Group project

Topic: - ACI Nutrilife Low GI Rice Marketing plan

Course Name: Advanced Marketing Management

Course ID: MKT 302, Sec-01

Instructor: Tarafdar Rafiqul Islam

Group Name:-CHNCO

Member ID

Mohammed Shihab Rashid 1221062

Jaydad Rehman Chowdhury 1130045

Nahiyan Ibne Hashem 1110398

MD. Zahid Khan Mojilish 1120735

Mehedi Masnad Saimum 1110144

Executive Summary:

Rice is commonly believed to be a high GI food. So ACI came up with a new product called ACI

low GI rice. It is a big question that why would people choose a low GI BR16 rice instead of any

normal rice with high or medium GI? The answer could be come up with the difference between

the digestion rates of high GI & low BR16. The stomach can digest high GI food at a very high

rate compared to any low GI food. After consumption of high GI foods, bursts of energy are very

quickly available, as the stomach can easily digest it, but soon after, there comes a "crash" as the

glucose or sugar level quickly falls after a sudden surge, making the person feel hungry again.

By consuming low GI rice, this can be avoided and one can ensure that his/her body has a steady

supply of energy over a longer period of time.

Marketing of the low GI rice can be effective as informative brochures and leaflets have been

distributed from hospitals and pharmaceuticals. The marketing campaigns have focused not only

on disease prevention and reduction, but also on general wellness and all age demographics are

therefore being targeted. Even though current prices are high in context to the average income of

Bangladeshis, there is a possibility of subsidization of prices in the near future, as the

government has shown interest in promoting low GI rice among all income groups of

Bangladesh. If Low GI rice becomes an affordable alternative to the varieties of rice currently

available, this could usher in a healthier lifestyle among the general population.

Contents:

Executive summary

Introduction

Current market situation

Market description

Product review

Pricing

Distribution

Strength, Weakness and threat analysis

Budget

Objectives

Issues

Conclusion

Reference

ACI LOW GI RICE

Introduction:

Now days, Human food behavior is changing. Urban dwellers seem not only to be suffering from

malnourishment, but also from a gradual detachment from traditional meals. The urban

Bangladeshi's diet seems to be slowly but inevitably leaning towards more convenient albeit

unhealthy options. Increased incidence of diabetes and cardiovascular diseases seems only

logical, as cholesterol counts are not paid enough heed and weight management is not done

through informed judgment. In developing countries as ours, lack of awareness and

misinformation seems to have reached epidemic levels. 

Coming as splendid news for health conscious individuals and a strong reminder to the not-so-

healthy ones: The Bangladesh Rice Research Institute (BRRI) has recently developed a variety

of low GI rice that has one of the lowest GI counts among all rice made available to the market

till now. Why is this so great? Low GI food prevents blood sugar level from fluctuating sharply,

and helps in maintaining a balanced lower and upper level. Diabetics will heave a sigh of relief,

because this means that they can not only consume rice, once believed to be a culprit behind

diabetes, but also have it knowing that it actually helps with the condition. Sugar level

fluctuations are very common among average people, because most food we consume are of high

GI, which is detrimental to health in the long run. These sustained fluctuations can actually

trigger diseases such as diabetes, and as the human body's feeling of hunger varies with these

highs and lows, weight management issues and the problems of overconsumption also come into

the picture. Low GI rice can help fight all these problems

Current Market Situation

ACI Bangladesh Manufacturers Limited was a subsidiary of world renowned multinational ICI

Plc and was a listed public limited company under Dhaka Stock Exchange. In 1992 ICI Plc

divested its shareholding through a management buyout and the company name was changed

from ICI Bangladesh Manufacturers Limited to Advanced Chemical Industries (ACI) Limited.

ACI Formulations Limited, a subsidiary of ACI, became a public listed company through direct

listing.

ACI has diversified into four major strategic business divisions which include Health Care,

Consumer Brands, Agribusinesses and Retail Chain.

Strategic Business units:

Pharmaceuticals

Consumer Brands & Commodity Products

Agribusinesses:

o Crop Care Public Health

o Animal Health

o Fertilizer

o Crop-ex

ACI Agribusiness is the largest integrator in Agriculture and Livestock and Fisheries. These

businesses have subunits like Crop Protection, Seed, Fertilizer, Agrimachineries, and Animal

Health. These businesses have glorified presence in Bangladesh.CC & PH supplies crop

protection chemicals, Seed supplies Hybrid Rice, vegetable and Maize seeds, Fertilizer Supplies

Micronutrient and Foiled fertilizer, Agra-machineries supplies Tractors, Power Tiller and

Harvester and Animal Health supplies high quality Nutritional, Veterinary and Poultry medicines

and vaccines.ACI Agribusiness is having strong partnership with national and international R &

D companies, universities and research institutions. Before introducing any product, it is

elaborately tested in the laboratory and farmer’s field.ACI Agribusiness has a large,

knowledgeable and highly skilled Field Force provides training and technical advices to the

farmers.ACI is significantly contributing to national food security through its Agribusinesses

division, which is the leading agricultural integrator of the country. ACI Agribusinesses is

providing complete solution to the farmers need. This division has five separate SBUs. They are

Seeds, Fertilizer, Motors, Crop Care & Public Health, and Animal Health. Farmers have

developed confidence in our products for quality and economics. Farmers have also come to

expect proper knowledge based service from our field force.

And in the current market it’ll be easier for ACI low GI rice to prosper, because at the present

ACI is not facing any competition from other companies who are willing to produce low GI rice.

But they have to face challenges to attract the customers who are not aware of the fact that how

LOW GI RICE can benefit them.

Market Description

In relation to the product launch, our major issue is the ability to establish a well-regarded brand

name linked to a meaningful positioning. We will have to invest heavily in marketing to create a

memorable and distinctive brand image projecting innovation, quality, and value. We also must

measure awareness and response so we can adjust our marketing efforts as necessary. ACI

Nutrilife Low GI Rice is locally cultivated with intensive care, meticulously selected grains and

processed in unique scientific techniques to ensure its nutrition value and GI value under 50 aged

people. This rice is helpful to improve type 2 diabetes mellitus, heart disease, high blood

pressure, obesity management etc, the release said. The table shown below illustrates how ACI

addresses the needs of target consumers.

Types of Segmentation Information Relevant explanation

Geographic Initial Target: DHAKA As the cost will be higher, so it will be mainly

targeted to the hospitals, if the doctors prefer this to

the diabetic patients then they will be inspired to buy

this rice.

Demographic Age: 20 years – 65 years

Gender: Both Male & Female

Income: Higher Class & Higher Middle

Class.

People with high BP, diabetes and over-weight can

consume this rice.

Health conscious people can also consume this rice.

Psychographic Income: Higher Class & Higher Middle

Class.

Occupation: Doctors, Scientists,

Nutritionists, Players, Actors & Actresses,

Young politicians, Dancers, Models, Defense

People.

People who are determined to have a healthy life and

fit physical structure.

Behavioral Occasion: Routine/Seasonal

Attitude toward this product: Positive, but it

is not a mandatory product for the

Bangladeshi lifestyle.

Consumption’s rate: Low.

Helps to reduce BP.

Helps to reduce Heart Diseases.

Helps to control Diabetes.

Helps to control overall health system

Product Review:

ACI Nutrilife Low GI Rice is from a special variety developed by Bangladesh Rice Research

Institute (BRRI). This rice is specially produced and processed and locally cultivated with

intensive observation. Meticulously selected grains are processed under unique scientific

techniques to ensure proper nutrition features of low GI (Glycemic Index). The GI value of this

rice variety is found below 50 that refers to low GI and helpful to improve type 2 diabetes

mellitus management.

The Glycemic Index (GI) is a measure of the power of foods (or specifically the carbohydrate in

a food) to raise blood sugar (glucose) levels after being eaten. The number listed next to each

food is its Glycemic Index and it presents as high GI (70 or above), medium GI (56-69) and low

GI (55 or less).

Low GI diet is growingly followed by the developed world for a sound and healthy life. ACI

Nutrilife Low GI Rice is from a BRRI developed variety that is already recognized as low GI by

University of Sydney in GI food list, BIRDEM in Ibrahim Medical Collage Journal, BRRI in

their annual report and an international research carried out by Dhaka University, FAO &

NFPCSP (National Food Policy Capacity Strengthening Program) of Govt. of Bangladesh. ACI

Nutrilife Low GI Rice is tested and found as low GI by Department of Biochemistry and

Molecular Biology of University of Dhaka.ACI Nutrilife Low GI Rice is available in 1 kg packs

at nearby super shops.ACI Nutrilife Low GI Rice is a very special kind of rice which is

developed by BRRI. This rice is specially produced and processed with intensive observation.

Since it is a special kind of rice, it needs special care. It goes through a lot of verification to

ensure proper nutrition. Its grains are meticulously selected and processed under unique

scientific technique. All these ensure the future of low GI which is Glycemic Index.

Pricing:

The Glycemic Index is a numerical Index that ranks carbohydrates based on their rate of

glycemic response (i.e. their conversion to glucose within the human body). Glycemic Index uses

a scale of 0 to 100, with higher values given to foods that cause the most rapid rise in blood

sugar. Pure glucose serves as a reference point, and is given a Glycemic Index (GI) of 100. Price

The price of this rice is comparatively high than any other rice sold in our local market. The

average price of rice sold is 35-40 BDT per Kg. Another type of expensive rice which is

currently available in the market is “Bashmati Rice” which is 1080 BDT per 5kg. This makes it

216 BDT per kg). So comparing to the local market the price of ACI GI rice would be pretty

high. The price which is set is 320 BDT per kg. That led us to a very narrow target market who

can actually afford this sort of rice. The reason of this rice is being expensive is because of the

way it is produced. This is not just any other rice which is sold in our local market. This rice is

very much for the people who are highly conscious regarding their health.

Distribution:

As it is stated above the price is higher than any other rice sold in our local market so the target

market will be narrow. First of all we will target all the CSD shops in Dhaka city and other major

cities in the country. Since it’s an army related store so there should be potential customers there.

We won’t be targeting much local markets. Considering all the facts and economical states the

local markets we will consider would be Gulshan Market, Banani Bazar, Kawran Bazar,

Malibagh Bazar, and New Market. This will be our initial local targeted market. Another market

which we will be targeting is the departmental stores such as Shopno, Agora, Meena Bazar etc.

Strength, Weakness, Opportunity and Threat analysis:

Strengths:

Abundant natural resources that suitable for rice growing.

Seed diversity.

Irrigation system has been developed in main rice growing areas.

Farmer Organization: Farmer groups/association.

Increase private sectors involving in agriculture production supply chain.

Agricultural Development Strategy 2020 (rice policy, agriculture commercial production).

ACI Group has their own retailing chains stores known as “Shopno Departmental Stores”,

they have currently 36 departmental stores in Dhaka.

Weakness:

Low productivity of rice production

Farmers have limited skills for improve productivity

No price guarantee policy

Seed shortage / quality (no seed bank)

Labor shortage / migration

Limitation of using mechanization

High interest rate for long-term agriculture loan

Low processing activities/cleaning, packaging, storage…

Lack of quality control/system (SPS)

Low trade facilitation (collaboration, regulation…)

Limited of market information

Financial support for small holders, farmer association for agriculture value adding is limited

Opportunity:

Regional linkage (infrastructure)

Member of WTO / AEC

Useless of chemical and pesticide which is a good opportunity for producing organic or GI

product to niche market

FDI - interested from foreign investment

Threats:

Natural disaster (flood and drought)

Increase outbreak of Pest and diseases

Low competitiveness

No proper quarantine checks for agricultural production across border (illegal border trade).

Renata Agro Ltd &Purnava Agro Ltd has launched Purno low GI rice.

Marketing Plan:

To get access in all the market segmentation mentioned above in the consumer market and to get

into the B2B business.

Target Market:

1. Gender: Male & Female.

2. Income: Higher living standard.

3. Age: 20-Above.

4. Sub-culture: Patients with diabetics, heart diseases & blood pressure, overweight people,

beauty conscious.

5. Occupation: Actors, athletics, gymnastics, dancers, nutritionist, models, working class

heroes like bankers, service holders, and also the people in the defense of our nation.

6. Nationality: People from abroad travelling or living in our country.

7. Business 2 Business: Getting into places where the people go to pay anything for good

quality food.

Marketing Promotions & Activations:

1. Sales Discount: Discount for the retailers to sell a targeted amount of product in a fixed

time.

2. Area Distributors: Establishing a good relationship with the largest distributors in every

zone in Dhaka.

3. Cooking show: A TV show one’s a week showing the best use of this rice other than the

usual way we cook it.

4. Hospitals: Persuading the hospitals to provide the lunch & dinner with Nutrilife Low GI

Rice.

5. Health Tips Shows: Making them say to go for Nutrilife Low GI rice.

6. Gym: showing the benefits of Nutrilife Low GI Rice.

7. Customized Gifts: Pen, calendars, clocks for the use of the opinion leaders with the

branding of Nurilife Low GI Rice.

8. Commercials: TV, Radio, Food Critic magazines where food specialized people will talk

about how it is going to improve our lifestyle.

9. Events: Events like food festivals, where the Nutrilife can sponsor and make people taste

the product’s quality and it’s benefits in our life.

10. Medium Sized Festoons: For the departmental stores.

11. Flyers: To distribute among the public.

Budget:

1. Festoons [10000 x 50 BDT] 5,00,000 BDT

2. Flyers [200000 x 2 BDT] 4,00,000 BDT

3. TV Commercials [1 x 1,00,000 BDT] 1,00,000 BDT

4. Radio Commercial [1 x 25,000 BDT] 25,000 BDT

5. Gifts for the Opinion Leaders [2000 x300 BDT] 6,00,000 BDT

6. Events Sponsor 5,00,000 BDT

7. Media Commercials Charges 8,00,000 BDT

8. Miscellaneous Expenses 75,000 BDT

Total 30, 00,000 BDT

Objectives:

1St objective: We have to follow up our targeted marketing plan during year by year. Then we

need to specify our target consumers & build a strong relationship with them

2nd objective: after completing our initial stage we have to concern how we can spread it in

whole Dhaka

3rd objective: we need to popularize our product as healthy & pure.

Issues:

In relation to the product launch, our major issue is the ability to establish a well-regarded brand

name linked to a meaningful positioning. We will have to invest heavily in marketing to create a

memorable and distinctive brand image projecting innovation, quality, and value. We also must

measure awareness and response so we can adjust our marketing efforts as necessary.

Conclusion:

By integrating this entire thing we can say that ACI Low GI rice will reinforce the brand name

and should be the best choice for the peoples who are health conscious. Thanks to ACI group

who bring this new product to us.

Reference:

WWW.Facebook.com

http://bangladeshbrandforum.com

http://acinutrilife.com

(http://nutritiondata.self.com/topics/glycemic-index)

(http://www.muktobazaar.com/index.php?s=8&category_id=169&item_id=1531