MARKETING PLAN PRODUCT: ACI AEROSOL

BUS 620

MARKETING MANAGEMENT
SECTION 1
MARKETING PLAN OF ACI AEROSOL

PREPARED FOR:

Belayet Hossain, Ph.D.

FACULTY
SCHOOL OF BUSINESS

MBA PROGRAM NORTH SOUTH UNIVERSITY PREPARED BY:

NORTH SOUTH UNIVERSITY

School 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.

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TABLE OF CONTENT Executive Summary CHAPTER 1

1.1 Introduction 1.2 Company Profile 1.3 Product Line

iii 2 4 6 8 10 11 11 12 12 13 14 14 14 15 16 16 17 18 18 18 19 20 20 20 21 23 23 24 25 25 26 26 26 27 27 28
29

CHAPTER -2 2.1 SWOT analysis

2.2 Target Market 2.2.1 Target market and Target market strategy 2.2.2 Strategy 2.2.3 Basis of segmentation 2.2.3.1 Geographic 2.2.3.2 Demographic 2.2.3.3 Psychographic

2.3 Market Research

2.3.1 The Marketing concept of Reckitt Beckinzer 2.3.2 Strategic Business Units 2.3.4 Strategic SBUs of Reckitt Beckinser 2.3.5 Branding packaging and Labeling of Mortein 2.3.6 The Overall Brand management of Mortein 2.3.7 Management for Mortein 2.3.8 Quality Assurance in Mortein 2.3.9 Sales and profit figure of Mortein 2.4 Position of Mortein in the BCG Growth Matrix 2.5 Marketing Objectives and Goals 2.6 Marketing Strategy 2.6.1 Morteins life cycle Stage 2.6.2 Strategy

CHAPTER 3
3. Findings of Mortein 3.1 Develop a new product pricing strategy 3.2 Focus more on promotional activity 3.3 Newspapers and magazines 3.4 Television and Radio 3.5 Billboards 3.6 Posters, Danglers, Buntings, stickers 3.7 Use Push and pull Strategy 3.8 Take appropriate actions to increase the reputation of the brand name 3.9 Take a lead in the social welfare activity 3.10 Implementation and control

CHAPTER -4
Conclusion

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. ACIs 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 markets 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 AEROSOLs promotional, brand management and advertising strategy is realy

strong to differentiate its product line with that of competitors 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 offers performance in relation to the buyers expectations. In general, satisfaction is a persons feeling of pleasure or disappointment resulting from comparing a products 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 ACIs 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. ACIs 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 Benckisers 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 peoples lives is technology. The economys 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 days 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 its 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 competitors 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. Its 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 Ps. 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. ACIs 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 companys 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: