MARKETING PLANMARKETING PLAN

PRODUCT: ACI AEROSOLPRODUCT: ACI AEROSOL

B US 620

MARKETING MANAGEMENT

SECTION – 1

“MARKETING PLAN OF ACI AEROSOL”

PREPARED FOR:

Belayet Hossain, Ph.D.

FACULTYSCHOOL OF BUSINESS

MBA PROGRAMNORTH SOUTH UNIVERSITY

PREPARED BY :

NORTH SOUTH UNIVERSITYSchool of Business

Date: July 28, 2009

Prof. Belayet Hossain, Ph.D

Faculty,

School of Business,

North South University,

Dhaka

Dear Sir:

Subject: Submission of term paper on “Marketing Plan of ACI AEROSOL”.

Here is the report on “Marketing plan of ACI AEROSOL” as a requirement of our course BUS-620

(Marketing Management).

During this period of studies, we have tried to put forth our best effort to make this paper a

comprehensive one. Still this paper is not free from any shortcoming due to our limited knowledge.

Nevertheless we tried our best to make this report a complete one.

All our efforts will be fulfilled if this report is able to clarify and satisfy all the requirements, which

was assigned to us.

We would therefore like to submit this report to you and hope that you would show your kindness

by accepting this report.

We would also like to thank you for your kind consideration.

With best regards

Sincerely yours,

EXECUTIVE SUMMARY

Financial Success often depends on marketing ability. Finance, operations, Accounting and other business

functions will not really matter if there is not sufficient demand for products and services so the company

can make a profit. The ultimate purpose of marketing a product is to sell the product. How successful the

selling of a product will be depends on the product quality, price and how people perceive the product.

The main target of the marketers is to help a product create an impressive and positive image among the

potential buyers. In this paper I have done a thorough study on “ACI AREOSOL” insecticide products. I

tried to find out their strength, weaknesses, opportunities in the present situation and also threats it

receives from the external environments. ACI already hold a strong position and reputation in the market

of insecticides with their product “ACI AEROSOL” they have a strong distribution channels all over the

country, they take into consideration the environmental issues and they also maintain an international

level of advertising for brand promotion. I also found that the other insecticide brands like Mortein,

Leader, Globe and ARS are coming up with a strong marketing plan and doing well in the market.

Through their research findings it is evident that usually people perceive “ACI AEROSOL” as an insect

or mosquito killer with premium quality.

7

iii

TABLE OF CONTENT

Executive Summary iii

CHAPTER 1   1.1 Introduction 2 1.2 Company Profile 4 1.3 Product Line 6CHAPTER -2   2.1 SWOT analysis 8 2.2 Target Market 10 2.2.1 Target market and Target market strategy 11 2.2.2 Strategy 11 2.2.3 Basis of segmentation 12 2.2.3.1 Geographic 12 2.2.3.2 Demographic 13 2.2.3.3 Psychographic 14 2.3 Market Research 14 2.3.1 The Marketing concept of Reckitt Beckinzer 14 2.3.2 Strategic Business Units 15 2.3.4 Strategic SBU’s of Reckitt Beckinser 16 2.3.5 Branding packaging and Labeling of Mortein 16 2.3.6 The Overall Brand management of Mortein 17 2.3.7 Management for Mortein 18 2.3.8 Quality Assurance in Mortein 18 2.3.9 Sales and profit figure of Mortein 18 2.4 Position of Mortein in the BCG Growth Matrix 19 2.5 Marketing Objectives and Goals 20 2.6 Marketing Strategy 20 2.6.1 Mortein’s life cycle Stage 20 2.6.2 Strategy 21CHAPTER 3   3. Findings of Mortein 23 3.1 Develop a new product pricing strategy 23 3.2 Focus more on promotional activity 24 3.3 Newspapers and magazines 25 3.4 Television and Radio 25 3.5 Billboards 26 3.6 Posters, Danglers, Buntings, stickers 26 3.7 Use Push and pull Strategy 26 3.8 Take appropriate actions to increase the reputation of the brand name 27 3.9 Take a lead in the social welfare activity 27 3.10 Implementation and control 28CHAPTER -4   Conclusion 29

CHAPTER-1

1.1 INTRODUCTION:

This report has been prepared for Professor Belayet Hossain, Faculty of Marketing Management

course (BUS 620) at North South University. In this report I analyze the present maketing plan

of ACI AEROSOL one of the popular product in Bangladesh. I tried to find out their

opportunities and weakness in the present day situation and also threats it receives from the

external environment.

1.2 COMPANY PROFILE:

ACI is a renowned company of Bangladesh. 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. ACI Emphasize on

following values these are:

Quality

Customer Focus

Fairness

Transparency

Continuous Improvements

Innovation

1.3 PRODUCT LINE:

In offering a product line, companies normally develop a basic platform and modules that can be

added to meet different customer requirement. Product line manager need to know the sales and

profits of each item in their line in order to determine which items to build, maintain, harvest or

divest. They also need to understand each product lines market profile. Product is the most

important attribute for any manufacturing company. All the activity of the company is done to

manage the product. Product line a group of closely related product items that are considered a

unit because of marketing, technical or end use considerations.

ACI Limited is proud of the products that consists this part of the Consumer Brands division.

These products are: ACI Aerosol and ACI Mosquito Coil.

ACI Aerosol is one of the prestigious products of this country which has been enjoying the

market leadership position since its marketing in 1967. ACI Aerosol is produced through a

unique process of production and quality checking. The Formulation Factory of ACI Aerosol is

situated in Rajabari, Gazipur. This factory was established with the technical collaboration of

UNDP. The product is one of its kinds with unique fragrance and mosquito killing ability. It is

fully free from any environmentally perilous material like CFC. ACI Aerosol has four different

pack sizes. They are: 250 ml, 350ml, 475 ml and 800 ml.

ACI Mosquito Coil is another product of the Home Care category products of ACI Consumer

Brands. It is also produced in ACI Formulations. ACI Mosquito Coil also has some

differentiation based on color, shape and fragrance. These are: ACI Mosquito Coil Green, ACI

Super Coil and ACI Super plus High Booster Coil. ACI Coils enjoys very predominant position

and fighting to become absolute leader in the market place.

CHAPTER-2

2.0 SITUATIONAL ANALYSIS:

2.1 POTENTIAL MARKET:

As ACI is one of the leading and recognized companies in pest control category, “ACI

AEROSOL” has already achieved the market’s belief, which produces a challenging

environment for the competitors.

ACI took steps in obeying the social obligations, they are able to gain goodwill among

the High income class of people and thus attract more consumers. In contrast no such

obligatory steps have been seen from the competitors’ side as they are in the leading

position in the market by their quality.

ACI carries out essential researches in order to market their product to the right people in

the right way, thus again being appreciated by the market, whereas their competitors

follow no such researches and thus are not enough appreciated by people.

ACI AEROSOL’s promotional, brand management and advertising strategy is realy

strong to differentiate its product line with that of competitor’s product. This is providing

them the competitive advantage in the mind of the target consumers.

ACI AEROSOL is able to cover wider region in the country, as the company has more

dealers than any of its competitors due to its well structured segmentation strategy.

2.2 PRODUCT SATISFIES THE NEED OF THE MARKET:

Whether the buyer is satisfied after purchase depends on the offer’s performance in relation to

the buyer’s expectations. In general, satisfaction is a person’s feeling of pleasure or

disappointment resulting from comparing a product‘s perceived performance in relation to his or

her expectations. If the performance falls short of expectations, the customer is dissatisfied. If the

performance matches the expectations, the customer is satisfied. If the performance exceeds

expectations, the customer is highly satisfied or delighted.

As we know highly satisfied customer generally stays loyal, buys more as the company introduce

new products, talks favorably about the company, its product & pays less attention to competing

brands. Satisfaction depends on product and service quality. ACI can satisfy the market because

ACI AEROSOL has:-

High product quality

Provide better service &

ACI AEROSOL is environment friendly (CFC free)

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.

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.

As an outcome of ACI’s quality policy they are the first company in Bangladesh to attain ISO

9001 and 14001 certification to fulfill their vision of improving the quality of life of the people

of our country. For stronger foothold on their policy they currently audit (internally and

externally) their manufacturing plant twice a year to ensure Good Manufacturing Practice as

recommended by World Health Organization (WHO).

ACI produce quality products according to the international pharmacopoeia to meet the highest

requirements. The quality assurance system is based upon the strict choice if raw and packaging

materials, processes which enables compliance with the existing standards or pharmacopoeia.

Records and reference sample concerning every production steps are documented. A process

sheet and batch manufacturing record system provide a reliable base for full traceability in every

phase of the process and product life cycle.

Raw materials, intermediates and final products are thoroughly tested at ACI laboratory on

different parameters before giving the necessary authorization for use.

The high standard work practices, innovative and high quality products have gained wide

acceptance and reputation which enables them to acquire high product image and manufacturing

collaboration with multinationals.

ACI is committed to maintain the harmonious balance of our eco-system and therefore

constantly seeks ways to manufacture and produce ACI AEROSOL in an eco-friendly manner so

that the balance of nature remains undisturbed and the environment remains sustainable.

2.3TARGER MARKET:

Once the firm has indentified its market segment opportunities, it has to decide how many and

which ones to target. Marketers are increasingly combining several variables in an effort to

identify smaller, better –defined target groups. Thus a bank may not only identify a group of

wealthy retired adults, but within that group distinguish several segments depending on current

income, assets, savings and risk preferences.

Target market is a group of consumers who share common needs and wants that a company

wants to serve. ACI has different types of users, house hold consumers, Hotels, Departmental

stores and etc. ACI’s target market ranges from high income level people to middle income

people.

Marketing of ACI AEROSOL involves segmentation targeting and positioning the product,

pricing distribution, supply chain management and promotional activities. These activities ensure

that the products that customers want to buy are available at a price they are willing to pay and

that customers are provided with information about the product features and availability.

2.4 COMPETITIVE ENVIRONMENT:

Over the year many company have taken initiative to make different types of insect killer

(especially Mosquito) product like- Mosquito Coil in different flavor, Mat, Creams,

Sprays, vaporizers etc.

Mortein, leader, Globe, and ARS are coming up with a strong marketing plan and doing

well in the market.

Though ACI AEROSOL holds the top position in the market despite that Reckitt

Benckiser’s product Mortein is one of the main competitors of ACI AEROSOL.

Mortein holds the market of lower middle class people because of their low price policy

and frequently advertizing policy.

ACI has elite brand image in Bangladesh aspect. They maintain their product quality.

They provide better service. Mortein does not have that much product quality. Their

product is not that much effective on mosquito as they promote. Despite that they are

growing their market in middle class people because of their low price.

From main competitor Mortein, ACI can learn one thing that is low pricing. If ACI

Aerosol makes their price low then they can control whole market.

2.5 TECHNOLOGICAL ENVIRONMENT

One of the most dramatic forces shaping people’s lives is technology. The economy’s growth

rate is affected by how many major new technologies are discovered. Many of todays common

product were not available 40 years ago.

Now a day’s people are more conscious about environment. Consumer will not suppose to buy

those products which have any bad effect against environment. So now companies are also aware

about this. So they use high technology and environment friendly technology. ACI is also aware

about technology.

The role of AEROSOL in climate forcing is a critical factor in assessment and prediction of

climate changes, as well as in advancing climate modeling frameworks. Aerosol forcing has two

major components, direct and indirect. Direct effects of aerosols are the influence of the aerosols

on the planet's radiation balance by the scattering of solar radiation, which result in the cooling

of the Earth's surface. Aerosols can also have an indirect effect on climate, based on the ways in

which aerosols interact with surrounding clouds. Direct effects of aerosols on the climate system

are much better understood and quantified than the indirect effects.

The answer to the problem of incomplete specification of physical processes is the development

of a unified framework in which all of the aerosol-cloud interaction processes can be treated in a

physically consistent manner. This Aerosol Climate Initiative project addresses this issue by

developing and using a 3-D cloud resolving model (CRM) that contains more efficient

treatments of aerosol and cloud microphysical processes.

Ever since its inception in 1967 (Under ICI Plc UK) ACI Aerosol was formulated with CFC

(Chloro Fluro Carbon). As the use of the CFC was banned, in 1999 with support from UNDP

ACI Aerosol production unit was shifted to ACI Formulations, Razabari, Gazipur, and changed

its formulation to LPG based Aerosol from CFC base. Moreover, the plant was incorporated with

Most updated and safest waste management system.

The whole system of the plant is automated and every part of it is interrelated with each other.

The plant has an individual LPG – deodorization plant nearby which gives the purest and

odorless LPG for the formulation of Aerosol. Now ACI AEROSOL is -

Fully aligned with the global mindset of protecting the environment

1st Aerosol plant in Bangladesh with LPG formulation.

2.6 SOCIO-POLITICAL ENNVIRONMENT:

It consists of law, government, agencies & pressure groups that limit the activities of

organization. A business organization has its physical existence in a socio-political environment.

Therefore, the policies practices and philosophy of the organization have far reaching effects on

the society. At the same time, society also has certain influences on the organization. The

organization has a three pronged role social, ethical and political. In Bangladesh socio- political

environment keep on changing very frequently and it’s always effect the organization. But ACi

is such an organization which is very flexible and responsive go with the changing attitude and

trends.

Another important thing is the changing laws and regulations which may affect the business.

Being a concern of ACI which has very good truck record ACI AEROSOL is capable enough to

cop up with any sort of financial impact.

CHAPTER -3

3.0 PROBLEMS AND OPPORTUNITIES:

3.1 PROBLEMS:

These days we have seen that Competitors are coming up and showing TV ads frequently. ACI

AEROSOL has reduced the frequency of TV advertisement. This is affecting their selling as

some of the competitor’s ads are very attractive.

Most of the competitors of ACI AEROSOL are using a pricing method called “Competition

based pricing“. It is a going rate pricing in which a competing firm bases its price largely on the

market leaders pricing. As they are using this pricing strategy ACI AEROSOL is losing

customers. This scenario is common for all the segments of ACI AEROSOL.

In the lower segment a portion of the customers are habitual buyers in nature. They do not

understand the meaning of brand equity, brand preferences and is unable to make weighty

decision about which brands to buy. They rather rely on the attractive advertising and on the

shopkeepers who persuade them for buying any particular brand. This is why ACI AEROSOL is

facing heavy competition in the lower segment.

3.2 OPPORTUNITIES:

ACI AEROSOL has great opportunity to control the whole market. They have a strong

base ground. Aerosol market is still in a position to expand. Using customer aware about

bad effect of mosquito ACI AEROSOL can easily expand their market. If once people

aware about diseases which are followed by mosquito then people will ready to pay high

price as precaution.

ACI can increase their insect killer product along with ACI AEROSOL

3.3 THREATS:

The competition in the pest control category is increasing day by day. So, ACI has to

invest more money to hold and control the market share and market growth of the

Aerosol. For that reason the total operating expenditure of the company is increasing

rapidly.

Price of raw materials and other input cost are increasing day by day. It’s become a

challenge to maintain the quality of the product without increasing price.

CHAPTER-4

4.0 MARKETING STRATEGY

4.1 EXISTING MARKET:

Domestic Market

Being a developing country, the consumer brand product market and at the same time, the

consumer product industry of Bangladesh is growing. In this growing market, ACI has been able

to maintain its growth through its innovative marketing strategies.

In Bangladesh, ACI introduced the concept of quality management system by being the first

company to achieve ISO 9001 certification that reflects its commitment to quality in every aspect

of business.

ACI covers the health care community of whole Bangladesh based in both urban and rural

markets, through its 18 strategically located depots.

International Market

To fuel the continuous growth of ACI, the company has started exploring international markets.

The quality of ACI products, strengthened by its ISO 9001 certification, has brought immediate

success in Sri Lanka, Yemen, Myanmar and Vietnam.

4.2 OBJECTIVES:

Objective is to increase profit by 20% by the end of this year.

We have invested marketing for more attractive advertisement.

We also invest money to aware people about bad effect of mosquito and other insect.

Our target is to expand our market in rural area also.

4.3 STRATEGY:

Marketing Department of ACI is one of the most vital functional departments of the Company

which deals with the supply chain activities of ACI. In order to keep all the businesses running

flawlessly, the dedicated and hard working employees of this department maintain a good liaison

with the customers, both national and international. The Commercial Department is consistently

achieving the best prices for the products that we purchase, ensuring enormous amount of cost

savings for the company. It offers invincible professionalism and expertise in the entire

commercial activities of ACI.

ACI AEROSOL is now in maturity stage. Their sale is now in stable position. We will use

Marketing Mix Modification Strategy to achieve goals. Marketing mix modification strategy

means brining change in four P’s. These are:

Product

Price

Place

Promotion

4.4 ACTION PLAN:

4.4.1 Product:

‘Product’ is perhaps the most important of all the 4(four) Ps. unless a product or service is able to

provide a value to the customers, there will be no demand for it no matter how low the price is.

That is why ACI AEROSOL is always focusing on customer satisfaction.

The unique selling point (USP) of ACI AEROSOL is its high quality.

In terms of quality, ACI AEROSOL is the leader. Its products have unique technology. Hence

ACI AEROSOL clearly stands apart. By this, it makes sure that the consumers are getting value

for their money and is likely to increase consumer loyalty.

4.4.2 Price:

Price can be considered the most sensitive aspect of marketing strategy. An effective pricing

strategy has to be well planned and it should reflect the utility that the product provides. There

are people who will not mind paying a little extra for some added benefits, especially in the case

of those with higher level of income.

ACI AEROSOL, which produces high quality products, balances the quality and the price by

following ‘Premium Pricing Strategy’. Yet, ACI AEROSOL has been able to maintain the

highest market share. Almost all the other competitors in the market provide similar types of

products at lower prices, but their quality is difficult to match with those of ACI AEROSOL.

4.4.3 Place:

Place usually means where a product is available. ACI AEROSOL is available almost every

departmental stores all over the country. ACI’s sales offices are located in different sites around

Bangladesh. Since it is spread out in so many areas, there are special geographical advantages. It

can reach out to potential customers all over the country, thus increasing chances of sales

compared to its competitors, who have not managed to reach out their services in the similar

way.

4.4.4 Promotion:

Promotion is important for an organization to inform, influence, persuade, and retain the target

market. The promotional activities of ACI AEROSOL are not intense, yet it is the market leader.

There are two reasons for it. Firstly, most of the customers are loyal so loyal customer make one

kind of promotional activity. Secondly, ACI has very high brand equity, which results in a high

level of consumer brand awareness and loyalty. ACI AEROSOL can improve their promotional

activities. They can extend advertisements on billboards, newspapers, television, and sales letters

to corporate customers, and advertisement banners. They can make people aware in rural area

about bad effect of mosquito. Then they will be encouraged to buy insect killer. Thus ACI

AEROSOL is able to catch market in lower middle class people. All these promotional activities

help increase the company’s sales by approximately 15-20%.

In case of ACI AEROSOL, television commercials are not very prominent. This advertisement

effectively increased the sales of home furnishings by 20 %.

ACI can arrange billboards all over the country. It may locate at every busy street all over the

country. It also gives out advertisements in newspapers, mainly The Daily Star and Prothom Alo.

Other than these, it has banners displayed extensively, which act as effective attention getters.

4.5 FINANCE & PLANNING:

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

the structure, ACI Finance and Planning plays the centralized role in all kinds of financial and

accounting services. Meaning it handles financial and accounting matters of not only ACI

Limited but also of all of its subsidiaries supporting the mission and vision of the Group. 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

ACI finance is pioneering in introducing and implementing state of the art financial tools like

electronic banking, integrated accounting systems, better foreign exchange management through

hedging, derivatives etc. To allow us to excel in our performance ACI Finance has strong rapport

with all the international and major local banks, non-financial institution including leasing

companies.

Driving force of Finance is its motto which is "to become most value adding business partner".

To drive this vision, ACI Finance proactively helps business in providing right and timely

information, analysis, budgetary management and participating in cross-functional team.

The Planning function not only compiles and coordinate the company plan of the conglomerate

but also instrumental in feeding the CEO and top team different macro and micro economic

situation of the country as well as world in large. These in-depth analyses help the company to

make correct and pragmatic decision as a part of strategic initiative.

The new business development area is one of the most exciting areas in ACI. Here we keep a

track on potential areas of growth being envisaged in the country, these are followed by rigorous

analysis and subsequently matching these with ACI's competence. This allows ACI's growth

engine to get enough fuel to take its course forward.

CHAPTER 5

CONCLUSION: