competitor and customer relationship of aci livestock and fisheries

Competitor and Customer Relationship of ACI Livestock and Fisheries

1.1: Introduction

The remarkable condition in most of the underdeveloped world including

Bangladesh is the large availability of local on the one hand and comparatively small use

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of such capital in industry on the other hand. Some people are investing in productive

way to develop the lifestyle usual the country like Bangladesh. In Bangladesh, there is a

more scope to build up industries and develop our country by using efficient human

resource. There are many industries build up in different aspect and their own position.

But ACI is the largest and one of the leading conglomerates in Bangladesh, with a

multinational heritage.

The company has diversified into three major businesses. e g Pharmaceuticals,

Consumer Brands & Commodity Products and Agribusinesses. That means everything

which is need daily in our life is production in Advanced Chemical Industries (ACI). The

popularity of ACI as an outstanding and the ability to fulfill the demand that is

requirement of much people has inspired me to work on ACI.

1.2: Origin of the Report

The internship program of BBA students of the Department of BBA, Leading University,

is an important part of the BBA program. The duration of this program is for 3 months.

However, I was assigned to head office of ACI Ltd to complete the program. The period

for this program was from 13 February, 2011 to 13 May, 2011. During this period I have

worked closely with the employees of ACI Ltd. A student must submit a report on the

assigned topic to the department and supervisor after the completion of the internship

program period.

Also theoretical knowledge is not enough for a student. It is a far difference between

theoretical knowledge and practical field. So, these two should be synchronized. Our

internship program is launched mainly for this purpose. Another purpose that may be is

to know about the rules, regulations, and environment of an organization before getting a

job. To gather some experience, which will help a student to get a good job, may be

another purpose of the study.

I do my internship program in ACI Livestock and fisheries. ACI Agribusiness is the

largest integrator in Agriculture and Livestock and Fisheries. These businesses have

subunits like Crop Protection, Seed, Fertilizer, Agri machineries, and Animal Health.

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These businesses have glorified presence in Bangladesh. ACI Agribusiness has a large,

knowledgeable and highly skilled force that provides training and technical advices to its

employees.

1.3: Objectives

1.3.1: The Primary Objective: The Primary objective is to preparing this report on

“Competitor and Customer Relationship of ACI Livestock and Fisheries” and to have a

clear conception about all of the essential parts of the internship program.

1.3.2: Secondary Objective: Furthermore, the secondary objectives of this report-

To know the L&F market clearly

To know the marketing activities.

To understand the demand of the product at different area.

Indicating the time when the demand increases.

Finding out the product list & prices of AH.

Reasons of Popularity.

The way how to give incentive.

Process of import

Promotional items taken by companies in different areas of Bangladesh.

How to maintain the customer relationship

1.4: Methodology

This research work for this report is a descriptive one. This research involved both

qualitative and initiative analysis. There are two ways by which I collect my necessary

information to complete my research that are:

I. Primary sources.

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II. Secondary sources.

1.4.1: Primary Sources:

For preparing this report, I need to do some field work. I am going to sylhet and

Gazipur for visiting some doctors, retailer and customers. It makes me better understand

the field of livestock and fisheries in Bangladesh.

1.4.2: Secondary Sources:

In order to collect the secondary data, I have collect data from the following things:

Annual report and brochure of ACI.

Website.

Newsletter.

Printing Material.

Journals.

Different books

Monthly review of project

1.5: Scope and Limitation

In preparing this report I faced some limitations. During this Internship I worked

all the departments of ACI Livestock & Fisheries, particularly in logistics and sales

support for twelve weeks. But ACI is a large dependent corporation, three months study

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time is too short in an organization like ACI and this was the main limitation of my

Internship Program.

Other constraints that I faced during the course of my internship are as follows:

The respondents have got late to response because of being in field or out of head

office in which my duties are to be done.

At the time of face to face discussion with officials, there were no sufficient time,

chairs and tables.

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2.1: Customer relationship

Customer relationship is a widely-implemented strategy for managing a

company’s interactions with customers, clients and sales prospects. It involves using

technology to organize, automate, and synchronize business processes—principally sales

activities, but also those for marketing, customer service, and technical support. The

overall goals are to find, attract, and win new clients, nurture and retain those the

company already has, entice former clients back into the fold, and reduce the costs of

marketing and client service. Customer relationship management describes a company-

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wide business strategy including customer-interface departments as well as other

departments

According to one industry view, CRM consists of:

Helping an enterprise to enable its marketing departments to identify and target

their best customers, manage marketing campaigns and generate quality leads for

the sales team.

Assisting the organization to improve account, and sales management by

optimizing information shared by multiple employees, and reorganization existing

processes (for example, taking orders using mobile devices)

Providing employees with the information and processes necessary to know their

customers understand and identify customer needs and effectively build

relationships between the company, its customer base, and distribution partners.

2.2: Benefits of CRM

The use of a CRM system will confer several advantages to a company

Quality and efficiency Decrease in overall costs Decision support Enterprise agility Customer Attention

2.3: Challenges

Successful development, implementation, use and support of customer relationship management systems can provide a significant advantage to the user, but often, there are obstacles that obstruct the user from using the system to its full potential. Instances of a CRM attempting to contain a large, complex group of data can become cumbersome and difficult to understand for an ill-trained user.

Additionally, an interface that is difficult to navigate or understand can hinder the CRM’s effectiveness, causing users to pick and choose which areas of the system to be used, while others may be pushed aside. This fragmented implementation can cause inherent challenges, as only certain parts are used and the system is not fully functional. The increased use of customer relationship management software has also led to an industry-

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wide shift in evaluating the role of the developer in designing and maintaining its software. Companies are urged to consider the overall impact of a viable CRM software suite and the potential for good or harm in its use.

2.3.1: Poor usability

One of the largest challenges that customer relationship management systems face is poor usability. With a difficult interface for a user to navigate, implementation can be fragmented or not entirely complete.

The importance of usability in a system has developed over time. Customers are likely not as patient to work through malfunctions or gaps in user safety, and there is an expectation that the usability of systems should be somewhat intuitive: “it helps make the machine an extension of the way I think — not how it wants to me think.”

An intuitive design can prove most effective in developing the content and layout of a customer relationship management system. Two 2008 case studies show that the layout of a system provides a strong correlation to the ease of use for a system and that it proved more beneficial for the design to focus on presenting information in a way that reflected the most important goals and tasks of the user, rather than the structure of the organization This “ease of service” is paramount for developing a system that is usable.

2.3.2: Business reputation

Business reputation has become a growing challenge. The outcome of internal fragmentation that is observed and commented upon by customers is now visible to the rest of the world in the era of the social customer; in the past, only employees or partners were aware of it. Addressing the fragmentation requires a shift in philosophy and mindset in an organization so that everyone considers the impact to the customer of policy, decisions and actions. Human response at all levels of the organization can affect the customer experience for good or ill. Even one unhappy customer can deliver a body blow to a business. Some developments and shifts have made companies more conscious of the life-cycle of a customer relationship management system. Companies now consider the possibility of brand loyalty and persistence of its users to purchase updates, upgrades and future editions of software.

2.3.3: Security concerns

A large challenge faced by developers and users is found in striking a balance between ease of use in the CRM interface and suitable and acceptable security measures and

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http://en.wikipedia.org/wiki/Usability


features. Corporations investing in CRM software do so expecting a relative ease of use while also requiring that customer and other sensitive data remain secure. This balance can be difficult, as many believe that improvements in security come at the expense of system usability.

Research and study show the importance of designing and developing technology that balances a positive user interface with security features that meet industry and corporate standards. A 2002 study shows, however, that security and usability can coexist harmoniously. In many ways, a secure CRM system can become more usable.

2.4: Types

2.4.1: Marketing

CRM systems for marketing help the enterprise identify and target potential clients and generate leads for the sales team. A key marketing capability is tracking and measuring multichannel campaigns, including email, search, social media, telephone and direct mail. Metrics monitored include clicks, responses, leads, deals, and revenue. Alternatively, Prospect Relationship Management (PRM) solutions offer to track customer behaviour and nurture them from first contact to sale, often cutting out the active sales process altogether.

In a web-focused marketing CRM solution, organizations create and track specific web activities that help develop the client relationship. These activities may include such activities as free downloads, online video content, and online web presentations.

2.4.2: Customer service and support

Recognizing that service is an important factor in attracting and retaining customers, organizations are increasingly turning to technology to help them improve their clients’ experience while aiming to increase efficiency and minimize costs. Even so, a 2009 study revealed that only 39% of corporate executives believe their employees have the right tools and authority to solve client problems.

2.4.3: Appointment

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Creating and scheduling appointments with customers is a central activity of most customer oriented businesses. Sales, customer support, and service personnel regularly spend a portion of their time getting in touch with customers and prospects through a variety of means to agree on a time and place for meeting for a sales conversation or to deliver customer service. Appointment CRM is a relatively new CRM platform category in which an automated system is used to offer a suite of suitable appointment times to a customer via e-mail or through a web site. An automated process is used to schedule and confirm the appointment, and place it on the appropriate person's calendar. Appointment CRM systems can be an origination point for a sales lead and are generally integrated with sales and marketing CRM systems to capture and store the interaction.

2.4.4: Analytics

Relevant analytics capabilities are often interwoven into applications for sales, marketing, and service. These features can be complemented and augmented with links to separate, purpose-built applications for analytics and business intelligence. Sales analytics let companies monitor and understand client actions and preferences, through sales forecasting and data quality.

Marketing applications generally come with predictive analytics to improve segmentation and targeting, and features for measuring the effectiveness of online, offline, and search marketing campaigns. Web analytics have evolved significantly from their starting point of merely tracking mouse clicks on Web sites. By evaluating “buy signals,” marketers can see which prospects are most likely to transact and also identify those who are bogged down in a sales process and need assistance. Marketing and finance personnel also use analytics to assess the value of multi-faceted programs as a whole.

2.4.5: Social media

Social media sites like Twitter, LinkedIn and Facebook are amplifying the voice of people in the marketplace and are having profound and far-reaching effects on the ways in which people buy. Customers can now research companies online and then ask for recommendations through social media channels, making their buying decision without contacting the company.

People also use social media to share opinions and experiences on companies, products and services. As social media is not as widely moderated or censored as mainstream

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http://en.wikipedia.org/wiki/Facebook

http://en.wikipedia.org/wiki/LinkedIn

http://en.wikipedia.org/wiki/Twitter

http://en.wikipedia.org/wiki/Social_media

http://en.wikipedia.org/wiki/Predictive_analytics


media, individuals can say anything they want about a company or brand, positive or negative.

Increasingly, companies are looking to gain access to these conversations and take part in the dialogue. More than a few systems are now integrating to social networking sites. Social media promoters cite a number of business advantages, such as using online communities as a source of high-quality leads and a vehicle for crowd sourcing solutions to client-support problems. Companies can also leverage client stated habits and preferences to "hyper-target" their sales and marketing communications.

2.5: Strategy

For larger-scale enterprises, a complete and detailed plan is required to obtain the funding, resources, and company-wide support that can make the initiative of choosing and implementing a system successfully. Benefits must be defined, risks assessed, and cost quantified in three general areas:

Processes: Though these systems have many technological components, business processes lie at its core. It can be seen as a more client-centric way of doing business, enabled by technology that consolidates and intelligently distributes pertinent information about clients, sales, marketing effectiveness, responsiveness, and market trends. Therefore, a company must analyze its business workflows and processes before choosing a technology platform; some will likely need re-engineering to better serve the overall goal of winning and satisfying clients. Moreover, planners need to determine the types of client information that are most relevant, and how best to employ them.

People: For an initiative to be effective, an organization must convince its staff that the new technology and workflows will benefit employees as well as clients. Senior executives need to be strong and visible advocates who can clearly state and support the case for change. Collaboration, teamwork, and two-way communication should be encouraged across hierarchical boundaries, especially with respect to process improvement.

Technology: In evaluating technology, key factors include alignment with the company’s business process strategy and goals, including the ability to deliver the right data to the right employees and sufficient ease of adoption and use. Platform selection is best undertaken by a carefully chosen group of executives who understand the business processes to be automated as well as the software issues. Depending upon the size of the company and the breadth of data, choosing an application can take anywhere from a few weeks to a year or more.

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http://en.wikipedia.org/wiki/Crowd_sourcing


2.6: Competitor

Definition: -

Any person or entity which is a rival against another. In business, a company in

the same industry or a similar industry which offers a similar product or service. The

presence of one or more competitors can reduce the prices of goods and services as the

companies attempt to gain a larger market share. Competition also requires companies to

become more efficient in order to reduce costs. A business that provides similar products

or services. The presence of competitors in an industry drives down the price of goods

and services because consumers have more alternatives from which to choose if the price

of a particular good or service is too high.

2.7: Competitor profiling

The strategic rationale of competitor profiling is powerfully simple. Superior

knowledge of rivals offers a legitimate source of competitive advantage. The raw

material of competitive advantage consists of offering superior customer value in the

firm’s chosen market. The definitive characteristic of customer value is the adjective,

superior. Customer value is defined relative to rival offerings making competitor

knowledge an intrinsic component of corporate strategy. Profiling facilitates this strategic

objective in three important ways. First, profiling can reveal strategic weaknesses in

rivals that the firm may exploit. Second, the proactive stance of competitor profiling will

allow the firm to anticipate the strategic response of their rivals to the firm’s planned

strategies, the strategies of other competing firms, and changes in the environment. Third,

this proactive knowledge will give the firms strategic agility. Offensive strategy can be

implemented more quickly in order to exploit opportunities and capitalize on strengths.

Similarly, defensive strategy can be employed more deftly in order to counter the threat

of rival firms from exploiting the firm’s own weaknesses.

Products

products offered, depth and breadth of product line, and product portfolio balance

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http://en.wikipedia.org/wiki/Product_line

http://www.investorwords.com/6664/service.html

http://www.investorwords.com/1055/consumer.html

http://www.investorwords.com/2209/goods.html

http://www.investorwords.com/3807/price.html

http://www.investorwords.com/9499/down.html

http://www.investorwords.com/2447/industry.html

http://www.investorwords.com/6664/service.html

http://www.investorwords.com/3874/product.html

http://www.investorwords.com/623/business.html

http://www.businessdictionary.com/definition/costs.html

http://www.businessdictionary.com/definition/order.html

http://www.investorwords.com/9555/efficient.html

http://www.investorwords.com/10896/require.html

http://www.businessdictionary.com/definition/competition.html

http://www.businessdictionary.com/definition/market-share.html

http://www.businessdictionary.com/definition/gain.html

http://www.businessdictionary.com/definition/company.html

http://www.businessdictionary.com/definition/services.html

http://www.businessdictionary.com/definition/goods.html

http://www.businessdictionary.com/definition/price.html

http://www.investorwords.com/10842/reduce.html

http://www.businessdictionary.com/definition/final-good-service.html

http://www.businessdictionary.com/definition/product.html

http://www.businessdictionary.com/definition/offer.html

http://www.businessdictionary.com/definition/industry.html

http://www.investorwords.com/10993/same.html

http://www.businessdictionary.com/definition/business.html

http://www.investorwords.com/8787/against.html

http://www.investorwords.com/10938/rival.html

http://www.businessdictionary.com/definition/entity.html

http://www.businessdictionary.com/definition/person.html


new products developed, new product success rate, and R&D strengths

brands, strength of brand portfolio, brand loyalty and brand awareness

patents and licenses

quality control conformance

reverse engineering

Marketing

segments served, market shares, customer base, growth rate, and customer loyalty

promotional mix, promotional budgets, advertising themes, ad agency used, sales

force success rate, online promotional strategy

distribution channels used (direct & indirect), exclusivity agreements, alliances,

and geographical coverage

pricing, discounts, and allowances

2.8: COMPETITOR ANALYSIS

Competitor analysis in marketing and strategic management is an assessment of

the strengths and weaknesses of current and potential competitors. This analysis provides

both an offensive and defensive strategic context through which to identify opportunities

and threats. Competitor profiling coalesces all of the relevant sources of competitor

analysis into one framework in the support of efficient and effective strategy formulation,

implementation, monitoring and adjustment.

Competitor analysis is an essential part of corporate strategy. It is argued that

most firms do not conduct this type of analysis systematically enough. Instead, many

enterprises operate on what is called “informal impressions, conjectures, and intuition

gained through the tidbits of information about competitors every manager continually

receives.” As a result, traditional environmental scanning places many firms at risk of

dangerous competitive blindspots due to a lack of robust competitor analysis.

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http://en.wikipedia.org/wiki/Competitor

http://en.wikipedia.org/wiki/Strategic_management

http://en.wikipedia.org/wiki/Marketing

http://en.wikipedia.org/wiki/Reverse_engineering


2.9: Customer Analysis

ACI provides the best quality product for end user. The quality of manufacturing,

materials, and ergonomics found in their which in turn adds to the individual's status and

perceptions of human being health

They are using a strategic form of segment definition. This means ACI does not intend to try to

satisfy every user of molecule. Instead, only those who are most demanding constitute their target

market. The objective is to address the needs of the high-end buyer, who is willing to pay more

for quality product.

2.10: SWOT ANALYSIS

SWOT stands for Strength, Weakness, Opportunity, and Threat. This is a very

important tool for a company to analyze its internal and external environment. Let us

carry out a SWOT Analysis of ACI.

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2.10.1: Strength

Motivated and well organized field force.

Good distribution channel.

Financially stronger company than others.

New modern office.

Quality product.

Large industrial base.

Develop new product.

Corporate Brand Image

Credit facilities

2.10.2: Weakness

Credit policy is not push based

New Product.

Staff training required.

Distribution Commission is very high.

Many old plants.

New business for ACI.

Low profit margin

Flexible price offer by Competitors

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2.10.3: Opportunity

Increase trends of land.

Increase the treatment.

Increasing consumption rate of meat and egg.

Increasing price of beef.

High demand of local milk.

High gap between actual need and supply of protein

Withdrawal of export restriction for shrimp.

Develop new product.

Erosion of small companies by government new regulations.

2.10.4: Threat

Govt. Restriction.

The ACME & Reneta are the main competitors.

McDonalds is the brand leader and hold full market share.

Institutional right customer selection.

Storage capacity is not available.

Completely Credit business

Big customers are not interested to formal credit

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3.1: Historical Background

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ACI was established as the subsidiary of Imperial Chemical Industries (ICI) in the

then East Pakistan in 1968. After independence the company has been incorporated in

Bangladesh on the 24th of January 1973 as ICI Bangladesh Manufacturers Limited and

also as Public Limited Company.

This Company also obtained listing with Dhaka Stock Exchange on 28 December,

1976 and its first trading of shares took place on 9 March, 1994. Later on 5 May, 1992,

ICI plc divested 70% of its shareholding to local management. Subsequently the

company was registered in the name of Advanced Chemical Industries Limited. Listing

with Chittagong Stock Exchange was made on 22 October 1995.

Advanced Chemical Industries (ACI) Limited is one of the leading conglomerates

in Bangladesh, with a multinational heritage. The company has diversified into three

major businesses. Like

Pharmaceuticals

Consumer Brands & Commodity Products

Agribusinesses

3.2: Company Mission

ACI’s mission is to enrich the quality of life of people through responsible

application of knowledge, skills and technology. ACI is committed to the pursuit of

excellence through world-class products, innovative processes and empowered

employees to provide the highest level of satisfaction to its customers.

3.3: Company Vision

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To realize the mission ACI will:

Endeavor to attain a position of leadership in each category of its businesses.

Attain a high level of productivity in all its operations through effective and

efficient use of resources, adoption of appropriate technology and alignment with

our core competencies.

Develop its employees by encouraging empowerment and rewarding innovation.

Promote an environment for learning and personal growth of its employees.

Provide products and services of high and consistent quality, ensuring value for

money to its customers.

Encourage and assist in the qualitative improvement of the services of its

suppliers and distributors.

Establish harmonious relationship with the community and promote greater

environmental responsibility within its sphere of influence.

3.4: Company Value

Quality

Customer Focus

Fairness

Transparency

Continuous Improvement

Innovation

3.5: Business Policy:

3.5.1: Quality Policy

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ACI's mission is to achieve business excellence through quality by understanding, accepting, meeting and exceeding customer expectations.

ACI follows International Standards on Quality Management System to ensure consistent quality of products and services to achieve customer satisfaction. ACI also meets all national regulatory requirements relating to its current businesses and ensures that current Good Manufacturing Practices (cGMP) as recommended by World Health Organization is followed for its pharmaceutical operations.

The management of ACI commits itself to quality as the prime consideration in all its business decisions. All employees of ACI must follow documented procedures to ensure compliance with quality standards.

The pool of human resources of the company will be developed to their full potential and harnessed through regular training and their participation in seeking continuous improvement of work methods

3.5.2: Environmental Policy

ACI is committed to maintain the harmonious balance of our eco-system and therefore constantly seeks ways to manufacture and produce products in an eco-friendly manner so that the balance of nature remains undisturbed and the environment remains sustainable.

In pursuit of this goal, ACI will:

Comply fully with all local and national environmental regulations. Conserve natural resources like water and energy for sustainable development,

and adopt environmentally safe processes. Ensure appropriate treatment of all effluents prior to discharge, to prevent

pollution or degradation of environment. Ensure appropriate communication and cooperate with internal and external

interested parties on environmental issues. Create awareness on environmental issues among our employees and suppliers. Adopt modern waste management technology.

3.6: Ten principles are:3.6.1: Human Rights

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To support and respect International Human Rights within the company's sphere of influence.

To make sure that their own corporations are not complicit with Human Rights Violation.

3.6.2: Labuor

To end discrimination in the workplace. Abolition of child labour. The right to collective bargaining and recognition of freedom of association. To eliminate the use of forced and compulsory labour.

3.6.3: Environment

To support a precautionary approach to environmental challenges. To undertake initiative to promote greater environmental responsibility. To encourage the diffusion of environmentally friendly technology.

3.6.4: Anti-Corruption

To work against all forms of corruption, including extortion and bribery.

ACI pledges to keep all its employees, customers, shareholders and suppliers regularly informed about the compact and the company’s initiatives to uphold the principles

3.7: Business Unites

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Strategic Business Units:

Pharmaceuticals

Consumer Brands & Commodity Products

Agribusinesses:

Crop Care Public Health

Livestock & Fisheries

Fertilizer

Cropex

Seeds

Motors

3.7.1: Pharmaceuticals

ACI carries the legacy of ICI- world renowned British Multinational in providing

the people of Bangladesh with quality medicines and healthcare products. Its state-of-the

art pharmaceutical plant represents Bangladesh's quest for a truly world class

manufacturing facility. ACI's rich heritage leads to innovative and higher value added

formulations.

The comprehensive product range of ACI pharmaceuticals include products from

all major therapeutic classes and in various dosage forms like tablet, capsule, dry

powder, liquid, cream, gel, ointment, ophthalmic and injectable. ACI Pharma also has

state of the art plant on Novel Drug Delivery System (NDDS). It produces world class

Modified Release drug and medicine to cater the requirement of pharmaceutical

manufacturer of domestic and international market.

It exports high quality pharmaceuticals to a good number of countries of Asia,

Africa & South America.

3.7.2: Consumer Brands & Commodity Products

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The Consumer Brands Division boasts in having an unequivocal presence in

consumers' heart with the market leading brands like ACI Aerosol, ACI Mosquito Coil,

Savlon. These are the persistent performers in keeping the household clean and free from

germs and harmful insects.

The necessity of pure food in the minds of Bangladeshi consumers especially in

the commodity food business has pushed ACI to fill up the market gap by producing

commodity products such as Salt, Flour and Spices. Now the customers of Bangladesh

are ensured with 100% pure Salt, Spices products and Wheat products under the brand

name of "ACI Pure".

ACI also represents the world renowned product range of Colgate, Nivea, Tetley,

Godrej & Dabur in Bangladesh through distribution and forming joint ventures.

3.7.3: Agribusinesses

ACI Agribusiness is the largest integrator in Bangladesh in Agriculture, Livestock

and Fisheries and deals with Crop Protection, Seed, and Fertilizer, Agrimachineries,

and Animal Health products. 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 Foiler fertilizer,

Agrimachineries 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 farmers field. ACI provides solution to the

farmers through a large team of scientists & skilled professionals.

3.8: ACI has the following subsidiaries:

ACI Formulations Ltd.

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Apex Leather crafts Limited

ACI Salt Limited

ACI Pure Flour Limited

ACI Foods Limited

Premiaflex Plastics Limited

Creative Communication Limited

ACI Motors Limited

ACI Logistics Limited

3.9: Joint Ventures:

ACI Godrej Agrovet Private Limited

Tetley ACI (Bangladesh) Limited

Asian Consumer Care (Pvt) Limited

3.10: Department of ACI

3.10.1: Administration department

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Administration department specially work to maintain friendly environment

through proper monitoring with the company policy.

3.10.2: Finance and planning

ACI Finance and Planning function is the nerve centre of the conglomerate. The

major areas of its activities include:

Corporate Finance

Treasury

Insurance and risk management

Costing

Credit Management

Accounts payable management

General accounting

Taxation

New business management

3.10.3: Commercial department

Commercial department of ACI ensure all RM & PM to run smooth business.

Also maintain a good liaison with the customer both national and

international.

3.10.4: MIS department

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MIS department of ACI ensures the overall IT related supports for

the company.

Manages a smooth operation of software's, hardware trouble

shooting and business databases related to sales and inventory.

MIS provides customized report and data analysis to the

management.

3.10.5: Distribution department

The company maintains strategically located sales centers in nineteen

different locations across the country.

Distribution system through it’s more than 300 skilled and trained manpower

and a large fleet over eighty vehicles.

Capable of maintaining a cold chain for vaccines and insulin.

3.10.6: Training department

Training activity of ACI is to build up for all members of ACI family through the

training, skill development, and workshop.

3.10.7: HR department

HR Policies and procedures for Recruitment & Selection, Manpower Planning

and succession planning.

The combination of qualitative aspects and Balanced Score Card for performance

appraisal.

Policies regarding car loan, gratuity, provident fund and hospitalization. We offer

performance bonus, leave fare assistance, festival bonus and workers profit

participation fund during different times within a year.

ACI is a place to learn, grow and contribute for improving the quality of life of

people.

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3.10.8: Facilities:

ACI believe that all members of ACI are assets so company tries to fulfill staff want and

demand.

Two special Eid bonuses for all members of ACI

To provide handsome incentive program for field level.

To provide tours national and international in every year.

To provide advance money due to field tours and others occasions.

ACI provide medical bill if any members are admitted in the hospital.

3.10.9: Financial Statement

The maximum financial support comes from the bank due to consolidated long

term and short term bank loans. The support banks are:

Long term bank loans

Standard Charterd Bank

Citibank N.A.

The Hongkong and Shanghai Banking Corporation Limited

Eastern Bank Limited

The City Bank LimitedShort term bank loans

Standard Charterd Bank

Citibank N.A.

The Hongkong and Shanghai Banking Corporation Limited

Eastern Bank Limited

The City Bank Limited

Commercial Bank of Ceylon Plc

AB Bank Limited

BRAC Bank Limited

3.11: Six Years Comparative Statistics 2004-2009

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Particulars 2004 2005 2006 2007 2008 2009

Taka in million

Authorized capital 500 500 500 500 500 500

Issued & paid capital; 162 162 162 162 162 194

Current assets 1,342 1,537 1,755 3,121 4,987 5,366

Tangible fixed assets (gross) 1,006 1,087 1,131 1,541 1,810 1,830

Shareowners' equity 861 906 974 1,255 2,205 3,030

Turnover (net) 2,558 3,089 3,516 4,917 7,365 7,228

Gross profit 740 957 1,176 1,667 2,278 2,366

Profit before tax 141 169 233 426 1,184 1,108

Profit after tax 90 112 154 308 1,076 987

Dividend 69 73 97 137 194 202

Current ratio (times) 1.2 1.0 1.0 1.0 1.13 1.13

Quick ratio (times) 0.5 0.6 0.6 0.6 0.66 0.66

Return on equity (%) 10.4 12.4 15.8 24.6 48.80 32.57

Inventory turnover (times) 2.4 3.0 3.3 3.6 3.20 3.05

Debtors turnover (times) 12 11 10 8 6.68 6.22

Fixed assets turnover (times) 3.8 4.2 5.1 5.7 6.56 6.15

Net asset per share (Taka) 53.3 56.0 60.2 77.7 136.34 156.19

Market price per share (Taka) 94.4 69.6 70.2 181.7 521.30 447.10

Earnings per share (Taka) 5.54 6.94 9.51 19.03 66.52 50.85

Dividend per share (Taka) 4.25 4.50 6.00 8.50 12.00 10.50

Dividend rate ( %) 42.5 45.0 60.0 85.0 120.0 105.0

Dividend payout ratio (%) 76.7 64.8 63.1 44.7 18.9 20.6

Price earnings ratio (times) 17.0 10.0 7.4 9.5 7.8 808

Dividend yield (%) 4.5 6.5 8.5 4.7 2.3 2.3

Number of employees 1,931 2,000 2,476 3,050 3,339 3,552

28


4.1: About ACI Livestock & Fisheries

Since there is a short supply of protein in Bangladesh, the company expects

substantial growth of the animal health industry in the near future. To prepare for this

29


growth, it emphasis on local and value added products through specific action plan;

investment has been made for machines to enhance capacity. It plans to launch the entire

range of products for aquaculture, consisting of water sanitation, pond preparation,

nutritional and medicinal products. For expanding the existing business, it introduces

hatchery vaccination to make the poultry farming safer and more profitable.

4.2: Organogram of L&F

30


4.3: Role of Govt. Sector

31

Co-ordination officerTo BD, AB


The role of Fisheries and Livestock sectors in the development of agro-based

economy of Bangladesh is very important and promising. They contribute around 8% to

national income, which also is 32% of the total agricultural income. About 90% of animal

protein in our diet comes from fish and livestock.

The main functions of the Ministry of Fisheries and Livestock are to preserve

fisheries resources, fulfill the requirement of animal protein through proper management

and planned development, increase socio-economic conditions of fishermen, create

employment opportunities for rural unemployed and landless people, expand foreign

exchange earnings by exporting fish and fishery products and to innovate new

technologies through research for fisheries development and preservation.

4.4: Geography of Bangladesh

Geography of Bangladesh:

Quick look

Location :

Southern Asia, bordering the Bay of Bengal, between Burma and India.

Geographic coordinates : 24 00 N, 90 00 E.

Map references: Asia

Area:

total: 144,000 sq km.

land: 133,910 sq km.

water: 10,090 sq km.

Area-comparative:

Slightly smaller than Iowa.

Land boundaries:

total: 4,246 km

border countries: Burma 193 km, India 4,053 km

Coastline:

32


580 km.

Maritime claims:

contiguous zone : 18 nm.

Continental shelf : up to the outer limits of the continental margin.

Exclusive economic zone : 200 nm.

Territorial sea : 12 nm.

Climate:

Tropical; mild winter (October to March); hot, humid summer (March to June); humid, warm

rainy monsoon (June to October)

4.5: Livestock & Fisheries Population of Bangladesh

Broiler Breeder : 4.5 million

Layer Breeder : 0.75 million

Commercial Broiler : 310 million

Commercial Layer : 20 million

Cattle population : 24 million

White fish hatchery : 12.1 million

White fish culture : 150 million

Shrimp hatchery : 26 million

Shrimp culture : 220 million

Buffalo population : 0.95 million

4.6: Market Situation

Major poultry breeders and feed manufacturers in Bangladesh have opposite the

government's move in fixing DOC prices, and imposing tax on corn imports and pellet

33


feed. The government has fixed broiler and layer prices at BDT 30-32 respectively and

require that advance income tax (AIT) on corn imports and pellet feed be imposed. The

breeders said the decision would not help stabilize the price of DOC because the fixed

price is lower than production cost and could cause a shortage of DOC. But DOC price

reduce abruptly, especially layer DOC. Broiler DOC- Tk.18-20 & Layer DOC- Tk. 8.00

to 10.00 and also Increase feed price Tk.1.00-2.00/kg.

4.6.1: POULTRY:

Layer DOC crisis was around the year.

Broiler DOC price varied from Tk. 18.00-20.00

Poultry Meat price was Tk. 90-130/kg

Egg price was Tk. 5-7/per egg.

Sporadic Bird Flu infection was in minimum scale.

Poultry market grown by 20%.

Key tool for managing through the cattle cycle is an annual set of long-run

planning prices for managers to use when making decisions. These planning prices must

be reassessed each year

4.6.2: CATTLE:

Meat price was good, Tk. 220/kg but milk price was lower.

Massive FMD outbreak from March to September.

A good number of cattle enter from India.

Market grown by 8%

4.6.3: AQUA:

Shrimp culture dropped out significantly due to export restriction.

Fish price was lower.

Telapia:Tk. 70-90/kg

34


Pungas:Tk. 60-65/kg

Ruhi, Katla: Tk.100-150/kg

4.6.4: vaccine

A) Live Vaccine- In Bangladesh three companies are taking maximum market share.

From commercial and breeder market ACI Limited (Ceva) 28 %, Bengal Overseas

Limited (Intervet) 25%, Advance Animal Science (Merial) 20%, Novartis Bangladesh

Ltd. (Fortdodge) 14% and other companies are taking 11% market share. Our projection

is to take 35% market share for the year 2009.

B) Killed Vaccine- This type of vaccine is widely used in Poultry. Is imported from one

of the world famous Company Ceva Sante Animale, France which ensure the purity and

efficiency of the vaccine. This vaccine is produced by using embryonated chicken eggs.

After using this vaccine there will be no side effect. In Bangladesh three companies are

taking maximum market share. Among these ACI Animal Health (Ceva) taking 12%,

Bengal Overseas Limited (Intervet)taking 36% , Advance Animal Science (Merial) 20

%, Fortdoge 12 %, Cedar (BD) Ltd.(Lohman) 6%, Jayson (IZO) 5% and other

companies are taking 9% market share. Our projection is to take 25% market share for

the year 2009.

Categories wise name of the products & vaccines in Livestock & Fisheries

VACCIN for Poultry

DAIRY POULTRY AQUA

35


IBDLND IB EDSKNEW L

AntiwormCalfostonicHistavet

AcimoxCocci-KChick tonic

Megazeo PlusVirex

4.7:Marketgrowth

4500

5850 61007020

8285

0

2000

4000

6000

8000

10000

2006 2007 2008 2009 2010

36


37


4.8: Major Contribution by product group in Livestock & Fisheries

Industry

20%

4%13%

26%

17%20%

Medicine

Feed Additives

Nutrition

Biologicals

Toxinbinder

Others

4.9: Segment wise Growth for ACI

Tk. 453 million Tk. 625 million Tk. 800 million

4.10: PRODUCT

ACI Animal Health Products are marketed since 1997 in Bangladesh to prevent

from any kind of Animal Dieses and best supplying nutritional product for animal by

manufacturing own and also import from different countries and marketing them very

successfully. ACI Live stock & Fisheries main product are Categories wise segmented.

This are-

VACCINE

POULTRY

DAIRY

38

Source: Annual Conference


AQUA

4.11: PRICE

The aim of ACI livestock and Fisheries is to reduce the gap between demand and

supply of protein. The year 2009 was a successful one for livestock and fisheries as it

achieved 110.7% split growth of sales. Products are determined there pricing according to

the cost of product to manufacture. It is including the cost of raw materials, distribution

and other cost is added to the actual product.

4.12: Product and price list of L&F:

4.12.1: Poultry product list:

SL #

Code SMSCODE Product Name Pack Size MRP

1 AHF4 DY Acilyte Powder Vet 1 Kg 1 KG 135.002 AHG9 EV Acimec 1 % Oral Solution 100ml 107.403 AHGA EW Acimec 1 % Oral Solution 1ltr 999.764 AH56 AX Acimix Super B 25 Kg 25 KG 3,360.005 AH81 BC Acimix Super B+c 1 Kg 1 KG 335.006 AHBN BA Acimix Super B+c 100 Gm 100 GM 42.007 AH79 BB Acimix Super B+c 500 Gm 500 GM 180.008 AH47 AY Acimix Super Br 25 Kg 25 KG 4,050.009 AH57 AS Acimix Super Gs 25 Kg 25 KG 3,000.0010 AH45 AU Acimix Super L 10 Kg 10 KG 1,200.0011 AH55 AV Acimix Super L 25 Kg 25 KG 3,000.0012 AHA4 BE Acimox (vet) Powder 100 GM 267.2513 AHEC DM Acimox Vet Powder 500gm 500 GM 1,300.7514 AHI4 CX Aciphryl Vet Powder 100gm 100GM 240.0015 AHFJ EN Acitol B12 Injection 10 Ml 50.1916 AHFK EM Acitol B12 Injection 100 Ml 376.4217 AHHM IS Acivet C Powder Vet 1 Kg 1 KG 1,520.0018 AHHL IT Acivet C Powder Vet 100 Gm 100 GM 170.0019 AHE8 DI Acivet Cipro Oral Sol 100 Ml 100 ML 233.0020 AHEI DT Acivit B1b2b6 Powder (vet) 100 100 GM 86.8621 AHHY JG Acivit Ws 100gm 100GM 270.0022 AH04 BD Alquerzim 100 Gm 100 GM 215.0023 AHC4 BG Anti-dox Powder 100gm 100 GM 160.0024 AH41 AK Ascarex (100 Gm) 100 GM 73.1525 AH42 AL Ascarex (500 Gm) 500 GM 275.2826 AHB6 BI Ayucal D (1 Kg) 1 KG 270.0027 AHB4 BJ Ayucal D (10 Kg) 10 KG 2,500.0028 AHB5 BH Ayucal D (500 Gm) 500 GM 145.0029 AH15 KK Ayucal Primix 500gm 500 GM 165.0030 AH27 BK Bactitab (5x4's) 20'S 59.2031 AHD5 BM Bactitab Powder 1 Kg 1 KG 662.4932 AHB9 BL Bactitab Powder 100 Gm 100 GM 82.0033 AHBA BN Bactivet Suspension 60 Ml 60 ML 68.26

39


34 AH99 J Bactrin (5 X 4's) 20'S 270.0035 AHF1 DR Calvet-p Powder 1kg 1 KG 428.0036 AHF2 DS Calvet-p Powder 500gm 500 GM 230.0037 AH24 CI Chicktonic 1 Ltr 1 LT 700.0038 AHCM CH Chicktonic 100 Ml 100ML 90.0039 AH34 CG Choline Chloride 60% (25kg) 25KG 1,050.0040 AHC6 CK Cocci - K Powder 100gm 100 GM 190.7241 AHC7 EI Cocci - K Powder 500gm 500 GM 903.4042 AHHB LX Dcp 25 Kg 1 LTR 1,200.0043 AH89 CM Diaroak 15 Kg 15 KG 2,600.0044 AHFD ED Eryvet Powder Vet 100 Gm 310.0045 AHHZ MD Essenpro 25 Kg 25 KG 98,000.0046 AH29 V Fevasole (metamizole) 10x10ml 10X10ML 240.0047 AHFE EE Flumivet Powder Vet 100 Gm 241.0048 AHIF FK Gro Up 1 Kg 1kg 340.0049 AHHC MO Gro Up 20 Kg 20kg 6,300.0050 AHCB CR Hepavex -200 1 LTR 340.0051 AHEB DL Hepavex 200 100 Ml 100 ML 70.0052 AHFZ NC Maduramicine 1% 25 Kg 25 KG 3,500.0053 AHG7 NW Paraform Prills 5kg 2,750.0054 AHGC FA Sel E Vet 1 Ltr 1,045.0055 AHGB EZ Sel E Vet 100 Ml 120.0056 AHC9 CY Stresroak 1 Ltr 1 LTR. 610.0057 AHAU CU Superliv Conc.premix (20 Kg) 20 KG 2,300.0058 AHB1 CW Superliv Liquid (1 Ltr) 1 LTR 240.0059 AHB2 CV Superliv Liquid (500 Ml) 500 ML 130.0060 AH50 CZ Toxiroak (10 Kg) 10 KG 1,250.0061 AHB3 DA Toxiroak (25 Kg) 25 KG 2,750.0062 AHGD OL Tylo Doxi Powder 100 Gm 301.1363 AHGE OM Tylo Doxi Powder 500 Gm 500 GM 1,455.4764 AHE2 DB Tylotar (vet) Powder 100gm 100 GM 210.7965 AHCE DF Virocid 1 Ltr. 1 LTR. 950.0066 AHE1 DE Virocid 100 Ml 100 ML 110.0067 AHCF OO Virocid 20 Ltr. 20 LTR. 18,000.0068 AHHW OQ Virophor (poultry) 100ml 100ML 120.0069 AHHX OR Virophor (poultry) 1ltr 1 LTR 1,000.0070 AH96 OS Vitamina Ad3e 100 Ml 100 ML 120.0071 AHIC FI Vitamina Ad3e 500 Ml 500ml 560.0072 AH70 DD Vitamina Ad3e 1 Ltr 1 LTR 980.00

4.12.2: Dairy Product list

SL # Code SMSCODE Product Name Pack Size MRP1 AHA8 A Acigent-10 (vet) Injection 10X10ML 451.702 AHA9 IK Acigent-10 (vet) Injection 1X50ML 190.723 AHCL B Acigent-10 Injection 100 Ml 100 ML 301.124 AHFO EL Acimec 1% Injection 25 Ml 215.815 AHFN EK Acimec 1% Injection 5 Ml 60.236 AHD8 I Acinex (vet) Bolus 4X5'S 300.007 AH01 E Acipilline 2 Gm 2 GM 50.008 AHFJ EN Acitol B12 Injection 10 Ml 50.199 AHFK EM Acitol B12 Injection 100 Ml 376.4210 AHF5 DZ Acivit Ade Vet Inj 10 Ml 79.3011 AHF6 EA Acivit Ade Vet Inj 100 Ml 592.23

40


12 AHGW IE Acivit Db Powder 1 Kg 1 KG 250.0013 AHGU IF Acivit Db Powder 100 Gm 100 GM 38.0014 AHGV JC Acivit Db Powder 500 Gm 500 GM 130.0015 AHA7 F Antiworm (vet) Bolus 20's 5X4'S 427.6016 AH51 G Ayumin (1 Kg) 1 KG 125.0017 AHI2 OU Azinc (vet ) Syrup 1 Ltr 1ltr 250.0018 AHI1 OT Azinc (vet ) Syrup 500ml 500ml 150.0019 AH36 K Calcivit Plus (100 Ml) 100 ML 99.5020 AH12 N Calfostonic 1 Kg 1 KG 270.0021 AH10 L Calfostonic 100 Gm 100 GM 40.0022 AH11 M Calfostonic 500 Gm 500 GM 140.0023 AHHA IC Calvet-p Oral Suspension 1 Ltr 1 LTR 215.0024 AHH9 ID Calvet-p Oral Suspension 500 M 500 ML 115.0025 AHFL EP Catopan Vet Injection 10 Ml 50.1926 AHFM EO Catopan Vet Injection 100 Ml 456.7227 AHAA Q Diatrim (5x4's) 20'S 265.0028 AHBC R Digimix Powder 10x20 Gm 10X20GM 129.0029 AH32 U Endokill (8x5 Boli) 8X5BOLI 320.0030 AH29 V Fevasole (metamizole) 10x10ml 10X10ML 240.0031 AH30 W Hista-vet (pheniramine) 10x10 10X10ML 102.4032 AHCI X Hista-vet Injection 100 Ml 100 ML 87.0033 AHE7 DH Oxytet 100 Injection 100 Ml 100 ML 186.0034 AHE6 DG Oxytet 100 Injection 10x10 Ml 10X10 250.0035 AH31 AC Penbacllin (40lac) 40 LAC 38.5836 AH35 AD Salidone 25ml 25ML 32.5037 AHCJ AE Salidone Injection 100 Ml 100 ML 108.4138 AHD7 AG Strepto P2.5 (vet) Inj 6X1'S 283.0839 AHD6 AF Strepto-p 0.5(vet) Inj. 25X1'S 276.0040 AHAB AH Tmprin S (5x4's) 20'S 100.00

4.12.3: Aqua Product list

SL # Code SMSCODE Product Name Pack Size1 AHBL AZ Acimix Super Fish 2.5 Kg 2.5 KG2 AHHR IJ Aqua C 100gm Pot -100gm 100GM

POT3 AHHS JW Aqua C 1kg Pot 1 KG POT4 AHHU JX Aqua Cal C 1kg Pot 1 KG POT5 AHHT JY Aqua Cal C 100gm Pot -100gm 100 GM

POT6 AHFQ EQ Aqua Photo 1 Ltr 1 LTR7 AHFV JZ Aquamin 1 Kg Plastic Pot 8 AHH5 KA Aquamycine 25% 1 Kg Pot 1 KG9 AHH4 KB Aquamycine 25% 100 Gm Pot 100 GM10 AHFU KC Aqurote Gold 1 Kg Sachet 11 AHFR ER Bio-ox 1 Kg 1 KG12 AHH3 KR Bio-ox Sachet 100 Gm 100 GM13 AHHD ME Fish Pro Super 25 Kg Bag 25 KG14 AHGX MQ Indo Zeolite 50 Kg 50 KG15 AHGZ ND Mega Zeo Plus 10 Kg 10 KG16 AHH0 NE Mega Zeo Plus 25 Kg 25 KG17 AHGY NF Mega Zeo Plus 5 Kg 5 KG18 AHH6 NT Oxy-dox-f 1 Kg Pot 1 KG19 AHH7 NU Oxy-dox-f 100 Gm Pot 100 GM

41


20 AHFI OA Pellet Bond 25 Kg Bag 25 KG21 AHGK EY Virex 100 Gm 100 GM22 AHG6 EU Virex 5kg 23 AHGJ EX Virophor 2.8% 100 Ml 100 ML

4.12.4: Vaccine list

SL # Code SMSCODE Product Name Pack Size MRP1 AHI5 FB Bursimune 1000 Dose 1S 480.002 AHI3 OP C.corymune 7k 500ML 10,560.003 AHBZ BU Cevac Bi L 1000 Ds 1000 DS 312.004 AHCT BT Cevac Bi L 500 Dose 500 DOS 195.005 AHHJ LE Cevac Corymune 4k 1000 Dose 1000 0.006 AHCX BX Cevac Fp L 1000 Dose 1000 375.007 AHBV BQ Cevac Gumbo L 1000 Ds 1000 DS 364.008 AHCR BP Cevac Gumbo L 500 Dose 500 DOS 230.009 AHBT BS Cevac Ibd L 1000 Ds 1000 DS 832.0010 AHCS BR Cevac Ibd L 500 Dose 500 DOS 440.0011 AHE3 CD Cevac Nd Ib Eds K 1000 Dose 1000 DS 4,614.1212 AHCV CC Cevac Nd Ibd K 1000 Dose 1000 2,730.4013 AHCU CA Cevac New K 1000 Dose 1000 1,450.0014 AHBX BW Cevac New L 1000 Ds 1000 DS 145.0015 AHCQ BV Cevac New L 500 Dose 500 DOS 100.0016 AHGO LL Cevac Transmune Ibd 5000 Dose 5000 3,780.0017 AHCZ BZ Cevac Vitabron L 1000 Dose 1000 340.0018 AHGM LM Cevac Vitabron L 2000 Dose 2000 702.0019 AHCY BY Cevac Vitapest L 1000 Dose 1000 206.0020 AHGQ CB Diluent 18 Ml 12.0021 AHA3 CQ Diluent Oculo/nasal 1000d/35ml 35 ML 12.0022 AHI6 FC Poximune 1000 Dose 1S 630.0023 AHI7 FD Poximune Ae 1000 Dose 1S 1,711.0024 AHI9 FF Reomune-3 1000 Dose 1S 8,815.0025 AHI8 FE Repromune-4 1000 Dose 1S 17,163.00

4.12.5: New product for L&F in 2011:

Cattle Products:

– Fevasol 100 ml

– Hozom (Vet) Tablet

Poultry product:

– Betamint (100 ml)

– Neo-Doxy Vet

– Amcol Vet

– Cinrotin Vet

– Ampro-K

– Acivit B+C

42


– Acivit AD3E Oral

– Feed Enzyme

Aqua:

– Navio plus

– Gluco vet

4.13: Compare and comparison of competitor’s product of ACI

Compared to other products ACI L&F products are not so high. Its pricing is applied

to think about the people purchase behavior. Products price are not so high though ACI

itself is a Brand. Because they want to fulfill there aim that was to meet demand of

protein in our country. So ACI charges minimum prices in there product because of

To Increase Completion in the Market

Market is highly competitors so that other might grave the share

Customer are switchable they are very price sensitive

Some of the product is highly demandable customers are loyal to the product

Customers get faith because of its service center

They give credit facilities to the customers

4.14: Distribution Network

ACI Logistics Limited is a subsidiary of ACI Limited. The objective of this

subsidiary is to engage in the business of buying, selling, import and export of agro

produces FMCG products and other commodities directly to consumers.

The company maintains strategically located sales centers in nineteen different

locations across the country. It has developed an advanced distribution system through its

more than 300 skilled and trained manpower and a large fleet over eighty vehicles. The

distribution system is capable of handling continuing volume of diverse range of products

From the various businesses

The Company’s distribution centers are highly streamlined, computerized and automated.

We are capable of maintaining a cold chain for some specialized range of products such

43


as vaccines and insulin. The combination of this advanced function and multidimensional

capabilities made it possible to handle hundreds of products efficiently.

ACI livestock & Fisheries Product marketing and distribution happens through

this channel. ACI has two types of product Like some of there product is there own and

some of the product that import from out side of the country for example Cevac is a big

company in the field vaccine when ACI wants to buy Vaccine from Cevac then they first

meet with the commercial department and commercial department has lot of

responsibility including pricing, LC all those thing. Then product imported by Air or

Ship. Then it goes to Factory then it goes to Depot there are 19 Depot in the Bangladesh.

And depot distributed product according to there road.

4.15: PROMOTION ACTIVITY

ACI Livestock & Fisheries offer high quality products and technology for the

customer. They also cover full range of products for poultry, dairy, fisheries and

biological products with attractive pack size. ACI develop latest molecule for customer

through product management team. It will time to time coordinate with the warehouse

requirement.

4.16: Push & Pull Strategy

ACI L & F Follow Push & Pull Strategy to their Business

A push-pull-system in business describes the movement of a product or information

between two subjects. On markets the consumers usually "pulls" the goods or

information they demand for their needs, while the officers or suppliers "pushes" them

toward the consumers. In logistic chains or supply chains the stages are operating

normally both in push- and pull-manner. Push production is based on forecast demand

and pull production is based on actual or consumed demand. The interface between these

stages is called the push-pull boundary or decoupling point.

Push Pull

Field Force Customers—

44


Delar

Distribution Channel

Wholesaler

Retailar

Doctors

Traders

Farmers

4.17: SALES PROMOTION

Sales promotion is one of the four aspects of promotional mix. (The other three

parts of the promotional mix are advertising, personal selling, and publicity or public

relations.) Sales promotion includes several communications activities that attempt to

provide added value or incentives to consumers, wholesalers, retailers, or other

organizational customers to stimulate immediate sales. These efforts can attempt to

stimulate product interest, trial, or purchase. Examples of devices used in sales promotion

include coupons, samples, premiums, point-of-purchase (POP) displays, contests, rebates,

and sweepstakes. Livestock & Fisheries works to increase their sales. They have a big

budgets in there annual budgets. They spend a big amount of money in the sales

promotion campaign.

4.18: ACI follow the different promotional activity

45

http://en.wikipedia.org/wiki/Public_relations

http://en.wikipedia.org/wiki/Public_relations

http://en.wikipedia.org/wiki/Publicity

http://en.wikipedia.org/wiki/Sales

http://en.wikipedia.org/wiki/Advertising

http://en.wikipedia.org/wiki/Promotional_mix

http://en.wikipedia.org/wiki/Promotional_mix


Group Meeting : ACI arrange no. of meeting in every month for customer (farmers,

doctors, chemist even village doctors want and demand.

Gift : ACI provide the different types of promotional gift to the customer, doctors,

chemist to awareness’ for smooth business support.

Leaflet & Literature : It is another effective promotional activity. It provide to the

doctors, chemist for the better formal communication that is knowledge and technology.

Special Price : Sometimes ACI provide the special price to the valuable and big

customer.

Bonus Program : ACI offered the bonus program to the customer depends on seasonal

requirement and sales plan.

Product Sample : Product sample is another promotional activity. It provide to the

doctors and farmers for the knowing about the ACI new product.

Yearly Program : Yearly closing are arrange to the customer for get-together with the

higher management.

Customer Category:

4.19: Communication Mix

Marketing Communication is an ever changing field. New theories, new techniques,

Cultural changes an technological advances all combine to create a dynamic environment

46


within which marketers try to ensure that their messages get through to there target

audiences. Marketing promotional tools is four-way division into advertising, public

relation, sales promotion and personal selling

Customer Focus: Partnership

Sales Growth: 40% when industry growth 15-20%.

Local Production: Production facilities improvement.

Sales: Emphasis on Local Product sales

PBT%: Maintaining PBT%.

RM and PM cost increase due to high foreign exchange rate.

Huge limitation in production

Support limitation-

Credit system

Distribution ( more modernized support)

Market situation

New entry with low price

Scattered avian influenza occurrences

4.20: ADVERTISING:

Advertising is one of the important parts of the company. It is important to know

about the information of the product to the customer. ACI Live stock & Fisheries product

are not advertised in TV because there are some rules and regulation from drugs so they

show respect on the tulles. But they follow different strategies. They advertised in

different channel like print media, poster, FGD, Tanning to the farmers, Doctors examine

and visiting and giving free medical service to the animal. Sometimes they arrange fair

for the animal.

4.21: Customer Incentive:

Objective

To achieve the budget

47


To ensure the segment wise achievement

To increase the income of the field forces

To get the maximum market share

The way how to give the incentive

• 2% invoice discount will continue

• 2% yearly incentive for the targeted customer will continue.

• For Cevac Vaccine:

– 8% for 3 lacs per month



– 4% for 50 thousand per month

– 3% for 25 thousand per month

• Strengthen infrastructure through internal people development.

• Ensure appropriate training for the field forces.

• Attractive incentive package

48


5.1: STRATEGIC OPERATION

5.1.1: Objectives

49


Maintain position and reduce gap

Expected growth by segment.

Improve quality of business, stock debtor and profit.

Achieved and Forecast

5.1.2: Expected Market situation

DOC supply will increase Large number of New Entry may come. Price of DOC & egg will be increase. Season start for Fisheries business. All L&F personnel will convince to achieve target considering vaccine shortage. Bird Flu may not be a problem

5.1.3: Opportunity

Increasing price of beef. High demand of local milk. High gap between actual need and supply of protein, around 75%. Withdrawal of export restriction for shrimp. Price of DOC & egg will be increase. Bird Flu may not be a problem. Season start for Fisheries business. All L&F personnel will convince to achieve target considering vaccine shortage.

5.1.4: Segment wise opportunity

Poultry:- Huge gap between available protein & total requirements

50


- 10 % growth over industry growth

Dairy :- Partially untouched potential prescribes all over the country- Morally we are agree to grow faster then earlier

Aqua : - Development process of modern farming system - Farmers start to convert white fish farming instead of shrimp

5.1.5: Sub-Strategy by Segment

Poultry Products:o Improving Market Share from 6% to 8%.o Emphasis on local products.

Vaccines:o Improvement of Market Share from 19% to 21%.o Emphasis on Killed vaccines especially institutional market.

Cattle products:o 50% growth over last year and market share from 8.5% to 12%.o Emphasis on Acitol B12 & Catopan Inj.

Aqua Products:o Improve Market share from 14% to 18%.o More emphasis on the products for pond preparation.

5.1.6: Specific plan for individual Segments

Poultry:

• Farmer’s services through Farms survey report.

• To emphasis on Local, value added & each part of poultry products

• Promotional program for contact customer

• Special monitoring & follow up to vital customer in each area.

• Promotion through e-communication for sharing updated information to the

doctors and consultants.

Aqua:

51


• To organized pocket meeting with 10-15 farmers for instant technical service &

solution.

• To Make Prepared demo Pond, show the another farm owners of our product

quality and service.

• From our data bank of Customers, Doctors and Consultants we will send SMS for

new technology.

Dairy:

Activities for Sales team:

• To increase prescription generation

• Product wise sales ensure by team leader

• Technical team emphasis on dairy segments

• Select 600 prescribe all over the country for proper monitoring & services.

Activities for Product mgt team:

• Each month provide at least 2 product related specific technical information for

Sales team.

• Promotional campaign FF & Customer.

• Technical seminar organized for introduce new technology.

5.2: Action Plan for Bulk business

• Individual warehouse for bulk products

• Direct delivery from warehouse to Customers

• Initially start with Institutional Business.

• Appointed experienced persons from trading house.

• Flexible price based on Customer

• Special incentive for Purchase responsible Persons.

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6.1: Findings & Recommendations

In Bangladesh the most popular way of developed on agribusiness, so company is

launches its business on that. Many firms of Bangladesh are enjoying a large profit and

size on there agribusiness but ACI Livestock & Fisheries is maintaining huge profit.

ACI Livestock & Fisheries is the part of ACI Agribusiness. In the Livestock &

Fisheries business, ACI give the complete range of cost effective products which can

provide appropriate solutions for the farmers through insecticides, herbicides, and

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fungicides. ACI FL plan to increase their portfolio through the introduction of biotech

products.

Marketing Strategic plan of ACI is designed for the project of ACI Livestock &

Fisheries. The plan includes a promotions opportunity analysis, corporate strategies,

objectives, plus all relevant advertising, promotion, personal selling, sponsorship, and

database programs. Although Marketing Strategy requires a lot of effort it delivers many

benefits. It can create competitive advantage, boost sales and profits, while saving

money, time and stress. IMC wraps communications around customers and helps them

move through the various stages of the buying process. The organization like (ACI)

simultaneously consolidates its image, develops a dialogue and nurtures its relationship

with customers.

ACI Livestock & Fisheries offer high quality products and technology for the customer.

They also cover full range of products for poultry, dairy, fisheries and biological

products with attractive pack size. ACI develop latest molecule for customer through

product management team. It will time to time coordinate with the warehouse

requirement. ACI follow the different promotional activity.

I think they need more equipment and human resource to gain more profit. Now I am

showing some of important point.

More land to build up warehouse.

More new advanced machineries.

Efficient Customer Service Officer.

Available Raw Material.

Well decorate storehouse.

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New production house.

5.2: Conclusion

ACI Livestock & Fisheries plays a very vital role in the economic development of

the agriculture as well as country. The popularity of products of ACI Livestock &

Fisheries is increasing day by day which leads to increase competition as well. Their new

invention for tea garden which is Grow-up and Tydoxi for poultry as well as Calvit-P and

Acivit DB for Dairy are easily useabe, accessible and has the efficiency. ACI Livestock

& Fisheries is taking it as a challenge to become a leader of agribusiness through

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innovation and use the Marketing Strategy and Communication. The new product

occupies a specific niche within the pesticide market. The competition does not provide

comparable products information, because they lack the combination of technological

integration and quality in materials that the ACI offer. Their strongest competition

includes the ACME. Over their ACI have some challenge, because of new organization.

They always provide low rate and attractive package. In contrast, ACI targets potential

customers who are already searching for high-quality products. I think with the

exhaustion of new technological products advancement ACI Livestock & Fisheries

preserves the right be the leader of agribusiness industry in Bangladesh and would be in

the near future.

Appendix

Bibliography

Kotler, Philip and Armstrong, Gary (2006), “Principles of Marketing”, 11 th

Edition, Pearson Education Inc, Upper Saddle River Kotler, Philip and Keller, Kevin Lane, (2006), “Marketing Management” 12th

Edition, Pearson Education Inc, Upper Saddle River

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Flatley Lesiker,”Basic Business Communication”,9th Edition Naresh K.Malhotra,”Marketing Research”,5th Edition Zikmund G Willium,” Business Research Methods”,7th Edition Annual Report of ACI Limited ”Beams” Monthly publication of ACI Limited Publication of ACI Limited,Agribusiness Official websites of ACI Limited Budget of ACI L&F,2009 and 2010 Monthly Magazine

Internet Sources:

www.aci-bd.com www.google.com www.wikipedia.com www.brs-inc.com www.valuebasedmanagement.net en.wikipedia.org www.rapidbi.com www.business-analysis-made-easy.com

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http://www.valuebasedmanagement.net/

http://www.brs-inc.com/

http://www.google.com/

http://www.aci-bd.com/

competitor and customer relationship of aci livestock and fisheries

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