INDUSTRIAL TOUR REPORT ON MARKETING PRACTICE OF ABUL KHAIR CONSUMER PRODUCTS LTD.
DEPARTMENT OF MARKETING UNIVERSITY OF CHITTAGONG
INDUSTRIAL TOUR REPORT ON MARKETING PRACTICE OF ABUL KHAIR CONSMUMER PRODUCTS LTD. (SNACKS)
PREPARED FOR: MR. SAYED AHSANUL ALAM ASSOCIATE PROFESSOR DEPARTMENT MARKETING UNIVERSITY OF CHITTAGONG.
PREPARED BY: SL NO. 1 2
NAME MD. NASIR UDDIN A.Z.M. ALIMOL RAZI
EXAM ROLL 97/229 98/83
DEPARTMENT MARKETING UNIVERSITY OF CHITTAGONG.
CLASS ROLL 4515 4494
INDUSTRIAL TOUR REPORT ON MARKETING PRACTICE OF ABUL KHAIR CONSMUMER PRODUCTS LTD. (SNACKS)
PREPARED FOR: MR. SAYED AHSANUL ALAM ASSOCIATE PROFESSOR DEPARTMENT MARKETING UNIVERSITY OF CHITTAGONG.
PREPARED BY: SL NO. 1 2
NAME MD. NASIR UDDIN A.Z.M. ALIMOL RAZI
EXAM ROLL 97/229 98/83
DEPARTMENT MARKETING UNIVERSITY OF CHITTAGONG.
CLASS ROLL 4515 4494
LIST OF CONTENTS
Page No. CHAPTER ONE Introduction Rational of the study
Objective of the study
Research methodology
Limitation of the study
Background of consumer products (Snacks) Chapter Two
Company Profile b eing Abul Khair Consumers Ltd. come into being
Location
Total area of the factory
Country of origin of machinery
Manpower
Environment concern
Risk management
Organizational structure
Infrastructural facilities
Production process CHAPTER THREE
Product Strategy Meaning of product
Types of product
Consumer of the products
Types of raw materials
Sources of raw materials
Packaging
Size of packet
Weight of packet
Quality maintaining
Branding
Positioning
Positional AKC Ltd.
Resume and development department CHAPTER FOUR Pricing Strategy
Introduction
Factors affecting pricing
Pricing approaches
Pricing strategy
Pricing objective
Price adjustment strategy
Positional AKC Ltd.
Resume and development department CHAPTER FIVE Distribution Strategy
Introduction
Types of channel
Channel flow
Factors to be considered in selecting channel
Channel objective
Channel function
Channel management decisions
Warehouse facility
Trans partition of goods CHAPTER SIX Promotion Strategy
Introduction
Promotional objective
Promotional Tools
Promotional Budget CHAPTER SEVEN
Prospects, Problems and Recommendations Prospects
Problems
Recommendations
Conclusion. CHAPTER EIGHT
Reference
Direct Interviews
Questionnaire.
Letter of Transmittal Dated: April, 2005
To
Lecturer Department of Marketing, University of Chittagong. Chittagong. Dear Sir, It is pleasure on our part to submit our industrial tour report on “Marketing Practice of Abul Khair Consumer Products Ltd.” as a part of our BBA final examination. Though it is a new experience, we have tried our level best to gather information through direct visit and interviewing relevant authorities and to translate our knowledge into writing this report. Without sincere cooperation and proper guidance of you it was not possible for us to prepare this report. For this act of kindness we are greateful to you. Our all effort will be remanded only it could satiety you. We sincerely hope this report will receive your approval. Thanking you, Sincerely yours. Md. Nasir Uddin Exam.Roll-97/229 A.Z.M. Alimol Razi Exam.Roll-98/83 Department of Marketing, University of Chittagong, Chittagong.
Preface:
Trade and commerce is pivotal point recently incorporated globalization and liberalization trend. To cope with this increased diversification of world economy practical knowledge is since-qua-non for a business learner. With this moto in view the incorporation of industrial tour as a part of our BBA course has been definitely providing us an extensive clear idea of a particular field embracing industrial sector. The main purpose of this industrial tour is to gather practical knowledge on the systems, procedurey and techniques used in performing jobs related to different factors of marketing. The capital under which the tour was made is “Marketing practice of Abul Khair Consumer Products Ltd.” During this visit we have tried our best to get knowledge about the production process and marketing mix functions. We hope this type of study will contribute to the development of marketing practices in the market and ensuring quality learning of marketing.
Acknowledgement:
It is almighty Allah who has enabled us to successfully complete the tour and make a report. Secondly, we would especially like to express our gratitude to lecturer,
Department of Marketing, University of
Chittagong, who has given us adequate time, valuable suggestions and guidance for completing the tour and making the report. It is to be confessed that without her active and cordial co-operation, the preparation of this report could not have been possible.
Then we would like to extend thanks to lecturer Md. Nasiruddin, Department of Marketing, University of Chittagong. Shafiul Alam, Sr. Management traince of Abul Khair group, Imting Alam, Accounts Manager of Abul Khair Consumer Products Ltd. for their valuable assistance cooperations.
We are very much indebted to Mr. Belal Ahmed Production manager of Abul Khair Consumer Products Ltd.
Executive Summary:
This report is the out come of an industrial tour to Abul Khair Consumer Products Ltd. In prior consumer products specially snacks mere mostly importad but in the last decade Bangladesh experienced a mentionable development in consumer product (specially in snacks) industry. Now a good number of industries are producing many items of snacks with domestic raumaterials thong import of snacks is still continuing simultaneously. Abul Khair group took an endevoure to establish a consumer product (snacks) factory in 2003. it is situated at 277 Baized Bostami Road, Nasirabad Industrial Area, Chittagong. It launched it product in to the market first in July 2004 on trial basis and started mass production in August 2004. It now produces and marketwise different agro based products like Ch Canacurr, Dalvaga. Badam vaga etc. It’s estimated area is 3.5 acre (approximately). It is suited in a good location where all public utilities and communication and transportation facilities are available. As a concern sister of Abul Khair Group it enjoys a healthy financial condition. Sicne Abul Khair Group is a big group in Bangladesh market so it enjoys huge popularity and get advantages of brand loyalty. More over it applys almost all marketing practices to be as market leader as they are in some other product lines. Besides above mentioned things it has some limitations as infant in this industry. But it is intenssing vigorous growth rate through the alloption and practicing of different marketing strategies and techniques.
Contents = = = = RATIONAL OF THE STUDY
In the present era of globalization and liberalization trade and business is a most important role player. With the development of trade and commerce throughout the domestic and international market different threats and opportunities are prevailing side by side. Like other industries consumer products (snacks) industry is also witnessing tremendous development and competition. To ensure the best use of these market opportunities and meet the market challenges business enterprises need educated and export business people. Keeping it in view universities have introduced BBA course comprising industrial tour besides of theoretical knowledge. The main purpose of this study is to grasp detail knowledge about marketing practices in consumer products market. Through this study we have tried to took at the real practices of marketing, tutere prospects of marketing and problems and solutions related to the consumer products market. We hope this study will help institutional learness and businessman to make best use of marketing practices. So for the development of total marketing practices the study is very needed and trustful. These are all the rational of the study.
OBJECTIVE OF THE STUDY
The main objective of the study is to get a field based idea and evaluate the marketing practices of Abul Khair Consumer Products (Snacks) Ltd. In the Bangladesh market. Some other auxiliary objectives have been precisely given below: 1. To gather knowledge about marketing practices of Abul Khair Consumer Products Ltd. 2. To see the production procedure of Abul Khair Consumer Products Ltd. 3. To know the products strategy adopted by Abul Khair Consumer Products Ltd. 4. To know the pricing policies of the enterprise. 5. To know the distribution policies of the industry 6. To look into the promotion policies of the Abul Khair Consumer Products Ltd. 7. To find out problems, problems.
RESEARCH METHODOLOGY In order to complete this report we proceeded through a work plan. We physically visited factory plant and interviewed and discussed with executive of different level. The details of the norle plan are furnished below:
Data collection method:
Relevant data for this report have been collected primarily through direct visit and interviewing different concerned personnel. These interview
were administered by formal and informal discussion. A structured questionnaire has been used for interviewing concerned executives.
Data Sources:
The information and data for this report have been collected from both the primary and secondary sources.
Data processing:
Data collected from secondary sources have been processed manually and qualitative approach has been used through out the study.
LIMITATION OF THE STUDY
We have tried our level best to collect all availavail informtions through direct visit to the Abul Khair Consumer Products (Snacks) Industry and interviewing the persons responsible for production and marketing. Despite that this report is not tree from all limitations. While me were preparing this report we faced some problems. Which are given below:
1. Authorities are not willing to disclose
some confidential
information. 2. Time for the visit is not sufficient. 3. Industry concerned people are too much bury. So they could not give time as needed. 4. This industry is very young so they could not provide all necessary information. 5. Lastly, our personal limitations as very first in this type of study and report making.
BACKGROUND OF CONSUMER PRODUCTS (SNACKS)
Prior to 1990s small enterprise or households were engaged in production of such products. They produced the products such as Badam vaga, Chanachur, Dalvaza etc at their home manually and soled to the local markets. But in1991 Pran group, the first and largest agro-based industry, started to produce these products using modern machinery and marketise following modern marketing strategies and policies through out the country. Their success allured others to come up with the business and maked interested many large companies to come 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 cutthroat competition. A huge amount of capital has been invested in this industry by this time. So if production of farming can be increased and congenial business environment industry.
prevails in the country, there is huge prospects of this
Chapter – two Abul Khair Consumer Products (snacks) come into being
Abul Khair Consumer Products Ltd. is a sisters concern of Abul Khair Group. It started it’s journey in the first part of June in 2004. It lunched some products like shah Dal vaga, Shah chanachur, 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. is located at 277, Baized
Bostami Raod, Nasirabad Industrial Area, Chittagong Considering all things it is one of the best industrial areas of the country.
TOTAL AREA OF THE FACTORY
Abul Khair Consumer Products (snacks) Ltd. owns and operates its factory in a plot of land measuring 3 acres (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. Their workers and staffs and workers work in 3 shits by rotation. They do not have any expatriate executive or staff.
Environment concern
They have no recycling process or wastage management process. But they are seriously concern about the health of the employee. They try to keep hygienic working environment and ensure medical check up before and post appointment of employee. Moreover they try to produce hygienic products.
Risk Management
Abul Khair Consumer (Snacks) Ltd. purchases insurance policy against all types of probable risks.
They seek advices from different
experts to minimize unexpected losses. Moreover they ensure easy access to fires services and law enforcing agencies to keep the probable losses lower securing easy entrance. Organizational Structure Factory Manager
Production Manager
Production Supervisor
Workers
Production Supervisor
Workers
Infrastructural facilities
General Manager
Accounts Executive
Personnel Executive
Abul Khair Consumer Products (snacks) Ltd. being set up in an ideal industrial area in commercial capital city of Bangladesh enjoys all infrastructural 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 national gas supply network.
Electricity
The factory is connected with high power electricity line and gets mostly uninterrupted electricity. The factory owns a 50 kw stand by diesel 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 inter district road has passed way in front 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.
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, nuts are washed and cleaned up.
Mix up stage:
In the second stage different types of spices and colors are mixed with cleaned pulses and nuts. In case of fried gram salted and spiced pulses are powdered and mixed with different types of species and colors. Frying stage:
Here colored and spiced pulses nuts are fried in automatic machine.
Packaging stage:
In this stage fried snacks are packed up in different sizes of packet and of different weight with the help of automatic machine.
CHAPTER THREE
PRODUCT STRATEGY Meaning of product
A product is any thing that is offered to a market for attention, acquisition, use or consumption that can satisfy a want or need. Snacks are basically impulse goods people do not think before buying, just after seeing they by this type of products.
Types of product
Products can be divided into two broads groups based on the types of consumers which are1. Consumer product 2. Industrial product Snacks are consumer products because these are directly bought and consumed by the customers. Consumers of the products
From children to youth all aged people buy and consume these products. There is no special class of consumers rather 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.
Flowers
iii.
Different colors
iv.
Different spices
v.
Smell.
Sources of raw materials
Raw materials are basically collected from domestic and international market. Abul Khair consumers Ltd. Mainly import from
Australia
Canada
India
European countries (Color and smell).
PACKAGING STRATEGY 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 Pole thin (HDP) for maintaining quality.
Size of packet
THESE PRODUCTS ARE PACKED IN DIFFERENT SIZES OF PACKET WEIGHT OF PACKET 400 GM
Master bag packet (40 Pieces) 16 KG
200 GM
16 KG
100 GM
10 KG
50 GM
10 KG
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 production 3. Hygienic production environment 4. Healthy workers. 5. Packaging (High Density Pole then)
Branding
Perhaps the most distinctive skill of professional marketers is 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 company’s 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 these things it has been able to create a position in the market by they time.
Position of Abul Khair Consumers (Snacks) Ltd.
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 leader in the coming future.
Research and Development
Abul Khair Consumers (Snacks) Ltd. has a separate department with responsible people for continuing, research and development work. They are continuously collecting market information and examining the competitors’ condition. They try to know whether the consumers are satisfied on not.
CHAPTER FOUR PRICING STRATEGY Introduction
The amount of money charged for a product or service 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. The company boss often sets prices.
Factors effecting pricing decision
A company’s pricing decisions are affected by both internal and external factors, which are given below: i ii iii
Internal factors Marketing objective Marketing mix strategy Costs
iv
Others
External factors Nature of market and demand Competition Other environmental factors (economy, government)
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 long time so pricing is too much sensitive. But AKC does not compromise quality for keeping price low . AKC thinks if necessary price will be higher but quality can not be compromised AKC also considers the internal factors like company’s profit, different costs which are completely controllable by the top management.
Pricing approaches
AKC mainly follows competition based pricing though a new company has few options to follow another pricing method except cost based pricing 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 y t i l a u Q t c u d o r P
High Medium
Low
High 1. Premium
Price Medium 2. High value
Low 3. Super value
strategy 4. Over
strategy 5. Medium
strategy 6. Good value
charging
value strategy
strategy
strategy 7. Rip-off
8. False
9. Economy
strategy
economy
strategy
strategy AKC adopts High value strategy because it does not compromise quality but charge medium price.
Pricing objectives Pricing decisions are often affected by some objective set up earlier by
the top management. A company can pursue 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.
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 prices its products to different customers in different 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 so on.
IV. Promotional pricing
Company can & use several pricing techniques such as loss-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.
At present AKC does not exercise any of the price adjustment strategies mentioned above. It’s pricing strategy is same for all sorts of customers and for all areas of the country but AKC is thinking following geographical pricing technique for exporting to middleast market.
CHAPTER FIVE DESTRIBUTION STRATEGY In today’s economy many producers do not sell their goods directly to the final users. Between them stands 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
Diagram of channel of distribution is as under:
Manufacturer
Dealer
Customer
Whole seller
Retailer
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.
Since AKC uses one level distribution channel and it wants to make its products available everywhere and sales in small lot and in cash so it does not consider the things seriously.
Channel objective
The main channel objective of Abul kahir Consumers Ltd is to make the products available everywhere 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 sometimes 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’s 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 functions. So channel management decision is very important. Channel management decisions include three things:
1. Selecting channel members 2. Motivating channel members 3. Evaluating channel members. Top management takes the channel management decision. AKC sells its products to the retailers directly. This company maintains close relation with the retailers through continuous communication. Since the retailer is the only member so there is no channel conflict. A satisfactory relation existing between AKA and retailers.
Ware house facilities:
The main wave house of AKA is situated in the factory premises but to cater the market demand quickly it maintains a number of small warehouses in different areas of the country.
Transportation of goods
Abul Khair Consumer Ltd. Carrys it’s goods to the retailers with their own covered van. That means it is the company who performs the transportation activities to create place utility to the customers.
Chapter Six Promotion Strategy
Introduction :
Modern marketing calls for more than developing a good product, pricing it attractively and marketing it to the accessible target customers. Companies communicate with their present and potential customers. Promotional strategy combines advertising, personal selling, sales promotion, and public relation. Into a coordinated program for communicating with buyers and others involved in purchasing decision. Promotion is expensive. Top management desides the size of promotion budget and allocates it to the different promotional tools. The major budgeting methods are objective and task, percent of sales, completive parity and budgeting model.
Promotional objectives:
Promotion is one of the four major elements of the marketing mix. In modern marketing system it is very important for developing a good product, pricing it attractively and making it accessible to the target customers. Go a company adopts promotional strategy in the light of some objectives. The objectives AKA has set in for promotional strategy are following: 1. To create demand 2. To face competition 3. To introduce the products to the market 4. To build up good will. 5. To increase sales volume. Promotional tools
A company can use any of the following elements to accomplishes its promotional objectives. 1. Advertising 2. Personal selling 3. Sales promotion 4. Publicity 5. Public relation.
Advertising: Advertising is any paid form of non personal presentation
and promotion of ideas, goods or services by an identified sponsor. It is one of most important elements of promotion. Advertising is used to build up to introduce the products, to buid up a long term image, to trigger quick sales, and to reach numerous geographically dispensed buyers at a low cost per exposure AKC uses the following media to advertise their products. 1. New paper 2. Magazine 3. Television channels 4. Sign boards 5. Posture, etc. 6. Sponsor different social and cultural programs.
Personal selling:
Personal selling is an oral presentation in conversation with the prospective buyers. AKC sales its products to retailers only. AKC has a huge number of sales officer all one the country to sale personally to the retailers. Sales promotion:
Sales promotion consists of short term incentives to encourage punchase of product. Sales promotion tools include the following things. And AKA uses different tools in different times. Consumer promotion Samples
Trade promotion Price off
Sales force promotion Trade shows and
Coupons
Allowance
conventions
Cash refund offer
Free Goods
Sales contests specially
Premium
advertising.
Free trials Warranties Contest Patronage Awards Public Relation
AKC maintains good relations with its stack holders, and some components of the society. AKC participates in some social activities partially as part of the public reation. It sponsors different social and cultural programs. It maintains good relations with the governments different bodies through the office of group of companies.
Publication
AKC has some publications moreover different print media give coverage on AKC products.
Promotion Budget
One of the heardest marketing decisions a company faces is how much to sepend on promotion. There are four common methods used to set the total budget for advertising which are given below: 1. Astordable method
2. Percentage of sales method 3. Competitive parity method 4. Objective and task method AKC does not follow any definite method for making promotional budget. It spends a lump sum amount that top management approves to be spent.
Chapter Seven Prospects, Problems and Recommendations
Prospects:
Going through the ins and outs of AKC we find some prospects that it can use for a successful jurny. The prospects are mentioned below: 1. This market is increasing at a increasing rate. 2. Bangladesh: farmers produce different types of farming products that can meet the snacks industry’s demand for raw materials. 3. People of Bangladesh are gradually inclining to the snacks item day by day. 4. Since AKC is being patronized by a large group of company so it enjoys financial strength and brand reputation. 5. Since Abul Kahir group of company is operating in the market for long time and has a strong channel of distribution so AKC can take help from its patron. 6. AKC has by this time, achieved a mention morthy development so if it can restor the growth rate then it will experience a great success.
Problems
Despite AKC is enjoying many facilities it faces some problems. These problems may be due to younger one or management policy or market environment. We can define the problems in the following way. 1. It is facing a ct throat completion from the existing some other companies and small enterprises.
2. It has to import raw materials sometimes North America, Australia and other Countries. 3. It has no specific policy for fixing budget for promotional activities. 4. AKC has no wastage processing units. 5. It does not make annual report formally so it is difficult to see the trend of growth acutely. 6. It spends less on total promotional activities than that competitors do. 7. It is not being able to use its full capacity of production that causes more average cost of production. 8. Finally it is facing some problems as a new industry faces.
Recommendations:
Present market is very competitive and this competition is getting new shaps and being more and more sharp. So management of a company must be strategic in making decisions and adopt latest marketing strategies and policies to survive in the face of this cut throat competition. If a company fails to do that or does anything unwise then it will be mostly difficult to survive. After evaluating all things we would like to of offer AKC the following suggestions to overcome existing problems and group future opportunities. 1. Customers are very concern about quality. So product quality should not be compromised for any reason. 2. For future sustainability it should be environment friendly in terms of hygienic factory environment, hygenity of products, health of workers etc.
3. Ensuring wastage management that can lead to production of byproducts. 4. Try to reduce production costs and market price but not at the cost of low quality. 5. More promotional efforts to ensure the availability of the products every where in the country. 6. Try to explore foreign market. 7. Develop new items and with new taste. 8. Try to make production process full automatic. 9. Strengthing R and D and market observation. 10.Full support of mother company.
Conclusion
Snacks market of Bangladesh is an rapidly expanding market. Abul Khair Consumers (Snacks) Ltd has come into the market with strengths inheritedly but it is facing some problems. From our close observation we have found some problems besides, we have found tremendous prospects. Finally we have put some recommendations. Finally we have put some recommendations in this regard and me think if AKC can follow these then it will survive satisfactorily in the modern and competitive business arena.
Chapter Eight: Appendix References:
1. By- Gary L. Lelion, Philp Kotler, Seventh Edition. 2. Marketing Management Philp Kotler, The millennium 3. Strategic marketing R.M.S Wilson 4. Previous Internship Report
Direct Interview
1. MD. Imtiaze Alam Accounts Manager Abul Khair Consumers Ltd. 2. Md. Belal Ahmed Production Manager Abul Khair Consumers Ltd. 3. Md. Mizanur Rahman Assistant General Manager Abul Khair Consumers Ltd.
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 organogram of the plant? 6. How many units and machineries in it? 7. What in the country of origin of the machineries? 8. How many employees (executive & staff) work here? 9. Do you have any expatriate executive? 10. Do you think that “
” is the leading factory in
this line? 11. What are the sources of raw materials? 12. Do you have any wastage processing arrangement for the protection of environments? 13. Do you ensure hygienic environment for the workers? 14. Do you have any policy to cover losses occurred by any kind of accident? 15. What are the steps in manufacturing process? 15. Where do you cheek quality of the product?
Questionnaire about 4PS Questions about product:
1. What is the concept of your product? 2. What types of raw materials are used in production? 3. What are the brand names of your product? 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 could you measure the quality of your product? 13. Are your customer satisfied having your products? 14. How do you collect information about customer satisfaction?
Questions about price:
1. What factors do you consider in setting prices? a. Internet factors: i. ii.
Company’s marketing objectives, Marketing mix strategies,
iii.
Cost,
iv.
Organizational consideration,
v.
Others, if any
b. External factors: i.
Nature of market demand
ii.
Competitors, costs, prices and offers
iii.
Other factors, if any.
2. What pricing approaches do you follow?
Cost based pricing
Value based pricing
Competition based pricing
3. Would you follow price adjustment strategies for various customer groups and in and changing situation?
Discount pricing
Promotional pricing
Segmented pricing
Geographical pricing
Psychological pricing International pricing 4. Do you change higher price than your competitors? 5. Do you change prestigious price? 6. Do you think that the prices of your products are comparatively low in terms of quality? 7. Are your customers satisfied at your price?
Questions about Place:
1. What types of channels do you use? -Direct
-Indirect
2.How many channel members do you use to distribute your product? 3. What factors do you consider in selecting channels? 4. Do you think your products are readily available every where in the market? 5. What types of functions are performed by your channel members?
Information
Physical distribution
Idea generation
Financing
Promotion 6. Is there any conflict among your channel levels? 7. Are you satisfied at the behavior of your channels? 8. Do you have any monitoring cell to look after your channel members?
9. Who does mainly perform the physical distribution of your product? Is it you or your channel members? 10. Which channel do you prefer most? 11. Is your product exported to abroad? 12. How could you get closer to your customers? 13. How do you gather information about customers feed back?
Questions about Promotion:
1. For promotional activities which method do you follow?
Personal selling
Advertising (which media you use and which are you prefer most)
Publicity
Sales promotion
Public relation.
2. Do you have any discount facility, if so what are those? 3. Do you give any short term incentives? 4. Do you have any advertising agency for better promotional activities? 5. How do your set promotional mix for your product? 6. What are purposes of your promotional activities? 7. What factors do you consider in setting promotional budget? 8. Which promotional budgeting method do you follow? 1. % of sales 2. On available funds 3. Competitive parity 4. Budgeting by task and objectives. 9. Are you involved in any social marketing activities? if so, what are those? 10. Do you think promotion is an important way to reach customer?
