Alo, Somokal, The daily Ittefaq etc.

Billboard is also a good way to attract the consumers about the product which Akij may follow.

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7.5 Promotional Budget (Hypothetical):

7.6 Ads effect on sales:

Akij has to measure the effect of the advertisement to the consumer mind. If they like the advertisement they will buy the product. Actually here, Akij has to measure the result of the promotional tools.

Chapter-8

Action Programs

After the formulation of the strategies on the product, its pricing, its distribution and finally on its promotion, they have to implemented those thing into the market.

First, the R&D department of Akij group has to develop the product according to the plan. Then the top management imports the required machinery and equipments from abroad. Within 6 months they will set up the factory.

Then the executive body of the Akij Beverage will divide different responsibilities into the different departments.

The production department in-charge will be given the responsibility to interact with the supply chain for starting the production of “Carrot Juice Max” in the factory. This will involved a large number of different responsibilities. The value chain managers, the technicians, the quality control officers, the cost management accountants and all the workers and employees working for the department will be allocated with their targets from ensuring the supply of the ingredients to the quality of the products produced.

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Promotional tools Amount (in million Tk)

Advertisement

Electronic media 1200

Print media 768

Outdoor billboards

48384

Sales promotion 5

Total Tk 50357

Marketing management

Meanwhile, the distribution and the promotion departments will have to prepare themselves to introduce the product into the market. This department will have to communicate and make agreement with the wholesalers and retailers about the issues of distribution. Moreover the Marketing department will be spending its huge budget on the aggressive television, print media and radio advertisements and marketing to create awareness of their product.

Soon as the product will ready in the production department, they will passed it to the distributors through the channels and the ongoing advertisements enabled the product to be recognized by the customers in the target market.

In addition the production department will have to maintain the sound flow of production. They can improve Carrot juice Max quality by bringing new technology.

On the other hand the distribution department has to distribute the product throughout the country.

Moreover the Marketing department has to come up with different ideas which will attract the customers and make a positive impression about the Carrot Juice Max towards them.

Chapter - 9

Problem Identification

Carrot juice will be completely new product into the beverage industry of Bangladesh. That’s why; consumers have no idea about it.

Carrot is a perishable vegetable which will be the main problem for Akij Beverage Group.

Carrot is also a seasonal vegetable. After the winter season, carrot does not available into the market.

If Akij Akij wants to import the raw materials that mean the carrot carrot from outside the cost will raise so that the price of the juice will also be very high. Furthermore the processing cost of making carrot juice carrot juice is also high.

Need high qualified employees to operate the production department, marketing department and distribution department.

As it is a new product among the general people, that’s why Akij Beverage Ltd has toAs it is a new product among the general people, that’s why Akij Beverage Ltd has to spend a lot of money for their promotional activities.spend a lot of money for their promotional activities.

There are several establish beverage companies into the market. So it’s a great problemThere are several establish beverage companies into the market. So it’s a great problem for the Akij Beverage Ltd. Competition may be driven out them from the market.for the Akij Beverage Ltd. Competition may be driven out them from the market.

Taste of the carrot juice may not be appreciated by the customers.

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Chapter -10

Recommendation and Suggestion

They have to search for competitive advantage in making and distribution of the juice soThey have to search for competitive advantage in making and distribution of the juice so that their product development cost is less and also if any competitors come in theirthat their product development cost is less and also if any competitors come in their market they can compete against them.market they can compete against them.

They can use celebrities in their advertisement and experienced sales person in theirThey can use celebrities in their advertisement and experienced sales person in their promotional tools.promotional tools.

They have to clarify the product benefits towards the target market in such a way that will attract the customers.

They have to maintain and improve their product quality.

They can apply for the certification of ISO for their production that can make their product appear to be more trusted globally.

They should collect feedback regularly from consumers more frequently and work on it. It will help them to increase the product quality.

They must build up better R&D and continuously take the updates of the potential and actual consumer behavior and attitudes both locally and internationally.

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Chapter -11

Budget, timing and Controlling

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11.2 Analysis of the profit and loss statement

Precisely, the analysis of the profit and loss statement indicates that the profit initially in the first quarter was approximately zero, meaning they were running the break-even. Very impressively due to the increase in the revenue from the sales of “Carrot Juice Max”, the level of profit began to rise up. At the moment they are running on profit and directing the profit towards further development of their product. The expense per unit has already started to fall since the production units are now running at full utilization. The financial managers are predicting positive future of “Carrot Juice Max” with economies of scale.

Chapter-12

Contingency plan

There always some scopes for a decline in the sales or what we planned that might not work in that way. Throughout the report we talk about the positive things. This contingency plan answers what the manager can do if something negative happen. There are still chances that the product might fail as the market is free for any new entrants.. In a case that the product fails in the market there should some way to save the company. For this it is very necessary that there is a contingency plan ready all the time. If the product Carrot juice Max doesn’t achieve success in the market then Akij food and beverage can change the flavor or taste. Again they can direct their promotional activities in another way. They can also target some specific market. Actually if something negative happen first of all Akil food and beverage have to identify the reasons and can take corrective action according to their plan.

References

Kotler, Philip and Keller, Kevin Lane: Marketing Management, 13th edition

http://www.akij.net/index.php?page=afbl.php

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