Radhuni mustard oil integrated marketing communication

Radhuni Mustard Oil Integrated Marketing Communication

ASSUMPTIONS The basic set of assumptions taken by the group includes the following: 1. The funding required for carrying out the IMC strategies i.e. the Promotional Mix has been considered to be unlimited.

2. Media Preferences for food products (e.g. Mustard Oil) have been intuitively assumed by the group. This is because of the ambiguity of information regarding such practices – currently taking place.

3. Certain key information is not disclosed by the company official on the grounds of confidentiality of the information concerned. Therefore, those data had to be intuitively assumed by the group.

4. The information provided by the company representative is insufficient and unclear for certain matters, resulting in increased set of assumptions to be taken by the group regarding those areas such as detailed media budgetary objectives.

5. The Media Planning objectives and Promotional Mix objectives are at times assumed by the group since such information is not disclosed by the company representative.

6. General assumptions regarding Segmentation of the customer base of the concerned product had to be taken in order to reflect the real market scenario.

7. Research costs have been intuitively assumed, owing to no existence of appropriate data regarding carrying out such tasks in Bangladesh.

Segmentation Strategy Segmentation basically refers to the division of the Target Market on the basis of ‘certain preferential variables’. The main purpose of segmentation is to achieve the specific positive sales

results

by

particularly

specifying

potential

customer-bases

with

similar

traits/preferences/characteristics. Segmentation can be done on the basis of factors such as: 1.1 Demographic Factors: •

Education

•

Income

•

Gender

•

Age

•

Usage

•

Benefits Sought etc.

Critical Analysis of the Segmentation Factors for Radhuni Pure Mustard Oil: Segmentation strategy is primarily formulated by means of segmenting the target market on the basis of Demographic attributes of customers (i.e. Education, Income, Gender, Age and Usage pattern) of end users and Geographic Locations (i.e. Urban and Rural Consumers).

Segmentation based on Demographic Factors: 1.1.1

Education:

The product primarily focuses on ‘purity’ and ‘health attributes’ to be its main benefits.

Therefore, it primarily appeals to customers with a basic level of consciousness regarding health issues and it requires a certain educational background for perceiving such benefits.

So the product should be targeting customers possessing a minimum understanding of health issues.

Measuring the size of this Target Market: The size is determined as follows: from the Statistical data obtained from Bangladesh Bureau of Statistics, we can find that approximately 64.3% of the urban population is literate. In the rural areas, the rate is approximately 42.2%. [The complete Statistical table is provided in Appendix – A] (http://www.bbs.gov.bd/dataindex/census/bang_atg.pdf) 1.1.2

Income (or Socio-Economic Class):

For Income based segmentation; the following statistics obtained from the Marketing Research Firm AC Nielson is used: The Socio-Economic Classification: A

Higher Managerial/Professional Occupations

B

Lower Managerial/Professional Occupations

C

Intermediate Income Occupations

D

Small Employees and Own Account Workers

E

Lower Supervisory & Technical Occupations

The population of the classes with respect to the countries can be given as: SEC A B C D E

Total (%) 8.6 21.2 34.9 22.9 12.4

Urban (%) 25.7 29.2 25.8 11.3 8.0

Rural (%) 3.4 18.8 37.7 26.4 13.7

Since the product we are dealing with is of ‘premium category’, the Socio-Economic Classes chosen to be primarily targeted include the households of Medium to High levels of Income. Therefore, the categories: A, and B are contemplated to be targeted with Concentrated Targeting Strategy.

This target market consists of individuals who are involved in higher managerial and professional occupations and lower managerial and professional occupations. It is clear that the class we are targeting generally live in urban localities such as Gulshan, Banani,

Dhanmondi etc. Since our Target Group is more concentrated in Dhaka, it is our Primary Target Market. Other major cities such as Chittagong, Sylhet tend to be the Secondary Target Market.

1.1.3

Gender based Segmentation:

Segmentation on the basis of Gender of the potential customers is done by identifying the two segments mentioned earlier. They can be described as follows: 1.1.3.1 Female Customers (Primary Target Market): From the research, it is evident that the urban customer-base mainly consists of households– where the purchasing is primarily done by the housewives (i.e. females) of particular families. So the basic household segment to be targeted is considered to be: Female individuals of the metropolitan areas of Bangladesh, primarily of – Dhaka, and secondarily of cities like: Chittagong, Sylhet, Rajshahi, Khulna, Jessore, Barisal, Comilla etc.

Measuring the size of this Target Market: The size is measured from the data obtained from Bangladesh Bureau of Statistics, which is approximately 14,233,696 (i.e. the population of female individuals in urban areas) (http://www.bbs.gov.bd/dataindex/census/bang_atg.pdf) 1.1.3.2 Male Customers (Niche Target Market): Another urban segment contemplated to be targeted – is the niche segment consisting of male individuals who perform the shopping chores for their families residing in the urban areas.

This segment is perceived to be a niche, since research by various research organizations suggest that there is a decreasing trend of households with male members carrying out shopping of daily consumer/convenience items for the family.

The size of this target market is determined from the statistical data on population of males in rural areas, which according to Bangladesh Bureau of Statistics is: 16,844,256. (http://www.bbs.gov.bd/dataindex/census/bang_atg.pdf) 1.1.4. Age Based Segmentation: The age-group of individuals who are the potential buyers of the product we are focusing on has been analytically perceived to be in the range of 27 – 50 years group. According to this segmentation strategy, the customer of this specific age-group is the potential Target Market.

The size of this Target Market is determined from Bangladesh Bureau of Statistics data and it is 36.06% of the total population of Bangladesh. (http://www.bbs.gov.bd/dataindex/census/bang_atg.pdf) 1.1.5. Usage Based Segmentation: From our research, we have found that the household customers are the primary users of the product we are focusing on. Families are the prime customers, and heavy users of the product. So, the target market for Radhuni Mustard Oil should focus more on the potential household customers.

The size of this Target Market according to the Bangladesh Bureau of Statistics data is: 6,035,144 in urban areas. The number of households in rural areas is: 19,455,678.

1.2 Segmentation on the Basis of Geographical Factors: The target market focused for the concerned product is primarily the customers of the Urban Areas. This is owing to the fact that, the product being an agro-based item is more profitable to be marketed in urban areas where – abundant supplies fresh-agro based commodities is scarce. Thus the targeting strategy is to primarily target the: (a) Urban households market and (b) the rural niche market 1.2.1 Urban – Female Segment: The Target Market for the urban areas is primarily the female consumers of age group 2750. Therefore, the Urban Target Market is actually a derived faction of some sections specified in the Demographic Segmentation strategy. According to Bangladesh Bureau of Statistics data the size of this target market determined is approximately 2,391,261. (http://www.bbs.gov.bd/dataindex/census/bang_atg.pdf) 1.2.2 Rural – Male Segment: In the rural areas, the group has found out that the shopping decisions of convenience products are primarily made by Male individuals. Therefore, for targeting the rural segment, the group contemplates that the Male Customer segment should be hit. The size of this target market found from the statistical data is: 9,395,136. This market does not fully possess the

purchasing affordability for buying the product. Thus, a small faction of this Target Market can actually be the potential buyers of the product we are dealing with.

Therefore, for the product ‘Radhuni Pure Mustard Oil’, summing up the segmentation mechanisms, we can infer the following primary strategies on the basis of the following various Demographic and Geographical factors: Segmentation Factor The level of Education of consumers

Description on the basis of consciousness of the

Income Level of the Households Gender of Customers

consumers towards healthy food on the basis of Socio-Economic Classes division of the Target Market in terms of customers’ gender: (a) Female Customers,

(b) Male Customers Age Group of Targeted Consumer segments Target age group 27 – 50 Usage Patterns of the product Basically targeting household consumers Geographical locations of targeted (a) Urban Customers and (b) Rural consumer bases

Customers

Finally, it should be mentioned that The Targeting Method considered to be used is Concentrated Targeting Strategy since all the Target Markets will be offered a same set of 4Ps. The Marketing Mix section discusses the 4Ps to be offered with greater detail.

Target Market (Educated Customers) Target Market (Urban, Female) Target Market [Niche] (Urban, Male)

1 set of 4Ps

Target Market [Niche] (Rural, Male) Target Market (Age Group 27-50) Target Market (Households) Positioning Strategy The product positioning basically involves the concepts of looking at customers’ minds regarding the ‘perception towards the product’, compared to the competitors’ offers. The product we are dealing with is generic in nature and it is differentiation that is going to help us position the product in terms of quality, cost and convenience.

The quality offered would be premium which means the product would deliver the highest standards in the marketplace. The costing would, thus, also be high to carry the ‘high-cost, high-quality’ image of the brand. Since the target market is Medium – High Level income individuals, this positioning would further motivate them to be retained customers. Therefore, the brand image would position itself a premium item among the competing products.

The following diagram identifies the Perceptual Map of the brand in consumers’ minds (in comparison with the competitive products) on an ‘Axis System’ of Positioning with the Cost Dimension & the Quality Dimension:

Cost High Suresh

Radhuni Mustard Oil

High

Low Fresh

Quality

Teer

Low If we analyze the current market prices of competing brands in the Mustard Oil industry, we find Radhuni to possess the premium quality attribute. All other competing brands are targeting the segments based on ‘low price’ strategy; but Radhuni is planning to portray itself as the most costly – but at the same time a premium quality product. Therefore, the Perceptual Map reveals Radhuni to be a ‘high-cost, high-quality product. On the other hand, competing brands are positioning themselves as low-cost alternatives.

The Pricing comparison can be seen from the following Tabular Analysis of prices of competing brands in the market:

1 Liter 500 ml

Radhuni BDT. 125 BDT. 70

Suresh BDT. 115 BDT. 65

Teer BDT. 105 BDT. 57

Fresh BDT. 105 BDT. 57

250 ml 80 ml

BDT. 37 BDT. 18

BDT. 35 n/a

BDT. 30 n/a

BDT. 30 n/a

The management should view the product as the most standard one in the market, and perform the Promotional Activities accordingly. So, the group suggests that Radhuni should continue to uphold its unique ‘purity’ and ‘hygienic’ characteristics to differentiate itself from the competitors.

SWOT ANALYSIS – Radhuni Pure Mustard Oil STRENGTHS

WEAKNESSES

• Offers the best perceived quality among • Radhuni Pure Mustard Oil is practicing existing brands • It has a unique manufacturing system • Refined in an automated plants with sophisticated technologies • Made from the best quality local mustard seeds • Artificial chemicals are strictly avoided for manufacturing.

high price strategy • Competitors (like Teer, and Fresh) are offering lower cost alternatives • Metropolitan areas are considered as the main marketplace for the product • Radhuni Mustard Oil is in an infant industry • Lack of Supporting Product lines

• It is a tested hygienic product • The parent company is one of the strongest conglomerate in Bangladesh OPPURTUNITIES

THREATS

• There is a Huge Potential market for the • A huge supply of cheap, open mustard oil product

exists in the market

• Satisfied consumers can be extremely • Supply of raw materials is dependant on brand loyal

agricultural conditions and factors

• Scope for further market penetration

• A lot of choices exist in the market

• Has great potential in profit

• The people are generally unwilling to buy

• Potential of capturing a large market share on the basis of quality • There are few strong competitors • Potential of targeting additional segments

bottled mustard oil • People in rural areas are unaccustomed to using bottled mustard oil • More competitors in this sector may

appear in the near future

Marketing Objectives The Mustard Oil product-line of Square Consumer Products Limited is currently holding the number two place in terms of its market share in the Edible Oil Industry. The first year sales information has not been disclosed by the company management. But the information provided states that: the sales figure approximately reached the break-even point in the first year. So the group assumes the figure to be roughly in the range of BDT 20,000,000 to 35,000,000.

The group suggests that the trend of its performance can make it the number one brand. So, following SCPL’s current stand in the business, the following Marketing Objectives for the next 1 year are offered by the group: a) Sales Objective: To increase sales by at least 30% in the upcoming business period. b) Market Share Objective: To capture the market share so that ‘Radhuni Mustard Oil’ is the number one selling brand in the market.

The objectives are tentative in nature, and subject to changes according to the market conditions. Therefore, setting the Marketing objectives for the next 1 year basically includes the areas of increasing sales substantially, and being the number one in terms of possessing market share.

Statement of Value Proposition The existing tagline of the brand Radhuni Pure Mustard Oil is: “TASTE & HYGIENE IN EVERY DROP”. This tagline is clearly manifested in their approach of providing the consumers with the ‘purest’ products and the most consistent quality throughout. Thus, the key benefit/value offered by Radhuni Mustard oil is undoubtedly the quality assurance.

SCPL differentiates its brand from the competitors by distinguishing it by providing the highest standards in the marketplace. The consumers’ mental picture regarding this product is therefore formed on the basis of trustworthiness in terms of product attributes including freshness, purity and superior quality.

The Consumers’ Psychological Perceptions in interpreting a product plays a crucial role in forming specific Attitudes, Beliefs and Values regarding the product in their minds.

Salient Beliefs: A few intrinsic beliefs in customers’ minds basically form their system of salient beliefs regarding certain brands. For food products, this system is basically formed by hygienic perception of the brand. The more hygienic and healthy the product is perceived by consumers, the more saliently they possess positive associations about that specific brand.

Thus, Radhuni Mustard Oil should focus more on this attribute of the product to reinforce positive perception in customers’ minds.

The Marketing Mix 5.1 Product Strategy: Radhuni Pure Mustard Oil is manufactured from graded mustard seeds and refined in an automatic plant in a modern seven layer purifier. It is a great source of energy and vital micronutrients. Having the original taste of edifying spiller (locally known as ghani); Radhuni Pure Mustard Oil is made of the best quality local mustard seeds. It is enriched with unique pungency of pure mustard. It contains good amount of mono-unsaturated fatty acid, which helps reducing bad cholesterol.

No artificial color, flavor or chemical substance is added. Mustard Oil is being used in different kinds of kneaded spicy vegetable, fish and meat.

Type of the Product: Radhuni Pure Mustard Oil can be classified as a Convenience product item. Thus, it can be viewed as a relatively inexpensive item which consumers purchase frequently. It is a widely available product and requires minimal effort and shopping efforts.

The product, according to the behaviorist mindset of consumers, can be classified as a ‘Low Involvement Product’ which involves habitual buying behavior. The familiarity of the brand (Radhuni Mustard Oil) is therefore formed by means of information passively received from TV and Magazine communications.

According to Maslow’s Hierarchy of Needs:

Radhuni Pure Mustard Oil The above illustration clearly reveals that the brand Radhuni Pure Mustard Oil is targeting the lower level ‘Physiological’ & ‘Security’ Needs of the Maslow’s Hierarchy. This is because of the fact that the Product highlights on taste (concerned with Physiological Needs) and Hygiene (Security Needs). Thus, it can be referred to as a Low Involvement, generic, convenience product where the main source of differentiation is ‘Quality Proposition’ and ‘Purity’ of the product considered.

Packaging: Radhuni Pure Mustard Oil is currently available in four different bottles sizes: 80 ml, 250 ml, 500 ml and 1 liter. Thus, the product is offering a wide set of choices for various consumer categories. It is found from research that smaller families tend to go for the 80-250 ml bottles, whereas larger households are more inclined to the 250 ml – 1 liter bottle package.

According to the Product Life Cycle, Radhuni Mustard Oil is currently in the Growth Stage:

So, we can find that the product is growing in terms of market share, and the trend is considered to continue to reach the point of Maturity eventually.

5.2 Pricing Strategy: Price is the sum of all values that consumers exchange for the benefits of having the product.

It is a major factor affecting buying decisions, and it is the only Marketing Element that generates Revenues for the company. Price gives an indication of Value of the Product, and influences consumers’ perceptions and Positioning of the product. Radhuni Pure Mustard Oil basically focuses on premium pricing strategy for its highest standard of product quality offered. So, the group recommends that the target of the management of Square would be to achieve the number one position in terms of Market Share by setting high-quality for consumers’ satisfaction, and premium pricing strategy for earning sufficient Revenues.

The current Pricing Plan of Radhuni Pure Mustard Oil is as follows: 1 Liter: BDT 125

500 ML: BDT 70

250 ML: BDT 37

80 ML: BDT 18

The product is currently in a Growth Stage of the Product Life Cycle. Therefore, the Skimming Pricing Strategy is currently followed.

Skimming Pricing

The rationale for using Skimming Pricing Strategy is: Radhuni should focus on setting high price to match the premium product quality it offers. The costs have to be reasonable and consistent with the quality attributes of the product. Therefore, the competitors’ strategy

of pricing their products low can not potentially affect the positions of Radhuni Mustard Oil in consumers’ Perception Map. For the skimming pricing strategy, the elasticity of quantity demanded is lesser i.e. for a certain change in price, the associated change in quantity demanded is relatively small. So, this pricing strategy further reinforces Radhuni’s position as a premium brands with special quality whose price is not the determining factor for demand. Rather, the quality is what has resulted in its achievement of current market position. This is illustrated by the following diagram:

P1 P2 Q1 Q2 Fig: Reduced Elasticity for the Skimming Pricing Strategy 5.3 Distribution Strategy: SCPL has a strong distribution network in the country. At present, a total number of 112 (One hundred twelve) highly experienced Distributors are engaged to market the products at various regions around the country. Basically, the product is a widely available ‘convenience’ consumer product.

The Marketing Channel used is as follows: Manufacturer → Distributor → Wholesaler → Retailer → Consumer Another Channel is directly Manufacturer → Large Scale Retailers → Consumer Examples of Large Scale (or Institutional Retailers include: Agora, Nandan, PQS etc.)

Therefore, we can observe Long Marketing Channels to be used for distributing the product. The product is Widely Available and so Intensive Marketing Channels are used for the distribution process.

5.3.1 Export Market: Square Consumer Products Ltd had been exporting and marketing its products abroad from the time of its inception. SCPL is now strengthening its export operations on its way to

becoming a high-performance global competitor by supplying quality food products at competitive prices. Its products comply with international Phyto-Sanitaion quality criteria.

Starting from its first exports to South Korea in the year 2002, the company is currently exporting to several countries around the globe including those of Europe, Far Eastern countries, Middle East and USA, Canada, Australia and Japan.

Advertising Plan 6.1 Communication Objectives: The communication objectives for promoting a certain brand refers to specific objectives associated with aspects such as brand awareness, knowledge, interest, attitudes, image and purchase intention.

Thus, the Communication Objectives for ‘Radhuni Pure Mustard Oil’ brand, contemplated by the groups is to focus on enhancing the following major objectives: Brand Awareness: To make the potential customers more positively aware about the brand.

Knowledge: To make the target market more knowledgeable about the Brand Interest: To make the target markets more interested about the brand.

Image: To create positive images of the brand in consumers’ minds.

Purchase Intention: To create a desire in customers’ minds for purchasing the product.

Figure: Aspects determining the Communication Objectives Based on the aforementioned specific communicational objectives, the group has to come up with a detailed strategy of how to hit specific segments in order to achieve them.

The Role of IMs 7.1 Introduction Integrated Marketing Communications is a ‘Unified Effort’ to tempt people for making purchase decisions. Thus, in order to achieve the specific Communication objectives, an effective IMC Plan has to be generated first. The components of Integrated Marketing Communications are as follows: 1) Advertising, 2) Sales Promotion, 3) Public Relations, 4) Point-of-Purchase, 5) Personal Selling, 6) Database Marketing, 7) Event Sponsorship and 8) Direct Marketing

7.1.1) Advertising: The Traditional Media Plan focuses on how strategically the Print and TV media advertising can be used to reach specific target markets. The group plans to strategically put ads in the most suitable media in order to achieve the aforementioned objectives.

Current Advertising Practices: Suggested Advertising Practices: Print Media: Local Daily Newspapers & Specifically targeted Print various Magazines

Media

Advertisements

TV Media: Local TV channels and Food Specifically selected and scheduled ads in Preparation Shows

strategic time-slots and specific programs.

7.1.2) Sales Promotion: Currently, the management of SCPL is not going for any concrete sales promotional plans.

So, the group suggests Promotional Offers for both Consumer Promotions and Trade Promotional Plans. These include: Discounts and Special Offers targeted for Consumers; and Promotional Incentives and Sales-based rewards will be offered for Trade partners such as Distributors, Wholesalers and Retailers.

7.1.3) Public Relations: Current Public Relations efforts of SCPL are negligible or ambiguous in nature, so the group suggests the following strategy. The management should focus more on contracting various News-agencies to disseminate positive information about the brand and company at different Medias on a regular basis. To enhance the image of the company, the management requires engaging in various Corporate Social Responsibility activities and assistance in various Social & Environmental issues.

7.1.4) Point-of-Purchase: The Point-of-Purchase analysis is a recommendation of the group. So, the following strategy is suggested recommends the following strategy. Special advertisements and promotional offers should be provided at various POPs around the country including leading Retail Stores such as Agora, Nandan, PQS as well as smaller shops and Departmental stores. This Element is discussed with more details in ‘Sales Promotion & Point-of-Purchase’ portion of the report.

7.1.5) Personal Selling: The group suggests the following techniques to be carried out. The Square Consumer Products management can think of sending Sales Personnel at various locations around Dhaka City to make selling campaigns and take special offers to the doorsteps of household customers. Specific locations would be chosen around the city throughout the year and sales personnel would be regularly sent there.

7.1.6) Database Marketing: At present, SCPL management is not performing any Database Marketing activities to generate increased sales. So, the group has come up with the following strategy to initiate this practice. Database buildup for targeted communications can be achieved by: Running consumer promotions in Press and Retail Levels – inviting consumers to participate in various contests. This can later form the basis for a well-maintained consumer database and Reward-based

Events

to

be

arranged.

Finally,

generation

of

word-of-mouth

communication can be done and brand ambassadors can be created from the target groups.

7.1.7) Event Sponsorship: SCPL can engage in various Event Sponsorship programs similar to the ‘Pran National Pickles Competition’. Radhuni can, therefore, arrange special events to uphold its brands image – especially ‘Cooking Competitions’, ‘Hygiene Campaigns’ and Rallies involving the themes of using hygienic food products.

7.1.8) Direct Marketing: According to a senior Marketing Executive of SCPL, Mr. Obaidul Haque, currently Direct Marketing is being done only for Large Scale Retailers such as Agora, Nandan, PQS and other mega-shops (which SCPL calls Institutional Retailers). In addition to that, the group recommends that: the management can consider Direct Marketing for attaining better sales results by extending current practices to encompass more outlets so that the sales volume increases eventually.

Finally, the group analyzes the brand in the light of the Product Life Cycle and Promotional Mix:

The product under consideration is currently in the Growth Stage. Therefore the following Promotional Mix Strategies should be focused on: a) There should be a heavy advertising plans to promote the product b) Public relations efforts should be extensively practiced c) Sales Promotional Activities should be more frequent d) Effective steps should be taken to enhance brand loyalty e) More personal selling can be devised for increased better distribution 7.2 Creative Strategy & Execution: The group has effectively developed a set of 3 creatively designed Print Advertisement Layouts and 1 Television Advertisement Storyboard. It should be mentioned at this point that in doing so, the group has assumed the responsibility of designing new themes, message contents and taglines for the concerned product Radhuni Pure Mustard Oil. In one of the Print Ad layouts, a celebrity endorsement is suggested. Ms. Siddiqua Kabir – a famous nutritionist and cooking expert of Bangladesh has been recommended to be the first Brand Ambassador for Radhuni Pure Mustard Oil. The following are the layouts of Print Media advertisements and a TV Ad Storyboard prepared by the group:

The TV Ad Storyboard: Ad Duration: 30 – 45 seconds Sequence – 1 Theme: An exhausted and tired person is back from office and sitting in the dining room of the house.

Sequence – 2 Theme: This is a ‘Recalling Scene’: man is remembering his childhood days’ memories.

Sequence – 3 Theme: The Man is recalling the exciting childhood memories of running around under the open sky, around agricultural fields. This scene would create the image of freedom and fun in his childhood days.

Sequence – 4 Theme: The child encounters a GHANI which grinds the Mustard seeds to make the Mustard Oil, the child astonishingly watches the process.

Sequence – 5 Theme: The boy returns home, tired from all the days running and playing, when he experiences the affectionate meal served to him by his mother.

Sequence – 6 Theme: The scene comes back to the present life, where the man’s wife is approaching the dining room with a few dishes.

Sequence – 7 Both the man and his wife are enjoying the meal with happy gestures and the background voice of the man, telling the Ad message: THE SAME TASTE, AROMA AND FLAVOR OF FOOD FROM MOTHER’S HAND… THE SAME OLD FEEL OF THE COUNTRY’S SOIL… THAT SAME FEELING… Sequence – 8 The Brand symbol of Radhuni Pure Mustard Oil appears and the background voice gives the voice message [In Bangla]: “CHIROCHENA SHEI SHAAD, SHEI GONDHO, EI MATIR VETOR THEKE UTHE ASHA”.

Then background voice tells the Tagline: “RADHUNI KHATI SHORSHER TEL, PROTI FOTAY JIBONER ASHSHASH”. In English: “RADHUNI PURE MUSTARD OIL, PROMISES OF LIFE IN EVERY DROP”. [Message: Radhuni offers the real taste of Pure Mustard Oil, and revives those old memories]

7.3 Traditional Media Plan Objective of the Traditional Media Plan: The first and foremost objective of the Traditional Media Plan is to effectively reach the target market and positively influence them to make purchase decisions.

For that purpose, the following illustration can simplify our objective:

Advertising through Media One-Way

Attitudes

Knowledge

Preference

Conviction

Purchas e Behavior

Linear

Acting on Consumers Source:

http://www.homepages.dsu.edu/coffeyd/Courses/BADM

%20481%20Promo/481%20BADM%20-%20misc%20stuff/Belch%20ppt/chap007.ppt To focus on our target market through the media, we have to first work on the attitudes (based on product information) of target audience. Then our initiative should be to make the target consumers knowledgeable about the brand (Radhuni Mustard Oil). This would lead to the formation of positive preference of consumers towards the products and ultimately make the target audience convicted to purchase the product.

To achieve the aforementioned objectives, the following detailed Traditional Media Plan has been formulated by the group: 7.4 Print Media Advertising Plan: In order to reach a great number of potential customers, the effective utilization of existing print media vehicles is necessary. The group suggests the following strategy for attaining the objectives: The following Print Media Vehicles are suggested to be utilized:

Newspapers Magazines Leaflets Posters

According to our analysis, the Target Groups – mentioned in the Segmentation portion can be best touched by the following vehicles: 7.4.1 Print Media Plan: Publication

Reach (%)

Publication

Reach (%)

Target

Target Market

Market

Newspaper

Magazine

Daily Prothom Alo

82.1

Jai Jai Din (weekly)

45.6

Daily Ittefaq

71.2

Shaptahik 2000 (weekly)

24

Daily Jugantar

55

Anandhara (Fortnightly)

19.21

The Daily Star

34.5

Binodon (Fortnightly)

18.15

The Observer

25

ICE Today (Monthly)

15.01

The New Age

23.60

Daily

Star

(Friday 16.32

Magazine)

Source: Grey Advertising Bangladesh Ltd. The Costing analysis for the aforementioned strategy is deduced to be as follows:

Publications

Frq

TEASER Prothom Alo Ittefaq Daily Star LAUNCH Prothom Alo Ittefaq

Card Cost (BDT)

2 2 2

240,000 192,000 158,400

1

320,000

1

256,000

1

211,200

Prothom Alo

1

88,000

Ittefaq

1

60,000

Daily Star

1

82,800

New Age

1

72,000

Amar Desh

1

60,000

Naya Diganta

1

60,000

Janakantha

1

60,000

Jugantar Magazine Daily Star Friday Mag Anando Alo

1

60,000

2 1

30,000 15,000

Ananda Dhara

2

30,000

Television

2

30,000

Annydin

2

30,000

Independent Mag

1

15,000

Jai Jai Din Saptahik 2000

2 2

30,000 30,000

Binodon

2

30,000

Gross

33

2,160,400

Daily Star

FOLLOW UP

Gross

33

2,160,400

Add 9% VAT (on Gross) Advance Payable to Publications

1,530,300

Agency Rate

181,980 1,712,280

Source: Square Consumer Products Ltd. Marketing Dept.

For achieving the requisite reach of target audience, the group has come up with the following analysis based on the exposition and reach potential of the strategic Vehicles:

7.4.2 Newspaper Reach: From research, we are assuming that 3,600,000 people out of our target audience are exposed to the ads in the newspapers (4 Daily Newspapers) in a four week time. All these people are not necessarily reading all of the mentioned the papers regularly, but are exposed to the ads since strategic scheduling is planned by the group and the ads are eye catching, interesting and capable of drawing attention.

Reach = 3,600,000 ÷ 4,500,000 = 80% We are assuming that 1,600,000 people out of our target audience to be viewing the ad 4 times and 2,000,000 people to be watching it thrice in a four-week time.

Total exposures: (1,600,000 × 4) + (200,000 × 3) = 12,400,000 Average frequency = 12,400,000 ÷ 3600,000 = 3.4 7.4.3 Magazine Reach We are assuming that 1,150,000 people in our target audience to be exposed to the ads in the strategically chosen magazines. The Magazines are chosen on the basis of out target markets’ reading preferences. Out of these 1,150,000 people 500,000 are the primary readers while the others are secondary readers. So the reach can be calculated as follows: Reach = 1,150,000 ÷ 4,500,000 = 25% We are assuming that 500,000 people in the target audience to have seen the ads 3 times and 650,000 people to be exposed to them twice in a four weeks time. Hence: Total exposures: (500,000 × 3) + (650,000 × 2) = 2,800,000 Average frequency = 2800,000 ÷ 1,150,000 = 2.48 7.4.4 Posters Posters are comparatively less effective in the print media vehicle designing strategy. This is because they possess reduced reliability in consumers’ minds and as would eventually tear off. Even so, the group is still planning for a certain amount of posting. The plan is to print a minimum number of posters and post them in selected target areas. By this way, we can attract our target audiences, which can eventually positively influence their buying decisions.

Costs associated with Posters is calculated as follows: Number of Posters 12,000

Unit cost 0.83

Total Cost 10,000

7.4.5Leaflets The group plans to use leaflets for attracting certain segments of the target audience with eyecatching colors, designs and attention drawing layouts. The leaflets will contain a brief description of the product’s features. We will distribute them in the target area with the daily newspapers like preprinted inserts. The plan is to initially print 50,000 leaflets and distributed at specific locations in metropolitan area.

Costs Associated is deduced as follows: No. of leaflets

Unit Price

Total cost

50,000

1.50

75,000

7.5 Electronic (TV) Media Advertising Plan: Television’s vision, sound and motion offer endless creative opportunities to reach viewer’s hearts and minds. So, the TV channels are one of the most important media vehicles for Radhuni Pure Mustard Oil advertisement media plan.

Currently there are approximately 11 TV channels which can be thought of as potential scope of planning for the TV media. But we are focusing of a limited and more specific target to be reached. We have used several advertising strategies to capture our target audiences.

Considering the advantages of using the TV, we have decided to air our advertisements on different channels. Hence, we have primarily chosen the four most popular Bangladeshi satellite TV channels (since our target audience is more exposed to these four channels). So the potential scope and target Media Vehicles can be shown as:

SCOPE

CURRENT TARGET

BTV, ATN Bangla, Channel-i, Ekushey TV,  BTV NTV, RTV, Channel One, Bangla Vision,  ATN Bangla Boishakhi, CSB News, Islamic TV

 NTV

 Channel-I

The following analysis has been performed for target markets’ TV preferences. Here the segments shown (i.e. A, B, C, D & E) are basically the Socio-Economic Classes mentioned in the Income based Segmentation Strategy.

80 70 60 50 40 30 20 10 0

80

24

20

NTV

Channel i

BTV

ATN Bangla

25

Figure: Distribution of audience size of various TV channels Source: Grey Advertising Agency So, we can observe that the overall Channel reach shows BTV (National Terrestrial Channel) to be the clear leader in terms of audience size, while ATN Bangla has moved up.

Channel-I and NTV follow ATN Bangla closely.

The following analysis reveals the trend of TV reach in Bangladeshi households: Base: All TV owning Households 90 80 70 60 50 40 30 20 10 0

Base: Cable & Satellite TV Viewing Households 60 50

BTV ATN Bangla Channel i NTV

40

BTV A T N B a ngla

30

C ha nne l i

20

NTV

10 0

A

B

C

D\E

A

B

C

D\E

Figure: Audience size of TV-viewers based upon Socio-Economic Class based segmentation and Channel Preferences Source: Grey Advertising Agency From the analysis, it is certain that: BTV – the national terrestrial TV channel has the highest reach; expectedly BTV is more popular with the lower Socio Economic Classes. In

households with satellite and cable connections, the analysis reveals that ATN Bangla is the channel with the maximum reach (55%); BTV, Channel-i and NTV follow.

So, by evaluating the above analysis, it can be inferred that Radhuni Pure Mustard Oil should be capitalizing on the above trends to be successful in attaining its Marketing and Communication objectives.

For effective targeting, we are emphasizing on advertising in TV prime times. The duration of prime time is 6:00 to 11:00 PM. So we will air the TV ads in this time slot so that the maximum reach can be attained.

7.6.1 TV Ad Scheduling & Cost Plan: The regular scheduling plan of Radhuni Mustard Oil ads in various channels is considered to be according to the detailed plan given here. The duration of the advertisements is about 30 seconds each. Airing is suggested to be taking place during the News and before & after the Drama Serials (and other popular programs) which our target market is mostly exposed to.

Channel

Program

BTV

News at 8:00 PM Drama 8:30 PM Drama + Magazine 9:00 PM

ATN Bangla

News at 7:00 PM Drama at 8:25/9:25 PM News at 10:00 PM

NTV

News at 7:30 PM Drama at 8:15 PM Siddiqua Kabir’s RecipÊ

Channel I

News at 7:00 PM Drama at 9:30 PM News at 10:30 PM

The costing analysis and the detailed strategic TV media plan for each of these channels is given below: BTV: Programs

Number of Ads

Rates

Cost

News

2

15,000 (Beginning) + 20,000 (Middle 35,500

Magazine

2

Break) 15,000(Fixed

Program

60,000

Position)+ 15,000(Mid Break)

(Weekly) Total Cost Per Month = (35,500 × 30) + (60,000 × 4) = 1,305,000 Add: VAT (15%) = 195,750 Total = Tk. 1,500,750 ATN Bangla: Programs Mega Serial News

Number of Ads 2

Rates 7,500 (Fixed

3

(Middle Break) 13, 500 (Beginning) + 18,000 (1st Mid) 46,500

Position)

+

Cost 9,000 16,500

+ 15,000 (2nd Mid) Total for one month = Tk (46500 × 30) + (16,500 × 12) = Tk 1,59,3000 Add: Vat 15%= Tk. 238,950 Total Cost including Vat= Tk 1,831,950 NTV Programs Siddiqua Recipé News

Number

of Rates

Ads Kabir’s 2

Cost

7,500 (Fixed Position) + 9,000 16,500 (Mid Break) Beginning 13,500 + 18,000 (1st 46,500

3

Break) + 15,000 (2nd Break) Total Cost per month = Tk (46,500 × 30) + (16,500 × 8) = Tk 1,52,7000 Add: Vat 15%= Tk 229,050 Total Cost including Vat = Tk 1,756,050 Channel-I Programs Serial

Number of ads 2

Rates 12,000 × 2

Cost 24,000

News

3

13,500 (Beginning) + 18,000(1st 46,500 Break) + 15,000 (2nd Break)

Total cost for one month = Tk (46,500 Ă— 30) + (Tk 24,000 Ă— 8 days per month) = Tk 1,587,000 Add: Vat 15%= Tk 238,050 Total Cost including Vat = Tk 1,825,050 Total TV Media Plan Cost = Tk (1,500,750 + 1,831,950 + 1,756,050 + 1,825,050) = Tk 6,913,800 7.7 Supporting Media Plan: For supporting media planning, the group only focuses on Billboards, since this vehicle is the most lucrative choice for reaching particular target segments.

Billboards provide an excellent tool for reaching specific target markets through efficient implementation at strategically selected locations. Billboards provide a superb tool for geographically modifying the message in order to deliver customized messages for specific target audiences. Therefore, the group considers an effective planning of billboards is indeed vital for attaining the communicational and marketing objectives.

Number of billboards to be established at specific Areas/Regions: Area/Location

Number of Billboards

Dhaka city

5

Chittagong city

3

Sylhet city

2

Rajshahi city

1

Khulna city

1

Barisal city

1

7.7.1 Cost of Setting Billboards: The plan therefore suggests the installation of 13 billboards @ BDT 350,000 each resulting in a total cost of BDT 4,550,000 per year; which is inclusive of the costs for Structure Making, Installation, Space Rent, Vinyl and Maintenance for one (1) year.

7.8 Trade Media Plan: In order to achieve better persuasive relationships with Trade Partners such as the Distributors, Wholesalers and Retailers, SCPL management requires a concrete strategy of dealing with Trade Media Plan. To that ends, the group has come up with an Integrated Strategy focusing on improving SCPL’s relationship with its Trade Partners.

The suggested Trade Promotional Plan includes the following key methods: 

Trade Allowances: Offering special allowances (cash or product allowance) to the trade partners to better motivate them in being more loyal accomplices.



Free Merchandise: offering gift items with products to be distributed to the Trade Partners to enhance their motivation of carrying out increased sales.



Training Assistance: Providing specialized training to the Trade Partners so that they can become more efficient in handing business operations.



Cooperative Advertising: Refers to setting up mutually beneficial advertising campaigns that serve the purposes for both SCPL and its Trade Partners [i.e. Distributors, Wholesalers and Retailers]. Examples of this practice includes – Flora Limited putting advertises of Compaq Computers in Bangladesh.



Selling Incentives: Tying specific incentives with particular sales objectives. Examples of this practice include – offering special discounts on their buying prices so that they can amplify profits.

7.9 Internet Media Plan: The Internet as an advertising Media has grown rapidly in the past couple of years. Internet is no longer an optional Media to be considered by advertisers, but it is rather a necessary Media platform to complement the existing Advertising strategy with its unique interactive characteristics.

The group suggests the following internet media strategy to be implemented by SCPL in the light of its existing internet advertising plans for the achievement of greater marketing and communicational objectives.

Current Practice Suggested Strategy Use of a single web-site to communicate with 1. Advertise in prominent Bangladeshi Webtarget market online.

portals (such as webbangladesh.com) 2. Use the internet to gather information

about consumers to better target them in the long run.

3. Put special link ads in the web-sites of content

offering

portals

(such

as

wap.gpworld.com) Finally, by the integrated and coordinated mix of all the aforementioned strategies, SCPL can expect to achieve the Advertising, Communication and in overall terms Marketing objectives for Radhuni Pure Mustard Oil. The group assumed their roles as Marketing Consultants in coming up with these detailed sets of analytical recommendations to strategically improve SCPL’s current Marketing, Promotional and Advertising activities in order to attain better sales results by effectively capturing more customers and increasing their levels of loyalty in the process.

7.9.1 Web Site: The creation of an effective as well as fully functional website is extremely significant for the achievement of strategic objectives of Square Consumer Products Ltd. Thus, the SCPL management should opt for creating a website which can fully carry out the functionality of being an effective IMC tool for enhancing the brand image of Radhuni Mustard Oil and thereby ultimately stimulate sales. The group has come up with the detailed strategic plans for implementing such a web site for SCPL which can actually help attain the specific objectivities desired from the websites.

The main objective of the Web Site is to maintain good consumer and trade relationships.

For those efforts, the interactivity and functionality of the web media has to be effectively utilized. The group suggests the following contents to be contained in the web site of Square Consumer Products which currently do not exist. It is to be noted that the web site effectiveness and Direct Marketing efforts are extremely closely intertwined. So, the measures specified here are also reinforced and further illustrated in the Direct Marketing Techniques section of the report.

The group has designed and completed developing a full-fledged Sample Web Site layout in HTML format for the strategic objectives to be fulfilled. The web site layout is provided in the APPENDICES section (APPENDIX-B) of the report.

The additional contents aimed at making the web site more effective strategically can be as follows: Specific web area created for Consumers, containing the following contents: a) Ordering Option b) Current Events c) Current Promotional Offers d) Participate in Events e) Subscribe for Newsletter f) Inquiry g) Sample Request h) Rate Products/Services Figure: Additional Contents consistent with the IMC plan to be put in the Web Site From the afore mentioned contents, it is clear that the group recommends that for properly communicating and interacting with consumers, the web site can potentially provide an excellent opportunity. The site provides the functionality for the consumers to order from anywhere in Bangladesh. It also informs them about various promotional offers that are currently taking place in the market. It lets them participate in various events organized by SCPL, request for samples of specific products subscribe for the informative newsletters, inquire about any issues and finally rate the products/services offered (specifically related to Radhuni Mustard Oil). The sample web site, in the APPENDICES section (APPENDIX-B), shows the contents in the website – targeted for consumers, with increased clarity.

The group also recommends and implements a dedicated area for the businesses (i.e. Trade Partners) of SCPL for attaining enhanced Trade relationships. The recommended contents designed for the Trade Portion includes the following: Specific web area created for Trade Partners, containing the following contents: Inventory Level: Order Subscribe for Newsletter Inquiry Sample Request

Current Promotional Offers Rate Products/Services Figure: Additional Contents consistent with the IMC plan to be put in the Web Site Once again, relevant and important communicational requirements exist like the level of inventory (stock) that currently exists. It also offers trade partners to make orders for products at specific times and quantities. The sample web site, in the APPENDICES section (APPENDIX-B) shows these contents with increased clarity. Then, similar to the Consumer Section of the web site, this section offers Subscription of Newsletters, Inquiries to be made, Product Sample Requests, Information about various currently running promotional offers, Ratings of products/services of SCPL etc.

Site Layout: The site is designed using interactive elements of the Hyper Text Markup Language – used for creating the sample web site. Various elements discussed in the aforementioned section have been strategically implemented at dynamic links of the site – which would facilitate the fulfillment of informational and communicational needs the management of SCPL needs for both its products’ consumers and Trade partners. The layout of the site is intuitive, easy-to-use, and functional at the same time. A careful design and theme is planned to be implemented which tends to achieve the objectives with an optimal degree of efficiency.

Stickiness of the Site: Sticky content refers to content published on a website, which has the purpose of getting a user to return to that particular website. To make the website more ‘sticky’, the group recommends the following items to be included in the web page: 1. Allowing consumer/trade groups to interact with each other in Virtual Chat Rooms.

2. Facilitating the development of various Online Forums for both consumers and trade partners.

3. Offer prompt replies to the inquiries that customers/trade partners make.

4. Provide a quality Frequently Asked Questions (FAQ) page.

Figure: Creating ‘stickiness’ for the site Cost: The overall costs for hosting a web site like the one we have recommended to be implemented has been deduced from agency information, and it is approximately Tk. 50,000

– 60,000 per year depending on criteria such as web space required and interactive contents used.

Cost source: Grey Advertising Sales Promotion Sales promotion consists of short term incentives to encourage immediate purchase or sale of a product/service. Whereas advertising offers reason to buy a product, sales promotion offers reason to buy it right now. Sales Promotion is a very important IMC element which stimulates brand switching and creates a short term escalation of demand for the product.

Therefore, the group has come up with a detailed set of strategies to be implemented by SCPL management to achieve positive results for the product Radhuni Pure Mustard Oil. There are two basic types of Sales Promotion 1. Consumer Sales Promotion and 2. Trade Sales Promotion We will utilize both types of ‘sales promotion technique’ to reinforce our product’s position and build long term customer relationships.

8.1 Consumer Sales Promotion Objectives: We will use consumer promotion to increase short term sales and to help build long term market share. The Sales Promotion will be used together with advertising, personal selling and other promotion-mix tools. The objective of this sales promotion are listed below 1. Increase sales by 10% in period of promotional offer.

2. Create a number of potential customers to switch their existing brands 3. Attract new customers to buy and 4. Stimulate current Selective Demand The Strategies to achieve these objectives can be summarized as: Many tools can be used to accomplish sales promotion objective. The main consumer tools include samples, coupon, cash refund, price pack, premium, advertising specialties, patronage reward etc. The Consumer targeted sales promotion techniques suggested by the group include the following: 1. Contests/Sweepstakes [Participate in contests to get attractive prizes]

2. Samples [Free sample bottles provided to customers at specific points-of-purchase] 3. Premium [Product Tagging: provide free other products from SCPL’s product line] 8.1.1 The Contests: SCPL would provide attractive rewards for winners of customer participatory contests. The contest would follow the following procedure: •

One must buy a 1 liter Radhuni Mustard Oil bottle and collect a ‘form’ from the seller to participate.

•

He/She would have to write why he/she uses Radhuni Mustard Oil

•

The person who writes the ‘best answer’ will get the reward: Two return air tickets to the winner [Dhaka to Bangkok] under certain conditions.

This is a Pull Strategy, where we spending on consumer promotion to stimulate consumer demand for the product. As a result consumers will demand more from the Retailers, and the retailers would eventually demand more from Whole Sellers. Finally whole sellers will make additional demand from the Manufacturer. The illustration of the process is as follows: Demand Producer

Demand Retailer Whole-Seller

Fig: Stimulating Demand by means of Sales Promotional Offers

Cost: Price of air ticket

= Tk. 25,000

Number of air ticket = 2 Total cost

= Tk. 50,000

Duration: The duration of this promotion would be two month.

Consumer

Timing: People love to travel at winter. So the best time for offering this promotion is in between January and February.

Justification: The rationale for using the contest strategy is to stimulate primary demand creation in the marketplace. Through this promotional technique, we can achieve increased sales objectives and in overall terms – an increased revenue from the product line – Radhuni Mustard Oil. 8.1.2 Samples: The promotional technique of Samples would be used for specifically targeted retail stores such as Agora, Nandan, PQS, Meena Bazaar etc. The basic idea would be to offer small packages of the product to particular type of customers – in an effort to give them the opportunity of ‘trying out’ the product’s quality. Thereby, this practice would eventually develop a positive image of the brand in consumers’ minds.

The strategy for providing samples can be mentioned as follows: •

Offer at specific large-scale Retail outlets (such as Agora, Nandan, PQS etc.)

•

The package size to be offered would be 40 ml bottles

•

The offer should be targeted only to the buyers purchasing products worth more than Tk. 500 from the Retail store concerned.

8.1.2.1 Costs for Sampling Promotion: A specially designed bottle of size 40 ml would be produced with the cost per bottle = Tk. 9.

A specific number of this special offer bottles would be provided to the following retail outlets and the associated costs are analyzed to be incurred: Number of Bottles 2000 bottles 1600 bottles 800 bottles 800 bottles Total number of bottles: 5,200

Retail Outlet Agora (2 outlets) Nandan (2 outlets) Meena Bazaar PQS (2 outlets) 8 outlets

Cost Tk. 18,000 Tk. 14,400 Tk. 7,200 Tk. 7200 Tk. 46,800

Timing: The promotional offer would be timed at strategic periods and last until the stocks exist. The offer would therefore be seasonal and made at periods of low-sales. This promotional offer would be made once a year.

Justification: The sample offer would produce a great opportunity to create a better brand image as well as building better relationships with the trade partners i.e. the retailers.

Ultimately, the consumers are being increasingly satisfied with the company’s practices – which are boosting the loyalty of the customers.

8.1.3 Premium/Tagging Offers: The SCPL management can consider the following strategy to be implemented for attaining product tagging objectives: •

With each 1 liter bottle, the buyer gets 1 small pack of ‘Ruchi Chanachur’ free

•

With each 500 ml, the buyer gets 1 mini pack of ‘Ruchi Chanachur’ free

•

With each 250 ml, the buyer gets 1 mini pack of ‘Ruchi Daal Vaaja’ free

The Costing strategy can be summarized as follows: Container 1 liter 500 ml 250 ml

Free Offer 7,000 small packs of ‘Ruchi Chanachur’ 15,000 mini packs of ‘Ruchi Powdered Spice’ 30,000 mini packs of ‘Ruchi Fried Dal’

Cost Tk. 105,000 Tk. 150,000 Tk. 150,000 Total: 405,000

Timing: The Offer would be provided for a very limited period of time, basically the offer would be given at the off-seasons for the sale; basically, as Summer Offers or seasonal promotional offer. This offer would be offered once a year.

Justification: The main rationale for using this sales promotional plan is to stimulate a desire in consumers to get greater value for the money they spend. The offer would stir demand for the product and stimulate increased sales of not only Radhuni Mustard Oil, but also the other product lines of SCPL. Finally, our promotional strategy needs to be consistent with our high-cost high-quality product strategy. As long as the quality offered is premium, the product would deliver the highest standards in the market, the costing would also be high to carry image of the brand.

So, we can not use techniques such as coupons which give buyers a saving when they purchase a specified product or price pack where reduced price is marked by the producer directly on the label of package. In fact price reduction might confuse our target customers who prefer premium product quality.

8.1.3.1 How we benefit from this strategy In marketing there is nothing free. In fact we got more than we pay.

•

We can gather ‘ideas’ for the advertisement through the contests.

•

We do not need to pay the advertising agency for creative ideas generated.

•

Consumers can positively perceive the product Radhuni Mustard Oil.

•

The management can understand what consumers think about the product.

•

It will cost less than other promotional strategies.

8.2 Trade Sales Promotion: Objectives The objective for trade promotion include the following •

Increase the sales up to 15% with this promotional strategy.

•

A push strategy is implemented by thrusting the product in the distribution channel.

•

Getting retailer to carry more inventory for increased sales.

•

Getting the trade partners to advertise the product.

•

Give the product more ‘shelf space’ and

•

Making the trade partners (wholesalers and retailers) to buy ahead.

The Trade Promotional Offers would include the following: 1. Trade Incentives/Discounts: targeted mainly to Wholesalers, Distributors and Retailers.

2. Trade Allowances: targeted to Distributors, Wholesalers and Retailers.

3. Fixed Cash Incentives [to selected large-scale retailers]

8.2.1 Trade Incentives/Discounts: The Trade incentives programs will include the offer of fixed percentage incentives for distributors, wholesalers and institutional retailers. The SCPL management can opt for a 5% incentive plan on the buying price of the products purchased by the trade partners. So, the trade partners can actually enjoy a discount of about 5% on their buying prices. So

strategically, the distributors/wholesalers/retailers by attaining products at 5% reduction in costs, are achieving increased profitability.

Timing: The offer would be seasonal in nature, and made no more than twice a year.

Duration: The offer would last for a period of approximately 1-2 months.

Justification: The technique would facilitate the ‘push’ strategy to be attained for increased sales. The strategy would also provide better trade relationships to be established with the trade partners of SCPL. Cost: 5% of the revenue earned from trade partners.

8.2.2 Trade Allowances: Trade allowances will be offered on the basis of the distributors/wholesalers/retailers performance levels. The allowances are offered at a percentage of sales method – where the distributor, wholesaler or retailer gets 2-5% the products they demand as (extra) allowance.

Thereby, this strategy would stimulate the trade partners to demand more products in the expectation of getting more allowances.

Timing: The offer would last for a limited duration and made no more than twice a year.

Cost: The cost incurred for running this promotional plan is approximately 2-5% of the Sales Revenues generated from distributors/wholesaler/retailers.

Justification: The push strategy is once again applied. The product is being pushed in the distribution channels to achieve greater sales results.

8.2.3 Fixed Cash Incentives for Large Scale Retailers/Cooperative Advertising: We offer a promotional cash incentive to retailers for an agreement to feature the brand Radhuni Pure Mustard Oil product in their outlets.

Strategy: A lump some amount would be provided cities’ biggest retail stores to promote the product more lucratively.

Cost: We will give Tk. 10,000 to each of the big retail stores like Agora, Nandan, Meena Bazaar etc.

Name of the Retail Store

Number of units

Allowance

Total

Agora

2

10,000

20,000

Meena Bazaar

1

10,000

10,000

Nandan

2

10000

10,000

Total cost = Tk. 20,000 + Tk. 10,000+Tk. 10,000 = Tk. 40,000 Cost Information Source: Grey Advertising Ltd. Timing: This promotional offer would be offered once a year.

Justification: The contemporary practices of Trade Incentives plans facilitate the execution of ‘push’ strategy, but the use of Cooperative Advertising technique enhances the long term relationship with the Retailers and enhances joint-venture collaboration.

8.2.4 Point-Of-Purchase Advertising: Point of Purchase advertising basically refers to materials used in the retail setting to attract shoppers’ attention to a brand, to convey primary product benefits, or highlight pricing information.

For the concerned brand - Radhuni Pure Mustard Oil, the group analytically assumes the following objectives to be attained from an effective POP strategy development: •

Draw consumers’ attention to the brand in the retail setting.

•

Maintain purchase loyalty among users.

•

Stimulate increased or varied usage of the brand.

•

Stimulate trial use by users of competitive brands.

Strategies for obtaining the above objectives are as follows: 1. Drawing Consumers’ attention in the retail setting: By properly setting up eyecatching and interesting advertising flyers, banners and posters at various key retail outlets, the consumers’ attention can be drawn towards the brand. This is achieved by selectively advertising at the sales point of various retail outlets such as Agora, Nandan, PQS, Meena Bazaar etc. so that customers are frequently exposed to the brand advertisements.

2. Maintaining Loyalty: The use of effective promotional offers and premium quality will eventually lead to the creation of loyalty among customers for prolonged usage of the product.

3. Stimulating Increased usage: Increased usage is stimulated by the strategy of offering sales promotional offers at regular intervals to give the customers the reason to buy right-away. The sales promotional offers are advertised effectively at the points of purchase and the shelf alleys of the retail stores.

4. Stimulating trial use: To stimulate trial use by users of competing brands, Sales Promotional Techniques like Samples would be provided to those potential customers at various retail stores. This is how an effective switching of those customers can be achieved, and those customers can be retained as by providing them with the premium product quality.

The Costs associated with the Implementation of POP Strategies: Retail Store Agora

Placement 1 big flyer @ Sales Counter

Costs 10,000 × 2 = 20,000

2 outlets Nandan

1 flyer @ Product Alley 1 big flyer @ Sales Counter

5,000 × 2 = 10,000 10,000 × 2 = 20,000

2 outlets PQS

1 flyer @ Product Alley 1 big flyer @ Sales Counter

5,000 × 2 = 10,000 10,000 × 1 = 10,000

1 outlet Meena Bazaar

1 flyer @ Product Alley 1 big flyer @ Sales Counter

5,000 × 1 = 5,000 10,000 × 1 = 10,000

1 outlet

1 flyer @ Product Alley

5,000 × 1 = 5,000

Total Cost: 30,000 + 30,000 + 15,000 + 15,000 = Tk. 90,000

8.2.5 The Integration of Sales Promotion & POP Advertising with Other IMC Elements: The Sales Promotion & POP advertising strategies are closely interlinked with the other IMC elements formulated by the group. The integration can be summarized as follows: •

Advertising: The various Sales Promotional offers (both Consumer & Trade Promotion) are going to be effectively advertised at various Print and TV medias. The regular media plan obtained and Media slot bought by the company will be used to circulate/air these promotion offers.

•

Web-Sites (Interactive Marketing): The Website can serve a great role by facilitating various promotional offers to be carried out by both providing the information to

interested parties and by facilitating the participants (e.g. of the contests) to be registered via the internet using the website’s dynamic features.

•

Public Relations/Publicity: The PR activities would disseminate information about the promotional activities and make the people more aware of the activities.

•

Event Sponsorship: Promotional Offers would be integrated with certain Events to achieve better results, like – discounts during the ‘Radhuni National Cooking Contest’ or free samples at the venue during ‘Radhuni Pickles Festival’

•

Direct Marketing: Promotional offers can serve as a basis for making more structured databases for the Direct Marketing approaches.

Three Sample Promotional Pieces designed and prepared by the group are as follows: 9.0 Event Sponsorship and Branded Entertainment Objectives of the Event Sponsorship: Event Sponsorship is an element of IMC which is associated with involving a marketer to provide financial support to help fund an event. The objectives of event sponsorship for promoting a brand could be viewed from aspects such as media coverage, exposure, sales, brand loyalty and attraction.

Thus the objectives of event sponsorship for Radhuni Pure Mustard Oil brand, explained by classification as follows.

1. Media Coverage: As our brand is in the growth stage of the product life cycle, so we need more media coverage.

2. Exposure: To make effective exposure of the brand to the related class of consumers.

3. Sales: To create brand loyalty - converted to sales results by arranging more events.

4. Brand Loyalty: To create brand loyalty among the targeted customers, this can be fostered by events.

5. Attraction: To attract well-defined audiences.

9.1 The Events to be Sponsored: Actually, we are recommending the events based on the brand attributes, target audience and specific messages which are needed to deliver value to the target groups.

To enhance our brand image and increase the sales of the product we are offering 3 Event Plans which are related to the brand and the target market.

Event 1: Radhuni Pure Mustard Oil National Cooking Competition Objective: First of all “Radhuni Pure Mustard Oil National Cooking Competition� is an event which totally matches with the brand. Secondly, it is an event which is targeted to our major segmented group- female customers. Thirdly, to convey a message to the customers about the taste and health associated with the brand.

There will be some offers in the event which attract the maximum amount of female consumers of our targeted group and make a long-term impression in customers mind about the product.

Timing: It will be a two-day event. Basically the plan is to arrange this event once a year.

This is done to create a permanent brand image of the product through effective implementation. This event will be held in Dhaka city.

Costs: In this case we are funding an event as the title sponsor of the program. We are going to give the organizing job to our enlisted agency and we have to pay the agency Tk. 500,000 for the sponsorship of the event.

Integration with other IMC elements: Event sponsorship is directly related with other IMC elements. When an event is occurred there needs an association of other all integrated marketing communication components as vehicle.

Advertising: Print Media Newspaper Magazine Leaflets Posters Electronic Media BTV ATN Bangla

Timing Two days before starting of the event.

Seven days before in the weekly and after the event in monthly about the succession of the event.

Just two days before starting of the event.

Once three day before the event then again one day before the event.

Timing Two days before the event before News at 8:00 PM Two days before the event before News at 7:00 PM and in the mid break of mega serial once before the event.

NTV

One day before the event before News at 7:30 PM and in the mid break

Channel i

of Siddiqua Kabir’s Recipe twice before the event.

One day before the event regularly before News at 10:30 PM and in the mid break of mega serial once before the event.

Web Site: Already we have proposed a format of separate web site for ‘Radhuni Mustard Oil’. In the web page there will be information available from at least two weeks before the event and also the procedures to participate in the competition.

POP Advertising: Our enlisted large-scale Retailers (e.g. Agora, Nandan, PQS etc.) have already holding different kinds of POP of the brand. We have to deliver event related POP to those stores and also we have to fix some more outlets to where we can put our event related POP. Public Relation: There will be a press conference before the event.

Event 2: ‘Radhuni Pure Mustard Oil Pickles Festival Month’ Objective: In this event we would like to cover the whole target group of the country. The event will occur in the following cities: Dhaka, Chittagong, Sylhet, Rajshahi, Khulna and Barisal city The main objective of sponsoring this event is to deliver a plot line to make a massive reach to the whole country and that is why the event will be held in every division of the country.

Timing: The proposal of the group is to arrange a one month long program for this event.

The time schedule is distributed in different cities based on the target customers.

Dhaka city

3-day event

Chittagong city

2-day event

Sylhet city

2-day event

Rajshahi city

2-day event

Khulna city

2-day event

Barisal city

2-day event

Fig: The Planning of the Event Duration

The event will start from Dhaka city and end up at Barisal city. It will be organized in a way that it will last a whole month. This is one of the biggest and vital events of Radhuni Pure Mustard Oil and the event will be held once in a year.

Costs: The agency will arrange the whole events in the country during the month.

Negotiation of the payment between the agency and the brand will be fixed – based on the city concerned. The payment criteria can be quantified as follows: Place

Time

Amount of Payment

Dhaka city

3-day event

Tk 250,000

Chittagong city

2-day event

Tk 200,000

Sylhet city

2-day event

Tk150,000

Rajshahi city

2-day event

Tk 150,000

Khulna city

2-day event

Tk 150,000

Barisal city

2-day event

Tk 150,000

Cost Information Source: Grey Advertising Limited.

Total Cost: Tk. 1,050,000 Integration with other IMC Elements: Advertising: As it is a huge event, so a special concentration on the exposure and media coverage will be needed.

Print Media Newspaper

Timing Five days before starting of the event and two days before starting of

Magazine

the event.

Seven days before in the weekly and after the event in monthly about

Leaflets Posters Electronic Media BTV ATN Bangla

the succession of the event.

Just two days before starting of the event.

Once three day before the event then again one day before the event.

Timing Two days before the event regularly before News at 8:00 PM Two days before the event regularly before News at 7:00 PM and in the

NTV

mid break of mega serial once before the event.

Two days before the event regularly before News at 7:30 PM and in the

Channel i

mid break of Siddiqua Kabir’s Recipe twice before the event.

Two days before the event regularly before News at 10:30 PM and in

Support

the mid break of mega serial once before the event.

Media Three days before the event in every division of the country

(Billboards) Web Site: The information will be available on the web site – at least one month before the event along with the procedures to attend in the festival. There will be an arrangement of relevant quizzes of the festival and rewarded system.

POP Advertising: Our enlisted institutional Retailers (e.g. Agora, Nandan, PQS etc.) have already holding different kinds of POP of the brand. We have to deliver festival related POP pieces to those stores and also we have to fix some more outlets where we can put our event related POP pieces. To coordinate this festival, there will be some more POP displays in the different locations of the country.

Public Relation: There will be a press-conference before the event in different division of the country.

9.2 Product Placement: The term product placement comes from branded entertainment and the advantages which could be taken from popularity, celebrity attachment and related aspects.

Objectives of the Product Placement: Basically, product placement is embedding a brand or brand symbol in entertainment programming. The basic objectives and source of product placement and branded entertainment are as follows: 

To place the brand into the content of an entertainment product.



Agents, marketers, producers and writers are finding ways to incorporate brands in movies, short films, on the Internet, and reality TV.



Anywhere and any time people are being entertained; there is opportunity for branded entertainment.

Radhuni Pure Mustard Oil has a great opportunity to place the brand into the content of an entertainment product, in reality TV shows and at slots in TV programs where there is any relevance of the brand.

The costs and placement strategies to promote Radhuni Mustard Oil can be mentioned as follows: Fields

of

Product Costs

Placement Siddiqua Kabir’s

Placement

Tk. 15,000 (per time The product has to push where there is

Recipe used on the show) a use of Mustard Oil in the program “Radhuni Pure Mustard Tk. 7,500 (Per news The product has to place in the Oil Break” Mega Serial

break ) evening news session.

Tk. 7,500 (Per use of The product has to push where there is Mustard Oil in the a use of Mustard Oil in the serial.

Cooking

Serial) Training Just there needed free Suggesting more using Mustard Oil in

Classes

delivery of the product the cooking classes. and good connection to the trainer.

Total Monthly Cost for Product Placement: [Siddiqua Kabir’s Recipe (Tk 15,000 × 4 = Tk. 60,000), Radhuni Pure Mustard Oil Break (Tk. 7,500 × 30 = Tk 225,000), Mega Serial (Tk. 7,500 × 4 = Tk. 30,000)] Total Cost: Tk. 60,000 + Tk. 225,000 + Tk. 30,000 = Tk. 315,000 At the end of strategic recommendations, a requirement is to follow-up what SCPL is currently doing and what practiced are being suggested.

Event Sponsorship Current Practices Recommendations No practice of event sponsorship for We are suggesting two events which matches the the brand Radhuni Pure Mustard Oil.

brand reach to the target market such as Radhuni Pure Mustard Oil National Cooking Competition  Radhuni Pure Mustard Oil Pickles Festival Month

Branded Entertainment Current practices Recommendations Promoting products on the programs But we recommend that there needs to be some

like – Siddiqua Kabir’s Recipe.

more placements for the brand such as Radhuni Pure Mustard Oil Break – in News  Use of the brand in the mega serial.  Use of the brand in the Cooking Training Classes.

Two Sample Promotional Pieces intuitively designed by the group for the two Events described are provided as follows: Direct Marketing Direct Marketing is a basically system through which organizations directly communicate with its target customers. It is the ‘total activities’ of the sellers, in effecting the exchange of Goods & Service for the purpose of creating a direct response. Direct Marketing is therefore associated with the objectivities of closing sales, identifying potential customer bases, engaging customers’ opinions in business practices and eventually generating brand loyalty.

According to a Marketing Executive of SCPL, Mr. Obaidul Haque, currently Direct Marketing of SCPL’s products is being done for Large Scale Retailers such as Agora, Nandan, PQS and other mega-shops (which they call Institutional Retailers). In addition to that, the group recommends that: the management of SCPL can consider Direct Marketing for attaining better sales results by extending current practices to encompass more outlets so that the sales volume increases eventually.

In the modern context, Direct Marketing is getting more and more intertwined with the concept of – Database Marketing. Basically, Database Marketing is the use of specific information about individual customers and/or prospects, to implement more effective & efficient marketing communications. Database Marketing efforts can start off with the efficient implementation of making a consumer & trade database system, which can help SCPL to maintain better tracks of its existing and potential customers to provide them better valued offers. The effective implementation of a coordinated database system will also facilitate the company to improve its selection of the target market, make more crosssales, stimulate repeat sales and improve customer-relationship management.

Therefore, the SCPL management can opt for Direct Marketing plans to improve the overall effectiveness of its current IMC plans. To that ends, the group suggests the following Direct/Database Marketing strategies to be implemented by SCPL management: Direct Marketing Recommendations: 1. Introduce the formation of a Dynamic Customer Database.

2. Periodically send ‘Direct Mails’ to the customers with information on ongoing Promotional activities (e.g. Discounts, Coupons, Samples, Premiums, Rebates etc.).

3. Design the Website – such that it is more engaging and fun to browse, and at the same time offers the company with vital information - regarding prospective customers.

4. Provide more B2B information on the websites for increased ease of communication with Trade Partners and other interested business parties.

5. Provide frequent incentives in direct channels to business partners (through B2B channels and web resources).

In overall terms, the SCPL can capitalize on the power of Direct Marketing to enhance sales and customer as well as trade relationship management techniques to eventually make the brand Radhuni Pure Mustard Oil a premium name in the industry and similarly perceived by both its customers and trade partners.

For achieving Database Marketing objectives the following recommendation is suggested by the group: running consumer promotions in Press and in Retail Levels – Inviting Consumers to participate in various Contests. This can later form the basis for a wellmaintained Consumer Database and Reward-based Events to be arranged. Finally, generation of word-of-mouth communication can be done and brand ambassadors can be created from the target groups.

Finally, we can sum up the Consumer related Direct Marketing approaches as follows: Strategy 1. Direct Mails to selected customers

Timing Throughout

year 2. Telemarketing (using toll-free numbers) Seasonally 3. Infomercials Occasionally 4. Bind in insert cards in Magazines Occasionally 5. Online Ordering option on the website Continuously Costing Information Source: Grey Advertising Ltd.

Costs the BDT.50,000 BDT.20,000 BDT.100,000 onwards BDT.100,000 onwards N/A

Total Cost: Tk. 270,000 Justification: The rationale for using the above strategies is that they can convincingly ensure improved marketing results to be obtained from efficient implementation. So, Radhuni Mustard Oil can indeed benefit from applying the above strategies. The costs mentioned have been intuitively predicted, and are subject to appropriate quantification depending on the type of application of the strategy.

The Trade related Direct Marketing approaches/strategies can be suggested as follows: Strategy 1. Relevant B2B information on the website 2. Business order placement on the internet 3. Sampling options on the web site 4. Frequent Business Newsletters to Trade

Timing Continuously Continuously Continuously Continuously

Cost N/A N/A N/A BDT 50,000 onwards

partners.

Once again, the aforementioned strategies can impact the Radhuni Mustard Oil’s brand Image positively, and facilitate achieving its marketing objectives.

Integration with other IMC Elements: The Direct Marketing efforts need to be seamlessly integrated with all other IMC elements. This is ensured owing to the fact that since the strategies make it clear that a level of coordination requires to exist between the Direct Marketing efforts and other IMC elements such as Sales Promotion (both for consumers and trade partners) and Internet & Interactive Media plans (such as the design, layout and functionality of the website). Thus, the Direct Marketing efforts are closely linked with other IMC elements offered by the group.

The following is a Direct Marketing Sample: A Direct Mail which is sent to the Consumers in SCPL’s central database. The Direct Mail contains a promotional coupon which offers a 10% Discounts if shown to any retailer of the country.

Sample Direct Marketing Piece: Direct Mail: DEAR VALUED CUSTOMERS SQUARE CONSUMER PRODUCTS has recently achieved the ISO:9001 certification for its products. On this auspicious occasion, we are providing you with a

complementary voucher which you can present to any retailer of the country and receive a 10% Discount on your purchase!

Cut the tear-out portion of this mail and enjoy this limited period offer valid only for 2 weeks from now!

----------------------------------------------------------------------------------------------------------------

Public Relation and Publicity Public Relation Activities basically refers to communication that can foster goodwill between a firm and the many constituent groups it works with. We have already mentioned that currently Public Relations efforts of SCPL are negligible or ambiguous in nature. But it is crucial for the company to have a very effective Public Relation strategy to gain a competitive advantage over the competitors and to create a very positive brand image. The group suggests some public relations and publicity activities to be performed, targeted both for consumers and trade purposes.

11.1 Public Relations for Consumers Objectives: The objectives of Public Relations for the consumers include: 

To create a Positive Image about the Brand and Company in Consumers’ minds



To let the consumers know about important product achievements



To let the consumers know about the ‘events of public interest’ which are sponsored by SCPL.

To achieve the objectives, the following strategies are recommended to be implemented: 1.

Creating positive image about the company: The group suggests that the public relations programs will stimulate consumer’s knowledge about the product. The company can also carry out a Press Release about the findings by the inspecting Magistrate, stating that the environment of the factory is very hygienic and the materials used to produce the mustard oil are fresh, healthy and hygienic. The company can also state that, according to the Magistrate, the whole system was

examined and nothing unhygienic was found. This kind of positive information would let the consumers feel very safe and secure and this feeling would ultimately help to create a positive brand image in consumers’ minds, and thereby boost the brand loyalty.

2.

Informing the consumers about important company achievements: The product’s achievements such as its certification of ISO:9001, Phyto-Sanitation etc. can be released via press releases to facilitate more confidence and trust of consumers towards the brand and the company. The achievements can be informed by either Press Releases and/or Press Conferences.

3.

Informing the consumers’ about Public Awareness/Interest Events: The SCPL management has to effectively inform consumer groups about the Public Awareness/Interest campaigns undertaken. So, the management can opt for suitable Press Releases and/or Press Conferences to disseminate relevant information about such practices.

COST: Press Release: Name of the Newspaper

Cost for Press release

Daily Prothom Alo

BDT. 15,000 onwards

Daily Ittefaq

BDT. 15,000 onwards

Daily Jugantar

BDT. 15,000 onwards

The Daily Star

BDT. 15,000 onwards

The Observer

BDT. 15,000 onwards

Cost Information Source: Square Consumer Products Marketing Dept.

Total: BDT. 175,000 Sponsoring the events of public value will generate interest about the product in consumers’ mind and people will be more involved. For instance, the females are the primary target for this product. So consumers’ participatory events like: ‘Radhuni Cooking Competition’ can be arranged throughout the country. This will certainly generate a great amount of interest about the product among the female customers. The management can also consider arranging ‘Male Chef Hunt’ events – similar to Grameen Phone Pacer Hunt.

Sponsoring such events will undoubtedly generate interest among various consumer groups.

The company will sponsor the whole event and to back it up, it will give some suitable ads in the Print & Electronic Medias. The program will be performed in BTV which has a reach of more than 80 percent of the total population so that it gets the highest reach and also throughout the country. The reason behind choosing BTV is getting the highest coverage.

While choosing the other satellite channels will definitely not fulfill the intention of highest reach. To back up this program, the company can put some ads in popular daily newspapers like: The Daily Prothom Alo, Daily Ittefaq and The Daily Star to get the highest reach and also in magazines like: Jai Jai Din (weekly) magazine.

Also some ads can be put in the ATN Bangla Channel (which has the highest reach among the satellite channels of more than 25% of the total viewers) for the people who don’t watch BTV, so that they know about the Radhuni Cooking Competition that is being aired on BTV. The group also suggests that the company should contract with some of the writers of the local newspapers. The writer will disseminate positive information about the product such as “THE MOST HYGIENIC MUSTARD OIL IN THE MARKET”. Also some informative writings and Infomercials can be made to reveal that the best ingredients are used to make the product of RADHUNI MUSTARD OIL. This type of positive information and writings by the writer will create a very strong positive image about the brand in consumers’ minds.

11.2 Public Relations for Trade: Public relations targeted for trade partners are absolutely different from public relation for consumers. The objectives and strategies to follow are also different from PR for consumer.

Objectives: The objectives of PR for trade partners include: 

To maintain a good relationship with the trade partners.



To keep up the satisfaction of the trade partners by providing rewards.



To improve the knowledge of the trade partners so that this can enable them to pass positive information about the product to the consumers and create a positive image and stimulate the selling growth.

The Trade centered strategic PR activities include the following

1. An Annual Dinner Party for all Trade Partners 2. Rewards for best performing Trade Partners 3. Training sessions for the Trade Partners 11.2.1. Annual Dinner Party: The group suggests some Public Relation activities to be performed for achieving the objectives. The group suggests that the company can arrange a dinner party for all the employees including the salesman, retailers, distributors, media partners and etc. The motive of this dinner should be that everyone will have dinner together to maintain a healthy relationship among them. MGH group has followed this Strategy for improved business relationship with the trade partners, and it is working pretty well for the company. Currently they are working like a family and the selling has gone up in recent years. The group suggests the company to arrange this kind of dinner program along with some cultural program. This program will help all to share their emotion and feelings with others and to create family like environment. For the Dinner Party an estimated 500 people will be invited.

Timing: The Dinner party is an annual program.

Cost for the Dinner Party: Estimated food cost would be Tk. 250 per person. Therefore, total estimated expenditure for dinner (along with the venue) is Tk. 125,000.

11.2.2. Trade Rewards: The company would provide performance based rewards for the best wholesalers and retailers for the year. The rewards will be announced at the Annual Dinner Party.

Timing: The rewards would be offered once a year.

The costs associated with the rewards can be calculated as follows: Reward :

Number of person

Reward

1. For Best Wholesaler

5

Distributor/Retailer 25,000

Tk. 125,000

2. For Best Retailer

2

25,000

Tk. 250,000

Total Cost: 125,000 + 250,000 = Tk. 375,000 11.2.3. Training Session for Trade Partners:

per Total

The group suggests that the SCPL management should provide some training for the trade partners to make them more informed and updated about the product information. This will help them maintain a strong image about the product as they deal with various customers and other interested groups. The number of people provided with the training is 500 for each session.

Timing: The training session will be conducted twice a year.

Duration: The training session will be a two-day program.

Lecture Costs: The cost for providing per lecture is Tk. 50,000 [including venue rent, lecturer compensation and snacks for the participants].

Corporate Social Responsibility: An important way to be involved in the PR is by conducting Corporate Social Responsibility activities. The Company can raise its voice against the un-hygienic food products which use of un-healthy and harmful chemicals in the manufacturing process. An important awareness campaign carried out by SCPL can be: “RAISE YOUR VOICE AGAINST UNHYGIENIC FOOD PRODUCTS”. The campaign has to be supported by specific news and information disseminated at various Electronic & Print media.

For achieving the awareness creation objective, different Seminars, Symposiums, Open Discussions etc. can be organized. Various local experts can be invited to conduct these activities. This would ultimately produce a positive impression about the company and the brand in the minds of the groups interacting with the company.

SCPL management can put some ‘Awareness Ads’ in billboards throughout the country.

This will get the public appreciation and ultimately can result in making the consumers feel safer and more confident about product and company.

For CSR activities to be effective Billboards should be setup in some divisions of the country.

Division Dhaka Chittagong Sylhet

Number of Billboards 2 1 1

Cost 2 × 150,000 = 300,000 1 × 150,000 = 150,000 1 × 150,000 = 150,000

Total CSR Cost: Tk. 300,000 + 150,000 + 150,000 = Tk. 600,000 Sample Press Release: Press Release

The Square Consumer Products Ltd is pleased to inform all of our valued customers and trade partners that the inspecting magistrate has found our premises and manufacturing processes to be hygienic and compliant with all the national regulations. According to his reports, a healthy environment prevails in our factory premises and we are maintaining very high standards for producing the best quality food products in the country.

We would like to inform our customers and trade partners that we are always against the use of all the unhygienic practices and harmful chemicals. We look forward to your valued support and cooperation to successfully continue and go ahead in the future.

Director Square Consumer Products Administration Dept

12.0 Evaluation of the Promotional Plan The evaluation of the Promotional Plan has to be carried out in order to measure the overall effectiveness of the strategies implemented or thought to be implemented. For that purpose, both Pre-testing and Post-testing of the Advertisements and other Elements of the Promotional Mix have to be conducted in order to ensure that the ultimate objectivity of properly communicating with the target market is achieved and sales stimulation from those techniques is attained.

The following are the reasons to measure effectiveness of the Promotional Mix: 1. Avoid Costly Mistakes: Avoid making wrong investments in ad/media selection.

2. Evaluate Alternative Strategies: In terms of both choosing message and media vehicle.

3. Increase Efficiency: Efficiency in terms of choosing message and media.

4. Determine if Objectives are Achieved: Measuring if objectives are being met.

(Belch, 2004) The following section deals with the evaluation methods (both pre-tests and post-tests) contemplated to be used by the group: 12.1 Testing of Advertisements:

Before any advertisement campaigns is actually launched, the management of SCPL should consider pre-testing them to evaluate the effectiveness associated with it. The group suggests the following Pre-testing commercial services:

12.1.1 Pre-tests for Print Media: Dummy Advertising Vehicles: Dummy magazines are developed with print ads and distributed among a selected number of respondents. The evaluation will be done on the basis of the ads’ impressions on the respondents in terms of appeal, message communication, design and layout of the ad.

Fig: Pre-test method suggested for Print Ads 12.1.2 Post-tests for Print Media: Effectiveness of Advertisements requires to be measured also after ads are launched.

1. Recall Tests: A number of respondents at specific locations will be asked if they can recall any print ad of Radhuni Mustard Oil published in newspapers or magazines. This would identify the level of awareness generated in target consumers’ minds regarding the brand.

2. Recognition Tests: Here the analysis would be triggered to find information regarding the level of appeal the ads create in consumers through the use of AIDA model [attention, interest, desire, action (purchase decision) formation.

Fig: Post-test methods suggested for Print Ads 12.1.3 Pre-tests for TV Commercials: TV commercials require to be tested for effectiveness in order to efficiently achieve the results intended by SCPL. Therefore, before a TV commercial is actually launched, it requires to be evaluated. The group suggests the following pre-testing methods for electronic ads: 1. Theater Tests: Specific number of respondents can be chosen from the target market as representative samples and free theater tickets distributed to them. During the event, new

commercials of the brand can be displayed, and thereby, respondents’ feedback regarding the effectiveness of the commercials can be obtained.

2. On Air Tests: SCPL management can consider to air the new commercials at specific locations before nationally launching the ad. Specific Cable TV operators of certain locations might be contracted for this purpose, and through this, selected respondents’ feedback about the ads can be found.

Fig: Pre-tests methods suggested for TV Ads 12.1.4 Post-testing TV Commercials: For testing the effectiveness of commercials that have been already launched, the group suggests methods to improve the current practices and enhance the effectiveness of campaigns to be launched in the future. For that purpose, the group suggests the following post-testing methods: 1. Day-after recall tests: Respondents’ are surveyed after the day an ad is launched at specific locations, the respondents being representative samples of the Target Market. The rate of recall would suggest the effectiveness of the ad in general.

2. Surveying at Public Places: A survey can be conducted at specific public places: e.g.

Superstores, Shopping Malls, Bus/Train Stations on a large sample, and feedback of the respondents analyzed to uncover degree to which people liked/disliked in terms of both idea and execution of the ad launched. This is how SCPL management can obtain a concrete measurement of the impressions that the ads are creating on its target market.

Fig: Post-tests methods suggested for TV Ads 12.1.5 Costs for Pre-tests & Post-tests of Advertisements: An agency would be contracted to perform the aforementioned testing processes, and the overall cost for that contract has been assumed by the group to be Tk. 500,000.

This assumption is made owing to the fact that no verifiable information regarding costs for using these effectiveness measuring programs can be found. According to the Advertising Agency Grey, this amount is approximately taken for testing purposes by agencies.

12.2 Evaluation of Other IMC Elements:

Effectiveness Measuring Systems have to exist for all IMC elements for proper achievement of objectives of the Promotional Plan. So, companies are opting for more Synergistic Effects to attain its overall Marketing Communication Visions. The group suggested the following techniques and methodologies to be implemented for properly assessing the effectiveness of other IMC elements: Web Site: The site contains the option for users to rate its level of usefulness and ease of use.

Through the users’ ratings, the effectiveness of the web site can be measured.

Direct Marketing: Web surveys and online rating of SCPL’s products and services can be achieved – giving the management a clear picture of the degree of effectiveness of Direct Marketing practices.

Sales Promotion: The effectiveness can be measured by the level of sales generated during a promotional

offer.

Another

indicator

is

the

level

of

inventory

demanded

by

distributors/wholesalers/retailers during the promotional offer.

Event Sponsorship: Surveys during various events can reveal vital information about the brand awareness of Radhuni Mustard Oil during the Events sponsored by SCPL. Public Relations & Publicity: Surveys conducted among representative samples of the Target Market can efficiently give a solid indication of the Public Relation & Publicity measures’ effectiveness.

Fig: Evaluation techniques for other IMC Elements 12.2.1 Costs for Implementation: No cost is associated with the Web site or Direct Marketing elements, since the measurement is being done on the Internet and the amount spent for the Web site is already Costs Associated with the implementation of these Methodologies: according to our assumption, is not currently available. But the group considers making a contract with an Advertising Agency, and using its expertise to perform the measurements. This would approximately cost the SCPL management Tk. 200,000.

The cost figure, is assumed from ambiguous information provided by Grey Advertising Agency, and therefore is tentative in nature.

Total Costs for Evaluation: Tk. 500,000 + Tk. 200,000 = Tk. 700,000

Overall IMC Budget For the budget of our overall IMC plan, we had used the ‘objective and task method’. The first step of the budget was to identify Integrated Marketing Objectives required to be attained. Then, identification of the tasks need to be accomplished to meet those objectives are strategically recommended. Finally, the costs required for of carrying out the tasks are measured by means of information obtained from both Square Consumer Products Marketing Department and the Agency information. At last, the overall budget is calculated based on these specific costs.

Justification: The group has mentioned the significance of specific Promotional Elements and mechanisms of implementing them. The calculation of ‘Reach’ and ‘Frequency’ of specific techniques has been mentioned with detail. Therefore, summing up the overall costs for the recommended practices renders the preparation of the overall IMC Budget. The budget also considers the Product Life Cycle stages for the brand and it is owing to this reason, the amount for Promotional Budget varies among the months. The detailed budgetary calculations performed by the group are as follows: 13.1 Assumptions undertaken for formulating budget: Following the Product Life cycle, the requirement for advertising in various medias also undergo variations. For that purposes, the ‘Frequency of Advertisements’ as well as Budgetary Requirements vary along the PLC. Keeping this in mind, the group has suggested a steady reduction of budgetary necessities in the eventual phases of the IMC plan. Therefore, the suggested mechanism in reduction of the budget through the phases is specified in the following section – along with the calculation of the IMC Budget for one year.

The Source of Cost Data: The cost figures used by the group are obtained from Square Consumer Products – Marketing Department and Grey Advertising Agency.

13.2 IMC Budget for the Year [Recommended] The budget requirement for advertising in Print Media after the first month of implementation of this IMC plan is 25% of the initial spending.

Similarly, the costing for TV media after two months, in the period of 3rd to 6th month is 40% of initial spending. From the 6th to 12th month, the spending is reduced to 20% of the initial

spending. This is how the company strategically reduces costs as well as achieves the overall Marketing and Promotional Objectives.

So, the Budgetary Calculations for the Year are as follows: Advertising Budget: Media Print Media Newspapers

Strategic Scheduling Month 1:

Cost

& Tk. 2,160,400

Magazines

Month 2 to 12: [2,160,400 × 25%] × 11] = Tk. 5,941,100

Posters & Leaflets Electronic Media

Tk. 20,000 + Tk. 150,000 = Tk. 170,000 Month 1-2:

(TV Commercials)

Tk. 6,913,800 × 2 = Tk. 13,827,600 Month 3-6: [6,913,800 × 40%] × 4 = Tk. 27,655,200

Tk. 8,271,500

Tk. 49,779,360

Month 7-12: Supplementary

[6,913,800 × 20%] × 6 = Tk. 8,296,560 Yearly:

Media

Tk. 4,550,000

Tk. 4,550,000

Costing Details 1 Year Cost:

Cost Tk. 60,000

(Billboards) Total: Tk. 62,600,860 Website: Media Website

[1 × Tk. 60,000] = Tk. 60,000 Event Sponsorship & Branded Entertainment (Product Placement): Event Event-1

Costing Details Tk. 500,000 [Once a year]

Event-2 Product Placement

Cost

Tk. 1,050,000 [Once a year] Costing Details Tk. 315,000 × 12 = 3,780,000 Sales Promotion & Point-of-Purchase

Tk. 5,330,000

Promotional Offer Consumer Promotion

Cost Tk. 633,800

Costing Details

Contests

Tk. 50,000

Samples

Tk. 48,800

Premium/Tagging Trade Promotion POP

Tk. 405,000 Tk. 40,000 Costing Details Tk. 90,000

Direct Marketing: Promotional Offer For Consumers

Costing Details Tk. 270,000

Cost Tk. 320,000

For Trade Partners Tk. 50,000 Public Relations & Publicity: Promotional Offer Press Releases

Costing Details Tk. 175,000

Cost

For Trade Partners Annual Dinner

Tk. 125,000

Trade Reward

Tk. 375,000

Training

Tk. 50,000

Tk. 1,325,000

CSR Tk. 600,000 Evaluation of Promotional Plan: Evaluation Technique Pre-testing & Post-testing of Advertising

Cost Tk. 500,000

Evaluation of Other IMC Elements Tk. 200,000 The Comprehensive Budget for 1 Year is provided in the next page.

Tk. 700,000

Comprehensive Budget For 1 Year IMC Element

Cost

Advertising

Tk. 62,600,860

Website

Tk. 60,000

Event Sponsorship & Branded Entertainment

Tk. 5,330,000

Sales Promotion

Tk. 633,800

Direct Marketing

Tk. 320,000

Public Relations & Publicity

Tk. 1,325,000

Evaluation of Advertising & Other Methods

Tk. 700,000

TOTAL

Tk. 70,969,660

13.3 IMC Budget as Percentage of Forecasted Sales: The forecasted sales, according to the analysis of the group, after implementation of the IMC plan suggested is intuitively considered to be around Tk. 150,000,000.

Therefore the IMC Budget can be found to be approximately 47% of yearly sales.

Calculation: [Tk. 70,969,660 ÷ Tk. 150,000,000] × 100 = 47% The Advertising Budget can be calculated to be approximately 42% of the yearly sales.

Calculation: [Tk. 62,600,860 ÷ Tk. 150,000,000] × 100 = 42% Fig: Calculation of IMC & Advertising Budget Justification: The rationale for using a high-level of advertising for the year is that since the product is at its Introductory Phase in the Product Life Cycle, the high investment in Advertising is necessary and contributes in an efficient Brand Equity to be achieved for Radhuni Mustard Oil. Besides, once the brand attains the number one Market share and the Brand Identity of being the premium product among the competitors, the investment would be absolutely worth. Eventually, as this Promotional mix is reinforced, the sales stimulation would continue to take place, and overall sales figure would continue to increase.

Therefore, the advertising and IMC Budget is rationally as well as intuitively justifiable.

13.4 Percentage Comparisons with Competitors: The IMC & Advertising Budgets as Percentage of Sales of Radhuni differ from those of others in the same product category since Radhuni positions itself as the premium product and the most highly perceived brand among the competitors. Other companies in the same Product Line possess lower percentages of IMC & Advertising Budgets compared to Radhuni Pure Mustard Oil. Analysis

Detailed analysis of specific elements is provided corresponding to each of the areas of IMC Elements studied by the group. The group had undertaken an analytic approach in coming up with the specific recommendations for various aspects of the overall IMC plan.

In the following section Strategic Rationales or Reasons are provided for justifying the suggestions made.

14.1 Segmentation Strategy: The group has analytically specified the particular Target Market for the product Radhuni Pure Mustard Oil and for those efforts has considered both Demographic as well as Geographic considerations. Various segmentations are techniques are offered for effectively specifying the Target Market of the product. The methods are used because these can effectively and logically define the market segments for the product dealt with.

14.2 Analysis of Positioning Strategy: In analytically positioning the brand in consumers’ minds compared to other competitors in the marketplace, the premium positioning has been suggested by the group for achieving differentiation strategy. The Perceptual Map of the Product Category has also been analyzed to come up with appropriate Positioning Strategy. Positioning strategy which is offered is justified owing to the fact that it is consistent with the market reality in terms of prices and product quality.

14.3 SWOT Analysis: The Strengths, Weakness, Opportunities and Threats deduced by the group can very effectively

reflect

the

company

specific

Strengths

and

Weaknesses

and

Industry/Economy/Country wide Opportunities/Threats. The SWOT is justifiable, therefore, from a strategic standpoint that it effectively reflects both the scenarios for enhancing the brand equity.

14.4 Marketing Objectives: The Marketing Objectives provided are rationally justified from the concept that it clearly reflects the marketplace scenario. If Radhuni continues to grow at the current pattern, then achieving the objectivities of increasing sales by a steady 30% for the upcoming business period, and being the number one brand in the product category is very practical.

14.5 Statement of Value Proposition: The formation of attitudes, values and norms towards Radhuni Mustard Oil is primarily attained from its value proposition of uncompromised quality and absolute hygiene proposition. This is justified from the perspective of Health, Hygiene and Premium Product Quality being the differentiating factor for the brand. So, the value propositions are consistent with the positioning strategy and product attributes.

14.6 Marketing Mix: The rationale for categorizing the Product as a Convenience Item is owing to the fact that it is a food item which is frequently being required by households. Besides, The product is contemplated to be targeted to fulfill the two lower (physiological and safety) needs in Maslow’s Hierarchy since it satisfies hunger and taste needs (physiological) as well as hygiene and purity requirements (Safety needs).

The Pricing is considered Skimming since it offers premium quality and so competitors low pricing cannon affect its position. Another reason for Skimming pricing is to achieve lower elasticity of demand for the Brand.

The Distribution channel is considered long because the company follows the strategy of distributing through Distributors, Wholesalers and Retailers.

14.7 Advertising Plan: The Advertising Plans strategically suggested by the group analytically reinforces the main purpose of advertising which is to create effective communications to create appeal and buying motivation in consumers’ minds. The group has analytically comprehended the brand to be in the growth stage of the Product Life Cycle. So, heavy advertising is suggested to attract target markets’ attention in an effort to create increased sales. The group recommends specifically targeted ads in both print and electronic medias in order to make the brand create appeal for specific markets that the company targets. The correlation of advertising with various other IMC Elements is also analyzed because the effectiveness of the overall Promotional Mix depends upon how well the elements are integrated.

For the Creative Strategy & Execution, the group offers 3 creatively designed print ads and one TV ad storyboard. The group also recommends the celebrity endorsement of the renowned nutritionist and cooking expert of the country Ms. Siddiqua Kabir to be the first Brand Ambassador. All these efforts are taken in order to achieve the primary objectivity of appealing effectively to the target audience in order to stimulate sales.

14.8 Traditional Media Plan: In the Traditional Media Plan recommendations, the group strategically presents detailed mechanisms to which media vehicles to exactly focus on. The group has analyzed the traditional media scenario and for justifying the choices made, offered the reach and frequency calculations of specific media vehicles to most efficiently reach the target market.

For the Print Media, the group suggested specific publications of the country based upon the levels of popularities of those publications among the target audience.

Similarly, for TV Media Advertising, the specifically recommended vehicles of the group prove by means of strategic analysis and research that the suggested vehicles can best implement the objective plans. The specifically chosen channels offer the best reach for promoting the product which is established from research conducted regarding audience preference for satellite TV channels.

The group has also recommended supporting media plans such as billboards to be established at specific locations around the country, Trade Media Plans for maintaining better communications relationships with Trade Partners and Internet Media Plans for better reaching the various constituent groups that the company works with. All the suggestions are justified from the perspective of ‘achieving a higher sales volume’ for the product and increasing the overall brand equity.

14.9 Web Site: The group strategically recommends the implementation of a completely functional, dynamic and resourceful web site in order to enhance its consumer and trade relationships through the Internet. Several interactive contents are suggested which would undoubtedly enhance the overall effectiveness of the corporate web site. Through the effective designing of the site, the company can enhance its overall profitability by communicating better the with target markets. Various new additions like Ordering Option, Participating in Events and Rating of

the Products/Services have been recommended to be added in the web site. These elements ultimately result in the site being more resourceful. Additions like Consumer/Trade forums and chat-rooms make it more engaging and fun to visit.

14.10 Event Sponsorship & Branded Entertainment: The group recommends two extremely effective events to be sponsored by SCPL – namely A Cooking Competition and A Pickles Festival. The Events can very positively enhance brand loyalty of the various consumer-bases, and in result stimulate sales. The Branded Entertainment policies suggested by the group also offer a seamless potential for the company to get the product to be more visible in the entertainment mediums. The objective can be well achieved from the proper implementation of the group’s strategies because the strategies are rationally as well as functionally designed.

14.11 Sales Promotion: The recommended Sales Promotional Offers targeted for both consumers and trade partners would definitely stimulate short-term demand for the products which can be converted into long-term loyalty. The sales promotional offers suggested have the potential of achieving extremely positive results reflected in sales figures which is intended by the company management. The justifications for each promotional offer is already mentioned in the Recommendation section, so the group only can infer that the coordinated mix of these offers with other IMC elements can foster great results for the company.

14.12 Public Relations & Publicity: The Public Relations and Publicity recommendations are primarily triggered to achieve goodwill and a positive image of the brand and the company as a whole in the minds of the various constituent groups the company works with. The various Public Relations activities and Corporate Social Responsibility efforts of SCPL would undeniably create a very positive impression of the company in consumers’, trade partners’ and overall peoples’ minds.

14.13 Evaluation of Promotional Plan: The Evaluation Techniques suggested by the group would uncover the effectiveness of the promotional mix elements of Radhuni Mustard Oil. The techniques chosen are very practical in the context of Bangladesh, and effective implementation would give the company a

competitive edge over the competitors in terms of both advertisement quality and sales stimulation created by it.

14.14 Overall IMC Budget: The comprehensive and detailed budgetary calculation and presentation for one year required for the whole IMC plan has been prepared by the group. The group has analytically prepared this budget and used professional techniques such as variable cost allocation for determining the overall yearly IMC budget for the proposed plans suggested. The whole budgetary analysis clearly manifests the fact that proper budgeting can render desired results for achievement of the company’s objectivities.

Conclusion Finally, the group considers it extremely significant for the proper coordination and integration to be achieved for the designing of the Integrated Marketing Communications Plan. The group, for preparing this gargantuan task of completing the complete, detailed and comprehensive IMC plan, had to put up a tremendous effort for using the conceptual details and coordinating it with the real-world rationales. The work has undoubtedly stimulated the limits of brainstorming capabilities of the members to an extent never imagined before.