The marketing planning of al amin group

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The Marketing Planning of Al-amin Beverage Industries Ltd.

Origin of the report: This report, highlighting the analysis of the Marketing Planning of Al-Amin Beverage industries Ltd. Company Overview:

Al-Amin Group, one of the leading conglomerate groups of companies in Bangladesh. Anwar Mirza, a visionary leader and the founder of this Group, who turned a small bakery into the largest and the most modern biscuits manufacturing company in Bangladesh. The group was incorporated in 1969 as a private limited company in Bangladesh. Today, Al-Amin group is more than a biscuit company. The group has vested interest in beverage, trading, textile, insurance company, snacks, fishery, pharmaceutical, oil, plastic, and other consumer products. The group generates employment opportunities for more than twenty five thousand people in Bangladesh. Al-Amin group is also one of the largest buyers of our country's agricultural and dairy products. The group is also one of the largest taxpayers of the country. Al-Amin Group plays a vital part of the everyday life. Mission: Mission is to make quality products that satisfy customers’ needs with an affordable price that is within the range of their buying capacity.

Vision: Vision is to be the best and to be the world’s leader in everything we do, and every product we make. Current Market Situation

Market Description Market Segment Market Segmentation means to divide a market into distinct groups of buyers who have distinct needs, characteristics or behavior and who might require separate products or marketing mix. Where, Market segment means a group of consumers who respond in a similar way to a given set of marketing efforts. We can segment the market into the following ways:According to Area According to Time

Urban, Semi Urban, Rural. Peak, Off-peak.

Target market After segmenting the market Al-amin beverage industry at first try to enter in urban aria. That’s why they choose young generation, middle class families and to some extant high class family as a target market. Demand of Product Demand of the product is also important to a market. Because if there are many customers in that market but they aren’t so willing to purchase the product, then the product is not sold effectively. So in this case the product is not sold mostly. So before deciding every thing we must know the willing power of a customer. And if the customer of that market has good demand of that product then it will be sold effectively. Demand of product is increasing due to total infrastructural development. Consumer likes chilled product that need refrigerator. Electrification & Road communication had increased significantly. Fast food culture is developing. Consumer taste & habit is changing. Market size is very big. In peak period (March-July) all the existing company cannot able to fulfill the demand of the market.

Demand of Lemon, Cloudy Lemon, and Orange & Ginger is increasing. Area of Selling Area of the market is the most important thing for a product. That is not only it is important to sell but also for all kinds of advantages. For example- Kawran Bazar Market is very large than other markets. That is if a market is small to look than most of the customers didn’t attract by that market and didn’t go to that market because most of the customers feel uneasy to go there for small area. So area of the market is very important for a product. Urban City, Big City, Market, Highway Hotel & Restaurant, Canteen, All General Shop Selling CSD (Carbonated Soft Drinks). Market of Drinks has been divided into distinct group of people according to there taste, needs, characteristics or behavior. Some people, for there shortage of money can’t be able to buy 1 liter DC. These kinds of people are poor people who have lower income level. Taking this condition in mind Al-Amin group has double cola mobile bottle amounted Tk.15. Al-Amin produces cane of Tk.15 for the young people who want to enjoy time without any disturbance. Desired Customer Customer is another important thing to a market. The market in which a large number of people are available, there the product is mostly sold. So before deciding to market a product we have to decide a special type of market that full of customers. Actually desired customers of this product are basically middle class, lower middle class and some young generation. For example- The product of Meena Bazar is mostly sold than the product of Adar (LalBagh). Factor That Affects Customer Purchase Factors affecting customer purchases are the following:i. To create a market sound marketing mix policy must be applied. ii. Product should be qualified. iii. Price should be competitive. iv. Promotion program must match with customer & consumer. v. Target market supply cannot be hampered.

Product Review

Product Performance In The Market Quality with reasonable price is a factor to enter & sustain in the market. To create a brand image as well as brand equity promotional program (TVC, Print media, Advertising, Trade offer, Consumer offer etc.) is playing a vital role. Based on all financial & other logistic support the performance of our product is good. Especially response of chooser is satisfactory. The performance of Double Cola in the market is gradually increasing day by day. Sales of That Product After forecasting the market raw materials & packaging material are collected. But nature of market is changing very quickly. We have thought to grab a huge market share for ginger etc. but unfortunately we have not get positive response from the market as well as from consumer due to our plan & policy related with price & distribution. On the other hand one of product chooser is doing very well. 50% of our total sales are coming from this brand. But we did not think about this. Sales of the product also vary from time to time and season to season. Since it is a soft drink so the sales in summer season is naturally more than winter season. The sales trends also describe this factor. In Dhaka city the sales of Double Cola is described followed: Month June July August September October November

Sales 6000 cases 4000cases 3200cases 3000 cases 2500 cases 2000 cases


7000 6000 5000 4000


3000 2000 1000 0 June



Price of That Product Pricing is a most sensitive decision. There is no change to skim the price as a standard price has already set in the market. Company must follow the setting price; like the other companies are selling their 500 ml size in Tk. 15. The price of double cola is given as follows: Quoted Price SL No

Name of Items

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

Double Cola 330ml. Can. Double Cola 330ml. Pet. Double Cola 500ml. Pet. Double Cola 1000ml. Pet. Double Cola 1500ml. Pet. Double Cola 2000ml. Pet. Double Cola 500ml. Pet. (Diet) Ginny 500ml. Pet. Ginny 1000ml. Pet. Chaser 500ml. Pet. Chaser 1000ml. Pet. Chaser 1500ml. Pet. Chaser 2000ml. Pet. Cloudy Ski 500ml. Pet. Cloudy Ski 1000ml. Pet. Orange Ski 1000ml. Pet.

Trade Retail price price per per pcs. pcs. 13.75 16.00 10.00 12.00 13.00 15.00 26.25 30.00 35.75 40.00 40.50 45.00 13.00 15.00 13.00 15.00 26.25 30.00 13.00 15.00 26.25 30.00 35.75 40.00 40.50 45.00 13.00 15.00 26.25 30.00 26.25 30.00

Gross Margin of the Product In the first phase (First two Year), it is very complicated to maximize the gross profit. Initial investment in all sectors is high that become minimum level in the 2 nd & 3rd Phase, company can hope: 10% gross profit in the 3rd phase. Quoted Price SL No 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

Name of Items

No. of pcs per case Double Cola 330ml. Can. 24 pcs. Double Cola 330ml. Pet. 24 pcs. Double Cola 500ml. Pet. 24 pcs. Double Cola 1000ml. Pet. 12 pcs. Double Cola 1500ml. Pet. 12 pcs. Double Cola 2000ml. Pet. 06 pcs. Double Cola 500ml. Pet. 24 pcs. (Diet) Ginny 500ml. Pet. 24 pcs. Ginny 1000ml. Pet. 12 pcs. Chaser 500ml. Pet. 24 pcs. Chaser 1000ml. Pet. 12 pcs. Chaser 1500ml. Pet. 12 pcs. Chaser 2000ml. Pet. 06 pcs. Cloudy Ski 500ml. Pet. 24 pcs. Cloudy Ski 1000ml. Pet. 12 pcs. Orange Ski 1000ml. Pet. 12 pcs.

Trade price per case 330.00 240.00 312.00 315.00 429.00 243.00 312.00

Trade Retail Profit price per price per margin pcs. pcs. 13.75 16.00 16.36% 10.00 12.00 20.00% 13.00 15.00 15.38% 26.25 30.00 14.28% 35.75 40.00 11.88% 40.50 45.00 11.11% 13.00 15.00 15.38%

312.00 315.00 312.00 315.00 429.00 243.00 312.00 315.00 315.00

13.00 26.25 13.00 26.25 35.75 40.50 13.00 26.25 26.25

15.00 30.00 15.00 30.00 40.00 45.00 15.00 30.00 30.00

15.38% 14.28% 15.38% 14.28% 11.88% 11.11% 15.38% 14.28% 14.28%

A Review of Competitors Name of the Competitors There are many competitors now in the market. For example- all the drinks company are the competitors of a drink company. So before making a drink product the managing director or the planner must know about the competitors. That is if he knows about the product of the competitors, product policy of the competitors then he can decided what he has to do. That means the planner then developing the product. And if he develops the product carefully good then he will be taken of the market than the competitors. There are a few numbers of competitors which are given below:-

SL 01

Name of Company or Competitors Abdul Monem Beverage Ltd. Coca-Cola Far East Ltd. Tabani Beverage Ltd.

Product Name Coca-Cola Coca-Cola, Sprite, Fanta


Transcom Beverage Ltd.

03 04 05 06 07 08

Partex Beverage Ltd. Globe Soft Drinks Ltd. Global Beverage Ltd. National Beverage Ltd Al-Amin Beverage Ltd Agricultural Marketing Co. Ltd.

Pepsi Cola Pepsi, Marinda, 7 up Mountain Diew RC Uro Cola, Fizz Up, Uro Lemon Virgin Suncrest Double Cola, Chaser Pran

Competitor’s Strategies for Product, Quality, Price, Distribution & Promotion Company Pepsi Company

Quality They also emphasize on quality. Cola Strictly maintain, never fluctuate Quality sometimes differ.

Price Distribution & Promotion Price changing Distribution & promotion tendency is less. for urban based.

Coca Company RC Company

Never compromise with price. They change there price time to time matching with the program.

Giving priority for urban market. Distribution & promotion for urban rural & location based. Have a good coverage in rural market.

Threats and opportunities Assess major threats and opportunities that the product might face to anticipate important positive or negative development. Political Threats    

Instability disturb, Hartal or Strike cause problem, Government policy on tax & vat make problem. Before Election inflation rate become high. As a result demand is increased.

Economical Threats  Consumer of rural area cannot afford their basic food let alone secondary drinks.  Direct labor cost is minimum that can expand for promotion.  Some time when the Company’s economic deficit and the budget allocated for this product reduced then this product face economic threats. Environmental Opportunities  Seasonal effects such as summer season consumption increased.  Rainy season distribution becomes tuff to all area. Transportation Advantages

 The developed transportation system of the Al-Amin group helps to sell this product in the market easily.  Big unit size of peak is a opportunity to load & unload the product, very weighty & overhead carrying cost is high which effects the selling price as well as the profit margin of the company. Objective and issues: Objectives of the Company • • •

First Phase, Try to distribute the product to all urban city. Second Phase, Urban & Semi urban area. Third Phase, POP materials like; shop sign, refrigerator.

The Procedure of Attaining Goals of the Company Making a strong sales network to reach the product to each & every company or outlet with a valued adding both individually and organizationally Marketing Strategy Based on capacity we will not supply to rural area. We have the policy to sell & distribute to the urban city only. As a new market player we have to follow the program of others so that the program may be competitive. We are giving most importance to our manpower. To save the distribution channel we are giving subsidy to the distributor to share with their loss. o First emphasis on urban & city area. o Mainly customer offer & price cattle. o Follow the market set price. Strategies for Target Market Based on production capacity planningFirst Phase 2004-2006 Urban city Dhaka Metro Ctg. Metro Sylhet Metro Razshahi Metro

Second Phase 2007-2009 Semi urban city Dhaka Region Ctg. Region Sylhet Region Razshahi Region

Strategies for Market Position

Third Phase 2010Urban & Rural

o First emphasis on urban & city area. o Mainly customer offer & price cattle. o Follow the market set price. Strategy for Marketing Mix Elements Marketing mix is a set of controllable, tactical marketing tools that the firm blends to produce the response it wants from the target customer. Marketing mix consists of everything that the firm can do to influence the demand for its product.





Marketing Mix Product: Al-Amin Group is offering a lot of products in the market.Al-Amin group has lot of product section among them Al-Amin beverage industries limited produce soft drinks. The soft drinks section includes the following items

Quality Product quality is one of the major poisoning tools. Since product quality directly linked to customer value and satisfaction Al-Amin group choose at first, a quality level that will support there product position in the market. i. Major material of the product Double Cola are importee from USA. ii. As the Company has laboratory and food research scientist to test the quality of the product, it is providing a better product. iii. After importing any material they test it in their laboratory. The product quality of double cola tested twice a month. Sl. no 1.

Name of items Double Cola


Double Cola (Diet)





5. 6.

Cloudy ski Orange ski

Quality Cola tested Very low sodium Having the pet bottle and cane Varies size are available Helps to refresh a lot. Without fat Very low sodium Ginger Ale Very low sodium Lemon-Lime Drink. Caffeine Free Naturally flavored

Orange Naturally flavored

Variety Al Amin group has offered a lot of variety in there product Double cola. As Double Cola Diet, Ginger Ale etc. Product Features Features are a competitive tool for differentiating the company’s product from the competitor’s product. Sl. No Name of items Features 1. Double Cola i. Cola tested ii. Very low sodium iii. Having the pet bottle and cane iv. Varies size are available v. Helps to refresh a lot. 2. Double Cola (Diet) i. Without fat ii. Very low sodium iii. Produced for diabetic patient.





5. 6.

Cloudy ski Orange ski

i. ii.

Ginger Ale Very low sodium •Lemon-Lime Drink. •Caffeine Free •Naturally flavored

Orange Naturally flavored

Brand Name Brand is a name, term, sign, symbol, design or a combination of these, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitor’s. Name: Double cola, Double Cola (diet), Ginny, Chaser, and Orange Ski etc are the brand name of the carbonated soft drinks products of Al Amin beverage industries Ltd. Sign:

Brand Name Selection The strategy of brand name selection of Al Amin beverage industries Ltd. Include all the quality of perfect brand name. As  These are easy to pronounce, recognize and remember.  These are distinctive  These are extendable  The name double cola can translate easily into foreign language.  These soft drinks have the right of registration and legal protection. Brand Sponsorship A manufacturer has four sponsorship options.  As product may be launched as a manufacture’ brand. These is also called national brand.  The manufacturers may sell to resellers who give it a private brand.  Most manufacturers create there own brand names, others market licensed brands.  Two companies can forces and co-brand a product. Al Amin beverage industries Ltd. Follows the second sponsorship method. Packaging

The activities of designing and producing the containers and wrapper for a product. The packaging strategy for Al Amin beverage industries Ltd. that they are trying to serve all classes of people. Taking the consideration for different classes of people of Bangladesh they offer different size of their Double Cola. Al Amin beverage industries Ltd. Supplies their double Cola items through the following packages: Pet bottle 330ml. Pet bottle 500ml. Pet bottle 1000ml. Pet bottle 2000ml. Cane 330 ml. The Cane of Al Amin beverage industries Ltd. imported from Germany and the pet bottles are home made. Labeling Labels may range from simplest tags to products to complex graphics that are part of the package. Double Cola has several color labels for each of the carbonated soft drink flavors.  Blue  Sky  Green  Orange

To attract people Al Amin beverage industries Ltd. Uses high quality lebel which are designed from USA. Pricing Strategy There are different types of method of setting price. These are as follows Cost-based pricing Break even analysis and target profit pricing Value based pricing Competition based pricing. Among the above pricing method Al Amin beverage industries Ltd. Are using the competition based pricing method. Competition based pricing is the method of setting prices that competitors charge for similar products. Activities in setting competition based pricing method:

• • • •

Al Amin beverage industries Ltd. Bases its price largely on competitors price. It has less attention paid to its own costs or to demand. The firm might charge the same as, more than or less than its major competitors. The firm bases its price on how it thinks competitors price rather than on its own costs or on the demand.

Advantage of this method than other pricing method: • This method helps Al Amin beverage industries Ltd. to keep the market price of their product. • Al Amin beverage industries Ltd. also feels that holding to the going price will prevent harmful price wars. • When demand elasticity is hard to measure, firms feel that the going represent the collective wisdom of the industry Price Adjustment Strategy Al Amin beverage industries Ltd. usually adjust their basic prices to account for varies customer differences and changing situations. Al Amin beverage industries Ltd. adjust their prices following the below method: Discount and allowance pricing— They reduce prices to reward customer responses such as paying early or promoting the product. Al Amin beverage industries Ltd. (licensed authority of Double Cola Co.-USA Chattanooga) allow allowance for their wholesaler and retailers to promote them. They offer if anyone purchases 20 case of any soft drink there is a provision of Tk.5 off for every case. Payment period: There is not any fixed payment period of Al Amin beverage industries Ltd. (licensed authority of Double Cola Co.-USA Chattanooga) but they offer bill-to-bill payment i.e., when any customer paid their earlier payment then new product supply is granted for them. Segmented pricing: Al Amin beverage industries Ltd. Adjusts prices to allow for differences in customers, product and locations. Psychological pricing: They adjust their prices of product for psychological effect. Promotional pricing: Some times Al Amin beverage industries Ltd. reduce prices to increase short-run sales.

International pricing: Since Al Amin beverage industries Ltd. produce double cola under the authority of Double Cola Co.-USA Chattanooga So this pricing adjusting method (international pricing) helps them a lot. Al Amin beverage industries Ltd. (licensed authority of Double Cola Co.-USA Chattanooga) adjust their prices for different country’s market.

Place Distribution Marketing channel is a set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user. Al Amin beverage industries Ltd. are operating their beverage business by the following marketing channel: ManufacturerDistributorWholesalerRetailerConsumer


• • • • •

Super Shops General Stores Departmental Stores Shopping Males Super markets

Promotion Promotion means activities that communicate the merits of the product and persuade target customers to buy it. Promotion activities of Al Amin beverage industries Ltd. (licensed authority of Double Cola Co.-USA Chattanooga) helps to describe the merits of Double Cola. The promotion activities of Al Amin beverage industries Ltd. (licensed authority of Double Cola Co.-USA Chattanooga) helps to persuade target customers to buy it. Advertising Marketing management of Al Amin beverage industries Ltd. (licensed authority of Double Cola Co.-USA Chattanooga) make four important decisions when developing an advertising program. As-

a. b. c. d.

Setting advertising objecting objectives Setting advertising budgets Developing advertising strategy Evaluating advertising campaigns.

a. Setting advertising objective: Now a days advertising is one of the major marketing tools. As Al Amin beverage industries Ltd. (licensed authority of Double Cola Co.-USA Chattanooga) launched their soft drinks recently they need an effective advertising objective. As a new comer in soft drink business the advertising objective of Al Amin beverage industries Ltd. (licensed authority of Double Cola Co.-USA Chattanooga) is to inform people about the product quality. -Possible advertising objectives  Informative Advertising Telling the market about a new product Suggesting new uses for a product Informing the of a price change Explaining how the product works Describing available services Correcting fales impression Reducing consumer’s fears Building a company image.


Persuasive Advertising

Building brand preference Encouraging switching to your brand Changing customer perception of product attributes Persuading customer to purchase now. Persuading customer to receive a sales call. b. Setting advertising budget After determining its advertising objectives, Al Amin beverage industries Ltd. (licensed authority of Double Cola Co.-USA Chattanooga) next sets its advertising budget. To set advertising budget the company had considered the following factors: --Stage in the product life cycle --Market share --Product differentiation Since soft drinks are the products having the category of undifferentiated brands, it needs heavy advertising to set them apart.

o They are creating their advertises in Bangladesh and abroad o In Bangladesh they are creating there T.V advertising from Morza groups the largest T.V advertising firm in Bangladesh. o Some T.V and radio advertises are prepared from Thailand. o They are adverting in some newspapers and magazines. o They operates some outdoor advertises also. The above activities give a total picture that Al Amin beverage industries Ltd. (licensed authority of Double Cola Co.-USA Chattanooga) Advertising budget Stage Beginning of the product Current time Total

Expenditure 70,00,000.00 (each) 50,00,000.00 (each) 1,10,00,000.00

Developing Advertising Strategy I. Creating the advertising message : Al-amin group determines to create advertising message as it’s advertising strategy. Message Mone lage dola

This message theme emphasize on great refreshment.

II. Selecting advertising media: S.l. no 1.



Reasons for selection








Bangladesh Betar

-Flexibility -Timeliness -good local market coverage -Broad acceptability -High believability -Good Mass market coverage -Low cost per exposure -Combines sight -Sound and motion appealing to the senses -Good local acceptance -High geographic and





The Business Bangladesh Anandalok

demographic selectivity -Low cost -High geographic demographic selectivity -Credibility and prestige -High quality reproduction.


Free product delivery to: -Little audience selectivity DMC, BUIT, B.F Shahin -Creative Limitations. College, Commilla Sena Nibas(Golf sponser)

d. Evaluating Advertising Al Amin beverage industries Ltd. evaluates both the communication affects and the sales effect of the advertising regularly Measuring the communication affect of an advertising- copy testing tells whether the ad is communicating well Al Amin beverage industries Ltd. measure the sales affect of an advertising by comparing past sales with past advertising expenditure. Al Amin beverage industries Ltd. vary the amount it spend on advertising in different market areas and measure the differences in the resulting sales level. Sales promotion: Al Amin beverage industries Ltd provides some short term incentives to in courage the purchase or sale of a product. They follow some tools to encourage people. These are as follows A- Sampling B- Coupon. Action Program Implementation Of Marketing Activities Along With The Budgets As the resources is very vital best to take integrated marketing strategy. Sometimes our strategic planner has to face senior problems to implement all the steps that need to fulfill. Procurement, production, store, delivery, transportation, marketing accounts, depot marketing, marketing information system, sales, brand & media, event management. Wister all are the tasks of marketing activities. Btu to make a project co-ordination a new company has face difficulties. Some plan may not implement due to the limitation of budget. The Way of Doing Action Program As the financial limitation is a problem for the new company on action program becomes important. Company should decide what can be done with his resources. On the other hand

production capacity is a matter. We have to face distribution problem in the season. So in the 2nd phase company has decided to grab the urban city marked only. And we are going to minimize our distributor all over the country & think to not market in the northern part of the country. Within a year we have got a most positive response for a specific product & we are giving the most emphasis for that product. All promotional programs will adopt for the product to create & generate our market with the value. What will be done As the financial limitation is a problem for the new company, on action program becomes important. Company should decide what can he do with his resources. On the other hand production capacity is a matter. We have to face distribution problem in the season. So in the 2nd phase company has decided to grab the urban its market only. And we are going to minimize over distribution all over the country & think to market in the northern part of the country. Within a year we have got a most positive response for a specific product & we are giving the most emphasis for that product. All promotional program will adopt for the product to create & generate over market with the value. When will be done; From the 2nd financial year. Who is responsible for it; All workers but definitely the marketing team will do this. Budgeting Decision of Material Buying Always for a new company it is difficult to predict the actual demand of each item product. The size of product is a matter that affects the production capacity. Raw material is a factor that sometimes create problem. Every raw material has a expiration period. Some product’s demand depends on the season also. So what material will collect is a important thing. This decision is taken combined with all line managers. Estimation of the Cost of the Product Whatever the cost of the product we have to follow the market set price first. Now in the competitive environment to earn profit is not an easy task. So, all the companies are thinking to make an association to determine the price of the products. Estimation of the Profit of the Market We have the plan to reach in BCP within 4 years. Initially the investment is very high specially to make more brands loyal throughout the country. We are expending more in

advertising & promotion sector. We can harvest it near future. If the company can utilize the total productions capacity and can sold it in the market them profit will came regular basis. Marketing of CSD (Carbonated Soft Drinks) is very completed now, all company are taking various types of program to create their product market.

Marketing Plan of the Products First of all we are giving more emphasis on traders. We are trying to lift our product to all the outlet & shelves. We have created a strong selling network all over the country to reach our product to every corner of the every locality. Communication system of the Product






Marketing Operation Marketing operation is led by GM marketing. Sales are the main stream of the organization. As they know nothing will happen until sales is occurred, to promote the product they are also taking various types of program for the traders. Personnel Planning To determine the company’s budget it should consider highly on their sector. That is why the company’s should emphasize more to select and promote workers.  In Al-Amin group 400 people engage in marketing sector.  6 people engage in public relation.


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