New product development on spice & musterd oil of aftab foods AFTAB FOODS LIMITED (A concern of Aftab group) Company Profile Aftab Group is one of the oldest & largest business organizations in our country. In 2009 it wants to introduce some consumer product under Aftab foods Limited. This company registered under company Act-1994. Soon after establishment the company went for completely a new product line and introduced its first ever Spice & Muster Oil named Aftab Energy. However company specifications are detailed below; Name Date of Establishment Product Type Product category Head Office Branch office
Aftab Foods Limited 1st September, 2007 Consumer Goods Spice & Mustered oil. Uttara Bank Bhaban, 5th level, Motizil Dhaka. Six divisional head quarters
1.1 Vision and Mission of the Company The vision and mission is very much important to run a business properly, to market a product properly. It plays a vital role of everything because without vision and mission, no business can go ahead. Mission and vision is to produce a better quality and healthy Spice & Mustered Oil and distribute it at a lower price into the market. The main target of the company is to attain the profitability to the better services and also wants to exist in the Spice & Mustered Oil market for the long-term perspective. 1.2 Production Facility Since the business is production oriented the company will try to find variety of production facility. First of all the company will try to achieve high production efficiency to produce huge amount of product because if It will able to produce huge amount of product Low cost will be another production facility of the company. It will try to maintain low cost by cutting unnecessary overhead cost. Because It will market our product at lower price and if we are able to maintain the cost of our product low, there will be a great chance to capture the market easily. The company will go for the product availability into the market. It is another kind of production facility because consumer will easily get the product in the market for product availability. When product will be available in the market, there will be a great chance to sell the more products. Another production facility of the company will be easy production process. For this company can use new technology. 1.3Current business Trend At present there are lots of Spice & Mustered Oil companies in the market, like Arku, Pure, Radhuni Pran, BD food and many others. They are producing and distributing different kinds of Spice & Mustered Oil and they are taking different marketing strategies to capture the market. Sometimes they are following the quality, sometimes
they are following to keep the price low, and sometimes they are following high promotional activities to promote their product. Actually there is no fixed marketing strategy of the present Spice & Mustered Oil companies. Because the environment is changing and people are also changing in their mind, in their behavior, in their attitude, in their perception. So the present Spice & Mustered Oil companies are taking their marketing strategies based upon the situation. Among the lots of Spice & Mustered Oil companies, some companies are well established in the market and they are doing their business very well. On the other hand some companies are not well established in the market. At present there is also lots of competition among the Spice & Mustered Oil companies and continuously they are trying to set up the new strategy to capture the market. Actually the present soft market is very competitive. Although it is a very competitive market for the soft company but a new company like Aftab Energy coming up with a innovative product by offering the better customers So it can compete with the competitor in the Spice & Mustered Oil market by its own marketing strategy. Basically, the Consumer Goods market like Spice & Mustered Oil in Bangladesh is competitive in nature. From a statistical survey we get, in Spice & Mustered oil Company like Radhuni, Arku, Pure, BD Foods, Pran etc hold 65% market share another 35% are market gap in urban area & in rural area the above company hold 14% & another 86% use home made spice. 1.4 Target Market Target market is very important for the every company. Because once a firm has analyzed its environment and all others business related things, it has to evaluate the various segments and decide how many or which ones to target. That is why every company has target market. The target market of the all most every existing Spice & Mustered Oil Company in the market is all over the country, even the rural area. But most of them focus mainly on big cities. Every company does not follow the same strategy to target their market. Different companies follow different strategy to target their market. Every company has some uniqueness to target their market. Some companies focus on location to target their market. They focus on the suitable area and the standard of living of that area's people. Some companies focus on the density of the population to target their market. They think that more people mean more products will be sold. Some companies target their market according to the market demand. They target some are in which the demand of Spice & Mustered Oil are very high. But one thing is very similar that almost all the existing Spice & Mustered Oil companies target same customers. All most every company's target customers are quite same. Their target customers are lower middle to higher income level. In this situation, at first Aftab Energy Company’s target market will be some big cities Dhaka, Chittagong, Rajshahi, Khulna, Borishal, Sylhat etc. When the company will be able to capture this city, it will think to go all over the country. 1.5 Current Marketing Objectives To be successful in the business, marketing objectives are very much important. Without a proper and organized marketing objective, no company can reach the goals. At present, the overall marketing objectives of the existing Spice & Mustered Oil Company in the market are to produce good quality product, supply the product in the market at lower price. They will also want to capture the market and want to win the leadership in the Spice &
Mustered Oil market. The company can win the leadership by providing the better customers services. Some talk about ACIACI was established as the subsidiary of Imperial Chemical Industries (ICI) in the East Pakistan in 1968. After independence the company has been incorporated in Bangladesh on the 24th of January, 1973 as ICI Bangladesh Manufactures Limited and also as Public Limited Company. This Company also obtained listing with Dhaka Stock Exchange on 28.12.1976 and its first trading of share took place on 09.03.1994. Later on May 05, 1992, ICI Plc divested 70% of its shareholders to local management. Subsequently the company was registered in the name of Advanced Chemical Industries Limited. Listing with Chittagong Stock Exchange was making on 22 October, 1995. Advanced Chemicals Industries (ACI) Limited is one of the leading conglomerates in Bangladesh, with a multinational image. ACI is a Public Limited Company with a total number of 19,653 shareholders. Among these, there are three foreign and fifty local institutional shareholders. The company has diversified into five major businesses. Beside these, the company has a large list of international associates and partners with various trade and business agreements. 2.1 Mission of ACI 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. 2.2 Company Vision: To realize the mission ACI will: Endeavor to attain a position of leadership in each category of it 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. 2.3 Distribution Network: The company maintains strategically located sales centers in 198 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 80 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 as vaccines and insulin. The combination of this advanced function and multi dimensional capabilities make it possible to handle hundreds of products efficiently. 2.4 ACI foods LtdACI foods Ltd introduced a new product brand name Pure in 1 st January, 2008. In beginning period, there was 65 distributions point and 05 area managers all over the country. In present time they set up 105 distribution point, 12 area manager, 2 zonal managers & 1 sales manager. 2.5 Remarkable Distribution of ACI foods LtdDhaka metro Total zone of Dhaka metro: 04 Total distribution point: 14 Total market segmentation area: 01 Total sales representative: 18 Total sales target: 6000000 BTD. 2.5.1 Zone of Dhaka metro of ACI Zone of Mirpur Name of Area manager: 1 No. of Distributors: 3 Monthly sales target: 2200000 No. of Sales representative: 19 Average commission for Distributor: 5.25% 02. Zone of Ramna Name of Area manager: 1 No. of Distributors: 9 (Out of Dhaka 4) Monthly sales target: 1600000 No. of Sales representative: 10 Average commission for Distributor: 5.25% 03. Zone of Uttora Name of Area manager: 1 No. of Distributors: 5 Monthly sales target: 4500000 No. of Sales representative: 19 Average commission for Distributor: 5.25% 04. Zone of Jatrabari Name of Area manager: No. of Distributors:
1 11 (Out of Dhaka 10)
Monthly sales target: 4600000 No. of Sales representative: 14 Average commission for Distributor: 5.25% 2.5.2 Zone of Gazipur of ACI Name of Area manager: 1 No. of Distributors: 10 (Out of Dhaka) Monthly sales target: 4000000 No. of Sales representative: 18 Average commission for Distributor: 5.25% 2.5.3 Zone of Jessore of ACI Name of Area manager: 1 No. of Distributors: 10 (Out of Jessore 9) Monthly sales target: 1188948 No. of Sales representative: 12 Average commission for Distributor: 5.25% 3. Over all survey report from survey customers on Branding position: Survey area: Dhaka Metro Survey days: 1st Sep 2009 to 12th Nov 2009 No. of customers: 200 No. of male: 54 No. of female: 146 Age of survey people: 20 to 55 Market share of brand: Radhuni 51.5% Arku10% Pure6% Pran1.5% 5. BD1% 6. Market gap30% Know bran name: TV adds66% Retailers28% Others1.5% News paper0.5% Monthly investment: 60 to 600 BDT Buy Packets spice: Katcha Bazaar24.5% Retailer81% Others2.5% Super Mall8% Like TV channel: Ch-I48% ATN27%
NTVCh-1Others-
30.5% 23% 21%
Time of watching TV: Day– 12.5%(After lunch) Night91%(9.00 pm to 12.00am) When gets time8% After noon1.5% Evening0.5% Like TV program: Drama78.5% Musical program- 18.5% Movie32% News43.5% Others28.5% COMMENTS: Every customer satisfied their packet spice &Mustered Oil. Because it has Brand image, Best quality, Best color combination & tasty, Easy to use, Status maintains, Retailer give the best packet spice &Mustered Oil and Secured. But Own Refiner are says that, we are mentally satisfied in this Simple Spice &Mustered Oil and low cost, easy to use, available and Packet spice &Mustered Oil are mixed comical. And it is Danger. 3.1 Report from survey customers on Branding position: Survey areaJessore Zone Survey days7 Days No. of customers30 No. of male17 No. of female13 Age of survey people25 to 60 Market share of brand: Radhuni26.67% Arku10% Pure6.67% Pran3.33% BD3.33% Own Refiner- 50% Know bran name: TV adds46.67% Retailers3.33% Monthly investment: Buy Packets spice:
Katcha BazaarRetailerOthers-
20% 73.33% 13.33%
Like TV channel: Ch-I49.69% ATN33.33% NTV36.67% Ch-130% Others6.67% Time of watching TV: Day16.67% Night93.33% When gets time20% Afternoon6.67% Like TV program: Drama60% Musical program- 10% Movie13.33% News76.69% Others6.67% COMMENTS: Every customer satisfied their packet spice &Mustered Oil. Because it has Brand image, Best quality, Best color combination & tasty, Easy to use, Status maintains, Retailer give the best packet spice &Mustered Oil and Secured. But Own Refiner are says that, we are mentally satisfied in this Simple Spice &Mustered Oil and low cost, easy to use, available and Packet spice &Mustered Oil are mixed comical. And it is Danger. 4. SWOT Analysis If we look at the marketing environment, it will be clear to me that every company has some strength, weaknesses, opportunities and treats in the market. I have analyzed the marketing environment of Spice & Mustered Oil. After that I have also found our some strengths, weaknesses, opportunities and treats for us to launch the Spice & Mustered Oil company. 4.1Strengths After analyzing the present market condition, I have got the following strengths, which will be favorable to us to launch our business. Brand Name Reputation Brand name is very much important because it symbolize a company's reputation. Aftab Group continue their business with great reputation & they able to achieve customers mind. So it is the strength side of this company. It will able to hold the brand name reputation in the soft drink market in Bangladesh. 4.1.2 Better Quality
Aftab Energy is very much quality product rather than other companies' product. The company will achieve a great reputation for the quality assurance. The company always tries to hold the quality of the product. Customers believe the quality of the product it always gives the quality products to their ultimate customers. Aftab Energy. Strong Management Teams The management of the Aftab Energy is very much skilled. Most of the management peoples are very much expert which is the great strength side for this company. As it is a home-based company, the company will hire some marketing expertise from some other countries. Appropriate Management Style As it is a local company the company has an appropriate management style. The company always tries to take decision from the top-level management through the appropriate management system. If there is any problem occurs in the management, company always try to get rid of that problems and immediately will take the right decision for doing the effective marketing in Bangladesh. Appropriate Organizational Structure As Aftab Energy is a home-based company doing the business in Bangladesh, I have appropriate organizational structure. Organizational structure will be developed by the local and foreign expertise. Profit margin Will Increase Obviously the company will gain profit if their supply is more. Supply can be more if the company uses the effective distribution channel. Increase Market Share As it is a new company in Bangladesh the company has the great chance to increase the market share through the effective marketing. If the total sales volume will increase then the total market share will increase also. Market shares depend on the total sales volume. Weakness The weakness of my firm is as follows. Less Production Plant Although Aftab Energy is a local company but in there I have the few production plant. As a result the company will unable to produce a large number of products. That is why the company cannot provide a large number of products to their customer. Do Not have Research and Development Department Aftab Energy have not research and development department center so that they cannot ensure about its competitive market as well as customer needs and wants, because they could not properly define it's problems and cannot able to make any
solution. If, they want to produce developed and upgrade product and positioning in competitive market then It face many problem. 4.2.3 Inaduquate Human Resource Aftab Energy have not adequate human resource management so that it has to encounter about their employees as well as recruitment. And it could not develop personnel department. So that it cannot properly train up to its employee and motivate its employees to give them reward. 4.2.4 Less of Productivity The rate at which goods and services are created as called productivity. The company has the less production capacity because as it is a new Spice & Mustered Oil company in Bangladesh. So the company will not produce a large number of products in the every year. As a result they cannot cover the Spice & Mustered Oil market by a narrow productivity. 4.3 Opportunities Looking at current marketing environment, I have found out the following opportunities that will be favorable to launch our Spice & Mustered Oil in the market 4.3.1 More Market Share Acompany's market share is its percentage of the total industry sales in the geographical area where it sales its product. Maintaining or increasing market share is a common pricing objective. Aftab Energy Company will capture a larger market share that is a great opportunity for this company. Many firms use market share figures to assess their performance. An increase in sales may help a company reduce production costs and achieves higher profits since it is cheaper on a per unit basis to produce more goods or offer more services. Firms some times lower prices try to capture a larger share of the market. Scope of Merge with Other Spice & Mustered Oil Industry of Bangladesh As it is a new company in Bangladesh I have the great chance to merge with other existing company in Bangladesh. If they merge with other company then their financial position will be strong as well as management also. Negotiation can reach the company in a better position. For their long-term success they can merge with each other. Chance to Build More Production Plant Though it is a parent company but it has less number of production plants in Bangladesh. For taking the more market share and sales the company should build more production plant in the major cities in Bangladesh to cover their target market. Chance to Builds a Good Brand Image Aftab Energy has a chance to build a good brand image. If can build a good brand image then be able to very much well known company in the Bangladesh. Brand name is very much important because it symbolize a company's reputation.
Threats The following factors may occur as unfavorable condition to us to launch our soft drink in the market. Government Support Government support is very much important for a company to do the effective business in any country. Without government support any company cannot run any business. So if the company does not get the government support then it will be very much difficult for the company to do the business in Bangladesh. Technological Change It is true that technology makes our life easy and convenient to every situation. But sometimes it becomes harmful for a business. Sometimes technology comes as a big competitor. In Spice & Mustered Oil market if any company comes with any new technological development rather than. Aftab Energy Company then it will be very much difficult for the company to coup with the new technological development. Once a game developed then another will come in a better way with the help of technology. Preference Diversity Every states or geographical areas have its particular character preference. So it is very difficult for. Aftab Energy Company to position a particular product in different region or geographical area. One group may like a particular type of product. In the other hand, other group may prefer another particular type of products. If the company cannot hold the preference diversity then it will be great problem for the company to exist in the Spice & Mustered Oil market in Bangladesh. Government Rules and Regulation Each country or state has its own regulation and tax policies, which made it cumbersome to do business in host country. So government's rule and regulation can be a barrier for Spice & Mustered Oil Company. Political Unrest Now-a-days political unrest becomes common phenomenon in a nation as well as the whole world. World is place of intense political unrest. So, political unrest can be harmful for Spice & Mustered Oil Company. World political problem become so intense that foreign operation of a particular organization are under in intense pressure. Changes Buyers' Habit Buyers' habits are changing with the change of time. Buyers are always looking for having products in some different ways. So changing buyers' needs and habits can be harmful for Spice & Mustered Oil Company. If consumers want the innovative product but Aftab Energy of Bangladesh is unable to give them new product to their customers the customer may switch from their product.
4.4.7 Financial Risk Financial risk is the part of every business. Substantial nonrefundable advance licensing fees and significant advertising expenses can be termed as a financial risk for a business. Moreover, new competitor can offer products in lower price. It can also be the reason for financial risk for the new Spice & Mustered Oil company in Bangladesh. Economic Change Changes in economic circumstances can be harmful for the Spice & Mustered Oil Company. Personal income, savings, employment, and price level trends can have dramatic effects on the attractiveness of a firm's products or services in output markets not only final markets, but intermediate markets as well. Economic recession may occur and it may cause great loss for the Company in Bangladesh. Threat of Substitute Products Manufacturers of products and suppliers of services must constantly scan their environments for the potential emergence of substitutes. The most dangerous substitutes are those that show potential for improving price -performance trade -offs and those made the firms or industries earning high profits. In this case, strategies must be formulated to protect against displacement by the substitute product. Many companies may offer innovative product with low price rather than Aftab Foods then it will be the great problem for the company to exist in the current market. 5. Marketing Objectives Aftab Energy wants to survive in the market for the long time. Not only has this company wanted to survive, but also wants to become the leader among the Spice & Mustered Oil industry. Aftab Energy Company has several marketing objectives. 5.1 Profit The first objective of this company is to maximize profit legally. Sales Revenue If profits are acceptable, the company will increase its sales level. The top management of the company will decide how much sales will increase based on the situation. Provide Corporate Customer Service Provide corporate customer service is one of the most major objectives of this company. Because the company believes that customer is the boss. Keep Customer Loyalty One of the majors marketing objective of Aftab Energy is to keep a high level of customer loyalty. Because the company believes that loyal customers do indirect marketing. Market Share When the status of the company will be high and the company will take a opinion leader for the Spice & Mustered Oil company, it will increase its market share.
Unit Sales When the sales revenue will be decreasing because of the effects of inflation, the companies will chose to increase the number of units of its sells. Provide Quality Product The Company will always try to provide better quality product to the customer to survive in the market for a long run. Reasonable Price To provide the product at reasonable price is another marketing objective of Aftab Energy Company. Because company want to get maximum customer in the market. 6. Marketing Strategy Now the world is globalizing. In this global world companies need to adapt a strong marketing strategy to survive. This is why I have developed the following strategy that will be adapted to launch and to survive in this competitive world. 6.1 Target Market The most important issue in the globalize world is customer. It is also the heart of any business. This is why the market should be segmented correctly and then according to the company's structure, product, growth, attractiveness etc. target market should be selected. Aftab Energy set a target market for introducing the new product. The target customer is lower income level to higher income level, Shafe of all restaurants & people from 20 to 55 years old. At a glance the target marketed people— Age Limit Income level Professionals
20 years to 55 years. Lower middle level to higher income level. Restaurant’s Shafe, Service Women & also all housewives.
7. Marketing Plan At first Aftab foods will set distribution channel on Dhaka metro. There are four zoon in this area. 01. Zone of Khilkhet No. of Area manager: 01 No. of Distribution Area: 04 Uttara, Turog, Air port Dachinkhan, Uttorkhan Khilkhat, kantonment, Gulshan, Badda. No. of sales representative: 05 2. Zone of Motizil No. of Area manager: 01 No. of Distribution Area: 03
1. Tajgau, Tajgau Industrial Area, Khelgau, Romna 2. Palton, Sobuj Bag, Motizil 3. Jatrabari, Demra, Kadamtoli. No. of sales representstive: 04 03. Zone of New market No. of Area manager: 01 No. of Distribution Area: 03 1. Sampur, Sutrapur, Kotoali, 2. kamrangir Chor, Lalbag, Hazabag 3. Sacha Baj, New Market, Danmondihan, No. of sales representstive: 04 04. Zone of Mirpur No. of Area manager: 01 No. of Distribution Area: 03 1. Mohammadpur, Adabor, Darussalam 2. Kafrul, Sha-Ali, Mirpur 3. Pollobi, Asulia. No. of sales representative: 04 Developing Differentiation Strategy For marketing the product, the company will develop differentiation strategy by segmentation the geographic area, demographic area, and psychographics area. 7.2 Market Segmentation7.2.1 Geographic Segmentation Nationality Regions Area
First of all Bangladeshi people. All regions people All side of Bangladesh.
7.2.2 Demographic Segmentation Age Gender Income Level Race
02 years to 85 years. Male & female. Lower middle income to higher income level. All Bangladeshi people.
7.2.3 Psychographic SegmentationAll Bangladeshi people who are like to eat spices food To Establish New Production Plant in Dhaka City Aftab Energy will establish new production plant for producing plastic foil pack. Because plastic foil pack will be used for once time. That is why customers will feel happy to buy the product. Another thing is that the existing Spice & Mustered Oil in the
market are supplying their product in the plastic foil pack. So to compete with the competitor Aftab Energy will establish more than one Plant in the Dhaka city. Expand Production Plant in Domestically Aftab Energy will expand its production plant in domestically. Other wise they will not fill-up targeted sales. If it fails to expand its production plant in domestically, it can not compete with the competitor. Because the existing company in the market have production plant in out side of the Dhaka city. So if it wants to establish more customers it has to go to expand their production plant. Downsizing Older Business Aftab Energy must not only develop new business but also carefully prune, harvest or divest tried old business in order to relies needed resources and reduce cost. Weak business requires disproportionate amount of managerial attention. Managers should focus on a company’s growth opportunities, not freighter away energy and resources trying to salvage businesses. Diversification Growth Diversification growth makes sense when good opportunities are found outside the present business. A good opportunity is one in which the industry is highly attractive and company has the mix of business strength to be successful. The company could seek product that have technological and or marketing synergies with existing products line, even though the new product themselves may appeal to a different group of customers. Second the company might search new product that could appeal its current customers even though the new products are technologically unrelated to its current product line. Aftab Energy will focus this strategy for differentiation strategy. 7.3.4 Product Positioning Aftab Foods Company Limited will position its product in different ways such as positioning based on a specific attributes, positioning with respect to user, positioning with respect to consumers, positioning with respect to marketing mix elements. Positioning with Respect to Consumers: The Company will collect the information from the consumer. The companies will interpret the consumer’s satisfaction and dissatisfaction, emotion about the product. After analyzing this company will position its product because costumers are the bosses to the Aftab Foods Company Limited. Positioning with Respect to Competitors: There are many competitors in the market already. The company will look for the competitor's action towards the product. That means the company will look what benefits the competitors give, what is the position of the competitors in the market, what strategy the competitors are following. After analyzing this company will position its product. 7.3.7 Positioning with Respect to Marketing Mix Elements
Price is one of the key elements in positioning generic products as well as branded products. So the company will focus on price to position the products. The company will position its product in the market by taking reasonable price. Packaging could be another variable. Company will provide the product in the market through nice packaging so that the product can easily capture the consumer mind. The company will produce different size product because the size of the product is very important to position the product. Different size product will capture the different income level consumer. Quality is the important to position the product. The company will position its product by providing good quality. 8. Marketing Mix The most important thing for any business is marketing mix. The growth, productivity, profitability, market share all these things depend on the marketing mix. Marketing mix consists of four Ps. The four Ps are product, price, place and promotion. Here place indicates distribution. I hve also focused on the four Ps that will be adapted to launch our Spice & Mustered Oil in the competitive market greatly. Product Aftab Energy is a production-oriented company. The product of the company will be Spice & Mustered Oil. The product will be good in quality and lower price. At first the company will try to produce quality product and will try to maintain the quality of the product because customers always favor the quality product. They want quality product but do not pay more money which is the theme of production oriented concept. That is why the Aftab Energy Company will emphasize on production and distribution efficiency that will enable the company to make the product available in affordable price. For this company will appoint some experts and will use appropriate technology. The company will also think about the product size, packaging. The product will be different size. The company will produce 15gm, 25gm, 50gm, 100gm, 200gm, 250gm 500gm & 1kg plastic foil pack of the product. The packaging of the product will be very attractive so that the consumer feels good to see the product. 8.1.1Before commercialization of Aftab Energy had gone through the following processIdea Generation: The systematic search for new-product ideas result is positive. The total people of our country consume ready made Spices & Mustered oil. There has a cause that in loosening in the urban area. So our company decided to launch a new product Aftab Energy for the market. Screening of Ideas: After generating the various ideas, the company screens those ideas and tries to make a shortlist those ideas by looking various advantages and disadvantages or by analyzing in respect of reality. Business Analysis: Concerned depot analyzes that short idea in respect of profitability and other business aspects.
Prototype Development: Prototype development is sample production of the newly generated idea. In this stage the company produces the new Spices & Mustered Oil. Market Test: When prototype seems to be successfully the company markets the product at a small scale to test the reaction of the target market regarding the newly developed product. Commercialization: In these secession our though the market result was positive then the company decided to market Spices & Mustered Oil launch. Price Since the target customers of the company are all income level people. So the price of the product will be sensitive that means the price will be neither too much nor to less. Actually the company will try to fix up the price in terms of product quality as well as the competitors price. Actually the price of the product will be different in terms of the product size because the company will produce different size of product. Even the price of the product will be less than other competitive product. The price lists of product are given in the below: Quantity
Price
15gm
5 Taka
25gm
7 Taka
50gm
13 Taka
100gm
25Taka
200gm
45Taka
250gm
55Taka
500gm
105Taka
1kg
200Taka
Place 8.3.1 Distribution Channels: A distribution channel consists of the set of people and firms involved in the transfer of title to a product as the product moves from producer to ultimate consumer or business user. It includes: 1 .Producer 2. Retailer.
3. Consumer 8.3.2 Designing Distribution Channel For designing the distribution channel the company has considers the following factors. Specifying the role of distribution: For this purposes the company select defensive channel. Selecting the type of channel: The Company mainly uses the One-channel member to give of their product offering to ultimate consumer. c) Determining the Exclusive of distribution: Though the product now in the introductory stage in the life cycle so the company decided to distribute it in a selective way. And side-byside it also has taken the decision to distribute in future I, e the growth stage in exclusive way. Promotion Aftab Energy will go for the different promotional activities to capture the market because during the launching of a new product in the market, high promotional activities are required. Advertising There is a sentence in business language that " Advertising tells, marketing sells". Without effective advertisement a marketer can not promote his product. That is why the company will go for the proper advertisement to take the leadership in the Spice & Mustered Oil market. At the very beginning Aftab energy Company will follow TV, newspaper, and billboard advertise for the promotional activities. Company will also give the the radio to capture the rural area customers. When the product will be in good position in the market then the company will give the advertisement in the Internet. Some times company will give the sponsorship to arrange some cricket tournament for the promotional activities of the product. Some times the company will give some reward to the customers. Sales Promotion Aftab Energy will step up sales promotion - trade deals, cents off coupons, guarantees, gifts, etc. For increasing the sales promotion, Aftb Energy can go for sales forces, public relations, and he can also go for direct marketing. All the promotional activities can reach the company in a better position in the Spice & Mustered Oil market. 8.4.3Personal Selling Aftab Energy will increase the number of sales people to distribute its product to customers. Sometimes it will change its specialized sales force to increase the activities of the sales force. Sometimes it will revise its territories. Services
The company will speed up its delivery to distribute its product to the customers quickly. It can extend more technical assistance to customers. Customers always look for better service. So if the company gives the proper service to their ultimate customers, then the customers will be able to purchase the product more and, more rather than other competitors. In this way the will company will follow the promotional activities for marketing the product. Distribution Aftab Energy will appoint distributors, wholesalers and agents in different city and district. Company will obtains more product support and display in existing outlets. The company will have distribution channels because through the distribution channels the company's sales people will market the product. For distributing the product, Aftab Energy will use its own transportations. In this case, if the company uses its own transportation, the company will save, its transportation cost. Marketing Implementation To survive in this globalize world, the company will implement our all strategies to my Aftab Energy in the Spice & Mustered Oil market smoothly and I shall control all these things carefully. 9.1 Marketing Organization At first the company will produce good quality product and the product will be marketed at reasonable price. To capture the market, the company will give advertisement in newspaper, TV, radio and billboard, event program. Sometimes company will sponsor cricket matches and other social activities. As a result a large number of people will be aware about the company's product. To market the product company will appoint some agent in big cities. The company will provide their product to the agent and the agent will provide the product in different level. To maintain this company will use some vehicles. The company will also allow keeping some whole sellers, retailers. Company's excellent management team will look after all these activities. The company will establish a strong marketing management team, marketing directors, executive, area manager and some other position will include under the marketing team. 9.2 Activities and Responsibilities Any organization involves with many activities that should be carried out carefully and all the responsibilities of different activities should be clear so that the business goes ahead in right trace. That means it should be clear that who will report to whom and what activity will be carried out by whom. That is why the company has clarified all the activities and responsibilities. 9.3 Management Hierarchy The Company will follow a strong management hierarchy. Actually management hierarchy is the top level of management with in an organization. Without a strong management hierarchy an organization cannot run properly. Top-level management is the decision maker of an organization. Decision can be taken from the top level or down level management.
9.3.1 Managing director Managing director is the top post of this company. I shall manage the whole activities of the company. Under managing director there are marketing director, production director, finance director, quality assurance director and personal manager. Marketing Manager Marketing Manager will controlled the over all marketing activities. Under marketing Manager there are national distribution and logistic manager and sales manager. The entire marketing manager will give the marketing information to the marketing manager and the marketing Manager will take the right decision by discussing with the other department of the organization. It is the marketing Manager's responsibility is to gathering the marketing information, analyzing and evaluating the marketing information and will go for implementation. Production Manager Production Manager will control coordinated all the activities that are related to the production. He always controls the production department of an organization. He gives the production information. How much unit of products will produce in the production department and what will be the production cost and what will be the per unit cost and where the raw material will be collected, every thing production manager will discuss everything. Human Resource Manager Human Resource will coordinate all personnel of the organization. This department `will maintain salary, bonus, increment, remuneration, employees promotion etc. It also follow up the recruitment procedure & retirement process of the employee. Financial Manager The financial Manager will control the whole finance sector. The financial Manager will control, monitor the activities of his or her subordinate. He is responsible for every work that is related to finance. Such as profit and loss statement, inventory etc. All the financial transactions will be dealing by the financial Manager. Financial Manager will control the overall finance department. He / she will give the suggestion that how much money will be spent in the production department, how much will be spent in the marketing department. What will be estimate production cost and what will be the profit margin. All the financial information will control by the financial Manager. That is why it is called that finance is the blood of an organization. Quality Assurance Manager Quality assurance Manager is the critical part of the organization. Because the companies aim is to produce good quality product. Quality assurance Manager is responsible to maintain the quality of the product. He is also responsible for looking after these subordinate activities. Quality director always give emphasis on the quality
of the product. If the quality is not maintained properly he/ she always try keeping the quality standard. And always try to motivate the workers of an organization. Training Manager Training manager is directly accountable to marketing manager. He is responsible to operate the entire training program of field executive. Training manager trains the field executives about their duties and responsibilities of the overall job. Environmental changes will continue to shift employment from some occupation to others will contribute to rise in productivity. Area Executive The Company will market its product all over the country. Area executive is responsible for handling the activities of field executive. He will always keep the record of everyday sales and inform to the marketing manager. Performance Standard To ensure the performance standard Aftab foods company Limited will take some steps. 10.1 To Provide Training Program for Employees Aftab Energy will provide an initiate training program for its employees. By providing training program for the employees, it will ensure its standard. To become a better performer, it will make a training program so that its employees get trained up and they can perform better to use their own knowledge and skill. When employees are trained up the output of organization will be good. 10.2 New Product Development Aftab Energy will always emphasis to develop new products to compete with others. And always forecast futuristic market what type of product should be produced for demanding their customer needs. If they want to produce new type of products they should provide new technology and experts . 10.3 Process Development The Company has to develop its process and procedure. In general, the dynamic of competition among firms in hi-tech industries encourages significant allocation to each employee's and development operation. In fact, as the number of competitor’s increases in industries, so it will modify its process and procedure. 10.4 Use Updated Technology There is substitute of updated technology in doing any kind of business. All most all of the multinational companies are doing business by using updated technology. Since the Company wants to receive some multinational operations, so it will use updated technology in its daily operation to ensure the standard. 10.5 Use Consensus Decision Making
The Company will give some training to their employee to make them effective in order to cope with the changing environment. Here no employer of the company will be allowed to take participate in the decision process. Only I shall give the instruction to the employees and based on the requirements, employees will take decision to reach the target that has been set by the employee. In this regard all employee will consider that at least 60 % will give their consent in order make a decision. 11. Monitoring and Control Monitoring Procedure To ensure the monitoring procedure the Company will take some steps: Stabilize the Operation: The Company will stabilize in its operation. Unstable operation cannot make a business. Operation will be strait-ward other wise it cannot makes profit for doing unstable operation. Subordinates accept that bosses have power because they are bosses and not just because it is competent-although may be. And employees do a job a particular way because the boss want it that way not because employees believe it is the best way. Augment the Distribution Channel: The company will augment the distribution channel for cutting its distribution cost and to serve its product just in time to its customers and also it will minimize its transportation cost. In this way Aftab Energy will monitor its procedure. Improving Quality: The quality of the product will be improved. Otherwise it cannot get competitive advantage and also it cannot position in global market. Quality of the product can make a good reputation on its Business as well as help to monitor procedure. Providing Competitive Salary: Employees are the center of all kind of organization. If employees remain the motivated, then nothing will be achieved. In this regard the company will give competitive salary to its employees in order to make them motivated. If the employees are motivated, they will give more effort and how much work will they done can be easily monitor. Develop Better Relationship with Suppliers as well as distribution channel The overall success of any company largely depends on the mood of suppliers. If the suppliers do not supply the raw materials on time, it will be very difficult to provide better service to the customers. So the company will develop better relationship with their suppliers & distribution channel to have raw material on time. Control
The company should provide proper financial management. If he can properly manage its financial data it has to encounter that about its overall view of organizational condition. So, it should properly manage to take any decision about cash management, asset management, working capital management, and also management of accounts receivable. Managerial finance is concerned with the future and the making of decisions based upon forces information; this is contrast to financial accounting which is primary concerned which historic values and transactions. Every one should keep in mind that managerial finance; financial accounting and cost accounting are, in fact, overlapping areas. Cash management, its management is very important. It is a most liquid asset. It needs to be managed most effectively and efficiency. Otherwise, a firm will be deprived of the advantages of holding cash and near-cash assets. Effective cash management encompasses proper management of cash inflow and out flow. Working capital management covers the management of cash, marketable securities, accounts receivable, inventory, creditors and payables. It has to know what is the appropriate account of current assets for the firm to carry, both in total and for each specific accounts, and how should current assets be financed. The reason is that the efficient working capital management is important form the point of view of both liquidity and profitability. Accountants of Aftab Energy will forecast of and revenue in tax planning to analyze the past data. They should analyze the past data to forecast futuristic decision about their revenue for tax planning as well as make a report to know for others. The personnel department will forecast about their recruitment of new employees and other changes in the work force. The forecaster should use seasonal past data and follow Regression model to take a futuristic decision.