Escolar Documentos
Profissional Documentos
Cultura Documentos
SUBMITTED TO:
SUBMITTED BY:
Noyon Mazumder
Roll: 16MM019
PGDMM, Evening Batch
Bangladesh Institute of Management
Letter of Transmittal
15 January, 2017
Supervisor Certificate
The report has been prepared under my guidance and is a record of the genuine work
carried out successfully.
Preface
This Term Paper is one of the most extensive reports. Most of the works that I have done
in response to the movement of the procedures and strategies the organization follows,
which clearly support the report.
In this internship work report my aim was to do the most completed and useable report. I
tried the best to accomplish my aim by adding relevant and adequate information to the
paper.
Hopefully, this Term Paper contents, will help the generation next and onwards.
Regards,
Noyon Mazumder
Roll: 16MM019
PGDMM, Evening Batch
Bangladesh Institute of Management
Acknowledgment
First of all I would like to convey my since gratitude to the almighty God for providing
us, the human being, the unique ability of knowledge and analytical understanding and
capacity to discover the knowledge throughout the life span.
I would like to take this opportunity to express my deep gratitude to the following people
who where always very cooperative and without their support this internship report
would not have been possible.
The Managing Director Anayet Rasid, General Manager Md. Abdul Hai Siddique and
Business Development Manager Md. Bakhtiar Kalam Mazumder of lalmai food products
ltd, who agreed to participate in the study, by giving both time and their energies.
To all whom in diverse ways made this study a reality, I want to say them thank you very
much and may god bless you abundantly.
Executive Summary
ARKU is a brand of LALMAI FOOD PRODUCTS LTD. This brand is specially targeted
to the educated, urban housewives. These housewives are targeted because they are the
main decision makers of purchasing of spice powder in the family. It is high standard
quality powder spice. Moreover, it is recommended by Bangladesh Standard and Testing
Institute (BSTI).This report will describe on the market share, target market of the
product, mission of the advertisement, advertisement objective, competition, life cycle of
the product, media used for the advertisement and message of the advertisement.
The use of spices in cooking foods is a primitive event. Spices not only bring aroma and
good taste to the cooked foods but also possess some food value. Bangladesh has a fertile
land and favorable climate for the cultivation of chili, turmeric, cumin and coriander.
The remarkable success of ARKU attracted many more competitors and over last couple
of years. The primary objective of this study is to analyze the marketing practices and
sales analysis of ARKU Basic Spice, marketed by Lalmai Food Products Ltd.
Arku Basic Spices mind share, heart share, and market share are in the highest position
in its industry. Arku Basic Spice has successfully made awareness build up. Almost
everyone mentioned the name of Arku Basic Spice when they are asked to name a brand
of this kind. Arku Basic Spice has just finished its introduction stage in the product life
cycle (PLC) and it is now at the beginning of the growth stage in PLC. As Arku Basic
Spice is leader in the market, it has a high growth rate and its relative market share is
high.
To prepare the report, primary and secondary data collected from different sources. The
primary data is fresh information collected for a specified study. The primary data
gathered by observational, experimentation and survey method. The secondary data refers
to data, which already exists. The secondary data collect from internal records, business
magazines, company websites and Newspapers.
Since there are few differentiating factors in the existing brands, Arku use combination of
rational & emotional strategy to communicate with the consumers. So far, we have taken
the position of quality product and communicated with the consumers in the same line.
Arku already won the credibility of high quality product from the consumers. Arku Basic
Spice still holding 50% market share in terms of volume sales and 46% market share in
terms of value sales with maximum market share.
Promotional objective of Arku Basic Spice is to Motivate consumers relay only on Arku
because Arku gives assurance of purity that delivers desired taste and color, create strong
emotional bonding with Arku Branded powder spice, and make it an obvious choice for
consumer because Arku ensure purity and deliver authentic taste. In addition, to obtain
this objective, 4% of total estimated sales are hold for promotional budget.
Table of Content
Chapter
Topic
Sub-Topic
Title page
1-2
3
4
5
6
7-8
11-
Letter of Transmittal
Supervisor Certificate
Preface
Acknowledgement
Executive Summary
Chapter-1
Orientation of
study
1.1
1.2
1.3
1.4
1.5
Chapter-2
Page
Organization part
2.1
Introduction
2.2
Company Profile
2.3
2.4
Company Vision
2.5
2.6
Export Market
2.7
Organizational Structure
2.8
Marketing Division
2.9
2.10
2.11
Products profile
2.12
17-26
18
18
19
19
19
20
21
22
22
23
24-25
26
Chapter-3
Finding and
Analysis
Market Share Analysis
3.1
3.2
3.3
Chapter-4
27-47
Sales Analysis
Concrete Findings
Marketing Strategy
MarketingStrategy
4.1
Product Strategy
4.2
Pricing strategy
4.3
Distribution Strategy
4.4
Promotional Strategy
Chapter-5
28
32
34-47
48-57
49-50
51
51
52
53-57
58-64
Problems
identified,
Recommendations
& Conclusion
Problems identified
Recommendations
Conclusion
Bibliography
Appendix
59
60
61
62
63
CHAPTER- ONE
Orientation of study
The following areas and issues are covered during preparation of the report.
Retailer:
Retailer is a person or business who sells products to the public.
Brand:
Brand refers to the identification of the product given by the manufacturer.
Brand Loyalty:
Brand loyalty refers to the continuous and repeated purchase of a particular brand without
any wavering purchase pattern.
Respondent:
Respondent is a person who is being interviewed for the purpose of conducting the study.
Market share:
The amount that a company sells of its products or services compared with other
companies selling the same things
Promotional Activities:
Promotional activities include advertising, personal selling, sales promotion, and
publicity, which have their own characteristics and cost but have common objectives of
achieving high sales by creating awareness.
Incentives:
Offer of an article at free of cost or less price of the market can be termed as incentives.
Interviewer:
A person who is answerable to the interviewer of the proposed questions.
Interviewee:
A person who carries on investigation for the purpose of achieving the objectives of the
project.
Sample:
The selection of set of people from the total population for the purchase of carrying on
the investigation.
Survey:
It refers to the questionnaire administered to the subject who is identified from the
population with the help of probability or non probability sampling.
1.4: Methodology:
Research Design:
Once the problem is identified, the next step is the research design. Research design is the
basic framework of rest of the study. A research design specifies the methods and
procedures for conducting particular study.
In this project we are following descriptive research design.
Source of Data:
There are two types of data:
1. Primary data
2. Secondary data
Primary Data: The primary data is fresh information collected for a specified study. The
primary data have gathered by observational, experimentation and survey method. Here
the entire scheme of plan started with the definition of various terms used, units to be
employed, and type of enquiry to be conducted, extent of accuracy aimed etc.
The methods commonly used for the collection of primary data are:
1. Direct personal investigation, where the data is collected by the investigator from the
sources concerned.
2. Indirect oral interviews, where the interview is conducted directly or indirectly
concerned with subject matter of the enquiry.
3. Information received through local agencies, which are appointed by the investigator.
4. Mailed questionnaire method, here the method consists in preparing a questionnaire (a
list of questions relating to the field of enquiry and providing space for the answers to be
filled by the respondents.), which is mailed to the respondents with a request for quick
response within the specified time.
Secondary Data:
The secondary data refers to data, which already exists. The secondary data collect from
internal records, business magazines, company websites and Newspapers
Research instruments:
For the collection of primary data a structured questionnaire was prepared covering
various aspects of the study. The questionnaire contains closed-ended and dichotomous
questions.
Sampling Procedure:
It is a procedure required from defining a population to the actual selection of the sample.
Introduction:
The precision and accuracy of the survey results are affected by the manner in which the
sample has been chosen.
Sample:
A part of a population, which is provided by some process on other, usually by
deliberated selection with the object of investigating the properties of the parent
population set. Non probability sampling method is in deterministic method where the
sample size in numerous and cant be determined. So for our convenience we take
convenience-sampling method where all the population in sample is given equal
opportunity.
Sampling Method: - Convenience sampling method.
Statistical Tools Used:
1. Population: Consumer in Dhaka and Gazipur metro city area.
2. Source of data: The two important sources of data are the primary data and secondary
data. The primary data is collected through survey method with the help of questionnaire
and personal interview. The secondary data is been collected from consumer attitude
books.
3. The information is collected through survey done in Dhaka and Gazipur metro city area.
4. Sample unit: The sample unit consists of Consumer in Dhaka and Gazipur metro city area.
CHAPTER- TWO
Organization part
2.1: Introduction
The company was founded in 2001 by Md. Aminur Rashid Yasin as a private firm.
We Introduce To You That we are Lalmai Group one of the oldest and prominent business
conglomerates in Bangladesh .We are manufacturer, distributor and marketer of industry
benchmark products like Arku Spice and snacks (export oriented products) .Our products
have been already export existing countries like Saudi Arab, Qatar, Dubai, Australia,
Cyprus, Bahrain, Nigeria Etc. We work as a one-stop solution for all the buying and
sourcing requirements of our valuable customers. We only deal with experienced and
reputed Bangladeshi suppliers for all our sourcing and manufacturing needs. All our
associate factories use modern equipments employ skilled manpower and maintain
universally accepted compliance/quality standards. Our products maintain BSTI
approved and follow all rules & regulation of all process. With our state-of-the-art set up
us sincerely complete each deal, starting from initial sampling to final shipment, within
schedule. Our skilled export department strictly maintains buyers specifications.
Company Name
2001
Year Established
Number of Employees
101-500 Employees
Main Market (s)
World Wide
Owner's Name
To enhance the strength and skill of the organization that will contribute to
company's increasing growth both in domestic and global markets
The raw materials are preserved in a well-organized storage facility with ensures proper
ventilation. LALMAI FOOD PRODUCTS LTD. is in the process of achieving ISO9001:2010 and HACCP certification to follow strict quality policies as per CODEX.
Distribution:
We are maintaining a strong distribution network in the country. At present a total no. of
200 (Two Hundred) highly experienced Distributors are engaged to market our products
throughout the country.
Chairman
Managing Director
General Manager
Head of
Accounts
Head of IT
Head of
Marketing and
Sales
Business
Development
Manager
Manufacturing
Export,
Product developments ,
Market development,
Order confirmation and placements , Production planning ,
Quality Assurance and Documentation & Follow until goods are delivered to the
customers warehouse.
Demographic
Geographic
Market Segmentation
Psychographic
Behavioral
Arku powdered Chili is vivid in color, precious in flavor. Best variety of red chili
provides more hotness.
S.L
1
2
3
4
5
6
Pack
Size
15gm
50gm
100gm
200gm
500gm
1000gm
Current
T.P.
8.18
18.80
35.88
62.4
152.1
273
Current
M.R.P
10.00
22.00
46.00
80.00
195.00
350.00
B. Turmeric:
Apart from having excellent antiseptic and antibacterial properties, it has a brilliant
golden yellow color.
S.L
1
2
3
4
5
Current
T.P.
8.25
18.50
32.50
58.25
140.4
Current
M.R.P
10.00
25.00
42.00
75.00
180.00
1000gm
259.6
C. Coriander:
Providing a fragrant flavor Arku Powdered Coriander is high in food value.
Price list of Arku cooriander Powder
S.L
Product Name
Current
Pack
Size
T.P.
1
Arku Coriander Powder
50gm
14.04
2
Arku Coriander Powder
100gm
23.4
3
Arku coriander Powder
200gm
43.68
D. Cumin:
Provide the fresh aroma.
Price list of arku Cumin Powder
Product Name
S.L
1
Pack
Size
50gm
Current
T.P.
35.00
E. Recipe Spice:
Price list of Arku Recipe Powder
S.L
1
2
3
4
5
6
Product Name
ARKU Shahi Chicken
ARKU Shahi Beef
ARKU Shahi Fish
ARKU Shahi Beef
ARKU Shahi Chicken
ARKU Shahi Fish
Pack Size
20 gm
25 gm
20 gm
100gm Box
100gm Box
100gm Box
Current
T.P.
11.7
14.04
7.8
46.8
42.9
35.1
Current
M.R.P
15
18
10
60
55
45
320.00
Current
M.R.P
18
30
56
Current
M.R.P
45.00
Lalmai food product Ltd has reputation in production of hygienic & superior
quality product.
Leadership and superior position in consumer mind.
Strong brand equity.
Weakness
Inconsistent price.
Opportunity
working women.
Consumers are getting more conscious about the wellbeing of the family health
issue.
Threat
CHAPTER- THREE
Finding and Analysis
2016
Total Sales (MT)
354.22
2 92.20
34.97
25.25
22.49
8.46
8.70
8.13
6.99
40.00
801.41
9,617
MS (%)
49.2%
11.5%
4.4%
3.2%
2.8%
1.1%
1.1%
1.0%
0.9%
5.0%
100.0%
Sales Growth
%
55%
42%
-4%
39%
74%
-5%
-14%
-2%
42%
0%
43%
MS Growth
%
6%
2%
-2%
0%
1%
-1%
-1%
0%
0%
-2%
0%
In the year 2016 total (Sales) volume of branded chili powder was 9617 MT, Where as
sales volume of Arku 292.20 MT. Total market share of Arku 11.5% with 2% growth over
2017. Nearest competitor PRAN has got only 4.4% market share.
2016
Total Sales (MT)
159,089,929
66,591,583
12,015,147
8,663,618
7,256,022
2,895,611
2,918,546
2,395,370
2,098,315
13,500,000
277,424,141
3,329,089,693
MS (%)
61.8%
19.6%
4.3%
3.1%
2.6%
1.0%
1.1%
0.9%
Sales Growth
MS Growth %
%
53%
5%
41%
3%
-4%
-2%
41%
0%
68%
0%
-4%
0%
-15%
-1%
-2%
0%
0.8%
4.9%
100.0%
42%
0%
41%
0%
-2%
0%
In the year 2014 total market size of branded chili was worth Tk. 3,329,089,693.00,
where total sales of Arku was Tk. 66,591,583.00. Total market share of Arku in terms of
value was 19.6%.The closest competitor Fresh had only 4.3% market share.
Aug-16
Total Sales (MT)
563.28
130.52
41.64
31.09
21.95
11.59
13.01
9.39
13.01
30.00
865.50
10,386
MS (%)
65.1%
15.1%
4.8%
3.6%
2.5%
1.3%
1.5%
1.1%
1.5%
3.5%
100.0%
Sales
Growth %
56%
71%
7%
71%
56%
-17%
19%
-4%
294%
0%
50%
MS Growth
%
2%
2%
-2%
0%
0%
-1%
0%
-1%
1%
-2%
0%
Total market size for branded Turmeric was 10,386 MT in the year 2017. Among this
only Arku sold total amount of 130.52 MT in 2014. Market share of Arku was 15.1%
whereas closest competitor Fresh had only 4.8% market share in terms of volume.
2016
Total Sales (M)
128,762,923
26,632,377
8,867,512
8,473,514
2,899,784
5,581,162
2,777,014
2,144,726
4,612,365
6,750,000
197,501,377
2,370,016,524
MS (%)
65.2%
13.5%
4.5%
4.3%
1.5%
2.8%
1.4%
1.1%
2.3%
3.4%
100.0%
Sales
Growth %
54%
68%
7%
61%
-18%
43%
18%
-4%
296%
0%
48%
MS Growth
%
2%
2%
-2%
0%
-1%
0%
0%
-1%
1%
-2%
0%
In the year 2014 total market size by value for branded Turmeric was Tk.
2,370,016,524 .00. Total sales volume if an Arku term of value was Tk.26, 632,377.00
with 13.5%. Market share growth was 2% with 68% sales increase over 2016. In 2016
Fresh had only 4.5% in terms of value.
2016
Total Sales (MT)
266.96
25.53
14.65
6.83
3.52
1.65
4.35
15.00
338.50
4,062
MS (%)
78.9%
7.5%
4.3%
2.0%
1.0%
0.5%
1.3%
4.4%
100.0%
Sales
Growth %
55%
43%
%
-14%
-26%
-5%
326%
0%
48%
MS Growth
%
3%
0%
1%
-1%
-1%
0%
1%
-2%
0%
In the year 2016 total market size of branded Coriander 4,062 MT in terms of sales
volume. Radhuni alone contributed total 3203.53 MT for branded Coriander. Arku
contributed total 306.36. In 2014 Arku had 7.5% market share with 0% growth in market
and 43% growth in sales over 2015. Near competitor Fresh & PRAN had 4.3% and 2%
market share respectively.
Aug-16
Total Sales (MT)
45,392,784
4,406,595
2,529,638
1,213,147
674,304
284,421
836,026
2,500,000
57,836,916
694,042,988
MS (%)
78.5%
7.6%
4.4%
2.1%
1.2%
0.5%
1.4%
4.3%
100.0%
Sales
Growth %
53%
38%
85%
-14%
-23%
-6%
322%
0%
46%
MS Growth
%
3%
2%
1%
-1%
-1%
0%
1%
Total market size of branded Coriander was Tk. 694,042,988.00 Contribution of Arku
was Tk. 4,406,595.00 in value. Arku had 7.6% market share with 2% growth over 2016.
In 2016 Fresh had only 4.4% in terms of value.
2016
Total Sales (MT)
77.69
32.52
3.65
1.69
0.48
3.10
119.13
1,430
MS (%)
70.4%
32.1%
3.1%
1.4%
0.4%
2.6%
100.0%
Sales
MS
Growth % Growth %
65%
4%
35%
2%
72%
0%
-45%
-3%
12%
0%
0%
-1%
57%
0%
In year 2014 total market size by sales volume of branded Cumin was 1,430 MT. Arku
had total market share of 32.52% by total sales of 390.24 MT in 2014. Market share
growth was 32.1% over 2013 for Arku. Market share of Fresh and BD was 3.1% and
1.4% respectively.
2016
Total Sales (MT)
96,465,705
2,360,653
3,584,678
1,812,620
462,314
2,750,000
107,435,971
1,289,231,651
MS (%)
69.8%
22.2%
3.3%
1.7%
0.4%
2.6%
100.0%
Sales
Growth %
64%
41%
74%
-45%
12%
0%
56%
MS Growth
%
5%
3%
0%
-3%
0%
-1%
0%
Total market size of branded Cumin was Tk. 1,289,231,651.00 Contribution of Arku
was Tk. 28,327,836.00 in value. Arku had 22.2% market share with 3% growth over
2016. In 2016 Fresh had only 3.3% in terms of value.
Turmeric:
Coriander:
Cumin:
Valid
Frequency
Percent
Male
156
Female
44
Total
Valid Percent
Cumulative Percent
78
78
78
22
22
100
200
100
Table 1: Gender of the respondents
100
From the table we find that among 200 respondents, 78% of were male and the rest 22%
were female. If we graphically represent the information we for the following chart.
As we have surveyed 200 people for our research findings. We divide the age limit of our
respondents into four groups. In this regard age is important because whenever it is the
matter of judgment ethics, age is important factor. So it is important for us to conduct the
survey in certain age limit. The following table shows the frequency of our survey
findings regarding age of the respondents.
Valid
20-29
30-39
40-49
Above 50
Total
Frequency
Percent
Valid Percent
30
15
15
110
55
55
40
20
20
20
10
10
200
100
100
Table 2: Age of the respondents
Cumulative Percent
15
70
90
100
15% respondents belong to age group 20 to 29; 55% respondents belong to age
group 30 to 39; 20% respondents belong to age group 40 to 49; rest 10%
respondents are above 50 age. If we graphically represent the above table it will
looks like the following chart.
Frequency
Valid
House Wife
Business
Others
Total
Percent
The following chart shows the graphical picture of the above table. We see that 52%
respondents were various services, 20% respondents from business sector. Rest 28%
respondents came from others sector.
Income level of the respondents is important to purchase the banded spice. As our target
customer is high profile people so income level is an important factor. We get the
following result from our 200 randomly selected respondents.
Valid
10000 - 19000
20000 - 29000
30000 - 39000
Above 40000
Total
Frequency
Percent
Valid Percent
20
10
10
44
22
22
96
48
48
40
20
20
200
100
100
Table 4: Income level of the respondents
Cumulative Percent
10
32
80
100
We see that out of 200 respondents, 48% respondents belongs to monthly income level of
Tk. 30000- Tk. 39000, 22%respondents belongs to Tk. 20000- Tk. 29000. Almost 20%
respondents belong to above Tk. 40000 income level per month. So we see that, our
target customer is mostly high income group who can easily effort branded spice. As
branded spice is comparatively costly than the open spices. The below graph will make
the result more clear.
To make the report fruitful l and effective we needed to know what type of spices is
used by our target customer. Because customer mainly used branded spices or open
spices. Some people still tend to use spices managed by their own. Among the 200
respondent, our observation is as follows.
Valid
Branded Spice
Open Spice
Other
Total
Frequency
Percent
Valid Percent
130
65
65
44
22
22
26
13
13
200
100
100
Table 5: Type of spice consumed
Cumulative Percent
65
87
100
We found that, maximum 65% respondent use branded spice and 22% respondent use
open spices. 13% people still manage spices by their own. They basically collect the raw
spices and make the powder through local mill. They believe only in this process the can
get the original taste, flavor of spices. Graphical representation of the data is as follows.
We needed to identify which brand our respondent mostly consumed. We asked this
question to identify the market share of our Arku brand. In our question we named four
top brand and other options indicates brands such as Tiger, ACI, Fresh etc.
Valid
Frequency
Percent
Valid Percent
Radhuni
132
66
66
PRAN
38
19
19
BD
14
7
7
Arku
6
3
3
Others
10
5
5
Total
200
100
100
Table 6: Preferred brand of the respondents
Cumulative Percent
66
85
92
95
100
We found that 132 respondents out of 200 are use Arku branded spice.38 respondents is
use PRAN spice. 18 respondents say that they use BD, 6 respondents say use Radhuni, 10
respondents use others spice.
We needed to know how important the brand name is. What they feel regarding the brand
name agnist the question we get the following result from our 200 respondent.
Frequency
Valid
Percent
Strongly Agree
28
14
14
Agree
104
52
52
Neutral
14
7
7
Disagree
38
19
19
Strongly
Disagree
16
8
8
Total
200
100
100
Table 7: Brand name is important for respondents
14
66
73
92
100
We found that 52% respondent think that brand name is important to them. 19%
respondent thinks that brand name is not important for them, 14% respondent is strongly
agreed about brand name. 8% respondent is strongly disagree that brand name is not
important at all.
Customers want the product available within their reach availability of the Product is
important to them. We asked this question to our respondent and get the following
response.
Frequency
Valid
Percent
Valid
Percent
Strongly
Agree
156
78
78
Agree
44
22
22
Total
200
100
100
Table 8: Product availability is important for respondents
Cumulative
Percent
78
100
78% respondent thinks that the products should be available within their reach. The need
the demanded products right after they feel the need of the products where ever the stay.
Whereas only 22% respondent thinks they would give extra effort to get their desire
product if that is not that available surround them. Because they will not accept any
alternatives of that products.
We needed to identify the consumer perception of the branded spice quality. Usually
people demand the quality products for their daily consumption. Response from our
200 respondent is as follows.
Frequency
Valid
Percent
Valid
Percent
Strongly
Agree
178
89
89
Agree
18
9
9
Disagree
4
2
2
Total
200
100
100
Table 9: Emphasize on quality of branded spice
Cumulative Percent
89
98
100
Among the respondent, 89% is not agreed to compromise with the quality of the branded
spice. They need the quality products at any cost. They strongly agreed that quality issue
is most important factor where 9% only agreed with them. Rest 2% disagrees with this
opinion. They think branded spice usually quality products. So they really dont think
about quality issue regarding branded spice.
What is the perception regarding the price of branded spice what they think about cost of
branded spice. Does the price is higher compare to quality. We asked the question and get
the following response.
Frequency
Valid
Percent
Valid
Percent
Strongly
Agree
120
60
60
Agree
40
20
20
Disagree
40
20
20
Total
200
100
100
Table 10: Branded spice is costly compare than the quality
Cumulative
Percent
60
80
100
We found that 60% respondent strongly agreed that price of branded spice is higher is
compare to its quality. 20% respondents simply agree with this. Rest 20% disagreed with
this statement.
Does branded spice hassle free to use and time saving? We ask this question to our
respondent and get the following response from the respondent.
Frequency
Valid
Percent
Valid
Percent
Strongly
Agree
156
78
78
Agree
30
15
15
Neutral
6
3
3
Disagree
8
4
4
Total
200
100
100
Table 11: Branded spice is hassle free & time saving
Cumulative
Percent
78
93
96
100
78% respondent strongly agreed that using braded spice is time saving and hassle free.
Branded spice is easy to use. 15 % respondent agreed that branded spice is time saving.
Only 4% disagreed with this.
How much the hygiene factor is important to the consumer? What the consumer really
think regarding the hygiene on branded spice. We needed to know the perception
regarding the hygiene factor of branded spice.
Frequency
Valid
Percent
Valid
Percent
Strongly
Agree
176
88
88
Agree
24
12
12
Total
200
100
100
Table 12: Hygiene factor is important for respondents
Cumulative
Percent
88
100
88% strongly agreed that hygiene is very much important to them. They prioritize the
health issue on consumer products. And they are not agreed to compromise with hygiene
issue.
All brands usually claims that smell and taste remain same in branded packed spice.
But what the customers opinion regarding this issue? Does smell and taste really
remain ok in branded spice? We get the following response from the respondent.
Frequency
Valid
Percent
Valid
Percent
Strongly
Agree
24
12
12
Agree
126
63
63
Disagree
36
18
18
Strongly
Disagree
14
7
7
Total
200
100
100
Table 13: Smell & test remain ok in branded spice
Cumulative
Percent
12
75
93
100
12% respondent strongly agrees that test and smell agreed remain same in branded spice.
While 63% respondent agreed with this. 18% respondents do not think that, taste and
smell remain same in branded spice. They think some sort of chemical is mixed with the
packed spice which decreases the quality, taste and original smell.
CHAPTER-FOUR
Marketing Strategy
Marketing Strategy
Positioning Statement: Assurance of purity
Demographic :
I.
II.
III.
Age: 20-50+
Gender: Both
Education: Secondary education and above
Easy & fast cooking ensuring delicious aroma & flavor while cooking & eating.
Want to save time in cooking to give more time for kids, family & entertainment.
Want to cook with powder spice and expect traditional authentic taste and color.
More concern about the bout the food quality and well-being of the family
members and intend to take quality product.
Selected from best verities of quality raw materials from grower level
Ensures delicious aroma & flavor while cooking & eating of different curries.
Product Strengths:
4.1Product Strategy:
Arku Powdered Spice ensures purity. In the year 2016 we want to maintain this
consistency of quality and deliver best quality spice to the consumer to satisfy their need
and want. Besides basic spice is a product that have hardly any scope to add extra value
to the product. Therefore we will add value through packaging by launching a different
SKU in convenient Jar. Also we will add new variant of basic spice in the basic spice
product range and that is ''Recipe spice''.
4.2Pricing strategy:
In the year 2017 our objective is to maintain competitive and stable price. We will not
give competitors any scope to gain big price advantage. We will also maintain the price at
an acceptable range compare to open spice. Because consumers very easily compare the
price with the open spice and tend to switch from branded spice to open spice. We will
maintain the competitive price by taking following steps.
Effective inventory management: To achieve our objective we will manage our
inventory effectively. We will collect maximum RM during the harvesting season
when the prices are low. So when the prices of RM high we can use up our low
priced RM to gain advantage over competitors. Besides we will constantly
monitor the market scenario of RM throughout the year and maintain inventory of
RM as accordingly.
4.3Distribution Strategy:
We will follow the existing distribution strategy and network. Currently we are using
separate distribution channels for Consumer, different institution, and bulk buyers like
super shop, hospital, canteen etc.
To reach the above organization we have the following distribution systemOrganization
Sales Team of
LFPL
To reach all over the country we have the following distribution systemStart of activity
End of
activity
Company
(LFPL)
Distributor
Retailer
Consumer
To meet the objective of 2017 we need to take following steps regarding the distribution
strategy.
Explore the new organization for sale including outside Dhaka like number of
large hotel In Gazipur, Sylhet, Cox's Bazaar and other Divisional cities.
4.4Promotional Strategy
Since there are few differentiating factors in the existing brands, we have to use
combination of rational & emotional strategy to communicate with the consumers. So far,
we have taken the position of quality product and communicated with the consumers in
the same line. Arku already won the credibility of high quality product from the
consumers. Up to 2017, we have communicated the authentic taste of Arku powdered
spice and its pure quality. In 2015 on our communication campaign we focused on
creating awareness among consumers about not to compromise with the quality of daily
food of the family as there is family health issue is concern. In 2009 it have re-enforced
& further strengthen our on going quality issue in spice consumption by launching
endorsement campaign in all media including ATL and BTL. For 2014 to 2016 it
concentrated our promotional campaign on the uncompromising stand regarding finding
the best quality food ingredients for family. In the year 2016 will concentrate on Arku
gives assurance of purity that delivers desired taste and color.
Promotional objective:
Motivate consumers relay only on Arku because Radhuni gives assurance of
purity that delivers desired taste and color.
Motivate target consumers for choosing the pure & quality spice for cooking
through rational and emotional appeal.
Create aspiration for using Arku Branded Spice in food preparation and attract
new consumer.
Create strong emotional bonding with Arku Branded powder spice and make it an
obvious choice for consumer because Arku ensure purity and deliver authentic
taste.
Percentage against
amount (Tk.)
target of 2016
5,00,00,000.00
70%
About 40% of the total promotional budget will be spent in electronic media to
get maximum reach. Insertion frequency will be high during launching new
campaign and festival.
Five new TVC will be made on powdered spice in the year 2016. Two TVC will
be on Turmeric and Chilli each and two on whole range. One TVC on Recipe
spice.
8% of the total budget will be spent on print media to support launch of new
campaign.
300 new shop signs and new bazaar branding at Gazipur and Sylhet will be done
in 2016.
Shera Arku competition and celebration of Naridibosh event will be held in 2016
which will promote the brand among TG.
Consumer Promotion (CP) offer will be given to give consumer extra value for
their expenditure. 10% of the total promotional budget will be spent to run CP
program.
Name
Arku
Media
Electronic
Print
Outdoor
POS
Event
Consumer Offer
Film
Retainership
Monthly Total
Sub-total
27,00,000
6,00,000
12,00,000
200,000
700,000
10,00,000
4,90,000
1,63,200
% of
% of
Sales Target
sales
2,233,832,613
3.94
Media Exp.
40.23
8.12
17.86
1.48
11.93
12.30
6.03
2.05
70,53,200
698,550
77,51,750
Action Plan
Electronic Media
SCPL will prepare two new TVC for Turmeric and Chilli separately and promote these
two products as category leader. In between it will make one TVC on the Recipe Spice
range to promote the whole range. These TVC will communicate the massage that Arku
ensures purity which will deliver you desired taste and color from generation to
generation. Another new TVC will be made during August and will go on air from
September 2017. This new TVC will be on the hardship and dedication from Square
member to deliver the finest quality spice to the consumers. One TVC will be made for
promoting CP program.
POS/POP
Merchandising is silent sales man- therefore SCPL want to emphasize on proper
merchandising of our products at outlets. Besides POS, material will be developed in
support of new TVC campaigns and CP program.
Out Door
In 2017, we will install 500 new shop boards. Besides we will also go for bazaar branding
in Gazipur and Sylhet. Few new billboards will be taken in 2017 at Gazipur city; we will
also renew the existing billboards, Passenger sheds, Light boxes, Gondolas, Transit ad
and Shop Signs.
Shera arku:
To promote traditional cooking of Bangladesh we have been arranging best cook
competition Shera Arku all over Bangladesh. We will start Shera Arku this year
and finish it within June.
CP program
Consumer Promotion (CP) program will run for two months from July13 to August14.
This period is chosen targeting the Ramadan period. The objective is to give consumer
extra benefit during Ramadan when maximum consumption of powdered spice is
occurred.
Besides this Consumer Promotion (CP) will conducts at different Superstore in Dhaka
City to fulfill the same purpose.
CHAPTER-FIVE
Problems identified, Recommendations
&
Conclusion
Problems identified
1.
emphasize
more
on
competitive
and
cost
based
pricing.
Recommendations
There are good numbers of brands coming with the same proposition of good quality, so
LFPL is heading towards an immense competition in near future. In the backdrop of the
above findings the following recommendations can be made:
LFPL should consider value based pricing instead of competitive and cost based
pricing.
To increase the efficiency of the dealers, LFPL can offer special trade promotions
such as incentive, bonus, foreign tours etc, for the best performers.
The promotional effort of LFPL is satisfactory and it should be continued. At the
same time, they can adopt creative advertising to differentiate their products from
others.
To hold and create new customers of Arku Basic Spice, LFPL should consider the
following:
LFPL need to increase their promotional expenses and it should execute the action
plan properly.
LFPL need to increase the media presence to create new customer base and
remain in customer mind.
LFPL is holding the maximum market share with Arku Basic Spice. It maintains its
leadership through well-planned action program, motivated and trained personnel and by
projecting a favorable company image among the customers. Under intensifying
competition in the market and changing attitudes towards the branded spice powder,
LFPL should consider the above recommendations.
Conclusion
In 2002, Lalmai Food Products Limited introduced Arku Basic Spice with a vision to
provide quality ready-to-cook food ingredients for the housewives. Within a very short
span of time, Arku Basic Spice drew attention of modern housewives those who had a
latent demand for convenience and time-saving cooking. Dedication to quality has given
Arku Basic Spice unique position in the market.
Arku Basic Spice considered as the pioneer in Branded spices. By ensuring taste, quality,
attractive packaging & good coverage throughout the country, Arku has been getting a
remarkable response from market. A year after its operation Arku Spice achieved the
crown of the leader. Products ranging from Basic spices, mixed spices, Cereal & Pulses
to Edible oil are currently available under the name of.
Arku Basic Spice has been dominating branded spice market since 2003. Currently in
branded powdered spice category, Arku is the second brand leader. Arku achieved the
crown of brand leader by offering superior quality of powdered spice and authentic taste.
So it can be said that Arku has created the branded powder spice market. As consumers
are shifting towards branded powdered spice, the market size of branded powder spice is
increasing very fast.
Bibliography
Appendix
Strongly
Important factor that affect consumers
Strongly
Agree
Agree
Neutral
Disagree
Disagree
(1)
(2)
(3)
(4)
(5)