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Background:

The date 6th February, 1972 marks the journey of a valiant effort in Gandaria,
Dhaka, when there was the beginning of the company known as "CITY OIL MILLS".
The founder Chairman; Mr. Fazlur Rahman started the group from scraps virtually. The
initial period was marked with a lot of hardships due to the post war era when the
country faced economic fallout. Initially the mission of the company was to produce
mustard oil for the local market consumption. The demand of the product showed the
way to a new arena of business.

For the next 18 years, the company operated within the vicinity of the Dhaka city and
met the demands of the local market. The revenue generated from this soon gave away
for the entrepreneur to evolve the company, which was by now one of the largest
mustard oil producing plants in the country.

A vision - to transform the company to a 21st century conglomerate of the country

started. "City Vegetable Oil Mills" was established at Rupshi, on the outskirts of Dhaka
city. This effort evidenced an accelerated growth of City Group and the the company
was soon found to open two more sister concerns by the year 1994 - "Hasan Vegetable
Oil Mills Limited" and "City Fibres Limited".

Within this period the founder also devised new production units and soon brand was
born - "TEER", the name itself captivating the hearts and minds of the people. Appearing
in this banner was the flagship product, "TEER SOYABEAN OIL", which soon found a
good market share.

The overwhelming revenue generated and the unprecedented popularity of the products
of City Group soon found its way into the hearts of the people. City Group was by now
one of the emerging industries of the country with an ever-expanding business, which led
to 21 sister concerns by the end of the year 2006.

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Presently, the company focuses on meeting and responding to the ever-changing needs
of the consumers both home and abroad. Till now City Group is one of the largest
company in the country, and business reaching foreign countries making it one of the
best conglomerates of the country. Years of meticulous work have paid off and by
now CITY GROUP OF INDUSTRIES has started its alteration towards an International
Standard Company along with its 21 sister concerns.

Our journey till now remains an epic adventure with more yet to come and we strive with
a quest - "A Quest for Excellence!"

Mission:

Our Mission is: “To provide high quality health and food consumables for the
consumers in an affordable price and raise awareness in the Local & International market
for manufactured consumables from Bangladesh.”

Objective:
To provide HYGIENE, HEALTH & EXCELLENCE in food consumables for the
consumers at an affordable price and raise awareness in the Local & International market”

Goals:

• Passion for Excellence

• Business Integrity
• Pioneering
• Commitment
• Development

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Product Feature For Soya bean Oil:

Refined from Crude Degummed Soyabean Oil (CDSO) – Teer Refined Soyabean
Oil is one of the key flagship brands of City Group. Other than that the company also
produces Sun Refined Soyabean Oil.

The extraction process starts first as Crude Degummed Soyabean Oil (CDSO) is
imported directly from foreign countries in large oil tankers to Chittagong port, from
where its brought to the refineries of City Group.

The CDSO is refined with utmost perfection maintaining a harmony of both International
and Local Standards that are required along with safety and hygiene concerns. The
refining process eliminates all the impurities that are present in the CDSO in the from of
acid oil, moisture, gum and etc making sure it reaches the hands of the consumers in
perfect cooking condition.

For our consumer benefits the Standard Specifications and Nutrition Facts for Soyabean
Oil is provided below:

Specifications
Refractive Index at 40o C
Iodine Value
Acid Value
Unsaponifiable Matter
Saponification Value
Volatile Matter at 105o C
Percent by Mass
1.466 – 1.470
122-135
0.06-0.12 mg/g as KOH
3.25 – 4.00 mg/g as KOH
190.1 – 192.5 mg/g as KOH
0.08 – 0.12

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Nutrition Facts
Per serving of 10 gm
Calories 90K Cal
Cholesterol Nil
Sodium Nil
Saturates 1.50 g
Monounsaturates 2.00 g
Polyunsaturates 6.50 g

Our Refined Soyabean Oil – a flagship product from City Group comes in three
types of Pack to meet the everyday needs of every type of household and consumer. Our
packing sizes are provided below:

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Food Grade HDPE Poly Bag

900 mL

Food Grade HDPE Can

5 Liters 4 Liters 3 Liters 2 Liters

Food Grade PET Bottle

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5 Liter 4 Liter 3 Liter 2 Liter 1 Liter 500 mL

Tin

16 Liter

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Drum

186 Kg

Levels Of Product:

• Core Level: To Cook Food

• Basic Level: Cholesterol Free
• Augmented Level: Super Refined

Segmentation for Soyabean Oil:

Market segmentation is one of the steps that goes into defining and targeting
specific markets. It is the process of dividing a market into a distinct group of buyers that
require different products or marketing mixes.

Opportunities in marketing increase when segmented groups of clients and customers with
varying needs and wants are recognized. Markets can be segmented or targeted using a
variety of factor. The bases for segmenting consumer markets include:

• Psychographic: Upper And Middle Class, Personality

• Behavioral: Occasions

The City group’s marketing department does not work only segmentation of Teer
Soyabean oil. It works with same kinds of product altogether. It does mass marketing
where differentiation is less than cost.

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Positioning for Soyabean oil:

• Maintain proper quantity.

• We import this oil in our own responsibility. So there is no chance of mixing
• Our price is also affordable than our competitors.
• We have own modern machines to refine the oil.

Targeting:

After segmentation marketer concentrate

Board ofon targeting. This is the second step of
Director
marketing strategy, where marketers select a specific segment.

Target customer: Chief Executive Officer

• Housewives Chief Director

• Cookers for hotel and restaurant

• Cookers of special program like marriage ceremony occasions
Managing
Director

Accounting Marketing Finance HRM

Department Department Department Department

Organization Hierarchy:

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Marketing Mix Strategy:

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Marketing mix strategy is the set of controllable, tactical marketing tools

through which the company influence the demand of their product and wants to get the
response from the target market. Square has five groups of variables which known as 5Ps
in their marketing mix strategy.

a.Product: Product is the goods and services that companies offers to the target
market. City Group used forward invention for Soyabean oil to meet the need for the
treatment of cardiovascular diseases.

b.Price: Price of each 1 Litter bottle is 110, 2 Litter bottle is 208, 5 Litter bottle is
504, 8 Litter bottle is 820 Taka.

c.Place (Distribution channel): City Group has decided to distribute Soyabean oil
through their existing distribution channel and for this their objective is to supply the right
product in right place in right time.

d.Promotion: City Group promoted all kinds of advertisements, which bring

about uplift into the brand scenario for the company. We promote various aspects of our
products starting from Paper to TV Commercials and various other forms of
advertisements to promote our products.

A product is launched into the market through effective advertisements and will also
bring about a satisfactory return.

Currently we are promoting Teer Soyabean, Teer Wheat (Atta), Teer Flour (Maida), Teer
Semolina (Suji) and Jibon Mineral Water. Interested models & producers are requested
to contact us through email with our following
address: advertisment@citygroupopbd.com

Distribution:

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“Good product marketing depends on a good and effective distribution network.”

We believe in these words and this is what inspires us to drive further and further
strengthen our network.

City Group has an extensive array of distribution network and with the help of this
network it has been able to extend its products into all the districts of Bangladesh. It
looks further into the prospects of extending its distribution network to all the “Thana”
level and welcomes all prospective Distributors / Dealers.

Each individual territory is taken care of well in advance by our territory managers and
our sales staffs are always there to assist our distributors with the demands.

Our products have been popular with the people of the country and with the
overwhelming demand; we are furnishing ourselves to meet the new consumer.

We hope to meet the consumers through our distributors and look forward with effective
planning and strategic campaigning to support our sales. Only the coming days will
predict our quality…

Recommendation:

• Need to give more advertisement in TV, Newspapers & FM Radios.

• Organizing shows & conferences
• Sponsoring sports & different shows
• Tele-marketing & Online-marketing

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Competitors Informaton

Web Employ Ann Reven Net Assets Liab Business Stoc

Address ees ual ue Income ilitie Value k
Sale s Valu
s e

My http://www. 300 1680 1680* 1680*30 10000 yes Teer –tread

Company: citygroup.co core 4.5% % core mark –
m.bd (7.5 “bishudhhot 50%
City Group / cores) ai shera
(Teer) products/pro momotai
_rso.htm Ghera”
Edible Ltd. http://www. 25000 8000 8000* 8000*20 2000 yes Rupchada
(Rupchada) beol-bd.com core 4.5% % core fish-
“Shasthokor 30%
Protiti
Phota”
T.K. Group http://www.t 4500 2000 2000* 2000*30 20000 yes Trade mark-
(Pusti) kgroup.bd.c core 4.5% % cores Pure and
om Healthy. 10%

Meghna http://www. 6000 3000 3000* 3000*30 40000 yes

Group meghnagrou core 4.5% % cores
(Fresh) p.biz 10%

SWOT Comparison Sheet

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Strength City Group Edible Ltd. T.K. Group Meghna Group

(Teer) (Rupchada) (Pusti) (Fresh)

What are your Machine, Powerful Pure+ healthy Pure + fresh

business Asset, Strong Advertisement, product Product.
advantages? Brand , use Omega-3 (especially for
Image, High heart)
Quality +
Quantity

What are your Price and Price and Price and Price and
core packaging packaging packaging packaging
competencies?

Where are you Teer oil Rupchada oil pusti oil Fresh cement
making the
most money?

What are you Marketing + Marketing Marketing Marketing

doing well? Merchandising

SWOT Comparison Sheet

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Weakness City Group Edible Ltd. T.K. Group Meghna Group

(Teer) (Rupchada) (Pusti) (Fresh)
What areas are you Our quality of Avoiding Avoiding Avoiding
avoiding? bottles is not customer cost advertisement customer
good enough. satisfaction
They can break
so easily. We
know it, but we
are avoiding it to
avoid higher
cost.

Where do you lack Not have highly Employees are Poor quality Low quality
resource? educated not available. supply. Lack of supply.
employee. Not have own Man power.
land or factory.

What are you Not producing Making higher Making poor poor quality
doing poorly? goods in spite of price. quality product product
demand.

Where are you Market size is In rental Rents on We are loosing

loosing money? small in payment as we equipments. money in Sylhet
Chittagong area. do not have own area.
So we are land and factory.
loosing money
in Chittagong.
What needs Have to increase Have to make Have to improve Can reduce their
improvements? more Factory own factory. marketing policy. price.
Delivery.

SWOT Comparison Sheet

Opportunities City Group Edible Ltd. T.K. Group Meghna Group

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(Teer) (Rupchada) (Pusti) (Fresh)

Any beneficial People want People are They are using Now people
trend? small size becoming also omega 3. like beautiful
container and we conscious about and strong
are going to Cholesterol. container.
offer 5litr and 20 They are using Fresh container
liter. omega 3.erol. is beautiful and
strong enough.
Niches that N/A Not applicable. Not applicable. Not applicable.
competitors are This product is This product is This product is This product is
missing? mass marketed. mass marketed. mass mass marketed.
marketed.
New New machine New machine New machine New machine
technologies? from foreign from foreign from foreign from foreign
country. New country. country. country.
materials and
Train employee
by technologies.

New need of Demanding want new get / want new get / want new get /
customers? more want more want more want more
comfortable facility facility facility
product at
chipper rate,
want more good
packaging

SWOT Comparison Sheet

Threats City Group Edible Ltd. T.K. Group Meghna Group

(Teer) (Rupchada) (Pusti) (Freash)
Obstacle to bad sea port High price Bad packaging Bad packaging
overcome? facility

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Aggressive Rupchada Teer Teer Teer

competitors?
Successful Rupchada Teer Teer Teer
competitors?
Negative economic If foreign Inflation, Inflation, Inflation,
condition? country sees that Recession. Recession Recession
we are not
aware of water,
air pollution
they will not
purchase our
products.
Government Vat on port. Vat on port. Vat on port. Vat on port.
regulation?
Changing business Creating Creating Creating Creating
climate? syndicate of syndicate of syndicate of syndicate of
owners. owners. owners. owners.
Vulnerabilities? We collect raw Low price of Depend on Depend on
material from other competitors foreign raw foreign raw
foreign can be material. material.
countries vulnerability to
(Malaysia, us.
Singapore etc) if
they stop
supplies, we
cannot produce.

SWOT Analysis – Functional approach

Competitive (sw) Analysis – Comparison sheet

City Group (Teer) Edible Ltd. Meghna Group (Fresh)

(Rupchada)
Strength Weakness Strength Weakness Strength Weakness
Products 4 1 4 1 2 3
Price 4 1 3 2 2 3

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Quality 5 0 5 0 3 2
Selection 5 0 4 1 3 2
Service 4 1 5 0 3 2
Reliability 5 0 5 0 4 1
Stability 5 0 3 2 4 1
Expertise 5 0 5 0 4 1
Company 5 0 5 0 4 1
reputation
Location 4 1 4 1 2 3
Appearance 5 0 4 1 3 2
Sales 5 0 5 0 4 1
method
Credit 4 1 3 2 3 2
policies
Advertising 3 2 5 0 4 1
Image 5 0 5 0 3 2
Total : 68 - 7 65 - 9 48 - 27

61 56 21

Environmental (OT) Analysis – Comparison Sheet

City Group (Teer) Edible Ltd. Meghna Group (Fresh)

(Rupchada)
Opportunity Threat Opportunity Threat Opportunity Threat
Technology 5 0 4 1 3 0
Economy 5 0 3 2 5 0
Political 5 0 5 0 5 0
Legal 5 0 5 0 5 0
Service 5 0 5 0 4 1
provider
International 0 5 0 5 0 5
Trade
People 5 0 4 1 5 0
Industry 5 0 2 3 5 0
Purchasing 5 0 0 5 5 0
Power
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Social 5 0 4 1 5 0
Religious 5 0 5 0 5 0
Channels 4 1 4 1 4 1
Actors
Credit 0 5 0 5 0 5
policies
Media Access 5 0 5 0 5 0
Infrastructure 5 0 5 0 5 0
Total : 64 - 11 51 - 24 61 - 12

53 27 49

Entry barriers and Exit barriers

Entry barriers:

• Capital – to enter in soyabean oil market owners need huge capital. For large
factory one should collect huge capital. . One also need large amount of money to
get soybean seeds as raw material.
• Vertical integration - A firm's coverage of more than one level of production,
while pursuing practices which favor its own operations at each level, is often cited
as an entry barrier
• Customer loyalty – If the customers of a particular soyabean oil company are
loyal, then it will be hard for new company for enter.
• Government regulations - It may make entry more difficult or impossible. In the
extreme case, a government may make competition illegal and establish a statutory
monopoly. Requirements for licenses and permits may raise the investment needed
to enter a market, creating an effective barrier to entry.
• Switching barriers - At times, it may be difficult or expensive for customers to
switch providers

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Exit barriers:

The factors that may form a barrier to exit include:

• Large stake: We have a big amount of stake holder, such as, creditors, consumers,
and share holder. So if we want to dissolve then it will create some problem for our
stake holders. So it is exit barriers.
• Legal restriction: Company has to face different types of restriction such as,
government restrictions.

By considering above situation, we can say that TEER SOYABEAN Oil is in high entry
barrier and low exit barrier segment. So we can say that, we get high stable return.

References:

CITY GROUP